Revenue Performance - Revenues from Lime and Limestone Operations decreased by 0.5% in 2018 compared to 2017, primarily due to a 1.8% decrease in sales volumes [145]. - Revenues from Natural Gas Interests increased by 12.6% in 2018 compared to 2017, driven by a 25.6% increase in average prices for natural gas and natural gas liquids [147]. - Revenues for 2018 decreased to $144.4 million from $144.8 million in 2017, a decrease of $0.4 million, or 0.3% [187]. - Revenues from Lime and Limestone Operations in 2018 decreased $0.7 million, or 0.5%, to $141.9 million, primarily due to decreased sales volumes [187]. - Revenues from Natural Gas Interests for 2018 increased $0.3 million, or 12.6%, to $2.5 million, due to higher average prices per MCF [188]. - Lime and limestone operations generated revenues of $141,922 in 2018, down from $142,612 in 2017, while natural gas interests increased to $2,513 from $2,232 [306]. Profitability - Gross profit decreased by 11.3% in 2018 compared to 2017, with Lime and Limestone Operations gross profit down 12.4% due to increased quarrying and transportation costs [148]. - Gross profit decreased to $30.5 million for 2018 from $34.4 million for 2017, a decrease of $3.9 million, or 11.3% [189]. - Operating profit for 2018 was $20.0 million, a decrease of 17.5% from $24.2 million in 2017 [242]. - Gross profit for the company in 2018 was $30,486, a decrease of 11.0% compared to $34,380 in 2017 [306]. Net Income - Net income decreased by $7.5 million, or 27.5%, in 2018 compared to 2017, primarily due to a prior year tax benefit and increased operational costs [151]. - Net income decreased to $19.7 million ($3.51 per share diluted) in 2018, compared to $27.1 million ($4.86 per share diluted) in 2017, a decrease of $7.5 million, or 27.5% [195]. - Net income for 2018 was $19,685,000, a decrease of 27.5% from $27,148,000 in 2017 [251]. - Basic net income per common share for 2018 was $3.52, down from $4.87 in 2017, while diluted net income per common share was $3.51 compared to $4.86 in 2017 [271]. Cash Flow and Investments - Net cash provided by operating activities was $38.7 million in 2018, a 13.0% increase from $34.3 million in 2017 [207]. - Net cash used in investing activities was $53.2 million in 2018, compared to $20.7 million in 2017, including $26.2 million for the St. Clair kiln project [208]. - Cash and cash equivalents decreased to $67.2 million at December 31, 2018, down from $85.0 million at December 31, 2017 [210]. - The company invested $53,762,000 in property, plant, and equipment in 2018, significantly higher than $21,337,000 in 2017, marking an increase of 152.5% [251]. Shareholder Returns - A share repurchase program was extended in November 2018, allowing for the repurchase of approximately $7.2 million of common stock through November 30, 2019 [154]. - A quarterly cash dividend of $0.135 was declared on January 31, 2019, payable on March 15, 2019 [155]. - The company paid cash dividends of $3,022,000 in 2018, slightly up from $3,013,000 in 2017 [251]. - The company declared a quarterly cash dividend of $0.135 per share on January 31, 2019, reflecting ongoing shareholder returns [319]. Operational Efficiency and Future Outlook - The company aims to maintain or increase lime and limestone prices to offset rising costs amid competitive pressures [166]. - Modernization and expansion projects are expected to enhance operational efficiency and lower production costs, positioning the company competitively [160]. - The company expects to spend approximately $12.0 million annually on Lime and Limestone Operations for capital and re-equipping projects [206]. - The new fuel-efficient kiln at St. Clair is expected to cost approximately $50 million, with $38.7 million already spent as of December 31, 2018 [153]. Tax and Liabilities - The effective income tax rate for 2018 was 8.7%, compared to a benefit of (8.8%) in 2017, reflecting a $4.1 million increase in income tax expense [194]. - The total income tax expense for 2018 was $1,883, representing 8.7% of pretax income, compared to a benefit of $(2,205) in 2017 and an expense of $5,864 in 2016 [287]. - The company’s total liabilities decreased to $21.7 million in 2018 from $23.2 million in 2017, a reduction of 6.4% [240]. Assets and Equity - Total assets increased to $244.7 million in 2018, up from $228.4 million in 2017 [240]. - Stockholders' equity rose to $223.0 million in 2018, compared to $205.3 million in 2017, reflecting a growth of 8.6% [240]. - The company reported identifiable assets of $244,671 at the end of 2018, up from $228,446 in 2017, reflecting growth in asset base [306].
United States Lime & Minerals(USLM) - 2018 Q4 - Annual Report