United States Lime & Minerals(US:USLM)2023-11-02 20:46Revenue Growth - Revenues increased by 12.7% in Q3 2023 to $74.9 million, and by 21.2% for the first nine months to $215.6 million compared to the same periods in 2022[52] - Lime and limestone operations revenues rose by 13.5% in Q3 2023 to $74.6 million, and by 22.3% for the first nine months to $214.8 million compared to the same periods in 2022[52] - Average selling prices for lime and limestone products increased by 17.5% in Q3 2023 and by 22.3% in the first nine months of 2023, despite a 4.0% decrease in sales volumes in Q3 2023[42] Profitability - Gross profit increased by 24.6% in Q3 2023 to $28.2 million, and by 48.1% for the first nine months to $63.5 million compared to the same periods in 2022[43] - Gross profit for the first nine months of 2023 was $79.3 million, an increase of $25.7 million, or 48.1%, compared to $53.5 million in the same period of 2022[55] - The gross profit from lime and limestone operations in the first nine months of 2023 was $79.3 million, an increase of $27.0 million, or 51.6%, from $52.3 million in the same period of 2022[55] Net Income - Net income for the third quarter of 2023 was $20.7 million ($3.63 per share diluted), an increase of $5.0 million, or 31.8%, compared to $15.7 million ($2.77 per share diluted) in the third quarter of 2022[59] - For the first nine months of 2023, net income was $57.5 million ($10.09 per share diluted), an increase of $22.9 million, or 66.2%, from $34.6 million ($6.10 per share diluted) in the same period of 2022[59] Cash Flow and Expenditures - Net cash provided by operating activities was $64.7 million in the first nine months of 2023, an increase of 47.3% from $43.9 million in the same period of 2022[44] - Capital expenditures totaled $20.5 million in the first nine months of 2023, down from $23.8 million in the same period of 2022, which included $5.6 million for the acquisition of Mill Creek[46] - Cash and cash equivalents increased by $42.9 million to $176.3 million as of September 30, 2023, compared to $133.4 million at December 31, 2022[46] Expenses - SG&A expenses in the third quarter of 2023 were $4.4 million, up $0.8 million, or 22.9%, from $3.5 million in the third quarter of 2022[56] - SG&A expenses for the first nine months of 2023 totaled $12.8 million, an increase of $1.8 million, or 16.3%, from $11.0 million in the same period of 2022[56] Tax and Other Expenses - Income tax expense for the first nine months of 2023 was $14.4 million, compared to $8.5 million in the same period of 2022, reflecting an increase due to higher income before taxes[58] - Other (income) expense, net was $5.5 million for the first nine months of 2023, an increase of $4.9 million compared to $0.6 million in the same period of 2022, primarily due to higher interest rates[57] Debt and Credit Facilities - The company had no debt outstanding and no draws on the revolving credit facility, except for $0.3 million in letters of credit as of September 30, 2023[51] - There was no outstanding debt during any of the periods reported[57] - The credit agreement provides for a $75 million revolving credit facility, maturing on August 3, 2028, with an incremental feature to borrow up to an additional $50 million[48] - The company is exposed to interest rate risk due to potential future borrowings under the Revolving Facility, which had no outstanding balance as of September 30, 2023[60] Market Outlook - The company anticipates continued weak demand in key markets due to inflation, higher interest rates, and geopolitical uncertainties[42]