FALSE000152962800015296282024-03-112024-03-11

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 8-K
________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 11, 2024
SMART SAND, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3793645-2809926
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
28420 Hardy Toll Road, Suite 130
Spring, Texas 77373
(Address of principal executive offices and zip code)
 
Registrant’s telephone number, including area code: (281) 231-2660
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par valueSNDNASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 


Item 2.02 Results of Operations and Financial Condition.
On March 11, 2024, Smart Sand, Inc. issued a press release providing information regarding earnings for the fourth quarter and full year ended December 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1.
The information, including Exhibit 99.1, in this Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, except as shall otherwise be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)    Exhibits. The following exhibit is furnished herewith:
Exhibit NumberDescription
99.1
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.









SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
SMART SAND, INC.
Dated: March 11, 2024By:/s/ Lee E. Beckelman
Lee E. Beckelman
Chief Financial Officer
 



Smart Sand, Inc. Announces Fourth Quarter 2023 and Full Year 2023 Results
•4Q 2023 and full year 2023 revenue of $61.9 million and $296.0 million, respectively.
•4Q 2023 and full year 2023 total tons sold of approximately 1,016,000 and 4,514,000, respectively.
•4Q 2023 and full year 2023 net cash (used) provided by operating activities of $(2.7) million and $31.0 million, respectively.
•4Q 2023 and full year 2023 free cash flow of $(9.6) million and $8.0 million, respectively.

SPRING, Texas, March 11, 2024 – Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a fully integrated frac and industrial sand supply and services company, a low-cost producer of high quality Northern White sand, and a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystemsTM products and services, today announced results for the fourth quarter and full year ended December 31, 2023.
“Smart Sand delivered strong operating and financial results for the full year 2023” stated Charles Young, Smart Sand’s Chief Executive Officer. “Sales volumes for the year were a record for the Company. During the year we gained access to the Canadian frac sand market through the commencement of operations at our Blair, Wisconsin facility. We improved our logistics capabilities in the Marcellus and Utica formations of the Appalachian Basin by expanding our Waynesburg, Pennsylvania terminal . We invested in cooling and blending capabilities at our Utica, Illinois facility to support increased industrial sand opportunities and expanded our last mile service presence in the Bakken and Appalachian Basins. Additionally, we recently obtained the rights to operate two additional terminals in Northeast Ohio, which we believe will support growing activity in the Appalachian Basin.”

“Lower sales volumes, due primarily to seasonal weather-related issues and a general slowdown in overall market activity from lower customer spending due to year-end budget exhaustion, negatively impacted our operating and financial results in the fourth quarter. However, market activity has picked up considerably since the start of 2024 with current monthly sales volumes trending back to third quarter 2023 levels or better and we expect to see improved operating and financial results in the first quarter 2024.”

Full Year 2023 Highlights

Total revenue was $296.0 million for the full year 2023, compared to $255.7 million for the full year of 2022. Sand sales revenue in 2023 was $283.2 million compared to $243.2 million in 2022. Total revenue and sand sales both increased by 16% year-over-year, as a result of increased sand sales volumes and higher prices primarily driven by increased market activity in the operating basins that the Company serves.
Total tons sold were 4,514,000 for the full year 2023, compared to full year 2022 total tons sold of 4,333,000, an increase of 4% year-over-year.
Net income was $4.6 million, or $0.12 per basic and diluted share, for the full year 2023, compared with net loss of $(0.7) million, or $(0.02) per basic and diluted share, for the full year 2022. The increase in net income was primarily from increased total volumes sold and higher average sales prices for our sand.
Net cash provided by operating activities was $31.0 million for the year ended December 31, 2023, derived from net income of $4.6 million, which includes net non-cash items of $27.8 million and $(1.4) million in changes in operating assets and liabilities. The net cash provided by operating activities in 2022 was $5.4 million. The increase in net cash provided by operating activities in 2023, compared to 2022, was primarily due to higher net income and reduced use of cash from changes in assets and liabilities.



Contribution margin was $67.0 million, or $14.85 per ton sold, for the full year 2023 compared to $54.6 million, or $12.61 per ton sold, for the full year 2022. Adjusted EBITDA was $34.1 million for the full year 2023 compared to Adjusted EBITDA of $29.3 million for the full year 2022.  The increase in contribution margin and Adjusted EBITDA for the year ended December 31, 2023, as compared to the prior year, was primarily due to an increase in pricing and higher overall tons sold in the current period.

