-
Company posts record earnings and revenue for the quarter and the
year
-
Revenue increased 50% in 2012
-
Adjusted EBITDA improved 61% over full year 2011
-
EPS increased 146% in 2012 compared with 2011
FREDERICK, Md.--(BUSINESS WIRE)--Feb. 26, 2013--
U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today net income of
$21.8 million or $0.41 per basic and diluted share for the fourth
quarter ended Dec. 31, 2012 compared with net income of $10.0 million or
$0.20 per basic and diluted share for the same period in 2011.
Bryan A. Shinn, president and chief executive officer of the company
commented, “2012 was truly exceptional for U.S. Silica, starting with
our successful initial public offering at the beginning of the year and
concluding with record financial results for the full twelve months. Our
success is due largely to the power of our business model, our strong
customer relationships and the drive and determination of our talented
group of employees.” Shinn continued, “Looking ahead, we have
strategically positioned ourselves well in all of our major markets to
provide a strong platform for sustained growth and increased
profitability in 2013.”
Fiscal 2012 Highlights
Total Company
-
Revenue totaled $441.9 million compared with $295.6 million in 2011,
driven primarily by strength in the Oil and Gas Proppants segment.
-
Overall sales volumes increased to 7.2 million tons or 14% above the
prior year sales volume of 6.3 million tons.
-
Contribution margin totaled $193.7 million compared with $120.6
million in 2011.
-
Adjusted EBITDA was $150.6 million or 34.0% of revenue compared with
$93.6 million or 31.7% of revenue in 2011.
-
Net income was $79.2 million or $1.50 per basic and diluted share
compared with $30.3 million or $0.61 per basic and diluted share for
the full year 2011.
-
Cash and cash equivalents at Dec. 31, 2012 totaled $61.0 million
versus $59.2 million at Dec. 31, 2011.
Fourth Quarter 2012 Highlights
Total Company
-
Revenue totaled $118.8 million compared with $83.6 million for the
same period in 2011, an improvement of 42.1%. The increase was driven
primarily by strength in the Oil and Gas Proppants segment.
-
Overall sales volumes increased to 1.8 million tons or 10.0% above the
fourth quarter of 2011.
-
Contribution margin for the quarter of $50.5 million was $12.2 million
or 32% higher than the same period last year.
-
Adjusted EBITDA was $39.0 million or 32.8% of revenue compared with
$27.2 million or 32.5% of revenue for the same period last year.
-
Net income was $21.8 million compared with $10.0 million in the fourth
quarter 2011, an improvement of 117.0%.
Oil and Gas
-
Revenue for the quarter totaled $70.9 million compared with $37.8
million in the same period in 2011.
-
Segment contribution margin was $37.5 million versus $23.8 million in
the fourth quarter of 2011.
Industrial and Specialty Products
-
Revenue for the quarter totaled $47.9 million compared with $45.9
million for the same period in 2011.
-
Segment contribution margin was $13.0 million versus $14.5 million in
the fourth quarter of 2011.
Capital Update
As of Dec. 31, 2012, the Company had $61.0 million in cash and cash
equivalents and $32.1 million available under its credit facilities.
Total outstanding debt at Dec. 31, 2012 totaled $255.4 million. Capital
expenditures in 2012 totaled $105.7 million and were associated
primarily with investments in a new resin-coated proppant plant in
Rochelle, IL, a new Greenfield mine in Sparta, WI and various
investments in its logistics network company-wide.
In December, 2012, the Company amended its credit facility which
increases the commitment from $35 million to $50 million, garners more
favorable fees and terms and extends the length of the agreement by one
year.
Outlook and Guidance
The company expects first quarter 2013 revenues of approximately $115
million to $123 million and adjusted EBITDA of between $36 million and
$39 million. For the full year, 2013, the Company anticipates adjusted
EBITDA in the range of $165 million to $175 million. In addition, the
Company expects capital expenditures of between $50 million to $60
million and an effective tax rate of approximately 27% to 28%.
Conference Call
U.S. Silica will host a conference call for investors today, Feb. 26,
2013 at 10:00 a.m. Eastern Time to discuss these results. Hosting the
call will be Bryan A. Shinn, President and Chief Executive Officer and
Don Merril, Vice President and Chief Financial Officer. Investors are
invited to listen to a live webcast of the conference call by visiting
the “Investor Resources” section of the Company’s website at www.ussilica.com.
The webcast will be archived for one year. The call can also be accessed
live over the telephone by dialing (877) 705-6003 or for international
callers, (201) 493-6725. A replay will be available shortly after the
call and can be accessed by dialing (877) 870-5176, or for international
callers, (858) 384-5517. The Passcode for the replay is 408533. The
replay of the call will be available through March 26, 2013.
