Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 26, 2022 | |
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 | Jun. 30, 2022 | |
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, $0.10 par value | |
Trading Symbol | USLM | |
Security Exchange Name | NASDAQ | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,673,610 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 108,581 | $ 105,355 |
Trade receivables, net | 37,123 | 26,715 |
Inventories, net | 16,719 | 15,116 |
Prepaid expenses and other current assets | 2,197 | 3,244 |
Total current assets | 164,620 | 150,430 |
Property, plant and equipment | 429,006 | 413,561 |
Less accumulated depreciation and depletion | (260,421) | (251,389) |
Property, plant and equipment, net | 168,585 | 162,172 |
Operating lease right-of-use assets | 3,087 | 3,144 |
Other assets, net | 441 | 450 |
Total assets | 336,733 | 316,196 |
Current liabilities: | ||
Accounts payable | 7,100 | 5,433 |
Current portion of operating lease liabilities | 794 | 899 |
Accrued expenses | 4,522 | 4,856 |
Total current liabilities | 12,416 | 11,188 |
Deferred tax liabilities, net | 24,275 | 23,055 |
Operating lease liabilities, excluding current portion | 2,420 | 2,311 |
Other liabilities | 1,452 | 1,436 |
Total liabilities | 40,563 | 37,990 |
Stockholders' equity: | ||
Common stock | 669 | 669 |
Additional paid-in capital | 33,185 | 31,774 |
Retained earnings | 318,250 | 301,611 |
Less treasury stock, at cost | (55,934) | (55,848) |
Total stockholders' equity | 296,170 | 278,206 |
Total liabilities and stockholders' equity | $ 336,733 | $ 316,196 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues | $ 60,492 | $ 49,162 | $ 111,401 | $ 90,836 |
Cost of revenues | ||||
Labor and other operating expenses | 38,538 | 27,200 | 69,797 | 51,793 |
Depreciation, depletion and amortization | 5,473 | 5,167 | 10,656 | 10,443 |
Total cost of revenues | 44,011 | 32,367 | 80,453 | 62,236 |
Gross profit | 16,481 | 16,795 | 30,948 | 28,600 |
Selling, general and administrative expenses | 3,848 | 2,957 | 7,483 | 6,024 |
Operating profit | 12,633 | 13,838 | 23,465 | 22,576 |
Other expense (income) | ||||
Interest expense | 63 | 62 | 126 | 124 |
Interest and other income, net | (177) | (91) | (237) | (125) |
Total other expense (income) | (114) | (29) | (111) | (1) |
Income before income tax expense | 12,747 | 13,867 | 23,576 | 22,577 |
Income tax expense | 2,509 | 2,774 | 4,670 | 4,453 |
Net income | $ 10,238 | $ 11,093 | $ 18,906 | $ 18,124 |
Net income per share of common stock | ||||
Basic (in dollars per share) | $ 1.80 | $ 1.96 | $ 3.33 | $ 3.21 |
Diluted (in dollars per share) | $ 1.80 | $ 1.96 | $ 3.33 | $ 3.20 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues (as a percent) | 100% | 100% | 100% | 100% |
Cost of revenues | ||||
Labor and other operating expenses (as a percent) | 63.70% | 55.30% | 62.60% | 57% |
Depreciation, depletion and amortization (as a percent) | 9.10% | 10.50% | 9.60% | 11.50% |
Total cost of revenues (as a percent) | 72.80% | 65.80% | 72.20% | 68.50% |
Gross profit (as a percent) | 27.20% | 34.20% | 27.80% | 31.50% |
Selling, general and administrative expenses (as a percent) | 6.40% | 6% | 6.70% | 6.60% |
Operating profit (as a percent) | 20.80% | 28.20% | 21.10% | 24.90% |
Other expense (income) | ||||
Interest expense (as a percent) | 0.10% | 0.20% | 0.10% | 0.10% |
Interest and other income, net (as a percent) | (0.30%) | (0.20%) | (0.20%) | (0.10%) |
Total other expense (income) (as a percent) | (0.20%) | 0% | (0.10%) | 0% |
Income before income tax expense (as a percent) | 21% | 28.20% | 21.20% | 24.90% |
Income tax expense (as a percent) | 4.10% | 5.60% | 4.20% | 4.90% |
Net income (as a percent) | 16.90% | 22.60% | 17% | 20% |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total |
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 | |||
Balances at Mar. 31, 2021 | $ 667 | 30,003 | 274,312 | (55,212) | 249,770 |
Balances (in shares) at Mar. 31, 2021 | 5,653,336 | ||||
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 | |||||
Net income | 18,124 | ||||
Balances at Jun. 30, 2021 | $ 667 | 30,657 | 284,501 | (55,212) | 260,613 |
Balances (in shares) at Jun. 30, 2021 | 5,658,481 | ||||
Balances at Mar. 31, 2021 | $ 667 | 30,003 | 274,312 | (55,212) | 249,770 |
Balances (in shares) at Mar. 31, 2021 | 5,653,336 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock options exercised | 83 | 83 | |||
