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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|      |  |                                                                                             
|----- |  | --------------------------------------------------------------------------------------------
|(Mark |  |                                                                                             
|One)  |  |                                                                                             
|þ     |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|     
|      |  | For the fiscal year ended December 31, 2004                                                 
|     
|or   
|     
|o     |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-4197


United States Lime & Minerals, Inc.


(Exact name of Registrant as specified in its charter)


|                                                                                          |  |                                            
|----------------------------------------------------------------------------------------- |  | -------------------------------------------
|Texas                                                                                     |  | 75-0789226                                 
|(State or other jurisdiction of
    incorporation or organization)                        |  | (I.R.S. Employer
    Identification Number)
|                                                                                         
|13800 Montfort Drive, Suite 330
    Dallas, Texas(Address of principal executive offices) |  | 75240(Zip code)                            

Registrants telephone number, including area code:


972-991-8400


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


|                    |  |                                          
|------------------- |  | -----------------------------------------
|Title of Each Class |  | Name of Each Exchange on Which Registered
|                    |  |                                          



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


Common Stock, $0.10 par value


þ o


þ


o þ






DOCUMENTS INCORPORATED BY REFERENCE












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TABLE OF CONTENTS


|                                                         |            |                                              |                                                                                                                      |      |    |    | 
|-------------------------------------------------------- | ---------- | -------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | ---- | -- | -- | 
|                                                         |            |                                              |                                                                                                                      | Page |   
|                                                         |            |                                              |                                                                                                                      |      |   
|PART I                                                   |            |                                              | 2                                                                                                                    |     
|                                                         | ITEM 1.    |                                              | BUSINESS                                                                                                             |      |    | 2  | 
|                                                         |            | General                                      |                                                                                                                      |      | 2  |   
|                                                         |            | Business and Products                        |                                                                                                                      |      | 2  |   
|                                                         |            | Product Sales                                |                                                                                                                      |      | 2  |   
|                                                         |            | Order Backlog                                |                                                                                                                      |      | 3  |   
|                                                         |            | Seasonality                                  |                                                                                                                      |      | 3  |   
|                                                         |            | Limestone Reserves                           |                                                                                                                      |      | 3  |   
|                                                         |            | Mining                                       |                                                                                                                      |      | 3  |   
|                                                         |            | Plants and Facilities                        |                                                                                                                      |      | 4  |   
|                                                         |            | Employees                                    |                                                                                                                      |      | 4  |   
|                                                         |            | Competition                                  |                                                                                                                      |      | 5  |   
|                                                         |            | Impact of Environmental Laws and Liabilities |                                                                                                                      |      | 5  |   
|                                                         | ITEM 2.    |                                              | PROPERTIES                                                                                                           |      |    | 6  | 
|                                                         | ITEM 3.    |                                              | LEGAL PROCEEDINGS                                                                                                    |      |    | 6  | 
|                                                         | ITEM 4.    |                                              | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
    HOLDERS                                                              |      |    | 6  | 
|                                                         |            |                                              |                                                                                                                      |      |    |   
|PART II                                                  |            |                                              | 6                                                                                                                    |     
|                                                         | ITEM 5.    |                                              | MARKET FOR REGISTRANTS COMMON EQUITY,
    RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES |      |    | 6  | 
|                                                         | ITEM 6.    |                                              | SELECTED FINANCIAL DATA                                                                                              |      |    | 7  | 
|                                                         | ITEM 7.    |                                              | MANAGEMENTS DISCUSSION AND ANALYSIS
    OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                            |      |    | 7  | 
|                                                         |            | FORWARD-LOOKING STATEMENTS                   |                                                                                                                      |      | 7  |   
|                                                         |            | OVERVIEW                                     |                                                                                                                      |      | 7  |   
|                                                         |            | CRITICAL ACCOUNTING POLICIES                 |                                                                                                                      |      | 9  |   
|                                                         |            | RESULTS OF OPERATIONS                        |                                                                                                                      |      | 11 |   
|                                                         |            | FINANCIAL CONDITION                          |                                                                                                                      |      | 12 |   
|                                                         |            | ADDITIONAL FACTORS                           |                                                                                                                      |      | 17 |   
|                                                         | ITEM 7A.   |                                              | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISK                                                       |      |    | 18 | 
|                                                         | ITEM 8.    |                                              | FINANCIAL STATEMENTS AND SUPPLEMENTARY
    DATA                                                                      |      |    | 20 | 
|                                                         | ITEM 9.    |                                              | CHANGES IN AND DISAGREEMENTS WITH
    ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                             |      |    | 41 | 
|                                                         | ITEM 9A.   |                                              | CONTROLS AND PROCEDURES                                                                                              |      |    | 41 | 
|                                                         | ITEM 9B.   |                                              | OTHER INFORMATION                                                                                                    |      |    | 41 | 
|PART III                                                 |            |                                              | 41                                                                                                                   |     
|                                                         | ITEM 10.   |                                              | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    COMPANY                                                                  |      |    | 41 | 
|                                                         | ITEM 11.   |                                              | EXECUTIVE COMPENSATION                                                                                               |      |    | 41 | 
|                                                         | ITEM 12.   |                                              | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
    OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                   |      |    | 41 | 
|                                                         | ITEM 13.   |                                              | CERTAIN RELATIONSHIPS AND RELATED
    TRANSACTIONS                                                                   |      |    | 41 | 
|                                                         | ITEM 14.   |                                              | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                               |      |    | 41 | 
|PART IV                                                  |            |                                              | 42                                                                                                                   |     
|                                                         | ITEM 15.   |                                              | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES                                                                       |      |    | 42 | 
|                                                         | SIGNATURES |                                              |                                                                                                                      |      |    | 45 | 
|Subsidiaries                                            
|Consent of Independent Registered Public Accounting Firm
|Certification by CEO                                    
|Certification by CFO                                    
|Certification by CEO                                    
|Certification by CFO                                    



1



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PART I





ITEM
1.     BUSINESS.





General.


www.uslm.com





Business and Products.







Product Sales.








2



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Order Backlog.





Seasonality.





Limestone Reserves.











Mining.


3



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Plants and Facilities.





















Employees.


4



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Competition.











Impact of Environmental Laws and Liabilities.




2 2 2


5



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2









ITEM
2.     PROPERTIES.







ITEM 3.     LEGAL
PROCEEDINGS.







ITEM 4.     SUBMISSION OF
MATTERS TO A VOTE OF SECURITY HOLDERS.







PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES.









|               |  |              |      |  |              |   |       |           |  |   |      |  |  |          |      |  |  |   |       | 
|-------------- |  | ------------ | ---- |  | ------------ | - | ----- | --------- |  | - | ---- |  |  | -------- | ---- |  |  | - | ----- | 
|               |  | 2004         |      |  | 2003         |  
|               |  |              |      |  |              |  
|               |  | Market Price |      |  | Market Price |   |       |          
|               |  |              |      |  |              |   |       | Dividends | 
|               |  | Low          |      |  | High         |   |       | Low       |  |   | High |  |  | Declared |     
|               |  |              |      |  |              |   |       |           |  |   |      |  |  |          |     
|First Quarter  |  | $            | 6.95 |  |              | $ | 10.97 |           |  | $ | 2.82 |  |  | $        | 4.80 |  |  | $ | 0.025 | 
|Second Quarter |  | $            | 7.50 |  |              | $ | 11.90 |           |  | $ | 3.00 |  |  | $        | 4.00 |  |  | $ | 0.025 | 
|Third Quarter  |  | $            | 8.05 |  |              | $ | 11.83 |           |  | $ | 3.11 |  |  | $        | 4.90 |  |  |   |      | 
|Fourth Quarter |  | $            | 8.61 |  |              | $ | 11.35 |           |  | $ | 4.26 |  |  | $        | 8.70 |  |  |   |      | 

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|        |                         
|------- | ------------------------
|ITEM 6. | SELECTED FINANCIAL DATA.

|                                         |                            |                                                  |   |        |      |  |   |        |  |  |      |        |  |      |   |        |  |  |   |        |  
|---------------------------------------- | -------------------------- | ------------------------------------------------ | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  | ---- | - | ------ |  |  | - | ------ | -
|                                         |                            | Years Ended December 31,                         |  
|                                         |                            |                                                  |  
|                                         |                            | 2004                                             |   |        | 2003 |  |   | 2002   |  |  | 2001 |        |  | 2000 |  
|                                         |                            |                                                  |   |        |      |  |   |        |  |  |      |        |  |      |  
|                                         |                            | (Dollars in thousands, except per share amounts) |  
|Operating results                        |                            |                                                  |   |        |      |  |   |        |  |  |      |        |  |      |   |        |  |  |   |       
|                                         | Revenues                   |                                                  | $ | 55,679 |      |  | $ | 45,256 |  |  | $    | 39,162 |  |      | $ | 39,753 |  |  | $ | 32,456 |  
|                                         | Gross profit               |                                                  | $ | 17,020 |      |  | $ | 13,062 |  |  | $    | 9,508  |  |      | $ | 10,465 |  |  | $ | 6,505  |  
|                                         | Operating profit           |                                                  | $ | 11,980 |      |  | $ | 8,574  |  |  | $    | 5,539  |  |      | $ | 6,390  |  |  | $ | 2,569  |  
|                                         | Income (loss) before taxes |                                                  | $ | 7,713  |      |  | $ | 4,804  |  |  | $    | 671    |  |      | $ | 2,189  |  |  | $ | (820   | )
|                                         | Net income (loss)          |                                                  | $ | 6,329  |      |  | $ | 3,860  |  |  | $    | 636    |  |      | $ | 1,773  |  |  | $ | (635   | )
|Income (loss) per share of common stock: |                            |                                                  |   |        |      |  |   |        |  |  |      |        |  |      |   |        |  |  |   |       
|                                         | Basic                      |                                                  | $ | 1.08   |      |  | $ | 0.67   |  |  | $    | 0.11   |  |      | $ | 0.32   |  |  | $ | (0.16  | )
|                                         | Diluted                    |                                                  | $ | 1.07   |      |  | $ | 0.67   |  |  | $    | 0.11   |  |      | $ | 0.32   |  |  | $ | (0.16  | )