Fourth Quarter 2023 Highlights
Total revenue was $61.9 million in the fourth quarter of 2023, compared to third quarter of 2023 revenue of $76.9 million. Total revenue decreased 19% sequentially due to lower sand sales volumes and lower shortfall revenue. Fourth quarter 2023 total revenue decreased by 16% compared to fourth quarter 2022 revenues of $73.8 million. Lower revenue year-over-year was due primarily to lower tons sold.
Tons sold in the fourth quarter of 2023 were 1,016,000, a 17% decrease compared to third quarter 2023 tons sold of 1,219,000. Tons sold in the fourth quarter of 2023 decreased by 14% compared to 1,175,000 tons sold in the fourth quarter of 2022. Sales volumes were lower in the current period due primarily to lower market activity from weather-related slowdowns and reduced customer spending as accelerated spending earlier in the year led to reduced activity in the fourth quarter.
For the fourth quarter of 2023, the Company had a net loss of $(4.8) million, or $(0.12) per basic and diluted share, compared to net income of $6.7 million, or $0.18 per basic and diluted share, for the third quarter of 2023, and net income of $2.6 million, or $0.06 per basic share and diluted share for the fourth quarter 2022.
Contribution margin was $9.2 million, or $9.07 per ton sold, for the fourth quarter of 2023 compared to $21.0 million, or $17.20 per ton sold, for the third quarter of 2023 and $17.4 million, or $14.77 per ton sold, for the fourth quarter of 2022. Adjusted EBITDA was $1.0 million for the fourth quarter of 2023, compared to $13.3 million for the third quarter of 2023 and $10.7 million for the fourth quarter of 2022.
Lower net income, contribution margin and adjusted EBITDA sequentially and year-over-year were primarily due to lower revenue from decreased tons sold, partially offset by lower cost of goods sold.

Capital and Liquidity

For the full year 2023, we had positive free cash flow of $8.0 million, generating $31.0 million in cash flow from operations while spending $23.0 million on capital expenditures. For the fourth quarter of 2023, we had negative $9.6 million in free cash flow, spending $2.7 million in cash flow on operations and $6.9 million on capital expenditures. As of December 31, 2023, we had cash on hand of $6.1 million and $12.0 million in undrawn availability on our existing credit facility.

Conference Call
Smart Sand will host a conference call and live webcast for analysts and investors on March 12, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s fourth quarter and full year 2023 financial results. Investors are invited to join the conference by dialing (646) 357-8785 or 1-800-836-8184 and referencing “Smart Sand” when connected to the operator. Additionally, the call may also be streamed via webcast at https://app.webinar.net/2LBqwEV8z34 or within the “Investors” section of the Company’s website at www.smartsand.com. A replay will be available shortly after the call and can be accessed on the “Investors” section of the Company’s website.




Forward-looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements that contain our Company’s current expectations about our future results.  We have attempted to identify any forward-looking statements by using words such as “expect,” “will,” “estimate,” “believe” and other similar expressions.  Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements.
Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, continued effects of the global pandemic, changes in economic or political conditions, and such other factors discussed or referenced in the “Risk Factors” section of our Company’s Form 10-K for the year ended December 31, 2023, to be filed by us with the U.S. Securities and Exchange Commission on March 11, 2024.
You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

About Smart Sand
Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistics solutions to our frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company’s sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company offers logistics solutions to our customers through its in-basin transloading terminals and SmartSystemsTM wellsite storage and sand management capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com.


Availability of Information on Smart Sand’s Website
We routinely announce material information using U.S. Securities and Exchange Commission filings, press releases, public conference calls and webcasts and the Smart Sand investor relations website. While not all of the information that we post to the Smart Sand investor relations website is of a material nature, some information could be deemed to be material. Accordingly, we encourage investors, the media, and others interested in Smart Sand to review the information that we share at the “Investors” link located at the top of the page on www.smartsand.com.



