Select Sands Corp. announced operational and financial results for second-quarter 2022. The company:
• Sold 83,207 tons of frac and industrial sand during second quarter 2022 compared to 107,428 tons in first quarter 2022 and 85,242 tons in second quarter 2021. For the six months ended June 30, 2022, the company sold 190,635 tons of frac and industrial sand – a 31% increase from 145,212 tons sold during the first six months of 2021.
• Recorded revenue of $5.3 million and gross margin of $1.0 million in second quarter 2022 versus $6.2 million of revenue and gross margin of $0.7 million in first quarter 2022, and revenue of $4.8 million and a gross margin of $0.5 million for second quarter 2021. Substantially driving the gross margin per ton increase from first quarter 2022 was a higher average per ton sales price for second quarter 2022.
• Reported net income of $0.1 million, or $0.00 per share, in second quarter 2022 compared to a net loss of $0.1 million, or $0.00 per share, in first quarter 2022 and net income of $0.3 million, or $0.00 per share, in second quarter 2021.
Zig Vitols, president and chief executive officer, commented, “Our second quarter results benefitted from a continued strong energy commodity price environment, which supported the increase in our average unit sales price. As we discussed in our first quarter earnings release, our decrease in second quarter sales volumes from the first quarter was primarily due to an overall increase in the amount of time it took for customers to return rail cars. This impacted our ability to fully capitalize on the ongoing growth in demand for our premium quality Northern White Sand and other product offerings, as well continued strength in the spot sales market. Despite lower sales volumes, we generated an increase in gross margin and adjusted EBITDA of 42% and 50%, respectively, from this year’s first quarter. This was a direct result of the efforts of our dedicated workforce, and I want to thank them once again for their efforts as we execute on our targeted strategies designed to take Select Sands to new heights.”