Stock options exercised (in shares) | 2,000 | ||||
Stock-based compensation | 571 | 571 | |||
Stock-based compensation (in shares) | 3,145 | ||||
Cash dividends paid | (904) | (904) | |||
Net income | 11,093 | 11,093 | |||
Balances at Jun. 30, 2021 | $ 667 | 30,657 | 284,501 | (55,212) | 260,613 |
Balances (in shares) at Jun. 30, 2021 | 5,658,481 | ||||
Balances at Dec. 31, 2021 | $ 669 | 31,774 | 301,611 | (55,848) | 278,206 |
Balances (in shares) at Dec. 31, 2021 | 5,666,012 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 651 | 651 | |||
Stock-based compensation (in shares) | 2,823 | ||||
Treasury shares purchased | (86) | (86) | |||
Treasury shares purchased (in shares) | (712) | ||||
Cash dividends paid | (1,133) | (1,133) | |||
Net income | 8,668 | 8,668 | |||
Balances at Mar. 31, 2022 | $ 669 | 32,425 | 309,146 | (55,934) | 286,306 |
Balances (in shares) at Mar. 31, 2022 | 5,668,123 | ||||
Balances at Dec. 31, 2021 | $ 669 | 31,774 | 301,611 | (55,848) | 278,206 |
Balances (in shares) at Dec. 31, 2021 | 5,666,012 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 18,906 | ||||
Balances at Jun. 30, 2022 | $ 669 | 33,185 | 318,250 | (55,934) | 296,170 |
Balances (in shares) at Jun. 30, 2022 | 5,673,610 | ||||
Balances at Mar. 31, 2022 | $ 669 | 32,425 | 309,146 | (55,934) | 286,306 |
Balances (in shares) at Mar. 31, 2022 | 5,668,123 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock options exercised | 120 | 120 | |||
Stock options exercised (in shares) | 2,400 | ||||
Stock-based compensation | 640 | 640 | |||
Stock-based compensation (in shares) | 3,087 | ||||
Cash dividends paid | (1,134) | (1,134) | |||
Net income | 10,238 | 10,238 | |||
Balances at Jun. 30, 2022 | $ 669 | $ 33,185 | $ 318,250 | $ (55,934) | $ 296,170 |
Balances (in shares) at Jun. 30, 2022 | 5,673,610 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES: | ||
Net income | $ 18,906 | $ 18,124 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 10,796 | 10,575 |
Amortization of deferred financing costs | 2 | 2 |
Deferred income taxes | 1,220 | 1,779 |
Gain on disposition of property, plant and equipment | (26) | (78) |
Stock-based compensation | 1,291 | 1,118 |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (9,969) | (4,483) |
Inventories, net | (1,434) | 587 |
Prepaid expenses and other current assets | 1,047 | 445 |
Other assets | 7 | (132) |
Accounts payable and accrued expenses | 443 | (618) |
Other liabilities | 70 | 53 |
Net cash provided by operating activities | 22,353 | 27,372 |
INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (11,485) | (17,776) |
Acquisition of a business, net of cash acquired | (5,630) | |
Proceeds from sale of property, plant and equipment | 221 | 10 |
Net cash used in investing activities | (16,894) | (17,766) |
FINANCING ACTIVITIES: | ||
Cash dividends paid | (2,267) | (1,809) |
Proceeds from exercise of stock options | 120 | 83 |
Purchase of treasury shares | (86) | (95) |
Net cash used in financing activities | (2,233) | (1,821) |
Net increase in cash and cash equivalents | 3,226 | 7,785 |
Cash and cash equivalents at beginning of period | 105,355 | 83,562 |
Cash and cash equivalents at end of period | $ 108,581 | $ 91,347 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. The results of operations for the three- and six-month periods ended June 30, 2022 are not necessarily indicative of operating results for the full year. |
Organization
Organization | 6 Months Ended |
Jun. 30, 2022 | |
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), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), roof shingle manufacturers, agriculture (including poultry and cattle feed producers), and oil and gas services 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, ART Quarry TRS LLC (DBA Carthage Crushed Limestone), Colorado Lime Company, Mill Creek Dolomite, LLC (“Mill Creek”), 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-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation. On February 9, 2022, the Company acquired 100% of the equity interest of Mill Creek, a dolomite mining and production company located in Mill Creek, Oklahoma, for $5.6 million cash. Upon acquisition, Mill Creek’s assets and liabilities were recorded at fair value with million of the purchase price allocated to property, plant, and equipment. Mill Creek contributed |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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 included in 2022 and 2021 revenues was million, for the respective six-month periods ended June 30, 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. 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. 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 8 to the condensed consolidated financial statements. |
