Fairmount Santrol (NYSE:FMSA), a leading provider of
high-performance sand and sand-based product solutions, today
announced results for the third quarter ended September 30, 2017.
Third-Quarter 2017 Results
Third-quarter 2017 revenues were $280.1 million, up 20% from
$233.2 million in the second quarter of 2017 and up 108% from
$134.8 million in the third quarter of 2016. Total Company volumes
sold were 3.4 million tons for the quarter, up 5% from 3.3 million
tons sold in the second quarter of 2017 and an increase of 42% from
2.4 million tons in the third quarter of 2016.
For third-quarter 2017, the Company had net income of $34.9
million, or $0.15 per diluted share, compared with net income of
$10.5 million, or $0.05 per diluted share, in the second quarter of
2017. Net loss for third-quarter 2016 was $20.6 million, or $(0.11)
per diluted share.
Adjusted EBITDA for the third quarter of 2017 was $72.4 million,
which excludes non-cash stock compensation expense of $2.4 million.
Second-quarter 2017 Adjusted EBITDA was $47.0 million, and excluded
non-cash stock compensation expense of $2.8 million and $0.4
million from the write-off of deferred financing fees, but included
$1.5 million in costs related to plant start-ups and $3.2 million
of freight charges to move railcars into the Company’s active
fleet. The Adjusted EBITDA loss for the third quarter of 2016 was
$4.9 million, and excluded the impact from non-cash stock
compensation expense of $1.8 million, but included $9.8 million in
fees related to railcar renegotiations.
“Our team successfully leveraged our strengths to capitalize on
improving market conditions in the third quarter, resulting in
strong profitability growth,” said Jenniffer Deckard, President and
Chief Executive Officer. “We continued to relentlessly
implement efficiency initiatives to both maximize the utilization
of our asset base and to minimize costs. We remain focused on
short-term execution, while also prioritizing key strategic
investments such as the building out of our Kermit, Texas, facility
and enhancing our logistics network. This dual focus will
position us to meet varied and growing demand while further
improving our long-term value proposition to both customers and
shareholders.”
Business Segments
Proppant Solutions Segment
For the third quarter of 2017, Proppant Solutions volumes were
2.8 million tons, an increase of 9% compared with the second
quarter of 2017 and a 61% increase compared with the prior-year
period. Raw proppant sand volumes were 2.6 million tons, a 9%
sequential increase and a 58% increase compared with the same
period a year ago. Coated proppant volumes were 215,000 tons, an
11% increase compared with the second quarter of 2017 and a 118,000
ton increase from the prior-year period.
Proppant Solutions revenues were $249.8 million in third-quarter
2017, a 26% increase compared with $198.8 million in the second
quarter of 2017 and an increase of over $146 million compared with
$103.1 million in the third quarter of 2016. Proppant Solutions
revenues were favorably impacted by higher volumes and pricing, as
well as growth in value-added proppant sales. Average raw proppant
sand pricing in third-quarter 2017 increased more than $7 per ton
compared with average pricing in second-quarter 2017, based on a
consistent mix of product, grade and distribution channel
sales.
Proppant Solutions gross profit increased to $85.1 million, or
over $30 per ton in the third quarter of 2017, compared with $54.4
million, or $21 per ton, in the second quarter of 2017.
Second-quarter 2017 Proppant Solutions gross profit includes $1.5
million of costs related to plant start-ups and $3.2 million of
freight charges to move stored railcars to the Company’s active
fleet. The sequential improvement in Proppant Solutions gross
profit is due to higher pricing and greater volumes coupled with an
improved cost position, as the newly activated plants were more
fully utilized and the Company had significantly lower costs from
excess railcar storage and associated one-time freight charges.
Gross profit for the segment in the third quarter of 2016 was $6.4
million.
Industrial and Recreational Products Segment
Industrial and Recreational volumes were 615,000 tons in
third-quarter 2017, down 8% from the prior-year third quarter,
driven by a shift of certain seasonal sales into the second quarter
of 2017 and a slight decline in lower-margin raw sand sales over
prior-year levels. Year-to-date volumes in the segment through the
third quarter of 2017 were 1.9 million tons, roughly flat with
year-to-date 2016 levels due to increased growth in higher-margin
product sales that offset a decline in volumes.
