Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a
fully integrated sand supply and services company, a low-cost
producer of high quality Northern White frac sand and provider of
industrial product solutions and proppant logistics solutions
through both its in-basin transloading terminal and
SmartSystems™ products and services, today announced results
for the first quarter 2022.
Charles Young, Smart Sand’s Chief Executive Officer, stated
“While we faced operational and logistical challenges due to
weather and rail supply chain issues during the quarter, we were
able to deliver solid sales volumes of 852,000 tons, which were in
line with our fourth quarter 2021 results. We ended the quarter
strong with our March sales volumes equaling approximately 43% of
total sales volumes in the quarter. Market activity continues to
improve. We currently expect our sales volumes to be up at least
25% in the second quarter from first quarter levels. Revenue, net
loss, contribution margin and adjusted EBITDA improved compared to
fourth quarter 2021 results and we expect this trend to continue.
We will continue to stay focused on increasing the utilization of
our asset base, managing our operating costs and improving our
operating and financial results.”
First Quarter 2022 Results
Revenues were $41.6 million in the first quarter of 2022,
compared to $35.1 million in the fourth quarter of 2021 and $27.5
million in the first quarter of 2021. Revenues increased in the
first quarter, compared to the fourth quarter of 2021, primarily
due to higher sand sales revenues resulting from higher in-basin
sales volumes, higher shortfall revenue and a higher average sales
price for our sand. The increase in revenue in the first quarter of
2022, as compared to the first quarter of 2021, was primarily due
to an increase in total volumes sold and higher average sales price
for our sand.
Gross profit was $(2.0) million in the first quarter of 2022,
compared to $(6.5) million in the fourth quarter of 2021 and $(5.0)
million in the first quarter of 2021. Gross profit improved in the
first quarter of 2022 compared to the fourth quarter of 2021
primarily due to higher average sales price of our sand relative to
the cost to produce and deliver products to our customers. Gross
profit increased in the first quarter of 2022 compared to the same
period in 2021 primarily due to higher sales volumes, higher
average sales price of our sand relative to the cost to produce and
deliver products to our customers and increased efficiencies that
come with producing higher volumes of sand.
Net cash used in operating activities was $(8.7) million in the
first quarter of 2022, compared to net cash used in operating
activities of $(5.1) million in the fourth quarter of 2021 and net
cash provided by operating activities of $3.9 million in the first
quarter of 2021. Higher net cash used in operating activities in
the first quarter of 2022 compared to the fourth quarter of 2021
was primarily due to a higher volume of sales occurring late in the
first quarter of 2022 which were not converted to cash before the
period end, leading to an increase in working capital at the end of
the first quarter of 2022. Net cash used in operating activities
was higher in the first quarter of 2022 compared to the net cash
provided by operating activities in the same period in 2021
primarily due to a increase in accounts receivable, prepaid
expenses and other assets, and a decrease in accounts payable.
Tons sold were approximately 852,000 in the first quarter of
2022, compared to approximately 872,000 tons in the fourth quarter
of 2021 and 760,000 tons in the first quarter of 2021, a decrease
of 2% and increase of 12%, respectively. Sales volumes were down
slightly sequentially due primarily to weather and logistical
issues the Company experienced early in the first quarter and were
up year-over-year primarily due to increased market activity. We
expect the market to continue to improve in 2022.
For the first quarter of 2022, the Company had a net loss of
$5.9 million, or $(0.14) per basic and diluted share, compared to a
net loss of $12.2 million, or $(0.29) per basic and diluted share,
for the fourth quarter of 2021 and a net loss of $3.9 million, or
$(0.09) per basic and diluted share, for the first quarter of 2021.
The improvement in the net loss in the first quarter of 2022
compared to the fourth quarter of 2021 was primarily due to higher
average sales prices on our sand and lower operating expenses due
to higher wages in the fourth quarter related to, among other
things, variable compensation expense. The prior quarter also
included a $2.2 million impairment due to estimated waste product
in inventory at year-end. The increase in net loss year-over-year
was primarily due to discrete income items that created a lower tax
benefit in the first quarter of 2022 relative to the prior period,
partially offset by improved gross profit due to higher sales
volumes and higher pricing in the current quarter compared to the
same period a year ago.
