Smart Sand, Inc. (NASDAQ:SND) Q1 2020 Earnings Conference Call May 6, 2020 10:00 AM ET Company Participants Josh Jayne - Finance Manager Chuck Young - CEO & Director Lee Beckelman - CFO William Young - COO Conference Call Participants Lucas Pipes - B. Riley FBR, Inc. Stephen Gengaro - Stifel, Nicolaus & Company Dylan Glosser - Simmons & Company International Operator Ladies and gentlemen, thank you for standing by, and welcome to the Smart Sand, Inc. First Quarter 2020 Earnings Conference Call. [Operator In ...

For the Quarterly Period Ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___ to ___ 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 Commission file number 001-37936 SMART SAND, INC. ...

@ IS O 4 smartsand® February 2020 Investor Presentation Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters iden ...

Smart Sand, Inc. (NASDAQ:SND) Q4 2019 Earnings Conference Call February 26, 2020 10:00 AM ET Company Participants Josh Jayne - Finance Manager Charles Young - CEO & Director Lee Beckelman - CFO William Young - COO Conference Call Participants John Watson - Simmons Energy Daniel Day - B. Riley FBR, Inc. George O'Leary - Tudor, Pickering, Holt & Co. Stephen Gengaro - Stifel, Nicolaus & Company Operator Ladies and gentlemen, thank you for standing by, and welcome to the Smart Sand's Inc. Fourth Quarter 2019 Ea ...

Financial Performance - For the year ended December 31, 2019, Smart Sand generated net income of approximately $31.6 million, an increase of 68% compared to $18.7 million in 2018[18]. - Adjusted EBITDA for 2019 was approximately $87.1 million, up 32% from $66.0 million in 2018[18]. - The company has a cash balance of $2.6 million and an undrawn availability of $17.5 million under a $20 million senior secured asset-based lending credit facility as of December 31, 2019[26]. - Proppant demand in North America was approximately 111 million tons in 2019, a 5% increase from 105 million tons in 2018, with 2020 demand expected to remain flat at 111 million tons[39]. - For the year ended December 31, 2019, major customers included Liberty (23.8%), Rice Energy (19.0%), Hess Corporation (15.5%), and U.S. Well Services (14.7%), indicating a concentration of revenue among a few key clients[35]. Operations and Facilities - The Oakdale facility has approximately 316 million tons of proven recoverable sand reserves, with a current annual nameplate processing capacity of 5.5 million tons[15]. - The company operates a unit train capable transloading terminal in Van Hook, North Dakota, which became operational in April 2018, enhancing delivery options for customers in the Bakken Formation[16]. - Smart Sand's Oakdale facility has a minimum implied proven reserve life of approximately 57 years based on current processing capacity, with potential expansion to 9 million tons per year[22]. - The company has expanded its transloading terminal in Van Hook, North Dakota, which has allowed for more efficient delivery options and an expanded customer base[24]. - The company’s logistics infrastructure includes a facility capable of accommodating multiple unit trains simultaneously, which enhances operational efficiency and reduces transportation costs[25]. Market Trends and Demand - The market for frac sand has seen fluctuations, with a trend towards spot market purchases rather than long-term contracts by customers[20]. - Demand for frac sand is projected to remain strong in regions where regional sand is not widely available, such as the Bakken, Marcellus, and Utica formations[27]. - Demand for frac sand is driven by advancements in drilling technology, with an expected increase in proppant usage per well from 6,600 tons in 2019 to approximately 7,600 tons by the end of 2020[41]. - In-basin demand for sand in the Permian basin has more than tripled from 2017 to 2019, highlighting a substantial increase in market demand[42]. - The supply of high-quality Northern White frac sand is limited to specific areas, primarily in western Wisconsin, Minnesota, and Illinois, which constrains economic viability for new facilities[43]. Competitive Positioning - Smart Sand's competitive strengths include a strategically located high-quality reserve base and a low-cost structure due to the proximity of its mine and processing facilities[22]. - The company is positioned competitively due to low production costs, low debt levels, and patented SmartSystems wellsite proppant storage solutions[54]. - The proppant industry is highly competitive, with numerous large and small producers, including Badger Mining Corporation and U.S. Silica Holdings, Inc.[53]. - Competitors in the Northern White frac sand market have reduced capacity due to a shift towards finer sands, impacting the production of coarser grades[44]. Environmental and Safety Compliance - The company is committed to safety and environmental stewardship, having received ISO 9001 and ISO 14001 certifications for its management systems[26]. - The company has maintained ISO 9001/14001-2015 environmental and quality management systems for the past five years, demonstrating a commitment to environmental standards[45]. - The company was accepted as a Tier 1 participant in Wisconsin's voluntary Green Tier program in August 2014, demonstrating a strong record of environmental compliance[74]. - The company is subject to various state and local environmental review and permitting requirements, which may be more stringent than federal regulations[72]. - The company closely monitors airborne respirable silica at its sites, with potential capital expenditures required if exposure limits are significantly lowered[70]. Strategic Initiatives - The company plans to increase focus on shorter-term contracts and spot market sales due to customer reluctance for long-term contracts[28]. - The company aims to optimize its logistics infrastructure to maximize product shipment rates and lower transportation costs through dual-served rail capabilities[25]. - The company is developing new transload technology to complement existing solutions, enhancing its service offerings[17]. - The company continues to evaluate and expand its SmartSystems wellsite proppant storage solutions to enhance service offerings and reduce costs for customers[36]. - The company plans to articulate its ESG goals and vision for carbon neutrality in 2020, aligning with global sustainability movements[47].

