Latest news with #NorthernWhite
Yahoo
13-05-2025
- Business
- Yahoo
Smart Sand, Inc. Announces First Quarter 2025 Results
1Q 2025 total tons sold of approximately 1.1 million 1Q 2025 revenue of $65.6 million 1Q 2025 cash flow from operations of $8.7 million YARDLEY, Pa., May 13, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a fully integrated frac and industrial sand supply and services company, a low-cost producer of high quality Northern White sand, a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystemsTM products and services, and a provider of industrial product solutions, today announced results for the first quarter of 2025. "During the first quarter of 2025, Smart Sand continued to demonstrate its commitment to delivering positive free cash flow through the operating cycles of our business and returning value to our shareholders," stated Charles Young, Smart Sand's Chief Executive Officer. "In the quarter, the Company generated $5.2 million in free cash flow and repurchased 135 thousand shares. This follows a $0.10/share dividend we paid to shareholders in the fourth quarter of 2024." "As expected, sales volumes moderated in the first quarter, following a record breaking fourth quarter in 2024, driven by our customers' strong year-end push. With a robust start to the second quarter, we anticipate sales volumes to rise significantly, increasing between 10% and 20% compared to first quarter results. We expect activity to strengthen in the Marcellus and Utica basins, driven by the timing of customer well completions, and in the Bakken and Western Canadian Sedimentary Basin, boosted by seasonal spring and summer demand in those markets. While we remain proactive in monitoring tariffs, political developments and their potential impact on oil and gas activity, the current economic uncertainty has led us to defer full year guidance at this time. We look forward to providing an update, including possible full year guidance, in a future earnings release." "Industrial sales marked a record-breaking quarter, with sales volumes increasing 9% sequentially, even as frac sand volumes experienced a temporary dip during the same period" continued Mr. Young. "Although industrial sales currently represent a smaller portion of our business, we expect this growing business line to account for about 5% of our total sales volumes this year. Additionally, our SmartSystems business demonstrated notable progress, with increased fleet utilization and positive contribution margin in the first quarter." "As part of our budgeted project timeline, we anticipate an increase in capital expenditures over the next two quarters, driven by a combination of essential maintenance to ensure continued operational excellence together with targeted investments to support future growth. While these investments may temporarily impact free cash flow, we remain on track to deliver positive free cash flow for the year and are actively exploring opportunities to enhance shareholder value through additional stock buybacks and/or special dividends." First Quarter 2025 Highlights In the first quarter of 2025, tons sold totaled approximately 1,069,000, compared to 1,464,000 tons in the fourth quarter of 2024 and 1,336,000 tons in the first quarter of 2024, reflecting a 27% sequential decrease and a 20% year-over-year decline. This shift in sales volumes was driven by the exceptionally strong demand in the fourth quarter of 2024, which also deferred the typical winter slowdown from the fourth quarter into the first quarter of 2025. Revenues in the first quarter of 2025 were $65.6 million, compared to $91.4 million in the fourth quarter of 2024 and $83.1 million in the first quarter of 2024. This decline was primarily driven by lower sales volumes and a moderation in average selling prices, reflecting a more balanced supply and demand for Northern White sand over the past twelve months. Cost of goods sold declined to $62.8 million for the first quarter of 2025, down from $77.9 million for the fourth quarter 2024 and $71.2 million for the first quarter of 2024, primarily reflecting lower sales volumes and reduced logistics costs caused by fewer rail shipments in the quarter. Gross profit for the first quarter 2025 was $2.8 million compared to $13.5 million in the fourth quarter of 2024 and $11.8 million in the first quarter of 2024. Gross profit declined sequentially and year over year due to the lower sales volumes and moderating average sales prices, partially mitigated by the reduced cost of goods sold. Operating expenses in the first quarter of 2025 were $9.8 million, consistent with fourth quarter of 2024 and down from $11.0 million in the first quarter of 2024, primarily due to reduced wages and royalties. Total other expenses for first quarter of 2025 were $0.2 million, down from $0.4 million in both the fourth quarter of 2024 and the first quarter of 2024, primarily reflecting lower interest expenses due to reduced borrowings under our FCB ABL Credit Facility. In the first quarter of 2025, the Company recorded a net loss of $(24.2) million, or $(0.62) per basic and diluted share. The Company had net income of $3.7 million, or $0.10 per basic and diluted share, for the fourth quarter of 2024 and a net loss of $(0.2) million, or $(0.01) per basic and diluted share, for the first quarter of 2024. The net loss for the current quarter was primarily driven by non-cash deferred income tax expense. Income tax expense / benefit often distorts our results of operations due primarily to deferred tax variances. We are required to record our interim period income tax expense (benefit) in accordance with GAAP, which requires that we estimate our full year effective tax rate and apply that rate to the net income for the period. Our effective tax rate includes modifications from the statutory rate for items such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items. The biggest driver of our income tax benefit (expense) is our depletion deduction calculation, which is not directly related to the net income of our Company. This tax deduction has an equally large effect on our income tax rate, which is the basis for the quarterly income tax expense (benefit) calculation. We do not expect to be a payer of federal income tax in 2025 and we expect to pay an immaterial amount of state income taxes in 2025. Because of the difference between income tax recorded on a GAAP basis and the cash taxes we expect to pay, we use additional non-GAAP performance measures of contribution margin, adjusted EBITDA, and free cash flow to evaluate our results of operations. Contribution margin in the first quarter of 2025 was $9.6 million, or $8.96 per ton sold, compared to $20.2 million, or $13.80 per ton sold, in the fourth quarter of 2024 and $18.5 million, or $13.85 per ton sold, in the first quarter of 2024. Adjusted EBITDA was $1.4 million in the first quarter of 2025 down from $11.9 million in the fourth quarter of 2024 and $9.3 million in the first quarter of 2024. The sequential and year-over-year declines in contribution margin, and adjusted EBITDA were primarily driven by lower sales volumes and moderated average selling prices, which reduced revenues, though partially offset by a decrease in cost of goods sold. Net cash provided by operating activities in the first quarter of 2025 was $8.7 million, a significant improvement from $1.0 million in the fourth quarter of 2024 and net cash used by operating activities of $3.9 million in the first quarter of 2024. The increase reflects the conversion of strong fourth-quarter 2024 sales into cash during the first quarter of 2025. In the first quarter of 2025, free cash flow was $5.2 million, net cash provided by