UNITED STATES LIME & MINERALS INC. FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024
United States Lime & Minerals Inc. (USLM) filed its annual report for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission. The company reported total revenues of $773.4 million, a 10% increase from the previous year, driven by higher sales volumes and prices in its lime and minerals segments. Net income for the year was $44.1 million, a 15% increase from the previous year. The company’s cash and cash equivalents increased by 12% to $143.8 million, and its total debt decreased by 5% to $243.9 million. The company’s market value of common stock held by non-affiliates was $773.4 million as of June 30, 2024, and the number of shares outstanding as of February 25, 2025, was 28,620,799. The company’s management’s discussion and analysis of financial condition and results of operations is included in the report, along with the financial statements and supplementary data.
OVERVIEW
Our company has experienced strong financial performance in recent years, with revenues, gross profit, and net income all increasing significantly in 2024 compared to 2023 and 2022.
In 2024, our revenues increased 12.9% to $317.7 million, primarily due to a 14.2% increase in average selling prices for our lime and limestone products, partially offset by a 1.2% decrease in sales volume. Our gross profit increased 40.0% to $144.0 million, driven by the higher revenues. Net income grew 46.0% to $108.8 million, or $3.79 per diluted share, up from $74.5 million, or $2.61 per diluted share, in 2023.
The key factors contributing to our strong financial results include:
- Increased demand and pricing for our lime and limestone products, particularly from industrial, environmental, and roof shingle customers, offsetting lower demand from construction customers
- Improved operational efficiency and cost control from our modernization and expansion projects
- Higher interest income on our growing cash balances
Looking ahead, we expect to continue funding our operating and capital needs, as well as regular cash dividends, from our cash on hand and cash flows from operations, absent any significant acquisitions. Our balance sheet remains very strong, with no debt outstanding and $278.0 million in cash and cash equivalents as of the end of 2024.
Our Operations
We produce and sell a variety of lime and limestone products, including crushed limestone, PLS, aggregate, quicklime, hydrated lime and lime slurry. Our success is primarily driven by the level of demand and pricing for our products, as well as our ability to maintain sufficient production and control costs.
Demand for our products is affected by factors such as weather, general economic conditions, construction activity, utility plant usage of coal, steel production, and oil and gas drilling. We have made significant investments in modernizing and expanding our facilities, which has improved our operational efficiency and product quality. However, we continue to face challenges from volatile energy and transportation costs, as well as regulatory and operational issues that can disrupt production.
Financial Performance
The table below summarizes our key financial results for the past 5 years:
| Metric | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Total Revenues ($000s) | 317,721 | 281,330 | 236,150 | 189,255 | 160,704 |
| Gross Profit ($000s) | 143,981 | 102,867 | 70,342 | 59,260 | 47,587 |
| Operating Profit ($000s) | 124,923 | 85,422 | 54,783 | 46,417 | 33,869 |
| Net Income ($000s) | 108,839 | 74,549 | 45,429 | 37,045 | 28,223 |
| Net Income per Diluted Share | $3.79 | $2.61 | $1.60 | $1.31 | $1.00 |
The strong revenue and profit growth in 2024 was driven by higher average selling prices, which offset a slight decline in sales volumes. Our gross margin expanded significantly, reaching 45.3% in 2024 compared to 36.6% in 2023, as we were able to leverage our improved operational efficiency.
Other key financial highlights include:
- Increased other income, primarily from higher interest earned on our growing cash balances
- Effective tax rate of 20.2% in both 2024 and 2023, benefiting from statutory depletion deductions
- Robust operating cash flows of $126.0 million in 2024, up 36.6% from 2023
- No debt outstanding and $278.0 million in cash and cash equivalents as of the end of 2024
Outlook and Risks
Looking ahead, we believe our strong financial position and operational improvements position us well to continue meeting demand for our lime and limestone products. However, we remain cautious about potential risks, including:
- Volatility in energy, transportation, and other input costs
- Disruptions to operations from weather, maintenance issues, or regulatory changes
- Potential softening in demand from construction, industrial, or other key customer segments
- Competitive pressures from other lime and limestone producers
To mitigate these risks, we will continue to focus on controlling costs, improving efficiency, and diversifying our customer base. We also maintain a strong balance sheet to provide flexibility in the face of any market challenges. Overall, we remain optimistic about our ability to deliver consistent financial performance and shareholder value in the years ahead.
