U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced net
income of $19.5 million, or $0.37 per basic share and $0.36 per
diluted share for the quarter ended June 30, 2012, compared with
net income of $6.4 million, or $0.13 per basic and diluted share
for the same period in 2011.
Summary Financial and Operating Data
($ in millions except statistics and per
share)
Three Months Ended June 30, 2012
2011 Key Operating
Statistics:
Tons Sold:
(000s)
Oil & Gas 685.0 535.1 Industrial & Specialty Products
1,098.4 1,105.6 Total 1,783.4 1,640.7
Income: Revenue $ 104.6 $ 74.1 Contribution
Margin $ 47.3 $ 31.5 % Margin 45.2 % 42.6 % Adjusted EBITDA
(a) $ 37.1 $ 26.4 % Margin 35.5 % 35.7 % Net Income $ 19.5 $
6.4 EPS, Basic $ 0.37 $ 0.13 EPS, Diluted $ 0.36 $ 0.13
(a) A reconciliation of
Adjusted EBITDA, a non-GAAP financial measure, to net income, the
most comparable GAAP measure, and other important information
appears on page 6.
Bryan Shinn, President and Chief Executive Officer said “I’m
pleased that for the second quarter of 2012, U.S. Silica again
delivered strong financial results, in line with the high-end of
the guidance range provided in our last earnings release. We are
very satisfied with these results. Our performance underscores the
value of U.S. Silica’s business model – which balances the upside
growth potential in unconventional drilling with highly stable
industrial markets.”
The Company reported second quarter 2012 revenues of $104.6
million, an increase of $30.5 million, or 41% from the $74.1
million reported for the same period in 2011. Overall sales volume
increased to nearly 1.8 million tons, or over 8% above the prior
year sales volume of 1.6 million tons.
The Oil and Gas Proppants segment was the primary driver of
year-over-year revenue growth. Second quarter Oil and Gas revenues
were $54.5 million – up 111 percent compared to second quarter of
2011. The Company sold 685,000 tons of sand into the Oil and Gas
markets for hydraulic fracturing, which produced $33.3 million in
contribution margin for the second quarter, compared to 535,000
tons and a contribution margin of $16.7 million in the second
quarter of 2011.
Second quarter Industrial and Specialty Products segment
revenues were $50.1 million, a year-over-year increase of
approximately 4%. The ISP segment sold 1,098,000 tons and delivered
$14.0 million in contribution margin, compared to 1,106,000 million
tons and a contribution margin of $14.8 million in the second
quarter of 2011.
The ISP business segment represents the heritage of U.S. Silica
and provides the Company a balanced portfolio of markets and
customers. The ISP segment has more than 1,400 customers, produces
over 200 products to such diverse end-markets as glass containers,
flat glass, paint, chemicals and electronics.
SG&A expense was $9.7 million for the second quarter of 2012
compared to $6.0 million for the second quarter of 2011. The
increase was driven by additional staffing to support our growth
and the administrative requirements of a public company.
Adjusted EBITDA for the second quarter of 2012 was $37.1
million, an increase of 40% compared to $26.4 million for the
second quarter of 2011.
Capital Update
As of June 30, 2012, we had $102.6 million of cash and cash
equivalents and $24.0 million available under our credit
facilities. Our total outstanding debt was $260.6 million. Capital
spending for the first half of 2012 was $39 million.
In June 2012, we announced a stock repurchase program of up to
$25 million over the next 18 months. As of the end of the second
quarter, we had repurchased 20,000 shares for slightly over
$200,000 and are treating these shares as treasury stock.
Outlook and Guidance
The Company expects full year revenues of approximately $395
million to $415 million and reaffirms Adjusted EBITDA of $142
million to $150 million, with the most likely outcome to be in the
lower half of the range.
Conference Call
U.S. Silica will host a conference call for investors today,
July 31, 2012 at 10:00 a.m. Eastern Time to discuss these results.
Hosting the call will be Bryan A. Shinn, President and Chief
Executive Officer, and William A. White, Chief Financial
Officer.
