Smart Sand Inc. (NASDAQ:SND)

Smart Sand Inc. (NASDAQ:SND) Revenues Surge 260%

Smart Sand Inc. (NASDAQ:SND)

Shares of Smart Sand Inc. (NASDAQ:SND) gained 15.12% after the low cost producer of high-quality Northern White raw frac sand reported its best-ever quarter. Revenue for the three months ended September 30, 2017, increased 260% year-over-year, due to higher sales volumes and increased freight revenues.

Smart Sand Inc. (NASDAQ:SND)

According to Chief Executive Officer Charles Young, performance in the quarter underscored the company’s focus on maximizing production and effective management of railcar movements.

“Market demand for our high quality, Northern White frac sand remains strong and we look forward to bringing our additional 2.2 million tons of annual production capacity online by the end of the first quarter of 2018,” said Mr. Adams.

The sentiments appear to have strengthened investors’ confidence in the stock as it continues to bounce back from this year’s low. However, Smart Sand is still trading in a downtrend after losing more than 60% in market value since February.

According to data compiled Zacks Investment Research, Smart Sand Inc. (NASDAQ:SND) is currently rated as a ‘strong buy’ by five Wall St. analyst firms.

Smart Sand Q3 Financial Results

Revenues for the three months ended September 30, 2017 totaled $39.3 million. Smart Sand Inc. (NASDAQ:SND) attributes the 260% increase to customers billed through freight charges as well as increased sales volumes. Revenue in the quarter was also up by 32% compared to the second quarter, due to the higher average selling price.

Smart Sand sold a total of 653,400 tons in the quarter representing a 184% year over year increase from 229,600 tons sold last year. The number of tons sold in the quarter also represented a 23% increase from the second quarter.

Smart Sand Inc. (NASDAQ:SND) generated a net income of $7 million or $0.17 a share in the quarter compared to a net loss of (-$0.1) million reported last year. Adjusted EBITDA totaled $11.4 million nearly triple $4.5 million reported during the third quarter of 2016. Smart Sand attributes the increase to increase in sales volume and higher average selling price per ton.

Capital expenditure in the quarter totaled $19.9 million mostly attributed to expansion works at the Oakdale sand processing facility and investment in various enhancement and cost improvement projects.

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.

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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. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Smart Sand Inc (NASDAQ:SND)

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

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.