Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | UNITED STATES LIME & MINERALS INC | |
Entity Central Index Key | 0000082020 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,612,772 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 73,672 | $ 67,218 |
Trade receivables, net | 22,946 | 19,602 |
Inventories, net | 12,329 | 12,846 |
Prepaid expenses and other current assets | 1,351 | 1,692 |
Total current assets | 110,298 | 101,358 |
Property, plant and equipment | 358,707 | 348,472 |
Less accumulated depreciation and depletion | (212,079) | (205,708) |
Property, plant and equipment, net | 146,628 | 142,764 |
Operating lease right-of-use assets | 4,054 | |
Other assets, net | 493 | 549 |
Total assets | 261,473 | 244,671 |
Current liabilities: | ||
Accounts payable | 4,952 | 4,570 |
Current portion of operating lease liabilities | 1,465 | |
Accrued expenses | 3,025 | 3,393 |
Total current liabilities | 9,442 | 7,963 |
Deferred tax liabilities, net | 14,974 | 12,365 |
Operating lease liabilities, excluding current portion | 2,547 | |
Other liabilities | 1,369 | 1,376 |
Total liabilities | 28,332 | 21,704 |
Stockholders' equity: | ||
Common stock | 662 | 661 |
Additional paid-in capital | 26,632 | 25,867 |
Accumulated other comprehensive loss | (8) | (13) |
Retained earnings | 260,212 | 250,568 |
Less treasury stock, at cost | (54,357) | (54,116) |
Total stockholders' equity | 233,141 | 222,967 |
Total liabilities and stockholders' equity | $ 261,473 | $ 244,671 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Total revenues | $ 38,954 | $ 39,242 | $ 76,753 | $ 74,529 |
Cost of revenues | ||||
Labor and other operating expenses | 25,002 | 25,317 | 50,040 | 49,390 |
Depreciation, depletion and amortization | 4,225 | 4,288 | 8,293 | 8,465 |
Total cost of revenues | 29,227 | 29,605 | 58,333 | 57,855 |
Gross profit | 9,727 | 9,637 | 18,420 | 16,674 |
Selling, general and administrative expenses | 2,639 | 2,565 | 5,312 | 5,066 |
Operating profit | 7,088 | 7,072 | 13,108 | 11,608 |
Other (income) expense | ||||
Interest expense | 60 | 63 | 122 | 125 |
Interest and other income, net | (490) | (459) | (982) | (812) |
Total other (income) expense | (430) | (396) | (860) | (687) |
Income before income tax expense | 7,518 | 7,468 | 13,968 | 12,295 |
Income tax expense | 1,485 | 830 | 2,807 | 1,395 |
Net income | $ 6,033 | $ 6,638 | $ 11,161 | $ 10,900 |
Net income per share of common stock | ||||
Basic (in dollars per share) | $ 1.07 | $ 1.19 | $ 1.99 | $ 1.95 |
Diluted (in dollars per share) | $ 1.07 | $ 1.18 | $ 1.99 | $ 1.95 |
Lime and limestone operations | ||||
Revenues | ||||
Total revenues | $ 38,581 | $ 38,557 | $ 76,046 | $ 73,271 |
Natural gas interests | ||||
Revenues | ||||
Total revenues | $ 373 | $ 685 | $ 707 | $ 1,258 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Total revenues (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Cost of revenues | ||||
Labor and other operating expenses (as a percent) | 64.20% | 64.50% | 65.20% | 66.30% |
Depreciation, depletion and amortization (as a percent) | 10.80% | 11.00% | 10.70% | 11.40% |
Total cost of revenues (as a percent) | 75.00% | 75.50% | 75.90% | 77.60% |
Gross profit (as a percent) | 25.00% | 24.50% | 24.10% | 22.40% |
Selling, general and administrative expenses (as a percent) | 6.80% | 6.50% | 6.90% | 6.80% |
Operating profit (as a percent) | 18.20% | 18.00% | 17.20% | 15.60% |
Other (income) expense | ||||
Interest expense (as a percent) | 0.20% | 0.20% | 0.20% | 0.20% |
Interest and other income, net (as a percent) | (1.30%) | (1.20%) | (1.20%) | (1.10%) |
Total other (income) expense (as a percent) | (1.10%) | (1.00%) | (1.00%) | (0.90%) |
Income before income tax expense (as a percent) | 19.30% | 19.00% | 18.20% | 16.50% |
Income tax expense (as a percent) | 3.80% | 2.10% | 3.70% | 1.90% |
Net income (as a percent) | 15.50% | 16.90% | 14.50% | 14.60% |
Lime and limestone operations | ||||
Revenues | ||||
Total revenues (as a percent) | 99.00% | 98.30% | 99.10% | 98.30% |
Natural gas interests | ||||
Revenues | ||||
Total revenues (as a percent) | 1.00% | 1.70% | 0.90% | 1.70% |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 6,033 | $ 6,638 | $ 11,161 | $ 10,900 |
Other comprehensive income (loss) | ||||
Mark to market of foreign exchange hedges, net of tax (expense) benefit of $(1) and $10 for the 2019 and 2018 periods, respectively | 25 | (55) | 5 | (89) |
Total other comprehensive income (loss) | 25 | (55) | 5 | (89) |
Comprehensive (loss) income | $ 6,058 | $ 6,583 | $ 11,166 | $ 10,811 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||
Mark to market on foreign exchange hedges, tax (expense) benefit of $(7) and $(1) for the three months and six months ended June 30, 2019, respectively and $17 and $27 for the three months and six months ended June 30, 2018, respectively | $ (7) | $ 6 | $ 17 | $ 10 | $ (1) | $ 27 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock | Total |
Balances at Dec. 31, 2017 | $ 659 | $ 24,307 | $ 86 | $ 233,905 | $ (53,705) | $ 205,252 |
Balances (in shares) at Dec. 31, 2017 | 5,588,821 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised | 73 | 73 | ||||
Stock options exercised (in shares) | 2,000 | |||||
Stock-based compensation | 316 | 316 | ||||
Stock-based compensation (in shares) | 2,733 | |||||
Treasury shares purchased | (61) | (61) | ||||
Treasury shares purchased (in shares) | (861) | |||||
Cash dividends paid | (755) | (755) | ||||
Net income | 4,262 | 4,262 | ||||
Mark to market of foreign exchange hedges, net of $6 tax benefit and $10 tax benefit and $7 tax expense and $17 tax benefit for the three months ended March 31, 2019 and 2018 and six months ended June 30, 2019 and 2018, respectively | (34) | (34) | ||||
Comprehensive (loss) income | (34) | 4,262 | 4,228 | |||
