UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


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

For the quarterly period ended June 30, 2020


☐	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 000-04197

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)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.10 par value	USLM	The Nasdaq Stock Market LLC

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 ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

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


Large accelerated filer	☐	Accelerated filer ☒
Non-accelerated filer	☐	Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date: As of July 30, 2020, 5,627,869 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)


	June 30,		December 31,
	2020		2019
ASSETS
Current assets
Cash and cash equivalents	$	68,835	$	54,260
Trade receivables, net		21,192		22,948
Inventories, net		14,422		13,388
Prepaid expenses and other current assets		1,243		2,139
Total current assets		105,692		92,735
Property, plant and equipment		378,988		370,355
Less accumulated depreciation and depletion		(228,328)		(219,668)
Property, plant and equipment, net		150,660		150,687
Operating lease right-of-use assets		2,536		3,192
Other assets, net		382		423
Total assets	$	259,270	$	247,037
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,212	$	4,430
Current portion of operating lease liabilities		1,169		1,294
Accrued expenses		3,843		3,735
Total current liabilities		9,224		9,459
Deferred tax liabilities, net		19,692		17,218
Operating lease liabilities, excluding current portion		1,352		1,866
Other liabilities		1,383		1,362
Total liabilities		31,651		29,905
Stockholders’ equity
Common stock		664		663
Additional paid-in capital		28,386		27,464
Accumulated other comprehensive loss		—		(1)
Retained earnings		253,411		243,566
Less treasury stock, at cost		(54,842)		(54,560)
Total stockholders’ equity		227,619		217,132
Total liabilities and stockholders’ equity	$	259,270	$	247,037

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended June 30,								Six Months Ended June 30,
	2020				2019				2020				2019
Revenues	$	37,547	100.0	%	$	38,954	100.0	%	$	75,987	100.0	%	$	76,753	100.0	%
Cost of revenues
Labor and other operating expenses		22,447	59.8	%		25,002	64.2	%		46,409	61.1	%		50,040	65.2	%
Depreciation, depletion and amortization		4,743	12.6	%		4,225	10.8	%		9,344	12.3	%		8,293	10.8	%
		27,190	72.4	%		29,227	75.0	%		55,753	73.4	%		58,333	76.0	%
Gross profit		10,357	27.6	%		9,727	25.0	%		20,234	26.6	%		18,420	24.0	%
Selling, general and administrative expenses		2,881	7.7	%		2,639	6.8	%		6,100	8.0	%		5,312	6.9	%
Operating profit		7,476	19.9	%		7,088	18.2	%		14,134	18.6	%		13,108	17.1	%
Other expense (income)
Interest expense		62	0.2	%		60	0.2	%		124	0.2	%		122	0.2	%
Interest and other income, net		(104)	(0.3)	%		(490)	(1.3)	%		(351)	(0.5)	%		(982)	(1.3)	%
		(42)	(0.1)	%		(430)	(1.1)	%		(227)	(0.3)	%		(860)	(1.1)	%
Income before income tax expense		7,518	20.0	%		7,518	19.3	%		14,361	18.9	%		13,968	18.2	%
Income tax expense		1,417	3.8	%		1,485	3.8	%		2,716	3.6	%		2,807	3.7	%
Net income	$	6,101	16.2	%	$	6,033	15.5	%	$	11,645	15.3	%	$	11,161	14.5	%
Net income per share of common stock
Basic	$	1.08			$	1.07			$	2.07			$	1.99
Diluted	$	1.08			$	1.07			$	2.07			$	1.99

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net income	$	6,101	$	6,033	$	11,645	$	11,161
Other comprehensive income
Mark to market of foreign exchange hedges, net of tax expense of $2 and $0 for the three months and six months ended June 30, 2020, respectively, and $7 and $1 for the three months and six months ended June 30, 2019, respectively		7		25		1		5
Total other comprehensive income		7		25		1		5
Comprehensive income	$	6,108	$	6,058	$	11,646	$	11,166

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(dollars in thousands)

(Unaudited)


						Accumulated
	Common Stock			Additional		Other
	Shares			Paid-In		Comprehensive		Retained		Treasury
	Outstanding	Amount		Capital		(Loss) Income		Earnings		Stock		Total
Balances at December 31, 2019	5,622,826	$	663	$	27,464	$	(1)	$	243,566	$	(54,560)	$	217,132
Stock options exercised	2,000		—		81		—		—		—		81
Stock-based compensation	3,063		1		378		—		—		—		379
Treasury shares purchased	(704)		—		—		—		—		(64)		(64)
Cash dividends paid	—		—		—		—		(899)		—		(899)
Net income	—		—		—		—		5,544		—		5,544
Mark to market of foreign exchange hedges, net of $2 tax benefit	—		—		—		(6)		—		—		(6)
Comprehensive (loss) income	—		—		—		(6)		5,544		—		5,538
Balances at March 31, 2020	5,627,185	$	664	$	27,923	$	(7)	$	248,211	$	(54,624)	$	222,167
Stock-based compensation	3,143		—		463		—		—		—		463
Treasury shares purchased	(2,459)		—		—		—		—		(218)		(218)
Cash dividends paid	—		—		—		—		(901)		—		(901)
Net income	—		—		—		—		6,101		—		6,101
Mark to market of foreign exchange hedges, net of $2 tax expense	—		—		—		7		—		—		7
Comprehensive income	—		—		—		7		6,101		—		6,108
Balances at June 30, 2020	5,627,869	$	664	$	28,386	$	—	$	253,411	$	(54,842)	$	227,619


						Accumulated
	Common Stock			Additional		Other
	Shares			Paid-In		Comprehensive		Retained		Treasury
	Outstanding	Amount		Capital		(Loss) Income		Earnings		Stock		Total
Balances at December 31, 2018	5,607,401	$	661	$	25,867	$	(13)	$	250,568	$	(54,116)	$	222,967
Stock-based compensation	3,333		—		309		—		—		—		309
Treasury shares purchased	(753)		—		—		—		—		(52)		(52)
Cash dividends paid	—		—		—		—		(757)		—		(757)
Net income	—		—		—		—		5,128		—		5,128
Mark to market of foreign exchange hedges, net of $6 tax benefit	—		—		—		(20)		—		—		(20)
Comprehensive (loss) income	—		—		—		(20)		5,128		—		5,108
Balances at March 31, 2019	5,609,981	$	661	$	26,176	$	(33)	$	254,939	$	(54,168)	$	227,575
Stock options exercised	2,000		—		75		—		—		—		75
Stock-based compensation	3,173		1		381		—		—		—		382
Treasury shares purchased	(2,361)		—		—		—		—		(189)		(189)
Cash dividends paid	—		—		—		—		(760)		—		(760)
Net income	—		—		—		—		6,033		—		6,033
Mark to market of foreign exchange hedges, net of $7 tax expense	—		—		—		25		—		—		25
Comprehensive income	—		—		—		25		6,033		—		6,058
Balances at June 30, 2019	5,612,793	$	662	$	26,632	$	(8)	$	260,212	$	(54,357)	$	233,141

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)


	Six Months Ended June 30,
	2020		2019
OPERATING ACTIVITIES:
Net income	$	11,645	$	11,161
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		9,453		8,404
Amortization of deferred financing costs		2		6
Deferred income taxes		2,484		2,619
Loss on disposition of property, plant and equipment		239		97
Stock-based compensation		842		691
Changes in operating assets and liabilities:
Trade receivables, net		1,756		(3,344)
Inventories, net		(1,034)		517
Prepaid expenses and other current assets		896		341
Other assets		40		50
Accounts payable and accrued expenses		779		(452)
Other liabilities		27		(54)
Net cash provided by operating activities		27,129		20,036
INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(10,599)		(12,360)
Proceeds from sale of property, plant and equipment		46		461
Net cash used in investing activities		(10,553)		(11,899)
FINANCING ACTIVITIES:
Cash dividends paid		(1,800)		(1,517)
Proceeds from exercise of stock options		81		75
Purchase of treasury shares		(282)		(241)
Net cash used in financing activities		(2,001)		(1,683)
Net increase in cash and cash equivalents		14,575		6,454
Cash and cash equivalents at beginning of period		54,260		67,218
Cash and cash equivalents at end of period	$	68,835	$	73,672

See accompanying notes to condensed consolidated financial statements.

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, 2019. The results of operations for the three-and six-month periods ended June 30, 2020 are not necessarily indicative of operating results for the full year.

2. Organization

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 is headquartered in Dallas, Texas and operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, 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, ART Quarry TRS LLC (DBA Carthage Crushed Limestone) 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-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation.

