DALLAS - United States Lime & Minerals, Inc. (NASDAQ: USLM) announced an increase in revenues and net income for the first quarter of 2024. The Dallas-based manufacturer reported first-quarter revenues of $71.7 million, up 7.4% from $66.8 million in the same quarter the previous year.
This increase was attributed to higher average selling prices for its lime and limestone products, despite a decrease in sales volumes.
The company's gross profit also saw a significant rise, reaching $30.6 million, a 27.6% increase from $24.0 million reported in the first quarter of 2023. The improvement in gross profit was due to the increased revenues and a decrease in operating expenses, including lower natural gas fuel costs.
Yet, sales volumes in the first quarter of 2024 experienced a decline, primarily due to reduced demand from construction customers, which was partially offset by increased demand from industrial customers. Selling, general and administrative expenses rose to $4.8 million, up 16.8% from the prior year, mainly due to higher personnel expenses, including stock-based compensation.
United States Lime & Minerals also reported a net income of $22.4 million, or $3.92 per share diluted, for the first quarter of 2024, a 31.2% increase from $17.1 million, or $3.00 per share diluted, during the same period in 2023. The company's President and CEO, Timothy W. Byrne, commented on the continued reduced demand from construction customers, while noting a partial offset from industrial customers.
Looking forward, Byrne anticipates improved demand from construction customers. In addition to its financial results, the company declared a regular quarterly cash dividend of $0.25 per share on its common stock, payable on June 14, 2024, to shareholders of record as of May 24, 2024.
United States Lime & Minerals operates facilities across several states and serves a diverse range of industries, including construction, industrial, environmental, and agriculture. The information in this article is based on a press release statement from United States Lime & Minerals, Inc.
InvestingPro Insights
United States Lime & Minerals, Inc. (NASDAQ: USLM) has demonstrated a robust financial performance in the first quarter of 2024, with notable increases in revenue and net income. An in-depth analysis provided by InvestingPro offers additional insights into the company's financial health and stock performance.
An InvestingPro Tip highlights that USLM is trading at a low Price-to-Earnings (P/E) ratio relative to its near-term earnings growth potential, with a P/E Ratio of 23.52 and an adjusted P/E Ratio for the last twelve months as of Q4 2023 at 23.74. This suggests that the stock may be undervalued given its earnings trajectory, presenting a potentially attractive opportunity for investors.
Moreover, USLM holds more cash than debt on its balance sheet, providing a strong liquidity position. This is further supported by the fact that the company's liquid assets exceed its short-term obligations, ensuring financial stability and the ability to meet its immediate financial commitments.
InvestingPro Data further reveals that USLM has experienced a significant revenue growth of 19.13% over the last twelve months as of Q4 2023, with a gross profit margin of 44.93%. This robust margin reflects the company's efficient operations and ability to translate sales into profit effectively.
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