10q10k10q10k.net

What changed in UNITED STATES LIME & MINERALS INC's 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of UNITED STATES LIME & MINERALS INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+170 added−193 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-29)

Top changes in UNITED STATES LIME & MINERALS INC's 2024 10-K

170 paragraphs added · 193 removed · 156 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

68 edited+7 added−16 removed62 unchanged
Biggest changeBased on forecasted production levels and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 20 years. 5 Table of Contents The following is a map of the Batesville Quarry location: ​ The tables below summarize the limestone mineral resources and reserves at the Batesville Quarry as of December 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ Batesville Quarry - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Resources (tons) Cutoff Grade Processing Recovery Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources - 96.0(CaCO 3 ) N/A ​ - 96.0(CaCO 3 ) N/A Indicated Mineral Resources 8,239 96.0(CaCO 3 ) N/A ​ 8,239 96.0(CaCO 3 ) N/A Total Measured + Indicated Resources 8,239 96.0(CaCO 3 ) N/A ​ 8,239 96.0(CaCO 3 ) N/A ​ 6 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ Batesville Quarry - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Reserves (tons) Cutoff Grade Mining Recovery (1) ​ Reserves (tons) Cutoff Grade Mining Recovery (1) Proven Reserves 7,407 96.0(CaCO 3 ) 82%/75% ​ 8,192 96.0(CaCO 3 ) 82%/75% Probable Reserves 3,458 96.0(CaCO 3 ) 82%/75% ​ 3,458 96.0(CaCO 3 ) 82%/75% Total Mineral Reserves 10,865 96.0(CaCO 3 ) 82%/75% ​ 11,650 96.0(CaCO 3 ) 82%/75% (1) Mining recovery is listed as open-pit/underground recovery.
Biggest changeThe following is a map of the Batesville Quarry location: ​ ​ 6 Table of Contents The tables below summarize the limestone mineral resources and reserves at the Batesville Quarry as of December 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ Batesville Quarry - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Resources (tons) Cutoff Grade Processing Recovery Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources - 96.0(CaCO 3 ) N/A ​ - 96.0(CaCO 3 ) N/A Indicated Mineral Resources 8,239 96.0(CaCO 3 ) N/A ​ 8,239 96.0(CaCO 3 ) N/A Total Measured + Indicated Resources 8,239 96.0(CaCO 3 ) N/A ​ 8,239 96.0(CaCO 3 ) N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ Batesville Quarry - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Reserves (tons) Cutoff Grade Mining Recovery (1) ​ Reserves (tons) Cutoff Grade Mining Recovery (1) Proven Reserves 6,877 96.0(CaCO 3 ) 82%/75% ​ 7,407 96.0(CaCO 3 ) 82%/75% Probable Reserves 3,458 96.0(CaCO 3 ) 82%/75% ​ 3,458 96.0(CaCO 3 ) 82%/75% Total Mineral Reserves 10,335 96.0(CaCO 3 ) 82%/75% ​ 10,865 96.0(CaCO 3 ) 82%/75% (1) Mining recovery is listed as open-pit/underground recovery.
Over time, the EPA has increased the stringency of the National Ambient Air Quality Standards (“NAAQS”), which are used to establish air emission permitting limits under the Clean Air Act. The EPA has lowered ozone standards and reclassified areas where State Implementation Plans (the “SIPs”) exist.
Over time, the EPA has increased the stringency of the National Ambient Air Quality Standards (“NAAQS”), which are used to establish air emission permitting limits under the Clean Air Act. The EPA has lowered ozone standards and reclassified areas where State Implementation Plans (“SIPs”) exist.
These regulations require permitting with the respective state to ensure reclamation 15 Table of Contents obligations are met. Over time, the liability for AROs is recorded at its present value each period through accretion expense, and the capitalized cost is amortized over the useful life of the related asset.
These regulations require permitting with the respective state to ensure reclamation obligations are met. Over time, the liability for AROs is recorded at its present value each period through accretion 15 Table of Contents expense, and the capitalized cost is amortized over the useful life of the related asset.
Internal control procedures followed by the Company’s Quality Control/Quality Assurance Laboratories (“QC/QA Lab”) and its contract geologists when assessing properties for limestone mineral resources and reserves estimates are clearly defined. Core drilling is conducted under the direct supervision of the geologists, and all core data is logged using a standard protocol.
Internal control procedures followed by the Company’s Quality Control/Quality Assurance Laboratories (“QC/QA Lab”) and its contract geologists when assessing properties for limestone mineral resources and reserves estimates are clearly defined. When undertaken, core drilling is conducted under the direct supervision of the geologists, and all core data is logged using a standard protocol.
In addition to regulation, several court cases have been filed and decisions issued that may increase the risk of claims being filed by third parties against companies for their greenhouse gas emissions. Such cases may seek to challenge air permits, to force reductions in greenhouse gas emissions, or to recover damages for alleged climate change impacts.
In addition to regulation, court cases have been filed and decisions issued that may increase the risk of claims being filed by third parties against companies for their greenhouse gas emissions. Such cases may seek to challenge air permits, to force reductions in greenhouse gas emissions, or to recover damages for alleged climate change impacts.
Lime Company-Transportation to deliver some of the Company’s products to its customers and facilities primarily in Texas. U.S. Lime Company - Shreveport operates a distribution terminal in Shreveport, Louisiana, which is connected to a railroad, to provide lime storage, hydrating, slurrying, and distribution capacity to service markets in Louisiana and East Texas.
The Company established U.S. Lime Company-Transportation to deliver some of the Company’s products to its customers and facilities primarily in Texas. U.S. Lime Company-Shreveport operates a distribution terminal in Shreveport, Louisiana, which is connected to a railroad, to provide lime storage, hydrating, slurrying, and distribution capacity to service markets in Louisiana and East Texas.
The Mill Creek plant has facilities located next to the Mill Creek Quarry that produce dolomitic PLS products. The equipment has the capacity to produce approximately 300 thousand tons annually. The Company also maintains lime hydrating and bagging equipment at the Texas, Arkansas, and St. Clair plants.
The equipment has the capacity to produce approximately 900 thousand tons annually. The Mill Creek plant has facilities located next to the Mill Creek Quarry that produce dolomitic PLS products. The equipment has the capacity to produce approximately 300 thousand tons annually. The Company also maintains lime hydrating and bagging equipment at the Texas, Arkansas, and St. Clair plants.
Clair Mine - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Resources (tons) Cutoff Grade Processing Recovery ​ Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources 7,801 96.0(CaCO 3 ) N/A ​ 7,801 96.0(CaCO 3 ) N/A Indicated Mineral Resources 129,747 96.0(CaCO 3 ) N/A ​ 129,747 96.0(CaCO 3 ) N/A Total Measured + Indicated Resources 137,548 96.0(CaCO 3 ) N/A ​ 137,548 96.0(CaCO 3 ) N/A ​ 9 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ St.
Clair Mine - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Resources (tons) Cutoff Grade Processing Recovery ​ Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources 7,801 96.0(CaCO 3 ) N/A ​ 7,801 96.0(CaCO 3 ) N/A Indicated Mineral Resources 129,747 96.0(CaCO 3 ) N/A ​ 129,747 96.0(CaCO 3 ) N/A Total Measured + Indicated Resources 137,548 96.0(CaCO 3 ) N/A ​ 137,548 96.0(CaCO 3 ) N/A 9 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ St.
In either such case, the discretionary bonus may be based on the specific accomplishments of the individual and/or on the overall performance of the Company. The amounts of the discretionary bonuses for 2023 were based on each employee’s individual performance and accomplishments, as well as those of the Company, including productivity, sales, controlling costs, and contributions made to special projects.
In either such case, the discretionary bonus may be based on the specific accomplishments of the individual and/or on the overall performance of the Company. The amounts of the discretionary bonuses for 2024 were based on each employee’s individual performance and accomplishments, as well as those of the Company, including productivity, sales, controlling costs, and contributions made to special projects.
All of the Company’s 2023 sales were made within the United States. Seasonality. The Company’s sales have typically reflected seasonal trends, with the largest percentage of total annual shipments and revenues normally being realized in the second and third quarters. Lower seasonal demand normally results in reduced shipments and revenues in the first and fourth quarters.
All of the Company’s 2024 sales were made within the United States. Seasonality. The Company’s sales have typically reflected seasonal trends, with the largest percentage of total annual shipments and revenues normally being realized in the second and third quarters. Lower seasonal demand normally results in reduced shipments and revenues in the first and fourth quarters.
The Company considers the four mining properties associated with Texas Lime, Batesville, Love Hollow, and St. Clair to be material for purposes of application of SEC Regulation S-K subpart 229.1300. Included in the description of each of these four Material Properties are disclosures with respect to such property’s limestone mineral resources and reserves.
The Company considers the four mining properties associated with Texas Lime, Batesville, Love Hollow, and St. Clair to be material for purposes of application of SEC Regulation S-K subpart 229.1300. Included in the description of each of these four 3 Table of Contents Material Properties are disclosures with respect to such property’s limestone mineral resources and reserves.
The Company, through its Lime and Limestone Operations, is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), roof shingle manufacturers, oil and gas services, and agriculture (including poultry producers) industries.
The Company is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), roof shingle manufacturers, agriculture (including poultry producers), and oil and gas services industries.
Based on the current level of production and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 65 years.
Based on the current level of production and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 70 years.
The Company is focused on the development and fair treatment of its employees, including equal employment hiring practices and policies, anti-harassment, and anti-retaliation policies. The Company is continuing to invest in efforts to create a more diverse and inclusive workforce and workplace environment. Competition.
The Company is focused on the development and fair treatment of its employees, including equal employment hiring practices and policies, anti-harassment, and anti-retaliation policies. The Company is continuing to invest in efforts to create a more diverse and inclusive workforce and workplace environment. 12 Table of Contents Competition.
Any failure to comply with these permits could result in fines or other penalties, and future changes that restrict the quantities of groundwater that may be pumped may increase compliance costs. ​ The Company incurred capital expenditures related to environmental matters of $1.5 million, $0.8 million, and $0.5 million in 2023, 2022, and 2021, respectively.
Any failure to comply with these permits could result in fines or other penalties, and future changes that restrict the quantities of groundwater that may be pumped may limit production and increase compliance costs. ​ The Company incurred capital expenditures related to environmental matters of $1.0 million, $1.5 million, and $0.8 million in 2024, 2023, and 2022, respectively.
Approximately 650 customers accounted for the Company’s sales of lime and limestone products during 2023. No single customer accounted for more than 10% of such sales. The Company is generally not subject to significant customer demand and credit risks as its customers are considerably diversified within its geographic region and by industry concentration.
Approximately 675 customers accounted for the Company’s sales of lime and limestone products during 2024. No single customer accounted for more than 10% of such sales. The Company is generally not subject to significant customer demand and credit risks as its customers are considerably diversified within its geographic region and by industry concentration.
Clair Mine - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Reserves (tons) Cutoff Grade Mining Recovery ​ Reserves (tons) Cutoff Grade Mining Recovery Proven Reserves 22,291 96.0(CaCO 3 ) 81% ​ 22,873 96.0(CaCO 3 ) 81% Probable Reserves - 96.0(CaCO 3 ) 81% ​ - 96.0(CaCO 3 ) 81% Total Mineral Reserves 22,291 96.0(CaCO 3 ) 81% ​ 22,873 96.0(CaCO 3 ) 81% ​ Carthage operates the Carthage Mine and has crushed limestone production facilities located on approximately 800 acres that it owns containing high-quality limestone.
Clair Mine - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Reserves (tons) Cutoff Grade Mining Recovery ​ Reserves (tons) Cutoff Grade Mining Recovery Proven Reserves 21,958 96.0(CaCO 3 ) 81% ​ 22,291 96.0(CaCO 3 ) 81% Probable Reserves - 96.0(CaCO 3 ) 81% ​ - 96.0(CaCO 3 ) 81% Total Mineral Reserves 21,958 96.0(CaCO 3 ) 81% ​ 22,291 96.0(CaCO 3 ) 81% ​ Carthage operates the Carthage Mine and has crushed limestone production facilities located on approximately 800 acres that it owns containing high-quality limestone.
In recent years, the lime industry has experienced reduced demand from certain industries as they experience cyclical or secular downturns. For example, demand from the Company’s steel and oil and gas services customers tends to vary with the demand for their products and services, which has continued to be cyclical.
In recent years, the lime industry has experienced reduced demand from certain industries as they have experienced cyclical or secular downturns. For example, demand from the Company’s steel and oil and gas services customers has tended to vary with the demand for their products and services, which has continued to be cyclical.
The Company’s recurring costs associated with managing environmental permitting and waste recycling and disposal (e.g., used oil and lubricants) and maintaining pollution control equipment amounted to $0.9 million, $0.4 million, and $0.7 million in 2023, 2022, and 2021, respectively. Mine Safety .
The Company’s recurring costs associated with managing environmental permitting and waste recycling and disposal (e.g., used oil and lubricants) and maintaining pollution control equipment amounted to $0.8 million, $0.9 million, and $0.4 million in 2024, 2023, and 2022, respectively. Mine Safety .
Based on forecasted production levels and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 80 years The following is a map of the Love Hollow Quarry: 7 Table of Contents ​ The tables below summarize the limestone mineral resources and reserves at the Love Hollow Quarry as of December 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ Love Hollow Quarry - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Resources (tons) Cutoff Grade Processing Recovery ​ Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources 10,392 96.0(CaCO 3 ) N/A ​ 10,392 96.0(CaCO 3 ) N/A Indicated Mineral Resources - - N/A ​ - - N/A Total Measured + Indicated Resources 10,392 96.0(CaCO 3 ) N/A ​ 10,392 96.0(CaCO 3 ) N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ Love Hollow Quarry - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Reserves (tons) Cutoff Grade Mining Recovery (1) ​ Reserves (tons) Cutoff Grade Mining Recovery (1) Proven Reserves 68,176 96.0(CaCO 3 ) 95%/75% ​ 68,442 96.0(CaCO 3 ) 95%/75% Probable Reserves 21,047 96.0(CaCO 3 ) 95%/75% ​ 21,047 96.0(CaCO 3 ) 95%/75% Total Mineral Reserves 89,223 96.0(CaCO 3 ) 95%/75% ​ 89,489 96.0(CaCO 3 ) 95%/75% (1) Mining recovery is listed as open-pit/underground recovery ​ St.
