Smart Sand, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated revenues of $63.2 million, an 18% decrease from $76.9 million in Q3 2023. Sand revenue, which constitutes the majority of total revenue, fell to $62.2 million from $74.9 million, reflecting a 17% decline. The total revenue for the nine months ended September 30, 2024, was $220.0 million, down from $234.0 million in the prior year.

Gross profit for Q3 2024 was $6.5 million, a significant drop of 55% from $14.4 million in Q3 2023. The operating income turned negative, reporting a loss of $4.9 million compared to a profit of $4.9 million in the same quarter of the previous year. The net loss for Q3 2024 was $0.1 million, contrasting sharply with a net income of $6.7 million in Q3 2023. For the nine-month period, the net loss was $744,000, compared to a net income of $9.4 million in 2023.

The decrease in revenue and profitability was attributed to lower average selling prices of sand and reduced sales volumes, despite a slight increase in the total tons of sand sold for the nine months ended September 30, 2024, which rose to approximately 3.8 million tons from 3.5 million tons in the prior year. The company’s SmartSystems revenue also declined, contributing $0.9 million in Q3 2024, down from $2.0 million in Q3 2023.

In terms of strategic developments, Smart Sand entered into a $30 million five-year senior secured asset-based credit facility with First-Citizens Bank & Trust Company in September 2024, which allows for non-amortizing revolving loans based on eligible inventory and accounts receivable. The company also declared a special dividend of $0.10 per share, totaling approximately $3.9 million, and approved an eighteen-month share repurchase program allowing for the purchase of up to $10 million of its ordinary shares.

As of September 30, 2024, Smart Sand had cash and cash equivalents of $7.2 million, an increase from $6.1 million at the end of 2023. The company’s total assets decreased to $335.8 million from $346.3 million at the end of the previous fiscal year, while total stockholders’ equity slightly increased to $243.6 million from $242.3 million. The effective tax rate for Q3 2024 was approximately 98.1%, a significant increase from a negative rate of 38.8% in Q3 2023.