Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 02, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | UNITED STATES LIME & MINERALS INC | ||
Entity Central Index Key | 82,020 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 117,751,709 | ||
Entity Common Stock, Shares Outstanding | 5,576,539 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 74,712 | $ 59,926 |
Trade receivables, net | 16,781 | 15,889 |
Inventories, net | 12,433 | 14,728 |
Prepaid expenses and other current assets | 1,110 | 1,418 |
Total current assets | 105,036 | 91,961 |
Property, plant and equipment: | ||
Mineral reserves and land | 23,687 | 20,196 |
Proved natural gas properties, successful-efforts method | 18,412 | 18,398 |
Buildings and building and leasehold improvements | 5,611 | 5,523 |
Machinery and equipment | 232,912 | 222,812 |
Furniture and fixtures | 961 | 961 |
Automotive equipment | 4,011 | 3,796 |
Property, plant and equipment | 285,594 | 271,686 |
Less accumulated depreciation and depletion | (180,613) | (167,308) |
Property, plant and equipment, net | 104,981 | 104,378 |
Other assets, net | 142 | 160 |
Total assets | 210,159 | 196,499 |
Current liabilities: | ||
Accounts payable | 5,587 | 6,022 |
Accrued expenses | 3,521 | 2,720 |
Total current liabilities | 9,108 | 8,742 |
Deferred tax liabilities, net | 19,832 | 19,184 |
Other liabilities | 1,580 | 1,946 |
Total liabilities | 30,520 | 29,872 |
Stockholders' equity: | ||
Preferred stock, $5.00 par value; authorized 500,000 shares; none issued or outstanding | ||
Common stock, $0.10 par value; authorized 15,000,000 shares; 6,563,440 and 6,541,049 shares issued at December 31, 2016 and 2015, respectively | 657 | 655 |
Additional paid-in capital | 22,831 | 21,642 |
Accumulated other comprehensive loss | (223) | |
Retained earnings | 209,770 | 194,798 |
Less treasury stock, at cost 989,300 and 935,368 shares at December 31, 2016 and 2015, respectively | (53,396) | (50,468) |
Total stockholders' equity | 179,639 | 166,627 |
Total liabilities and stockholders' equity | $ 210,159 | $ 196,499 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, authorized shares | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized shares | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,563,440 | 6,541,049 |
Treasury stock, shares | 989,300 | 935,368 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Lime and limestone operations | $ 137,190 | $ 128,390 | $ 144,567 |
Natural gas interests | 2,092 | 2,447 | 5,274 |
Total revenues | 139,282 | 130,837 | 149,841 |
Labor and other operating expenses | |||
Lime and limestone operations | 89,095 | 85,080 | 96,798 |
Natural gas interests | 1,164 | 1,259 | 1,546 |
Depreciation, depletion and amortization | 15,931 | 15,784 | 14,706 |
Total cost of revenues | 106,190 | 102,123 | 113,050 |
Gross profit | 33,092 | 28,714 | 36,791 |
Selling, general and administrative expenses, including depreciation and amortization expense of $210, $249 and $197 in 2016, 2015 and 2014, respectively | 9,612 | 9,628 | 9,469 |
Operating profit | 23,480 | 19,086 | 27,322 |
Other expenses (income): | |||
Interest expense | 246 | 1,036 | 1,529 |
Other (income) expense, net | (384) | 569 | (129) |
Total other expense (income) | (138) | 1,605 | 1,400 |
Income before income taxes | 23,618 | 17,481 | 25,922 |
Income tax expense | 5,864 | 4,595 | 6,555 |
Net income | $ 17,754 | $ 12,886 | $ 19,367 |
Net income per share of common stock: | |||
Basic (in dollars per share) | $ 3.19 | $ 2.30 | $ 3.47 |
Diluted (in dollars per share) | 3.19 | 2.30 | 3.47 |
Cash dividends per share of common stock (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Income | |||
Depreciation and amortization expense | $ 210 | $ 249 | $ 197 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 17,754 | $ 12,886 | $ 19,367 |
Other comprehensive (loss) income | |||
Mark to market on foreign exchange hedges, net of tax benefit of $129 for 2016 | (223) | ||
Mark to market of interest rate hedges, net of tax expense of $241 and $317 for 2015 and 2014, respectively | 422 | 555 | |
Minimum pension liability adjustment, net of tax expense (benefit) of $344 and $(46) for 2015 and 2014, respectively | 602 | (81) | |
Total other comprehensive (loss) income | (223) | 1,024 | 474 |
Comprehensive (loss) income | $ 17,531 | $ 13,910 | $ 19,841 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income | |||
Mark to market of foreign exchange hedges, tax benefit | $ 129 | ||
Mark to market of interest rate hedges, tax expense | $ 241 | $ 317 | |
Minimum pension liability adjustments, tax expense (benefit) | $ 344 | $ (46) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock | Total |
Balances at Dec. 31, 2013 | $ 650 | $ 19,319 | $ (1,498) | $ 168,133 | $ (49,799) | $ 136,805 |
Balances (in shares) at Dec. 31, 2013 | 5,575,132 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised | (1) | (1) | ||||
Stock options exercised (in shares) | 9,117 | |||||
Stock-based compensation | $ 2 | 1,100 | 1,102 | |||
Stock-based compensation (in shares) | 15,268 | |||||
Treasury shares purchased | (266) | (266) | ||||
Treasury shares purchased (in shares) | (4,198) | |||||
Cash dividends paid | (2,790) | (2,790) | ||||
Net income | 19,367 | 19,367 | ||||
Minimum pension liability adjustment, net of tax expense (benefit) of $344 and $(46) for 2015 and 2014, respectively | (81) | (81) | ||||
Mark to market of interest rate hedges, net of tax expense of $241 and $317 for 2015 and 2014, respectively | 555 | 555 | ||||
Comprehensive (loss) income | 474 | 19,367 | 19,841 | |||
Balances at Dec. 31, 2014 | $ 652 | 20,418 | (1,024) | 184,710 | (50,065) | 154,691 |
Balances (in shares) at Dec. 31, 2014 | 5,595,319 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised | 28 | 28 | ||||
Stock options exercised (in shares) | 1,000 | |||||
Stock-based compensation | $ 3 | 1,196 | 1,199 | |||
Stock-based compensation (in shares) | 16,261 | |||||
Treasury shares purchased | (403) | (403) | ||||
Treasury shares purchased (in shares) | (6,899) | |||||
Cash dividends paid | (2,798) | (2,798) | ||||
Net income | 12,886 | 12,886 | ||||
Minimum pension liability adjustment, net of tax expense (benefit) of $344 and $(46) for 2015 and 2014, respectively | 602 | 602 | ||||
Mark to market of interest rate hedges, net of tax expense of $241 and $317 for 2015 and 2014, respectively | 422 | 422 | ||||
Comprehensive (loss) income | 1,024 | 12,886 | 13,910 | |||
Balances at Dec. 31, 2015 | $ 655 | 21,642 | 194,798 | (50,468) | 166,627 | |
Balances (in shares) at Dec. 31, 2015 | 5,605,681 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised | $ 1 | 154 | 155 | |||
Stock options exercised (in shares) | 5,683 | |||||
Stock-based compensation | $ 1 | 1,035 | 1,036 | |||
Stock-based compensation (in shares) | 16,708 | |||||
Treasury shares purchased | (2,928) | $ (2,928) | ||||
Treasury shares purchased (in shares) | (53,932) | (50,068) | ||||
Cash dividends paid | (2,782) | $ (2,782) | ||||
Net income | 17,754 | 17,754 | ||||
Mark to market of foreign exchange hedges, net of $129 tax benefit | (223) | (223) | ||||
Comprehensive (loss) income | (223) | 17,754 | 17,531 | |||
Balances at Dec. 31, 2016 | $ 657 | $ 22,831 | $ (223) | $ 209,770 | $ (53,396) | $ 179,639 |
Balances (in shares) at Dec. 31, 2016 | 5,574,140 |
Consolidated Statements of Sto9
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Stockholders' Equity | |||
Minimum pension liability adjustments, tax (expense) benefit | $ (344) | $ 46 | |
Mark to market of interest rate hedges, tax expense | $ 241 | $ 317 | |
Mark to market of foreign exchange hedges, tax benefit | $ 129 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | |||
Net income | $ 17,754 | $ 12,886 | $ 19,367 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 16,141 | 16,033 | 14,903 |
Amortization of deferred financing costs | 14 | 29 | 34 |
Deferred income taxes | 648 | (227) | 1,059 |
Loss on disposition of property, plant and equipment | 622 | 39 | 78 |
Stock-based compensation | 1,036 | 1,199 | 1,102 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (892) | 1,555 | (3,347) |
Inventories, net | 2,295 | (1,292) | 252 |
Prepaid expenses and other current assets | 308 | 698 | (882) |
Other assets | 4 | (47) | 16 |
Accounts payable and accrued expenses | 532 | 198 | (952) |
Other liabilities | (615) | 1,423 | 344 |
Net cash provided by operating activities | 37,847 | 32,494 | 31,974 |
INVESTING ACTIVITIES: | |||
Purchase of property, plant and equipment | (17,664) | (11,459) | (11,672) |
Acquisition of assets of a business | (50) | (50) | (3,705) |
Proceeds from sale of property, plant and equipment | 208 | 449 | 316 |
Net cash used in investing activities | (17,506) | (11,060) | (15,061) |
FINANCING ACTIVITIES: | |||
Repayments of term loans | (16,667) | (5,000) | |
Cash dividends paid | (2,782) | (2,798) | (2,790) |
Proceeds from exercise of stock options | 155 | 28 | |
Purchase of treasury shares | (2,928) | (403) | (266) |
Net cash used in financing activities | (5,555) | (19,840) | (8,056) |
Net increase in cash and cash equivalents | 14,786 | 1,594 | 8,857 |
Cash and cash equivalents at beginning of period | 59,926 | 58,332 | 49,475 |
Cash and cash equivalents at end of period | $ 74,712 | $ 59,926 | $ 58,332 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (1) Summary (a) Organization United States Lime & Minerals, Inc. (the “Company”) is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road and building contractors), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), industrial (including paper and glass manufacturers), metals (including steel producers), roof shingle, oil and gas services and agriculture (including poultry and cattle feed producers) industries. The Company is headquartered in Dallas, Texas and 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. In addition, the Company, through its wholly owned subsidiary, U.S. Lime Company – O & G, LLC, has royalty and non‑operating working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation. (b) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. (c) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and judgments. (d) Statements of Cash Flows For purposes of reporting cash flows, the Company considers all certificates of deposit and highly‑liquid debt instruments, such as U.S. Treasury bills and notes, with maturities, at the time of purchase, of three months or less to be cash equivalents. