Financial Performance - In Q3 2024, Smart Sand sold approximately 1.2 million tons, a 7% decrease sequentially and a 2% decrease year-over-year[3]. - Q3 2024 revenue was $63.2 million, down from $73.8 million in Q2 2024 and $76.9 million in Q3 2023, primarily due to lower sales volumes and average selling prices[4]. - The company reported a net loss before income tax of $5.2 million in Q3 2024, compared to a net income of $1.9 million in Q2 2024 and $4.8 million in Q3 2023[5]. - Adjusted EBITDA for Q3 2024 was $5.7 million, a decrease from $11.9 million in Q2 2024 and $13.2 million in Q3 2023, driven by lower contribution margin per ton sold[9]. - Total revenue for the three months ended September 30, 2024, was $63,158 thousand, a decrease from $76,900 thousand in the same period last year, representing a decline of approximately 17.9%[26]. - Adjusted EBITDA for the three months ended September 30, 2024, was $5,720 thousand, down from $13,200 thousand in the same period last year, reflecting a decrease of about 56.6%[30]. - The company reported a net loss of $98 thousand for the three months ended September 30, 2024, compared to a net income of $6,727 thousand in the same period last year[22]. Cash Flow and Capital Expenditures - Free cash flow for Q3 2024 was $3.7 million, with net cash provided by operating activities at $5.8 million and capital expenditures of $2.1 million[11]. - Free cash flow for the three months ended September 30, 2024, was $3,675,000, a decrease from $5,596,000 for the same period in 2023[33]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $5,810 thousand, compared to $12,477 thousand for the same period last year, indicating a decline of approximately 53.5%[22]. - Cash and cash equivalents at the end of the period were $7,215 thousand, an increase from $6,257 thousand at the beginning of the period[22]. - Purchases of property, plant, and equipment amounted to $2,135,000 for the three months ended September 30, 2024, up from $6,881,000 for the same period in 2023[33]. Assets and Liabilities - Total current assets increased to $64,747 thousand as of September 30, 2024, from $61,904 thousand as of December 31, 2023, marking an increase of about 4.5%[21]. - Total liabilities decreased to $92,261 thousand as of September 30, 2024, from $104,033 thousand as of December 31, 2023, a reduction of approximately 11.3%[21]. - The company’s long-term debt increased to $9,906 thousand as of September 30, 2024, from $3,449 thousand as of December 31, 2023, indicating a significant increase of approximately 187.5%[21]. Market Outlook and Strategic Initiatives - The company anticipates growing demand for natural gas in the US and Canadian markets, expecting increased activity and volumes through the end of 2024 and into 2025[2]. - The company declared a special dividend of $0.10 per share, paid on October 28, 2024, and announced a share repurchase program of up to $10 million[12][13]. - Smart Sand established a new five-year $30 million ABL credit facility with First Citizens Bank to enhance funding flexibility[1]. Sales and Contribution Margin - The contribution margin for Q3 2024 was $13.2 million, or $11.09 per ton sold, down from $19.8 million or $15.53 per ton sold in Q2 2024[8]. - Contribution margin for the three months ended September 30, 2024, was $13,187 thousand, down from $20,971 thousand in the same period last year, reflecting a decrease of about 37.1%[26]. - Total tons sold for the three months ended September 30, 2024, were 1,189 tons, a decrease from 1,219 tons in the same period last year, representing a decline of approximately 2.5%[26].

