The company's full-year results were improved over those of 2017. Overall, Select Sands reported a 2018 net loss of $0.5 million, or $0.01 per share, compared to a net loss of $1.6 million, or $0.02 per share, the previous year. Similarly, adjusted EBITDA was $2.5 million in 2018 and –$0.1 million in 2017.
Specifically, the oil services firm sold 20% more fracking and industrial sand in 2018 than in 2017, 363,610 tons versus 303,607 tons. It increased revenue in 2018 by32% to $20.1 million from 2017's $15.1 million. Gross profit grew 59% to $4.6 million in 2018, up from $2.9 million in 2017, reflecting 3.8% gross margin improvement.
As for its Q4/18 results, Select Sands underperformed compared to Q3/18. It reported a net loss of $2.5 million, or $0.03 per share in Q4/18, greater than its net loss of $0.1 million, or $0.00 per share, in Q3/18.
Q4/18 sales of fracking and industrial sand were down quarter over quarter, at 24,897 tons versus 81,626 tons.Q4/18 revenue was $0.9 million for a gross loss of $0.5 million, whereas Q3/18 revenue was $4 million for a gross profit of $0.7 million.
At the end of Q4/18, the company had $4.8 million in cash and cash equivalents, $2.1 million in inventory on hand and $6 million in working capital. These figures were lower than those of Q3/18, which were $5.3 million, $2.6 million and $6.4 million, respectively.
President and CEO Zig Vitols explained in the release that the downturn in Q4/18 resulted from weaker demand for fracking sand, along with explorers and producers in the southern U.S. oil-producing basins using more brown sand instead of Select Sands' Northern White sand.
The latter trend has since reversed somewhat, he added, but the company "will remain diligent in managing our cost profile as we wait for a continued gradual but steady frac sand market recovery, particularly in the demand for Northern White, that we expect to occur through the remainder of 2019."[NLINSERT]
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