July 30, 2019
The Houston area’s US Silica Holdings Inc. easily beat Q2 earnings expectations with second quarter revenue of $394.9 million and net income of $6.2 million, or $0.08 per basic and diluted share.
The Katy-based last mile logistics provider to the oil and gas industry said Tuesday its overall volumes sold rose 9% year-over-year and 2% quarter-over-quarter to 4.9 million tons.
In its O&G segment, US Silica said it sold a record 3.9M tons as west Texas capacity continued to increase in size, contributing $71.5 million to the company’s bottom line.
And US Silica noted a 21% year-over-year improvement in its Sandbox technology’s contribution of margin dollars to a record $50.1 million ($51.61 per ton) even as total tons sold fell by 5%.
The company says this shows the effectiveness of its strategy of increasing focus on higher margin products, Seeking Alpha notes.
President and CEO Bryan Shinn.said, “Our Industrial and Specialty Products business delivered record contribution margin in the second quarter and Sandbox had all-time record delivered loads,” said
Future plans include reducing debt, with some free cash flow after capex to generate dividends.