Smart Sand, Inc. (NASDAQ:SND) Q3 2019 Earnings Conference Call November 6, 2019 10:00 AM ET Company Participants Josh Jayne - Finance Manager Charles Young - Chief Executive Officer Lee Beckelman - Chief Financial Officer William John Young - Chief Operating Officer Conference Call Participants John Watson - Simmons Energy George O’Leary - Tudor, Pickering, Holt & Co. Stephen Gengaro - Stifel Financial Corp. Lucas Pipes - B. Riley FBR, Inc. Operator Ladies and gentlemen, thank you for standing by, and welco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _____________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2019 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, I ...

Financial Data and Key Metrics Changes - Smart Sand reported total revenues of $67.9 million in Q2 2019, an increase of $16.1 million from $51.8 million in Q1 2019 [19] - Adjusted EBITDA for Q2 2019 was $26.2 million, with net income of approximately $14.3 million, reflecting strong performance driven by increased sales volumes [24] - The company reduced total debt from $52.6 million at the end of Q1 to $46.6 million at the end of Q2 2019 [11] Business Line Data and Key Metrics Changes - Sales volume increased to approximately 741,000 tons in Q2 2019, a 14% increase over Q1 2019 [18] - Sand sales revenue rose to $31.4 million in Q2 from $25.6 million in Q1, while logistics revenue remained stable at approximately $20.3 million [19][20] - Contribution margin per ton increased to $41.80 in Q2 from $26.35 in Q1, primarily due to higher shortfall revenue [22] Market Data and Key Metrics Changes - Spot volumes represented 19% of total sales volumes in Q2 2019, with increased penetration in the Bakken, Marcellus, and Utica basins [10] - Approximately 50% of sales volumes are now directed to the Western United States, with about one-third to the Northeast and around 10% to Southern regions including the Permian basin [32] Company Strategy and Development Direction - The company focuses on supporting long-term contracted customers, extending spot market business, and maintaining low debt levels [6] - Smart Sand has rebranded its wellsite storage solutions as SmartSystems, which includes storage silos and aims to enhance logistics efficiency [7] - The company emphasizes the importance of quality and consistency in sand supply to meet customer needs [8] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for Q3 2019, expecting sales volumes between 625,000 to 725,000 tons, influenced by mixed customer expectations for activity levels [40] - The company anticipates continued positive cash flow from operations and plans to manage capital spending to minimize borrowings [25] Other Important Information - The company recognized $16.3 million in shortfall revenue in Q2, significantly higher than $5.8 million in Q1, providing a stable revenue source [20] - Capital expenditures for Q2 amounted to $5.4 million, with a total year-to-date spend of $13.9 million, primarily for SmartDepot silos and efficiency upgrades [24] Q&A Session Summary Question: Pricing trends for Northern White sand - Management noted that pricing for 100-mesh and 40/70 sands remains strong, with spot pricing flat to slightly down [29] Question: Status of shortfall payments from customers in litigation - Shortfall payments are included in receivables and have not yet contributed to cash flow; management remains confident in contract enforcement [31] Question: Breakdown of sales volumes by region - Approximately 50% of volumes are directed to the Western U.S., one-third to the Northeast, and around 10% to Southern regions [32] Question: Impact of shortfall revenue on EBITDA - Shortfall revenue is considered contractual payments owed, and while it contributes to EBITDA, management refrained from detailed comments due to ongoing litigation [34][35] Question: Outlook for completions activity in the second half - Management indicated mixed expectations from customers, leading to conservative guidance for Q3 [40] Question: Profitability of the extended EQT contract - Management did not disclose specific profitability details but stated it is consistent with existing agreements [42] Question: Operational status of SmartSystems - Three SmartSystems are currently operational, receiving positive feedback from customers, with plans for further deployment [43]