The call can be accessed live over the telephone by dialing
(877) 705-6003, or for international callers, (201) 493-6725. A
replay will be available shortly after the call and can be accessed
by dialing (877) 870-5176, or for international callers, (858)
384-5517. The passcode for the replay is 397401. A webcast of the
call can be accessed by visiting the Company’s website at
www.ussilica.com. A replay of the webcast will also be available
for approximately two weeks following the call.
About U.S. Silica Holdings, Inc.
U.S. Silica Holdings, Inc., a Delaware corporation, is
the second largest domestic producer of commercial silica, a
specialized mineral that is a critical input into the oil and gas
proppants end market. The Company also processes ground and
unground silica sand for a variety of industrial and specialty
products end markets such as glass, fiberglass, foundry molds,
municipal filtration and recreational uses. During its 112-year
history, U.S. Silica Holdings, Inc. has developed core competencies
in mining, processing, logistics and materials science that enable
it to produce and cost-effectively deliver over 200 products to
customers across these end markets. U.S. Silica Holdings, Inc. is
headquartered in Frederick, Maryland.
Forward-Looking Statements
Certain statements in this press release are “forward-looking
statements” made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and speak only as
of this date. Forward-looking statements include any statement that
does not directly relate to any historical or current fact and may
include, but are not limited to, statements regarding U.S. Silica’s
growth opportunities, strategy, future financial results,
forecasts, projections, plans and capital expenditures, and the
commercial silica industry. Forward-looking statements are based on
our current expectations and assumptions, which may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are (1) fluctuations in demand for
commercial silica; (2) the cyclical nature of our customers’
businesses; (3) operating risks that are beyond our control; (4)
federal, state and local legislative and regulatory initiatives
relating to hydraulic fracturing; (5) our ability to implement our
capacity expansion plans within our current timetable and budget;
(6) loss of, or reduction in, business from our largest customers;
(7) increasing costs or a lack of dependability or availability of
transportation services or infrastructure; (8) our substantial
indebtedness and pension obligations; (9) our ability to attract
and retain key personnel; (10) silica-related health issues and
corresponding litigation; (11) seasonal and severe weather
conditions; and (12) extensive and evolving environmental, mining,
health and safety, licensing, reclamation and other regulation (and
changes in their enforcement or interpretation). Additional
information concerning these and other factors can be found in U.S.
Silica’s filings with the Securities and Exchange Commission. We
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
U.S. SILICA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended June 30, 2012
2011 (in thousands, except per share
amounts) Sales $ 104,599 $ 74,080 Cost of goods sold (excluding
depreciation, depletion and amortization) 58,920 42,629 Operating
expenses Selling, general and administrative 9,718 5,952 Advisory
fees to parent - 313 Depreciation, depletion and amortization
5,974 5,252 15,692
11,517 Operating income 29,987 19,934 Other (expense) income
Interest expense (3,428 ) (5,224 ) Early extinguishment of debt -
(6,043 ) Other income, net, including interest income 179
163 (3,249 ) (11,104 ) Income
before income taxes 26,738 8,830 Income tax (expense) benefit
(7,287 ) (2,474 ) Net income $ 19,451 $ 6,356
Earnings per share: Basic $ 0.37 $ 0.13 Diluted $
0.36 $ 0.13
U.S. SILICA HOLDINGS,
INC.CONSOLIDATED BALANCE SHEETS
June 30, 2012
December 31, 2011
(in thousands) ASSETS Current Assets: Cash and
cash equivalents $ 102,625 $ 59,199 Accounts receivable, net 49,904
46,600 Inventories, net 40,131 29,307 Prepaid expenses and other
current assets 7,165 8,561 Deferred income taxes, net 20,424 28,007
Income tax receivable - 3,895 Total
current assets 220,249 175,569
