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smartsandⓇ Smart Sand , Inc. Announces Third Quarter 2021 Results November 9 , 2021 • 3Q 2021 revenue of $ 34.5 million • 3Q 2021 total tons sold of approximately 790,000 • 3Q 2021 net cash provided by operating activities of $ 1.1 million • 3Q 2021 free cash flow of $ ( 0.9 ) million THE WOODLANDS , Texas , Nov. 09 , 2021 ( GLOBE NEWSWIRE ) Smart Sand , Inc. ( NASDAQ : SND ) ( the " Company " or " Smart Sand " ) , a fully integrated frac sand supply and services company , a low - cost producer of high quality Northern White raw frac sand and provider of proppant logistics solutions through both its in - basin transloading terminal and SmartSystemsTM products and services , today announced results for the third quarter 2021 . -- Charles Young , Smart Sand's Chief Executive Officer , stated " During the third quarter , we increased sales volumes sequentially and generated positive cash flow from operations . We continue to manage our capital expenditures prudently and reduce our leverage as we pay down our equipment financing debt . We are starting to see signs of increased activity going into 2022 and we believe that our investment in our new Waynesburg , Pennsylvania terminal to service the Appalachian Basin , including the Marcellus and Utica Formations , is going to provide us with the ability to expand our market share in this key Northern White Sand market . " Third Quarter 2021 Results Revenues were $ 34.5 million in the third quarter of 2021 , compared to $ 29.6 million in the second quarter of 2021 and $ 23.4 million in the third quarter of 2020. Revenues were up in the third quarter , compared to the second quarter of 2021 , due to higher sand sales revenues resulting from higher in - basin sales volumes and higher shortfall revenue . The increase in revenue in the third quarter of 2021 , as compared to the third quarter of 2020 , was primarily due to the negative impact of COVID - 19 on sales during 2020 , which was partially offset by shortfall revenue . Tons sold were approximately 790,000 in the third quarter of 2021 , compared with approximately 767,000 tons in the second quarter of 2021 and 309,000 tons in the third quarter of 2020 , increases of 3 % and 156 % , respectively . Demand has increased from last year as the overall economy has improved from the depressed levels caused by COVID - 19 in 2020 . For the third quarter of 2021 , the Company had a net loss of $ ( 7.3 ) million , or $ ( 0.17 ) per basic and diluted share , compared to net loss of $ ( 27.3 ) million , or $ ( 0.65 ) per basic and diluted share , for the second quarter of 2021 and net income of $ 36.3 million , or $ 0.91 per basic and diluted share , for the third quarter of 2020. The net loss in the third quarter is primarily attributable to continued low average selling prices relative to our cost to produce and deliver sand to our customers . The net loss in the second quarter of 2021 was primarily due to $ 19.6 million recorded as non - cash bad debt expense , which was the difference between the $ 54.6 million accounts receivable balance that was subject to the Company's litigation with U.S. Well Services , LLC ( " U.S. Well " ) and the $ 35.0 million cash received in the settlement of such litigation , as well as continued low average selling prices relative to our cost to deliver sand to our customers . The difference in net loss in third quarter of 2021 compared to the net income third quarter of 2020 was primarily due to $ 39.9 million gain on bargain purchase related to our acquisition of Eagle Proppants Holdings in September 2020 . Contribution margin was $ 4.1 million , or $ 5.19 per ton sold , for the third quarter of 2021 compared to $ 3.5 million , or $ 4.55 per ton sold , for the second quarter of 2021 and $ 10.4 million , or $ 33.52 per ton sold , for the third quarter of 2020. Additional shortfall revenue in the third quarter was offset by higher shipping costs due to additional volumes sold in basin . The decrease in contribution margin and contribution margin per ton in the third quarter of 2021 compared to the same period in the prior year was due primarily to higher shortfall revenue in the prior year period offsetting historically low sales volumes as the COVID - 19 pandemic negatively affected the global economy . Adjusted EBITDA was $ ( 1.0 ) million for the third quarter of 2021 , compared with $ ( 21.5 ) million for the second quarter of 2021 and $ 6.1 million for the third quarter of 2020. Adjusted EBITDA in the third quarter of 2021 was negatively affected by continued low average sales prices on sand relative to our cost to produce and deliver it to our customers . Adjusted EBITDA in the second quarter of 2021 includes $ 19.6 million bad debt expense related to the settlement of litigation with U.S. Well . Adjusted EBITDA in the third quarter of 2020 was primarily driven by shortfall revenue recognized in the period . Liquidity Our primary sources of liquidity are cash on hand , cash flow generated from operations and available borrowings under our ABL Credit Facility . As of September 30 , 2021 , cash on hand was $ 36.7 million and we had $ 16.5 million in undrawn availability on our ABL Credit Facility , with no borrowings outstanding . For the nine months ended September 30 , 2021 , we spent approximately $ 7.0 million on capital expenditures , which was primarily spent on investment in additional SmartSystems fleets and maintenance and efficiency projects at our mining facilities . We estimate that full year 2021 capital expenditures will be between $ 14.0 million and $ 16.0 million , with the majority of the incremental capital in the fourth quarter being spent on the completion of our new Waynesburg , Pennsylvania terminal to service the Appalachian Basin , including the Marcellus and Utica Formations . We