Smart Sand(US:SND)2024-11-12 21:18Financial 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].