U.S. Silica Holdings Inc. announced net income of $32.1 million, or $0.41 per diluted share, for the third quarter ended Sept. 30. The third quarter results were negatively impacted by $2.1 million pre-tax, or $0.02 per diluted share after-tax, of charges primarily related to merger and acquisition related expenses and optimization costs, partially offset by the gain on extinguishment of debt, resulting in adjusted EPS (a non-GAAP measure) of $0.43 per diluted share.
These results compared with a net income of $22.9 million, or $0.29 per diluted share, for the second quarter of 2022, which were negatively impacted by $2.4 million pre-tax, or $0.03 per diluted share after-tax, of charges primarily related to merger and acquisition related expenses and facility closure costs, resulting in adjusted earnings per diluted share of $0.32.
Bryan Shinn, chief executive officer, commented, “We delivered another exceptional quarter, resulting in our strongest quarterly financial performance in the last four years. These results were driven by continued robust customer demand in both business segments and outstanding execution by our talented team. We enjoyed a full quarter of price increases to fight inflationary impacts in our Industrial & Specialty Products segment, realized greater contract coverage at improved prices in sand proppant, and delivered further margin expansion in SandBox last-mile-logistics. This resulted in sequentially higher revenue, earnings, and strong cash generation across the company, affording us the opportunity to repurchase an additional $50 million of debt earlier this month. So far this year, we have used our strong cash flow generation to repurchase a total of $150 million of debt and expect to generate meaningful operating cash flow in the fourth quarter and in 2023, which should further strengthen our balance sheet and help us achieve our objective of reducing net debt.”
Total Company
• Revenue of $418.8 million for the third quarter of 2022 increased 8% compared with $388.5 million in the second quarter of 2022 and increased 57% when compared with the third quarter of 2021.
• Overall tons sold of 4.624 million for the third quarter of 2022 decreased 1% compared with 4.652 million tons sold in the second quarter of 2022 and increased 16% when compared with the third quarter of 2021.
• Contribution margin of $131.8 million for the third quarter of 2022 increased 7% compared with $123.3 million in the second quarter of 2022 and increased 98% when compared with the third quarter of 2021.
• Adjusted EBITDA of $102.7 million for the third quarter of 2022 increased 10% compared with $93.8 million in the second quarter of 2022 and increased 158% when compared with the third quarter of 2021.
Oil & Gas
• Revenue of $267.5 million for the third quarter of 2022 increased 10% when compared with $244.2 million in the second quarter of 2022 and increased 89% when compared with the third quarter of 2021.
• Tons sold of 3.498 million for the third quarter of 2022 decreased 1% compared with 3.528 million tons sold in the second quarter of 2022 and increased 20% when compared with the third quarter of 2021.
• Segment contribution margin of $85.3 million, or $24.38 per ton, increased 10% when compared with $77.4 million in the second quarter of 2022 and increased 232% when compared with the third quarter of 2021.
Industrial & Specialty Products (ISP)
• Revenue of $151.4 million for the third quarter of 2022 increased 5% compared with $144.3 million in the second quarter of 2022 and increased 21% when compared with the third quarter of 2021.
• Tons sold of 1.126 million for the third quarter of 2022 were relatively flat when compared with 1.124 million tons sold in the second quarter of 2022 and increased 5% when compared with the third quarter of 2021.
• Segment contribution margin of $46.5 million, or $41.32 per ton, for the third quarter of 2022 increased 1% compared with $45.9 million in the second quarter of 2022 and increased 13% when compared with the third quarter of 2021.