U.S. Silica Holdings, Inc (SLCA) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $11.34 million, or $ 0.17 a share in the quarter, against a net profit of $2.41 million, or $0.04 a share in the last year period. Revenue during the quarter dropped 11.36 percent to $137.75 million from $155.41 million in the previous year period. Gross margin for the quarter contracted 781 basis points over the previous year period to 13.30 percent. Operating margin for the quarter stood at negative 12.58 percent as compared to a positive 2.63 percent for the previous year period.
Operating loss for the quarter was $17.32 million, compared with an operating income of $4.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.26 million compared with $24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 945 basis points in the quarter to 6 percent from 15.45 percent in the last year period.
“Our team showed tremendous discipline and determination during the quarter to successfully integrate two major acquisitions while continuing to move our base businesses forward,” said Bryan Shinn, president and chief executive officer. “With the additions of Sandbox and NBR Sands, we can further maximize value for our Oil & Gas customers by having the widest raw sand product offering of anyone in our industry and the only commercially viable last-mile containerized delivery solution. On the industrial side, we continue to benefit from the inherent value of ISP to generate consistent cash flows to cover fixed costs in a downturn while providing a platform for growth going forward.”
Working capital declines
U.S. Silica Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $331.20 million as at Sep. 30, 2016, down 14 percent or $53.93 million from $385.13 million on Sep. 30, 2015. Current ratio was at 4.21 as on Sep. 30, 2016, down from 4.91 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 60 days for the last year period. Days sales outstanding went up to 54 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went up to 47 days for the quarter from 42 for the same period last year.
Debt moves up marginally
U.S. Silica Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $507.77 million as on Sep. 30, 2016, up 1.44 percent or $7.22 million from $500.55 million on Sep. 30, 2015. Total debt was 31.33 percent of total assets as on Sep. 30, 2016, compared with 43.28 percent on Sep. 30, 2015. Debt to equity ratio was at 0.63 as on Sep. 30, 2016, down from 1.26 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