|                                                  |  |                    |         |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|------------------------------------------------- |  | ------------------ | ------- |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------ | 
|                                                  |  | As of December 31, |        
|                                                  |  |                    |        
|                                                  |  | 2004               |         |  | 2003 |   |        | 2002 |  |   | 2001   |  |  | 2000 |       
|                                                  |  |                    |         |  |      |   |        |      |  |   |        |  |  |      |       
|Total assets                                      |  | $                  | 100,339 |  |      | $ | 99,500 |      |  | $ | 84,519 |  |  | $    | 89,409 |  |  | $ | 93,614 | 
|Long-term debt, excluding current installments    |  | $                  | 41,390  |  |      | $ | 47,886 |      |  | $ | 37,500 |  |  | $    | 40,833 |  |  | $ | 44,167 | 
|Stockholders equity per outstanding common share |  | $                  | 8.25    |  |      | $ | 7.22   |      |  | $ | 6.60   |  |  | $    | 6.64   |  |  | $ | 6.97   | 
|Cash dividends per common share                   |  | $                  |        |  |      | $ | 0.05   |      |  | $ | 0.10   |  |  | $    | 0.10   |  |  | $ | 0.10   | 
|Employees                                         |  | $                  | 211     |  |      | $ | 201    |      |  | $ | 198    |  |  | $    | 200    |  |  | $ | 212    | 








|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS.




FORWARD-LOOKING STATEMENTS.







OVERVIEW.




7



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8



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CRITICAL ACCOUNTING POLICIES.






Accounts receivable.


Revenue recognition.


Long-lived assets. Accounting
for the Impairment or Disposal of Long-Lived Assets


9



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Deferred tax assets.


Environmental costs.


Contingencies.


Derivatives.


Warrant share put liability.


Pension plan.


10



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RESULTS OF OPERATIONS.




|                                             |                                          |                         |       |       |      |   |       |       |      |   |       |       |      |  
|-------------------------------------------- | ---------------------------------------- | ----------------------- | ----- | ----- | ---- | - | ----- | ----- | ---- | - | ----- | ----- | ---- | -
|                                             |                                          | Year Ended December 31, |      
|                                             |                                          |                         |      
|                                             |                                          | 2004                    |       |       | 2003 |   |       | 2002  |     
|                                             |                                          |                         |       |       |      |   |       |       |     
|Revenues                                     |                                          |                         | 100.0 | %     |      |   | 100.0 | %     |      |   | 100.0 | %    
|Cost of revenues                             |                                          |                         |       |       |      |   |       |       |      |   |       |      
|                                             | Labor and other operating expenses       |                         |       | (56.1 | )    |   |       | (57.7 | )    |   |       | (60.0 | )   
|                                             | Depreciation, depletion and amortization |                         |       | (13.3 | )    |   |       | (13.5 | )    |   |       | (15.8 | )   
|                                             |                                          |                         |       |       |      |   |       |       |     
|                                             |                                          | Gross profit            |       |       | 30.6 |   |       |       | 28.8 |   |       |       | 24.2 |  
|Selling, general and administrative expenses |                                          |                         | (9.0  | )     |      |   | (9.9  | )     |      |   | (10.1 | )    
|                                             |                                          |                         |       |       |      |   |       |       |     
|                                             |                                          | Operating profit        |       |       | 21.6 |   |       |       | 18.9 |   |       |       | 14.1 |  
|Other income (expenses):                     |                                          |                         |       |       |      |   |       |       |      |   |       |      
|                                             | Interest expense                         |                         |       | (10.1 | )    |   |       | (10.1 | )    |   |       | (11.0 | )   
|                                             | Other, net                               |                         |       | 2.4   |      |   |       | 1.8   |      |   |       | (1.4  | )   
|Federal and state income tax expense         |                                          |                         | (2.5  | )     |      |   | (2.1  | )     |      |   | (0.1  | )    
|                                             |                                          |                         |       |       |      |   |       |       |     
|                                             |                                          | Net income              |       |       | 11.4 | % |       |       | 8.5  | % |       |       | 1.6  | %
|                                             |                                          |                         |       |       |      |   |       |       |     

2004 vs. 2003












11



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2003 vs. 2002

















FINANCIAL CONDITION.


Capital Requirements.


12



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Cash Flows From Operations.


Banking Facilities and Debt.










13



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14



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Capital Expenditures.










Contractual Obligations.


|                                               |       |                        |        |           |        |   |       |           |  |   |           |        |  |         |        |        |  |   |     |     | 
|---------------------------------------------- | ----- | ---------------------- | ------ | --------- | ------ | - | ----- | --------- |  | - | --------- | ------ |  | ------- | ------ | ------ |  | - | --- | --- | 
|                                               |       | Payments Due by Period |       
|                                               |       |                        |       
|                                               |       |                        |        | More than |       
|Contractual Obligations                        |       | Total                  |        |           | 1 Year |   |       | 2-3 Years |  |   | 4-5 Years |        |  | 5 Years |       
|                                               |       |                        |        |           |        |   |       |           |  |   |           |        |  |         |       
|                                               |       | (Dollars in thousands) |       
|Long-Term Debt, including current installments |       | $                      | 44,000 |           |        | $ | 2,500 |           |  | $ | 12,825    |        |  | $       | 28,675 |        |  | $ |    |    
|Operating Leases(1)                            |       | $                      | 1,108  |           |        | $ | 378   |           |  | $ | 579       |        |  | $       | 151    |        |  | $ |    |    
|Purchase Obligations(2)                        |       | $                      | 2,068  |           |        | $ | 2,068 |           |  | $ |          |        |  | $       |       |        |  | $ |    |    
|Other Liabilities(3)(4)                        |       | $                      | 210    |           |        | $ | 17    |           |  | $ | 38        |        |  | $       | 44     |        |  | $ | 111 |    
|                                               |       |                        |        |           |        |   |       |           |  |   |           |        |  |         |       
|                                               | Total |                        | $      | 47,386    |        |   | $     | 4,963     |  |   | $         | 13,442 |  |         | $      | 28,870 |  |   | $   | 111 | 
|                                               |       |                        |        |           |        |   |       |           |  |   |           |        |  |         |       

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|    |                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes approximately $633 for operating leases for mobile
    equipment entered into under the Companys $2,000 equipment
    line of credit (previously available for financing or leasing
    large mobile equipment used in its operations) from the bank
    that had issued the revolving credit facility terminated in the
    August 2004 refinancing, and corporate office lease.
|   
|(2) | Approximate amount of open equipment and construction orders,
    including orders related to the refurbishing of our Shreveport
    terminal and the installation of the new kiln baghouse at our
    Texas plant. Approximately $1,477 of these obligations are
    recorded on the Consolidated Balance Sheet at December 31,
    2004 in current liabilities.                          
|   
|(3) | Does not include $270 unfunded projected benefit obligation for
    a defined benefit pension plan. Future required contributions,
    if any, are subject to actuarial assumptions and future earnings
    on plan assets. (See Note 7 of Notes to Consolidated
    Financial Statements.)                                                                                                
|   
|(4) | Does not include $539 potential liability for the repurchase of
    certain shares of our common stock. Future potential liability
    will vary with the market price of our common stock. (See
    Notes 3 and 9 of Notes to Consolidated Financial
    Statements.)                                                                                                                     

Liquidity.


NEW ACCOUNTING PRONOUNCEMENTS.


Stock Options.






| |                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) A modified prospective method, in which
    compensation cost is recognized beginning with the effective
    date based on the requirements of SFAS 123(R) for all
    share-based payments granted after the adoption date and based
    on the requirements of SFAS 123 for all awards granted to
    employees prior to the effective date of SFAS 123(R) that
    remain unvested on the adoption date.
|
| | (2) A modified retrospective method which
    includes the requirements of the modified prospective method
    described above, but also permits entities to restate either all
    prior periods presented or prior interim periods of the year of
    adoption based on the amounts previously recognized under
    SFAS 123 for purposes of pro forma disclosures.                                          





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Stripping Costs in the Mining Industry.


Inventory Costs.





ADDITIONAL FACTORS.


Effects of Leverage and Restrictions Imposed by Terms of Our
Indebtedness.




Short-Term Liquidity Demands.




17



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Factors That Could Affect Our Success.


Environmental Compliance.




Successful Execution of Expansion Projects.


Competition.







|         |                                                                
|-------- | ---------------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK.

COMMODITY PRICE RISK.




INTEREST RATE RISK.




18



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WARRANT SHARES REPURCHASE OBLIGATION.




19



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|        |                                             
|------- | --------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index to Consolidated Financial Statements.


|                                                                                                             |  |  |    | 
|------------------------------------------------------------------------------------------------------------ |  |  | -- | 
|Report of Independent Registered Public
    Accounting Firm                                                  |  |  | 21 | 
|Consolidated Financial Statements:                                                                           |  |  |    | 
|Consolidated Balance Sheets as of
    December 31, 2004 and 2003                                             |  |  | 22 | 
|Consolidated Statements of Operations for
    the Years Ended December 31, 2004, 2003 and 2002               |  |  | 23 | 
|Consolidated Statements of
    Stockholders Equity for the Years Ended December 31,
    2004, 2003 and 2002 |  |  | 24 | 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2004, 2003 and 2002               |  |  | 25 | 
|Notes to Consolidated Financial
    Statements                                                               |  |  | 26 | 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM














| |                  
| | -----------------
| | ERNST & YOUNG LLP





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UNITED STATES LIME & MINERALS, INC.





