United States Lime & Minerals (USLM) 10-Q 2 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information
Entity Registrant Name	UNITED STATES LIME & MINERALS INC
Entity Central Index Key	82,020
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		5,599,704
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 54,519	$ 58,332
Trade receivables, net	19,214	17,444
Inventories	14,121	13,436
Prepaid expenses and other current assets	927	2,550
Total current assets	88,781	91,762
Property, plant and equipment	268,505	262,462
Less accumulated depreciation and depletion	(163,941)	(153,949)
Property, plant and equipment, net	104,564	108,513
Other assets, net	138	145
Total assets	193,483	200,420
Current liabilities:
Current installments of debt		16,667
Accounts payable	4,075	5,166
Accrued expenses	3,771	3,132
Total current liabilities	7,846	24,965
Deferred tax liabilities, net	19,491	19,259
Other liabilities	1,151	1,505
Total liabilities	28,488	45,729
Stockholders' equity:
Common stock	654	652
Additional paid-in capital	21,353	20,418
Accumulated other comprehensive loss		(1,024)
Retained earnings	193,211	184,710
Less treasury stock, at cost	(50,223)	(50,065)
Total stockholders' equity	164,995	154,691
Total liabilities and stockholders' equity	$ 193,483	$ 200,420

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Lime and limestone operations	$ 36,452	$ 37,855	$ 97,593	$ 110,226
Natural gas	577	1,218	1,950	4,214
Total revenues	37,029	39,073	99,543	114,440
Cost of revenues:
Labor and other operating expenses	22,695	25,461	64,563	74,590
Depreciation, depletion and amortization	3,967	3,729	11,736	10,952
Total cost of revenues	26,662	29,190	76,299	85,542
Gross profit	10,367	9,883	23,244	28,898
Selling, general and administrative expenses	2,467	2,404	7,266	7,004
Operating profit	7,900	7,479	15,978	21,894
Other expenses (income):
Interest expense	57	369	969	1,176
Other (income) expense, net	(54)	10	651	(43)
Total other expense (income)	3	379	1,620	1,133
Income before income taxes	7,897	7,100	14,358	20,761
Income tax expense	2,221	1,674	3,758	5,125
Net income	$ 5,676	$ 5,426	$ 10,600	$ 15,636
Income per share of common stock:
Basic (in dollars per share)	$ 1.01	$ 0.97	$ 1.89	$ 2.80
Diluted (in dollars per share)	1.01	0.97	1.89	2.80
Cash dividends per share of common stock (in dollars per share)	$ 0.125	$ 0.125	$ 0.375	$ 0.375

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Lime and limestone operations (as a percent)	98.40%	96.90%	98.00%	96.30%
Natural gas (as a percent)	1.60%	3.10%	2.00%	3.70%
Total revenues (as a percent)	100.00%	100.00%	100.00%	100.00%
Cost of revenues:
Labor and other operating expenses (as a percent)	61.30%	65.20%	64.80%	65.20%
Depreciation, depletion and amortization (as a percent)	10.70%	9.50%	11.80%	9.50%
Total cost of revenues (as a percent)	72.00%	74.70%	76.60%	74.70%
Gross profit (as a percent)	28.00%	25.30%	23.40%	25.30%
Selling, general and administrative expenses (as a percent)	6.70%	6.20%	7.30%	6.10%
Operating profit (as a percent)	21.30%	19.10%	16.10%	19.20%
Other expenses (income):
Interest expense (as a percent)	0.10%	0.90%	1.00%	1.00%
Other (income) expense, net (as a percent)	(0.10%)	0.00%	0.70%	0.00%
Total other expense (income) (as a percent)	0.00%	0.90%	1.70%	1.00%
Income before income taxes (as a percent)	21.30%	18.20%	14.40%	18.20%
Income tax expense (as a percent)	6.00%	4.30%	3.80%	4.50%
Net income (as a percent)	15.30%	13.90%	10.60%	13.70%

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 5,426	$ 10,600	$ 15,636
Other comprehensive income
Mark to market of interest rate hedges, net of tax expenses of $0 and $83, respectively, for the three-month periods, and $241 and $245, respectively, for the nine-month periods	145	422	430
Minimum pension liability adjustments, net of tax expenses of $344 for the 2015 nine-month period and $0 for each of the other periods		602
Total other comprehensive income	145	1,024	430
Comprehensive income	$ 5,571	$ 11,624	$ 16,066

