United States Lime & Minerals Inc. reported second quarter 2022 results. The company’s revenues in the second quarter of 2022 were $60.5 million, compared to $49.2 million in the second quarter 2021, an increase of $11.3 million, or 23.0%.
Lime and limestone revenues were $59.6 million in the second quarter of 2022, compared to $48.7 million in the second quarter 2021, an increase of $10.9 million, or 22.3%.
For the first six months of 2022, company revenues were $111.4 million, compared to $90.8 million in the first six months 2021, an increase of $20.6 million, or 22.6%. For the first six months of 2022, lime and limestone revenues were $109.9 million, compared to $90.1 million in the first six months of 2021, an increase of $19.8 million, or 22.0%.
The increases in revenues in the second quarter and first six months of 2022 compared to the comparable 2021 periods resulted primarily from increased sales volumes of the company’s lime and limestone products, principally due to increased demand from the company’s construction and industrial customers, and increases in the average selling prices. Additionally, lime and limestone revenues in the first six months of 2022 benefited from increased sales to the company’s oil and gas services customers.
The company’s gross profit was $16.5 million in the second quarter of 2022, compared to $16.8 million in the second quarter of 2021, a decrease of $0.3 million, or 1.9%. Gross profit in the first six months of 2022 was $30.9 million, an increase of $2.3 million, or 8.2%, from $28.6 million in the first six months of 2021.
The company’s lime and limestone gross profit was $16.0 million in the second quarter of 2022, compared to $16.7 million in the second quarter of 2021, a decrease of $0.7 million or 4.2%. The company’s lime and limestone gross profit in the first six months of 2022 was $30.2 million, compared to $28.5 million in the first six months of 2021, an increase of $1.7 million, or 5.8%.
The decrease in lime and limestone gross profit in the second quarter of 2022 compared to the second quarter of 2021, resulted primarily from increased production costs, principally from higher energy, transportation, labor and supplies costs, partially offset by the increased revenues discussed above. The increase in lime and limestone gross profit in the first six months of 2022 compared to the first six months of 2021 resulted primarily from the increased revenues discussed above, partially offset by increased production costs.
The company reported net income of $10.2 million ($1.80 per share diluted) and $18.9 million ($3.33 per share diluted) in the second quarter and first six months of 2022, respectively, compared to $11.1 million ($1.96 per share diluted) and $18.1 million ($3.20 per share diluted) in the second quarter and first six months of 2021, respectively, reflecting a decrease of $0.9 million, or 7.7%, and an increase of $0.8 million, or 4.3%, respectively.
The company continues to be challenged by a persistent overall inflationary environment that is disproportionately impacting its lime and limestone production costs. The company is also adjusting and acclimating to longer lead times as supply chain delays have settled into a new normal. If the increased production costs, particularly costs associated with energy and transportation, continue at their current rate, or accelerate, it could adversely affect the company’s profitability going forward.
“We are pleased with our increases in sales volumes and revenues,” said Timothy W. Byrne, president and chief executive officer. “While we were able to increase our prices in the first half of the year, our price increases were not nearly enough to offset the increased cost pressures that we have been experiencing. To that end, we have been working with our valued customers to pass along additional price increases during the second half of the year.”