Based on forecasted production levels and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 80 years. ​ 7 Table of Contents The following is a map of the Love Hollow Quarry location: The tables below summarize the limestone mineral resources and reserves at the Love Hollow Quarry as of December 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ Love Hollow Quarry - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Resources (tons) Cutoff Grade Processing Recovery ​ Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources 10,392 96.0(CaCO 3 ) N/A ​ 10,392 96.0(CaCO 3 ) N/A Indicated Mineral Resources - - N/A ​ - - N/A Total Measured + Indicated Resources 10,392 96.0(CaCO 3 ) N/A ​ 10,392 96.0(CaCO 3 ) N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ Love Hollow Quarry - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Reserves (tons) Cutoff Grade Mining Recovery (1) ​ Reserves (tons) Cutoff Grade Mining Recovery (1) Proven Reserves 67,795 96.0(CaCO 3 ) 95%/75% ​ 68,176 96.0(CaCO 3 ) 95%/75% Probable Reserves 21,047 96.0(CaCO 3 ) 95%/75% ​ 21,047 96.0(CaCO 3 ) 95%/75% Total Mineral Reserves 88,842 96.0(CaCO 3 ) 95%/75% ​ 89,223 96.0(CaCO 3 ) 95%/75% (1) Mining recovery is listed as open-pit/underground recovery. 8 Table of Contents St.
These include maintenance and operating costs for pollution control equipment, the cost of ongoing monitoring and reporting programs, the cost of reclamation efforts, and other similar environmental costs and liabilities. ​ The Company’s operations are subject to various federal, state, and local laws and regulations relating to the environment, health and safety, and other regulatory matters, including the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act, and analogous state and local laws (“Environmental Laws”).
These include maintenance and operating costs for pollution control equipment, the cost of ongoing monitoring and reporting programs, the cost of reclamation efforts, and other similar environmental costs and liabilities. ​ The Company’s operations are subject to various federal, state, and local laws and regulations relating to the environment, health and safety, and other regulatory matters, including the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, the Emergency Planning and Community Right-to-Know Act, the Comprehensive Environmental Response, Compensation and Liability Act, and analogous state and local laws, including state mining and reclamation statutes and regulations (“Environmental Laws”).
The following is a map of the Texas Lime Quarry location: 4 Table of Contents The tables below summarize the limestone mineral resources and reserves at the Texas Lime Quarry as of December 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ Texas Lime Quarry - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Resources (tons) Cutoff Grade Processing Recovery ​ Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources - 96.0(CaCO 3 ) N/A ​ - 96.0(CaCO 3 ) N/A Indicated Mineral Resources - - N/A ​ - - N/A Total Measured + Indicated Resources - 96.0(CaCO 3 ) N/A ​ - 96.0(CaCO 3 ) N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ Texas Lime Quarry - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2023 as of December 31, 2022 Resource Category Reserves (tons) Cutoff Grade Mining Recovery ​ Reserves (tons) Cutoff Grade Mining Recovery Proven Reserves 59,989 96.0(CaCO 3 ) 95% ​ 61,564 96.0(CaCO 3 ) 95% Probable Reserves 47,532 96.0(CaCO 3 ) 95% ​ 47,532 96.0(CaCO 3 ) 95% Total Mineral Reserves 107,521 96.0(CaCO 3 ) 95% ​ 109,096 96.0(CaCO 3 ) 95% ​ Arkansas Lime owns the Batesville Quarry and has crushed limestone, PLS, quicklime, and hydrated lime production facilities, located on approximately 1,260 acres of land located in Independence County, Arkansas that contains known high- quality limestone mineral resources in a bed averaging 60 feet in thickness.
The following is a map of the Texas Lime Quarry location: 4 Table of Contents The tables below summarize the limestone mineral resources and reserves at the Texas Lime Quarry as of December 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ Texas Lime Quarry - Summary of Limestone Mineral Resources - Exclusive of Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Resources (tons) Cutoff Grade Processing Recovery ​ Resources (tons) Cutoff Grade Processing Recovery Measured Mineral Resources - 96.0(CaCO 3 ) N/A ​ - 96.0(CaCO 3 ) N/A Indicated Mineral Resources - - N/A ​ - - N/A Total Measured + Indicated Resources - 96.0(CaCO 3 ) N/A ​ - 96.0(CaCO 3 ) N/A ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Texas Lime Quarry - Summary of Limestone Mineral Reserves (in thousands of tons) as of December 31, 2024 as of December 31, 2023 Resource Category Reserves (tons) Cutoff Grade Mining Recovery ​ Reserves (tons) Cutoff Grade Mining Recovery Proven Reserves 58,233 96.0(CaCO 3 ) 95% ​ 59,989 96.0(CaCO 3 ) 95% Probable Reserves 47,532 96.0(CaCO 3 ) 95% ​ 47,532 96.0(CaCO 3 ) 95% Total Mineral Reserves 105,765 96.0(CaCO 3 ) 95% ​ 107,521 96.0(CaCO 3 ) 95% ​ ​ 5 Table of Contents Arkansas Lime owns the Batesville Quarry and has crushed limestone, PLS, quicklime, and hydrated lime production facilities, located on approximately 1,260 acres of land located in Independence County, Arkansas that contains known high- quality limestone mineral resources in a bed averaging 60 feet in thickness.
Lime slurry is used primarily in soil stabilization for highway, road and building construction. Product Sales. In 2023, the Company sold almost all of its lime and limestone products in the states of Arkansas, Arizona, Colorado, Illinois, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, and Texas.
Lime slurry is used primarily in soil stabilization for highway, road and building construction. Product Sales. In 2024, the Company sold almost all of its lime and limestone products in the states of Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Oklahoma, Tennessee, and Texas.
The Company’s competitors are predominantly private companies. 12 Table of Contents The lime industry is characterized by high barriers to entry, including: the scarcity of high-quality limestone deposits on which the required zoning and permitting for extraction can be obtained; the need for lime plants and facilities to be located close to markets, paved roads, and railroad networks to enable cost-effective production and distribution; clean air and anti-pollution regulations, including those related to greenhouse gas emissions, which make it more difficult to obtain permitting for new sources of emissions, such as lime kilns; and the high capital cost of the plants and facilities.
The lime industry is characterized by high barriers to entry, including: the scarcity of high-quality limestone deposits on which the required zoning and permitting for extraction can be obtained; the need for lime plants and facilities to be located close to markets, paved roads, and railroad networks to enable cost-effective production and distribution; clean air and anti-pollution regulations, including those related to greenhouse gas emissions, which make it more difficult to obtain permitting for new sources of emissions, such as lime kilns; and the high capital cost of the plants and facilities.
Based on the current levels of production and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 50 years. 8 Table of Contents The following is a map of the St. Clair Mine: ​ The tables below summarize the limestone mineral resources and reserves at the St.
Based on the current levels of production and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 48 years. The following is a map of the St. Clair Mine location: The tables below summarize the limestone mineral resources and reserves at the St.
The following table shows annual mined tons of limestone (in thousands) at the Company’s mining properties for the years ended December 31, 2023, 2022, and 2021: ​ ​ ​ ​ ​ ​ ​ Tons Mined ​ ​ (in thousands of tons) Mine/Location ​ 2023 2022 2021 Texas Lime Quarry ​ 1,575 1,610 1,421 Batesville Quarry ​ 785 1,017 898 Love Hollow Quarry ​ 266 57 - St.
The following table shows annual mined tons of limestone (in thousands) at the Company’s mining properties for the years ended December 31, 2024, 2023, and 2022: ​ ​ ​ ​ ​ ​ ​ Tons Mined ​ ​ (in thousands of tons) Mine/Location ​ 2024 2023 2022 Texas Lime Quarry ​ 1,450 1,575 1,610 Batesville Quarry ​ 601 785 1,017 Love Hollow Quarry ​ 413 266 57 St.
As of December 31, 2023, the St. Clair Mine had a net book value of $7.6 million. As of December 31, 2023, the St. Clair Mine had 7.8 million tons of measured limestone mineral resources, 129.7 million tons of indicated limestone mineral resources, and 22.3 million tons of proven limestone mineral reserves.
As of December 31, 2024, the St. Clair Mine had a net book value of $7.7 million. As of December 31, 2024, the St. Clair Mine had 7.8 million tons of measured limestone mineral resources, 129.7 million tons of indicated limestone mineral resources, and 22.0 million tons of proven limestone mineral reserves.
The Company has not conducted a drilling program on any of the Material Properties subsequent to the effective date of the 2021 TRSs. Updated resources and reserves have been calculated using a $12.70 per ton price assumption for crushed limestone based on the U.S. Geological Survey Mineral Commodity Summaries 2023.
The Company has not conducted a drilling program on any of the Material Properties subsequent to the December 31, 2023 effective date of the 2023 TRSs. In the 2023 TRSs, limestone resources and reserves were calculated using a $12.70 per ton price assumption for crushed limestone based on the U.S. Geological Survey Mineral Commodity Summaries 2023. The U.S.
In January 2023, under Section 112 of the Clean Air Act, the EPA proposed amendments to the National Emission Standards for Hazardous Air Pollutants (“NESHAPs”) for lime plants, which would revise the standards required to meet the maximum achievable control technology (“MACT”) at major sources of hazardous air pollutants within the lime industry.
In July 2024, under Section 112 of the Clean Air Act, the EPA finalized amendments to the National Emission Standards for Hazardous Air Pollutants (“NESHAPs”) for lime plants, which revise the standards required to meet the maximum achievable control technology (“MACT”) at major sources of hazardous air pollutants within the lime industry.
Clair (collectively, the “Material Properties”) and provide Technical Report 2 Table of Contents Summaries (“TRSs”) to file as Exhibits 96.1-96.4 to its Report on its Form 10-K for the year ended December 31, 2021.
Clair (collectively, the “Material Properties”) and provide Technical Report Summaries (“TRSs”) to file as Exhibits 96.1-96.4 to its Report on its Form 10-K for the year ended December 31, 2023.
Attracting, retaining, motivating, and investing in the development of human capital resources is a critical part of the Company’s commitment to environmental, social, and governance (“ESG”) and sustainability issues. At December 31, 2023, the Company employed 333 persons, 111 of whom were represented by unions. The Company is a party to three collective bargaining agreements.
Attracting, retaining, motivating, and investing in the development of human capital resources is a critical part of the Company’s commitment to environmental, social, and governance (“ESG”) and sustainability issues. 11 Table of Contents At December 31, 2024, the Company employed 345 persons, 114 of whom were represented by unions. The Company is a party to three collective bargaining agreements.
Clair Mine as of December 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ St.
Clair Mine as of December 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ St.
The lime industry is highly regionalized and competitive, with price, quality, ability to meet customer demands and specifications, proximity to customers, personal relationships, and timeliness of deliveries being the prime competitive factors.
The lime industry is highly regionalized and competitive, with price, quality, ability to meet customer demands and specifications, proximity to customers, personal relationships, and timeliness of deliveries being the prime competitive factors. The Company’s competitors are predominantly private companies.
As of December 31, 2023, the Batesville Quarry had a net book value of $4.1 million. As of December 31, 2023, the Batesville Quarry had 8.2 million tons of indicated limestone mineral resources, 7.4 million tons of proven limestone mineral reserves, and 3.5 million tons of probable limestone mineral reserves.
As of December 31, 2024, the Batesville Quarry had a net book value of $3.9 million. As of December 31, 2024, the Batesville Quarry had 8.2 million tons of indicated limestone mineral resources, 6.9 million tons of proven limestone mineral reserves, and 3.5 million tons of probable limestone mineral reserves.
As of December 31, 2023, the Love Hollow Quarry had a net book value of $4.9 million. As of December 31, 2023, the Love Hollow Quarry had 10.4 million tons of measured limestone mineral resources, 68.2 million tons of proven limestone mineral reserves, and 21.0 million tons of probable limestone mineral reserves.
As of December 31, 2024, the Love Hollow Quarry had a net book value of $5.4 million. As of December 31, 2024, the Love Hollow Quarry had 10.4 million tons of measured limestone mineral resources, 67.8 million tons of proven limestone mineral reserves, and 21.0 million tons of probable limestone mineral reserves.
(“ACT”), which owns the Love Hollow Quarry and is located near Cushman, Arkansas; and Mill Creek Dolomite, LLC (“Mill Creek”), acquired by the Company in February 2022, which operates the Mill Creek Quarry and is located near Mill Creek, Oklahoma. U.S. Lime Company-St. Clair (“St. Clair”) extracts limestone from the St.
(“ACT”), which owns the Love Hollow Quarry and is located near Cushman, Arkansas; and Mill Creek Dolomite, LLC (“Mill Creek”), which operates the Mill Creek Quarry and is located near Mill Creek, Oklahoma. U.S. Lime Company-St. Clair (“St. Clair”) extracts limestone from the St. Clair Mine, an underground mine located near Marble City, Oklahoma.
In 2015, the EPA issued a rule establishing the ground-level ozone NAAQS at 70 parts per billion. The EPA has proposed redesignating the Dallas-Fort Worth nonattainment area, which includes the Texas Lime facility, as severe under the 2008 standard 8-hour ozone classifications.
In 2015, the EPA issued a rule establishing the ground-level ozone NAAQS at 70 parts per billion. In 2024, the EPA redesignated the Dallas-Fort Worth nonattainment area, which includes the Texas Lime facility, as a severe nonattainment area under the 2008 ozone standard and a serious nonattainment area under the 2015 ozone standard.
Rather, the determination to pay a cash bonus, if any, is made in December each year based on the past performance of the individual and the Company or on the attainment of non-quantified performance goals during the year.
Byrne, the Company has not adopted a formal or informal annual bonus arrangement with pre-set performance goals. Rather, the determination to pay a cash bonus, if any, is made in December each year based on the past performance of the individual and the Company or on the attainment of non-quantified performance goals during the year.
As of December 31, 2023, the total net book value of the Texas Lime Quarry was $13.8 million. As of December 31, 2023, the Texas Lime Quarry had 60.0 million tons of proven limestone mineral reserves and 47.5 million tons of probable limestone mineral reserves.
As of December 31, 2024, the total net book value of the Texas Lime Quarry was $14.2 million. As of December 31, 2024, the Texas Lime Quarry had 58.2 million tons of proven limestone mineral reserves and 47.5 million tons of probable limestone mineral reserves.
Byrne is entitled each year to an EBITDA cash bonus opportunity under the United States Lime & Minerals, Inc. Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”), and he is also entitled to grants of equity awards under the Plan. Mr. Byrne’s employment agreement provides that Mr.
Under the employment agreement, in addition to the possibility of a discretionary cash bonus, Mr. Byrne is entitled each year to an EBITDA cash bonus opportunity under the United States Lime & Minerals, Inc. 2001 Long-Term Incentive Plan, as Amended and Restated (the “Plan”), and he is also entitled to grants of restricted stock under the Plan. Mr.