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statements of Comprehensive Income
Mark to market of interest rate hedges, tax expense	$ 0	$ 83	$ 241	$ 245
Minimum pension liability adjustments, tax (expense) benefit	$ 0	$ 0	$ 344	$ 0

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities:
Net income	$ 10,600	$ 15,636
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	11,916	11,091
Amortization of deferred financing costs	25	34
Deferred income taxes	(353)	165
(Gain) loss on sale of property, plant and equipment	(137)	54
Stock-based compensation	908	822
Changes in operating assets and liabilities:
Trade receivables, net	(1,770)	(5,590)
Inventories	(685)	829
Prepaid expenses and other current assets	1,623	213
Other assets	(20)	1
Accounts payable and accrued expenses	208	(267)
Other liabilities	585	298
Net cash provided by operating activities	22,900	23,286
Investing Activities:
Purchase of property, plant and equipment	(8,080)	(8,725)
Proceeds from sale of property, plant and equipment	263	246
Net cash used in investing activities	(7,817)	(8,479)
Financing Activities:
Repayment of term loans	(16,667)	(3,750)
Cash dividends paid	(2,099)	(2,092)
Exercise of stock options	28
Purchase of treasury shares	(158)	(168)
Net cash used in financing activities	(18,896)	(6,010)
Net (decrease) increase in cash and cash equivalents	(3,813)	8,797
Cash and cash equivalents at beginning of period	58,332	49,475
Cash and cash equivalents at end of period	$ 54,519	$ 58,272

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The condensed consolidated financial statements included herein have been prepared by United States Lime & Minerals, Inc. (the “Company”) without independent audit. In the opinion of the Company’s management, all adjustments of a normal and recurring nature necessary to present fairly the financial position, results of operations, comprehensive income and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2014. The results of operations for the three- and nine-month periods ended September 30, 2015 are not necessarily indicative of operating results for the full year.

Organization

Organization	9 Months Ended
	Sep. 30, 2015
Organization
Organization	2. Organization The Company is headquartered in Dallas, Texas, and operates through two business segments. Through its Lime and Limestone Operations, the Company is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road and building contractors), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), oil and gas services, industrial (including paper and glass manufacturers), roof shingle and agriculture (including poultry and cattle feed producers) industries. The Company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Oklahoma and Texas through its wholly owned subsidiaries, Arkansas Lime Company, Colorado Lime Company, Texas Lime Company, U.S. Lime Company, U.S. Lime Company — Shreveport, U.S. Lime Company — St. Clair and U.S. Lime Company — Transportation. The Company’s Natural Gas Interests segment is held in its wholly owned subsidiary, U.S. Lime Company — O & G, LLC (“U.S. Lime O & G”). Under a lease agreement (the “O & G Lease”), U.S. Lime O & G has royalty interests ranging from 15.4% to 20% and a 20% non-operating working interest, resulting in an overall average revenue interest of 34.7%, with respect to oil and gas rights in 33 wells drilled and currently producing on the Company’s approximately 3,800 acres of land located in Johnson County, Texas, in the Barnett Shale Formation. Through U. S. Lime O & G, the Company also has a drillsite and production facility lease agreement and subsurface easement (the “Drillsite Agreement”) relating to approximately 538 acres of land contiguous to the Company’s Johnson County, Texas property. Pursuant to the Drillsite Agreement, the Company receives a 3% royalty interest and a 12.5% non-operating working interest, resulting in a 12.4% revenue interest, in the six wells drilled and currently producing from pad sites located on the Company’s property.