During 2019, the Company’s natural gas interests did not reach any of the quantitative thresholds for a reportable segment, and the results from its natural gas interests are not expected to be of significance in future periods. The revenues, gross profit and operating profit of the natural gas interests are included in Other for reportable segment disclosures. Segment disclosures for the three- and six-month periods ended June 30, 2019 have been recast to be consistent with the presentation for the respective periods ended June 30, 2020.

3. Accounting Policies

Revenue Recognition. The Company recognizes revenue for its lime and limestone operations when (i) a contract with the customer exists and the performance obligations are identified; (ii) the price has been established; and (iii) the performance obligations have been satisfied, which is generally upon shipment. 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 2020 and 2019 revenues was $6.5 million and $7.1 million, for the respective three-month periods ended June 30, and $13.3 million and $13.9 million for the respective six-month periods ended June 30, 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. 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.

Accounts Receivable. On January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the incurred impairment methodology in previous GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company applied the amendments of ASU 2016-13 using a modified-retrospective approach, and as a result, amounts recorded prior to January 1, 2020 have not been retrospectively restated. The implementation of ASU 2016-13 did not have a material impact on the Company’s results of operation, financial position, or cash flows.

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. The Company estimates credit losses relating to trade receivables based on an assessment of the current and forecasted probability of collection, historical trends, economic conditions and other significant events that may impact the collectability of accounts receivables. Due to the relatively homogenous nature of its trade receivables, the Company does not believe there is any meaningful asset-specific differences within its accounts receivable portfolio that would require the portfolio to be grouped below the consolidated level for review of credit losses. 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 credit losses to reflect currently expected estimated losses resulting from the failure of customers to make required payments. See Note 7 to the condensed consolidated financial statements.

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, using the interest rate implicit in the lease, if known, or an incremental rate on a collateralized basis over a similar term and amount to the lease, 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 10 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. The last of these foreign exchange hedges expired in April 2020. See Note 6 to the condensed consolidated financial statements. There were no changes in the methods and assumptions used in measuring fair value during the period.

The Company’s financial liabilities measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019, respectively, are summarized below (in thousands):

Significant Other

Observable Inputs

(Level 2)

June 30,

December 31,

June 30,

December 31,

2020

2019

2020

2019

Valuation Technique

Foreign exchange hedges

—

(1)

—

(1)

Cash flows approach

4. Business Segment

The Company has identified one reportable segment based on the distinctness of the Company’s activities and products: lime and limestone operations. All operations are in the United States. In evaluating the operating results of the Company, management primarily reviews revenues, gross profit and operating profit from the lime and limestone operations. Operating profit from its lime and limestone operations includes all of the Company’s selling, general and administrative costs. The Company does not allocate interest expense and interest and other income (expense), net to its lime and limestone operations.

During 2019, the Company’s natural gas interests did not reach any of the quantitative thresholds for a reportable segment, and the Company does not expect the results from its natural gas interests to be of significance in future periods. The revenues, gross profit and operating profit from the Company’s natural gas interests are included in Other for the Company’s reportable segment disclosures. Other identifiable assets include assets related to its natural gas interests, unallocated corporate assets and cash items. Segment disclosures for the three and six months ended June 30, 2019 have been recast to be consistent with the presentation for the three and six months ended June 30, 2020.

The following table sets forth operating results and certain other financial data for the Company’s lime and limestone operations segment and other (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Revenues	2020		2019		2020			2019
Lime and limestone operations	$	37,362	$	38,581	$	75,576		$	76,046
Other		185		373		411			707
Total revenues	$	37,547	$	38,954	$	75,987		$	76,753
Depreciation, depletion and amortization
Lime and limestone operations	$	4,563	$	4,089	$	8,975		$	8,018
Other		180		136		369			275
Total depreciation, depletion and amortization	$	4,743	$	4,225	$	9,344		$	8,293
Gross profit (loss)
Lime and limestone operations	$	10,507	$	9,690	$	20,546		$	18,376
Other		(150)		37		(312)			44
Total gross profit	$	10,357	$	9,727	$	20,234		$	18,420
Operating profit (loss)
Lime and limestone operations	$	7,626	$	7,051	$	14,446		$	13,064
Other		(150)		37		(312)			44
Total operating profit	$	7,476	$	7,088	$	14,134		$	13,108
Identifiable assets, at period end
Lime and limestone operations	$	184,397	$	179,780	$	184,397	$		179,780
Other		74,873		81,693		74,873			81,693
Total identifiable assets	$	259,270	$	261,473	$	259,270		$	261,473
Capital expenditures
Lime and limestone operations	$	4,493	$	6,676	$	10,599		$	12,360
Other		—		—		—			—
Total capital expenditures	$	4,493	$	6,676	$	10,599		$	12,360

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,
	2020		2019		2020		2019
Net income for basic and diluted income per common share	$	6,101	$	6,033	$	11,645	$	11,161
Weighted-average shares for basic income per common share		5,629		5,614		5,627		5,612
Effect of dilutive securities:
Employee and director stock options⁽¹⁾		8		10		9		7
Adjusted weighted-average shares and assumed exercises for diluted income per common share		5,637		5,624		5,636		5,619
Basic net income per common share	$	1.08	$	1.07	$	2.07	$	1.99
Diluted net income per common share	$	1.08	$	1.07	$	2.07	$	1.99

(1)	Excludes 15 and 11 stock options for the three- and six-month 2020 periods, and 0 and 14 stock options for the three- and six-month 2019 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period.

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,
	2020		2019		2020		2019
Net income	$	6,101	$	6,033	$	11,645	$	11,161
Mark to market of foreign exchange hedges		9		32		1		6
Deferred income tax expense		(2)		(7)		—		(1)
Comprehensive income	$	6,108	$	6,058	$	11,646	$	11,166

In May 2018, 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. The last of the FX hedges expired in April 2020. The FX hedges were effective as defined under applicable accounting rules. Therefore, changes in the fair value of the FX hedges were 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 $1 at December 31, 2019, which is included in accrued expenses.

7. Trade Receivables, Net

Additions (reductions) and write-offs to the Company’s allowance for credit losses for the six months ended June 30, 2020 and 2019 were as follows (in thousands):


	June 30,
	2020		2019
Beginning balance	$	361	$	430
Additions (reductions)		14		(10)
Write-offs		—		—
Ending balance	$	375	$	420

8. 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,
	2020		2019
Lime and limestone inventories:
Raw materials	$	4,961	$	4,546
Finished goods		1,815		1,954
		6,776		6,500
Service parts inventories		7,646		6,888
	$	14,422	$	13,388

9. Banking Facilities and Debt

The Company’s credit agreement with Wells Fargo Bank, N.A. (the “Lender”), as amended as of May 2, 2019 and November 21, 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 it 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, 2020, the Company had no debt outstanding and no draws on the Revolving Facility other than $0.4 million of letters of credit, which count as draws against the available commitment under the Revolving Facility.

10. 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 1 to 7 years, with a weighted-average remaining lease term of 3 years at both June 30, 2020 and December 31, 2019. Some operating leases include options to extend the leases for up to 5 years. The liability for the Company’s operating leases was discounted to present value using a weighted-average discount rate of 3.5% at both June 30, 2020 and December 31, 2019. The components of lease costs for the three and six months ended June 30, 2020 and 2019 were as follows (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,
	Classification	2020		2019		2020		2019
Operating lease costs ⁽¹⁾	Cost of revenues	$	455	$	555	$	840	$	1,040
Operating lease costs⁽¹⁾	Selling, general and administrative expenses		57		54		114		107
Rental revenues	Interest and other income, net		(8)		(13)		(35)		(25)
Net operating lease costs		$	504	$	596	$	919	$	1,122

⁽¹⁾	Includes the costs of leases with a term of 12 months or less.

As of June 30, 2020, 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):



2020 (excluding the six months ended June 30, 2020)	$	658
2021		1,077
2022		443
2023		189
2024		174
Thereafter		90
Total future minimum lease payments		2,631
Less imputed interest		(110)
Present value of lease liabilities	$	2,521

Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2020 and 2019 were as follows (in thousands):


	Six Months Ended June 30,
	2020		2019
Cash payments for operating lease liabilities	$	821	$	950
Right-of-use assets obtained in exchange for operating lease obligations	$	53	$	857

11. Income Taxes

The Company has estimated that its effective income tax rate for 2020 will be 18.9%. 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.

