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Slca presentation v2

  1. 1. US Silica Holdings Inc. (SLCA) Seamus Sullivan
  2. 2. The Company Recommendation: Buy Price Target - $30.04 Current Price 20.23 52-week range $28.50 – 8.73 Shares outstanding 53MM Market Cap 1,235.2M P/E (2013) 15.75 EV/EBITDA (2013) 8X
  3. 3. US Silica Holdings “SLCA” is the second largest domestic producer of commercial silica, a specialized mineral that is a critical input into a variety of end markets. In SLCA’s largest end market, oil and gas proppants, their frac sand is used to stimulate and maintain the flow of hydrocarbons in horizontally drilled oil and natural gas wells. SLCA sales are primarily a function of the price per ton realized and the volumes sold. In some instances, their sales also include a charge for transportation services, which they provide to customers. Company Profile • Founded 113 years ago • IPO January 2012 • Headquarters: Frederick, MD • Bryan A. Shinn, CEO • Operate 15 facilities across the United States and control 307 million tons of reserves • ~785 employees, ~ 50% unionized • Sector: Industrial Minerals Supplier Over 250 products and 1,800 customers • Oil & Gas Proppants: Frac sand • Industrial & Specialty: Glass, coatings, found 15 facilities and over 100 years of history • Flagship Ottawa site home of ‘Ottawa White’ 307 million tons of high quality reserves 7.2 million tons sold in FY 2012 FY 2012 Revenues of $441.9MM
  4. 4. Two operating segments • Oil & Gas Proppants – Drivers: • Industrial & Specialty Products (ISP) – Glass, Chemical, Foundry, Building Products, Fillers & Extenders, Recreation, Industry Filtration & Treatment, Testing & Analysis – Drivers: • Housing and automotive markets: glass, building materials, foundry and fillers and extenders • SLCA anticipates launching into the water treatment market later this year. They expect to generate at least $10MM in incremental EBITDA from new industrial products by 2015 Company Profile Horizontal Rig Count Wells per Rig Lateral Length Stages per Lateral Proppant Per Stage
  5. 5. RCS Phase 1 • First quarter of 2013, SLCA’s new resin-coated sand facility became fully operational • Capacity: 200,000 tons • Client testing/evaluation underway • Complete facility expected to resin coat up to 400 million pounds of sand annually and will significantly expand addressable oil and gas proppant market During the second half of 2012 SLCA expanded with a Greenfield Mine and construction of a production facility near Sparta, Wisconsin. Producing high quality northern white sand Sparta Phase I • Capacity: 850,000 tons • This was completed at the end of Q1 (ahead of schedule) • 70% or greater of this product is already contracted out Sparta Phase II • Capacity: 850,000 tons • Due to market demand, the Board authorized the acceleration of the construction and commissioning of Sparta Phase II • SLCA expects the new facility will increase their annual production by 1,700,000 tons when fully operational Once this expansion fully comes online later this year, SLCA’s total annual frac sand capacity will be approximately 4.6MM tons, more than a 50% increase versus 2012 Catalysts
