U.S. Silica Holdings, Inc. announced net income of $18.4 million or $0.34 per basic and diluted share for the first quarter ended March 31, 2014, compared with net income of $17.3 million or $0.33 per basic share and $0.32 per diluted share for the first quarter of 2013. Earnings per share in the quarter were negatively impacted by $1.8 million or $0.03 per basic share for additional M&A and business development expense. Excluding this expense, net income for the first quarter ended March 31, 2014, was $19.7 million or $0.37 per basic and diluted share.
Bryan Shinn, president and chief executive officer commented, “Clearly, we are off to a very strong start in 2014, and the momentum has continued into Q2. The strength and resiliency of our in-basin inventory model for oil and gas was demonstrated again as we have experienced minimal weather-related disruptions this year. We are currently sold out of all grades of frac sand and believe that industry demand growth will continue to outpace planned supply additions. As the frac sand market tightened throughout Q1, we have been increasing prices in most basins while continuing to improve efficiencies. On the industrial side of our business, we expect continued contribution margin gains as we implement various price increases and bring on new, value-added products during the year.”
Revenue totaled $180.1 million compared with $122.3 million for the same period last year and up 20 percent sequentially over the fourth quarter of 2013. Overall sales volumes increased to 2.3 million tons, a 22.5 percent improvement over the first quarter of 2013 and up 10 percent sequentially over the fourth quarter of 2013.
Overall sales volumes totaled 1.3 million tons compared with 921.0 thousand tons sold in the first quarter of 2013. Segment contribution margin was $41.6 million versus $36.2 million in the first quarter of 2013.
Capital expenditures in the first quarter totaled $10.6 million and were associated largely with the company’s investment in a new frac sand mine and plant located near Utica, Ill., a new transload facility under construction in Odessa, Texas, and other maintenance capital projects.