United States Lime & Minerals (USLM) 10-Q 27 Oct 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 25, 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	Sep. 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		5,673,540
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 122,659	$ 105,355
Trade receivables, net	39,559	26,715
Inventories, net	17,652	15,116
Prepaid expenses and other current assets	2,162	3,244
Total current assets	182,032	150,430
Property, plant and equipment	434,238	413,561
Less accumulated depreciation and depletion	(264,858)	(251,389)
Property, plant and equipment, net	169,380	162,172
Operating lease right-of-use assets	4,030	3,144
Other assets, net	438	450
Total assets	355,880	316,196
Current liabilities:
Accounts payable	7,141	5,433
Current portion of operating lease liabilities	1,074	899
Accrued expenses	6,472	4,856
Total current liabilities	14,687	11,188
Deferred tax liabilities, net	25,239	23,055
Operating lease liabilities, excluding current portion	3,105	2,311
Other liabilities	1,447	1,436
Total liabilities	44,478	37,990
Stockholders' equity:
Common stock	669	669
Additional paid-in capital	33,826	31,774
Retained earnings	332,841	301,611
Less treasury stock, at cost	(55,934)	(55,848)
Total stockholders' equity	311,402	278,206
Total liabilities and stockholders' equity	$ 355,880	$ 316,196

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Revenues	$ 66,457	$ 52,311	$ 177,858	$ 143,147
Cost of revenues
Labor and other operating expenses	38,221	29,981	108,018	81,774
Depreciation, depletion and amortization	5,646	4,989	16,302	15,432
Total cost of revenues	43,867	34,970	124,320	97,206
Gross profit	22,590	17,341	53,538	45,941
Selling, general and administrative expenses	3,543	3,145	11,026	9,169
Operating profit	19,047	14,196	42,512	36,772
Other expense (income)
Interest expense	64	63	190	187
Interest and other income, net	(578)	(147)	(815)	(272)
Total other expense (income)	(514)	(84)	(625)	(85)
Income before income tax expense	19,561	14,280	43,137	36,857
Income tax expense	3,835	2,972	8,505	7,425
Net income	$ 15,726	$ 11,308	$ 34,632	$ 29,432
Net income per share of common stock
Basic (in dollars per share)	$ 2.77	$ 2	$ 6.11	$ 5.20
Diluted (in dollars per share)	$ 2.77	$ 1.99	$ 6.10	$ 5.19

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Revenues (as a percent)	100%	100%	100%	100%
Cost of revenues
Labor and other operating expenses (as a percent)	57.50%	57.30%	60.70%	57.10%
Depreciation, depletion and amortization (as a percent)	8.50%	9.60%	9.20%	10.80%
Total cost of revenues (as a percent)	66%	66.90%	69.90%	67.90%
Gross profit (as a percent)	34%	33.10%	30.10%	32.10%
Selling, general and administrative expenses (as a percent)	5.30%	6%	6.20%	6.40%
Operating profit (as a percent)	28.70%	27.10%	23.90%	25.70%
Other expense (income)
Interest expense (as a percent)	0.10%	0.10%	0.10%	0.10%
Interest and other income, net (as a percent)	(0.90%)	(0.30%)	(0.50%)	(0.20%)
Total other expense (income) (as a percent)	(0.80%)	(0.20%)	(0.40%)	(0.10%)
Income before income tax expense (as a percent)	29.50%	27.30%	24.30%	25.80%
Income tax expense (as a percent)	5.80%	5.70%	4.80%	5.20%
Net income (as a percent)	23.70%	21.60%	19.50%	20.60%

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					29,432
Balances at Sep. 30, 2021	$ 667	31,217	294,903	(55,212)	271,575
Balances (in shares) at Sep. 30, 2021	5,658,467
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
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		560			560
Stock-based compensation (in shares)	(14)
Cash dividends paid			(906)		(906)
Net income			11,308		11,308
Balances at Sep. 30, 2021	$ 667	31,217	294,903	(55,212)	271,575
Balances (in shares) at Sep. 30, 2021	5,658,467
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					34,632
Balances at Sep. 30, 2022	$ 669	33,826	332,841	(55,934)	311,402
Balances (in shares) at Sep. 30, 2022	5,673,574
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
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		641			641
Stock-based compensation (in shares)	(36)
Cash dividends paid			(1,135)		(1,135)
Net income			15,726		15,726
Balances at Sep. 30, 2022	$ 669	$ 33,826	$ 332,841	$ (55,934)	$ 311,402
Balances (in shares) at Sep. 30, 2022	5,673,574

