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Smart Sand, Inc. Announces Second Quarter 2024 Results

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2Q 2024 total tons sold of approximately 1.3 million2Q 2024 revenue of $73.8 million 2Q 2024 net income before income taxes $1.9 million2Q 2024 adjusted EBITDA of $11.9 million

YARDLEY, Penn., Aug. 13, 2024 /PRNewswire/ — Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a fully integrated frac and industrial sand supply and services company, a low-cost producer of high quality Northern White frac sand, a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystems™️ products and services and a provider of industrial product solutions, today announced results for the second quarter of 2024.

“Smart Sand had a strong second quarter” stated Charles Young, Smart Sand’s Chief Executive Officer.  “We implemented several efficiency measures during the quarter to reduce our production costs and administrative expenses that led to our contribution margin, adjusted EBITDA and free cash flow all improving compared to first quarter 2024 results.

“Currently we continue to see strong demand in the main operating basins we serve.  However, natural gas prices remain at low levels and exploration and production are continuing their recent trends of front-loading budget spending. So, we are keeping a close eye on activity levels and are prepared to right size our operations as needed should we see a slowdown in activity.   We returned to being free cash flow positive in the second quarter and we expect to be free cash flow positive for 2024.  While we could see some slowdown in activity in natural gas basins in the second half of the year, we believe long-term fundamentals for natural gas activity remain strong and we are well positioned to take advantage of expected increased activity in natural gas basins in 2025.  Additionally, we expect to start marketing sand in the Utica shale formation in the third quarter through our new terminals in northeast Ohio. Activity in this basin is targeting oil opportunities and increased activity in this market will help balance our sales volumes between oil and gas markets.  We continue to strengthen our balance sheet as we refinanced and extended the terms our existing Oakdale Equipment financing under a new $10 million, four year equipment financing. Our liquidity levels are strong, our leverage levels remain low. We remain focused on generating positive free cash flow on a consistent basis going forward.”

Second Quarter 2024 Highlights

Tons sold were approximately 1,274,000 in the second quarter of 2024, compared to approximately 1,336,000 tons in the first quarter of 2024 and 1,084,000 tons in the second quarter of 2023, a 5% decrease sequentially and 18% increase over the comparable period in 2023.

Revenues were $73.8 million in the second quarter of 2024, compared to $83.1 million in the first quarter of 2024 and $74.8 million in the second quarter of 2023. Revenues decreased in the second quarter of 2024, compared to the first quarter of 2023, primarily due to lower total sand sales. Second quarter 2024 revenues were relatively consistent compared to second quarter 2023, due to higher total sand sales, which were offset by lower average selling prices.

For the second quarter of 2024, we had net income before income tax of $1.9 million, compared to a net income before income tax of $0.4 million, for the first quarter of 2024 and net income before income tax of $3.0 million, for the second quarter of 2023. Income tax expense and benefits distorts our results of operations. We do not expect to make payments for federal income tax in 2024. For the second quarter of 2024, we had higher net income before income tax expense as compared to the first quarter of 2024, primarily due to realized savings on cost-saving measures to reduce our overall operating costs. The net income before income taxes in the second quarter of 2024 as compared to the second quarter of 2023 was lower primarily due to the loss on extinguishment of debt in the current period.

Second quarter 2024 contribution margin of $19.8 million, or $15.53 per ton sold, was an increase compared to $18.5 million, or $13.85 per ton sold, for the first quarter of 2024, and second quarter 2023 contribution margin of $19.0 million, or $17.57 per ton sold. The increase in contribution margin, compared to the first quarter of 2024, was due primarily to improved production costs realized from cost cutting measures, which led to higher contribution margin per ton sold, partially offset by lower total volumes. The increase in total contribution margin in the second quarter 2024 as compared to the second quarter 2023, was primarily due to higher utilization of our SmartSystems fleet and an increase in total volumes sold, along with lower production costs in the current period, partially offset by lower average selling prices.

Adjusted EBITDA was $11.9 million for the second quarter of 2024, compared to $9.3 million for the first quarter of 2024 and $11.3 million for the second quarter of 2023. The increase in adjusted EBITDA in the second quarter of 2024 compared to the prior quarter was primarily due to higher contribution margin per ton sold in the current period, partially offset by lower total volumes sold. The slight increase in the current period compared to the same period in the prior year was primarily due to higher volumes of sand sold and increased utilization of our SmartSystems fleet, offset by lower average selling prices.