Balances at Mar. 31, 2018 | $ 659 | 24,696 | 52 | 237,412 | (53,766) | 209,053 |
Balances (in shares) at Mar. 31, 2018 | 5,592,693 | |||||
Balances at Dec. 31, 2017 | $ 659 | 24,307 | 86 | 233,905 | (53,705) | 205,252 |
Balances (in shares) at Dec. 31, 2017 | 5,588,821 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 10,900 | |||||
Mark to market of foreign exchange hedges, net of $6 tax benefit and $10 tax benefit and $7 tax expense and $17 tax benefit for the three months ended March 31, 2019 and 2018 and six months ended June 30, 2019 and 2018, respectively | (89) | |||||
Comprehensive (loss) income | 10,811 | |||||
Balances at Jun. 30, 2018 | $ 660 | 25,092 | (3) | 243,294 | (53,956) | 215,087 |
Balances (in shares) at Jun. 30, 2018 | 5,597,950 | |||||
Balances at Mar. 31, 2018 | $ 659 | 24,696 | 52 | 237,412 | (53,766) | 209,053 |
Balances (in shares) at Mar. 31, 2018 | 5,592,693 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised (in shares) | 3,200 | |||||
Stock-based compensation | $ 1 | 396 | 397 | |||
Stock-based compensation (in shares) | 4,319 | |||||
Treasury shares purchased | (190) | (190) | ||||
Treasury shares purchased (in shares) | (2,262) | |||||
Cash dividends paid | (756) | (756) | ||||
Net income | 6,638 | 6,638 | ||||
Mark to market of foreign exchange hedges, net of $6 tax benefit and $10 tax benefit and $7 tax expense and $17 tax benefit for the three months ended March 31, 2019 and 2018 and six months ended June 30, 2019 and 2018, respectively | (55) | (55) | ||||
Comprehensive (loss) income | (55) | 6,638 | 6,583 | |||
Balances at Jun. 30, 2018 | $ 660 | 25,092 | (3) | 243,294 | (53,956) | 215,087 |
Balances (in shares) at Jun. 30, 2018 | 5,597,950 | |||||
Balances at Dec. 31, 2018 | $ 661 | 25,867 | (13) | 250,568 | (54,116) | 222,967 |
Balances (in shares) at Dec. 31, 2018 | 5,607,401 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock-based compensation | 309 | 309 | ||||
Stock-based compensation (in shares) | 3,333 | |||||
Treasury shares purchased | (52) | (52) | ||||
Treasury shares purchased (in shares) | (753) | |||||
Cash dividends paid | (757) | (757) | ||||
Net income | 5,128 | 5,128 | ||||
Mark to market of foreign exchange hedges, net of $6 tax benefit and $10 tax benefit and $7 tax expense and $17 tax benefit for the three months ended March 31, 2019 and 2018 and six months ended June 30, 2019 and 2018, respectively | (20) | (20) | ||||
Comprehensive (loss) income | (20) | 5,128 | 5,108 | |||
Balances at Mar. 31, 2019 | $ 661 | 26,176 | (33) | 254,939 | (54,168) | 227,575 |
Balances (in shares) at Mar. 31, 2019 | 5,609,981 | |||||
Balances at Dec. 31, 2018 | $ 661 | 25,867 | (13) | 250,568 | (54,116) | 222,967 |
Balances (in shares) at Dec. 31, 2018 | 5,607,401 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 11,161 | |||||
Mark to market of foreign exchange hedges, net of $6 tax benefit and $10 tax benefit and $7 tax expense and $17 tax benefit for the three months ended March 31, 2019 and 2018 and six months ended June 30, 2019 and 2018, respectively | 5 | |||||
Comprehensive (loss) income | 11,166 | |||||
Balances at Jun. 30, 2019 | $ 662 | 26,632 | (8) | 260,212 | (54,357) | 233,141 |
Balances (in shares) at Jun. 30, 2019 | 5,612,793 | |||||
Balances at Mar. 31, 2019 | $ 661 | 26,176 | (33) | 254,939 | (54,168) | 227,575 |
Balances (in shares) at Mar. 31, 2019 | 5,609,981 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised | 75 | 75 | ||||
Stock options exercised (in shares) | 2,000 | |||||
Stock-based compensation | $ 1 | 381 | 382 | |||
Stock-based compensation (in shares) | 3,173 | |||||
Treasury shares purchased | (189) | (189) | ||||
Treasury shares purchased (in shares) | (2,361) | |||||
Cash dividends paid | (760) | (760) | ||||
Net income | 6,033 | 6,033 | ||||
Mark to market of foreign exchange hedges, net of $6 tax benefit and $10 tax benefit and $7 tax expense and $17 tax benefit for the three months ended March 31, 2019 and 2018 and six months ended June 30, 2019 and 2018, respectively | 25 | 25 | ||||
Comprehensive (loss) income | 25 | 6,033 | 6,058 | |||
Balances at Jun. 30, 2019 | $ 662 | $ 26,632 | $ (8) | $ 260,212 | $ (54,357) | $ 233,141 |
Balances (in shares) at Jun. 30, 2019 | 5,612,793 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||
Mark to market of foreign exchange hedges, tax expense (benefit) | $ 7 | $ (6) | $ (17) | $ (10) | $ 1 | $ (27) |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 11,161 | $ 10,900 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 8,404 | 8,572 |
Amortization of deferred financing costs | 6 | 15 |
Deferred income taxes | 2,619 | 1,157 |
Loss on disposition of property, plant and equipment | 97 | 345 |
Stock-based compensation | 691 | 713 |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (3,344) | (4,450) |
Inventories, net | 517 | 1,289 |
Prepaid expenses and other current assets | 341 | 438 |
Other assets | 50 | 93 |
Accounts payable and accrued expenses | (452) | (697) |
Other liabilities | (54) | (145) |
Net cash provided by operating activities | 20,036 | 18,230 |
INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (12,360) | (19,378) |
Proceeds from sale of property, plant and equipment | 461 | 183 |
Net cash used in investing activities | (11,899) | (19,195) |
FINANCING ACTIVITIES: | ||
Cash dividends paid | (1,517) | (1,511) |
Proceeds from exercise of stock options | 75 | 73 |
Purchase of treasury shares | (241) | (251) |
Net cash used in financing activities | (1,683) | (1,689) |
Net increase (decrease) in cash and cash equivalents | 6,454 | (2,654) |
Cash and cash equivalents at beginning of period | 67,218 | 85,000 |
