U.S. Silica Holdings Shares Down 7% As Q2 Results Miss Estimates, Backs Outlook

(RTTNews) - Shares of U.S. Silica Holdings, Inc. (SLCA) plunged more than seven percent in extended trading on Wednesday after the silica miner and commercial seller reported results for the second quarter that missed analysts' expectations.

However, profit for the quarter edged up from last year, reflecting double-digit sales growth amid improved volumes. The company also reaffirmed its adjusted EBITDA outlook for the full-year 2013.

The company was formerly known as GGC USS Holdings, Inc. and changed its name to U.S. Silica Holdings, Inc. in July 2011. The company is a subsidiary of GGC USS Holdings, LLC.

"We are extremely pleased with our second quarter performance, again delivering Adjusted EBITDA at the high end of our guidance range. For the Company as a whole, the bottom line is that our business is very strong, and we expect robust second half performance, driven by record oil and gas demand and continued margin expansion in our industrials business," President and CEO Bryan Shinn said in a statement.

The Frederick, Maryland-based company reported net income of $20.19 million or $0.38 per share for the second quarter, higher than $19.45 million or $0.36 per share in the prior-year quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter increased 24.1 percent to $129.8 million from $104.6 million in the same quarter last year, and missed six Wall Street analysts' consensus estimates of $134.57 million.

The double-digit sales growth was attributable primarily to additional volumes in the oil and gas segment, including initial contributions from the company's new frac sand facility in Sparta, Wisconsin.

Overall volumes for the quarter increased 14.9 percent to 2.0 million tons from a year ago.

Oil and gas revenue for the quarter grew to $77.7 million from $54.5 million last year, with volumes increasing 44 percent. Industrial and specialty products revenue totaled $52.1 million, up from $50.1 million a year ago.

The company's board of directors also declared a regular quarterly cash dividend of $0.125 per share to common shareholders of record at the close of business on September 19, payable on October 3, 2013.

For fiscal 2013, the company reaffirmed its guidance for adjusted EBITDA in the range of $165 million to $175 million, but raised its forecast for capital expenditures to a range of $60 to $70 million.

SLCA closed Wednesday's regular trading at $24.20, down $0.08 or 0.33% on a volume of 2.78 million shares. The stock lost a further $1.75 or 7.23% in after-hours trading.