2023 Q1 Form 10-K Financial Statement

#000152962823000013 Filed on February 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $82.35M $73.83M $255.7M
YoY Change 97.93% 110.46% 101.93%
Cost Of Revenue $70.71M $62.66M $226.1M
YoY Change 62.24% 50.61% 61.09%
Gross Profit $11.64M $11.17M $29.59M
YoY Change -687.43% -271.3% -286.04%
Gross Profit Margin 14.13% 15.13% 11.57%
Selling, General & Admin $5.619M $8.918M $15.53M
YoY Change 38.81% 11.74% 5.31%
% of Gross Profit 48.29% 79.82% 52.49%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $6.342M $6.591M $25.69M
YoY Change -0.31% 3.18% 4.16%
% of Gross Profit 54.5% 59.0% 86.83%
Operating Expenses $13.25M $9.516M $32.72M
YoY Change 66.25% 12.34% -31.23%
Operating Profit -$1.608M $1.656M -$3.128M
YoY Change -83.84% -111.05% -95.07%
Interest Expense -$441.0K -$364.0K -$1.608M
YoY Change 3.28% -19.47% -18.75%
% of Operating Profit -21.98%
Other Income/Expense, Net -$393.0K $412.0K -$780.0K
YoY Change 82.79% 30.38% -120.56%
Pretax Income -$2.001M $1.704M -$3.908M
YoY Change -80.31% -111.26% -93.45%
Income Tax $1.598M -$923.0K -$3.205M
% Of Pretax Income -54.17%
Net Earnings -$3.599M $2.627M -$703.0K
YoY Change -39.24% -121.47% -98.61%
Net Earnings / Revenue -4.37% 3.56% -0.27%
Basic Earnings Per Share -$0.09 -$0.02
Diluted Earnings Per Share -$0.09 $0.06 -$0.02
COMMON SHARES
Basic Shares Outstanding 45.83M shares 45.28M shares 42.41M shares
Diluted Shares Outstanding 41.27M shares 42.41M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $7.604M $5.510M $5.510M
YoY Change 61.86% -78.47% -78.47%
Cash & Equivalents $7.604M $5.510M $5.510M
Short-Term Investments
Other Short-Term Assets $7.089M $188.0K $4.117M
YoY Change -26.68% -98.65% -54.59%
Inventory $20.08M $20.19M $20.19M
Prepaid Expenses $658.0K
Receivables $35.98M $35.75M $35.83M
Other Receivables $0.00 $2.476M $2.476M
Total Short-Term Assets $72.04M $68.11M $68.11M
YoY Change 28.35% -7.78% -7.78%
LONG-TERM ASSETS
Property, Plant & Equipment $255.8M $258.8M $284.9M
YoY Change -6.41% -1.38% -2.52%
Goodwill
YoY Change
Intangibles $6.471M $6.669M
YoY Change -10.9% -10.62%
Long-Term Investments
YoY Change
Other Assets $267.0K $303.0K $303.0K
YoY Change -26.65% -24.63% -24.63%
Total Long-Term Assets $287.2M $291.9M $291.9M
YoY Change -7.48% -2.75% -2.75%
TOTAL ASSETS
Total Short-Term Assets $72.04M $68.11M $68.11M
Total Long-Term Assets $287.2M $291.9M $291.9M
Total Assets $359.3M $360.0M $360.0M
YoY Change -1.99% -3.75% -3.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.84M $14.44M $14.44M
YoY Change 110.3% 70.24% 70.24%
Accrued Expenses $24.76M $13.43M $24.34M
YoY Change 12.43% -4.57% 5.36%
Deferred Revenue $5.901M $6.959M
YoY Change -48.55% -29.29%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $10.35M $6.183M $6.183M
YoY Change 44.33% -13.25% -13.25%
Total Short-Term Liabilities $56.86M $51.92M $51.92M
YoY Change 17.96% 6.94% 6.94%
LONG-TERM LIABILITIES
Long-Term Debt $15.53M $9.807M $9.807M
YoY Change 17.16% -36.12% -36.12%
Other Long-Term Liabilities $40.00K $40.00K $36.57M
YoY Change -4.76% -83.94% -21.39%
Total Long-Term Liabilities $15.57M $9.847M $46.38M
YoY Change 17.09% -36.89% -25.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $56.86M $51.92M $51.92M
Total Long-Term Liabilities $15.57M $9.847M $46.38M
Total Liabilities $127.5M $116.5M $116.5M
YoY Change -2.37% -12.29% -12.29%
SHAREHOLDERS EQUITY
Retained Earnings $66.29M $69.89M
YoY Change 2.51% -1.0%
Common Stock $179.2M $178.4M
YoY Change 2.2% 2.24%
Preferred Stock
YoY Change
Treasury Stock (at cost) $5.075M
YoY Change 11.91%
Treasury Stock Shares 2.011M shares
Shareholders Equity $231.8M $243.5M $243.5M
YoY Change
Total Liabilities & Shareholders Equity $359.3M $360.0M $360.0M
YoY Change -1.99% -3.75% -3.75%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$3.599M $2.627M -$703.0K
YoY Change -39.24% -121.47% -98.61%
Depreciation, Depletion And Amortization $6.342M $6.591M $25.69M
YoY Change -0.31% 3.18% 4.16%
Cash From Operating Activities $5.105M $5.589M $5.420M
YoY Change -158.94% -209.46% -83.29%
INVESTING ACTIVITIES
Capital Expenditures $4.018M $3.196M $12.73M
YoY Change 6.63% -175.31% 13.47%
Acquisitions $6.547M
YoY Change
Other Investing Activities $1.000K $75.00K -$5.477M
YoY Change -100.02% -7121.79%
Cash From Investing Activities -$4.017M -$3.121M -$18.21M
YoY Change -61.06% -26.46% 63.42%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $540.0K
YoY Change 34.33%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.006M -7.329M -$7.290M
YoY Change -152.59% 320.96% -1.92%
NET CHANGE
Cash From Operating Activities $5.105M 5.589M $5.420M
Cash From Investing Activities -$4.017M -3.121M -$18.21M