Reportable Segment
Reportable Segment | 6 Months Ended |
Jun. 30, 2022 | |
Reportable Segment | |
Reportable Segment | 4. Reportable 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 within a single region 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 the Company’s 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 interests. Other identifiable assets include assets related to the Company’s 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 June 30, Six Months Ended June 30, Revenues 2022 2021 2022 2021 Lime and limestone operations $ 59,613 $ 48,742 $ 109,909 $ 90,098 Other 879 420 1,492 738 Total revenues $ 60,492 $ 49,162 $ 111,401 $ 90,836 Depreciation, depletion and amortization Lime and limestone operations $ 5,330 $ 5,020 $ 10,369 $ 10,157 Other 143 147 287 286 Total depreciation, depletion and amortization $ 5,473 $ 5,167 $ 10,656 $ 10,443 Gross profit Lime and limestone operations $ 15,975 $ 16,682 $ 30,172 $ 28,506 Other 506 113 776 94 Total gross profit $ 16,481 $ 16,795 $ 30,948 $ 28,600 Operating profit Lime and limestone operations $ 12,127 $ 13,725 $ 22,689 $ 22,482 Other 506 113 776 94 Total operating profit $ 12,633 $ 13,838 $ 23,465 $ 22,576 Identifiable assets, at period end Lime and limestone operations $ 223,101 $ 202,179 $ 223,101 $ 202,179 Other 113,632 94,933 113,632 94,933 Total identifiable assets $ 336,733 $ 297,112 $ 336,733 $ 297,112 Capital expenditures Lime and limestone operations $ 5,968 $ 13,233 $ 11,485 $ 17,776 Other — — — — Total capital expenditures $ 5,968 $ 13,233 $ 11,485 $ 17,776 |
Income and Dividends Per Share
Income and Dividends Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Income and Dividends Per Share of Common Stock | |
Income and Dividends Per Share of Common Stock | 5. Income and Dividends Per Share of Common Stock At June 30, 2022, the Company had 30,000,000 shares of common stock authorized and 5,673,610 shares outstanding. The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income for basic and diluted income per common share $ 10,238 $ 11,093 $ 18,906 $ 18,124 Weighted-average shares for basic income per common share 5,672 5,657 5,670 5,654 Effect of dilutive securities: Employee and director stock options (1) 8 12 9 13 Adjusted weighted-average shares and assumed exercises for diluted income per common share 5,680 5,669 5,679 5,667 Basic net income per common share $ 1.80 $ 1.96 $ 3.33 $ 3.21 Diluted net income per common share $ 1.80 $ 1.96 $ 3.33 $ 3.20 (1) Excludes 17 and 14 stock options for the three- and six-month periods ended June 30, 2022, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period. No stock options were excluded for the three- and six-month periods ended June 30, 2021 as anti-dilutive. The Company paid $0.20 and $0.40 of cash dividends per share of common stock in the three- and six-month periods ended June 30, 2022, respectively. The Company paid |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2022 | |
Inventories, Net | |
Inventories, Net | 6. Inventories, Net Inventories are valued principally at the lower of cost, determined using the average cost method, or net realizable value. Costs for raw materials and finished goods include materials, labor, and production overhead. Inventories, net consisted of the following (in thousands): June 30, December 31, 2022 2021 Lime and limestone inventories: Raw materials $ 3,815 $ 3,232 Finished goods 2,419 2,677 6,234 5,909 Service parts inventories 10,485 9,207 $ 16,719 $ 15,116 |
Banking Facilities and Debt
Banking Facilities and Debt | 6 Months Ended |
Jun. 30, 2022 | |
Banking Facilities and Debt | |
