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EXCEL - IDEA: XBRL DOCUMENT - UNITED STATES LIME & MINERALS INCFinancial_Report.xls

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

Form 10-Q

 

(Mark One)

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2014

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from            to            

 

Commission file number is 000-4197

 

UNITED STATES LIME & MINERALS, INC.

(Exact name of registrant as specified in its charter)

 

TEXAS

 

75-0789226

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

5429 LBJ Freeway, Suite 230, Dallas, TX

 

75240

(Address of principal executive offices)

 

(Zip Code)

 

(972) 991-8400

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

 

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).  Yes x  No o

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

 

Large accelerated filer o

 

Accelerated filer x

 

 

 

Non-accelerated filer o

 

Smaller reporting company o

(Do not check if a smaller reporting company)

 

 

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

 

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date:  As of October 30, 2014, 5,577,569 shares of common stock, $0.10 par value, were outstanding.

 

 

 



 

PART I. FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

 

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

(Unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2014

 

2013

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

58,272

 

$

49,475

 

Trade receivables, net

 

19,687

 

14,097

 

Inventories

 

12,859

 

13,688

 

Prepaid expenses and other current assets

 

1,371

 

1,584

 

Total current assets

 

92,189

 

78,844

 

 

 

 

 

 

 

Property, plant and equipment

 

256,298

 

249,714

 

Less accumulated depreciation and depletion

 

(150,653

)

(141,227

)

Property, plant and equipment, net

 

105,645

 

108,487

 

 

 

 

 

 

 

Other assets, net

 

161

 

195

 

 

 

 

 

 

 

Total assets

 

$

197,995

 

$

187,526

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current installments of debt

 

$

5,000

 

$

5,000

 

Accounts payable

 

4,823

 

5,812

 

Accrued expenses

 

4,083

 

3,536

 

Total current liabilities

 

13,906

 

14,348

 

 

 

 

 

 

 

Debt, excluding current installments

 

12,917

 

16,667

 

Deferred tax liabilities, net

 

18,209

 

17,799

 

Other liabilities

 

1,529

 

1,907

 

Total liabilities

 

46,561

 

50,721

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

651

 

650

 

Additional paid-in capital

 

20,141

 

19,319

 

Accumulated other comprehensive loss

 

(1,068

)

(1,498

)

Retained earnings

 

181,677

 

168,133

 

Less treasury stock, at cost

 

(49,967

)

(49,799

)

 

 

 

 

 

 

Total stockholders’ equity

 

151,434

 

136,805

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

197,995

 

$

187,526

 

 

See accompanying notes to condensed consolidated financial statements.

 

2



 

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share amounts)

(Unaudited)

 

 

 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lime and limestone operations

 

$

37,855

 

96.9

%

$

35,498

 

96.2

%

$

110,226

 

96.3

%

$

99,337

 

95.8

%

Natural gas interests

 

1,218

 

3.1

%

1,401

 

3.8

%

4,214

 

3.7

%

4,319

 

4.2

%

 

 

39,073

 

100.0

%

36,899

 

100.0

%

114,440

 

100.0

%

103,656

 

100.0

%

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labor and other operating expenses

 

25,461

 

65.2

%

24,200

 

65.6

%

74,590

 

65.2

%

68,450

 

66.0

%

Depreciation, depletion and amortization

 

3,729

 

9.5

%

3,589

 

9.7

%

10,952

 

9.5

%

10,841

 

10.5

%

 

 

29,190

 

74.7

%

27,789

 

75.3

%

85,542

 

74.7

%

79,291

 

76.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

9,883

 

25.3

%

9,110

 

24.7

%

28,898

 

25.3

%

24,365

 

23.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

2,404

 

6.2

%

2,223

 

6.0

%

7,004

 

6.1

%

6,665

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

7,479

 

19.1

%

6,887

 

18.7

%

21,894

 

19.2

%

17,700

 

17.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

369

 

0.9

%

451

 

1.2

%

1,176

 

1.0

%

1,405

 

1.3

%

Other, net

 

10

 

0.0

%

59

 

0.2

%

(43

)

(0.0

)%

(15

)

(0.0

)%

 

 

379

 

0.9

%

510

 

1.4

%

1,133

 

1.0

%

1,390

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

7,100

 

18.2

%

6,377

 

17.3

%

20,761

 

18.2

%

16,310

 

15.8

%

Income tax expense

 

1,674

 

4.3

%

1,588

 

4.3

%

5,125

 

4.5

%

4,139

 

4.0

%

Net income

 

$

5,426

 

13.9

%

$

4,789

 

13.0

%

$

15,636

 

13.7

%

$

12,171

 

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.97

 

 

 

$

0.86

 

 

 

$

2.80

 