Financial Performance - Total revenue for Q3 2024 was $63.16 million, a decrease of 18% compared to $76.90 million in Q3 2023[89] - Sand revenue decreased by 17% to $62.23 million in Q3 2024 from $74.87 million in Q3 2023[89] - Gross profit for Q3 2024 was $6.49 million, down 55% from $14.40 million in Q3 2023[89] - Operating income for Q3 2024 was a loss of $4.91 million, compared to an operating income of $4.93 million in Q3 2023, representing a 200% decline[89] - Net loss for Q3 2024 was $0.10 million, a significant decrease from a net income of $6.73 million in Q3 2023, marking a 101% decline[89] - Revenues for the three months ended September 30, 2024, were $63.2 million, a decrease of 17% from $76.9 million in the same period of 2023[1] - Sand revenue was $62.2 million for the three months ended September 30, 2024, down from $74.9 million in 2023, attributed to lower sales volumes and average prices[1] - Gross profit for the three months ended September 30, 2024, was $6.5 million, compared to $14.4 million in 2023, reflecting a decline due to lower sales volumes and prices[3] - Net loss for the three months ended September 30, 2024, was $(0.1) million, a significant decline from net income of $6.7 million in the same period of 2023[7] - For the nine months ended September 30, 2024, total revenues were $220.0 million, down 6% from $234.0 million in 2023[100] - Sand revenue for the nine months ended September 30, 2024, was $213.0 million, a decrease from $227.3 million in 2023, despite a 9% increase in total volumes sold[100] - Gross profit for the nine months ended September 30, 2024, was $31.4 million, down from $38.7 million in 2023, primarily due to lower average sales prices[103] - Net loss for the nine months ended September 30, 2024, was $(0.7) million, compared to net income of $9.4 million in 2023[107] Operating Expenses and Cash Flow - Operating expenses increased to $9.7 million for the three months ended September 30, 2024, from $8.9 million in 2023, primarily due to banking and legal fees related to refinancing[4] - Contribution margin for the three months ended September 30, 2024, was $13.2 million, compared to $21.0 million in 2023, reflecting a decline of approximately 37.0%[113] - Adjusted EBITDA for the three months ended September 30, 2024, was $5.7 million, down from $13.2 million in the same period of 2023, a decrease of about 56.8%[117] - Free cash flow for the three months ended September 30, 2024, was $3.7 million, compared to $5.6 million in 2023, representing a decline of approximately 34.1%[121] - As of September 30, 2024, cash on hand was $7.2 million, with $30.0 million in undrawn availability on the FCB ABL Credit Facility[122] Capital Expenditures and Dividends - Capital expenditures for 2024 are expected to be between $8.0 million and $10.0 million, primarily for process improvement and efficiency projects[126] - The company declared a special dividend of $0.10 per share, amounting to approximately $3.9 million, paid on October 28, 2024[124] Market Conditions and Strategic Changes - The company experienced a slowdown in sand sales activity in the latter half of 2023 due to customers frontloading their budgets[84] - Pricing for sand has trended downward since the second half of 2023 due to stabilized supply and demand[85] - The company has expanded its product line to include Industrial Products Solutions (IPS) to diversify its customer base[82] - The company has acquired new terminal operations in Ohio, enhancing its logistics capabilities for efficient delivery[80] Tax and Accounting - The effective tax rate for the nine months ended September 30, 2024, was approximately 74.7%, compared to (60.8)% in 2023[105] - There have been no material changes in critical accounting policies and procedures during the nine months ended September 30, 2024[135] - Management's estimates in financial statements include impairment considerations, estimated costs of future asset retirement obligations, and collectability of receivables[136] Economic Outlook and Risks - Future economic performance remains uncertain due to high inflation and other economic concerns, with potential material adverse effects on financial position and results of operations[137] - The majority of the company's debt is financed under fixed interest rates, with no outstanding borrowings under the FCB ABL Credit Facility as of September 30, 2024[139] - There have been no additional material changes to the company's exposure to market risks during the nine months ended September 30, 2024[140]

