Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37936 | |
Entity Registrant Name | SMART SAND, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-2809926 | |
Entity Address, Address Line One | 1725 Hughes Landing Blvd | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | The Woodlands | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | 281 | |
Local Phone Number | 231-2660 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | SND | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,295,834 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Central Index Key | 0001529628 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 39,278 | $ 11,725 |
Accounts receivable | 10,371 | 69,720 |
Unbilled receivables | 1,220 | 127 |
Inventory | 15,937 | 19,136 |
Prepaid expenses and other current assets | 14,860 | 11,378 |
Total current assets | 81,666 | 112,086 |
Property, plant and equipment, net | 268,417 | 274,676 |
Operating lease right-of-use assets | 29,028 | 32,099 |
Intangible assets, net | 7,857 | 8,253 |
Other assets | 490 | 563 |
Total assets | 387,458 | 427,677 |
Current liabilities: | ||
Accounts payable | 4,942 | 3,268 |
Accrued expenses and other liabilities | 10,037 | 13,142 |
Deferred revenue, current | 4,827 | 6,875 |
Long-term debt, net, current | 7,177 | 6,901 |
Operating lease liabilities, current | 7,602 | 7,077 |
Total current liabilities | 34,585 | 37,263 |
Deferred revenue, net | 6,984 | 3,482 |
Long-term debt, net | 18,826 | 22,445 |
Operating lease liabilities, long-term | 24,497 | 27,020 |
Deferred tax liabilities, long-term, net | 27,141 | 32,981 |
Asset retirement obligation | 16,108 | 14,996 |
Contingent consideration | 0 | 180 |
Other Liabilities, Noncurrent | 505 | 503 |
Total liabilities | 128,646 | 138,870 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value, 350,000,000 shares authorized; 43,547,924 issued and 41,832,789 outstanding at June 30, 2021; 43,193,394 issued and 41,575,129 outstanding at December 31, 2020 | 42 | 42 |
Treasury stock, at cost, 1,715,135 and 1,618,265 shares at June 30, 2021 and December 31, 2020, respectively | (4,422) | (4,134) |
Additional paid-in capital | 172,512 | 171,209 |
Retained earnings | 90,088 | 121,267 |
Accumulated other comprehensive income | 592 | 423 |
Total stockholders’ equity | 258,812 | 288,807 |
Total liabilities and stockholders’ equity | $ 387,458 | $ 427,677 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 43,547,924 | 43,193,394 |
Common stock, shares outstanding (in shares) | 41,832,789 | 41,575,129 |
Treasury stock, shares (in shares) | 1,715,135 | 1,618,625 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | $ 29,639 | $ 26,106 | $ 57,089 | $ 73,594 |
Cost of goods sold | 31,999 | 11,906 | 64,426 | 52,995 |
Gross profit | (2,360) | 14,200 | (7,337) | 20,599 |
Operating expenses: | ||||
Salaries, benefits and payroll taxes | 2,285 | 2,155 | 4,660 | 5,057 |
Depreciation and amortization | 577 | 461 | 1,138 | 914 |
Selling, general and administrative | 3,855 | 2,930 | 7,009 | 6,460 |
Bad debt expense | 19,592 | 0 | 19,592 | 0 |
Change in the estimated fair value of contingent consideration | 0 | 0 | 0 | (1,020) |
Total operating expenses | 26,309 | 5,546 | 32,399 | 11,411 |
Operating (loss) income | (28,669) | 8,654 | (39,736) | 9,188 |
Interest expense, net | (513) | (607) | (1,060) | (1,079) |
Other income | 3,467 | 63 | 3,665 | 82 |
Total other income (expenses), net | 2,954 | (544) | 2,605 | (997) |
(Loss) income before income tax expense (benefit) | (25,715) | 8,110 | (37,131) | 8,191 |
Income tax expense (benefit) | 1,552 | 3,470 | (5,952) | 3,635 |
Net (loss) income | $ (27,267) | $ 4,640 | $ (31,179) | $ 4,556 |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.65) | $ 0.12 | $ (0.75) | $ 0.11 |
Diluted (in dollars per share) | $ (0.65) | $ 0.12 | $ (0.75) | $ 0.11 |
Weighted-average number of common shares: | ||||
Basic (in shares) | 41,748 | 39,644 | 41,689 | 39,867 |
Diluted (in shares) | 41,748 | 39,644 | 41,689 | 39,867 |
Shortfall revenue | ||||
Revenues: | $ 0 | $ 14,000 | $ 1,741 | $ 15,307 |
Logistics revenue | ||||
Revenues: | 838 | 4,731 | 3,400 | 19,925 |
Sand | ||||
Revenues: | $ 28,801 | $ 7,375 | $ 51,948 | $ 38,362 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (27,267) | $ 4,640 | $ (31,179) | $ 4,556 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 44 | 384 | 169 | 221 |
Comprehensive (loss) income | $ (27,223) | $ 5,024 | $ (31,010) | $ 4,777 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Restricted Stock | Common Stock | Common StockRestricted Stock | Treasury Stock | Treasury StockRestricted Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2019 | 40,234,451 | 740,957 | |||||||
Beginning balance at Dec. 31, 2019 | $ 245,556 | $ 40 | $ (2,979) | $ 165,223 | $ 83,313 | $ (41) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (163) | (163) | |||||||
Vesting of restricted stock (in shares) | 139,947 | ||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 1,025 | 1,025 | |||||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 14 | 14 | |||||||
Employee stock purchase plan issuance (in shares) | 21,486 | ||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 46 | 46 | |||||||
Stock buy back (in shares) | (778,300) | (10,468) | 778,300 | 10,468 | |||||
Stock buy back | (1,000) | $ (14) | $ (1,000) | $ (14) | |||||
Net (loss) income | (84) | (84) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 39,607,116 | 1,529,725 | |||||||
Ending balance at Mar. 31, 2020 | 245,380 | $ 40 | $ (3,993) | 166,308 | 83,229 | (204) | |||
Beginning balance (in shares) at Dec. 31, 2019 | 40,234,451 | 740,957 | |||||||
Beginning balance at Dec. 31, 2019 | 245,556 | $ 40 | $ (2,979) | 165,223 | 83,313 | (41) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 221 | ||||||||
Net (loss) income | 4,556 | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 39,754,071 | 1,560,398 | |||||||
Ending balance at Jun. 30, 2020 | 251,328 | $ 40 | $ (4,024) | 167,263 | 87,869 | 180 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 39,607,116 | 1,529,725 | |||||||
Beginning balance at Mar. 31, 2020 | 245,380 | $ 40 | $ (3,993) | 166,308 | 83,229 | (204) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 384 | 384 | |||||||
Vesting of restricted stock (in shares) | 177,628 | ||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 943 | 943 | |||||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 12 | 12 | |||||||
Stock buy back (in shares) | (30,673) | 30,673 | |||||||
Stock buy back | (31) | $ (31) | |||||||
Net (loss) income | 4,640 | 4,640 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 39,754,071 | 1,560,398 | |||||||
Ending balance at Jun. 30, 2020 | 251,328 | $ 40 | $ (4,024) | 167,263 | 87,869 | 180 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 41,575,129 | 1,618,265 | |||||||
Beginning balance at Dec. 31, 2020 | 288,807 | $ 42 | $ (4,134) | 171,209 | 121,267 | 423 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 125 | 125 | |||||||
Stock Issued During Period, Value, Acquisitions | 20 | 20 | |||||||
Stock Issued During Period, Shares, Acquisitions | 14,430 | ||||||||
Vesting of restricted stock (in shares) | 158,364 | ||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 678 | 678 | |||||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 7 | 7 | |||||||
Employee stock purchase plan issuance (in shares) | 19,483 | ||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 17 | 17 | |||||||
Stock buy back (in shares) | (48,077) | 48,077 | |||||||
Stock buy back | $ (140) | $ (140) | |||||||
Net (loss) income | (3,912) | (3,912) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 41,719,329 | 1,666,342 | |||||||
Ending balance at Mar. 31, 2021 | 285,602 | $ 42 | $ (4,274) | 171,931 | 117,355 | 548 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 41,575,129 | 1,618,265 | |||||||
Beginning balance at Dec. 31, 2020 | 288,807 | $ 42 | $ (4,134) | 171,209 | 121,267 | 423 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 169 | ||||||||
Vesting of restricted stock (in shares) | 321,000 | ||||||||
Net (loss) income | (31,179) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 41,832,789 | 1,715,135 | |||||||
Ending balance at Jun. 30, 2021 | 258,812 | $ 42 | $ (4,422) | 172,512 | 90,088 | 592 | |||
Beginning balance (in shares) at Mar. 31, 2021 | 41,719,329 | 1,666,342 | |||||||
Beginning balance at Mar. 31, 2021 | 285,602 | $ 42 | $ (4,274) | 171,931 | 117,355 | 548 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 44 | 44 | |||||||
Vesting of restricted stock (in shares) | 162,253 | ||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 574 | 574 | |||||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 7 | 7 | |||||||
Stock buy back (in shares) | (48,793) | 48,793 | |||||||
Stock buy back | (148) | $ (148) | |||||||