Cash and cash equivalents at end of period | $ 73,672 | $ 82,346 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The condensed consolidated financial statements included herein have been prepared by United States Lime & Minerals, Inc. (the “Company”) without independent audit. In the opinion of the Company’s management, all adjustments of a normal and recurring nature necessary to present fairly the financial position, results of operations, comprehensive income and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2018. The results of operations for the three- and six-month periods ended June 30, 2019 are not necessarily indicative of operating results for the full year. |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization | |
Organization | 2. Organization The Company is headquartered in Dallas, Texas, and operates through two business segments. Through its Lime and Limestone Operations, 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), oil and gas services, roof shingle manufacturers and agriculture (including poultry and cattle feed producers) industries. The Company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Oklahoma and Texas through its wholly owned subsidiaries, Arkansas Lime Company, Colorado Lime Company, Texas Lime Company, U.S. Lime Company, U.S. Lime Company – Shreveport, U.S. Lime Company – St. Clair and U.S. Lime Company – Transportation. In addition, the Company, through its wholly owned subsidiary, U.S. Lime Company – O & G, LLC, has royalty and non-operating working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies | |
Accounting Policies | 3. Accounting Policies Revenue Recognition. The Company recognizes revenue for its Lime and Limestone Operations in accordance with the terms of its purchase orders, contracts or purchase agreements, which is generally upon shipment, and when payment is considered probable. Revenues include external freight billed to customers with related costs accounted for as fulfillment costs and included in cost of revenues. The Company’s returns and allowances are minimal. External freight billed to customers included in 2019 and 2018 revenues was $7.1 million and $6.8 million, for the respective three-month periods, and $13.9 and $12.7 million, for the respective six-month periods, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its Natural Gas Interests, the Company recognizes revenue in the month of production and delivery. The Company operates its Lime and Limestone Operations within a single geographic region and derives all revenues from that segment from the sale of lime and limestone products. Revenues from the Company’s Natural Gas Interests are from the Company’s royalty and non-operating working interest in Johnson County, Texas. See Note 4 to the condensed consolidated financial statements for disaggregation of revenues by segment, which the Company believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The majority of the Company’s trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts or purchase agreements. Credit losses relating to trade receivables have generally been within management expectations and historical trends. Uncollected trade receivables are charged-off when identified by management to be unrecoverable. The Company maintains an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments. Successful-Efforts Method Used for Natural Gas Interests. The Company uses the successful-efforts method to account for oil and gas exploration and development expenditures. Under this method, drilling, completion and workover costs for successful exploratory wells and all development well costs are capitalized and depleted using the units-of-production method. Costs to drill exploratory wells that do not find proved reserves are expensed. Comprehensive Income. Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as mark-to-market gains or losses on foreign exchange derivative instruments designated as hedges, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. Leases. The Company determines if an arrangement is a lease at inception. When recording operating leases, the Company records a lease liability based on the net present value of the lease payments over the lease term and a corresponding right-of-use asset. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and operating lease liabilities, excluding current portion, on the balance sheet. Lease expense is recognized over the lease term on a straight-line basis. Lease terms include options to extend the lease when it is reasonably certain the Company will exercise the option. For leases with a term of twelve months or less, the Company does not record a right-of-use asset and a lease liability and records lease expense on a straight-line basis. See Note 9 to the condensed consolidated financial statements. Fair Values of Financial Instruments. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of its financial assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Specific inputs used to value the Company’s foreign exchange hedges were Euro to U.S. Dollar exchange rates for the expected future payment dates for the Company’s commitments denominated in Euros. See Note 6 to the condensed consolidated financial statements. There were no changes in the methods and assumptions used in measuring fair value. The Company’s financial liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018, respectively, are summarized below (in thousands): Significant Other Observable Inputs (Level 2) June 30, December 31, June 30, December 31, 2019 2018 2019 2018 Valuation Technique Foreign exchange hedges $ (11) $ (16) $ (11) $ (16) Cash flows approach New Accounting Pronouncements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), “Leases,” which requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous guidance. