U.S. Silica Holdings, Inc. SLCA logged earnings of 37 cents per share in fourth-quarter 2023, down from 40 cents in the prior-year quarter.

Adjusted earnings in the reported quarter were 28 cents per share, down from 43 cents in the year-ago quarter. It topped the Zacks Consensus Estimate of 24 cents.

U.S. Silica recorded revenues of $336 million, down around 19% year over year. The metric missed the Zacks Consensus Estimate of $347.8 million.

U.S. Silica Holdings, Inc. Price, Consensus and EPS Surprise

 

U.S. Silica Holdings, Inc. price-consensus-eps-surprise-chart | U.S. Silica Holdings, Inc. Quote

 

Segmental Highlights

Revenues in the Oil & Gas division amounted to $200.6 million in the reported quarter, down 27% year over year. It was below our estimate of $230.1 million. Sales volume fell 19% year over year to 2.907 million tons. Oil & Gas contribution margin fell 26% year over year to $70.1 million. The figure lagged our estimate of $77.6 million.

Revenues in the Industrial & Specialty Products division were $135.5 million in the quarter, down 3% year over year. It was above our estimate of $126.3 million. Sales volume declined 8% year over year to 0.958 million tons. The segment’s contribution margin was $46.8 million in the quarter, up 17% year over year. It beat our estimate of $43.4 million.

FY23 Results

For full-year 2023, U.S. Silica recorded $1,552 million in revenues, up 2% year over year. It reported net income of $147 million or $1.87 per share for 2023.

Financials

At the end of the quarter, the company’s cash and cash equivalents were $245.7 million, down around 12.5% year over year. Long-term debt dropped nearly 21% year over year to $823.7 million.

The company generated $263.9 million in cash flow from operations during 2023.

Outlook

Per SLCA, the oil and gas sector is experiencing a multi-year growth phase. Favorable commodity prices and improved efficiencies in well completion pave the way for an active environment in the forthcoming years, with the company’s sand production capacity secured by strong contractual commitments for the current year.

U.S. Silica maintains its key emphasis on generating operational cash flow and declining leverage on the balance sheet. The company foresees significant operating cash flow in 2024, allocating around $60 million in capital expenditures for the year.

Price Performance

Shares of U.S. Silica are down 7.7% in the past year compared with a 5.2% fall of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

U.S. Silica currently carries a Zacks Rank #3 (Hold).