United States Lime & Minerals(USLM) - 2019 Q1 - Quarterly Report

Revenue Performance - Revenues from Lime and Limestone Operations increased by 7.9% in Q1 2019, reaching $37.5 million compared to $34.7 million in Q1 2018, driven by a 6.1% increase in sales volume [48][64]. - Revenues from Natural Gas Interests decreased by 41.7% in Q1 2019, totaling $334 thousand, primarily due to lower prices and decreased production volumes [50][64]. - Production volumes from Natural Gas Interests in Q1 2019 were 118 thousand MCF, sold at an average price of $2.84 per MCF, down from 130 thousand MCF at $4.41 per MCF in Q1 2018 [65]. Profitability - Gross profit from Lime and Limestone Operations rose by 27.9% in Q1 2019, attributed to the increased revenues [49]. - Gross profit for the first quarter 2019 was $8.7 million, an increase of $1.7 million or 23.5% compared to $7.0 million in the first quarter 2018 [66]. - Gross profit from Lime and Limestone Operations increased to $8.7 million, up $1.9 million or 27.9% from $6.8 million in the first quarter 2018, with a gross profit margin rising to 23.2% from 19.6% [66]. - Gross profit from Natural Gas Interests decreased to $7 thousand in the first quarter 2019 from $244 thousand in the first quarter 2018, a decrease of $237 thousand [67]. - Net income for the first quarter 2019 was $5.1 million ($0.91 per share diluted), an increase of $0.9 million or 20.3% from $4.3 million ($0.76 per share diluted) in the first quarter 2018 [70]. Expenses and Taxation - Selling, general and administrative expenses (SG&A) were $2.7 million in the first quarter 2019, compared to $2.5 million in the first quarter 2018, maintaining SG&A at 7.1% of revenues for both periods [67]. - Income tax expense increased to $1.3 million in the first quarter 2019, up $0.8 million or 134.0% from $0.6 million in the first quarter 2018, due to increased income [69]. Cash Flow and Debt - Net cash provided by operating activities increased by 14.6% to $7.5 million in Q1 2019, compared to $6.5 million in Q1 2018 [54]. - As of March 31, 2019, the company had no debt outstanding and $1.2 million in letters of credit related to the St. Clair kiln project [63]. - The company had no outstanding debt during the first quarters of 2019 and 2018, with interest expense remaining at $0.1 million [68]. - The company has a $75 million revolving credit facility and an additional $50 million accordion feature, with interest rates based on LIBOR or the Lender's Prime Rate [58][59]. - The company anticipates that cash on hand and cash flows from operations will be sufficient to meet ongoing capital needs and allow for share repurchases and dividend payments [63]. Project and Dividend Information - The St. Clair kiln project, part of a modernization and expansion initiative, is estimated to cost approximately $50 million, with $41.2 million incurred by the end of Q1 2019 [51][56]. - The company paid a regular quarterly cash dividend of $0.135 per share in Q1 2019, with a similar dividend declared for payment in June 2019 [53]. Other Income and Risks - Interest and other income, net increased by $0.1 million or 39.4% to $0.5 million in the first quarter 2019 from $0.4 million in the first quarter 2018 [68]. - The company is exposed to foreign exchange risk with future payments totaling €0.7 million, hedged at $0.8 million [72]. - The company has no outstanding balance on the Revolving Facility subject to interest rate risk as of March 31, 2019 [71].