Net cash provided by operating activities was $14.9 million in the second quarter of 2024, compared to net cash used in operating activities of $(3.9) million in the first quarter of 2024 and net cash provided by operating activities of $16.1 million in the second quarter of 2023. The increase in cash flow from operations in the second quarter of 2024 compared to the first quarter of 2024 was primarily due to decreased working capital pressure driven by consistently strong sales over the first half of 2024. The decline in cash flows from operating activities from the same period in the prior year was due to lower average selling prices in the current period.

Free cash flow was $13.5 million for the second quarter of 2024. Net cash provided by operating activities was $14.9 million and capital expenditures were $1.4 million in the second quarter of 2024. We currently estimate that full year 2024 capital expenditures will be between $10.0 million and $13.0 million.

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 June 30, 2024, cash on hand was $6.3 million and we had $18.0 million in undrawn availability on our ABL Credit Facility.

Conference Call

Smart Sand will host a conference call and live webcast for analysts and investors on August 14, 2024 at 10:00 a.m. Eastern Time to discuss its second quarter 2024 financial results. Investors are invited to join the conference by dialing (646) 357-8785 or 1-800-836-8184 and referencing “Smart Sand” when connected to the operator. Additionally, the call may also be streamed via webcast at  https://app.webinar.net/nbB1GQJmQRd or within the “Investors” section of the Company’s website at www.smartsand.com. A replay will be available shortly after the call and can be accessed on the “Investors” section of the Company’s website.

Forward-looking Statements

All statements in this news release other than statements of historical facts are forward-looking statements that contain our Company’s current expectations about our future results, including the Company’s expectations regarding future sales. We have attempted to identify any forward-looking statements by using words such as “expect,” “will,” “estimate,” “believe” and other similar expressions. Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements.

Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, delays in the completion of certain expansion and improvement projects at our existing facilities or failure to recognize the anticipated benefits of such projects, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, changes in economic or political conditions, and such other factors discussed or referenced in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on March 11, 2024, and in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed by the Company with the SEC on August 13, 2024.

You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

About Smart Sand

Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistic solutions to our frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company’s sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company also offers logistics solutions to our customers through its in-basin transloading terminals and our SmartSystems wellsite storage capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com.

SMART SAND, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

June 30, 2024

March 31, 2024

June 30, 2023

(unaudited)

(unaudited)

(unaudited)

Revenues:

Sand revenue

$                71,020

$                79,719

$                72,445

SmartSystems revenue

2,780

3,333

2,331

Total revenue

73,800

83,052

74,776

Cost of goods sold:

Sand cost of goods sold

58,903

68,967

60,193

SmartSystems cost of goods sold

1,824

2,274

1,894

Total cost of goods sold

60,727

71,241

62,087

Gross profit

13,073

11,811

12,689

Operating expenses:

Selling, general and administrative

8,871

10,350

8,953

Depreciation and amortization

671

674

629

Loss (gain) on disposal of fixed asset, net

3

3

24

Total operating expenses

9,545

11,027

9,606

Operating income

3,528

784

3,083

Other income (expenses):

Loss on extinguishment of debt

(1,310)

—

—

Interest expense, net

(393)

(489)

(223)

Other income

75

96

159

Total other expenses, net

(1,628)

(393)

(64)

Income (loss) before income tax expense (benefit)

1,900

391

3,019

Income tax expense (benefit)

2,330

607

(3,288)

Net (loss) income

$                   (430)

$                   (216)

$                  6,307

Net (loss) income per common share:

Basic

$                  (0.01)

$                  (0.01)

$                    0.17

Diluted

$                  (0.01)

$                  (0.01)

$                    0.17

Weighted-average number of common shares:

Basic

38,724

38,555

37,968

Diluted

38,724

38,555

37,968

 

SMART SAND, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2024

December 31, 2023

(unaudited)

(in thousands)

Assets

Current assets:

