-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P2FMHRyB3qnqTm/k2Qm58oq4QTma8M+f1wlv55gJAhFETv68e7PWp+rt620eku8J BPJ7cEBh7zYxMuCqNYBXVQ== 0000950134-96-005500.txt : 19961021 0000950134-96-005500.hdr.sgml : 19961021 ACCESSION NUMBER: 0000950134-96-005500 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961018 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATES LIME & MINERALS INC CENTRAL INDEX KEY: 0000082020 STANDARD INDUSTRIAL CLASSIFICATION: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400] IRS NUMBER: 750789226 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-04197 FILM NUMBER: 96645392 BUSINESS ADDRESS: STREET 1: 12221 MERIT DRIVE SUITE 500 CITY: DALLAS STATE: TX ZIP: 75251 BUSINESS PHONE: 2149918400 MAIL ADDRESS: STREET 1: 12221 MERIT DRIVE STREET 2: SUITE 500 CITY: DALLAS STATE: TX ZIP: 75251 FORMER COMPANY: FORMER CONFORMED NAME: SCOTTISH HERITABLE INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: RANGAIRE CORP DATE OF NAME CHANGE: 19900405 FORMER COMPANY: FORMER CONFORMED NAME: ROBERTS MANUFACTURING CO INC DATE OF NAME CHANGE: 19690311 10-Q 1 FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ........ to ........ Commission file number is 0-4197 UNITED STATES LIME & MINERALS, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) TEXAS 75-0789226 ----- ---------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 12221 MERIT DRIVE, SUITE 500, DALLAS, TX 75251 - ---------------------------------------- --------- (Address of principal executive offices) (Zip Code) (972) 991-8400 --------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of October 17, 1996, 3,921,853 shares of common stock, $.10 par value, were outstanding. 2 PART I. FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of dollars) (Unaudited)
September 30, December 31, ASSETS 1996 1995 - ------ ---- ---- Current Assets: Cash and cash equivalents $ 601 $ 1,161 Trade receivables 5,965 5,509 Inventories 5,314 5,332 Prepaid expenses and other assets 542 234 ------------- -------------- Total current assets 12,422 12,236 ------------- -------------- Property, plant and equipment at cost: 58,578 53,927 Less accumulated depreciation (40,164) (37,503) ------------- -------------- Net property, plant and equipment 18,414 16,424 Other assets, net 1,057 1,133 ------------- -------------- Total assets $ 31,893 $ 29,793 ============= ============== LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ Current Liabilities: Current installments of long-term debt $ 1,143 $ 1,143 Accounts payable-trade 3,022 2,568 Accrued expenses 2,255 2,369 ------------- -------------- Total current liabilities 6,420 6,080 Long-term debt, excluding current installments 3,524 4,381 Other liabilities 579 583 ------------- -------------- Total liabilities 10,523 11,044 Stockholders' equity: Common stock 529 529 Additional paid-in capital 15,306 15,848 Retained earnings 20,097 17,844 ------------- -------------- 35,932 34,221 Less treasury stock at cost; 1,372,212 and 1,458,002 shares of common stock (14,562) (15,472) ------------- -------------- Total stockholders' equity 21,370 18,749 ------------- -------------- Total liabilities and stockholders' equity $ 31,893 $ 29,793 ============= ==============
See accompanying notes to condensed consolidated financial statements. 2 3 UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of dollars, except per share data) (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, 1996 SEPTEMBER 30, 1995 SEPTEMBER 30, 1996 SEPTEMBER 30, 1995 ------------------ ------------------- -------------------- -------------------- Revenues $ 10,452 100.0% $ 11,106 100.0% $ 30,558 100.0% $ 31,213 100.0% Cost of revenues: Labor and other operating expenses 7,730 74.0% 7,410 66.7% 21,151 69.2% 20,874 66.9% Depreciation, depletion and amortization 832 8.0% 784 7.1% 2,644 8.7% 2,360 7.5% -------------------- ------------------- ------------------- ------------------- 8,562 81.9% 8,194 73.8% 23,795 77.9% 23,234 74.4% -------------------- ------------------- ------------------- ------------------- GROSS PROFIT 1,890 18.1% 2,912 26.2% 6,763 22.1% 7,979 25.6% Selling, general and administrative expenses 1,091 10.4% 1,041 9.4% 3,349 10.9% 3,438 11.0% -------------------- ------------------- ------------------- ------------------- OPERATING PROFIT 799 7.7% 1,871 16.8% 3,414 11.2% 4,541 14.6% -------------------- ------------------- ------------------- ------------------- Other deductions (income): Interest expense 143 1.4% 166 1.5% 439 1.4% 518 1.7% Other, net (37) -0.4% (221) -2.0% (166) -0.5% (228) -0.7% -------------------- ------------------- ------------------- ------------------- 106 1.0% (55) -0.5% 274 0.9% 290 1.0% -------------------- ------------------- ------------------- ------------------- NET INCOME BEFORE INCOME TAXES 693 6.7% 1,926 17.3% 3,141 10.3% 4,251 13.6% Federal and state income taxes 123 1.2% 391 3.5% 597 2.0% 850 2.7% -------------------- ------------------- ------------------- ------------------- Net income $ 570 5.5% $ 1,535 13.8% $ 2,544 8.3% $ 3,401 10.9% ========== ========== ========== ========= NET INCOME PER SHARE OF COMMON STOCK $ 0.15 $ 0.40 $ 0.66 $ 0.89 ========== ========== ========== =========
