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[UNITED STATES LIME & MINERALS LOGO]
UNITED STATES LIME & MINERALS, INC.
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Timothy W. Byrne
(972) 991-8400
UNITED STATES LIME & MINERALS, INC. REPORTS
2000 FOURTH QUARTER AND FULL YEAR RESULTS
Dallas, Texas, January 31, 2001 - United States Lime & Minerals, Inc.
(NASDAQ: USLM) today reported a net loss of $995,000, or $0.25 per common share,
for the fourth quarter of 2000. This compares to net income of $518,000, or
$0.13 per common share, for the fourth quarter Of 1999. Revenues for the fourth
quarter of 2000 decreased by 9.7% to $6,976,000 compared to revenues of
$7,725,000 for the fourth quarter of 1999.
"We are very disappointed by our performance and financial results for the
fourth quarter," said Timothy W. Byrne, President and CEO. "Several factors,
including delays in the completion of the new kiln for our Arkansas plant, which
resulted in lost production opportunity costs, and higher than anticipated
start-up costs, had a significant negative impact on fourth quarter results. We
continued to suffer setbacks due to bad weather during the fourth quarter, which
impeded both demand for our products and our production ability. Also, the
fourth quarter was negatively impacted by approximately $100,000 resulting from
the one-time write off of the old vertical kilns at our Arkansas plant," added
Mr. Byrne.
For the full year 2000, the Company reported a net loss of $291,000, or
$0.07 per common share, compared to net income of $2,533,000, or $0.64 per
common share, for the full year 1999. Revenues for the full year 2000 increased
by 2.9% to $32,456,000 compared to revenues of $31,537,000 for the full year
1999.
"The operating results for the year are obviously disappointing. Our focus
for 2001 is to return the Company to profitability and realize a return on the
large capital investments we have made to modernize and increase production
capacity at our plants," said Mr. Byrne. "We have completed a comprehensive
review of the Company's current operating and financial positions and are
outlining a detailed action plan to position the Company for long-term
sustainable growth and profitability. As a part of that plan, we have made an
aggressive effort to increase sales of pulverized limestone products by our
Texas Lime subsidiary. This effort has already resulted in additional
commitments from new customers. We have also been successful in securing new
customers to purchase the high-quality lime now being produced by our Arkansas
Lime subsidiary. Once they confirm that our lime meets their quality standards,
we hope to secure them as long-term customers. In addition to these sales
efforts, we are continuing to explore and take steps to reduce costs and improve
efficiencies. For example, we have substantially curtailed our reliance on
natural gas, which continues to be an expensive fuel, for lime production at
Texas Lime. With our new kiln at Arkansas, we can use coal, coke or gas to fuel
lime production. In addition, we are implementing other initiatives, including
reductions in workforce," stated Mr. Byrne.
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EBITDA (earnings before interest, taxes, depreciation and amortization)
was $747,000 in the fourth quarter of 2000, a decrease of 72.3% from the
$2,696,000 generated in the fourth quarter of 1999. For the full year 2000,
EBITDA was $7,826,000, a decrease of 25.7% from the $10,535,000 generated for
the full year 1999.
The Company estimates that total capital expenditures for Phase I of
the Arkansas project will be approximately $34 million. The current estimate of
$34 million includes approximately $1.8 million of costs associated with the
pre-building of certain facilities for Phase II of the Arkansas project and the
purchase of, but not all of the improvements to, the terminal in Shreveport,
Louisiana. This estimate is subject to final completion of some of the
material-handling infrastructure in Phase I, as well as a satisfactory
resolution of various outstanding matters with vendors and contractors.
The Company is proceeding with its $10 million pro-rata rights offering
to existing shareholders, which will conclude on February 5, 2001. The shares
offered in the rights offering are priced at $5.50 per share. The Company's
majority shareholder, Inberdon Enterprises Ltd., has indicated that it will
subscribe for its full pro-rata amount, and that it will purchase additional
shares not subscribed for by other shareholders in the rights offering, for a
total investment of at least $8 million and up to $10 million. The net proceeds
of the offering will be used to repay a $5 million short-term bridge loan that
the Company secured, under normal commercial terms, from Inberdon, to repay all
or a portion of the Company's $4 million revolving credit facility, and for
working capital. To the extent the Company repays its revolving credit facility,
it will have access to funds available under the facility. Accordingly, the
Company believes that the proceeds of the rights offering will allow it to meet
immediate liquidity demands and to pay for all necessary work on Phase I of the
Arkansas project, which the Company estimates will be completed in the first
quarter of 2001. Even if the Company raises $10 million in the rights offering,
it may, however, need to seek additional sources of financing or explore other
means to maximize shareholder value unless it can begin to improve its operating
results in the short term.
United States Lime and Minerals, Inc. is a Nasdaq-listed public company
with headquarters in Dallas, Texas, supplying lime and limestone products
primarily to the steel, paper, agriculture, environmental protection, and
construction industries from its plants situated in Texas, Arkansas, and
Colorado.
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release, including without limitation, statements
relating to the Company's plans, strategies, objectives, expectations,
intentions, and adequacy of resources, may be identified by words such as
"will," "could," "should," "believe," "expect," "intend," "plan," "schedule,"
"estimate," "project," and similar expressions. The Company undertakes no
obligation to publicly update or revise any forward-looking statements. These
statements are based on management's current expectations and are subject to
uncertainty and change. Several factors and uncertainties, known and unknown,
could cause actual results to differ materially from those expected or
anticipated as stated or implied herein. Those factors include inclement
weather, increased fuel costs, additional unanticipated delays or costs overruns
in completion of current construction projects, a shortfall from the maximum
proceeds expected from the Company's rights offering, and management's
achievement of stated business goals, including the successful management of the
Company's short-term and long-term liquidity position and ability to develop and
execute plans to reduce costs and increase efficiencies and revenues. More
detailed information about these factors and the Company is contained in the
Company's filings with the Securities and Exchange Commission.
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES FOR
SALE. ANY OFFERS MAY BE MADE ONLY BY THE STATUTORY PROSPECTUS.
(Tables follow)
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UNITED STATES LIME & MINERALS, INC.
CONDENSED CONSOLIDATED FINANCIAL DATA
(In thousands, except per share amounts)
(Unaudited)
QUARTER ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
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INCOME STATEMENTS 2000 1999 2000 1999
------- ------ ------- -------
Revenues $ 6,976 7,725 32,456 31,537
------- ------ ------- -------
Operating profit/(loss) (586) 1,203 2,241 5,333
Interest expense 632 831 3,174 2,561
Other deductions/(income) 97 (317) (557) (604)
Income tax expense/(benefit) (320) 172 (85) 844
------- ------ ------- -------
Net income/(loss) $ (995) 518 (291) 2,533
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Net income (loss) per share of common stock:
Basic $ (0.25) $ 0.13 $ (0.07) $ 0.64
Diluted $ (0.25) $ 0.13 $ (0.07) $ 0.64
Weighted average shares outstanding:
Basic 3,982 3,982 3,982 3,980
Diluted 3,982 3,982 3,982 3,980
AT DECEMBER 31,
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BALANCE SHEETS 2000 1999
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ASSETS:
Current assets $ 13,668 26,616
Property, plant and equipment, net 75,667 47,130
Deferred tax asset, net 2,358 2,136
Other assets 2,270 1,806
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Total assets $ 93,963 77,688
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 21,418 6,033
Long-term debt, excluding current installments 44,167 42,500
Other liabilities 270 358
Stockholders' equity 28,108 28,797
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Total liabilities and stockholders' equity $ 93,963 77,688
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