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Mar 31, 2020
US Lime Q1 2020 Earnings Report
Reported an increase in revenue and net income for Q1 2020.
Key Takeaways
United States Lime & Minerals reported a revenue increase of 1.7% and a net income increase of 8.1% for the first quarter of 2020. The company's performance was driven by increased average selling prices for lime and limestone products, offset by decreased demand from environmental and oil and gas services customers. The company also declared a regular quarterly cash dividend of $0.16 per share.
Revenues increased by 1.7% to $38.4 million compared to Q1 2019.
Gross profit increased by 13.6% to $9.9 million compared to Q1 2019.
Net income increased by 8.1% to $5.5 million ($0.98 per share diluted) compared to Q1 2019.
The Board of Directors declared a regular quarterly cash dividend of $0.16 per share.
Forward Guidance
The Company expects a slowdown in the national economy beginning in the second quarter, and a possibly greater impact in certain industries, such as oil and gas drilling activities, roofing, and steel.
Positive Outlook
- Commitment to the safety of employees and other individuals at facilities.
- Implementation of enhanced health and safety protocols at all locations.
- Reduced access to facilities and screening of individuals on all sites.
- Enforcement of social distancing and other practices.
- Consideration of cost-cutting initiatives and ways to further increase operating efficiencies.
Challenges Ahead
- Significant amount of current economic uncertainty will negatively impact customers.
- Expected reduction in demand for lime and limestone products.
- Particularly from the oil and gas services, roofing, and steel sectors.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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