Select Sands Corp. announced operational and financial results for the three months ended June 30, and the filing of its financial statements and associated management’s discussion and analysis. The company:
- Sold 53,894 tons of frac and industrial sand during second-quarter 2023 compared to 83,027 tons in the three months in first quarter 2023; and 83,207 tons in the three months ended June 30, 2022. Select Sand’s guidance for second-quarter 2023 frac and industrial sand sales volumes was 45,000 to 60,000 tons.
- Recorded revenue of $3.2 million and a gross loss of $0.1 million in second-quarter 2023 versus $5.1 million of revenue and gross margin of $0.4 million in first-quarter 2023, and revenue of $5.3 million and gross margin of $1.0 million for second-quarter 2022.
- Reported a net loss of $1.0 million, or $0.01 per share, in second-quarter 2023 compared to a net loss of $0.5 million, or $0.01 per share, in first-quarter 2023 and net income of $0.1 million, or $0.00 per share, in second-quarter 2022.
Zig Vitols, president and chief executive officer, commented, “While clearly less than we would have liked, our second-quarter sales volumes levels did come in above the mid-point of our guidance range. Substantially impacting second quarter sales tons was the continued evolvement of one of our largest customer’s schedule of field development activities and previous product purchase obligations. The industry dry spell has affected any brokerage and transload opportunities at the George West facility as well. Unfortunately, this trend continued into the third quarter as U.S. rig activity levels measured last week declined 11% from three months earlier and more than 15% from this same time last year. We quickly reacted to the lower sales volumes backdrop by reducing staffing levels and temporarily halting certain production activities to save on cash outlays for blasting, electricity, fuel and other expenses until our sales outlook improved. I am pleased to report that we have just recently received an uptick in customer interest for products, although it is substantially for deliveries that will occur in the fourth quarter. In short, we look forward to an improved sales environment beginning in the fourth quarter based on recently scheduled frac sand jobs and additional scheduling conversations.”