SMART SAND, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
(unaudited)(unaudited)(unaudited)
(in thousands, except per share amounts)
Revenues:
Sand sales revenue$60,147 $72,480 $71,099 
Shortfall revenue— 2,389 414 
Logistics revenue1,800 2,031 2,316 
Total revenue61,947 76,900 73,829 
Cost of goods sold59,116 62,502 62,657 
Gross profit
2,831 14,398 11,172 
Operating expenses:
Salaries, benefits and payroll taxes
4,509 4,292 3,309 
Depreciation and amortization
667 647 598 
Selling, general and administrative
5,579 4,625 5,421 
        Loss (gain) on disposal of fixed assets, net(19)(92)188 
Total operating expenses
10,736 9,472 9,516 
Operating (loss) income(7,905)4,926 1,656 
Other income (expenses):
Interest expense, net
(332)(276)(364)
Other income
119 198 412 
Total other income (expenses), net
(213)(78)48 
(Loss) income before income tax benefit(8,118)4,848 1,704 
Income tax benefit
(3,332)(1,879)(923)
Net (loss) income$(4,786)$6,727 $2,627 
Net (loss) income per common share:
Basic
$(0.12)$0.18 $0.06 
Diluted
$(0.12)$0.18 $0.06 
Weighted-average number of common shares:
Basic
38,339 38,253 42,833 
Diluted
38,499 38,412 42,862 




SMART SAND, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
20232022
(in thousands, except per share amount)
Revenues:
Sand sales revenue$283,160 $243,162 
Shortfall revenue4,304 5,010 
Logistics revenue8,509 7,568 
Total revenue295,973 255,740 
Cost of goods sold254,418 226,149 
Gross profit41,555 29,591 
Operating expenses:
Salaries, benefits and payroll taxes18,309 13,480 
Depreciation and amortization2,535 2,244 
Selling, general and administrative20,413 17,288 
Loss (gain) on disposal of fixed assets, net1,802 (294)
Bad debt expense— 1 
Total operating expenses43,059 32,719 
Operating loss(1,504)(3,128)
Other (expenses) income:
Interest expense, net(1,272)(1,608)
Other income524 828 
Total other (expenses) income, net(748)(780)
Loss before income tax benefit(2,252)(3,908)
Income tax benefit(6,901)(3,205)
Net income (loss)$4,649 $(703)
Net income (loss) per common share:
Basic$0.12 $(0.02)
Diluted$0.12 $(0.02)
Weighted-average number of common shares:
Basic38,948 42,408 
Diluted39,046 42,408 




SMART SAND, INC.
CONSOLIDATED BALANCE SHEETS
 December 31,
 20232022
 (in thousands of U.S. dollars)
Assets  
Current assets:  
Cash and cash equivalents$6,072 $5,510 
Accounts receivable23,231 35,746 
Unbilled receivables2,561 79 
Inventory26,823 20,185 
Prepaid expenses and other current assets3,217 6,593 
Total current assets61,904 68,113 
Property, plant and equipment, net255,092 258,843 
Operating lease right-of-use assets23,265 26,075 
Intangible assets, net5,876 6,669 
Other assets163 303 
Total assets$346,300 $360,003 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$16,041 $14,435 
Accrued expenses and other liabilities11,024 13,430 
Deferred revenue1,154 6,959 
Current portion of long-term debt15,711 6,183 
Current portion of operating lease liabilities10,536 10,910 
Total current liabilities54,466 51,917 
Long-term debt3,449 9,807 
Long-term operating lease liabilities14,056 17,642 
Deferred tax liabilities, long-term, net12,101 18,238 
Asset retirement obligation19,923 18,888 
Other non-current liabilities38 40 
Total liabilities104,033 116,532 
Commitments and contingencies
Stockholders’ equity
Common stock
39 43 
Treasury stock, at cost
(14,249)(5,075)
Additional paid-in capital181,973 178,386 
Retained earnings74,539 69,890 
Accumulated other comprehensive (loss) income(35)227 
Total stockholders’ equity242,267 243,471 
Total liabilities and stockholders’ equity$346,300 $360,003 






