UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 29, 2014
UNITED STATES LIME & MINERALS, INC.
(Exact name of registrant as specified in its charter)
TEXAS |
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0-4197 |
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75-0789226 |
(State or other jurisdiction of |
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(Commission File Number) |
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(IRS Employer Identification No.) |
incorporation) |
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5429 LBJ FREEWAY, SUITE 230, DALLAS, TEXAS |
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75240 |
(Address of principal executive offices) |
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(Zip Code) |
(972) 991-8400
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On January 29, 2014, United States Lime & Minerals, Inc. issued a News Release announcing the financial results for the quarter ended December 31, 2013. A copy of the News Release is attached hereto as Exhibit 99.1 and incorporated by reference herein response to this Item 2.02.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit |
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Exhibit |
99.1 |
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News Release of United States Lime & Minerals, Inc. dated January 29, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, United States Lime & Minerals, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 29, 2014 |
UNITED STATES LIME & MINERALS, INC. | |
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By: |
/s/ M. Michael Owens |
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M. Michael Owens, Vice President and | |
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Chief Financial Officer |
Exhibit 99.1
UNITED STATES LIME & MINERALS, INC. NEWS RELEASE
FOR IMMEDIATE RELEASE |
Contact: Timothy W. Byrne |
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(972) 991-8400 |
UNITED STATES LIME & MINERALS DECLARES QUARTERLY CASH DIVIDEND
AND REPORTS FOURTH QUARTER AND FULL-YEAR 2013 RESULTS
Dallas, Texas, January 29, 2014 - United States Lime & Minerals, Inc. (NASDAQ: USLM) today reported fourth quarter and full-year 2013 results: Revenues in the fourth quarter 2013 decreased to $30.1 million from $31.9 million in the fourth quarter 2012, a decrease of $1.8 million, or 5.6%. Revenues from the Companys lime and limestone operations in the fourth quarter 2013 decreased $1.5 million, or 5.1%, to $28.7 million from $30.2 million in the comparable 2012 quarter, while revenues from its natural gas interests decreased $0.2 million, or 13.6%, to $1.4 million from $1.7 million in the comparable prior year quarter. For full-year 2013, revenues decreased to $133.8 million from $138.5 million in 2012, a decrease of $4.8 million, or 3.4%. Revenues from the Companys lime and limestone operations for full-year 2013 decreased $3.4 million, or 2.6%, to $128.0 million from $131.4 million in 2012, while revenues from its natural gas interests decreased $1.4 million, or 19.1%, to $5.8 million from $7.1 million in the prior year.
The decrease in lime and limestone revenues in the fourth quarter 2013 as compared to the fourth quarter 2012 resulted primarily from decreased sales volumes of the Companys lime and limestone products as a result of decreased demand from its construction customers due to inclement weather conditions in the 2013 quarter compared to favorable weather conditions in the comparable 2012 quarter. The decrease in lime and limestone revenues in full-year 2013, compared to 2012, resulted primarily from decreased demand, principally from the Companys steel customers, partially offset by increased sales volumes to the Companys construction and environmental customers and a slight increase in prices realized for the Companys lime and limestone products in 2013, compared to 2012.
Production volumes from the Companys natural gas interests for the fourth quarter 2013 totaled 233 thousand MCF, sold at an average price of $6.20 per MCF, compared to 284 thousand MCF, sold at an average price of $5.89 per MCF, in the comparable 2012 quarter. Production volumes for full-year 2013 from natural gas interests totaled 983 thousand MCF, sold at an average price of $5.86 per MCF, compared to 2012 when 1.2 BCF was produced and sold at an average price of $5.74 per MCF. The Companys average prices per MCF exceeds average natural gas prices because the Companys natural gas contains liquids. The Companys average prices per MCF in the 2013 periods were higher than its prices in the prior years comparable periods due to the increases in natural gas prices, partially offset by lower prices for natural gas liquids.
The Companys gross profit was $6.4 million in the fourth quarter 2013, compared to $8.1 million in the comparable 2012 quarter, a decrease of $1.7 million, or 20.8%. For full-year 2013, gross profit was $30.8 million, a decrease of $2.6 million, or 7.9%, from $33.4 million in 2012.
Included in gross profit for the fourth quarter and full-year 2013 were $5.5 million and $27.9 million, respectively, from the Companys lime and limestone operations, compared to $7.3 million and $29.5 million, respectively, in the comparable 2012 periods. The decreased gross profit for the Companys lime and limestone operations in the 2013 periods resulted primarily from the decreased sales volumes and revenues discussed above and increased costs of revenues due to production inefficiencies, resulting from the inclement weather conditions.
Gross profit from the Companys natural gas interests increased to $1.0 million for the fourth quarter, from $0.9 million, in the comparable 2012 quarter, primarily due to a reduction in depletion expense in the fourth quarter 2013 because of an increase in the Companys natural gas reserves as of December 31, 2013 resulting from the increase in the average natural gas price for 2013, compared to the average natural gas price for 2012. This was partially offset by the decrease in revenues in the 2013 quarter discussed above. The decrease in gross profit for the full-year 2013 from the Companys natural gas interests resulted from the
decrease in revenues discussed above. No new wells were drilled in 2013 or are currently being drilled. The Company cannot predict the number of additional wells that ultimately will be drilled, if any, or their results.