Revenues for the segment were $30.3 million in third-quarter
2017, a 4% decrease from $31.6 million for third-quarter 2016. The
decrease in revenue from third-quarter 2016 was primarily due to
lower volumes in sales of raw sand, offset by greater sales of
higher-margin products and higher pricing versus the prior-year
period. Year-to-date, Industrial and Recreational revenues were
$96.3 million, a 5% increase from $91.8 million for the comparable
2016 period.
In the third quarter of 2017, Industrial and Recreational gross
profit was $14.4 million, or 47% of sales, compared with $13.5
million, or 43% of sales, in the third quarter of 2016. On a
year-to-date basis, gross profit for the Industrial and
Recreational Segment was $43.6 million, or 45% of sales, which
represents 16% growth over year-to-date 2016 gross profit of $37.6
million. This segment continues to deliver year-over-year
improvement in gross margin as a result of higher pricing,
reductions in per ton operating costs, and a continued mix shift
toward higher-margin products.
Balance Sheet and Other Information
Through the first nine months of 2017, net cash generated by
operating activities was $107.5 million, largely due to higher
profitability over the period, offset somewhat by an increase in
cash used for working capital as a result of increased sales. Net
cash used in financing activities in the nine months ended
September 30, 2017 was $60.5 million, primarily the result of the
second-quarter debt prepayment of $50 million and the recurring
scheduled debt service payments. Cash used in investing activities
for the nine months ended September 30, 2017 was $53.6 million. In
the third quarter, the Company paid the first leasehold interest
installment of $20 million that was due for the mineral reserves on
the Kermit property. Capital expenditures in the third quarter were
$22.2 million, including stripping, maintenance and growth capital,
and approximately $8.5 million spent on the new Kermit
facility.
As of September 30, 2017, cash and cash equivalents totaled
$188.3 million, and total debt was $794.5 million, resulting in net
debt of $606.2 million. The Company recently announced a new $700
million Term Loan B maturing in 2022 and a $125 million asset-based
revolving credit facility that expires in 2022, which replace its
prior term loan and revolving credit facilities. As part of this
refinancing, the Company also used existing cash to repay a portion
of its long-term debt.
“The recent debt refinancing is another positive step in our
measured approach to improve our capital structure and will provide
us with additional liquidity and flexibility,” said Michael Biehl,
Executive Vice President and Chief Financial Officer. “Reducing
total debt levels remains a top priority for Fairmount Santrol, as
evidenced by the debt prepayment we made earlier in the year and as
part of the recent refinancing.”
Use of Certain GAAP and Non-GAAP Financial
Measures
The Company defines EBITDA as net income before interest
expense, income tax expense, depreciation, depletion and
amortization. Adjusted EBITDA is defined as EBITDA before non-cash
stock-based compensation, asset impairments, and certain other
income or expenses. The Company believes EBITDA and Adjusted EBITDA
are useful because they allow management to more effectively
evaluate our operational performance and compare the results of our
operations from period to period without regard to our financing
costs or capital structure.
Conference Call
Fairmount Santrol will host a conference call and live webcast
for analysts and investors today, November 2, 2017, at 10 a.m.
Eastern Time to discuss the Company’s 2017 third-quarter financial
results. Investors are invited to listen to a live audio webcast of
the conference call, which will be accessible on the Investor
Relations section of the Company’s website. To access the live
webcast, please log in 15 minutes prior to the start of the call to
download and install any necessary audio software. An archived
replay of the call will also be available on the website following
the call. The call can also be accessed live by dialing (833)
287-7902 or, for international callers, (647) 689-4466. The
conference ID for the call is 95267930. A replay will be available
shortly after the call and can be accessed by dialing (800)
585-8367 or (416) 621-4642. The passcode for the replay is
95267930. The replay of the call will be available through November
9, 2017.
About Fairmount Santrol
Fairmount Santrol is a leading provider of high-performance sand
and sand-based product solutions used by oil and gas exploration
and production companies to enhance the productivity of their
wells. The Company also provides high-quality products, strong
technical leadership and applications knowledge to end users in the
foundry, building products, water filtration, glass, and sports and
recreation markets. Its expansive logistics capabilities include a
wide-ranging network of distribution terminals and railcars that
allow the Company to effectively serve customers wherever they
operate. As one of the nation’s longest continuously operating
mining organizations, Fairmount Santrol has developed a strong
commitment to all three pillars of sustainable development, People,
Planet and Prosperity. Correspondingly, the Company’s motto and
action orientation is: “Do Good. Do Well.” For more information,
visit FairmountSantrol.com.
