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United States Lime & Minerals Reports First Quarter 2009 Results

April 27, 2009

DALLAS, April 27 /PRNewswire-FirstCall/ — United States Lime & Minerals, Inc. (Nasdaq: USLM) today reported first quarter 2009 results: Revenues in the first quarter 2009 decreased to $28.3 million from $33.2 million in the prior year comparable quarter, a decrease of $4.9 million, or 14.8%. Revenues from the Company’s lime and limestone operations in the first quarter 2009 decreased $4.1 million, or 13.3%, to $26.5 million from $30.6 million in the comparable 2008 quarter, while revenues from the Company’s natural gas interests decreased $854 thousand, or 32.2%, to $1.8 million from $2.7 million in the comparable 2008 quarter. The decrease in lime and limestone revenues in the first quarter 2009 as compared to last year’s comparable quarter primarily resulted from significantly decreased sales volumes of the Company’s lime products due to reduced demand, principally from its steel, construction and other industrial customers due to the weakened economy, partially offset by average price increases of approximately 9.0%.

The Company reported net income of $2.7 million ($0.43 per share diluted) for the first quarter 2009, compared to net income of $2.8 million ($0.45 per share diluted) for the first quarter 2008, a decrease of $107 thousand, or 3.8%.

The Company’s gross profit for the first quarter 2009 was $6.2 million, compared to $6.8 million for the comparable 2008 quarter, a decrease of $538 thousand, or 8.0%. Included in gross profit for the 2009 quarter is $5.2 million from the Company’s lime and limestone operations, compared to $4.6 million in the 2008 quarter, an increase of $579 thousand, or 12.6%, and $1.1 million from the Company’s natural gas interests, compared to $2.2 million in the 2008 quarter, a decrease of $1.1 million, or 51.4%. Due to the weakened economy, the Company initiated steps to reduce its operating expenses in the fourth quarter 2008. The benefits of these reductions, along with the increase in average prices, are evidenced by improved gross profit and gross profit margin as a percentage of revenues from the Company’s lime and limestone operations in the first quarter 2009 as compared to last year’s quarter.

Production volumes for the Company’s natural gas interests for the first quarter 2009 totaled 364 thousand MCF, sold at an average price of $5.71 per MCF, from 30 wells. Production volumes in the comparable prior year quarter were 262 thousand MCF, sold at an average price of $10.15, from 22 wells.

Interest expense in the first quarter 2009 decreased to $750 thousand from $979 thousand in the first quarter 2008, a decrease of $229 thousand, or 23.4%, primarily due to decreased average outstanding debt, including $2.9 million of repayments in the first quarter 2009.

“We are pleased to have been able to continue to increase our lime prices and reduce our costs during the quarter, resulting in an improvement in gross profit margin for our lime and limestone operations,” said Timothy W. Byrne, President and Chief Executive Officer. “The economy remains a concern in 2009 as we continue to see reduced demand for our lime and limestone products by our steel, construction and other industrial customers, as well as significantly reduced revenue from our natural gas interests principally due to the drastic decline in natural gas prices,” Mr. Byrne cautioned. “Although we do not expect any increase in the short term, we believe that demand for our lime and limestone products used in highway construction and steel and other industrial production should increase in the future spurred by the government’s stimulus package and, hopefully, improved economic conditions.”

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 Company’s 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)

                                                  Three Months Ended March 31,
    INCOME STATEMENTS                                   2009        2008
    Revenues
      Lime and limestone operations                   $26,513     $30,581
      Natural gas interests                             1,800       2,654
        Total                                         $28,313     $33,235

    Gross profit                                       $6,227      $6,765
    Operating profit                                   $4,305      $4,848

    Interest expense                                      750         979
    Other income, net                                      (2)        (41)
    Income tax expense                                    821       1,067
    Net income                                         $2,736      $2,843

    Income per share of common stock:
      Basic                                             $0.43       $0.45
      Diluted                                           $0.43       $0.45

    Weighted average shares outstanding:
      Basic                                             6,329       6,295
      Diluted                                           6,371       6,351

                                                     March 31,  December 31,
                                                       2009        2008
    BALANCE SHEETS
    Assets:
      Current assets                                  $28,846     $28,961
      Property, plant and equipment, net              135,207     136,564
      Other assets, net                                   587         604
        Total assets                                 $164,640    $166,129
    Liabilities and Stockholders' Equity:
      Current liabilities                             $14,515      16,223
      Debt, excluding current installments             43,416      46,354
      Other liabilities                                 5,031       5,417
      Deferred tax liabilities, net                     4,138       3,688
      Stockholders' equity                             97,540      94,447
        Total liabilities and stockholders'
         equity                                      $164,640    $166,129

SOURCE United States Lime & Minerals, Inc.


Source: newswire



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