U.S. Silica Holdings Inc. announced revenue of $442.2 million for the first quarter of 2023, an increase of 7% compared with $412.9 million in the fourth quarter of 2022; and an increase of 45% when compared with the first quarter of 2022. Net income of $44.6 million for the first quarter of 2023 represents an increase of 41% compared with $31.6 million in the fourth quarter of 2022 and increased significantly when compared with a net loss of $8.4 million in the first quarter of 2022.
Overall tons sold of 4.934 million for the first quarter of 2023 increased 7% compared with 4.606 million tons sold in the fourth quarter of 2022 and increased 19% when compared with the first quarter of 2022.
Bryan Shinn, chief executive officer, commented, “We delivered exceptional results in the first quarter, reporting record Adjusted EBITDA and the highest level of total contribution margin dollars since 2018. Customer demand in our Oil and Gas segment remained robust and we improved pricing and expanded margins. Our Industrial and Specialty Products segment profitability increased 13% on a year-over-year basis through price increases and greater sales of higher-margin products. We also successfully entered into a new $1.1 billion Credit Agreement in the first quarter and concurrently extinguished $109 million of debt, further strengthening our balance sheet.
“We expect to remain effectively sold out for sand proppant in 2023 supported by robust contractual commitments at 84% of production capacity,” Shinn continued. “Our SandBox last mile logistics offering is also in strong demand and poised for another year of record profitability. In our Industrial and Specialty Products segment, we are commercializing new products, realizing benefits from structural cost reductions and price increases and continuing to sign favorable long-term contracts.
“Based on the strength of our business so far this year, coupled with the visibility provided by our customer contracts and market feedback, we are raising our guidance and now expect 2023 company Adjusted EBITDA to increase 25% to 30% sequentially with associated free cash flow generation in excess of $200 million,” Shinn concluded.