Cash From Financing Activities $1.006M -7.329M -$7.290M
Net Change In Cash $2.094M -4.861M -$20.08M
YoY Change -110.02% -56.17% -244.83%
FREE CASH FLOW
Cash From Operating Activities $5.105M $5.589M $5.420M
Capital Expenditures $4.018M $3.196M $12.73M
Free Cash Flow $1.087M $2.393M -$7.311M
YoY Change -108.74% -377.61% -134.46%

Facts In Submission

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CY2022 us-gaap Nature Of Operations
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Organization and Nature of Business<div style="margin-bottom:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company was incorporated in July 2011 and is headquartered in Spring, Texas. The Company primarily operates as a fully integrated frac and industrial sand supply and services company. The Company offers complete mine to wellsite proppant supply and logistics solutions to our frac sand customers. These operations include the excavation, processing and sale of sand, or proppant, for use in hydraulic fracturing operations for the oil and natural gas industry. The Company also offers proppant logistics and wellsite storage solutions through its SmartSystems</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">products and services. In late 2021, the Company created its Industrial Products Solutions (“IPS”) business in order to diversify its customer base and markets it serves by offering sand to customers for industrial uses, such as glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf &amp; landscape, retail, and recreation.</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Sand Mines and Processing Facilities</span></div><div style="margin-bottom:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s integrated Oakdale facility, with on-site rail infrastructure and wet and dry sand processing facilities, has access to two Class I rail lines which enable the Company to process and cost effectively deliver products to its customers. The Company also offers proppant logistics solutions to its customers through, among other things, its in-basin transloading terminals and its SmartSystems</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> wellsite proppant storage and management capabilities. The Company completed construction of the first phase of its mine and processing facility near Oakdale, Wisconsin and commenced operations in July 2012, and subsequently expanded its operations in 2014, 2015 and 2018. Currently, the annual processing capacity at the Company’s Oakdale facility is approximately 5.5 million tons. </span></div><div style="margin-bottom:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In September 2020, the Company acquired from Eagle Materials Inc., a Delaware corporation (“Eagle”), all of the issued and outstanding interests in Eagle Oil and Gas Proppants Holdings LLC, a Delaware limited liability company and wholly-owned subsidiary of Eagle (“Eagle Proppants Holdings”). The primary assets of Eagle Proppants Holdings and its subsidiaries included two frac sand mines and related processing facilities in Utica, Illinois and New Auburn, Wisconsin. The Utica facility has an annual processing capacity of 1.6 million tons and access to the Burlington Northern Santa Fe (“BNSF”) Class I rail line through the Peru, Illinois transload facility. The Company began operating the Utica, Illinois mine and Peru, Illinois transload facility in October 2020. The Company has no plans to operate the New Auburn Facility for the foreseeable future.</span></div><div style="margin-bottom:9pt;text-indent:20.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On March 4, 2022, the Company entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Hi-Crush Inc., a Delaware corporation (“HCR”), and Hi-Crush Blair LLC, a Delaware limited liability company and wholly-owned subsidiary of HCR (“Blair”), pursuant to which the Company acquired all of the issued and outstanding limited liability company interests of Blair from HCR for aggregate cash consideration of approximately $6,450, subject to customary purchase price adjustments as set forth in the Purchase Agreement (the “Transaction”). Entities affiliated with Clearlake Capital Group, L.P. (“Clearlake”), who collectively own approximately 11% of the Company’s outstanding common stock, also own a significant portion of the outstanding common stock of HCR, and representatives of Clearlake serve on our board of directors and HCR’s board of directors.</span></div><div style="margin-bottom:9pt;text-indent:20.