United States Lime & Minerals, Inc. (NASDAQ: USLM), a leading manufacturer of lime and limestone products, has unveiled its impressive financial results for the second quarter of 2023, signaling robust growth in its operations. The company’s performance demonstrates a resilient and thriving presence in various industries.
In the second quarter of 2023, United States Lime & Minerals reported revenues of $74.0 million, a substantial increase of $13.5 million, or 22.3%, compared to the same period in 2022, when revenues were $60.5 million. For the first six months of 2023, the company’s revenues reached $140.8 million, reflecting a remarkable year-over-year increase of $29.4 million, or 26.4%, from the $111.4 million reported in the first six months of 2022.
A significant driver behind this growth is the lime and limestone segment, which accounted for $73.7 million in revenue during the second quarter of 2023, marking a noteworthy increase of $14.1 million, or 23.6%, compared to the second quarter of 2022. For the first half of 2023, lime and limestone revenues amounted to $140.2 million, up by $30.3 million, or 27.6%, from the $109.9 million reported in the same period in 2022.
The surge in revenues in 2023 can be attributed to several factors, including increased demand from environmental and oil and gas services customers, driven by growing sales volumes and higher average selling prices for the company’s lime and limestone products. However, there was a partial offset due to decreased demand from steel customers.
United States Lime & Minerals reported a gross profit of $27.1 million in the second quarter of 2023, a substantial increase of $10.7 million, or 64.6%, compared to the $16.5 million reported in the second quarter of 2022. For the first six months of 2023, the company’s gross profit reached $51.1 million, reflecting a significant increase of $20.2 million, or 65.2%, from the $30.9 million reported in the first half of 2022.
The lime and limestone gross profit also displayed strong growth, amounting to $27.1 million in the second quarter of 2023, marking an impressive increase of $11.1 million, or 69.8%, compared to the same period in 2022. For the first six months of 2023, the lime and limestone gross profit reached $51.2 million, representing a substantial increase of $21.0 million, or 69.6%, compared to the first half of 2022.
These remarkable increases in gross profit were primarily fueled by the surge in revenues, although there were higher production costs, mainly driven by increased energy, parts and supplies, and labor expenses.
Selling, general and administrative expenses (“SG&A”) for the second quarter of 2023 were $4.3 million, reflecting an increase of $0.5 million, or 12.2%, compared to the second quarter of 2022. For the first six months of 2023, SG&A expenses reached $8.5 million, an increase of $1.0 million, or 13.2%, compared to the same period in 2022. These increases were primarily attributed to higher personnel expenses.
Interest and other income, net, for the second quarter and first six months of 2023 were $1.9 million and $3.5 million, respectively. This marked significant increases of $1.7 million and $3.2 million compared to the second quarter and first six months of 2022. These increases were driven by higher interest rates earned on higher average balances of cash and cash equivalents.
United States Lime & Minerals reported net income of $19.7 million ($3.45 per share diluted) for the second quarter of 2023, compared to $10.2 million ($1.80 per share diluted) for the same period in 2022. For the first six months of 2023, the company reported net income of $36.8 million ($6.46 per share diluted), compared to $18.9 million ($3.33 per share diluted) in the first six months of 2022. These figures reflect impressive increases of $9.5 million, or 92.5%, and $17.9 million, or 94.7%, respectively.
Timothy W. Byrne, President and Chief Executive Officer, expressed satisfaction with the company’s performance in the second quarter of 2023. He noted the ongoing pressure on lime and limestone production costs, particularly related to energy, parts, supplies, and labor. He also mentioned softening demand from steel customers and the potential impact of economic uncertainty and higher interest rates on the construction markets.
In addition to its strong financial performance, United States Lime & Minerals, Inc. announced a regular quarterly cash dividend of $0.20 per share on the company’s common stock. This dividend is payable on September 15, 2023, to shareholders of record as of August 25, 2023.
United States Lime & Minerals, Inc., headquartered in Dallas, Texas, is a NASDAQ-listed public company specializing in the manufacturing of lime and limestone products. Its diverse customer base includes construction, industrial, metals, environmental, roofing, agriculture, and oil and gas services industries. The company operates lime and limestone plants and distribution facilities across several states, supplying its high-quality products to a wide range of sectors.
Please note that this article is for informational purposes only and should not be considered investment advice. Readers should conduct their own research and consult with financial professionals before making any investment decisions.