Cash and cash equivalents

$                  6,257

$                  6,072

Accounts receivable

26,232

23,231

Unbilled receivables

4,332

2,561

Inventory

25,031

26,823

Prepaid expenses and other current assets

2,929

3,217

Total current assets

64,781

61,904

Property, plant and equipment, net

246,530

255,092

Operating lease right-of-use assets

24,431

23,265

Intangible assets, net

5,480

5,876

Other assets

593

163

Total assets

$              341,815

$              346,300

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$                  9,548

$                16,041

Accrued expenses and other liabilities

12,808

11,024

Deferred revenue

636

1,154

Current portion of long-term debt

5,485

15,711

Current portion of operating lease liabilities

10,593

10,536

Total current liabilities

39,070

54,466

Long-term debt

9,330

3,449

Long-term operating lease liabilities

15,062

14,056

Deferred tax liabilities, net

15,029

12,101

Asset retirement obligations

20,421

19,923

Other non-current liabilities

38

38

Total liabilities

98,950

104,033

Commitments and contingencies

Stockholders’ equity

Common stock

39

39

Treasury stock

(14,471)

(14,249)

Additional paid-in capital

183,492

181,973

Retained earnings

73,893

74,539

Accumulated other comprehensive loss

(88)

(35)

Total stockholders’ equity

242,865

242,267

Total liabilities and stockholders’ equity

$              341,815

$              346,300

 

SMART SAND, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

June 30, 2024

March 31, 2024

June 30, 2023

(unaudited)

(unaudited)

(unaudited)

(in thousands)

Operating activities:

Net (loss) income

$                     (430)

$                     (216)

$                  6,307

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation, depletion and accretion of asset retirement
obligations

7,255

7,241

6,785

Amortization of intangible assets

199

199

199

Loss (gain) on disposal of fixed assets

3

3

24

Amortization of deferred financing cost

27

26

27

Accretion of debt discount

45

47

46

Loss on extinguishment of debt

1,310

—

—

Deferred income taxes

2,331

596

(3,417)

Stock-based compensation

840

642

833

Employee stock purchase plan compensation

6

6

8

Changes in assets and liabilities:

Accounts receivable

6,343

(9,344)

5,982

Unbilled receivables

869

(2,640)

1,027

Inventory

553

1,240

(2,921)

Prepaid expenses and other assets

358

(240)

4,871

Deferred revenue

(1,738)

1,220

444

Accounts payable

(517)

(6,730)

(3,214)

Accrued and other expenses

(2,572)

4,087

(933)

Net cash (used in) provided by operating activities

14,882

(3,863)

16,068

Investing activities:

Purchases of property, plant and equipment

(1,354)

(1,646)

(5,227)

Proceeds from disposal of assets

1

1

72

Net cash used in investing activities

(1,353)

(1,645)

(5,155)

Financing activities:

Proceeds from the issuance of notes payable

9,109

—

—

Repayments of notes payable

(7,564)

(1,340)

(5,937)

Payments under equipment financing obligations

(58)

(56)

(37)

Payment of deferred financing and debt issuance costs

(78)

(425)

—

Proceeds from revolving credit facility

9,000

6,000

1,000

Repayment of revolving credit facility

(21,000)

—

(8,000)

Payment for debt extinguishment costs

(1,227)

—

—

Proceeds from equity issuance

—

25

—

Purchase of treasury stock

(52)

(170)

(51)

Net cash provided by financing activities

(11,870)

4,034

(13,025)

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

1,659

(1,474)

(2,112)

Cash and cash equivalents at beginning of period

4,598

6,072

7,604

Cash and cash equivalents at end of period

$                    6,257

$                    4,598

$                  5,492

Non-GAAP Financial Measures

Contribution Margin

We also use contribution margin, which we define as total revenues less costs of goods sold excluding depreciation, depletion and accretion of asset retirement obligations, to measure its financial and operating performance. Contribution margin excludes other operating expenses and income, including costs not directly associated with the operations of the Company’s business such as accounting, human resources, information technology, legal, sales and other administrative activities. 

We believe that reporting contribution margin and contribution margin per ton sold provides useful performance metrics to management and external users of our financial statements, such as investors and commercial banks, because these metrics provide an operating and financial measure of our ability, as a combined business, to generate margin in excess of our operating cost base.

Gross profit is the GAAP measure most directly comparable to contribution margin. Contribution margin should not be considered an alternative to gross profit presented in accordance with GAAP. Because contribution margin may be defined differently by other companies in the industry, our definition of contribution margin may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of gross profit to contribution margin.