 

 

$

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

0.97

 

 

 

$

0.86

 

 

 

$

2.80

 

 

 

$

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividend per share of common stock

 

$

0.125

 

 

 

$

 

 

 

$

0.375

 

 

 

$

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

3



 

UNITED STATES LIME& MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

(Unaudited)

 

 

 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net income

 

$

5,426

 

$

4,789

 

$

15,636

 

$

12,171

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

Mark to market of interest rate hedges, net of tax expenses of $83 and $81, respectively, for the quarters, and $245 and $310, respectively, for the nine-month periods

 

145

 

142

 

430

 

542

 

Total other comprehensive income

 

145

 

142

 

430

 

542

 

Comprehensive income

 

$

5,571

 

$

4,931

 

$

16,066

 

$

12,713

 

 

See accompanying notes to condensed consolidated financial statements.

 

4



 

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)

 

 

 

September 30,

 

 

 

2014

 

2013

 

Operating Activities:

 

 

 

 

 

Net income

 

$

15,636

 

$

12,171

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation, depletion and amortization

 

11,091

 

11,008

 

Amortization of deferred financing costs

 

34

 

34

 

Deferred income taxes

 

165

 

1,297

 

Loss on sale of property, plant and equipment

 

54

 

53

 

Stock-based compensation

 

822

 

684

 

Changes in operating assets and liabilities:

 

 

 

 

 

Trade receivables, net

 

(5,590

)

(3,215

)

Inventories

 

829

 

577

 

Prepaid expenses and other current assets

 

213

 

(80

)

Other assets

 

1

 

3

 

Accounts payable and accrued expenses

 

(267

)

1,515

 

Other liabilities

 

298

 

120

 

Net cash provided by operating activities

 

23,286

 

24,167

 

Investing Activities:

 

 

 

 

 

Purchase of property, plant and equipment

 

(8,725

)

(6,690

)

Proceeds from sale of property, plant and equipment

 

246

 

78

 

Net cash used in investing activities

 

(8,479

)

(6,612

)

Financing Activities:

 

 

 

 

 

Repayment of term loans

 

(3,750

)

(3,750

)

Cash dividends paid

 

(2,092

)

 

Purchase of treasury shares

 

(168

)

(212

)

Proceeds from exercise of stock options

 

 

21

 

Net cash used in financing activities

 

(6,010

)

(3,941

)

Net increase in cash and cash equivalents

 

8,797

 

13,614

 

Cash and cash equivalents at beginning of period

 

49,475

 

29,787

 

Cash and cash equivalents at end of period

 

$

58,272

 

$

43,401

 

 

See accompanying notes to condensed consolidated financial statements.

 

5



 

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

 

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

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, 2013.  The results of operations for the three- and nine-month periods ended September 30, 2014 are not necessarily indicative of operating results for the full year.

 

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), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment), oil and gas services, industrial (including paper and glass manufacturers), roof shingle 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.

 

The Company’s Natural Gas Interests segment is held in its wholly owned subsidiary, U.S. Lime Company — O & G, LLC (“U.S. Lime O & G”).  Under a lease agreement (the “O & G Lease”), U.S. Lime O & G has royalty interests ranging from 15.4% to 20% and a 20% non-operating working interest, resulting in an overall average revenue interest of 34.7%, with respect to oil and gas rights in 33 wells drilled and currently producing on the Company’s approximately 3,800 acres of land located in Johnson County, Texas, in the Barnett Shale Formation. Through U. S. Lime O & G, the Company also has a drillsite and production facility lease agreement and subsurface easement (the “Drillsite Agreement”) relating to approximately 538 acres of land contiguous to the Company’s Johnson County, Texas property.  Pursuant to the Drillsite Agreement, the Company receives a 3% royalty interest and a 12.5% non-operating working interest, resulting in a 12.4% revenue interest, in the six wells drilled and currently producing from pad sites located on the Company’s property.

 

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 are generally upon shipment, and when payment is considered probable. Revenues include external freight billed to customers with related costs in cost of revenues.  The Company’s returns and allowances are minimal.  External freight billed to customers included in 2014 and 2013 revenues was $7.0 million and $7.1 million for the three-month periods, and $20.4 million and $19.8 for the nine-month periods, respectively, 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.

 

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,

 

6



 

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.

 

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.  There were no changes in the methods and assumptions used in measuring fair value during the period, which include, as of the valuation date, LIBOR rates over the term of the outstanding debt.  The Company’s financial  liabilities measured at fair value on a recurring basis at September 30, 2014 and December 31, 2013 are summarized below (in thousands):

 

 

 

 

 

 

 

Significant Other
Observable Inputs (Level 2)

 

 

 

 

 

September 30,
2014

 

December 31,
2013

 

September 30,
2014

 

December 31,
2013

 

Valuation
Technique

 

Interest rate swap liabilities

 

$

(858

)

$

(1,533

)

$

(858

)

$

(1,533

)

Cash flows approach

 

 

Comprehensive Income (Loss).  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 of interest rate 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 (loss).