Forward-Looking Statements Certain statements
contained in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements represent the
Company’s expectations or beliefs concerning future events, and it
is possible that the results described in this press release will
not be achieved. These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside
of the Company’s control that could cause actual results to differ
materially from the results discussed in the forward-looking
statements. These factors include: changes in prevailing economic
conditions, including continuing pressure on and fluctuations in
demand for, and pricing of, our products; loss of, or reduction in
business from the Company’s largest customers or their failure to
pay the Company; possible adverse effects of being leveraged,
including interest rate, event of default or refinancing risks, as
well as potentially limiting the Company’s ability to invest in
certain market opportunities; the level of cash flows generated to
provide adequate liquidity; our ability to successfully develop and
market new products, including Propel SSP® and related products;
our rights and ability to mine our property and our renewal or
receipt of the required permits and approvals from government
authorities and other third parties; our ability to implement and
realize efficiencies from capacity expansion plans, facility
reactivation and cost reduction initiatives within our time and
budgetary parameters; increasing costs or a lack of dependability
or availability of transportation services or infrastructure and
geographic shifts in demand; changing legislative and regulatory
initiatives relating to our business, including environmental,
mining, health and safety, licensing, reclamation and other
regulation relating to hydraulic fracturing (and changes in their
enforcement and interpretation); silica-related health issues and
corresponding litigation; seasonal and severe weather conditions;
and other operating risks that are beyond our control.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in
Fairmount Santrol Holdings Inc.’s filings with the Securities and
Exchange Commission (“SEC”). The risk factors and other factors
noted in our filings with the SEC could cause our actual results to
differ materially from those contained in any forward-looking
statement.
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Fairmount
Santrol |
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|
|
|
Condensed
Consolidated Statements of Income (Loss) |
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(unaudited) |
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
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|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
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|
|
|
|
|
|
|
|
|
|
|
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|
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|
(in thousands, except per share
amounts) |
|
(in thousands, except per share
amounts) |
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|
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|
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|
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|
|
|
|
Revenues |
|
$ |
280,050 |
|
|
$ |
134,775 |
|
|
$ |
685,859 |
|
|
$ |
394,482 |
|
|
|
Cost of goods
sold (excluding depreciation, depletion, and amortization shown
separately) |
|
|
180,582 |
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|
|
114,873 |
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|
|
475,470 |
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|
347,466 |
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Operating expenses |
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Selling,
general and administrative expenses(A) |
|
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31,105 |
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|
17,242 |
|
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|
79,438 |
|
|
|
60,560 |
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|
|
Depreciation, depletion and amortization expense |
|
|
20,174 |
|
|
|
17,759 |
|
|
|
59,462 |
|
|
|
54,401 |
|
|
|
Asset
impairments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
90,654 |
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Restructuring charges |
|
|
- |
|
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|
- |
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|
|
- |
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|
1,155 |
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Other
operating expense (income) |
|
|
(1,594 |
) |
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|
9,362 |
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|
|
(2,299 |
) |
|
|
9,266 |
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|
|
Income
(loss) from operations |
|
|
49,783 |
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|
|
(24,461 |
) |
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|
73,788 |
|
|
|
(169,020 |
) |
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|
|
|
|
|
|
|
|
|
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Interest expense,