Net (loss) income | (27,267) | (27,267) | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 41,832,789 | 1,715,135 | |||||||
Ending balance at Jun. 30, 2021 | $ 258,812 | $ 42 | $ (4,422) | $ 172,512 | $ 90,088 | $ 592 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net (loss) income | $ (31,179) | $ 4,556 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation, depletion and accretion of asset retirement obligation | 12,604 | 10,697 |
Amortization of intangible assets | 398 | 398 |
Loss (gain) on disposal of assets | (60) | 275 |
Bad debt expense | 19,592 | 0 |
Amortization of deferred financing cost | 53 | 53 |
Accretion of debt discount | 93 | 92 |
Deferred income taxes | (5,839) | 1,004 |
Stock-based compensation, net | 1,252 | 1,968 |
Employee stock purchase plan compensation | 14 | 25 |
Change in contingent consideration fair value | 0 | (1,020) |
Changes in assets and liabilities: | ||
Accounts receivable | 39,756 | 2,957 |
Unbilled receivables | (1,094) | 4,717 |
Inventory | 3,199 | 1,128 |
Prepaid expenses and other assets | (2,391) | 460 |
Deferred revenue | 1,215 | (2,196) |
Accounts payable | 1,698 | (361) |
Accrued and other expenses | (2,831) | (2,557) |
Income taxes payable | 0 | 3,646 |
Net cash provided by operating activities | 36,480 | 25,842 |
Investing activities: | ||
Purchases of property, plant and equipment | (5,043) | (6,423) |
Proceeds from disposal of assets | 2 | 0 |
Net cash used in investing activities | (5,041) | (6,423) |
Financing activities: | ||
Proceeds from the issuance of notes payable | 0 | 952 |
Repayments of notes payable | (3,370) | (2,482) |
Payments under equipment financing obligations | (65) | (56) |
Payment of deferred financing and debt issuance costs | 0 | (20) |
Proceeds from revolving credit facility | 0 | 6,000 |
Repayment of revolving credit facility | 0 | (8,500) |
Payment of contingent consideration | (180) | (310) |
Proceeds from equity issuance | 17 | 46 |
Purchase of treasury stock | (288) | (1,045) |
Net cash used in financing activities | (3,886) | (5,415) |
Net increase in cash and cash equivalents | 27,553 | 14,004 |
Cash and cash equivalents at beginning of year | 11,725 | 2,639 |
Cash and cash equivalents at end of period | 39,278 | 16,643 |
Noncash Investing and Financing Items [Abstract] | ||
Asset retirement obligation | 737 | 0 |
Capitalized expenditures in accounts payable and accrued expenses | 172 | 225 |
Stock Issued | $ 20 | $ 0 |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business & Market Update Organization and Nature of Business The Company was incorporated in July 2011 and is headquartered in The Woodlands, Texas. The Company is a fully integrated frac sand supply and services company, offering complete mine to wellsite proppant supply, logistics and storage solutions. The Company is engaged in the excavation, processing and sale of sand, or proppant, for use in hydraulic fracturing operations for the oil and natural gas industry and offers proppant logistics and wellsite storage solutions through its SmartSystems TM products and services. The Company completed construction of the first phase of its frac sand mine and related processing facility in Oakdale, Wisconsin and commenced operations in July 2012. Through multiple expansions at Oakdale and the recent acquisition in September 2020 of the Utica, Illinois mine and processing facilities, the Company has current annual processing capacity of approximately 7.1 million tons. The Company provides complete logistics solutions through its frac sand facilities with access to three Class I rail lines and its in-basin unit train capable transloading terminal in Van Hook, North Dakota to service the Bakken Formation in the Williston Basin. These logistics solutions enable the Company to cost-effectively deliver products to its customers anywhere in the United States. The Company provides proppant storage and management solutions through its SmartSystems products and services under which it offers various solutions that create efficiencies, flexibility, enhanced safety and reliability for customers by providing the capability to unload, store and deliver proppant at the wellsite, as well as the ability to rapidly set up, takedown and transport the entire system. The SmartDepot TM |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The information presented below supplements the complete description of our significant accounting policies disclosed in our 2020 Form 10-K, filed with the SEC on March 3, 2021. Basis of Presentation and Consolidation The accompanying unaudited quarterly condensed consolidated financial statements (“interim statements”) of the Company are presented in accordance with the rules and regulations of the Securities and Exchange Commission for quarterly reports on Form 10-Q and therefore do not include all the information and notes required by GAAP. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. All adjustments are of a normal recurring nature. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. The consolidated balance sheet as of December 31, 2020 was derived from the audited consolidated financial statements as of and for the year ended December 31, 2020. These interim statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2020. Certain 2020 statement of cash flow items have been reclassified to conform to the current financial statement presentation. These reclassifications have no effect on previously reported net income. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include, but are not limited to: the sand reserves and their impact on calculating the depletion expense under the units-of-production method; the depreciation and amortization associated with property, plant and equipment and definite-lived intangible assets, impairment considerations of assets (including impairment of identified intangible assets and other long-lived assets); estimated cost of future asset retirement obligations; fair value of acquired assets and assume liabilities; stock-based compensation; recoverability of deferred tax assets; inventory reserve; collectability of receivables; and certain liabilities. Actual results could differ materially from management’s best estimates as additional information or actual results become available in the future. The decreased demand related to the coronavirus (“COVID-19”) pandemic caused dramatic swings in oil prices and significant volatility in the oilfield service sector over the last 18 months. The Company is currently unable to estimate the impact of these events on its future financial position and results of operations. Therefore, the Company can give no assurances that these events will not have a material adverse effect on its financial position or results of operations. Employee Retention Credit The Company qualified for federal government assistance through employee retention credit provisions of the Consolidated Appropriations Act of 2021. During the three and six months ended June 30, 2021, the Company recorded $3,352 of employee retention credits in other income on its consolidated income statements and included in prepaid expenses and other current assets on the consolidated balance sheet as of June 30, 2021. The calculation of the credit is based on employees continued employment and represents a portion of the wages paid to them. For income tax purposes, the credit will result in decreased expense related to the wages it offsets in the period received. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which modifies how companies recognize expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. Existing GAAP requires an “incurred loss” methodology whereby companies are prohibited from recording an expected loss until it is probable that the loss has been incurred. ASU 2016-13 requires companies to use a methodology that reflects current expected credit losses (“CECL”) and requires consideration of a broad range of reasonable and supportable information to record and report credit loss estimates, even when the CECL is remote. Companies will be required to record the allowance for credit losses and deduct that amount from the basis of the asset and a related expense will be recognized in selling, general and administrative expenses on the income statement, similar to bad debt expense under existing GAAP. There is much latitude given to entities in determining the methodology for calculating the CECL. The guidance is effective for the Company for financial statement periods beginning after December 15, 2022, although early adoption is permitted. While the Company is still in the process of evaluating the effects of ASU 2016-13 and its related updates on the consolidated financial statements, at the time of adoption, it believes the primary effect, if any will be an allowance recorded against its accounts and unbilled receivables on its balance sheet and related expense on its income statement. The Company cannot determine the financial impact on its consolidated financial statements upon adoption as its accounts and unbilled receivables balances are affected by ongoing transactions with customers. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combination Eagle Proppants Holdings On September 18, 2020, the Company entered into an Equity Purchase and Sale Agreement (the “Purchase Agreement”) with Eagle Materials Inc., a Delaware corporation (“Eagle”), pursuant to which the Company acquired all of the issued and outstanding interests in Eagle Oil and Gas Proppants Holdings LLC, a Delaware limited liability company and wholly-owned subsidiary of Eagle (“Eagle Proppants Holdings”), from Eagle for aggregate non-cash consideration of approximately $2,080. In satisfaction of the purchase price, the Company issued to Eagle 1,504 shares of its common stock; the Company issued an additional 14 shares of its common stock in January 2021 as settlement of the net working capital adjustment. The number of shares issued was determined by the weighted average trading price of the Company’s common stock over the twenty days preceding the date of the Purchase Agreement. In connection with the acquisition of Eagle Proppants Holdings, the Company, as borrower, also entered into a Loan Agreement with Eagle, as lender. See Note 7 - Debt, for additional information. The primary assets of Eagle Proppants Holdings and its subsidiaries include a frac sand mine and related processing facility in Utica, Illinois and a transload facility in nearby Peru, Illinois. The Utica facility has approximately 1.6 million tons of annual processing capacity and has access to the BNSF rail line through the Peru, Illinois transload facility. The table below presents the calculation of the total purchase consideration: Base price consideration $ 2,000 20-day volume weighted average price of Smart Sand stock $ 1.33 Shares issued 1,504 Closing share price on September 18, 2020 $ 1.37 Total equity issued $ 2,060 Net working capital adjustment $ 20 Total purchase consideration $ 2,080 The Company’s final allocation of the purchase price in connection with the acquisition was calculated as follows: Fair Value Assets Acquired Cash $ 309 Accounts receivable 75 Inventory 2,459 Prepaid expenses and other current assets 124 Property, plant and equipment 60,310 Right-of-use assets 9,603 Total assets acquired 72,880 Liabilities Assumed Accounts payable 16 Accrued expenses and other liabilities 2,008 Asset retirement obligations 8,424 Operating lease liabilities 9,603 Deferred income taxes 11,149 Total liabilities assumed 31,200 Estimated fair value of net assets acquired $ 41,680 The estimated aggregate fair value of the net assets acquired was $41,680, which exceeded the total consideration and results in a bargain purchase gain of $39,600 on the acquisition date, which is included in net income for the year ended December 31, 2020. The Company believes that the seller wanted to exit the business relatively quickly and that there were a limited number of potential buyers due to the downturn in the market, which resulted in the bargain purchase gain. The Company determined the fair values of the acquired assets and assumed liabilities based on the highest and best use of such assets as required by GAAP. Cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other liabilities were based on underlying assets and liabilities whose carrying value approximates fair value. The Company acquired $2,050 of contractual receivables; however, it does not expect to collect on $1,975 of such |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following: June 30, 2021 December 31, 2020 Raw material $ 271 $ 428 Work in progress 7,092 10,465 Finished goods 4,497 4,400 Spare parts 4,077 3,843 Total inventory $ 15,937 $ 19,136 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Net property, plant and equipment consisted of: June 30, 2021 December 31, 2020 Machinery, equipment and tooling $ 30,079 $ 29,002 SmartSystems 26,498 22,352 Vehicles 3,021 2,893 Furniture and fixtures 1,325 1,302 Plant and building 200,202 199,867 Real estate properties 6,478 6,458 Railroad and sidings 27,703 27,703 Land and land improvements 33,155 33,040 Asset retirement obligation 20,730 19,993 Mineral properties 7,442 7,442 Deferred mining costs 2,448 2,123 Construction in progress 6,864 7,489 365,945 359,664 Less: accumulated depreciation and depletion 97,528 84,988 Total property, plant and equipment, net $ 268,417 $ 274,676 |
Accrued and Other Expenses
Accrued and Other Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued and Other Expenses | Accrued and Other Expenses Accrued and other expenses were comprised of the following: June 30, 2021 December 31, 2020 Employee related expenses $ 1,615 $ 1,048 Accrued equipment — 55 Accrued professional fees 1,016 1,129 Accrued royalties 2,288 2,624 Accrued freight and delivery charges 730 2,901 Accrued real estate tax 1,388 1,637 Accrued utilities 704 748 Sales tax liability 855 1,386 Other accrued liabilities 1,441 1,614 Total accrued liabilities $ 10,037 $ 13,142 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The current portion of long-term debt consists of the following: June 30, 2021 December 31, 2020 Oakdale Equipment Financing $ 3,706 $ 3,600 Finance leases 124 123 Notes Payable 3,347 3,178 Long-term debt, net, current $ 7,177 $ 6,901 Long-term debt, net of current portion consists of the following: June 30, 2021 December 31, 2020 ABL Credit Facility $ — $ — Oakdale Equipment Financing, net 13,449 15,236 Finance Leases 291 351 Notes Payable 5,086 6,858 Long-term debt, net $ 18,826 $ 22,445 The follow summarizes the maturity of our debt: ABL Credit Facility Oakdale Equipment Financing Notes Payable Finance Leases Total Remainder of 2021 $ — $ 2,319 $ 1,888 $ 75 $ 4,282 2022 — 4,638 3,551 137 8,326 2023 — 4,638 2,405 245 7,288 2024 — 6,888 807 — 7,695 2025 — 1,724 187 — 1,911 2026 and thereafter — — 355 — 355 Total minimum payments — 20,207 9,193 457 29,857 Amount representing interest — (2,412) (760) (42) (3,214) Amount representing unamortized lender fees — (640) — (640) Present value of payments 415 Less: current portion — (3,706) (3,347) (124) (7,177) Total long-term debt, net $ — $ 13,449 $ 5,086 $ 291 $ 18,826 ABL Credit Facility On December 13, 2019, the Company entered into a $20,000 five-year senior secured asset-based credit facility with Jefferies Finance LLC. The available borrowing amount under the ABL Credit Facility as of June 30, 2021 was $14,105 and is based on the Company’s eligible accounts receivable and inventory, as described in the ABL Credit Agreement. As of June 30, 2021, there were no amounts outstanding under the ABL Credit Facility, $1,232 letters of credit and $12,873 was available to be drawn. As of June 30, 2021 and December 31, 2020, the Company was in compliance with all financial covenants. Oakdale Equipment Financing On December 13, 2019, the Company received net proceeds of $23,000 in an equipment financing arrangement with Nexseer. Substantially all of the Company's mining and processing equipment at its Oakdale facility are pledged as collateral under the Oakdale Equipment Financing. The Oakdale Equipment Financing bears interest at a fixed rate of 5.79%. Notes Payable The Company has entered into various financing arrangements, primarily to finance its manufactured wellsite proppant storage solutions equipment. Upon completion of the equipment manufacturing, title to the subject equipment passes to the financial institutions as collateral. In June 2020, the Company executed a note payable to defer certain near-term minimum royalty payments. All notes payable bear interest at rates between 4.00% and 7.49%. Acquisition Liquidity Support Facility |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee The operating and financing components of the Company’s right-of-use assets and lease liabilities on the consolidated balance sheet were as follows: Balance Sheet Location June 30, 2021 December 31, 2020 Right-of-use assets Operating Operating right-of-use assets $ 29,028 $ 32,099 Financing Property, plant and equipment, net 295 373 Total right-of use assets $ 29,323 $ 32,472 Lease liabilities Operating Operating lease liabilities, current and long-term portions $ 32,099 $ 34,097 Financing Long-term debt, current and long-term portions 415 474 Total lease liabilities $ 32,514 $ 34,571 Operating lease costs are recorded as a single expense on the income statement and allocated to the right-of-use assets and the related lease liabilities as depreciation expense and interest expense, respectively. Lease cost recognized in the consolidated income statement for the three and six months ended June 30, 2021 and 2020 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Finance lease cost Amortization of right-of-use assets $ 35 $ 35 $ 70 $ 69 Interest on lease liabilities 7 9 15 19 Operating lease cost 2,878 3,105 5,765 7,095 Short-term lease cost 34 64 34 234 Total lease cost $ 2,954 $ 3,213 $ 5,884 $ 7,417 Other information related to the Company’s leasing activity for the three and six months ended June 30, 2021 and 2020 is as follows: Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for finance leases $ 15 $ 19 Operating cash flows used for operating leases $ 4,693 $ 6,902 Financing cash flows used for finance leases $ 61 $ 56 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,743 $ 4,322 Weighted average remaining lease term - finance leases 2.0 years 3.2 years Weighted average discount rate - finance leases 6.60 % 6.60 % Weighted average remaining lease term - operating leases 3.6 years 3.2 years Weighted average discount rate - operating leases 5.80 % 5.68 % Maturities of the Company’s lease liabilities as of June 30, 2021 are as follows: Operating Leases Finance Leases Total Remainder of 2021 $ 4,393 $ 65 $ 4,458 2022 9,370 138 9,508 2023 8,499 245 8,744 2024 6,918 — 6,918 2025 3,173 — 3,173 Thereafter 4,000 — 4,000 Total cash lease payments 36,353 448 36,801 Less: amounts representing interest (4,254) (33) (4,287) Total lease liabilities $ 32,099 $ 415 $ 32,514 |
