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Hi-Crush Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2020 10-Q, filed Aug 6, 2020. Its latest SEC filing is a 15-12B from Nov 2, 2020.

The sections below describe the company as of the FY2019 annual report.

What Did They Do?

Provides frac sand, wellsite logistics and supply-chain software to oil and gas producers and pressure-pumping service providers.

How Did They Make Money?

Customers buy frac sand under long-term agreements or spot orders and are billed when the sand is delivered. Logistics, equipment rental, labor and terminal services are billed as performed; silo systems and related equipment are sold at negotiated prices.

FY2019 revenue

Who Were Their Customers?

Sand and last-mile services go directly to end users, particularly larger exploration and production companies; logistics jobs are set out in work orders under master service agreements.

Did Revenues Turn Into Profits?

No. It lost $413.6M in FY2019.

Operating income, FY2019
−54% of revenue
▼ Now a loss vs FY2018 ($164M, 19%)
Net income, FY2019
−65% of revenue
▼ Now a loss vs FY2018 ($137.6M, 16%)
Free cash flow, FY2019
−7% of revenue
▼ Now a loss vs FY2018 ($95.8M, 11%)

How Were They Changing?

Since the FY2019 annual report
Latest quarter: Q2 FY2020, the three months to Jun 30, 2020
Revenue
▼ −70%
vs $178M in Q2 FY2019
Net income
▼ −78% (Loss)
vs −$117.5M in Q2 FY2019
  • Oct 9, 2020 Reorganization plan took effect
  • Sep 29, 2020 Bankruptcy court confirmed reorganization plan Existing equity was canceled, while holders of note and general unsecured claims share the reorganized company's new common stock.
  • Jul 14, 2020 NYSE began proceedings to delist common stock The company said it would not appeal and expected trading to move to over-the-counter markets.
  • Jul 13, 2020 Hi-Crush filed for Chapter 11 The proposed plan called for converting unsecured note debt into reorganized-company equity and canceling existing shares.

Grew. Revenue grew 87% in 4 years, from $339.6M in FY2015 to $636.4M in FY2019, about 17% a year.

Sand sources The older report describes reserves as entirely Northern White sand; the latest report says the company produces both Northern White and in-basin frac sand.

Broader logistics and software The latest report adds end-to-end logistics through Pronghorn and real-time supply-chain software through PropDispatch, beyond the older report's PropStream container-and-conveyor solution.

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