net |
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|
12,110 |
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|
|
16,175 |
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|
37,630 |
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|
|
50,043 |
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|
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Other non-operating
income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5 |
) |
|
|
Income
(loss) before provision (benefit) for income taxes |
|
|
37,673 |
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|
|
(40,636 |
) |
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|
36,158 |
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|
|
(219,058 |
) |
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|
|
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|
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|
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Provision (benefit) for
income taxes |
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|
2,754 |
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(20,013 |
) |
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|
2,126 |
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|
|
(98,786 |
) |
|
|
Net income (loss) |
|
|
34,919 |
|
|
|
(20,623 |
) |
|
|
34,032 |
|
|
|
(120,272 |
) |
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|
Less: Net income (loss)
attributable to the non-controlling interest |
|
|
(25 |
) |
|
|
2 |
|
|
|
193 |
|
|
|
15 |
|
|
|
Net income (loss) attributable to Fairmount Santrol
Holdings Inc. |
|
$ |
34,944 |
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|
$ |
(20,625 |
) |
|
$ |
33,839 |
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|
$ |
(120,287 |
) |
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Earnings (loss) per
share |
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Basic |
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$ |
0.16 |
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$ |
(0.11 |
) |
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$ |
0.15 |
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|
$ |
(0.71 |
) |
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|
Diluted |
|
$ |
0.15 |
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$ |
(0.11 |
) |
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$ |
0.15 |
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$ |
(0.71 |
) |
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Weighted average number
of shares outstanding |
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Basic |
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224,082 |
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|
|
183,620 |
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|
|
223,947 |
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|
|
168,904 |
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Diluted |
|
|
226,400 |
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|
|
183,620 |
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|
|
229,304 |
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|
|
168,904 |
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|
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|
|
|
|
|
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(A) -
Stock compensation expense of $2,402 and $1,799 for the three
months ended September 30, 2017 and 2016, respectively, and $7,582
and $7,366 for the nine months ended September 30, 2017 and 2016,
respectively, are included within selling, general, and
administrative expenses. |
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Fairmount
Santrol |
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Condensed
Consolidated Statements of Cash Flows |
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(unaudited) |
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Nine Months Ended September 30, |
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|
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2017 |
|
2016 |
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(in thousands) |
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|
|
|
|
|
|
Net income (loss) |
|
$ |
34,032 |
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|
$ |
(120,272 |
) |
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities: |
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Depreciation and depletion |
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53,638 |
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|
50,891 |
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Amortization |
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|
9,508 |
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|
8,471 |
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Reserve
for doubtful accounts |
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|
(421 |
) |
|
|
2,645 |
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Write-off
of deferred financing costs |
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|
389 |
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|
