Yahoo Finance United States Lime & Minerals Inc (USLM) Reports Strong Q1 2024 Earnings Growth
Revenue: $71.7M in Q1 2024, up 7.4% from $66.8M in Q1 2023.
Gross Profit: $30.6M in Q1 2024, a 27.6% increase from $24.0M in Q1 2023.
Net Income: $22.4M in Q1 2024, up 31.2% from $17.1M in Q1 2023.
Earnings Per Share (Diluted): Increased to $3.92 in Q1 2024 from $3.00 in Q1 2023.
SG&A Expenses: Rose to $4.8M in Q1 2024, up 16.8% from $4.2M in Q1 2023.
Dividend: Quarterly cash dividend declared at $0.25 per share, payable on June 14, 2024.
On April 30, 2024, United States Lime & Minerals Inc (NASDAQ:USLM) disclosed its first quarter financial results through an 8-K filing. The company reported a revenue of $71.7 million for Q1 2024, marking a 7.4% increase from $66.8 million in the same period last year. This growth is primarily attributed to higher average selling prices for lime and limestone products, despite a decrease in sales volumes influenced by reduced demand from construction customers.
Company Overview
United States Lime & Minerals Inc, headquartered in Dallas, Texas, operates in the lime and limestone industry. The company's products serve a diverse range of industries including construction, industrial sectors, environmental applications, metals, oil and gas services, and agriculture. USLM manages several manufacturing plants and distribution facilities across states such as Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas.
Financial Performance Insights
The company's gross profit surged by 27.6% to $30.6 million in Q1 2024 from $24.0 million in Q1 2023, driven by the aforementioned increase in revenue and a decrease in operating expenses, including lower natural gas costs. However, Selling, General and Administrative (SG&A) expenses rose by 16.8% to $4.8 million, up from $4.2 million, largely due to increased personnel costs and stock-based compensation.
Net income for the quarter stood at $22.4 million, or $3.92 per diluted share, compared to $17.1 million, or $3.00 per diluted share in the first quarter of 2023, reflecting a robust increase of 31.2%. This improvement in net income highlights the company's effective management of pricing and expenses amidst fluctuating market demands.
"In the first quarter 2024, reduced demand continued from our construction customers. Fortunately, increased demand from our industrial customers provided a partial offset to an overall decrease in sales volume," stated Timothy W. Byrne, President and CEO of USLM. He also expressed optimism about improved demand from construction customers moving forward.
Dividend Announcement
Alongside its earnings report, USLM declared a regular quarterly cash dividend of $0.25 per share, payable on June 14, 2024, to shareholders of record as of May 24, 2024. This represents an increase from the previous dividend of $0.20 per share, underscoring the company's commitment to delivering shareholder value.
Balance Sheet and Future Outlook
The company's balance sheet remains strong with total assets increasing to $463.9 million as of March 31, 2024, up from $440.6 million at the end of 2023. The equity position also strengthened, with stockholders equity at $415.3 million, compared to $393.1 million at the end of the previous year.
As USLM navigates through varying demand levels across its customer base, its ability to adjust pricing and manage costs effectively will be crucial for sustaining profitability and growth. The anticipated recovery in construction demand and continued strength in the industrial sector are expected to play key roles in the company's performance in upcoming quarters.
For detailed financial tables and further information, refer to the full earnings report linked above.
Explore the complete 8-K earnings release (here) from United States Lime & Minerals Inc for further details.
This article first appeared on GuruFocus.
