U.S. Markets close in 1 hr 19 mins

John Rogers Comments on Silica Holdings

- By Holly LaFon

Several stocks in the portfolio had strong returns in the quarter. Producer and supplier of sand, U.S. Silica Holdings, Inc. (NYSE:SLCA) advanced +71.22% during the quarter. SLCA delivered a solid earnings report highlighted by record full year revenues and adjusted EBITDA for the company; record contribution margin dollars and contribution per ton for its Industrial business; record volumes of sand proppant sales driven by an enhanced customer and product mix; as well as meaningful contributions from the acquisition of EP Minerals. Additionally, SLCA's SandBox Logistics(TM) business unit--a key part of our investment thesis--won several patent claims in the quarter that cover fundamental aspects of the technology, reaffirming the strength of its intellectual property and broad patent portfolio. Looking ahead, SLCA expects to substantially grow the Industrial segment by focusing on Specialty Minerals and Performance Material offerings. SLCA is also excited about the prospects for SandBox in 2019 and beyond, as the existing equipment is already sold out for the coming year, and the company is building new equipment as fast as it can to meet strong customer demand and exceed its market share projections.


From John Rogers (Trades, Portfolio)' first-quarter 2019 Ariel Fund shareholder letter.
This article first appeared on GuruFocus.