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 at January 1, 2019, using the current-period adjustment method. Under the current-period adjustment method, a reporting entity continues to apply legacy guidance, including disclosure requirements, in the comparative periods presented in the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. Adoption of ASU 2016-02 resulted in an increase in assets of $3.9 million with corresponding liabilities of $3.9 million and no impact on retained earnings at January 1, 2019. In August 2017, the FASB issued Accounting Standards Update No. 2017-12 (“ASU 2017-12”), “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This standard better aligns an entity’s risk management activities and financial reporting for hedging relationships and enhances the transparency and understandability of hedge results through improved disclosures. The Company adopted ASU 2017-12 at January 1, 2019. Adoption of ASU 2017-12 had no impact on the Company’s condensed consolidated financial statements. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Business Segments | |
Business Segments | 4. Business Segments The Company has identified two business segments based on the distinctness of their activities and products: Lime and Limestone Operations and Natural Gas Interests. All operations are in the United States. In evaluating the operating results of the Company’s segments, management primarily reviews revenues and gross profit. The Company does not allocate corporate overhead, interest expense or interest income to its business segments. The following table sets forth operating results and certain other financial data for the Company’s two business segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenues 2019 2018 2019 2018 Lime and limestone operations $ 38,581 $ $ 76,046 $ Natural gas interests 373 707 Total revenues $ 38,954 $ 39,242 $ 76,753 $ 74,529 Depreciation, depletion and amortization Lime and limestone operations $ 4,089 $ 4,129 $ 8,018 $ 8,141 Natural gas interests 136 159 275 324 Total depreciation, depletion and amortization $ 4,225 $ 4,288 $ 8,293 $ 8,465 Gross profit Lime and limestone operations $ 9,690 $ $ 18,376 $ 16,120 Natural gas interests 37 310 44 554 Total gross profit $ 9,727 $ 9,637 $ 18,420 $ 16,674 Capital expenditures Lime and limestone operations $ 6,676 $ $ 12,360 $ 19,378 Natural gas interests — — — — Total capital expenditures $ 6,676 $ 5,333 $ 12,360 $ 19,378 |
Income Per Share of Common Stoc
Income Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Income Per Share of Common Stock | |
Income Per Share of Common Stock | 5. Income Per Share of Common Stock The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income for basic and diluted income per common share $ 6,033 $ 6,638 $ 11,161 $ 10,900 Weighted-average shares for basic income per common share 5,614 5,612 5,593 Effect of dilutive securities: Employee and director stock options (1) 10 8 7 8 Adjusted weighted-average shares and assumed exercises for diluted income per common share 5,624 5,603 5,619 5,601 Basic net income per common share $ 1.07 $ 1.19 $ 1.99 $ 1.95 Diluted net income per common share $ 1.07 $ 1.18 $ 1.99 $ 1.95 (1) Excludes 0 and 14 stock options for the three- and six-month 2019 periods and 2 and 10 stock options for the three- and six-month 2018 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 6. Accumulated Other Comprehensive Income The following table presents the components of comprehensive income (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income $ 6,033 $ 6,638 $ 11,161 $ 10,900 Mark to market of foreign exchange hedges 32 (72) 6 (116) Deferred income tax (expense) benefit (7) 17 (1) 27 Comprehensive income $ 6,058 $ 6,583 $ 11,166 $ 10,811 In November 2016, to hedge against potential losses due to changes in the Euro to U.S. Dollar exchange rates, the Company entered into foreign exchange (“FX”) hedges with Wells Fargo Bank, N.A. (“Wells Fargo”) as the counterparty to the FX hedges to fix the exchange rates for 5.5 million Euros in connection with a contractual obligation related to the St. Clair kiln project, of which FX hedges with respect to 0.4 million Euros remained outstanding at June 30, 2019. In May 2018, the Company entered into additional FX hedges with Wells Fargo to fix the exchange rate for 2.2 million Euros in connection with a contractual obligation related to the purchase and installation of equipment at Arkansas Lime Company, of which FX hedges with respect to 0.3 million Euros remained outstanding at June 30, 2019. At June 30, 2019 and December 31, 2018, the Company had total FX hedges fixing the exchange rates for 0.7 million Euros and 1.4 million Euros, respectively. The Company will be exposed to credit losses in the event of non-performance by the counterparty to the FX hedges. The FX hedges have been effective as defined under applicable accounting rules. Therefore, changes in the fair value of the FX hedges are reflected in comprehensive income. Due to changes in the U.S. Dollar, compared to the Euro, the fair value of the hedges resulted in net liabilities of $11 and $16 at June 30, 2019 and December 31, 2018, respectively, which is included in accrued expenses. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2019 | |
Inventories, Net | |
Inventories, Net | 7. Inventories, Net Inventories are valued principally at the lower of cost, determined using the average cost method, or market. Costs for raw materials and finished goods include materials, labor, and production overhead. Inventories, net consisted of the following (in thousands): June 30, December 31, 2019 2018 Lime and limestone inventories: Raw materials $ 4,096 $ 4,693 Finished goods 1,994 2,153 6,090 6,846 Service parts inventories 6,239 6,000 $ 12,329 $ 12,846 |
Banking Facilities and Debt
Banking Facilities and Debt | 6 Months Ended |
Jun. 30, 2019 | |
Banking Facilities and Debt | |
