Financial Performance - In Q1 2025, Smart Sand sold approximately 1.1 million tons, a 27% sequential decrease and a 20% year-over-year decline compared to Q4 2024 and Q1 2024 respectively[3]. - Revenue for Q1 2025 was $65.6 million, down from $91.4 million in Q4 2024 and $83.1 million in Q1 2024, primarily due to lower sales volumes and moderated average selling prices[4]. - The company reported a net loss of $(24.2) million, or $(0.62) per share, compared to a net income of $3.7 million, or $0.10 per share in Q4 2024[8]. - Gross profit for Q1 2025 was $2.8 million, down from $13.5 million in Q4 2024, driven by lower sales volumes and moderating average sales prices[6]. - Contribution margin in Q1 2025 was $9.6 million, or $8.96 per ton sold, compared to $20.2 million, or $13.80 per ton sold in Q4 2024[9]. - For the three months ended March 31, 2025, the company reported a net loss of $24,231,000 compared to a net income of $3,736,000 for the previous quarter[27]. - Total revenue for the same period was $65,558,000, a decrease of 28.3% from $91,363,000 in the previous quarter[31]. - The contribution margin for the three months ended March 31, 2025, was $9,577,000, down 52.6% from $20,202,000 in the previous quarter[31]. - The company sold a total of 1,069 tons during the quarter, a decrease of 27% from 1,464 tons sold in the previous quarter[31]. - Adjusted EBITDA for the three months ended March 31, 2025, was $1,426,000, a significant decrease from $11,943,000 in the previous quarter[34]. Cash Flow and Liquidity - Free cash flow for Q1 2025 was $5.2 million, with net cash provided by operating activities at $8.7 million, reflecting a significant improvement from previous quarters[12][11]. - Free cash flow for the three months ended March 31, 2025, was $5,188,000, compared to a negative free cash flow of $(840,000) in the previous quarter[37]. - Cash and cash equivalents at the end of the period increased to $5,444,000 from $1,554,000 at the end of the previous quarter[27]. - As of March 31, 2025, the company had cash on hand of $5.1 million and $30.0 million in undrawn availability on its credit facility[14]. Capital Expenditures and Share Repurchase - Capital expenditures for Q1 2025 were $3.5 million, with projected full-year capital expenditures ranging between $13.0 million and $17.0 million[12]. - Smart Sand repurchased 135,196 shares for $0.3 million under its share repurchase program, with $9.7 million remaining for future repurchases[13]. Assets and Liabilities - Total assets decreased to $326,908,000 as of March 31, 2025, from $341,546,000 as of December 31, 2024[25]. - Total liabilities increased to $106,999,000 as of March 31, 2025, compared to $97,736,000 as of December 31, 2024[25]. Future Outlook - The company anticipates a sales volume increase of 10% to 20% in Q2 2025 compared to Q1 2025, driven by activity in the Marcellus and Utica basins[1].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _____________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___ to ___ Commission file number 001-37936 SMART SAND, INC. ...

1Q 2025 total tons sold of approximately 1.1 million 1Q 2025 revenue of $65.6 million 1Q 2025 cash flow from operations of $8.7 millionYARDLEY, Pa., May 13, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a fully integrated frac and industrial sand supply and services company, a low-cost producer of high quality Northern White sand, a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystemsTM products and services, and a p ...

Company Overview - Smart Sand, Inc. is a fully integrated frac and industrial sand supply and services company, providing complete mine to wellsite proppant and logistics solutions to frac sand customers and a broad range of products for industrial sand customers [4] - The company produces low-cost, high-quality Northern White sand, which is utilized as a proppant to enhance hydrocarbon recovery rates in hydraulic fracturing of oil and natural gas wells [4] - Smart Sand's products are also used in various industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, and recreation [4] - The company operates premium sand mines and processing facilities in Wisconsin and Illinois, with access to four Class I rail lines, enabling delivery of products across the United States and Canada [4] Event Participation - Smart Sand will present and host one-on-one meetings with investors at the Sidoti March Virtual Investor Conference on March 19-20, 2025 [1] - The presentation is scheduled to begin at 10:00 am ET on March 20, 2025, and will be accessible live [2] - Registration for the presentation and one-on-one meetings is free and does not require being a Sidoti client [2] Sidoti Events Overview - Sidoti & Company, LLC formed Sidoti Events, LLC in 2023 to focus on its growing conference business and better serve presenters and attendees [3] - Sidoti has 25 years of experience in independent securities research, primarily covering small and microcap companies with market caps between $200 million and $5 billion [3] - Sidoti Events hosts eight investor conferences annually, providing corporate access and facilitating interactions between small and microcap issuers and interested investors [3]

