United States Lime & Minerals Reports Third Quarter 2017 Results And Declares Regular Quarterly Cash Dividend

DALLAS, Oct. 26, 2017

The decrease in lime and limestone revenues in the third quarter 2017, as compared to the third quarter 2016, resulted from decreased sales volumes of the Company's lime and limestone products due to decreased demand, primarily from its construction customers, principally as a result of Hurricane Harvey, and environmental customers, partially offset by increased demand from its oil and gas services customers.  The increase in the Company's lime and limestone revenues in the first nine months 2017, compared to last year's comparable period, resulted primarily from increased sales volumes due to increased demand, principally from its oil and gas services and construction customers, partially offset by reduced demand from its environmental customers.  Prices realized for the Company's lime and limestone products were flat in the third quarter 2017, compared to the third quarter 2016, and slightly higher in the first nine months 2017, compared to the comparable 2016 period. 

Production volumes from the Company's Natural Gas Interests in the third quarter 2017 totaled 137 thousand MCF, sold at an average price of $3.69 per MCF, compared to 156 thousand MCF, sold at an average price of $3.56 per MCF, in the comparable 2016 quarter.  Production volumes in the first nine months 2017 from Natural Gas Interests totaled 425 thousand MCF, sold at an average price of $3.98 per MCF, compared to the first nine months 2016 when 473 thousand MCF was produced and sold at an average price of $3.15 per MCF.  The Company's average prices per MCF were higher in the 2017 periods, compared to the prior year's average prices, due to increases in market prices for natural gas and natural gas liquids. 

The Company's gross profit was $9.6 million in the third quarter 2017, compared to $10.6 million in the comparable 2016 quarter, a decrease of $1.0 million, or 9.6%. Gross profit in the first nine months 2017 was $26.6 million, an increase of $1.0 million, or 3.8%, from $25.7 million in the first nine months 2016.

Included in gross profit in the third quarter and first nine months 2017 were $9.5 million and $26.2 million, respectively, from the Company's Lime and Limestone Operations, compared to $10.5 million and $25.7 million, respectively, in the comparable 2016 periods.  The decreased gross profit for the Company's lime and limestone operations in the third quarter 2017, compared to the third quarter 2016, resulted primarily from the decreased revenues in the third quarter 2017 discussed above.  The increased gross profit in the first nine months 2017, compared to the comparable 2016 period, resulted primarily from the increased revenues in the first nine months 2017 discussed above.

Gross profit from the Company's Natural Gas Interests was flat at $0.1 million in each of the third quarters 2017 and 2016.  For the first nine months 2017, gross profit from the Company's Natural Gas Interests increased to $0.4 million from a loss of $19 thousand in the comparable 2016 period, which resulted primarily from the increase in revenues in the first nine months 2017 discussed above.

The Company reported net income of $5.7 million ($1.01 per share diluted) in the third quarter 2017, compared to net income of $6.1 million ($1.09 per share diluted) in the third quarter 2016, a decrease of $0.4 million, or 6.8%.  Net income in the first nine months 2017 was $15.6 million ($2.79 per share diluted), an increase of $1.7 million, or 12.5%, compared to the first nine months 2016 net income of $13.8 million ($2.48 per share diluted).