12. Dividends

On June 12, 2020, the Company paid $0.9 million in cash dividends, based on a dividend of $0.16 per share of its common stock, to shareholders of record at the close of business on May 22, 2020. On March 13, 2020, the Company paid $0.9 million in cash dividends, based on a dividend of $0.16 per share of its common stock, to shareholders of record at the close of business on February 21, 2020.

13. Subsequent Events

On July 1, 2020, the Company acquired Carthage Crushed Limestone, a limestone mining and production company located in Carthage, Missouri for $9 million cash, subject to adjustment.

On July 29, 2020, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.16 per share on the Company’s common stock. This dividend is payable on September 18, 2020 to shareholders of record at the close of business on August 28, 2020.

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 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, natural disasters, accidents, IT systems failures or disruptions, including due to cybersecurity incidents or regulatory requirements; (v) volatile coal, petroleum coke, diesel, natural gas, electricity, transportation and freight 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) unanticipated delays or cost overruns in completing modernization and expansion and development projects; (vii) the Company’s ability to expand its lime and limestone operations through projects and acquisitions of businesses with related or similar operations, including the Carthage Crushed Limestone acquisition, and the Company’s ability to obtain any required financing for such projects and acquisitions, and to sell any resulting increased production at acceptable prices; (viii) 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, recessionary pressures in, and the impact of government policies on, particular industries, including construction, steel, industrial and oil and gas services, reduced demand from utility plants, effects of governmental fiscal and budgetary constraints, including the level of highway construction and infrastructure funding, changes to tax law, legislative impasses, extended governmental shutdowns, trade wars, tariffs, economic and regulatory uncertainties under state governments and the United States Administration and Congress, and inability to continue to maintain or increase prices for the Company’s products, including passing through the increased costs of transportation; (ix) 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 or successfully secure new permits in connection with its modernization and expansion and development projects; (xi) estimates of reserves and remaining lives of reserves; (xii) the potential impact of the coronavirus (“COVID-19”) pandemic, including decreased demand, lower prices, and increased costs, and the risk of non-compliance with health and safety protocols and social distancing guidelines, on the Company’s financial condition, results of operations, cash flows, and competitive position; (xiii) the impact of social unrest; and (xiv) 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, 2019 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Overview.

We have identified one reportable business segment based on the distinctness of our activities and products: lime and limestone operations. All operations are in the United States. Operating profit from our lime and limestone operations includes all of our selling, general and administrative costs. We do not allocate interest expense and interest and other income (expense), net to our lime and limestone operations.

Through our lime and limestone operations, we are 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. We are headquartered in Dallas, Texas and operate lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Oklahoma and Texas through our 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, ART Quarry TRS LLC (DBA Carthage Crushed Limestone) and U.S. Lime Company – Transportation. The lime and limestone operations represent our principal business.

In addition to our lime and limestone operations, we hold natural gas interests through our wholly owned subsidiary, U.S. Lime Company – O & G, LLC. In the fourth quarter of 2019, we determined our natural gas interests did not reach any of the quantitative thresholds for a reportable segment. The revenues, gross profit and operating profit from our natural gas interests are included in Other for our reportable segment disclosures. Assets related to our natural gas interests, unallocated corporate assets, and cash items are included in Other identified assets. Segment disclosures for the three- and six-month periods ended June 30, 2019 have been recast to be consistent with the 2020 presentation for each respective period.

On July 1, 2020, we acquired 100% of the equity interest of Carthage Crushed Limestone, a limestone mining and production company located in Carthage, Missouri, for $9 million cash, subject to adjustment. We believe that this acquisition will complement our existing geographic footprint.

Revenues decreased 3.6% and 1.0% in the second quarter and first six months 2020, respectively, compared to the second quarter and first six months 2019. Revenues from lime and limestone operations decreased 3.2% and 0.6% in the second quarter and first six months 2020, respectively, compared to the comparable 2019 periods. The decreases in lime and limestone revenues in the second quarter and first six months 2020 resulted primarily from decreased sales volumes of 7.5% and 4.8%, respectively, principally due to reduced demand from our oil and gas services, steel and environmental customers, partially offset by increased demand from our construction customers. The decreased sales volumes were also partially offset by increases in average prices realized for our lime and limestone products of 4.3% and 4.2% in the second quarter and first six months 2020, respectively, compared to the comparable 2019 periods.

Gross profit increased 6.5% and 9.8% in the second quarter and first six months 2020, respectively, compared to the second quarter and first six months 2019. The increases in gross profit in the 2020 periods, compared to the comparable 2019 periods, resulted primarily from lower fuel costs, and increased operating efficiencies associated, in part, with the new kiln at our St. Clair facility, which began producing commercially saleable quicklime in the second quarter 2019, partially offset by the decreased revenues described above and increased costs incurred in the second quarter 2020 associated with responding to the COVID-19 pandemic.

The emergence of COVID-19 in the United States in the first quarter 2020 has created significant volatility, uncertainty and economic disruption to the general business environment. Federal, state, and local governmental responses to the COVID-19 pandemic, which include restrictions requiring social distancing and restrictions on business activities and movement of people in the markets for our lime and limestone products, began to take effect the last two weeks of March 2020. While many of these restrictions began to be lifted in the second quarter 2020, the easing of restrictions has subsequently been halted or reversed in much of our geographic footprint.

The pandemic and related restrictions on business activities have resulted in a general economic slowdown, which has disproportionately impacted certain industries that purchase our lime and limestone products, including environmental, oil and gas drilling, and steel. We expect a continued slowdown in economic activity as restrictions continue, or even expand, which we anticipate will have an adverse impact on the demand for our lime and limestone products. In addition, a continued economic slowdown may put downward pressure on the prices we are able to realize for our products. We will continue to focus on cost-cutting initiatives and ways to further increase operating efficiencies in an effort to mitigate some of the effects of the ongoing economic downturn, including decreased demand for our products and increases in costs.

As we continue to respond to these unprecedented times caused by the COVID-19 pandemic, we have not wavered in our commitment to the safety of our employees and individuals at our facilities that deliver lime and limestone products to the essential businesses and communities that we serve. In addition to our standard health and safety protocols, we have implemented enhanced protocols at all of our locations, including at our newly acquired Carthage Crushed Limestone facility. These protocols include reduced access to facilities, screening of individuals on

all sites, and the enforcement of social distancing and other practices that are consistent with, or exceed, the guidelines of the Center for Disease Control and state and local authorities.

We are an essential business and anticipate continuing to deliver lime and limestone products to all of the essential businesses we serve. Our lime and limestone products are used in the purification of drinking water, treatment of wastewater, and scrubbing of air emissions from incinerators, power plants, and industrial plants, as well as in the manufacture of paper and glass products. Our limestone is used in the production of animal feed and is also used in products that have been recognized as part of the Critical Infrastructure Sector, including steel and other metal products, and commercial, residential, and public works construction.

Future events or governmental responses to COVID-19 may impede or prevent our ability to operate at one or more of our manufacturing facilities or limit our ability to transport our products to our customers. For example, our lime and limestone products cannot be produced if all of our employees are required to work from home. Specialized and difficult to replace skill sets are also required in the production of our lime and limestone products. Should one or more of our facilities experience a COVID-19 outbreak requiring quarantining of employees possessing those skill sets, it would disrupt our ability to produce, sell, and deliver our lime and limestone products and could have a material adverse effect on our financial condition, results of operations, cash flows, and competitive position.

Liquidity and Capital Resources.

Net cash provided by operating activities was $27.1 million in the first six months 2020, compared to $20.0 million in the first six months 2019, an increase of $7.1 million, or 35.4%. Our net cash provided by operating activities is composed of net income, depreciation, depletion and amortization (“DD&A”), deferred income taxes, other non-cash items included in net income and changes in working capital. In the first six months 2020, net cash provided by operating activities was principally composed of $11.6 million net income, $9.5 million DD&A, $2.5 million deferred income taxes, $0.8 million stock-based compensation, and a $2.5 million increase from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six months 2020 included a decrease of $1.8 million in trade receivables, net, due primarily from reduced revenues and favorable timing of collections in the second quarter, an increase of $1.0 million in inventories, an increase of $0.8 million in accounts payable and accrued expenses, primarily from deferral of the payment of certain payroll taxes provided for under the CARES Act in the second quarter, and a decrease of $0.9 million in prepaid expenses and other assets. In the first six months 2019, net cash provided by operating activities was principally composed of $11.2 million net income, $8.4 million DD&A, $2.6 million deferred income taxes, $0.7 million stock-based compensation, and a $2.9 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six months 2019 included an increase of $3.3 million in trade receivables, net, and a decrease of $0.5 million in inventories, net.

