United States Lime & Minerals (USLM) released its third quarter 2017 results, which show revenues at $36.9 million, a 4.4 percent decrease compared with the same time period in 2016.
Revenues from the company’s lime and limestone operations in the third quarter of 2017 decreased $1.7 million, or 4.4 percent, to $36.4 million from $38.1 million in the third quarter of 2016. According to the company, the decrease in lime and limestone revenues can be attributed to decreased demand, primarily from its construction and environmental customers as a result of Hurricane Harvey. In addition, prices realized for the company’s lime and limestone products were flat in the third quarter of 2017, compared with the third quarter of 2016.
In the first nine months of 2017, the company’s revenues were $109.6 million, compared with $105.1 million in the comparable 2016 period, an increase of $4.5 million, or 4.3 percent.
Despite the decrease in USLM’s lime and limestone operations in the third quarter, that segment of the company’s revenue increased $4.3 million, or 4.1 percent, to $107.9 million compared with $103.6 million in the first nine months of 2016. This increase was mainly due to increased demand from USLM’s oil and gas services and construction customers, the company says. Prices realized for the company’s lime and limestone products were slightly higher in the first nine months of 2017 compared with the same time period in 2016.
“We are pleased with the continuing rebound in demand for our lime products from our oil and gas services customers during the third quarter 2017,” says Timothy Byrne, president and CEO at USLM. “We are grateful that our employees impacted by Hurricane Harvey are all safe and our facilities suffered only minor damages, but demand from certain of our construction customers during the third quarter was adversely impacted by the storm.”
Finally, the company reported net income of $5.7 million ($1.01 per share diluted) in the third quarter 2017, compared with a net income of $6.1 million ($1.09 per share diluted) in the third quarter 2016, a decrease of $0.4 million, or 6.8 percent. Net income in the first nine months 2017 was $15.6 million ($2.79 per share diluted), an increase of $1.7 million, or 12.5 percent, compared with the first nine months 2016 net income of $13.8 million ($2.48 per share diluted).