Leases | Leases Lessee The operating and financing components of the Company’s right-of-use assets and lease liabilities on the consolidated balance sheet were as follows: Balance Sheet Location June 30, 2021 December 31, 2020 Right-of-use assets Operating Operating right-of-use assets $ 29,028 $ 32,099 Financing Property, plant and equipment, net 295 373 Total right-of use assets $ 29,323 $ 32,472 Lease liabilities Operating Operating lease liabilities, current and long-term portions $ 32,099 $ 34,097 Financing Long-term debt, current and long-term portions 415 474 Total lease liabilities $ 32,514 $ 34,571 Operating lease costs are recorded as a single expense on the income statement and allocated to the right-of-use assets and the related lease liabilities as depreciation expense and interest expense, respectively. Lease cost recognized in the consolidated income statement for the three and six months ended June 30, 2021 and 2020 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Finance lease cost Amortization of right-of-use assets $ 35 $ 35 $ 70 $ 69 Interest on lease liabilities 7 9 15 19 Operating lease cost 2,878 3,105 5,765 7,095 Short-term lease cost 34 64 34 234 Total lease cost $ 2,954 $ 3,213 $ 5,884 $ 7,417 Other information related to the Company’s leasing activity for the three and six months ended June 30, 2021 and 2020 is as follows: Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for finance leases $ 15 $ 19 Operating cash flows used for operating leases $ 4,693 $ 6,902 Financing cash flows used for finance leases $ 61 $ 56 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,743 $ 4,322 Weighted average remaining lease term - finance leases 2.0 years 3.2 years Weighted average discount rate - finance leases 6.60 % 6.60 % Weighted average remaining lease term - operating leases 3.6 years 3.2 years Weighted average discount rate - operating leases 5.80 % 5.68 % Maturities of the Company’s lease liabilities as of June 30, 2021 are as follows: Operating Leases Finance Leases Total Remainder of 2021 $ 4,393 $ 65 $ 4,458 2022 9,370 138 9,508 2023 8,499 245 8,744 2024 6,918 — 6,918 2025 3,173 — 3,173 Thereafter 4,000 — 4,000 Total cash lease payments 36,353 448 36,801 Less: amounts representing interest (4,254) (33) (4,287) Total lease liabilities $ 32,099 $ 415 $ 32,514 |
Asset Retirement Obligation
Asset Retirement Obligation | 6 Months Ended |
Jun. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligation The Company had a post-closure reclamation and site restoration obligation of $16,108 as of June 30, 2021. The following is a reconciliation of the total reclamation liability for asset retirement obligations. Balance at December 31, 2020 $ 14,996 Additions 737 Accretion expense 375 Balance at June 30, 2021 $ 16,108 |
Contingent Consideration
Contingent Consideration | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Contingent Consideration | Business Combination Eagle Proppants Holdings On September 18, 2020, the Company entered into an Equity Purchase and Sale Agreement (the “Purchase Agreement”) with Eagle Materials Inc., a Delaware corporation (“Eagle”), pursuant to which the Company acquired all of the issued and outstanding interests in Eagle Oil and Gas Proppants Holdings LLC, a Delaware limited liability company and wholly-owned subsidiary of Eagle (“Eagle Proppants Holdings”), from Eagle for aggregate non-cash consideration of approximately $2,080. In satisfaction of the purchase price, the Company issued to Eagle 1,504 shares of its common stock; the Company issued an additional 14 shares of its common stock in January 2021 as settlement of the net working capital adjustment. The number of shares issued was determined by the weighted average trading price of the Company’s common stock over the twenty days preceding the date of the Purchase Agreement. In connection with the acquisition of Eagle Proppants Holdings, the Company, as borrower, also entered into a Loan Agreement with Eagle, as lender. See Note 7 - Debt, for additional information. The primary assets of Eagle Proppants Holdings and its subsidiaries include a frac sand mine and related processing facility in Utica, Illinois and a transload facility in nearby Peru, Illinois. The Utica facility has approximately 1.6 million tons of annual processing capacity and has access to the BNSF rail line through the Peru, Illinois transload facility. The table below presents the calculation of the total purchase consideration: Base price consideration $ 2,000 20-day volume weighted average price of Smart Sand stock $ 1.33 Shares issued 1,504 Closing share price on September 18, 2020 $ 1.37 Total equity issued $ 2,060 Net working capital adjustment $ 20 Total purchase consideration $ 2,080 The Company’s final allocation of the purchase price in connection with the acquisition was calculated as follows: Fair Value Assets Acquired Cash $ 309 Accounts receivable 75 Inventory 2,459 Prepaid expenses and other current assets 124 Property, plant and equipment 60,310 Right-of-use assets 9,603 Total assets acquired 72,880 Liabilities Assumed Accounts payable 16 Accrued expenses and other liabilities 2,008 Asset retirement obligations 8,424 Operating lease liabilities 9,603 Deferred income taxes 11,149 Total liabilities assumed 31,200 Estimated fair value of net assets acquired $ 41,680 The estimated aggregate fair value of the net assets acquired was $41,680, which exceeded the total consideration and results in a bargain purchase gain of $39,600 on the acquisition date, which is included in net income for the year ended December 31, 2020. The Company believes that the seller wanted to exit the business relatively quickly and that there were a limited number of potential buyers due to the downturn in the market, which resulted in the bargain purchase gain. The Company determined the fair values of the acquired assets and assumed liabilities based on the highest and best use of such assets as required by GAAP. Cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other liabilities were based on underlying assets and liabilities whose carrying value approximates fair value. The Company acquired $2,050 of contractual receivables; however, it does not expect to collect on $1,975 of such |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by type and percentage of total revenues for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue Percentage of Total Revenue Revenue Percentage of Total Revenue Revenue Percentage of Total Revenue Revenue Percentage of Total Revenue Sand sales revenue $ 28,801 97 % $ 7,375 28 % $ 51,948 91 % $ 38,362 52 % Shortfall revenue — — % 14,000 54 % 1,741 3 % 15,307 21 % Logistics revenue 838 3 % 4,731 18 % 3,400 6 % 19,925 27 % Total revenues $ 29,639 100 % $ 26,106 100 % $ 57,089 100 % $ 73,594 100 % The Company recorded $10,357 of deferred revenue on the balance sheet on December 31, 2020, of which $4,194 has been recognized in the six months ended June 30, 2021. Of the remaining amount, the Company expects to recognize $2,681 through December 31, 2021 and the remainder through 2023. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic net (loss) income per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding the dilutive effects of restricted stock. Diluted net (loss) income per share of common stock is computed by dividing the net (loss) income attributable to common stockholders by the sum of the weighted-average number of shares of common stock outstanding during the period plus the potential dilutive effects of restricted stock outstanding during the period calculated in accordance with the treasury stock method, although restricted stock is excluded if their effect is anti-dilutive. Because the impact of these items is anti-dilutive during periods of net loss, there was no difference between basic and diluted net loss per share of common stock for the three and six months ended June 30, 2021. Because their effect would be anti-dilutive, 2,253 shares of common stock underlying equity-based awards were excluded from the calculation of diluted earnings per share for both three and six months ended June 30, 2020. There is no reconciliation between weighted average common shares outstanding and diluted weighted average shares of common stock outstanding for any period presented. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan In November 2016, in connection with its initial public offering, the Company adopted the 2016 Omnibus Incentive Plan (“2016 Plan”) which provides for the issuance of Awards (as defined in the 2016 Plan) of up to a maximum of 3,911 shares of the Company’s common stock to employees, non-employee members of the Board and consultants of the Company. On April 3, 2020, the Company’s board of directors adopted an amendment to the 2016 Plan to increase the available shares of common stock authorized for issuance by an additional 2,088 shares. On July 27, 2021, the Company’s board of directors authorized 231 shares currently held in treasury stock for issuance under the 2016 Plan. During the six months ended June 30, 2021 and 2020, 14 and 0 shares of restricted stock were issued under the Plans, respectively. The grant date fair value per share of all the outstanding restricted stock was $2.44 - $7.79. The shares vest over one income statements, $1,252 and $1,968 of compensation expense for the restricted stock during the six months ended June 30, 2021 and 2020, respectively. There is no impact to the cash flows of the Company related to stock-based compensation expense. At June 30, 2021, the Company had unrecognized compensation expense of $2,429 related to granted but unvested stock awards, which is to be recognized as follows: Remainder of 2021 $ 1,058 2022 858 2023 509 2024 3 2025 1 Total $ 2,429 The following table summarizes restricted stock activity under the Plans from December 31, 2020 through June 30, 2021: Number of Weighted Unvested, December 31, 2020 1,886 $ 5.14 Granted 14 $ 3.07 Vested (321) $ 8.34 Forfeited (130) $ 6.35 Unvested, June 30, 2021 1,449 $ 3.26 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company calculates its interim income tax provision by estimating the annual expected effective tax rate and applying that rate to its ordinary year-to-date earnings or loss. In addition, the effect of changes in enacted tax laws, rates or tax status is recognized in the interim period in which the change occurs. For the three months ended June 30, 2021 and 2020, the effective tax rate was approximately (6.0)% and 42.8%, respectively, based on the annual effective tax rate net of discrete federal and state taxes. For the six months ended June 30, 2021 and 2020, the effective tax rate was approximately 16.0% and 44.4%, respectively, based on the annual effective tax rate net of discrete federal and state taxes. For the three and six months ended June 30, 2021 and 2020, the statutory tax rate was 21.0%. The computation of the effective tax rate includes modifications from the statutory rate such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations As of June 30, 2021, four customers accounted for 84% of the Company’s total accounts receivable. As of December 31, 2020, 78% of the Company’s total accounts receivable balance was with one customer and was subject to ongoing litigation. The litigation was settled during the second quarter of 2021 as described in Note 15. During the three months ended June 30, 2021, 75% of the Company’s revenues were earned from four customers. During the three months ended June 30, 2020, 91% of the Company’s revenues were earned from two customers. During the six months ended June 30, 2021, 66% of the Company’s revenues were earned from three customers. During the six months ended June 30, 2020, 80% of the Company’s revenues were earned from four customers. As of June 30, 2021, one vendor accounted for 21% of the Company’s accounts payable. As of December 31, 2020, three vendors accounted for 42% of the Company’s accounts payable. During the three months ended June 30, 2021, two suppliers accounted for 53% of the Company’s cost of goods sold. During the three months ended June 30, 2020, three suppliers accounted for 50% of the Company’s cost of goods sold. During the six months ended June 30, 2021, two suppliers accounted for 51% of the Company’s cost of goods sold. During the six months ended June 30, 2020, two suppliers accounted for 57% of the Company’s cost of goods sold. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Future Minimum Commitments The Company is obligated under certain contracts for minimum payments for the right to use land for extractive activities, which is not within the scope of leases under ASC 842. Future minimum annual commitments under such contracts at June 30, 2021 are as follows: Remainder of 2021 $ 1,859 2022 2,467 2023 2,573 2024 2,469 2025 2,462 Thereafter 26,886 Total $ 38,716 Litigation In addition to the matters described below, we may be subject to various legal proceedings, claims and governmental inspections, audits or investigations arising out of our operations in the normal course of business, which cover matters such as general commercial, governmental and trade regulations, product liability, environmental, intellectual property, employment and other actions. Although the outcomes of these routine claims cannot be predicted with certainty, in the opinion of management, the ultimate resolution of these matters will not have a material adverse effect on our financial statements. U.S. Well Services, LLC On January 14, 2019, the Company, as plaintiff filed suit against U.S. Well Services, LLC (“defendant”), in the Superior Court of the State of Delaware in and for New Castle County (C.A. No. N19C-01-144-PRW [CCLD]) (the “Court”). In the suit, the Company alleged that defendant was in breach of contract for failure to pay amounts due and payable under a long-term take-or-pay Master Product Purchase Agreement and coterminous Railcar Usage Agreement. Discovery was completed in the fall of 2020 and the trial took place in December 2020. On June 1, 2021, the Court issued a verdict in favor of the Company and on June 17, 2021, the Court issued an Order of Final Judgment (the “Order) awarding $50,896 in damages to the Company. On June 28, 2021, the Company entered into a Settlement Agreement and Release (“Settlement Agreement”) with defendant, pursuant to which defendant paid to the Company a $35,000 cash payment, and defendant and the Company each agreed to withdraw appeals of certain rulings that they each filed after the Order was issued. The Company and defendant also entered into a two year Right of First Refusal Agreement covering all purchases of Northern White frac sand by defendant and its affiliates in the continental United States from January 1, 2022 through December 31, 2023. The Company recorded $19,592 as non-cash bad debt expense, which is the difference between the $54,592 accounts receivable balance that was under litigation and the cash received under the Settlement Agreement. Bonds The Company has performance bonds with various public and private entities regarding reclamation, permitting and maintenance of public roadways. Total aggregate principal amount of performance bonds outstanding as of June 30, 2021 was $9,132. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited quarterly condensed consolidated financial statements (“interim statements”) of the Company are presented in accordance with the rules and regulations of the Securities and Exchange Commission for quarterly reports on Form 10-Q and therefore do not include all the information and notes required by GAAP. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. All adjustments are of a normal recurring nature. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. The consolidated balance sheet as of December 31, 2020 was derived from the audited consolidated financial statements as of and for the year ended December 31, 2020. These interim statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2020. Certain 2020 statement of cash flow items have been reclassified to conform to the current financial statement presentation. These reclassifications have no effect on previously reported net income. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include, but are not limited to: the sand reserves and their impact |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which modifies how companies recognize expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. Existing GAAP requires an “incurred loss” methodology whereby companies are prohibited from recording an expected loss until it is probable that the loss has been incurred. ASU 2016-13 requires companies to use a methodology that reflects current expected credit losses (“CECL”) and requires consideration of a broad range of reasonable and supportable information to record and report credit loss estimates, even when the CECL is remote. Companies will be required to record the allowance for credit losses and deduct that amount from the basis of the asset and a related expense will be recognized in selling, general and administrative expenses on the income statement, similar to bad debt expense under existing GAAP. There is much latitude given to entities in determining the methodology for calculating the CECL. The guidance is effective for the Company for financial statement periods beginning after December 15, 2022, although early adoption is permitted. While the Company is still in the process of evaluating the effects of ASU 2016-13 and its related updates on the consolidated financial statements, at the time of adoption, it believes the primary effect, if any will be an allowance recorded against its accounts and unbilled receivables on its balance sheet and related expense on its income statement. The Company cannot determine the financial impact on its consolidated financial statements upon adoption as its accounts and unbilled receivables balances are affected by ongoing transactions with customers. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below presents the calculation of the total purchase consideration: Base price consideration $ 2,000 20-day volume weighted average price of Smart Sand stock $ 1.33 Shares issued 1,504 Closing share price on September 18, 2020 $ 1.37 Total equity issued $ 2,060 Net working capital adjustment $ 20 Total purchase consideration $ 2,080 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company’s final allocation of the purchase price in connection with the acquisition was calculated as follows: Fair Value Assets Acquired Cash $ 309 Accounts receivable 75 Inventory 2,459 Prepaid expenses and other current assets 124 Property, plant and equipment 60,310 Right-of-use assets 9,603 Total assets acquired 72,880 Liabilities Assumed Accounts payable 16 Accrued expenses and other liabilities 2,008 Asset retirement obligations 8,424 Operating lease liabilities 9,603 Deferred income taxes 11,149 Total liabilities assumed 31,200 Estimated fair value of net assets acquired $ 41,680 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventory consisted of the following: June 30, 2021 December 31, 2020 Raw material $ 271 $ 428 Work in progress 7,092 10,465 Finished goods 4,497 4,400 Spare parts 4,077 3,843 Total inventory $ 15,937 $ 19,136 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of net property, plant and equipment | Net property, plant and equipment consisted of: June 30, 2021 December 31, 2020 Machinery, equipment and tooling $ 30,079 $ 29,002 SmartSystems 26,498 22,352 Vehicles 3,021 2,893 Furniture and fixtures 1,325 1,302 Plant and building 200,202 199,867 Real estate properties 6,478 6,458 Railroad and sidings 27,703 27,703 Land and land improvements 33,155 33,040 Asset retirement obligation 20,730 19,993 Mineral properties 7,442 7,442 Deferred mining costs 2,448 2,123 Construction in progress 6,864 7,489 365,945 359,664 Less: accumulated depreciation and depletion 97,528 84,988 Total property, plant and equipment, net $ 268,417 $ 274,676 |
(Tables)
(Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Expenses | Accrued and other expenses were comprised of the following: June 30, 2021 December 31, 2020 Employee related expenses $ 1,615 $ 1,048 Accrued equipment — 55 Accrued professional fees 1,016 1,129 Accrued royalties 2,288 2,624 Accrued freight and delivery charges 730 2,901 Accrued real estate tax 1,388 1,637 Accrued utilities 704 748 Sales tax liability 855 1,386 Other accrued liabilities 1,441 1,614 Total accrued liabilities $ 10,037 $ 13,142 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The current portion of long-term debt consists of the following: June 30, 2021 December 31, 2020 Oakdale Equipment Financing $ 3,706 $ 3,600 Finance leases 124 123 Notes Payable 3,347 3,178 Long-term debt, net, current $ 7,177 $ 6,901 Long-term debt, net of current portion consists of the following: June 30, 2021 December 31, 2020 ABL Credit Facility $ — $ — Oakdale Equipment Financing, net 13,449 15,236 Finance Leases 291 351 Notes Payable 5,086 6,858 Long-term debt, net $ 18,826 $ 22,445 |
Schedule of Maturities of Long-term Debt | The follow summarizes the maturity of our debt: ABL Credit Facility Oakdale Equipment Financing Notes Payable Finance Leases Total Remainder of 2021 $ — $ 2,319 $ 1,888 $ 75 $ 4,282 2022 — 4,638 3,551 137 8,326 2023 — 4,638 2,405 245 7,288 2024 — 6,888 807 — 7,695 2025 — 1,724 187 — 1,911 2026 and thereafter — — 355 — 355 Total minimum payments — 20,207 9,193 457 29,857 Amount representing interest — (2,412) (760) (42) (3,214) Amount representing unamortized lender fees — (640) — (640) Present value of payments 415 Less: current portion — (3,706) (3,347) (124) (7,177) Total long-term debt, net $ — $ 13,449 $ 5,086 $ 291 $ 18,826 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | The operating and financing components of the Company’s right-of-use assets and lease liabilities on the consolidated balance sheet were as follows: Balance Sheet Location June 30, 2021 December 31, 2020 Right-of-use assets Operating Operating right-of-use assets $ 29,028 $ 32,099 Financing Property, plant and equipment, net 295 373 Total right-of use assets $ 29,323 $ 32,472 Lease liabilities Operating Operating lease liabilities, current and long-term portions $ 32,099 $ 34,097 Financing Long-term debt, current and long-term portions 415 474 Total lease liabilities $ 32,514 $ 34,571 |
Lease, Cost | Lease cost recognized in the consolidated income statement for the three and six months ended June 30, 2021 and 2020 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Finance lease cost Amortization of right-of-use assets $ 35 $ 35 $ 70 $ 69 Interest on lease liabilities 7 9 15 19 Operating lease cost 2,878 3,105 5,765 7,095 Short-term lease cost 34 64 34 234 Total lease cost $ 2,954 $ 3,213 $ 5,884 $ 7,417 Other information related to the Company’s leasing activity for the three and six months ended June 30, 2021 and 2020 is as follows: Six months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for finance leases $ 15 $ 19 Operating cash flows used for operating leases $ 4,693 $ 6,902 Financing cash flows used for finance leases $ 61 $ 56 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,743 $ 4,322 Weighted average remaining lease term - finance leases 2.0 years 3.2 years Weighted average discount rate - finance leases 6.60 % 6.60 % Weighted average remaining lease term - operating leases 3.6 years 3.2 years Weighted average discount rate - operating leases 5.80 % 5.68 % |
Finance Lease, Liability, Maturity | Maturities of the Company’s lease liabilities as of June 30, 2021 are as follows: Operating Leases Finance Leases Total Remainder of 2021 $ 4,393 $ 65 $ 4,458 2022 9,370 138 9,508 2023 8,499 245 8,744 2024 6,918 — 6,918 2025 3,173 — 3,173 Thereafter 4,000 — 4,000 Total cash lease payments 36,353 448 36,801 Less: amounts representing interest (4,254) (33) (4,287) Total lease liabilities $ 32,099 $ 415 $ 32,514 |
Lessee, Operating Lease, Liability, Maturity | Maturities of the Company’s lease liabilities as of June 30, 2021 are as follows: Operating Leases Finance Leases Total Remainder of 2021 $ 4,393 $ 65 $ 4,458 2022 9,370 138 9,508 2023 8,499 245 8,744 2024 6,918 — 6,918 2025 3,173 — 3,173 Thereafter 4,000 — 4,000 Total cash lease payments 36,353 448 36,801 Less: amounts representing interest (4,254) (33) (4,287) Total lease liabilities $ 32,099 $ 415 $ 32,514 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Reconciliation of total reclamation liability for asset retirement obligations | The following is a reconciliation of the total reclamation liability for asset retirement obligations. Balance at December 31, 2020 $ 14,996 Additions 737 Accretion expense 375 Balance at June 30, 2021 $ 16,108 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by type and percentage of total revenues for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue Percentage of Total Revenue Revenue Percentage of Total Revenue Revenue Percentage of Total Revenue Revenue Percentage of Total Revenue Sand sales revenue $ 28,801 97 % $ 7,375 28 % $ 51,948 91 % $ 38,362 52 % Shortfall revenue — — % 14,000 54 % 1,741 3 % 15,307 21 % Logistics revenue 838 3 % 4,731 18 % 3,400 6 % 19,925 27 % Total revenues $ 29,639 100 % $ 26,106 100 % $ 57,089 100 % $ 73,594 100 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Unrecognized compensation expense is expected to be recognized | At June 30, 2021, the Company had unrecognized compensation expense of $2,429 related to granted but unvested stock awards, which is to be recognized as follows: Remainder of 2021 $ 1,058 2022 858 2023 509 2024 3 2025 1 Total $ 2,429 |