Core Insights - Smart Sand, Inc. reported a total tons sold of approximately 1.2 million in Q3 2024, with revenues of $63.2 million, a net loss before income taxes of $(5.2) million, and adjusted EBITDA of $5.7 million [1][5][9]. Financial Performance - Tons sold in Q3 2024 were approximately 1,189,000, representing a 7% decrease sequentially and a 2% decrease year-over-year [4]. - Revenue for Q3 2024 was $63.2 million, down from $73.8 million in Q2 2024 and $76.9 million in Q3 2023, primarily due to lower sales volumes and average selling prices [5]. - The company experienced a net loss before income tax of $(5.2) million in Q3 2024, compared to a net income of $1.9 million in Q2 2024 and $4.8 million in Q3 2023 [6]. - Adjusted EBITDA decreased to $5.7 million in Q3 2024 from $11.9 million in Q2 2024 and $13.2 million in Q3 2023, mainly due to lower contribution margin per ton sold [9]. Cash Flow and Capital Management - Net cash provided by operating activities was $5.8 million in Q3 2024, down from $14.9 million in Q2 2024 and $12.5 million in Q3 2023 [10]. - Free cash flow for Q3 2024 was $3.7 million, with capital expenditures of $2.1 million [11]. - The company declared a special dividend of $0.10 per share and announced a share buyback plan of up to $10 million [12][13]. Strategic Initiatives - Smart Sand established a new five-year $30 million ABL credit facility with First Citizens Bank, providing flexible funding for future opportunities [2]. - The company is revamping its SmartSystem fleet configuration to enhance operational efficiency, with a rollout expected in early 2025 [7]. Market Outlook - The company remains optimistic about the long-term fundamentals of the oil and gas industry, anticipating strong demand for natural gas in the US and Canada, and increased oil activity in the Utica basin [3].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Smart Sand (SND) as a strong value stock based on its financial metrics and Zacks ranking system [1][2][7] Company Overview - Smart Sand (SND) currently holds a Zacks Rank of 1 (Strong Buy) and has a Value grade of A, indicating strong potential for value investors [4] - The stock has a P/E ratio of 8.06, significantly lower than the industry average of 11.67, 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 year, with a median of 18.26 [4] Valuation Metrics - The P/S ratio for SND is 0.3, compared to the industry average of 0.81, reinforcing the notion of undervaluation [5] - SND has a P/CF ratio of 2.64, which is much lower than the industry's average of 7.26, indicating strong cash flow relative to its price [6] - Over the past 52 weeks, SND's P/CF has ranged from a high of 2.93 to a low of 1.76, with a median of 2.25 [6] Investment Outlook - The combination of SND's favorable valuation metrics and strong earnings outlook positions it as an impressive value stock currently [7]

Core Insights - The article emphasizes the importance of earnings estimates and revisions in identifying winning stocks, while also acknowledging the diverse strategies investors may adopt [1] - Value investing is highlighted as a particularly popular and successful strategy across various market conditions, utilizing established valuation metrics [2] Company Analysis - Smart Sand (SND) is identified as a strong candidate for value investors, currently holding a Zacks Rank of 1 (Strong Buy) and an A grade in the Value category [3] - SND has a Price-to-Sales (P/S) ratio of 0.32, significantly lower than the industry average of 0.86, indicating potential undervaluation [4] - The company also has a Price-to-Cash Flow (P/CF) ratio of 2.81, compared to the industry average of 7.86, further suggesting that SND may be undervalued based on its cash flow outlook [5] - The analysis indicates that SND's stock is likely undervalued, supported by a strong earnings outlook, making it an impressive value stock at present [6]

Core Viewpoint - Smart Sand reported better than expected performance in Q2 2024, with strong volumes, revenues, margins, EBITDA, and free cash flow despite a backdrop of weakening U.S. oilfield activity levels [1][3] Sales and Financial Performance - Tons sold in Q2 2024 reached 1.274 million, an 18% year-over-year growth, although sequentially it was down from a record 1.336 million in Q1 2024 [2] - Revenue for Q2 2024 was $73.8 million, reflecting a slight 1% decrease year-over-year and an 11% decrease sequentially [2] - Contribution margin per ton was $15.53, exceeding guidance and showing improvement from previous quarters [2] - EBITDA for Q2 2024 was $11.9 million, with an EBITDA margin of 16%, marking a 27% sequential growth [2] - Free cash flow for Q2 2024 was $13.5 million, a significant recovery from negative free cash flow in previous quarters [2] Operational Efficiency - The company implemented several efficiency measures that led to improved production costs and administrative expenses, positively impacting contribution margin, adjusted EBITDA, and free cash flow [3][7] - Management noted that they are operating at just over 50% of capacity, indicating potential for increased production as demand rises [2][7] Market Outlook - Smart Sand continues to see strong demand in its main operating basins, despite potential slowdowns in natural gas basins in the second half of the year [3][4] - The company is preparing to adjust operations in response to any slowdown in activity levels [3][4] - Long-term fundamentals for natural gas activity are viewed as strong, with expectations for increased activity in 2025 driven by LNG exports and power demand [4][9] Strategic Developments - Smart Sand plans to begin sales into the Ohio Utica in Q3 2024, targeting the oil window of the Utica [5] - The company is also expected to provide updates on sales volumes from the Bakken and Canada during the upcoming call [5] Financial Health - The balance sheet shows a low net debt to annualized EBITDA ratio of 0.1x, indicating ample liquidity [6] - There are discussions about potential return of capital, with a projected upturn in activity in 2025 possibly leading to a base dividend [6]

