Smart Sand, Inc. Announces Fourth Quarter 2024 and Full Year 2024 Results

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]