any singular event on an ongoing basis, similar types of expenses may
recur in the future.
(7) Reflects miscellaneous adjustments permitted under the Credit Agreement,
such as recruiting fees and relocation costs. The three months ended
March 31, 2024 also included costs related to severance restructuring of
$0.1 million, $0.3 million of sales of assets, and $2.0 million related
to the loss on extinguishment of debt. The three months ended December
31, 2023 also included costs related to severance restructuring of $0.1
million, recruiting costs of $0.5 million, and $1.0 million related to
the loss on extinguishment of debt, offset by net proceeds of the sale of
assets of $12.4 million. The three months ended March 31, 2023 also
included costs related to severance restructuring of $0.8 million, an
adjustment to non-controlling interest of $0.2 million and $5.3 million
related to the loss on extinguishment of debt, offset by an insurance
recovery of $0.8 million.
Adjusted EPS
Adjusted EPS is diluted earnings or loss per share adjusted to exclude costs associated with merger & acquisition related activities and strategic business reviews, costs associated with business optimization, the effect of a non-recurring depreciation adjustment, and gain or loss on debt extinguishment.
Management believes Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's operations to assist investors in reviewing the Company's operating performance over time. Management believes it is useful to exclude certain items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items may not relate specifically to current operating trends or be indicative of future results.
The following table sets forth a reconciliation from GAAP EPS to adjusted EPS:
Three Months Ended
----------------------------------------------------------
March 31, December 31, March 31,
2024 2023 2023
------------------ ------------------ ------------------
Reported
Diluted EPS $ 0.17 $ 0.37 $ 0.57
Business
Optimization -- 0.01 0.01
Facility
Closure Costs -- 0.03 --
Asset
(Gain)/Loss -- (0.15) --
(Gain)/Loss on
extinguishment
of debt 0.02 0.01 0.05
Other 0.01 0.01 0.01
------------------ ------------------ ------------------
Total
Adjustments 0.03 (0.09) 0.07
------------------ ------------------ ------------------
Adjusted
Diluted EPS $ 0.20 $ 0.28 $ 0.64
================== ================== ==================
Diluted Shares 79,032 78,799 78,292
Net Debt
Net Debt is calculated by adding together the current portion of long-term debt and long-term debt, net and subtracting cash and cash equivalents from the total. Net debt shows how a company's indebtedness has changed over a period as a result of cash flows. Net debt allows investors to see how business financing has changed and assess whether an entity that has had a significant increase in cash has, for example, achieved this only by taking on a corresponding increase in debt. Net debt is not a measure of our financial performance or liquidity under GAAP and should not be considered as an alternative to net income as a measure of operating performance, cash flows from operating activities as a measure of liquidity or any other performance measure derived in accordance with GAAP.
Net Leverage Ratio
Net Leverage Ratio is calculated by dividing net debt by Trailing Twelve Month $(TTM)$ Adjusted EBITDA. Management believes that net leverage ratio provides useful information to investors because it is an important indicator of the Company's indebtedness in relation to its operating performance. Net Leverage Ratio should be considered in addition to results prepared in accordance with GAAP and should not be considered substitutes for or superior to GAAP results. In addition, our Net Leverage Ratio may not be comparable to similarly titled measures utilized by other companies.
The following table sets forth a reconciliation for net debt and net leverage ratio:
Three Months Ended
(All amounts in March 31, June 30, September 30, December 31, March 31,
thousands) 2023 2023 2023 2023 2024
------------- ------------- ------------- ---------------- ----------------
Cash and cash
equivalents $ (139,494) $ (186,961) $ (222,435) $ (245,716) $ (234,481)
Current portion
of long-term
debt 13,590 10,152 19,763 16,367 12,708
Long-term debt 897,013 871,913 847,849 823,670 796,754
------------- ------------- ------------- ---------------- ----------------
Net debt $ 771,109 $ 695,104 $ 645,177 $ 594,321 $ 574,981
============= ============= ============= ================ ================
TTM Adjusted
EBITDA $ 425,291 $ 455,142 $ 454,565 $ 439,000 $ 391,497
Net Leverage 1.8x 1.5x 1.4x 1.4x 1.5x
Ratio
Forward-looking Non-GAAP Measures
A reconciliation of net leverage ratio and segment contribution margin as used in our guidance, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the Company is unable to provide such reconciliations without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.
U.S. Silica Holdings, Inc.
Investor Contact
Marcelo Barbosa
Vice President, Finance
(281) 258-2173
barbosa@ussilica.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/us-silica-holdings-inc-reports-first-quarter-2024-results-302128554.html
SOURCE U.S. Silica
(END) Dow Jones Newswires
April 26, 2024 07:01 ET (11:01 GMT)
Comments