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies
Accounting Policies	3. Accounting Policies Revenue Recognition. The Company recognizes revenue for its Lime and Limestone Operations in accordance with the terms of its purchase orders, contracts or purchase agreements, which are generally upon shipment, and when payment is considered probable. Revenues include external freight billed to customers with related costs in cost of revenues. The Company’s returns and allowances are minimal. External freight billed to customers included in 2015 and 2014 revenues was $6.4 million and $7.0 million for the three-month periods, and $17.9 million and $20.4 for the nine-month periods, respectively, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its Natural Gas Interests, the Company recognizes revenue in the month of production and delivery. Successful-Efforts Method Used for Natural Gas Interests. The Company uses the successful-efforts method to account for oil and gas exploration and development expenditures. Under this method, drilling, completion and workover costs for successful exploratory wells and all development well costs are capitalized and depleted using the units-of-production method. Costs to drill exploratory wells that do not find proved reserves are expensed. Fair Values of Financial Instruments. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of its financial assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. There were no changes in the methods and assumptions used in measuring fair value during the period, which include, as of the valuation date, LIBOR rates over the term of the outstanding debt. The Company’s financial liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014 are summarized below (in thousands): Significant Other Observable Inputs (Level 2) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Valuation Technique Interest rate swap liabilities $ — $ ) $ — $ ) Cash flows approach Comprehensive Income. Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as mark-to-market gains or losses of interest rate hedges, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income.

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2015
Business Segments
Business Segments	4. Business Segments The Company has identified two business segments based on the distinctness of their activities and products: Lime and Limestone Operations and Natural Gas Interests. All operations are in the United States. In evaluating the operating results of the Company’s segments, management primarily reviews revenues and gross profit. The Company does not allocate corporate overhead or interest costs to its business segments. The following table sets forth operating results and certain other financial data for the Company’s two business segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues Lime and limestone operations $ $ Natural gas interests Total revenues $ $ Depreciation, depletion and amortization Lime and limestone operations $ $ Natural gas interests Total depreciation, depletion and amortization $ $ Gross profit Lime and limestone operations $ $ Natural gas interests Total gross profit $ $ Capital expenditures Lime and limestone operations $ $ Natural gas interests Total capital expenditures $ $

Income Per Share of Common Stoc

Income Per Share of Common Stock	9 Months Ended
	Sep. 30, 2015
Income Per Share of Common Stock
Income Per Share of Common Stock	5. Income Per Share of Common Stock The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income for basic and diluted income per common share $ $ Weighted-average shares for basic income per share Effect of dilutive securities: Employee and director stock options (1) Adjusted weighted-average shares and assumed exercises for diluted income per share Basic net income per common share $ $ Diluted net income per common share $ $ (1) Excludes 35.0 and 15.0 stock options for the 2015 and 2014 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the periods presented.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2015
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	6. Accumulated Other Comprehensive Loss The following table presents the components of comprehensive income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income $ $ Minimum pension liability adjustments — — — Reclassification to interest expense — Deferred income tax expense — ) ) ) Mark to market of interest rate hedges — ) ) Comprehensive income $ $ Amounts reclassified to interest expense were for payments made by the Company pursuant to the Company’s interest rate hedges. Accumulated other comprehensive loss consisted of the following (in thousands) : September 30, 2015 December 31, 2014 Mark to market of interest rate hedges, net of tax benefit $ — $ ) Minimum pension liability adjustments, net of tax benefit — ) Accumulated other comprehensive loss $ — $ )

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventories
Inventories	7. Inventories Inventories are valued principally at the lower of cost, determined using the average cost method, or market. Costs for raw materials and finished goods include materials, labor, and production overhead. Inventories consisted of the following (in thousands): September 30, 2015 December 31, 2014 Lime and limestone inventories: Raw materials $ $ Finished goods Service parts inventories $ $