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The primary assets of Blair consist of an idle frac sand mine and related processing facility located in Blair, Wisconsin. The Blair facility has approximately 2.9 million tons of total annual processing capacity and contains an onsite, unit train capable rail terminal with access to the Class 1 Canadian National Railway. Currently the Company plans to start operations at Blair in the second quarter of 2023.</span></div><div style="margin-bottom:9pt;text-indent:20.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">With the Blair acquisition, the Company has direct access to four Class I rail lines and the ability to access all Class 1 rail lines within the United States and Canada.</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Transload &amp; Logistics Solutions</span></div><div style="margin-bottom:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In March 2018, the Company acquired the rights to operate a unit train capable transloading terminal in Van Hook, North Dakota to service the Bakken Formation in the Williston Basin and began providing Northern White Sand in-basin in April 2018. </span></div><div style="margin-bottom:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In September 2020, the Company acquired the rights to use a rail terminal located in El Reno, Oklahoma, which was idled at the time of the acquisition but has recently started operating again.</span></div><div style="margin-bottom:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In September 2021, the Company acquired the rights to construct and operate another transloading terminal in Waynesburg, Pennsylvania to service the Appalachian Basin, including the Marcellus and Utica Formations. The Company began providing sand to customers through this terminal in January 2022. </span></div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In June 2018, the Company acquired substantially all of the assets of Quickthree Solutions, Inc., (“Quickthree”), a manufacturer of portable vertical proppant storage solution systems. Quickthree formed the basis for the Company’s SmartSystems under which it offers various proppant storage solutions that create efficiencies, flexibility, enhanced safety and reliability for customers by providing the capability to unload, store and deliver proppant at the wellsite, as well as the ability to rapidly set up, takedown and transport the entire system. The SmartDepot</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> silo includes passive and active dust suppression technology, along with the capability of gravity-fed operation. The self-contained SmartPath</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> transloader is a mobile sand transloading system designed to work with bottom dump trailers and features a drive over conveyor, surge bin, and dust collection system. Rapid deployment trailers are designed for quick setup, takedown and transportation of the entire SmartSystem, and they detach from the wellsite equipment, which allows for removal from the wellsite during operation. A proprietary software program, the SmartSystem Tracker</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, allows customers to monitor silo-specific information, including location, proppant type and proppant inventory.</span>
CY2022Q4 snd Current Annual Processing Capacity
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<div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include, but are not limited to: the sand reserves and their impact on calculating the depletion expense under the units-of-production method; the depreciation and amortization associated with property, plant and equipment and definite-lived intangible assets; impairment considerations of intangible assets; estimated cost of future asset retirement obligations; fair value of acquired assets and assume liabilities; stock-based compensation; recoverability of deferred tax assets; inventory reserve; collectability of receivables; and certain liabilities. </span></div>Actual results could differ from management’s best estimates as additional information or actual results become available in the future, and those differences could be material. The Company is currently unable to estimate the impact of current or future events on its future financial position and results of operations. Therefore, the Company can give no assurances that current or future events will not have a material adverse effect on its financial position or results of operations.
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CY2020 us-gaap Capital Expenditures Incurred But Not Yet Paid
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376000 usd

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