Banking Facilities and Debt | 8. Banking Facilities and Debt The Company’s credit agreement with Wells Fargo Bank, N.A. (the “Lender”), as amended as of May 2, 2019, provides for a $75 million revolving credit facility (the “Revolving Facility”) and an incremental four-year accordion feature to borrow up to an additional $50 million on the same terms, subject to approval by the Lender or another lender selected by the Company. The credit agreement also provides for a $10 million letter of credit sublimit under the Revolving Facility. The Revolving Facility and any incremental loans mature on May 2, 2024. Interest rates on the Revolving Facility are, at the Company’s option, LIBOR plus a margin of 1.000% to 2.000%, or the Lender’s Prime Rate plus a margin of 0.000% to 1.000%; and a commitment fee range of 0.200% to 0.350% on the undrawn portion of the Revolving Facility. The Revolving Facility interest rate margins and commitment fee are determined quarterly in accordance with a pricing grid based upon the Company’s Cash Flow Leverage Ratio, defined as the ratio of the Company’s total funded senior indebtedness to earnings before interest, taxes, depreciation, depletion, amortization and stock-based compensation expense (“EBITDA”) for the 12 months ended on the last day of the most recent calendar quarter, plus pro forma EBITDA from any businesses acquired during the period. Pursuant to a security agreement, dated August 25, 2004, the Revolving Facility is secured by the Company’s existing and hereafter acquired tangible assets, intangible assets and real property. The maturity of the Revolving Facility and any incremental loans can be accelerated if any event of default, as defined under the credit agreement, occurs. The Company’s maximum Cash Flow Leverage Ratio is 3.50 to 1. The Company may pay dividends so long as it remains in compliance with the provisions of the Company’s credit agreement, and may purchase, redeem or otherwise acquire shares of its common stock so long as its 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. As of June 30, 2019, the Company had no debt outstanding and no draws on the Revolving Facility other than $1.2 million of letters of credit, including $0.8 million related to the St. Clair kiln project, which count as draws against the available commitment under the Revolving Facility. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | 9. Leases The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 8 years, with a weighted-average remaining lease term of 3 years at June 30, 2019. Some operating leases include options to extend the leases for up to 5 years. At January 1, 2019, upon implementation of ASU 2016-02, the liability for the Company’s operating leases was discounted to present value using a weighted-average discount rate of 3.5%. The components of lease costs for the three- and six-months ended June 30, 2019 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Classification 2019 2019 Operating lease costs (1) Cost of revenues $ $ 1,040 Operating lease costs Selling, general and administrative expenses 107 Rental revenues Other (income) expense (13) (25) Net lease cost $ 596 $ 1,122 (1) Includes the costs of leases with a term of 12 months or less. As of June 30, 2019, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands): 2019 (excluding the six months ended June 30, 2019) $ 813 2020 1,388 2021 1,124 2022 480 2023 187 Thereafter 264 Total future minimum lease payments 4,256 Less imputed interest (244) Present value of lease liabilities $ 4,012 Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2019 was as follows (in thousands): Six Months Ended June 30, 2019 Cash payments for operating lease liabilities $ 950 Right-of-use assets obtained in exchange for operating lease obligations $ 857 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The Company has estimated that its effective income tax rate for 2019 will be 20.1%. The primary reason for the effective income tax rate being below the federal statutory rate is due to statutory depletion, which is allowed for income tax purposes and is a permanent difference between net income for financial reporting purposes and taxable income. In 2018, the effective income tax rate was further reduced from the federal statutory rate due to research and development tax credits associated with the construction of the St. Clair kiln project. |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2019 | |
Dividends | |
Dividends | 11. Dividends On June 14, 2019, the Company paid $0.8 million in cash dividends, based on a dividend of $0.135 (13.5 cents) per share of its common stock, to shareholders of record at the close of business on May 24, 2019. On March 15, 2019, the Company paid $0.8 million in cash dividends, based on a dividend of $0.135 (13.5 cents) per share on its common stock, to shareholders of record at the close of business on February 22, 2019. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Event. | |
Subsequent Event | 12. Subsequent Event On July 31, 2019, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.135 (13.5 cents) per share on the Company’s common stock. This dividend is payable on September 13, 2019 to shareholders of record at the close of business on August 23, 2019. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies | |
