United States Lime & Minerals (USLM) 10-Q29 Apr 212021 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	Apr. 28, 2021
Cover Abstract
Entity Registrant Name	UNITED STATES LIME & MINERALS INC
Entity Central Index Key	0000082020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	000-04197
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-0789226
Entity Address, Address Line One	5429 LBJ Freeway, Suite 230
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	991-8400
Title of 12(b) Security	Common stock, $0.10 par value
Trading Symbol	USLM
Security Exchange Name	NASDAQ
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,655,321
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 89,651	$ 83,562
Trade receivables, net	23,957	22,979
Inventories, net	15,409	15,210
Prepaid expenses and other current assets	2,428	2,245
Total current assets	131,445	123,996
Property, plant and equipment	392,631	388,200
Less accumulated depreciation and depletion	(240,993)	(235,739)
Property, plant and equipment, net	151,638	152,461
Operating lease right-of-use assets	1,929	2,226
Other assets, net	398	415
Total assets	285,410	279,098
Current liabilities:
Accounts payable	5,675	4,592
Current portion of operating lease liabilities	1,073	1,187
Accrued expenses	3,995	5,809
Total current liabilities	10,743	11,588
Deferred tax liabilities, net	22,271	21,531
Operating lease liabilities, excluding current portion	858	1,030
Other liabilities	1,768	1,757
Total liabilities	35,640	35,906
Stockholders' equity:
Common stock	667	666
Additional paid-in capital	30,003	29,457
Retained earnings	274,312	268,186
Less treasury stock, at cost	(55,212)	(55,117)
Total stockholders' equity	249,770	243,192
Total liabilities and stockholders' equity	$ 285,410	$ 279,098

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Revenues	$ 41,674	$ 38,440
Cost of revenues
Labor and other operating expenses	24,593	23,962
Depreciation, depletion and amortization	5,276	4,601
Total cost of revenues	29,869	28,563
Gross profit	11,805	9,877
Selling, general and administrative expenses	3,067	3,219
Operating profit	8,738	6,658
Other expense (income)
Interest expense	62	62
Interest and other income, net	(34)	(247)
Total other expense (income)	28	(185)
Income before income tax expense	8,710	6,843
Income tax expense	1,679	1,299
Net income	$ 7,031	$ 5,544
Net income per share of common stock
Basic (in dollars per share)	$ 1.24	$ 0.99
Diluted (in dollars per share)	$ 1.24	$ 0.98

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage	Mar. 31, 2021	Mar. 31, 2020
Revenues
Revenues (as a percent)	100.00%	100.00%
Cost of revenues
Labor and other operating expenses (as a percent)	59.00%	62.30%
Depreciation, depletion and amortization (as a percent)	12.70%	12.00%
Total cost of revenues (as a percent)	71.70%	74.30%
Gross profit (as a percent)	28.30%	25.70%
Selling, general and administrative expenses (as a percent)	7.40%	8.40%
Operating profit (as a percent)	20.90%	17.30%
Other expense (income)
Interest expense (as a percent)	0.10%	0.20%
Interest and other income, net (as a percent)	(0.10%)	(0.70%)
Total other expense (income) (as a percent)	0.00%	(0.50%)
Income before income tax expense (as a percent)	20.90%	17.80%
Income tax expense (as a percent)	4.00%	3.40%
Net income (as a percent)	16.90%	14.40%

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 5,544
Other comprehensive loss
Mark to market of foreign exchange hedges, net of tax benefit of $2 for 2020 period	(6)
Total other comprehensive loss	(6)
Comprehensive income	$ 5,538

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Mark to market on foreign exchange hedges, net of tax benefit of $0 for each of the three and nine months ended September 30, 2020, and $8 and $7 for the three months and nine months ended September 30, 2019, respectively	$ 2	$ 2