operating activities was $8.7 million, and capital expenditures were $3.5 million. Management's ongoing focus on aligning expenditures with current and expected market activity contributed to the improvement in cash flows. We currently project full year 2025 capital expenditures to range between $13.0 million and $17.0 million, and we anticipate remaining free cash flow positive for 2025. Liquidity In the first quarter of 2025, the Company repurchased 135,196 shares of its common stock for $0.3 million under its current share repurchase program. On October 3, 2024, the Smart Sand Board of Directors approved an eighteen month share repurchase program under which the Company may purchase up to $10.0 million of its ordinary shares (the "Repurchase Program"). Pursuant to the Repurchase Program, the Company may repurchase its ordinary shares from time to time, in amounts, at prices and at such times as management deems appropriate, subject to market conditions and other considerations. Management may make repurchases in the open market, privately negotiated transactions, accelerated repurchase programs or structured share repurchase programs. The Repurchase Program will be conducted in compliance with applicable legal requirements and shall be subject to market conditions and other factors. The Repurchase Program does not obligate management to acquire any particular amount of ordinary shares and the Repurchase Program may be modified or suspended at any time. The remaining amount that may be repurchased as of March 31, 2025 is $9.7 million of ordinary shares. The Company's primary sources of liquidity include cash on hand, cash flow from operations, and available borrowings under the Company's FCB ABL Credit Facility. As of March 31, 2025, cash on hand was $5.1 million and the Company had $30.0 million in undrawn availability on the FCB ABL Credit Facility. Additional Information Investors are invited to view the Company's Financial Statements and Investor Presentations at The Company also welcomes calls or emails to the Company's CFO, Lee Beckelman, with any specific questions. Forward-looking Statements All statements in this news release other than statements of historical facts are forward-looking statements that contain our Company's current expectations about our future results, including the Company's expectations regarding future sales. We have attempted to identify any forward-looking statements by using words such as "expect," "will," "estimate," "believe" and other similar expressions. Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, delays in the completion of certain expansion and improvement projects at our existing facilities or failure to recognize the anticipated benefits of such projects, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, changes in economic or political conditions, and such other factors discussed or referenced in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on March 11, 2024, and in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed by the Company with the SEC on May 13, 2025. You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law. About Smart Sand Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistic solutions to our frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company's sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company also offers logistics solutions to our customers through its in-basin transloading terminals and our SmartSystems wellsite storage capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit SMART SAND, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months EndedMarch 31, 2025December 31, 2024March 31, 2024(unaudited)(unaudited)(unaudited) Revenues:Sand revenue $ 64,464$ 90,619$ 79,719 SmartSystems revenue 1,0947443,333 Total revenue 65,55891,36383,052 Cost of goods sold:Sand cost of goods sold 61,67375,34268,967 SmartSystems cost of goods sold 1,1132,5692,274 Total cost of goods sold 62,78677,91171,241 Gross profit 2,77213,45211,811 Operating expenses:Selling, general and administrative 9,2439,23710,350 Depreciation and amortization 619618674 (Gain) loss on disposal of fixed asset, net (40)(7)3 Total operating expenses 9,8229,84811,027 Operating income (7,050)3,604784 Other income (expenses):Interest expense, net (342)(543)(489) Other income 12913496 Total other expenses, net (213)(409)(393) (Loss) income before income tax expense (benefit) (7,263)3,195391 Income tax expense (benefit) 16,968(541)607 Net (loss) income $ (24,231)$ 3,736$ (216) Net (loss) income per common share:Basic $ (0.62)$ 0.10$ (0.01) Diluted $ (0.62)$ 0.09$ (0.01) Weighted-average number of common shares:Basic 39,25739,02738,555 Diluted 39,25739,48238,555 SMART SAND, INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2025December 31, 2024(unaudited) (in thousands) AssetsCurrent assets:Cash and cash equivalents $ 5,108$ 1,554 Accounts receivable 27,96640,981 Unbilled receivables 2,9035,311 Inventory 28,30925,044 Prepaid expenses and other current assets 2,9452,635 Total current assets 67,23175,525 Property, plant and equipment, net 233,345236,692 Operating lease right-of-use assets 20,40223,153 Intangible assets, net 4,8865,084 Other assets 1,0441,092 Total assets $ 326,908$ 341,546 Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 12,441$ 16,988 Accrued expenses and other liabilities 13,61812,561 Deferred revenue 47654 Current portion of long-term debt 3,5193,554 Current portion of operating lease liabilities 8,34510,053 Total current liabilities 38,39943,210 Long-term debt 8,4889,130 Long-term operating lease liabilities 12,24814,486 Deferred tax liabilities, net 25,9799,316 Asset retirement obligations 21,58521,292 Other non-current liabilities 300302 Total liabilities 106,99997,736 Commitments and contingenciesStockholders' equityCommon stock 4039 Treasury stock (15,312)(14,671) Additional paid-in capital 186,229185,263 Retained earnings 49,00873,239 Accumulated other comprehensive loss (56)(60) Total stockholders' equity 219,909243,810 Total liabilities and stockholders' equity $ 326,908$ 341,546 SMART SAND, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months EndedMarch 31, 2025December 31, 2024March 31, 2024(unaudited)(unaudited)(unaudited)(in thousands) Operating activities:Net (loss) income $ (24,231)$ 3,736$ (216) Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, depletion and accretion of asset retirement obligations 7,2997,8467,241 Amortization of intangible assets 198196199 Loss (gain) on disposal of fixed assets (40)(7)3 Amortization of deferred financing cost 465626 Accretion of debt discount ——47 Deferred income taxes 16,662(567)596 Stock-based compensation 934868642 Employee stock purchase plan compensation 656 Changes in assets and liabilities:Accounts receivable 13,015(16,817)(9,344) Unbilled receivables 2,408(2,569)(2,640) Inventory (3,265)2,7941,240 Prepaid expenses and other assets (1,712)251(240) Deferred revenue 423(1,297)1,220 Accounts payable (4,061)6,272(6,730) Accrued and other expenses 1,0422684,087 Net cash provided by (used in) operating activities 8,7241,035(3,863) Investing activities:Purchases of property, plant and equipment (3,536)(1,875)(1,646) Proceeds from disposal of assets 181 Net cash used in investing activities (3,535)(1,867)(1,645) Financing activities:Dividend payments to shareholders (7)(3,902)— Repayments of notes payable (955)(723)(1,340) Payments under finance leases (58)(54)(56) Payment of deferred financing and debt issuance costs —(103)(425) Proceeds from revolving credit facility 11,00014,0006,000 Repayment of revolving credit facility (11,000)(14,000)— Proceeds from equity issuance 26—25 Purchase of treasury stock (305)(47)(170) Net cash (used in) provided by