United States Lime & Minerals, Inc. (NASDAQ:USLM) is a leading manufacturer of lime and limestone products, serving a diverse range of industries including construction, industrial, metals, environmental, roof shingle, oil and gas, and agriculture. With a strong presence across the United States, the company has established itself as a reliable supplier of high-quality materials, consistently delivering impressive financial results.
Financials
In the latest fiscal year, USLM reported annual net income of $74,549,000 and annual revenue of $281,330,000, showcasing the company's ability to generate substantial profitability. The company's annual operating cash flow reached $92,259,000, while its annual free cash flow stood at $58,009,000, demonstrating its robust cash generation capabilities.
Looking at the company's recent quarterly performance, USLM continued to deliver strong results. In the first quarter of 2024, the company reported revenues of $71,687,000, a 7.4% increase compared to the same period in the prior year. This growth was driven by a 14.6% increase in the average selling prices of the company's lime and limestone products, partially offset by a 7.2% decrease in sales volumes, primarily due to decreased demand from construction customers, which was partially offset by increased demand from industrial customers.
Gross profit for the first quarter of 2024 was $30,607,000, a 27.6% increase compared to the first quarter of 2023. The improvement in gross profit was attributable to the increased revenues and a decrease in operating expenses, including lower natural gas fuel costs. USLM's operating profit for the first quarter of 2024 was $25,759,000, a 29.9% increase from the same period in the prior year.
The company's net income for the first quarter of 2024 was $22,439,000, or $3.92 per diluted share, compared to $17,104,000, or $3.00 per diluted share, in the first quarter of 2023, representing a 31.2% increase. This strong performance was driven by the company's ability to effectively manage its operations and capitalize on favorable market conditions.
Business Overview
USLM's diversified product portfolio and customer base have been instrumental in its success. The company's lime and limestone operations segment, which accounts for the majority of its revenues, has consistently performed well, with the first quarter of 2024 seeing a 7.4% increase in revenues compared to the same period in the prior year. This growth was primarily driven by the increase in average selling prices, which offset the decrease in sales volumes.
The company's other operations, which include natural gas interests, contributed $217,000 in revenues during the first quarter of 2024, compared to $239,000 in the first quarter of 2023. While not a significant contributor to the overall business, these operations provide additional diversification and income streams for USLM.
Geographically, USLM operates lime and limestone plants and distribution facilities across several states, including Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas. This broad geographic footprint allows the company to serve a wide range of customers and mitigate regional market fluctuations.
Outlook
Looking ahead, USLM remains optimistic about its future prospects. The company's management has provided guidance, anticipating improved demand from its construction customers, which should help offset the decreased demand experienced in the first quarter of 2024. Additionally, the company's focus on operational efficiency and cost management is expected to continue supporting its profitability.
Liquidity
USLM's strong financial position and liquidity further bolster its growth potential. As of March 31, 2024, the company had no outstanding debt and $206,995,000 in cash and cash equivalents, providing ample resources to fund its operations, capital expenditures, and potential future acquisitions or expansion projects.
The company's commitment to shareholder returns is also noteworthy. USLM has a history of paying regular quarterly cash dividends, and in the first quarter of 2024, the company paid a dividend of $0.25 per share. The company's Board of Directors has also declared a regular quarterly cash dividend of $0.25 per share, payable on June 14, 2024, to shareholders of record as of May 24, 2024.
Conclusion
USLM's diversified business model, strong financial performance, and prudent capital allocation strategies have made it an attractive investment opportunity for investors seeking exposure to the lime and limestone industry. The company's consistent growth, robust cash generation, and shareholder-friendly policies position it well to navigate the evolving market landscape and capitalize on future opportunities.