Smart Sand, Inc. Announces Third Quarter 2020 Results
Smart Sand, Inc. (NASDAQ: SND) reported its 3Q 2020 results, with revenues at $23.4 million, down from $65.7 million year-over-year, driven by depressed oil prices and reduced demand due to COVID-19. Net income soared to $36.3 million, largely due to a $39.9 million bargain purchase gain from the acquisition of Eagle Materials' proppant business. Total tons sold reached 309,000, showing a sequential increase but a significant decline from 611,000 tons in 3Q 2019. Adjusted EBITDA fell to $6.1 million, reflecting lower revenue and volumes sold.
- Net income increased to $36.3 million, primarily due to a bargain purchase gain.
- Acquisition of Eagle Materials' proppant business enhances capabilities, allowing access to more logistics options.
- Revenue decreased to $23.4 million from $65.7 million year-over-year.
- Total tons sold dropped to 309,000 from 611,000 tons in the same quarter last year.
- Adjusted EBITDA declined to $6.1 million, down from $28.8 million year-over-year.
- 3Q 2020 Revenue of
$23.4 million - 3Q 2020 total tons sold of approximately 309,000
- 3Q 2020 Net Income of
$36.3 million - 3Q 2020 Adjusted EBITDA of
$6.1 million - 3Q 2020 Contribution Margin of
$10.4 million
THE WOODLANDS, Texas, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a fully integrated frac sand supply and services company that is a low-cost producer of high quality Northern White frac sand and provider of proppant logistics and storage solutions through its in-basin transloading terminal and SmartSystemsTM products and services, today announced results for the third quarter 2020.
Charles Young, Smart Sand’s Chief Executive Officer, stated “While these continue to be difficult times to operate in, Smart Sand continued to demonstrate its ability to manage successfully through volatile operating cycles for our industry. I want to thank all of our employees for their continued diligence and efforts to support the company through challenging times.”
“We continue to stay focused on enhancing our mine to wellsite solutions capabilities to provide sustainable and efficient sand supply and logistics services to our customers. The acquisition of Eagle Materials’ proppant business is a great example of our strategy to acquire strategically complementary assets at attractive valuations to enhance our capabilities to be a premier, long-term provider of northern white sand in the market place.”
Business Combination
On September 18, 2020, we acquired the Oil and Gas Proppants Segment of Eagle Materials Inc, which includes frac sand mines and related processing facilities in Utica, Illinois and New Auburn, Wisconsin, with approximately 3.5 million tons of total annual processing capacity, 1.6 million tons of which has access to the BNSF Class I rail line through the Peru, Illinois transload facility. The transaction is considered a bargain purchase whereby we purchased total net assets with a fair value of
We believe this acquisition broadens our mine to wellsite capabilities by adding high quality sand mining and processing assets coupled with enhanced logistics options which provide direct access to an additional Class I rail line. We believe these additional mining and logistics resources help secure our ability to be the preferred provider of Northern White Sand in the proppants market. With this acquisition we believe we will be able to expand our footprint into new basins, gain access to new and enhanced logistics options, broaden our customer base and complement our mine to wellsite supply and logistics capabilities.
Third Quarter 2020 Results
Revenues were
Tons sold were approximately 309,000 in the third quarter of 2020, compared with approximately 208,000 tons in the second quarter of 2020 and 611,000 tons in the third quarter of 2019. Total volumes sold improved sequentially, though they continue to be negatively impacted by depressed oil prices driven by Organization of the Petroleum Exporting Countries (“OPEC”) oversupply and decreased demand due to the COVID-19 coronavirus pandemic.
Net income was
Adjusted EBITDA was
Contribution margin was
Capital Expenditures
Our primary sources of liquidity are cash on hand, cash flow generated from operations and available borrowings under the ABL Credit Facility and the Acquisition Liquidity Support Facility. As of September 30, 2020, cash on hand was
Market Update
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FAQ
What was Smart Sand's revenue for 3Q 2020?
How much net income did Smart Sand declare for 3Q 2020?
What factors affected Smart Sand's revenue in 3Q 2020?
How many tons of product did Smart Sand sell in 3Q 2020?
What was the adjusted EBITDA for Smart Sand in 3Q 2020?
