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8-K - 8-K - UNITED STATES LIME & MINERALS INC | c95152e8vk.htm |
Exhibit 99.1
United States Lime & Minerals, Inc. News Release
FOR IMMEDIATE RELEASE | Contact: Timothy W. Byrne | |
(972) 991-8400 |
UNITED STATES LIME & MINERALS REPORTS
FOURTH QUARTER AND FULL-YEAR 2009 RESULTS
FOURTH QUARTER AND FULL-YEAR 2009 RESULTS
Dallas, Texas, January 28, 2010 United States Lime & Minerals, Inc. (NASDAQ:
USLM) today reported fourth quarter and full-year 2009 results: Revenues in the fourth
quarter 2009 decreased $743 thousand, or 2.6%, to $28.3 million from $29.0 million in
the comparable 2008 quarter. Revenues from the Companys lime and limestone operations
in the fourth quarter 2009 increased $821 thousand, or 3.2%, to $26.4 million from
$25.6 million in the comparable 2008 quarter, while revenues from its natural gas
interests decreased $1.6 million, or 45.3%, to $1.9 million in the fourth quarter 2009
from $3.5 million in the comparable 2008 quarter. For full-year 2009, revenues
decreased to $117.3 million from $142.4 million in 2008, a decrease of $25.0 million,
or 17.6%. Revenues from the Companys lime and limestone operations in 2009 decreased
$15.8 million, or 12.5%, to $110.4 million from $126.2 million in 2008, while revenues
from the Companys natural gas interests in 2009 decreased $9.3 million, or 57.2%, to
$6.9 million from $16.2 million in 2008.
The fourth quarter 2009 increase in lime and limestone revenues compared to last
years comparable quarter was primarily due to increased steel demand and price
increases for the Companys lime and limestone products, largely offset by continuing
declines in construction demand. The full-year 2009 decrease in lime and limestone
revenues compared to 2008 was driven primarily by decreased lime sales volumes,
partially offset by price increases for the Companys lime and limestone products.
Steel production, which declined drastically in the fourth quarter 2008, improved
somewhat during 2009. However, construction demand declined further throughout 2009.
Production volumes from the Companys natural gas interests for the fourth quarter
2009 totaled approximately 255 thousand MCF, sold at an average price of approximately
$7.39 per MCF, compared to approximately 451 thousand MCF, sold at an average price of
approximately $7.64 per MCF, in the comparable 2008 quarter. Production volumes for
full-year 2009 from natural gas interests totaled approximately 1.2 BCF, sold at an
average price of approximately $5.74 per MCF, compared to full-year 2008 when
approximately 1.5 BCF was produced and sold at an average price of approximately $10.66
per MCF. The number of producing wells was 30 in both 2009 and 2008. Six new wells
were drilled during the fourth quarter 2009, and two additional new wells are scheduled
to be drilled during the first half 2010. None of these wells is scheduled to be
completed as producing wells until late 2010.
The Company reported net income of $3.0 million ($0.47 per share diluted) in the
fourth quarter 2009, compared to net income of $1.1 million ($0.17 per share diluted)
in the fourth quarter 2008, an increase of $2.0 million, or 186.6%. For full-year
2009, the Companys net income decreased by $763 thousand, or 5.3%, to $13.7 million
($2.14 per share diluted), compared to net income of $14.4 million ($2.27 per share
diluted) in 2008.
The Companys gross profit was $7.1 million in the fourth quarter 2009, compared
to $4.4 million in the comparable 2008 quarter, an increase of $2.7 million, or 60.3%.
For full-year 2009, gross profit was $28.8 million, compared to $31.3 million in 2008,
a decrease of $2.5 million, or 8.1%. Included in gross profit in the fourth quarter
and full-year 2009 were $5.7 million and $24.3 million, respectively, from the
Companys lime and limestone operations, compared to $1.8 million and $18.2 million,
respectively, in the comparable 2008 periods. The improvements in gross profit and
gross profit margins for the Companys lime and limestone operations in the 2009
periods compared to the comparable 2008 periods were due to price increases for the
Companys lime and limestone products, reduced operating costs and improved
efficiencies in 2009, partially offset by continuing reduced demand for the Companys
lime products. Gross profit from the Companys natural gas interests declined to $1.3
million and $4.4 million for the fourth quarter and full-year 2009, respectively, from
$2.6 million and $13.1 million, respectively, in the comparable 2008 periods, primarily
due to the decline in natural gas prices and lower production volumes. The
improvements in the Companys lime and limestone operations in 2009 resulted in increased overall gross
profit margins for the Company in the current year periods compared to the prior year
periods.
