FAIRMOUNT SANTROL HOLDINGS INC., 10-Q filed on 5/10/2018
Quarterly Report
v3.8.0.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2018
May 08, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Trading Symbol FMSA  
Entity Registrant Name Fairmount Santrol Holdings Inc.  
Entity Central Index Key 0001010858  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock Shares Outstanding   225,117,303
v3.8.0.1
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Income Statement [Abstract]    
Revenues $ 273,338 $ 172,583
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately) 186,078 134,203
Operating expenses    
Selling, general and administrative expenses 27,353 22,470
Depreciation, depletion and amortization expense 17,225 17,246
Other operating income (729) (1,060)
Income (loss) from operations 43,411 (276)
Interest expense 13,783 12,537
Income (loss) before provision (benefit) for income taxes 29,628 (12,813)
Provision (benefit) for income taxes 872 (1,160)
Net income (loss) 28,756 (11,653)
Less: Net income attributable to the non-controlling interest 3 178
Net income (loss) attributable to Fairmount Santrol Holdings Inc. $ 28,753 $ (11,831)
Earnings (loss) per share    
Basic $ 0.13 $ (0.05)
Diluted $ 0.13 $ (0.05)
Weighted average number of shares outstanding    
Basic 224,484 223,739
Diluted 228,940 223,739
v3.8.0.1
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]    
Net income (loss) $ 28,756 $ (11,653)
Other comprehensive income, before tax    
Foreign currency translation 16 (39)
Pension obligations 60 61
Amortization and change in fair value of derivative agreements 1,069 1,613
Total other comprehensive income, before tax 1,145 1,635
Provision for income taxes related to items of other comprehensive income (loss) 538 1,316
Comprehensive income (loss), net of tax 29,363 (11,334)
Comprehensive income attributable to the non-controlling interest 3 178
Comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc. $ 29,360 $ (11,512)
v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Current assets        
Cash and cash equivalents $ 84,768 $ 127,967 $ 210,664 $ 194,069
Accounts receivable, net of allowance for doubtful accounts of $1,237 and $2,003 at March 31, 2018 and December 31, 2017, respectively 179,234 156,916    
Inventories, net 64,895 70,528    
Prepaid expenses and other assets 7,590 7,765    
Total current assets 336,487 363,176    
Property, plant and equipment, net 783,429 756,288    
Deferred income taxes 351 350    
Goodwill 15,301 15,301    
Intangibles, net 92,892 93,268    
Other assets 10,088 7,711    
Total assets 1,238,548 1,236,094    
Current liabilities        
Current portion of long-term debt 18,924 19,189    
Accounts payable 83,852 70,633    
Accrued expenses 41,660 74,007    
Deferred revenue 9,346 5,660    
Total current liabilities 153,782 169,489    
Long-term debt 715,316 729,741    
Deferred income taxes 6,807 2,429    
Other long-term liabilities 36,901 42,189    
Total liabilities 912,806 943,848    
Commitments and contingent liabilities (Note 14)    
Equity        
Preferred stock: $0.01 par value, 100,000 authorized shares Shares outstanding: 0 at March 31, 2018 and December 31, 2017    
Common stock: $0.01 par value, 1,850,000 authorized shares Shares issued: 242,366 at March 31, 2018 and December 31, 2017 Shares outstanding: 224,895 and 224,291 at March 31, 2018 and December 31, 2017, respectively 2,423 2,423    
Additional paid-in capital 294,500 299,912    
Retained earnings 318,912 290,159    
Accumulated other comprehensive loss (14,491) (15,098)    
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock 601,344 577,396    
Less: Treasury stock at cost Shares in treasury: 17,471 and 18,075 at March 31, 2018 and December 31, 2017, respectively (275,975) (285,520)    
Total equity attributable to Fairmount Santrol Holdings Inc. 325,369 291,876    
Non-controlling interest 373 370    
Total equity 325,742 292,246 $ 215,568 $ 223,734
Total liabilities and equity $ 1,238,548 $ 1,236,094    
v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Statement Of Financial Position [Abstract]    
Allowance for doubtful accounts $ 1,237 $ 2,003
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 1,850,000,000 1,850,000,000
Common Stock, Shares, Issued 242,366,000 242,366,000
Common stock, shares outstanding 224,895,000 224,291,000
Shares in treasury 17,471,000 18,075,000
v3.8.0.1
Condensed Consolidated Statements of Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Subtotal [Member]
Non-controlling Interest [Member]
Beginning balances at Dec. 31, 2016 $ 223,734 $ 2,422 $ 297,649 $ 237,466 $ (19,002) $ (294,874) $ 223,661 $ 73
Beginning balances, shares at Dec. 31, 2016   223,601       18,666    
Re-issuance of treasury stock 4,061         $ 4,061 4,061  
Re-issuance of treasury stock, shares   257       (257)    