Limestone mineral resources as of December 31, 2022, have been recast from the prior year presentation to present as exclusive of limestone mineral reserves in order to conform to the current year presentation. ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Resources - Exclusive of Mineral Reserves - as of December 31, 2023, Based on $12.70 per Ton (in thousands of tons) ​ Measured Resources (tons) Cutoff Grade Indicated Resources (tons) Cutoff Grade ​ Measured + Indicated Resources (tons) Cutoff Grade 18,193 Above 96.0% (CaCO 3 ) 137,986 Above 96.0% (CaCO 3 ) ​ 156,179 Above 96.0% (CaCO 3 ) ​ ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Resources - Exclusive of Mineral Reserves - as of December 31, 2022, Based on $12.70 per Ton (in thousands of tons) ​ Measured Resources (tons) Cutoff Grade Indicated Resources (tons) Cutoff Grade ​ Measured + Indicated Resources (tons) Cutoff Grade 18,193 Above 96.0% (CaCO 3 ) 137,986 Above 96.0% (CaCO 3 ) ​ 156,179 Above 96.0% (CaCO 3 ) ​ ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Reserves as of December 31, 2023, Based on $12.70 per Ton (in thousands of tons) Proven Reserves (tons) Cutoff Grade Probable Reserves (tons) Cutoff Grade ​ Total Mineral Reserves (tons) Cutoff Grade 157,863 Above 96.0% (CaCO 3 ) 72,037 Above 96.0% (CaCO 3 ) ​ 229,900 Above 96.0% (CaCO 3 ) ​ ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Reserves as of December 31, 2022, Based on $12.70 per Ton (in thousands of tons) Proven Reserves (tons) Cutoff Grade Probable Reserves (tons) Cutoff Grade ​ Total Mineral Reserves (tons) Cutoff Grade 161,071 Above 96.0% (CaCO 3 ) 72,037 Above 96.0% (CaCO 3 ) ​ 233,108 Above 96.0% (CaCO 3 ) ​ Set forth below is a description of each of the Company’s limestone mining properties.
Limestone mineral resources are presented exclusive of limestone mineral reserves. ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Resources - Exclusive of Mineral Reserves - as of December 31, 2024, Based on $12.70 per Ton (in thousands of tons) ​ Measured Resources (tons) Cutoff Grade Indicated Resources (tons) Cutoff Grade ​ Measured + Indicated Resources (tons) Cutoff Grade 18,193 Above 96.0% (CaCO 3 ) 137,986 Above 96.0% (CaCO 3 ) ​ 156,179 Above 96.0% (CaCO 3 ) ​ ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Resources - Exclusive of Mineral Reserves - as of December 31, 2023, Based on $12.70 per Ton (in thousands of tons) ​ Measured Resources (tons) Cutoff Grade Indicated Resources (tons) Cutoff Grade ​ Measured + Indicated Resources (tons) Cutoff Grade 18,193 Above 96.0% (CaCO 3 ) 137,986 Above 96.0% (CaCO 3 ) ​ 156,179 Above 96.0% (CaCO 3 ) ​ ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Reserves as of December 31, 2024, Based on $12.70 per Ton (in thousands of tons) Proven Reserves (tons) Cutoff Grade Probable Reserves (tons) Cutoff Grade ​ Total Mineral Reserves (tons) Cutoff Grade 154,863 Above 96.0% (CaCO 3 ) 72,037 Above 96.0% (CaCO 3 ) ​ 226,900 Above 96.0% (CaCO 3 ) ​ ​ ​ ​ ​ ​ ​ ​ Summary of Total Limestone Mineral Reserves as of December 31, 2023, Based on $12.70 per Ton (in thousands of tons) Proven Reserves (tons) Cutoff Grade Probable Reserves (tons) Cutoff Grade ​ Total Mineral Reserves (tons) Cutoff Grade 157,863 Above 96.0% (CaCO 3 ) 72,037 Above 96.0% (CaCO 3 ) ​ 229,900 Above 96.0% (CaCO 3 ) ​ Set forth below is a description of each of the Company’s limestone mining properties.
These Environmental Laws grant the United States Environmental Protection Agency (the “EPA”) and state governmental agencies the authority to promulgate and enforce regulations that could result in substantial expenditures on pollution control, waste management, permitting compliance activities, and mining reclamation. Many Environmental Laws also authorize private citizens and interest groups to file lawsuits in court to enforce alleged violations.
These Environmental Laws grant the United States Environmental Protection Agency (the “EPA”), state governmental agencies, and local governments the authority to promulgate and enforce regulations that could result in substantial expenditures on pollution control, waste management, permitting compliance activities, and mining reclamation.
In addition, utility plants are continuing to use more natural gas and renewable sources for power generation instead of coal, with the permitting of new coal-fired utility plants becoming extremely difficult, which reduces their demand for lime and limestone for flue gas treatment processes.
In addition, utility plants have been using more natural gas and renewable sources for power generation instead of coal, with the permitting of new coal-fired utility plants having become extremely difficult, which has reduced their demand for lime and limestone for flue gas treatment processes.
The Company has not been named as a potentially responsible party in any federal superfund cleanup site or state-led cleanup site. 13 Table of Contents The rate of change of Environmental Laws continues to be rapid, and compliance can require significant expenditures.
The failure to comply with Environmental Laws may result in administrative and civil penalties, injunctive relief, and criminal prosecution. The Company has not been named as a potentially responsible party in any federal superfund cleanup site or state-led cleanup site. The rate of change of Environmental Laws continues to be rapid, and compliance can require significant expenditures.
Byrne is subject to certain forfeiture/clawback and share ownership provisions designed to align Mr. Byrne’s financial interests with those of the Company’s long-term shareholders, and to ensure that he is incentivized not to take actions that may benefit the Company and its shareholders in the short-term at the expense of long-term corporate value creation and sustainability.
Byrne’s financial interests with those of the Company’s long-term shareholders, and to ensure that he is incentivized not to take actions that may benefit the Company and its shareholders in the short-term at the expense of long-term corporate value creation and sustainability. In particular, in entering into the employment agreement with Mr.
The plant also has PLS equipment, which has the capacity to produce approximately 150 thousand tons of PLS annually. The Carthage plant has facilities located next to the Carthage Mine that produce both crushed limestone and PLS. The equipment has the capacity to produce approximately 900 thousand tons annually.
Clair plant has an annual capacity of approximately 250 thousand tons of quicklime from one vertical kiln and one preheater rotary kiln. The plant also has PLS equipment, which has the capacity to produce approximately 150 thousand tons of PLS annually. The Carthage plant has facilities located next to the Carthage Mine that produce both crushed limestone and PLS.
The Company also receives orders in response to bids that it prepares and submits to current and potential customers. 1 Table of Contents Principal customers for the Company’s lime and limestone products are construction customers (including highway, road, and building contractors), industrial customers (including paper manufacturers and glass manufacturers), metals producers (including steel producers), environmental customers (including municipal sanitation and water treatment facilities and flue gas treatment processes), roof shingle manufacturers, oil and gas services companies, and poultry producers.
Principal customers for the Company’s lime and limestone products are construction customers (including highway, road, and building contractors), industrial customers (including paper manufacturers and glass manufacturers), environmental customers (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals producers (including steel producers), roof shingle manufacturers, agriculture (including poultry producers), and oil and gas services companies.
The terms Mineral Resource, Measured Resources, Indicated Resources, Mineral Reserves, Proven Reserves, and Probable Reserves are defined in accordance with SEC Regulation S-K subpart 229.1300 governing disclosures by registrants engaged in mining operations. Limestone mineral resources are presented exclusive of limestone mineral reserves.
Summaries of the Company’s total limestone mineral resources and reserves for all Material Properties as of December 31, 2024 and 2023 are shown below. The terms Mineral Resource, Measured Resources, Indicated Resources, Mineral Reserves, Proven Reserves, and Probable Reserves are defined in accordance with SEC Regulation S-K subpart 229.1300 governing disclosures by registrants engaged in mining operations.
The Arkansas Lime plant is approximately 21 miles from the Love Hollow Quarry, to which it is connected by railroad. Arkansas Lime’s PLS and hydrating facilities are situated on a tract of 290 acres located approximately two miles from the Batesville Quarry, to which it is connected by a Company-owned railroad.
Arkansas Lime’s PLS and hydrating facilities are situated on a tract of 290 acres located approximately two miles from the Batesville Quarry, to which it is connected by a Company-owned railroad. The PLS equipment, depending on the product mix, has the capacity to produce approximately 300 thousand tons of PLS annually. The St.
The passage of climate change legislation, and other regulatory initiatives by the Congress, the states, or the EPA that restrict or tax emissions of greenhouse gases, could adversely affect the Company.
Future greenhouse gas rulemakings could affect New Source Review permitting or other permitting programs and, thereby, increase the time and costs of plant upgrades and expansions. The passage of climate change legislation, and other regulatory initiatives by the Congress, the states, or the EPA that restrict or tax emissions of greenhouse gases, could adversely affect the Company.
Lime Company (“US Lime”) uses quicklime to produce lime slurry, and has four Houston area facilities, including two distribution terminals connected to railroads, to serve the Greater Houston area construction market and four facilities to serve the Dallas-Ft. Worth Metroplex. The Company established U.S.
During 2024, the Company’s utilization rate was approximately 69% of its total annual production capacity for its lime and limestone. U.S. Lime Company uses quicklime to produce lime slurry, and has four Houston area facilities, including two distribution terminals connected to railroads, to serve the Greater Houston area construction market and four facilities to serve the Dallas-Ft. Worth Metroplex.
This regulation will significantly increase nonattainment areas across the United States, potentially including areas where the Company operates. States with delegated permitting authority under the Clean Air Act will be required to revise their SIPs accordingly.
In February 2024, the EPA issued a final rule reducing the NAAQS for fine particulate matter. This regulation will significantly increase nonattainment areas across the United States, potentially including areas where the Company operates. States with delegated permitting authority under the Clean Air Act will be required to revise their SIPs accordingly, which may involve more stringent permitting requirements.
Existing crushed limestone stockpiles on the property are being used to provide feedstock to the Company’s plant in Delta, Colorado. Access to all properties is provided by paved roads and, in the case of Arkansas Lime, St. Clair, Carthage, and Mill Creek, also by rail.
Access to all properties is provided by paved roads and, in the case of Arkansas Lime, St. Clair, Carthage, and Mill Creek, also by rail.
Clair Mine, an underground mine located near Marble City, Oklahoma. Carthage Crushed Limestone (“Carthage”) extracts limestone from the Carthage Mine, an underground mine located in Carthage, Missouri. Colorado Lime Company (“Colorado Lime”) owns property containing limestone deposits at Monarch Pass, Colorado.
Carthage Crushed Limestone (“Carthage”) extracts limestone from the Carthage Mine, an underground mine located in Carthage, Missouri. Colorado Lime Company (“Colorado Lime”) owns property containing limestone deposits at Monarch Pass, Colorado. Existing crushed limestone stockpiles on the property are being used to provide feedstock to the Company’s plant in Delta, Colorado.
Sales were made primarily by the Company’s ten sales employees who call on current and potential customers and solicit orders, which are generally made on a purchase-order basis.
Sales were made primarily by the Company’s eight sales employees who call on current and potential customers and solicit orders, which are 1 Table of Contents generally made on a purchase-order basis. The Company also receives orders in response to bids that it prepares and submits to current and potential customers.
Texas is in the process of developing regulations in response to the redesignations to reduce emissions of nitrogen oxides and volatile organic compounds, which will likely involve more stringent permitting requirements for stationary sources. In February 2024, the EPA issued a final rule reducing the NAAQS for fine particulate matter.
The EPA has set attainment dates of August 2027 for the 2008 ozone standard and July 2027 for the 2015 ozone standard. Texas is in the process of developing regulations in response to the redesignations to reduce emissions of nitrogen oxides and volatile organic compounds, which will likely involve more stringent permitting requirements for stationary sources.
For additional information with respect to the Material Properties, see the TRSs prepared by SYB, updated as of December 31, 2023, in Exhibits 96.1-96.4 to this Report on Form 10-K. 3 Table of Contents Texas Lime owns the Texas Lime Quarry and has crushed limestone, PLS, quicklime, and hydrated lime production facilities, located on approximately 5,200 acres of land in Johnson County, Texas that contains known high- quality limestone mineral resources in a bed averaging 25 to 35 feet in thickness.
Texas Lime owns the Texas Lime Quarry and has crushed limestone, PLS, quicklime, and hydrated lime production facilities, located on approximately 5,200 acres of land in Johnson County, Texas that contains known high- quality limestone mineral resources in a bed averaging 25 to 35 feet in thickness.
In particular, in entering into the employment agreement with Mr. Byrne, the Company’s Board of Directors and Compensation Committee were sensitive to how Mr. Byrne’s leadership and actions could further the Company’s various objectives, including human capital resources development and executive succession planning.
Byrne, the Company’s Board of Directors and Compensation Committee were sensitive to how Mr. Byrne’s leadership and actions could further the Company’s various objectives, including human capital resources development and executive succession planning. With respect to the Company’s broader employee base, certain employees are eligible to receive annual cash bonuses based on discretionary determinations. Except in the case of Mr.
ITEM 1. BUSINES S. General. United States Lime & Minerals, Inc. (the “Company,” the “Registrant,” “We” or “Our”), which was incorporated in 1950, conducts its business primarily through its Lime and Limestone Operations segment. The Company’s Other operations relate to its natural gas interests. The Company’s principal corporate office is located at 5429 LBJ Freeway, Suite 230, Dallas, Texas 75240.
ITEM 1. BUSINES S. General. United States Lime & Minerals, Inc. (the “Company,” the “Registrant,” “We” or “Our”), which was incorporated in 1950, conducts its business primarily through its lime and limestone operations. The Company also has natural gas interests with respect to oil and gas rights in Johnson County, Texas.
The Company engaged SYB Group, LLC (“SYB”) to serve as the Qualified Person (“QP”) to prepare estimates of the Company’s limestone mineral resources and reserves, as of December 31, 2021, at its quarries and mines at Texas Lime, Batesville, Love Hollow, and St.
Clair Mine ​ 466 477 533 Carthage Mine ​ 671 625 645 Mill Creek Quarry ​ 250 169 162 Total Production ​ 3,851 3,897 4,024 ​ ​ ​ ​ ​ ​ ​ 2 Table of Contents During 2023, the Company engaged SYB Group, LLC (“SYB”) to serve as the Qualified Person (“QP”) to update estimates of the Company’s limestone mineral resources and reserves, as of December 31, 2023, at its quarries and mines at Texas Lime, Batesville, Love Hollow, and St.
The plant also has PLS equipment, which, depending on the product mix, has the capacity to produce approximately 800 thousand tons of PLS annually. The Arkansas Lime plant is situated at the Batesville Quarry. Utilizing three preheater rotary kilns, this plant has an annual capacity of approximately 650 thousand tons of quicklime.
Utilizing three preheater rotary kilns, this plant has an annual capacity of approximately 650 thousand tons of quicklime. The Arkansas Lime plant is approximately 21 miles from the Love Hollow Quarry, to which it is connected by railroad.