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. Supplemental cash flow information is presented below: Years Ended December 31, 2016 2015 2014 Cash paid during the year for: Interest $ $ $ Income taxes $ $ $ (e) 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 revenues was $26,568, $23,219 and $27,055 for 2016, 2015 and 2014, respectively, which approximates the amount of external freight billed to customers 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. (f) 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. Specific inputs that had been used to value the Company’s interest rate swap liabilities included quoted three-month LIBOR rates for the remaining life of the interest rate swaps. Specific inputs used to value the Company’s foreign exchange hedges were Euro to U.S. Dollar exchange rates for the expected future payment dates for the Company’s commitments denominated in Euros. There were no changes in the methods and assumptions used in measuring fair value during the period. The carrying values of cash and cash equivalents, trade receivables, other current assets, accounts payable and accrued expenses approximate fair value due to the short maturity of these instruments. The Company’s foreign exchange hedges are carried at fair value at December 31, 2016. See Notes 1(p), 3, 4 and 9. Financial liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of December 31, Significant Other Observable Inputs (Level 2) December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Valuation Technique Foreign exchange hedges $ $ — $ $ — Cash flows approach (g) Concentration of Credit Risk and Trade Receivables Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, trade receivables and derivative financial instruments. The Company places its cash and cash equivalents with high credit quality financial institutions and its derivative financial instruments with financial institutions and other firms that management believes have high credit ratings. The Company’s cash and cash equivalents at commercial banking institutions normally exceed federally insured limits. For a discussion of the credit risks associated with the Company’s derivative financial instruments, see Notes 3 and 9. The majority of the Company’s trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts or purchase agreements. Credit losses relating to trade receivables have generally been within management expectations and historical trends. Uncollected trade receivables are charged‑off when identified by management to be unrecoverable. Trade receivables are presented net of the related allowance for doubtful accounts, which totaled $334 and $400 at December 31, 2016 and 2015, respectively. Additions and write‑offs to the Company’s allowance for doubtful accounts during the years ended December 31 are as follows: 2016 2015 Beginning balance $ $ Additions Write-offs Ending balance $ $ (h) Inventories, Net 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. A summary of inventories is as follows: December 31, December 31, 2016 2015 Lime and limestone inventories: Raw materials $ $ Finished goods $ $ Service parts inventories $ $ (i) Property, Plant and Equipment For major constructed assets, the capitalized cost includes the price paid by the Company for labor and materials plus interest and internal and external project management costs that are directly related to the constructed assets. Machinery and equipment at December 31, 2016 and 2015 included $4,284 and $4,113, respectively, of construction in progress for various capital projects. No interest costs were capitalized for the years ended December 31, 2016 and 2015. Depreciation of property, plant and equipment is being provided for by the straight‑line method over estimated useful lives as follows: Buildings and building and leasehold improvements - 20 years Machinery and equipment - 20 years Furniture and fixtures - 10 years Automotive equipment - 10 years Maintenance and repairs are charged to expense as incurred; renewals and betterments are capitalized. When units of property are retired or otherwise disposed of, their cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to income. The Company expenses all exploration costs as incurred as well as costs incurred at an operating quarry or mine, other than capital expenditures and inventory. Costs to acquire mineral reserves or mineral interests are capitalized upon acquisition. Development costs incurred to develop new mineral reserves, to expand the capacity of a quarry or mine, or to develop quarry or mine areas substantially in advance of current production are capitalized once proven and probable reserves exist and can be economically produced. For each quarry or mine, capitalized costs to acquire and develop mineral reserves are depleted using the units‑of‑production method based on the proven and probable reserves for such quarry or mine. The Company reviews its long‑lived assets for impairment and, when events or circumstances indicate the carrying amount of an asset may not be recoverable, the Company determines if impairment of value exists. If the estimated undiscounted future net cash flows are less than the carrying amount of the asset, an impairment exists, and an impairment loss must be calculated and recorded. If an impairment exists, the impairment loss is calculated based on the excess of the carrying amount of the asset over the asset’s fair value. Any impairment loss is treated as a permanent reduction in the carrying value of the asset. Through December 31, 2016, no events or circumstances arose that would require the Company to record a provision for impairment of its long‑lived assets. (j) 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. (k) Asset Retirement Obligations The Company recognizes legal obligations for reclamation and remediation associated with the retirement of long‑lived assets at their fair value at the time the obligations are incurred (“AROs”). Over time, the liability for AROs is recorded at its present value each period through accretion expense, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company either settles the AROs for the recorded amount or recognizes a gain or loss. As of December 31, 2016 and 2015, the Company’s AROs included in other liabilities and accrued expenses were $1,838 and $2,058, respectively. As of December 31, 2016, $968 of assets associated with the Company’s AROs were not fully depreciated. During 2016 and 2015, the Company spent $311 and $140, respectively, on its AROs, and recognized accretion expense of $70, $60 and $57 in 2016, 2015 and 2014, respectively, on its AROs. The AROs were estimated based on studies and the Company’s process knowledge and estimates, and are discounted using a credit adjusted risk-free interest rate. The AROs are adjusted when further information warrants an adjustment. The Company estimates annual expenditures of approximately $100 to $200 each in years 2017 through 2021 relating to its AROs. (l) Other Assets Other assets consist of the following: December 31, 2016 2015 Deferred financing costs $ $ Other $ $ (m) Environmental Expenditures Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are expensed. Liabilities are recorded at their present value when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Generally, the timing of these accruals will coincide with completion of a feasibility study or the Company’s commitment to a formal plan of action. The Company incurred capital expenditures related to environmental matters of approximately $477 in 2016, $455 in 2015 and $1,038 in 2014. (n) Income Per Share of Common Stock The following table sets forth the computation of basic and diluted income per common share: Years Ended December 31, 2016 2015 2014 Net income for basic and diluted income per common share $ $ $ Weighted-average shares for basic income per common share Effect of dilutive securities: Employee and director stock options (1) Adjusted weighted-average shares and assumed exercises for diluted income per common share Basic net income per common share $ $ $ Diluted net income per common share $ $ $ (1) Excludes 22,425, 24, 225 and 7,500 stock options in 2016, 2015 and 2014, respectively, as antidilutive because the exercise price exceeded the average per share market price for the periods presented. (o) Stock‑Based Compensation The Company expenses all stock‑based payments to employees and directors, including grants of stock options and restricted stock, in the Company’s Consolidated Statements of Income based on their fair values. Compensation cost is recognized on a straight-line basis over the vesting period. (p) Derivative Instruments and Hedging Activities Every derivative instrument (including certain derivative instruments embedded in other contracts) is recorded on the Company’s Consolidated Balance Sheets as either an asset or liability measured at its fair value. Changes in the derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. If the derivative is designated as a cash flow hedge, changes in fair value are recognized in comprehensive income or loss until the hedged item is recognized in earnings. The Company estimated fair value utilizing the cash flows valuation technique. The fair values of derivative contracts that expire in less than one year are recognized as current assets or liabilities. Those that expire in more than one year are recognized as long-term assets or liabilities. See Notes 1(f), 3, 4 and 9. (q) Income Taxes The Company utilizes the asset and liability approach in its reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Income tax related interest and penalties are included in income tax expense. The Company also assesses individual tax positions to determine if they meet the criteria for some or all of the benefits of that position to be recognized in the Company’s financial statements. The Company only recognizes tax positions that meet the more‑likely‑than‑not recognition threshold. (r) 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 and foreign exchange hedges and minimum pension liability adjustments, are reported as a separate component of the stockholders’ equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. See Notes 1(p), 3, 4 and 6. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | (2) New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will be effective for the Company beginning January 1, 2018, with early adoption permitted for annual periods beginning after December 15, 2016. Almost all of the Company’s purchase orders, contracts or purchase agreements do not contain performance obligations other than delivery of the agreed upon product, which is primarily FOB shipping point. Thus, the Company generally recognizes revenue upon shipment of the product. While the Company is still in the process of completing an analysis of all of its revenue generating activities and the contracts which might impact its revenue generating activities in light of the new standard, the Company does not believe that any of its revenue streams will be materially affected by the adoption of ASU 2014-09, and therefore it does not expect its Consolidated Statements of Operations will be materially affected. The Company plans to adopt ASU 2014-09 using the modified retrospective approach and recognize a cumulative effect of the change, if any, to opening retained earnings in the year of adoption. In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a period of one year after the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for the Company beginning January 1, 2017, with early adoption permitted. The Company applied this guidance in 2016 and the effect of adopting this standard was not significant to the Company’s Consolidated Financial Statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), “Leases,” which requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous guidance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those