U.S. Silica Holdings Inc. announced third quarter 2019 results, including a net loss of $23.0 million, or $(0.31) per basic and diluted share.
The third quarter results were negatively impacted by $4.9 million or $0.05 per share related to merger and acquisition expenses, $3.5 million or $0.03 per share in facility closure costs, $3.9 million or $0.04 per share in costs related to plant startup and expansion; and $3.8 million or $0.04 per share in other adjustments, partly offset by $2.0 million or $0.02 per share in a gain related to a royalty note payable valuation change, resulting in adjusted EPS for the third quarter of $(0.17) per basic and diluted share.
“I am proud of the work that our team did in the quarter, given the seasonal sand demand slowdown in our Oil & Gas segment,” said Bryan Shinn, president and chief executive officer. “We are adapting swiftly to current market realities and are focused on serving customers optimally and profitably while appropriately managing key operational levers to rationalize capacity and reduce cost. These changes are working as we were able to add 15 new oil and gas customers to our portfolio in the third quarter.
“At the same time, we are expanding our performance products offerings to serve higher profit, more stable industrial end markets and customers,” Shin said. “We have grown established products rapidly over the past few years and recently introduced new, profitable heat treated and ground silica offerings. While we are growing, we expect to generate free cash flow to de-lever our balance sheet through a continued focus on managing working capital and capex. I believe that we have the right strategy, clear plans and a strong team and I am very excited about the future of our company.”
The company reported:
- Revenue of $361.8 million for the third quarter of 2019 compared with $394.9 million in the second quarter of 2019, down 8% sequentially and down 14% from the third quarter of 2018.
- Overall tons sold of 4.850 million for the third quarter of 2019 compared with 4.904 million tons sold in the second quarter of 2019, down 1% sequentially and up 1% from the third quarter of 2018.
- Contribution margin of $95.0 million for the third quarter of 2019 compared with $121.6 million in the second quarter of 2019, down 22% sequentially and down 31% from the third quarter of 2018.
Net loss of $23.0 million, or $(0.31) per basic and diluted share, for the third quarter of 2019, compared with net income of $6.3 million, or $0.08 per basic and diluted share, for the third quarter of 2018. - Adjusted EBITDA of $58.4 million for the third quarter of 2019 compared with $85.5 million in the second quarter of 2019, down 32% sequentially and down 45% from the third quarter of 2018.