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES:
Net income	$ 34,632	$ 29,432
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	16,511	15,632
Amortization of deferred financing costs	2	6
Deferred income taxes	2,184	2,049
(Gain) loss on sale of property, plant and equipment	(210)	41
Stock-based compensation	1,932	1,678
Changes in operating assets and liabilities:
Trade receivables, net	(12,405)	(6,263)
Inventories, net	(2,367)	450
Prepaid expenses and other current assets	1,082	844
Other assets	10	(86)
Accounts payable and accrued expenses	2,451	266
Other liabilities	96	78
Net cash provided by operating activities	43,918	44,127
INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(18,120)	(23,731)
Acquisition of a business, net of cash acquired	(5,630)
Proceeds from sale of property, plant and equipment	504	171
Net cash used in investing activities	(23,246)	(23,560)
FINANCING ACTIVITIES:
Cash dividends paid	(3,402)	(2,715)
Proceeds from exercise of stock options	120	83
Purchase of treasury shares	(86)	(95)
Net cash used in financing activities	(3,368)	(2,727)
Net increase in cash and cash equivalents	17,304	17,840
Cash and cash equivalents at beginning of period	105,355	83,562
Cash and cash equivalents at end of period	$ 122,659	$ 101,402

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 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 nine-month periods ended September 30, 2022 are not necessarily indicative of operating results for the full year. ​

Organization

Organization	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 nine-month periods ended September 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	9 Months Ended
	Sep. 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. Depreciation, depletion and amortization in the table below include only amounts that are included in cost of revenues in the Company’s condensed consolidated statements of 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 September 30, ​ Nine Months Ended September 30, ​ Revenues ​ 2022 ​ 2021 ​ 2022 ​ 2021 ​ Lime and limestone operations ​ $ 65,699 ​ $ 51,749 ​ $ 175,608 ​ $ 141,847 ​ Other ​ 758 ​ 562 ​ 2,250 ​ 1,300 ​ Total revenues ​ $ 66,457 ​ $ 52,311 ​ $ 177,858 ​ $ 143,147 ​ Depreciation, depletion and amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 5,513 ​ $ 4,844 ​ $ 15,882 ​ $ 15,002 ​ Other ​ 133 ​ 145 ​ 420 ​ 430 ​ Total depreciation, depletion and amortization ​ $ 5,646 ​ $ 4,989 ​ $ 16,302 ​ $ 15,432 ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 22,166 ​ $ 17,128 ​ $ 52,338 ​ $ 45,634 ​ Other ​ 424 ​ 213 ​ 1,200 ​ 307 ​ Total gross profit ​ $ 22,590 ​ $ 17,341 ​ $ 53,538 ​ $ 45,941 ​ Operating profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 18,626 ​ $ 13,983 ​ $ 41,321 ​ $ 36,465 ​ Other ​ ​ 421 ​ 213 ​ 1,191 ​ 307 ​ Total operating profit ​ $ 19,047 ​ $ 14,196 ​ $ 42,512 ​ $ 36,772 ​ Identifiable assets, at period end ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 228,797 ​ $ 204,841 ​ $ 228,797 ​ $ 204,841 ​ Other ​ 127,083 ​ 106,067 ​ ​ 127,083 ​ ​ 106,067 ​ Total identifiable assets ​ $ 355,880 ​ $ 310,908 ​ $ 355,880 ​ $ 310,908 ​ Capital expenditures ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 6,635 ​ $ 5,955 ​ $ 18,120 ​ $ 23,731 ​ Other ​ — ​ — ​ — ​ — ​ Total capital expenditures ​ $ 6,635 ​ $ 5,955 ​ $ 18,120 ​ $ 23,731 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income and Dividends Per Share

Income and Dividends Per Share of Common Stock	9 Months Ended
	Sep. 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 September 30, 2022, the Company had 30,000,000 shares of common stock authorized and 5,673,574 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 September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2021 2022 2021 Net income for basic and diluted income per common share ​ $ 15,726 ​ $ 11,308 ​ $ 34,632 ​ $ 29,432 ​ Weighted-average shares for basic income per common share ​ 5,674 ​ 5,658 ​ 5,671 ​ 5,656 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee and director stock options (1) ​ 6 ​ 13 ​ 8 ​ 12 ​ Adjusted weighted-average shares and assumed exercises for diluted income per common share ​ 5,680 ​ 5,671 ​ 5,679 ​ 5,668 ​ Basic net income per common share ​ $ 2.77 ​ $ 2.00 ​ $ 6.11 ​ $ 5.20 ​ Diluted net income per common share ​ $ 2.77 ​ $ 1.99 ​ $ 6.10 ​ $ 5.19 ​ (1) Excludes 20 and 16 stock options for the three- and nine-month periods ended September 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 nine-month periods ended September 30, 2021 as anti-dilutive. ​ The Company paid $0.20 and $0.60 of cash dividends per share of common stock in the three- and nine-month periods ended September 30, 2022, respectively. The Company paid