financing activities (1,299)(4,829)4,034 Net increase (decrease) in cash and cash equivalents 3,890(5,661)(1,474) Cash and cash equivalents at beginning of period 1,5547,2156,072 Cash and cash equivalents at end of period $ 5,444$ 1,554$ 4,598 Non-GAAP Financial Measures Contribution Margin We also use contribution margin, which we define as total revenues less costs of goods sold excluding depreciation, depletion and accretion of asset retirement obligations, to measure its financial and operating performance. Contribution margin excludes other operating expenses and income, including costs not directly associated with the operations of the Company's business such as accounting, human resources, information technology, legal, sales and other administrative activities. We believe that reporting contribution margin and contribution margin per ton sold provides useful performance metrics to management and external users of our financial statements, such as investors and commercial banks, because these metrics provide an operating and financial measure of our ability, as a combined business, to generate margin in excess of our operating cost base. Gross profit is the GAAP measure most directly comparable to contribution margin. Contribution margin should not be considered an alternative to gross profit presented in accordance with GAAP. Because contribution margin may be defined differently by other companies in the industry, our definition of contribution margin may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of gross profit to contribution Months EndedMarch 31, 2025December 31, 2024March 31, 2024(in thousands, except per ton amounts) Revenue $ 65,558$ 91,363$ 83,052 Cost of goods sold 62,78677,91171,241 Gross profit 2,77213,45211,811 Depreciation, depletion, and accretion of asset retirement obligations included in cost of goods sold 6,8056,7506,697 Contribution margin $ 9,577$ 20,202$ 18,508 Contribution margin per ton $ 8.96$ 13.80$ 13.85 Total tons sold 1,0691,4641,336 EBITDA and Adjusted EBITDA We define EBITDA as net income, plus: (i) depreciation, depletion and amortization expense; (ii) income tax expense (benefit) and other results of operations based taxes; and (iii) interest expense. We define Adjusted EBITDA as EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued operations; (ii) integration and transition costs associated with specified transactions; (iii) equity compensation; (iv) acquisition and development costs; (v) non-recurring cash charges related to restructuring, retention and other similar actions; (vi) earn-out, contingent consideration obligations; and (vii) non-cash charges and unusual or non-recurring charges. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors and commercial banks, to assess: the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; our ability to incur and service debt and fund capital expenditures; our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods or capital structure; and our debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the ABL Credit Facility. We believe that our presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing our financial condition and results of operations. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternatives to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. The following table presents a reconciliation of net (loss) income to EBITDA and Adjusted EBITDA for each of the periods Months EndedMarch 31, 2025December 31, 2024March 31, 2024(in thousands) Net (loss) income $ (24,231)$ 3,736$ (216) Depreciation, depletion and amortization 7,2067,1617,200 Income tax expense (benefit) and other taxes 16,968(541)607 Interest expense 372552496 EBITDA $ 315$ 10,908$ 8,087 Net loss (gain) on disposal of fixed assets (40)(7)3 Equity compensation 859783581 Acquisition and development costs —9308 Cash charges related to restructuring and retention —1107 Accretion of asset retirement obligations 292249249 Adjusted EBITDA $ 1,426$ 11,943$ 9,335 Free Cash Flow Free cash flow, which we define as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors and commercial banks, to measure the liquidity of our business. Net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Free cash flow should not be considered an alternative to net cash provided by operating activities presented in accordance with GAAP. Because free cash flows may be defined differently by other companies in our industry, our definition of free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of net cash provided by operating activities to free cash Months EndedMarch 31, 2025December 31, 2024March 31, 2024(in thousands) Net cash provided by (used in) operating activities $ 8,724$ 1,035$ (3,863) Purchases of property, plant and equipment (3,536)(1,875)(1,646) Free cash flow $ 5,188$ (840)$ (5,509) Investor Contacts: Lee BeckelmanChief Financial Officer(281) 231-2660lbeckelman@ View original content to download multimedia: SOURCE Smart Sand, Inc. 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Yahoo
07-05-2025
- Business
- Yahoo
Atlas Energy Solutions Inc. (AESI): A Bull Case Theory
We came across a bullish thesis on Atlas Energy Solutions Inc. (AESI) on Substack by Unemployed Value Degen. In this article, we will summarize the bulls' thesis on AESI. Atlas Energy Solutions Inc. (AESI)'s share was trading at $13.53 as of April 30th. AESI's trailing and forward P/E were 24.60 and 9.80 respectively according to Yahoo Finance. An aerial view of an oil rig in the Permian Basin of West Texas. Atlas Energy Solutions (AESI) represents a unique opportunity to invest in the ongoing shale revolution by owning a critical input: proppant, or sand, used to keep hydraulic fractures open. While rig counts and frac fleets have declined, well laterals and perforation density continue to rise, driving growing demand for sand. AESI, alongside Smart Sand (SND) and the soon-to-be-public Alpine Silica (a ProFrac spin-off), is one of the few public players in this space. AESI stands out due to its strong positioning with in-basin sand production in the Permian, allowing it to avoid the high logistics costs associated with SND's Northern White sand, which is mined in Wisconsin and Illinois. Although Northern White fetches a premium price, AESI benefits from lower transportation costs and strong customer demand for more accessible proppant, even if quality differences persist. AESI generated $1.1 billion in revenue and $288 million in EBITDA in 2024, with strong 26% EBITDA margins, and is guiding toward a 25% increase in volumes sold for 2025. This growth is expected to be further supported by rising proppant prices. The company is also innovating aggressively. It recently completed the 42-mile Dune Express conveyor belt—the second largest in North America—which delivers sand directly in the Delaware Basin. AESI is rolling out autonomous trucks and a new multi-trailer system that increases sand delivery per trip from 23.5 to 105 tons, aiming to reduce labor-related costs, which make up the bulk of trucking expenses. Despite these strengths, AESI's share price has dropped from $24 to $14, partially due to macroeconomic pressures on small caps and a recent acquisition of a power generation business. While such vertical integration might ultimately enhance margins, it risks a "conglomerate discount" from investors wary of scope expansion. This acquisition, although partially financed with stock (causing some dilution), could pay off if the power business achieves high standalone valuations like peers such as Kodiak Gas Services. The founder's 13% ownership aligns incentives for thoughtful capital allocation, and AESI offers a 7% dividend yield that could support the stock.
