UNITED STATES LIME & MINERALS INC

Previous wording

Forward-Looking Statements. Any statements contained in this Report that are not statements of historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this Report, including without limitation statements relating to the Company’s plans, strategies, objectives, expectations, intentions, and adequacy of resources, are identified by such words as “will,” “could,” “should,” “would,” “believe,” “possible,” “potential,” “expect,” “intend,” “plan,” “schedule,” “estimate,” “anticipate,” and “project.” The Company undertakes no obligation to publicly update or revise any forward-looking statements. 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, r…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Forward-Looking Statements. Any statements contained in this Report that are not statements of historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this Report, including without limitation statements relating to the Company’s plans, strategies, objectives, expectations, intentions, and adequacy of resources, are identified by such words as “will,” “could,” “should,” “would,” “believe,” “possible,” “potential,” “expect,” “intend,” “plan,” “schedule,” “estimate,” “anticipate,” and “project.” The Company undertakes no obligation to publicly update or revise any forward-looking statements. 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, r…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Our revenues increased 27.3% in the first quarter 2025, compared to the first quarter 2024, primarily due to a 19.2% increase in sales volumes of our lime and limestone products, which was principally due to increased demand from our construction and environmental customers, and a 7.9% increase in the average selling prices for our lime and limestone products. The increase in demand from our construction customers during the quarter was further amplified by some large, ongoing construction projects.

Current wording

Our revenues increased 19.6% and 23.3% in the second quarter and first six months 2025, respectively, compared to the second quarter and first six months 2024. Revenues increased in the second quarter 2025, compared to the second quarter 2024, primarily due to a 12.1% increase in sales volumes of our lime and limestone products, which was principally due to increased demand from our construction, environmental, and steel customers, and a 7.6% increase in the average selling prices for our lime and limestone products. Revenues increased in the first six months 2025, compared to the first six months 2024, primarily due to a 15.7% increase in sales volumes of our lime and limestone products, which was principally due to increased demand from our construction, environmental, and steel customers, and a 7.6% increase in the average selling prices for our lime and limestone products.

Previous wording

Our gross profit increased 50.8% in the first quarter 2025, compared to the first quarter 2024. The increase in gross profit resulted primarily from the increase in revenues discussed above.

Current wording

Our gross profit increased 20.3% and 34.5% in the second quarter and first six months 2025, respectively, compared to the second quarter and first six months 2024. The increases in gross profit resulted primarily from the increases in revenues discussed above.

Previous wording

Net cash provided by operating activities was $39.4 million in the first quarter 2025, compared to $27.2 million in the first quarter 2024, an increase of $12.3 million, or 45.2%. Our net cash provided by operating activities is composed of net income, depreciation, depletion, and amortization (“DD&A”), deferred income taxes, stock-based compensation, other non-cash items included in net income and changes in working capital. In the first quarter 2025, net cash provided by operating activities was principally composed of $34.1 million net income, $6.1 million DD&A, and $2.3 million stock-based compensation, partially offset by $0.6 million deferred income taxes and a $2.7 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first quarter 2025 included an increase of $11.8 million in trade receivables, net, due primarily to increased sales in the first quarter 2025 compared to the fourth quarter 2024, and an increase of $0.2 million in inventories, partially offset by a decrease of $1.0 million in prepaid expenses and other current assets and an increase of $8.1 million in accounts payable and accrued expenses. In the first quarter 2024, net cash provided by operating activities was principally composed of $22.4 million net income, $6.1 million DD&A, and $1.2 million stock-based compensation, partially offset by $0.2 million deferred income taxes and a $2.2 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first quarter 2024 included an increase of $4.1 million in trade receivables, net, due primarily to increased sales in the first quarter 2024 compared to the fourth quarter 2023, and an increase of $1.4 million in inventories, partially offset by an increase of $2.6 million in accounts payable and accrued expenses and a decrease of $0.6 million in prepaid expenses and other current assets.

Current wording

Net cash provided by operating activities was $73.5 million in the first six months 2025, compared to $48.4 million in the first six months 2024, an increase of $25.1 million, or 51.9%. Our net cash provided by operating activities is composed of net income, depreciation, depletion, and amortization (“DD&A”), deferred income taxes, stock-based compensation, other non-cash items included in net income and changes in working capital. In the first six months 2025, net cash provided by operating activities was principally composed of $64.9 million net income, $12.3 million DD&A, and $4.3 million stock-based compensation, partially offset by $2.3 million deferred income taxes and a $6.1 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six months 2025 included an increase of $10.4 million in trade receivables, net, due primarily to increased sales in the second quarter 2025 compared to the fourth quarter 2024, partially offset by decreases of $2.1 million in inventories and $1.5 million in prepaid expenses and other current assets and an increase of $0.5 million in accounts payable and accrued expenses. In the first six months 2024, net cash provided by operating activities was principally composed of $48.5 million net income, $12.0 million DD&A, and $2.4 million stock-based compensation, partially offset by $0.4 million deferred income taxes and a $14.1 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six months 2024 included an increase of $8.2 million in trade receivables, net, due primarily to increased sales in the second quarter 2024 compared to the fourth quarter 2023, increases of $3.0 million in inventories and $1.6 million in other assets, and a decrease of $2.4 million in accounts payable and accrued expenses, partially offset by a decrease of $1.2 million in prepaid expenses and other current assets.

Previous wording

We had $14.9 million in capital expenditures, including $7.8 million related to the Texas kiln project, in the first quarter 2025, compared to $6.8 million in the first quarter 2024. Net cash used in financing activities was $2.0 million in the first quarter 2025, compared to $1.5 million in the first quarter 2024, consisting primarily of cash dividends paid in each period.