Revenue Recognition | Revenue Recognition. The Company recognizes revenue for its Lime and Limestone Operations in accordance with the terms of its purchase orders, contracts or purchase agreements, which is generally upon shipment, and when payment is considered probable. Revenues include external freight billed to customers with related costs accounted for as fulfillment costs and included in cost of revenues. The Company’s returns and allowances are minimal. External freight billed to customers included in 2019 and 2018 revenues was $7.1 million and $6.8 million, for the respective three-month periods, and $13.9 and $12.7 million, for the respective six-month periods, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its Natural Gas Interests, the Company recognizes revenue in the month of production and delivery. The Company operates its Lime and Limestone Operations within a single geographic region and derives all revenues from that segment from the sale of lime and limestone products. Revenues from the Company’s Natural Gas Interests are from the Company’s royalty and non-operating working interest in Johnson County, Texas. See Note 4 to the condensed consolidated financial statements for disaggregation of revenues by segment, which the Company believes best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The majority of the Company’s trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts or purchase agreements. Credit losses relating to trade receivables have generally been within management expectations and historical trends. Uncollected trade receivables are charged-off when identified by management to be unrecoverable. The Company maintains an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments. |
Successful-Efforts Method Used for Natural Gas Interests | Successful-Efforts Method Used for Natural Gas Interests. The Company uses the successful-efforts method to account for oil and gas exploration and development expenditures. Under this method, drilling, completion and workover costs for successful exploratory wells and all development well costs are capitalized and depleted using the units-of-production method. Costs to drill exploratory wells that do not find proved reserves are expensed. |
Comprehensive Income | Comprehensive Income. Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as mark-to-market gains or losses on foreign exchange derivative instruments designated as hedges, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. |
Leases | Leases. The Company determines if an arrangement is a lease at inception. When recording operating leases, the Company records a lease liability based on the net present value of the lease payments over the lease term and a corresponding right-of-use asset. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and operating lease liabilities, excluding current portion, on the balance sheet. Lease expense is recognized over the lease term on a straight-line basis. Lease terms include options to extend the lease when it is reasonably certain the Company will exercise the option. For leases with a term of twelve months or less, the Company does not record a right-of-use asset and a lease liability and records lease expense on a straight-line basis. See Note 9 to the condensed consolidated financial statements. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of its financial assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Specific inputs used to value the Company’s foreign exchange hedges were Euro to U.S. Dollar exchange rates for the expected future payment dates for the Company’s commitments denominated in Euros. See Note 6 to the condensed consolidated financial statements. There were no changes in the methods and assumptions used in measuring fair value. The Company’s financial liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018, respectively, are summarized below (in thousands): Significant Other Observable Inputs (Level 2) June 30, December 31, June 30, December 31, 2019 2018 2019 2018 Valuation Technique Foreign exchange hedges $ (11) $ (16) $ (11) $ (16) Cash flows approach |
New Accounting Pronouncements | New Accounting Pronouncements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), “Leases,” which requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous guidance. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 at January 1, 2019, using the current-period adjustment method. Under the current-period adjustment method, a reporting entity continues to apply legacy guidance, including disclosure requirements, in the comparative periods presented in the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. Adoption of ASU 2016-02 resulted in an increase in assets of $3.9 million with corresponding liabilities of $3.9 million and no impact on retained earnings at January 1, 2019. In August 2017, the FASB issued Accounting Standards Update No. 2017-12 (“ASU 2017-12”), “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This standard better aligns an entity’s risk management activities and financial reporting for hedging relationships and enhances the transparency and understandability of hedge results through improved disclosures. The Company adopted ASU 2017-12 at January 1, 2019. Adoption of ASU 2017-12 had no impact on the Company’s condensed consolidated financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies | |
Schedule of the entity's financial liabilities measured at fair value on a recurring basis (in thousands) | The Company’s financial liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018, respectively, are summarized below (in thousands): Significant Other Observable Inputs (Level 2) June 30, December 31, June 30, December 31, 2019 2018 2019 2018 Valuation Technique Foreign exchange hedges $ (11) $ (16) $ (11) $ (16) Cash flows approach |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Segments | |