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Total
Balances at Dec. 31, 2019	$ 663	$ 27,464	$ (1)	$ 243,566	$ (54,560)	$ 217,132
Balances (in shares) at Dec. 31, 2019	5,622,826
Increase (Decrease) in Stockholders' Equity
Stock options exercised		81				81
Stock options exercised (in shares)	2,000
Stock-based compensation	$ 1	378				379
Stock-based compensation (in shares)	3,063
Treasury shares purchased					(64)	(64)
Treasury shares purchased (in shares)	(704)
Cash dividends paid				(899)		(899)
Net income				5,544		5,544
Mark to market of foreign exchange hedges, net of tax benefit of $2 for 2020 period			(6)			(6)
Comprehensive income			(6)	5,544		5,538
Balances at Mar. 31, 2020	$ 664	27,923	$ (7)	248,211	(54,624)	222,167
Balances (in shares) at Mar. 31, 2020	5,627,185
Balances at Dec. 31, 2020	$ 666	29,457		268,186	(55,117)	243,192
Balances (in shares) at Dec. 31, 2020	5,648,084
Increase (Decrease) in Stockholders' Equity
Stock options exercised (in shares)	3,310
Stock-based compensation	$ 1	546				547
Stock-based compensation (in shares)	2,685
Treasury shares purchased					(95)	(95)
Treasury shares purchased (in shares)	(743)
Cash dividends paid				(905)		(905)
Net income				7,031		7,031
Comprehensive income				7,031		7,031
Balances at Mar. 31, 2021	$ 667	$ 30,003		$ 274,312	$ (55,212)	$ 249,770
Balances (in shares) at Mar. 31, 2021	5,653,336

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
Mark to market of foreign exchange hedges, tax expense (benefit)	$ (2)	$ (2)

CONDENSED CONSOLIDATED STATEM_7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
OPERATING ACTIVITIES:
Net income	$ 7,031	$ 5,544
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	5,341	4,655
Amortization of deferred financing costs	2	2
Deferred income taxes	750	990
Loss (gain) on disposition of property, plant and equipment	3	(13)
Stock-based compensation	547	379
Changes in operating assets and liabilities:
Trade receivables, net	(978)	(200)
Inventories, net	(199)	(146)
Prepaid expenses and other current assets	(183)	249
Other assets	16	14
Accounts payable and accrued expenses	(719)	21
Other liabilities	11	13
Net cash provided by operating activities	11,622	11,508
INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(4,543)	(6,106)
Proceeds from sale of property, plant and equipment	10	16
Net cash used in investing activities	(4,533)	(6,090)
FINANCING ACTIVITIES:
Cash dividends paid	(905)	(899)
Proceeds from exercise of stock options		81
Purchase of treasury shares	(95)	(64)
Net cash used in financing activities	(1,000)	(882)
Net increase in cash and cash equivalents	6,089	4,536
Cash and cash equivalents at beginning of period	83,562	54,260
Cash and cash equivalents at end of period	$ 89,651	$ 58,796

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2021
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The condensed consolidated financial statements included herein have been prepared by United States Lime & Minerals, Inc. (the “Company”) without independent audit. In the opinion of the Company’s management, all adjustments of a normal and recurring nature necessary to present fairly the financial position, results of operations, comprehensive income and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2020. The results of operations for the three-month period ended March 31, 2021 are not necessarily indicative of operating results for the full year. On July 1, 2020, the Company acquired 100% of the equity interest of Carthage Crushed Limestone (“Carthage”), a limestone mining and production company located in Carthage, Missouri, for $8.4 million cash, subject to adjustment for working capital balances acquired. Carthage produces aggregate and pulverized limestone products that are used primarily in the agricultural, construction, roofing, and industrial industries. Carthage contributed

Organization

Organization	3 Months Ended
Organization	Mar. 31, 2021
Organization
Organization	2. Organization The Company is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), oil and gas services, roof shingle manufacturers 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, Missouri, 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, ART Quarry TRS LLC (DBA Carthage Crushed Limestone) 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-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation.

