Smart Sand, Inc. (SND), a fully integrated frac and industrial sand supply and services company, has announced its financial results for the second quarter of 2024. The company reported strong performance with significant improvements across key metrics.
Strong Second Quarter Performance
Smart Sand sold approximately 1,274,000 tons of sand in the second quarter, representing an 18% increase compared to the same period in 2023. Revenue for the quarter reached $73.8 million, demonstrating a consistent performance compared to the previous year. The company achieved a net income before income tax of $1.9 million, highlighting the positive impact of cost-saving measures implemented during the quarter. Notably, adjusted EBITDA reached $11.9 million, signifying the company’s strong financial position.
Positive Outlook Despite Potential Slowdowns
While acknowledging potential slowdowns in activity in natural gas basins during the second half of the year due to low natural gas prices, Smart Sand remains optimistic about the long-term fundamentals for natural gas activity. The company expects to see increased activity in natural gas basins in 2025, positioning itself to capitalize on this anticipated growth.
Expanding Operations and Strengthening the Balance Sheet
Smart Sand is expanding its operations into the Utica shale formation in northeast Ohio, aiming to target oil opportunities. The company anticipates starting to market sand in this region during the third quarter, further diversifying its sales portfolio.
The company also strengthened its balance sheet by refinancing and extending the terms of its existing Oakdale Equipment financing. With a new $10 million, four-year equipment financing in place, Smart Sand has enhanced its liquidity levels and maintained low leverage.
Focus on Generating Positive Free Cash Flow
Smart Sand is committed to generating positive free cash flow on a consistent basis going forward. The company generated $13.5 million in free cash flow during the second quarter, a significant achievement driven by strong sales and decreased working capital pressure.
Key Highlights
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Tons sold:
Approximately 1,274,000 tons in the second quarter of 2024, a 5% decrease sequentially but an 18% increase compared to the second quarter of 2023.*
Revenues:
$73.8 million in the second quarter of 2024, a decrease compared to the first quarter of 2024 but relatively consistent with the second quarter of 2023.*
Net income before income tax:
$1.9 million in the second quarter of 2024, a significant increase compared to the first quarter of 2024.*
Adjusted EBITDA:
$11.9 million in the second quarter of 2024, an increase compared to both the prior quarter and the same period in 2023.*
Free cash flow:
$13.5 million in the second quarter of 2024, demonstrating strong liquidity and financial stability.Smart Sand’s strong second quarter results reflect the company’s commitment to operational efficiency and strategic growth. With a positive outlook for the long-term, the company is well-positioned to capitalize on anticipated industry growth in the coming years.