Interest expense in the fourth quarter 2009 decreased to $698 thousand from $762
thousand in the fourth quarter 2008, a decrease of $64 thousand, or 8.4%. Interest
expense for full-year 2009 decreased to $2.9 million from $3.5 million in 2008, a
decrease of $600 thousand, or 17.2%. The decrease in interest expense in the 2009
periods primarily resulted from decreased average outstanding debt, resulting from the
repayment during 2009 of approximately $9.7 million of debt that was outstanding at
December 31, 2008.
During the fourth quarter 2009, steel demand for our lime products increased
compared to the extremely low demand in last years quarter, but construction and
overall demand continue to be depressed. Despite the reduced sales volumes, we are
pleased to see that our price increases in 2009 and our ongoing efforts to reduce costs
resulted in substantial improvements in gross profit and gross profit margins for our
lime and limestone operations during 2009, said Timothy W. Byrne, President and Chief
Executive Officer. Our balance sheet remains strong, as cash flows from operations
during 2009 allowed us to reduce our bank debt by 19% and increase our cash balances by
more than $15 million, Mr. Byrne added. During this period of reduced demand for our
lime products, we continue to strive to control our costs, introduce additional
efficiencies and strengthen our balance sheet, Mr. Byrne concluded.
United States Lime & Minerals, Inc., a NASDAQ-listed public company with
headquarters in Dallas, Texas, is a manufacturer of lime and limestone products,
supplying primarily the construction, steel, municipal sanitation and water treatment,
aluminum, paper, glass, roof shingle and agriculture industries. The Company primarily
serves markets in the Central United States through its wholly owned subsidiaries,
Arkansas Lime Company, Colorado Lime Company, Texas Lime Company, U.S. Lime Company,
U.S. Lime Company Shreveport, U.S. Lime Company St. Clair and U.S. Lime Company
Transportation. The Company also owns royalty and working interests pursuant to an
oil and gas lease and a drillsite agreement on its Johnson County, Texas property,
located in the Barnett Shale Formation.
Any statements contained in this news release that are not statements of
historical fact are forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, and investors are cautioned that such
statements involve risks and uncertainties that could cause actual results to differ
materially from expectations, including without limitation those risks and
uncertainties indicated from time to time in the Companys filings with the Securities
and Exchange Commission.
(Tables Follow)
United States Lime & Minerals, Inc.
Condensed Consolidated Financial Data
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Financial Data
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
INCOME STATEMENTS | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Revenues |
||||||||||||||||
Lime and limestone operations |
$ | 26,383 | $ | 25,562 | $ | 110,406 | $ | 126,165 | ||||||||
Natural gas interests |
1,886 | 3,450 | 6,925 | 16,191 | ||||||||||||
Total |
$ | 28,269 | $ | 29,012 | $ | 117,331 | $ | 142,356 | ||||||||
Gross profit |
||||||||||||||||
Lime and limestone operations |
$ | 5,742 | $ | 1,841 | $ | 24,344 | $ | 18,178 | ||||||||
Natural gas interests |
1,337 | 2,576 | 4,409 | 13,105 | ||||||||||||
Total |
$ | 7,079 | $ | 4,417 | $ | 28,753 | $ | 31,283 | ||||||||
Operating profit |
$ | 5,144 | $ | 2,395 | $ | 20,955 | $ | 23,317 | ||||||||
Interest expense |
698 | 762 | 2,886 | 3,486 | ||||||||||||
Other expense (income), net |
82 | 343 | (75 | ) | 420 | |||||||||||
Income tax expense |
1,332 | 232 | 4,474 | 4,978 | ||||||||||||
Net income |
$ | 3,032 | $ | 1,058 | $ | 13,670 | $ | 14,433 | ||||||||
Income per share of common stock: |
||||||||||||||||
Basic |
$ | 0.47 | $ | 0.17 | $ | 2.14 | $ | 2.29 | ||||||||
Diluted |
$ | 0.47 | $ | 0.17 | $ | 2.14 | $ | 2.27 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
6,386 | 6,321 | 6,378 | 6,305 | ||||||||||||
Diluted |
6,401 | 6,364 | 6,398 | 6,363 |
December 31, | December 31, | |||||||
BALANCE SHEETS | 2009 | 2008 | ||||||
Assets: |
||||||||
Current assets |
$ | 40,760 | $ | 28,961 | ||||
Property, plant and equipment, net |
130,900 | 136,564 | ||||||
Other assets, net |
410 | 604 | ||||||
Total assets |
$ | 172,070 | $ | 166,129 | ||||
Liabilities and Stockholders Equity: |
||||||||
Current liabilities |
$ | 16,150 | $ | 16,223 | ||||
Debt, excluding current installments |
36,666 | 46,354 | ||||||
Deferred tax liabilities, net |
6,026 | 3,688 | ||||||
Other liabilities |
3,247 | 5,417 | ||||||
Stockholders equity |
109,981 | 94,447 | ||||||
Total liabilities and stockholders equity |
$ | 172,070 | $ | 166,129 | ||||
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