Consolidated Balance Sheets


|                                        |                                                                                                                                                        |                                            |                            |         |         |        |         |         |        |        | 
|--------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------ | -------------------------- | ------- | ------- | ------ | ------- | ------- | ------ | ------ | 
|                                        |                                                                                                                                                        | December 31,                               |                           
|                                        |                                                                                                                                                        |                                            |                           
|                                        |                                                                                                                                                        | 2004                                       |                            |         | 2003    |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | (Dollars in thousands,                     |                           
|                                        |                                                                                                                                                        | except share data)                         |                           
|ASSETS                                 
|Current assets:                         |                                                                                                                                                        |                                            |                            |         |         |        |         |        
|                                        | Cash and cash equivalents                                                                                                                              |                                            | $                          | 227     |         |        | $       | 6,375   |       
|                                        | Trade receivables, net                                                                                                                                 |                                            |                            | 9,466   |         |        |         | 6,959   |       
|                                        | Inventories                                                                                                                                            |                                            |                            | 5,113   |         |        |         | 4,609   |       
|                                        | Prepaid expenses and other assets                                                                                                                      |                                            |                            | 996     |         |        |         | 721     |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | Total current assets                       |                            |         | 15,802  |        |         |         | 18,664 |       
|Property, plant and equipment, at cost: |                                                                                                                                                        |                                            |                            |         |         |        |         |        
|                                        | Land                                                                                                                                                   |                                            |                            | 4,071   |         |        |         | 3,654   |       
|                                        | Building and building improvements                                                                                                                     |                                            |                            | 1,724   |         |        |         | 1,829   |       
|                                        | Machinery and equipment                                                                                                                                |                                            |                            | 130,565 |         |        |         | 119,700 |       
|                                        | Furniture and fixtures                                                                                                                                 |                                            |                            | 1,100   |         |        |         | 971     |       
|                                        | Automotive equipment                                                                                                                                   |                                            |                            | 662     |         |        |         | 484     |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        |                                            | 138,122                    |         |         |        | 126,638 |        
|                                        | Less accumulated depreciation                                                                                                                          |                                            |                            | (54,581 | )       |        |         | (49,371 | )     
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | Property, plant and equipment, net         |                            |         | 83,541  |        |         |         | 77,267 |       
|Deferred tax assets, net                |                                                                                                                                                        |                                            | 108                        |         |         |        | 1,899   |        
|Other assets, net                       |                                                                                                                                                        |                                            | 888                        |         |         |        | 1,670   |        
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | Total assets                               |                            | $       | 100,339 |        |         | $       | 99,500 |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|LIABILITIES AND STOCKHOLDERS EQUITY   
|Current liabilities:                    |                                                                                                                                                        |                                            |                            |         |         |        |         |        
|                                        | Current installments of debt                                                                                                                           |                                            | $                          | 2,500   |         |        | $       | 3,333   |       
|                                        | Accounts payable  trade                                                                                                                               |                                            |                            | 4,176   |         |        |         | 3,369   |       
|                                        | Accrued expenses                                                                                                                                       |                                            |                            | 2,993   |         |        |         | 2,053   |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | Total current liabilities                  |                            |         | 9,669   |        |         |         | 8,755  |       
|Debt, excluding current installments    |                                                                                                                                                        |                                            | 41,390                     |         |         |        | 47,886  |        
|Other liabilities                       |                                                                                                                                                        |                                            | 1,057                      |         |         |        | 899     |        
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | Total liabilities                          |                            |         | 52,116  |        |         |         | 57,540 |       
|Commitments and contingencies           |                                                                                                                                                        |                                            |                            |         |         |        |         |        
|Stockholders equity:                   |                                                                                                                                                        |                                            |                            |         |         |        |         |        
|                                        | Preferred stock, $5.00 par value; authorized
    500,000 shares; none issued                                                                           |                                            |                            |        |         |        |         |        |       
|                                        | Common stock, $0.10 par value; authorized
    15,000,000 shares; 5,845,338 and 5,815,596 shares
    issued at December 31, 2004 and 2003, respectively |                                            |                            | 584     |         |        |         | 582     |       
|                                        | Additional paid-in capital                                                                                                                             |                                            |                            | 10,516  |         |        |         | 10,458  |       
|                                        | Accumulated other comprehensive loss                                                                                                                   |                                            |                            | (363    | )       |        |         | (237    | )     
|                                        | Retained earnings                                                                                                                                      |                                            |                            | 37,486  |         |        |         | 31,157  |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        |                                            | Total stockholders equity |         |         | 48,223 |         |         |        | 41,960 | 
|                                        |                                                                                                                                                        |                                            |                            |         |         |       
|                                        |                                                                                                                                                        | Total liabilities and stockholders equity |                            | $       | 100,339 |        |         | $       | 99,500 |       
|                                        |                                                                                                                                                        |                                            |                            |         |         |       



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UNITED STATES LIME & MINERALS, INC.





Consolidated Statements of Operations


|                                             |                                          |                                   |                     |        |      |        |        |        |      |        |        |        |      |       | 
|-------------------------------------------- | ---------------------------------------- | --------------------------------- | ------------------- | ------ | ---- | ------ | ------ | ------ | ---- | ------ | ------ | ------ | ---- | ----- | 
|                                             |                                          | Years Ended December 31,          |                    
|                                             |                                          |                                   |                    
|                                             |                                          | 2004                              |                     |        | 2003 |        |        | 2002   |     
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          | (Dollars in thousands, except per |                    
|                                             |                                          | share amounts)                    |                    
|Revenues                                     |                                          | $                                 | 55,679              |        |      | $      | 45,256 |        |      | $      | 39,162 |       
|Cost of revenues:                            |                                          |                                   |                     |        |      |        |        |        |      |        |        |       
|                                             | Labor and other operating expenses       |                                   |                     | 31,236 |      |        |        | 26,091 |      |        |        | 23,484 |     
|                                             | Depreciation, depletion and amortization |                                   |                     | 7,423  |      |        |        | 6,103  |      |        |        | 6,170  |     
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          |                                   | 38,659              |        |      |        | 32,194 |        |      |        | 29,654 |       
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          |                                   | Gross profit        |        |      | 17,020 |        |        |      | 13,062 |        |        |      | 9,508 | 
|Selling, general and administrative expenses |                                          |                                   | 5,040               |        |      |        | 4,488  |        |      |        | 3,969  |       
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          |                                   | Operating profit    |        |      | 11,980 |        |        |      | 8,574  |        |        |      | 5,539 | 
|Other (income) expenses:                     |                                          |                                   |                     |        |      |        |        |        |      |        |        |       
|                                             | Interest expense                         |                                   |                     | 5,630  |      |        |        | 4,577  |      |        |        | 4,329  |     
|                                             | Other, net                               |                                   |                     | (1,363 | )    |        |        | (807   | )    |        |        | 539    |     
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          |                                   | 4,267               |        |      |        | 3,770  |        |      |        | 4,868  |       
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          |                                   | Income before taxes |        |      | 7,713  |        |        |      | 4,804  |        |        |      | 671   | 
|Income tax expense, net                      |                                          |                                   | 1,384               |        |      |        | 944    |        |      |        | 35     |       
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          |                                   | Net income          |        | $    | 6,329  |        |        | $    | 3,860  |        |        | $    | 636   | 
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|Income per share of common stock:            |                                          |                                   |                     |        |      |        |        |        |      |        |        |       
|                                             |                                          | Basic                             |                     | $      | 1.08 |        |        | $      | 0.67 |        |        | $      | 0.11 |      
|                                             |                                          |                                   |                     |        |      |        |        |        |     
|                                             |                                          | Diluted                           |                     | $      | 1.07 |        |        | $      | 0.67 |        |        | $      | 0.11 |      
|                                             |                                          |                                   |                     |        |      |        |        |        |     



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UNITED STATES LIME & MINERALS, INC.





