Smart Sand, Inc 8-K, filed Feb 28, 2023

Smart Sand, Inc. (SND)

8-K 2023-02-28 For: 2023-02-28

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Added on April 07, 2026

About this 8-K

Smart Sand, Inc filed this 8-K on February 28, 2023.

Items reported

Item 9.01: Financial statements and exhibits

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Exhibit Number						Description

99.1						Smart Sand, Inc. press release dated February 28, 2023
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.


	Three Months Ended
	December 31, 2022		September 30, 2022		December 31, 2021
	(unaudited)		(unaudited)		(unaudited)
	(in thousands, except per share amounts)
Revenues:
Sand sales revenue	$	71,099	$	66,663	$	34,111
Shortfall revenue	414		2,681		—
Logistics revenue	2,316		2,248		969
Total revenue	73,829		71,592		35,080
Cost of goods sold	62,657		60,163		39,432
Inventory impairment loss	—		—		2,170
Gross profit	11,172		11,429		(6,522)
Operating expenses:
Salaries, benefits and payroll taxes	4,771		3,554		4,108
Depreciation and amortization	598		556		490
Selling, general and administrative	4,147		3,542		3,873


Total operating expenses	9,516		7,652		8,471
Operating income (loss)	1,656		3,777		(14,993)
Other income (expenses):

Interest expense, net	(364)		(411)		(452)

Other income	412		148		316
Total other income (expenses), net	48		(263)		(136)
Income (loss) before income tax benefit	1,704		3,514		(15,129)
Income tax (benefit) expense	(923)		831		(2,896)
Net income (loss)	$	2,627	$	2,683	$	(12,233)

Net income (loss) per common share:
Basic	$	0.06	$	0.06	$	(0.29)
Diluted	$	0.06	$	0.06	$	(0.29)
Weighted-average number of common shares:
Basic	42,833		42,522		41,869
Diluted	42,862		42,524		41,869


	Year Ended December 31,
	2022		2021
	(in thousands, except per share amount)
Revenues:
Sand sales revenue	$	243,162	$	117,402
Shortfall revenue	5,010		4,421
Logistics revenue	7,568		4,825
Total revenue	255,740		126,648
Cost of goods sold	226,149		140,384
Inventory impairment loss	—		2,170
Gross profit	29,591		(15,906)
Operating expenses:
Salaries, benefits and payroll taxes	14,942		11,258
Depreciation and amortization	2,244		1,980
Selling, general and administrative	15,532		14,749
Bad debt expense	1		19,592


Total operating expenses	32,719		47,579
Operating loss	(3,128)		(63,485)
Other (expenses) income:

Interest expense, net	(1,608)		(1,979)

Other income	828		5,773
Total other (expenses) income, net	(780)		3,794
Loss before income tax benefit	(3,908)		(59,691)
Income tax benefit	(3,205)		(9,017)
Net loss	$	(703)	$	(50,674)
Net loss per common share:
Basic	$	(0.02)	$	(1.21)
Diluted	$	(0.02)	$	(1.21)
Weighted-average number of common shares:
Basic	42,408		41,775
Diluted	42,408		41,775


	December 31,
	2022		2021
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	5,510	$	25,588
Accounts receivable	35,746		17,481
Unbilled receivables	79		1,884
Inventory	20,185		15,024
Prepaid expenses and other current assets	6,593		13,886
Total current assets	68,113		73,863
Property, plant and equipment, net	258,843		262,465
Operating lease right-of-use assets	26,075		29,828
Intangible assets, net	6,669		7,461
Other assets	303		402
Total assets	$	360,003	$	374,019
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	14,435	$	8,479
Accrued expenses and other liabilities	13,430		14,073
Current portion of deferred revenue	6,959		9,842

Current portion of long-term debt	6,183		7,127
Current portion of operating lease liabilities	10,910		9,029
Total current liabilities	51,917		48,550
Long-term deferred revenue	—		6,428
Long-term debt	9,807		15,353
Long-term operating lease liabilities	17,642		23,690
Deferred tax liabilities, long-term, net	18,238		22,434
Asset retirement obligation	18,888		16,155

Other non-current liabilities	40		249
Total liabilities	116,532		132,859
Commitments and contingencies
Stockholders’ equity
Common stock	43		42
Treasury stock, at cost	(5,075)		(4,535)
Additional paid-in capital	178,386		174,486
Retained earnings	69,890		70,593
Accumulated other comprehensive income	227		574
Total stockholders’ equity	243,471		241,160
Total liabilities and stockholders’ equity	$	360,003	$	374,019


	Three Months Ended
	December 31, 2022		September 30, 2022		December 31, 2021
	(unaudited)		(unaudited)		(unaudited)
	(in thousands)
Operating activities:
Net income (loss)	$	2,627	$	2,683	$	(12,233)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and accretion of asset retirement obligation	6,584		6,698		6,371
Impairment loss	—		—		2,170
Amortization of intangible assets	196		198		199

Loss (gain) on disposal of assets	188		(466)		332

Amortization of deferred financing cost	26		26		26
Accretion of debt discount	46		47		43
Deferred income taxes	(1,412)		480		(3,004)
Stock-based compensation	748		808		1,030
Employee stock purchase plan compensation	7		7		10


Changes in assets and liabilities:
Accounts receivable	(4,027)		(3,264)		(1,892)
Unbilled receivables	2,398		6,042		(898)
Inventories	433		(3,744)		(1,813)
Prepaid expenses and other assets	3,452		1,218		2,637
Deferred revenue	(2,946)		(1,823)		(179)
Accounts payable	2,460		(445)		2,944
Accrued expenses and other liabilities	(5,191)		2,315		(848)

Net cash provided (used) by operating activities	5,589		10,780		(5,105)
Investing activities:

Purchases of property, plant and equipment	(3,196)		(4,398)		(4,244)
Proceeds from disposal of assets	75		995		—
Net cash used in investing activities	(3,121)		(3,403)		(4,244)
Financing activities:


Repayments of notes payable	(1,851)		(1,893)		(1,602)
Payments under equipment financing obligations	(28)		(28)		(31)

Proceeds from revolving credit facility	4,000		3,000		—
Repayment of revolving credit facility	(10,000)		—		—

Proceeds from equity issuance	—		27		—
Royalty stock issuance	639		—		—
Purchase of treasury stock	(89)		(210)		(108)
Net cash used in (provided by) financing activities	(7,329)		896		(1,741)

Net increase in cash and cash equivalents	(4,861)		8,273		(11,090)
Cash and cash equivalents at beginning of period	10,371		2,098		36,678
Cash and cash equivalents at end of period	$	5,510	$	10,371	$	25,588


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))