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Jun 30, 2020
US Lime Q2 2020 Earnings Report
US Lime & Minerals' second quarter earnings decreased due to reduced sales volumes, but gross profit increased due to lower fuel costs and increased operating efficiencies.
Key Takeaways
United States Lime & Minerals reported a decrease in revenue for Q2 2020, primarily due to reduced sales volumes of lime and limestone products. However, gross profit increased due to lower fuel costs and operational efficiencies. Net income saw a slight increase compared to Q2 2019.
Revenues decreased by 3.6% to $37.5 million compared to Q2 2019.
Gross profit increased by 6.5% to $10.4 million compared to Q2 2019.
Net income increased slightly to $6.1 million ($1.08 per share diluted) compared to $6.0 million ($1.07 per share diluted) in Q2 2019.
Acquired 100% of the equity interest of Carthage Crushed Limestone on July 1, 2020, for $9 million cash.
Forward Guidance
The Company expects a continued slowdown in economic activity as restrictions continue, or even expand, which it anticipates will have an adverse impact on the demand for its lime and limestone products. In addition, a continued economic slowdown may put downward pressure on the prices the Company is able to realize for its products.
Positive Outlook
- Focus on cost-cutting initiatives.
- Increase operating efficiencies.
- Acquisition of Carthage Crushed Limestone complements existing geographic footprint.
- Commitment to the safety of employees and individuals at facilities.
- Use of enhanced health and safety protocols.
Challenges Ahead
- COVID-19 pandemic challenges.
- Decreases in demand resulting from the pandemic.
- Continued slowdown in economic activity.
- Adverse impact on the demand for lime and limestone products.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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