Three Months Ended

June 30, 2024

March 31, 2024

June 30, 2023

(in thousands, except per ton amounts)

Revenue

$                73,800

$                83,052

$                74,776

Cost of goods sold

60,727

71,241

62,087

Gross profit

13,073

11,811

12,689

Depreciation, depletion, and accretion of asset retirement
obligations included in cost of goods sold

6,715

6,697

6,356

Contribution margin

$                19,788

$                18,508

$                19,045

Contribution margin per ton

$                  15.53

$                  13.85

$                  17.57

Total tons sold

1,274

1,336

1,084

EBITDA and Adjusted EBITDA

We define EBITDA as net income, plus: (i) depreciation, depletion and amortization expense; (ii) income tax expense (benefit) and other results of operations based taxes; and (iii) interest expense. We define Adjusted EBITDA as EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued operations; (ii) integration and transition costs associated with specified transactions; (iii) equity compensation; (iv) acquisition and development costs; (v) non-recurring cash charges related to restructuring, retention and other similar actions; (vi) earn-out, contingent consideration obligations; and (vii) non-cash charges and unusual or non-recurring charges. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors and commercial banks, to assess:

the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets;the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;our ability to incur and service debt and fund capital expenditures;our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods or capital structure; andour debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the ABL Credit Facility.

We believe that our presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing our financial condition and results of operations. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternatives to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. The following table presents a reconciliation of net (loss) income to EBITDA and Adjusted EBITDA for each of the periods indicated.

Three Months Ended

June 30, 2024

March 31, 2024

June 30, 2023

(in thousands)

Net (loss) income

$                   (430)

$                   (216)

$                  6,307

Depreciation, depletion and amortization

7,214

7,200

6,750

Income tax expense (benefit) and other taxes

2,330

607

(3,288)

Interest expense

408

496

457

EBITDA

$                  9,522

$                  8,087

$                10,226

Net loss (gain) on disposal of fixed assets

3

3

25

Equity compensation

728

582

802

Acquisition and development costs

—

308

—

Loss on extinguisment of debt

1,310

—

—

Cash charges related to restructuring and retention

41

107

18

Accretion of asset retirement obligations

249

249

235

Adjusted EBITDA

$                11,853

$                  9,336

$                11,306

Free Cash Flow

Free cash flow, which we define as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors and commercial banks, to measure the liquidity of our business.

Net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Free cash flow should not be considered an alternative to net cash provided by operating activities presented in accordance with GAAP. Because free cash flows may be defined differently by other companies in our industry, our definition of free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of net cash provided by (used in) operating activities to free cash flow.

Three Months Ended

June 30, 2024

March 31, 2024

June 30, 2023

(in thousands)

Net cash (used in) provided by operating activities

$                14,882

$                (3,863)

$                16,068

Purchases of property, plant and equipment

(1,354)

(1,646)

(5,227)

Free cash flow

$                13,528

$                (5,509)

$                10,841

Investor Contacts:
Lee Beckelman
Chief Financial Officer
(281) 231-2660
lbeckelman@smartsand.com

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SOURCE Smart Sand, Inc.

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Rachana Shukla, MD, and Vaishalee Shukla, MD Introduce Hybrid Choice™ Concierge Program Through Concierge Choice Physicians

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Helping patients enjoy a more personalized, connected healthcare experience with enhanced physician connectivity and availability

ROCKVILLE CENTRE, N.Y., Nov. 10, 2026 /PRNewswire/ — Rachana Shukla, MD and Vaishalee Shukla, MD, experienced internal medicine physicians serving the Westchester community, are now offering the Hybrid Choice concierge program through Concierge Choice Physicians (CCP). The program is designed to provide patients with enhanced connectivity, more personalized attention, and greater physician availability, helping foster stronger relationships and a more responsive healthcare experience.

Recognizing that many patients value additional time, communication, and support from their physician, the doctors have introduced the CCP Hybrid Choice concierge program as an option for those seeking a more personalized healthcare experience. The program complements their existing practice, allowing all patients to continue receiving care while offering members enhanced physician connectivity, greater availability, and additional conveniences

“For us, the foundation of good medicine has always been the relationship we build with our patients. This program allows us to spend more time with patients, communicate more directly, and provide the type of personalized attention that helps people feel supported, informed, and confident in their healthcare decisions,” said Dr. Rachana Shukla.

Membership benefits include easy-to-secure, extended appointments, direct physician connectivity, enhanced care coordination and medical advocacy, preventive health planning, and a more personalized approach to care. Members also benefit from greater physician availability, continuity of care, and a dedicated support team focused on responsiveness and service.