Schedule of operating results and certain other financial data for the business segments) | The following table sets forth operating results and certain other financial data for the Company’s two business segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenues 2019 2018 2019 2018 Lime and limestone operations $ 38,581 $ $ 76,046 $ Natural gas interests 373 707 Total revenues $ 38,954 $ 39,242 $ 76,753 $ 74,529 Depreciation, depletion and amortization Lime and limestone operations $ 4,089 $ 4,129 $ 8,018 $ 8,141 Natural gas interests 136 159 275 324 Total depreciation, depletion and amortization $ 4,225 $ 4,288 $ 8,293 $ 8,465 Gross profit Lime and limestone operations $ 9,690 $ $ 18,376 $ 16,120 Natural gas interests 37 310 44 554 Total gross profit $ 9,727 $ 9,637 $ 18,420 $ 16,674 Capital expenditures Lime and limestone operations $ 6,676 $ $ 12,360 $ 19,378 Natural gas interests — — — — Total capital expenditures $ 6,676 $ 5,333 $ 12,360 $ 19,378 |
Income Per Share of Common St_2
Income Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Per Share of Common Stock | |
Schedule of computation of basic and diluted income per common share | The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income for basic and diluted income per common share $ 6,033 $ 6,638 $ 11,161 $ 10,900 Weighted-average shares for basic income per common share 5,614 5,612 5,593 Effect of dilutive securities: Employee and director stock options (1) 10 8 7 8 Adjusted weighted-average shares and assumed exercises for diluted income per common share 5,624 5,603 5,619 5,601 Basic net income per common share $ 1.07 $ 1.19 $ 1.99 $ 1.95 Diluted net income per common share $ 1.07 $ 1.18 $ 1.99 $ 1.95 Excludes 0 and 14 stock options for the three- and six-month 2019 periods and 2 and 10 stock options for the three- and six-month 2018 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income | |
Schedule of components of comprehensive income | The following table presents the components of comprehensive income (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income $ 6,033 $ 6,638 $ 11,161 $ 10,900 Mark to market of foreign exchange hedges 32 (72) 6 (116) Deferred income tax (expense) benefit (7) 17 (1) 27 Comprehensive income $ 6,058 $ 6,583 $ 11,166 $ 10,811 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventories, Net | |
Schedule of inventories, net | Inventories, net consisted of the following (in thousands): June 30, December 31, 2019 2018 Lime and limestone inventories: Raw materials $ 4,096 $ 4,693 Finished goods 1,994 2,153 6,090 6,846 Service parts inventories 6,239 6,000 $ 12,329 $ 12,846 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of lease costs | The components of lease costs for the three- and six-months ended June 30, 2019 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Classification 2019 2019 Operating lease costs (1) Cost of revenues $ $ 1,040 Operating lease costs Selling, general and administrative expenses 107 Rental revenues Other (income) expense (13) (25) Net lease cost $ 596 $ 1,122 (1) Includes the costs of leases with a term of 12 months or less. |
Schedule of maturity of lease liability | Company is reasonably certain to exercise, were as follows (in thousands): 2019 (excluding the six months ended June 30, 2019) $ 813 2020 1,388 2021 1,124 2022 480 2023 187 Thereafter 264 Total future minimum lease payments 4,256 Less imputed interest (244) Present value of lease liabilities $ 4,012 |
Schedule of supplemental cash flow information | Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2019 was as follows (in thousands): Six Months Ended June 30, 2019 Cash payments for operating lease liabilities $ 950 Right-of-use assets obtained in exchange for operating lease obligations $ 857 |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Organization | |
Number of business segments | 2 |
Accounting Policies - Revenue R
Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue Recognition | ||||
External freight billed to customers included in revenue | $ 7.1 | $ 6.8 | $ 13.9 | $ 12.7 |
Accounting Policies - Fair Valu
Accounting Policies - Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Values of Financial Instruments | ||
Foreign exchange hedges liabilities | $ (11) | $ (16) |
Recurring | Fair value | Cash flows approach | ||
Fair Values of Financial Instruments | ||
Foreign exchange hedges liabilities | (11) | (16) |
Recurring | Fair value | Significant Other Observable Inputs (Level 2) | Cash flows approach | ||
Fair Values of Financial Instruments | ||
Foreign exchange hedges liabilities | $ (11) | $ (16) |
Accounting Policies - New Accou
Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements | ||
Right-of-use asset | $ 4,054 | |
Right-of-use liability | $ 4,012 | |
Accounting Standards Update 2016-02 "Leases" | Adjustment | ||
New Accounting Pronouncements | ||
Right-of-use asset | $ 3,900 | |
Right-of-use liability | $ 3,900 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Business segments | ||||
Number of business segments | segment | 2 | |||
Revenues | $ 38,954 | $ 39,242 | $ 76,753 | $ 74,529 |
Depreciation, depletion and amortization | 4,225 | 4,288 | 8,293 | 8,465 |
Gross profit | 9,727 | 9,637 | 18,420 | 16,674 |
Capital expenditures | 6,676 | 5,333 | 12,360 | 19,378 |
Lime and limestone operations | ||||
Business segments | ||||
Depreciation, depletion and amortization | 4,089 | 4,129 | 8,018 | 8,141 |
Gross profit | 9,690 | 9,327 | 18,376 | 16,120 |
Capital expenditures | 6,676 | 5,333 | 12,360 | 19,378 |
Natural gas interests | ||||
Business segments | ||||
Depreciation, depletion and amortization | 136 | 159 | 275 | 324 |
Gross profit | 37 | 310 | 44 | 554 |
Lime and limestone operations | ||||
Business segments | ||||
Revenues | 38,581 | 38,557 | 76,046 | 73,271 |
Lime and limestone operations | Lime and limestone operations | ||||
Business segments | ||||
Revenues | 38,581 | 38,557 | 76,046 | 73,271 |
Natural gas interests | ||||
Business segments | ||||
Revenues | 373 | 685 | 707 | 1,258 |
Natural gas interests | Natural gas interests | ||||
Business segments | ||||
Revenues | $ 373 | $ 685 | $ 707 | $ 1,258 |
Income Per Share of Common St_3