SMART SAND, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Three Months Ended
 December 31, 2023September 30, 2023December 31, 2022
(unaudited)(unaudited)(unaudited)
 (in thousands)
Operating activities:  
Net (loss) income$(4,786)$6,727 $2,627 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and accretion of asset retirement obligation7,113 7,021 6,584 
Amortization of intangible assets197 198 196 
Loss (gain) on disposal of assets(19)(92)188 
Amortization of deferred financing cost26 26 26 
Accretion of debt discount46 47 46 
Deferred income taxes(2,041)(2,348)(1,412)
Stock-based compensation1,035 860 748 
Employee stock purchase plan compensation4 5 7 
Changes in assets and liabilities:
Accounts receivable784 5,980 (4,027)
Unbilled receivables(2,396)92 2,398 
Inventories(868)(2,950)433 
Prepaid expenses and other assets(2,860)661 3,452 
Deferred revenue(863)(4,328)(2,946)
Asset retirement obligation settlement(197)— — 
Accounts payable5,845 (1,822)2,460 
Accrued expenses and other liabilities(3,679)2,400 (5,191)
Net cash provided (used) by operating activities(2,659)12,477 5,589 
Investing activities:
Purchases of property, plant and equipment(6,905)(6,881)(3,196)
Proceeds from disposal of assets6 50 75 
Net cash used in investing activities(6,899)(6,831)(3,121)
Financing activities:
Repayments of notes payable(1,483)(1,502)(1,851)
Payments under equipment financing obligations(71)(200)(28)
Proceeds from revolving credit facility8,000 — 4,000 
Repayment of revolving credit facility— — (10,000)
Proceeds from equity issuance— 23 — 
Royalty stock issuance— — 639 
Purchase of treasury stock(125)(150)(89)
Net cash provided by (used in) financing activities 6,321 (1,829)(7,329)
Net increase in cash and cash equivalents(3,237)3,817 (4,861)
Cash and cash equivalents at beginning of period9,309 5,492 10,371 
Cash and cash equivalents at end of period$6,072 $9,309 $5,510 




 SMART SAND, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended December 31,
 20232022
(audited)(audited)
 (in thousands)
Operating activities:  
Net income (loss)$4,649 $(703)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and accretion of asset retirement obligation27,472 26,488 
Amortization of intangible assets793 792 
(Gain) loss on disposal of assets1,802 (294)
Provision for bad debt— 1 
Amortization of deferred financing cost105 105 
Accretion of debt discount186 186 
Deferred income taxes(6,137)(4,196)
Stock-based compensation, net3,507 3,184 
Employee stock purchase plan compensation24 25 
Changes in assets and liabilities:
Accounts receivable12,672 (18,265)
Unbilled receivables(2,640)1,805 
Inventories(6,638)(5,161)
Prepaid expenses and other assets1,996 6,524 
Settlement of asset retirement obligation(197)— 
Deferred revenue(5,805)(9,311)
Accounts payable1,974 5,244 
Accrued and other expenses(2,772)(1,004)
Net cash provided by operating activities30,991 5,420 
Investing activities:
Acquisition of businesses, net of cash acquired— (6,547)
Purchases of property, plant and equipment(23,031)(12,731)
Proceeds from disposal of assets129 1,070 
Net cash used in investing activities(22,902)(18,208)
Financing activities:
Repayments of notes payable(10,435)(7,325)
Payments under equipment financing obligations(394)(116)
Proceeds from revolving credit facility23,000 10,000 
Repayment of revolving credit facility(15,000)(10,000)
Proceeds from equity issuance56 52 
Royalty stock issuance— 639 
Purchase of treasury stock(4,754)(540)
Net cash used in financing activities (7,527)(7,290)
Net increase in cash and cash equivalents562 (20,078)
Cash and cash equivalents at beginning of period5,510 25,588 
Cash and cash equivalents at end of period$6,072 $5,510 



Non-GAAP Financial Measures
Contribution Margin
We also use contribution margin, which we define as total revenues less costs of goods sold excluding depreciation, depletion and accretion of asset retirement obligations, to measure its financial and operating performance. Contribution margin excludes other operating expenses and income, including costs not directly associated with the operations of the Company’s business such as accounting, human resources, information technology, legal, sales and other administrative activities. 
Historically, we have reported production costs and production cost per ton as non-GAAP financial measures. As we expand our logistics activities and continue to sell sand closer to the wellhead, our sand production costs will only be a portion of our overall cost structure.
Gross profit is the GAAP measure most directly comparable to contribution margin. Contribution margin should not be considered an alternative to gross profit presented in accordance with GAAP. Because contribution margin may be defined differently by other companies in the industry, our definition of contribution margin may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of contribution margin to gross profit.
Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
(in thousands)
Revenue$61,947 $76,900 $73,829 
Cost of goods sold59,116 62,502 62,657 
      Gross profit2,831 14,398 11,172 
Depreciation, depletion, and accretion of asset retirement obligations included in cost of goods sold
6,381 6,573 6,184 
      Contribution margin$9,212 $20,971 $17,356 
      Contribution margin per ton $9.07 $17.20 $14.77 
Total tons sold1,016 1,219 1,175 