Banking Facilities and Debt | 7. 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 (or a replacement rate as determined by the Lender and the Company) 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 June 30, 2022, the Company had no debt outstanding and no draws on the Revolving Facility other than $0.3 million of letters of credit, which count as draws against the available commitment under the Revolving Facility. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | 8. 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 6 years , with a weighted-average remaining lease term of 4 years at each of June 30, 2022 and December 31, 2021 . Some operating leases include options to extend the leases for up to 5 years . The components of lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Classification 2022 2021 2022 2021 Operating lease costs (1) Cost of revenues $ 618 $ 450 $ 1,139 $ 835 Operating lease costs (1) Selling, general and administrative expenses 67 67 140 132 Rental revenues Interest and other income, net (10) (20) (42) (41) Net operating lease costs $ 675 $ 497 $ 1,237 $ 926 (1) Includes the costs of leases with a term of 12 months or less. As of June 30, 2022, 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): 2022 (excluding the six months ended June 30, 2022) $ 574 2023 796 2024 665 2025 432 2026 425 Thereafter 454 Total future minimum lease payments 3,346 Less imputed interest (132) Present value of lease liabilities $ 3,214 Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2022 and 2021 is as follows (in thousands): Six Months Ended June 30, 2022 2021 Cash payments for operating lease liabilities $ 691 $ 708 Right-of-use assets obtained in exchange for operating lease obligations $ 492 $ 96 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Income Taxes | 9. Income Taxes The Company has estimated that its effective income tax rate for 2022 will be 19.8% . 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 | 6 Months Ended |
Jun. 30, 2022 | |
Dividends | |
Dividends | 10. Dividends On June 17, 2022, the Company paid $1.1 million in cash dividends based on a dividend of $0.20 per share of its common stock, to shareholders of record at the close of business on May 27, 2022. On March 18, 2022, the Company paid |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Event. | |
Subsequent Event | 11. Subsequent Event On July 27, 2022 , the Company’s Board of Directors declared a regular quarterly cash dividend of $0.20 per share on the Company’s common stock. This dividend is payable on September 16, 2022 to shareholders of record at the close of business on August 26, 2022 . |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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 included in 2022 and 2021 revenues was million, for the respective six-month periods ended June 30, 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. |
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. |
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 8 to the condensed consolidated financial statements. |
Reportable Segment (Tables)
Reportable Segment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reportable Segment | |
Schedule of operating results and certain other financial data for the business segment) | Three Months Ended June 30, Six Months Ended June 30, Revenues 2022 2021 2022 2021 Lime and limestone operations $ 59,613 $ 48,742 $ 109,909 $ 90,098 Other 879 420 1,492 738 Total revenues $ 60,492 $ 49,162 $ 111,401 $ 90,836 Depreciation, depletion and amortization Lime and limestone operations $ 5,330 $ 5,020 $ 10,369 $ 10,157 Other 143 147 287 286 Total depreciation, depletion and amortization $ 5,473 $ 5,167 $ 10,656 $ 10,443 Gross profit Lime and limestone operations $ 15,975 $ 16,682 $ 30,172 $ 28,506 Other 506 113 776 94 Total gross profit $ 16,481 $ 16,795 $ 30,948 $ 28,600 Operating profit Lime and limestone operations $ 12,127 $ 13,725 $ 22,689 $ 22,482 Other 506 113 776 94 Total operating profit $ 12,633 $ 13,838 $ 23,465 $ 22,576 Identifiable assets, at period end Lime and limestone operations $ 223,101 $ 202,179 $ 223,101 $ 202,179 Other 113,632 94,933 113,632 94,933 Total identifiable assets $ 336,733 $ 297,112 $ 336,733 $ 297,112 Capital expenditures Lime and limestone operations $ 5,968 $ 13,233 $ 11,485 $ 17,776 Other — — — — Total capital expenditures $ 5,968 $ 13,233 $ 11,485 $ 17,776 |
Income and Dividends Per Shar_2
