U.S. Silica Holdings Sees Healthy Revenue Increase in 2018 First Quarter
U.S. Silica’s net income reached $31.3 million in the 2018 first quarter, compared with net income of $2.5 million for the first quarter of 2017.
U.S. Silica Holdings, Inc. recently announced that its revenue in the first quarter of 2018 totaled $56.4 million, an increase of 3% over the fourth quarter of 2017 and 9% over the first quarter of 2017. Tons sold totaled 0.877 million, an increase of 3% compared with the 0.851 million tons sold in the fourth quarter of 2017 and 2% compared with the first quarter of 2017.
Net income reached $31.3 million in the 2018 first quarter, compared with net income of $2.5 million for the first quarter of 2017. The first quarter results were negatively impacted by $9.4 million in plant start-up and expansion expense, $2.5 million in M&A-related expense, and a net loss on sale of assets of $3.4 million, resulting in adjusted EPS for the first quarter of $0.54 per basic and diluted share.
“I’m very pleased with our strong first quarter results and the progress we made in advancing our top strategic initiatives, including our acquisition of EP Minerals, which I believe will grow and diversify our earnings stream and create additional value for our shareholders,” said Bryan Shinn, president and CEO. “Our Oil and Gas business sold record tons during the quarter, made good progress in building out our West Texas expansions and signed a number of new long-term supply agreements. Our Sandbox unit also performed very well during the quarter, with contribution margin up 23%, driven by higher volumes, lower costs and targeted price increases. Our legacy ISP business in the first quarter was successful in implementing price increases on several whole-grain and fine-grade products, which we expect will drive higher margins going forward.
For the second quarter, the company expects volumes in Oil and Gas to be up in the range of 10-15%. Spot pricing is expected to continue to increase in the second quarter at mid-single digit rates, and some contract volumes indexed to the horizontal rig count are anticipated to reset to higher pricing as well.
For more information, visit www.ussilica.com.