See accompanying notes to condensed consolidated financial statements. 3 4 UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of dollars) (Unaudited)
NINE MONTHS ENDED ----------------- SEPTEMBER 30, ------------- 1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 2,544 $ 3,401 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 2,771 2,475 Amortization of financing costs 76 56 Gain on sale of property (68) (126) Current assets (net change) [1] (746) (550) Other assets - (330) Current liabilities (net change) [2] 340 1,022 Other liabilities (4) (126) ---------- ---------- Net cash provided by operating activities 4,913 5,822 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (4,708) (4,024) Proceeds from sale of property, plant and equipment 15 187 ---------- ---------- Net cash (used in) investing activities (4,693) (3,837) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options 368 - Proceeds from borrowings 3,100 2,200 Principal payments of debt (3,957) (3,758) Payment of common stock dividends (291) (190) ---------- ---------- Net cash (used in) financing activities (780) (1,748) ---------- ---------- Net increase (decrease) in cash and cash equivalents (560) 237 Cash and cash equivalents at beginning of period 1,161 23 ---------- ---------- Cash and cash equivalents at end of period $ 601 $ 260 ========== ========== Supplemental cash flow information: Interest paid $ 348 $ 463 ========== ========== Income taxes paid $ 689 $ 518 ========== ==========
[1] Exclusive of net change in cash. [2] Exclusive of net change in debt and lease obligations. See accompanying notes to condensed consolidated financial statements. 4 5 UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Basis of Presentation The condensed consolidated financial statements included herein have been prepared by the Company without independent audit. In the opinion of the Company's management, all adjustments of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the period ended December 31, 1995. The results of operations for the periods ended September 30, 1996 are not necessarily indicative of what the operating results will be for the full year. Certain prior year amounts have been reclassified for comparison purposes. 2. Inventories Inventories consist of the following at: September 30, December 31, 1996 1995 ---- ---- (In thousands of dollars) Raw materials $ 943 $ 1,000 Finished goods 2,363 2,436 Service parts 2,008 1,896 ------- ------- Total Inventories $ 5,314 $ 5,332 ======= ======= 3. Prepaid Expenses and Other Assets At September 30, 1996, prepaid expenses and other assets included $142,000 of deferred costs that will be absorbed in inventory by the end of the year based on units of production method. The deferred costs at September 30, 1995 were $88,000. The 1996 costs relate to a planned aggregates production shut-down of one of the plant facilities during the first quarter of 1996. Deferred costs include maintenance and other expenses incurred during the first quarter that will contribute towards revenues in subsequent quarters. 5 6 ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operating activities was $4,917,000 for the nine months ended September 30, 1996 compared to $5,822,000 for the nine months ended September 30, 1995. The decrease was largely the results of reduced earnings and increased spending on property, plant and equipment. The Company has completed the feasibility studies for a new kiln at the Arkansas plant and has decided to proceed with this project. The new kiln will complement the existing shaft kilns by allowing the Company to expand its customer base. The lime produced on the new kiln will meet the specific chemical needs of both the existing customer base and customers the Company currently is unable to serve. The project is expected to cost approximately $9-10 million. The Company's progress on this project was slowed due to the state regulatory authorities requiring the Arkansas plant to apply for and obtain a new plant-wide permit. The new permit