Roguish Sand, Inc. Proclaims 2d Quarter 2024 Effects

• 2Q 2024 overall lots bought of roughly 1.3 million
• 2Q 2024 income of $73.8 million
• 2Q 2024 internet source of revenue earlier than source of revenue taxes $1.9 million
• 2Q 2024 adjusted EBITDA of $11.9 million

YARDLEY, Penn., Aug. 13, 2024 /PRNewswire/ — Roguish Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a completely built-in frac and business sand provide and services and products corporate, a cheap manufacturer of prime detail Northern White frac sand, a proppant logistics answers supplier via each its in-basin transloading terminals and SmartSystems™️ services and a supplier of commercial product answers, these days introduced effects for the second one quarter of 2024.

“Smart Sand had a strong second quarter” said Charles Younger, Roguish Sand’s Well-known Government Officer.  “We applied a number of potency measures all through the quarter to leave our manufacturing prices and administrative bills that ended in our contribution margin, adjusted EBITDA and sovereign coins current all making improvements to in comparison to first quarter 2024 effects.

“Currently we continue to see strong demand in the main operating basins we serve.  However, natural gas prices remain at low levels and exploration and production are continuing their recent trends of front-loading budget spending. So, we are keeping a close eye on activity levels and are prepared to right size our operations as needed should we see a slowdown in activity.   We returned to being free cash flow positive in the second quarter and we expect to be free cash flow positive for 2024.  While we could see some slowdown in activity in natural gas basins in the second half of the year, we believe long-term fundamentals for natural gas activity remain strong and we are well positioned to take advantage of expected increased activity in natural gas basins in 2025.  Additionally, we expect to start marketing sand in the Utica shale formation in the third quarter through our new terminals in northeast Ohio. Activity in this basin is targeting oil opportunities and increased activity in this market will help balance our sales volumes between oil and gas markets.  We continue to strengthen our balance sheet as we refinanced and extended the terms our existing Oakdale Equipment financing under a new $10 million, four year equipment financing. Our liquidity levels are strong, our leverage levels remain low. We remain focused on generating positive free cash flow on a consistent basis going forward.”

2d Quarter 2024 Highlights

Heaps bought had been roughly 1,274,000 in the second one quarter of 2024, in comparison to roughly 1,336,000 lots within the first quarter of 2024 and 1,084,000 lots in the second one quarter of 2023, a 5% short sequentially and 18% building up over the related duration in 2023.

Revenues had been $73.8 million in the second one quarter of 2024, in comparison to $83.1 million within the first quarter of 2024 and $74.8 million in the second one quarter of 2023. Revenues diminished in the second one quarter of 2024, in comparison to the primary quarter of 2023, basically because of decrease overall sand gross sales. 2d quarter 2024 revenues had been fairly constant in comparison to 2nd quarter 2023, because of upper overall sand gross sales, which have been offset by means of decrease common promoting costs.

For the second one quarter of 2024, we had internet source of revenue earlier than source of revenue tax of $1.9 million, in comparison to a internet source of revenue earlier than source of revenue tax of $0.4 million, for the primary quarter of 2024 and internet source of revenue earlier than source of revenue tax of $3.0 million, for the second one quarter of 2023. Source of revenue tax expense and advantages distorts our result of operations. We don’t be expecting to assemble bills for federal source of revenue tax in 2024. For the second one quarter of 2024, we had upper internet source of revenue earlier than source of revenue tax expense as in comparison to the primary quarter of 2024, basically because of discovered financial savings on cost-saving measures to leave our total running prices. The web source of revenue earlier than source of revenue taxes in the second one quarter of 2024 as in comparison to the second one quarter of 2023 used to be decrease basically because of the loss on extinguishment of debt within the new duration.

2d quarter 2024 contribution margin of $19.8 million, or $15.53 in line with ton bought, used to be an building up in comparison to $18.5 million, or $13.85 in line with ton bought, for the primary quarter of 2024, and 2nd quarter 2023 contribution margin of $19.0 million, or $17.57 in line with ton bought. The rise in contribution margin, in comparison to the primary quarter of 2024, used to be due basically to stepped forward manufacturing prices discovered from charge reducing measures, which led to better contribution margin in line with ton bought, in part offset by means of decrease overall volumes. The rise in overall contribution margin in the second one quarter 2024 as in comparison to the second one quarter 2023, used to be basically because of upper usage of our SmartSystems fleet and an building up in overall volumes bought, together with decrease manufacturing prices within the new duration, in part offset by means of decrease common promoting costs.