About U.S. Silica
U.S. Silica Holdings, Inc., a Delaware corporation, is the second
largest domestic producer of commercial silica, a specialized mineral
that is a critical input into the oil and gas proppants end market. The
company also processes ground and unground silica sand for a variety of
industrial and specialty products end markets such as glass, fiberglass,
foundry molds, municipal filtration and recreational uses. During its
100-plus year history, U.S. Silica Holdings, Inc. has developed core
competencies in mining, processing, logistics and materials science that
enable it to produce and cost-effectively deliver over 250 products to
customers across these end markets. U.S. Silica Holdings, Inc. is
headquartered in Frederick, MD.
Forward-looking Statements
Certain statements in this press release are “forward-looking
statements” made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and speak only as of this date.
Forward-looking statements made include any statement that does not
directly relate to any historical or current fact and may include, but
are not limited to, statements regarding U.S. Silica’s growth
opportunities, strategy, future financial results, forecasts,
projections, plans and capital expenditures, and the commercial silica
industry. Forward-looking statements are based on our current
expectations and assumptions, which may not prove to be accurate. These
statements are not guarantees and are subject to risks, uncertainties
and changes in circumstances that are difficult to predict. Many factors
could cause actual results to differ materially and adversely from these
forward-looking statements. Among these factors are: (1) fluctuations in
demand for commercial silica; (2) the cyclical nature of our customers’
businesses; (3) operating risks that are beyond our control; (4)
federal, state and local legislative and regulatory initiatives relating
to hydraulic fracturing; (5) our ability to implement our capacity
expansion plans within our current timetable and budget; (6) loss of, or
reduction in, business from our largest customers; (7) increasing costs
or a lack of dependability or availability of transportation services or
infrastructure; (8) our substantial indebtedness and pension
obligations; (9) our ability to attract and retain key personnel; (10)
silica-related health issues and corresponding litigation; (11) seasonal
and severe weather conditions; and (12) extensive and evolving
environmental, mining, health and safety, licensing, reclamation and
other regulation (and changes in their enforcement or interpretation).
Additional information concerning these and other factors can be found
in U.S. Silica’s filings with the Securities and Exchange Commission. We
undertake no obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or otherwise,
except as otherwise required by law.
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U.S. SILICA HOLDINGS, INC.
|
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CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
|
(in thousands, except per share amounts)
|
|
Sales
|
|
|
$
|
118,846
|
|
|
|
$
|
83,631
|
|
|
Cost of goods sold (excluding depreciation, depletion and
amortization)
|
|
|
|
70,988
|
|
|
|
|
50,051
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
11,542
|
|
|
|
|
6,856
|
|
|
Advisory fees to parent
|
|
|
|
-
|
|
|
|
|
8,313
|
|
|
Depreciation, depletion and amortization
|
|
|
|
7,179
|
|
|
|
|
5,363
|
|
|
|
|
|
|
18,721
|
|
|
|
|
20,532
|
|
|
Operating income
|
|
|
|
29,137
|
|
|
|
|
13,048
|
|
|
Other (expense) income
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(3,244
|
)
|
|
|
|
(3,902
|
)
|
|
Other income, net, including interest income
|
|
|
|
3,931
|
|
|
|
|
528
|
|
|
|
|
|
|
687
|
|
|
|
|
(3,374
|
)
|
|
Income before income taxes
|
|
|
|
29,824
|
|
|
|
|
9,674
|
|
|
Income tax (expense) benefit
|
|
|
|
(8,030
|
)
|
|
|
|
371
|
|
|
Net income
|
|
|
$
|
21,794
|
|
|
|
$
|
10,045
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.41
|
|
|
|
$
|
0.20
|
|
|
Diluted
|
|
|
$
|
0.41
|
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. SILICA HOLDINGS, INC.
