Reportable Segment

6 Months Ended

Jun. 30, 2025

Reportable Segment

Reportable Segment

4. Reportable Segment

In November 2023, the Financial Accounting Standards Board amended guidance in ASC 280, Segment Reporting (“ASC 280”), by issuing Accounting Standards Update 2023-07, which updated the disclosure requirements for reportable segments, primarily through requiring enhanced disclosures about significant segment expenses. The Company adopted this guidance in the fourth quarter 2024, with retrospective application to prior reportable periods.

The Company is managed as one reportable segment, lime and limestone operations, based on the distinctness of the Company’s activities and products. All operations are in the United States. During 2024, the Company determined that the activities of its natural gas interests and the associated level of review of those activities by the chief operating decision maker (“CODM”) precluded the natural gas activities from meeting the definition of an operating segment, as provided in ASC 280. In addition, previously unallocated items, including cash, interest income and expense, and other expense are now included as part of lime and limestone operations, and consolidated net income is now used as the measure of segment profit or loss. Segment disclosures for the three- and six-month periods ended June 30, 2024 have been recast to be consistent with the presentation for the periods ended June 30, 2025.

The Company’s CODM is the chief executive officer. The Company’s lime and limestone operations derives revenues from the sale of crushed limestone, pulverized limestone, aggregate, quicklime, hydrated lime, and lime slurry.

In evaluating the operating results of the Company, the CODM assesses performance for the lime and limestone operations segment and decides how to allocate resources (including, but not limited to, decisions on fuel blends, capital investments, and staffing levels) based on net income that is also reported on the consolidated statements of income. The measure of segment assets is reported on the consolidated balance sheets as “Total assets,” and the measure of segment capital expenditures is reported on the consolidated statements of cash flows as “Purchase of property, plant, and equipment.”

The following table presents revenue, significant expenses, and profit for the three- and six-month periods ended June 30, 2025 and 2024, as reviewed and used by the CODM. There are no other significant segment items or reconciling items to consolidated net income.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Revenues	$	91,518	$	76,545	$	182,771	$	148,232
Less:
Fuel, energy, and transportation		24,127		20,190		44,392		38,501
Depreciation, depletion, and amortization		6,108		5,884		12,158		11,863
Outside services, maintenance, and supplies		9,110		6,809		17,465		13,031
Personnel expenses, cost of revenues		8,295		7,653		16,235		15,324
Other cost of revenues		2,000		1,187		4,487		4,084
Selling, general, and administrative expenses		6,189		4,882		12,451		9,730
Other (income) expense, net		(3,098)		(2,786)		(6,189)		(5,326)
Income tax expense		7,956		6,669		16,828		12,529
Net income	$	30,831	$	26,057	$	64,944	$	48,496