Income and Dividends Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income and Dividends 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income for basic and diluted income per common share $ 10,238 $ 11,093 $ 18,906 $ 18,124 Weighted-average shares for basic income per common share 5,672 5,657 5,670 5,654 Effect of dilutive securities: Employee and director stock options (1) 8 12 9 13 Adjusted weighted-average shares and assumed exercises for diluted income per common share 5,680 5,669 5,679 5,667 Basic net income per common share $ 1.80 $ 1.96 $ 3.33 $ 3.21 Diluted net income per common share $ 1.80 $ 1.96 $ 3.33 $ 3.20 (1) Excludes 17 and 14 stock options for the three- and six-month periods ended June 30, 2022, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period. No stock options were excluded for the three- and six-month periods ended June 30, 2021 as anti-dilutive. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventories, Net | |
Schedule of inventories, net | Inventories are valued principally at the lower of cost, determined using the average cost method, or net realizable value. Costs for raw materials and finished goods include materials, labor, and production overhead. Inventories, net consisted of the following (in thousands): June 30, December 31, 2022 2021 Lime and limestone inventories: Raw materials $ 3,815 $ 3,232 Finished goods 2,419 2,677 6,234 5,909 Service parts inventories 10,485 9,207 $ 16,719 $ 15,116 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of lease costs | The components of lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Classification 2022 2021 2022 2021 Operating lease costs (1) Cost of revenues $ 618 $ 450 $ 1,139 $ 835 Operating lease costs (1) Selling, general and administrative expenses 67 67 140 132 Rental revenues Interest and other income, net (10) (20) (42) (41) Net operating lease costs $ 675 $ 497 $ 1,237 $ 926 (1) Includes the costs of leases with a term of 12 months or less. |
Schedule of maturity of lease liability | 2022 (excluding the six months ended June 30, 2022) $ 574 2023 796 2024 665 2025 432 2026 425 Thereafter 454 Total future minimum lease payments 3,346 Less imputed interest (132) Present value of lease liabilities $ 3,214 |
Schedule of supplemental cash flow information | Six Months Ended June 30, 2022 2021 Cash payments for operating lease liabilities $ 691 $ 708 Right-of-use assets obtained in exchange for operating lease obligations $ 492 $ 96 |
Organization (Details)
Organization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Feb. 09, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | |
Organization | |||
Cash paid for acquisition | $ 5,630 | ||
Mill Creek Dolomite, LLC | |||
Organization | |||
Ownership acquired (as a percent) | 100% | ||
Cash paid for acquisition | $ 5,600 | ||
Property, plant and equipment | $ 5,400 | ||
Revenue of business acquisition | $ 1,100 | $ 1,900 |
Accounting Policies - Revenue R
Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue Recognition | ||||
External freight billed to customers included in revenue | $ 12.1 | $ 8.7 | $ 21.7 | $ 16.5 |
Reportable Segment (Details)
Reportable Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Business segments | |||||
Number of business segments | segment | 1 | ||||
Revenues | $ 60,492 | $ 49,162 | $ 111,401 | $ 90,836 | |
Depreciation, depletion and amortization | 5,473 | 5,167 | 10,656 | 10,443 | |
Gross profit | 16,481 | 16,795 | 30,948 | 28,600 | |
Operating profit | 12,633 | 13,838 | 23,465 | 22,576 | |
Identifiable assets, at period end | 336,733 | 297,112 | 336,733 | 297,112 | $ 316,196 |
Capital expenditures | 5,968 | 13,233 | 11,485 | 17,776 | |
Lime and Limestone Operations Segment Member | |||||
Business segments | |||||
Depreciation, depletion and amortization | 5,330 | 5,020 | 10,369 | 10,157 | |
Gross profit | 15,975 | 16,682 | 30,172 | 28,506 | |
Operating profit | 12,127 | 13,725 | 22,689 | 22,482 | |
Identifiable assets, at period end | 223,101 | 202,179 | 223,101 | 202,179 | |
Capital expenditures | 5,968 | 13,233 | 11,485 | 17,776 | |
Other | |||||
Business segments | |||||
Depreciation, depletion and amortization | 143 | 147 | 287 | 286 | |
Gross profit | 506 | 113 | 776 | 94 | |
Operating profit | 506 | 113 | 776 | 94 | |
Unallocated corporate assets and cash items | |||||
Business segments | |||||
Identifiable assets, at period end | 113,632 | 94,933 | 113,632 | 94,933 | |
Lime and limestone operations | Lime and Limestone Operations Segment Member | |||||
Business segments | |||||
Revenues | 59,613 | 48,742 | 109,909 | 90,098 | |
Others | Other | |||||
Business segments | |||||
Revenues | $ 879 | $ 420 | $ 1,492 | $ 738 |
Income and Dividends Per Shar_3