replaced the existing permit and now allows the Company to proceed with the permitting process of the new kiln. This permit is expected to be secured within the next six months. The new kiln will be financed by internally generated funds and/or alternative sources of financing. RESULTS OF OPERATIONS Revenues decreased from $11,106,000 in the third quarter of 1995 to $10,452,000 in the third quarter of 1996, a decrease of $654,000 or 5.9%. This resulted from a 8.8% decrease in sales volume and a 2.9% increase in prices. Revenues for the nine months ended September 30, 1996 decreased by 2.1% over 1995, caused by a 6.4% decrease in sales volume and a 4.3% increase in prices. The Company's gross profit was $1,890,000 in the third quarter of 1996, compared to $2,912,000 in the third quarter of 1995, a 35.1% decrease. Gross profit margin decreased for the third quarter of 1996 to 18.1%, from 26.2% in 1995. Gross profit decreased to $6,763,000 in the first nine months of 1996, from $7,979,000 in the first nine months of 1995, a 15.2% decrease. Gross profit margin for the nine months ended September 30, 1995 decreased to 22.1%, from 25.6% in 1995. Decreased production volumes, combined with higher depreciation, negatively impacted both gross profit and gross profit margins. The three and nine month results also were adversely impacted by operating problems at Corson Lime Company. The Company is reviewing various options to improve the situation at Corson. Selling, general and administrative expenses (SG&A) increased slightly in the third quarter of 1996 ($1,091,000), from the comparable period in 1995 ($1,041,000). SG&A as a percentage of sales increased to 10.4%, from 9.4% a year earlier. In the first nine months of 1996, SG&A decreased by $89,000 compared to 1995 and, as a percentage of sales, improved slightly. Interest expense decreased in both the third quarter and the first nine months of 1996 over 1995, by $23,000 and $79,000, respectively. This decrease was due to further decreases in the Revolving Credit Loan and the Term Loan balances. 6 7 Other, net decreased by $184,000 in the third quarter of 1996 due, in large part, to the sale of various surplus equipment in the third quarter of 1995. Other, net decreased by $62,000 in the first nine months of 1996, as compared to the first nine months of 1995. The Company reported net income of $570,000, ($0.15 per share) during the third quarter of 1996, compared to net income of $1,535,000, ($0.40 per share) during the third quarter of 1995 a decrease of 62.9%. For the first nine months of 1996, the Company recorded net income of $2,544,000 ($0.66 per share), a decrease of 25.2% from the net income of $3,401,000 ($0.89 per share) in the first nine months of 1995. PART II. OTHER INFORMATION ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K a. Exhibits: 11 Statement re computation of per share earnings 27 Financial Data Schedule b. Reports on Form 8-K: The Company filed no Reports on Form 8-K during the quarter ended September 30, 1996. 7 8 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNITED STATES LIME & MINERALS, INC. October 18, 1996 By: /s/ Robert F. Kizer ------------------------------- Robert F. Kizer, President and Chief Executive Officer October 18, 1996 By: /s/ Timothy W. Byrne ------------------------------ Timothy W. Byrne, Senior Vice President and Chief Financial Officer 8 9 UNITED STATES LIME & MINERALS, INC. Quarterly Report on Form 10-Q Quarter Ended September 30, 1996 Index to Exhibits Exhibit No. Exhibit ----------- --------------------------------------------- 11 Statement re computation of per share earnings 27 Financial data schedule
EX-11 2 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS 1 Exhibit 11 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------- --------------------- 1996 1995 1996 1995 --------- --------- ---------- --------- Net income $ 570,000 1,535,000 $2,544,000 3,401,000 ========= ========= ========== ========= Weighted average number of common shares outstanding 3,921,853 3,836,063 3,880,168 3,836,063 ========= ========= ========== ========= Net income per share of common stock $ 0.15 0.40 $ 0.66 0.89 ========= ========= ========== =========
NOTE: Outstanding stock options are excluded from the computation as the effective dilution in earnings per share data is less than 3%. EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1996 JUL-01-1996 SEP-30-1996 601 0 5,965 0 5,314 12,422 58,578 40,164 31,893 6,420 0 0 0 529 20,841 31,893 10,452 10,452 8,562 8,562 1,091 0 143 693 123 570 0 0 0 570 .15 .15
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