Accounting Policies

Accounting Policies	3 Months Ended
Accounting Policies	Mar. 31, 2021
Accounting Policies
Accounting Policies	3. Accounting Policies Revenue Recognition. The Company recognizes revenue for its lime and limestone operations when (i) a contract with the customer exists and the performance obligations are identified; (ii) the price has been established; and (iii) the performance obligations have been satisfied, which is generally upon shipment. The Company’s returns and allowances are minimal. Revenues include external freight billed to customers with related costs accounted for as fulfillment costs and included in cost of revenues. External freight billed to customers in each of the first quarters 2021 and 2020 revenues was million, respectively, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its natural gas interests, the Company recognizes revenue in the month of production and delivery. The Company operates its lime and limestone operations within a single geographic region and derives all revenues from that segment from the sale of lime and limestone products. See Note 4 to the condensed consolidated financial statements for disaggregation of revenues by segment, which the Company believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors . Accounts Receivable. 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. The Company estimates credit losses relating to trade receivables based on an assessment of the current and forecasted probability of collection, historical trends, economic conditions and other significant events that may impact the collectability of accounts receivables. Due to the relatively homogenous nature of its trade receivables, the Company does not believe there is any meaningful asset-specific differences within its accounts receivable portfolio that would require the portfolio to be grouped below the consolidated level for review of credit losses. 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. The Company maintains an allowance for credit losses to reflect currently expected estimated losses resulting from the failure of customers to make required payments. See Note 7 to the condensed consolidated financial statements. Leases. The Company determines if an arrangement is a lease at inception. When recording operating leases, the Company records a lease liability based on the net present value of the lease payments over the lease term, using the interest rate implicit in the lease, if known, or an incremental rate on a collateralized basis over a similar term and amount to the lease, and a corresponding right-of-use asset. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and operating lease liabilities, excluding current portion, on the condensed consolidated balance sheets. Lease expense is recognized over the lease term on a straight-line basis. Lease terms include options to extend the lease when it is reasonably certain the Company will exercise the option. For leases with a term of twelve months or less, the Company does not record a right-of-use asset and a lease liability and records lease expense on a straight-line basis. See Note 10 to the condensed consolidated financial statements. 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 used to value the Company’s foreign exchange (“FX”) hedges were Euro to U.S. Dollar exchange rates for the expected future payment dates for the Company’s commitments denominated in Euros. The last of these foreign exchange hedges expired in April 2020. See Note 6 to the condensed consolidated financial statements. There were no changes in the methods and assumptions used in measuring fair value during the period.

Business Segment

Business Segment	3 Months Ended
Business Segment	Mar. 31, 2021
Business Segment
Business Segment	4. Business Segment The Company has identified one reportable segment based on the distinctness of the Company’s activities and products: lime and limestone operations. All operations are in the United States. In evaluating the operating results of the Company, management primarily reviews revenues, gross profit and operating profit from the lime and limestone operations. Operating profit from its lime and limestone operations includes all of the Company’s selling, general and administrative costs. The Company does not allocate interest expense and interest and other income (expense), net to its lime and limestone operations. Other revenues, gross profit and operating profit in the Company’s segment disclosures include the Company’s natural gas interest. Other identifiable assets include assets related to its natural gas interests, unallocated corporate assets and cash items. The following table sets forth operating results and certain other financial data for the Company’s lime and limestone operations segment and other (in thousands): Three Months Ended March 31, Revenues 2021 2020 Lime and limestone operations $ 41,356 $ 38,214 Other 318 226 Total revenues $ 41,674 $ 38,440 Depreciation, depletion and amortization Lime and limestone operations $ 5,137 $ 4,413 Other 139 188 Total depreciation, depletion and amortization $ 5,276 $ 4,601 Gross profit (loss) Lime and limestone operations $ 11,804 $ 10,039 Other 1 (162) Total gross profit $ 11,805 $ 9,877 Operating profit (loss) Lime and limestone operations $ 8,737 $ 6,820 Other 1 (162) Total operating profit $ 8,738 $ 6,658 Identifiable assets, at period end Lime and limestone operations $ 191,419 $ 186,702 Other 93,991 65,165 Total identifiable assets $ 285,410 $ 251,867 Capital expenditures Lime and limestone operations $ 4,543 $ 6,106 Other — — Total capital expenditures $ 4,543 $ 6,106