 

New Accounting Pronouncements.  In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation.  ASU 2014-09 will be effective for the Company beginning January 1, 2017, with early adoption not permitted.  The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company’s Consolidated Financial Statements.

 

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a period of one year after the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on the Company’s Consolidated Financial Statements.

 

7



 

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 or interest costs 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
September 30,

 

Nine Months Ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenues

 

 

 

 

 

 

 

 

 

Lime and limestone operations

 

$

37,855

 

35,498

 

$

110,226

 

99,337

 

Natural gas interests

 

1,218

 

1,401

 

4,214

 

4,319

 

Total revenues

 

$

39,073

 

36,899

 

$

114,440

 

103,656

 

Depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

Lime and limestone operations

 

$

3,514

 

3,334

 

$

10,293

 

10,048

 

Natural gas interests

 

215

 

255

 

659

 

793

 

Total depreciation, depletion and amortization

 

$

3,729

 

3,589

 

$

10,952

 

10,841

 

Gross profit

 

 

 

 

 

 

 

 

 

Lime and limestone operations

 

$

9,271

 

8,409

 

$

26,637

 

22,439

 

Natural gas interests

 

612

 

701

 

2,261

 

1,926

 

Total gross profit

 

$

9,883

 

9,110

 

$

28,898

 

24,365

 

Capital expenditures

 

 

 

 

 

 

 

 

 

Lime and limestone operations

 

$

3,171

 

2,657

 

$

8,702

 

6,636

 

Natural gas interests

 

7

 

21

 

23

 

54

 

Total capital expenditures

 

$

3,178

 

2,678

 

$

8,725

 

6,690

 

 

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
September 30,

 

Nine Months Ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net income for basic and diluted income per common share

 

$

5,426

 

4,789

 

$

15,636

 

12,171

 

Weighted-average shares for basic income per share

 

5,578

 

5,563

 

5,578

 

5,560

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Employee and director stock options (1)

 

11

 

11

 

10

 

10

 

Adjusted weighted-average shares and assumed exercises for diluted income per share

 

5,589

 

5,574

 

5,588

 

5,570

 

Basic net income per common share

 

$

0.97

 

0.86

 

$

2.80

 

2.19

 

Diluted net income per common share

 

$

0.97

 

0.86

 

$

2.80

 

2.19

 

 


(1)  Excludes 15.0 and 9.9 stock options for the 2014 and 2013 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the periods presented.

 

8



 

6.     Accumulated Other Comprehensive Loss

 

The following table presents the components of comprehensive income (in thousands):

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net income

 

$

5,426

 

4,789

 

$

15,636

 

12,171

 

Reclassification to interest expense

 

225

 

287

 

710

 

873

 

Deferred income tax expense

 

(83

)

(81

)

(245

)

(310

)

Mark to market of interest rate hedges

 

3

 

(64

)

(35

)

(21

)

Comprehensive income

 

$

5,571

 

4,931

 

$

16,066

 

12,713

 

 

Amounts reclassified to interest expense were for payments made by the Company pursuant to the Company’s interest rate hedges.

 

Accumulated other comprehensive loss consisted of the following (in thousands):

 

 

 

September 30,
2014

 

December 31,
2013

 

Mark to market of interest rate hedges, net of tax benefit  

 

$

(547

)

$

(977

)

Minimum pension liability adjustments, net of tax benefit

 

(521

)

(521

)

Accumulated other comprehensive loss

 

$

(1,068

)

$

(1,498

)

 

7.     Inventories

 

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 consisted of the following (in thousands):

 

 

 

September 30,
2014

 

December 31,
2013

 

Lime and limestone inventories:

 

 

 

 

 

Raw materials

 

$

5,112

 

$

6,203

 

Finished goods

 

2,237

 

2,284

 

 

 

7,349

 

8,487

 

Service parts inventories

 

5,510

 

5,201

 

 

 

$

12,859

 

$

13,688

 

 

8.              Banking Facilities and Debt

 

The Company’s credit agreement includes a ten-year $40 million term loan (the “Term Loan”), a ten-year $20 million multiple draw term loan (the “Draw Term Loan”) and a $30 million revolving credit facility (the “Revolving Facility”) (collectively, the “Credit Facilities”).  At September 30, 2014, the Company had $0.7 million of letters of credit issued, which count as draws under the Revolving Facility.  Pursuant to a security agreement, dated August 25, 2004, the Credit Facilities are secured by the Company’s existing and hereafter acquired tangible assets, intangible assets and real property.