The Company believes its accrual of $1.5 million for AROs at December 31, 2023 is reasonable. Map of United States Lime & Minerals, Inc. Lime and Limestone Operations. ​ ​ Other. The Company’s Other operations, consisting of its natural gas interests, are conducted through its wholly owned subsidiary, U.S. Lime Company – O&G, LLC (“U.S.
The Company believes its accrual of $1.5 million for AROs at December 31, 2024 is reasonable. Map of United States Lime & Minerals, Inc. Lime and Limestone Operations. ​ ​ ​ 16 Table of Contents
The agreement for the Arkansas facilities expires in January 2029. Overall, the Company believes that its employee relations are generally good. Employee Retention and Incentivization. The Company has entered into an employment agreement with Timothy W. Byrne, its President and Chief Executive Officer. Mr.
The collective bargaining agreement for the Carthage facilities expires in May 2025. The collective bargaining agreement for the Texas facilities expires in November 2026. The collective bargaining agreement for the Arkansas facilities expires in January 2029. Overall, the Company believes that its employee relations are generally good. Employee Retention and Incentivization.
The proposed MACT rule would establish stringent emission limitations for four hazardous air pollutants which will require additional pollution control equipment at lime kilns subject to the rule.
The revised MACT rule establishes stringent emission limitations for additional hazardous air pollutants which require additional pollution control equipment at lime kilns subject to the rule. EPA regulations require large emitters of greenhouse gases, including the Company’s plants, to collect and report greenhouse gas emissions data.
Byrne’s employment agreement became effective as of January 1, 2020 for a five-year term and will continue for successive one-year periods unless the Company or Mr. Byrne gives at least one-year’s prior written notice of intent not to renew. Under the employment agreement, in addition to the possibility of a discretionary cash bonus, Mr.
The Company has entered into a new employment agreement with Timothy W. Byrne, its President and Chief Executive Officer (“CEO”). Mr. Byrne’s employment agreement has been extended until December 31, 2028 and will continue thereafter for successive one-year periods unless the Company or Mr. Byrne gives at least one year’s prior written notice of intent not to renew.
Changes in policy or political leadership may affect how Environmental Laws are interpreted or enforced by the EPA and state governmental agencies. The failure to comply with Environmental Laws may result in administrative and civil penalties, injunctive relief, and criminal prosecution.
Many Environmental Laws also authorize private citizens and interest groups to file lawsuits in court to enforce alleged violations. Changes in policy or political 13 Table of Contents leadership may affect how Environmental Laws are interpreted or enforced by the EPA and state governmental agencies.
The PLS equipment, depending on the product mix, has the capacity to produce approximately 300 thousand tons of PLS annually. The St. Clair plant has an annual capacity of approximately 250 thousand tons of quicklime from one vertical kiln and one preheater rotary kiln.
The plant also has PLS equipment, which, depending on the product mix, has the capacity to produce approximately 800 thousand tons of PLS annually. In 2024, we received the necessary permit to construct a new vertical kiln at the Texas Lime plant.
Updates to the TRSs did not have a material effect on any of the Company’s mineral resources or reserves. Summaries of the Company’s total limestone mineral resources and reserves for all Material Properties as of December 31, 2023 and 2022 are shown below.
Geological Survey Mineral Commodity Summaries 2024 increased the price to $14.15 per ton, but the QP has determined that this change in price did not have a material impact on the calculation of the reserves and resources and that all material assumptions and information from the TRSs for Material Properties as of December 31, 2023 remain current as of December 31, 2024.
Removed
The Company’s telephone number is (972) 991-8400 and its internet address is www.uslm.com.
Added
In 2024, the Company determined that the activities of its natural gas interests did not meet the definition of an operating segment and has updated the disclosures in this Form 10-K accordingly. Disclosures for the years ended December 31, 2023 and 2022 have been recast to be consistent with the current year presentation.
Removed
Clair Mine ​ 477 533 414 Carthage Mine ​ 625 645 687 Mill Creek Quarry (1) ​ 169 162 N/A Total Production ​ 3,897 4,024 3,420 ​ ​ ​ ​ ​ (1) The Company acquired Mill Creek in February 2022. Tons mined only include production subsequent to the acquisition.
Added
See Note 9 of the Notes to Consolidated Financial Statements in Item 8 of this Report on Form 10-K. The Company’s principal corporate office is located at 5429 LBJ Freeway, Suite 230, Dallas, Texas 75240. The Company’s telephone number is (972) 991-8400 and its internet address is www.uslm.com.
Removed
During 2023, the Company engaged SYB to update its TRSs for the Material Properties as of December 31, 2023, primarily to update economic assumptions, including costs and recovery rates, and extend the point of reference to include the respective crushing circuits at each site.
Added
The Company has not asked the QP to produce updated TRSs as of December 31, 2024, and it has continued to present limestone and mineral resources and reserves for all Material Properties using the 2023 $12.70 per ton price assumption for crushed limestone.
Removed
During 2023, the Company’s utilization rate was approximately 66% of its total annual production capacity for the plants in its Lime and Limestone Operations. U.S.
Added
For additional information with respect to the Material Properties, see the TRSs prepared by SYB, updated as of December 31, 2023, in Exhibits 96.1-96.4 to this Report on Form 10-K.
Removed
The collective bargaining agreement for the Texas facilities expires in November 2026. The collective bargaining agreement for the Carthage facilities expires in May 2025. The Company successfully negotiated a new collective bargaining agreement for the Arkansas facilities in 11 Table of Contents February 2024, which has been ratified by the union.
Added
Based on forecasted production levels and recovery rates, the Company estimates that these reserves are sufficient to sustain its limestone operations for approximately 18 years.
Removed
With respect to the Company’s broader employee base, certain employees are eligible to receive annual cash bonuses based on discretionary determinations. Except in the case of Mr. Byrne, the Company has not adopted a formal or informal annual bonus arrangement with pre-set performance goals.
Added
We estimate that the construction costs of the new kiln and related equipment and infrastructure will total approximately $65 million. Through December 2024, we have incurred $1.6 million and have outstanding purchase obligations of $31.7 million. The Arkansas Lime plant is situated at the Batesville Quarry.

… 11 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

21 edited+2 added−3 removed32 unchanged
Biggest changeOur financial condition, results of operations, cash flows, and competitive position could be materially adversely impacted by pandemics, epidemics, or disease outbreaks, such as the COVID-19 pandemic . Disruptions caused by pandemics, epidemics, or disease outbreaks, such as COVID-19, could materially adversely impact our financial condition, results of operations, cash flows, and competitive position.
Biggest changeDisruptions caused by pandemics, epidemics, or disease outbreaks could materially adversely impact our financial condition, results of operations, cash flows, and competitive position. New or future variants of COVID-19, respiratory syncytial virus, bird flu, or other pandemics, epidemics, or disease outbreaks and governmental responses to such events could similarly disrupt our business and operations.
ITEM 1A. RISK FACTOR S. Industry Risks Our Lime and Limestone Operations are affected by general economic conditions in the United States and specific economic conditions in particular industries . General and industry specific economic conditions in the United States could lead to reduced demand for our lime and limestone products.
ITEM 1A. RISK FACTOR S. Industry Risks Our operations are affected by general economic conditions in the United States and specific economic conditions in particular industries . General and industry specific economic conditions in the United States could lead to reduced demand for our lime and limestone products.
These risks arise from various factors, including, but not limited to, fluctuating demand and prices for our lime and limestone products, including as a result of downturns in the economy and in the construction, industrial, steel, and oil and gas services industries, and reduced demand from coal-fired utility plants, increased competitive pressures from other lime producers, changes in inflationary expectations, changes in legislation and regulations, including Environmental Laws, health and safety regulations, and requirements to renew or obtain operating permits, our ability to produce and store quantities of lime and limestone products sufficient in amount and quality to meet customer demands and specifications, the success of our modernization, expansion and development, and acquisition strategies, the uncertainty of our ability to sell our increased production capacity at acceptable prices, our ability to execute our strategies and complete projects on time and within budget, our ability to integrate, refurbish, and/or improve acquired facilities, our access to capital, volatile costs, especially energy costs, inclement weather and the effects of seasonal trends.
These risks arise from various factors, including, but not limited to, fluctuating demand and prices for our lime and limestone products, including as a result of downturns in the economy and in the construction, industrial, steel, and oil and gas services industries, and reduced demand from coal-fired utility plants, increased competitive pressures from other lime producers, changes in inflationary expectations, changes in legislation and regulations, including Environmental Laws, health and safety regulations, and requirements to renew or obtain operating permits, our ability to produce and store quantities of lime and limestone products sufficient in amount and quality to meet customer demands and specifications, the success of our modernization, expansion and development, and acquisition strategies, the uncertainty of our ability to sell any increased production capacity at acceptable prices, our ability to execute our strategies and complete projects on time and within budget, our ability to integrate, refurbish, and/or improve acquired facilities, our access to capital, volatile costs, especially energy costs, inclement weather and the effects of seasonal trends.
To the extent any such cybersecurity threat or incident results in disruption to our operations or sales or loss or disclosure of, or damage to, our data or confidential information, our costs could increase, and our reputation, business, results of operations, competitive position, and financial condition could be materially adversely affected.
To the extent any such cybersecurity failure, threat, or incident results in disruption to our operations or sales or loss or disclosure of, or damage to, our data or confidential information, our costs could increase, and our reputation, business, results of operations, competitive position, and financial condition could be materially adversely affected.
In addition, a variety of factors, including uncertainty with respect to governmental fiscal and budgetary constraints, including the timing and amount of construction and infrastructure spending, changes to tax laws, legislative impasses, extended government shutdowns, fallout from downgrades and potential U.S. government defaults on its obligations, pandemics, trade wars, tariffs, social unrest, international incidents, and increased inflationary pressures and interest rates, could have a material adverse effect on our financial condition, results of operations, cash flows, and competitive position.
A variety of factors, including uncertainty with respect to governmental fiscal and budgetary constraints, including the timing and amount of construction and infrastructure spending, changes to tax laws, legislative impasses, extended government shutdowns, fallout from downgrades and potential U.S. government defaults on its obligations, pandemics, trade wars, tariffs, social unrest, international incidents, and increased inflationary pressures and interest rates, could have a material adverse effect on our financial condition, results of operations, cash flows, and competitive position.
These include geological formation problems that may cause poor mining conditions, variability of chemical or physical properties of our limestone, an accident or other major incident at a site that may cause all or part of our operations to cease for some period of time and increase our expenses, mining, processing, and plant equipment failures and unexpected maintenance problems that may cause disruptions and added expenses, strikes, job actions, or other work stoppages that may disrupt our operations or those of our suppliers, contractors, or customers and increase our expenses, and adverse weather conditions and natural disasters, such as hurricanes, tornadoes, excessive rains, flooding, ice storms, freezing weather, drought, and other natural events, that may affect operations, transportation, fuel supply, or customers.
These include geological formation problems that may cause poor mining conditions, variability of chemical or physical properties of our limestone, an accident or other major incident at a site that may cause all or part of our operations to cease for some period of time and increase our expenses, mining, processing, and plant equipment failures and unexpected maintenance problems that may cause disruptions and added expenses, strikes, job actions, or other work stoppages that may disrupt our operations or those of our suppliers, contractors, or customers and increase our expenses, and adverse weather conditions and natural disasters, such as hurricanes, tornadoes, excessive rains, flooding, ice storms, freezing weather, drought, wild fires, earthquakes, and other natural events, that may affect operations, transportation, fuel supply, or our suppliers, contractors, or customers.
Business and Financial Risks In the normal course of our Lime and Limestone Operations, we face various business and financial risks, including increased energy, labor, and parts and supplies costs, that could have a material adverse effect on our financial position, results of operations, cash flows, and competitive position. Not all risks are foreseeable or within our ability to control.
Business and Financial Risks In the normal course of our operations, we face various business and financial risks, including increased energy, labor, and parts and supplies costs, that could have a material adverse effect on our financial position, results of operations, cash flows, and competitive position. Not all risks are foreseeable or within our ability to control.
Because many of the requirements are subjective and therefore not quantifiable or presently determinable, or may be affected by additional legislation and rulemaking, including those related to climate change and greenhouse gas emissions, there is no assurance that we will be able to successfully secure new permits in connection with our future modernization and expansion and development projects, and it is not possible to accurately predict the aggregate future costs and liabilities relating to environmental compliance and their effect on our financial condition, results of operations, cash flows, and competitive position. ​ Our lime and limestone operations are subject to various mine safety and reclamation and remediation obligations. ​ Our mining operations are subject to mine safety regulation under the Mine Act.
Because many of the requirements are subjective and therefore not quantifiable or presently determinable, or may be affected by additional legislation and rulemaking, including those related to climate change and greenhouse gas emissions, there is no assurance that we will be able to successfully secure new permits in connection with our future modernization and expansion and development projects, and it is not possible to accurately predict the aggregate future costs and liabilities relating to environmental compliance and their effect on our financial condition, results of operations, cash flows, and competitive position. 20 Table of Contents ​ Our operations are subject to various mine safety and reclamation and remediation obligations. ​ Our mining operations are subject to mine safety regulation under the Mine Act.
We incur environmental compliance costs and liabilities in our Lime and Limestone Operations, including capital, maintenance, and operating costs, with respect to pollution control equipment, the cost of ongoing monitoring programs, the cost of reclamation and remediation efforts, and other similar costs and liabilities relating to our compliance with Environmental Laws.
We incur environmental compliance costs and liabilities in our operations, including capital, maintenance, and operating costs, with respect to pollution control equipment, the cost of ongoing monitoring programs, the cost of reclamation and remediation efforts, and other similar costs and liabilities relating to our compliance with Environmental Laws.
Recent events, such as the ongoing conflicts in Ukraine, Israel, and the broader Middle East, and the sanctions and other actions resulting therefrom, could further increase our energy costs.
Recent events, such as the ongoing conflicts in Ukraine and the Middle East, and the sanctions and other actions resulting therefrom, could further increase our energy costs.
For example, our utility customers are continuing to switch from coal to natural gas or renewable sources for power generation for environmental and regulatory as well as cost reasons, thus reducing demand for our lime and limestone products for flue gas treatment processes. ​ 20 Table of Contents We intend to comply with all Environmental Laws and believe our accrual for environmental costs and liabilities at December 31, 2023 is reasonable.
For example, our utility customers are continuing to switch from coal to natural gas or renewable sources for power generation for environmental and regulatory as well as cost reasons, thus reducing demand for our lime and limestone products for flue gas treatment processes. ​ We intend to comply with all Environmental Laws and believe our accrual for environmental costs and liabilities at December 31, 2024 is reasonable.
Given current and projected demand for lime and limestone products, we cannot guarantee that any such project or acquisition would be successful, that we would be able to sell any resulting increased production at acceptable prices, or that any such sales would be profitable.
Given current and projected demand for lime 18 Table of Contents and limestone products, we cannot guarantee that any such project or acquisition would be successful, that we would be able to sell any resulting increased production at acceptable prices, or that any such sales would be profitable.