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) Unaudited financial statements show asset and liability growth, increased net income, and a going concern risk from the Credit Facility's 2020 maturity [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets detail assets, liabilities, and equity, impacted by new lease accounting and credit facility reclassification Condensed Consolidated Balance Sheets Summary | Financial Metric | June 30, 2019 (Unaudited, in thousands) | December 31, 2018 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $68,499 | $50,096 | | **Total Assets** | $372,501 | $320,292 | | **Total Current Liabilities** | $75,265 | $24,652 | | **Total Liabilities** | $143,133 | $110,932 | | **Total Stockholders' Equity** | $229,368 | $209,360 | - The significant increase in current liabilities is primarily due to the reclassification of the Credit Facility (**$38.3 million**) to the current portion of long-term debt, as it matures on June 30, 2020[73](index=73&type=chunk)[74](index=74&type=chunk) - The company adopted new lease accounting standards (ASC 842) on January 1, 2019, resulting in the recognition of **$32.4 million** in operating right-of-use assets and corresponding lease liabilities[11](index=11&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) The income statements show revenue and net income growth for both the quarter and six-month periods ending June 30, 2019 Condensed Consolidated Income Statements Summary | Metric (in thousands, except per share) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $67,941 | $54,448 | $119,716 | $97,076 | | **Gross Profit** | $24,873 | $19,770 | $36,043 | $26,985 | | **Operating Income** | $19,205 | $12,909 | $25,156 | $14,263 | | **Net Income** | $14,276 | $10,021 | $18,309 | $10,996 | | **Diluted EPS** | $0.36 | $0.25 | $0.46 | $0.27 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements highlight changes in operating, investing, and financing activities, showing a net decrease in cash for the period Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $17,403 | $18,913 | | **Net cash used in investing activities** | $(13,869) | $(96,719) | | **Net cash (used in) provided by financing activities** | $(3,747) | $44,324 | | **Net decrease in cash and cash equivalents** | $(213) | $(33,482) | | **Cash and cash equivalents at end of period** | $1,253 | $1,745 | - Investing activities in H1 2019 were significantly lower at **$13.9 million** compared to **$96.7 million** in H1 2018, which included acquisitions and a major facility expansion[26](index=26&type=chunk)[165](index=165&type=chunk) - Financing activities in H1 2019 showed a net cash use of **$3.7 million**, primarily for debt repayment, contrasting with a net cash provision of **$44.3 million** in H1 2018 from credit facility proceeds[26](index=26&type=chunk)[166](index=166&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business operations, a 'Going Concern' risk, increased shortfall revenue, and pending litigation over significant receivables - **Going Concern:** The company's Credit Facility matures on June 30, 2020. Without refinancing, this raises substantial doubt about the company's ability to continue as a going concern. The company is pursuing refinancing plans[37](index=37&type=chunk) - **Revenue Mix:** Shortfall revenue, recognized from customers not meeting minimum take-or-pay contract volumes, increased dramatically to **$16.3 million** in Q2 2019 and **$22.0 million** in H1 2019, compared to just **$0.7 million** in the respective prior-year periods[89](index=89&type=chunk) - **Litigation and Receivables:** The company has filed lawsuits against U.S. Well Services and Schlumberger for breach of contract over failure to pay amounts due. As of June 30, 2019, **$34.6 million** of accounts and unbilled receivables are from customers with whom the company has pending litigation[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - **Customer Concentration:** For the six months ended June 30, 2019, three customers accounted for **60%** of total revenues. As of June 30, 2019, four customers accounted for **89%** of total accounts receivable[105](index=105&type=chunk)[106](index=106&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2019 revenue growth from shortfall revenue, a working capital deficit, 'Going Concern' risk, and strong non-GAAP measure performance [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section details financial performance, highlighting revenue, gross profit, and net income changes for the quarter and six-month periods Results of Operations Summary | Metric (in thousands) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Change % | | :--- | :--- | :--- | :--- | | **Revenues** | $67,941 | $54,448 | 25% | | **Gross Profit** | $24,873 | $19,770 | 26% | | **Net Income** | $14,276 | $10,021 | 42% | - The increase in Q2 2019 revenue was primarily driven by **$16.3 million** in shortfall revenue from take-or-pay contracts, compared to only **$0.7 million** in Q2 2018. This offset a decrease in sand sales volume from **839,000 tons** in Q2 2018 to **741,000 tons** in Q2 2019[130](index=130&type=chunk) - For the six months ended June 30, 2019, revenues increased **23%** to **$119.7 