Contribution margin was $4.3 million, or $4.99 per ton sold, for
the first quarter of 2022 compared to $1.9 million, or $2.18 per
ton sold for the fourth quarter of 2021, and $1.0 million, or $1.36
per ton sold, for the first quarter of 2021. The increase in
contribution margin and contribution margin per ton in the first
quarter of 2022 compared to the fourth quarter of 2021 was
primarily due to higher average prices on sand sold. The increase
in contribution margin and contribution margin per ton in the first
quarter of 2022 compared to the same period in the prior year was
due primarily to higher sales volumes and higher average sales
prices.
Adjusted EBITDA was $(1.9) million for the first quarter of
2022, compared to $(4.5) million for the fourth quarter of 2021 and
$(3.5) million for the first quarter of 2021. The improvement in
Adjusted EBITDA in the first quarter of 2022 compared to the prior
quarter was primarily due to higher average prices on sand sold.
The improvement in Adjusted EBITDA in the first quarter of 2022
compared to the same period in 2021 was primarily due to higher
sales volumes and higher average sales prices of our sand.
Free cash flow was $(19.0) million for the first quarter of
2022, with net use of $8.7 million from operating activities,
driven primarily by a 45% increase in accounts receivable, $3.8
million on investments in capital improvements and approximately
$6.5 million related to the acquisition of the Blair
facility.
Liquidity
Our primary sources of liquidity are cash on hand, cash flow
generated from operations and available borrowings under our ABL
Credit Facility. As of March 31, 2022, cash on hand was $4.7
million and we had $16.9 million in undrawn availability on our ABL
Credit Facility, with no borrowings outstanding. For the three
months ended March 31, 2022, we had approximately $10.3 million in
capital expenditures, including approximately $6.5 million
related to the acquisition of the Blair facility. We currently
estimate that full year 2022 capital and acquisition expenditures,
including amounts relating to the acquisition of the Blair
facility, will be between $25.0 million and $30.0 million, with
capital expenditures for the remainder of 2022 primarily being used
to support efficiency projects at our Oakdale and Utica facilities.
We continue to remain focused on maintaining a strong balance sheet
and low leverage, as evidenced by our repayment of approximately
$1.8 million in debt during the first quarter of 2022.
Conference Call
Smart Sand will host a conference call and live webcast for
analysts and investors on May 12, 2022 at 10:00 a.m. Eastern Time
to discuss its first quarter 2022 financial results. Investors are
invited to listen to a live audio webcast of the conference call,
which will be accessible on the “Investors” section of the
Company’s website at www.smartsand.com. To access the live webcast,
please log in 15 minutes prior to the start of the call to download
and install any necessary audio software. An archived replay of the
call will also be available on the website following the call. The
call can also be accessed live by dialing (888) 799-5165 or, for
international callers, (478) 219-0056. The passcode for the call is
8748066. A replay will be available shortly after the call and can
be accessed by dialing (855) 859-2056 or, for international
callers, (404) 537-3406. The conference ID for the replay is
8748066.
Forward-looking Statements
All statements in this news release other than statements of
historical facts are forward-looking statements that contain our
Company’s current expectations about our future results, including
our Company’s expectations regarding future sales. We have
attempted to identify any forward-looking statements by using words
such as “expect,” “will,” “estimate,” “believe” and other
similar expressions. Although we believe that the expectations
reflected and the assumptions or bases underlying our
forward-looking statements are reasonable, we can give no assurance
that such expectations will prove to be correct. Such
statements are not guarantees of future performance or events and
are subject to known and unknown risks and uncertainties that could
cause our actual results, events or financial positions to differ
materially from those included within or implied by such
forward-looking statements.
Factors that could cause our actual results to differ materially
from the results contemplated by such forward-looking statements
include, but are not limited to, fluctuations in product demand,
regulatory changes, adverse weather conditions, increased fuel
prices, higher transportation costs, access to capital, increased
competition, continued effects of the global pandemic, changes in
economic or political conditions, and such other factors discussed
or referenced in the “Risk Factors” section of the Company’s Annual
Report on Form 10-K for the year ended December 31, 2021, filed by
the Company with the U.S. Securities and Exchange
Commission (“SEC”) on March 8, 2022, and in the Company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2022,
filed by the Company with the SEC on May 11, 2022.
