United States Lime & Minerals Inc. reported fourth quarter and full year 2023 results. The company’s revenues in the fourth quarter 2023 were $65.7 million, compared to $58.3 million in the fourth quarter 2022, an increase of $7.4 million, or 12.7%. For the full year 2023, the company’s revenues were $281.3 million, compared to $236.2 million in the full year 2022, an increase of $45.2 million, or 19.1%.
- Lime and limestone revenues were $65.4 million in the fourth quarter 2023, compared to $57.8 million in the fourth quarter 2022, an increase of $7.6 million, or 13.1%.
- For the full year 2023, lime and limestone revenues were $280.2 million, compared to $233.4 million in the full year 2022, an increase of $46.8 million, or 20.0%.
The increases in revenues in the fourth quarter and full year 2023, compared to the comparable 2022 periods, resulted from increases in average selling prices for the company’s lime and limestone products, partially offset by decreased sales volumes.
The decrease in sales volumes in the fourth quarter 2023, compared to the fourth quarter 2022, and full year 2023, compared to the full year 2022, was principally due to decreased demand from the company’s industrial and construction customers, partially offset by increased demand from its roofing and oil and gas services customers.
The company’s gross profit was $23.6 million in the fourth quarter 2023, compared to $16.8 million in the fourth quarter 2022, an increase of $6.8 million, or 40.4%. The company’s gross profit was $102.9 million in the full year 2023, compared to $70.3 million in the full year 2022, an increase of $32.5 million, or 46.2%.
The company’s lime and limestone gross profit was $23.6 million in the fourth quarter 2023, compared to $16.6 million in the fourth quarter 2022, an increase of $7.0 million, or 41.9%. The company’s lime and limestone gross profit in the full year 2023 was $102.9 million, compared to $69.0 million in the full year 2022, an increase of $34.0 million, or 49.2%.
The increases in gross profit in the fourth quarter and full year 2023, compared to the comparable 2022 periods, resulted primarily from the increased revenues discussed above, partially offset by increased production costs, principally from higher energy, labor, and parts and supplies costs.
“While we are pleased with our financial performance in the fourth quarter and full year 2023, reduced demand in the fourth quarter from our industrial and construction customers continued to generate headwinds for us. Increased demand from our roofing and oil and gas customers was an encouraging offset to overall decreases in volume,” said Timothy W. Byrne, president and chief executive officer. “Looking ahead, we anticipate that soft construction demand, particularly from commercial building, will continue through at least the first half 2024.”