A pandemic, epidemic, or disease outbreak may limit our ability to produce, sell, and deliver our lime and limestone products to our customers; cause key management and plant-level employees not to be available to us; result in mine and plant shutdowns due to 19 Table of Contents contagion, in which case we may not be able to shift production to our other mines and plants; cause delays and disruptions to our supply chain as it relates to our suppliers, as well as delay and disrupt the supply chains of our customers; impede our ability to maintain and repair our plants and equipment; negatively impact our modernization, expansion, and development plans; negatively impact our ability to integrate acquisitions; as well as adversely impact demand and prices for our lime and limestone products and increase our costs.
A pandemic, epidemic, or disease outbreak may limit our ability to produce, sell, and deliver our lime and limestone products to our customers; cause key management and plant-level employees not to be available to us; result in mine and plant shutdowns due to contagion, in which case we may not be able to shift production to our other mines and plants; cause delays and disruptions to our supply chain as it relates to our suppliers, as well as delay and disrupt the supply chains of our customers; impede our ability to maintain and repair our plants and equipment; negatively impact our modernization, expansion, and development plans; negatively impact our ability to integrate acquisitions; as well as adversely impact demand and prices for our lime and limestone products and increase our costs. 19 Table of Contents Governmental, Legal, and Regulatory Risks Our operations are subject to general and industry specific regulations.
Our mining and other operations are subject to operating risks that are beyond our control, which could result in materially increased operating expenses and decreased production and shipment levels that could materially adversely affect our Lime and Limestone Operations and their profitability.
Our mining and other operations are subject to operating risks that are beyond our control, which could result in materially increased operating expenses and decreased production and shipment levels that could materially adversely affect our operations and their profitability. We mine limestone in open-pit and underground mining operations and process and distribute that limestone through our plants and other facilities.
When diesel prices increase, we incur additional fuel surcharges from freight companies that cannot be passed on to our customers that have been quoted a delivered price.
When diesel prices increase, we incur additional fuel surcharges from freight companies that cannot be passed on to our customers that have been quoted a delivered price. Material increases in the price of diesel could have a material adverse effect on the Company’s profitability.
The current Administration has signaled its intent to increase regulation under Environmental Laws and has issued multiple executive orders reversing prior deregulation. We expect our expenditure requirements for future environmental compliance, including complying with nitrogen dioxide, sulfur dioxide, ozone, and particulate matter emission under the NAAQS and regulation of greenhouse gas emissions, to continue or increase.
We expect our expenditure requirements for future environmental compliance, including complying with nitrogen dioxide, sulfur dioxide, ozone, and particulate matter emission under the NAAQS and regulation of greenhouse gas emissions, to continue or increase.
Additionally, should we experience a cybersecurity incident, we may incur substantial costs, including remediation costs, such as liability for stolen assets or information, repairs of system damage, legal expenses, and losses and costs associated with regulatory actions.
Additionally, should we experience a cybersecurity incident, we may incur substantial costs, including remediation costs, such as liability for stolen assets or information, repairs of system damage, legal expenses, and losses and costs associated with regulatory actions. Our financial condition, results of operations, cash flows, and competitive position could be materially adversely impacted by pandemics, epidemics, or disease outbreaks.
We mine limestone in open-pit and underground mining operations and process and distribute that limestone through our plants and other facilities. Certain factors beyond our control could disrupt our operations, adversely affect production and shipments, and increase our operating costs, all of which could have a material adverse effect on our results of operations.
Certain factors beyond our control could disrupt our operations, adversely affect production and shipments, and increase our operating costs, all of which could have a material adverse effect on our results of operations.
Discovery of currently unknown conditions and unforeseen costs and liabilities could require additional expenditures. ​ The regulation of greenhouse gas emissions remains an issue for us and some of our customers. In February 2021, the current Administration rejoined the Paris Agreement, under which the United States committed to reduce greenhouse gas emissions.
Discovery of currently unknown conditions and unforeseen costs and liabilities could require additional expenditures. ​ The regulation of greenhouse gas emissions remains an issue for us and some of our customers.
Material increases in the price of diesel could have a material adverse effect on the Company’s profitability. 18 Table of Contents To maintain our competitive position in the lime and limestone industry, we may need to continue to increase the efficiency of our operations, expand production capacity, and sell any resulting increased production at acceptable prices.
To maintain our competitive position in the lime and limestone industry, we may need to continue to increase the efficiency of our operations, expand production capacity, and sell any resulting increased production at acceptable prices. We have undertaken a new kiln project at Texas Lime. We may in the future undertake additional modernization and expansion and development projects and acquisitions.
We are in a period of economic and regulatory uncertainty, which has been heightened by the current divides in the branches of the United States federal government and the upcoming federal elections.
Changes to the regulatory environment could increase our cost of compliance and adversely impact our financial condition, r esults of operations, cash flows, and competitive position . We are in a period of economic and regulatory uncertainty, which has been heightened by the current divides and changes in the branches of the United States federal government.
Removed
We have in the past, and may in the future, undertake additional modernization and expansion and development projects and acquisitions.
Added
Similarly, any failure, threat, or incident involving the IT systems of our suppliers, contractors, or customers could adversely impact our operations and financial results.
Removed
The COVID-19 pandemic had an impact on our business and operations, particularly as it related to rising costs and supply chain delays and disruptions. New or future variants of the COVID-19 virus or other pandemics, epidemics, or disease outbreaks and governmental responses to such events could similarly disrupt our business and operations.
Added
In addition, the new Administration has communicated a desire to use tariffs as a means of policy implementation which could have an impact on the cost and availability of some of our supplies and those of our customers.
Removed
Governmental, Legal, and Regulatory Risks Our Lime and Limestone Operations are subject to general and industry specific regulations. Changes to the regulatory environment could increase our cost of compliance and adversely impact our financial condition, r esults of operations, cash flows, and competitive position .

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+0 added−0 removed11 unchanged
Biggest changeOur CFO and MIT regularly report to and review our cybersecurity processes with the Audit Committee, with formal cybersecurity reviews with the Committee generally occurring at least annually, and sometimes more frequently, as appropriate. ​
Biggest changeOur MIT regularly reports to and reviews our cybersecurity processes with the Audit Committee, with formal cybersecurity reviews with the Committee generally occurring at least annually, and sometimes more frequently, as appropriate. ​
Our CFO is informed about and facilitates prevention, detection, mitigation, and remediation efforts through regular communication and reporting from the professionals on our cybersecurity team.
Our CFO is informed about and coordinates prevention, detection, mitigation, and remediation efforts through regular communication and reporting from the professionals on our cybersecurity team.
In addition, we have an escalation process in place to inform our Chief Executive Officer and other members of our senior management and, if necessary, the Audit Committee and Board of Directors, of important issues or events. ​ Our Audit Committee has oversight of our cybersecurity risk processes, as part of its overall oversight of our risk management program.
In addition, we have an escalation process in place to inform our CEO and other members of our senior management and, if necessary, the Audit Committee and Board of Directors, of important issues or events. ​ Our Audit Committee has oversight of our cybersecurity risk processes, as part of its overall oversight of our risk management program.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

4 edited+0 added−0 removed1 unchanged
Biggest changeThe Company seeks to accomplish this by: training employees in safe work practices; openly communicating with employees; following safety standards and establishing and improving safe work practices; involving employees in safety processes; and recording, reporting, and investigating accidents, incidents, and losses to avoid reoccurrence. 22 Table of Contents Following passage of the Mine Improvement and New Emergency Response Act of 2006, MSHA significantly increased the enforcement of mining safety and health standards on all aspects of mining operations.
Biggest changeThe Company seeks to accomplish this by: training employees in safe work practices; openly communicating with employees; following safety standards and establishing and improving safe work practices; involving employees in safety processes; and recording, reporting, and investigating accidents, incidents, and losses to avoid reoccurrence.
The operation of the Company’s quarries, underground mine, and plants is subject to regulation by MSHA. The required information regarding certain mining safety and health matters, broken down by mining complex, for the year ended December 31, 2023 is presented in Exhibit 95.1 to this Report on Form 10-K.
The operation of the Company’s quarries, underground mine, and plants is subject to regulation by MSHA. The required information regarding certain mining safety and health matters, broken down by mining complex, for the year ended December 31, 2024 is presented in Exhibit 95.1 to this Report on Form 10-K.
As discussed in Item 1 above, the Company believes it is responsible to employees to provide a safe and healthy workplace environment.
As discussed in Item 1 above, the Company believes it is responsible to its employees to provide a safe and healthy workplace environment.
There has also been an increase in the dollar penalties assessed for citations and orders issued in recent years. PART II
Following passage of the Mine Improvement and New Emergency Response Act of 2006, MSHA significantly 22 Table of Contents increased the enforcement of mining safety and health standards on all aspects of mining operations. There has also been an increase in the dollar penalties assessed for citations and orders issued in recent years. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−0 removed0 unchanged
Biggest changeLIME & MINERALS, INC. 100.00 135.07 171.77 195.29 214.51 352.51 ​ NASDAQ COMPOSITE INDEX 100.00 136.69 198.10 242.03 163.28 236.17 ​ PEER GROUP ​ 100.00 ​ 148.39 ​ 151.73 ​ 246.83 ​ 192.64 ​ 271.19 ​ ​ The Plan allows employees and directors to pay the exercise price upon the exercise of stock options and the tax withholding liability upon exercise of stock options or the lapse of restrictions on restricted stock by payment in cash and/or withholding or delivery of shares of the Company’s common stock to the Company.
Biggest changeLIME & MINERALS, INC. 100.00 127.17 144.58 158.81 260.98 753.94 ​ NASDAQ COMPOSITE INDEX 100.00 144.92 177.06 119.45 172.77 223.87 ​ PEER GROUP ​ 100.00 ​ 102.26 ​ 166.34 ​ 129.82 ​ 182.76 ​ 224.41 ​ ​ SHARE REPURCHASES. ​ The Plan allows employees and directors to pay the exercise price upon the exercise of stock options and the tax withholding liability upon exercise of stock options or the lapse of restrictions on restricted stock by payment in cash and/or withholding or delivery of shares of the Company’s common stock to the Company.
As of February 27, 2024, the Company had 500,000 shares of $5.00 par value preferred stock authorized; however, none has been issued. 23 Table of Contents PERFORMANCE GRAPH The graph below compares the cumulative 5-year total shareholders’ return on the Company’s common stock with the cumulative total return on the NASDAQ Composite Index and a customized peer group index consisting of Eagle Materials, Inc., Mineral Technologies, Inc., and Summit Materials Inc.
As of February 25, 2025, the Company had 500,000 shares of $5.00 par value preferred stock authorized; however, none has been issued. 23 Table of Contents PERFORMANCE GRAPH The graph below compares the cumulative 5-year total shareholders’ return on the Company’s common stock with the cumulative total return on the NASDAQ Composite Index and a customized peer group index consisting of Eagle Materials, Inc., Mineral Technologies, Inc., and Summit Materials Inc.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUIT Y, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s common stock is listed on the Nasdaq Global Market ® under the symbol “USLM.” As of February 27, 2024, the Company had approximately 350 shareholders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUIT Y, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s common stock is listed on the Nasdaq Global Market ® under the symbol “USLM.” As of February 25, 2025, the Company had approximately 350 shareholders of record.
The graph assumes that the value of the investment in the Company’s common stock and each index was $100 on December 31, 2018, and that all cash dividends, including the special cash dividend paid in the fourth quarter 2019, have been reinvested. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2018 2019 2020 2021 2022 2023 U.S.
The graph assumes that the value of the investment in the Company’s common stock and each index was $100 on December 31, 2019, and that all cash dividends have been reinvested. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 2020 2021 2022 2023 2024 U.S.
Pursuant to these provisions, the Company repurchased 4,918 shares at a price of $230.35 per share, the fair market value of one share on the date they were tendered to the Company, in the fourth quarter 2024 for payment of tax withholding liability upon the lapse of restrictions on restricted stock. ​ ITEM 6. [RESERVED ] ​ 24 Table of Contents
Pursuant to these provisions, the Company repurchased 24,593 shares at a price of $135.58 per share, the fair market value of one share on the date that they were tendered to the Company, in the fourth quarter 2024 for payment of tax withholding liability upon the lapse of restrictions on restricted stock. ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

53 edited+4 added−18 removed26 unchanged
Biggest changeSummary of Quarterly Financial Data (dollars in thousands except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, Revenues ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 66,538 ​ $ 73,688 ​ $ 74,582 ​ $ 65,394 ​ Other ​ 239 ​ 295 ​ 296 ​ 298 ​ ​ ​ $ 66,777 ​ $ 73,983 ​ $ 74,878 ​ $ 65,692 ​ Gross profit (loss) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 24,058 ​ $ 27,121 ​ $ 28,160 ​ $ 23,566 ​ Other ​ (66) ​ 10 ​ (5) ​ 23 ​ ​ ​ $ 23,992 ​ $ 27,131 ​ $ 28,155 ​ $ 23,589 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 17,104 ​ $ 19,712 ​ $ 20,733 ​ $ 17,000 ​ Basic income per common share ​ $ 3.01 ​ $ 3.46 ​ $ 3.64 ​ $ 2.98 ​ Diluted income per common share ​ $ 3.00 ​ $ 3.45 ​ $ 3.63 ​ $ 2.98 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, Revenues ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 50,296 ​ $ 59,613 ​ $ 65,699 ​ $ 57,813 ​ Other ​ 613 ​ 879 ​ 758 ​ 479 ​ ​ ​ $ 50,909 ​ $ 60,492 ​ $ 66,457 ​ $ 58,292 ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone operations ​ $ 14,197 ​ $ 15,975 ​ $ 22,166 ​ $ 16,613 ​ Other ​ 270 ​ 506 ​ 424 ​ 191 ​ ​ ​ $ 14,467 ​ $ 16,481 ​ $ 22,590 ​ $ 16,804 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 8,668 ​ $ 10,238 ​ $ 15,726 ​ $ 10,797 ​ Basic income per common share ​ $ 1.53 ​ $ 1.80 ​ $ 2.77 ​ $ 1.90 ​ Diluted income per common share ​ $ 1.53 ​ $ 1.80 ​ $ 2.77 ​ $ 1.90 ​ ​ FINANCIAL CONDITION.
