Boston, MA 05/06/2014 (wallstreetpr) – Emerge Energy Services LP (NYSE:EMES) reported Q12014 results that demolished a year earlier results. The company also provided details about underway efforts to ensure continued revenue and profit growth.
The latest quarter results came on the back of a challenging weather condition that led to a shortage in the availability of railcars. Therefore, as railcars become available due to the easing weather condition, the company expects to increase production and supply to the market thereby improving revenue. Moreover, availability of railcars should also lead to favorable transportation costs that should in turn impact the bottom-line positively.
The company noted overall positive performance in all its segments and expects the trend to continue.
Q1 in numbers
Emerge Energy Services LP (NYSE:EMES) earned a net income of $18.5 million or 77 cents per diluted unit in Q1. Net income in the same period a year earlier was $9.9 million. The latest quarter saw adjusted EBITDA come in at $28 million. Adjusted EBITDA in a year ago was $17.3 million. Distributable cash was $25.1 million in the latest quarter.
According to Chairman Ted W. Beneski, Q12014 was the strongest quarter the company has reported in its history as a publicly traded company. He observed that, despite the railcars shortage, the company sold a record 0.88 million tons of sand, while the fuel segment outperformed the expectations. As such, the management is not only excited for having delivered the promise in the quarter but also confident on meeting or exceeding expectations in the upcoming quarters.
The CEO Rick Shearer observed that Emerge Energy Services LP (NYSE:EMES) continues to attract new contracts while maintaining strong orders from the existing customers. The CEO announced that the company was on the verge of securing a permit for the Thompson Hill project in addition to other two expansion projects.
Emerge Energy Services LP (NYSE:EMES) declared a cash distribution of $1.13 per unit in Q12014. That signals about 13 percent increase above the Q42013 distribution figure of $1 per unit.