Select Sands Corp. announced operational and financial results for Q3 2020, and the filing of its financial statements and associated management’s discussion and analysis. The company:
- Sold 49,248 tons of frac and industrial sand during Q3 2020, compared to 73 tons in Q2 2020. Actual sales volumes for Q3 2020 were at the high-end of the company’s guidance of 35,000 to 50,000 tons, which was provided in Select Sands’ second quarter earnings results released on Aug. 25, 2020.
- Generated revenue of $2.9 million and a gross margin of $0.1 million in Q3 2020, versus $0.04 million of revenue and a gross loss of $0.6 million in Q2 2020.
- Reported a Q3 2020 net loss of $0.7 million, or $0.01 loss per diluted share, compared to a net loss of $1.2 million, or $0.01 loss per diluted share, in Q2 2020.
- Posted a lower adjusted EBITDA loss of $0.3 million for Q3 2020, versus a loss of $0.8 million in Q2 2020.
- As of Sept. 30, cash and cash equivalents were $0.7 million, accounts receivable was $1.0 million, and inventory was $2.4 million.
- Continued to make significant progress on the company’s previously announced plant reconfiguration project to optimize and consolidate processing assets to improve costs. During Q3 2020, the new wet plant at Sandtown processed all products and the new dry plant at the Diaz rail facility processed 100 mesh product.
- Benefitted in Q3 2020 from its lower production cost profile and expects to achieve additional operational efficiencies in Q4 2020.
- Recently advised by its lending institution that Select Sands had successfully met all of the criteria necessary to have its Paycheck Protection Program loan of $416,153 made available through the Small Business Administration in the USA forgiven. This will be reflected in the company’s Q4 2020 results.
Zig Vitols, president and chief executive officer, commented, “We were clearly pleased to see a material increase in customer activity levels in the third quarter. Combined with our lower cost profile due to the plant reconfiguration project, the result was a significant improvement in our financial performance versus the second quarter. I want to thank all of our employees and contractors for their continued hard work as we navigate the challenging backdrop as a result of the COVID-19 pandemic. Their steadfast dedication to performing at a sustained high-level while ensuring the health and safety of themselves, their co-workers and our customers has been amazing. I look forward to their continued efforts as we successfully finish out this year and move into what we expect will be a better backdrop for oil demand in 2021 as COVID-19 vaccines and related immunology therapies come more fully to market.”