periods, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. As of December 31, 2016 and 2015, the Company’s undiscounted minimum contractual commitments under long-term leases, which were not recorded on the Company’s Consolidated Balance Sheets, were $6,778 and $6,771, respectively, which is an estimate of the effect on total assets and total liabilities that the new accounting standard would have on those dates. The Company is currently evaluating the effect that this standard will have on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (“ASU 2016-09”), “Compensation–Stock Compensation,” which requires that excess tax benefits (which represent the excess of actual tax benefits received at the date of vesting or settlement over the vesting period or upon issuance of share-based payments) and tax deficiencies (which represents the amount by which actual tax benefits received at the date of vesting or settlement is lower than the benefits recognized over the vesting period or upon issuance of share-based payments) be recorded in the income statement as a reduction or increase of income taxes when an award vests. It also requires excess tax benefits to be classified as an operating activity in the statement of cash flows rather than a financing activity. In addition, it simplifies other aspects of share-based payment transactions, including classification of awards that permit repurchase to satisfy statutory tax withholding requirements and classification of tax payments on behalf of employees on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016 and interim periods within those periods, with early adoption permitted. The Company will adopt this guidance in the first quarter 2017. Application of ASU 2016-09 may create volatility in the Company’s effective tax rate and diluted earnings per share due to the tax effects being recorded to the Company’s Consolidated Statements of Income. The volatility in future periods will depend primarily on the Company’s stock price at the vesting dates and the number of awards that vest each period. As permitted by the guidance, the Company will elect to recognize forfeitures as they occur, rather than estimating forfeitures as previously required. The Company does not believe that adoption of ASU 2016-09 will have a material effect on the Company’s Consolidated Financial Statements. |
Banking Facilities and Debt
Banking Facilities and Debt | 12 Months Ended |
Dec. 31, 2016 | |
Banking Facilities and Debt | |
Banking Facilities and Debt | (3) 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 $75,000 revolving credit facility (the “New Revolving Facility”) and reduced 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 $50,000 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% (previously 1.750%) to 2.000% (previously 2.750%), or the Lender’s Prime Rate plus a margin of 0.000% to plus 1.000%; and a commitment fee range of 0.200% (previously 0.250%) to 0.350% (previously 0.400%) 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. The Company’s maximum Cash Flow Leverage Ratio is 3.50 to 1 (previously 3.25 to 1). As of October 27, 2016, the Company amended its credit agreement to increase the letter of credit sublimit under the New Revolving Facility from $5,000 to $10,000. The Company may pay dividends so long as it remains in compliance with the provisions of the Company’s credit agreement, and may purchase, redeem or otherwise acquire shares of its common stock so long as its pro forma Cash Flow Leverage Ratio is less than 3.00 to 1.00 and no default or event of default exists or would exist after giving effect to such stock repurchase. Prior to the Amendment, the Company’s credit agreement included a ten‑year $40,000 term loan (the “Term Loan”), a ten‑year $20,000 multiple draw term loan (the “Draw Term Loan”) and a $30,000 revolving credit facility (the “Revolving Facility”) (collectively, the “Credit Facilities”). The Term Loan required quarterly principal payments of $833, with a final principal payment of $7,500 due on December 31, 2015. The Draw Term Loan required quarterly principal payments of $417, with a final principal payment of $5,400 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, occurs. 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. Based on the current 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 interest rate 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 paid $191 and $920 in aggregate quarterly settlement payments pursuant to the hedges in 2015 and 2014, respectively. These payments were included in interest expense in the Company’s Consolidated Statements of Income. On May 7, 2015, the Company paid off the $15,400 balance then outstanding on the Term Loan and Draw Term Loan, as well as paid $500 to repurchase the related hedges, from cash on hand. The cost to repurchase the hedges was included in interest expense. The Company had no debt outstanding at December 31, 2016 or 2015. The Company had $6,381 of letters of credit issued at December 31, 2016, which count as draws against the available commitment under the New Revolving Facility. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Share Repurchases | |
Comprehensive Income | (4) Comprehensive Income The components of comprehensive income for the years ended December 31 are as follows: 2016 2015 2014 Net income $ $ $ Minimum pension liability adjustments — Mark to market of foreign exchange hedges Reclassification to interest expense — Mark to market of interest rate hedges — Deferred income tax benefit (expense) Comprehensive income $ $ $ Amounts reclassified to interest expense were for payments made by the Company pursuant to the Company’s interest rate hedges. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | (5) Income Taxes Income tax expense for the years ended December 31 is as follows: 2016 2015 2014 Current income tax expense $ $ $ Deferred income tax expense (benefit) Income tax expense $ $ $ A reconciliation of income taxes computed at the federal statutory rate to income tax expense for the years ended December 31 is as follows: 2016 2015 2014 Percent of Percent of Percent of Pretax Pretax Pretax Amount Income Amount Income Amount Income Income taxes computed at the federal statutory rate $ % $ % $ % (Reduction) increase in taxes resulting from: Statutory depletion in excess of cost depletion Manufacturing deduction State income taxes, net of federal income tax benefit Other Income tax expense $ % $ % $ % Generally, US GAAP requires deferred tax assets to be reduced by a valuation allowance if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. US GAAP requires an assessment of all available evidence, both positive and negative, to determine the amount of any required valuation allowance. Components of the Company’s deferred tax liabilities and assets are as follows: December 31, December 31, 2016 2015 Deferred tax liabilities Lime and limestone property, plant and equipment $ $ Natural gas interests drilling costs and equipment Deferred tax assets Alternative minimum tax credit carry forwards Fair value liability of foreign exchange hedges — Other Deferred tax liabilities, net $ $ Current income taxes are classified on the Company’s Consolidated Balance Sheets as follows: Prepaid expenses and other current assets $ $ The Company had no federal net operating loss carry forwards at December 31, 2016. Deferred tax assets are considered fully recognizable because of the Company’s recent income history and expectations of income in the future. The Company’s federal income tax returns for the year ended December 31, 2013 and subsequent years remain subject to examination. The Company’s income tax returns in certain state income tax jurisdictions remain subject to examination for various periods for the year ended December 31, 2013 and subsequent years. The Company treats interest and penalties on income tax liabilities as income tax expense. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Retirement Plans | |
Employee Retirement Plans | (6) Employee Retirement Plans 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 “Plan”). In 1997, the Company sold substantially all of the assets of Corson Lime Company, and all benefits for participants in the Plan were frozen. During 1997 and 1998, the Company made contributions to the Plan that were intended to fully fund the benefits earned by the participants. The Company recorded comprehensive income of $602, net of $344 tax expense, and comprehensive loss of $81, net of $46 tax benefit, for the years ended December 31, 2015 and 2014, respectively. The Company made contributions of $233 and $0 to the Plan in 2015 and 2014, respectively. As a result of the termination, the Company will not be required to make any further contributions to the Plan. The following table sets forth the Pre-Settlement, Settlement and Post-Settlement funded status of the Plan as of June 30, 2015 (the termination date): June 30, 2015 Pre-Settlement Settlement Post-Settlement Projected benefit obligation $ $ $ — Fair value of plan assets — Underfunded status $ — $ — $ — The following table provides the components of the Plan net periodic benefit cost: Years Ended December 31, 2016 2015 2014 Interest cost $ — $ $ Expected return on plan assets — Amortization of net actuarial loss — Net periodic benefit cost $ — $ $ Settlement charge — Total net periodic benefit cost $ — $ $ The Company has a contributory retirement (401(k)) savings plans for non‑union employees and for union employees of Arkansas Lime Company and Texas Lime Company. Company contributions to these plans were $185, $174 and $184 in 2016, 2015 and 2014, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | (7) Stock‑Based Compensation The Company has implemented the Amended and Restated 2001 Long‑Term Incentive Plan (the “2001 Plan”). The 2001 Plan provides for stock options, restricted stock and dollar‑denominated cash awards, including performance‑based awards. In addition to stock options, restricted stock and cash awards, the 2001 Plan provides for the grant of stock appreciation rights, deferred stock and other stock‑based awards to directors, officers, employees and consultants. The number of shares of common stock that may be subject to outstanding awards granted under the 2001 Plan (determined immediately after the grant of any award) may not exceed 741,413 from the inception of the 2001 Plan. In addition, no individual may receive awards in any one calendar year of more than 100,000 shares of common stock. Stock options granted under the 2001 Plan expire ten years from the date of grant and generally become exercisable, or vest, immediately. Restricted stock generally vests over periods of one‑half to three years. Upon the exercise of stock options, the Company issues common stock from its non‑issued authorized or treasury shares that have been reserved for issuance pursuant to the 2001 Plan. At December 31, 2016, the number of shares of common stock remaining available for future grants of stock options, restricted stock or other forms of stock‑based compensation under the 2001 Plan was 100,199. The Company recorded $1,036, $1,199 and $1,102 for stock‑based compensation expense related to