We had $10.6 million in capital expenditures in the first six months 2020, compared to $12.4 million in the first six months 2019. Net cash used in financing activities was $2.0 million in the first six months 2020, compared to $1.7 million in the first six months 2019, consisting primarily of cash dividends paid in each period.

Cash and cash equivalents increased $14.6 million to $68.8 million at June 30, 2020, from $54.3 million at December 31, 2019.

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of June 30, 2020, we did not have any material commitments for open purchase orders. As previously discussed, on July 1, 2020, we acquired 100% of the equity interest of Carthage Crushed Limestone for $9 million cash, subject to adjustment.

Our credit agreement with Wells Fargo Bank, N.A. (the “Lender”), as amended as of May 2, 2019 and November 21, 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 us. 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 our 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 our Cash Flow Leverage Ratio, defined as the ratio of our 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 our 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. Our maximum Cash Flow Leverage Ratio is 3.50 to 1.

We may pay dividends so long as we remain in compliance with the provisions of our credit agreement, and we may purchase, redeem or otherwise acquire shares of our common stock so long as our 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.

At June 30, 2020, we had no debt outstanding and no draws on the Revolving Facility other than $0.4 million of letters of credit 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. However, an extended period of severe economic disruption caused by the COVID-19 pandemic could negatively impact our cash flows from operations and our liquidity, although we have not experienced any material impacts on our cash flows from operations and liquidity to date.

Results of Operations.

Revenues in the second quarter 2020 were $37.5 million, compared to $39.0 million in the second quarter 2019, a decline of $1.4 million, or 3.6%. For the first six months 2020, revenues were $76.0 million, compared to $76.8 million in the first six months 2019, a decrease of $0.8 million, or 1.0%. Revenues from our lime and limestone operations in the second quarter 2020 decreased $1.2 million, or 3.2%, to $37.4 million from $38.6 million in the second quarter 2019. For the first six months 2020, revenues from our lime and limestone operations decreased $0.5 million, or 0.6%, to $75.6 million compared to $76.0 million in the first six months 2019. As discussed above, the decrease in revenues from our lime and limestone operations in the second quarter and first six months 2020 was primarily due to decreased sales volumes of 7.5% and 4.8%, respectively, compared to the comparable 2019 periods, principally due to reduced demand from our environmental, oil and gas services and steel customers, partially offset by increased demand from our construction customers, which had been negatively impacted by increased rainfall in Texas in the second quarter 2019. Additionally, the reductions in sales volumes were partially offset by average increases in prices for our lime and limestone products in the second quarter and first six months 2020 of 4.3% and 4.2%, respectively, compared to the comparable 2019 periods. Revenues also included $0.2 million and $0.4 million from our natural gas interests in the second quarter and first six months 2020, respectively, compared to $0.4 million and $0.7 million in the comparable 2019 periods, respectively.

Gross profit was $10.4 million and $20.2 million in the second quarter and first six months 2020, respectively compared to $9.7 million and $18.4 million in the comparable 2019 periods, increases of $0.6 million and $1.8 million, or 6.5% and 9.8%, respectively. Gross profit from our lime and limestone operations in the second quarter and first six months 2020 was $10.5 million and $20.5 million, respectively, compared to $9.7 million and $18.4 million in the comparable 2019 periods, increases of $0.8 million, or 8.4%, and $2.2 million, or 11.8%, respectively. The increases in gross profit in the 2020 periods, compared to the comparable 2019 periods, resulted primarily from lower fuel costs and increased operating efficiencies associated, in part, with the new kiln at our St. Clair facility, which began producing commercially saleable quicklime in the second quarter 2019, partially offset by the decreased revenues discussed above and increased costs incurred in the second quarter 2020 associated with responding to the COVID-19 pandemic. Gross profit also included the impact of losses from our natural gas interests of $150 thousand and $312 thousand in the second quarter and first six months 2020, respectively, compared to profits of $37 thousand and $44 thousand in the comparable 2019 periods.

Selling, general and administrative expenses (“SG&A”) were $2.9 million and $6.1 million in the second quarter and first six months 2020, respectively, compared to $2.6 million and $5.3 million in the comparable 2019 periods. As a percentage of revenues, SG&A was 7.7% and 8.0% in the second quarter and first six months 2020, respectively, compared to 6.8% and 6.9% in the comparable 2019 periods. The increases in SG&A resulted primarily from increased

personnel expenses, including stock-based compensation, increased legal expenses, including acquisition-related legal fees, and increased COVID-19 pandemic costs incurred in the second quarter 2020.

Interest expense was $62 thousand and $124 thousand in the second quarter and first six months 2020, respectively, compared to $60 thousand and $122 thousand in the comparable 2019 periods. We had no outstanding debt during any of the periods. Interest and other income, net was $0.1 million and $0.4 in the second quarter and first six months 2020, respectively, compared to $0.5 million and $1.0 million in the comparable 2019 periods, decreases of $0.4 million and $0.6 million, or 78.8% and 64.3%, respectively. The decreases in interest income were due to reduced interest rates and lower average balances of cash and cash equivalents in the 2020 periods, compared to the comparable 2019 periods.

Income tax expense was $1.4 million and $2.7 million in the second quarter and first six months 2020, respectively, compared to $1.5 million and $2.8 million in the comparable 2019 periods. Our effective income tax rate for each of the 2020 and 2019 periods was reduced from the federal rate primarily 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. Additionally, for the year ended December 31, 2019, our effective income tax rate was also reduced from the federal rate as a result of research and development tax credits. We do not expect a reduction in our income tax rate due to research and development tax credits in 2020.

Our net income was $6.1 million ($1.08 per share diluted) in the second quarter 2020, compared to net income of $6.0 million ($1.07 per share diluted) in the first quarter 2019, an increase of $0.1 million, or 1.1%. Net income in the first six months 2020 was $11.6 million ($2.07 per share diluted), an increase of $0.5 million, or 4.3%, compared to net income of $11.2 million ($1.99 per share diluted) in the first six months 2019.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk.

We could be exposed to changes in interest rates, primarily as a result of floating interest rates on the Revolving Facility. There was no outstanding balance on the Revolving Facility subject to interest rate risk at June 30, 2020. Any future borrowings under the Revolving Facility would be subject to interest rate risk. See Note 9 of Notes to Condensed Consolidated Financial Statements.

Foreign Exchange Risk.

Prior to April 2020, we had contracts related to the purchase and installation of equipment that required future payments in Euros and entered into foreign exchange hedges to fix our U.S. Dollar liability for these contracts. The last of these foreign exchange hedges expired in April 2020. See Note 6 of Notes to Condensed Consolidated Financial Statements.

ITEM 4: CONTROLS AND PROCEDURES

Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of our 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 our disclosure controls and procedures as of the end of the period covered by this Report were effective.

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

PART II. OTHER INFORMATION

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors set forth in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, other than the additional risk factor provided

below, which is an update to the risk factor included in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Please refer to that section of our Form 10-K for disclosures regarding what we believe are the more significant risks and uncertainties related to our business.

Our financial condition, results of operations, cash flows, and competitive position could be materially adversely impacted by the COVID-19 pandemic. The extent to which COVID-19, and measures taken in response thereto, could materially adversely affect our financial condition, results of operations, cash flows, and competitive position will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities to contain the business, financial, and economic impact of the pandemic.

While we are continuing to execute our business continuity plans in response to the COVID-19 pandemic, there is the potential for increased disruptions to our lime and limestone business and operations from the pandemic. Federal, state, and local governmental responses to the COVID-19 pandemic, which include restrictions requiring social distancing and restrictions on business activities and movement of people in the markets for our lime and limestone products, began to take effect the last two weeks of March 2020. While many of these restrictions began to be lifted in the second quarter 2020, the easing of restrictions has subsequently been halted or reversed in many our market areas. The pandemic and related restrictions on business activities have resulted in a general economic slowdown, which is has impacted certain industries that purchase our products, including environmental, oil and gas drilling, and steel. We expect a continued slowdown in economic activity as restrictions continue, or even expand, which we anticipate will have an adverse impact on the demand for our lime and limestone products and increase our costs. In addition, a continued economic slowdown may put downward pressure on the prices we are able to realize for our products.

