U.S. Silica Holdings, Inc. Announces Financial Guidance And Fourth Quarter And Fiscal 2012 Results

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.

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