“We are excited to launch this new program and look forward to welcoming our members,” said Dr. Vaishalee Shukla. “This is an exciting time for our practice, and we can’t wait to begin this new, truly personalized style of medicine.”

The physicians practice at Shukla MD, located at 150 Lockwood Avenue, Suite 30, New Rochelle, NY 10801. The Hybrid Choice program is available for an annual membership fee. For more information or to enroll, contact Concierge Choice Physicians at 877.888.5590.

About Rachana Shukla, MD
Rachana Shukla, MD is an internal medicine physician with over a decade of experience caring for adults in the Westchester community. She started her private practice, Shukla Medical Services PLLC, in 2015 and has been practicing since. She earned her medical degree from Dr. D. Y. Patil Medical College in Navi Mumbai, India, and completed her residency training in Internal Medicine at Sound Shore Medical Center of Westchester, affiliated with New York Medical College. Dr. Shukla combines extensive clinical experience with a strong commitment to preventive care, chronic disease management, and building lasting relationships that support her patients’ long-term health and wellness.

About Vaishalee Shukla, MD
Vaishalee Shukla, MD is a board-certified internal medicine physician who has served patients throughout Westchester County for more than two decades. She received her medical degree and completed her residency training in Internal Medicine at Sound Shore Medical Center of Westchester, affiliated with New York Medical College. Throughout her career, Dr. Shukla has provided care in hospital, outpatient, and community-based settings, bringing a thoughtful, patient-centered approach to preventive medicine, chronic disease management, and personalized primary care.

About Concierge Choice Physicians (CCP)
Dedicated to providing real options for patients and physicians, Concierge Choice Physicians™ is the largest private provider of the full range of concierge programs available today—Hybrid and FullFlex™. The company provides innovative, flexible and affordable models proven to work in medical practices of any size—from solo physicians to large medical practice corporations—both independent and affiliated with hospitals or health systems. Headquartered in Rockville Centre, NY, the company has worked with thousands of physicians in 35 states. For more information, please visit www.ccpmd.com.

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SOURCE Concierge Choice Physicians

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Ares Management Corporation to Present at the TD Cowen 2026 Financials & Fintech Conference

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NEW YORK, Nov. 10, 2026 /PRNewswire/ — Ares Management Corporation announced today that its Chief Financial Officer, Jarrod Phillips, is scheduled to present at the TD Cowen 2026 Financials & Fintech Conference on Wednesday, November 18, 2026, at 3:10pm ET.

A live audio webcast of the presentation will be available on the Investor Resources section of the Company’s website at www.ares.com. For those unable to listen to the live audio webcast, a replay will be available on the Company’s website shortly after the event.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders’ long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2026, Ares Management Corporation’s global platform had approximately $691 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.ares.com.

Investor Relations:
irares@ares.com 

Media:
media@ares.com 

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SOURCE Ares Management Corporation

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TELUS Mental Health Index: Burnout, presenteeism, and youth mental health crisis are negatively impacting Philippine business productivity

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A new nationwide survey reveals 82 percent work unwell at least once a week, nearly half experience burnout, and 77 percent fear career repercussions if they disclose mental health concerns.

Quick Facts:

More than half (55 percent) of workers report that their mental health is negatively affecting work productivityNearly half (48 percent) of Filipino workers routinely end their workday mentally or physically exhausted, with younger workers (under 40) twice as likely as older peers to report constant stressWorkers feeling mentally and/or physically exhausted lose 49.5 productivity days per year, directly affecting workplace productivityEighty-two percent of employees report working while mentally or physically unwell at least once a weekMore than half (54 percent) of workers lack emergency savings to cover basic needsAlmost eight in 10 workers (77 percent) fear career damage if they disclose mental health issues, driving a culture of hidden strain and unaddressed risk

MANILA, Philippines, Nov. 11, 2026 /PRNewswire/ — Today, TELUS Health – a global digital health and workforce wellbeing company – released its first Philippines-focused TELUS Mental Health Index (“the Index”). The report reveals that burnout, exhaustion, and presenteeism have escalated into productivity risks across the Philippines, as stigma makes workforce mental health and wellbeing a critical business imperative for organizations.

The Index is based on an independent, nationally representative survey of 2,000 employed adults across diverse sectors, regions, and demographics of the general Philippine workforce. The research evaluates workforce wellbeing on a 0–100 scale, where higher scores reflect better mental health and lower risk. Scores are categorized across optimal (80–100), strained (50–79), and distressed (0–49) ranges. Overall, the Philippine national benchmark score sits at 61.6, indicating widespread strain among workers in the country.