The continued impact of COVID-19 may limit our ability to produce, sell and deliver our lime and limestone products to our customers; cause key management and plant-level employees not to be available to us; result in plant shutdowns due to contagion, in which case we may not be able to shift production to our other plants; cause disruptions to our supply chain as it relates to our suppliers and other vendors, as well as disrupt the supply chains of our customers; impede our ability to maintain and repair our plants and equipment; negatively impact our modernization, expansion, and development plans; as well as adversely impact demand and prices for our lime and limestone products and increase our costs. Although we cannot predict future developments, which are highly uncertain, including the scope and duration of the pandemic and actions taken by governmental authorities to contain the impact of the pandemic, COVID-19 could have a material adverse effect on our financial condition, results of operations, cash flows, and competitive position.

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our Amended and Restated 2001 Long-Term Incentive Plan allows employees and directors to pay the exercise price for stock options and the tax withholding liability upon the lapse of restrictions on restricted stock by payment in cash and/or delivery of shares of common stock. In the second quarter 2020, pursuant to these provisions, we repurchased 2,459 shares at a price of $84.44 per share, the fair market value of one share of our common stock on the date that they were tendered for payment of tax withholding liability upon the lapse of restrictions on restricted stock.

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 our 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 June 30, 2020 is presented in Exhibit 95.1 to this Report.

We believe we are responsible to employees to provide a safe and healthy workplace environment. We seek 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.

ITEM 6: EXHIBITS

The Exhibit Index set forth below is incorporated by reference in response to this Item.

EXHIBIT INDEX


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.

101 104		Interactive Data Files (formatted as Inline XBRL). Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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.


July 31, 2020	By:	/s/ Timothy W. Byrne
		Timothy W. Byrne
		President and Chief Executive Officer
		(Principal Executive Officer)


July 31, 2020	By:	/s/ Michael L. Wiedemer
		Michael L. Wiedemer
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EXHIBIT 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER

I, Timothy W. Byrne, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of United States Lime & Minerals, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated: July 31, 2020	/s/ Timothy W. Byrne
	Timothy W. Byrne
	President and Chief Executive Officer

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION BY THE CHIEF FINANCIAL OFFICER

I, Michael L. Wiedemer, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of United States Lime & Minerals, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated: July 31, 2020	/s/ Michael L. Wiedemer
	Michael L. Wiedemer
	Vice President and Chief Financial Officer

EXHIBIT 32.1

SECTION 1350 CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER

I, Timothy W. Byrne, Chief Executive Officer of United States Lime & Minerals, Inc. (the “Company”), hereby certify that, to my knowledge:

(1)

The Company’s periodic report on Form 10-Q for the quarterly period ended June 30, 2020 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)

The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.


Dated: July 31, 2020	/s/ Timothy W. Byrne
	Timothy W. Byrne
	President and Chief Executive Officer

EXHIBIT 32.2

SECTION 1350 CERTIFICATION BY THE CHIEF FINANCIAL OFFICER

I, Michael L. Wiedemer, Chief Financial Officer of United States Lime & Minerals, Inc. (the “Company”), hereby certify that, to my knowledge:

(1)

(2)

The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.


Dated: July 31, 2020	/s/ Michael L. Wiedemer
	Michael L. Wiedemer
	Vice President and Chief Financial Officer

EXHIBIT 95.1

MINE SAFETY DISCLOSURES

The following disclosures are provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K, which require certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934, as amended, that operate mines regulated under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”).

The Mine Act has been construed as authorizing MSHA to issue citations and orders pursuant to the legal doctrine of strict liability, or liability without fault. If, in the opinion of an MSHA inspector, a condition that violates the Mine Act or regulations promulgated pursuant to it exists, then a citation or order will be issued regardless of whether the operator had any knowledge of, or fault in, the existence of that condition. Many of the Mine Act standards include one or more subjective elements, so that issuance of a citation or order often depends on the opinions or experience of the MSHA inspector involved and the frequency and severity of citations and orders will vary from inspector to inspector.

Whenever MSHA believes that a violation of the Mine Act, any health or safety standard, or any regulation has occurred, it may issue a citation or order which describes the violation and fixes a time within which the operator must abate the violation. In some situations, such as when MSHA believes that conditions pose a hazard to miners, MSHA may issue an order requiring cessation of operations, or removal of miners from the area of the mine, affected by the condition until the hazards are corrected. Whenever MSHA issues a citation or order, it has authority to propose a civil penalty or fine, as a result of the violation, that the operator is ordered to pay.

The table that follows reflects citations, orders, violations and proposed assessments issued to the Company by MSHA during the quarter ended June 30, 2020 and all pending legal actions as of June 30, 2020. The table does not include Carthage Crushed Limestone which was acquired on July 1, 2020. Due to timing and other factors, the data may not agree with the mine data retrieval system maintained by MSHA. The proposed assessments for the quarter ended June 30, 2020 were taken from the MSHA system as of July 29, 2020.

Additional information follows about MSHA references used in the table:

●

Section 104(a) Citations: The total number of citations received from MSHA under section 104(a) of the Mine Act for alleged violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

●

Section 104(b) Orders: The total number of orders issued by MSHA under section 104(b) of the Mine Act, which represents a failure to abate a citation under section 104(a) within the period of time prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.

●

Section 104(d) Citations and Orders: The total number of citations and orders issued by MSHA under section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards.

●

Section 110(b)(2) Violations: The total number of flagrant violations issued by MSHA under section 110(b)(2) of the Mine Act.

●

Section 107(a) Orders: The total number of orders issued by MSHA under section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed.

Citations and orders can be contested before the Federal Mine Safety and Health Review Commission (the “Commission”), and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The Commission is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under section 105 of the Mine Act.


			Section
			104(d)			Proposed
	Section	Section	Citations	Section	Section	MSHA		Pending
	104 S & S	104(b)	and	110(b)(2)	107(a)	Assessments(2)		Legal
Mine(1)	Citations	Orders	Orders	Violations	Orders	($ in thousands)	Fatalities	Actions(3)
Texas Lime Company	—	—	—	—	—	0.6	—	—
Arkansas Lime Company
Plant	—	—	—	—	—	—	—	—
Limedale Quarry	1	—	—	—	—	0.8	—	—
Colorado Lime Company
Monarch Quarry	—	—	—	—	—	—	—	—
Delta Plant	—	—	—	—	—	—	—	—
U.S. Lime Company—St. Clair	—	—	—	—	—	0.1	—	—

(1)

The definition of a mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting and processing limestone, such as roads, land, structures, facilities, equipment, machines, tools, kilns, and other property. These other items associated with a single mine have been aggregated in the totals for that mine.

(2)	The proposed MSHA assessments issued during the reporting period do not necessarily relate to the citations or orders issued by MSHA during the reporting period or to any pending contests reported above.

(3)

Includes any pending legal actions before the Commission involving such mine as of June 30, 2020. Any pending legal actions were initiated by the Company. The pending legal actions may relate to the citations or orders issued by MSHA during the reporting period or to citations or orders issued in prior periods. Due to timing and other factors, the data may not agree with the mine data retrieval system maintained by MSHA. There were no legal actions resolved or instituted during the reporting period.

Pattern or Potential Pattern of Violations. During the quarter ended June 30, 2020, none of the mines operated by the Company received written notice from MSHA of either (a) a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to mine health or safety hazards under section 104(e) of the Mine Act or (b) the potential to have such a pattern.

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 30, 2020
Document and Entity Information
Entity Registrant Name	UNITED STATES LIME & MINERALS INC
Entity Central Index Key	0000082020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	000-04197
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-0789226
Entity Address, Address Line One	5429 LBJ Freeway, Suite 230
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	991-8400
Title of 12(b) Security	Common stock, $0.10 par value
Trading Symbol	USLM
Security Exchange Name	NASDAQ
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,627,869
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 68,835	$ 54,260
Trade receivables, net	21,192	22,948
Inventories, net	14,422	13,388
Prepaid expenses and other current assets	1,243	2,139
Total current assets	105,692	92,735
Property, plant and equipment	378,988	370,355
Less accumulated depreciation and depletion	(228,328)	(219,668)
Property, plant and equipment, net	150,660	150,687
Operating lease right-of-use assets	2,536	3,192
Other assets, net	382	423
Total assets	259,270	247,037
Current liabilities:
Accounts payable	4,212	4,430
Current portion of operating lease liabilities	1,169	1,294
Accrued expenses	3,843	3,735
Total current liabilities	9,224	9,459
Deferred tax liabilities, net	19,692	17,218
Operating lease liabilities, excluding current portion	1,352	1,866
Other liabilities	1,383	1,362
Total liabilities	31,651	29,905
Stockholders' equity:
Common stock	664	663
Additional paid-in capital	28,386	27,464
Accumulated other comprehensive loss		(1)
Retained earnings	253,411	243,566
Less treasury stock, at cost	(54,842)	(54,560)
Total stockholders' equity	227,619	217,132
Total liabilities and stockholders' equity	$ 259,270	$ 247,037

