KATY, Texas, April 28, 2020 /PRNewswire/ -- U.S. Silica
Holdings, Inc. (NYSE: SLCA) today announced additional SG&A cost reductions of
approximately $17 million in response to the
COVID-19 pandemic and resulting lower North American
oilfield well completion activity.
The Company has closely monitored industry proppant
demand to align costs with market conditions and is
taking necessary actions including workforce
reductions, 401k match suspension, elimination of 2020 raises
for salaried employees, reduced senior executive salaries
and curtailed operating hours at several facilities.
"The decline in oil demand resulting from COVID-19 has driven a
precipitous decline in crude oil prices resulting in lower expected
near-term demand for well completion products and services such as
our frac sand and last mile logistics offerings,'' said Bryan
Shinn, chief executive officer. ''The strategic actions announced
today, along with our balanced business portfolio of
industrial customers, will position us well to continue to
outperform our competition in the short term and emerge from the
economic downturn in an advantaged position."
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 120-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 400 diversified
product types 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 25 mines and production
facilities. The Company is headquartered
in Katy, Texas and has offices in Reno,
Nevada, Chicago, Illinois
and Houston, Texas.
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 made include any statement that does not directly relate
to any historical or current fact and may include, but are not
limited to, statements regarding the U.S. Silica's expected annual
SG&A savings, ability to reduce costs or idle plants, the
general economic conditions, the duration of the COVID-19 pandemic
and U.S Silica's results of operations. 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 global economic
conditions; the effect of the COVID-19 pandemic on markets the
Company serves; fluctuations in demand for commercial silica,
diatomaceous earth, perlite, clay and cellulose; fluctuations in
demand for frac sand or the development of either effective
alternative proppants or new processes to replace hydraulic
fracturing; the entry of competitors into our marketplace; changes
in production spending by companies in the oil and gas industry and
changes in the level of oil and natural gas exploration and
development; general economic, political and business conditions in
key regions of the world; pricing pressure; changes in government
regulations and regulatory requirements, including those related to
mining, explosives, chemicals, and oil and gas production; and
other risks and uncertainties detailed in this press release and
our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished
to the U.S. Securities and Exchange Commission. If one or more
of these or other risks or uncertainties materialize (or the
consequences of such a development changes), or should underlying
assumptions prove incorrect, actual outcomes may vary materially
from those reflected in our 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.
Arjun Sreekumar
Manager, Treasury and Investor Relations
281-394-9584
sreekumar@ussilica.com
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SOURCE U.S. Silica Holdings, Inc.