Income Per Share of Common Stoc

Income Per Share of Common Stock	3 Months Ended
Income Per Share of Common Stock	Mar. 31, 2021
Income Per Share of Common Stock
Income Per Share of Common Stock	5. Income Per Share of Common Stock At March 31, 2021, the Company had 15,000,000 shares of common stock authorized and 5,653,336 shares outstanding. On April 30, 2021, shareholders will vote at the Company’s 2021 Annual Meeting of Shareholders on a proposal to increase the number of authorized shares of common stock to . The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Net income for basic and diluted income per common share $ 7,031 $ 5,544 Weighted-average shares for basic income per common share 5,651 5,624 Effect of dilutive securities: Employee and director stock options (1) 13 10 Adjusted weighted-average shares and assumed exercises for diluted income per common share 5,664 5,634 Basic net income per common share $ 1.24 $ 0.99 Diluted net income per common share $ 1.24 $ 0.98 (1) Excludes 0 and 8 stock options for the three months ended March 31, 2021 and 2020, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
Accumulated Other Comprehensive Income	Mar. 31, 2021
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	6. Accumulated Other Comprehensive Income The following table presents the components of comprehensive income (in thousands): Three Months Ended March 31, 2021 2020 Net income $ 7,031 $ 5,544 Mark to market of foreign exchange hedges — (8) Deferred income tax benefit — 2 Comprehensive income $ 7,031 $ 5,538 In May 2018, to hedge against potential losses due to changes in the Euro to U.S. Dollar exchange rates, the Company entered into FX hedges with a counterparty to the FX hedges to fix the exchange rates. The last of the FX hedges expired in April 2020. The FX hedges were effective as defined under applicable accounting rules. Therefore, changes in the fair value of the FX hedges were reflected in comprehensive income.

Trade Receivables, Net

Trade Receivables, Net	3 Months Ended
Trade Receivables, Net	Mar. 31, 2021
Trade Receivables, Net
Trade Receivables, Net	7. Trade Receivables, Net Additions, adjustments and write-offs to the Company’s allowance for credit losses for the three months ended March 31, 2021 and 2020 were as follows (in thousands): March 31, 2021 2020 Beginning balance $ 398 $ 361 Additions — 39 Adjustment for expected credit loss factors (14) — Write-offs — — Ending balance $ 384 $ 400

Inventories, Net

Inventories, Net	3 Months Ended
Inventories, Net	Mar. 31, 2021
Inventories, Net
Inventories, Net	8. 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. Inventories, net consisted of the following (in thousands): March 31, December 31, 2021 2020 Lime and limestone inventories: Raw materials $ 4,495 $ 4,279 Finished goods 2,713 2,866 7,208 7,145 Service parts inventories 8,201 8,065 $ 15,409 $ 15,210