Adjusted EBITDA used to be $11.9 million for the second one quarter of 2024, in comparison to $9.3 million for the primary quarter of 2024 and $11.3 million for the second one quarter of 2023. The rise in adjusted EBITDA in the second one quarter of 2024 in comparison to the prior quarter used to be basically because of upper contribution margin in line with ton bought within the new duration, in part offset by means of decrease overall volumes bought. The little building up within the new duration in comparison to the similar duration within the prior while used to be basically because of upper volumes of sand bought and greater usage of our SmartSystems fleet, offset by means of decrease common promoting costs.

Internet coins supplied by means of running actions used to be $14.9 million in the second one quarter of 2024, in comparison to internet coins old in running actions of $(3.9) million within the first quarter of 2024 and internet coins supplied by means of running actions of $16.1 million in the second one quarter of 2023. The rise in coins current from operations in the second one quarter of 2024 in comparison to the primary quarter of 2024 used to be basically because of diminished operating capital drive pushed by means of persistently robust gross sales over the primary part of 2024. The moderate in coins flows from running actions from the similar duration within the prior while used to be because of decrease common promoting costs within the new duration.

Isolated coins current used to be $13.5 million for the second one quarter of 2024. Internet coins supplied by means of running actions used to be $14.9 million and capital expenditures had been $1.4 million in the second one quarter of 2024. We lately estimate that complete while 2024 capital expenditures will probably be between $10.0 million and $13.0 million.

Liquidity

Our number one assets of liquidity are coins readily available, coins current generated from operations and to be had borrowings beneath our ABL Credit score Facility. As of June 30, 2024, coins readily available used to be $6.3 million and we had $18.0 million in undrawn availability on our ABL Credit score Facility.

Convention Name

Roguish Sand will host a convention name and reside webcast for analysts and traders on August 14, 2024 at 10:00 a.m. Japanese Month to speak about its 2nd quarter 2024 monetary effects. Buyers are invited to fasten the convention by means of dialing (646) 357-8785 or 1-800-836-8184 and referencing “Smart Sand” when hooked up to the operator. Moreover, the decision will also be streamed by means of webcast at  https://app.webinar.net/nbB1GQJmQRd or inside the “Investors” category of the Corporate’s site at www.smartsand.com. A replay will probably be to be had in a while next the decision and may also be accessed at the “Investors” category of the Corporate’s site.

Ahead-looking Statements

All statements on this information drop alternative than statements of ancient details are forward-looking statements that include our Corporate’s new expectancies about our past effects, together with the Corporate’s expectancies relating to past gross sales. We now have tried to spot any forward-looking statements by means of the use of phrases equivalent to “expect,” “will,” “estimate,” “believe” and alternative homogeneous expressions. Even supposing we imagine that the expectancies mirrored and the suppositions or bases underlying our forward-looking statements are affordable, we will be able to give incorrect word of honour that such expectancies will turn out to be proper. Such statements aren’t promises of past efficiency or occasions and are topic to recognized and unknown dangers and uncertainties that might reason our fresh effects, occasions or monetary positions to fluctuate materially from the ones incorporated inside or implied by means of such forward-looking statements.

Elements that might reason our fresh effects to fluctuate materially from the effects pondered by means of such forward-looking statements come with, however aren’t restricted to, fluctuations in product call for, delays within the final touch of positive growth and growth initiatives at our present amenities or failure to acknowledge the expected advantages of such initiatives, regulatory adjustments, hostile climate situations, greater gasoline costs, upper transportation prices, get admission to to capital, greater festival, adjustments in financial or political situations, and such alternative components mentioned or referenced within the “Risk Factors” category of the Corporate’s Annual Document on Mode 10-Ok for the while ended December 31, 2023, filed by means of the Corporate with the U.S. Securities and Change Fee (“SEC”) on March 11, 2024, and within the Corporate’s Quarterly Document on Mode 10-Q for the quarter ended June 30, 2024, filed by means of the Corporate with the SEC on August 13, 2024.

You must now not park undue reliance on our forward-looking statements. Any forward-looking commentary speaks best as of the day on which such commentary is made, and we adopt incorrect legal responsibility to publicly replace or revise any forward-looking commentary, whether or not because of unused data, past occasions, modified cases or differently, until required by means of legislation.