stock options and shares of restricted stock for 2016, 2015 and 2014, respectively. The amounts included in cost of revenues were $148, $154 and $185 and in selling, general and administrative expense were $888, $1,045 and $917, for 2016, 2015 and 2014, respectively. A summary of the Company’s stock option and restricted stock activity and related information for the year ended December 31, 2016 and certain other information for the years ended December 31, 2016, 2015 and 2014 are as follows: Weighted- Weighted- Average Aggregate Average Stock Exercise Intrinsic Restricted Grant-Date Options Price Value Stock Fair Value Outstanding (stock options); non-vested (restricted stock) at December 31, 2015 $ $ $ Granted — Exercised (stock options); vested (restricted stock) Forfeited — — — Outstanding (stock options); non-vested (restricted stock) at December 31, 2016 $ $ $ Exercisable at December 31, 2016 $ $ n/a n/a 2016 2015 2014 Weighted-average fair value of stock options granted during the year $ $ $ Weighted-average remaining contractual life for stock options in years Total fair value of stock options vested during the year $ $ $ Total intrinsic value of stock options exercised during the year $ $ $ Total fair value of restricted stock vested during the year $ $ $ There were no non‑vested stock options at December 31, 2016, and the weighted‑average remaining contractual life of the outstanding and exercisable stock options at such date was 6.78 years. The total compensation cost not yet recognized for restricted stock at December 31, 2016 was $1,056, which will be recognized over the weighted average of 1.08 years. The fair value for the stock options was estimated at the date of grant using a lattice‑based option valuation model, with the following weighted‑average assumptions for the 2016, 2015 and 2014 grants: risk‑free interest rates of 0.92% to 1.49% (weighted average 1.37%) in 2016, 0.98% to 1.28% (weighted average 1.05%) in 2015 and 0.89% to 1.17% (weighted average 1.10%) in 2014; a dividend yield of 0.67% to 1.00% (weighted average 0.74%) in 2016 and 0.80% to 0.91% (weighted average 0.83%) in 2015 and 0.70% to 0.90% (weighted average of 0.75%) in 2014; and a volatility factor of .264 to .275 (weighted average .266) in 2016, .272 to .284 (weighted average .275) in 2015 and .294 to .316 (weighted average .299) in 2014, based on the monthly per‑share closing prices for three years preceding the date of issuance. In addition, the fair value of these options was estimated based on an expected life of three years. The fair value of restricted stock is based on the closing per‑share price of the Company’s common stock on the date of grant. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2016 | |
Share Repurchases | |
Share Repurchases | (8) Share Repurchases In December 2015, the Company commenced a publicly announced share repurchase program to repurchase up to $10,000 of its common stock. During December 2015, the Company repurchased 3,086 shares at a weighted-average price of $54.79 per share. Pursuant to the share repurchase program, in 2016 the Company repurchased 50,068 shares at a weighted-average price of $53.52 per share. In addition, during 2016, pursuant to provisions in the 2001 Plan that allows employees and directors to pay the tax withholding liability upon the lapse of restrictions on restricted stock in either cash and/or delivery of shares of the Company’s common stock, the Company repurchased 3,864 shares at a weighted-average price of $64.26 per share. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | (9) Commitments and Contingencies The Company leases some of the equipment used in its operations under operating leases. Generally, the leases are for periods varying from one to five years and are renewable at the option of the Company. The Company also has a lease for corporate office space. Total lease and rent expense was $2,659, $2,307 and $2,227 for 2016, 2015 and 2014, respectively. As of December 31, 2016, future minimum payments under operating leases that were either non‑cancelable or subject to significant penalty upon cancellation were $1,659 for 2017, $1,129 for 2018, $1,018 for 2019, $704 for 2020, $498 for 2021 and $0 thereafter. The Company is party to lawsuits and claims arising in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Company’s financial condition, results of operations, cash flows or competitive position. The Company is not contractually committed to any planned capital expenditures until actual orders are placed for equipment or services. At December 31, 2016, the Company had approximately $8,639 for open equipment and construction contracts and orders related to the new kiln project at its St. Clair facilities. One of the contracts for this project requires future payments totaling 5,538 Euros. In November 2016, to hedge against potential losses due to changes in the Euro to U.S. Dollar exchange rates, the Company entered into foreign exchange (“FX”) hedges with Wells Fargo Bank, N.A. as the counterparty to the hedges to fix the exchange rate for the 5,538 Euros. The hedges have been effective as defined under applicable accounting rules. Therefore, changes in fair value of the FX hedges are reflected in comprehensive income. The Company will be exposed to credit losses in the event of non-performance by the counterparty to the hedges. Due to the strengthening of the U.S. Dollar, compared to the Euro, the fair value of the FX hedges resulted in a liability of $352 in 2016, which is included in accrued expenses ($309) and other liabilities ($43). |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Business Segments | |
Business Segments | (10) 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. Operating results and certain other financial data for the years ended December 31, 2016, 2015 and 2014 for the Company’s two business segments are as follows: Revenues 2016 2015 2014 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 $ $ $ Identifiable assets, at year end Lime and limestone operations $ $ $ Natural gas interests Unallocated corporate assets and cash items Total identifiable assets $ $ $ Capital expenditures Lime and limestone operations $ $ $ Natural gas interests Total capital expenditures $ $ $ |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Acquisition | |
Acquisition | (11) Acquisition In December 2014, the Company acquired the assets of a trucking company operation in Houston, Texas for a cash purchase price of $3,800, including $1,700 for land and buildings and $2,100 for trucks, trailers and other equipment. Acquisition-related costs of approximately $31 were expensed in 2014. Prior to the purchase, the Company utilized the trucking company exclusively to deliver the Company’s products to its customers and slurry facilities, and the land purchased included the site leased for the slurry facility. |
Supplementary Financial Informa
Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) | |
Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) | (12) Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) Results of Operations from Oil and Gas Producing Activities The Company’s natural gas interests consist of royalty and non‑operating working interests in wells drilled on the Company’s approximately 3,800 acres of land located in Johnson County, Texas in the Barnett Shale Formation. The Company also has royalty and non‑operating working interests in wells drilled from drillsites on the Company’s property under a lease covering approximately 538 acres of land contiguous to the Company’s Johnson County, Texas property. The following sets forth certain information with respect to the Company’s results of operations and costs incurred for its natural gas interests for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Results of Operations Revenues $ $ $ Production and operating costs Depreciation and depletion Results of operations before income taxes Income tax (benefit) expense Results of operations (excluding corporate overhead and interest costs) $ $ $ Costs Incurred Development costs incurred $ $ $ Exploration costs — — — Capitalized asset retirement costs — — — Property acquisition costs — — — Capitalized Costs Natural gas properties-proved $ $ $ Less: accumulated depreciation and depletion Net capitalized costs for natural gas properties $ $ $ Unaudited Oil and Natural Gas Reserve and Standardized Measure Information The independent petroleum engineering firm of DeGolyer and MacNaughton has been retained by the Company to estimate its proved natural gas reserves as of December 31, 2016. No events have occurred since December 31, 2016 that would have a material effect on the estimated proved reserves. The following information is presented with regard to the Company’s natural gas reserves, all of which are proved and located in the United States. These rules require inclusion, as a supplement to the basic financial statements, of a standardized measure of discounted future net cash flows relating to proved natural gas reserves. The standardized measure, in management’s opinion, should be examined with caution. The basis for these disclosures is the independent petroleum engineers’ reserve studies, which contain imprecise estimates of quantities and rates of production of reserves. Revision of estimates can have a significant impact on the results. Also, development and production improvement costs in one year may significantly change previous estimates of proved reserves and their valuation. Values of unproved properties and anticipated future price and cost increases or decreases are not considered. Therefore, the standardized measure is not necessarily a “best estimate” of the fair value of gas properties or of future net cash flows. In calculating the future net cash flows for its royalty and non‑operating working interests in the table below as of December 31, 2016, 2015 and 2014, the Company utilized 12‑month average prices of $2.65, $2.80 and $4.61 per MCF of natural gas and $16.61, $14.92 and $30.20 per BBL of natural gas liquids, respectively. Unaudited Summary of Changes in Proved Reserves Natural Gas Natural Gas Natural Gas Natural Liquids Natural Gas Liquids Natural Gas Liquids Gas (BCF) (MMBBLS) (BCF) (MMBBLS) (BCF) (MMBBLS) 2016 2016 2015 2015 2014 2014 Proved reserves - beginning of year Revisions of previous estimates — Extensions and discoveries — — — — — — Production Proved reserves - end of year Proved developed reserves - end of year Unaudited Standardized Measure of Discounted Future Net Cash Flows 2016 2015 2014 Future estimated gross revenues $ $ $ Future estimated production and development costs Future estimated net revenues Future estimated income tax expense Future estimated net cash flows 10% annual discount for estimated timing of cash flows Standardized measure of discounted future estimated net cash flows $ $ $ Unaudited Changes in Standardized Measure of Discounted Future Net Cash Flows 2016 2015 2014 Standardized measure - beginning of year $ $ $ Net change in sales prices and production costs Sales of natural gas produced, net of production costs Net change due to changes in quantity estimates Previously estimated development costs incurred — Net change in income taxes Accretion of discount Timing of production of reserves and other Standardized measure - end of year $ $ $ |