Banking Facilities and Debt

Banking Facilities and Debt	9 Months Ended
	Sep. 30, 2015
Banking Facilities and Debt
Banking Facilities and Debt	8. Banking Facilities and Debt On May 7, 2015, the Company amended its credit agreement with Wells Fargo Bank, N.A. (the “Lender”) to, among other things, provide for a $75 million revolving credit facility (the “New Revolving Facility”) and reductions to interest rate margins and commitment fees (the “Amendment”). The Amendment also provides for an incremental four-year accordion feature to borrow up to an additional $50 million on the same terms, subject to approval by the Lender or another lender selected by the Company. The terms of the Amendment provide for a final maturity of the New Revolving Facility and any incremental loan on May 7, 2020; interest rates, at the Company’s option, of LIBOR plus a margin of 1.000% to 2.000% or the Lender’s Prime Rate plus a margin of 0.000% to plus 1.000%; and a commitment fee range of 0.200% to 0.350% on the undrawn portion of the New Revolving Facility. The New Revolving Facility interest rate margins and commitment fee are determined quarterly in accordance with a pricing grid based upon the Company’s Cash Flow Leverage Ratio, defined as the ratio of the Company’s total funded senior indebtedness to earnings before interest, taxes, depreciation, depletion, amortization and stock-based compensation expense (“EBITDA”) for the 12 months ended on the last day of the most recent calendar quarter, plus pro forma EBITDA from any businesses acquired during the period. Pursuant to a security agreement, dated August 25, 2004, the New Revolving Facility is secured by the Company’s existing and hereafter acquired tangible assets, intangible assets and real property. The maturity of the New Revolving Facility and any incremental loans can be accelerated if any event of default, as defined under the credit agreement, occurs. Prior to the Amendment, the Company’s credit agreement had included a ten-year $40 million term loan (the “Term Loan”), a ten-year $20 million multiple draw term loan (the “Draw Term Loan”) and a $30 million revolving credit facility (the “Revolving Facility”) (collectively, the “Credit Facilities”). The Term Loan required quarterly principal payments of $0.8 million, with a final principal payment of $10.0 million due on December 31, 2015. The Draw Term Loan required quarterly principal payments of $0.4 million, with a final principal payment of $6.7 million due on December 31, 2015. The Revolving Facility was scheduled to mature on June 1, 2015. The maturity of the Term Loan, the Draw Term Loan and the Revolving Facility could have been accelerated if any event of default, as defined under the Credit Facilities, had occurred. The Revolving Facility commitment fee had ranged from 0.250% to 0.400%. The Credit Facilities had borne interest, at the Company’s option, at either LIBOR plus a margin of 1.750% to 2.750%, or the Lender’s Prime Rate plus a margin of 0.000% to plus 1.000%. The Company had interest rate hedges, with the Lender as the counterparty to the hedges, that fixed LIBOR through maturity at 4.695%, 4.875% and 5.500% on the outstanding balance of the Term Loan, 75% of the outstanding balance of the Draw Term Loan and 25% of the outstanding balance of the Draw Term Loan, respectively. As discussed below, the Company repurchased these hedges during the second quarter 2015. Based on the LIBOR margin of 1.750% prior to the Amendment, the Company’s interest rates had been: 6.445% on the outstanding balance of the Term Loan; 6.625% on 75% of the outstanding balance of the Draw Term Loan; and 7.250% on 25% of the outstanding balance of the Draw Term Loan. The hedges had been effective as defined under applicable accounting rules. Therefore, changes in fair value of the hedges were reflected in comprehensive income. The Company would have been exposed to credit losses in the event of non-performance by the counterparty to the hedges. The Company’s mark to market of its hedges, at December 31, 2014, resulted in a liability of $0.7 million, which was included in accrued expenses on the Company’s Condensed Consolidated Balance Sheets. The Company paid $0.2 million in quarterly settlement payments pursuant to its hedges during the first quarter 2015 and $0.2 million and $0.7 million in the prior year three- and nine-month periods ended September 30, 2014, respectively. These payments were included in interest expense in the Condensed Consolidated Statements of Operations. On May 7, 2015, the Company paid off the $15.4 million balance then outstanding on the Term Loan and Draw Term Loan, as well as paid $0.5 million to repurchase the related hedges, from cash on hand. The cost to repurchase the hedges was included in interest expense. A summary of outstanding debt at the dates indicated is as follows (in thousands): September 30, December 31, 2015 2014 Term Loan $ — $ Draw Term Loan — Revolving Facility (1) — — Total current installments of debt $ — $ (1) The Company had letters of credit totaling $0.7 million issued on the New Revolving Facility at September 30, 2015 and the Revolving Facility at December 31, 2014. As the Company’s debt bore interest at floating rates, the Company estimated that the carrying values of its debt at December 31, 2014 approximated fair value.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes
Income Taxes	9. Income Taxes The Company has estimated that its effective income tax rate for 2015 will be approximately 26.2%. As in prior periods, the primary reason for the effective rate being below the federal statutory rate is due to statutory depletion, which is allowed for income tax purposes and is a permanent difference between net income for financial reporting purposes and taxable income.

Dividends

Dividends	9 Months Ended
	Sep. 30, 2015
Dividends
Dividends	10. Dividends On September 18, 2015, the Company paid $0.7 million in cash dividends, based on a dividend of $0.125 (12.5 cents) per share on its common stock, to shareholders of record at the close of business on August 28, 2015. On each of March 19 and June 19, 2015, the Company paid $0.7 million in cash dividends, based on a dividend of $0.125 (12.5 cents) per share on its common stock, to shareholders of record at the close of business on February 27 and May 29, 2015, respectively.

