Smart Sand, Inc. (SND): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the journey of sand from the mine to the wellsite and how it impacts the energy industry? Smart Sand, Inc. (SND), a fully integrated frac and industrial sand supply and services company, has been making strides in this field, reporting a 17% sales volume growth for the year 2024 and a 45% sequential growth in the fourth quarter. But how did it all begin, who are the key players, and what's their secret to success? Keep reading to discover the history, ownership, mission, and business model that drive this company.

Smart Sand, Inc. (SND) History

Smart Sand, Inc. Founding Timeline

Year established

The company was founded in 2011.

Original location

The original location is The Woodlands, Texas.

Founding team members

The founding team members are not mentioned in the provided documents.

Initial capital/funding

Information about the initial capital or funding is not available in the provided context.

Smart Sand, Inc. Evolution Milestones

Smart Sand, Inc. Transformative Moments

• Strategic Acquisition of a Wisconsin Frac Sand Mine (2012): This acquisition was a pivotal moment, providing the company with its initial reserves and establishing its presence in the frac sand market. The 3.3 million tons of proven reserves formed the backbone of its early operations.
• Initial Public Offering (IPO) in 2016: The IPO marked a significant step in the company's growth, providing it with the capital necessary to expand its operations and increase its production capacity. This move allowed the company to invest in infrastructure and technology, enhancing its competitive position.
• Operational Challenges and Recovery (2019-2021): The period around 2019 presented operational challenges, but the company's ability to recover and achieve a net income of $5.9 million in 2021 demonstrates its resilience and adaptability. This turnaround was crucial in restoring investor confidence and setting the stage for future growth.
• Financial Performance in 2022: The financial results of 2022, with revenues of $267.4 million and a net income of $24.2 million, underscore the effectiveness of the company's strategies and its ability to capitalize on market opportunities. This performance solidified its position as a key player in the industry.
• Reverse Stock Split (2023): The reverse stock split in 2023 was a strategic decision aimed at increasing the stock price and maintaining exchange listing requirements. This move reflects proactive management to ensure long-term stability and attractiveness to investors.

For more information about the company's goals, read this: Mission Statement, Vision, & Core Values of Smart Sand, Inc. (SND).

Smart Sand, Inc. (SND) Ownership Structure

Smart Sand, Inc. features a mix of institutional, retail, and insider ownership, influencing its corporate governance and strategic direction.

Smart Sand, Inc.'s Current Status

Smart Sand, Inc. is a publicly traded company, which means its shares are available for purchase by the general public on a stock exchange.

Smart Sand, Inc.'s Ownership Breakdown

The ownership of Smart Sand, Inc. is distributed among various types of shareholders. The following table provides a detailed breakdown:

Smart Sand, Inc.'s Leadership

The leadership team at Smart Sand, Inc. is responsible for the strategic direction and operational management of the company. Key members include:

• Bryan Gernert: President and CEO
• Lee Beckelman: Chief Financial Officer

Understanding a company's financial health is crucial for investors. For an in-depth analysis, see: Breaking Down Smart Sand, Inc. (SND) Financial Health: Key Insights for Investors

Smart Sand, Inc. (SND) Mission and Values

Smart Sand, Inc. aims to deliver high-quality frac sand solutions while upholding values of safety, integrity, and customer satisfaction. These principles guide their operations and relationships with stakeholders.

Smart Sand, Inc.'s Core Purpose

Official mission statement

While Smart Sand, Inc. does not have a single, formally published mission statement, their core objectives can be inferred from company communications and strategic priorities:

• To provide superior proppant solutions to the energy industry, ensuring efficient and reliable supply.
• To operate with an unwavering commitment to safety, protecting employees, communities, and the environment.
• To foster strong, collaborative relationships with customers, delivering tailored solutions and exceptional service.
• To drive innovation and efficiency in their operations, optimizing resource utilization and minimizing environmental impact.

Vision statement

Smart Sand, Inc.'s vision is to be a leading provider of proppant solutions, recognized for quality, reliability, and sustainability:

• To be the preferred supplier of frac sand, known for product excellence and consistent performance.
• To set the standard for safety and environmental responsibility in the proppant industry.
• To expand their market presence through strategic investments and innovative product offerings.
• To create long-term value for shareholders by delivering sustainable growth and profitability.

Company slogan/tagline

Smart Sand, Inc. does not have an official slogan or tagline. For more insights into Smart Sand, Inc.'s financial stability, see Breaking Down Smart Sand, Inc. (SND) Financial Health: Key Insights for Investors.

Smart Sand, Inc. (SND) How It Works

Smart Sand, Inc. operates as a provider of proppant solutions, which are essential in hydraulic fracturing for oil and natural gas extraction; they focus on sourcing, processing, and delivering high-quality frac sand to enhance well production.

