U.S. Silica Holdings Inc. announced net income of $22.9 million, or $0.29 per diluted share, for the second quarter ended June 30. These results compared with a net loss of $8.4 million, or $0.11 per diluted share, for the first quarter of 2022.
The company is reporting:
• Revenue of $388.5 million for the second quarter of 2022, an increase of 27% compared with $304.9 million in the first quarter of 2022 and an increase of 22% when compared with the second quarter of 2021.
• Overall tons sold of 4.652 million for the second quarter of 2022 increased 13% compared with 4.134 million tons sold in the first quarter of 2022 and increased 13% when compared with the second quarter of 2021.
• Contribution margin of $123.3 million for the second quarter of 2022 increased 49% compared with $82.6 million in the first quarter of 2022 and increased 55% when compared with the second quarter of 2021 after excluding the $48.9 million customer settlement.
Bryan Shinn, chief executive officer, commented, “We delivered an exceptional second quarter with outstanding sales volume, revenue, earnings and cash generation across the company. By capitalizing on the strength in our underlying markets and improved operational efficiencies, we generated a 77% sequential increase in adjusted EBITDA, and $88 million of cash flow from operations. We continued to experience robust customer demand during the quarter and implemented numerous price increases and surcharges across both business units to fight inflationary impacts. In addition, I am extremely proud of our organization’s execution during the second quarter as we creatively improved international logistics performance, increased plant outputs and delivered world class safety performance.
“In our Oil & Gas segment, the supply and demand balance in the sand and last mile logistics market remains very tight and we were effectively sold out due to strong well completion demand, particularly in West Texas. During the second quarter, we took advantage of operational efficiency gains at key mine sites to maximize production and our sand and SandBox sales prices and margins continued to move higher. Given the expectation for a multi-year energy up cycle, customers have been determined to secure sand supply and are signing attractive multi-year contracts, including paying cash up front.
“In our Industrial & Specialty Products segment, demand remained strong across end market segments. The transitory seasonal issues we experienced in the first quarter were resolved and we realized a very strong rebound in the second quarter, driven by price increases and surcharges across all major product lines to combat inflation, improved product mix, and greater operational efficiencies from initiatives such as leveraging alternate shipping ports and packaging automation.
“During the first half of 2022, our businesses generated significant profitability and levels of free cash flow that afforded us the ability to opportunistically repurchase $100 million of debt at a discount to par using cash on hand earlier this month. Given that we expect continued meaningful free cash flow generation in the second half of 2022, we anticipate further reductions in our net debt, and are forecasting continued positive momentum in the third quarter.”