Employee Retirement Plan

Employee Retirement Plan	9 Months Ended
	Sep. 30, 2015
Employee Retirement Plan
Employee Retirement Plan	11. Employee Retirement Plan During the second quarter 2015, after receipt of a favorable determination letter from the Internal Revenue Service, the Company terminated a noncontributory defined benefit plan that, prior to the termination, covered substantially all of the union employees previously employed by its wholly owned subsidiary, Corson Lime Company (the “Corson Plan”). In 1997, the Company sold substantially all of the assets of Corson Lime Company, and the benefits for participants in the Corson Plan were frozen. As a result of the termination of the Corson Plan, the Company made a cash payment of $0.2 million and recognized a second quarter expense of $0.9 million ($0.6 million, net of tax benefit), included in other (income) expense, net, that was previously included in accumulated other comprehensive loss. The following table sets forth the funded status of the Corson Plan as of December 31, 2014 and Pre-Settlement, Settlement and Post-Settlement as of June 30, 2015 (in thousands): December 31, June 30, 2015 2014 Pre-Settlement Settlement Post-Settlement Projected benefit obligation $ $ $ ) $ — Fair value of plan assets ) — Underfunded status $ ) $ — $ — $ — The liability recognized for the Corson Plan on the Company’s Condensed Consolidated Balance Sheets at December 31, 2014 and September 30, 2015 are as follows (in thousands): December 31, 2014 September 30, 2015 Accrued benefit cost $ — The following table provides the components of the Corson Plan net periodic benefit cost for the period ended September 30, 2015 (in thousands): Net periodic benefit cost $ Settlement charge Total net periodic benefit cost $

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events
Subsequent Events	12. Subsequent Events On October 28, 2015, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.125 (12.5 cents) per share on the Company’s common stock. This dividend is payable on December 18, 2015 to shareholders of record at the close of business on November 27, 2015.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies
Revenue Recognition	Revenue Recognition. The Company recognizes revenue for its Lime and Limestone Operations in accordance with the terms of its purchase orders, contracts or purchase agreements, which are generally upon shipment, and when payment is considered probable. Revenues include external freight billed to customers with related costs in cost of revenues. The Company’s returns and allowances are minimal. External freight billed to customers included in 2015 and 2014 revenues was $6.4 million and $7.0 million for the three-month periods, and $17.9 million and $20.4 for the nine-month periods, respectively, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its Natural Gas Interests, the Company recognizes revenue in the month of production and delivery.
Successful-Efforts Method Used for Natural Gas Interests	Successful-Efforts Method Used for Natural Gas Interests. The Company uses the successful-efforts method to account for oil and gas exploration and development expenditures. Under this method, drilling, completion and workover costs for successful exploratory wells and all development well costs are capitalized and depleted using the units-of-production method. Costs to drill exploratory wells that do not find proved reserves are expensed.
Fair Values of Financial Instruments	Fair Values of Financial Instruments. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of its financial assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. There were no changes in the methods and assumptions used in measuring fair value during the period, which include, as of the valuation date, LIBOR rates over the term of the outstanding debt. The Company’s financial liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014 are summarized below (in thousands): Significant Other Observable Inputs (Level 2) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Valuation Technique Interest rate swap liabilities $ — $ ) $ — $ ) Cash flows approach
Comprehensive Income	Comprehensive Income. Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as mark-to-market gains or losses of interest rate hedges, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income.

Accounting Policies (Tables)

Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Policies
Schedule of the entity's financial liabilities measured at fair value on a recurring basis	The Company’s financial liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014 are summarized below (in thousands): Significant Other Observable Inputs (Level 2) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Valuation Technique Interest rate swap liabilities $ — $ ) $ — $ ) Cash flows approach

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2015
Business Segments
Schedule of operating results and certain other financial data for the business segments	The following table sets forth operating results and certain other financial data for the Company’s two business segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues Lime and limestone operations $ $ Natural gas interests Total revenues $ $ Depreciation, depletion and amortization Lime and limestone operations $ $ Natural gas interests Total depreciation, depletion and amortization $ $ Gross profit Lime and limestone operations $ $ Natural gas interests Total gross profit $ $ Capital expenditures Lime and limestone operations $ $ Natural gas interests Total capital expenditures $ $

Income Per Share of Common St23

Income Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2015
Income Per Share of Common Stock
Schedule of computation of basic and diluted income per common share	The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income for basic and diluted income per common share $ $ Weighted-average shares for basic income per share Effect of dilutive securities: Employee and director stock options (1) Adjusted weighted-average shares and assumed exercises for diluted income per share Basic net income per common share $ $ Diluted net income per common share $ $ (1) Excludes 35.0 and 15.0 stock options for the 2015 and 2014 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the periods presented.

