United States Lime & Minerals (USLM) Q2 2024 earnings summary

Executive summary

• Revenues increased 3.5% in Q2 2024 to $76.5 million, driven by higher average selling prices despite lower sales volumes from decreased construction demand and weather impacts.

• Gross profit rose 28.3% in Q2 and 28.0% for the first six months, reflecting improved pricing and product mix.

• Net income grew 32.2% year-over-year in Q2 to $26.1 million ($0.91 per diluted share, adjusted for stock split) and 31.7% for the first six months to $48.5 million ($1.69 per diluted share).

• Construction sector demand declined due to weather-related project delays, partially offset by stronger industrial and roof shingle demand.

• A 5-for-1 stock split was completed in July 2024, increasing authorized shares to 45 million and retroactively adjusting all share and per-share data.

Financial highlights

• Q2 2024 revenues: $76.5 million (up from $74.0 million in Q2 2023); six months: $148.2 million (up from $140.8 million).

• Q2 2024 gross profit: $34.8 million (up from $27.1 million); six months: $65.4 million (up from $51.1 million).

• Q2 2024 operating profit: $29.9 million (up from $22.8 million); six months: $55.7 million (up from $42.7 million).

• Cash and cash equivalents at June 30, 2024: $222.5 million, up from $188.0 million at year-end 2023.

• SG&A expenses increased 13.0% in Q2 2024 to $4.9 million, mainly due to higher personnel costs.

Outlook and guidance

• Management expects improved demand from construction customers as weather conditions normalize in the south-central U.S.

• Cash on hand and operating cash flow are expected to cover ongoing capital and liquidity needs, barring significant acquisitions.