Smart Sand(US:SND)2025-08-12 20:02Financial Performance - In Q2 2025, Smart Sand sold approximately 1,424,000 tons, a 33% sequential increase from Q1 2025 and a 12% year-over-year increase[4]. - Revenues for Q2 2025 were $85.8 million, up from $65.6 million in Q1 2025 and $73.8 million in Q2 2024, primarily driven by higher sales volumes[5]. - Adjusted EBITDA for Q2 2025 was $7.8 million, an increase from $1.4 million in Q1 2025 but a decrease from $11.9 million in Q2 2024[11]. - Net income for Q2 2025 was $21.4 million, compared to a net loss of $(24.2) million in Q1 2025 and a net loss of $(0.4) million in Q2 2024[10]. - The contribution margin in Q2 2025 was $15.8 million, or $11.08 per ton sold, compared to $9.6 million, or $8.96 per ton sold, in Q1 2025[11]. - Total revenue for the three months ended June 30, 2025, was $85.77 million, a 30.7% increase from $65.56 million in the previous quarter and a 16.2% increase from $73.80 million in the same quarter last year[26]. - Gross profit for the same period was $8.96 million, compared to $2.77 million in the previous quarter and $13.07 million in the same quarter last year, indicating a significant recovery from the previous quarter[26]. - Net income for the three months ended June 30, 2025, was $21.40 million, a turnaround from a net loss of $24.23 million in the previous quarter and a loss of $0.43 million in the same quarter last year[26]. - Contribution margin for the three months ended June 30, 2025, was $15.78 million, up from $9.58 million in the previous quarter and down from $19.79 million in the same quarter last year[34]. - Contribution margin per ton sold increased to $11.08 for the three months ended June 30, 2025, compared to $8.96 in the previous quarter and $15.53 in the same quarter last year[34]. - Total tons sold during the three months ended June 30, 2025, were 1,424, an increase from 1,069 tons in the previous quarter but a decrease from 1,274 tons in the same quarter last year[34]. Cash Flow and Liquidity - Free cash flow for Q2 2025 was $(7.8) million, with net cash used in operating activities at $(5.1) million[14]. - Cash and cash equivalents at the end of the period were $4.29 million, a decrease from $5.11 million at the beginning of the period[30]. - Free cash flow for the three months ended June 30, 2025, was $(7,813,000), a decline from $5,188,000 in the previous quarter and $13,528,000 in the same quarter last year[40]. - Net cash used in operating activities for the three months ended June 30, 2025, was $(5,137,000), compared to $8,724,000 in the previous quarter and $14,882,000 in the same quarter last year[40]. - The company’s management emphasizes that free cash flow is a key measure of liquidity, although it may be defined differently by other companies in the industry[38]. Shareholder Returns - Smart Sand repurchased 854,779 shares for $1.8 million under its share repurchase program, with $7.9 million remaining for future repurchases[15]. - The company declared a special cash dividend of $0.10 per share, totaling $4.3 million, payable on August 14, 2025[16]. Market Position and Outlook - Smart Sand expects sales volumes in the second half of 2025 to align with the first half and anticipates being free cash flow positive for the year[3]. - The company is well-positioned to grow market share in key shale markets in Canada due to strong fundamentals in Northern White sand driven by natural gas development[3]. Balance Sheet - Total current assets increased to $83.12 million as of June 30, 2025, compared to $75.53 million as of December 31, 2024[28]. - Total liabilities increased to $105.35 million as of June 30, 2025, compared to $97.74 million as of December 31, 2024[28]. - The company reported a significant decrease in accounts receivable, which increased to $47.18 million from $40.98 million in the previous period[28]. Other Financial Metrics - Depreciation, depletion, and amortization for the three months ended June 30, 2025, was $7,236,000, slightly up from $7,206,000 in the previous quarter[37]. - Interest expense for the three months ended June 30, 2025, was $344,000, down from $372,000 in the previous quarter[37]. - The company reported a net loss on disposal of fixed assets of $(680,000) for the three months ended June 30, 2025[37]. - Equity compensation expenses increased to $909,000 for the three months ended June 30, 2025, compared to $859,000 in the previous quarter[37]. - The company’s cash charges related to restructuring and retention were $0 for the three months ended June 30, 2025, down from $41,000 in the same quarter last year[37].