Banking Facilities and Debt

Banking Facilities and Debt	3 Months Ended
Banking Facilities and Debt	Mar. 31, 2021
Banking Facilities and Debt
Banking Facilities and Debt	9. Banking Facilities and Debt The Company’s credit agreement with Wells Fargo Bank, N.A. (the “Lender”), as amended as of May 2, 2019 and November 21, 2019, provides for a $75 million revolving credit facility (the “Revolving Facility”) and an incremental four year accordion feature to borrow up to an additional $50 million on the same terms, subject to approval by the Lender or another lender selected by the Company. The credit agreement also provides for a $10 million letter of credit sublimit under the Revolving Facility. The Revolving Facility and any incremental loans mature on May 2, 2024. Interest rates on the Revolving Facility are, at the Company’s option, LIBOR plus a margin of 1.000% to 2.000%, or the Lender’s Prime Rate plus a margin of 0.000% to 1.000%, and a commitment fee range of 0.200% to 0.350% on the undrawn portion of the Revolving Facility. The 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 Revolving Facility is secured by the Company’s existing and hereafter acquired tangible assets, intangible assets and real property. The maturity of the 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 The Company may pay dividends so long as it remains in compliance with the provisions of the Company’s credit agreement, and it 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. As of March 31, 2021, the Company had no debt outstanding and no draws on the Revolving Facility other than $0.4 million of letters of credit, which count as draws against the available commitment under the Revolving Facility.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2021
Leases
Leases	10. Leases The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 1 to 7 years , with a weighted-average remaining lease term of 2 years at March 31, 2021 and 3 at December 31, 2020 . Some operating leases include options to extend the leases for up to 5 years . The liability for the Company’s operating leases was discounted to present value using a weighted-average discount rate of 3.4% at each of March 31, 2021 and March 31, 2020. The components of lease costs for the three months ended March 31, 2021 and 2020 were as follows (in thousands): Three Months Ended March 31, Classification 2021 2020 Operating lease costs (1) Cost of revenues $ 385 $ 385 Operating lease costs (1) Selling, general and administrative expenses 65 56 Rental revenues Interest and other income, net (21) (27) Net operating lease costs $ 429 $ 414 (1) Includes the costs of leases with a term of 12 months or less. As of March 31, 2021, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands): 2021 (excluding the three months ended March 31, 2021) $ 873 2022 590 2023 258 2024 186 2025 36 Thereafter 54 Total future minimum lease payments 1,997 Less imputed interest (66) Present value of lease liabilities $ 1,931 Supplemental cash flow information pertaining to the Company’s leasing activity for the three months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash payments for operating lease liabilities $ 345 $ 447 Right-of-use assets obtained in exchange for operating lease obligations $ 11 $ —

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Taxes
Income Taxes	11. Income Taxes The Company has estimated that its effective income tax rate for 2021 will be 19.3% . The primary reason for the effective income tax rate being below the federal statutory rate is due to statutory depletion, which is allowed for income tax purposes and is a permanent difference between net income for financial reporting purposes and taxable income.

Dividends

Dividends	3 Months Ended
Dividends	Mar. 31, 2021
Dividends
Dividends	12. Dividends On March 12, 2021, the Company paid $0.9 million in cash dividends, based on a dividend of $0.16 per share of its common stock, to shareholders of record at the close of business on February 19, 2021.

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2021
Subsequent Events.
Subsequent Events	13. Subsequent Event On April 28, 2021 , the Company’s Board of Directors declared a regular quarterly cash dividend of $0.16 per share on the Company’s common stock. This dividend is payable on June 11, 2021 to shareholders of record at the close of business on May 21, 2021 .

