THE WOODLANDS, Texas, October 21, 2019 – Shares of Smart Sand Inc. (NASDAQ: SND) declined -2.78% to $2.45. The stock traded total volume of 112.411K shares lower than the average volume of 345.06K shares.
Smart Sand, Inc. (SND) reported revenues of $51.80M in the first quarter of 2019, flat compared to fourth quarter 2018 revenues of $52.20M. First quarter 2019 revenues of $51.80M increased by 21% compared to first quarter 2018 revenues of $42.60M. The increase in revenue over the first quarter 2018 was primarily attributed to higher volumes from our in-basin Van Hook terminal, which sells at a higher average selling price per ton than sales at the minegate.
Overall tons sold were approximately 648.0K in the first quarter of 2019, compared with approximately 610.0K tons in the fourth quarter 2018 and 723.0K tons for the first quarter of 2018.
Net income was $4.00M, or $0.10 per basic and diluted share, for the first quarter of 2019, compared with a net loss of $4.40M or $(0.11) per basic and diluted share, for the fourth quarter of 2018 and net income of $1.00M, or $0.02 per basic and diluted share, for the first quarter of 2018. The net income in the first quarter of 2019 is primarily attributable to strong in-basin sales generated primarily from our Van Hook terminal and low operating costs as we worked to right size our operations to match current sales volumes.
Adjusted EBITDA was $12.40M for the first quarter of 2019 compared to $5.90M during the same period last year, an increase of 112% year over year, and a decrease of 34% compared to fourth quarter 2018 Adjusted EBITDA of $18.70M. The increase in Adjusted EBITDA year-over-year is primarily attributable to tons sold through our Van Hook terminal in 2019 at higher average selling prices. The sequential decrease in Adjusted EBITDA was primarily due to lower contract and spot sales prices as the decrease in completions persisted through the first half of the first quarter of 2019 coupled with seasonally higher operating cost of sales in the first quarter as previously capitalized inventory is expensed as it is sold.
Capital Expenditures:
Smart Sand’s capital expenditures totaled $8.50M for the first quarter ended March 31, 2019, primarily for the manufacturing of our wellsite storage solutions and maintenance and efficiency upgrades at our Oakdale facility. We estimate that full year 2019 capital expenditures will be approximately $30.0M to $40.0M, excluding any additional acquisitions. This range of investment gives consideration to investment in the build-up of our wellsite storage solutions. Our primary sources of liquidity are cash flow generated from our operations, our Credit Facility and other equipment financing arrangements. At March 31, 2019, we had approximately $2.40M of cash on hand and $12.50M available under our Credit Facility.
SND has the market capitalization of $104.10M and its EPS growth ratio for the past five years was 95.79%. The return on assets ratio of the Company was 7.50% while its return on investment ratio stands at 8.00%. Price to sales ratio was 0.44 while 61.00% of the stock was owned by institutional investors.