United States Lime & Minerals Inc. reported revenues in the third quarter of 2021 were $52.3 million, compared to $43.7 million in the third quarter 2020, an increase of $8.6 million, or 19.6%. For the first nine months of 2021, revenues were $143.1 million, compared to $119.7 million in the first nine months 2020, an increase of $23.4 million, or 19.6%.
The company’s revenues from its lime and limestone operations in the third quarter and first nine months 2021 were $51.7 million and $141.8 million, respectively, compared to $43.5 million and $119.0 million, respectively, in the comparable 2020 periods.
Lime and limestone revenues increased $8.3 million, or 19.0%, and $22.8 million, or 19.2%, in the third quarter and first nine months of 2021, respectively, compared to the third quarter and first nine months of 2020.
In the second and third quarters 2020, the COVID-19 pandemic and related restrictions on business activities resulted in a general economic slowdown, which disproportionately impacted certain industries that purchase the company’s products, including oil and gas services, environmental and steel.
Carthage Crushed Limestone, which the company acquired on July 1, contributed $7.4 million to lime and limestone revenues for the first nine months 2021, compared to $2.3 million for the first nine months 2020. The increase in lime and limestone revenues in the third quarter 2021, compared to the third quarter 2020, resulted primarily from increased sales to the company’s construction, steel, industrial, environmental,and oil and gas customers.
Including the added Carthage revenues, the increase in lime and limestone revenues in the first nine months 2021, compared to the first nine months 2020, resulted primarily from increased sales to the company’s construction, steel, environmental and roofing customers. Both the third quarter and the first nine months of 2021 were also favorably impacted by a slight price increase in the average selling prices for the company’s lime and limestone products.
The company’s gross profit was $17.3 million in the third quarter 2021, compared to $14.2 million in the third quarter 2020, an increase of $3.2 million, or 22.3%. Gross profit in the first nine months of 2021 was $45.9 million, an increase of $11.5 million, or 33.5%, from $34.4 million in the first nine months of 2020.
Lime and limestone gross profit was $17.1 million in the third quarter 2021, compared to $14.3 million in the third quarter 2020, an increase of $2.9 million or 20.1%. Lime and limestone gross profit in the first nine months 2021 was $45.6 million, compared to $34.8 million in the first nine months 2020, an increase of $10.8 million, or 31.1%.
The increase in gross profit in the 2021 periods, compared to the comparable 2020 periods, resulted primarily from the increased revenues discussed above and increased operating efficiencies, partially offset by higher fuel costs, including solid fuels, natural gas, and diesel.
“We are pleased with our third quarter 2021 results and the strong demand for our lime and limestone products across the markets we serve, building on the success of our second quarter 2021 results,” said Timothy W. Byrne, president and chief executive officer. Byrne added, “We are experiencing increasing fuel costs and are encountering higher prices for many of our inputs as inflationary pressures persist. We also expect continued challenges in the availability of labor and supplies and services while the broader economy adjusts to its reopened status. We are monitoring the evolving COVID-19 situation and will adjust operations as necessary, keeping the safety of our employees and other individuals at our facilities as our highest priority.”