U.S. Silica Holdings Inc. announced a net loss of $256.1 million for the fourth quarter ended Dec. 31, 2018, compared with net income of $72.0 million for the fourth quarter of 2017.
The fourth quarter results were negatively impacted by $265.7 million in impairment expenses, $14.0 million in costs related to plant startup and expansion expenses, $5.7 million related to merger and acquisition expenses, $2.5 million in contract termination costs and $1.9 million in other adjustments.
Commenting on the company’s fourth quarter results, U.S. Silica President and Chief Executive Officer Bryan Shinn said, ”Our Industrial and Specialty business had a very solid quarter, more than doubling contribution margin dollars on a year over year basis, driven by enhanced customer and product mix and a meaningful contribution from EP Minerals.” Shinn added that, ”Our Oil & Gas sand proppant sales were negatively impacted by the well-reported industry headwinds related to budget exhaustion and lack of takeaway capacity, as well as further pricing pressure from a combination of low demand and additional local sand capacity coming on line in the Permian. However, SandBox, our industry-leading last-mile logistics solution, had a strong finish to 2018. We ended the year with 90 crews, within the range we guided to earlier in the year. We estimate that at the end of Q4 we had approximately 24 percent market share based on the amount of sand moving through our equipment,” he said.
Full-year 2018 highlights include:
• Revenue of $1.58 billion for the full year of 2018 compared with $1.24 billion for the full year of 2017, up 27 percent.
• Net loss of $200.8 million for the full year of 2018, compared with net income of $145.2 million for the full year of 2017.
• Overall tons sold of 18.059 million for the full year of 2018 compared with 15.128 million tons sold for the full year of 2017, up 19 percent.
• Contribution margin of $512.9 million for the full year of 2018 compared with $390.8 million for the full year of 2017, up 31 percent.
• Adjusted EBITDA of $392.5 million for the full year of 2018 compared with Adjusted EBITDA of $307.7 million for the full year of 2017.