Yahoo
30-04-2025
- Business
- Yahoo
SMART SAND, INC. ANNOUNCES TIMING OF FIRST QUARTER 2025 EARNINGS RELEASE
YARDLEY, Pa., April 30, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) ("Smart Sand" or the "Company") announced today that it will release its first quarter 2025 financial results after the market closes on Tuesday, May 13, 2025. Investors are invited to view the Company's Earnings Release, Financial Statements, and Investor Presentations at As always, we welcome calls or emails to the Company's CFO, Lee Beckelman, with any specific questions. About Smart Sand: Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistics solutions to our frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company's sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company offers logistics solutions to its customers through in-basin transloading terminals and its SmartSystems™ wellsite storage and sand management capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products throughout the United States and Canada. For more information, please visit Contact: Lee BeckelmanPhone: (281) 231-2660Email: lbeckelman@ View original content to download multimedia: SOURCE Smart Sand, Inc. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Smart Sand, Inc. Announces Fourth Quarter 2024 and Full Year 2024 Results
4Q 2024 and full year 2024 revenue of $91.4 million and $311.4 million, respectively. 4Q 2024 and full year 2024 total tons sold of approximately 1,464,000 and 5,263,000, respectively. 4Q 2024 and full year 2024 net cash provided by operating activities of $1.0 million and $17.9 million, respectively. 4Q 2024 and full year 2024 free cash flow of $(0.8) million and $10.9 million, respectively, 4Q 2024 Smart Sand declared and paid $0.10 per share dividend to stockholders. YARDLEY, Pa., March 3, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a fully integrated frac and industrial sand supply and services company, a low-cost producer of high quality Northern White sand, and a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystemsTM products and services, today announced results for the fourth quarter and full year ended December 31, 2024. "Smart Sand delivered strong operating and financial results for the fourth quarter 2024 and the full year 2024" stated Charles Young, Smart Sand's Chief Executive Officer. "The Company experienced 17% sales volume growth for the year and 45% growth sequentially in the fourth quarter. The Company achieved its highest quarterly volumes and annual volumes in its history. Additionally, we delivered on our goals to generate positive free cash flow for the year and issued our first dividend, returning additional capital back to our shareholders. We currently expect to generate positive free cash flow in 2025 and will continue to look for opportunities to return capital back to our shareholders. Key drivers for our operational and financial improvement in 2024 were strong sales activity in our main US markets of the Bakken and the Marcellus formations and increased sales volumes into our new markets of the Utica formation and Canada. New market activity represented approximately 11% of our sales volume in 2024. In the fourth quarter, we saw some customers increase activity as projects that had been delayed earlier in the year were completed in the quarter. Our continued focus on efficiencies and cost management has led to Smart Sand generating free cash flow for the last two years and issuing its first dividend of $0.10 per share in October of 2024." "Going into 2025, we continue to believe the market fundamentals for oil and natural gas demand will support the long-term growth of new well development and completions in the primary markets we serve. We expect domestic LNG export capacity expansion and AI data center development to increase domestic demand for electricity and natural gas. We believe this trend will directly support the long-term prospects for frac sand demand in, among others, the Appalachian and Canadian basins. Similarly, we believe global demand for oil will continue to rise due to, among other things, increasing demand in developing Asian markets. We therefore expect to see continuing demand for our frac sand in the oil-rich Bakken and Utica shale formations we serve. Thus, our mines and logistics operations are uniquely positioned to support potential growth in all the primary Northern White Sand markets." Mr. Young continued, "We are focused on improving the utilization of our existing asset base at our three operating plants and increasing our market share in all the markets we serve. This year, we intend to invest in incremental mining to support future growth needs and make some strategic investments in terminals to provide greater access to the markets we serve. We currently expect sales volumes to moderate in the first quarter due to the unusually robust nature of demand in the fourth quarter, which shifted the typical winter slowdown we often experience in the fourth quarter to the first quarter of this year. We expect activity to start picking back up going into the second quarter and for the remainder of 2025. We expect overall spending for oil and gas development in the U.S. and Canada to be relatively consistent with 2024 spending levels. However, market trends continue to move towards longer lateral length per horizontal well and more sand per stage completed per well, which we expect will continue to support growth in sand needed for completions. While we expect first quarter 2025 sales volumes to be down from the record fourth quarter results, we currently expect sales volumes for 2025 to be flat to up approximately 5% from 2024 levels and our contribution margin per ton to be at levels consistent with 2024." During 2024, we made significant strides to improve our balance sheet and liquidity. We put in place a new five-year $30 million ABL credit facility with our new lender First Citizens Bank. This facility provides us with an efficient and flexible source of funding that allows us to manage our business going forward as well as the ability to act quickly on emerging opportunities. We also paid off the Oakdale Financing and replaced it with a $10 million, four-year, amortizing equipment financing." Full Year 2024 Highlights Total revenue was $311.4 million for the full year 2024, compared to $296.0 million for the full year of 2023. Sand revenue in 2024 was $303.6 million compared to $287.5 million in 2023. Total revenue and sand revenue increased by 5% and 6%, respectively, year-over-year, as a result of increased sand sales volumes. Sand prices declined during the second half of the year, which