The Company reported net income of $2.6 million ($0.47 per share diluted) in the fourth quarter 2013, compared to net income of $3.8 million ($0.68 per share diluted) in the fourth quarter 2012, a decrease of $1.2 million, or 30.7%. For full-year 2013, the Companys net income decreased by $1.6 million, or 9.9%, to $14.8 million ($2.66 per share diluted), from $16.4 million ($2.87 per share diluted) in 2012.
The Company also announced today that the Board of Directors has declared a quarterly cash dividend of $0.125 (12.5 cents) per share on the Corporations common stock. This dividend, which represents a cash dividend of $0.50 (50 cents) per share on an annualized basis, is payable March 20, 2014, to shareholders of record at the close of business on February 28, 2014.
Inclement weather in the fourth quarter 2013 resulted in a significant decline in construction demand for our lime and limestone products, said Timothy W. Byrne, President and Chief Executive Officer. However, we believe this demand was merely postponed until 2014 as our customers projects are still underway. Mr. Byrne added, We are pleased that we continue to generate significant cash flows from our operations and that our balance sheet remains strong, enabling us to pay quarterly dividend distributions to our shareholders.
United States Lime & Minerals, Inc., a NASDAQ-listed public company with headquarters in Dallas, Texas, is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road and parking lot contractors), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment), oil and gas services, industrial (including paper and glass manufacturers), roof shingle and agriculture (including poultry and cattle feed producers) industries. The Company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Oklahoma and Texas through its wholly owned subsidiaries, Arkansas Lime Company, Colorado Lime Company, Texas Lime Company, U.S. Lime Company, U.S. Lime Company Shreveport, U.S. Lime Company St. Clair and U.S. Lime Company Transportation. In addition, the Company, through its wholly owned subsidiary, U.S. Lime Company O & G, LLC, has royalty and non-operating working interests pursuant to an oil and gas lease and a drillsite agreement on its Johnson County, Texas property, located in the Barnett Shale Formation.
Any statements contained in this news release that are not statements of historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to publicly update or revise any forward-looking statements, and investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation those risks and uncertainties indicated from time to time in the Companys filings with the Securities and Exchange Commission.
(Tables Follow)
United States Lime & Minerals, Inc.
CONDENSED CONSOLIDATED FINANCIAL DATA
(In thousands, except per share amounts)
(Unaudited)
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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2013 |
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2012 |
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2013 |
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2012 |
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INCOME STATEMENTS |
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Revenues |
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Lime and limestone operations |
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$ |
28,666 |
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$ |
30,212 |
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$ |
128,003 |
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$ |
131,404 |
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Natural gas interests |
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1,443 |
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1,671 |
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5,762 |
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7,121 |
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Total |
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$ |
30,109 |
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$ |
31,883 |
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$ |
133,765 |
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$ |
138,525 |
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Gross profit |
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Lime and limestone operations |
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$ |
5,474 |
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$ |
7,252 |
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$ |
27,913 |
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$ |
29,499 |
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Natural gas interests |
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961 |
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871 |
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2,887 |
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3,939 |
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Total |
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$ |
6,435 |
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$ |
8,123 |
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$ |
30,800 |
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$ |
33,438 |
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Operating profit |
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$ |
3,951 |
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$ |
5,614 |
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$ |
21,651 |
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$ |
24,245 |
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Interest expense |
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447 |
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506 |
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1,852 |
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2,163 |
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Other (income) expense, net |
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(19 |
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48 |
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(34 |
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(19 |
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Income tax expense |
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894 |
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1,268 |
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5,033 |
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5,678 |
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Net income |
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$ |
2,629 |
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$ |
3,792 |
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$ |
14,800 |
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$ |
16,423 |
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Income per share of common stock: |
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Basic |
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$ |
0.47 |
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$ |
0.68 |
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$ |
2.66 |
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$ |
2.88 |
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Diluted |
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$ |
0.47 |
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$ |
0.68 |
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$ |
2.66 |
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$ |
2.87 |
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Weighted-average shares outstanding: |
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Basic |
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5,565 |
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5,550 |
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5,561 |
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5,705 |
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Diluted |
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5,575 |
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5,558 |
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5,571 |
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5,716 |
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December 31, |
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December 31, |
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2013 |
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2012 |
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BALANCE SHEETS |
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Assets: |
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Current assets |
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$ |
78,844 |
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$ |
59,959 |
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Property, plant and equipment, net |
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108,487 |
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114,042 |
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Other assets, net |
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195 |
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245 |
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Total assets |
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$ |
187,526 |
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$ |
174,246 |
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Liabilities and Stockholders Equity: |
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Current liabilities |
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$ |
14,348 |
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$ |
13,340 |
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Debt, excluding current installments |
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16,667 |
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21,667 |
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Deferred tax liabilities, net |
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17,799 |
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15,654 |
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Other liabilities |
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1,907 |
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3,230 |
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Stockholders equity |
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136,805 |
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120,355 |
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Total liabilities and stockholders equity |
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$ |
187,526 |
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$ |
174,246 |
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- end -