You should not place undue reliance on our forward-looking
statements. Any forward-looking statement speaks only as of the
date on which such statement is made, and we undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events,
changed circumstances or otherwise, unless required by law.
About Smart Sand
We are a fully integrated sand supply and services company,
offering complete mine to wellsite proppant and logistic solutions
to our customers. We produce low-cost, high quality Northern White
sand, which is a premium proppant used to enhance hydrocarbon
recovery rates in the hydraulic fracturing of oil and natural gas
wells. Our sand is also a high-quality product used in a variety of
industrial applications including glass, foundry, building
products, filtration, geothermal, renewables, ceramics, turf &
landscaping, retail, recreation and more. We also offer logistics
solutions to our customers through our in-basin transloading
terminals and our SmartSystems wellsite storage capabilities. We
own and operate premium sand mines and related processing
facilities in Wisconsin and Illinois, which have access to four
Class I rail lines, allowing us to deliver products substantially
anywhere in the United States and Canada. For more information,
please visit www.smartsand.com.
SMART SAND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(in thousands, except per share amounts) |
Revenues: |
|
|
|
|
|
Sand sales revenue |
$ |
38,289 |
|
|
$ |
34,111 |
|
|
$ |
23,147 |
|
Shortfall revenue |
|
1,915 |
|
|
|
— |
|
|
|
1,741 |
|
Logistics revenue |
|
1,401 |
|
|
|
969 |
|
|
|
2,562 |
|
Total revenue |
|
41,605 |
|
|
|
35,080 |
|
|
|
27,450 |
|
Cost of
goods sold |
|
43,586 |
|
|
|
39,432 |
|
|
|
32,427 |
|
Impairment loss |
|
— |
|
|
|
2,170 |
|
|
|
— |
|
Gross profit |
|
(1,981 |
) |
|
|
(6,522 |
) |
|
|
(4,977 |
) |
Operating expenses: |
|
|
|
|
|
Salaries, benefits and payroll taxes |
|
3,392 |
|
|
|
4,108 |
|
|
|
2,375 |
|
Depreciation and amortization |
|
527 |
|
|
|
490 |
|
|
|
561 |
|
Selling, general and administrative |
|
4,048 |
|
|
|
3,873 |
|
|
|
3,154 |
|
Total operating expenses |
|
7,967 |
|
|
|
8,471 |
|
|
|
6,090 |
|
Operating loss |
|
(9,948 |
) |
|
|
(14,993 |
) |
|
|
(11,067 |
) |
Other income (expenses): |
|
|
|
|
|
Interest expense, net |
|
(427 |
) |
|
|
(452 |
) |
|
|
(547 |
) |
Other income |
|
212 |
|
|
|
316 |
|
|
|
198 |
|
Total other expenses, net |
|
(215 |
) |
|
|
(136 |
) |
|
|
(349 |
) |
Loss
before income tax benefit |
|
(10,163 |
) |
|
|
(15,129 |
) |
|
|
(11,416 |
) |
Income tax benefit |
|
(4,240 |
) |
|
|
(2,896 |
) |
|
|
(7,504 |
) |
Net
loss |
$ |
(5,923 |
) |
|
$ |
(12,233 |
) |
|
$ |
(3,912 |
) |
Net loss
per common share: |
|
|
|
|
|
Basic |
$ |
(0.14 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.09 |
) |
Diluted |
$ |
(0.14 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.09 |
) |
Weighted-average number of common shares: |
|
|
|
|
|
Basic |
|
42,087 |
|
|
|
41,869 |
|
|
|
41,629 |
|
Diluted |
|
42,087 |
|
|
|
41,869 |
|
|
|
41,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SMART SAND, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
March 31, 2022(unaudited) |
|
December 31, 2021 |
|
(in thousands) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
4,698 |
|
|
$ |
25,588 |
|
Accounts receivable |
|
26,661 |
|
|
|
17,481 |
|
Unbilled receivables |
|
1,515 |
|
|
|
1,884 |
|
Inventory |
|
13,583 |
|
|
|
15,024 |
|
Prepaid expenses and other current assets |
|
9,668 |
|
|
|
13,886 |
|
Total current assets |
|
56,125 |
|
|
|
73,863 |
|
Property, plant and equipment, net |
|
273,312 |
|
|
|
262,465 |
|
Operating lease right-of-use assets |
|
29,506 |
|
|
|
29,828 |
|
Intangible assets, net |
