DALLAS, April 29, 2020 (GLOBE NEWSWIRE) — United States Lime & Minerals, Inc. (NASDAQ: USLM) today reported first quarter 2020 results: The Company’s revenues in the first quarter 2020 were $38.4 million, compared to $37.8 million in the first quarter 2019, an increase of $0.6 million, or 1.7%. The increase in revenues in the first quarter 2020, compared to the first quarter 2019, resulted from an increase in the average selling price for the Company’s lime and limestone products, partially offset by decreased demand principally from the Company’s environmental and oil and gas services customers.
The Company’s gross profit was $9.9 million in the first quarter 2020, compared to $8.7 million in the first quarter 2019, an increase of $1.2 million, or 13.6%. The increased gross profit in the first quarter 2020, compared to the first quarter 2019, resulted primarily from the increased revenues described above, lower fuel costs, and increased operating efficiencies associated, in part, with the new kiln at the Company’s St. Clair facility, which began producing commercially saleable quicklime in the second quarter 2019.Selling, general and administrative (“SG&A”) expenses were $3.2 million in the first quarter 2020, compared to $2.7 million in the first quarter 2019, an increase of $0.5 million, or 20.4%. The increase in SG&A expenses resulted primarily from increased personnel expenses, including stock-based compensation, and legal expenses in the first quarter 2020.The Company’s revenues in the first quarter 2020 included $226 thousand from natural gas interests, compared to $334 thousand in the first quarter 2019. The Company’s gross profit in the first quarter 2020 included a loss of $162 thousand from natural gas interests, compared to income of $7 thousand in the first quarter 2019. In the fourth quarter 2019, the Company assessed the recent trends of revenue, gross profit or loss, and total assets of its natural gas interests and determined that those interests no longer represented a reportable segment.The Company reported net income of $5.5 million ($0.98 per share diluted) in the first quarter 2020, compared to $5.1 million ($0.91 per share diluted) in the first quarter 2019, an increase of $0.4 million, or 8.1%.Federal, state, and local governmental responses to the COVID-19 pandemic, including restrictions requiring social distancing, and on business activities and movement of people, began to take effect the last two weeks of March 2020 and, therefore, did not have a material impact on the Company’s financial condition or results of operations for the first quarter 2020. The Company expects, however, a slowdown in the national economy beginning in the second quarter, and a possibly greater impact in certain industries, such as oil and gas drilling activities, roofing, and steel.“As we respond to the unprecedented times brought upon us all by the COVID-19 pandemic, we have not wavered in our commitment to the safety of our employees and the other individuals at our facilities that deliver lime and limestone products to the essential businesses and communities we serve. In addition to our standard health and safety protocols, we have implemented enhanced protocols at all of our locations, including reduced access to facilities, screening of individuals on all sites, and the enforcement of social distancing and other practices that are consistent with, or exceed, the guidelines of the Center for Disease Control,” said Timothy W. Byrne, President and Chief Executive Officer.“We are pleased with our first quarter 2020 results but acknowledge that the significant amount of current economic uncertainty will negatively impact our customers and their demand for our lime and limestone products as we progress through the rest of the year. We expect to see continued reduction in demand for many of our products, particularly from the oil and gas services, roofing, and steel sectors. We will consider cost-cutting initiatives and ways to further increase operating efficiencies in an effort to mitigate some of the effects of the expected economic downturn,” added Mr. Byrne.Dividend
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