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2015
Accumulated Other Comprehensive Loss
Schedule of components of comprehensive income	The following table presents the components of comprehensive income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income $ $ Minimum pension liability adjustments — — — Reclassification to interest expense — Deferred income tax expense — ) ) ) Mark to market of interest rate hedges — ) ) Comprehensive income $ $
Schedule of accumulated other comprehensive loss	Accumulated other comprehensive loss consisted of the following (in thousands) : September 30, 2015 December 31, 2014 Mark to market of interest rate hedges, net of tax benefit $ — $ ) Minimum pension liability adjustments, net of tax benefit — ) Accumulated other comprehensive loss $ — $ )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventories
Schedule of inventories	Inventories consisted of the following (in thousands): September 30, 2015 December 31, 2014 Lime and limestone inventories: Raw materials $ $ Finished goods Service parts inventories $ $

Banking Facilities and Debt (Ta

Banking Facilities and Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Banking Facilities and Debt
Summary of outstanding debt	A summary of outstanding debt at the dates indicated is as follows (in thousands): September 30, December 31, 2015 2014 Term Loan $ — $ Draw Term Loan — Revolving Facility (1) — — Total current installments of debt $ — $ (1) The Company had letters of credit totaling $0.7 million issued on the New Revolving Facility at September 30, 2015 and the Revolving Facility at December 31, 2014.

Employee Retirement Plan (Table

Employee Retirement Plan (Tables)	9 Months Ended
	Sep. 30, 2015
Employee Retirement Plan
Schedule of funded status of the Corson Plan accrued pension benefit obligation	The following table sets forth the funded status of the Corson Plan as of December 31, 2014 and Pre-Settlement, Settlement and Post-Settlement as of June 30, 2015 (in thousands): December 31, June 30, 2015 2014 Pre-Settlement Settlement Post-Settlement Projected benefit obligation $ $ $ ) $ — Fair value of plan assets ) — Underfunded status $ ) $ — $ — $ —
Schedule of net liability recognized for the Corson Plan on the Company's Consolidated Balance Sheets	The liability recognized for the Corson Plan on the Company’s Condensed Consolidated Balance Sheets at December 31, 2014 and September 30, 2015 are as follows (in thousands) December 31, 2014 September 30, 2015 Accrued benefit cost $ —
Schedule of components of the Corson Plan net periodic benefit cost	The following table provides the components of the Corson Plan net periodic benefit cost for the period ended September 30, 2015 (in thousands): Net periodic benefit cost $ Settlement charge Total net periodic benefit cost $

Organization (Details)

Organization (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2015a	Sep. 30, 2015asegment
Organization
Number of business segments | segment		2
O & G Lease
Organization
Area of land (in acres)	3,800	3,800
U.S. Lime O & G | O & G Lease
Organization
Percentage of non-operating working interest		20.00%
Overall average revenue interest (as a percent)		34.70%
Number of wells		33
U.S. Lime O & G | O & G Lease | Minimum
Organization
Percentage of royalty interest		15.40%
U.S. Lime O & G | O & G Lease | Maximum
Organization
Percentage of royalty interest		20.00%
U.S. Lime O & G | Drillsite Agreement
Organization
Percentage of royalty interest		3.00%
Percentage of non-operating working interest		12.50%
Overall average revenue interest (as a percent)		12.40%
Number of wells		6
Area of land under a lease (in acres)	538

Accounting Policies (Details)

Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenue Recognition
External freight billed to customers included in revenue	$ 6,400	$ 7,000	$ 17,900	$ 20,400
Recurring | Cash flows approach
Fair Values of Financial Instruments
Interest rate swap liabilities					$ (661)
Recurring | Significant Other Observable Inputs (Level 2) | Cash flows approach
Fair Values of Financial Instruments
Interest rate swap liabilities					$ (661)