 

The Term Loan requires quarterly principal payments of $0.8 million, with a final principal payment of $10.0 million due on December 31, 2015.  The Draw Term Loan requires quarterly principal payments of $0.4 million, with a final principal payment of $6.7 million due on December 31, 2015.  The maturity of the Term Loan, the Draw Term Loan and the Revolving Facility can be accelerated if any event of default, as defined under the Credit Facilities, occurs.

 

The Revolving Facility commitment fee ranges from 0.250% to 0.400%.  The Credit Facilities bear interest, at the Company’s option, at either LIBOR plus a margin of 1.750% to 2.750%, or the Lender’s Prime Rate plus a margin of 0.000% to plus 1.000%.  The Revolving Facility commitment fee and the interest rate margins 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

 

9



 

indebtedness to earnings before interest, taxes, depreciation, depletion and amortization (“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.

 

The Company has hedges, with Wells Fargo Bank, N.A as the counterparty to the hedges, that fix LIBOR through maturity at 4.695%, 4.875% and 5.500% on the outstanding balance of the Term Loan, 75% of the outstanding balance of the Draw Term Loan and 25% of the outstanding balance of the Draw Term Loan, respectively.  Based on the current LIBOR margin of 1.750%, the Company’s current interest rates are: 6.445% on the outstanding balance of the Term Loan; 6.625% on 75% of the outstanding balance of the Draw Term Loan; and 7.250% on 25% of the outstanding balance of the Draw Term Loan.

 

The hedges have been effective as defined under applicable accounting rules.  Therefore, changes in fair value of the interest rate hedges are reflected in comprehensive income (loss).  The Company will be exposed to credit losses in the event of non-performance by the counterparty to the hedges.   The Company’s mark to market of its interest rate hedges, at September 30, 2014 and December 31, 2013, resulted in liabilities of $0.9 million and $1.5 million, respectively, which are included in accrued expenses ($0.7 million and $0.9 million, respectively) and other liabilities ($0.2 million and $0.6 million, respectively) on the Company’s Condensed Consolidated Balance Sheets.  The Company paid $0.2 million  and $0.7 million in quarterly settlement payments pursuant to its hedges during the three- and nine-month periods ended September 30, 2014, respectively, compared to payments of $0.3 million and $0.9 million in the comparable prior year three- and nine-month periods, respectively.  These payments were included in interest expense in the Condensed Consolidated Statements of Operations.

 

A summary of outstanding debt at the dates indicated is as follows (in thousands):

 

 

 

September 30,

 

December 31,

 

 

 

2014

 

2013

 

Term Loan

 

$

10,834

 

$

13,334

 

Draw Term Loan

 

7,083

 

8,333

 

Revolving Facility (1)

 

 

 

Subtotal

 

17,917

 

21,667

 

Less current installments

 

5,000

 

5,000

 

Debt, excluding current installments

 

$

12,917

 

$

16,667

 

 


(1) The Company had letters of credit totaling $0.7 million issued on the Revolving Facility at both September 30, 2014 and December 31, 2013.

 

As the Company’s debt bears interest at floating rates, the Company estimates that the carrying values of its debt at September 30, 2014 and December 31, 2013 approximate fair value.

 

9. Income Taxes

 

The Company has estimated that its effective income tax rate for 2014 will be approximately 24.7%.  As in prior periods, the primary reason for the effective 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.

 

10. Dividends

 

On September 19, 2014, the Company paid $0.7 million in cash dividends, based on a dividend of $0.125 (12.5 cents) per share on its common stock, to shareholders of record at the close of business on August 29, 2014. On each of March 20 and June 20, 2014, the Company paid $0.7 million in cash dividends, based on a dividend of $0.125 (12.5 cents) per share on its common stock, to shareholders of record at the close of business on February 28 and May 30, 2014, respectively.

 

10



 

11. Subsequent Events

 

On October 29, 2014, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.125 (12.5 cents) per share on the Company’s common stock.  This dividend is payable on December 18, 2014 to shareholders of record at the close of business on November 28, 2014.