About Roguish Sand

Roguish Sand is a completely built-in frac and business sand provide and services and products corporate, providing entire mine to wellsite proppant and logistic answers to our frac sand consumers, and a vast providing of goods for business sand consumers. The Corporate produces cheap, prime detail Northern White sand, which is a top class sand old as a proppant to make stronger hydrocarbon fix charges within the hydraulic fracturing of oil and herbal gasoline wells. The Corporate’s sand may be a top quality product old in a lot of business programs, together with glass, foundry, development merchandise, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, laze and extra. The Corporate additionally deals logistics answers to our consumers via its in-basin transloading terminals and our SmartSystems wellsite bank features. Roguish Sand owns and operates top class sand mines and homogeneous processing amenities in Wisconsin and Illinois, that have get admission to to 4 Magnificence I rail strains, permitting the Corporate to bring merchandise considerably any place in america and Canada. For more info, please consult with www.smartsand.com.

Non-GAAP Monetary Measures

Contribution Margin

We additionally utility contribution margin, which we outline as overall revenues much less prices of products bought except depreciation, depletion and accretion of asset escape duties, to measure its monetary and running efficiency. Contribution margin excludes alternative running bills and source of revenue, together with prices indirectly related to the operations of the Corporate’s industry equivalent to accounting, human assets, data era, prison, gross sales and alternative administrative actions. 

We imagine that reporting contribution margin and contribution margin in line with ton bought supplies helpful efficiency metrics to control and exterior customers of our monetary statements, equivalent to traders and business banks, as a result of those metrics grant an running and monetary measure of our skill, as a blended industry, to generate margin in huge of our running charge bottom.

Rude benefit is the GAAP measure maximum at once related to contribution margin. Contribution margin must now not be regarded as an extra to rude benefit introduced in response to GAAP. As a result of contribution margin is also outlined in a different way by means of alternative firms within the trade, our definition of contribution margin will not be related to in a similar fashion titled measures of alternative firms, thereby diminishing its usefulness. Refer to desk gifts a reconciliation of rude benefit to contribution margin.

EBITDA and Adjusted EBITDA

We outline EBITDA as internet source of revenue, plus: (i) depreciation, depletion and amortization expense; (ii) source of revenue tax expense (receive advantages) and alternative result of operations founded taxes; and (iii) pastime expense. We outline Adjusted EBITDA as EBITDA, plus: (i) achieve or loss on sale of fastened property or discontinued operations; (ii) integration and transition prices related to specified transactions; (iii) fairness reimbursement; (iv) acquisition and construction prices; (v) non-recurring coins fees homogeneous to restructuring, retention and alternative homogeneous movements; (vi) earn-out, contingent attention duties; and (vii) non-cash fees and abnormal or non-recurring fees. Adjusted EBITDA is old as a supplemental monetary measure by means of control and by means of exterior customers of our monetary statements, equivalent to traders and business banks, to evaluate:

• the monetary efficiency of our property with out regard to the have an effect on of financing modes, capital construction or ancient charge foundation of our property;
• the viability of capital expenditure initiatives and the whole charges of go back on extra funding alternatives;
• our skill to incur and repair debt and capitaltreasury capital expenditures;
• our running efficiency as in comparison to the ones of alternative firms in our trade with out regard to the have an effect on of financing modes or capital construction; and
• our debt covenant compliance, as Adjusted EBITDA is a key attribute of vital covenants to the ABL Credit score Facility.

We imagine that our presentation of EBITDA and Adjusted EBITDA will grant helpful data to traders in assessing our monetary status and result of operations. Internet source of revenue is the GAAP measure maximum at once related to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA must now not be regarded as possible choices to internet source of revenue introduced in response to GAAP. As a result of EBITDA and Adjusted EBITDA is also outlined in a different way by means of alternative firms in our trade, our definitions of EBITDA and Adjusted EBITDA will not be related to in a similar fashion titled measures of alternative firms, thereby diminishing their usefulness. Refer to desk gifts a reconciliation of internet (loss) source of revenue to EBITDA and Adjusted EBITDA for every of the sessions indicated.

Isolated Money Current

Isolated coins current, which we outline as internet coins supplied by means of running actions much less purchases of attribute, plant and gear, is old as a supplemental monetary measure by means of our control and by means of exterior customers of our monetary statements, equivalent to traders and business banks, to measure the liquidity of our industry.

Internet coins supplied by means of running actions is the GAAP measure maximum at once related to sovereign coins current. Isolated coins current must now not be regarded as an extra to internet coins supplied by means of running actions introduced in response to GAAP. As a result of sovereign coins flows is also outlined in a different way by means of alternative firms in our trade, our definition of sovereign coins current will not be related to in a similar fashion titled measures of alternative firms, thereby diminishing its usefulness. Refer to desk gifts a reconciliation of internet coins supplied by means of (old in) running actions to sovereign coins current.

Investor Contacts:
Lee Beckelman
Well-known Monetary Officer
(281) 231-2660
[email protected]

SOURCE Roguish Sand, Inc.