Business Segments (Details)

Business Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)
Business Segments
Number of business segments | segment			2
Business segments
Revenues	$ 37,029	$ 39,073	$ 99,543	$ 114,440
Depreciation, depletion and amortization	3,967	3,729	11,736	10,952
Gross profit	10,367	9,883	23,244	28,898
Capital expenditures	1,770	3,178	8,080	8,725
Lime and limestone operations
Business segments
Revenues	36,452	37,855	97,593	110,226
Depreciation, depletion and amortization	3,786	3,514	11,175	10,293
Gross profit	10,320	9,271	22,826	26,637
Capital expenditures	1,766	3,171	8,069	8,702
Natural gas interests
Business segments
Revenues	577	1,218	1,950	4,214
Depreciation, depletion and amortization	181	215	561	659
Gross profit	47	612	418	2,261
Capital expenditures	$ 4	$ 7	$ 11	$ 23

Income Per Share of Common St31

Income Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Per Share of Common Stock
Net income for basic and diluted income per common share	$ 5,676	$ 5,426	$ 10,600	$ 15,636
Weighted-average shares for basic income per share	5,600,000	5,578,000	5,599,000	5,578,000
Effect of dilutive securities:
Employee and director stock options (in shares)	4,000	11,000	6,000	10,000
Adjusted weighted-average shares and assumed exercises for diluted income per share	5,604,000	5,589,000	5,605,000	5,588,000
Basic net income per common share (in dollars per share)	$ 1.01	$ 0.97	$ 1.89	$ 2.80
Diluted net income per common share (in dollars per share)	$ 1.01	$ 0.97	$ 1.89	$ 2.80
Options
Anti-dilutive securities
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities			35,000	15,000

Accumulated Other Comprehensi32

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Components of comprehensive income
Net income	$ 5,676	$ 5,426	$ 10,600	$ 15,636
Minimum pension liability adjustments			946
Reclassification to interest expense		225	678	710
Deferred income tax expense		(83)	(585)	(245)
Mark to market of interest rate hedges		3	(15)	(35)
Comprehensive income	$ 5,676	$ 5,571	$ 11,624	$ 16,066
Accumulated other comprehensive loss
Mark to market of interest rate hedges, net of tax benefit					$ (422)
Minimum pension liability adjustments, net of tax benefit					(602)
Accumulated other comprehensive loss					$ (1,024)

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Lime and limestone inventories:
Raw materials	$ 5,821	$ 5,693
Finished goods	2,281	2,283
Total	8,102	7,976
Service parts inventories	6,019	5,460
Total inventories	$ 14,121	$ 13,436