Current wording

We had $28.1 million in capital expenditures in the first six months 2025, compared to $11.2 million in the first six months 2024. Capital expenditures in the first six months 2025 included $14.1 million related to the Texas kiln project. Net cash used in financing activities was $3.7 million in the first six months 2025, compared to $2.9 million in the first six months 2024, consisting primarily of cash dividends paid in each period.

Previous wording

Cash and cash equivalents increased $22.6 million to $300.6 million at March 31, 2025 from $278.0 million at December 31, 2024.

Current wording

Cash and cash equivalents increased $41.9 million to $319.9 million at June 30, 2025 from $278.0 million at December 31, 2024.

Previous wording

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of March 31, 2025, we did not have any material commitments for open purchase orders other than $28.2 million related to the Texas kiln project. As of March 31, 2025, we had incurred a total of $10.5 million on the Texas kiln project, of which $9.1 million had been paid in cash.

Current wording

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of June 30, 2025, we were committed to $29.2 million of open purchase orders related to the Texas kiln project. We did not have any other material commitments for open purchase orders. As of June 30, 2025, we had incurred a total of $17.4 million on the Texas kiln project, of which $15.4 million had been paid in cash.

Previous wording

At March 31, 2025, we had no debt outstanding and no draws on the Revolving Facility other than $6.8 million of letters of credit, principally related to the Texas kiln project, which count as draws against the available commitment under the Revolving Facility. We believe that, absent a significant acquisition, cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including current and possible future modernization, expansion, and development projects, and liquidity needs and allow us to pay regular quarterly cash dividends for the near future.

Current wording

At June 30, 2025, we had no debt outstanding and no draws on the Revolving Facility other than $7.4 million of letters of credit, principally related to the Texas kiln project, which count as draws against the available commitment under the Revolving Facility. We believe that, absent a significant acquisition, cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including current and possible future modernization, expansion, and development projects, and liquidity needs and allow us to pay regular quarterly cash dividends for the near future.

Previous wording

Revenues in the first quarter 2025 were $91.3 million, compared to $71.7 million in the first quarter 2024, an increase of $19.6 million, or 27.3%. The increase in our revenues in the first quarter 2025, compared to the first quarter 2024, resulted from increased sales volumes of our lime and limestone products, principally due to increased demand from our construction and environmental customers and an increase in the average selling prices for our lime and limestone products.

Current wording

Revenues in the second quarter 2025 were $91.5 million, compared to $76.5 million in the second quarter 2024, an increase of $15.0 million, or 19.6%. For the first six months 2025, revenues were $182.8 million, compared to $148.2 million in the first six months 2024, an increase of $34.5 million, or 23.3%. The increases in our revenues in the second quarter and first six months 2025, compared to the comparable 2024 periods, resulted from increased sales volumes of our lime and limestone products, principally due to increased demand from our construction, environmental and steel customers, and an increase in the average selling prices for our lime and limestone products.

Previous wording

Gross profit was $46.2 million in the first quarter 2025, compared to $30.6 million in the first quarter 2024, an increase of $15.5 million, or 50.8%. The increase in gross profit in the first quarter 2025, compared to the first quarter 2024, resulted primarily from the increased revenues discussed above.

Current wording

Gross profit was $41.9 million in the second quarter 2025, compared to $34.8 million in the second quarter 2024, an increase of $7.1 million, or 20.3%. Gross profit was $88.0 million in the first six months 2025, compared to $65.4 million in the first six months 2024, an increase of $22.6 million, or 34.5%. The increases in gross profit in the second quarter and first six months 2025, compared to the comparable 2024 periods, resulted primarily from the increased revenues discussed above.

Previous wording

Selling, general, and administrative (“SG&A”) expenses were $6.3 million in the first quarter 2025, compared to $4.8 million in the first quarter 2024, an increase of $1.4 million, or 29.2%. The increase in SG&A expenses in the first quarter 2025, compared to the first quarter 2024, was primarily due to increased personnel expenses, including stock-based compensation.

Current wording

Selling, general, and administrative (“SG&A”) expenses were $6.2 million in the second quarter 2025, compared to $4.9 million in the second quarter 2024, an increase of $1.3 million, or 26.8%. SG&A expenses were $12.5 million in the first six months 2025, compared to $9.7 million in the first six months 2024, an increase of $2.7 million, or 28.0%. The increases in SG&A expenses in the 2025 periods, compared to the comparable 2024 periods, were primarily due to increased personnel expenses, including stock-based compensation.

Previous wording

Other (income) expense, net was $3.1 million income in the first quarter 2025 compared to $2.5 million income in the first quarter 2024. The increase of $0.6 million during the first quarter 2025, compared to the first quarter 2024, was primarily due to interest earned on higher average balances of our cash and cash equivalents.

Current wording

six months 2024. The increases of $0.3 million and $0.9 million in other (income) expense, net, during the 2025 periods, compared to the comparable 2024 periods, were primarily due to interest earned on higher average balances of our cash and cash equivalents.

Previous wording

Income tax expense was $8.9 million in the first quarter 2025, compared to $5.9 million in the first quarter 2024. The increase in income tax expense was due to the increase in income before taxes.

Current wording

Income tax expense was $8.0 million and $16.8 million in the second quarter and first six months 2025, respectively, compared to $6.7 million and $12.5 million in the second quarter and first six months 2024, respectively. The increases in income tax expense in the 2025 periods, compared to the comparable 2024 periods, were due to the increases in income before taxes.