Smart Sand revenues Jump 141 Percent


Smart Sand, Inc. announced results for the first quarter ended March 31, 2017. “Smart Sand had a strong first quarter, substantially increasing our sales volume sequentially and year over year,” stated Charles Young, chief executive officer. “We believe this is evidence that oil and gas industry activity is continuing to improve and demand for frac sand is continuing to increase. As a result of the increased market demand for our high quality, finer mesh Northern White frac sand, we have decided to move forward with an expansion to 5.5 million tons of nameplate annual capacity by year-end. We also believe there are cost efficiencies we can realize as the result of building two dry plants and a wet plant in an integrated design. While our primary focus remains on growing our Oakdale facility and enhancing its logistics and operational capabilities, we will continue to explore regional sand, in-basin transloads and last mile logistical opportunities. We believe that as we operate near full-capacity, we will see cost improvements and pricing increases which will help us in continuing to deliver strong financial results for our investors.”

Revenues were approximately $25.0 million in the first quarter of 2017, compared with $10.4 million during the same period last year, a 141 percent increase year over year. The increase in revenues was primarily due to increased sales volumes. Revenues for the quarter decreased by 15 percent compared to fourth quarter 2016 revenue of $29.5 million, primarily due to shortfall payments recognized during the previous quarter, partially offset by higher sales volumes.

Tons sold totaled approximately 558,500 in the first quarter of 2017, compared with approximately 129,300 tons sold during the same period last year and 274,500 tons for the fourth quarter of 2016, increases of 332 percent and 103 percent, respectively.

The company generated net income of $1.0 million, or $0.02 per basic and diluted share, for the first quarter of 2017, compared with net income of $0.4 million, or $0.02 per basic and $0.01 per diluted share, for the first quarter of 2016 and a net income of $12.4 million, or $0.32 per basic and diluted share, for the fourth quarter of 2016.

Smart Sand’s capital expenditures totaled $1.6 million for the quarter ended March 31, 2017, and were associated largely with the company’s investment in various enhancement and cost improvement projects. The company estimates that capital expenditures for the year will be approximately $85 million, up from $55 million previously announced, as a result of plans to expand the company’s Oakdale facility to 5.5 million tons of annual nameplate capacity.