Service & Supply | Quarterly / Earnings Reports | Oilfield Services | Proppant | First Quarter (1Q) Update

US Silica; Proppant Sold Increased 80% YoY

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[Summary: Revenue for the quarter totaled $193.0 million compared with $73.9 million in the same period in 2016, an increase of 161% on a year-over-year basis and an increase of 41% sequentially from the fourth quarter of 2016.

Tons sold totaled 2.5 million, an increase of 79% compared with the 1.4 million tons sold in the first quarter of 2016 and an increase of 22% sequentially compared with the tons sold in the fourth quarter of 2016. ]

U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced net income of $2.5 million or $0.03 per basic and diluted share for the first quarter ended March 31, 2017 compared with a net loss of $11.0 million or $(0.20) per basic and diluted share for the first quarter of 2016. The first quarter results were negatively impacted by $1.5 million in business development related expenses and $6.3 million in costs related to the restructuring of a vendor contract. Excluding these expenses, net of the $2.9 million tax effect, EPS was $0.09 per basic share for the quarter.

'I'm very pleased with the strong performances we saw from both of our operating segments during the quarter,'' said Bryan Shinn, president and chief executive officer. ''Continued industry recovery and powerful secular trends are driving record demand for our products and services in Oil and Gas while our Industrial and Specialty Products segment continues to make great progress in growing its bottom line through a combination of strategic price increases and the roll out of more higher margin products.''

First Quarter 2017 Highlights

Total Company

• Revenue totaled $244.8 million compared with $122.5 million for the same period last year, an increase of 100% on a year-over-year basis and an increase of 34% sequentially from the fourth quarter of 2016.
• Overall tons sold totaled 3.4 million, up 49% compared with 2.3 million tons sold in the first quarter of 2016 and an increase of 18% sequentially from the fourth quarter of 2016.
• Contribution margin for the quarter was $59.1 million, up 233% compared with $17.7 million in the same period of the prior year and up 57% sequentially from the fourth quarter of 2016.
• Adjusted EBITDA was $42.7 million compared with Adjusted EBITDA of $5.3 million for the same period last year, an increase of 713% on a year-over-year basis and an increase of 107% sequentially from the fourth quarter of 2016.

Oil and Gas

• Revenue for the quarter totaled $193.0 million compared with $73.9 million in the same period in 2016, an increase of 161% on a year-over-year basis and an increase of 41% sequentially from the fourth quarter of 2016.
• Tons sold totaled 2.5 million, an increase of 79% compared with the 1.4 million tons sold in the first quarter of 2016 and an increase of 22% sequentially compared with the tons sold in the fourth quarter of 2016.
• 67% of tons were sold in basin compared with 75% sold in basin in the fourth quarter of 2016.
• Segment contribution margin was $38.8 million versus $0.9 million in the first quarter of 2016, an increase of 4,464% on a year-over-year basis and an increase of 110% sequentially compared with the fourth quarter of 2016.

Industrial and Specialty Products

• Revenue for the quarter totaled $51.8 million compared with $48.6 million for the same period in 2016, an increase of 7% on a year-over-year basis and an increase of 14% on a sequential basis from the fourth quarter of 2016.
• Tons sold totaled 0.9 million, relatively flat on a year-over-year basis and an increase of 9% on a sequential basis compared with the fourth quarter of 2016.
• Segment contribution margin was $20.2 million compared with $16.9 million in the first quarter of 2016, an increase of 20% on a year-over-year basis and up 6% sequentially compared with the fourth quarter of 2016.

Capital Update

As of March 31, 2017, the Company had $660.9 million in cash and cash equivalents and $46.0 million available under its credit facilities. Total debt at March 31, 2017 was $512.5 million. Capital expenditures in the first quarter totaled $23.6 million and were associated largely with engineering, procurement and construction of the Company's growth projects and maintenance and cost improvement capital projects.

Outlook and Guidance

The Company anticipates that its capital expenditures for 2017 will be in the range of $125 million to $150 million.