Income Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income per share of common stock: | ||||||
Net income for basic and diluted income per common share | $ 6,033 | $ 5,128 | $ 6,638 | $ 4,262 | $ 11,161 | $ 10,900 |
Weighted-average shares for basic income per common share (in shares) | 5,614 | 5,595 | 5,612 | 5,593 | ||
Effect of dilutive securities: | ||||||
Employee and director stock options (in shares) | 10 | 8 | 7 | 8 | ||
Adjusted weighted-average shares and assumed exercises for diluted income per common share (in shares) | 5,624 | 5,603 | 5,619 | 5,601 | ||
Basic net income per common share (in dollars per share) | $ 1.07 | $ 1.19 | $ 1.99 | $ 1.95 | ||
Diluted net income per common share (in dollars per share) | $ 1.07 | $ 1.18 | $ 1.99 | $ 1.95 | ||
Options | ||||||
Anti-dilutive securities | ||||||
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities | 0 | 2 | 14 | 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | May 31, 2018EUR (€) | Nov. 30, 2016EUR (€) | |
Components of comprehensive income | |||||||||||
Net income | $ 6,033 | $ 5,128 | $ 6,638 | $ 4,262 | $ 11,161 | $ 10,900 | |||||
Mark to market of foreign exchange hedges | 32 | (72) | 6 | (116) | |||||||
Deferred income tax benefit | (7) | 17 | (1) | 27 | |||||||
Comprehensive (loss) income | 6,058 | $ 5,108 | $ 6,583 | $ 4,228 | 11,166 | $ 10,811 | |||||
Foreign exchange hedges liabilities | (11) | (11) | $ (16) | ||||||||
Foreign Exchange Contract | |||||||||||
Components of comprehensive income | |||||||||||
Foreign exchange hedges liabilities | $ (400) | $ (400) | € (0.3) | ||||||||
Foreign Exchange Contract | Designated as Hedging Instrument | |||||||||||
Components of comprehensive income | |||||||||||
Notional amount | € | € 0.7 | € 1.4 | € 2.2 | € 5.5 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Lime and limestone inventories: | ||
Raw materials | $ 4,096 | $ 4,693 |
Finished goods | 1,994 | 2,153 |
Total | 6,090 | 6,846 |
Service parts inventories | 6,239 | 6,000 |
Total inventories | $ 12,329 | $ 12,846 |
Banking Facilities and Debt (De
Banking Facilities and Debt (Details) $ in Millions | May 07, 2015USD ($) | Jun. 30, 2019USD ($) | May 02, 2019USD ($) |
Banking facilities and other debt | |||
Total Debt | $ 0 | ||
Maximum | |||
Banking facilities and other debt | |||
Pro forma Cash Flow Leverage Ratio to be maintained to purchase, redeem or otherwise acquire shares of common stock | 3 | ||
Cash flow leverage ratio | 3.50 | ||
Revolving Facility | |||
Banking facilities and other debt | |||
Maximum borrowing capacity | $ 75 | ||
Accordion feature period | 4 years | ||
Maximum borrowing capacity accordion feature | $ 50 | ||
Letters of credit outstanding | $ 1.2 | ||
The amount of letters of credit outstanding related to the St Clair kiln project | 0.8 | ||
Revolving Facility | Minimum | |||
Banking facilities and other debt | |||
Commitment fee (as a percent) | 0.20% | ||
Revolving Facility | Minimum | LIBOR | |||
Banking facilities and other debt | |||
Interest rate margin (as a percent) | 1.00% | ||
Revolving Facility | Minimum | Lender's prime rate | |||
Banking facilities and other debt | |||
Interest rate margin (as a percent) | 0.00% | ||
Revolving Facility | Maximum | |||
Banking facilities and other debt | |||
Commitment fee (as a percent) | 0.35% | ||
Revolving Facility | Maximum | LIBOR | |||
Banking facilities and other debt | |||
Interest rate margin (as a percent) | 2.00% | ||
Revolving Facility | Maximum | Lender's prime rate | |||
Banking facilities and other debt | |||
Interest rate margin (as a percent) | 1.00% | ||
Letter of Credit | |||
Banking facilities and other debt | |||
Maximum borrowing capacity | $ 10 |
Leases - Costs Disclosure (Deta
Leases - Costs Disclosure (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases | ||
Weighted average remaining lease term | 3 years | 3 years |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Average discount rate (as a percent) | 3.50% | 3.50% |
Lease cost | ||
Total lease cost | $ 596 | $ 1,122 |
Minimum | ||
Leases | ||
Remaining lease term | 0 years | |
Maximum | ||
Leases | ||
Remaining lease term | 8 years | |
Lease extension term | 5 years | |
Lease Term | 12 months | 12 months |
Cost of revenues | ||
Lease cost | ||
Operating lease cost | $ 555 | $ 1,040 |
Selling, general and administrative expense. | ||
Lease cost | ||
Operating lease cost | 54 | 107 |
Other (income) expense, net | ||
Lease cost | ||
Rental revenues | $ (13) | $ (25) |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Maturity | |
2019 (excluding the six months ended June 30, 2019) | $ 813 |
2020 | 1,388 |
2021 | 1,124 |
2022 | 480 |
2023 | 187 |
Thereafter | 264 |
Total future minimum lease payments | 4,256 |
Less imputed interest | (244) |
Present value of lease liabilities | $ 4,012 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases | |
Cash payments for operating lease liabilities | $ 950 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 857 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
Effective income tax rate (as a percent) | 20.10% |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 14, 2019 | Mar. 15, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Dividends | ||||
Cash dividends paid | $ 800 | $ 800 | $ 1,517 | $ 1,511 |
Cash dividend (in dollars per share) | $ 0.135 | $ 0.135 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Jul. 31, 2019 | Jun. 14, 2019 | Mar. 15, 2019 |
Subsequent event | |||
Quarterly cash dividend declared (in dollars per share) | $ 0.135 | $ 0.135 | |
Subsequent event | |||
Subsequent event | |||
Dividends payable date declared | Jul. 31, 2019 | ||
Quarterly cash dividend declared (in dollars per share) | $ 0.135 | ||
Dividends payable date to be paid | Sep. 13, 2019 | ||
Dividends payable date of record | Aug. 23, 2019 |