Biggest changeNet income increased to $74.5 million ($2.61 per share diluted) in 2023, compared to $45.4 million ($1.60 per share diluted) in 2022, an increase of $29.1 million, or 64.1%. ​ Summary of Quarterly Financial Data (dollars in thousands except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, Revenues ​ $ 71,687 ​ $ 76,545 ​ $ 89,427 ​ $ 80,062 ​ Gross profit ​ $ 30,607 ​ $ 34,822 ​ $ 43,113 ​ $ 35,439 ​ Operating profit ​ $ 25,759 ​ $ 29,940 ​ $ 38,137 ​ $ 31,087 ​ Net income ​ $ 22,439 ​ $ 26,057 ​ $ 33,353 ​ $ 26,990 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic income per common share ​ $ 0.79 ​ $ 0.91 ​ $ 1.17 ​ $ 0.94 ​ Diluted income per common share ​ $ 0.78 ​ $ 0.91 ​ $ 1.16 ​ $ 0.94 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, Revenues ​ $ 66,777 ​ $ 73,983 ​ $ 74,878 ​ $ 65,692 ​ Gross profit ​ $ 23,992 ​ $ 27,131 ​ $ 28,155 ​ $ 23,589 ​ Operating profit ​ $ 19,840 ​ $ 22,812 ​ $ 23,800 ​ $ 18,970 ​ Net income ​ $ 17,104 ​ $ 19,712 ​ $ 20,733 ​ $ 17,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic income per common share ​ $ 0.60 ​ $ 0.69 ​ $ 0.73 ​ $ 0.60 ​ Diluted income per common share ​ $ 0.60 ​ $ 0.69 ​ $ 0.73 ​ $ 0.60 ​ ​ FINANCIAL CONDITION.
We do not utilize off-balance sheet financing arrangements.
Off-Balance Sheet Arrangements. We do not utilize off-balance sheet financing arrangements.
However, there can be no assurance that demand and prices for our lime and limestone products will enable us to fully utilize our additional production capacity, nor that our production will not be adversely affected by weather, maintenance, environmental, accident, cybersecurity, and other operational and construction issues; that we can successfully invest in improvements to our existing facilities and acquisitions; that our results will not be adversely affected by increases in fuel, natural gas, electricity, transportation and freight costs, taxes, or new environmental, health and safety, or other regulatory requirements; or that, with increasing competition with other lime and limestone producers, our revenues, gross profit, net income, and cash flows can be maintained or improved.
However, there can be no assurance that demand and prices for our lime and limestone products will enable us to fully utilize any additional production capacity, nor that our production will not be adversely affected by weather, maintenance, regulatory, accident, cybersecurity, and other operational and construction issues; that we can successfully invest in improvements to our existing facilities and acquisitions; that our results will not be adversely affected by increases in fuel, natural gas, electricity, transportation and freight costs, taxes, or new environmental, health and safety, or other regulatory requirements; or that, with increasing competition with other lime and limestone producers, our revenues, gross profit, net income, and cash flows can be maintained or improved.
We continue to believe the enhanced efficiency and production capacity resulting from our modernization and expansion and development projects in Texas, Arkansas, and Oklahoma, our expanded slurry operations, our acquisitions, including the acquisitions of Carthage and Mill Creek, and the operational strategies we have implemented have allowed us to increase our efficiency, grow production capacity, improve product quality, better serve existing customers, attract new customers, and control costs.
We continue to believe that the enhanced efficiency and production capacity resulting from our modernization and expansion and development projects in Texas, Arkansas, and Oklahoma, our expanded slurry operations, our acquisitions, including the acquisitions of Carthage and Mill Creek, and the operational strategies that we have implemented have allowed us to increase our efficiency, grow production capacity, improve product quality, better serve existing customers, attract new customers, and control costs.
Demand for our lime and limestone products in our market areas is also affected by general economic conditions, the pace of construction, the demand for steel, the level of oil and gas drilling in our markets, the level of governmental and private funding for highway construction and infrastructure, and utility plant usage of coal for power generation.
Demand for our lime and limestone products in our market areas is also affected by general economic conditions, the pace of construction, including the level of governmental and private funding for highway construction and infrastructure, utility plant usage of coal for power generation, the demand for steel, and the level of oil and gas drilling in our markets.
Our effective income tax rates for 2023 and 2022 were reduced from the statutory rate primarily due to statutory depletion in excess of basis.
Our effective income tax rates in 2023 and 2022 were reduced from the statutory rate primarily due to statutory depletion in excess of basis.
In 2023, the 31 Table of Contents changes in working capital were principally composed of a $4.5 million increase in trade receivables, net, primarily as a result of increased sales in the fourth quarter 2023, compared to the fourth quarter 2022, a $4.7 million increase in inventories, primarily due to increases in the volume of our solid fuel stockpiles and the costs of our supply of critical parts, and a $1.1 million increase in prepaid expenses and other current assets, partially offset by a $1.7 million increase in accounts payable and accrued expenses.
In 2023, the changes in working capital were principally composed of a $4.5 million increase in trade receivables, net, primarily as a result of increased sales in the fourth quarter 2023, compared to the fourth quarter 2022, a $4.7 million increase in inventories, primarily due to increases in the volume of our solid fuel stockpiles and the costs of our supply of critical parts, and a $1.1 million increase in prepaid expenses and other current assets, partially offset by a $1.7 million increase in accounts payable and accrued expenses.
The Company cautions that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation the following: (i) the Company’s plans, strategies, objectives, expectations, and intentions are subject to change at any time at the Company’s discretion; (ii) the Company’s plans and results of operations will be affected by its ability to maintain and increase its revenues and manage its growth; (iii) the Company’s ability to meet short-term and long-term liquidity demands, including meeting the Company’s operating and capital needs, including possible acquisitions and paying dividends, and conditions in the credit and equity markets, including the ability of the Company’s customers to meet their obligations; (iv) interruptions to operations and increased expenses at the Company’s facilities resulting from changes in mining methods or conditions, variability of chemical or physical properties of the Company’s limestone and its impact on process equipment and product quality, inclement weather conditions, including more severe and frequent weather events resulting from climate change, natural disasters, accidents, IT systems failures or disruptions, including due to cybersecurity threats and incidents, utility disruptions, supply chain delays and disruptions, labor shortages and disruptions, or regulatory requirements; (v) volatile coal, petroleum coke, diesel, natural gas, electricity, and transportation costs and the consistent availability of trucks, truck drivers, and rail cars to deliver the Company’s products to its customers and solid fuels to its plants on a timely basis at competitive prices; (vi) the Company’s ability to expand its lime and limestone operations through projects and acquisitions of businesses with related or similar operations and the Company’s ability to obtain any required financing for such projects and acquisitions, to integrate the projects and acquisitions into the Company’s overall operations, and to sell any resulting increased production at acceptable prices; (vii) inadequate demand and/or prices for the Company’s lime and limestone products due to increased competition from competitors, increasing competition for certain customer accounts, conditions in the U.S. economy, recessionary pressures in, and the impact of government policies on, particular industries, including oil and gas services, utility plants, steel, construction, and industrial, effects of governmental fiscal and budgetary constraints, including the level of highway construction and infrastructure funding, changes to tax laws, legislative impasses, extended governmental shutdowns, downgrades and defaults on U.S. government obligations, pandemics, trade wars, tariffs, international incidents, including conflicts in Ukraine, Israel, and the broader Middle East, oil cartel production and supply actions, sanctions, economic and regulatory uncertainties under state governments and the United States Administration and Congress, inflation, Federal Reserve responses to inflationary concerns, including increased interest rates, and inability to continue to maintain or increase prices for the Company’s products, including passing through the increased costs of energy, labor, parts and supplies, and changes in inflationary expectations; (viii) ongoing and possible new regulations, investigations, enforcement actions and costs, legal expenses, penalties, fines, assessments, litigation, judgments and settlements, taxes and disruptions and limitations of operations, including those related to climate change, health and safety, human capital, diversity, and other ESG and sustainability considerations, and those that could impact the Company’s ability to continue or renew its operating permits or successfully secure new permits in connection with its modernization and expansion and development projects; (ix) estimates of resources and reserves and remaining lives of reserves; (x) the impact of potential global pandemics, epidemics, or disease outbreaks, such as COVID 19, and governmental responses thereto, including decreased demand, lower prices, tightened labor and other markets, and increased costs, and the risk of non-compliance with health and safety protocols, social distancing and mask guidelines, and vaccination mandates, on the Company’s financial condition, results of operations, cash flows, and competitive position; (xi) the impact of social or political unrest; (xii) risks relating to mine safety and reclamation and remediation; and (xiii) other risks and uncertainties set forth in this Report or indicated from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Quarterly Reports on Form 10-Q. ​ 25 Table of Contents OVERVIEW.
The Company cautions that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation the following: (i) the Company’s plans, strategies, objectives, expectations, and intentions are subject to change at any time at the Company’s discretion; (ii) the Company’s plans and results of operations will be affected by its ability to maintain and increase its revenues and manage its growth; (iii) the Company’s ability to meet short-term and long-term liquidity demands, including meeting the Company’s operating and capital needs, including possible acquisitions and paying dividends, and conditions in the credit and equity markets, including the ability of the Company’s customers to meet their obligations; (iv) interruptions to operations and increased expenses at the Company’s facilities resulting from changes in mining methods or conditions, variability of chemical or physical properties of the Company’s limestone and its impact on process equipment and product quality, inclement weather conditions, including more severe and frequent weather events resulting from climate change, natural disasters, accidents, IT systems failures or disruptions, including due to cybersecurity threats and incidents, utility disruptions, supply chain delays and disruptions, labor shortages and disruptions, or regulatory requirements; (v) volatile coal, petroleum coke, diesel, natural gas, electricity, and transportation costs and the consistent availability of trucks, truck drivers, and rail cars to deliver the Company’s products to its customers and solid fuels to its plants on a timely basis at competitive prices; (vi) the Company’s ability to expand its operations through projects and acquisitions of businesses with related or similar operations and the Company’s ability to obtain any required financing for such projects and acquisitions, to integrate the projects and acquisitions into the Company’s overall operations, and to sell any resulting increased production at acceptable prices; (vii) inadequate demand and/or prices for the Company’s lime and limestone products due to increased competition from competitors, increasing competition for certain customer accounts, conditions in the U.S. economy, recessionary pressures in, and the impact of government policies on, particular industries, including oil and gas services, utility plants, steel, construction, and industrial, effects of governmental fiscal and budgetary constraints, including the level of highway construction and infrastructure funding, changes to tax laws, legislative impasses, extended governmental shutdowns, reduced levels of government staffing, downgrades and defaults on U.S. government obligations, trade wars, tariffs, international incidents, including conflicts in Ukraine, Israel, and the broader Middle East, oil cartel production and supply actions, sanctions, economic and regulatory uncertainties under state governments and the United States Administration and Congress, inflation, recession, and other macroeconomic concerns, Federal Reserve responses to macroeconomic concerns, including changing interest rates, and inability to continue to maintain or increase prices for the Company’s products, including passing through any increased costs of energy, labor, parts and supplies, and changes in inflationary expectations; (viii) ongoing and possible new regulations, investigations, enforcement actions and costs, legal expenses, penalties, fines, assessments, litigation, judgments and settlements, taxes and disruptions and limitations of operations, including those related to climate change, health and safety, human capital, diversity, inclusion, and other ESG and sustainability considerations, and those that could impact the Company’s ability to continue or renew its operating permits or successfully secure new permits in connection with its modernization and expansion and development projects; (ix) estimates of resources and reserves and remaining lives of reserves; (x) the impact of potential global pandemics, epidemics, or disease outbreaks, and governmental responses thereto, including decreased demand, lower prices, tightened labor and other markets, and increased costs, and the risk of non-compliance with health and safety protocols and mandates, on the Company’s financial condition, results of operations, cash flows, and competitive position; (xi) the impact of social or political unrest; (xii) risks relating to mine safety and reclamation and remediation; and (xiii) other risks and uncertainties set forth in this Report or indicated from time to time in the Company’s filings with the SEC, including the Company’s Quarterly Reports on Form 10-Q. 25 Table of Contents OVERVIEW.
We may pay dividends so long as we remain in compliance with the provisions of our credit agreement, and we may purchase, redeem, or otherwise acquire shares of our common stock so long as our pro forma Cash Flow Leverage Ratio is less than 3.00 to 1.00 and no default or event of default exists or would exist after giving effect to such stock repurchase.
We may pay dividends so long as we remain in compliance with the provisions of our credit agreement, and we may purchase, redeem, or otherwise acquire shares of our common stock so long as our pro forma Cash Flow Leverage 31 Table of Contents Ratio is less than 3.00 to 1.00 and no default or event of default exists or would exist after giving effect to such stock repurchase.
Our modernization and expansion and development projects have also equipped us with up-to-date, fuel-efficient plant facilities, which have resulted in lower production costs and greater operating efficiencies, 27 Table of Contents thus enhancing our competitive position. All of our rotary kilns are now fuel-efficient preheater kilns, and the addition of the vertical kiln at St.
Our modernization and expansion and development projects have also equipped us with up-to-date, fuel- efficient plant facilities, which have resulted in lower production costs and greater operating efficiencies, thus enhancing our competitive position. All of our rotary kilns are now fuel-efficient preheater kilns, and the addition of the vertical kiln at St.
We also incur ongoing costs for maintenance and to remain in compliance with rapidly changing Environmental Laws and health and safety and other regulations. Our primary variable cost is energy. Prices for coal, petroleum coke, diesel, natural gas, electricity, transportation, and freight are volatile, and our energy costs increased substantially in 2023.
We also incur ongoing costs for maintenance and to remain in compliance with rapidly changing Environmental Laws and health and safety and other regulations. Our primary variable cost is energy. Prices for coal, petroleum coke, diesel, natural gas, electricity, transportation, and freight are volatile.
Critical accounting policies are defined as those that are reflective of significant management judgments and uncertainties and potentially result in materially different results under different assumptions and conditions. We believe the following critical accounting policies require the most significant management estimates and judgments used in the preparation of our consolidated financial statements. 28 Table of Contents Contingencies.
Critical accounting policies are defined as those that are reflective of significant management judgments and uncertainties and potentially result in materially different results under different assumptions and conditions. We believe the following critical accounting policies require the most significant management estimates and judgments used in the preparation of our consolidated financial statements. Contingencies.
The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
CRITICAL ACCOUNTING POLICIES AND ESTIMATES. The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
Environmental expenditures that extend the life, increase the capacity, or improve the safety or efficiency of Company-owned assets or are incurred to mitigate or prevent future possible environmental issues are capitalized. Other environmental costs are expensed when incurred. RESULTS OF OPERATIONS.
Environmental expenditures that extend the life, increase the capacity, or improve the safety or efficiency of Company-owned assets or are incurred to mitigate or prevent future possible environmental issues are capitalized. Other environmental costs are expensed when incurred. 28 Table of Contents RESULTS OF OPERATIONS.
Texas continues to invest heavily in its transportation, including directing certain sales and use tax revenues, state motor vehicle sales and rental tax revenues, and oil and gas tax revenues to the State Highway Fund, as required under the Texas constitution. In its fiscal 2023, Texas transferred approximately $6.4 billion of such tax revenues to the State Highway Fund.