 

ITEM 2:                         MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

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 manage its growth; (iii) the Company’s ability to meet short-term and long-term liquidity demands, including servicing the Company’s debt, meeting the Company’s operating and capital needs, including for possible modernization and development projects and acquisitions, and paying dividends, conditions in the credit and equity markets, and changes in interest rates on the Company’s debt, including the ability of the Company’s customers and the counterparty to the Company’s interest rate hedges to meet their obligations;  (iv) interruptions to operations and increased expenses at its 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, natural disasters, accidents, IT systems failures or disruptions, including due to cybersecurity incidents, or regulatory requirements; (v) increased coal, petroleum coke, diesel, natural gas, electricity, transportation and freight costs and the consistent availability of trucks and rail cars to deliver the Company’s products to its customers and solid fuels to its plants on a timely basis; (vi) unanticipated delays, difficulties in financing, technical feasibility issues or cost overruns in completing modernization and expansion and development projects; (vii) the Company’s ability to expand its Lime and Limestone Operations through acquisitions of businesses with related or similar operations, including obtaining financing for such acquisitions, and to successfully integrate acquired operations and sell the increased production at acceptable prices; (viii) inadequate demand and/or prices for the Company’s lime and limestone products due to the state of the U.S. economy, recessionary pressures in particular industries, including highway, road and building construction, steel, and oil and gas services, effects of governmental fiscal and budgetary constraints and legislative impasses, and inability to continue to increase or maintain prices for the Company’s products; (ix) uncertainties of development, production, pipeline capacity, prices and regulations with respect to the Company’s Natural Gas Interests, including the absence of drilling activities on the Company’s O & G Properties, unitization of existing wells, inability to explore for new reserves, declines in production rates and plugging and abandoning of existing wells; (x) 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 and health and safety and those that could impact the Company’s ability to continue or renew its operating permits; and (xi) 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

 

11



 

Overview.

 

The Company has two operating segments:  Lime and Limestone Operations and Natural Gas Interests.  Revenues and gross profit are the primary items utilized to evaluate the operating results of the Company’s segments and to allocate resources.

 

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), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment), oil and gas services, industrial (including paper and glass manufacturers), roof shingle and agriculture (including poultry and cattle feed producers) industries.  The Company is headquartered in Dallas, Texas and 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.  The Lime and Limestone Operations represent the Company’s principal business.

 

The Company’s Natural Gas Interests are held in its wholly owned subsidiary, U.S. Lime Company — O & G, LLC, and consist of royalty and non-operating working interests under the O & G Lease with EOG Resources, Inc. and the Drillsite Agreement with XTO Energy, Inc. related to the Company’s Johnson County, Texas property, located in the Barnett Shale Formation, on which Texas Lime Company conducts its lime and limestone operations.

 

Revenues from the Company’s Lime and Limestone Operations increased 6.6% and 11.0% in the third quarter and first nine months 2014, respectively, as compared to last year’s comparable periods, primarily because of increased sales volumes of approximately 5.1% and 9.5%, respectively, for the Company’s lime and limestone products.  The increased sales volume in the third quarter and the first nine months 2014 resulted from increased sales volumes to the Company’s construction, oil and gas services and industrial customers, compared to the comparable 2013 periods.  In addition, in the first nine months 2014 a portion of the increase in lime and limestone sales volumes resulted from lime sales to another lime producer for delivery to its customers, which sales primarily occurred in the second quarter 2014 and ceased in August 2014.  Also contributing to the increased revenues in the 2014 periods were average product price increases of approximately 1.5% realized for the Company’s lime and limestone products in both the third quarter and first nine months 2014, compared to the comparable 2013 periods. With the increased demand for delivery services by other industries and new Department of Transportation rules regarding hours of service for truck drivers, the Company remains concerned about the consistent availability of truck transportation to deliver its products to its customers.  In addition, although legislation was enacted in August 2014 to provide funding for the Highway Trust Fund through May 31, 2015, the Company remains concerned about the possible adverse impact on demand from its construction customers of the Congress’s continued inability to enact legislation providing long-term funding for the Highway Trust Fund.

 

The Company’s gross profit from its Lime and Limestone Operations increased by 10.3% and 18.7% in the third quarter and the first nine months 2014, respectively, compared to the comparable 2013 periods.  The increased gross profit for the Company’s Lime and Limestone Operations in the 2014 periods resulted primarily from the increased revenues discussed above.

 

Revenues from the Company’s Natural Gas Interests decreased 13.1% in the third quarter 2014, compared to the comparable 2013 quarter, due to decreased production volumes (approximately 12.5%) resulting from the normal declines in production rates on the Company’s 39 existing natural gas wells and lower natural gas prices (approximately 0.6%).  Revenues from Natural Gas Interests decreased 2.4% in the first nine months 2014, compared to the comparable 2013 period, resulting from decreased production volumes (approximately 16.7%), partially offset by higher natural gas prices (approximately 14.3%).  The Company’s gross profit from its Natural Gas Interests decreased to $0.6

 

12



 

million in the third quarter 2014, from $0.7 million in the comparable 2013 quarter, and increased to $2.3 million in the first nine months 2014, from $1.9 million in the comparable 2013 period.