Summary of Quarterly Financial
Summary of Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Quarterly Financial Data (unaudited) | |
Summary of Quarterly Financial Data (unaudited) | (13) Summary of Quarterly Financial Data (unaudited) 2016 March 31, June 30, September 30, December 31, Revenues Lime and limestone operations $ $ $ $ Natural gas interests $ $ 32,880 $ $ Gross profit (loss) Lime and limestone operations $ $ $ $ Natural gas interests $ $ $ $ Net income $ $ $ $ Basic income per common share $ $ $ $ Diluted income per common share $ $ $ $ 2015 March 31, June 30, September 30, December 31, Revenues Lime and limestone operations $ $ $ $ Natural gas interests $ 30,064 $ $ $ Gross profit (loss) Lime and limestone operations $ $ $ $ Natural gas interests $ $ $ $ Net income $ $ $ $ Basic income per common share $ $ $ $ Diluted income per common share $ $ $ $ |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events | |
Subsequent Events | (14) Subsequent Event On January 30, 2017, the Company declared an increased regular quarterly cash dividend of $0.135 (13.5 cents) per share on the Company’s common stock. This dividend is payable on March 17, 2017 to shareholders of record at the close of business on February 24, 2017. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and judgments. |
Statements of Cash Flows | (d) Statements of Cash Flows For purposes of reporting cash flows, the Company considers all certificates of deposit and highly‑liquid debt instruments, such as U.S. Treasury bills and notes, with maturities, at the time of purchase, of three months or less to be cash equivalents. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. Supplemental cash flow information is presented below: Years Ended December 31, 2016 2015 2014 Cash paid during the year for: Interest $ $ $ Income taxes $ $ $ |
Revenue Recognition | (e) 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 revenues was $26,568, $23,219 and $27,055 for 2016, 2015 and 2014, respectively, which approximates the amount of external freight billed to customers 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. |
Fair Values of Financial Instruments | (f) 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. Specific inputs that had been used to value the Company’s interest rate swap liabilities included quoted three-month LIBOR rates for the remaining life of the interest rate swaps. Specific inputs used to value the Company’s foreign exchange hedges were Euro to U.S. Dollar exchange rates for the expected future payment dates for the Company’s commitments denominated in Euros. There were no changes in the methods and assumptions used in measuring fair value during the period. The carrying values of cash and cash equivalents, trade receivables, other current assets, accounts payable and accrued expenses approximate fair value due to the short maturity of these instruments. The Company’s foreign exchange hedges are carried at fair value at December 31, 2016. See Notes 1(p), 3, 4 and 9. Financial liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of December 31, Significant Other Observable Inputs (Level 2) December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Valuation Technique Foreign exchange hedges $ $ — $ $ — Cash flows approach |
Concentration of Credit Risk and Trade Receivables | (g) Concentration of Credit Risk and Trade Receivables Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, trade receivables and derivative financial instruments. The Company places its cash and cash equivalents with high credit quality financial institutions and its derivative financial instruments with financial institutions and other firms that management believes have high credit ratings. The Company’s cash and cash equivalents at commercial banking institutions normally exceed federally insured limits. For a discussion of the credit risks associated with the Company’s derivative financial instruments, see Notes 3 and 9. The majority of the Company’s trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts or purchase agreements. Credit losses relating to trade receivables have generally been within management expectations and historical trends. Uncollected trade receivables are charged‑off when identified by management to be unrecoverable. Trade receivables are presented net of the related allowance for doubtful accounts, which totaled $334 and $400 at December 31, 2016 and 2015, respectively. Additions and write‑offs to the Company’s allowance for doubtful accounts during the years ended December 31 are as follows: 2016 2015 Beginning balance $ $ Additions Write-offs Ending balance $ $ |
Inventories, Net | (h) Inventories, Net 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. A summary of inventories is as follows: December 31, December 31, 2016 2015 Lime and limestone inventories: Raw materials $ $ Finished goods $ $ Service parts inventories $ $ |
Property, Plant and Equipment | (i) Property, Plant and Equipment For major constructed assets, the capitalized cost includes the price paid by the Company for labor and materials plus interest and internal and external project management costs that are directly related to the constructed assets. Machinery and equipment at December 31, 2016 and 2015 included $4,284 and $4,113, respectively, of construction in progress for various capital projects. No interest costs were capitalized for the years ended December 31, 2016 and 2015. Depreciation of property, plant and equipment is being provided for by the straight‑line method over estimated useful lives as follows: Buildings and building and leasehold improvements - 20 years Machinery and equipment - 20 years Furniture and fixtures - 10 years Automotive equipment - 10 years Maintenance and repairs are charged to expense as incurred; renewals and betterments are capitalized. When units of property are retired or otherwise disposed of, their cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to income. The Company expenses all exploration costs as incurred as well as costs incurred at an operating quarry or mine, other than capital expenditures and inventory. Costs to acquire mineral reserves or mineral interests are capitalized upon acquisition. Development costs incurred to develop new mineral reserves, to expand the capacity of a quarry or mine, or to develop quarry or mine areas substantially in advance of current production are capitalized once proven and probable reserves exist and can be economically produced. For each quarry or mine, capitalized costs to acquire and develop mineral reserves are depleted using the units‑of‑production method based on the proven and probable reserves for such quarry or mine. The Company reviews its long‑lived assets for impairment and, when events or circumstances indicate the carrying amount of an asset may not be recoverable, the Company determines if impairment of value exists. If the estimated undiscounted future net cash flows are less than the carrying amount of the asset, an impairment exists, and an impairment loss must be calculated and recorded. If an impairment exists, the impairment loss is calculated based on the excess of the carrying amount of the asset over the asset’s fair value. Any impairment loss is treated as a permanent reduction in the carrying value of the asset. Through December 31, 2016, no events or circumstances arose that would require the Company to record a provision for impairment of its long‑lived assets. |
Successful-Efforts Method Used for Natural Gas Interests | (j) 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. |
Asset Retirement Obligations | (k) Asset Retirement Obligations The Company recognizes legal obligations for reclamation and remediation associated with the retirement of long‑lived assets at their fair value at the time the obligations are incurred (“AROs”). Over time, the liability for AROs is recorded at its present value each period through accretion expense, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company either settles the AROs for the recorded amount or recognizes a gain or loss. As of December 31, 2016 and 2015, the Company’s AROs included in other liabilities and accrued expenses were $1,838 and $2,058, respectively. As of December 31, 2016, $968 of assets associated with the Company’s AROs were not fully depreciated. During 2016 and 2015, the Company spent $311 and $140, respectively, on its AROs, and recognized accretion expense of $70, $60 and $57 in 2016, 2015 and 2014, respectively, on its AROs. The AROs were estimated based on studies and the Company’s process knowledge and estimates, and are discounted using a credit adjusted risk-free interest rate. The AROs are adjusted when further information warrants an adjustment. The Company estimates annual expenditures of approximately $100 to $200 each in years 2017 through 2021 relating to its AROs. |
Other Assets | (l) Other Assets Other assets consist of the following: December 31, 2016 2015 Deferred financing costs $ $ Other $ $ |
Environmental Expenditures | (m) Environmental Expenditures Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are expensed. Liabilities are recorded at their present value when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Generally, the timing of these accruals will coincide with completion of a feasibility study or the Company’s commitment to a formal plan of action. The Company incurred capital expenditures related to environmental matters of approximately $477 in 2016, $455 in 2015 and $1,038 in 2014. |
Income Per Share of Common Stock | (n) Income Per Share of Common Stock The following table sets forth the computation of basic and diluted income per common share: Years Ended December 31, 2016 2015 2014 Net income for basic and diluted income per common share $ $ $ Weighted-average shares for basic income per common share Effect of dilutive securities: Employee and director stock options (1) Adjusted weighted-average shares and assumed exercises for diluted income per common share Basic net income per common share $ $ $ Diluted net income per common share $ $ $ Excludes 22,425, 24,225 and 7,500 stock options in 2016, 2015 and 2014, respectively, as antidilutive because the exercise price exceeded the average per share market price for the periods presented. |
Stock-Based Compensation | (o) Stock‑Based Compensation The Company expenses all stock‑based payments to employees and directors, including grants of stock options and restricted stock, in the Company’s Consolidated Statements of Income based on their fair values. Compensation cost is recognized on a straight-line basis over the vesting period. |