Texas continues to invest heavily in its transportation, including directing certain sales and use tax revenues, state motor vehicle sales and rental tax revenues, and oil and gas tax revenues to the State Highway Fund, as required under the Texas constitution. In its fiscal 2024, Texas transferred approximately $6.2 billion of such tax revenues to the State Highway Fund.
We spent $1.3 million, $0.8 million, and $0.7 million in 2023, 2022, and 2021, respectively, to repurchase treasury shares tendered for payment of the exercise price for stock options and the tax withholding liability upon the lapse of restrictions on restricted stock. Contractual Obligations.
We spent $3.5 million, $1.3 million, and $0.8 million in 2024, 2023, and 2022, respectively, to repurchase treasury shares tendered for payment of the exercise price for stock options and the tax withholding liability upon the lapse of restrictions on restricted stock. Contractual Obligations.
Absent a significant acquisition opportunity arising during 2024, we anticipate funding our operating and capital needs and our increased regular cash dividends from our cash balances on hand and cash flows from operations. Lime and Limestone Operations. In our Lime and Limestone Operations, we produce and sell crushed limestone, PLS, aggregate, quicklime, hydrated lime and lime slurry.
Absent a significant acquisition opportunity arising during 2025, we anticipate funding our operating and capital needs and our regular cash dividends from our cash balances on hand and cash flows from operations. Our Operations. We produce and sell crushed limestone, PLS, aggregate, quicklime, hydrated lime and lime slurry.
Inclement weather conditions, such as winter ice and snowstorms, freezing weather, hurricanes, tornadoes, and excessive rainfalls generally reduce the demand for lime and limestone products supplied to construction-related customers that account for a significant amount of our revenues. Inclement weather also interferes with our open-pit mining operations and can disrupt our plant production.
Adverse weather conditions, such as ice storms, freezing weather, hurricanes, tornadoes, excessive rains, and flooding, generally reduce the demand for lime and limestone products supplied to construction-related customers that account for a significant amount of our revenues. Inclement weather also interferes with our open-pit mining operations and can disrupt our plant production.
(3) Purchase obligations includes enforceable agreements to purchase goods or services that specify all significant terms, including fixed or minimum quantities to be purchased, generally pertaining to fuel contracts, fixed-price provisions, and the approximate timing of the transaction, and are either non-cancelable or subject to significant penalty upon cancellation.
(3) Purchase obligations includes enforceable agreements to purchase goods or services that specify all significant terms, including fixed or minimum quantities to be purchased, generally pertaining to fuel contracts, fixed-price provisions, and the approximate timing of the transaction, and are either non-cancelable or subject to significant penalty upon cancellation, including $32.5 million related to the Texas kiln project.
Our cash and cash equivalents at December 31, 2023 increased to $188.0 million from $133.4 million at December 31, 2022. Banking Facilities and Debt. Our credit agreement with Wells Fargo Bank, N.A.
Our cash and cash equivalents at December 31, 2024 increased to $278.0 million from $188.0 million at December 31, 2023. Banking Facilities and Debt. Our credit agreement with Wells Fargo Bank, N.A.
Absent a significant acquisition, we believe that cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including our current and possible future modernization and expansion and development projects, and liquidity needs and allow us to pay our increased regular cash dividends for the near future. Off-Balance Sheet Arrangements.
Absent a significant acquisition, we believe that cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including our current and possible future modernization and expansion and development projects, such as the Texas kiln project, and liquidity needs and allow us to pay our increased regular cash dividends for the near future.
The following table sets forth certain financial information expressed as a percentage of revenues for the three years ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2023 2022 2021 ​ Lime and limestone revenues 99.6 % 98.8 % 99.0 % ​ Other revenues 0.4 ​ 1.2 ​ 1.0 ​ ​ Total revenues 100.0 ​ 100.0 ​ 100.0 ​ ​ Cost of revenues ​ ​ ​ ​ ​ ​ ​ ​ Labor and other operating expenses (55.1) ​ (60.9) ​ (57.8) ​ ​ Depreciation, depletion and amortization (8.3) ​ (9.3) ​ (10.9) ​ ​ Gross profit 36.6 ​ 29.8 ​ 31.3 ​ ​ Selling, general and administrative expenses (6.2) ​ (6.6) ​ (6.8) ​ ​ Operating profit 30.4 ​ 23.2 ​ 24.5 ​ ​ Other income, net ​ 2.8 ​ 0.7 ​ 0.1 ​ ​ Income tax expense (6.7) ​ (4.7) ​ (5.0) ​ ​ Net income 26.5 % 19.2 % 19.6 % ​ 2023 vs. 2022 Our revenues for 2023 increased to $281.3 million from $236.2 million in 2022, an increase of $45.2 million, or 19.1%.
The following table sets forth certain financial information expressed as a percentage of revenues for the three years ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2024 2023 2022 ​ Revenues 100.0 ​ 100.0 ​ 100.0 ​ ​ Cost of revenues ​ ​ ​ ​ ​ ​ ​ ​ Labor and other operating expenses (47.2) ​ (55.1) ​ (60.9) ​ ​ Depreciation, depletion and amortization (7.5) ​ (8.3) ​ (9.3) ​ ​ Gross profit 45.3 ​ 36.6 ​ 29.8 ​ ​ Selling, general and administrative expenses (5.9) ​ (6.2) ​ (6.6) ​ ​ Operating profit 39.4 ​ 30.4 ​ 23.2 ​ ​ Other income, net ​ 3.6 ​ 2.8 ​ 0.7 ​ ​ Income tax expense (8.7) ​ (6.7) ​ (4.7) ​ ​ Net income 34.3 % 26.5 % 19.2 % ​ 2024 vs. 2023 Our revenues in 2024 increased to $317.7 million from $281.3 million in 2023, an increase of $36.4 million, or 12.9%.
At December 31, 2023, we had no debt outstanding and no draws on the Revolving Facility other than $0.5 million of letters of credit, which count as draws against the available commitment under the Revolving Facility. ​ 32 Table of Contents Common Stock Buybacks.
At December 31, 2024, we had no debt outstanding and no draws on the Revolving Facility other than $6.6 million of letters of credit, which count as draws against the available commitment under the Revolving Facility. Common Stock Buybacks.
(2) Of these obligations, $1,196 were recorded on the Consolidated Balance Sheet at December 31, 2023.
(2) Of these obligations, $1,657 were recorded on the Consolidated Balance Sheet at December 31, 2024.
Selling, general and administrative expenses (“SG&A”) increased to $17.4 million for 2023, an increase of $1.9 million, or 12.1%, compared to $15.6 million in 2022. As a percentage of revenues, SG&A was 6.2% in 2023, compared to 6.6% in 2022. The increase in SG&A was primarily due to increased personnel expenses in 2023, compared to 2022.
Selling, general and administrative expenses (“SG&A”) increased to $19.1 million in 2024, an increase of $1.6 million, or 9.2%, compared to $17.4 million in 2023. As a percentage of revenues, SG&A was 5.9% in 2024, compared to 6.2% in 2023. The increase in SG&A was primarily due to increased personnel expenses, including stock-based compensation, in 2024, compared to 2023.
Net cash used in financing activities primarily consisted of $4.6 million for dividend payments and $1.3 million to repurchase shares of our common stock in 2023, compared to $4.5 million for dividend payments and $0.8 million to repurchase shares of our common stock in 2022.
Net cash used in investing activities for 2023 included $11.0 million for real property purchases. Net cash used in financing activities primarily consisted of $5.7 million for dividend payments and $3.5 million to repurchase shares of our common stock in 2024, compared to $4.6 million for dividend payments and $1.3 million to repurchase shares of our common stock in 2023.
In 2022, net cash provided by operating activities was principally composed of $45.4 million net income, $22.2 million DD&A, $2.5 million increase in deferred income taxes, and $2.6 million stock-based compensation, partially offset by an $8.1 million decrease from changes in working capital.
In 2024, net cash provided by operating activities was principally composed of $108.8 million net income, $24.2 million DD&A, and $4.9 million stock-based compensation, partially offset by a $1.0 million decrease in deferred income taxes and an $11.0 million decrease from changes in working capital.
Historically, we have been able to mitigate to some degree the impact of volatile energy costs by varying the mixes of fuel used in our kilns, and by passing on some of any increase in costs to our customers, where possible, through higher prices and/or surcharges on certain products.
In addition, our freight costs, including the cost of diesel, to deliver our products can be high relative to the value of our products. 27 Table of Contents Historically, we have been able to mitigate to some degree the impact of volatile energy costs by varying the mixes of fuel used in our kilns, and by passing on some of any increase in costs to our customers, where possible, through higher prices and/or surcharges on certain products.
On February 2, 2024, we announced that our Board of Directors had declared an increased regular quarterly cash dividend of $0.25 per share. The dividend is payable on March 15, 2024 to shareholders of record on February 23, 2024.
On February 3, 2025, we announced that our Board of Directors had declared an increased regular quarterly cash dividend of $0.06 per share. The dividend is payable on March 14, 2025, to shareholders of record on February 21, 2025.
Other (income) expense, net was $7.9 million income in 2023, compared to $1.8 million income in 2022, an increase of $6.2 million. The increase in other income, net in 2023 compared to 2022, was due to higher interest rates earned on higher average balances in our cash and cash equivalents.
Other (income) expense, net was $11.5 million income in 2024, compared to $7.9 million income in 2023, an increase of $3.5 million. The increase in other (income) expense, net in 2024 compared to 2023, was due to interest earned on higher average balances in our cash and cash equivalents.
In 2022, the changes in working capital were principally composed of a $6.4 million increase in trade receivables, net, primarily as a result of increased sales in the fourth quarter 2022, compared to the fourth quarter 2021, and a $4.3 million increase in inventories, primarily due to increases in the cost and volume of our solid fuel stockpiles and our supply of critical parts, partially offset by a $2.8 million increase in accounts payable and accrued expenses, and other liabilities.
In 2024, the changes in working capital were principally composed of a $5.9 million increase in trade receivables, net, primarily as a result of increased sales in the fourth quarter 2024, compared to the fourth quarter 2023, a $3.4 million increase in inventories, primarily due to increases in the costs of our supply of critical parts and the volume of our solid fuel stockpiles, and a $1.0 million decrease in accounts payable and accrued expenses.
The increase in other income, net in 2023, compared to 2022, was due to higher interest rates earned on higher average balances in our cash and cash equivalents. 26 Table of Contents Our net income increased $29.1 million, or 64.1%, in 2023, compared to 2022.
The increase in other (income) expense, net in 2023 compared to 2022, was due to higher interest rates earned on higher average balances in our cash and cash equivalents.
SG&A increased to $15.6 million for 2022, an increase of $2.7 million, or 21.1%, compared to $12.8 million for 2021. As a percentage of revenues, SG&A was 6.6% in 2022, compared to 6.8% in 2021. The increase in SG&A was primarily due to increased personnel expenses in 2022, compared to 2021.
As a percentage of revenues, SG&A was 6.2% in 2023, compared to 6.6% in 2022. The increase in SG&A was primarily due to increased personnel expenses in 2023, compared to 2022. Other (income) expense, net was $7.9 million income in 2023, compared to $1.8 million income in 2022, an increase of $6.2 million.
We expect to spend approximately $22.0 million per year over the next several years in our Lime and Limestone Operations for normal recurring capital and re-equipping projects at our plants and facilities to maintain or improve efficiency, ensure compliance with Environmental Laws, meet customer needs, and reduce costs.
Our capital needs are expected to be met principally from cash on hand, cash flows from operations, and our $75.0 million revolving credit facility. 30 Table of Contents We expect to spend approximately $22.0 million per year over the next several years for normal recurring capital and re-equipping projects at our plants and facilities to maintain or improve efficiency, ensure compliance with Environmental Laws, meet customer needs, and reduce costs.
Revenues from our Lime and Limestone Operations in 2023 increased $46.8 million, or 20.0%, to $280.2 million from $233.4 million in 2022. The increase in revenues from our Lime and Limestone Operations in 2023 was due to a 21.1% increase in average selling prices for our lime and limestone products, partially offset by a 1.1% decrease in sales volumes.
The increase in revenues in 2023 was due to a 21.1% increase in average selling prices for our lime and limestone products, partially offset by a 1.1% decrease in sales volumes.
The increase in gross profit in 2023, compared to 2022, resulted primarily from the increased revenues discussed above, partially offset by increased lime and limestone production costs, principally from higher energy, labor, and parts and supplies costs. Gross profit also included a $38 thousand loss and $1.4 million profit in 2023 and 2022, respectively, from our natural gas interests.
The increase in gross profit in 2023, compared to 2022, resulted primarily from the increased revenues discussed above, partially offset by increased lime and limestone production costs, principally from higher energy, labor, and parts and supplies costs. SG&A increased to $17.4 million in 2023, an increase of $1.9 million, or 12.1%, compared to $15.6 million in 2022.
Income tax expense was $11.1 million in 2022, for an effective rate of 19.7%, compared to $9.5 million in 2021, for an effective rate of 20.4%, an increase of $1.7 million, primarily due to the increase in income before taxes in 2022, compared to 2021.
Income tax expense was $27.5 million in 2024, for an effective rate of 20.2%, compared to $18.8 million in 2023, for an effective rate of 20.2%, an increase of $8.7 million, primarily due to the increase in income before income taxes in 2024, compared to 2023.
The decrease in sales volumes was principally due to decreased demand from our industrial, steel, and construction customers, partially offset by increased demand from our roofing, environmental, and oil and gas services 29 Table of Contents customers. Other revenues included $1.1 million and $2.7 million in 2023 and 2022, respectively, from our natural gas interests.
The decrease in sales volumes was primarily 29 Table of Contents due to decreased demand from our industrial, steel, and construction customers, partially offset by increased demand from our roofing, environmental, and oil and gas services customers. Our gross profit increased to $102.9 million in 2023 from $70.3 million in 2022, an increase of $32.5 million, or 46.2%.
Revenues from our Lime and Limestone Operations increased 20.0% in 2023, compared to 2022, primarily due to an increase in average selling prices for our lime and limestone products of 21.1%, partially offset by a 1.1% decrease in sales volume.
Our revenues increased 12.9% in 2024 compared to 2023, primarily due to an increase in average selling prices for our lime and limestone products of 14.2%, partially offset by a 1.2% decrease in sales volume. This decrease in demand was primarily from our construction customers, partially offset by increased demand from our industrial, environmental, and roof shingle customers.
Net income increased to $74.5 million ($13.06 per share diluted) in 2023, compared to $45.4 million ($8.00 per share diluted) in 2022, an increase of $29.1 million, or 64.1%. 2022 vs. 2021 Our revenues for 2022 increased to $236.2 million from $189.3 million in 2021, an increase of $46.9 million, or 24.8%.