Smart Sand's Product/Service Portfolio

Smart Sand's Operational Framework

Smart Sand integrates its operations to ensure efficiency and reliability in delivering proppant solutions. Their framework includes:

• Sourcing and Processing: The company sources raw sand from its strategically located mines in Wisconsin, known for high-quality Northern White Sand. The sand undergoes rigorous processing, including washing, screening, and drying, to meet specific industry standards.
• Quality Control: Smart Sand maintains strict quality control measures throughout the production process to ensure consistent product specifications and performance. This includes regular testing for crush resistance, turbidity, and particle size distribution.
• Logistics and Distribution: With their SmartSystems™ logistics solutions, Smart Sand manages the transportation and delivery of frac sand from the mine to the well site. This involves a network of transloading terminals and transportation infrastructure to optimize delivery times and reduce costs.
• Customer Support: Smart Sand provides technical support and consultation to help customers optimize their proppant selection and usage. This includes analyzing well conditions and recommending the appropriate sand type and mesh size.

To know more about the company's values, check this link: Mission Statement, Vision, & Core Values of Smart Sand, Inc. (SND).

Smart Sand's Strategic Advantages

Smart Sand's success in the proppant market is supported by several strategic advantages:

• High-Quality Reserves: Access to premium Northern White Sand reserves in Wisconsin ensures a consistent supply of high-performance proppant.
• Integrated Logistics: The SmartSystems™ logistics solutions offer a competitive edge by providing reliable and cost-effective delivery services.
• Customer Focus: Smart Sand's commitment to customer support and technical expertise fosters long-term relationships and drives repeat business.
• Operational Efficiency: Continuous improvement in mining and processing operations enhances productivity and reduces costs.

Smart Sand, Inc. (SND) How It Makes Money

The company primarily generates revenue by selling Northern White sand, a specialized mineral used as proppant in hydraulic fracturing operations within the oil and gas industry.

Revenue Breakdown

Here's a look at the company's revenue streams based on the latest available information from the 2024 fiscal year:

Business Economics

The company's business economics are heavily influenced by factors such as:

• Sand Pricing: Prices for Northern White sand fluctuate based on supply and demand dynamics within the oil and gas industry. Higher demand and limited supply drive prices up, while oversupply can lead to price decreases.
• Transportation Costs: A significant portion of the cost is related to transporting sand from the mines to the well sites. Efficient logistics and favorable transportation agreements are crucial for maintaining profitability.
• Proppant Intensity: The amount of proppant used per well in hydraulic fracturing directly impacts the volume of sand sold. Changes in well designs or completion techniques can affect proppant intensity.
• Customer Relationships: Maintaining strong relationships with key customers (oil and gas exploration companies) ensures consistent demand and sales volumes.

Financial Performance

Here are key aspects of the company's financial performance:

• Revenue Volatility: Revenues can be volatile due to fluctuations in oil and gas activity and sand prices.
• Gross Margins: Gross margins are influenced by sand prices, production costs, and transportation expenses.
• Operating Expenses: Managing operating expenses, including SG&A (selling, general, and administrative) costs, is crucial for profitability.
• Capital Expenditures: The company invests in maintaining and expanding its production capacity, which impacts capital expenditures.
• Debt Levels: Monitoring debt levels and managing interest expenses is important for financial stability.

To gain more insight into the company and its investors, check out this profile: Exploring Smart Sand, Inc. (SND) Investor Profile: Who’s Buying and Why?

Smart Sand, Inc. (SND) Market Position & Future Outlook

As of April 2025, Smart Sand, Inc. is strategically positioned to capitalize on evolving market dynamics within the industrial sand sector, balancing growth opportunities with inherent industry risks. To gain more insights into the company's financial standing, consider exploring: Breaking Down Smart Sand, Inc. (SND) Financial Health: Key Insights for Investors.

Competitive Landscape

The industrial sand market is characterized by a mix of large and small players, each vying for market share. Here's a snapshot of the competitive landscape:

Opportunities & Challenges

Smart Sand, like other companies in the industrial sand sector, faces a blend of opportunities and challenges that will shape its trajectory.

Industry Position

Smart Sand, Inc. holds a notable position within the industrial sand market, particularly known for its focus on supplying high-quality Northern White sand. Key aspects of its industry standing include:

• Strategic Locations: The company's mines are strategically located to access key shale basins, providing a logistical advantage.
• Product Quality: Smart Sand emphasizes the quality of its sand, which is crucial for demanding oil and gas applications.
• Logistics Network: A significant part of Smart Sand's strategy involves developing and maintaining an efficient logistics network to ensure timely delivery to customers.