Derivative Instruments and Hedging Activities | (p) Derivative Instruments and Hedging Activities Every derivative instrument (including certain derivative instruments embedded in other contracts) is recorded on the Company’s Consolidated Balance Sheets as either an asset or liability measured at its fair value. Changes in the derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. If the derivative is designated as a cash flow hedge, changes in fair value are recognized in comprehensive income or loss until the hedged item is recognized in earnings. The Company estimated fair value utilizing the cash flows valuation technique. The fair values of derivative contracts that expire in less than one year are recognized as current assets or liabilities. Those that expire in more than one year are recognized as long-term assets or liabilities. See Notes 1(f), 3, 4 and 9. |
Income Taxes | (q) Income Taxes The Company utilizes the asset and liability approach in its reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Income tax related interest and penalties are included in income tax expense. The Company also assesses individual tax positions to determine if they meet the criteria for some or all of the benefits of that position to be recognized in the Company’s financial statements. The Company only recognizes tax positions that meet the more‑likely‑than‑not recognition threshold. |
Comprehensive Income | (r) 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 and foreign exchange hedges and minimum pension liability adjustments, are reported as a separate component of the stockholders’ equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. See Notes 1(p), 3, 4 and 6. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Schedule of supplemental cash flow information (in thousands) | Years Ended December 31, 2016 2015 2014 Cash paid during the year for: Interest $ $ $ Income taxes $ $ $ |
Schedule of the entity's financial liabilities measured at fair value on a recurring basis (in thousands) | Fair Value Measurements as of December 31, Significant Other Observable Inputs (Level 2) December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Valuation Technique Foreign exchange hedges $ $ — $ $ — Cash flows approach |
Schedule of additions and write-offs to the Company's allowance for doubtful accounts (in thousands) | 2016 2015 Beginning balance $ $ Additions Write-offs Ending balance $ $ |
Schedule of inventories, net | December 31, December 31, 2016 2015 Lime and limestone inventories: Raw materials $ $ Finished goods $ $ Service parts inventories $ $ |
Schedule of estimated useful lives of property, plant and equipment (in thousands) | Buildings and building and leasehold improvements - 20 years Machinery and equipment - 20 years Furniture and fixtures - 10 years Automotive equipment - 10 years |
Schedule of other assets (in thousands) | December 31, 2016 2015 Deferred financing costs $ $ Other $ $ |
Schedule of computation of basic and diluted income per common share | Years Ended December 31, 2016 2015 2014 Net income for basic and diluted income per common share $ $ $ Weighted-average shares for basic income per common share Effect of dilutive securities: Employee and director stock options (1) Adjusted weighted-average shares and assumed exercises for diluted income per common share Basic net income per common share $ $ $ Diluted net income per common share $ $ $ (1) Excludes 22,425, 24, 225 and 7,500 stock options in 2016, 2015 and 2014, respectively, as antidilutive because the exercise price exceeded the average per share market price for the periods presented. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share Repurchases | |
Schedule of components of comprehensive income | 2016 2015 2014 Net income $ $ $ Minimum pension liability adjustments — Mark to market of foreign exchange hedges Reclassification to interest expense — Mark to market of interest rate hedges — Deferred income tax benefit (expense) Comprehensive income $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Schedule of income tax expense (in thousands) | 2016 2015 2014 Current income tax expense $ $ $ Deferred income tax expense (benefit) Income tax expense $ $ $ |
Schedule of reconciliation of income taxes computed at the federal statutory rate to income tax expense (in thousands) | 2016 2015 2014 Percent of Percent of Percent of Pretax Pretax Pretax Amount Income Amount Income Amount Income Income taxes computed at the federal statutory rate $ % $ % $ % (Reduction) increase in taxes resulting from: Statutory depletion in excess of cost depletion Manufacturing deduction State income taxes, net of federal income tax benefit Other Income tax expense $ % $ % $ % |
Summary of the Company's deferred tax liabilities and assets (in thousands) | December 31, December 31, 2016 2015 Deferred tax liabilities Lime and limestone property, plant and equipment $ $ Natural gas interests drilling costs and equipment Deferred tax assets Alternative minimum tax credit carry forwards Fair value liability of foreign exchange hedges — Other Deferred tax liabilities, net $ $ Current income taxes are classified on the Company’s Consolidated Balance Sheets as follows: Prepaid expenses and other current assets $ $ |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Retirement Plans | |
Schedule of Pre-Settlement, Settlement and Post-Settlement funded status of the Plan (in thousands) | June 30, 2015 Pre-Settlement Settlement Post-Settlement Projected benefit obligation $ $ $ — Fair value of plan assets — Underfunded status $ — $ — $ — |
Schedule of components of the Plan net periodic benefit cost (in thousands) | Years Ended December 31, 2016 2015 2014 Interest cost $ — $ $ Expected return on plan assets — Amortization of net actuarial loss — Net periodic benefit cost $ — $ $ Settlement charge — Total net periodic benefit cost $ — $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Summary of the Company's stock option and restricted stock activity (in thousands) | Weighted- Weighted- Average Aggregate Average Stock Exercise Intrinsic Restricted Grant-Date Options Price Value Stock Fair Value Outstanding (stock options); non-vested (restricted stock) at December 31, 2015 $ $ $ Granted — Exercised (stock options); vested (restricted stock) Forfeited — — — Outstanding (stock options); non-vested (restricted stock) at December 31, 2016 $ $ $ Exercisable at December 31, 2016 $ $ n/a n/a 2016 2015 2014 Weighted-average fair value of stock options granted during the year $ $ $ Weighted-average remaining contractual life for stock options in years Total fair value of stock options vested during the year $ $ $ Total intrinsic value of stock options exercised during the year $ $ $ Total fair value of restricted stock vested during the year $ $ $ |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Segments | |
Schedule of operating results and certain other financial data for the business segments) | Revenues 2016 2015 2014 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 $ $ $ Identifiable assets, at year end Lime and limestone operations $ $ $ Natural gas interests Unallocated corporate assets and cash items Total identifiable assets $ $ $ Capital expenditures Lime and limestone operations $ $ $ Natural gas interests Total capital expenditures $ $ $ |
Supplementary Financial Infor32
Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) | |
Schedule of results of operations from oil and gas producing activities (in thousands) | 2016 2015 2014 Results of Operations Revenues $ $ $ Production and operating costs Depreciation and depletion Results of operations before income taxes Income tax (benefit) expense Results of operations (excluding corporate overhead and interest costs) $ $ $ Costs Incurred Development costs incurred $ $ $ Exploration costs — — — Capitalized asset retirement costs — — — Property acquisition costs — — — Capitalized Costs Natural gas properties-proved $ $ $ Less: accumulated depreciation and depletion Net capitalized costs for natural gas properties $ $ $ |
Summary of changes in proved reserves | Natural Gas Natural Gas Natural Gas Natural Liquids Natural Gas Liquids Natural Gas Liquids Gas (BCF) (MMBBLS) (BCF) (MMBBLS) (BCF) (MMBBLS) 2016 2016 2015 2015 2014 2014 Proved reserves - beginning of year Revisions of previous estimates — Extensions and discoveries — — — — — — Production Proved reserves - end of year Proved developed reserves - end of year |
Schedule of standardized measure of discounted future net cash flows (in thousands) | 2016 2015 2014 Future estimated gross revenues $ $ $ Future estimated production and development costs Future estimated net revenues Future estimated income tax expense Future estimated net cash flows 10% annual discount for estimated timing of cash flows Standardized measure of discounted future estimated net cash flows $ $ $ |
Schedule of changes in standardized measure of discounted future net cash flows (in thousands) | 2016 2015 2014 Standardized measure - beginning of year $ $ $ Net change in sales prices and production costs Sales of natural gas produced, net of production costs Net change due to changes in quantity estimates Previously estimated development costs incurred — Net change in income taxes Accretion of discount Timing of production of reserves and other Standardized measure - end of year $ $ $ |
Summary of Quarterly Financia33
Summary of Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Quarterly Financial Data (unaudited) | |
Summary of unaudited quarterly financial data (in thousands) | 2016 March 31, June 30, September 30, December 31, Revenues Lime and limestone operations $ $ $ $ Natural gas interests $ $ 32,880 $ $ Gross profit (loss) Lime and limestone operations $ $ $ $ Natural gas interests $ $ $ $ Net income $ $ $ $ Basic income per common share $ $ $ $ Diluted income per common share $ $ $ $ 2015 March 31, June 30, September 30, December 31, Revenues Lime and limestone operations $ $ $ $ Natural gas interests $ 30,064 $ $ $ Gross profit (loss) Lime and limestone operations $ $ $ $ Natural gas interests $ $ $ $ Net income $ $ $ $ Basic income per common share $ $ $ $ Diluted income per common share $ $ $ $ |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Values of Financial Instruments | |||
Foreign exchange hedges liabilities | $ (352) | ||
Additions and write-offs to the company's allowance for doubtful accounts | |||
Beginning balance | 400 | $ 350 | |
Additions | 293 | 63 | |
Write-offs | (359) | (13) | |
Ending balance | 334 | 400 | $ 350 |
Lime and limestone inventories: | |||
Raw materials | 4,811 | 6,627 | |
Finished goods | 2,070 | 2,049 | |
Total | 6,881 | 8,676 | |
Service parts inventories | 5,552 | 6,052 | |
Total inventories | 12,433 | 14,728 | |
Supplemental cash flow information | |||
Interest | 113 | 948 | 1,495 |
Income taxes | 4,908 | 4,152 | 5,870 |
Revenue Recognition | |||
External freight billed to customers included in revenue | 26,568 | $ 23,219 | $ 27,055 |
Recurring | Fair value | Cash flows approach | |||
Fair Values of Financial Instruments | |||
Foreign exchange hedges liabilities | (352) | ||
Recurring | Significant Other Observable Inputs (Level 2) | Fair value | Cash flows approach | |||
Fair Values of Financial Instruments | |||
Foreign exchange hedges liabilities | $ (352) |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - PP&E, ARO and Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment | |||
Construction in progress | $ 4,284 | $ 4,113 | |
Interest costs capitalized | 0 | 0 | |
Asset Retirement Obligations | |||
ARO included in other liabilities and accrued expenses | 1,838 | 2,058 | |