- |
|
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Asset
impairments |
|
|
- |
|
|
|
90,654 |
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Inventory
write-downs and reserves |
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|
1,266 |
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|
10,302 |
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(Gain)
loss on disposal of fixed assets |
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(404 |
) |
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|
315 |
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Deferred
income taxes and taxes payable |
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|
3,965 |
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|
(80,248 |
) |
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Stock
compensation expense |
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|
7,582 |
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|
7,366 |
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Change in
operating assets and liabilities: |
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|
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Accounts
receivable |
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|
(75,707 |
) |
|
|
(5,035 |
) |
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Inventories |
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|
(16,920 |
) |
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|
7,039 |
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Prepaid
expenses and other assets |
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|
(2,745 |
) |
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|
1,873 |
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|
Refundable income taxes |
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|
20,255 |
|
|
|
5,922 |
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|
Accounts
payable |
|
|
20,659 |
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|
|
4,723 |
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|
Accrued
expenses and deferred revenue |
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|
52,373 |
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|
|
3,875 |
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|
Net cash provided by (used in) operating
activities |
|
|
107,470 |
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|
|
(11,479 |
) |
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Cash flows from
investing activities |
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|
|
|
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Proceeds
from sale of fixed assets |
|
|
3,124 |
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|
|
5,630 |
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|
Capital
expenditures and stripping costs |
|
|
(36,470 |
) |
|
|
(28,712 |
) |
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Leasehold
interest payments for sand reserves |
|
|
(20,000 |
) |
|
|
- |
|
|
Earnout
payments |
|
|
(250 |
) |
|
|
(1,631 |
) |
|
Net cash used in investing activities |
|
|
(53,596 |
) |
|
|
(24,713 |
) |
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|
|
|
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|
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Cash flows from
financing activities |
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|
|
|
|
Payments
on long-term debt |
|
|
(6,469 |
) |
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|
(8,670 |
) |
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Prepayments on term loans |
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|
(50,000 |
) |
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|
(69,580 |
) |
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Payments
on capital leases and other long-term debt |
|
|
(3,491 |
) |
|
|
(5,067 |
) |
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Proceeds
from option exercises |
|
|
563 |
|
|
|
3,950 |
|
|
Proceeds
from primary stock offering |
|
|
- |
|
|
|
161,862 |
|
|
Tax
payments for withholdings on share-based awards exercised or
distributed |
|
|
(1,097 |
) |
|
|
(3,650 |
) |
|
Tax
effect of stock options exercised, forfeited, or expired |
|
|
- |
|
|
|
(1,051 |
) |
|
Transactions with non-controlling interest |
|
|
40 |
|
|
|
(551 |
) |
|
Net cash provided by (used in) financing
activities |
|
|
(60,454 |
) |
|
|
77,243 |
|
|
|
|
|
|
|
|
Change in
cash and cash equivalents related to assets classified as
held-for-sale |
|
|
- |
|
|
|
1,376 |
|
|
Foreign
currency adjustment |
|
|
768 |
|
|
|
(479 |
) |
|
Increase (decrease) in cash and cash
equivalents |
|
|
(5,812 |
) |
|
|
41,948 |
|
|
|
|
|
|
|
|
Cash and cash
equivalents: |
|
|
|
|
|
Beginning of period |
|
|
194,069 |
|
|
|
171,486 |
|
|
End of period |
|
$ |
188,257 |
|
|
$ |
213,434 |
|
|
|
|
|
|
|
|
|
|
|
Fairmount
Santrol |
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
(unaudited) |
|
|
|
|
September 30, 2017 |
|
December 31, 2016 |
|
|
|
(in thousands) |
Assets |
|
|
|
Current assets |
|
|
|
Cash and
cash equivalents |
$ |
188,257 |
|
|
$ |
194,069 |
|
Accounts
receivable, net |
