Smart Sand, Inc. Files 2023 Annual Report on Form 10-K

Ticker: SND · Form: 10-K · Filed: Mar 11, 2024 · CIK: 1529628

Sentiment: neutral

Topics: 10-K, Smart Sand, Mining, Financial Report, SEC Filing

TL;DR

<b>Smart Sand, Inc. has filed its 2023 annual report (10-K) detailing its operations in nonmetallic mineral mining and quarrying.</b>

AI Summary

Smart Sand, Inc. (SND) filed a Annual Report (10-K) with the SEC on March 11, 2024. Smart Sand, Inc. filed its 2023 Form 10-K on March 11, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is mining and quarrying nonmetallic minerals. Smart Sand, Inc. is incorporated in Delaware. The company's business address is in Spring, Texas.

Why It Matters

For investors and stakeholders tracking Smart Sand, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Smart Sand's financial performance and operational activities for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. Understanding the details within this report is essential for stakeholders to evaluate Smart Sand's position within the mining sector and its ability to navigate market dynamics.

Risk Assessment

Risk Level: — Smart Sand, Inc. shows moderate risk based on this filing. The company operates in the mining sector, which is subject to commodity price fluctuations and demand cycles, as indicated by its SIC code (1400) and business description.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Smart Sand's performance and potential challenges in the nonmetallic minerals market.

Key Numbers

Key Players & Entities

FAQ

When did Smart Sand, Inc. file this 10-K?

Smart Sand, Inc. filed this Annual Report (10-K) with the SEC on March 11, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Smart Sand, Inc. (SND).

Where can I read the original 10-K filing from Smart Sand, Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Smart Sand, Inc..

What are the key takeaways from Smart Sand, Inc.'s 10-K?

Smart Sand, Inc. filed this 10-K on March 11, 2024. Key takeaways: Smart Sand, Inc. filed its 2023 Form 10-K on March 11, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company's principal business is mining and quarrying nonmetallic minerals..

Is Smart Sand, Inc. a risky investment based on this filing?

Based on this 10-K, Smart Sand, Inc. presents a moderate-risk profile. The company operates in the mining sector, which is subject to commodity price fluctuations and demand cycles, as indicated by its SIC code (1400) and business description.

What should investors do after reading Smart Sand, Inc.'s 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand Smart Sand's performance and potential challenges in the nonmetallic minerals market. The overall sentiment from this filing is neutral.

How does Smart Sand, Inc. compare to its industry peers?

Smart Sand, Inc. operates in the mining and quarrying sector, specifically focusing on nonmetallic minerals. This industry is often tied to construction, industrial, and energy sectors.

Are there regulatory concerns for Smart Sand, Inc.?

As a publicly traded company, Smart Sand, Inc. is subject to the regulations of the U.S. Securities and Exchange Commission (SEC), requiring regular filings like the 10-K.

Industry Context

Smart Sand, Inc. operates in the mining and quarrying sector, specifically focusing on nonmetallic minerals. This industry is often tied to construction, industrial, and energy sectors.

Regulatory Implications

As a publicly traded company, Smart Sand, Inc. is subject to the regulations of the U.S. Securities and Exchange Commission (SEC), requiring regular filings like the 10-K.

What Investors Should Do

  1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
  2. Analyze the company's operational segments and any disclosed revenue or cost breakdowns.
  3. Assess the identified risk factors and their potential impact on future performance.

Key Dates

Glossary

10-K
An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by Smart Sand, Inc. to report its annual financial results and business operations.)
Nonmetallic Minerals
Minerals that do not have a metallic taste or appearance, such as sand, gravel, stone, clay, and gypsum. (This defines the core business of Smart Sand, Inc., indicating the industry in which it operates.)