  6. 6. • Further expansion of their storage network • Goal of 25 to 30 transloads online by the end of 2013 – Every transload they add expands their addressable in-basin market by putting them within driving distance of additional rigs • Increase in: – Stages per well – Wells per rig – Lateral length • The longer the lateral wells and the more stages in a well, the more proppant will be consumed – Sand spot prices • M&A – Moving up the supply chain with acquisitions in mining, processing, transloads/logistics, and storage – Increased Scale • Domestic proppant producers are expected to experience annual increases in demand of 8.0% through 2016* • Dividend increase – Announced quarterly dividend of $0.125 per share (.50 per annually) Catalysts * Freedonia report dated October 2012
  7. 7. Increased frac sand demand even with flattish horizontal rig count due to: • Rig efficiencies • Well intensity Catalysts Source: IHS, RBC Capital Markets estimates
  8. 8. • Leader in high quality proppants − White sand, Resin Coated Sand (RCS) − Large proven reserves of high quality white sand • Distribution Capabilities − Superior logistics strategy − Multi plant network − Moving up the supply chain with transloads − Railroad agreements − Get the proppant to the right pace at the right time − Flexibility and responsiveness • Low cost structure − Expanding services as low-cost provider to all major basins • Scale • Strong contribution margin • Barriers to entry • Golden Gate Capital owns 77.8% Strengths
  9. 9. Strengths
  10. 10. Distribution Canada
  11. 11. SLCA’s sites are strategically located to provide access to all Class I railroads, which enables them to cost effectively send product to each of the strategic basins in North America Transportation Assets • Railroad access on BNSF, Union Pacific, CN, CP, and CSX • Barge Access • 15 in-basin transloads, many of which can be turned on or off to meet demand • Anticipate 25-30 transloads by end of 2013 Advantages • Scale • Reliability • Flexibility • Cost effectiveness SLCA’s supply chain network and logistics capabilities are a valuable competitive advantage Distribution
  12. 12. Transload Facility • 15,000 ton Unit Train Facility in Eagle Ford Basin ($8-10M) • Has the capacity to put in excess of 500,000 tons per year • Built in partnership with the BNSF Railroad • Benefits: – Reduced cost per ton to deliver (especially to Eagle Ford basin) – Increased flexibility and responsiveness San Antonio
  13. 13. Completed Phase I and accelerated to Phase II Newly completed unit train & Transload capable site to service Eagle Ford Distribution “..really what our customers are coming to us and talking a lot about is responsiveness.”1 1: US Silica 2013 Q1 earnings call
  14. 14. Barriers to Entry
  15. 15. Barriers to Entry Mine/Plant Location Owned/ Leased Area Proven Reserves Probable Reserves Combined Proven and Probable Reserves 2012 Tons Mined Primary End Markets Served (in acres) (amounts in thousands of tons) Ottawa, IL Owned 1,781 owned 74,095 40,801 114,895 3,217 Oil and gas proppants, glass, chemicals and foundry Mill Creek, OK Owned 2,214 owned 15 mineral lease — 19,276 19,276 1,240 Oil and gas proppants, glass, foundry and building products Pacific, MO Owned 524 owned 16,496 7,994 24,490 598 Oil gas proppants, glass, foundry and fillers and extenders Berkeley Springs, WV Owned 4,435 owned 2,990 — 2,990 414 Glass, building products and fillers and extenders Mapleton Depot, PA Owned/ Leased 1,761 owned 194 mineral lease 98 access Lease 5,315 10,000 15,315 691 Glass and building