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies
Revenue Recognition	Revenue Recognition. The Company recognizes revenue for its lime and limestone operations when (i) a contract with the customer exists and the performance obligations are identified; (ii) the price has been established; and (iii) the performance obligations have been satisfied, which is generally upon shipment. The Company’s returns and allowances are minimal. Revenues include external freight billed to customers with related costs accounted for as fulfillment costs and included in cost of revenues. External freight billed to customers in each of the first quarters 2021 and 2020 revenues was million, respectively, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its natural gas interests, the Company recognizes revenue in the month of production and delivery. The Company operates its lime and limestone operations within a single geographic region and derives all revenues from that segment from the sale of lime and limestone products. See Note 4 to the condensed consolidated financial statements for disaggregation of revenues by segment, which the Company believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors .
Accounts Receivable	Accounts Receivable. 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. The Company estimates credit losses relating to trade receivables based on an assessment of the current and forecasted probability of collection, historical trends, economic conditions and other significant events that may impact the collectability of accounts receivables. Due to the relatively homogenous nature of its trade receivables, the Company does not believe there is any meaningful asset-specific differences within its accounts receivable portfolio that would require the portfolio to be grouped below the consolidated level for review of credit losses. 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. The Company maintains an allowance for credit losses to reflect currently expected estimated losses resulting from the failure of customers to make required payments. See Note 7 to the condensed consolidated financial statements.
Leases	Leases. The Company determines if an arrangement is a lease at inception. When recording operating leases, the Company records a lease liability based on the net present value of the lease payments over the lease term, using the interest rate implicit in the lease, if known, or an incremental rate on a collateralized basis over a similar term and amount to the lease, and a corresponding right-of-use asset. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and operating lease liabilities, excluding current portion, on the condensed consolidated balance sheets. Lease expense is recognized over the lease term on a straight-line basis. Lease terms include options to extend the lease when it is reasonably certain the Company will exercise the option. For leases with a term of twelve months or less, the Company does not record a right-of-use asset and a lease liability and records lease expense on a straight-line basis. See Note 10 to the condensed consolidated financial statements.
Fair Values of Financial Instruments	Fair Values of Financial Instruments . Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of its financial assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Specific inputs used to value the Company’s foreign exchange (“FX”) hedges were Euro to U.S. Dollar exchange rates for the expected future payment dates for the Company’s commitments denominated in Euros. The last of these foreign exchange hedges expired in April 2020. See Note 6 to the condensed consolidated financial statements. There were no changes in the methods and assumptions used in measuring fair value during the period.

Business Segment (Tables)

Business Segment (Tables)	3 Months Ended
Business Segment (Tables)	Mar. 31, 2021
Business Segment
Schedule of operating results and certain other financial data for the business segment)	The following table sets forth operating results and certain other financial data for the Company’s lime and limestone operations segment and other (in thousands): Three Months Ended March 31, Revenues 2021 2020 Lime and limestone operations $ 41,356 $ 38,214 Other 318 226 Total revenues $ 41,674 $ 38,440 Depreciation, depletion and amortization Lime and limestone operations $ 5,137 $ 4,413 Other 139 188 Total depreciation, depletion and amortization $ 5,276 $ 4,601 Gross profit (loss) Lime and limestone operations $ 11,804 $ 10,039 Other 1 (162) Total gross profit $ 11,805 $ 9,877 Operating profit (loss) Lime and limestone operations $ 8,737 $ 6,820 Other 1 (162) Total operating profit $ 8,738 $ 6,658 Identifiable assets, at period end Lime and limestone operations $ 191,419 $ 186,702 Other 93,991 65,165 Total identifiable assets $ 285,410 $ 251,867 Capital expenditures Lime and limestone operations $ 4,543 $ 6,106 Other — — Total capital expenditures $ 4,543 $ 6,106

Income Per Share of Common St_2

Income Per Share of Common Stock (Tables)	3 Months Ended
Income Per Share of Common Stock (Tables)	Mar. 31, 2021
Income Per Share of Common Stock
Schedule of computation of basic and diluted income per common share	The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Net income for basic and diluted income per common share $ 7,031 $ 5,544 Weighted-average shares for basic income per common share 5,651 5,624 Effect of dilutive securities: Employee and director stock options (1) 13 10 Adjusted weighted-average shares and assumed exercises for diluted income per common share 5,664 5,634 Basic net income per common share $ 1.24 $ 0.99 Diluted net income per common share $ 1.24 $ 0.98 (1) Excludes 0 and 8 stock options for the three months ended March 31, 2021 and 2020, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
Accumulated Other Comprehensive Income (Tables)	Mar. 31, 2021
Accumulated Other Comprehensive Income
Schedule of components of comprehensive income	The following table presents the components of comprehensive income (in thousands): Three Months Ended March 31, 2021 2020 Net income $ 7,031 $ 5,544 Mark to market of foreign exchange hedges — (8) Deferred income tax benefit — 2 Comprehensive income $ 7,031 $ 5,538

Trade Receivables, Net (Tables)