|
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CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
|
(in thousands)
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
61,022
|
|
|
|
$
|
59,199
|
|
|
Accounts receivable, net
|
|
|
|
59,564
|
|
|
|
|
46,600
|
|
|
Inventories, net
|
|
|
|
39,835
|
|
|
|
|
29,307
|
|
|
Prepaid expenses and other current assets
|
|
|
|
6,738
|
|
|
|
|
8,561
|
|
|
Deferred income tax, net
|
|
|
|
10,108
|
|
|
|
|
28,007
|
|
|
Income tax receivable
|
|
|
|
-
|
|
|
|
|
3,895
|
|
|
Total current assets
|
|
|
|
177,267
|
|
|
|
|
175,569
|
|
|
Property, plant and mine development, net
|
|
|
|
414,218
|
|
|
|
|
336,788
|
|
|
Debt issuance costs, net
|
|
|
|
2,111
|
|
|
|
|
1,291
|
|
|
Goodwill
|
|
|
|
68,403
|
|
|
|
|
68,403
|
|
|
Trade names
|
|
|
|
10,436
|
|
|
|
|
10,436
|
|
|
Customer relationships, net
|
|
|
|
6,531
|
|
|
|
|
6,942
|
|
|
Other assets
|
|
|
|
7,844
|
|
|
|
|
6,367
|
|
|
Total assets
|
|
|
$
|
686,810
|
|
|
|
$
|
605,796
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Book overdraft
|
|
|
$
|
5,390
|
|
|
|
$
|
5,588
|
|
|
Accounts payable
|
|
|
|
37,333
|
|
|
|
|
36,579
|
|
|
Accrued liabilities
|
|
|
|
9,481
|
|
|
|
|
9,875
|
|
|
Accrued interest
|
|
|
|
2
|
|
|
|
|
1,659
|
|
|
Current portion of long-term debt
|
|
|
|
2,433
|
|
|
|
|
6,364
|
|
|
Income tax payable
|
|
|
|
20,596
|
|
|
|
|
-
|
|
|
Current portion of deferred revenue
|
|
|
|
4,855
|
|
|
|
|
10,393
|
|
|
Total current liabilities
|
|
|
|
80,090
|
|
|
|
|
70,458
|
|
|
Long-term debt
|
|
|
|
252,992
|
|
|
|
|
255,425
|
|
|
Note payable to parent
|
|
|
|
-
|
|
|
|
|
15,000
|
|
|
Liability for pension and other post-retirement benefits
|
|
|
|
52,747
|
|
|
|
|
52,078
|
|
|
Deferred revenue
|
|
|
|
-
|
|
|
|
|
2,128
|
|
|
Deferred income tax, net
|
|
|
|
59,111
|
|
|
|
|
75,915
|
|
|
Other long-term obligations
|
|
|
|
10,176
|
|
|
|
|
12,858
|
|
|
Total liabilities
|
|
|
|
455,116
|
|
|
|
|
483,862
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
529
|
|
|
|
|
500
|
|
|
Preferred stock
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
|
163,579
|
|
|
|
|
103,757
|
|
|
Retained earnings
|
|
|
|
82,731
|
|
|
|
|
30,038
|
|
|
Treasury stock, at cost
|
|
|
|
(970
|
)
|
|
|
|
-
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(14,175
|
)
|
|
|
|
(12,361
|
)
|
|
Total stockholders’ equity
|
|
|
|
231,694
|
|
|
|
|
121,934
|
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
686,810
|
|
|
|
$
|
605,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is not a measure of our financial performance or
liquidity under GAAP and should not be considered as an alternative to
net income as a measure of operating performance, cash flows from
operating activities as a measure of liquidity or any other performance
measure derived in accordance with GAAP. Additionally, Adjusted EBITDA
is not intended to be a measure of free cash flow for management’s
discretionary use, as it does not consider certain cash requirements
such as interest payments, tax payments and debt service requirements.
Adjusted EBITDA contains certain other limitations, including the
failure to reflect our cash expenditures, cash requirements for working
capital needs and cash costs to replace assets being depreciated and
amortized, and excludes certain non-recurring charges that may recur in
the future. Management compensates for these limitations by relying
primarily on our GAAP results and by using Adjusted EBITDA only
supplementally. Our measure of Adjusted EBITDA is not necessarily
comparable to other similarly titled captions of other companies due to
potential inconsistencies in the methods of calculation.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
|
(in thousands)
|
|
Net income
|
|
|
$
|
21,794
|
|
|
|
$
|
10,045
|
|
|
Total interest expense, net of interest income
|
|
|
|
3,193
|
|
|
|
|
3,866
|
|
|
Provision for taxes (benefit)
|
|
|
|
8,030
|
|
|
|
|
(371
|
)
|
|
Total depreciation, depletion and amortization expenses
|
|
|
|
7,179
|
|
|
|
|
5,363
|
|
|
EBITDA
|
|
|
|
40,196
|
|
|
|
|
18,903
|
|
|
Non-cash deductions, losses and charges(1)
|
|
|
|
379
|
|
|
|
|
(526
|
)
|
|
Non-recurring expenses (income)(2)
|
|
|
|
(3,737
|
)
|
|
|
|
(733
|
)
|
|
Transaction expenses(3)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Permitted management fees and expenses(4)
|
|
|
|
-
|
|
|
|
|
8,312
|
|
|
Non-cash incentive compensation(5)
|
|
|
|
668
|
|
|
|
|
555
|
|
|
Post-employment expenses (excluding service costs)(6)
|
|
|
|
450
|
|
|
|
|
422
|
|
|
Other adjustments allowable under our existing credit agreements
|
|
|
|
1,015
|
|
|
|
|
269
|
|
|
Adjusted EBITDA
|
|
|
$
|
38,971
|
|
|
|
$
|
27,202
|
|
Source: U.S. Silica Holdings, Inc.
U.S. Silica Holdings, Inc.
Michael Lawson, 301-682-0304
Director
of Investor Relations and Corporate Communications
lawsonm@USSilica.com
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