U.S. Silica reports Q1 EPS (98c), consensus (43c)

Reports Q1 revenue $269.6M, consensus $320.02M. Reports Q1 adj. EPS (3c). Q1 results were negatively impacted by $103.9 million or $1.07 per share in goodwill and other asset impairments, $2.2 million or 2c per share in costs related to plant startup and expansion, $1.1 million or 1c per share in facility closure costs, $0.6 million or 1c per share related to merger and acquisition expenses, partly offset by $15.2 million or 16c per share in other adjustments, resulting in Q1 adjusted EPS of (3c) per basic and diluted share. Bryan Shinn, CEO, said, "Despite the COVID-19 pandemic and energy market headwinds, we experienced minimal operational disruptions during the quarter thanks to the efforts of our team. While we recognize the challenges that lie ahead in our Oil & Gas segment, we are encouraged by the resilience of our Industrial & Specialty Products segment, which delivered double-digit profitability growth in the quarter. Looking ahead, we expect that our diatomaceous earth and specialty clay product lines in particular will continue to perform relatively well, spurred by strong demand for food and beverage filtration media. In our Oil & Gas segment, we expect that volumes and loads will directionally track completions activity, but, as with the 2015-2016 oilfield downturn, we expect to gain market share this year due to our attractive, low cost offerings," he added. "We also remain laser focused on liquidity management and have rapidly aligned our cost structure and capacity with changing customer demand, which we believe will allow us to emerge from this downturn leaner, stronger and well-positioned to capitalize when the inevitable rebound occurs," he concluded.