Consolidated Statements of Stockholders Equity


Years Ended December 31, 2004, 2003 and 2002


|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |   |        |       |   |   |        |       |       | 
|----------------------------- | ------------------------------------------------------------- | ---------------------- | --------- | ------ | ---------- | - | ------- | ----------------- |  | ------------- | ------------- | -- | -------- | -------- | ---- | ---- | ----- | - | ------ | ----- | - | - | ------ | ----- | ----- | 
|                              |                                                               | Common Stock           |           |        |            |   |         |                   |  |               |              
|                              |                                                               |                        |           |        | Additional |   |         | Accumulated Other |  |               |               |    |         
|                              |                                                               | Shares                 |           |        |            |   | Paid-In |                   |  | Comprehensive |               |    | Retained |          |      |     
|                              |                                                               | Outstanding            |           |        | Amount     |   |         | Capital           |  |               | Income (Loss) |    |          | Earnings |      |      | Total |  
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|                              |                                                               | (Dollars in thousands) |          
|Balances at December 31, 2001 |                                                               |                        | 5,799,845 |        |            | $ | 580     |                   |  | $             | 10,392        |    |          | $        |     |      |       | $ | 27,535 |       |   | $ | 38,507 |      
|                              | Common stock dividends                                        |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      |     |       |   |        | (583  | ) |   |        | (583  | )    
|                              | Net income                                                    |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      |     |       |   |        | 636   |   |   |        | 636   |      
|                              | Minimum pension liability adjustment, net of $155 tax benefit |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      | (254 | )     |   |        |      |   |   |        | (254  | )    
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|                              |                                                               | Comprehensive income   |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |   |        |       |   |   |        |       | 382   | 
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|Balances at December 31, 2002 |                                                               |                        | 5,799,845 |        |            | $ | 580     |                   |  | $             | 10,392        |    |          | $        | (254 | )    |       | $ | 27,588 |       |   | $ | 38,306 |      
|                              | Stock options exercised                                       |                        |           | 15,751 |            |   |         | 2                 |  |               |               | 66 |          |          |      |     |       |   |        |      |   |   |        | 68    |      
|                              | Common stock dividends                                        |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      |     |       |   |        | (291  | ) |   |        | (291  | )    
|                              | Net income                                                    |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      |     |       |   |        | 3,860 |   |   |        | 3,860 |      
|                              | Minimum pension liability adjustment, net of $11 tax expense  |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      | 17   |       |   |        |      |   |   |        | 17    |      
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|                              |                                                               | Comprehensive income   |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |   |        |       |   |   |        |       | 3,877 | 
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|Balances at December 31, 2003 |                                                               |                        | 5,815,596 |        |            | $ | 582     |                   |  | $             | 10,458        |    |          | $        | (237 | )    |       | $ | 31,157 |       |   | $ | 41,960 |      
|                              | Stock options exercised                                       |                        |           | 29,742 |            |   |         | 2                 |  |               |               | 58 |          |          |      |     |       |   |        |      |   |   |        | 60    |      
|                              | Net income                                                    |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      |     |       |   |        | 6,329 |   |   |        | 6,329 |      
|                              | Minimum pension liability adjustment, net of $43 tax benefit  |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      | (69  | )     |   |        |      |   |   |        | (69   | )    
|                              | Mark to market for interest rate hedge                        |                        |           |       |            |   |         |                  |  |               |               |   |          |          |      | (57  | )     |   |        |      |   |   |        | (57   | )    
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|                              | Comprehensive income                                          |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |   |        |       |   |   |        | 6,203 |      
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  
|Balances at December 31, 2004 |                                                               |                        | 5,845,338 |        |            | $ | 584     |                   |  | $             | 10,516        |    |          | $        | (363 | )    |       | $ | 37,486 |       |   | $ | 48,223 |      
|                              |                                                               |                        |           |        |            |   |         |                   |  |               |               |    |          |          |      |      |       |  



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UNITED STATES LIME & MINERALS, INC.





Consolidated Statements of Cash Flows


|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |        |         |        |        |        |        |      |  
|--------------------- | --------------------------------------------------------------------------- | -------------------------------------------------------------- | -------------------------------------------------- | ------------------------------------- | ------- | ------- | ------ | ------- | ------ | ------- | ------ | ------ | ------ | ------ | ---- | -
|                      |                                                                             | Years Ended December 31,                                       |                                                   
|                      |                                                                             |                                                                |                                                   
|                      |                                                                             | 2004                                                           |                                                    |                                       | 2003    |         |        | 2002    |       
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             | (Dollars in thousands)                                         |                                                   
|OPERATING ACTIVITIES: |                                                                             |                                                                |                                                    |                                       |         |         |        |         |        |         |        |       
|Net income            |                                                                             | $                                                              | 6,329                                              |                                       |         | $       | 3,860  |         |        | $       | 636    |       
|                      | Adjustments to reconcile net income to net cash provided by
    operations: |                                                                |                                                    |                                       |         |         |        |         |        |         |        |        |       
|                      |                                                                             |                                                                | Depreciation, depletion and amortization           |                                       |         | 7,697   |        |         |        | 6,390   |        |        |        | 6,427  |     
|                      |                                                                             |                                                                | Amortization of financing costs                    |                                       |         | 1,101   |        |         |        | 317     |        |        |        | 230    |     
|                      |                                                                             |                                                                | Accretion of debt discount                         |                                       |         | 171     |        |         |        | 25      |        |        |        |       |     
|                      |                                                                             |                                                                | Accretion of repurchase liability  warrant shares |                                       |         | 210     |        |         |        | 22      |        |        |        |       |     
|                      |                                                                             |                                                                | Deferred income taxes                              |                                       |         | 1,832   |        |         |        | 449     |        |        |        |       |     
|                      |                                                                             |                                                                | Loss on sale of assets                             |                                       |         | 148     |        |         |        | 48      |        |        |        | 30     |     
|                      |                                                                             |                                                                | Changes in operating assets and liabilities:       |                                       |         |         |        |         |        |         |        |        |        |        |     
|                      |                                                                             |                                                                |                                                    | Trade receivables                     |         |         | (2,507 | )       |        |         | (1,757 | )      |        |        | 497  |  
|                      |                                                                             |                                                                |                                                    | Inventories                           |         |         | (377   | )       |        |         | 173    |        |        |        | 275  |  
|                      |                                                                             |                                                                |                                                    | Prepaid expenses                      |         |         | (275   | )       |        |         | (459   | )      |        |        | 534  |  
|                      |                                                                             |                                                                |                                                    | Other assets                          |         |         | (49    | )       |        |         | (109   | )      |        |        | (31  | )
|                      |                                                                             |                                                                |                                                    | Accounts payable and accrued expenses |         |         | 1,549  |         |        |         | 718    |        |        |        | (269 | )
|                      |                                                                             |                                                                |                                                    | Other liabilities                     |         |         | (719   | )       |        |         | (156   | )      |        |        | (122 | )
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             |                                                                | Total adjustments                                  |                                       |         | 8,781   |        |         |        | 5,661   |        |        |        | 7,571  |     
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             |                                                                | Net cash provided by operations                    |                                       | $       | 15,110  |        |         | $      | 9,521   |        |        | $      | 8,207  |     
|                     
|INVESTING ACTIVITIES: |                                                                             |                                                                |                                                    |                                       |         |         |        |         |        |         |        |       
|                      | Purchase of property, plant and equipment                                   |                                                                | $                                                  | (13,608                               | )       |         | $      | (12,014 | )      |         | $      | (3,622 | )     
|                      | Proceeds from sale of property, plant and equipment                         |                                                                |                                                    | 60                                    |         |         |        | 11      |        |         |        | 76     |       
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             |                                                                | Net cash used in investing activities              |                                       | $       | (13,548 | )      |         | $      | (12,003 | )      |        | $      | (3,546 | )   
|                     
|FINANCING ACTIVITIES: |                                                                             |                                                                |                                                    |                                       |         |         |        |         |        |         |        |       
|                      |                                                                             | Payment of common stock dividends                              |                                                    | $                                     |        |         |        | $       | (291   | )       |        | $      | (583   | )     
|                      |                                                                             | Proceeds from (repayments of) revolving credit facilities, net |                                                    |                                       | 7,825   |         |        |         | (1,263 | )       |        |        | (1,125 | )     
|                      |                                                                             | Proceeds from term loan, net of $270 issuance costs            |                                                    |                                       | 29,730  |         |        |         |       |         |        |        |       |       
|                      |                                                                             | Proceeds from subordinate debt, net of $550 issuance costs     |                                                    |                                       |        |         |        |         | 13,450 |         |        |        |       |       
|                      |                                                                             | Repayments of term loans                                       |                                                    |                                       | (38,325 | )       |        |         | (3,333 | )       |        |        | (3,333 | )     
|                      |                                                                             | Repayment of subordinated debt                                 |                                                    |                                       | (7,000  | )       |        |         |       |         |        |        |       |       
|                      |                                                                             | Proceeds from exercise of stock options                        |                                                    |                                       | 60      |         |        |         | 68     |         |        |        |       |       
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             | Net cash (used in) provided by financing activities            |                                                    | $                                     | (7,710  | )       |        | $       | 8,631  |         |        | $      | (5,041 | )     
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             | Net (decrease) increase in cash and cash equivalents           |                                                    |                                       | (6,148  | )       |        |         | 6,149  |         |        |        | (380   | )     
|                      |                                                                             | Cash and cash equivalents at beginning of year                 |                                                    |                                       | 6,375   |         |        |         | 226    |         |        |        | 606    |       
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       
|                      |                                                                             | Cash and cash equivalents at end of year                       |                                                    | $                                     | 227     |         |        | $       | 6,375  |         |        | $      | 226    |       
|                      |                                                                             |                                                                |                                                    |                                       |         |         |        |         |       



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UNITED STATES LIME & MINERALS, INC.





Notes to Consolidated Financial Statements


(Dollars in thousands, except per share amounts)


Years Ended December 31, 2004, 2003 and 2002




|    |                                           
|--- | ------------------------------------------
|(1) | Summary of Significant Accounting Policies



|    |             
|--- | ------------
|(a) | Organization





|    |                            
|--- | ---------------------------
|(b) | Principles of Consolidation





|    |                 
|--- | ----------------
|(c) | Use of Estimates





|    |                         
|--- | ------------------------
|(d) | Statements of Cash Flows





|                               |                              |                         |   |       |      |  |   |       |  |  |   |       | 
|------------------------------ | ---------------------------- | ----------------------- | - | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|                               |                              | Year Ended December 31, |  
|                               |                              |                         |  
|                               |                              | 2004                    |   |       | 2003 |  |   | 2002  | 
|                               |                              |                         |   |       |      |  |   |       | 
|Cash paid during the year for: |                              |                         |   |       |      |  |   |       |  |  |   |      
|                               | Interest                     |                         | $ | 4,593 |      |  | $ | 4,507 |  |  | $ | 4,099 | 
|                               |                              |                         |   |       |      |  |   |       | 
|                               | Income taxes, net of refunds |                         | $ | 165   |      |  | $ | 218   |  |  | $ | 83    | 
|                               |                              |                         |   |       |      |  |   |       | 



|    |                    
|--- | -------------------
|(e) | Revenue Recognition





|    |                                     
|--- | ------------------------------------
|(f) | Fair Values of Financial Instruments



