Business Context and Reporting Period
Smart Sand, Inc. filed a Form 8-K on January 13, 2017, to disclose preliminary operational and financial results for the quarter ended December 31, 2016. The company is in the process of finalizing its financial results for the fourth quarter and full year 2016.
Key Financial Metrics
- Sand Sales Volume: Approximately 274,000 tons sold in Q4 2016.
- Average Selling Price: $35.09 per ton in Q4 2016.
- Shortfall Revenue: Approximately $18.4 million recognized in Q4 2016.
- Other Metrics: The filing text does not provide clear values for total revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes Versus Prior Period
- Volume Increase: Sand sales increased by approximately 20% quarter-over-quarter, rising from 229,000 tons in Q3 2016 to 274,000 tons in Q4 2016.
- Price Decrease: The average selling price per ton declined from $40.66 in Q3 2016 to $35.09 in Q4 2016, attributed to a change in product mix.
- Shortfall Revenue: The company recognized $18.4 million in shortfall revenue in Q4 2016, compared to $0 in Q3 2016.
Guidance, Outlook, and Risks
Management indicated that financial results for the fourth quarter and full year 2016 are currently being finalized. The filing includes a standard disclaimer that the information is furnished and not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, limiting its incorporation by reference into other filings.
Investor Verification Checklist
- Verify the finalized total revenue and net income figures once the company completes its Q4 2016 financial reporting.
- Confirm the specific details regarding the "change in product mix" that drove the decline in average selling price.
- Review the nature and accounting treatment of the $18.4 million shortfall revenue to understand its impact on future periods.
- Check for any subsequent filings that provide the full year 2016 liquidity and debt position.