USLM Buoyed by Construction Demand

United States Lime & Minerals Inc (USLM) of Dallas, TX has reported a fourth quarter net income of US$2.3 million on revenues of US$31.3 million compared with US$3.7 million on revenues of US$35.4 million in the corresponding period of 2014. Fourth quarter revenues from the company’’s lime and limestone operations decreased 10.3% to US$30.8 million. The decrease resulted primarily from lower sales volumes to the company’’s steel, environmental, and oil & gas services customers, partially offset higher demand from its construction customers.

Gross profit for the business in the fourth quarter fell from US$7.3 million to US$5.6 million. For all of 2015 the lime and limestone operations generated revenues of US$128.4 million versus US$144.6 million in 2014. The decrease in revenue reflects decreased demand from the company’’s oil & gas services, steel and industrial customers. In addition, lime & limestone sales for 2014 included lime sales to another lime producer for delivery to its customers. The business also benefited from slightly higher average prices. The full year gross profit decreased from US$34.0 million to US$28.4 million.

Timothy W Byrne, USLM’’s CEO, said, ““In the fourth quarter, we saw demand for our lime and limestone products increase from our construction customers, which is also carrying into 2016. Our continuing strong cash flows and balance sheet enabled us to repay our term loans and terminate the pension plan in the second quarter 2015, initiate a share repurchase program in December 2015 and continue to pay cash dividends.””

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