According to the Index, unaddressed employee strain directly impairs national economic performance, with 55 percent of workers reporting that mental health challenges actively undermine their daily productivity.

Compounded by financial stress where half of the workforce (50 percent) report personal finances as the primary source of personal stress, more than half (54 percent) lack emergency savings to cover basic needs and employees are increasingly turning up to work while unwell. Eighty-two percent report experiencing “presenteeism”, also known as working while functioning below their capacity as a result of being unwell, at least one day per week. Workers reporting feeling mentally or physically exhausted at the end of their workday costs organizations up to 49.5 days in lost productivity.

Workplace stigma is a key barrier to address wellbeing in the workplace, as 77 percent of employees fear disclosing mental health challenges due to potential career repercussions, forcing Filipino workers to suffer in silence while organizations absorb the hidden costs of reduced performance and employee turnover.

“Presenteeism is a costly hidden expense for Philippine businesses today, as 82 percent of employees report working while unwell at least once a week and the impact on operational output should not be ignored,” said Paula Allen, Global Leader of Research and Insights, TELUS Health. “Stigma is a factor in this and it’s damaging in two ways. Firstly, stigma makes people feel the need to hide, which drains their energy. Secondly, it prevents people from seeking necessary help, including confidential health support. This crisis is hitting the younger workforce hardest, with workers under 40 being twice as likely to feel under constant stress and 70 percent more likely to end their day completely exhausted. When young employees push through physical and mental strain without proper support, companies burn out the future leaders driving their organizations.”

This report reveals distinct vulnerabilities across age groups, financial obligations, and regional populations:

Younger workers feel the pressure: Workers under 40 are twice as likely as those over 50 to feel under constant stress and twice as likely to cite mental health as their primary personal stressor. Workers under 40 are twice as likely as workers over 50 to report a lack of work-life balance as a source of work stress and 70 percent more likely than those over 50 to end their workday feeling mentally or physically exhausted.Financial stress is driving mental health strain: Everyday financial obligations have created a persistent state of strain across the workforce, with 41 percent of workers reporting they feel under constant stress. Workers without emergency savings continue to experience a lower mental health score (55.5) than the overall group (61.6). This financial pressure takes a toll on productivity and wellbeing, as workers stressed about money lose 44.6 working days annually.Climate impact on mental health: Environmental factors heavily affect regional gaps as 24 percent of workers report losing income due to climate disaster-related work stoppages, and 14 percent report difficulty working remotely due to power outages or connectivity failures during natural disasters.

The cultural stigma remains as managers are unequipped to support workforce wellbeing

The cultural stigma around disclosing mental health is a major barrier to receiving support. Seventy-seven percent of workers report they would be concerned about their career options if their workplace was aware of a mental health issue. Deep-seated self-stigma is also on the rise, with 63 percent of workers admitting they would feel negatively about themselves if they experienced a mental health issue.

“Workplace culture and cultural stigma are barriers to workforce wellbeing in the Philippines,” said Jamie MacLennan, Region Head, Asia-Pacific, TELUS Health. “More than three-quarters of employees fear their career progression will be impacted by disclosing mental health challenges and this silent suffering is costing companies in lost productivity. People leaders don’t feel equipped to handle wellbeing conversations, so businesses have a responsibility to support managers with proper training to address workplace stigma and ensure accessible, judgment-free support systems for every employee.”

More than half of Filipino workers (52 percent) report that cost is the top barrier to seeking professional mental health support. The second biggest barrier is a lack of guidance on what type of care is best (32 percent), followed by where to find care (29 percent). Closing communication gaps, training leadership with structured facilitated training, and delivering accessible mental health and wellbeing programs are essential steps for employers aiming to reduce organizational risk and support sustainable performance.

This TELUS Mental Health Index includes insights related to anxiety and isolation, highlighting the critical importance of human connection and community support. Checking in with others and giving back to our communities can significantly boost mental wellbeing. As a company rooted in social purpose, TELUS Health is committed to improving health outcomes and fostering community connections. Read the full Philippines TELUS Mental Health Index here.

About the TELUS Mental Health Index research methodology

Data for this report was collected through an online survey of 2,000 people living in the Philippines who are currently employed or were employed within the last six months. This is not an internal survey of TELUS or TELUS Digital team members. Participants are selected to represent the age, gender, industry, and geographic distribution in the Philippines, with survey responses gathered between July 24 and August 5, 2026.

