U.S. Silica Holdings, Inc (SLCA) saw its loss narrow to $6.94 million, or $0.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $15.32 million, or $0.29 a share. Revenue during the quarter surged 33.99 percent to $182.37 million from $136.11 million in the previous year period. Gross margin for the quarter expanded 430 basis points over the previous year period to 18.62 percent. Operating margin for the quarter stood at negative 3.51 percent as compared to a negative 9.23 percent for the previous year period.
Operating loss for the quarter was $6.40 million, compared with an operating loss of $12.56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $20.67 million compared with $10.78 million in the prior year period. At the same time, adjusted EBITDA margin improved 342 basis points in the quarter to 11.33 percent from 7.92 percent in the last year period.
"Despite the many challenges, we made substantial progress in 2016 to make our Company leaner, stronger, more flexible and ultimately easier for customers to do business with, all of which we believe will enable us to further extend our industry-leading positions in both our Oil and Gas and Industrial and Specialty Products segments," said Bryan Shinn, president and chief executive officer. "Looking ahead at 2017, we see strong demand for both sand proppant and last mile logistics in our Oil and Gas business and believe we have the right strategy and are well positioned to capitalize on these favorable market trends. For our Industrial segment, demand in most of our end use markets is anticipated to stay strong and we expect to continue to roll out new, higher margin products to drive bottom line growth,’" he added.
Working capital increases sharply
U.S. Silica Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $782.98 million as at Dec. 31, 2016, up 120.42 percent or $427.76 million from $355.22 million on Dec. 31, 2015. Current ratio was at 8.12 as on Dec. 31, 2016, up from 5.23 on Dec. 31, 2015.
Debt moves up marginally
U.S. Silica Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $516.19 million as on Dec. 31, 2016, up 4.98 percent or $24.49 million from $491.70 million on Dec. 31, 2015. Total debt was 24.90 percent of total assets as on Dec. 31, 2016, compared with 47.28 percent on Dec. 31, 2015. Debt to equity ratio was at 0.41 as on Dec. 31, 2016, down from 1.28 as on Dec. 31, 2015.
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