Why Industrial Minerals Company U.S. Silica Shares Are Up Today

U.S. Silica Holdings, Inc. SLCA shares are trading higher after the company reported fourth-quarter FY23 results.

The company reported revenue of $336.04 million, down 19% Y/Y, missing the consensus estimate of $343.72 million.

Total tons sold declined 16% Y/Y to 3.865 million in the quarter. Adj. EPS of $0.28 surpassed the consensus of $0.25.

Oil & Gas segment revenue fell 27% Y/Y to $200.6 million due to lower proppant volumes, fewer SandBox loads, and a decline in average selling price per ton.

Also, Industrial & Specialty Products (ISP) segment revenue fell 3% Y/Y to $135.5 million, impacted by seasonality.

Operating cash flow stood at $263.9 million, and capital expenditures came in at $65.2 million, primarily related to growth projects, facility improvements, and maintenance projects. 

As of December 31, 2023, the company had cash and cash equivalents of $245.7 million and total debt of $840.0 million.

Bryan Shinn, Chief Executive Officer said, “Our Oil and Gas segment is well positioned in active well completion basins, with strong customer commitments that provide cash flow visibility. In our Industrial segment, customer demand remains strong overall, and we anticipate year-over-year improvements as we realize a full quarter of price increases.” 

“We expect to produce robust operating cash flow in 2024, while investing approximately $60 million for capital expenditures for the year.“

Price Action: SLCA shares are up 9.91% at $11.76 on the last check Tuesday.