products Kosse, TX (1) Owned 960 owned 118 mineral lease 12,266 — 12,266 409 Glass, building products and fillers and extenders Mauricetown, NJ Owned 1,279 owned 12,669 — 12,669 134 Filtration, foundry and building products Columbia, SC Leased 648 lease 204 owned 5,120 1,680 6,800 400 Glass, building products and fillers and extenders Montpelier, VA (2) Owned 824 owned — 14,146 14,146 307 Glass and building products Rockwood, MI (3) Owned 872 owned 6,563 — 6,563 — Glass and building products Jackson, TN Owned 132 owned 1,250 — 1,250 150 Fiberglass and building products Dubberly, LA Owned 356 owned 25 tailings lease 4,462 — 4,462 221 Glass, foundry and building products Batesville, AR Owned 477 owned — 34,732 34,732 — — Hurtsboro, AL Leased 117 owned 1,108 mineral lease 1,216 — 1,216 185 Foundry and building products Sparta,WI Owned 520 owned 33,542 2,740 36,282 358 Oil and gas proppants Total 175,984 131,369 307,352 8,324 SLCA owns almost all of their facilities No royalty payments
  16. 16. Financials US Silica Holdings Inc.US Silica Holdings Inc. Discounted Cash Flow Analysis ($ in millions, fiscal year ending March 30) Operating Scenario Base Operating Scenario 1 xMid-Year Convention n Historical Period CAGR CAGR 2009 2010 2011 ('09 - '11) 2012 2013 2014 2015 2016 2017 ('13 - '17) Sales $191.6 $245.0 $295.6 24.2% $441.9 $530.3 $609.9 $670.8 $731.2 $760.5 11.5% % growth NA 27.8% 20.7% 49.5% 20.0% 15.0% 10.0% 9.0% 4.0% COGS 136.2 158.0 181.2 256.5 318.2 347.6 382.4 416.8 433.5 Gross Profit $55.4 $87.0 $114.4 43.7% $185.4 $212.1 $262.2 $288.5 $314.4 $327.0 12.0% % margin 28.9% 35.5% 38.7% 42.0% 40.0% 43.0% 43.0% 43.0% 43.0% SG&A 15.2 20.9 35.2 44.7 47.7 54.9 60.4 65.8 68.4 EBITDA $40.2 $66.1 $79.2 40.4% $140.7 $164.4 $207.3 $228.1 $248.6 $258.6 12.9% % margin 21.0% 27.0% 26.8% 31.8% 31.0% 34.0% 34.0% 34.0% 34.0% Depreciation & Amortization 17.9 19.3 21.0 25.1 26.5 36.6 47.0 51.2 53.2 EBIT $22.3 $46.8 $58.2 61.5% $115.6 $137.9 $170.8 $181.1 $197.4 $205.3 12.2% % margin 11.6% 19.1% 19.7% 26.2% 26.0% 28.0% 27.0% 27.0% 27.0% Taxes 7.8 7.9 11.1 32.3 38.5 47.7 50.6 55.1 57.3 EBIAT $14.5 $38.8 $47.1 80.1% $83.3 $99.4 $123.1 $130.6 $142.3 $148.0 12.2% Plus: Depreciation & Amortization 17.9 19.3 21.0 25.1 26.5 36.6 47.0 51.2 53.2 Less: Capital Expenditures (13.4) (15.2) (66.7) (105.7) (66.3) (67.1) (67.1) (58.5) (45.6) Less: Increase in Net Working Capital (50.9) (14.4) (13.9) (15.5) (4.6) Unlevered Free Cash Flow $8.7 $78.2 $96.6 $119.5 $151.1 WACC 6.3% Discount Period 3.0% 1.0 2.0 3.0 4.0 5.0 Discount Factor 0.94 0.89 0.83 0.78 0.74 Present Value of Free Cash Flow $8.2 $69.2 $80.5 $93.7 $111.5 Projection Period Assumptions Sales (% growth) NA 27.8% 20.7% 49.5% 20.0% 15.0% 10.0% 9.0% 4.0% COGS (% sales) 71.1% 64.5% 61.3% 58.0% 60.0% 57.0% 57.0% 57.0% 57.0% SG&A (% sales) 7.9% 8.5% 11.9% 10.1% 9.0% 9.0% 9.0% 9.0% 9.0% Depreciation & Amortization (% sales) 9.3% 7.9% 7.1% 5.7% 5.0% 6.0% 7.0% 7.0% 7.0% Capital Expenditures (% sales) 7.0% 6.2% 22.6% 23.9% 12.5% 11.0% 10.0% 8.0% 6.0% Tax Rate 35.0% 17.0% 19.1% 27.9% 27.9% 27.9% 27.9% 27.9% 27.9% Working Capital (% sales) 15.2% 15.6% 16.2% 17.0% 17.0% Enterprise Value Implied Perpetuity Growth Rate Cumulative Present Value of FCF $363.2 Enterprise Value $1,794.7 Terminal Year Free Cash Flow (2017E) $151.1 Less: Total Debt (368.0) WACC 6.3% Less: Preferred Securities - Terminal Value $1,939.2 Terminal Year EBITDA (2017E) $258.6 Less: Noncontrolling Interest Exit Multiple 7.5x Plus: Cash and Cash Equivalents 165.0 Implied Perpetuity Growth Rate 3.0% Terminal Value $1,939.2 Discount Factor 0.74 Implied Equity Value $1,591.7 Implied EV/EBITDA Present Value of Terminal Value $1,431.5 Enterprise Value $1,794.7 % of Enterprise Value 79.8% Shares Outstanding 53.0 LTM 3/31/2013 EBITDA 143.1 Enterprise Value $1,794.7 Implied Share Price $30.04 Implied EV/EBITDA 12.5x Terminal Value Implied Equity Value and Share Price
  17. 17. • Operating labor costs represent the largest spend category at approximately 12% of sales • Fixed costs, specifically Energy costs directly related to the production of products represented 5% of total sales during each of the three months ended March 31, 2013 and 2012 • Strong Contribution Margin: ability to withstand price fluctuations, pay dividend, make acquisitions, etc. – Increased sales due to logistical and supply advantages should positively impact CM Sales: Oil and gas proppants $243,765.00 $107,074.00 $69,556.00 Industrial and specialty products 198,156 188,522 175,397 Total sales 441,921 295,596 244,953 Segment contribution margin: Oil and gas proppants 107.23% 140,070 56.76% 67,590 43,118 Margin (% Sales) 57.46% 63.12% 61.99% Industrial and specialty products 53,601 53,013 46,031 Margin (% Sales) 27.05% 28.12% 26.24% Total segment contribution margin 193,671 120,603 89,149 Margin (% Sales) 43.82% 40.80% 36.39% Years Ended December 31, 2012 2011 2010 Financials
  18. 18. Relative Value Company EV/EBITDA 2014 NTM Forward P/E LT EPS Growth Rate Gross Margin % 2014 Forward ROE SLCA 6.98x 11.90x 27.5% 44.0% 33% CRR 7.56x 19.19x 12.0% 32.1% 14.1% Implied Share Price Exit Multiple 22.3 4.0x 4.5x 5.0x 5.5x 6.0x 9.3% 26.07 27.62 29.17 30.71 32.26 9.8% 25.67 27.18 28.69 30.21 31.72 10.3% 25.28 26.76 $28.24 29.72 31.20 10.8% 24.90 26.34 27.79 29.24 30.68 11.3% 24.52 25.94 27.35 28.77 30.18 WACC
  19. 19. P/EBITDA SLCA and CRR Relative Value
  20. 20. • Execution risks • Reduction in drilling activity – Fewer horizontal rigs – Fewer stages – Reduced lateral well length • Lower commodity prices • Oversupply of proppant • Negative mix shift to lower margin sand such as 100 mesh • Increased environmental regulations • Poor sales in their new RSC proppant Risks
  21. 21. • Low cost/high quality producer • Superior logistics • Growth projects • M&A – Mining, processing, transloads/logistics, and/or storage • Increase market share • Strong Contribution Margin: 44% • Dividend yield: 2.3% – Potential increase (motivated by Golden Gate Capital) • Relative value – Trading at a discount to peer • Short squeeze – 32% Short interest • Share repurchase program – ~$10.5MM left of the $25MM initial repurchase program in 2012 Summary
  22. 22. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 2/1/2012 3/1/2012 4/1/2012 5/1/2012 6/1/2012 7/1/2012 8/1/2012 9/1/2012 10/1/2012 11/1/2012 12/1/2012 1/1/2013 2/1/2013 3/1/2013 4/1/2013 5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 U.S. Silica Holdings Close $30.04 (+48%) $40.05 (+98%) $15.00 (-25%) Risk Reward
  23. 23. Appendix