 

The Company paid its regular quarterly cash dividend of $0.125 (12.5 cents) per share on its common stock in each of the first three quarters 2014.  On October 29, 2014, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.125 (12.5 cents) per share on the Company’s common stock.  This dividend is payable on December 18, 2014 to shareholders of record at the close of business on November 28, 2014.

 

Liquidity and Capital Resources.

 

Net cash provided by operating activities was $23.3 million in the first nine months 2014, compared to $24.2 million in the comparable 2013 period, a decrease of $0.9 million, or 3.6%.  This decrease resulted from changes in working capital.  Net cash provided by operating activities is composed of net income, depreciation, depletion and amortization (“DD&A”), deferred income taxes and other non-cash items included in net income, and changes in working capital.  In the first nine months 2014, cash provided by operating activities was principally composed of $15.6 million net income and $11.1 million DD&A, compared to $12.2 million net income and $11.0 million DD&A in the first nine months 2013.  The most significant changes in working capital items in the first nine months 2014 were a net increase in trade receivables of $5.6 million and a decrease in inventories of $0.8 million.  The most significant changes in working capital items in the first nine months 2013 were net increases in trade receivables and accounts payable and accrued expenses of $3.2 million and $1.5 million, respectively, and a $0.6 million decrease in inventories. The net increases in trade receivables in the 2014 and 2013 periods primarily resulted from increases in revenues in the third quarters 2014 and 2013, compared to the fourth quarters 2013 and 2012, respectively.

 

The Company had $8.7 million in capital expenditures in the first nine months 2014, compared to $6.7 million in the comparable period last year.

 

Net cash used in financing activities was $6.0 million and $3.9 million in the 2014 and 2013 first nine-month periods, respectively, consisting primarily of repayments of $3.8 million of term loan debt in each of the first nine months 2014 and 2013 and $0.2 million for purchase of treasury shares in each of the first nine months 2014 and 2013.  Additionally, the Company paid $2.1 million in dividends during the first nine months 2014.  Cash and cash equivalents increased $8.8 million to $58.3 million at September 30, 2014 from $49.5 million at December 31, 2013.

 

The Company’s credit agreement includes a ten-year $40 million term loan (the “Term Loan”), a ten-year $20 million multiple draw term loan (the “Draw Term Loan”) and a $30 million revolving credit facility (the “Revolving Facility”) (collectively, the “Credit Facilities”).  At September 30, 2014, the Company had $0.7 million of letters of credit issued, which count as draws under the Revolving Facility.  Pursuant to a security agreement, dated August 25, 2004, the Credit Facilities are secured by the Company’s existing and hereafter acquired tangible assets, intangible assets and real property.

 

The Term Loan requires quarterly principal payments of $0.8 million, with a final principal payment of $10.0 million due on December 31, 2015.  The Draw Term Loan requires quarterly principal payments of $0.4 million, with a final principal payment of $6.7 million due on December 31, 2015.  The maturity of the Term Loan, the Draw Term Loan and the Revolving Facility can be accelerated if any event of default, as defined under the Credit Facilities, occurs.

 

The Revolving Facility commitment fee ranges from 0.250% to 0.400%.  The Credit Facilities bear interest, at the Company’s option, at either LIBOR plus a margin of 1.750% to 2.750%, or the Lender’s Prime Rate plus a margin of 0.000% to plus 1.000%.  The Revolving Facility commitment fee and the interest rate margins 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 and amortization (“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.

 

13



 

The Company has hedges, with Wells Fargo Bank, N.A as the counterparty to the hedges, that fix LIBOR through maturity at 4.695%, 4.875% and 5.500% on the outstanding balance of the Term Loan, 75% of the outstanding balance of the Draw Term Loan and 25% of the outstanding balance of the Draw Term Loan, respectively.  Based upon the current LIBOR margin of 1.750%, the Company’s current interest rates are: 6.445% on the outstanding balance of the Term Loan; 6.625% on 75% of the outstanding balance of the Draw Term Loan; and 7.250% on 25% of the outstanding balance of the Draw Term Loan.

 

The hedges have been effective as defined under applicable accounting rules.  Therefore, changes in fair value of the interest rate hedges are reflected in comprehensive income (loss).  The Company will be exposed to credit losses in the event of non-performance by the counterparty to the hedges.   The Company’s mark to market of its interest rate hedges, at September 30, 2014 and December 31, 2013, resulted in liabilities of $0.9 million and $1.5 million, respectively, which are included in accrued expenses ($0.7 million and $0.9 million, respectively) and other liabilities ($0.2 million and $0.6 million, respectively) on the Company’s Condensed Consolidated Balance Sheets.  The Company paid $0.2 million and $0.7 million in quarterly settlement payments pursuant to its hedges during the three- and nine-month periods ended September 30, 2014, respectively, compared to payments of $0.3 million and $0.9 million in the comparable prior year three- and nine-month periods, respectively.  These payments were included in interest expense in the Condensed Consolidated Statements of Operations.

