United States Lime & Minerals(US:USLM)2023-02-23 21:01Revenue and Profit Growth - Lime and limestone revenues increased by 24.6% in 2022, reaching $233.4 million compared to $187.4 million in 2021[138]. - Total revenues for 2022 were $236.2 million, a 24.8% increase from $189.3 million in 2021[138]. - Gross profit rose by 18.7% in 2022, totaling $70.3 million, driven by increased revenues despite higher production costs[145]. - Net income increased by $8.4 million, or 22.6%, in 2022, resulting in a net income per diluted share of $8.00 compared to $6.54 in 2021[146]. - Revenues for 2022 increased to $236.2 million, up $46.9 million or 24.8% from 2021, driven by a 14.0% increase in sales volumes and a 10.6% average price increase for lime and limestone products[171]. - Gross profit for 2022 rose to $70.3 million, an increase of $11.1 million or 18.7% compared to 2021, primarily due to increased revenues, partially offset by higher production costs[172]. - Net income for 2022 was $45.4 million ($8.00 per share diluted), an increase of $8.4 million or 22.6% from 2021[176]. Capital Investments and Financial Position - The company made $32.4 million in capital investments in 2022, including the acquisition of Mill Creek for $5.6 million[147]. - Cash balances increased to $133.3 million as of December 31, 2022, up from $105.4 million in 2021, with no debt outstanding[147]. - The company expects to spend approximately $20.0 million annually over the next several years on capital and re-equipping projects to maintain efficiency and compliance with environmental laws[187]. - Net cash provided by operating activities increased to $64.4 million in 2022, up from $55.7 million in 2021, representing a 15.6% increase[188]. - Net cash used in investing activities was $31.2 million in 2022, including $5.6 million for the acquisition of Mill Creek and $3.5 million for capital investments in the Mill Creek facility[191]. - Cash and cash equivalents increased to $133.4 million as of December 31, 2022, compared to $105.4 million at the end of 2021[192]. - The company had no debt outstanding as of December 31, 2022, and had $0.3 million of letters of credit issued under the Revolving Facility[196]. - The credit agreement provides for a $75 million revolving credit facility, with an additional $50 million accordion feature, maturing on May 2, 2024[193]. - The company believes cash on hand and cash flows from operations will be sufficient to meet operating and capital needs in the near future[198]. Expenses and Taxation - Selling, general and administrative expenses (SG&A) increased to $15.6 million in 2022, up $2.7 million or 21.1% from 2021, with SG&A as a percentage of revenues decreasing to 6.6%[173]. - Interest and other income, net increased to $2.0 million in 2022, a rise of $1.7 million or 479.2% compared to 2021, attributed to higher interest rates on cash balances[174]. - The effective income tax rate for 2022 was 19.7%, down from 20.4% in 2021, primarily due to statutory depletion exceeding cost depletion[175]. - The company expects increased capital costs to result in higher DD&A expenses in future periods due to inflationary pressures[191]. Market Demand and Operational Challenges - Demand for lime and limestone products is expected to remain strong due to increased funding for highway construction and infrastructure projects in Texas[153]. - The company continues to face risks related to demand and pricing for lime and limestone products, as well as operational challenges from various external factors[160]. - The company had $1.5 million in open orders for equipment and construction contracts for its Lime and Limestone Operations as of December 31, 2022[187]. Stock Buybacks - The company spent $0.8 million on common stock buybacks in 2022, compared to $0.7 million in 2021[197].