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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)






|    |                                                       
|--- | ------------------------------------------------------
|(g) | Concentration of Credit Risk and Trade
    Receivables







|    |            
|--- | -----------
|(h) | Inventories





|                                |                |              |       |       |      |   |       |       | 
|------------------------------- | -------------- | ------------ | ----- | ----- | ---- | - | ----- | ----- | 
|                                |                | December 31, |      
|                                |                |              |      
|                                |                | 2004         |       |       | 2003 |  
|                                |                |              |       |       |      |  
|Lime and limestone inventories: |                |              |       |       |      |   |       |      
|                                | Raw materials  |              | $     | 1,913 |      |   | $     | 1,616 | 
|                                | Finished goods |              |       | 756   |      |   |       | 769   | 
|                                |                |              |       |       |      |  
|                                |                |              | 2,669 |       |      |   | 2,385 |      
|Service parts inventories       |                |              | 2,444 |       |      |   | 2,224 |      
|                                |                |              |       |       |      |  
|                                |                | $            | 5,113 |       |      | $ | 4,609 |      
|                                |                |              |       |       |      |  



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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)






|    |                              
|--- | -----------------------------
|(i) | Property, Plant and Equipment



|                                    |  |  |            | 
|----------------------------------- |  |  | ---------- | 
|Buildings and building improvements |  |  | 3-20 years | 
|Machinery and equipment             |  |  | 3-20 years | 
|Furniture and fixtures              |  |  | 3-10 years | 
|Automotive equipment                |  |  | 3-8 years  | 



Accounting for Asset
Retirement Obligations,


Accounting for the
Impairment or Disposal of Long-Lived Assets




|    |             
|--- | ------------
|(j) | Other Assets



|                         |  |              |     |  |      |   |       | 
|------------------------ |  | ------------ | --- |  | ---- | - | ----- | 
|                         |  | December 31, |    
|                         |  |              |    
|                         |  | 2004         |     |  | 2003 |  
|                         |  |              |     |  |      |  
|Deferred stripping costs |  | $            | 435 |  |      | $ | 381   | 
|Deferred financing costs |  |              | 448 |  |      |   | 1,279 | 
|Other                    |  |              | 5   |  |      |   | 10    | 
|                         |  |              |     |  |      |  
|                         |  | $            | 888 |  |      | $ | 1,670 | 
|                         |  |              |     |  |      |  



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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)






|    |                           
|--- | --------------------------
|(k) | Environmental Expenditures







|    |                                 
|--- | --------------------------------
|(l) | Income Per Share of Common Stock



|                                                                                                             |                                                                             |                         |           |           |      |   |           |           |  |   |           |           | 
|------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------- | ----------------------- | --------- | --------- | ---- | - | --------- | --------- |  | - | --------- | --------- | 
|                                                                                                             |                                                                             | Year Ended December 31, |          
|                                                                                                             |                                                                             |                         |          
|                                                                                                             |                                                                             | 2004                    |           |           | 2003 |   |           | 2002      | 
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 
|Numerator:                                                                                                   |                                                                             |                         |           |           |      |   |           |           |  |   |           |          
|                                                                                                             | Net income for basic income per common share                                |                         | $         | 6,329     |      |   | $         | 3,860     |  |   | $         | 636       | 
|Warrant interest adjustment                                                                                  |                                                                             |                         | 21        |           |      |   | 22        |           |  |   |          |          
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 
|Net income for diluted income per common share                                                               |                                                                             | $                       | 6,350     |           |      | $ | 3,882     |           |  | $ | 636       |          
|Denominator:                                                                                                 |                                                                             |                         |           |           |      |   |           |           |  |   |           |          
|                                                                                                             | Denominator for basic income per common share 
    weighted-average shares |                         |           | 5,834,039 |      |   |           | 5,801,917 |  |   |           | 5,799,845 | 
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 
|                                                                                                             | Effect of dilutive securities:                                              |                         |           |           |      |   |           |           |  |   |           |           | 
|                                                                                                             | Warrants                                                                    |                         |           | 23,703    |      |   |           | 10,752    |  |   |           |          | 
|                                                                                                             | Employee stock options                                                      |                         |           | 75,276    |      |   |           | 12,438    |  |   |           |          | 
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 
|Denominator for diluted income per common share 
    adjusted weighted-average shares and assumed exercises |                                                                             |                         | 5,933,018 |           |      |   | 5,825,107 |           |  |   | 5,799,845 |          
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 
|Basic income per common share                                                                                |                                                                             | $                       | 1.08      |           |      | $ | 0.67      |           |  | $ | 0.11      |          
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 
|Diluted income per common share                                                                              |                                                                             | $                       | 1.07      |           |      | $ | 0.67      |           |  | $ | 0.11      |          
|                                                                                                             |                                                                             |                         |           |           |      |   |           |           | 



|    |              
|--- | -------------
|(m) | Stock Options

Accounting for Stock Issued to
Employees


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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)


Accounting for Stock-Based
Compensation




|                                                                                                                       |  |                         |       |   |      |   |       |      |  |   |      |  
|---------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | ----- | - | ---- | - | ----- | ---- |  | - | ---- | -
|                                                                                                                       |  | Year Ended December 31, |      
|                                                                                                                       |  |                         |      
|                                                                                                                       |  | 2004                    |       |   | 2003 |   |       | 2002 | 
|                                                                                                                       |  |                         |       |   |      |   |       |      | 
|Net income as reported                                                                                                 |  | $                       | 6,329 |   |      | $ | 3,860 |      |  | $ | 636  |  
|Pro forma stock-based employee and director compensation
    expense, net of income taxes, under the fair value method |  | $                       | (170  | ) |      | $ | (61   | )    |  | $ | (33  | )
|                                                                                                                       |  |                         |       |   |      |   |       |      | 
|Pro forma net income                                                                                                   |  | $                       | 6,159 |   |      | $ | 3,799 |      |  | $ | 603  |  
|                                                                                                                       |  |                         |       |   |      |   |       |      | 
|Basic income per common share, as reported                                                                             |  | $                       | 1.08  |   |      | $ | 0.67  |      |  | $ | 0.11 |  
|Diluted income per common share, as reported                                                                           |  | $                       | 1.07  |   |      | $ | 0.67  |      |  | $ | 0.11 |  
|Pro forma basic income per common share                                                                                |  | $                       | 1.06  |   |      | $ | 0.65  |      |  | $ | 0.10 |  
|Pro forma diluted income per common share                                                                              |  | $                       | 1.04  |   |      | $ | 0.65  |      |  | $ | 0.10 |  









| |                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) A modified prospective method, in which
    compensation cost is recognized beginning with the effective
    date based on the requirements of SFAS 123(R) for all
    share-based payments granted after the adoption date and based
    on the requirements of SFAS 123 for all awards granted to
    employees prior to the effective date of SFAS 123(R) that
    remain unvested on the adoption date.
|
| | (2) A modified retrospective method which
    includes the requirements of the modified prospective method
    described above, but also permits entities to restate either all
    prior periods presented or prior interim periods of the year of
    adoption based on the amounts previously recognized under
    SFAS 123 for purposes of pro forma disclosures.                                          





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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)








|    |                                                  
|--- | -------------------------------------------------
|(n) | Derivative Instruments and Hedging
    Activities







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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)




|    |                     
|--- | --------------------
|(o) | Comprehensive Income

Reporting Comprehensive Income




|    |                    
|--- | -------------------
|(2) | Embezzlement Matter







|    |                                  
|--- | ---------------------------------
|(3) | Banking Facilities and Other Debt







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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)
















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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)












|                                     |          |              |        |        |              |   |        |        | 
|------------------------------------ | -------- | ------------ | ------ | ------ | ------------ | - | ------ | ------ | 
|                                     |          | December 31, |        |        | December 31, |  
|                                     |          | 2004         |        |        | 2003         |  
|                                     |          |              |        |        |              |  
|New Term Loan                        |          | $            | 29,175 |        |              | $ |       |       
|Old Term Loan                        |          |              |       |        |              |   | 37,500 |       
|Sub Notes                            |          |              | 7,000  |        |              |   | 14,000 |       
|Discount on Sub Notes                |          |              | (110   | )      |              |   | (281   | )     
|Revolving Credit Facility            |          |              | 7,825  |        |              |   |       |       
|                                     |          |              |        |        |              |  
|                                     | Subtotal |              |        | 43,890 |              |   |        | 51,219 | 
|Less current installments            |          |              | 2,500  |        |              |   | 3,333  |       
|                                     |          |              |        |        |              |  
|Debt, excluding current installments |          | $            | 41,390 |        |              | $ | 47,886 |       
|                                     |          |              |        |        |              |  