Trade Receivables, Net (Tables)	3 Months Ended
Trade Receivables, Net (Tables)	Mar. 31, 2021
Trade Receivables, Net
Schedule of additions and write-offs to allowance for doubtful accounts	Additions, adjustments and write-offs to the Company’s allowance for credit losses for the three months ended March 31, 2021 and 2020 were as follows (in thousands): March 31, 2021 2020 Beginning balance $ 398 $ 361 Additions — 39 Adjustment for expected credit loss factors (14) — Write-offs — — Ending balance $ 384 $ 400

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
Inventories, Net (Tables)	Mar. 31, 2021
Inventories, Net
Schedule of 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. Inventories, net consisted of the following (in thousands): March 31, December 31, 2021 2020 Lime and limestone inventories: Raw materials $ 4,495 $ 4,279 Finished goods 2,713 2,866 7,208 7,145 Service parts inventories 8,201 8,065 $ 15,409 $ 15,210

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2021
Leases
Schedule of lease costs	The components of lease costs for the three months ended March 31, 2021 and 2020 were as follows (in thousands): Three Months Ended March 31, Classification 2021 2020 Operating lease costs (1) Cost of revenues $ 385 $ 385 Operating lease costs (1) Selling, general and administrative expenses 65 56 Rental revenues Interest and other income, net (21) (27) Net operating lease costs $ 429 $ 414 (1) Includes the costs of leases with a term of 12 months or less.
Schedule of maturity of lease liability	2021 (excluding the three months ended March 31, 2021) $ 873 2022 590 2023 258 2024 186 2025 36 Thereafter 54 Total future minimum lease payments 1,997 Less imputed interest (66) Present value of lease liabilities $ 1,931
Schedule of supplemental cash flow information	Three Months Ended March 31, 2021 2020 Cash payments for operating lease liabilities $ 345 $ 447 Right-of-use assets obtained in exchange for operating lease obligations $ 11 $ —

Basis of Presentation (Details)

Basis of Presentation (Details) - Carthage Crushed Limestone - USD ($) $ in Millions	Jul. 01, 2020	Mar. 31, 2021
Ownership acquired (as a percent)	100.00%
Cash paid for acquisition	$ 8.4
Revenue of business acquisition		$ 2.2

Accounting Policies - Revenue R

Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue Recognition
External freight billed to customers included in revenue	$ 7.8	$ 6.9

Business Segment (Details)

Business Segment (Details) $ in Thousands	3 Months Ended
Business Segment (Details) $ in Thousands	Mar. 31, 2021USD ($)segment	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Business segments
Number of business segments \| segment	1
Revenues	$ 41,674	$ 38,440
Depreciation, depletion and amortization	5,276	4,601
Gross profit (loss)	11,805	9,877
Operating profit (loss)	8,738	6,658
Identifiable assets, at period end	285,410	251,867	$ 279,098
Capital expenditures	4,543	6,106
Lime and limestone operations
Business segments
Depreciation, depletion and amortization	5,137	4,413
Gross profit (loss)	11,804	10,039
Operating profit (loss)	8,737	6,820
Identifiable assets, at period end	191,419	186,702
Capital expenditures	4,543	6,106
Other
Business segments
Depreciation, depletion and amortization	139	188
Gross profit (loss)	1	(162)
Operating profit (loss)	1	(162)
Identifiable assets, at period end	93,991	65,165
Lime and limestone operations \| Lime and limestone operations
Business segments
Revenues	41,356	38,214
Natural gas interests \| Other
Business segments
Revenues	$ 318	$ 226

Income Per Share of Common St_3

Income Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Apr. 30, 2021
Anti-dilutive securities
Common stock, authorized shares	15,000,000		30,000,000
Common stock, shares issued	5,653,336
Income per share of common stock:
Net income for basic and diluted income per common share	$ 7,031	$ 5,544
Weighted-average shares for basic income per common share (in shares)	5,651,000	5,624,000
Effect of dilutive securities:
Employee and director stock options (in shares)	13,000	10,000
Adjusted weighted-average shares and assumed exercises for diluted income per common share (in shares)	5,664,000	5,634,000
Basic net income per common share (in dollars per share)	$ 1.24	$ 0.99
Diluted net income per common share (in dollars per share)	$ 1.24	$ 0.98
Options
Anti-dilutive securities
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities	0	8,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Components of comprehensive income
Net income	$ 7,031	$ 5,544
Mark to market of foreign exchange hedges		(8)
Deferred income tax benefit		2
Comprehensive income	$ 7,031	$ 5,538

