U.S. Silica Holdings Inc. announced a net loss of $19.3 million, or $(0.26) per basic and diluted share, for the first quarter ended March 31, 2019, compared with net income of $31.3 million, or $0.39 per basic and diluted share, for the first quarter of 2018.
The first quarter results were negatively impacted by $8.6 million or $0.09 per share in costs related to plant startup and expansion expenses; $4.8 million or $0.05 per share related to merger and acquisition expenses; $1.0 million or $0.01 per share in contract termination costs; and $3.6 million or $0.03 per share in other adjustments, resulting in adjusted EPS loss for the first quarter of $(0.08) per basic and diluted share.
“We’re off to a strong start to 2019, driven by record results from our Sandbox unit, a solid quarter from our Industrial business and better than expected results from our Oil and Gas sand business, as we saw a resurgence in both volumes and pricing for Northern White sand that has continued into the second quarter,” said Bryan Shinn, president and chief executive officer.
First Quarter 2019 highlights include:
• Revenue of $378.7 million for the first quarter of 2019 compared with $357.4 million in the fourth quarter of 2018, up 6% sequentially and 3% over the first quarter of 2018.
• Overall tons sold of 4.830 million for the first quarter of 2019 compared with 4.637 million tons sold in the fourth quarter of 2018, up 4% sequentially and 17% over the first quarter of 2018.
• Contribution margin of $103.1 million for the first quarter of 2019 compared with $98.8 million in the fourth quarter of 2018, up 4% sequentially and down 14% over the first quarter of 2018.
• Adjusted EBITDA of $68.8 million for the first quarter of 2019 compared with $68.0 million in the fourth quarter of 2018, up 1% sequentially and down 28% from the first quarter of 2018.
For its Industrial and Specialty Products unit:
• Revenue of $118.3 million for the first quarter of 2019 compared with $113.8 million in the fourth quarter of 2018, up 4% sequentially and up 110% over the first quarter of 2018.
• Tons sold totaled 0.966 million for the first quarter of 2019 compared with 0.933 million tons sold in the fourth quarter of 2018, up 4% sequentially and 10% over the first quarter of 2018.
• Segment contribution margin of $44.6 million, or $46.12 per ton, for the first quarter of 2019 compared with $44.6 million in the fourth quarter of 2018, flat sequentially and up 117% over the first quarter of 2018.
For its Oil & Gas unit:
• Revenue of $260.5 million for the first quarter of 2019 compared with $243.5 million in the fourth quarter of 2018, up 7% sequentially and down 17% over the first quarter of 2018.
• Tons sold of 3.864 million for the first quarter of 2019 compared with 3.704 million tons sold in the fourth quarter of 2018, up 4% sequentially and 19% over the first quarter of 2018.
• Segment contribution margin of $58.6 million, or $15.16 per ton, for the first quarter of 2019 compared with $54.3 million in the fourth quarter of 2018, up 8% sequentially and down 41% from the first quarter of 2018.
“We believe a robust U.S. economy, supported by strong job growth and moderate interest rates, bodes well for many of our end-use markets in our Industrial business,” the company stated. “First quarter GDP numbers recently released show the strongest rate of first quarter growth in four years, according to the Commerce Department. Despite some early weakness, housing starts are expected to strengthen through the remainder of 2019 and big-ticket residential remodeling activity is expected to stay strong nationwide according to the National Association of Home Builders and Metrostudy. U.S. auto sales are expected to decline modestly year-over-year, according to the Center for Automotive Research but sales of premium wine, an important filtration market for us are expected to grow between 4 and 8%, according to the State of the Wine Industry for 2019 by Silicon Valley Bank.”