United States Lime & Minerals Inc. reported third quarter 2017 results. Revenues in the third quarter 2017 were $36.9 million, compared to $38.7 million in the comparable prior year quarter, a decrease of $1.7 million, or 4.4 percent.
Revenues from the company’s Lime and Limestone Operations in the third quarter 2017 decreased $1.7 million, or 4.4 percent, to $36.4 million from $38.1 million in the comparable 2016 quarter, while revenues from its Natural Gas Interests decreased $48,000, or 8.7 percent, to $506,000 from $554,000 in the comparable prior year quarter.
In the first nine months 2017, revenues were $109.6 million, compared to $105.1 million in the comparable 2016 period, an increase of $4.5 million, or 4.3 percent. Revenues from the company’s Lime and Limestone Operations in the first nine months 2017 increased $4.3 million, or 4.1 percent, to $107.9 million from $103.6 million in the comparable 2016 period, although revenues from its Natural Gas Interests increased $0.2 million, or 13.8 percent, to $1.7 million from $1.5 million in the comparable prior year period.
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.
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 percent. Gross profit in the first nine months 2017 was $26.6 million, an increase of $1.0 million, or 3.8 percent, 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.
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.
“We are pleased with the continuing rebound in demand for our lime products from our oil and gas services customers during the third quarter 2017. We are grateful that our employees impacted by Hurricane Harvey are all safe and our facilities suffered only minor damages, but demand from certain of our construction customers during the third quarter was adversely impacted by the storm,” said Timothy W. Byrne, president and chief executive officer.