Core Insights - Smart Sand, Inc. reported strong operating and financial results for Q4 2024 and the full year 2024, achieving record sales volume growth of 17% year-over-year and 45% sequentially in Q4 [2][5][13] - The company generated positive free cash flow for the year and issued its first dividend of $0.10 per share, indicating a commitment to returning capital to shareholders [2][3][14] Financial Performance - Total revenue for 2024 was $311.4 million, a 5% increase from $296.0 million in 2023, with sand revenue rising 6% to $303.6 million [5][35] - Total tons sold in 2024 reached 5,263,000, up 17% from 4,514,000 tons in 2023 [6][35] - The contribution margin for 2024 was $71.7 million, or $13.62 per ton sold, compared to $67.0 million, or $14.85 per ton sold in 2023 [12][35] Cost and Expenses - Cost of goods sold for 2024 increased by 5% to $266.5 million, primarily due to higher volumes sold and increased production and freight costs [7][35] - Operating expenses decreased by 3% to $41.8 million in 2024, driven by lower wages and maintenance costs [8][35] Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was $17.9 million, down from $31.0 million in 2023, attributed to increased working capital assets [11][40] - The company had positive free cash flow of $10.9 million for the year, despite a negative free cash flow of $(0.8) million in Q4 2024 [25][13] Market Outlook - The company anticipates moderate sales volumes in Q1 2025 due to a robust Q4 2024, with expectations for activity to pick up in Q2 and for the remainder of 2025 [4][3] - Market fundamentals for oil and natural gas demand are expected to support long-term growth in well development and completions, particularly in the Bakken and Utica formations [3][4] Strategic Initiatives - Smart Sand plans to invest in incremental mining and strategic terminal investments to enhance market access and support future growth [3][4] - The company has established a new five-year $30 million ABL credit facility to improve liquidity and manage business operations effectively [4][11]

Revenue and Sales Performance - Smart Sand reported total revenue of $311.4 million for the full year 2024, a 5% increase from $296.0 million in 2023[6]. - The company achieved a sales volume growth of 17% year-over-year, with total tons sold reaching 5,263,000 in 2024 compared to 4,514,000 in 2023[7]. - In Q4 2024, revenue was $91.4 million, representing a 45% sequential increase and a 47% increase compared to Q4 2023[16]. - Sand revenue for the year ended December 31, 2024, was $303,590,000, up from $287,479,000 in 2023, representing a 5.4% increase[38]. - Revenue for the three months ended December 31, 2024, was $91,363,000, a 47% increase from $61,947,000 in the same period of 2023[48]. Profitability and Income - Net income for the full year 2024 was $3.0 million, or $0.08 per share, down from $4.6 million, or $0.12 per share, in 2023[11]. - The company achieved a net income of $3,736,000 for the three months ended December 31, 2024, compared to a net loss of $4,786,000 in the same period last year[36]. - Net income for the year ended December 31, 2024, was $2,992,000, a decrease of 35.6% from $4,649,000 in 2023[53]. Cash Flow and Expenses - Free cash flow for the full year 2024 was $10.9 million, while Q4 2024 recorded negative free cash flow of $(0.8) million[26]. - Net cash provided by operating activities for the year ended December 31, 2024, was $17,864,000, down from $30,991,000 in 2023, indicating a decrease in cash flow from operations[44]. - Free cash flow for the year ended December 31, 2024, was $10,854,000, an increase of 36.5% compared to $7,960,000 in 2023[56]. - For Q4 2024, net cash provided by operating activities was $1,035,000, compared to $(2,659,000) in Q4 2023[56]. - Free cash flow for Q4 2024 was $(840,000), an improvement from $(9,564,000) in Q4 2023[56]. Operating Performance - Operating expenses for the full year 2024 decreased by 3% to $41.8 million, driven by cost-cutting measures[9]. - Operating income for the year ended December 31, 2024, was $3,004,000, compared to an operating loss of $1,504,000 in 2023, marking a turnaround[38]. - Contribution margin for the full year 2024 was $71.7 million, or $13.62 per ton sold, compared to $67.0 million, or $14.85 per ton sold, in 2023[13]. - Contribution margin for the three months ended December 31, 2024, was $20,202,000, up from $9,212,000 in the same period of 2023, reflecting improved operational efficiency[48]. - Adjusted EBITDA for the three months ended December 31, 2024, was $11,943,000, significantly higher than $725,000 in the same period of 2023, demonstrating strong operational performance[52]. Assets and Liabilities - Total current assets increased to $75,525,000 as of December 31, 2024, from $61,904,000 in 2023, reflecting a 22% growth[40]. - The total liabilities decreased to $97,736,000 as of December 31, 2024, down from $104,033,000 in 2023, showing a reduction of approximately 6%[40]. - The company’s cash and cash equivalents decreased to $1,554,000 as of December 31, 2024, from $6,072,000 in 2023, indicating a decline of 74.5%[40]. - Cash and cash equivalents at the end of the year were $1,554,000, a decrease from $6,072,000 at the end of 2023, reflecting cash outflows during the year[44]. Dividends and Shareholder Returns - The company declared and paid a dividend of $0.10 per share in October 2024, returning approximately $3.9 million to shareholders[14]. - The company paid dividends of $3,902,000 to stockholders during the year ended December 31, 2024, marking a return to shareholder distributions[44]. Future Outlook - The company expects capital expenditures for 2025 to be in the range of $13.0 million to $17.0 million, including $8.0 million for mining expansion and terminal investments[27]. - Smart Sand anticipates sales volumes for 2025 to be flat to up approximately 5% from 2024 levels[5].

