Investor’s Roundup: Smart Sand Inc (NASDAQ: SND)

On Wednesday, Shares of Smart Sand Inc (NASDAQ: SND) showed the bullish trend with a higher momentum of 5.36% and ended its trading session at $5.50. The company traded total volume of 513.75K shares as contrast to its average volume of 992.66K shares. The company has a market value of $217.75M and about 39.59M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $4.81 and reached the max level of $11.06.

Smart Sand, Inc. (SND), a pure-play, low-cost producer of high quality Northern White raw frac sand, recently declared results for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights:

Revenues were $42.60M in the first quarter of 2018, a slight decrease contrast to fourth quarter 2017 revenues of $43.00M.  The decrease in revenues was mainly because of higher production costs and lower freight revenue, offset by higher sales volumes and a higher average price per ton sold.  First quarter 2018 revenues increased by 70% contrasts to first quarter 2017 revenues of $25.10M.  The increase in revenues year over year was mainly because of higher sales volumes and higher freight revenue, resulting from increased shipments to customers to whom we bill freight charges.

Overall tons sold were about 723.0K in the first quarter of 2018, the highest in Company history, contrast to about 706,400 tons sold in the fourth quarter of 2017 and 559.0K tons in the first quarter of 2017, increases of 2% and 29%, respectively.

Net income was $1.00M, or $0.02 per basic and diluted share, for the first quarter of 2018, contrast with net income of $10.90M, or $0.27 per basic and diluted share, for the fourth quarter of 2017 and net income of $1.00M, or $0.02 per basic and diluted share, for the first quarter of 2017.  The decrease in net income contrast to the fourth quarter of 2017 was mainly because of a one-time tax benefit of $8.50M, or $0.21 per basic and diluted share, that was booked in the fourth quarter 2017 because of the changes in the U.S. tax laws that were enacted in December 2017.

Adjusted EBITDA was $5.90M for the first quarter of 2018 contrast to $3.70M during the same period last year, a boost of 58% on a year-over-year basis and a decrease of 34% contrast to fourth quarter 2017 Adjusted EBITDA of $8.90M.  The increase in Adjusted EBITDA contrast to the first quarter of 2017 was mainly because of higher sales volumes and higher freight revenue, partially offset by higher production costs.  The decrease in Adjusted EBITDA contrast to the fourth quarter of 2017 was mainly because of higher operating expenses incurred in anticipation of the expansion of our Oakdale facility, which we expect to be accomplished and operational during the second quarter of 2018, and less costs being capitalized to inventory while our wet plant operations are reduced during winter months.

Capital Expenditures:

Smart Sand’s capital expenditures totaled $46.90M for the quarter ended March 31, 2018, and were mostly associated with the expansion at our Oakdale sand processing facility, investment in various enhancement and cost improvement projects and our terminal investment in the Bakken.  The Company estimates that full year 2018 capital expenditures will be about $85 to $950M, excluding any additional acquisitions, of which $45.70M relates to capital expenditure carryover from 2017 to complete the expansion of our Oakdale facility to 5.50M tons of dry nameplate sand processing capacity.  This expansion is being commissioned and is expected to be fully operational in the second quarter of 2018.  At March 31, 2018, the Company had about $2.60M of cash on hand.  On April 6, 2018, the Company amended its credit facility to increase the amount available by $150M to $600M, of which $450M is presently available to support liquidity needs in 2018.

The Company offered net profit margin of 13.90% while its gross profit margin was 25.00%. ROE was recorded as 11.80%. The stock, as of recent close, has shown the weekly upbeat performance of 5.57% which was maintained at -36.49% in this year.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.