|
7,263 |
|
|
|
7,461 |
|
Other assets |
|
364 |
|
|
|
402 |
|
Total assets |
$ |
366,570 |
|
|
$ |
374,019 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
7,534 |
|
|
$ |
8,479 |
|
Accrued expenses and other liabilities |
|
12,599 |
|
|
|
14,073 |
|
Deferred revenue, current |
|
11,470 |
|
|
|
9,842 |
|
Long-term debt, net, current |
|
7,171 |
|
|
|
7,127 |
|
Operating lease liabilities, current |
|
9,426 |
|
|
|
9,029 |
|
Total current liabilities |
|
48,200 |
|
|
|
48,550 |
|
Deferred revenue, net |
|
3,627 |
|
|
|
6,428 |
|
Long-term debt, net |
|
13,258 |
|
|
|
15,353 |
|
Operating lease liabilities, long-term |
|
22,576 |
|
|
|
23,690 |
|
Deferred tax liabilities, long-term, net |
|
18,259 |
|
|
|
22,434 |
|
Asset retirement obligation |
|
24,626 |
|
|
|
16,155 |
|
Other non-current liabilities |
|
42 |
|
|
|
249 |
|
Total liabilities |
|
130,588 |
|
|
|
132,859 |
|
Commitments and contingencies |
|
|
|
Stockholders’ equity |
|
|
|
Common stock |
|
42 |
|
|
|
42 |
|
Treasury stock |
|
(4,662 |
) |
|
|
(4,535 |
) |
Additional paid-in capital |
|
175,342 |
|
|
|
174,486 |
|
Retained earnings |
|
64,670 |
|
|
|
70,593 |
|
Accumulated other comprehensive (loss) income |
|
590 |
|
|
|
574 |
|
Total stockholders’ equity |
|
235,982 |
|
|
|
241,160 |
|
Total liabilities and stockholders’ equity |
$ |
366,570 |
|
|
$ |
374,019 |
|
|
|
|
|
|
|
|
|
SMART SAND, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(in thousands) |
Operating activities: |
|
|
|
|
|
Net loss |
$ |
(5,923 |
) |
|
$ |
(12,233 |
) |
|
$ |
(3,912 |
) |
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation, depletion and accretion of asset retirement
obligation |
|
6,568 |
|
|
|
6,371 |
|
|
|
6,375 |
|
Impairment loss |
|
— |
|
|
|
2,170 |
|
|
|
— |
|
Amortization of intangible assets |
|
199 |
|
|
|
199 |
|
|
|
198 |
|
Loss (gain) on disposal of assets |
|
— |
|
|
|
332 |
|
|
|
2 |
|
Amortization of deferred financing cost |
|
26 |
|
|
|
26 |
|
|
|
26 |
|
Accretion of debt discount |
|
47 |
|
|
|
43 |
|
|
|
47 |
|
Deferred income taxes |
|
(4,175 |
) |
|
|
(3,004 |
) |
|
|
(7,691 |
) |
Stock-based compensation |
|
826 |
|
|
|
1,030 |
|
|
|
678 |
|
Employee stock purchase plan compensation |
|
5 |
|
|
|
10 |
|
|
|
7 |
|
Changes in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(5,411 |
) |
|
|
(1,892 |
) |
|
|
3,062 |
|
Unbilled receivables |
|
(3,399 |
) |
|
|
(898 |
) |
|
|
(88 |
) |
Inventories |
|
1,441 |
|
|
|
(1,813 |
) |
|
|
1,590 |
|
Prepaid expenses and other assets |
|
3,835 |
|
|
|
2,637 |
|
|
|
1,140 |
|
Deferred revenue |
|
(1,173 |
) |
|
|
(179 |
) |
|
|
2,191 |
|
Accounts payable |
|
(193 |
) |
|
|
2,944 |
|
|
|
1,332 |
|
Accrued and other expenses |
|
(1,335 |
) |
|
|
(848 |
) |
|
|
(1,043 |
) |
Net cash
(used in) provided by operating activities |
|
(8,662 |
) |
|
|
(5,105 |
) |
|
|
3,914 |
|
Investing activities: |
|
|
|
|
|
Acquisition of Blair facility |
|
(6,547 |
) |
|
|
— |
|
|
|
— |
|
Purchases of property, plant and equipment |
|
(3,768 |
) |
|
|
(4,244 |
) |
|
|
(2,213 |
) |
Proceeds from disposal of assets |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Net cash
used in investing activities |
|
(10,315 |
) |
|
|
(4,244 |
) |
|
|
(2,215 |
) |
Financing activities: |
|
|
|
|
|
Repayments of notes payable |
|
(1,776 |
) |
|
|
(1,602 |
) |
|
|
(1,672 |
) |
Payments under equipment financing obligations |
|
(35 |
) |
|
|
(31 |
) |
|
|
(31 |
) |
Proceeds from equity issuance |
|
25 |
|
|
|
— |
|
|
|
17 |
|
Purchase of treasury stock |
|
(127 |
) |
|
|
(108 |
) |
|
|
(141 |
) |
Net cash
used in financing activities |
|
(1,913 |
) |
|
|
(1,741 |
) |
|
|
(2,007 |
) |
Net
increase in cash and cash equivalents |
|
(20,890 |
) |
|
|