partially offset the increase in sales volumes. Total tons sold were 5,263,000 for the full year 2024, compared to full year 2023 total tons sold of 4,514,000, an increase of 17% year-over-year. SmartSystems revenue was $7.8 million for the year ended 2024, a decline from $8.5 million for the year ended 2023. The decline was due to lower overall utilization of our SmartSystems fleet in 2024. Cost of goods sold for the full year 2024 increased by 5% to $266.5 million, compared to $254.4 million for the full year 2023. The year over year increase was primarily due to higher volumes sold and the related increase in production and freight costs. Operating expenses for the year ended 2024 were $41.8 million, a (3)% decrease compared to full year 2023 operating expenses of $43.1 million. Overall, selling, general and administrative costs declined due to lower wages, maintenance and insurance costs driven by management's continued focus on cost-cutting measures, partially offset by higher royalties due to increased sales volumes and higher bank and legal fees related to the debt refinancings completed in 2024. The loss on disposal of assets of $1.1 million for the year ended December 31, 2024 was primarily related to relocating the Company's last mile equipment manufacturing and maintenance facility from Canada to the United States. The loss on the disposal of assets of $1.8 million for the year ended December 31, 2023 was primarily related to the reconfiguration of one of the Company's wet plants to increase its operational efficiency. Total other expenses for the full year 2024 were $2.8 million, compared to $0.7 million for the full year 2023. The increase from 2023 to 2024 was due to higher interest expense from a higher average balance outstanding. We recorded a $1.3 million loss on extinguishment of debt for the year ended December 31, 2024 related to the payoff of the Oakdale facility, which was refinanced with the VFI Equipment Financing. Net income was $3.0 million, or $0.08 per basic and diluted share, for the full year 2024, compared with net income of $4.6 million, or $0.12 per basic and diluted share, for the full year 2023. The decrease in net income was from higher tax benefit in 2023, compared to 2024. Operating income in 2024 of $3.0 million was $4.5 million higher than 2023 operating loss of $(1.5) million. This increase was attributable to an increase in total sand volumes sold and lower operating expenses. Net cash provided by operating activities was $17.9 million for the year ended December 31, 2024, derived from net income of $3.0 million, which includes net non-cash items of $32.8 million and $(18.0) million in changes in operating assets and liabilities. The net cash provided by operating activities in 2023 was $31.0 million. The decrease in net cash provided by operating activities in 2024, compared to 2023, was primarily due to an increase in working capital assets from higher sales in the fourth quarter of 2024 compared to 2023, that were not converted to cash before year-end. Contribution margin was $71.7 million, or $13.62 per ton sold, for the full year 2024 compared to $67.0 million, or $14.85 per ton sold, for the full year 2023. The increase in overall contribution margin for 2024, as compared to the prior year, was primarily due to higher sales volumes, which was partially offset by lower average sale prices. Adjusted EBITDA was $38.8 million for the full year 2024 compared to Adjusted EBITDA of $33.3 million for the full year 2023. The increase in Adjusted EBITDA for 2024, as compared to the prior year, was primarily due to higher sales volumes and production costs savings, partially offset by declining average selling prices in the second half of 2024. On October 3, 2024, our board of directors declared a special dividend of $0.10 per share of common stock, which was paid on October 28, 2024 to stockholders of record at the close of business on October 15, 2024. The initial dividend payment was approximately $3.9 million. On October 3, 2024, our board of directors also approved an eighteen-month share repurchase program under which the Company may purchase up to $10.0 million of its ordinary shares, the ("Repurchase Program"). Pursuant to the Repurchase Program, we may repurchase our ordinary shares from time to time, in amounts, at prices and at such times as management deems appropriate, subject to market conditions and other considerations. Fourth Quarter 2024 Highlights Total revenue was $91.4 million in the fourth quarter of 2024, compared to third quarter of 2024 revenue of $63.2 million. Total revenue increased 45% sequentially, primarily due to higher sand sales volumes and improved pricing. The fourth quarter 2024 revenues included $4.8 million related to contractual charges for tons sold in excess of certain contractual thresholds for the year. Fourth quarter 2024 total revenue increased by 47% compared to fourth quarter 2023 revenues of $61.9 million. Higher revenue year-over-year was due primarily to higher tons sold. Tons sold in the fourth quarter of 2024 were 1,464,000, a 23% increase compared to third quarter 2024 tons sold of 1,189,000. Tons sold in the fourth quarter of 2024 increased by 44% compared to 1,016,000 tons sold in the fourth quarter of 2023. Sales volumes were higher in the current period due primarily to higher market activity and the shifting of activity for some of our customers from the third quarter into the fourth quarter. Cost of goods sold in the fourth quarter 2024 increased to $77.9 million, compared to $56.7 million in the third quarter 2024 and $59.1 million in the fourth quarter 2023. The sequential and year over year increases were primarily due to higher volumes sold and the related increase in production and freight costs. Operating expense for the fourth quarter of 2024 were $9.8 million, compared to $11.4 million in the third quarter of 2024 and $10.7 million for the fourth quarter 2023. In the third quarter 2024, the Company recorded a loss on disposal of assets of $1.1 million primarily related to relocating our last mile equipment and maintenance facility from Canada to the United States. Operating expenses were lower year over year primarily due to lower wages and reduced administrative expenses driven by the Company's continued focus on cost cutting measures. Total other expenses for the fourth quarter 2024 were $0.4 million, compared to $0.3 million for the third quarter 2024 and $0.2 million for the fourth quarter 2023. The increase sequentially and year over year was primarily due to higher interest expense on the Company revolver to support the working capital growth related to the