KATY, Texas, May 8, 2020 /PRNewswire/ -- U.S. Silica Holdings,
Inc. (NYSE: SLCA) ("U.S. Silica" or the "Company") today announced
that its Board of Directors has elected to suspend the Company's
quarterly cash dividend of $0.02 per
common share until further notice.
U.S. Silica took this action as part of the Company's strategy
to preserve capital and tightly manage its liquidity in a
challenging commodity price environment.
"A great deal of thought and deliberation went into this
decision and we fully understand its importance to our
shareholders," said Bryan Shinn, chief executive officer.
"We believe that suspending our dividend at this time is
in the best interest of the Company and shareholders as it
allows us to preserve and invest that capital in opportunities
within our industrial business that will generate higher long-term
shareholder returns."
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 23 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
The presentation referred to above contains "forward-looking
statements" within the meaning of the federal securities laws -
that is, statements about the future, not about past events.
Forward-looking statements give our current expectations and
projections relating to our financial condition, results of
operations, plans, objectives, future performance and business.
These statements may include words such as "anticipate,"
"estimate," "expect," "project," "plan," "intend," "believe,"
"may," "will," "should," "could," "can have," "likely" and other
words and terms of similar meaning. 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 Company's strategy, future
financial results, forecasts, projections, plans and capital
expenditures, ability to reduce costs, the impacts of COVID-19 on
the Company's operations, 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 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; weather and seasonal factors; the cyclical nature
of our customers' business; our inability to meet our financial and
performance targets and other forecasts or expectations; our
substantial indebtedness and pension obligations, including
restrictions on our operations imposed by our indebtedness;
operational modifications, delays or cancellations; prices for
electricity, natural gas and diesel fuel; our ability to maintain
our transportation network; changes in government regulations and
regulatory requirements, including those related to mining,
explosives, chemicals, and oil and gas production; silica-related
health issues and corresponding litigation; and other risks and
uncertainties detailed in this press release and our 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 of the presentation referred to above,
and we disclaim 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.