Select Sands Corp. announced operational and financial results for the third quarter 2021. The company is reporting:
• Sold 89,096 tons of frac and industrial sand during the third quarter 2021, which was 5% higher than 85,242 tons sold in the second quarter 2021 and 81% higher than 49,105 tons sold for the third quarter 2020. Driving the increased sales volumes for the third quarter 2021 from the second quarter 2021 was higher demand for the company’s premium quality product offerings as petroleum prices stay at higher levels.
• Recorded revenue of $5.3 million and gross margin of $0.4 million in the third quarter 2021 compared to $4.8 million of revenue and gross margin of $0.5 million in the second quarter 2021, and revenue of $2.9 million and gross margin of $0.1 million for the third quarter 2020.
• Reported a net loss of $0.3 million, or $0.00 per diluted share, in the third quarter 2021, compared to net income of $0.3 million, or $0.00 per diluted share, in the second quarter 2021. Included in the second quarter 2021 was an approximate $575,000 pre-tax non-cash gain to reflect forgiveness of the company’s second Payroll Protection Program relief loan. For the third quarter 2020, the Company reported a net loss of $0.7 million, or $0.01 per diluted share.
• As announced on Aug. 9, Select Sands successfully negotiated and entered into a new five-year $8.1 million loan agreement with its bank to refinance its existing loans. With the execution of the loan agreement, the company is benefiting from a reduction in nearer term working capital needs and a lower interest rate for payments on borrowings.
Zig Vitols, president and chief executive officer, commented, “During this year’s third quarter, we saw a continued improvement in industry fundamentals as E&P companies increase their field development activities in response to the outlook for continued strong oil and natural gas prices. This drove higher demand for our premium quality Northern White Sand and other product offerings that resulted in higher sales volumes compared to the second quarter. Our topline for the third quarter also benefitted from higher product pricing, while gross margin was somewhat impacted by inflation in some of our product costs, including natural gas and transportation. I want to thank our entire employee team for their continued hard work and dedication during the third quarter, and look forward to collaborating closely with them as we capitalize on opportunities to further grow our business moving forward.”