increased sales activity during the quarter. There were no borrowings outstanding on the revolver as of December 31, 2024. For the fourth quarter of 2024, the Company had a net income of $3.7 million, or $0.10 per basic and diluted share, compared to net loss of $(0.1) million, or $0.00 per basic and diluted share, for the third quarter of 2024, and net loss of $(4.8) million, or $(0.12) per basic share and diluted share for the fourth quarter 2023. Net cash provided by operating activities was $1.0 million for the quarter ended December 31, 2024, derived from net income of $3.7 million, which includes net non-cash items of $8.4 million and $(11.1) million in changes in operating assets and liabilities. The net cash provided by operating activities was $5.8 million for the third quarter 2024 and $(2.7) million for the fourth quarter 2023. The decrease sequentially was primarily due to an increase in working capital assets due to higher sales volumes compared to the previous quarter, that were not converted to cash before year-end. The increase, compared to the fourth quarter 2024, was primarily due to higher net income from increased sales volumes. Contribution margin was $20.2 million, or $13.80 per ton sold, for the fourth quarter of 2024 compared to $13.2 million, or $11.09 per ton sold, for the third quarter of 2024 and $9.2 million, or $9.07 per ton sold, for the fourth quarter of 2023. Adjusted EBITDA was $11.9 million for the fourth quarter of 2024, compared to $5.7 million for the third quarter of 2024 and $0.7 million for the fourth quarter of 2023. Higher net income, contribution margin and adjusted EBITDA sequentially and year-over-year were primarily due to higher sales volumes and lower operating expenses. Capital and Liquidity For the full year 2024, we had positive free cash flow of $10.9 million, generating $17.9 million in cash flow from operations while spending $7.0 million on capital expenditures. For the fourth quarter of 2024, we had negative $0.8 million in free cash flow, generating $1.0 million in cash flow from operations and spending $1.9 million on capital expenditures. As of December 31, 2024, we had cash on hand of $1.6 million and $30.0 million in undrawn availability on our existing credit facility. For 2025, we currently expect capital expenditures to be in the $13.0 million to $17.0 million range. Included in 2025 budgeted capital expenditures are approximately $8.0 million in mining expansion and terminal investments to support future expected sales growth. Earnings Conference Call The Company will no longer host a conference call in connection with its earnings releases, beginning with this earnings release. In addition to reviewing this earnings release, investors are invited to view the Company's Financial Statements and Investor Presentations at The Company also welcomes calls or emails to the Company's CFO, Lee Beckelman, with any specific questions. Forward-looking Statements All statements in this news release other than statements of historical facts are forward-looking statements that contain our Company's current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "expect," "will," "estimate," "believe" and other similar expressions. Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, continued effects of the global pandemic, changes in economic or political conditions, and such other factors discussed or referenced in the "Risk Factors" section of our Company's Form 10-K for the year ended December 31, 2024, to be filed by us with the U.S. Securities and Exchange Commission on March 3, 2025. You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law. About Smart Sand Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistics solutions to our frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company's sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company offers logistics solutions to our customers through its in-basin transloading terminals and SmartSystemsTM wellsite storage and sand management capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit Availability of Information on Smart Sand's Website We routinely announce material information using U.S. Securities and Exchange Commission filings, press releases, public conference calls and webcasts and the Smart Sand investor relations website. While not all of the information that we post to the Smart Sand investor relations website is of a material nature, some information could be deemed to be material. Accordingly, we encourage investors, the media, and others interested in Smart Sand to review the information that we share at the "Investors" link located at the top of the page on SMART SAND, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months EndedDecember 31, 2024September 30, 2024December 31, 2023(unaudited)(unaudited)(unaudited)(in thousands, except per share amounts) Revenues: Sand revenue $ 90,619$ 62,232$ 60,147 SmartSystems revenue 7449261,800 Total revenue 91,36363,15861,947 Cost of goods sold: Sand cost of goods sold 75,34255,60157,303 SmartSystems cost of goods sold 2,5691,0701,813 Total cost of goods sold 77,91156,67159,116 Gross profit 13,4526,4872,831 Operating expenses: Selling, general and administrative 9,2379,70310,088 Depreciation and amortization 618633667 (Gain) loss on disposal of fixed assets, net (7)1,063(19) Total operating expenses 9,84811,39910,736 Operating income (loss) 3,604(4,912)(7,905) Other (expenses) income: Interest expense, net (543)(344)(332) Loss on extinguishment of debt —(31)— Other income 13453119 Total other (expenses) income, net (409)(322)(213) Income (loss) before income tax benefit 3,195(5,234)(8,118) Income tax expense (benefit) (541)(5,136)(3,332) Net income (loss) $ 3,736$ (98)$ (4,786) Net income (loss) per common share: Basic $ 0.10$ —$ (0.12) Diluted $ 0.09$ —$ (0.12) Weighted-average number of common shares: Basic 39,02738,92638,339 Diluted 39,48238,92638,499 SMART SAND, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31,20242023(in thousands, except per share amount) Revenues: Sand revenue $ 303,590$ 287,479 SmartSystems revenue 7,7828,494 Total revenue 311,372295,973 Cost of goods sold: Sand cost of goods sold 258,812247,181 SmartSystems cost of goods sold 7,7377,237 Total cost of goods sold 266,549254,418 Gross profit 44,82341,555 Operating expenses: Selling, general and administrative 38,16138,722 Depreciation and amortization 2,5962,535 Loss on disposal of fixed assets, net 1,0621,802 Total operating expenses 41,81943,059 Operating income (loss) 3,004(1,504) Other (expenses) income: Interest expense, net (1,769)(1,272) Loss on extinguishment of debt (1,341)— Other income 358524 Total other (expenses) income, net (2,752)(748) Income (loss) before income tax benefit 252(2,252) Income tax expense (benefit) (2,740)(6,901) Net income (loss) $ 2,992$ 4,649 Net income (loss) per common share: Basic $ 0.08$ 0.12 Diluted $ 0.08$ 0.12 Weighted-average number of common shares: Basic 38,80938,948 Diluted 39,08439,046 SMART SAND, INC. CONSOLIDATED BALANCE SHEETS December 31,20242023(in thousands of U.S. dollars) AssetsCurrent assets:Cash and cash equivalents $ 1,554$ 6,072 Accounts receivable 40,98123,231 Unbilled receivables 5,3112,561 Inventory 25,04426,823 Prepaid expenses and other current assets 2,6353,217 Total current assets 75,52561,904 Property, plant and equipment, net 236,692255,092 Operating lease right-of-use assets 23,15323,265 Intangible assets, net 5,0845,876 Other assets 1,092163 Total assets $ 341,546$ 346,300 Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 16,988$ 16,041 Accrued expenses and other liabilities 12,56111,024 Deferred revenue 541,154 Current portion of long-term debt 3,55415,711 Current portion of operating lease liabilities 10,05310,536 Total current liabilities 43,21054,466 Long-term debt 9,1303,449 Long-term operating lease liabilities 14,48614,056 Deferred tax liabilities, net 9,31612,101 Asset retirement obligation 21,29219,923 Other non-current liabilities 30238 Total liabilities 97,736104,033 Commitments and contingenciesStockholders' equityCommon stock 3939 Treasury stock, at cost (14,671)(14,249) Additional paid-in capital 185,263181,973 Retained earnings 73,23974,539 Accumulated other comprehensive loss (60)(35) Total stockholders' equity 243,810242,267 Total liabilities and stockholders' equity $ 341,546$ 346,300 SMART SAND, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months EndedDecember 31, 2024September 30, 2024December 31, 2023(unaudited)(unaudited)(unaudited)(in thousands) Operating activities:Net income (loss) $ 3,736$ (98)$ (4,786) Adjustments to reconcile net (loss) income to net cash provided by operating activities:Depreciation, depletion and accretion of asset retirement obligation 7,8466,5947,113 Amortization of intangible assets 196198197 Net loss (gain) on disposal of assets (7)1,063(19) Amortization of deferred financing cost 563626 Accretion of debt discount ——46 Loss on extinguishment of debt —31— Deferred income taxes (567)(5,144)(2,041) Stock-based compensation, net 8688661,035 Employee stock purchase plan compensation 564 Changes in assets and liabilities, net of effects of acquisitions:Accounts receivable (16,817)2,068784 Unbilled receivables (2,569)1,590(2,396) Inventory 2,794(2,808)(868) Prepaid expenses and other assets 251(157)(2,860) Deferred revenue (1,297)714(863) Accounts payable 6,2721,0285,845 Accrued and other expenses 268(177)(3,679) Settlement of asset retirement obligation ——(197) Net cash provided by operating activities 1,0355,810(2,659) Investing activities:Purchases of property, plant and equipment (1,875)(2,135)(6,905) Proceeds from disposal of assets 8796 Net cash used in investing activities (1,867)(2,056)(6,899) Financing activities:Dividend payments to stockholders (3,902)—— Proceeds from the issuance of notes payable —646— Repayments of notes payable (723)(636)(1,483) Proceeds from revolving credit facility 14,0001,9758,000 Repayment of revolving credit facility (14,000)(3,975)— Payments under finance leases (54)(53)(71) Payment of deferred financing and debt issuance costs (103)(626)— Royalty stock issuance —26— Purchase of treasury stock (47)(153)(125) Net cash provided by financing activities (4,829)(2,796)6,321 Net increase in cash and cash equivalents (5,661)958(3,237) Cash and cash equivalents at beginning of year 7,2156,2579,309 Cash and cash equivalents at end of year $ 1,554$ 7,215$ 6,072 SMART SAND, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31,20242023(in thousands) Operating activities:Net income $ 2,992$ 4,649 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, depletion and accretion of asset retirement obligation 28,93627,472 Amortization of intangible assets 792793 Net loss on disposal of assets 1,0621,802 Amortization of deferred financing cost 145105 Accretion of debt discount 92186 Loss on extinguishment of debt 1,341— Deferred income taxes (2,784)(6,137) Stock-based compensation, net 3,2163,507 Employee stock purchase plan compensation 2324 Changes in assets and liabilities:Accounts receivable (17,750)12,672 Unbilled receivables (2,750)(2,640) Inventories 1,779(6,638) Prepaid expenses and other assets 2121,996 Deferred revenue (1,101)(5,805) Settlement of asset retirement obligation —(197) Accounts payable 531,974 Accrued and other expenses 1,606(2,772) Net cash provided by operating activities 17,86430,991 Investing activities:Purchases of property, plant and equipment (7,010)(23,031) Proceeds from disposal of assets 89129 Net cash used in investing activities (6,921)(22,902) Financing activities:Dividend payments to stockholders (3,902)— Proceeds from the issuance of notes payable 9,755— Repayments of notes payable (10,263)(10,435) Proceeds from revolving credit facility 30,97523,000 Repayment of revolving credit facility (38,975)(15,000) Payments under finance leases (221)(394) Payment of deferred financing and debt issuance costs (1,232)— Payment for debt extinguishment costs (1,227)— Employee stock purchase plan issuance 5156 Purchase of treasury stock (422)(4,754) Net cash used in financing activities (15,461)(7,527) Net increase in cash and cash equivalents (4,518)562 Cash and cash equivalents at beginning of period 6,0725,510 Cash and cash equivalents at end of period $ 1,554$ 6,072 Non-GAAP Financial Measures Contribution Margin We also use contribution margin, which we define as total revenues less costs of goods sold excluding depreciation, depletion and accretion of asset retirement obligations, to measure its financial and operating performance. Contribution margin excludes other operating expenses and income, including costs not directly associated with the operations of the Company's business such as accounting, human resources, information technology, legal, sales and other administrative activities. Historically, we have reported production costs and production cost per ton as non-GAAP financial measures. As we expand our logistics activities and continue to sell sand closer to the wellhead, our sand production costs will only be a portion of our overall cost structure. Gross profit is the GAAP measure most directly comparable to contribution margin. Contribution margin should not be considered an alternative to gross profit presented in accordance with GAAP. Because contribution margin may be defined differently by