United States Lime & Minerals(USLM) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for Q2 2024 reached $76,545,000, a 3.8% increase from $73,983,000 in Q2 2023[7] - Net income for Q2 2024 was $26,057,000, representing a 32.2% increase from $19,712,000 in Q2 2023[7] - Basic and diluted net income per share increased to $0.91 in Q2 2024, up from $0.69 in Q2 2023[7] - Net income for the six months ended June 30, 2024, was $48,496,000, an increase of 31.7% compared to $36,816,000 for the same period in 2023[12] - Total revenues for the six months ended June 30, 2024, were $148,232,000, up 5.5% from $140,760,000 in the prior year[23] - Gross profit from lime and limestone operations for the six months ended June 30, 2024, was $65,511,000, representing a 28.1% increase from $51,179,000 in 2023[23] - Operating profit for lime and limestone operations for the six months ended June 30, 2024, was $55,788,000, a 30.6% increase compared to $42,708,000 in the same period last year[23] - Gross profit for Q2 2024 was $34.8 million, up 28.3% from Q2 2023, and $65.4 million for the first six months, an increase of 28.0% year-over-year[44] - Net cash provided by operating activities increased by $8.1 million, or 20.1%, to $48.4 million in the first six months of 2024 compared to the same period in 2023[41] Assets and Liabilities - Total current assets increased to $299,551,000 as of June 30, 2024, compared to $254,969,000 at the end of 2023[5] - Total liabilities decreased to $43,066,000 as of June 30, 2024, down from $47,498,000 at the end of 2023[5] - Stockholders' equity rose to $441,089,000 as of June 30, 2024, compared to $393,104,000 at the end of 2023[5] - Cash and cash equivalents increased to $222,501,000 as of June 30, 2024, up from $187,964,000 at the end of 2023[5] - Cash and cash equivalents at the end of the period increased to $222,501,000 from $156,198,000, reflecting a 42.3% rise[12] - As of June 30, 2024, inventories totaled $27.3 million, up 12.2% from $24.3 million on December 31, 2023, with raw materials increasing by 11.3% and finished goods by 35.2%[27] - The identifiable assets at the end of the period totaled $484,155,000, up from $402,372,000 in the previous year[23] Capital Expenditures and Investments - Capital expenditures for lime and limestone operations in the six months ended June 30, 2024, were $11,220,000, down from $15,432,000 in the prior year[23] - Capital expenditures were $11.2 million in the first six months of 2024, down from $15.4 million in the same period of 2023[42] Shareholder Actions - The company approved an increase in authorized shares from 30,000,000 to 45,000,000 on May 2, 2024, followed by a 5-for-1 stock split on July 12, 2024[15] - The Company declared a regular quarterly cash dividend of $0.05 per share on July 31, 2024, payable on September 13, 2024[37] - The Company paid cash dividends of $0.05 and $0.10 per share for the three and six months ended June 30, 2024, compared to $0.04 and $0.08 per share for the same periods in 2023, reflecting a 25% increase in the six-month dividend[26] Management and Compensation - Timothy W. Byrne's employment term extended by four years to December 31, 2028, with annual renewals unless one year notice is given[49] - Byrne's minimum annual base salary increased to $555,000 for 2024[49] - Annual cash bonus opportunities tied to EBITDA performance will be adjusted to reflect recent increases in both Company EBITDA and Byrne's salary[49] - Byrne's equity awards reduced from 37,500 stock options to none, and restricted stock granted reduced from 62,500 to 47,500 shares[49] - The one-year vesting period for restricted stock grants remains unchanged, with immediate vesting for the final year's grant upon termination of employment[49] - The 2024 Amendments to the Agreement effective August 1, 2024, include updates to the Company's compensation recovery policy[49] Operational Insights - The Company is focused on expanding its lime and limestone operations through projects and acquisitions, contingent on obtaining necessary financing and integrating new operations[39] - The Company anticipates that its plans and strategies may be affected by various risks, including market conditions and regulatory changes, which could impact future performance[39] Debt and Credit Facilities - The company has no debt outstanding and no draws on the revolving credit facility, with $0.5 million in letters of credit as of June 30, 2024[42] - The Company has a $75 million revolving credit facility with Wells Fargo Bank, with an additional accordion feature allowing for up to $50 million in incremental borrowing, maturing on August 3, 2028[28] Tax and Lease Obligations - The effective income tax rate for 2024 is estimated at 20.5%, primarily due to statutory depletion differences[35] - Future minimum lease payments total $5.153 million, with the present value of lease liabilities at $4.849 million as of June 30, 2024[33] - Cash payments for lease liabilities included in operating cash flows were $931,000 for the six months ended June 30, 2024, compared to $812,000 for the same period in 2023, indicating a 14.7% increase[34]