Inventories, Net

Inventories, Net	9 Months Ended
	Sep. 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ ​ 2022 ​ 2021 Lime and limestone inventories: ​ ​ ​ Raw materials ​ $ 4,361 ​ $ 3,232 ​ Finished goods ​ 2,391 ​ 2,677 ​ ​ ​ ​ 6,752 ​ ​ 5,909 ​ Service parts inventories ​ 10,900 ​ 9,207 ​ ​ ​ $ 17,652 ​ $ 15,116 ​ ​

Banking Facilities and Debt

Banking Facilities and Debt	9 Months Ended
	Sep. 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 September 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	9 Months Ended
	Sep. 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 September 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 nine months ended September 30, 2022 and 2021 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ Classification 2022 2021 2022 2021 Operating lease costs (1) ​ Cost of revenues ​ $ 606 ​ $ 444 ​ $ 1,746 ​ $ 1,279 Operating lease costs (1) ​ Selling, general and administrative expenses ​ ​ 70 ​ ​ 64 ​ 210 ​ 196 Rental revenues ​ Interest and other income, net ​ ​ (10) ​ ​ (28) ​ (52) ​ (69) Net operating lease costs ​ ​ ​ $ 666 ​ $ 480 ​ $ 1,904 ​ $ 1,406 (1) Includes the costs of leases with a term of 12 months or less. ​ As of September 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 nine months ended September 30, 2022) ​ $ 329 ​ 2023 ​ ​ 1,070 ​ 2024 ​ ​ 939 ​ 2025 ​ ​ 707 ​ 2026 ​ ​ 699 ​ Thereafter ​ ​ 625 ​ Total future minimum lease payments ​ ​ 4,369 ​ Less imputed interest ​ ​ (190) ​ Present value of lease liabilities ​ $ 4,179 ​ ​ Supplemental cash flow information pertaining to the Company’s leasing activity for the nine months ended September 30, 2022 and 2021 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2022 ​ 2021 Cash payments for operating lease liabilities ​ $ 1,065 ​ $ 1,059 Right-of-use assets obtained in exchange for operating lease obligations ​ $ 1,767 ​ $ 1,545 ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Taxes
Income Taxes	9. Income Taxes ​ The Company has estimated that its effective income tax rate for 2022 will be 19.7% . 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	9 Months Ended
	Sep. 30, 2022
Dividends
Dividends	​ 10. Dividends ​ On September 16, 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 August 26, 2022. On June 17, 2022, the Company paid 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 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 February 25, 2022. ​

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2022
Subsequent Event.
Subsequent Event	11. Subsequent Event ​ On October 26, 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 December 16, 2022 , to shareholders of record at the close of business on November 25, 2022 .

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 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 nine-month periods ended September 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)	9 Months Ended
	Sep. 30, 2022
Reportable Segment
Schedule of operating results and certain other financial data for the business segment)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ Revenues ​ 2022 ​ 2021 ​ 2022 ​ 2021 ​ Lime and limestone operations ​ $ 65,699 ​ $ 51,749 ​ $ 175,608 ​ $ 141,847 ​ Other ​ 758 ​ 562 ​ 2,250 ​ 1,300 ​ Total revenues ​ $ 66,457 ​ $ 52,311 ​ $ 177,858 ​ $ 143,147 ​ Depreciation, depletion and amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 5,513 ​ $ 4,844 ​ $ 15,882 ​ $ 15,002 ​ Other ​ 133 ​ 145 ​ 420 ​ 430 ​ Total depreciation, depletion and amortization ​ $ 5,646 ​ $ 4,989 ​ $ 16,302 ​ $ 15,432 ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 22,166 ​ $ 17,128 ​ $ 52,338 ​ $ 45,634 ​ Other ​ 424 ​ 213 ​ 1,200 ​ 307 ​ Total gross profit ​ $ 22,590 ​ $ 17,341 ​ $ 53,538 ​ $ 45,941 ​ Operating profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 18,626 ​ $ 13,983 ​ $ 41,321 ​ $ 36,465 ​ Other ​ ​ 421 ​ 213 ​ 1,191 ​ 307 ​ Total operating profit ​ $ 19,047 ​ $ 14,196 ​ $ 42,512 ​ $ 36,772 ​ Identifiable assets, at period end ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 228,797 ​ $ 204,841 ​ $ 228,797 ​ $ 204,841 ​ Other ​ 127,083 ​ 106,067 ​ ​ 127,083 ​ ​ 106,067 ​ Total identifiable assets ​ $ 355,880 ​ $ 310,908 ​ $ 355,880 ​ $ 310,908 ​ Capital expenditures ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 6,635 ​ $ 5,955 ​ $ 18,120 ​ $ 23,731 ​ Other ​ — ​ — ​ — ​ — ​ Total capital expenditures ​ $ 6,635 ​ $ 5,955 ​ $ 18,120 ​ $ 23,731 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income and Dividends Per Shar_2