other companies in the industry, our definition of contribution margin may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of contribution margin to gross Months EndedDecember 31, 2024September 30, 2024December 31, 2023(in thousands) Revenue $ 91,363$ 63,158$ 61,947 Cost of goods sold 77,91156,67159,116 Gross profit 13,4526,4872,831 Depreciation, depletion, and accretion of asset retirement obligations included in cost of goods sold 6,7506,7006,381 Contribution margin $ 20,202$ 13,187$ 9,212 Contribution margin per ton $ 13.80$ 11.09$ 9.07 Total tons sold 1,4641,1891,016 Year Ended December 31,20242023(in thousands) Revenue $ 311,372$ 295,973 Cost of goods sold 266,549254,418 Gross profit 44,82341,555 Depreciation, depletion, and accretion of asset retirement obligations included in cost of goods sold 26,86125,469 Contribution margin $ 71,684$ 67,024 Contribution margin per ton $ 13.62$ 14.85 Total tons sold 5,2634,514 EBITDA and Adjusted EBITDA We define EBITDA as net income, plus: (i) depreciation, depletion and amortization expense; (ii) income tax expense (benefit) and other results of operations based taxes; and (iii) interest expense. We define Adjusted EBITDA as EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued operations; (ii) integration and transition costs associated with specified transactions; (iii) equity compensation; (iv) acquisition and development costs; (v) non-recurring cash charges related to restructuring, retention and other similar actions; (vi) earn-out, contingent consideration obligations and other acquisition and development costs; and (vii) non-cash charges and unusual or non-recurring charges. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors and commercial banks, to assess: the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; our ability to incur and service debt and fund capital expenditures; our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods or capital structure; and our debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the FCB ABL Credit Facility. We believe that our presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing our financial condition and results of operations. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternatives to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net income for each of the periods indicated. The following tables present a reconciliation of EBITDA and Adjusted EBITDA to net income for each of the periods indicated:Three Months EndedDecember 31, 2024September 30, 2024December 31, 2023(in thousands) Net income (loss) $ 3,736$ (98)$ (4,786) Depreciation, depletion and amortization 7,1617,1617,078 Income tax expense (benefit) and other taxes (541)(5,136)(3,332) Interest expense 552383329 EBITDA $ 10,908$ 2,310$ (711) Net (gain) loss on sale of fixed assets (7)1,063(19) Equity compensation 7837651,003 Acquisition and development costs (1) 98204 Bank and legal costs related to financing not closed —1,294— Loss on extinguishment of debt —31— Cash charges related to restructuring and retention of employees 1—14 Accretion of asset retirement obligations 249249234 Adjusted EBITDA $ 11,943$ 5,720$ 725 (1) Represents costs incurred related to the business combinations and current development project activities. Year Ended December 31,20242023(in thousands) Net income $ 2,992$ 4,649 Depreciation, depletion and amortization 28,73527,363 Income tax benefit and other taxes (2,740)(6,901) Interest expense 1,8381,532 EBITDA $ 30,825$ 26,643 Net loss on sale of fixed assets 1,0621,802 Equity compensation 2,8553,391 Acquisition and development costs (1) 325545 Bank and legal costs related to financing not closed 1,294— Loss on extinguishment of debt 1,341— Cash charges related to restructuring and retention of employees 14932 Accretion of asset retirement obligations 996904 Adjusted EBITDA $ 38,847$ 33,317 (1) The year ended December 31, 2024 includes $308 related to a disposal from the Eagle Materials acquisition. The year ended December 31, 2023 includes $271 of costs related to the asst acquisition of the Blair facility and $274 related to the Minerva, Ohio terminal. Free Cash Flow Free cash flow, which we define as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors and commercial banks, to measure the liquidity of our business. Net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Free cash flow should not be considered an alternative to net cash provided by operating activities presented in accordance with GAAP. Because free cash flows may be defined differently by other companies in our industry, our definition of free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of free cash flow to net cash provided by operating activities. Three Months EndedDecember 31, 2024September 30, 2024December 31, 2023(in thousands) Net cash provided by (used in) operating activities $ 1,035$ 5,810$ (2,659) Purchases of property, plant and equipment (1,875)(2,135)(6,905) Free cash flow $ (840)$ 3,675$ (9,564) Year Ended December 31,20242023(in thousands) Net cash provided by operating activities $ 17,864$ 30,991 Purchases of property, plant and equipment (7,010)(23,031) Free cash flow $ 10,854$ 7,960 Investor Contacts: Lee BeckelmanChief Financial Officer(281) 231-2660 lbeckelman@ View original content to download multimedia: SOURCE Smart Sand, Inc.
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24-02-2025
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SMART SAND, INC. ANNOUNCES TIMING OF FOURTH QUARTER AND FULL YEAR 2024 EARNINGS RELEASE
YARDLEY, Pa., Feb. 24, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) ("Smart Sand" or the "Company") announced today that it will release its fourth quarter and full year 2024 financial results after the market closes on Monday, March 3, 2025. The Company will no longer host a conference call in connection with its earnings releases, beginning with this earnings release. Investors are invited to view the Company's Earnings Release, Financial Statements, and Investor Presentations at As always, we welcome calls or emails to the Company's CFO, Lee Beckelman with any specific questions. About Smart Sand: Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistics solutions to our frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company's sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company offers logistics solutions to its customers through in-basin transloading terminals and its SmartSystems™ wellsite storage and sand management capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit Contact:Lee BeckelmanPhone: (281) 231-2660Email: lbeckelman@ View original content to download multimedia: SOURCE Smart Sand, Inc.