Amount of assets associated with AROs not fully depreciated | 968 | ||
Amount spent on AROs | 311 | 140 | |
Accretion expense recognized on AROs | 70 | 60 | $ 57 |
Other Assets | |||
Deferred financing costs | 49 | 63 | |
Other | 93 | 97 | |
Total | 142 | 160 | |
Environmental Expenditures | |||
Capital expenditures related to environmental matters | 477 | $ 455 | $ 1,038 |
Minimum | |||
Asset Retirement Obligations | |||
Estimated annual expenditures in years 2017 through 2021 relating to AROs | 100 | ||
Maximum | |||
Asset Retirement Obligations | |||
Estimated annual expenditures in years 2017 through 2021 relating to AROs | $ 200 | ||
Buildings and building improvements | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 3 years | ||
Buildings and building improvements | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 20 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 2 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 20 years | ||
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 3 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 10 years | ||
Automotive equipment. | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 3 years | ||
Automotive equipment. | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives of property, plant and equipment | 10 years |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Anti-dilutive securities | |||||||||||
Net income for basic and diluted income per common share | $ 3,920 | $ 6,081 | $ 3,687 | $ 4,066 | $ 2,286 | $ 5,676 | $ 2,559 | $ 2,365 | $ 17,754 | $ 12,886 | $ 19,367 |
Weighted-average shares for basic income per share | 5,567,902 | 5,598,805 | 5,578,784 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee and director stock options (in shares) | 4,071 | 5,423 | 10,459 | ||||||||
Adjusted weighted-average shares and assumed exercises for diluted income per share | 5,571,973 | 5,604,228 | 5,589,243 | ||||||||
Basic net income per common share (in dollars per share) | $ 0.70 | $ 1.09 | $ 0.66 | $ 0.73 | $ 0.41 | $ 1.01 | $ 0.46 | $ 0.42 | $ 3.19 | $ 2.30 | $ 3.47 |
Diluted net income per common share (in dollars per share) | $ 0.70 | $ 1.09 | $ 0.66 | $ 0.73 | $ 0.41 | $ 1.01 | $ 0.46 | $ 0.42 | $ 3.19 | $ 2.30 | $ 3.47 |
Options | |||||||||||
Anti-dilutive securities | |||||||||||
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities | 22,425 | 24,225 | 7,500 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements | ||
Undiscounted minimum contractual commitments under long-term operating leases | $ 6,778 | $ 6,771 |
Banking Facilities and Debt (De
Banking Facilities and Debt (Details) $ in Thousands | May 07, 2015USD ($) | May 06, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 27, 2016USD ($) | Oct. 26, 2016USD ($) |
Banking facilities and other debt | |||||||
Repayment of term loans | $ 16,667 | $ 5,000 | |||||
Summary of outstanding debt | |||||||
Total Debt | $ 0 | 0 | |||||
Interest rate swaps | |||||||
Interest rate hedges | |||||||
Quarterly settlement payment pursuant to hedges | $ 191 | $ 920 | |||||
Minimum | LIBOR | |||||||
Banking facilities and other debt | |||||||
Interest rate margin (as a percent) | 1.75% | ||||||
Maximum | |||||||
Banking facilities and other debt | |||||||
Pro forma Cash Flow Leverage Ratio to be maintained to purchase, redeem or otherwise acquire shares of common stock | 3 | ||||||
Cash flow leverage ratio | 3.50 | 3.25 | |||||
New Revolving Facility | |||||||
Banking facilities and other debt | |||||||
Maximum borrowing capacity | $ 75,000 | ||||||
Accordion feature period | 4 years | ||||||
Maximum borrowing capacity accordion feature | $ 50,000 | ||||||
New Revolving Facility | Minimum | |||||||
Banking facilities and other debt | |||||||
Commitment fee (as a percent) | 0.20% | 0.25% | |||||
New Revolving Facility | Minimum | LIBOR | |||||||
Banking facilities and other debt | |||||||
Interest rate margin (as a percent) | 1.00% | 1.75% | |||||
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% | 0.40% | |||||
Interest rate margin (as a percent) | 2.00% | ||||||
New Revolving Facility | Maximum | LIBOR | |||||||
Banking facilities and other debt | |||||||
Interest rate margin (as a percent) | 2.75% | ||||||
New Revolving Facility | Maximum | Lender's prime rate | |||||||
Banking facilities and other debt | |||||||
Interest rate margin (as a percent) | 1.00% | ||||||
Letter of Credit | |||||||
Banking facilities and other debt | |||||||
Maximum borrowing capacity | $ 10,000 | $ 5,000 | |||||
Term Loan And Draw Term Loan | |||||||
Banking facilities and other debt | |||||||
Repayment of term loans | $ 15,400 | ||||||
Payment for repurchase of hedges | $ 500 | ||||||
Term Loan | |||||||
Banking facilities and other debt | |||||||
Term | 10 years | ||||||
Face amount of term loan | $ 40,000 | ||||||
Quarterly principal payments | 833 | ||||||
Final principal payment | $ 7,500 | ||||||
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 | ||||||
Quarterly principal payments | 417 | ||||||
Final principal payment | $ 5,400 | ||||||
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 | ||||||
Letters of credit outstanding | $ 6,381,000 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of comprehensive income | |||||||||||
Net income | $ 3,920 | $ 6,081 | $ 3,687 | $ 4,066 | $ 2,286 | $ 5,676 | $ 2,559 | $ 2,365 | $ 17,754 | $ 12,886 | $ 19,367 |
Minimum pension liability adjustments | 946 | (127) | |||||||||
Mark to market of foreign exchange hedges | (352) | ||||||||||
Reclassification to interest expense | 678 | 921 | |||||||||
Mark to market of interest rate hedges | (15) | (49) | |||||||||
Deferred income tax credit (expense) | 129 | (585) | (271) | ||||||||
Comprehensive (loss) income | $ 17,531 | $ 13,910 | $ 19,841 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount | |||
Income taxes computed at the federal statutory rate | $ 8,266 | $ 6,118 | $ 9,073 |
(Reduction) increase in taxes resulting from: | |||
Statutory depletion in excess of cost depletion | (1,854) | (1,708) | (2,139) |
Manufacturing deduction | (666) | (548) | (574) |
State income taxes, net of federal income tax benefit | 202 | 309 | 104 |
Other | (84) | 424 | 91 |
Income tax expense | $ 5,864 | $ 4,595 | $ 6,555 |
Percent of Pretax Income | |||
Income taxes computed at the federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
(Reduction) increase in taxes resulting from (as a percent): | |||
Statutory depletion in excess of cost depletion (as a percent) | (7.90%) | (9.80%) | (8.20%) |
Manufacturing deduction (as a percent) | (2.80%) | (3.10%) | (2.20%) |
State income taxes, net of federal income tax benefit (as a percent) | 0.90% | 1.80% | 0.40% |
Other (as a percent) | (0.40%) | 2.40% | 0.30% |
Income tax expense (as a percent) | 24.80% | 26.30% | 25.30% |
Deferred tax liabilities | |||
Lime and limestone property, plant and equipment | $ 17,907 | $ 18,833 | |
Natural gas interests drilling costs and equipment | 2,811 | 3,101 | |
Total | 20,718 | 21,934 | |
Deferred tax assets | |||
Alternative minimum tax credit carry forwards | 296 | 2,259 | |
Fair value liability of foreign exchange hedges | 129 | ||
Other | 461 | 491 | |
Total | 886 | 2,750 | |
Deferred tax liabilities, net, Total | 19,832 | 19,184 | |
Current income taxes: | |||
Prepaid expenses and other current assets | 75 | 286 | |
Deferred income taxes: | |||
Deferred tax liabilities, net | 19,832 | 19,184 | |
Current income tax expense | 5,087 | 4,822 | $ 5,282 |
Deferred income tax expense (benefit) | 777 | (227) | 1,273 |
Income tax expense | 5,864 | $ 4,595 | $ 6,555 |
Federal | |||
Operating loss carry forwards | |||
Net operating loss carryforwards | $ 0 |
Employee Retirement Plans (Deta
Employee Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Contributory retirement (401(k)) savings plans | ||||
Company contributions | $ 185 | $ 174 | $ 184 | |
Plan | ||||
Employee retirement plan | ||||
Comprehensive income (loss), net of tax | 602 | (81) | ||
Comprehensive income (loss), tax expense (benefit) | 344 | (46) | ||
Contributions by the entity | 233 | 0 | ||
Change in projected benefit obligation: | ||||
Interest cost | 44 | 87 | ||
Change in plan assets: | ||||
Employer contribution | 233 | 0 | ||
Funded status | ||||
Projected benefit obligation, pre-settlement | $ 2,039 | |||
Projected benefit obligation, settlement | (2,039) | |||
Fair value of plan assets, pre-settlement | 2,039 | |||
Fair value of plan assets, settlement | $ (2,039) | |||
Components of the net periodic benefit cost | ||||
Interest cost | 44 | 87 | ||
Expected return on plan assets | (18) | (38) | ||
Amortization of net actuarial loss | 65 | 65 | ||
Net periodic benefit cost | 91 | 114 | ||
Settlement charge | 814 | |||
Total net periodic benefit cost | $ 905 | $ 114 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-based compensation | |||
Maximum number of awards that may be received by an individual in any one calendar year (in shares) | 100,000 | ||
Number of shares of common stock remaining available for future grants of stock options, restricted stock or other forms of stock-based compensation under the 2001 Plan | 100,199 | ||
Stock-based compensation expense | $ 1,036 | $ 1,199 | $ 1,102 |
Cost of revenues | |||
Stock-based compensation | |||
Stock-based compensation expense | 148 | 154 | 185 |
Selling, general and administrative expense. | |||
Stock-based compensation | |||
Stock-based compensation expense | $ 888 | $ 1,045 | $ 917 |
Maximum | |||
Stock-based compensation | |||
Number of shares of common stock that may be subject to outstanding awards granted under the 2001 Plan | 741,413 | ||
Options | |||
Stock-based compensation | |||
Expiration period | 10 years | ||
Stock Options | |||
Outstanding at the beginning of the period (in shares) | 56,600 | ||
Granted (in shares) | 9,900 | ||
Exercised (in shares) | (7,000) | ||
Outstanding at the end of the period (in shares) | 59,500 | 56,600 | |
Exercisable at the end of the period (in shares) | 59,500 | ||
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 53.03 | ||
Granted (in dollars per share) | 70.37 | ||
Exercised (in dollars per share) | 32.28 | ||
Outstanding at the end of the period (in dollars per share) | 58.36 | $ 53.03 | |
Exercisable at the end of the period (in dollars per share) | $ 58.36 | ||
Aggregate Intrinsic Value | |||
Outstanding at the beginning of the period | $ 357 | ||
Exercised | 150 | ||
Outstanding at the end of the period | 1,035 | $ 357 | |
Exercisable at the end of the period | $ 1,035 | ||
Additional disclosures | |||
Weighted-average fair value of stock options granted during the year (in dollars per share) | $ 13.12 | $ 10.79 | $ 14.62 |
Weighted-average remaining contractual life for stock options | 6 years 9 months 11 days | 6 years 3 months 26 days | 6 years 5 months 16 days |
Total fair value of stock options vested during the year | $ 130 | $ 107 | $ 145 |
Total intrinsic value of stock options exercised during the year | $ 150 | $ 30 | $ 657 |
Weighted-average remaining contractual life of the outstanding and exercisable stock options | 6 years 9 months 11 days | ||
Non-vested stock options | 0 | ||
Weighted-average assumptions used to estimate the fair value for the stock options | |||