Summary of restricted stock activity | The following table summarizes restricted stock activity under the Plans from December 31, 2020 through June 30, 2021: Number of Weighted Unvested, December 31, 2020 1,886 $ 5.14 Granted 14 $ 3.07 Vested (321) $ 8.34 Forfeited (130) $ 6.35 Unvested, June 30, 2021 1,449 $ 3.26 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure | Future minimum annual commitments under such contracts at June 30, 2021 are as follows: Remainder of 2021 $ 1,859 2022 2,467 2023 2,573 2024 2,469 2025 2,462 Thereafter 26,886 Total $ 38,716 |
Organization and Nature of Bu_2
Organization and Nature of Business (Detail) T in Millions | Jun. 30, 2021T |
Business Acquisition [Line Items] | |
Processing capacity | 7.1 |
Eagle Materials Holdings [Member] | BNSF [Member] | |
Business Acquisition [Line Items] | |
Processing capacity | 1.6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other income | $ 3,467 | $ 63 | $ 3,665 | $ 82 |
Employee Retention Credit | ||||
Other income | $ 3,352 |
Business Combinations (Details)
Business Combinations (Details) $ / shares in Units, $ in Thousands, T in Millions | Sep. 18, 2020USD ($)$ / shares | Mar. 31, 2021USD ($) | Jun. 30, 2021T |
Business Acquisition [Line Items] | |||
Processing capacity | T | 7.1 | ||
Cash | $ 309 | ||
Accounts receivable | 75 | ||
Inventory | 2,459 | ||
Prepaid expenses and other current assets | 124 | ||
Property, plant and equipment | 60,310 | ||
Right-of-use assets | 9,603 | ||
Total assets acquired | 72,880 | ||
Accounts payable | 16 | ||
Business Combination, Liabilities Assumed, Accrued Expense and Other Liabilities | 2,008 | ||
Asset retirement obligations | 8,424 | ||
Operating lease liabilities | 9,603 | ||
Deferred income taxes | 11,149 | ||
Total liabilities assumed | 31,200 | ||
Estimated fair value of net assets acquired | 41,680 | ||
Business Combination, Bargain Purchase, Gain Recognized, Amount | 39,600 | ||
Eagle Materials Holdings [Member] | |||
Business Acquisition [Line Items] | |||
Base price consideration | $ 2,000 | ||
Business Acquisition, Volume Weighted Average Share Price | $ / shares | $ 1.33 | ||
Business Acquisition, Share Price | $ / shares | $ 1.37 | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 2,060 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Working Capital | 20 | ||
Total purchase consideration | $ 2,080 | ||
Shares issued | 1,504 | ||
Business Combination, Acquisition Related Costs | $ 891 | ||
Eagle Materials Holdings [Member] | BNSF [Member] | |||
Business Acquisition [Line Items] | |||
Processing capacity | T | 1.6 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory, Net, Total | $ 15,937 | $ 19,136 |
Sand | ||
Inventory [Line Items] | ||
Raw material | 271 | 428 |
Work in progress | 7,092 | 10,465 |
Finished goods | 4,497 | 4,400 |
Spare parts | 4,077 | 3,843 |
Inventory, Net, Total | $ 15,937 | $ 19,136 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Net Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 365,945 | $ 359,664 |
Less: accumulated depreciation and depletion | 97,528 | 84,988 |
Total property, plant and equipment, net | 268,417 | 274,676 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,079 | 29,002 |
SmartSystems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,498 | 22,352 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,021 | 2,893 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,325 | 1,302 |
Plant and building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 200,202 | 199,867 |
Real estate properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,478 | 6,458 |
Railroad and sidings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 27,703 | 27,703 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 33,155 | 33,040 |
Asset retirement obligation | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 20,730 | 19,993 |
Mineral properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,442 | 7,442 |
Deferred mining costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,448 | 2,123 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,864 | $ 7,489 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | $ 6,037 | $ 5,253 | $ 12,213 | $ 10,529 |
(Details)
(Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Employee related expenses | $ 1,615 | $ 1,048 |
Accrued equipment | 0 | 55 |
Accrued professional fees | 1,016 | 1,129 |
Accrued royalties | 2,288 | 2,624 |
Accrued freight and delivery charges | 730 | 2,901 |
Accrued real estate tax | 1,388 | 1,637 |
Accrued utilities | 704 | 748 |
Sales tax liability | 855 | 1,386 |
Other accrued liabilities | 1,441 | 1,614 |
Total accrued liabilities | $ 10,037 | $ 13,142 |
Debt Long-Term Debt, Net (Detai
Debt Long-Term Debt, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Long-term debt, net, current | $ 7,177 | $ 6,901 |
Long-term debt, net | 18,826 | 22,445 |
Debt Instrument [Line Items] | ||
Remainder of 2021 | 4,282 | |
2022 | 8,326 | |
2023 | 7,288 | |
2024 | 7,695 | |
2025 | 1,911 | |
2026 and thereafter | 355 | |
Total minimum payments | 29,857 | |
Amount representing interest | (3,214) | |
Amount representing unamortized lender fees | (640) | |
Less: current portion | (7,177) | (6,901) |
Long-term debt, net | 18,826 | 22,445 |
Finance Leases | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, net, current | 124 | 123 |
Long-term debt, net | 291 | 351 |
Debt Instrument [Line Items] | ||
Remainder of 2021 | 75 | |
2022 | 137 | |
2023 | 245 | |
2024 | 0 | |
2025 | 0 | |
2026 and thereafter | 0 | |
Total minimum payments | 457 | |
Amount representing interest | (42) | |
Amount representing unamortized lender fees | 0 | |
Present value of payments | 415 | |
Less: current portion | (124) | (123) |
Long-term debt, net | 291 | 351 |
Notes Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, net, current | 3,347 | 3,178 |
Long-term debt, net | 5,086 | 6,858 |
Debt Instrument [Line Items] | ||
Remainder of 2021 | 1,888 | |
2022 | 3,551 | |
2023 | 2,405 | |
2024 | 807 | |
2025 | 187 | |
2026 and thereafter | 355 | |
Total minimum payments | 9,193 | |
Amount representing interest | (760) | |
Amount representing unamortized lender fees | ||
Less: current portion | (3,347) | (3,178) |
Long-term debt, net | 5,086 | 6,858 |
Oakdale Equipment Financing, net | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, net, current | 3,706 | 3,600 |
Long-term debt, net | 13,449 | 15,236 |
Debt Instrument [Line Items] | ||
Remainder of 2021 | 2,319 | |
2022 | 4,638 | |
2023 | 4,638 | |
2024 | 6,888 | |
2025 | 1,724 | |
2026 and thereafter | 0 | |
Total minimum payments | 20,207 | |
Amount representing interest | (2,412) | |
Amount representing unamortized lender fees | (640) | |
Less: current portion | (3,706) | (3,600) |
Long-term debt, net | 13,449 | 15,236 |
ABL Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, net, current | 0 | |
Long-term debt, net | 0 | 0 |
Debt Instrument [Line Items] | ||
Remainder of 2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 and thereafter | 0 | |
Total minimum payments | 0 | |
Amount representing interest | 0 | |
Amount representing unamortized lender fees | 0 | |
Less: current portion | 0 | |
Long-term debt, net | $ 0 | $ 0 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Dec. 13, 2019 | Jun. 30, 2021 | Sep. 18, 2020 |
Minimum | |||
Line of Credit Facility [Line Items] | |||
Interest rates on notes | 4.00% | ||
Maximum | |||
Line of Credit Facility [Line Items] | |||
Interest rates on notes | 7.49% | ||
Nexseer Capital [Member] | Oakdale Equipment Financing, net | |||
Line of Credit Facility [Line Items] | |||
Proceeds from secured notes payable | $ 23,000 | ||
Interest rates on notes | 5.79% | ||
ABL Revolving Credit Facility | Jeffries Finance L L C [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 20,000 | ||
Term | 5 years | ||
Current borrowing capacity | $ 14,105,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
Letters of credit outstanding, amount | 1,232,000 | ||
Remaining borrowing capacity | $ 12,873,000 | ||
Acquisition Liquidity Support Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 5,000 |
Leases - Right of Use Assets an
Leases - Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 29,028 | $ 32,099 |
Property, plant and equipment, net | 295 | 373 |
Total right-of use assets | 29,323 | 32,472 |
Operating lease liabilities, current and long-term portions | 32,099 | 34,097 |
Long-term debt, current and long-term portions | 415 | 474 |
