Stock Monitor: Platinum Group Metals Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 15, 2017 / Active-Investors free earnings report on US Silica Holdings, Inc. (NYSE: SLCA) ("US Silica") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SLCA. The Company reported its third quarter fiscal 2017 operating results on November 03, 2017. The commercial silica producer outperformed top- and bottom-line expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
US Silica's revenue soared 151% to $345 million in Q3 2017 compared to $137.7 million for Q3 2016. The Company's revenue numbers exceeded analysts' expectations of $328.6 million.
During Q3 2017, US Silica's overall tons sold totaled 4.08 million, up 63% compared to 2.49 million tons sold in Q3 2016. The Company's contribution margin was $120.1 million for the reported quarter, up 510% compared to $19.7 million in the year ago same period. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $96.7 million for Q3 2017 compared to $8.3 million in Q3 2016.
US Silica reported a net income of $41.3 million, or $0.51 per basic share, or $0.50 per diluted share, for Q3 2017 compared to a net loss of $11.3 million, or $0.17 per diluted share, for Q3 2016. The Company's reported quarter results were negatively impacted by $2.4 million in business development related expenses. Excluding this expense, net of the $0.9 million tax effect, US Silica's earnings per share (EPS) was $0.53 per basic share for Q3 2017, beating Wall Street's estimates of $0.49 per share.
During Q3 2017, US Silica's Oil and Gas segment's revenue totaled $286.4 million compared to $86.8 million for Q3 2016, up 230% on a y-o-y basis.
For Q3 2017, the Oil and Gas segment's tons sold totaled 3.15 million, reflecting an increase of 95% over the 1.62 million tons sold in Q3 2016. Out of the overall tons sold, 66% tons sold were in basin in the reported quarter compared to 62% sold in basin in Q2 2017. For Q3 2017, the segment's contribution margin was $96.1 million versus a loss of $1.9 million in Q3 2016.
During Q3 2017, US Silica's Industrial and Specialty Products segment's revenue jumped 15% to $58.7 million on a y-o-y basis in Q3 2017. The segment's tons sold totaled 0.93 million, up 6% over the 0.88 million tons sold in Q3 2016. The segment's contribution margin was $24 million in the reported quarter compared to $21.6 million in Q3 2016, reflecting an increase of 11% on a y-o-y basis.
Capital Update and Share Repurchase Plan
As of September 30, 2017, US Silica had $463.7 million in cash and cash equivalents, and $45.2 million available under its credit facilities. The Company's total debt at September 30, 2017, was $511.3 million. US Silica's capital expenditure totaled $130.7 million in Q3 2017, associated largely with the Company's growth projects, and other maintenance and cost improvement capital projects.
Subsequent to the end of Q3 2017, US Silica's Board of Directors approved a new share repurchase plan to repurchase up to $100 million of the Company's common stock. Commenting on the action, Bryan A. Shinn, President, Chief Executive Officer, and Director of US Silica, noted that: "US Silica is the only Company in the sand space".
Outlook and Guidance
US Silica is forecasting capital expenditure to be approximately $375 million for the full fiscal year 2017.
For the fourth quarter of the fiscal year 2017, the Company expects sand volumes to be up in the Oil and Gas segmen but perhaps restrained by some frac crews extending their holiday time off, plant downtime due to planned maintenance, and brief outages for capacity expansion work at a few mines.
For 2018, US Silica expects another strong year, driven by a record demand for frac sand, increased opportunities for Sandbox, and an increased market penetration for some of ISP's new, higher margin products. The Company expects to invest significantly in Sandbox, and is targeting to have over 100 crews online exiting 2018.
Stock Performance Snapshot
December 14, 2017 - At Thursday's closing bell, US Silica Holdings' stock advanced 1.59%, ending the trading session at $34.45.
Volume traded for the day: 1.93 million shares.
Stock performance in the last month – up 1.65%; previous three-month period – up 19.58%; and past six-month period – up 1.53%
After yesterday's close, US Silica Holdings' market cap was at $2.79 billion.
Price to Earnings (P/E) ratio was at 42.90.
The stock has a dividend yield of 0.73%.
The stock is part of the Basic Materials sector, categorized under the Industrial Metals & Minerals industry.
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