2Q 2024 total tons sold of approximately 1.3 million 2Q 2024 revenue of $73.8 million 2Q 2024 net income before income taxes $1.9 million 2Q 2024 adjusted EBITDA of $11.9 million YARDLEY, Penn., Aug. 13, 2024 /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 frac sand, a proppant logistics solutions provider through both its in-basin transloading terminals ...

Core Viewpoint - Smart Sand, Inc. will release its first quarter financial results on August 13, 2024, and will hold a conference call for investors on August 14, 2024, to discuss these results and recent events [1]. Company Overview - Smart Sand is a fully integrated frac and industrial sand supply and services company, providing complete mine to wellsite proppant and logistics solutions [5]. - The company produces low-cost, high-quality Northern White sand, which is utilized as a proppant to enhance hydrocarbon recovery rates in hydraulic fracturing [5]. - Smart Sand's products are also used in various industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, and recreation [5]. - The company operates premium sand mines and processing facilities in Wisconsin and Illinois, with access to four Class I rail lines, enabling product delivery across the United States and Canada [5].

Financial Data and Key Metrics Changes - In Q1 2024, the company sold 1.3 million tons of sand, a 31% increase from 1 million tons in Q4 2023 [27] - Total revenues for Q1 2024 were $83.1 million, up from $61.9 million in Q4 2023, primarily due to higher sand sales volumes and improved smart system revenues [27][28] - Contribution margin improved to $18.5 million in Q1 2024, compared to $9.2 million in Q4 2023, with adjusted EBITDA increasing to $9.3 million from $0.7 million [35][43] Business Line Data and Key Metrics Changes - The company has made significant investments in hydraulic mining to improve efficiency and reduce costs, which is expected to enhance yield by $1 to $2 per ton [7][40] - Changes in the wet plant process have allowed the company to wash out less demanded sand sizes, improving overall efficiency [5][6] Market Data and Key Metrics Changes - The company is optimistic about the long-term fundamentals of the natural gas market, despite short-term fluctuations due to lower natural gas prices [19][24] - The company expects the Utica basin to provide growth opportunities due to increasing oil drilling activities [21][38] Company Strategy and Development Direction - The company aims to expand its Northern White sand franchise, which is considered superior for energy and industrial applications [36] - Investments in new terminals in Northeast Ohio are intended to enhance market presence in the Utica shale basin [37] - The company is focused on organizational improvements to increase efficiency and sustainability in mining, processing, and logistics operations [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while there may be a pullback in demand in the Marcellus due to lower natural gas prices, increased activity in the Bakken and Canada may mitigate this [47] - The company expects to be free cash flow positive for the year despite a negative cash flow in Q1 due to increased working capital investments [49] Other Important Information - The company ended Q1 2024 with $14 million in borrowings on its credit facility and approximately $4.6 million in cash and cash equivalents [45] - The company plans to formalize its approach to returning value to shareholders later in 2024 [22][23] Q&A Session Summary Question: Can you discuss the capital improvements to improve yield in your plants? - Management highlighted significant investments in hydraulic mining to reduce equipment needs and improve efficiency [4] Question: Are there still opportunities to grow your asset base? - The company currently has 10 million tons of Northern White capacity and is exploring terminal access to enhance sand movement [9][11] Question: How do you see the dynamics of the supply-demand in the US sand market? - The Northern White market remains in relative supply-demand balance, with stable pricing expected [60][62] Question: What percentage of the business is currently industrial sand, and how do you see it evolving? - Currently, industrial sand accounts for about 5% of total volumes, with a goal to grow it to at least 10% over the next few years [67]

Smart Sand, Inc. Announces First Quarter 2024 Results YARDLEY, Pennsylvania, May 13, 2024 – 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 frac sand, a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystems products and services and a provider of industrial product solutions, today announced results for the first quarter ...