U.S. Silica Cites Surging Proppant Demand in Quarterly Report

U.S. Silica Holdings Inc. announced net income of $4.6 million, or $0.06 per basic and diluted share, for the fourth quarter ended Dec. 31, 2020, compared with a net loss of $292.9 million or $3.99 per basic and diluted share for the fourth quarter of 2019.

The fourth quarter results were negatively impacted by $4.1 million of charges related to asset impairments, facility closure costs, a plant capacity expansion and other expenses. These charges were offset by an $8.3 million valuation change on a note payable. Additionally, the company recorded $27.2 million of shortfall penalties in its Oil and Gas segment, resulting in adjusted EPS of ($0.26) per basic and diluted share.

“I am proud of how our company successfully navigated 2020 and of our industry leading performance during the year in spite of the challenging macro-economic environment,” said Bryan Shinn, U.S. Silica chief executive officer. “We delivered another strong financial quarter and substantially beat expectations through structural cost reductions, disciplined execution in oil and gas and a rebound in the industrial and specialty products segment.

“2021 is off to a good start with surging proppant demand and a continuing recovery in general industrial markets. We are well positioned for success this year and beyond with numerous growth opportunities in our new product pipeline across a diverse set of markets and end uses,” Shinn concluded.

Overall tons sold of 11.130 million for 2020 decreased 41% compared with 18.788 million tons sold in 2019. Overall tons sold of 2.827 million for the fourth quarter of 2020 increased 26% compared with 2.239 million tons sold in the third quarter of 2020 and decreased 33% when compared with the fourth quarter of 2019.

Industrial and Specialty Products tons sold totaled 0.926 million for the fourth quarter of 2020, a decrease 3% compared with 0.957 million tons sold in the third quarter of 2020 and an increase of 10% when compared with the fourth quarter of 2019.

Segment contribution margin of $38.4 million or $41.47 per ton for the fourth quarter of 2020 decreased 9% compared with $42.4 million in the third quarter of 2020 and decreased 2% when compared with the fourth quarter of 2019.

Oil & Gas segment tons sold of 1.901 million for the fourth quarter of 2020 increased 48% compared with 1.282 million tons sold in the third quarter of 2020 and decreased 43% when compared with the fourth quarter of 2019.

Segment contribution margin of $51.5 million or $27.10 per ton for the fourth quarter of 2020 increased 64% compared with $31.5 million in the third quarter of 2020 and decreased 24% when compared with the fourth quarter of 2019.

Looking ahead to 2021 and beyond, the company said it is well positioned for sustainable, long-term growth by servicing critical industries such as food and beverage production, housing, automotive, glass manufacturing, biopharma, and energy. The company has a pipeline of innovative, new products to service high growth, sustainable end uses including solar energy, wind power, cleaner air, green diesel, food safety and energy efficient buildings.

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