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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)






|      |        |  |      |   |       |      |  |   |        |  |  |      |       |  |      |   |       |            |  |   |        |  |  |   |   | 
|----- | ------ |  | ---- | - | ----- | ---- |  | - | ------ |  |  | ---- | ----- |  | ---- | - | ----- | ---------- |  | - | ------ |  |  | - | - | 
|Total |        |  | 2005 |   |       | 2006 |  |   | 2007   |  |  | 2008 |       |  | 2009 |   |       | Thereafter
|      |        |  |      |   |       |      |  |   |        |  |  |      |       |  |      |   |       |           
|$     | 44,000 |  |      | $ | 2,500 |      |  | $ | 10,325 |  |  | $    | 2,500 |  |      | $ | 9,500 |            |  | $ | 19,175 |  |  | $ |  | 



|    |                                     
|--- | ------------------------------------
|(4) | Accumulated Other Comprehensive Loss





|    |             
|--- | ------------
|(5) | Income Taxes



|                                     |  |      |       |   |      |   |     |      |  |   |    | 
|------------------------------------ |  | ---- | ----- | - | ---- | - | --- | ---- |  | - | -- | 
|                                     |  | 2004 |       |   | 2003 |   |     | 2002 | 
|                                     |  |      |       |   |      |   |     |      | 
|Current income tax (benefit) expense |  | $    | (448  | ) |      | $ | 495 |      |  | $ | 35 | 
|Deferred income tax expense          |  |      | 1,932 |   |      |   | 449 |      |  |   |   | 
|                                     |  |      |       |   |      |   |     |      | 
|Income tax expense, net              |  | $    | 1,384 |   |      | $ | 944 |      |  | $ | 35 | 
|                                     |  |      |       |   |      |   |     |      | 



|                                                    |                                                        |        |       |           |        |  |      |        |           |   |        |      |   |           |      |       |        |   |     |      |   |  |      |       |  
|--------------------------------------------------- | ------------------------------------------------------ | ------ | ----- | --------- | ------ |  | ---- | ------ | --------- | - | ------ | ---- | - | --------- | ---- | ----- | ------ | - | --- | ---- | - |  | ---- | ----- | -
|                                                    |                                                        | 2004   |       |           | 2003   |  |      | 2002   |          
|                                                    |                                                        |        |       |           |        |  |      |        |          
|                                                    |                                                        |        |       | Percent   |        |  |      |        | Percent   |   |        |      |   | Percent   |     
|                                                    |                                                        |        |       | of Pretax |        |  |      |        | of Pretax |   |        |      |   | of Pretax |     
|                                                    |                                                        | Amount |       |           | Income |  |      | Amount |           |   | Income |      |   | Amount    |      |       | Income |  
|                                                    |                                                        |        |       |           |        |  |      |        |           |   |        |      |   |           |      |       |        |  
|Income taxes computed at the federal statutory rate |                                                        | $      | 2,622 |           |        |  | 34.0 | %      |           | $ | 1,634  |      |   |           | 34.0 | %     |        | $ | 228 |      |   |  | 34.0 | %    
|(Reduction) increase in taxes resulting from:       |                                                        |        |       |           |        |  |      |        |           |   |        |      |   |           |      |       |        |   |     |      |   |  |      |      
|                                                    | Statutory depletion in excess of cost depletion        |        |       | (946      | )      |  |      | (12.3  | )         |   |        | (764 | ) |           |      | (15.9 | )      |   |     | (539 | ) |  |      | (80.4 | )
|                                                    | State income taxes, net of federal income tax benefit  |        |       | 95        |        |  |      | 1.2    |           |   |        | 73   |   |           |      | 1.5   |        |   |     | 23   |   |  |      | 3.4   |  
|                                                    | Recognition of previously reserved deferred tax assets |        |       | (218      | )      |  |      | (2.8   | )         |   |        | (50  | ) |           |      | (1.0  | )      |   |     |     |   |  |      |      |  
|                                                    | Other                                                  |        |       | (169      | )      |  |      | (2.2   | )         |   |        | 51   |   |           |      | 1.0   |        |   |     | 323  |   |  |      | 48.2  |  
|                                                    |                                                        |        |       |           |        |  |      |        |           |   |        |      |   |           |      |       |        |  
|Income tax expense, net                             |                                                        | $      | 1,384 |           |        |  | 17.9 | %      |           | $ | 944    |      |   |           | 19.6 | %     |        | $ | 35  |      |   |  | 5.2  | %    
|                                                    |                                                        |        |       |           |        |  |      |        |           |   |        |      |   |           |      |       |        |  

Accounting for Income
Taxes


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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)












|    |                  
|--- | -----------------
|(6) | Oil and Gas Lease





|    |                          
|--- | -------------------------
|(7) | Employee Retirement Plans





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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)




|                            |  |      |       |   |      |  |       |  
|--------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|                            |  | 2004 |       |   | 2003 | 
|                            |  |      |       |   |      | 
|Equity securities and funds |  |      | 58.7  | % |      |  | 61.0  | %
|Institutional bond funds    |  |      | 39.8  |   |      |  | 38.7  |  
|Cash and cash equivalents   |  |      | 1.5   |   |      |  | 0.3   |  
|                            |  |      |       |   |      | 
|                            |  |      | 100.0 | % |      |  | 100.0 | %
|                            |  |      |       |   |      | 



|                              |                                                |      |   |       |      |  |   |       |  
|----------------------------- | ---------------------------------------------- | ---- | - | ----- | ---- |  | - | ----- | -
|                              |                                                | 2004 |   |       | 2003 | 
|                              |                                                |      |   |       |      | 
|Change in benefit obligation: |                                                |      |   |       |      |  |   |      
|                              | Benefit obligation at beginning of year        |      | $ | 1,589 |      |  | $ | 1,546 |  
|                              | Interest cost                                  |      |   | 106   |      |  |   | 111   |  
|                              | Actuarial loss                                 |      |   | 124   |      |  |   | 49    |  
|                              | Benefits paid                                  |      |   | (117  | )    |  |   | (117  | )
|                              |                                                |      |   |       |      | 
|                              | Benefit obligation at end of year              |      | $ | 1,702 |      |  | $ | 1,589 |  
|                              |                                                |      |   |       |      | 
|Change in plan assets:        |                                                |      |   |       |      |  |   |      
|                              | Fair value of plan assets at beginning of year |      | $ | 1,252 |      |  | $ | 1,137 |  
|                              | Employer contribution                          |      |   | 212   |      |  |   | 107   |  
|                              | Actual gain on plan assets                     |      |   | 85    |      |  |   | 125   |  
|                              | Benefits paid                                  |      |   | (117  | )    |  |   | (117  | )
|                              |                                                |      |   |       |      | 
|                              | Fair value of plan assets at end of year       |      | $ | 1,432 |      |  | $ | 1,252 |  
|                              |                                                |      |   |       |      | 
|                              | Underfunded status                             |      | $ | (270  | )    |  | $ | (337  | )
|                              |                                                |      |   |       |      | 
|                              | Accumulated benefit obligation                 |      | $ | 1,702 |      |  | $ | 1,589 |  
|                              |                                                |      |   |       |      | 



|                     |  |      |     |  |      |   |     | 
|-------------------- |  | ---- | --- |  | ---- | - | --- | 
|                     |  | 2004 |     |  | 2003 |  
|                     |  |      |     |  |      |  
|Accrued benefit cost |  | $    | 270 |  |      | $ | 337 | 



|                                         |  |      |       |  |      |  |      | 
|---------------------------------------- |  | ---- | ----- |  | ---- |  | ---- | 
|                                         |  | 2004 |       |  | 2003 | 
|                                         |  |      |       |  |      | 
|Discount rate                            |  |      | 6.25% |  |      |  | 7.0% | 
|Expected long-term return on plan assets |  |      | 8.25% |  |      |  | 9.0% | 

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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)




|                                   |  |                         |      |   |      |   |     |      |  |   |      |  
|---------------------------------- |  | ----------------------- | ---- | - | ---- | - | --- | ---- |  | - | ---- | -
|                                   |  | Year Ended December 31, |     
|                                   |  |                         |     
|                                   |  | 2004                    |      |   | 2003 |   |     | 2002 | 
|                                   |  |                         |      |   |      |   |     |      | 
|Interest cost                      |  | $                       | 106  |   |      | $ | 111 |      |  | $ | 112  |  
|Expected return on plan assets     |  |                         | (110 | ) |      |   | (96 | )    |  |   | (121 | )
|Amortization of net actuarial loss |  |                         | 38   |   |      |   | 37  |      |  |   | 19   |  
|                                   |  |                         |      |   |      |   |     |      | 
|Net periodic benefit cost          |  | $                       | 34   |   |      | $ | 52  |      |  | $ | 10   |  
|                                   |  |                         |      |   |      |   |     |      | 







|    |                   
|--- | ------------------
|(8) | Stock Option Plans





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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)




|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                |  |         |         |   |   |      |      | 
|-------------------------------------------------------------- | --------- | ------- | ------- | -------- | -------------- | - | ---- | ------- | -------- |  | -------------- | ------- | - | -------- | ---- | ---- | -------------- |  | ------- | ------- | - | - | ---- | ---- | 
|                                                               |           | 2004    |         |          | 2003           |   |      | 2002    |         
|                                                               |           |         |         |          |                |   |      |         |         
|                                                               |           |         |         | Weighted |                |   |      |         | Weighted |  |                |         |   | Weighted |     
|                                                               |           |         |         | Average  |                |   |      |         | Average  |  |                |         |   | Average  |     
|                                                               |           | Options |         |          | Exercise Price |   |      | Options |          |  | Exercise Price |         |   | Options  |      |      | Exercise Price | 
|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                | 
|Outstanding at beginning of year                               |           |         | 319,500 |          |                | $ | 5.62 |         |          |  | 25,000         |         |   | $        | 6.55 |      |                |  | 253,500 |         |   | $ | 6.68 |     
|                                                               | Granted   |         |         | 106,000  |                |   |      | 9.32    |          |  |                | 114,500 |   |          |      | 3.65 |                |  |         |        |   |   |      |     | 
|                                                               | Exercised |         |         | (46,000  | )              |   |      | 5.04    |          |  |                | (20,000 | ) |          |      | 4.75 |                |  |         |        |   |   |      |     | 
|                                                               | Forfeited |         |         | (500     | )              |   |      | 7.00    |          |  |                |        |   |          |      |     |                |  |         | (28,500 | ) |   |      | 7.75 | 
|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                | 
|Outstanding at end of year                                     |           |         | 379,000 |          |                | $ | 7.21 |         |          |  | 319,500        |         |   | $        | 5.62 |      |                |  | 225,000 |         |   | $ | 6.55 |     
|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                | 
|Exercisable at end of year                                     |           |         | 255,857 |          |                | $ | 6.69 |         |          |  | 213,000        |         |   | $        | 6.59 |      |                |  | 225,000 |         |   |   | 6.55 |     
|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                | 
|Weighted average fair value of options granted during the year |           |         |         |          |                | $ | 3.15 |         |          |  |                |         |   | $        | 0.86 |      |                |  |         |         |   |   | N/A  |     
|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                | 
|Weighted average remaining contractual life in years           |           |         |         |          |                |   | 6.53 |         |          |  |                |         |   |          | 6.58 |      |                |  |         |         |   |   | 5.03 |     
|                                                               |           |         |         |          |                |   |      |         |          |  |                |         |   |          |      |      |                | 



