U.S. Silica (SLCA) Tops Q3 EPS by 16c, Revenues Beat

U.S. Silica (NYSE: SLCA) reported Q3 EPS of ($0.19), $0.16 better than the analyst estimate of ($0.35). Revenue for the quarter came in at $176.5 million versus the consensus estimate of $175.18 million.

Third Quarter 2020 Highlights

Total Company

• Revenue of $176.5 million for the third quarter of 2020 compared with $172.5 million in the second quarter of 2020, up 2% sequentially and down 51% from the third quarter of 2019.
• Overall tons sold of 2.239 million for the third quarter of 2020 compared with 1.904 million tons sold in the second quarter of 2020, up 18% sequentially and down 54% from the third quarter of 2019.
• Net loss of $14.0 million, or $(0.19) per basic and diluted share, for the third quarter of 2020, compared with a net loss of $23.0 million, or $(0.31) per basic and diluted share, for the third quarter of 2019.
• Contribution margin of $73.8 million for the third quarter of 2020 compared with $61.3 million in the second quarter of 2020, up 20% sequentially and down 22% from the third quarter of 2019.
• Adjusted EBITDA of $51.3 million for the third quarter of 2020 compared with $40.8 million in the second quarter of 2020, up 26% sequentially and down 12% from the third quarter of 2019.

"I'd like to commend our team on delivering outstanding third quarter results despite a challenging, though improving, macro backdrop," said Bryan Shinn, chief executive officer. "Our Industrial segment volumes and profits both rebounded sharply as demand in several key end markets improved materially."

"In our Oil & Gas segment, sand volumes rose 15% and our Sandbox delivered loads surged 74% as industry frac activity and well completions climbed during the quarter. Increased volumes and cost reduction measures including the remeasurement of railcar leases helped drive a 20% sequential jump in segment profitability. Our teams have worked diligently to right-size our cost structure, particularly in the Oil & Gas segment, and the results of those efforts are now apparent," he added.

"We have transformed this more volatile business and equipped it to perform well under a variety of market conditions, while simultaneously continuing to invest in and grow our more stable, higher-margin Industrials business," Shinn concluded.

For earnings history and earnings-related data on U.S. Silica (SLCA) click here.

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