(11,090 |
) |
|
|
(308 |
) |
Cash and cash equivalents at beginning of period |
|
25,588 |
|
|
|
36,678 |
|
|
|
11,725 |
|
Cash and cash equivalents at end of period |
$ |
4,698 |
|
|
$ |
25,588 |
|
|
$ |
11,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
Contribution Margin
We also use contribution margin, which we define as total
revenues less costs of goods sold excluding depreciation, depletion
and accretion of asset retirement obligations, to measure its
financial and operating performance. Contribution margin excludes
other operating expenses and income, including costs not directly
associated with the operations of the Company’s business such as
accounting, human resources, information technology, legal, sales
and other administrative activities.
Historically, we have reported production costs and production
cost per ton as non-GAAP financial measures. As we expand our
logistics activities and continue to sell sand closer to the
wellhead, our sand production costs will only be a portion of our
overall cost structure.
Gross profit is the GAAP measure most directly comparable to
contribution margin. Contribution margin should not be considered
an alternative to gross profit presented in accordance with GAAP.
Because contribution margin may be defined differently by other
companies in the industry, our definition of contribution margin
may not be comparable to similarly titled measures of other
companies, thereby diminishing its utility. The following table
presents a reconciliation of contribution margin to gross
profit.
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
(in thousands, except per ton amounts) |
Revenue |
$ |
41,605 |
|
|
$ |
35,080 |
|
|
$ |
27,450 |
|
Cost of goods sold |
|
43,586 |
|
|
|
39,432 |
|
|
$ |
32,427 |
|
Gross profit |
|
(1,981 |
) |
|
|
(4,352 |
) |
|
|
(4,977 |
) |
Depreciation, depletion, and accretion of asset retirement
obligations included in cost of goods sold |
|
6,231 |
|
|
|
6,249 |
|
|
|
6,013 |
|
Contribution margin |
$ |
4,250 |
|
|
$ |
1,897 |
|
|
$ |
1,036 |
|
Contribution margin per
ton |
$ |
4.99 |
|
|
$ |
2.18 |
|
|
$ |
1.36 |
|
Total tons sold |
|
852 |
|
|
|
872 |
|
|
|
760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
We define EBITDA as net income, plus: (i) depreciation,
depletion and amortization expense; (ii) income tax expense
(benefit); (iii) interest expense; and (iv) franchise taxes. We
define Adjusted EBITDA as EBITDA, plus: (i) gain or loss on sale of
fixed assets or discontinued operations; (ii) integration and
transition costs associated with specified transactions; (iii)
equity compensation; (iv) acquisition and development costs; (v)
non-recurring cash charges related to restructuring, retention and
other similar actions; (vi) earn-out, contingent consideration
obligations and other acquisition and development costs; and (vii)
non-cash charges and unusual or non-recurring charges. Adjusted
EBITDA is used as a supplemental financial measure by management
and by external users of our financial statements, such as
investors and commercial banks, to assess:
- the financial performance of our
assets without regard to the impact of financing methods, capital
structure or historical cost basis of our assets;
- the viability of capital expenditure
projects and the overall rates of return on alternative investment
opportunities;
- our ability to incur and service
debt and fund capital expenditures;
- our operating performance as
compared to those of other companies in our industry without regard
to the impact of financing methods or capital structure; and
- our debt covenant compliance, as
Adjusted EBITDA is a key component of critical covenants to the ABL
Credit Facility.