|               |  |                            |       |  |                  |  |         | 
|-------------- |  | -------------------------- | ----- |  | ---------------- |  | ------- | 
|               |  | Weighted Average Remaining |       |  |                 
|Exercise Price |  | Contractual Life (Years)   |       |  | Number of Shares | 
|               |  |                            |       |  |                  | 
|$8.25          |  |                            | 0.88  |  |                  |  | 50,000  | 
|$7.00          |  |                            | 3.14  |  |                  |  | 37,500  | 
|$8.00          |  |                            | 4.88  |  |                  |  | 30,000  | 
|$6.75          |  |                            | 5.13  |  |                  |  | 5,000   | 
|$4.94          |  |                            | 6.50  |  |                  |  | 50,000  | 
|$3.85          |  |                            | 8.09  |  |                  |  | 64,500  | 
|$3.27          |  |                            | 8.34  |  |                  |  | 30,000  | 
|$3.26          |  |                            | 8.38  |  |                  |  | 6,000   | 
|$8.56          |  |                            | 9.08  |  |                  |  | 64,000  | 
|$8.00          |  |                            | 9.17  |  |                  |  | 4,000   | 
|$8.39          |  |                            | 9.35  |  |                  |  | 8,000   | 
|$11.35         |  |                            | 10.00 |  |                  |  | 30,000  | 
|               |  |                            |       |  |                  | 
|               |  |                            | 6.53  |  |                  |  | 379,000 | 
|               |  |                            |       |  |                  | 



|    |                              
|--- | -----------------------------
|(9) | Commitments and Contingencies





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UNITED STATES LIME & MINERALS, INC.


Notes to Consolidated
Financial Statements  (Continued)










|     |                                                
|---- | -----------------------------------------------
|(10) | Summary of Quarterly Financial Data (unaudited)

|                                |  |           |        |  |          |   |        |               |  |   |              |  |  |   |        | 
|------------------------------- |  | --------- | ------ |  | -------- | - | ------ | ------------- |  | - | ------------ |  |  | - | ------ | 
|                                |  | 2004      |       
|                                |  |           |       
|                                |  | March 31, |        |  | June 30, |   |        | September 30, |  |   | December 31, | 
|                                |  |           |        |  |          |   |        |               |  |   |              | 
|Revenues                        |  | $         | 12,075 |  |          | $ | 14,752 |               |  | $ | 15,770       |  |  | $ | 13,082 | 
|Gross profit                    |  |           | 3,415  |  |          |   | 4,605  |               |  |   | 5,159        |  |  |   | 3,841  | 
|Net income                      |  | $         | 830    |  |          | $ | 2,452  | (1)           |  | $ | 1,730        |  |  | $ | 1,317  | 
|                                |  |           |        |  |          |   |        |               |  |   |              | 
|Basic income per common share   |  | $         | 0.14   |  |          | $ | 0.42   |               |  | $ | 0.30         |  |  | $ | 0.23   | 
|                                |  |           |        |  |          |   |        |               |  |   |              | 
|Diluted Income per common share |  | $         | 0.14   |  |          | $ | 0.42   |               |  | $ | 0.29         |  |  | $ | 0.22   | 
|                                |  |           |        |  |          |   |        |               |  |   |              | 

|                                                 |  |           |       |   |          |   |        |               |  |   |              |  |  |   |        | 
|------------------------------------------------ |  | --------- | ----- | - | -------- | - | ------ | ------------- |  | - | ------------ |  |  | - | ------ | 
|                                                 |  | 2003      |      
|                                                 |  |           |      
|                                                 |  | March 31, |       |   | June 30, |   |        | September 30, |  |   | December 31, | 
|                                                 |  |           |       |   |          |   |        |               |  |   |              | 
|Revenues                                         |  | $         | 9,556 |   |          | $ | 11,529 |               |  | $ | 12,849       |  |  | $ | 11,322 | 
|Gross profit                                     |  |           | 1,749 |   |          |   | 3,459  |               |  |   | 4,387        |  |  |   | 3,467  | 
|Net (loss) income                                |  | $         | (271  | ) |          | $ | 1,813  | (2)           |  | $ | 1,642        |  |  | $ | 676    | 
|                                                 |  |           |       |   |          |   |        |               |  |   |              | 
|Basic and diluted (loss) income per common share |  | $         | (0.05 | ) |          | $ | 0.31   |               |  | $ | 0.28         |  |  | $ | 0.12   | 
|                                                 |  |           |       |   |          |   |        |               |  |   |              | 






|    |                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------
|(1) | Includes an oil gas lease bonus payment of $1,192 ($954, or
    $0.16 per diluted share, net of income taxes).            
|   
|(2) | Includes $708 of embezzlement-related recoveries net of costs
    ($602, or $0.10 per diluted share, net of income taxes).

40



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE.








|         |                        
|-------- | -----------------------
|ITEM 9A. | CONTROLS AND PROCEDURES










|         |                  
|-------- | -----------------
|ITEM 9B. | OTHER INFORMATION






PART III







|         |                                                    
|-------- | ---------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    COMPANY








|         |                       
|-------- | ----------------------
|ITEM 11. | EXECUTIVE COMPENSATION








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED STOCKHOLDER MATTERS








|         |                                                   
|-------- | --------------------------------------------------
|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED
    TRANSACTIONS








|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES



41



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##### Table of Contents






PART IV







|         |                                           
|-------- | ------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES









| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Consolidated Balance Sheets as of December, 31, 2004 and
    2003;                                        
|
| | Consolidated Statements of Operations for the Years Ended
    December 31, 2004, 2003 and 2002;           
|
| | Consolidated Statements of Stockholders Equity for the
    Years Ended December, 31, 2004, 2003 and 2002;
|
| | Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2004, 2003 and 2002; and       
|
| | Notes to Consolidated Financial Statements.                                                               





| |    |    |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                   
| | -- | -- |  |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3  | .1 |  |  |  | Articles of Amendment to the Articles of Incorporation of
    Scottish Heritable, Inc. dated as of January 25, 1994
    (incorporated by reference to Exhibit 3(a) to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended December 31, 1993, File Number 0-4197).                                                                                                          
| | 3  | .2 |  |  |  | Restated Articles of Incorporation of the Company dated as of
    May 14, 1990 (incorporated by reference to
    Exhibit 3(b) to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 31, 1993,
    File Number 0-4197).                                                                                                                                               
| | 3  | .3 |  |  |  | Composite Copy of Bylaws of the Company dated as of
    December 31, 1991 (incorporated by reference to
    Exhibit 3(b) to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 31, 1991,
    File Number 0-4197).                                                                                                                                                    
| | 10 | .1 |  |  |  | United States Lime & Minerals, Inc. 1992 Stock Option
    Plan, as Amended and Restated (incorporated by reference to
    Exhibit 10(c) to the Companys Quarterly Report on
    Form 10-Q for the quarter ended June 30, 1999, File
    Number 0-4197).                                                                                                                                          
| | 10 | .2 |  |  |  | United States Lime & Minerals, Inc. 2001 Long-Term
    Incentive Plan (incorporated by reference to Exhibit B to
    the Companys definitive Proxy Statement for its Annual
    Meeting of Shareholders held on April 27, 2001, File
    Number 0-4197).                                                                                                                                         
| | 10 | .3 |  |  |  | Loan and Security Agreement dated December 30, 1997 among
    United States Lime & Minerals, Inc., Arkansas Lime
    Company and Texas Lime Company and CoreStates Bank, N.A.
    (incorporated by reference to Exhibit 10(l) to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended December 31, 1997, File Number 0-4197).                                               
| | 10 | .4 |  |  |  | First Amendment to Amended and Restated Loan and Security
    Agreement dated August 31, 1998 among United States
    Lime & Minerals, Inc., Arkansas Lime Company and Texas
    Lime Company and First Union National Bank (incorporated by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarter ended
    September, 30, 1998, File Number 0-4197).
| | 10 | .5 |  |  |  | Employment Agreement dated as of October 11, 1989 between
    the Company and Billy R. Hughes (incorporated by reference to
    Exhibit 10(a) to the Companys Quarterly Report on
    Form 10-Q for the quarter ended March 31, 1999, File
    Number 0-4197).                                                                                                                                   
| | 10 | .6 |  |  |  | Employment Agreement dated as of April 17, 1997 between the
    Company and Johnney G. Bowers (incorporated by reference to
    Exhibit 10(o) to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 31, 1997,
    File Number 0-4197).                                                                                                                               