Trade Receivables, Net (Details

Trade Receivables, Net (Details) - USD ($) $ in Thousands	3 Months Ended
Trade Receivables, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Additions and write-offs to the company's allowance for doubtful accounts
Beginning balance	$ 398	$ 361
Additions		39
Adjustment for expected credit loss factors	(14)
Ending balance	$ 384	$ 400

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Lime and limestone inventories:
Raw materials	$ 4,495	$ 4,279
Finished goods	2,713	2,866
Total	7,208	7,145
Service parts inventories	8,201	8,065
Total inventories	$ 15,409	$ 15,210

Banking Facilities and Debt (De

Banking Facilities and Debt (Details) $ in Millions	May 07, 2015USD ($)	Mar. 31, 2021USD ($)	May 02, 2019USD ($)
Banking facilities and other debt
Total Debt		$ 0
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
Revolving Facility
Banking facilities and other debt
Maximum borrowing capacity			$ 75
Accordion feature period	4 years
Maximum borrowing capacity accordion feature	$ 50
Letters of credit outstanding		$ 0.4
Revolving Facility \| Minimum
Banking facilities and other debt
Commitment fee (as a percent)	0.20%
Revolving Facility \| Minimum \| LIBOR
Banking facilities and other debt
Interest rate margin (as a percent)	1.00%
Revolving Facility \| Minimum \| Lender's prime rate
Banking facilities and other debt
Interest rate margin (as a percent)	0.00%
Revolving Facility \| Maximum
Banking facilities and other debt
Commitment fee (as a percent)	0.35%
Revolving Facility \| Maximum \| LIBOR
Banking facilities and other debt
Interest rate margin (as a percent)	2.00%
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

Leases - Costs Disclosure (Deta

Leases - Costs Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Leases
Weighted average remaining lease term	2 years		3 years
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Average discount rate (as a percent)	3.40%		3.40%
Lease cost
Net operating lease costs	$ 429	$ 414
Minimum
Leases
Remaining lease term	1 year		1 year
Maximum
Leases
Remaining lease term	7 years		7 years
Lease extension term	5 years
Lease Term	12 months
Cost of revenues
Lease cost
Operating lease cost	$ 385	385
Selling, general and administrative expense.
Lease cost
Operating lease cost	65	56
Interest and other income, net
Lease cost
Rental revenues	$ (21)	$ (27)

Leases - Maturity (Details)

Leases - Maturity (Details) $ in Thousands	Mar. 31, 2021USD ($)
Maturity
2021 (excluding the three months ended March 31, 2021)	$ 873
2022	590
2023	258
2024	186
2025	36
Thereafter	54
Total future minimum lease payments	1,997
Less imputed interest	(66)
Present value of lease liabilities	$ 1,931

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases
Cash payments for operating lease liabilities	$ 345	$ 447
Right-of-use assets obtained in exchange for operating lease obligations	$ 11

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 31, 2021
Income Taxes
Effective income tax rate (as a percent)	19.30%

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 12, 2021	Mar. 31, 2021	Mar. 31, 2020
Dividends
Cash dividends paid	$ 900	$ 905	$ 899
Cash dividend (in dollars per share)	$ 0.16

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 28, 2021	Mar. 12, 2021
Subsequent event
Quarterly cash dividend declared (in dollars per share)		$ 0.16
Subsequent event
Subsequent event
Dividends payable date declared	Apr. 28, 2021
Quarterly cash dividend declared (in dollars per share)	$ 0.16
Dividends payable date to be paid	Jun. 11, 2021
Dividends payable date of record	May 21, 2021