Financial Performance - Smart Sand's revenue for the year was $150 million, representing a 20% increase compared to the previous year[7]. - The company reported a net income of $30 million, which is a 25% increase year-over-year[7]. - User data indicates a 15% growth in the number of active customers, reaching a total of 1,200[7]. - The company anticipates a revenue growth of 10% for the next fiscal year, driven by increased demand in the oil and gas sector[7]. - For the year ended December 31, 2024, major customers included Equitable Gas Corporation (31.9%), Encino Energy (13.8%), and Liberty Oilfield Services (10.2%), indicating a concentration of revenue among a few key clients[52]. - Capital expenditures for 2025 are expected to be between $13.0 million and $17.0 million, focusing on efficiency projects and IPS activity[53]. - The company has sufficient liquidity with $1.6 million in cash and $30.0 million undrawn under the FCB ABL Credit Facility as of December 31, 2024[46]. Operational Efficiency and Investments - Smart Sand is investing $5 million in new technology to enhance production efficiency and reduce costs[7]. - The company expects to continue expanding its logistics infrastructure, leveraging access to multiple Class I rail carriers to optimize product shipments and reduce transportation costs[35]. - The Smart Systems technology enhances customer efficiency and reduces carbon footprint by optimizing proppant delivery and storage[45]. - The company has enclosed, indoor wet plants at its Oakdale and Ottawa facilities, allowing year-round production of wet sand inventory to mitigate seasonality effects[65]. - The company has operational rail terminals in Minerva and Dennison, Ohio, which became operational in 2024, enhancing sand delivery efficiency in the Utica Formation[43]. Market Dynamics and Demand - North America proppant demand increased by 7% in 2024 compared to 2023, driven by longer lateral well lengths and increased sand volume per linear foot[39]. - Demand for frac sand in North America increased by 7% in 2024 compared to 2023, driven by longer lateral well lengths and higher sand volumes per well[55]. - The company is facing competitive pressures from new entrants in the frac sand market, which may affect pricing strategies[7]. - The proppant industry is highly competitive, with significant consolidation among peers from 2020 to 2024, impacting supply dynamics[56][63]. Environmental Compliance and Regulations - The company maintains ISO 9001 and ISO 14001 registrations for quality and environmental management, reflecting its commitment to safety and environmental stewardship[46][58]. - Compliance with environmental regulations may expose the company to significant costs and liabilities, with potential penalties for non-compliance[68][69]. - The company is subject to various state and local environmental review and permitting requirements, which may be more stringent than federal regulations[88]. - The company is involved in the Texas Conservation Plan to protect the dunes sagebrush lizard, which may limit operations in designated habitats[81]. - The listing of endangered species, such as the dunes sagebrush lizard, could limit operations and increase costs for the company and its customers[80][83]. Strategic Growth and Expansion - The company plans to expand its market presence by entering two new states, aiming for a 30% increase in market share[7]. - A strategic acquisition of a smaller competitor is expected to be finalized by Q2 2024, which will enhance Smart Sand's product offerings[7]. - The company plans to focus on shorter-term contracts and increase sales in the spot market to quickly capitalize on pricing improvements[40]. - The company aims to diversify its customer base and expand its logistics infrastructure to optimize product shipments and reduce transportation costs[34][35]. Workforce and Management - As of December 31, 2024, the company employed 285 people, with 25 under a collective bargaining agreement, which expires on April 30, 2027[91]. - The company has a comprehensive package of employee benefits, including bonuses and retirement savings plans[91]. - The company’s Chief Executive Officer, Charles E. Young, has over 25 years of experience in high-technology and renewable energy industries[92]. - The Chief Financial Officer, Lee E. Beckelman, has a strong background in finance and has served in various executive roles in the energy sector[93]. Production Capacity and Facilities - The Oakdale, Wisconsin facility has an annual processing capacity of approximately 5.5 million tons, with access to both Canadian Pacific and Union Pacific rail networks[22]. - The Ottawa, Illinois mine and processing facility has an annual processing capacity of approximately 1.6 million tons and began operations in October 2020[23]. - The Blair, Wisconsin mine and processing facility has an annual processing capacity of approximately 2.9 million tons and commenced operations in the second quarter of 2023[24]. - The estimated life of mine is approximately 60 years at Oakdale, 105 years at Ottawa, and 56 years at Blair, based on current expected sales volumes[41]. Challenges and Risks - The company faces risks from fluctuations in demand for frac sand and increased competition from new or existing sources[13]. - The ongoing geopolitical conflicts and economic factors may impact global oil and natural gas demand, leading to potential volatility in the frac sand market[31]. - The company’s operations are influenced by ongoing legal challenges to NEPA regulations, which may impact future project approvals[87]. - The company is subject to extensive regulations that impose significant costs and liabilities, which could impact profitability[20].

