U.S. Silica Sees Revenue Drop 27% in 2015
U.S. Silica Holdings, Inc. recently announced a net loss of $15.3 million (or $0.29 per basic and diluted share) for the fourth quarter ended December 31, 2015, compared with net income of $33.2 million (or $0.62 per basic share and $0.61 per diluted share) for the fourth quarter of last year. The company’s fourth quarter results were negatively impacted by $2.1 million in costs for actions designed to help bring the business more in line with current market conditions, $2.4 million for business development related expenses, and $1.1 million in equipment write-off charges. Excluding these expenses and the tax benefit, EPS was $0.26 per basic share for the quarter.
“Our fourth quarter and full year results reflect the severe impact lower oil prices have had on our Oil and Gas business in 2015, but also underscore the relevance of being a low-cost producer with a diversified business model and a strong balance sheet,” said Bryan Shinn, president and CEO. “Despite the headwinds, we increased market share in our Oil and Gas business by 50%, completed a record year for profitability in our Industrial and Specialty Products segment and generated free cash flow from operations. I believe the accomplishments achieved in 2015, coupled with the steps we are taking in 2016 to further reduce our costs, leverage our competitive advantages and protect our balance sheet will further strengthen our company and position us well for long-term success.”
Revenue totaled $643 million, compared with $876.7 million for the full year of 2014, a decrease of 27%. Overall tons sold were 10 million tons, compared with 10.9 million tons for 2014, a decrease of 8%. Selling, general and administrative expense for the year totaled $62.8 million, compared with $89 million last year, representing 10% of revenue for both years. Contribution margin was $159.1 million, or 25% of revenue, compared with $317.2 million, or 36% of revenue in 2014. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $109.5 million, or 17% of revenue, compared with $246.2 million, or 28% of revenue last year. Net income was $11.9 million, or $0.22 per basic share, compared with $121.5 million, or $2.26 per basic share, last year.
Revenue totaled $136.1 million, compared with $249.6 million for the fourth quarter of last year, a decrease of 45%. Overall tons sold were 2.5 million tons, a decrease of 18% from the 3.0 million tons last year. Contribution margin for the quarter was $22.1 million, a decrease of 76% compared with $93.9 million last year. Adjusted EBITDA was $10.8 million, or 8% of revenue, vs. $67.0 million, or 27% of revenue, for the same period last year.
Revenue for the quarter in Oil and Gas totaled $88.8 million, compared with $196.0 million for the same period last year. 54% of the volume was sold in basin, compared with 66% last year. Tons sold totaled 1.6 million tons, compared with 2 million tons sold in the fourth quarter of 2014. Segment contribution margin was $7 million vs. $80.4 million last year.
Revenue for the quarter in Industrial and Specialty Products totaled $47.3 million, compared with $53.5 million for the same period in 2014. Tons sold totaled 0.9 million tons, compared with 1.0 million tons sold last year. Segment contribution margin was $15.2 million vs. $13.5 million in the fourth quarter of 2014.
For more information, visit www.ussilica.com.