Total lease liabilities | $ 32,514 | $ 34,571 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 35 | $ 35 | $ 70 | $ 69 |
Interest on lease liabilities | 7 | 9 | 15 | 19 |
Operating lease cost | 2,878 | 3,105 | 5,765 | 7,095 |
Short-term lease cost | 34 | 64 | 34 | 234 |
Total lease cost | $ 2,954 | $ 3,213 | $ 5,884 | $ 7,417 |
Leases - Other Lease (Details)
Leases - Other Lease (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating cash flows used for finance leases | $ 15 | $ 19 |
Operating cash flows used for operating leases | 4,693 | 6,902 |
Financing cash flows used for finance leases | 61 | 56 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,743 | $ 4,322 |
Weighted average remaining lease term - finance leases | 2 years | 3 years 2 months 12 days |
Weighted average discount rate - finance leases | 6.60% | 6.60% |
Weighted average remaining lease term - operating leases | 3 years 7 months 6 days | 3 years 2 months 12 days |
Weighted average discount rate - operating leases | 5.80% | 5.68% |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 4,393 | |
2022 | 9,370 | |
2023 | 8,499 | |
2024 | 6,918 | |
2025 | 3,173 | |
Thereafter | 4,000 | |
Total cash lease payments | 36,353 | |
Less: amounts representing interest | (4,254) | |
Operating lease liabilities, current and long-term portions | 32,099 | $ 34,097 |
Finance Leases | ||
Remainder of 2021 | 65 | |
2022 | 138 | |
2023 | 245 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total cash lease payments | 448 | |
Less: amounts representing interest | (33) | |
Long-term debt, current and long-term portions | 415 | $ 474 |
Total | ||
Remainder of 2021 | 4,458 | |
2022 | 9,508 | |
2023 | 8,744 | |
2024 | 6,918 | |
2025 | 3,173 | |
Thereafter | 4,000 | |
Total cash lease payments | 36,801 | |
Less: amounts representing interest | (4,287) | |
Total lease liabilities | $ 32,514 |
Asset Retirement Obligation - A
Asset Retirement Obligation - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Post-closure reclamation and site restoration obligation | $ 16,108 | $ 14,996 |
Asset Retirement Obligation - R
Asset Retirement Obligation - Reconciliation of Total Reclamation Liability for Asset Retirement Obligations (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
December 31, 2020 | $ 14,996 |
Accretion expense | 375 |
June 30, 2021 | 16,108 |
Additions | $ 737 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 29,639 | $ 26,106 | $ 57,089 | $ 73,594 |
Sand sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,801 | 7,375 | 51,948 | 38,362 |
Shortfall revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 14,000 | 1,741 | 15,307 |
Logistics revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 838 | $ 4,731 | $ 3,400 | $ 19,925 |
Product Concentration Risk | Percentage of Total Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Total Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Product Concentration Risk | Percentage of Total Revenue | Sand sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Total Revenue | 97.00% | 28.00% | 91.00% | 52.00% |
Product Concentration Risk | Percentage of Total Revenue | Shortfall revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Total Revenue | 0.00% | 54.00% | 3.00% | 21.00% |
Product Concentration Risk | Percentage of Total Revenue | Logistics revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Total Revenue | 3.00% | 18.00% | 6.00% | 27.00% |
Revenue Deferred Revenue (Detai
Revenue Deferred Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with customer, liability | $ 10,357 | |
Revenue recognized | $ 4,194 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized | $ 2,681 |
Revenue Performance Obligation
Revenue Performance Obligation (Details) | Jun. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,253 | 2,253 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 27, 2021 | Apr. 03, 2020 | Nov. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized stock based compensation expense | $ 2,429 | $ 2,429 | |||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock shares issued (in shares) | 14,000 | ||||||
Grant date fair value per share (in dollars per share) | $ 3.07 | ||||||
2012 Equity Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock shares issued (in shares) | 14,000 | ||||||
Stock compensation expense recognized | $ 572 | $ 943 | $ 1,252 | $ 1,968 | |||
2012 Equity Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares vest over period | 1 year | ||||||
2012 Equity Incentive Plan | Minimum | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant date fair value per share (in dollars per share) | $ 2.44 | ||||||
2012 Equity Incentive Plan | Maximum | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant date fair value per share (in dollars per share) | $ 7.79 | ||||||
Shares vest over period | 4 years | ||||||
2016 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares authorized for issuance (in shares) | 2,088,000 | 3,911,000 | |||||
2016 Omnibus Incentive Plan | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares authorized for issuance (in shares) | 231,000 | ||||||
2016 Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase interval period | 6 months | ||||||
Percentage of purchase price to fair market value | 85.00% | ||||||
Percentage of purchase limit on gross compensation | 20.00% | 20.00% |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Expense is to be Recognized (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | $ 2,429 |
2016 Employee Stock Purchase Plan | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Purchase interval period | 6 months |
Remainder of 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | $ 1,058 |
2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | 858 |
2023 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | 509 |
2024 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | 3 |
2025 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | $ 1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2021 | |
2016 Employee Stock Purchase Plan | |
Weighted Average | |
Percentage of purchase limit on gross compensation | 20.00% |
Restricted Stock | |
Number of Shares | |
Unvested, Beginning balance (in shares) | 1,886 |
Granted (in shares) | 14 |
Vested (in shares) | (321) |
Forfeited (in shares) | (130) |
Unvested, Ending balance (in shares) | 1,449 |
Weighted Average | |
Unvested, Beginning balance (in dollars per share) | $ 5.14 |
Granted (in dollars per share) | 3.07 |
Vested (in dollars per share) | 8.34 |
Forfeited (in dollars per share) | 6.35 |
Unvested, Ending balance (in dollars per share) | $ 3.26 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | (6.00%) | 42.80% | 16.00% | 44.40% |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 2,684 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Accounts Receivable | Customer Concentration Risk | One Customer | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 78.00% | |||||
Accounts Receivable | Customer Concentration Risk | Four Customers | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 84.00% | |||||
Revenue | Customer Concentration Risk | Two Customers | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 91.00% | |||||
Revenue | Customer Concentration Risk | Three Customers | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 66.00% | |||||
Revenue | Customer Concentration Risk | Four Customers | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 75.00% | 80.00% | ||||
Accounts Payables | Supplier Concentration Risk | One Vendor | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 21.00% | 42.00% | ||||
Cost of Goods Sold | Supplier Concentration Risk | Two Supplier | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 53.00% | 51.00% | 57.00% | |||
Cost of Goods Sold | Supplier Concentration Risk | Three Suppliers | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of Total Revenue | 50.00% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Annual Commitments Under Non-Lease Contracts (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 1,859 |
2022 | 2,467 |
2023 | 2,573 |
2024 | 2,469 |
2025 | 2,462 |
Thereafter | 26,886 |
Total | 38,716 |
Guarantor Obligations, Current Carrying Value | $ 9,132 |
Commitments and Contingencies L
Commitments and Contingencies Litigation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 28, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Revenues: | $ 29,639 | $ 26,106 | $ 57,089 | $ 73,594 | ||
Accounts receivable | 10,371 | 10,371 | $ 69,720 | |||
Guarantor Obligations, Current Carrying Value | 9,132 | 9,132 | ||||
Proceeds from Legal Settlements | 35,000 | |||||
Litigation Settlement, Amount Awarded from Other Party | 50,896 | |||||
Bad debt expense | 19,592 | $ 0 | 19,592 | $ 0 | ||
Guarantor Obligations, Current Carrying Value | $ 9,132 | $ 9,132 | ||||
U.S. Well Services, LLC [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | $ 54,592 |