Smart Sand, Inc. (SND) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 30, 2017

Smart Sand, Inc. Announces Third Quarter 2017 Results

THE WOODLANDS, Texas, November 9, 2017 – Smart Sand, Inc. (NASDAQ: SND) (the “Company”), a pure-play, low-cost producer of high quality Northern White raw frac sand, announced results today for the third quarter ended September 30, 2017.

“I am pleased to announce that Smart Sand had its best quarter since its founding six years ago,” stated Charles Young, Chief Executive Officer.  “This would not have been possible without the hard work and dedication of our employees.  Their focus on maximizing production and effectively managing railcar movements, while operating in a safe and efficient manner, resulted in record sales volumes.  Market demand for our high quality, Northern White frac sand remains strong and we look forward to bringing our additional 2.2 million tons of annual production capacity online by the end of the first quarter of 2018.”

Third Quarter 2017 Highlights

Revenues were approximately $39.3 million in the third quarter of 2017, compared with $10.9 million in the third quarter of 2016, a 260% increase year-over-year.  The increase in revenues was primarily due to increased sales volumes, increased freight revenues, resulting primarily from an increase in shipments to customers to whom we bill freight charges, and an annual contractual shortfall payment from one customer of approximately $1.2 million.  Revenues for the quarter increased by 32% compared to second quarter 2017 revenue of $29.8 million, primarily due to a higher average selling price as a result of increased in-basin spot sales, an increase in freight revenues, and a shortfall payment from one customer.

Tons sold totaled approximately 653,400 in the third quarter of 2017, compared with approximately 229,600 tons sold in the third quarter of 2016, a 184% increase year-over-year.  Tons sold during the quarter increased by 23% compared to second quarter 2017 tons sold of 531,000.  

The Company generated net income of $7.0 million, or $0.17 per basic and diluted share, for the third quarter of 2017, compared with a net loss of $0.1 million, or $0 per basic and diluted share, for the third quarter of 2016 and net income of $2.6 million, or $0.07 per basic share and $0.06 per diluted share, for the second quarter of 2017.

Adjusted EBITDA for the third quarter of 2017 was $11.6 million, compared to $4.5 million during the third quarter of 2016 and $6.5 million for the second quarter of 2017, increases of 156% and 80%, respectively.  The increase year-over-year was primarily due to an increase in sales volume.  The increase in Adjusted EBITDA sequentially was primarily due to an increase in sales volume and average selling price per ton, a reduction in production cost per ton, and a shortfall payment from one customer.

Capital Expenditures

Smart Sand’s capital expenditures totaled $19.9 million for the quarter ended September 30, 2017 and were associated largely with the Company’s expansion at its Oakdale sand processing facility and investment in various enhancement and cost improvement projects.

Conference Call

Smart Sand will host a conference call and live webcast for analysts and investors this morning, November 9 at 10:00 a.m. Eastern Time to discuss the Company’s third quarter 2017 financial results. Investors are invited to listen to a live audio webcast of the conference call which will be accessible on the “Investors” section of the Company’s website at www.smartsand.com. To access the live webcast, please log in 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the call will also be available on the website following the