Net income increased to $108.8 million ($3.79 per share diluted) in 2024, compared to $74.5 million ($2.61 per share diluted) in 2023, an increase of $34.3 million, or 46.0%. 2023 vs. 2022 Our revenues in 2023 increased to $281.3 million from $236.2 million in 2022, an increase of $45.2 million, or 19.1%.
The following table sets forth our contractual obligations as of December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due by Period ​ ​ ​ ​ ​ ​ More Than Contractual Obligations ​ Total ​ 1 Year ​ 2 - 3 Years ​ 4 - 5 Years ​ 5 Years Operating leases (1) ​ $ 5,872 1,721 2,723 1,328 100 ​ Limestone mineral leases ​ $ 2,267 97 194 302 1,674 ​ Purchase obligations (2)(3) ​ $ 23,687 21,073 2,614 — — ​ Other liabilities ​ $ 1,548 120 240 240 948 ​ Total ​ $ 33,374 23,011 5,771 1,870 2,722 ​ (1) Represents operating leases for railcars, corporate office space, and some equipment that are either non-cancelable or subject to significant penalty upon cancellation.
The following table sets forth our contractual obligations as of December 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due by Period ​ ​ ​ ​ ​ ​ More Than Contractual Obligations ​ Total ​ 1 Year ​ 2 - 3 Years ​ 4 - 5 Years ​ 5 Years Operating leases (1) ​ $ 5,518 1,691 2,649 613 565 ​ Limestone mineral leases ​ $ 2,187 97 249 302 1,539 ​ Purchase obligations (2)(3) ​ $ 48,770 39,047 9,723 — — ​ Other liabilities ​ $ 1,484 120 240 240 884 ​ Total ​ $ 57,959 40,955 12,861 1,155 2,988 ​ (1) Represents operating leases for railcars, corporate office space, and some equipment that are either non-cancelable or subject to significant penalty upon cancellation.
Set forth below is certain selected financial data for the five years ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2023 2022 2021 2020 2019 ​ ​ (dollars in thousands, except per share amounts) Operating results ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lime and limestone revenues ​ $ 280,202 233,421 187,365 159,707 156,981 ​ Other revenues ​ 1,128 2,729 1,890 997 1,296 ​ Total revenues ​ $ 281,330 236,150 189,255 160,704 158,277 ​ Gross profit ​ $ 102,867 70,342 59,260 47,587 41,676 ​ Other (income) expense, net ​ $ (7,940) (1,779) (101) 11 (203) ​ Income tax expense ​ $ 18,813 ​ 11,133 ​ 9,473 ​ 5,849 ​ 4,844 ​ Net income ​ $ 74,549 45,429 37,045 28,223 26,056 ​ Net income per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 13.10 8.01 6.55 5.01 4.64 ​ Diluted ​ $ 13.06 ​ 8.00 ​ 6.54 ​ 5.00 ​ 4.64 ​ Dividends per share of common stock (1) ​ $ 0.80 0.80 0.64 0.64 5.89 ​ (1) Dividends per share of common stock for 2019 included a special dividend of $5.35 per share. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ 2023 2022 2021 2020 2019 Total assets ​ $ 440,602 367,772 279,098 247,037 244,671 ​ Stockholders’ equity per outstanding common share ​ $ 68.91 56.51 49.10 43.06 38.62 ​ Employees ​ 333 338 308 317 282 ​ ​ General.
Set forth below is certain selected financial data for the five years ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2024 2023 2022 2021 2020 ​ ​ (dollars in thousands, except per share amounts) Operating results ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenues ​ $ 317,721 281,330 236,150 189,255 160,704 ​ Gross profit ​ $ 143,981 102,867 70,342 59,260 47,587 ​ Operating profit ​ $ 124,923 ​ 85,422 ​ 54,783 ​ 46,417 ​ 33,869 ​ Other (income) expense, net ​ $ (11,460) (7,940) (1,779) (101) (203) ​ Income tax expense ​ $ 27,544 ​ 18,813 ​ 11,133 ​ 9,473 ​ 5,849 ​ Net income ​ $ 108,839 74,549 45,429 37,045 28,223 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 3.81 2.62 1.60 1.31 1.00 ​ Diluted ​ $ 3.79 ​ 2.61 ​ 1.60 ​ 1.31 ​ 1.00 ​ Dividends per share of common stock ​ $ 0.20 0.16 0.16 0.13 0.13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ 2024 2023 2022 2021 2020 Total assets ​ $ 543,163 440,602 367,772 ​ 279,098 247,037 ​ Stockholders’ equity per outstanding common share ​ $ 17.39 13.78 11.30 ​ 9.82 8.61 ​ Employees ​ 345 333 338 ​ 308 317 ​ ​ General.
We have identified one reportable business segment based on the distinctness of our activities and products: Lime and Limestone Operations. All operations are in the United States. Operating profit from our Lime and Limestone Operations includes all of our selling, general and administrative costs.
We have identified one reportable business segment, lime and limestone operations, based on the distinctness of our activities and products. All operations are in the United States. During 2024, we determined that the activities of our natural gas interests did not meet the requirements of an operating segment.
It also enabled us to pay $4.6 million in dividends in 2023 and increase our cash balances to $188.0 million as of December 31, 2023, compared to $133.4 million as of December 31, 2022. As of December 31, 2023 and 2022, we had no debt outstanding.
Cash flows from operations enabled us to make $27.4 million of capital investments in 2024. It also enabled us to pay $5.7 million in dividends in 2024 and increase our cash balances to $278.0 million as of December 31, 2024, compared to $188.0 million as of December 31, 2023.
As of December 31, 2023, we had $1.3 million in open orders for equipment and construction contracts for our Lime and Limestone Operations. Liquidity and Capital Resources. Net cash provided by operating activities was $92.3 million in 2023, compared to $64.4 million in 2022, an increase of $27.9 million, or 43.3%.
As of December 31, 2024, we had $35.5 million in open orders for equipment and construction contracts, including $32.5 million of contractual obligations relating to the new kiln project at Texas Lime. Liquidity and Capital Resources. Net cash provided by operating activities was $126.0 million in 2024, compared to $92.3 million in 2023, an increase of $33.8 million, or 36.6%.
Other (income) expense, net was $1.8 million income in 2022, compared to $0.1 million income in 2021, an increase of $1.7 million, or 1,661.4%. The increase in other income, net in 2022, compared to 2021, was due to higher interest rates on higher average balances in our cash and cash equivalents.
The increase in other income, net in 2024, compared to 2023, was due to interest earned on higher average balances in our cash and cash equivalents. Our net income increased $34.3 million, or 46.0%, in 2024, compared to 2023. Net income per fully diluted share increased to $3.79 in 2024, compared to $2.61 in 2023, an increase of 45.2%.
Net cash used in investing activities was $32.0 million for 2023, compared to $31.2 million for 2022. Net cash used in investing activities for 2023 included $11.0 million for real property purchases.
Net cash used in investing activities was $26.9 million for 2024, compared to $32.0 million for 2023. Net cash used in investing activities for 2024 included $1.4 million on the new kiln and related equipment and infrastructure project at Texas Lime and $1.6 million for real property purchases.
Our other (income) expense, net was $7.9 million income in 2023, compared to $1.8 million income in 2022, an increase of $6.2 million.
Our gross profit increased 40.0% in 2024, compared to 2023, primarily due to the increased revenues discussed above. Our other (income) expense, net was $11.5 million income in 2024, compared to $7.9 million income in 2023, an increase of $3.5 million.
Capital Requirements. We require capital primarily for normal recurring capital and re- equipping projects, modernization and expansion and development projects, and acquisitions. Our capital needs are expected to be met principally from cash on hand, cash flows from operations, and our $75.0 million revolving credit facility.
Capital Requirements. We require capital primarily for normal recurring capital and re- equipping projects, modernization and expansion and development projects, and acquisitions.
Our effective income tax rates for 2022 and 2021 were reduced from the statutory rate primarily due to statutory depletion in excess of basis. 30 Table of Contents Net income increased to $45.4 million ($8.00 per share diluted) in 2022, compared to $37.0 million ($6.54 per share diluted) in 2021, an increase of $8.4 million, or 22.6%.
Our effective income tax rates in 2024 and 2023 were reduced from the statutory rate primarily due to statutory depletion in excess of basis.
Clair further increased the fuel efficiency of our fleet of kilns.
Clair further increased the fuel efficiency of our fleet of kilns. Future projects, such as our new kiln project at Texas Lime, will create the opportunity for further fuel efficiency.
The increase in revenues from our Lime and Limestone Operations in 2022 was primarily due to a 14.0% increase in sales volumes of our lime and limestone products, principally to our construction, oil and gas services, and steel customers.
The increase in revenues in 2024 was 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 volumes. The decrease in sales volume was primarily due to decreased demand from our construction customers, partially offset by increased demand from our industrial, environmental, and roof shingle customers.
Our gross profit increased to $102.9 million for 2023 from $70.3 million in 2022, an increase of $32.5 million, or 46.2%. Gross profit from our Lime and Limestone Operations in 2023 was $102.9 million, compared to $69.0 million in 2022, an increase of $34.0 million, or 49.2%.
Our gross profit increased to $144.0 million in 2024 from $102.9 million in 2023, an increase of $41.1 million, or 40.0%. The increase in gross profit in 2024, compared to 2023, resulted primarily from the increased revenues discussed above.
Removed
We do not allocate interest income and expense and other expense to our Lime and Limestone Operations.
Added
Previously unallocated items, including cash, interest income and expense, and other expense are now included as part of our single lime and limestone operations segment. Disclosures for 2023 and 2022 have been recast to be consistent with the 2024 presentation.
Removed
Our Other operations relate to our natural gas interests, consisting of royalty and non- operated working interests under an oil and gas lease and a drillsite agreement with two separate operators related to our Johnson County, Texas property, located in the Barnett Shale Formation, on which Texas Lime conducts its lime and limestone operations.
Added
As of December 31, 2024 and 2023, we had no debt outstanding. On May 2, 2024, our shareholders approved an increase in the number of authorized shares of our common stock from 30,000,000 to 45,000,000.
Removed
The carrying values of the long-lived assets related to our natural gas interests were $0.4 million as of December 31, 2023. Based on current production and pricing estimates, we believe that the carrying value of these assets will be recoverable in future periods. Our revenues increased 19.1% in 2023 compared to 2022.
Added
On July 12, 2024, we effected a 5-for-1 split of our common stock, in the form of a stock dividend of four additional shares of common stock for each share outstanding, to shareholders of record at the close of business on June 21, 2024 (the “Stock Split”).
Removed
This decrease in demand was primarily from our industrial, steel, and construction customers, partially offset by increased demand from our roofing, environmental, and oil and gas services customers. Our gross profit increased 46.2% in 2023, compared to 2022.
Added
All share and per share information, including stock-based 26 Table of Contents compensation, throughout this Annual Report on Form 10-K has been retroactively adjusted to reflect the Stock Split. The shares of common stock retain a par value of $0.10 per share.
Removed
Gross profit from our Lime and Limestone Operations in 2023 increased 49.2%, compared to 2022, primarily due to the increased revenues discussed above, partially offset by increased lime and limestone production costs, principally from higher energy, labor, and parts and supplies costs.
Removed
Net income per fully diluted share increased to $13.06 in 2023, compared to $8.00 in 2022. Cash flows from operations enabled us to make $34.3 million of capital investments in 2023.
Removed
Demand for our lime and limestone products from our industrial, steel, and construction customers decreased in 2023; however, this was partially offset by increased demand from our roofing, environmental, and oil and gas services customers. Looking ahead, we anticipate that soft construction demand, particularly from commercial building, will continue through at least the first half 2024.
Removed
In 2023, we continued to experience rising production costs, especially energy, labor, and parts and supplies costs. As we progressed through 2023, many of the supply chain delays and disruptions that challenged us in the previous year began to resolve .
Removed
In addition, our freight costs, including the cost of diesel, to deliver our products can be high relative to the value of our products.
Removed
We have financed our modernization and expansion and development projects and acquisitions through a combination of debt financing, which has now been repaid, and cash flows from operations.
Removed
We must generate sufficient cash flows to cover ongoing capital requirements, including current and possible future modernization and expansion and development projects and acquisitions, or borrow sufficient funds to finance any shortfall in our liquidity needs.
Removed
Other. Revenues in 2023 included $1.1 million from our natural gas interests, compared to $2.7 million in 2022. Gross (loss) profit from our natural gas interests was a $38 thousand loss in 2023, compared to a $1.4 million profit in 2022. CRITICAL ACCOUNTING POLICIES AND ESTIMATES.
Removed
Revenues from our Lime and Limestone Operations in 2022 increased $46.1 million, or 24.6%, to $233.4 million from $187.4 million in 2021.
Removed
In addition, we realized a 10.6% increase in average selling prices for our lime and limestone products in 2022, compared to 2021. Other revenues included $2.7 million and $1.9 million in 2022 and 2021, respectively, from our natural gas interests.
Removed
Our gross profit increased to $70.3 million for 2022 from $59.3 million for 2021, an increase of $11.1 million, or 18.7%. Gross profit from our Lime and Limestone Operations for 2022 was $69.0 million, compared to $58.7 million in 2021, an increase of $10.3 million, or 17.6%.
Removed
The increase in gross profit in 2022, compared to 2021, resulted primarily from the increased revenues discussed above, partially offset by increased lime and limestone production costs, principally from higher transportation, energy, labor, and supplies costs. Gross profit also included $1.4 million and $0.6 million in 2022 and 2021, respectively, from our natural gas interests.
Removed
Net cash used in investing activities for 2022 included $5.6 million for the acquisition of Mill Creek and an additional $3.5 million of capital investments in the Mill Creek facility, $4.1 million for real property purchases, and $3.0 million for development of the Love Hollow Quarry and its connection to the Batesville plant.
Removed
During 2022, we experienced increased costs associated with our normal recurring capital and re-equipping projects at our plants and facilities, as part of the overall inflationary environment. In 2023, we began to experience an increase in DD&A expense associated with higher recurring capital and re-equipping projects, which we expect will continue in future periods.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+1 added−0 removed0 unchanged
Biggest changeAny future borrowings under the Revolving Facility would be subject to interest rate risk.
Biggest changeAny future borrowings under the Revolving Facility would be subject to interest rate risk. Additionally, our cash and cash equivalents earn interest which is reported in Other (income) expense, net in the consolidated statements of income.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. INTEREST RATE RISK. We could be exposed to changes in interest rates, primarily as a result of floating interest rates on the Revolving Facility. There was no outstanding balance on the Revolving Facility subject to interest rate risk at December 31, 2023.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. INTEREST RATE RISK. We could be exposed to changes in interest rates, primarily as a result of floating interest rates on the Revolving Facility. There was no outstanding balance on the Revolving Facility subject to interest rate risk at December 31, 2024.
Added
A future decrease in interest rates could reduce the amount of interest that we earn on our cash and cash equivalents. 32 Table of Contents

Other USLM 10-K year-over-year comparisons