Revenue during the quarter dropped 21.16 percent to $134.78 million from $170.95 million in the previous year period. Gross margin for the quarter contracted 821 basis points over the previous year period to 14.77 percent. Operating margin for the quarter stood at negative 18.15 percent as compared to a negative 0.33 percent for the previous year period.

Operating loss for the quarter was $24.46 million, compared with an operating loss of $0.56 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $4.90 million compared with $21.76 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 3.64 percent for the quarter compared to 12.73 percent in the last year period.

"We are encouraged by the early signs of improvement we saw in the proppant market during the third quarter," said Jenniffer Deckard, president and chief executive officer. "Third quarter volumes in our Proppant Solutions segment saw significant increases sequentially and over the prior-year period, as demand strengthened for both our raw frac sand and coated proppants. In addition, we instituted appropriate price increases on certain Northern White sand products late in the third quarter. As market conditions improve, we will continue to evaluate our operational footprint to ensure we are optimally positioned to quickly address upticks in demand and efficiently deliver product to both our Proppant Solutions and Industrial & Recreational customers. The third quarter reopening of our Menomonie facility and the completed expansion of our Wedron facility earlier this year are expected to enable us to meet current demand for Northern White sand, which continues to grow."

The company has spent $24.71 million cash to meet investing activities during the nine month period as against cash outgo of $91.55 million in the last year period.

Cash flow from financing activities was $80.89 million for the nine month period as against cash outgo of $19.13 million in the last year period.

Cash and cash equivalents stood at $213.43 million as on Sep. 30, 2016, up 18.92 percent or $33.95 million from $179.48 million on Sep. 30, 2015.

Working capital decreases marginally
Fairmount Santrol has witnessed a decline in the working capital over the last year. It stood at $284.03 million as at Sep. 30, 2016, down 1.02 percent or $2.92 million from $286.95 million on Sep. 30, 2015. Current ratio was at 4.11 as on Sep. 30, 2016, up from 3.88 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 82 days for the last year period. Days sales outstanding went up to 76 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 21 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 32 for the same period last year.