Select Sands Up By Double Digits

Select Sands Corp. announced operational and financial results for the second quarter of 2021, and the filing of its audited financial statements and associated management’s discussion and analysis.

Key highlights include:

·  Sold 85,242 tons of frac and industrial sand during the second quarter of 2021, which was 42% higher than 59,970 tons sold in first quarter 2021 and 61% higher than 53,009 tons sold for fourth quarter 2020. Driving the increased sales volumes for second quarter 2021 was further expansion in customer activities in response to an improved commodity price environment.

·  Generated revenue of $4.8 million and gross margin of $0.5 million in second quarter 2021 – a significant improvement from $3.6 million of revenue and a gross loss of $0.04 million in first quarter 2021, and substantially higher than revenue of $0.04 million and a gross loss of $0.6 million in second quarter 2020. As discussed in the company’s first quarter 2021 earnings release, first quarter 2021 cost of goods sold, excluding depreciation and depletion, included higher expenses for utilities and repairs and maintenance, as well as costs to restart the company’s facilities as a result of the severe winter storm in February.

·  Reported net income of $0.3 million, or $0.00 per diluted share, in second quarter 2021, compared to a net loss of $0.8 million, or $0.01 loss per diluted share, in first quarter 2021 and a net loss of $1.2 million, or $0.01 loss per diluted share, in Q2 2020.

·  Posted adjusted EBITDA of $0.2 million for second quarter 2021, versus an adjusted EBITDA loss of $0.3 million in first quarter and an adjusted EBITDA loss of $0.8 million in second quarter 2020. 

·  As of June 30, cash and cash equivalents were $0.2 million, accounts receivable was $1.9 million, and inventory was $3.7 million.

·  As previously announced, Select Sands recently successfully negotiated and entered into a new five-year $8.1 million loan agreement with its bank to restructure its existing loans. Separately, Select Sands received confirmation that the company’s second Payroll Protection Program relief loan of $574,990 was forgiven, which was reflected as a one-time gain in second quarter 2021.

Zig Vitols, president and chief executive officer, commented, “Supported by a substantial increase in sequential sales volumes driven by a further enhanced industry backdrop, we were pleased to see a meaningful improvement in our operational and financial performance for the second quarter. Contributing to our financial results are the permanent cost reductions afforded by our targeted Plant Reconfiguration Project that was completed in January. We look forward to further benefiting from our improved expense profile. In addition, with the recent execution of our Loan Agreement, we are in a much stronger financial position given the decrease in nearer term working capital needs and the lower interest rate we will pay going forward.”

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