  24. 24. NWC US Silica Holdings Inc. Working Capital Projections ($ in millions) Historical Period 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales $191.6 $245.0 $295.6 $441.9 $530.3 $609.9 $670.8 $731.2 $760.5 Cost of Goods Sold 136.2 158.0 181.2 256.5 318.2 347.6 382.4 416.8 433.5 Current Assets Accounts Receivable 25.7 29.3 45.3 55.5 71.2 81.9 88.2 96.2 100.0 Inventories 23.3 22.4 29.3 39.8 56.7 66.7 78.6 91.4 95.0 Prepaid Expenses and Other 3.4 3.2 8.6 6.7 10.6 12.2 13.4 14.6 15.2 Total Current Assets $52.4 $54.9 $83.1 $102.0 $138.5 $160.7 $180.2 $202.1 $210.2 Current Liabilities Accounts Payable 9.8 12.0 36.6 37.3 39.2 40.0 45.0 49.1 52.3 Accrued Liabilities 7.0 9.1 11.5 9.5 8.0 13.4 14.1 16.1 16.0 Other Current Liabilities - - 10.4 25.5 10.6 12.2 12.1 12.4 12.9 Total Current Liabilities $16.8 $21.1 $58.5 $72.3 $57.8 $65.6 $71.2 $77.6 $81.2 Net Working Capital $35.6 $33.8 $24.6 $29.8 $80.7 $95.1 $109.0 $124.5 $129.1 % sales 18.6% 13.8% 8.3% 6.7% 15.2% 15.6% 16.2% 17.0% 17.0% (Increase) / Decrease in NWC $1.8 $9.2 ($5.1) ($50.9) ($14.4) ($13.9) ($15.5) ($4.6) Assumptions Days Sales Outstanding 49.0 43.6 55.9 45.8 49.0 49.0 48.0 48.0 48.0 Days Inventory Held 62.4 51.8 59.0 56.7 65.0 70.0 75.0 80.0 80.0 Prepaids and Other CA (% of sales) 1.8% 1.3% 2.9% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0% Days Payable Outstanding 26.2 27.8 73.7 53.1 45.0 42.0 43.0 43.0 44.0 Accrued Liabilities (% of sales) 3.7% 3.7% 3.9% 2.1% 1.5% 2.2% 2.1% 2.2% 2.1% Other Current Liabilities (% of sales) - % - % 3.5% 5.8% 2.0% 2.0% 1.8% 1.7% 1.7% Projection Period
  25. 25. WACC US Silica Holdings Inc. Weighted Average Cost of Capital Analysis ($ in millions) Target Capital Structure Predicted Market Market Debt/ Marginal Unlevered Debt-to-Total Capitalization 60.0% Company Levered Beta Value of Debt Value of Equity Equity Tax Rate Beta Equity-to-Total Capitalization 40.0% CARBO Ceramics Inc. (NYSE:CRR) 0.71 $0.00 $1,632.3 - % 35.0% 0.71 Texas Industries Inc. (NYSE:TXI) 1.93 $660.20 $1,891.9 34.9% 35.0% 1.57 - Cost of Debt - Cost of Debt 4.8% - Tax Rate 35.0% After-tax Cost of Debt 3.1% Mean 1.32 17.4% 0.46 Median 1.32 17.4% - Cost of Equity Risk-free Rate 1.8% Mean Target Target Market Risk Premium 8.0% Unlevered Debt/ Marginal Relevered Levered Beta 0.90 Beta Equity Tax Rate Beta Size Premium 2.00% Relevered Beta 0.46 150.0% 35.0% 0.90 Cost of Equity 11.0% WACC 6.3% 0.1 4.0% 4.5% 5.0% 5.5% 6.0% 32.0% 6.7% 6.8% 6.9% 7.0% 7.1% 42.0% 6.4% 6.5% 6.7% 6.8% 7.0% 52.0% 6.2% 6.3% 6.5% 6.7% 6.8% 62.0% 5.9% 6.1% 6.3% 6.5% 6.7% 72.0% 5.7% 5.9% 6.1% 6.4% 6.6% Pre-tax Cost of Debt Debt-to-Total Capitalization WACC Calculation Comparable Companies Unlevered Beta ValueCo Relevered Beta WACC Sensitivity Analysis
  26. 26. Revenue Drivers SLCA MODEL: Operating Data Drivers Drivers 2010 2011 2012 2013 2014 2015 2016 2017 Oil & Gas Volumes: Raw Tons Sold (000's) 1,522 2,018 2,919 3,656 4,500 4,950 5,247 5,509 (% of Total Propant Sold) 46.9% 50.1% 51.3% 51.8% 52.3% RCS Tons Sold (000's) 0 0 0 50 195 200 250 259 (% of Total Propant Sold) 0.64% 2.17% 2.07% 2.47% 2.46% Total Oil & Gas Propants Tons Sold (000's) 1,522 2,018 2,919 3,706 4,695 5,150 5,497 5,768 (% of Total Propant Sold) 25.5% 32.1% 40.7% 47.6% 52.3% 53.4% 54.3% 54.7% Industrial & Speciatly Products Tons Sold (000's) 4,443 4,271 4,252 4,082 4,286 4,500 4,635 4,774 (% of Total Propant Sold) 74.5% 67.9% 59.3% 52.4% 47.7% 46.6% 45.7% 45.3% Total Propant Sold (000's) 5,965 6,289 7,171 7,788 8,981 9,650 10,132 10,543 Raw Frac Sand $ Avg. Relized Price per Raw ton $45.73 $53.07 $83.49 $87.03 $79.96 $81.31 $83.61 $82.02 Avg. Relized Price per RCS ton na na na 318.18$ 218.92$ 268.33$ 233.99$ 232.63$ Avg. Relized Price per ISP ton $39.48 $44.13 $46.61 $48.07 $48.38 $47.70 $50.48 $50.48