Banking Facilities and Debt (De

Banking Facilities and Debt (Details) - USD ($)	May. 07, 2015	Mar. 31, 2015	Sep. 30, 2014	May. 06, 2015	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Banking facilities and other debt
Paid off the outstanding Term loan and Draw term loan	$ 15,400,000
Summary of outstanding debt
Total current installments of debt							$ 16,667,000
Interest rate swaps
Interest rate hedges
Interest rate swap liabilities							700,000
Quarterly settlement payment pursuant to hedges	500,000	$ 200,000	$ 200,000		$ 700,000
LIBOR
Banking facilities and other debt
Interest rate basis				LIBOR
Lender's prime rate
Banking facilities and other debt
Interest rate basis				Lender's Prime Rate
New Revolving Facility
Banking facilities and other debt
Maximum borrowing capacity	$ 75,000,000
Accordion feature period	4 years
Maximum borrowing capacity accordion feature	$ 50,000,000
Letters of credit outstanding						$ 700,000
New Revolving Facility | Minimum
Banking facilities and other debt
Commitment fee (as a percent)	0.20%
New Revolving Facility | Minimum | LIBOR
Banking facilities and other debt
Interest rate margin (as a percent)	1.00%
New Revolving Facility | Minimum | Lender's prime rate
Banking facilities and other debt
Interest rate margin (as a percent)	0.00%
New Revolving Facility | Maximum
Banking facilities and other debt
Commitment fee (as a percent)	0.35%
New Revolving Facility | Maximum | LIBOR
Banking facilities and other debt
Interest rate margin (as a percent)	2.00%
New Revolving Facility | Maximum | Lender's prime rate
Banking facilities and other debt
Interest rate margin (as a percent)	1.00%
Term Loan
Banking facilities and other debt
Term				10 years
Face amount of term loan				$ 40,000,000
Quarterly principal payments				800,000
Final principal payment				$ 10,000,000
Summary of outstanding debt
Total current installments of debt							10,000,000
Term Loan | LIBOR | Interest rate swaps
Interest rate hedges
LIBOR (as a percent)				4.695%
Current interest rate (as a percent)				6.445%
Draw Term Loan
Banking facilities and other debt
Term				10 years
Face amount of term loan				$ 20,000,000
Quarterly principal payments				400,000
Final principal payment				$ 6,700,000
Summary of outstanding debt
Total current installments of debt							6,667,000
75% of the outstanding balance of the Draw Term Loan | Interest rate swaps
Interest rate hedges
Percentage of outstanding balance of debt hedged				75.00%
75% of the outstanding balance of the Draw Term Loan | LIBOR | Interest rate swaps
Interest rate hedges
LIBOR (as a percent)				4.875%
Current interest rate (as a percent)				6.625%
25% of the outstanding balance of the Draw Term Loan | Interest rate swaps
Interest rate hedges
Percentage of outstanding balance of debt hedged				25.00%
25% of the outstanding balance of the Draw Term Loan | LIBOR | Interest rate swaps
Interest rate hedges
LIBOR (as a percent)				5.50%
Current interest rate (as a percent)				7.25%
Revolving Facility
Banking facilities and other debt
Maximum borrowing capacity				$ 30,000,000
Letters of credit outstanding							$ 700,000
Revolving Facility | Minimum
Banking facilities and other debt
Commitment fee (as a percent)				0.25%
Revolving Facility | Minimum | LIBOR
Banking facilities and other debt
Interest rate margin (as a percent)				1.75%
Revolving Facility | Minimum | Lender's prime rate
Banking facilities and other debt
Interest rate margin (as a percent)				0.00%
Revolving Facility | Maximum
Banking facilities and other debt
Commitment fee (as a percent)				0.40%
Revolving Facility | Maximum | LIBOR
Banking facilities and other debt
Interest rate margin (as a percent)				2.75%
Revolving Facility | Maximum | Lender's prime rate
Banking facilities and other debt
Interest rate margin (as a percent)				1.00%

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Sep. 30, 2015
Income Taxes
Income tax expense (as a percent)	26.20%

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 18, 2015	Jun. 19, 2015	Mar. 19, 2015	Sep. 30, 2015	Sep. 30, 2014
Dividends
Cash dividends paid	$ 700	$ 700	$ 700	$ 2,099	$ 2,092
Cash dividend (in dollars per share)	$ 0.125	$ 0.125	$ 0.125
Dividends payable date of record	Aug. 28, 2015	May 29, 2015	Feb. 27, 2015

Employee Retirement Plan (Detai

Employee Retirement Plan (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Employee Retirement Plan
Cash payment on termination of contract	$ 200
Expense on providing contractual termination benefits recognized	900
Expense on providing contractual termination benefits recognized, net of tax benefit	$ 600
Funded status
Projected benefit obligation				$ 2,137
Fair value of plan assets				1,862
Underfunded status				(275)
Projected benefit obligation, Pre Settlement		$ 2,039
Fair value of plan assets, Pre Settlement		2,039
Projected benefit obligation, Settlement		(2,039)
Fair value of plan assets, Settlement		$ (2,039)
Liability recognized on the consolidated balance sheets
Accrued benefit cost				$ 275
Components of the net periodic benefit cost
Net periodic benefit cost			$ 91
Settlement charge			814
Total net periodic benefit cost			$ 905

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Oct. 28, 2015	Sep. 18, 2015	Jun. 19, 2015	Mar. 19, 2015
Subsequent event
Quarterly cash dividend (in dollars per share)		$ 0.125	$ 0.125	$ 0.125
Dividends payable date of record		Aug. 28, 2015	May 29, 2015	Feb. 27, 2015
Subsequent event
Subsequent event
Quarterly cash dividend (in dollars per share)	$ 0.125
Dividends payable date declared	Oct. 28, 2015
Dividends payable date of record	Nov. 27, 2015
Dividends payable date to be paid	Dec. 18, 2015