Income and Dividends Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 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 September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2021 2022 2021 Net income for basic and diluted income per common share ​ $ 15,726 ​ $ 11,308 ​ $ 34,632 ​ $ 29,432 ​ Weighted-average shares for basic income per common share ​ 5,674 ​ 5,658 ​ 5,671 ​ 5,656 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee and director stock options (1) ​ 6 ​ 13 ​ 8 ​ 12 ​ Adjusted weighted-average shares and assumed exercises for diluted income per common share ​ 5,680 ​ 5,671 ​ 5,679 ​ 5,668 ​ Basic net income per common share ​ $ 2.77 ​ $ 2.00 ​ $ 6.11 ​ $ 5.20 ​ Diluted net income per common share ​ $ 2.77 ​ $ 1.99 ​ $ 6.10 ​ $ 5.19 ​ (1) Excludes 20 and 16 stock options for the three- and nine-month periods ended September 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 nine-month periods ended September 30, 2021 as anti-dilutive.

Inventories, Net (Tables)

Inventories, Net (Tables)	9 Months Ended
	Sep. 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ ​ 2022 ​ 2021 Lime and limestone inventories: ​ ​ ​ Raw materials ​ $ 4,361 ​ $ 3,232 ​ Finished goods ​ 2,391 ​ 2,677 ​ ​ ​ ​ 6,752 ​ ​ 5,909 ​ Service parts inventories ​ 10,900 ​ 9,207 ​ ​ ​ $ 17,652 ​ $ 15,116 ​

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases
Schedule of lease costs	​ The components of lease costs for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ Classification 2022 2021 2022 2021 Operating lease costs (1) ​ Cost of revenues ​ $ 606 ​ $ 444 ​ $ 1,746 ​ $ 1,279 Operating lease costs (1) ​ Selling, general and administrative expenses ​ ​ 70 ​ ​ 64 ​ 210 ​ 196 Rental revenues ​ Interest and other income, net ​ ​ (10) ​ ​ (28) ​ (52) ​ (69) Net operating lease costs ​ ​ ​ $ 666 ​ $ 480 ​ $ 1,904 ​ $ 1,406 (1) Includes the costs of leases with a term of 12 months or less. ​
Schedule of maturity of lease liability	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 (excluding the nine months ended September 30, 2022) ​ $ 329 ​ 2023 ​ ​ 1,070 ​ 2024 ​ ​ 939 ​ 2025 ​ ​ 707 ​ 2026 ​ ​ 699 ​ Thereafter ​ ​ 625 ​ Total future minimum lease payments ​ ​ 4,369 ​ Less imputed interest ​ ​ (190) ​ Present value of lease liabilities ​ $ 4,179 ​
Schedule of supplemental cash flow information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2022 ​ 2021 Cash payments for operating lease liabilities ​ $ 1,065 ​ $ 1,059 Right-of-use assets obtained in exchange for operating lease obligations ​ $ 1,767 ​ $ 1,545

Organization (Details)

Organization (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Feb. 09, 2022	Sep. 30, 2022	Sep. 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		$ 1,300	$ 3,100

Accounting Policies - Revenue R

Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue Recognition
External freight billed to customers included in revenue	$ 12.3	$ 9.5	$ 34	$ 26

Reportable Segment (Details)

