United States Lime & Minerals’ Third-Quarter Revenues Up 27%

United States Lime & Minerals Inc. reported third quarter 2022 results. The company’s revenues in the third quarter 2022 were $66.5 million, compared to $52.3 million in the third quarter 2021, an increase of $14.1 million, or 27.0%. For the first nine months 2022, company revenues were $177.9 million, compared to $143.1 million in the first nine months 2021, an increase of $34.7 million, or 24.2%. 

Lime and limestone revenues were $65.7 million in the third quarter 2022, compared to $51.7 million in the third quarter 2021, an increase of $14.0 million, or 27.0%. For the first nine months 2022, lime and limestone revenues were $175.6 million, compared to $141.8 million in the first nine months 2021, an increase of $33.8 million, or 23.8%. 

The increase in revenues in the third quarter 2022, compared to the third quarter 2021, resulted primarily from increased sales volumes of the company’s lime and limestone products, principally due to increased demand from the company’s construction, agriculture, roofing, and oil and gas services customers, as well as an increase in the average selling prices for the company’s lime and limestone products. 

The increase in revenues in the first nine months 2022, compared to the first nine months 2021, resulted primarily from increased sales volumes of the company’s lime and limestone products, principally due to increased demand from the company’s construction, agriculture, and oil and gas services customers, and an increase in the average selling prices for the company’s lime and limestone products.

The company’s gross profit was $22.6 million in the third quarter 2022, compared to $17.3 million in the third quarter 2021, an increase of $5.2 million, or 30.3%. Gross profit in the first nine months of 2022 was $53.5 million, compared to $45.9 million in the first nine months 2021, an increase of $7.6 million, or 16.5%. 

The company’s lime and limestone gross profit was $22.2 million in the third quarter 2022, compared to $17.1 million in the third quarter 2021, an increase of $5.0 million or 29.4%. The company’s lime and limestone gross profit in the first nine months 2022 was $52.3 million, compared to $45.6 million in the first nine months 2021, an increase of $6.7 million, or 14.7%. 

The increases in lime and limestone gross profit in the third quarter and first nine months 2022, compared to the comparable 2021 periods, resulted primarily from the increased revenues discussed above, partially offset by increased production costs, principally from higher transportation, energy, labor, and supplies costs. 

The pace of increases in production costs slowed somewhat during the third quarter 2022, relative to the inflationary pressures of the first half of the year. However, risks to the company’s production costs, supply chain, and freight and transportation remain. These risks include, but are not limited to, the impact that foreign oil production cuts may have on the price of petroleum and petroleum-based products, and the risks potential railroad labor disputes may pose for the company’s supply chain, freight and transportation.

“We are pleased with our performance in the third quarter, particularly considering the inflationary and supply chain challenges we are facing. We have made progress in passing along the cost increases that we have experienced this year,” said Timothy W. Byrne, president and chief executive officer. “We continue to see strong demand from our construction customers and have benefited from long stretches of dry weather in our Texas markets.” 

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