|
155,070 |
|
|
|
78,942 |
|
Inventories, net |
|
68,304 |
|
|
|
52,650 |
|
Prepaid
expenses and other assets |
|
6,843 |
|
|
|
7,065 |
|
Refundable income taxes |
|
823 |
|
|
|
21,077 |
|
Total
current assets |
|
419,297 |
|
|
|
353,803 |
|
|
|
|
|
Property,
plant and equipment, net |
|
767,408 |
|
|
|
727,735 |
|
Deferred
income taxes |
|
1,244 |
|
|
|
1,244 |
|
Goodwill |
|
15,301 |
|
|
|
15,301 |
|
Intangibles, net |
|
95,234 |
|
|
|
95,341 |
|
Other
assets |
|
7,740 |
|
|
|
9,486 |
|
Total assets |
$ |
1,306,224 |
|
|
$ |
1,202,910 |
|
|
|
|
|
Liabilities and
Equity |
|
|
|
Current
liabilities |
|
|
|
Current
portion of long-term debt |
$ |
11,772 |
|
|
$ |
10,707 |
|
Accounts
payable |
|
69,173 |
|
|
|
37,263 |
|
Accrued
expenses and deferred revenue |
|
85,660 |
|
|
|
26,185 |
|
Total
current liabilities |
|
166,605 |
|
|
|
74,155 |
|
|
|
|
|
Long-term
debt |
|
782,735 |
|
|
|
832,306 |
|
Deferred
income taxes |
|
10,728 |
|
|
|
7,057 |
|
Other
long-term liabilities |
|
50,300 |
|
|
|
38,272 |
|
Total
liabilities |
|
1,010,368 |
|
|
|
951,790 |
|
|
|
|
|
Equity |
|
|
|
Common
stock |
|
2,423 |
|
|
|
2,422 |
|
Additional paid-in capital |
|
300,281 |
|
|
|
297,649 |
|
Retained
earnings |
|
298,258 |
|
|
|
264,852 |
|
Accumulated other comprehensive loss |
|
(16,750 |
) |
|
|
(19,002 |
) |
Treasury
stock at cost |
|
(288,662 |
) |
|
|
(294,874 |
) |
Non-controlling interest |
|
306 |
|
|
|
73 |
|
Total
equity |
|
295,856 |
|
|
|
251,120 |
|
Total liabilities and equity |
$ |
1,306,224 |
|
|
$ |
1,202,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fairmount
Santrol |
|
|
|
|
|
|
|
|
|
|
|
Segment
Reports |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
Three Months EndedJune 30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except volume
amounts) |
|
(in thousands, except volume
amounts) |
|
(in thousands, except volume
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(tons) |
|
|
|
|
|
|
|
|
|
|
|
Proppant
Solutions |
|
|
|
|
|
|
|
|
|
|
|
Raw
sand |
|
|
2,616,649 |
|
|
1,657,799 |
|
|
6,931,129 |
|
|
4,301,124 |
|
|
2,393,647 |
|
Coated
proppant |
|
|
214,882 |
|
|
96,532 |
|
|
569,622 |
|
|
269,062 |
|
|
193,242 |
|
Total
Proppant Solutions |
|
|
2,831,531 |
|
|
1,754,331 |
|
|
7,500,751 |
|
|
4,570,186 |
|
|
2,586,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial & Recreational Products |
|
|
614,738 |
|
|
668,333 |
|
|
1,896,947 |
|
|
1,916,755 |
|
|
686,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total volumes |
|
|
3,446,269 |
|
|
2,422,664 |
|
|
9,397,698 |
|
|
6,486,941 |
|
|
3,273,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Proppant
Solutions |
|
$ |
249,751 |
|
$ |
103,140 |
|
$ |
589,556 |
|
$ |
302,705 |
|
$ |
198,812 |
|
Industrial & Recreational Products |
|
|
30,299 |
|
|
31,635 |
|
|
96,303 |
|
|
91,777 |
|
|
34,414 |
|
Total
revenues |
|
|
280,050 |
|
|
134,775 |
|
|
685,859 |
|
|
394,482 |
|
|
233,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross
profit |
|
|
|
|
|
|
|
|
|
|
|
Proppant
Solutions |
|
|
85,101 |
|
|
6,356 |
|
|
166,820 |
|
|
9,419 |
|
|
54,373 |
|
Industrial & Recreational Products |
|
|
14,367 |
|
|
13,546 |
|
|
43,569 |
|
|
37,597 |
|
|
15,717 |
|
Total
segment gross profit |
|
|
99,468 |
|
|
19,902 |
|
|
210,389 |
|
|
47,016 |
|
|
70,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fairmount
Santrol |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures |
|
|
|
|
|
|
|
|
|
Three Months EndedJune
30, |
|
(unaudited) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Fairmount Santrol
Holdings Inc. |
|
$ |
34,944 |
|
$ |
(20,625 |
) |
|
$ |
33,839 |
|
$ |
(120,287 |
) |
|
$ |
10,483 |
|
Interest
expense, net |
|
|
12,110 |
|
|
16,175 |
|
|
|
37,630 |
|
|
50,043 |
|
|
|
12,983 |
|
Provision
(benefit) for income taxes |
|
|
2,754 |
|
|
(20,013 |
) |
|
|
2,126 |
|
|
(98,786 |
) |
|
|
520 |
|
Depreciation, depletion, and amortization expense |
|
|
20,174 |
|
|
17,759 |
|
|
|
59,462 |
|
|
54,401 |
|
|
|
19,846 |
|
EBITDA |
|
|
69,982 |
|
|
(6,704 |
) |
|
|
133,057 |
|
|
(114,629 |
) |
|
|
43,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock compensation expense(1) |
|
|
2,402 |
|
|
1,799 |
|
|
|
7,582 |
|
|
7,366 |
|
|
|
2,763 |
|
Asset
impairments(2) |
|
|
- |
|
|
- |
|
|
|
- |
|
|
90,654 |
|
|
|
- |
|
Write-off
of deferred financing costs(3) |
|
|
- |
|
|
- |
|
|
|
389 |
|
|
- |
|
|
|
389 |
|
Adjusted EBITDA |
|
$ |
72,384 |
|
$ |
(4,905 |
) |
|
$ |
141,028 |
|
$ |
(16,609 |
) |
|
$ |
46,984 |
|
__________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents the non-cash expense for stock-based awards issued to
our employees and outside directors. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Non-cash charges associated with the impairment of mineral reserves
and other long-lived assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Represents the write-off of deferred financing fees in relation to
term loan prepayment. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor contacts:Indrani
Egleston440-214-3219Indrani.Egleston@fairmountsantrol.com
Matthew
Schlarb440-214-3284Matthew.Schlarb@fairmountsantrol.com
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