Smart Sand, Inc. Announces First Quarter 2018 Results
1Q 2018 revenue of $42.6 million
1Q 2018 total tons sold of 723,000, the highest in Company history and an increase of 2% sequentially
1Q 2018 net income of $1.0 million
1Q 2018 Adjusted EBITDA of $5.9 million
Acquisition of Quickthree Solutions expected to close by the end of May 2018
THE WOODLANDS, Texas, May 10, 2018 – Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a pure-play, low-cost producer of high quality Northern White raw frac sand, today announced results for the first quarter ended March 31, 2018.
“The demand for frac sand, and in particular Northern White, continues to be strong. We sold record quarterly volumes from our Oakdale facility in the first quarter and we anticipate strong demand for our expanded nameplate capacity, which is currently ramping up and is expected to be fully operational in the second quarter,” stated Charles Young, Chief Executive Officer. “We continue to take steps towards becoming a fully integrated ‘mine to the wellhead’ supplier of frac sand. During the first quarter we partnered with Canadian Pacific to offer our customers competitive, efficient rail services, acquired rights to operate a unit train capable transloading terminal in the Bakken, and signed a new long-term take-or-pay contract with a large exploration and production company for delivery of frac sand at our terminal in the Bakken. Additionally, we entered into a definitive agreement to acquire Quickthree Solutions, Inc., a manufacturer of portable vertical frac sand storage solutions at the wellsite. This deal is expected to close by the end of May.”
First Quarter 2018 Highlights
Revenues were $42.6 million in the first quarter of 2018, a slight decrease compared to fourth quarter 2017 revenues of $43.0 million. The decrease in revenues was primarily due to higher production costs and lower freight revenue, offset by higher sales volumes and a higher average price per ton sold. First quarter 2018 revenues increased by 70% compared to first quarter 2017 revenues of $25.1 million. The increase in revenues year over year was primarily due to higher sales volumes and higher freight revenue, resulting from increased shipments to customers to whom we bill freight charges.
Overall tons sold were approximately 723,000 in the first quarter of 2018, the highest in Company history, compared to approximately 706,400 tons sold in the fourth quarter of 2017 and 559,000 tons in the first quarter of 2017, increases of 2% and 29%, respectively.
Net income was $1.0 million, or $0.02 per basic and diluted share, for the first quarter of 2018, compared with net income of $10.9 million, or $0.27 per basic and diluted share, for the fourth quarter of 2017 and net income of $1.0 million, or $0.02 per basic and diluted share, for the first quarter of 2017. The decrease in net income compared to the fourth quarter of 2017 was primarily due to a one-time tax benefit of $8.5 million, or $0.21 per basic and diluted share, that was booked in the fourth quarter 2017 due to the changes in the U.S. tax laws that were enacted in December 2017. The increase in net income compared to the first quarter of 2017 was primarily due to higher sales volumes and higher freight revenue in the first quarter of 2018, partially offset by higher production costs.
The following information was filed by Smart Sand, Inc. (SND) on Thursday, May 10, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.