U.S. Silica Holdings, Inc.
SLCA
reported a net profit of $4.6 million or 6 cents per share in fourth-quarter 2020 against net loss of $292.9 million or $3.99 per share in the year-ago quarter.
Barring one-time items, adjusted loss per share was 26 cents, which was narrower than the Zacks Consensus Estimate of a loss of 35 cents.
U.S. Silica generated revenues of $227.3 million, down 33% year over year. However, the figure surpassed the Zacks Consensus Estimate of $194.6 million.
U.S. Silica Holdings, Inc. Price, Consensus and EPS Surprise
U.S. Silica Holdings, Inc. price-consensus-eps-surprise-chart
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U.S. Silica Holdings, Inc. Quote
Segment Highlights
Revenues in the Oil & Gas division amounted to $120.3 million in the fourth quarter, down 49% year over year and up 81% sequentially. Overall sales volume fell 43% year over year to 1.901 million tons. Oil & Gas contribution margin increased 64% sequentially and declined 24% year over year to $51.5 million or $27.10 per ton.
Revenues in the Industrial & Specialty Products division amounted to $106.9 million in the fourth quarter, up 2% year over year. Overall sales volume increased 10% year over year to 0.926 million tons. The segment’s contribution margin was $38.4 million or $41.47 per ton in the quarter, down 9% sequentially and down 2% year over year.
FY20 Results
Loss (as reported) for full-year 2020 was $1.55 per share compared with $4.49 per share a year ago. Net sales declined 43% year over year to $845.9 million.
Financials
At the end of the year, the company’s cash and cash equivalents were $150.9 million, down 18.7% year over year. Long-term debt was $1,197.7 million, down 1.3% year over year.
Outlook
For 2021 and beyond, U.S. Silica predicts a sustainable long-term growth by serving key industries like food and beverage, production, housing automotive, glass manufacturing, biopharma and energy. It is focused on prioritizing free cash flow, repositioning its Oil & Gas segment and growth of its Industrial and Specialty Products segment.
The company plans to deliver positive cash flow in 2021 and deleverage its balance sheet, keeping $30-40 million of capital expenditures within operating cash flow.
The Industrial & Specialty Products segment started 2021 on a positive note and the company expects growth to outpace U.S. GDP. U.S. Silica has taken initiatives to reduce costs in the Oil & Gas segment. It also expects a strong recovery in energy sector proppant and last mile delivery demand in the first half of 2021.
Price Performance
Shares of U.S. Silica have surged 178.5% in the past year compared with 63.1% rise of the
industry
.
Zacks Rank & Other Key Picks
U.S. Silica currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are
Fortescue Metals Group Limited
FSUGY
,
BHP Group
BHP
and
Impala Platinum Holdings Limited
IMPUY
.
Fortescue has a projected earnings growth rate of 95.4% for the current fiscal. The company’s shares have surged around 183.6% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 69.2% for the current fiscal. The company’s shares have gained around 71.5% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 95.2% in the past year. It currently sports a Zacks Rank #1.
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