 Year Ended December 31,
 20232022
(in thousands)
Revenue$295,973 $255,740 
Cost of goods sold254,418 226,149 
      Gross profit41,555 29,591 
Depreciation, depletion, and accretion of asset retirement obligations included in cost of goods sold
25,469 25,038 
      Contribution margin$67,024 $54,629 
      Contribution margin per ton $14.85 $12.61 
Total tons sold4,514 4,333 




EBITDA and Adjusted EBITDA
We define EBITDA as net income, plus: (i) depreciation, depletion and amortization expense; (ii) income tax expense (benefit); (iii) interest expense; and (iv) franchise taxes. We define Adjusted EBITDA as EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued operations; (ii) integration and transition costs associated with specified transactions; (iii) equity compensation; (iv) acquisition and development costs; (v) non-recurring cash charges related to restructuring, retention and other similar actions; (vi) earn-out, contingent consideration obligations and other acquisition and development costs; and (vii) non-cash charges and unusual or non-recurring charges. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors and commercial banks, to assess:
•the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets;
•the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
•our ability to incur and service debt and fund capital expenditures;
•our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods or capital structure; and
•our debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the ABL Credit Facility.
We believe that our presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing our financial condition and results of operations. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternatives to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net income for each of the periods indicated.



The following tables present a reconciliation of EBITDA and Adjusted EBITDA to net income for each of the periods indicated:
Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
(in thousands)
Net (loss) income$(4,786)$6,727 $2,627 
Depreciation, depletion and amortization7,078 6,985 6,590 
Income tax benefit(3,332)(1,879)(923)
Interest expense329 304 379 
Franchise taxes300 66 85 
EBITDA
$(411)$12,203 $8,758 
Loss (gain) on sale of fixed assets(19)(92)188 
Equity compensation 1,003 850 706 
Royalty stock issuance— — 639 
Acquisition and development costs (1)
204 70 241 
Cash charges related to restructuring and retention14 — — 
Accretion of asset retirement obligations234 235 189 
Adjusted EBITDA$1,025 $13,266 $10,721 
(1)    Represents costs incurred related to the business combinations and current development project activities.


 Year Ended December 31,
 20232022
 (in thousands)
Net (loss) income$4,649 $(703)
Depreciation, depletion and amortization27,363 26,521 
Income tax benefit(6,901)(3,205)
Interest expense1,532 1,661 
Franchise taxes804 353 
EBITDA$27,447 $24,627 
(Gain) loss on sale of fixed assets1,802 (294)
Equity compensation3,391 2,729 
Royalty stock issuance— 639 
Acquisition and development costs (1)
545 675 
Cash charges related to restructuring and retention of employees32 137 
Accretion of asset retirement obligations904 758 
Adjusted EBITDA$34,121 $29,271 
(1)    Represents costs incurred related to the business combinations and current development project activities.








Free Cash Flow

Free cash flow, which we define as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors and commercial banks, to measure the liquidity of our business.
Net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Free cash flow should not be considered an alternative to net cash provided by operating activities presented in accordance with GAAP. Because free cash flows may be defined differently by other companies in our industry, our definition of free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of free cash flow to net cash provided by operating activities.

Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
(in thousands)
Net cash provided by (used in) operating activities$(2,659)$12,477 $5,589 
      Purchases of property, plant and equipment(6,905)(6,881)(3,196)
Free cash flow$(9,564)$5,596 $2,393 

Year Ended December 31,
20232022
(in thousands)
Net cash provided by (used in) operating activities$30,991 $5,420 
Acquisition of Blair facility— (6,547)
Purchases of property, plant and equipment(23,031)(12,731)
Free cash flow$7,960 $(13,858)



Investor Contacts:
Lee Beckelman    
Chief Financial Officer    
(281) 231-2660    
lbeckelman@smartsand.com    



v3.24.0.1
Document
Mar. 11, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Mar. 11, 2024
Entity Registrant Name SMART SAND, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37936
Entity Tax Identification Number 45-2809926
Entity Address, Address Line One 28420 Hardy Toll Road
Entity Address, Address Line Two Suite 130
Entity Address, City or Town Spring
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77373
City Area Code 281
Local Phone Number 231-2660
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Amendment Flag false
Entity Central Index Key 0001529628
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $0.001 par value
Trading Symbol SND
Security Exchange Name NASDAQ
Smart Sand (NASDAQ:SND)
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Smart Sand (NASDAQ:SND)
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