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