United States Lime & Minerals Inc. reported fourth quarter and full year 2021 results. The company’s revenues in the fourth quarter 2021 were $46.1 million, compared to $41.0 million in the fourth quarter 2020, an increase of $5.1 million, or 12.5%.
For the full year 2021, the company’s revenues were $189.3 million, compared to $160.7 million in the full year 2020, an increase of $28.6 million, or 17.8%.
The company’s revenues from its lime and limestone operations in the fourth quarter and full year 2021 were $45.5 million and $187.4 million, respectively, compared to $40.7 million and $159.7 million, respectively, in the comparable 2020 periods. Lime and limestone revenues increased $4.9 million, or 12.0%, and $27.7 million, or 17.3%, in the fourth quarter and full year 2021, respectively, compared to the fourth quarter and full year 2020.
Carthage Crushed Limestone, which the company acquired on July 1, 2020, contributed $9.9 million to the company’s lime and limestone revenues in the full year 2021, compared to $4.6 million in the full year 2020. The increase in company revenues in the fourth quarter 2021, compared to the fourth quarter 2020, resulted primarily from increased sales of the company’s lime and limestone products, principally due to increased demand from the company’s environmental, construction and industrial customers.
Including the additional revenues from Carthage, the increase in revenues in the full year 2021, compared to the full year 2020, resulted primarily from increased sales of the company’s lime and limestone products, principally due to increased demand from the company’s construction, steel, environmental, industrial, roofing and agriculture customers.
The COVID-19 pandemic and related restrictions on business activities that began in the first quarter 2020 resulted in a general economic slowdown, which disproportionately impacted certain industries that purchase the company’s lime and limestone products. Both the fourth quarter and the full year 2021 were also favorably impacted by slight increases in the average selling prices for the company’s lime and limestone products.
The company’s gross profit was $13.3 million in the fourth quarter 2021, compared to $13.2 million in the fourth quarter 2020, an increase of $0.1 million, or 1.1%. Gross profit in the full year 2021 was $59.3 million, an increase of $11.7 million, or 24.5%, from $47.6 million in the full year 2020. Lime and limestone gross profit was $13.0 million in the fourth quarter 2021, compared to $13.2 million in the fourth quarter 2020, a decrease of $0.2 million or 1.2%.
Lime and limestone gross profit in the full year 2021 was $58.7 million, compared to $48.0 million in the full year 2020, an increase of $10.7 million, or 22.2%. The decrease in gross profit from lime and limestone in the fourth quarter 2021, compared to the fourth quarter 2020, resulted primarily from increased energy costs, partially offset by the increased revenues discussed above. The increase in gross profit from lime and limestone in the full year 2021, compared to the full year 2020, resulted primarily from the increased revenues discussed above and increased operating efficiencies, partially offset by higher energy costs.
The company continues to monitor and assess the impact of the COVID-19 pandemic in the United States, including the emergence of new variants of the virus, implementation of new or enhanced pandemic-related restrictions, and the possibility of additional wide-spread or localized outbreaks of the virus, any of which could have an adverse effect on the company’s financial condition, results of operations, cash flows and competitive position. Additionally, the company is experiencing rising costs and supply chain delays or disruptions which, if they persist, could adversely affect the company’s profitability.
“We are pleased with our results for 2021 in the face of what continues to be a challenging environment against the backdrop of the ongoing global pandemic,” said Timothy W. Byrne, president and chief executive officer. Byrne added, “Our costs have risen rapidly in recent months, and we believe that inflationary pressures and supply chain issues will continue to impact our costs in 2022. We are increasing the prices of our lime and limestone products in an effort to mitigate our increasing costs.”