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Smart Sand Sees Increases in 2016 Volumes


Smart Sand Inc. announced results for the fourth quarter and full year ended Dec. 31, 2016. Revenues were $59.2 million for the full year 2016, compared with $47.7 million for the full year 2015, a 24 percent increase year over year. Overall tons sold were approximately 826,400 in the full year 2016, compared with approximately 750,700 tons sold in the full year 2015, a 10 percent increase year over year.

Net income was $10.4 million, or $0.43 per basic and $0.42 per diluted share, for the full year 2016, compared with net income of $5.0 million, or $0.23 per basic and $0.19 per diluted share, for the full year 2015, an increase of 108 percent year over year.

“[Last year] was a transformational year for Smart Sand,” stated Charles Young, chief executive officer. “We were able to deliver improving sand sales volumes each quarter along with positive net income and EBITDA in a difficult operating environment for our industry for much of the year. Additionally, we completed our initial public offering in November 2016 and a successful follow on equity offering in February 2017. We are now essentially debt free, with the exception of a small amount of capital leases and notes payable, and have approximately $70 million in cash available to support growth initiatives. Market demand for raw frac sand has started out strong in 2017, especially for finer mesh grades, and we expect this trend to continue. With our reserve mix of approximately 81 percent finer mesh sand grades and our strong balance sheet, we are well positioned to take advantage of the expected growth in raw frac sand demand in 2017 and going forward.”

Revenues were $29.5 million in the fourth quarter of 2016, compared with $15.2 million during the fourth quarter of 2015, a 94 percent increase year over year. Fourth quarter 2016 revenue increased by 170 percent compared to third quarter 2016 revenue of $10.9 million.

Overall tons sold were approximately 274,500 in the fourth quarter of 2016, compared with approximately 107,200 tons sold in the fourth quarter of 2015 and 229,700 tons for the third quarter of 2016, increases of 156 percent and 19 percent, respectively.

The company generated net income of $12.5 million, or $0.40 per basic and diluted share, for the fourth quarter of 2016, compared with a net loss of $0.0 million, or $0.01 per basic and diluted share, for the fourth quarter of 2015 and a net loss of $0.1 million, or $0 per basic and diluted share, for the third quarter of 2016.