Rock Products Logo

U.S. Silica Holdings Fourth Quarter Results Strong


U.S. Silica Holdings Inc. announced a net loss of $6.9 million or $0.09 per basic and diluted share for the fourth quarter ended Dec. 31, 2016, compared with a net loss of $15.3 million or $0.29 per basic and diluted share for the fourth quarter ended Dec. 31, 2015. The fourth quarter results were negatively impacted by $2.6 million of business development-related expenses, including acquisition-related costs for Sandbox and NBR Sands. Excluding these expenses, net of $1.0 milliontax effect, EPS was $(.07) per basic share for the quarter.

''Despite the many challenges, we made substantial progress in 2016 to make our company leaner, stronger more flexible and ultimately easier for customers to do business with, all of which we believe will enable us to further extend our industry-leading positions in both our Oil and Gas and Industrial and Specialty Products segments,'' said Bryan Shinn, president and chief executive officer. ''Looking ahead at 2017, we see strong demand for both sand proppant and last-mile logistics in our Oil and Gas business and believe we have the right strategy and are well positioned to capitalize on these favorable market trends. For our Industrial segment, demand in most of our end-use markets is anticipated to stay strong and we expect to continue to roll out new, higher margin products to drive bottom line growth,'' he added.

Full-year 2016 highlights include:
• Revenue totaled $559.6 million compared with $643.0 million for the full year of 2015, a decrease of 13 percent.
• Net loss of $41.1 million or $0.63 per basic and diluted share compared with net income of $11.9 million or $0.22 per basic and diluted share for the full year 2015.
• Overall tons sold were 9.9 million tons, virtually flat compared with 10.0 million tons for the full year 2015.
• Selling, general and administrative expense for the year totaled $67.7 million compared with $62.8 million for the full year 2015, an increase of 8 percent.
• Contribution margin was $90.4 million or 16 percent of revenue compared with $159.1 million or 25 percent of revenue for the full year 2015.
• Adjusted EBITDA was $39.6 million or 7 percent of revenue compared with $109.5 million or 17 percent of revenue for the full year 2015.

Fourth-quarter 2016 highlights include:
• Revenue totaled $182.4 million compared with $136.1 million for the same period prior year, an increase of 34 percent on a year-over-year basis and an increase of 32 percent sequentially compared with the third quarter of 2016.
• Overall tons sold were 2.9 million, up 16 percent compared with the 2.5 million tons sold in the fourth quarter of 2015 and an increase of 15 percent sequentially from the third quarter of 2016.
• Contribution margin for the quarter was $37.5 million, up 69 percent compared with $22.1 million in the same period of the prior year and an increase of 90 percent sequentially from the third quarter of 2016.
• Adjusted EBITDA was $20.7 million, up 92 percent compared with $10.8 million for the same period last year and an increase of 150 percent sequentially compared with the third quarter of 2016.

Oil and gas:
• Revenue for the quarter totaled $137.0 million, an increase of 54 percent compared with $88.8 million for the same period in 2015 and an increase of 58 percent sequentially compared with the third quarter of 2016.
• Tons sold totaled 2.1 million, up 34 percent compared with 1.6 million tons sold in the fourth quarter of 2015 and an increase of 29 percent sequentially from the third quarter of 2016.
• Seventy-five percent of tons were sold in basin compared with 54 percent in the fourth quarter of 2015 and 65 percent sold in basin in the third quarter of 2016.
• Segment contribution margin was $18.5 million, a 166 percent improvement compared with $7.0 million in the same period of the prior year and a $20.4 million increase sequentially from the third quarter of 2016