U.S. Silica Holdings Inc. announced a net loss of $8.4 million, or $0.11 per diluted share, for the first quarter ended March 31. The first quarter results were negatively impacted by $9.4 million pre-tax, or $0.09 per diluted share after-tax, of charges primarily related to a supplier contract termination and merger and acquisition related expense, resulting in an adjusted loss of $0.02 per diluted share.
These results compared with a net loss of $19.0 million, or $0.25 per diluted share, for the fourth quarter of 2021, which were negatively impacted by $3.5 million pre-tax, or $0.03 per diluted share after-tax, of charges primarily related to merger and acquisition related expense and other adjustments, resulting in an adjusted loss of $0.22 per basic and diluted share.
Bryan Shinn, chief executive officer, commented, “We started 2022 with a very strong quarter, delivering sequential improvements of 7% in total revenue and 26% in adjusted EBITDA. Macros were very favorable, with continued robust customer demand, and we delivered meaningful price increases across both business units in the quarter. I am pleased to report that the positive market conditions are continuing, and we expect to deliver even stronger financial results in the second quarter, and 2022 overall is shaping up to be a very strong year for profits and cash generation.
“In our Oil & Gas segment, sand and logistics remained effectively sold out due to strong well completion demand, particularly in West Texas. Our teams worked diligently with customers to minimize disruptions and well site downtime given the overwhelming market demand. The supply and demand balance in the sand and last mile logistics market remains very tight, and we have experienced increased operating costs to serve customers. As a result, sand and SandBox sales prices and margins have risen substantially and we continue to sign attractive new contracts.
“In our Industrial & Specialty Products segment, demand remained strong across end uses and market segments. As we mentioned on last quarter’s call, strong winter storms negatively impacted a few of our operations during the quarter resulting in higher costs, delayed shipments and less favorable product sales mix. These were transitory issues and we expect a very strong rebound in the second quarter. In addition, we are proactively offsetting West Coast shipping challenges by utilizing alternate ports across the U.S. and anticipate an improved product mix coupled with the phase-in of additional price increases in the second quarter. Given these actions, we expect the second quarter to be one of the strongest quarters on record for our Industrial segment and we believe that first half 2022 Industrial & Specialty Products profitability will be on or slightly ahead of plan.”
First quarter 2022 highlights included:
Total Company
• Revenue of $304.9 million for the first quarter of 2022 increased 7% compared with $284.9 million in the fourth quarter of 2021 and increased 30% when compared with the first quarter of 2021.
• Overall tons sold of 4.134 million for the first quarter of 2022 decreased 1% compared with 4.181 million tons sold in the fourth quarter of 2021 and increased 16% when compared with the first quarter of 2021.
• Contribution margin of $82.6 million for the first quarter of 2022 increased 15% compared with $71.6 million in the fourth quarter of 2021 and increased 34% when compared with the first quarter of 2021.
• Adjusted EBITDA of $52.9 million for the first quarter of 2022 increased 26% compared with $42.1 million in the fourth quarter of 2021 and increased 38% when compared with the first quarter of 2021.
Industrial & Specialty Products (ISP)
• Revenue of $128.6 million for the first quarter of 2022 increased 2% compared with $126.3 million in the fourth quarter of 2021 and increased 14% when compared with the first quarter of 2021.
• Tons sold of 1.074 million for the first quarter of 2022 decreased 1% when compared with 1.085 million tons sold in the fourth quarter of 2021 and increased 9% when compared with the first quarter of 2021.
• Segment contribution margin of $37.8 million, or $35.23 per ton, for the first quarter of 2022 decreased 9% compared with $41.5 million in the fourth quarter of 2021 and decreased 6% when compared with the first quarter of 2021.
Oil & Gas
• Revenue of $176.2 million for the first quarter of 2022 increased 11% when compared with $158.6 million in the fourth quarter of 2021 and increased 45% when compared with the first quarter of 2021.
• Tons sold of 3.060 million for the first quarter of 2022 decreased 1% compared with 3.096 million tons sold in the fourth quarter of 2021 and increased 19% when compared with the first quarter of 2021.
• Segment contribution margin of $44.8 million, or $14.63 per ton, increased 49% when compared with $30.1 million in the fourth quarter of 2021 and increased 108% when compared with the first quarter of 2021.