The TELUS Mental Health Index is based on a response scoring system that turns individual responses into point values. Higher point values are associated with better mental health and less mental health risk. Benchmark scores out of 100 represent optimal (80–100), strained (50–79), and distressed (0–49) mental health categories.

Frequently Asked Questions

What is the primary source of stress for workers in the Philippines?

Fifty percent of workers cite personal finances as their primary source of personal stress. This financial pressure directly impacts workforce performance, causing stressed employees to lose an average of 44.6 working days per year in productivity. An additional 10 percent cite broader economic conditions such as the cost of living as their leading stressor.

How many Philippine employees lack emergency savings for basic needs?

More than half (54 percent) of workers lack emergency savings to cover basic needs. Workers without emergency savings continue to experience a lower mental health score (55.5) than the overall group (61.6).

What percentage of Philippine workers suffer from workplace burnout and fatigue?

Forty-eight percent of workers often end their workday feeling mentally and/or physically exhausted. Exhausted employees lose 49.5 productivity days per year—nearly 20 full working days more than non-exhausted peers. Workers under 40 are 70 percent more likely than those over 50 to experience end-of-day exhaustion.

Does mental health stigma affect career advancement in the Philippines workforce?

Seventy-seven percent of workers would be concerned that their career options would be limited if they had a mental health issue that their workplace was aware of. This fear of professional fallout is accompanied by high self-stigma, as 63 percent report they would feel negatively about themselves if they experienced mental health challenges.

What is presenteeism and how much does it cost Philippine employers?

Presenteeism is the practice of working while feeling mentally or physically unwell, reported by 82 percent of Filipino employees at least one day per week. Workers who never work while unwell lose only 17.3 days of productivity per year, whereas employees working while unwell 4 to 5 days a week lose between 64 and 71 working days annually per person. The loss in working days translates to a significant financial loss for businesses, highlighting the commercial imperative to address mental health issues.

What can support Philippine workers to get mental health support?

Employee Assistance Programs provide confidential, professional mental health support at no cost to the worker. The support given is personalized to the individual’s needs. It is also available every hour of every day, which enables immediate intervention for crisis situations. When well communicated in a workplace, the value is significant. Cost is the primary barrier for 52 percent of workers, while 42 percent report that their manager has never communicated the availability of employer health and wellbeing programs. Additionally, 32 percent do not know what type of care is best for them, and 29 percent refrain from seeking support due to fear of social judgment.

How do natural disasters and typhoons impact workplace productivity in the Philippines?

Nearly eight in 10 workers report a direct impact on their work performance due to recent natural disasters. Specifically, 24 percent lost income due to work stoppages, 16 percent were unable to commute, and 14 percent experienced remote work disruptions from power and internet outages. Workers experiencing disaster-related emotional distress lose an average of 54.8 working days per year. The critical incident support offered through and EAP addresses the major upheaval that these situations create, and supports workers with the skills and confidence to manage through difficulty. 

How does TELUS Health support the wellbeing of its own workforce?

Team member wellbeing is foundational to our culture, and we lead by example through comprehensive physical, psychological, and financial support systems. Our team members and their eligible family members have access to confidential counseling and mental health services through our Employee Assistance Program (EAP), alongside digital health platforms and mental health support. TELUS actively invests in specialized leadership training to ensure managers are equipped to recognize burnout, champion psychological safety, and ensure team members can access support without fear of career repercussions.

About TELUS Health
TELUS Health is a global technology leader advancing health data infrastructure and workforce wellbeing. Across healthcare systems, we build interoperable digital technology uniting electronic medical records, pharmacy management platforms, and virtual care so vital health information flows securely across the entire ecosystem. For organizations, we deliver comprehensive, life-stage support that integrates physical, mental, and financial wellbeing. By connecting care systems and empowering workforces, TELUS Health drives better health outcomes for individuals, organizations, governments and healthcare providers worldwide. For more information, visit telushealth.com. 

Media Contact:
Kaya Arai
TELUS Health Public Relations
kaya.arai@telus.com 

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/telus-mental-health-index-burnout-presenteeism-and-youth-mental-health-crisis-are-negatively-impacting-philippine-business-productivity-302934762.html

SOURCE TELUS Health; TELUS Communications Inc.

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