Income and Dividends Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Anti-dilutive securities | ||||||
Common stock, authorized shares | 30,000,000 | 30,000,000 | ||||
Common stock, shares outstanding | 5,673,610 | 5,673,610 | ||||
Income per share of common stock: | ||||||
Net income for basic and diluted income per common share | $ 10,238 | $ 8,668 | $ 11,093 | $ 7,031 | $ 18,906 | $ 18,124 |
Weighted-average shares for basic income per common share (in shares) | 5,672,000 | 5,657,000 | 5,670,000 | 5,654,000 | ||
Effect of dilutive securities: | ||||||
Employee and director stock options (in shares) | 8,000 | 12,000 | 9,000 | 13,000 | ||
Adjusted weighted-average shares and assumed exercises for diluted income per common share (in shares) | 5,680,000 | 5,669,000 | 5,679,000 | 5,667,000 | ||
Basic net income per common share (in dollars per share) | $ 1.80 | $ 1.96 | $ 3.33 | $ 3.21 | ||
Diluted net income per common share (in dollars per share) | 1.80 | 1.96 | 3.33 | 3.20 | ||
Cash dividends per share of common stock (in dollars per share) | $ 0.20 | $ 0.16 | $ 0.40 | $ 0.32 | ||
Options | ||||||
Anti-dilutive securities | ||||||
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities | 17,000 | 0 | 14,000 | 0 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Lime and limestone inventories: | ||
Raw materials | $ 3,815 | $ 3,232 |
Finished goods | 2,419 | 2,677 |
Total | 6,234 | 5,909 |
Service parts inventories | 10,485 | 9,207 |
Total inventories | $ 16,719 | $ 15,116 |
Banking Facilities and Debt (De
Banking Facilities and Debt (Details) $ in Millions | 6 Months Ended | ||
May 07, 2015 USD ($) | Jun. 30, 2022 USD ($) | May 02, 2019 USD ($) | |
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 | $ 0.3 | ||
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% | ||
Revolving Facility | Minimum | Lender's prime rate | |||
Banking facilities and other debt | |||
Interest rate margin (as a percent) | 0% | ||
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% | ||
Revolving Facility | Maximum | Lender's prime rate | |||
Banking facilities and other debt | |||
Interest rate margin (as a percent) | 1% | ||
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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Leases | |||||
Weighted average remaining lease term | 4 years | 4 years | 4 years | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||
Lease cost | |||||
Net operating lease costs | $ 675 | $ 497 | $ 1,237 | $ 926 | |
Minimum | |||||
Leases | |||||
Remaining lease term | 1 year | 1 year | 1 year | ||
Maximum | |||||
Leases | |||||
Remaining lease term | 6 years | 6 years | 6 years | ||
Lease extension term | 5 years | ||||
Lease Term | 12 months | 12 months | |||
Cost of revenues | |||||
Lease cost | |||||
Operating lease cost | $ 618 | 450 | $ 1,139 | 835 | |
Selling, general and administrative expense. | |||||
Lease cost | |||||
Operating lease cost | 67 | 67 | 140 | 132 | |
Interest and other income, net | |||||
Lease cost | |||||
Rental revenues | $ (10) | $ (20) | $ (42) | $ (41) |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Maturity | |
2022 (excluding the six months ended June 30, 2022) | $ 574 |
2023 | 796 |
2024 | 665 |
2025 | 432 |
2026 | 425 |
Thereafter | 454 |
Total future minimum lease payments | 3,346 |
Less imputed interest | (132) |
Present value of lease liabilities | $ 3,214 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||
Cash payments for operating lease liabilities | $ 691 | $ 708 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 492 | $ 96 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Effective income tax rate (as a percent) | 19.80% |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 17, 2022 | Mar. 18, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends | ||||
Cash dividends paid | $ 1,100 | $ 1,100 | $ 2,267 | $ 1,809 |
Cash dividend (in dollars per share) | $ 0.20 | $ 0.20 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jul. 27, 2022 | Jun. 17, 2022 | Mar. 18, 2022 | Jun. 30, 2022 | |
Subsequent event | ||||
Cash paid for acquisition | $ 5,630 | |||
Quarterly cash dividend declared (in dollars per share) | $ 0.20 | $ 0.20 | ||
Subsequent event | ||||
Subsequent event | ||||
Dividends payable date declared | Jul. 27, 2022 | |||
Quarterly cash dividend declared (in dollars per share) | $ 0.20 | |||
Dividends payable date to be paid | Sep. 16, 2022 | |||
Dividends payable date of record | Aug. 26, 2022 |