Smart Sand Inc (NASDAQ:SND) Announces Revenues Of $25.0 Million In Q1 2017

Smart Sand Inc (NASDAQ:SND)

Smart Sand Inc (NASDAQ:SND)

Smart Sand Inc (NASDAQ:SND) has announced its financial results for Q1 2017. In a statement, Smart Sand Chief Executive Officer Charles Young said the company produced strong results in Q1 2017 on the back of increased sales volume. He added that the sales improvement is a clear indication of significant market improvement in the gas and oil industry.

Smart Sand Inc (NASDAQ:SND) reported around $25 million in revenue in Q1 2017 compared to $10.4 million that was reported during the same period of the previous financial year. This represents a 141% increase year over year. The increase resulted from increase in sales volume. The company revenue in Q1 2017 dropped by 15% compared to $29.5 million that was reported in Q4 2016. The drop is as a result of shortfall in payments reported in Q4 2016 which was partially offset by increase in sales volume.

In Q1 2017, Smart Sand Inc (NASDAQ:SND) sold a total of 558,500 tons as compared to around 129,300 tons that were sold in Q1 2016 and 274,500 tons sold in Q4 2016. This represent 332% and 103% increases respectively.

During the quarter, the company reported $1.0 million or $0.02 per share in net income compared to $0.4 million or $0.02 per share in net income reported in Q1 2016. The company reported $12.4 or $0.32 per share in net income in Q4 2016.

The company’s Adjusted EBITDA in Q1 2017 stood at $3.7 million compared to $4.7 million that the company reported in Q12016 and 27.0 million in Q4 2016. This represents a 21% and 86% drop respectively. The year-over-year drop is attributed to shortfall payments that the company reported in Q1 2016 and which resulted from renegotiations of customer contracts. The company recorded a drop in payments in Q1 2017. The drop in Adjusted EBITDA in Q1 2017 was mainly as a result of shortfall payments plus other income earned from the assignment of a bankruptcy status in the previous quarter.

The reported $1.6 million in total capital expenditure for the three months ended March 31, 2017. The expenditures were mainly attributed to Smart Sand Inc (NASDAQ:SND)’s investment in several enhancement and cost improvement programs. According to the company’s estimates, capital expenditure for the whole current financial year will be around $85 million, an increase from the $55 million that the company had previously projected. The upward revision in expected capital expenditure is a result of plans to expand the Oakdale facility to a capacity of 5.5 million tons annually.

Smart Sand Inc (NASDAQ:SND) lost 6.30% in the previous trading session to close at $9.37 on a volume of 591,415 shares.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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