The following is a summary of the Smart Sand, Inc. (SND) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Smart Sand posted strong Q1 sales volumes with an increase of about 31% to 1.3 million tons.

• There was a boost in contribution margin to $18.5 million, and adjusted EBITDA rose to $9.3 million, showing improvement over Q4 2023.

• However, Q1 2024 saw negative free cash flow primarily due to increased working capital investments to support sales acceleration.

• First quarter revenues increased to $83.1 million, up from $61.9 million in the previous quarter, attributed to higher sand sales volumes and smart system revenues.

Business Progress:

• The company is expanding its Northern White sand franchise, and opened two new terminals in Northeast Ohio, marking expansion in the Utica shale basin.

• Improvements are being made to mining and processing operations, which will enhance yields and reduce costs.

• Stable pricing is noted due to a balance of supply-demand, with potential price increases in the Canadian and Ohio markets.

• The firm aims to grow the industrial segment to at least 10% in the next 2-3 years, signaling potential contracts in 2025 and 2026.

• Increased interest is seen in Northern White sand, particularly from E&P companies in Texas targeting decline curves, offering potential significant benefits to Smart Sand.

More details: Smart Sand IR

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