 

The Company is not contractually committed to any planned capital expenditures for its Lime and Limestone Operations until actual orders are placed for equipment.  As of September 30, 2014, the Company had no material open orders or commitments that are not included in current liabilities on the September 30, 2014 Condensed Consolidated Balance Sheet.

 

As of September 30, 2014, the Company had $17.9 million in total debt outstanding and no draws on its $30 million Revolving Facility other than the $0.7 million of letters of credit.  The Company believes that cash on hand and cash generated from operations will be sufficient to meet the Company’s operating needs, ongoing capital needs, including the capital for possible modernization and development projects and acquisitions, debt service needs and liquidity needs and pay regular cash dividends for the near future.

 

Results of Operations.

 

Revenues in the third quarter 2014 increased to $39.1 million from $36.9 million in the comparable 2013 quarter, an increase of $2.2 million, or 5.9%.  Revenues from the Company’s Lime and Limestone Operations in the third quarter 2014 increased $2.4 million, or 6.6%, to $37.9 million from $35.5 million in the comparable 2013 quarter, while revenues from its Natural Gas Interests decreased $0.2 million, or 13.1%, to $1.2 million from $1.4 million in the comparable prior year quarter.  In the first nine months 2014, revenues increased to $114.4 million from $103.7 million in the comparable 2013 period, an increase of $10.8 million, or 10.4%.  Revenues from the Company’s Lime and Limestone Operations in the first nine months 2014 increased $10.9 million, or 11.0%, to $110.2 million from $99.3 million in the comparable 2013 period, while revenues from its Natural Gas Interests decreased $0.1 million, or 2.4%, to $4.2 million from $4.3 million in the comparable prior year period.

 

As discussed above, the increases in Lime and Limestone Operations revenues in the third quarter and first nine months 2014 as compared to last year’s comparable periods resulted primarily from increased sales volumes of the Company’s lime and limestone products and slight increases in prices realized for the Company’s lime and limestone products. Production volumes from the Company’s Natural Gas Interests in the third quarter 2014 totaled 209 thousand MCF, sold at an average price of $5.84 per MCF, compared to 239 thousand MCF, sold at an average price of $5.87 per MCF, in the comparable 2013 quarter.  Production volumes in the first nine months 2014 from Natural Gas Interests totaled 641 thousand MCF, sold at an average price of $6.57 per MCF, compared to the first nine months 2013 when 751 thousand MCF was produced and sold at an average price of $5.75

 

14



 

per MCF.  The Company’s average price per MCF for the first nine months 2014 was higher than the average price for the comparable 2013 period primarily due to increases in natural gas prices in the first six months 2014.

 

The Company’s gross profit was $9.9 million in the third quarter 2014, compared to $9.1 million in the comparable 2013 quarter, an increase of $0.8 million, or 8.5%. Gross profit in the first nine months 2014 was $28.9 million, an increase of $4.5 million, or 18.6%, from $24.4 million in the first nine months 2013.

 

Included in gross profit in the third quarter and first nine months 2014 were $9.3 million and $26.6 million, respectively, from the Company’s Lime and Limestone Operations, compared to $8.4 million and $22.4 million, respectively, in the comparable 2013 periods.  The Company’s gross profit margin from its Lime and Limestone Operations increased to 24.5% and 24.2% in the third quarter and first nine months 2014, respectively, from 23.7% and 22.6% in the third quarter and first nine months 2013, respectively. The increased gross profit and gross profit margin as a percent of revenues for the Company’s Lime and Limestone Operations in the 2014 periods resulted primarily from the increases in revenues discussed above.

 

Gross profit from the Company’s Natural Gas Interests was $0.6 million and $2.3 million in the third quarter and first nine months 2014, respectively, compared to $0.7 million and $1.9 million, in the comparable 2013 periods.

 

Selling, general and administrative expenses (“SG&A”) were $2.4 million in the third quarter 2014, an increase of $0.2 million, or 8.1%, compared to $2.2 million in the third quarter 2013.  As a percentage of revenues, SG&A increased to 6.2% in the 2014 quarter, compared to 6.0% in the comparable 2013 quarter.  SG&A was $7.0 million and $6.7 million in the first nine months 2014 and 2013, respectively, an increase of $0.3 million, or 5.1%.  As a percentage of revenues, SG&A in the first nine months 2014 decreased to 6.1%, compared to 6.4% in the comparable 2013 period.