42



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##### Table of Contents



| |    |      |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | ---- |  |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .7   |  |  |  | Employment Agreement dated as December 8, 2000 between the
    Company and Timothy W. Byrne (incorporated by reference to
    Exhibit 10(s) to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 31, 2000,
    File Number 0-4197).                                                                                                                                                        
| | 10 | .7.1 |  |  |  | Amended and Restated Employment Agreement dated as of
    May 2, 2003 between the Company and Timothy W. Byrne
    (incorporated by reference to Exhibit 10.8.1 to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended December 31, 2003, File Number 0-4197).                                                                                                                                    
| | 10 | .8   |  |  |  | Credit Agreement dated April 22, 1999 among United States
    Lime & Minerals, Inc., Arkansas Lime Company, Texas
    Lime Company, the Lenders who are, or may become, a party to the
    Agreement, and First Union National Bank (incorporated by
    reference to Exhibit 10(a) to the Companys Quarterly
    Report on Form 10-Q for the quarter ended June 30,
    1999, File Number 0-4197).                     
| | 10 | .9   |  |  |  | Second Amendment to Amended and Restated Loan and Security
    Agreement dated as of April 22, 1999 among United States
    Lime & Minerals, Inc., Arkansas Lime Company, Texas
    Lime Company, and First Union National Bank (incorporated by
    reference to Exhibit 10(b) to the Companys Quarterly
    Report on Form 10-Q for the quarter ended June 30,
    1999, File Number 0-4197).                         
| | 10 | .10  |  |  |  | Letter Agreement dated as of May 31, 2000 among United
    States Lime & Minerals, Inc., Arkansas Lime Company,
    Texas Lime Company and First Union National Bank (incorporated
    by reference to Exhibit 10 to the Companys Quarterly
    Report on Form 10-Q for the quarter ended June 30,
    2000, File Number 0-4197).                                                                                       
| | 10 | .11  |  |  |  | Third Amendment to Amended and Restated Loan and Security
    Agreement dated as of April 26, 2001 among United States
    Lime & Minerals, Inc., Arkansas Lime Company, Texas
    Lime Company, and First Union National Bank (incorporated by
    reference to Exhibit 10 to the Companys Quarterly
    Report on Form 10-Q for the quarter ended March 31,
    2001, File Number 0-4197).                            
| | 10 | .12  |  |  |  | Fourth Amendment to Amended and Restated Loan and Security
    Agreement dated as of December 31, 2001 among United States
    Lime & Minerals, Inc., Arkansas Lime Company, Texas
    Lime Company, and First Union National Bank (incorporated by
    reference to Exhibit 10(u) to the Companys Annual
    Report on Form 10-K for the fiscal year ended
    December 31, 2001, File Number 0-4197).                 
| | 10 | .13  |  |  |  | First Amendment to Credit Agreement dated as of
    December 27, 2000 among United States Lime &
    Minerals, Inc., Arkansas Lime Company, Texas Lime Company, the
    Lenders who are, or may become, a party to the Agreement, and
    First Union National Bank (incorporated by reference to the
    Companys Current Report on Form 8-K dated
    January 18, 2001, File Number 0-4197).                          
| | 10 | .14  |  |  |  | Second Amended and Restated Note dated April 26, 2001 among
    United States Lime & Minerals, Inc., Arkansas Lime
    Company, Texas Lime Company, the Lenders who are, or may become,
    a party to the Agreement, and First Union National Bank
    (incorporated by reference to Exhibit 10(x) to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended December 31, 2002, File Number 0-4197).
| | 10 | .15  |  |  |  | Fifth Amendment to Amended and Restated Loan and Security
    Agreement dated as of May 31, 2002 among United States
    Lime & Minerals, Inc., Arkansas Lime Company, Texas
    Lime Company and Wachovia Bank, f/k/a First Union National Bank
    (incorporated by reference to Exhibit 10 to the
    Companys Quarterly Report on Form 10-Q for the
    quarter ended June 30, 2002, File Number 0-4197).           
| | 10 | .16  |  |  |  | Sixth Amendment to Amended and Restated Loan and Security
    Agreement dated as of January 31, 2003 among United States
    Lime & Minerals, Inc., Arkansas Lime Company, Texas
    Lime Company and Wachovia Bank. (incorporated by reference to
    Exhibit 10(s) to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 31, 2002,
    File Number 0-4197).                               
| | 10 | .17  |  |  |  | Loan and Security Agreement dated March 3, 2003 among
    United States Lime & Minerals, Inc., Texas Lime
    Company, Arkansas Lime Company and National City Bank
    (incorporated by reference to Exhibit 10(t) to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended December 31, 2002, File Number 0-4197).                                                                                

43



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##### Table of Contents



| |    |     |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -- | --- |  |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .18 |  |  |  | Note and Warrant Purchase Agreement dated as of August 5,
    2003 by and among United States Lime & Minerals, Inc.
    and Credit Trust S.A.L., ABB Finance Limited and R.S. Beall
    Capital Partners, LP (incorporated by reference to
    Exhibit 10.1 to the Companys Quarterly Report on
    Form 10-Q for the quarter ended June 30, 2003, File
    Number 0-4197).                                           
| | 10 | .19 |  |  |  | Form of 14% Subordinated PIK Note due 2008 (incorporated by
    reference to Exhibit 10.2 to the Companys Quarterly
    Report on Form 10-Q for the quarter ended June 30,
    2003, File Number 0-4197).                                                                                                                                                                                                             
| | 10 | .20 |  |  |  | Form of Common Stock Purchase Warrant (incorporated by reference
    to Exhibit 10.3 to the Companys Quarterly Report on
    Form 10-Q for the quarter ended June 30, 2003, File
    Number 0-4197).                                                                                                                                                                                                                  
| | 10 | .21 |  |  |  | Registration Rights Agreement dated as of August 5, 2003 by
    and among United States Lime & Minerals, Inc. and
    Credit Trust S.A.L., ABB Finance Limited and R.S. Beall
    Capital Partners, LP (incorporated by reference to
    Exhibit 10.4 to the Companys Quarterly Report on
    Form 10-Q for the quarter ended June 30, 2003, File
    Number 0-4197).                                                 
| | 10 | .22 |  |  |  | Third Amendment to Credit Agreement dated as of August 5,
    2003 among United States Lime & Minerals, Inc.,
    Arkansas Lime Company, Texas Lime Company, the Lenders who are,
    or may become, a party to the Agreement, and National City Bank
    (incorporated by reference to Exhibit 10.5 to the
    Companys Quarterly Report on Form 10-Q for the
    quarter ended June 30, 2003, File Number 0-4197).  
| | 10 | .23 |  |  |  | First Amendment to Loan and Security Agreement dated
    August 5, 2003 among United States Lime &
    Minerals, Inc., Texas Lime Company, Arkansas Lime Company and
    National City Bank (incorporated by reference to
    Exhibit 10.6 to the Companys Quarterly Report on
    Form 10-Q for the quarter ended June 30, 2003, File
    Number 0-4197).                                                            
| | 10 | .24 |  |  |  | Second Amendment to Loan and Security Agreement dated as of
    December 29, 2003 among United States Lime &
    Minerals, Inc., Texas Lime Company, Arkansas Lime Company and
    National City Bank (incorporated by reference to
    Exhibit 10.26 to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 31, 2002,
    File Number 0-4197).                                            
| | 10 | .25 |  |  |  | Oil and Gas Lease Agreement dated as of May 28, 2004
    between Texas Lime Company and EOG Resources, Inc. (incorporated
    by reference to Exhibit 10.1 to the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    June 30, 2004, File Number 0-4197).                                                                                                                                            
| | 10 | .26 |  |  |  | Credit Agreement dated as of August 25, 2004 among United
    States Lime & Minerals, Inc., each Lender from time to
    time a party thereto, and Wells Fargo Bank, N.A., as
    Administrative Agent, Swing Line Lender and L/ C Issuer
    (incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K dated
    August 31, 2004, File Number 0-4197).                               
| | 10 | .27 |  |  |  | Security Agreement dated as of August 25, 2004 among United
    States Lime & Minerals, Inc., Arkansas Lime Company,
    Colorado Lime Company, Texas Lime Company and U.S. Lime
    Company  Houston, in favor of Wells Fargo Bank, N.
    A., as Administrative Agent (incorporated by reference to
    Exhibit 10.2 to the Companys Current Report on
    Form 8-K dated August 31, 2004, File
    Number 0-4197).
| | 21 |     |  |  |  | Subsidiaries of the Company.                                                                                                                                                                                                                                                                                                                                                                                           
| | 23 |     |  |  |  | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                              
| | 31 | .1  |  |  |  | Rule 13a-14(a)/15d-14(a)Certification by Chief Executive
    Officer.                                                                                                                                                                                                                                                                                                                                                  
| | 31 | .2  |  |  |  | Rule 13a-14(a)/15d-14(a)Certification by Chief Financial
    Officer.                                                                                                                                                                                                                                                                                                                                                  
| | 32 | .1  |  |  |  | Section 1350 Certification by Chief Executive Officer.                                                                                                                                                                                                                                                                                                                                                                 
| | 32 | .2  |  |  |  | Section 1350 Certification by Chief Financial Officer.                                                                                                                                                                                                                                                                                                                                                                 






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##### Table of Contents






SIGNATURES






| |                                    
| | -----------------------------------
| | UNITED STATES LIME & MINERALS, INC.



| |     |                     
| | --- | --------------------
| | By: | /s/ Timothy W. Byrne

| |                                      
| | -------------------------------------
| |                                      
| | Timothy W. Byrne                     
| | President and Chief Executive Officer





|                                               |  |                                                                                             |  |                |  | 
|---------------------------------------------- |  | ------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                      |  | Title                                                                                       |  | Date          
|                                               |  |                                                                                             |  |               
|                                              
|/s/ Timothy W. ByrneTimothy
    W. Byrne       |  | President, Chief Executive Officer, and Director (Principal
    Executive Officer)          |  | March 23, 2005
|                                              
|/s/ M. Michael OwensM.
    Michael Owens       |  | Vice President and Chief Financial Officer (Principal Financial
    and Accounting Officer) |  | March 23, 2005
|                                              
|/s/ Edward A. OdishawEdward
    A. Odishaw     |  | Director and Chairman of the Board                                                          |  | March 23, 2005
|                                              
|/s/ Antoine M. DoumetAntoine
    M. Doumet     |  | Director and Vice Chairman of the Board                                                     |  | March 23, 2005
|                                              
|/s/ Wallace G. IrmscherWallace
    G. Irmscher |  | Director                                                                                    |  | March 23, 2005
|                                              
|/s/ Richard W. CardinRichard
    W. Cardin     |  | Director                                                                                    |  | March 23, 2005

45