We believe that our presentation of EBITDA and Adjusted EBITDA
will provide useful information to investors in assessing our
financial condition and results of operations. Net income is the
GAAP measure most directly comparable to EBITDA and Adjusted
EBITDA. EBITDA and Adjusted EBITDA should not be considered
alternatives to net income presented in accordance with GAAP.
Because EBITDA and Adjusted EBITDA may be defined differently by
other companies in our industry, our definitions of EBITDA and
Adjusted EBITDA may not be comparable to similarly titled measures
of other companies, thereby diminishing their utility. The
following table presents a reconciliation of EBITDA and Adjusted
EBITDA to net income for each of the periods indicated.
The following table presents a reconciliation of EBITDA and
Adjusted EBITDA to net income for each of the periods
indicated:
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
(in thousands) |
Net loss |
$ |
(5,923 |
) |
|
$ |
(12,233 |
) |
|
$ |
(3,912 |
) |
Depreciation, depletion and
amortization |
|
6,568 |
|
|
|
6,554 |
|
|
|
6,460 |
|
Income tax benefit |
|
(4,240 |
) |
|
|
(2,896 |
) |
|
|
(7,504 |
) |
Interest expense |
|
434 |
|
|
|
460 |
|
|
|
555 |
|
Franchise taxes |
|
60 |
|
|
|
53 |
|
|
|
98 |
|
EBITDA |
$ |
(3,101 |
) |
|
$ |
(8,062 |
) |
|
$ |
(4,303 |
) |
(Loss) gain on sale of fixed
assets |
|
— |
|
|
|
332 |
|
|
|
2 |
|
Equity compensation(1) |
|
674 |
|
|
|
883 |
|
|
|
685 |
|
Acquisition and development
costs |
|
337 |
|
|
|
11 |
|
|
|
23 |
|
Non-cash impairment loss |
|
— |
|
|
|
2,170 |
|
|
|
— |
|
Accretion of asset retirement
obligations |
|
190 |
|
|
|
182 |
|
|
|
114 |
|
Adjusted EBITDA |
$ |
(1,900 |
) |
|
$ |
(4,484 |
) |
|
$ |
(3,479 |
) |
Non-cash impairment loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the non-cash expenses for stock-based awards
issued to our employees and employee stock purchase plan
compensation expense.
Free Cash Flow
Free cash flow, which we define as net cash provided by
operating activities less purchases of property, plant and
equipment, is used as a supplemental financial measure by our
management and by external users of our financial statements, such
as investors and commercial banks, to measure the liquidity of our
business.
Net cash provided by operating activities is the GAAP measure
most directly comparable to free cash flow. Free cash flow should
not be considered an alternative to net cash provided by operating
activities presented in accordance with GAAP. Because free cash
flows may be defined differently by other companies in our
industry, our definition of free cash flow may not be comparable to
similarly titled measures of other companies, thereby diminishing
its utility. The following table presents a reconciliation of free
cash flow to net cash provided by operating activities.
|
Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
(in thousands) |
Net cash (used in) provided by operating activities |
$ |
(8,662 |
) |
|
$ |
(5,105 |
) |
|
$ |
3,914 |
|
Acquisition of Blair facility |
|
(6,547 |
) |
|
$ |
— |
|
|
$ |
— |
|
Purchases of property, plant
and equipment |
|
(3,768 |
) |
|
|
(4,244 |
) |
|
|
(2,213 |
) |
Free cash flow |
$ |
(18,977 |
) |
|
$ |
(9,349 |
) |
|
$ |
1,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contacts:
Josh Jayne |
Lee Beckelman |
Director of Finance,
Treasurer |
Chief Financial Officer |
(281) 231-2660 |
(281) 231-2660 |
jjayne@smartsand.com |
lbeckelman@smartsand.com |
|
|
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