YARDLEY, PA — Smart Sand, Inc. (NASDAQ: SND) has released its third quarter 2024 financial results, showing mixed performance amid market adjustments. The company reported selling approximately 1.2 million tons of sand, generating $63.2 million in revenue. Although this represents a decrease from both the previous quarter and the same period last year, the company remains focused on its strategic goals.
CEO Chuck Young emphasized the company’s positive cash flow, stating, “We are pleased to report that our continued focus on pro-actively managing our cost structure and capital expenditures led to positive free cash flow for the quarter.” Smart Sand’s adjusted EBITDA for the quarter was $5.7 million, down from $11.9 million in the second quarter and $13.2 million in the third quarter of 2023.
The company announced a net income loss of $5.2 million before taxes for the quarter. The decline in revenue and net income was largely attributed to lower sales volumes and average selling prices, alongside reduced SmartSystem rental revenue due to fleet utilization adjustments.
Despite these challenges, Smart Sand has laid the groundwork for future growth. Recently, the company secured a five-year $30 million asset-based lending (ABL) credit facility with First Citizens Bank, providing financial flexibility for future opportunities. This move reflects the company’s commitment to strategically managing its business in evolving market conditions.
In a significant shareholder-focused initiative, Smart Sand declared a special dividend of $0.10 per share, issued in late October, and announced a share buyback plan of up to $10 million. “We remain cash flow positive for 2024, and in keeping with our stated goal of returning capital to our shareholders this year,” Young noted.
Looking ahead, Smart Sand remains optimistic about the long-term fundamentals of the oil and gas sector. With anticipated demand growth for natural gas in the US and Canada, and increased activity expected in the Utica basin, the company forecasts an uptick in activity and volumes into 2025.
Smart Sand closed the third quarter with $7.2 million in cash on hand and $30 million available under the new credit facility, ensuring robust liquidity to navigate the current market landscape and capitalize on emerging opportunities.
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