million**, and net income increased **67%** to **$18.3 million** compared to the same period in 2018, also driven by higher shortfall revenue[140](index=140&type=chunk)[141](index=141&type=chunk)[146](index=146&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) This section presents non-GAAP financial metrics like Adjusted EBITDA and Contribution Margin, showing strong year-over-year growth Non-GAAP Financial Measures Summary | Non-GAAP Metric (in thousands) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $26,243 | $19,257 | $38,665 | $25,110 | | **Contribution Margin** | $30,974 | $23,648 | $48,050 | $33,967 | - The increase in Adjusted EBITDA and Contribution Margin for both the three and six-month periods was primarily attributed to higher shortfall revenue and increased in-basin sales volumes[151](index=151&type=chunk)[156](index=156&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity, capital resources, working capital changes, and the critical 'Going Concern' risk - **Going Concern:** Management explicitly states that the June 30, 2020 maturity of its Credit Facility raises substantial doubt about the company's ability to continue as a going concern if it is not refinanced[158](index=158&type=chunk)[159](index=159&type=chunk) - Working capital shifted from a **$25.4 million** surplus at the end of 2018 to a **$6.8 million** deficit at June 30, 2019. This was mainly caused by classifying the Credit Facility as a short-term obligation[162](index=162&type=chunk) - As of June 30, 2019, the company had **$16.0 million** in undrawn availability under its **$55.0 million** Credit Facility[167](index=167&type=chunk) - The company estimates full-year 2019 capital expenditures to be between **$25 million** and **$35 million**[171](index=171&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to the company's market risk exposure were reported for the period - There have been no material changes in the company's exposure to market risks during the six months ended June 30, 2019[186](index=186&type=chunk) [Controls and Procedures](index=38&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[188](index=188&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2019, that have materially affected or are likely to materially affect internal controls[189](index=189&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is engaged in litigation with two major customers over alleged breach of long-term take-or-pay contracts and non-payment - Smart Sand filed a lawsuit against U.S. Well Services, LLC on January 14, 2019, for breach of contract related to a long-term take-or-pay agreement[115](index=115&type=chunk) - Smart Sand filed a lawsuit against Schlumberger Technology Corporation on January 3, 2019, also for breach of contract over a long-term take-or-pay agreement[116](index=116&type=chunk) [Risk Factors](index=39&type=section&id=ITEM%201A.%20Risk%20Factors) Key risks include collection uncertainty from litigation-involved receivables and the inability to refinance the Credit Facility, raising going concern doubts - A substantial portion of accounts and unbilled receivables (**$34.6 million** as of June 30, 2019) are from two customers currently in litigation with the company, posing a significant collection risk[193](index=193&type=chunk) - The company's Credit Facility matures on June 30, 2020, and failure to refinance it could have a material adverse effect on the business and raises substantial doubt about the company's ability to continue as a going concern[194](index=194&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - There were no unregistered sales of equity securities during the period[195](index=195&type=chunk) [Defaults upon Senior Securities](index=39&type=section&id=ITEM%203.%20Defaults%20upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - There were no defaults upon senior securities during the period[196](index=196&type=chunk) [Mine Safety Disclosures](index=39&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company's mining operations are subject to MSHA and OSHA regulations, including annual inspections and rules on respirable silica exposure - The company's operations are regulated by MSHA, which performs at least two unannounced inspections annually[197](index=197&type=chunk) - The company is subject to OSHA regulations for workplace exposure to respirable silica and may need to incur capital expenditures if exposure limits are lowered[198](index=198&type=chunk) [Other Information](index=40&type=section&id=ITEM%205.%20Other%20Information) No other material information was reported for the period - There was no other information to report[201](index=201&type=chunk) [Exhibits](index=41&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data

Smart Sand, Inc. (NASDAQ:SND) Q1 2019 Earnings Conference Call May 7, 2019 10:00 AM ET Company Participants Josh Jayne - Finance Manager Chuck Young - Founder & Chief Executive Officer Lee Beckelman - Chief Financial Officer John Young - Chief Operating Officer. Conference Call Participants Stephen Gengaro - Stifel George O’Leary - TPH & Company John Watson - Simmons Energy Lucas Pipes - B. Riley FBR Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Q1 2019 Smart Sand In ...