KATY, Texas, Nov. 22, 2019 /PRNewswire/ -- U.S. Silica
Holdings, Inc. (NYSE: SLCA) today announced a reduction in its
workforce of approximately 230 employees to improve efficiencies
and better align operations and support staffing with the current
challenges in its energy markets. Expected annual SG&A
savings from these actions as well as other cost reductions are
approximately $20 million.
The staffing reductions equal approximately 10% of the total
company workforce and include corporate employees and the idling of
both the Utica, Illinois and
Tyler, Texas mines. Other
facilities impacted, but not idled are; Crane County in
Texas, Sparta, Wisconsin, and Festus, Missouri.
The workforce reduction in operations will reduce staffed O&G
capacity by 7 million tons, which will be better aligned with
current demand.
The Company expects to incur approximately $1.7 million in related severance costs in the
fourth quarter of 2019 and will consider any impairment charges as
it closes the fourth quarter and fiscal year end.
"The difficult decisions announced today are an important
element of our plan to protect margins and generate free cash flow
in an increasingly competitive oil and gas completions market,"
said Bryan Shinn, president and
chief executive officer. "The actions taken realign our
operational footprint and cost structure to more efficiently serve
energy customers while simultaneously supporting the expected
growth of our Industrials & Specialty Products segment.''
About U.S. Silica
U.S. Silica Holdings, Inc. is a global performance
materials company and last-mile logistics provider and is a member
of the Russell 2000 Index. The Company is a leading producer of
commercial silica used in a wide range of industrial applications
and in the oil and gas industry. Over its 119-year
history, U.S. Silica has developed core competencies in
mining, processing, logistics and materials science that enable it
to produce and cost-effectively deliver over 1,500 diversified
products to customers across its multiple end markets. U.S.
Silica's wholly-owned subsidiaries include EP Minerals and
SandBox Logistics™. EP Minerals is an industry leader
in the production of products derived from diatomaceous earth,
perlite, engineered clays, and non-activated clays. SandBox
Logistics™ is a state-of-the-art leader in
proppant storage, handling and well-site delivery, dedicated to
making proppant logistics cleaner, safer and more efficient. The
Company currently operates 27 mines and production facilities. The
Company is headquartered in Katy, Texas and has
offices in Reno,
Nevada and Chicago, Illinois
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws — that is, statements
about the future, not about past events. Such statements often
contain words such as "expect," "may," "believe," "plan,"
"estimate," "intend," "anticipate," "should," "could," "will,"
"see," "likely," and other similar words. Forward-looking
statements address matters that are, to varying degrees, uncertain,
such as statements regarding the Company's expected annual SG&
A savings. The Company cannot give any assurance that such
statements will prove correct. These statements are subject to,
among other things, the risks and uncertainties detailed in the
Company's most recent Forms 10-K, 10-Q, and 8-K filed with or
furnished to the Securities and Exchange Commission. Actual
outcomes may vary materially from those reflected in the
forward-looking statements. The forward-looking statements speak
only as of the date made, and the Company disclaims any intention
or obligation to update publicly or revise such statements, whether
as a result of new information, future events or otherwise.
U.S. Silica Holdings, Inc.
Michael Lawson
Vice President of Investor Relations and Corporate
Communications
301-682-0304
lawsonm@ussilica.com
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SOURCE U.S. Silica Holdings, Inc.