  27. 27. Income StatementIncome Statement For the Fiscal Period Ending 12 months Dec-31-2010 12 months Dec-31-2011 12 months Dec-31-2012 2013E 2014E 2015E 2016E 2017E Currency USD USD USD USD USD USD USD USD Revenue 245.0 295.6 441.9 Oil & Gas Raw Frac Sand 69.6 107.1 243.7 $318.2 $359.8 $402.5 $438.7 $451.9 (% of total Sales) 28.4% 36.2% 55.1% 60.0% 59.0% 60.0% 60.0% 60.0% Oil & Gas RCS 0 0 0 $15.9 $42.7 $53.7 $58.5 $60.3 (% of total Sales) 0.0% 0.0% 0.0% 3.0% 7.0% 8.0% 8.0% 8.0% Industrial & Specialty Products 175.4 188.5 198.2 $196.2 $207.3 $214.7 $234.0 $241.0 (% of total Sales) 71.6% 63.8% 44.8% 37.0% 34.0% 32.0% 32.0% 32.0% Other Revenue - - - 0 0 0 0 0 Total Revenue 245.0 295.6 441.9 530.3 609.9 670.8 731.2 753.1 Contribution Margin Oil & Gas 43.1 67.6 140.1 184.5 212.3 241.5 263.2 271.1 (% of Oil & Gas Sales) 62.0% 63.1% 57.5% 58.0% 59.0% 60.0% 60.0% 60.0% RCS 0.0 0.0 0.0 $4.8 $12.8 $16.1 $18.1 $18.7 (% of RCS Sales) n/a n/a n/a 30.0% 30.0% 30.0% 31.0% 31.0% Industrial & Sepciatly Products (ISP) 46.0 53.0 53.6 53.0 56.0 58.0 63.2 65.1 (% of ISP Sales) 26.2% 28.1% 27.0% 27.0% 27.0% 27.0% 27.0% 27.0% Total Contribution Margin 89.1 120.6 193.7 242.3 281.1 315.6 344.5 354.9 (% of Total Sales) 36.4% 40.8% 43.8% 45.7% 46.1% 47.0% 47.1% 47.1% Cost Of Goods Sold 158.0 181.2 256.5 318 Gross Profit 87.0 114.4 185.4 212.1 262.2 288.5 314.4 323.9 Other COGS (extra from Segment COGS) 2.2 6.2 8.3 Selling General & Admin Exp. 20.9 35.2 44.7 47.7 54.9 60.4 65.8 67.8 R & D Exp. - - - Depreciation & Amort. 19.3 21.0 25.1 26.5 36.6 47.0 51.2 52.7 Other Operating Expense/(Income) - - - Other Operating Exp., Total 40.2 56.2 69.8 46.8 58.2 115.6 Operating Income (EBIT) 46.8 58.2 115.6 137.88 170.76 181.13 197.43 203.35 Interest Expense (23.0) (18.4) (13.8) (15.0) (15.4) (15.0) (15.0) (15.0) Interest and Invest. Income 0.0 0.1 0.2 Net Interest Exp. (23.0) (18.3) (13.6) (15.0) (15.4) (15.0) (15.0) (15.0) Other Non-Operating Inc. (Exp.) 0.9 1.0 4.4 EBT Excl. Unusual Items 24.7 40.9 106.4 122.9 155.4 166.1 182.4 188.3 Impairment of Goodw ill - - - Legal Settlements (0.8) 2.6 3.4 Other Unusual Items (10.2) (6.0) - 1.2 1.6 1.7 1.8 1.9 EBT Incl. Unusual Items 13.7 37.4 109.8 121.7 153.8 164.5 180.6 186.5 Income Tax Expense 2.3 7.2 30.7 38.5 47.7 50.6 55.1 56.8 Earnings from Cont. Ops. 11.4 30.3 79.2 83.2 106.1 113.9 125.5 129.7 Earnings of Discontinued Ops. - - - Extraord. Item & Account. Change - - - Net Income to Company 11.4 30.3 79.2 83.2 106.1 113.9 125.5 129.7 Minority Int. in Earnings - - - Net Income 11.4 30.3 79.2 83.2 106.1 113.9 125.5 129.7 Pref. Dividends and Other Adj. - - - NI to Common Incl Extra Items 11.4 30.3 79.2 NI to Common Excl. Extra Items 11.4 30.3 79.2 Per Share Items Basic EPS $0.23 $0.61 $1.5 1.57 2.00 2.15 2.37 2.45
  28. 28. Sand RCS 15 stages 200,000 lbs proppant/stage 3MM pounds or 1,500 tons 1 week complete 2-3 days Each Stage Trucks can carry ~ 25 tons Railcar can carry ~ 100 tons Distribution Example
  29. 29. 2013 P/E SLCA and CRR • SLCA trading at just over half CRR P/E ratio Relative Value
  30. 30. Relative Value 2014 SLCA P/E 9x vs. CRR P/E 15.2x
  31. 31. ROA SLCA and CRR Relative Value

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