 

Interest expense in the third quarter 2014 decreased $0.1 million, or 18.2%, to $0.4 million from $0.5 million in the third quarter 2013.  Interest expense decreased $0.2 million, or 16.3%, in the first nine months 2014 to $1.2 million from $1.4 million in the first nine months 2013.  The decreases in interest expense in the 2014 periods resulted from decreased average outstanding debt in each period due to the repayment of debt since September 30, 2013.  Interest expense included payments of $0.2 million and $0.7 million on the Company’s interest rate hedges during the three- and nine-month periods ended September 30, 2014, respectively, compared to payments of $0.3 million and $0.9 million in the comparable prior year three- and nine-month periods, respectively.

 

Income tax expense increased to $1.7 million in the third quarter 2014 from $1.6 million in the third quarter 2013, an increase of $0.1 million, or 5.4%.   In the first nine months 2014, income tax expense increased to $5.1 million from $4.1 million in the comparable 2013 period, an increase of $1.0 million, or 23.8%.  The increases in income taxes in the 2014 periods were principally due to increases in the Company’s income before income taxes.

 

The Company’s net income was $5.4 million ($0.97 per share diluted) in the third quarter 2014, compared to net income of $4.8 million ($0.86 per share diluted) in the third quarter 2013, an increase of $0.6 million, or 13.3%.  Net income in the first nine months 2014 was $15.6 million ($2.80 per share diluted), an increase of $3.5 million, or 28.5%, compared to the first nine months 2013 net income of $12.2 million ($2.19 per share diluted).

 

ITEM 3:                         QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Interest Rate Risk.

 

The Company is exposed to changes in interest rates, primarily as a result of floating interest rates on the Term Loan, Draw Term Loan and Revolving Facility.  At September 30, 2014, the

 

15



 

Company had $17.9 million of indebtedness outstanding under floating rate debt. The Company has entered into interest rate hedge agreements to swap floating rates for fixed rates at 4.695%, plus the applicable LIBOR margin, through maturity on the Term Loan balance of $10.8 million, 4.875%, plus the applicable LIBOR margin, on $5.3 million of the Draw Term Loan balance and 5.50%, plus the applicable LIBOR margin, on $1.8 million of the Draw Term Loan balance.  There was no outstanding balance on the Revolving Facility subject to interest rate risk at September 30, 2014.  Any future borrowings under the Revolving Facility would be subject to interest rate risk.  See Note 8 of Notes to Condensed Consolidated Financial Statements.

 

ITEM 4:                         CONTROLS AND PROCEDURES

 

The Company’s management, with the participation of the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Report.  Based upon that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures as of the end of the period covered by this Report were effective.

 

No change in the Company’s internal control over financial reporting occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

PART II.                       OTHER INFORMATION

 

ITEM 4:                         MINE SAFETY DISCLOSURES

 

Under Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K, each operator of a coal or other mine is required to include disclosures regarding certain mine safety results in its periodic reports filed with the SEC.  The operation of the Company’s quarries, underground mine and plants is subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977.  The required information regarding certain mining safety and health matters, broken down by mining complex, for the quarter ended September 30, 2014 is presented in Exhibit 95.1 to this Report.

 

The Company believes it is responsible to employees to provide a safe and healthy workplace environment. The 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.

 

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. There has also been an increase in the dollar penalties assessed for citations and orders issued in recent years.

 

16



 

ITEM 6:                         EXHIBITS

 

31.1          Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer.

31.2          Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.

32.1          Section 1350 Certification by the Chief Executive Officer.

32.2          Section 1350 Certification by the Chief Financial Officer.

95.1          Mine Safety Disclosures.

101             Interactive Data Files.

 

17



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

UNITED STATES LIME & MINERALS, INC.

 

 

 

 

October 31, 2014

By:

/s/ Timothy W. Byrne

 

 

Timothy W. Byrne

 

 

President and Chief Executive Officer

 

 

(Principal Executive Officer)

 

 

 

 

 

 

October 31, 2014

By:

/s/ M. Michael Owens

 

 

M. Michael Owens

 

 

Vice President and Chief Financial Officer

 

 

(Principal Financial and Accounting Officer)

 

18



 

UNITED STATES LIME & MINERALS, INC.

 

Quarterly Report on Form 10-Q

Quarter Ended

September 30, 2014

 

Index to Exhibits

 

EXHIBIT

 

 

NUMBER

 

DESCRIPTION

 

 

 

31.1

 

Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer.

 

 

 

31.2

 

Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.

 

 

 

32.1

 

Section 1350 Certification by the Chief Executive Officer.

 

 

 

32.2

 

Section 1350 Certification by the Chief Financial Officer.

 

 

 

95.1

 

Mine Safety Disclosures.

 

 

 

101

 

Interactive Data Files.