United States Lime & Minerals (USLM) Q3 2024 earnings summary

Executive summary

• Revenues increased 19.4% in Q3 2024 to $89.4 million, driven by higher selling prices and sales volumes, especially from construction and roof shingle customers.

• Gross profit rose 53.1% in Q3 2024 to $43.1 million, aided by higher revenues and lower operating expenses, including reduced natural gas prices.

• Net income was $33.4 million ($1.16 per diluted share) in Q3 2024, up 60.9% year-over-year; nine-month net income was $81.8 million ($2.85 per diluted share), up 42.2%.

• Construction demand improved in Q3 2024 as weather normalized, offsetting earlier declines.

• A 5-for-1 stock split was effected in July 2024, increasing authorized shares to 45 million.

Financial highlights

• Q3 2024 revenues: $89.4 million (vs. $74.9 million Q3 2023); nine months: $237.7 million (vs. $215.6 million 2023).

• Q3 2024 gross profit: $43.1 million (vs. $28.2 million Q3 2023); nine months: $108.5 million (vs. $79.3 million 2023).

• Q3 2024 operating profit: $38.1 million (vs. $23.8 million Q3 2023); nine months: $93.8 million (vs. $66.5 million 2023).

• Cash and cash equivalents at September 30, 2024: $255.0 million, up from $188.0 million at December 31, 2023.

• Cash dividends per share increased to $0.05 in Q3 2024 from $0.04 in Q3 2023.

Outlook and guidance

• Management expects cash on hand and operating cash flows to be sufficient for operating, capital, and liquidity needs, including ongoing and future projects and regular dividends.

• Construction demand improved in Q3 2024 as weather normalized, but overall construction demand for the nine months was down year-over-year.

• A new vertical kiln at the Texas Lime Company facility is planned, with estimated construction costs of $65 million to be funded from cash and operations.

• Forward-looking statements caution about risks and uncertainties that could impact future results.