Time period used to calculate weighted averages for fair value assumptions | 3 years | ||
Expected life | 3 years | ||
Options | Minimum | |||
Weighted-average assumptions used to estimate the fair value for the stock options | |||
Risk-free interest rates (as a percent) | 0.92% | 0.98% | 0.89% |
Dividend yield (as a percent) | 0.67% | 0.80% | 0.70% |
Volatility factor (as a percent) | 0.264% | 0.272% | 0.294% |
Options | Maximum | |||
Weighted-average assumptions used to estimate the fair value for the stock options | |||
Risk-free interest rates (as a percent) | 1.49% | 1.28% | 1.17% |
Dividend yield (as a percent) | 1.00% | 0.91% | 0.90% |
Volatility factor (as a percent) | 0.275% | 0.284% | 0.316% |
Options | Weighted-average | |||
Weighted-average assumptions used to estimate the fair value for the stock options | |||
Risk-free interest rates (as a percent) | 1.37% | 1.05% | 1.10% |
Dividend yield (as a percent) | 0.74% | 0.83% | 0.75% |
Volatility factor (as a percent) | 0.266% | 0.275% | 0.299% |
Restricted stock | |||
Restricted Stock | |||
Non-vested at the beginning of the period (in shares) | 17,411 | ||
Granted (in shares) | 16,813 | ||
Vested (in shares) | (16,422) | ||
Forfeited (in shares) | (105) | ||
Non-vested at the end of the period (in shares) | 17,697 | 17,411 | |
Weighted-Average Grant-Date Fair Value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 57.75 | ||
Granted (in dollars per share) | 68.12 | ||
Vested (in dollars per share) | 55.28 | ||
Forfeited (in dollars per share) | 65.42 | ||
Non-vested at the end of the period (in dollars per share) | $ 64.01 | $ 57.75 | |
Additional disclosures | |||
Total fair value of restricted stock vested during the year | $ 907 | $ 1,099 | $ 955 |
Total compensation cost not yet recognized | $ 1,056 | ||
Weighted-average period for recognition of total compensation cost not yet recognized | 1 year 29 days | ||
Restricted stock | Minimum | |||
Stock-based compensation | |||
Vesting period | 6 months | ||
Restricted stock | Maximum | |||
Stock-based compensation | |||
Vesting period | 3 years |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2016 | |
Share Repurchases | ||
Share repurchase program amount authorized | $ 10,000 | |
Shares repurchased (in shares) | 3,086 | 50,068 |
Weighted average price per share (in dollars per share) | $ 54.79 | $ 53.52 |
Shares paid for tax withholding for share-based compensation | 3,864 | |
Weighted average per share prices for shares used to pay tax withholding liability (in dollars per share) | $ 64.26 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitment and Contingencies | ||||
Operating leases term, low end of range | 1 year | 1 year | ||
Operating leases term, high end of range | 5 years | 5 years | ||
Total lease and rent expense | $ 2,659 | $ 2,307 | $ 2,227 | |
Foreign exchange hedges liabilities | 352 | |||
Future minimum payments under operating leases | ||||
2,017 | 1,659 | |||
2,018 | 1,129 | |||
2,019 | 1,018 | |||
2,020 | 704 | |||
2,021 | 498 | |||
Thereafter | 0 | |||
Accrued Expenses | ||||
Commitment and Contingencies | ||||
Foreign exchange hedges liabilities | 309 | |||
Other Liabilities | ||||
Commitment and Contingencies | ||||
Foreign exchange hedges liabilities | 43 | |||
Equipment and Construction Contracts | ||||
Commitment and Contingencies | ||||
Purchase commitment | € 5,538 | $ 8,639 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Business segments | |||||||||||
Number of business segments | segment | 2 | ||||||||||
Revenues | $ 34,166 | $ 38,650 | $ 32,880 | $ 33,586 | $ 31,294 | $ 37,029 | $ 32,450 | $ 30,064 | $ 139,282 | $ 130,837 | $ 149,841 |
Depreciation, depletion and amortization | 15,931 | 15,784 | 14,706 | ||||||||
Gross profit | 7,434 | $ 10,569 | $ 7,241 | $ 7,848 | 5,470 | $ 10,367 | $ 7,013 | $ 5,864 | 33,092 | 28,714 | 36,791 |
Identifiable assets, at year end | 210,159 | 196,499 | 210,159 | 196,499 | 199,986 | ||||||
Capital expenditures | 17,664 | 11,459 | 15,377 | ||||||||
Unallocated corporate assets and cash items | |||||||||||
Business segments | |||||||||||
Identifiable assets, at year end | 76,376 | 62,256 | 76,376 | 62,256 | 61,263 | ||||||
Lime and limestone operations | |||||||||||
Business segments | |||||||||||
Revenues | 137,190 | 128,390 | 144,567 | ||||||||
Depreciation, depletion and amortization | 15,063 | 14,910 | 13,811 | ||||||||
Gross profit | 33,032 | 28,400 | 33,958 | ||||||||
Identifiable assets, at year end | 126,015 | 125,703 | 126,015 | 125,703 | 128,961 | ||||||
Capital expenditures | 17,649 | 11,444 | 15,352 | ||||||||
Natural gas interests | |||||||||||
Business segments | |||||||||||
Revenues | 2,092 | 2,447 | 5,274 | ||||||||
Depreciation, depletion and amortization | 868 | 874 | 895 | ||||||||
Gross profit | 60 | 314 | 2,833 | ||||||||
Identifiable assets, at year end | $ 7,768 | $ 8,540 | 7,768 | 8,540 | 9,762 | ||||||
Capital expenditures | $ 15 | $ 15 | $ 25 |
Acquisition (Details)
Acquisition (Details) - Houston $ in Thousands | 1 Months Ended |
Dec. 31, 2014USD ($) | |
Acquisition | |
Assets purchased | $ 3,800 |
Land and buildings purchased | 1,700 |
Trucks and trailers and other equipment purchased | 2,100 |
Acquisition-related costs | $ 31 |
Supplementary Financial Infor47
Supplementary Financial Information for Oil and Gas Producing Activities (Unaudited) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016USD ($)MMcfMMBbls | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($)MMcfMMBbls | Dec. 31, 2015USD ($)MMcfMMBbls | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)MMcfMMBbls | Dec. 31, 2016USD ($)a$ / MMcf$ / MBblsMMcfMMBbls | Dec. 31, 2015USD ($)$ / MMcf$ / MBblsMMcfMMBbls | Dec. 31, 2014USD ($)$ / MMcf$ / MBblsMMcfMMBbls | Dec. 31, 2016USD ($)MMcfMMBbls | Dec. 31, 2015USD ($)MMcfMMBbls | Dec. 31, 2014USD ($)MMcfMMBbls | |
Reserve Quantities | ||||||||||||||
Area of land (in acres) | a | 3,800 | |||||||||||||
Area of land under a lease (in acres) | a | 538 | |||||||||||||
Unaudited standardized measure of discounted future net cash flows | ||||||||||||||
Future estimated gross revenues | $ 17,908 | $ 25,916 | $ 60,073 | |||||||||||
Future estimated production and development costs | $ (8,402) | $ (12,019) | $ (23,242) | |||||||||||
Future estimated net revenues | 9,506 | 13,897 | 36,831 | |||||||||||
Future estimated income tax expense | (2,458) | (3,642) | (10,105) | |||||||||||
Future estimated net cash flows | 7,048 | 10,255 | 26,726 | |||||||||||
10% annual discount for estimated timing of cash flows | (2,851) | (4,969) | (13,438) | |||||||||||
Standardized measure of discounted future estimated net cash flows | $ 4,197 | $ 5,286 | $ 5,286 | $ 13,288 | 5,286 | 13,288 | 13,578 | 4,197 | 5,286 | 13,288 | ||||
Changes in standardized measure of discounted future net cash flows | ||||||||||||||
Standardized measure - beginning of year | 5,286 | 13,288 | 5,286 | 13,288 | 13,578 | |||||||||
Net change in sales prices and production costs | (1,403) | (12,535) | 2,180 | |||||||||||
Sales of natural gas produced, net of production costs | (928) | (1,188) | (3,730) | |||||||||||
Net change due to changes in quantity estimates | (1,732) | (2,625) | (586) | |||||||||||
Previously estimated development costs incurred | 14 | 21 | ||||||||||||
Net change in income taxes | 414 | 3,147 | 90 | |||||||||||
Accretion of discount | 571 | 1,570 | 1,594 | |||||||||||
Timing of production of reserves and other | 1,989 | 3,615 | 141 | |||||||||||
Standardized measure - end of year | 4,197 | 5,286 | 4,197 | 5,286 | 13,288 | |||||||||
Results of Operations | ||||||||||||||
Revenues | $ 602 | $ 554 | $ 504 | $ 432 | $ 497 | $ 577 | $ 671 | $ 702 | 2,092 | 2,447 | 5,274 | |||
Production and operating costs | 1,164 | 1,259 | 1,546 | |||||||||||
Depreciation and depletion | 868 | 874 | 895 | |||||||||||
Results of operations before income taxes | 60 | 314 | 2,833 | |||||||||||
Income tax (benefit) expense | (93) | (19) | 742 | |||||||||||
Results of operations (excluding corporate overhead and interest costs) | 153 | 333 | 2,091 | |||||||||||
Costs Incurred | ||||||||||||||
Development costs incurred | $ 15 | $ 15 | $ 25 | |||||||||||
Capitalized Costs | ||||||||||||||
Natural gas properties - proved | 18,412 | 18,398 | 18,384 | |||||||||||
Less: accumulated depreciation and depletion | 10,900 | 10,030 | 9,153 | |||||||||||
Net capitalized costs for natural gas properties | $ 7,512 | $ 8,368 | $ 9,231 | |||||||||||
Natural Gas (BCF) | ||||||||||||||
Reserve Quantities | ||||||||||||||
Price (in dollars per Mcf or Bbl) | $ / MMcf | 2.65 | 2.80 | 4.61 | |||||||||||
Changes in proved reserves | ||||||||||||||
Proved reserves - beginning of year | MMcf | 5,300 | 6,700 | 5,300 | 6,700 | 7,600 | |||||||||
Revisions of previous estimates | MMcf | (900) | (900) | (300) | |||||||||||
Production | MMcf | (500) | (500) | (600) | |||||||||||
Proved reserves - end of year | MMcf | 3,900 | 5,300 | 3,900 | 5,300 | 6,700 | |||||||||
Proved developed reserves - end of year | MMcf | 3,900 | 5,300 | 6,700 | |||||||||||
Natural Gas Liquids (MMBLS) | ||||||||||||||
Reserve Quantities | ||||||||||||||
Price (in dollars per Mcf or Bbl) | $ / MBbls | 16.61 | 14.92 | 30.20 | |||||||||||
Changes in proved reserves | ||||||||||||||
Proved reserves - beginning of year | MMBbls | 0.7 | 1 | 0.7 | 1 | 1.1 | |||||||||
Revisions of previous estimates | MMBbls | (0.1) | (0.2) | ||||||||||||
Production | MMBbls | (0.1) | (0.1) | (0.1) | |||||||||||
Proved reserves - end of year | MMBbls | 0.5 | 0.7 | 0.5 | 0.7 | 1 | |||||||||
Proved developed reserves - end of year | MMBbls | 0.5 | 0.7 | 1 |
Summary of Quarterly Financia48
Summary of Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||||||||||
Lime and limestone operations | $ 33,564 | $ 38,096 | $ 32,376 | $ 33,154 | $ 30,797 | $ 36,452 | $ 31,779 | $ 29,362 | $ 137,190 | $ 128,390 | $ 144,567 |
Natural gas interests | 602 | 554 | 504 | 432 | 497 | 577 | 671 | 702 | 2,092 | 2,447 | 5,274 |
Revenues | 34,166 | 38,650 | 32,880 | 33,586 | 31,294 | 37,029 | 32,450 | 30,064 | 139,282 | 130,837 | 149,841 |
Gross profit (loss) | |||||||||||
Gross profit (loss), Lime and limestone operations | 7,355 | 10,503 | 7,245 | 7,929 | 5,575 | 10,320 | 6,809 | 5,697 | |||
Gross profit (loss), Natural gas interests | 79 | 66 | (4) | (81) | (105) | 47 | 204 | 167 | |||
Gross profit (loss) | 7,434 | 10,569 | 7,241 | 7,848 | 5,470 | 10,367 | 7,013 | 5,864 | 33,092 | 28,714 | 36,791 |
Net income | $ 3,920 | $ 6,081 | $ 3,687 | $ 4,066 | $ 2,286 | $ 5,676 | $ 2,559 | $ 2,365 | $ 17,754 | $ 12,886 | $ 19,367 |
Basic income per common share (in dollars per share) | $ 0.70 | $ 1.09 | $ 0.66 | $ 0.73 | $ 0.41 | $ 1.01 | $ 0.46 | $ 0.42 | $ 3.19 | $ 2.30 | $ 3.47 |
Diluted income per common share (in dollars per share) | $ 0.70 | $ 1.09 | $ 0.66 | $ 0.73 | $ 0.41 | $ 1.01 | $ 0.46 | $ 0.42 | $ 3.19 | $ 2.30 | $ 3.47 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event | Jan. 30, 2017$ / shares |
Subsequent event | |
Quarterly cash dividend declared (in dollars per share) | $ 0.135 |
Dividends payable date declared | Jan. 30, 2017 |
Dividends payable date of record | Feb. 24, 2017 |
Dividends payable date to be paid | Mar. 17, 2017 |