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Filing Stats: 4,488 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-03-11 16:48:38

Key Financial Figures

Filing Documents

Business

Business 8 ITEM 1A

Risk Factors

Risk Factors 21 ITEM 1B Unresolved Staff Comments 39 ITEM 1C Cybersecu rity 40 ITEM 2

Properties

Properties 41 ITEM 3

Legal Proceedings

Legal Proceedings 51 ITEM 4 Mine Safety Disclosures 51 PART II ITEM 5 Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 53 ITEM 6 Reserved 54 ITEM 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 55 ITEM 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 71 ITEM 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 72 ITEM 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 101 ITEM 9A

Controls and Procedures

Controls and Procedures 101 ITEM 9B Other Information 101 ITEM 9C Disclosures Regarding Foreign Jurisdictions that Prevent Inspections 101 PART III ITEM 10 Directors, Executive Officers and Corporate Governance 102 ITEM 11

Executive Compensation

Executive Compensation 102 ITEM 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 102 ITEM 13 Certain Relationships and Related Transactions, and Director Independence 102 ITEM 14 Principal Accountant Fees and Services 102 PART IV ITEM 15 Exhibits, Financial Statement Schedules 103 ITEM 16 Form 10-K Summary 105

SIGNATURES

SIGNATURES 106 Certain Definitions The following definitions apply throughout this annual report unless the context requires otherwise: "We", "Us", "Company", "Smart Sand" or "Our" Smart Sand, Inc., a company organized under the laws of Delaware, and its subsidiaries. "shares", "stock" The common stock of Smart Sand, Inc., nominal value $0.001 per share. "ABL Credit Facility", "ABL Credit Agreement", "ABL Security Agreement" The five-year senior secured asset-based lending credit facility (the "ABL Credit Facility") pursuant to: (i) an ABL Credit Agreement, dated December 13, 2019, between the Company, and Jefferies Finance LLC (the "ABL Credit Agreement"); and (ii) a Guarantee and Collateral Agreement, dated December 13, 2019, between the Company and Jefferies Finance LLC, as agent (the "Security Agreement"). "Oakdale Equipment Financing", "MLA" The five-year Master Lease Agreement, dated December 13, 2019, between Nexseer Capital ("Nexseer") and related lease schedules in connection therewith (collectively, the "MLA"). The MLA is structured as a sale-leaseback of substantially all of the equipment at the Company's mining and processing facility located near Oakdale, Wisconsin. The Oakdale Equipment Financing is considered a lease under article 2A of the Uniform Commercial Code but is considered a financing arrangement (and not a lease) for accounting or financial reporting purposes. "Exchange Act" The Securities Exchange Act of 1934, as amended. "Securities Act" The Securities Act of 1933, as amended. "FASB", "ASU", "ASC", "GAAP" Financial Accounting Standards Board, Accounting Standards Update, Accounting Standards Codification, Accounting Principles Generally Accepted in the United States, respectively. 3 Disclaimer Regarding Forward-looking Statements and Risk Factor Summary This Annual Report on Form 10-K contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fac

— BUSINESS

ITEM 1. — BUSINESS The Company We are a fully integrated frac and industrial sand supply and services company. We offer complete mine to wellsite proppant supply and logistics solutions to our frac sand customers. We produce 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 and for a variety of industrial applications. We also offer proppant logistics solutions to our customers through our in-basin transloading terminals and our SmartSystems TM wellsite proppant storage capabilities. In late 2021, we created our Industrial Products Solutions ("IPS") business in order to diversify our customer base and markets we serve by offering sand for industrial uses. We market our products and services to oil and natural gas exploration and production companies, oilfield service companies and industrial manufacturers. We sell our sand through short-term and long-term contracts or spot sales in the open market. We provide wellsite proppant handling solutions services and equipment under flexible contract terms custom tailored to meet the needs of our customers. We believe that, among other things, the size and favorable geologic characteristics of our sand reserves, the strategic location and logistical advantages of our facilities, our proprietary SmartDepot TM portable wellsite proppant storage silos, our proprietary SmartPath transloader, our proprietary SmartBelt TM conveyor system, access to all Class I rail lines, and the industry experience of our senior management team make us as a highly attractive provider of sand and logistics services. We incorporated in Delaware in July 2011 and began operations at our Oakdale, Wisconsin facility in July 2012 with 1.1 million tons of annual processing capacity. After several expansions our current annual processing capacity at our Oakdale facility is approximately 5.5 million tons. This facility has

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