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues
Revenues	$ 37,547	$ 38,954	$ 75,987	$ 76,753
Cost of revenues
Labor and other operating expenses	22,447	25,002	46,409	50,040
Depreciation, depletion and amortization	4,743	4,225	9,344	8,293
Total cost of revenues	27,190	29,227	55,753	58,333
Gross profit	10,357	9,727	20,234	18,420
Selling, general and administrative expenses	2,881	2,639	6,100	5,312
Operating profit	7,476	7,088	14,134	13,108
Other expense (income)
Interest expense	62	60	124	122
Interest and other income, net	(104)	(490)	(351)	(982)
Total other expense (income)	(42)	(430)	(227)	(860)
Income before income tax expense	7,518	7,518	14,361	13,968
Income tax expense	1,417	1,485	2,716	2,807
Net income	$ 6,101	$ 6,033	$ 11,645	$ 11,161
Net income per share of common stock
Basic (in dollars per share)	$ 1.08	$ 1.07	$ 2.07	$ 1.99
Diluted (in dollars per share)	$ 1.08	$ 1.07	$ 2.07	$ 1.99

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Percentage	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues
Revenues (as a percent)	100.00%	100.00%	100.00%	100.00%
Cost of revenues
Labor and other operating expenses (as a percent)	59.80%	64.20%	61.10%	65.20%
Depreciation, depletion and amortization (as a percent)	12.60%	10.80%	12.30%	10.80%
Total cost of revenues (as a percent)	72.40%	75.00%	73.40%	76.00%
Gross profit (as a percent)	27.60%	25.00%	26.60%	24.00%
Selling, general and administrative expenses (as a percent)	7.70%	6.80%	8.00%	6.90%
Operating profit (as a percent)	19.90%	18.20%	18.60%	17.10%
Other expense (income)
Interest expense (as a percent)	0.20%	0.20%	0.20%	0.20%
Interest and other income, net (as a percent)	(0.30%)	(1.30%)	(0.50%)	(1.30%)
Total other expense (income) (as a percent)	(0.10%)	(1.10%)	(0.30%)	(1.10%)
Income before income tax expense (as a percent)	20.00%	19.30%	18.90%	18.20%
Income tax expense (as a percent)	3.80%	3.80%	3.60%	3.70%
Net income (as a percent)	16.20%	15.50%	15.30%	14.50%

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 6,101	$ 6,033	$ 11,645	$ 11,161
Other comprehensive income
Mark to market of foreign exchange hedges, net of tax expense of $2 and $0 for the three months and six months ended June 30, 2020, respectively, and $7 and $1 for the three months and six months ended June 30, 2019, respectively	7	25	1	5
Total other comprehensive income	7	25	1	5
Comprehensive income	$ 6,108	$ 6,058	$ 11,646	$ 11,166

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Mark to market on foreign exchange hedges, net of tax expense of $2 and $0 for the three and six months ended June 30, 2020, respectively, and $7 and $1 for the three months and six months ended June 30, 2019, respectively	$ (2)	$ 2	$ (7)	$ 6	$ 0	$ (1)

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, 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 $2 tax benefit and $6 tax benefit for the three months ended March 31, 2020 and 2019, respectively, and $2 tax expense and $7 tax expense for the three months ended June 30, 2020 and 2019, respectively			(20)			(20)
Comprehensive 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 $2 tax benefit and $6 tax benefit for the three months ended March 31, 2020 and 2019, respectively, and $2 tax expense and $7 tax expense for the three months ended June 30, 2020 and 2019, respectively						5
Comprehensive 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 $2 tax benefit and $6 tax benefit for the three months ended March 31, 2020 and 2019, respectively, and $2 tax expense and $7 tax expense for the three months ended June 30, 2020 and 2019, respectively			25			25
Comprehensive 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
Balances at Dec. 31, 2019	$ 663	27,464	(1)	243,566	(54,560)	217,132
Balances (in shares) at Dec. 31, 2019	5,622,826
Increase (Decrease) in Stockholders' Equity
Stock options exercised		81				81
Stock options exercised (in shares)	2,000
Stock-based compensation	$ 1	378				379
Stock-based compensation (in shares)	3,063
Treasury shares purchased					(64)	(64)
Treasury shares purchased (in shares)	(704)
Cash dividends paid				(899)		(899)
Net income				5,544		5,544
Mark to market of foreign exchange hedges, net of $2 tax benefit and $6 tax benefit for the three months ended March 31, 2020 and 2019, respectively, and $2 tax expense and $7 tax expense for the three months ended June 30, 2020 and 2019, respectively			(6)			(6)
Comprehensive income			(6)	5,544		5,538
Balances at Mar. 31, 2020	$ 664	27,923	(7)	248,211	(54,624)	222,167
Balances (in shares) at Mar. 31, 2020	5,627,185
Balances at Dec. 31, 2019	$ 663	27,464	(1)	243,566	(54,560)	217,132
Balances (in shares) at Dec. 31, 2019	5,622,826
Increase (Decrease) in Stockholders' Equity
Net income						11,645
Mark to market of foreign exchange hedges, net of $2 tax benefit and $6 tax benefit for the three months ended March 31, 2020 and 2019, respectively, and $2 tax expense and $7 tax expense for the three months ended June 30, 2020 and 2019, respectively						1
Comprehensive income						11,646
Balances at Jun. 30, 2020	$ 664	28,386		253,411	(54,842)	227,619
Balances (in shares) at Jun. 30, 2020	5,627,869
Balances at Mar. 31, 2020	$ 664	27,923	(7)	248,211	(54,624)	222,167
Balances (in shares) at Mar. 31, 2020	5,627,185
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		463				463
Stock-based compensation (in shares)	3,143
Treasury shares purchased					(218)	(218)
Treasury shares purchased (in shares)	(2,459)
Cash dividends paid				(901)		(901)
Net income				6,101		6,101
Mark to market of foreign exchange hedges, net of $2 tax benefit and $6 tax benefit for the three months ended March 31, 2020 and 2019, respectively, and $2 tax expense and $7 tax expense for the three months ended June 30, 2020 and 2019, respectively			7			7
Comprehensive income			$ 7	6,101		6,108
Balances at Jun. 30, 2020	$ 664	$ 28,386		$ 253,411	$ (54,842)	$ 227,619
Balances (in shares) at Jun. 30, 2020	5,627,869

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Mark to market of foreign exchange hedges, tax expense (benefit)	$ 2	$ (2)	$ 7	$ (6)	$ 0	$ 1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
OPERATING ACTIVITIES:
Net income	$ 11,645	$ 11,161
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	9,453	8,404
Amortization of deferred financing costs	2	6
Deferred income taxes	2,484	2,619
Loss on disposition of property, plant and equipment	239	97
Stock-based compensation	842	691
Changes in operating assets and liabilities:
Trade receivables, net	1,756	(3,344)
Inventories, net	(1,034)	517
Prepaid expenses and other current assets	896	341
Other assets	40	50
Accounts payable and accrued expenses	779	(452)
Other liabilities	27	(54)
Net cash provided by operating activities	27,129	20,036
INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(10,599)	(12,360)
Proceeds from sale of property, plant and equipment	46	461
Net cash used in investing activities	(10,553)	(11,899)
FINANCING ACTIVITIES:
Cash dividends paid	(1,800)	(1,517)
Proceeds from exercise of stock options	81	75
Purchase of treasury shares	(282)	(241)
Net cash used in financing activities	(2,001)	(1,683)
Net increase in cash and cash equivalents	14,575	6,454
Cash and cash equivalents at beginning of period	54,260	67,218
Cash and cash equivalents at end of period	$ 68,835	$ 73,672

Basis of Presentation

6 Months Ended

Jun. 30, 2020

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

Organization

6 Months Ended

Jun. 30, 2020

Organization

Organization

2. Organization

Accounting Policies

6 Months Ended

Jun. 30, 2020

Accounting Policies

Accounting Policies

3. Accounting Policies

The Company’s financial liabilities measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019, respectively, are summarized below (in thousands):

Significant Other

Observable Inputs

(Level 2)

June 30,

December 31,

June 30,

December 31,

2020

2019

2020

2019

Valuation Technique

Foreign exchange hedges

—

(1)

—

(1)

