Fairmount Santrol Holdings Inc. (FMSA) saw its loss narrow to $19.90 million, or $0.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $90.83 million, or $0.56 a share.
Revenue during the quarter grew 4.14 percent to $140.53 million from $134.95 million in the previous year period. Gross margin for the quarter expanded 126 basis points over the previous year period to 20.13 percent. Operating margin for the quarter stood at negative 7.33 percent as compared to a negative 65.76 percent for the previous year period.
Operating loss for the quarter was $10.30 million, compared with an operating loss of $88.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.71 million compared with $4.69 million in the prior year period. At the same time, adjusted EBITDA margin improved 486 basis points in the quarter to 8.33 percent from 3.47 percent in the last year period.
"Market conditions improved in the fourth quarter, and we were pleased to see volume growth continue in our Proppant Solutions segment. We were particularly encouraged by the increase in demand for our value-added coated products," said Jenniffer Deckard, president and chief executive officer. "Another positive trend was our ability to sustain price increases both in the fourth quarter of 2016 and at the beginning of 2017. Yet we believe proppant pricing remains at unsustainably low levels. As demand increases to more closely align with supply, particularly for finer grades, we expect to continue to raise prices."
Operating cash flow turns negative
Fairmount Santrol Holdings Inc. has spent $6.59 million cash to meet operating activities during the year as against cash inflow of $235.99 million in the last year.
The company has spent $26.21 million cash to meet investing activities during the year as against cash outgo of $114 million in the last year.
Cash flow from financing activities was $54.89 million for the year as against cash outgo of $25.09 million in the last year period.
Cash and cash equivalents stood at $194.07 million as on Dec. 31, 2016, up 13.17 percent or $22.58 million from $171.49 million on Dec. 31, 2015.
Working capital increases marginally
Fairmount Santrol Holdings Inc. has recorded an increase in the working capital over the last year. It stood at $279.65 million as at Dec. 31, 2016, up 2.06 percent or $5.65 million from $274 million on Dec. 31, 2015. Current ratio was at 4.77 as on Dec. 31, 2016, up from 4.20 on Dec. 31, 2015.
Debt comes down significantly
Fairmount Santrol Holdings Inc. has recorded a decline in total debt over the last one year. It stood at $843.01 million as on Dec. 31, 2016, down 31.08 percent or $380.09 million from $1,223.11 million on Dec. 31, 2015. Total debt was 70.08 percent of total assets as on Dec. 31, 2016, compared with 89.35 percent on Dec. 31, 2015.
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