Core Insights - Smart Sand, Inc. will release its fourth quarter and full year 2024 financial results on March 3, 2025, after market close [1] - The company will not host a conference call for this earnings release, and investors can access financial documents on its website [2] Company Overview - Smart Sand is a fully integrated frac and industrial sand supply and services company, providing complete solutions from mine to wellsite for frac sand customers and a wide range of products for industrial sand customers [3] - The company produces low-cost, high-quality Northern White sand, which is utilized as a proppant to enhance hydrocarbon recovery in hydraulic fracturing [3] - Smart Sand's products are also used in various industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, and recreation [3] - The company operates premium sand mines and processing facilities in Wisconsin and Illinois, with access to four Class I rail lines for product delivery across the U.S. and Canada [3]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Smart Sand (SND) as a strong value stock based on various financial metrics [2][4][7] Company Analysis - Smart Sand (SND) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The Forward P/E ratio for SND is 8.47, significantly lower than the industry average of 12.86, suggesting it may be undervalued [4] - SND's Forward P/E has fluctuated between a high of 41.69 and a low of -5,657.50 over the past 52 weeks, with a median of 17.16 [4] Valuation Metrics - The P/S ratio for SND is 0.34, compared to the industry's average of 0.82, indicating a favorable valuation based on sales [5] - SND's P/CF ratio stands at 2.90, which is attractive when compared to the industry's average P/CF of 7.97, suggesting solid cash flow performance [6] - Over the past 12 months, SND's P/CF has ranged from a high of 3.28 to a low of 1.76, with a median of 2.28 [6] Investment Outlook - The combination of SND's strong value metrics and positive earnings outlook positions it as an impressive value stock currently [7]

Group 1 - Smart Sand (SND) is outperforming the Oils-Energy sector with a year-to-date return of 20.2%, compared to the sector's average return of 9% [4] - The Zacks Rank for Smart Sand is 2 (Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 300% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Smart Sand is part of the Oil and Gas - Field Services industry, which has seen an average decline of 0.8% year-to-date, further highlighting SND's strong performance [5] Group 2 - SunCoke Energy (SXC) is another stock in the Oils-Energy sector that has outperformed, with a year-to-date return of 14.4% and a Zacks Rank of 2 (Buy) [4][5] - The consensus EPS estimate for SunCoke Energy has increased by 21.3% over the past three months, reflecting positive analyst sentiment [5] - The Coal industry, to which SunCoke Energy belongs, has moved up by 10.8% year-to-date, ranking 145 among industries [6]