Cash flows approach

Business Segment

6 Months Ended

Jun. 30, 2020

Business Segment

Business Segment

4. Business Segment

The following table sets forth operating results and certain other financial data for the Company’s lime and limestone operations segment and other (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Revenues	2020		2019		2020			2019
Lime and limestone operations	$	37,362	$	38,581	$	75,576		$	76,046
Other		185		373		411			707
Total revenues	$	37,547	$	38,954	$	75,987		$	76,753
Depreciation, depletion and amortization
Lime and limestone operations	$	4,563	$	4,089	$	8,975		$	8,018
Other		180		136		369			275
Total depreciation, depletion and amortization	$	4,743	$	4,225	$	9,344		$	8,293
Gross profit (loss)
Lime and limestone operations	$	10,507	$	9,690	$	20,546		$	18,376
Other		(150)		37		(312)			44
Total gross profit	$	10,357	$	9,727	$	20,234		$	18,420
Operating profit (loss)
Lime and limestone operations	$	7,626	$	7,051	$	14,446		$	13,064
Other		(150)		37		(312)			44
Total operating profit	$	7,476	$	7,088	$	14,134		$	13,108
Identifiable assets, at period end
Lime and limestone operations	$	184,397	$	179,780	$	184,397	$		179,780
Other		74,873		81,693		74,873			81,693
Total identifiable assets	$	259,270	$	261,473	$	259,270		$	261,473
Capital expenditures
Lime and limestone operations	$	4,493	$	6,676	$	10,599		$	12,360
Other		—		—		—			—
Total capital expenditures	$	4,493	$	6,676	$	10,599		$	12,360

Income Per Share of Common Stock

6 Months Ended

Jun. 30, 2020

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,
	2020		2019		2020		2019
Net income for basic and diluted income per common share	$	6,101	$	6,033	$	11,645	$	11,161
Weighted-average shares for basic income per common share		5,629		5,614		5,627		5,612
Effect of dilutive securities:
Employee and director stock options⁽¹⁾		8		10		9		7
Adjusted weighted-average shares and assumed exercises for diluted income per common share		5,637		5,624		5,636		5,619
Basic net income per common share	$	1.08	$	1.07	$	2.07	$	1.99
Diluted net income per common share	$	1.08	$	1.07	$	2.07	$	1.99

(1)	Excludes 15 and 11 stock options for the three- and six-month 2020 periods, and 0 and 14 stock options for the three- and six-month 2019 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period.

Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2020

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,
	2020		2019		2020		2019
Net income	$	6,101	$	6,033	$	11,645	$	11,161
Mark to market of foreign exchange hedges		9		32		1		6
Deferred income tax expense		(2)		(7)		—		(1)
Comprehensive income	$	6,108	$	6,058	$	11,646	$	11,166

Trade Receivables, Net

6 Months Ended

Jun. 30, 2020

Trade Receivables, Net

Trade Receivables, Net

7. Trade Receivables, Net

Additions (reductions) and write-offs to the Company’s allowance for credit losses for the six months ended June 30, 2020 and 2019 were as follows (in thousands):


	June 30,
	2020		2019
Beginning balance	$	361	$	430
Additions (reductions)		14		(10)
Write-offs		—		—
Ending balance	$	375	$	420

Inventories, Net

6 Months Ended

Jun. 30, 2020

Inventories, Net

Inventories, Net

8. Inventories, Net


	June 30,		December 31,
	2020		2019
Lime and limestone inventories:
Raw materials	$	4,961	$	4,546
Finished goods		1,815		1,954
		6,776		6,500
Service parts inventories		7,646		6,888
	$	14,422	$	13,388

Banking Facilities and Debt

6 Months Ended

Jun. 30, 2020

Banking Facilities and Debt

Banking Facilities and Debt

9. Banking Facilities and Debt

Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

10. Leases


		Three Months Ended June 30,				Six Months Ended June 30,
	Classification	2020		2019		2020		2019
Operating lease costs ⁽¹⁾	Cost of revenues	$	455	$	555	$	840	$	1,040
Operating lease costs⁽¹⁾	Selling, general and administrative expenses		57		54		114		107
Rental revenues	Interest and other income, net		(8)		(13)		(35)		(25)
Net operating lease costs		$	504	$	596	$	919	$	1,122

⁽¹⁾	Includes the costs of leases with a term of 12 months or less.



2020 (excluding the six months ended June 30, 2020)	$	658
2021		1,077
2022		443
2023		189
2024		174
Thereafter		90
Total future minimum lease payments		2,631
Less imputed interest		(110)
Present value of lease liabilities	$	2,521

Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2020 and 2019 were as follows (in thousands):


	Six Months Ended June 30,
	2020		2019
Cash payments for operating lease liabilities	$	821	$	950
Right-of-use assets obtained in exchange for operating lease obligations	$	53	$	857

Income Taxes

6 Months Ended

Jun. 30, 2020

Income Taxes

Income Taxes

11. Income Taxes

Dividends

6 Months Ended

Jun. 30, 2020

Dividends

Dividends

12. Dividends

Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events.

Subsequent Events

13. Subsequent Events

On July 1, 2020, the Company acquired Carthage Crushed Limestone, a limestone mining and production company located in Carthage, Missouri for $9 million cash, subject to adjustment.

Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies

Fair Values of Financial Instruments

The Company’s financial liabilities measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019, respectively, are summarized below (in thousands):

Significant Other

Observable Inputs

(Level 2)

June 30,

December 31,

June 30,

December 31,

2020

2019

2020

2019

Valuation Technique

Foreign exchange hedges

—

(1)

—

(1)

Cash flows approach

Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

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, 2020 and December 31, 2019, respectively, are summarized below (in thousands):

Significant Other

Observable Inputs

(Level 2)

June 30,

December 31,

June 30,

December 31,

2020

2019

2020

2019

Valuation Technique

Foreign exchange hedges

—

(1)

—

(1)

Cash flows approach

Business Segment (Tables)

6 Months Ended

Jun. 30, 2020

Business Segment

Schedule of operating results and certain other financial data for the business segment)

The following table sets forth operating results and certain other financial data for the Company’s lime and limestone operations segment and other (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Revenues	2020		2019		2020			2019
Lime and limestone operations	$	37,362	$	38,581	$	75,576		$	76,046
Other		185		373		411			707
Total revenues	$	37,547	$	38,954	$	75,987		$	76,753
Depreciation, depletion and amortization
Lime and limestone operations	$	4,563	$	4,089	$	8,975		$	8,018
Other		180		136		369			275
Total depreciation, depletion and amortization	$	4,743	$	4,225	$	9,344		$	8,293
Gross profit (loss)
Lime and limestone operations	$	10,507	$	9,690	$	20,546		$	18,376
Other		(150)		37		(312)			44
Total gross profit	$	10,357	$	9,727	$	20,234		$	18,420
Operating profit (loss)
Lime and limestone operations	$	7,626	$	7,051	$	14,446		$	13,064
Other		(150)		37		(312)			44
Total operating profit	$	7,476	$	7,088	$	14,134		$	13,108
Identifiable assets, at period end
Lime and limestone operations	$	184,397	$	179,780	$	184,397	$		179,780
Other		74,873		81,693		74,873			81,693
Total identifiable assets	$	259,270	$	261,473	$	259,270		$	261,473
Capital expenditures
Lime and limestone operations	$	4,493	$	6,676	$	10,599		$	12,360
Other		—		—		—			—
Total capital expenditures	$	4,493	$	6,676	$	10,599		$	12,360

Income Per Share of Common Stock (Tables)

6 Months Ended

Jun. 30, 2020

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,
	2020		2019		2020		2019
Net income for basic and diluted income per common share	$	6,101	$	6,033	$	11,645	$	11,161
Weighted-average shares for basic income per common share		5,629		5,614		5,627		5,612
Effect of dilutive securities:
Employee and director stock options⁽¹⁾		8		10		9		7
Adjusted weighted-average shares and assumed exercises for diluted income per common share		5,637		5,624		5,636		5,619
Basic net income per common share	$	1.08	$	1.07	$	2.07	$	1.99
Diluted net income per common share	$	1.08	$	1.07	$	2.07	$	1.99

(1)	Excludes 15 and 11 stock options for the three- and six-month 2020 periods, and 0 and 14 stock options for the three- and six-month 2019 periods, respectively, as anti-dilutive because the exercise price exceeded the average per share market price for the period.

Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2020

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,
	2020		2019		2020		2019
Net income	$	6,101	$	6,033	$	11,645	$	11,161
Mark to market of foreign exchange hedges		9		32		1		6
Deferred income tax expense		(2)		(7)		—		(1)
Comprehensive income	$	6,108	$	6,058	$	11,646	$	11,166

Trade Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2020

Trade Receivables, Net

Schedule of additions and write-offs to allowance for doubtful accounts

Additions (reductions) and write-offs to the Company’s allowance for credit losses for the six months ended June 30, 2020 and 2019 were as follows (in thousands):


	June 30,
	2020		2019
Beginning balance	$	361	$	430
Additions (reductions)		14		(10)
Write-offs		—		—
Ending balance	$	375	$	420

Inventories, Net (Tables)

6 Months Ended

Jun. 30, 2020

Inventories, Net

Schedule of inventories, net


	June 30,		December 31,
	2020		2019
Lime and limestone inventories:
Raw materials	$	4,961	$	4,546
Finished goods		1,815		1,954
		6,776		6,500
Service parts inventories		7,646		6,888
	$	14,422	$	13,388

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases

Schedule of lease costs


		Three Months Ended June 30,				Six Months Ended June 30,
	Classification	2020		2019		2020		2019
Operating lease costs ⁽¹⁾	Cost of revenues	$	455	$	555	$	840	$	1,040
Operating lease costs⁽¹⁾	Selling, general and administrative expenses		57		54		114		107
Rental revenues	Interest and other income, net		(8)		(13)		(35)		(25)
Net operating lease costs		$	504	$	596	$	919	$	1,122

⁽¹⁾	Includes the costs of leases with a term of 12 months or less.

Schedule of maturity of lease liability



2020 (excluding the six months ended June 30, 2020)	$	658
2021		1,077
2022		443
2023		189
2024		174
Thereafter		90
Total future minimum lease payments		2,631
Less imputed interest		(110)
Present value of lease liabilities	$	2,521

Schedule of supplemental cash flow information


	Six Months Ended June 30,
	2020		2019
Cash payments for operating lease liabilities	$	821	$	950
Right-of-use assets obtained in exchange for operating lease obligations	$	53	$	857

Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue Recognition
External freight billed to customers included in revenue	$ 6.5	$ 7.1	$ 13.3	$ 13.9

Accounting Policies - Fair Value (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Fair Values of Financial Instruments
Foreign exchange hedges liabilities	$ (1)
Recurring \| Fair value \| Cash flows approach
Fair Values of Financial Instruments
Foreign exchange hedges liabilities	(1)
Recurring \| Fair value \| Significant Other Observable Inputs (Level 2) \| Cash flows approach
Fair Values of Financial Instruments
Foreign exchange hedges liabilities	$ (1)

Business Segment (Details) $ in Thousands	3 Months Ended		6 Months Ended
Business Segment (Details) $ in Thousands	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) segment	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Business segments
Number of business segments \| segment			1
Revenues	$ 37,547	$ 38,954	$ 75,987	$ 76,753
Depreciation, depletion and amortization	4,743	4,225	9,344	8,293
Gross profit (loss)	10,357	9,727	20,234	18,420
Operating profit (loss)	7,476	7,088	14,134	13,108
Identifiable assets, at period end	259,270	261,473	259,270	261,473	$ 247,037
Capital expenditures	4,493	6,676	10,599	12,360
Lime and limestone operations
Business segments
Depreciation, depletion and amortization	4,563	4,089	8,975	8,018
Gross profit (loss)	10,507	9,690	20,546	18,376
Operating profit (loss)	7,626	7,051	14,446	13,064
Identifiable assets, at period end	184,397	179,780	184,397	179,780
Capital expenditures	4,493	6,676	10,599	12,360
Other
Business segments
Depreciation, depletion and amortization	180	136	369	275
Gross profit (loss)	(150)	37	(312)	44
Operating profit (loss)	(150)	37	(312)	44
Identifiable assets, at period end	74,873	81,693	74,873	81,693
Lime and limestone operations \| Lime and limestone operations
Business segments
Revenues	37,362	38,581	75,576	76,046
Natural gas interests \| Other
Business segments
Revenues	$ 185	$ 373	$ 411	$ 707

Income Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Income per share of common stock:
Net income for basic and diluted income per common share	$ 6,101	$ 5,544	$ 6,033	$ 5,128	$ 11,645	$ 11,161
Weighted-average shares for basic income per common share (in shares)	5,629		5,614		5,627	5,612
Effect of dilutive securities:
Employee and director stock options (in shares)	8		10		9	7
Adjusted weighted-average shares and assumed exercises for diluted income per common share (in shares)	5,637		5,624		5,636	5,619
Basic net income per common share (in dollars per share)	$ 1.08		$ 1.07		$ 2.07	$ 1.99
Diluted net income per common share (in dollars per share)	$ 1.08		$ 1.07		$ 2.07	$ 1.99
Options
Anti-dilutive securities
Anti-dilutive shares of common stock excluded from the calculation of dilutive securities	15		0		11	14

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Components of comprehensive income
Net income	$ 6,101	$ 5,544	$ 6,033	$ 5,128	$ 11,645	$ 11,161
Mark to market of foreign exchange hedges	9		32		1	6
Deferred income tax (expense) benefit	(2)		(7)			(1)
Comprehensive income	$ 6,108	$ 5,538	$ 6,058	$ 5,108	$ 11,646	$ 11,166
Foreign exchange hedges liabilities							$ (1)

Trade Receivables, Net (Details) - USD ($) $ in Thousands	6 Months Ended
Trade Receivables, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Additions and write-offs to the company's allowance for doubtful accounts
Beginning balance	$ 361	$ 430
Additions (reductions)	14	(10)
Ending balance	$ 375	$ 420

Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Lime and limestone inventories:
Raw materials	$ 4,961	$ 4,546
Finished goods	1,815	1,954
Total	6,776	6,500
Service parts inventories	7,646	6,888
Total inventories	$ 14,422	$ 13,388

Banking Facilities and Debt (Details) $ in Millions		6 Months Ended
Banking Facilities and Debt (Details) $ in Millions	May 07, 2015 USD ($)	Jun. 30, 2020 USD ($)	May 02, 2019 USD ($)
Banking facilities and other debt
Total Debt		$ 0.0
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		3.00
Cash flow leverage ratio	3.50
Revolving Facility
Banking facilities and other debt
Maximum borrowing capacity			$ 75.0
Accordion feature period	4 years
Maximum borrowing capacity accordion feature	$ 50.0
Letters of credit outstanding		$ 0.4
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		$ 10.0

Leases - Costs Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Leases
Weighted average remaining lease term	3 years		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%		3.50%
Lease cost
Net operating lease costs	$ 504	$ 596	$ 919	$ 1,122
Minimum
Leases
Remaining lease term			1 year		1 year
Maximum
Leases
Remaining lease term			7 years		7 years
Lease extension term			5 years
Lease Term	12 months		12 months
Cost of revenues
Lease cost
Operating lease cost	$ 455	555	$ 840	1,040
Selling, general and administrative expense.
Lease cost
Operating lease cost	57	54	114	107
Interest and other income, net
Lease cost
Rental revenues	$ (8)	$ (13)	$ (35)	$ (25)

Leases - Maturity (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Maturity
2020 (excluding the six months ended June 30, 2020)	$ 658
2021	1,077
2022	443
2023	189
2024	174
Thereafter	90
Total future minimum lease payments	2,631
Less imputed interest	(110)
Present value of lease liabilities	$ 2,521

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Leases
Cash payments for operating lease liabilities	$ 821	$ 950
Right-of-use assets obtained in exchange for operating lease obligations	$ 53	$ 857

Income Taxes (Details)	6 Months Ended
Income Taxes (Details)	Jun. 30, 2020
Income Taxes
Effective income tax rate (as a percent)	18.90%

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
	Jun. 12, 2020	Mar. 13, 2020	Jun. 30, 2020	Jun. 30, 2019
Dividends
Cash dividends paid	$ 900	$ 900	$ 1,800	$ 1,517
Cash dividend (in dollars per share)	$ 0.16	$ 0.16

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 29, 2020	Jul. 01, 2020	Jun. 12, 2020	Mar. 13, 2020
Subsequent event
Quarterly cash dividend declared (in dollars per share)			$ 0.16	$ 0.16
Subsequent event
Subsequent event
Dividends payable date declared	Jul. 29, 2020
Quarterly cash dividend declared (in dollars per share)	$ 0.16
Dividends payable date to be paid	Sep. 18, 2020
Dividends payable date of record	Aug. 28, 2020
Carthage Crushed Limestone \| Subsequent event
Subsequent event
Cash paid for acquisition		$ 9