Property, plant and mine development, net 363,828 336,788 Debt
issuance costs, net 2,348 1,291 Goodwill 68,403 68,403 Trade names
10,436 10,436 Customer relationships, net 6,737 6,942 Other assets
6,458 6,367 Total assets $ 678,459
$ 605,796
LIABILITIES AND STOCKHOLDERS’
EQUITY Current Liabilities: Book overdraft $ 4,028 $
5,588 Accounts payable 37,588 36,579 Accrued liabilities 8,620
9,875 Accrued interest 86 1,659 Current portion of long-term debt
6,364 6,364 Income tax payable 7,223 - Current portion of deferred
revenue 8,081 10,393 Total current
liabilities 71,990 70,458 Long-term
debt 254,209 255,425 Note payable to parent - 15,000 Liability for
pension and other post-retirement benefits 49,190 52,078 Deferred
revenue 899 2,128 Deferred income taxes, net 69,489 75,915 Other
long-term obligations 13,420 12,858
Total liabilities 459,197 483,862 Commitments and
contingencies
Stockholders’ Equity: Common stock 529
500 Preferred stock -
-
Additional paid-in capital 162,085 103,757 Retained earnings
(accumulated deficit) 68,602 30,038 Treasury stock, at cost (215 )
-
Accumulated other comprehensive loss (11,739 )
(12,361 ) Total stockholders’ equity 219,262
121,934 Total liabilities and stockholders’ equity $ 678,459
$ 605,796
Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is not a measure of our financial performance or
liquidity under GAAP and should not be considered as an alternative
to net income as a measure of operating performance, cash flows
from operating activities as a measure of liquidity or any other
performance measure derived in accordance with GAAP. Additionally,
Adjusted EBITDA is not intended to be a measure of free cash flow
for management’s discretionary use, as it does not consider certain
cash requirements such as interest payments, tax payments and debt
service requirements. Adjusted EBITDA contains certain other
limitations, including the failure to reflect our cash
expenditures, cash requirements for working capital needs and cash
costs to replace assets being depreciated and amortized, and
excludes certain non-recurring charges that may recur in the
future. Management compensates for these limitations by relying
primarily on our GAAP results and by using Adjusted EBITDA only
supplementally. Our measure of Adjusted EBITDA is not necessarily
comparable to other similarly titled captions of other companies
due to potential inconsistencies in the methods of calculation.
The following table sets forth a reconciliation of net income,
the most directly comparable GAAP financial measure, to Adjusted
EBITDA.
Three Months Ended June 30,
2012 2011 (in thousands) Net income $ 19,451 $
6,356 Total interest expense, net of interest income 3,383 5,217
Provision for taxes (benefit) 7,287 2,474 Total depreciation,
depletion and amortization expenses 5,974 5,252
EBITDA 36,095 19,299
Non-recurring expenses (income)
- - Transaction expenses - 6,043 Permitted management fees and
expenses - 312 Non-cash incentive compensation 493 54
Post-employment expenses (excluding service costs) 404 628 Other
adjustments allowable under our existing credit agreements
120 94 Adjusted EBITDA $ 37,112 $ 26,430 __________
(1)
Includes the gain on the sale of
assets.
(2)
Includes fees and expenses related to the
January 27, 2012 amendment of our Term Loan Facility and ABL
Facility.
(3)
Includes fees and expense paid to Golden
Gate Capital for ongoing consulting and management services
provided pursuant to an Advisory Agreement entered into in
connection with the Golden Gate Capital Acquisition; this Advisory
Agreement was terminated in connection with our IPO.
(4)
Includes vesting of incentive equity
compensation issued to our employees.
(5)
Includes net pension cost and net
post-retirement cost relating to pension and other post-retirement
benefit obligations during the applicable period, but in each case
excluding the service cost relating to benefits earned during such
period.
(6)
Reflects miscellaneous adjustments
permitted under our existing credit agreements, including such
items as expenses related to reviewing growth initiatives and
potential acquisitions.
Silica (NYSE:SLCA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Silica (NYSE:SLCA)
Historical Stock Chart
From Jul 2023 to Jul 2024