Reportable Segment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Business segments
Number of business segments | segment			1
Revenues	$ 66,457	$ 52,311	$ 177,858	$ 143,147
Depreciation, depletion and amortization	5,646	4,989	16,302	15,432
Gross profit	22,590	17,341	53,538	45,941
Operating profit	19,047	14,196	42,512	36,772
Identifiable assets, at period end	355,880	310,908	355,880	310,908	$ 316,196
Capital expenditures	6,635	5,955	18,120	23,731
Lime and Limestone Operations Segment Member
Business segments
Depreciation, depletion and amortization	5,513	4,844	15,882	15,002
Gross profit	22,166	17,128	52,338	45,634
Operating profit	18,626	13,983	41,321	36,465
Identifiable assets, at period end	228,797	204,841	228,797	204,841
Capital expenditures	6,635	5,955	18,120	23,731
Other
Business segments
Depreciation, depletion and amortization	133	145	420	430
Gross profit	424	213	1,200	307
Operating profit	421	213	1,191	307
Unallocated corporate assets and cash items
Business segments
Identifiable assets, at period end	127,083	106,067	127,083	106,067
Lime and limestone operations | Lime and Limestone Operations Segment Member
Business segments
Revenues	65,699	51,749	175,608	141,847
Others | Other
Business segments
Revenues	$ 758	$ 562	$ 2,250	$ 1,300

Income and Dividends Per Shar_3

Income and Dividends Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Anti-dilutive securities
Common stock, authorized shares	30,000,000						30,000,000
Common stock, shares outstanding	5,673,574						5,673,574
Income per share of common stock:
Net income for basic and diluted income per common share	$ 15,726	$ 10,238	$ 8,668	$ 11,308	$ 11,093	$ 7,031	$ 34,632	$ 29,432
Weighted-average shares for basic income per common share (in shares)	5,674,000			5,658,000			5,671,000	5,656,000
Effect of dilutive securities:
Employee and director stock options (in shares)	6,000			13,000			8,000	12,000
Adjusted weighted-average shares and assumed exercises for diluted income per common share (in shares)	5,680,000			5,671,000			5,679,000	5,668,000
Basic net income per common share (in dollars per share)	$ 2.77			$ 2			$ 6.11	$ 5.20
Diluted net income per common share (in dollars per share)	2.77			1.99			6.10	5.19
Cash dividends per share of common stock (in dollars per share)	$ 0.20			$ 0.16			$ 0.60	$ 0.48
Options
Anti-dilutive securities
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities	20,000			0			16,000	0

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Lime and limestone inventories:
Raw materials	$ 4,361	$ 3,232
Finished goods	2,391	2,677
Total	6,752	5,909
Service parts inventories	10,900	9,207
Total inventories	$ 17,652	$ 15,116

Banking Facilities and Debt (De

Banking Facilities and Debt (Details) $ in Millions		9 Months Ended
	May 07, 2015 USD ($)	Sep. 30, 2022 USD ($)	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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 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	$ 666	$ 480	$ 1,904	$ 1,406
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	$ 606	444	$ 1,746	1,279
Selling, general and administrative expense.
Lease cost
Operating lease cost	70	64	210	196
Interest and other income, net
Lease cost
Rental revenues	$ (10)	$ (28)	$ (52)	$ (69)

Leases - Maturity (Details)

Leases - Maturity (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Maturity
2022 (excluding the nine months ended September 30, 2022)	$ 329
2023	1,070
2024	939
2025	707
2026	699
Thereafter	625
Total future minimum lease payments	4,369
Less imputed interest	(190)
Present value of lease liabilities	$ 4,179

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases
Cash payments for operating lease liabilities	$ 1,065	$ 1,059
Right-of-use assets obtained in exchange for operating lease obligations	$ 1,767	$ 1,545

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Sep. 30, 2022
Income Taxes
Effective income tax rate (as a percent)	19.70%

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands				9 Months Ended
	Sep. 16, 2022	Jun. 17, 2022	Mar. 18, 2022	Sep. 30, 2022	Sep. 30, 2021
Dividends
Cash dividends paid	$ 1,100	$ 1,100	$ 1,100	$ 3,402	$ 2,715
Cash dividend (in dollars per share)	$ 0.20	$ 0.20	$ 0.20

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands					9 Months Ended
	Oct. 26, 2022	Sep. 16, 2022	Jun. 17, 2022	Mar. 18, 2022	Sep. 30, 2022
Subsequent event
Cash paid for acquisition					$ 5,630
Quarterly cash dividend declared (in dollars per share)		$ 0.20	$ 0.20	$ 0.20
Subsequent event
Subsequent event
Dividends payable date declared	Oct. 26, 2022
Quarterly cash dividend declared (in dollars per share)	$ 0.20
Dividends payable date to be paid	Dec. 16, 2022
Dividends payable date of record	Nov. 25, 2022