Share-based awards exercised or distributed (3,575)   (3,575)       (3,575)  
Share-based awards exercised or distributed, shares   81            
Stock compensation expense 3,116   3,116       3,116  
Impact of adoption of ASU 2016-09, net of tax | ASU 2016-09 [Member] (433)     (433)     (433)  
Transactions with non-controlling interest (1)             (1)
Net (loss) income (11,653)     (11,831)     (11,831) 178
Other comprehensive income (loss) 319       319   319  
Ending balances at Mar. 31, 2017 215,568 $ 2,422 297,190 225,202 (18,683) $ (290,813) 215,318 250
Ending balances, shares at Mar. 31, 2017   223,939       18,409    
Beginning balances at Dec. 31, 2016 223,734 $ 2,422 297,649 237,466 (19,002) $ (294,874) 223,661 73
Beginning balances, shares at Dec. 31, 2016   223,601       18,666    
Ending balances at Dec. 31, 2017 292,246 $ 2,423 299,912 290,159 (15,098) $ (285,520) 291,876 370
Ending balances, shares at Dec. 31, 2017   224,291       18,075    
Re-issuance of treasury stock 9,545         $ 9,545 9,545  
Re-issuance of treasury stock, shares   604       (604)    
Share-based awards exercised or distributed (8,832)   (8,832)       (8,832)  
Stock compensation expense 3,420   3,420       3,420  
Net (loss) income 28,756     28,753     28,753 3
Other comprehensive income (loss) 607       607   607  
Ending balances at Mar. 31, 2018 $ 325,742 $ 2,423 $ 294,500 $ 318,912 $ (14,491) $ (275,975) $ 325,369 $ 373
Ending balances, shares at Mar. 31, 2018   224,895       17,471    
v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement Of Cash Flows [Abstract]    
Net income (loss) $ 28,756 $ (11,653)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and depletion 15,198 15,334
Amortization 2,945 3,130
Reserve for doubtful accounts (764) (447)
Gain on disposal of fixed assets (10) (714)
Gain on interest rate swaps (99)
Deferred income taxes and taxes payable 3,578 107
Stock compensation expense 3,420 2,416
Change in operating assets and liabilities:    
Accounts receivable (21,554) (15,956)
Inventories 5,633 (9,038)
Prepaid expenses and other assets (3,120) 867
Accounts payable 5,613 12,981
Accrued expenses (33,431) 9,744
Deferred revenue 3,686 16,969
Net cash provided by operating activities 9,851 23,740
Cash flows from investing activities    
Proceeds from sale of fixed assets 205 957
Capital expenditures and stripping costs (37,823) (4,574)
Net cash used in investing activities (37,618) (3,617)
Cash flows from financing activities    
Payments on term loans (4,375) (2,170)
Payments on capital leases and other long-term debt (1,163) (817)
Payments on revolving credit facility (10,000)  
Proceeds from share-based awards exercised or distributed 713 486
Tax payments for withholdings on share-based awards exercised or distributed (623) (982)
Transactions with non-controlling interest   (1)
Net cash used in financing activities (15,448) (3,484)
Foreign currency adjustment 16 (44)
(Decrease) increase in cash and cash equivalents (43,199) 16,595
Cash and cash equivalents:    
Beginning of period 127,967 194,069
End of period 84,768 210,664
Supplemental disclosure of cash flow information:    
Interest paid, net of capitalized interest 14,853 11,717
Income taxes paid (refunded) 375 (1,601)
Non-cash investing activities:    
Equipment purchased under capital leases   4,175
Decrease in accounts payable for additions to property, plant, and equipment $ (7,606) $ (1,301)
v3.8.0.1
Significant Accounting Policies
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Significant Accounting Policies

1.

Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements of Fairmount Santrol Holdings Inc. and its consolidated subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.  In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (which are of a normal, recurring nature) and disclosures necessary for a fair statement of the financial position, results of operations, comprehensive income, and cash flows of the reported interim periods.  The Condensed Consolidated Balance Sheets as of December 31, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP.  Certain reclassifications of prior year amounts have been made to conform to current year presentation.  Interim results are not necessarily indicative of the results to be expected for the full year or any other interim period.  These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as filed in the 2017 Annual Report on Form 10-K and notes thereto and information included elsewhere in this Quarterly Report on Form 10-Q.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Revisions of Previously-Issued Financial Statements

The Company has revised previously-reported results to properly report stripping costs that were previously capitalized when incurred and amortized in subsequent periods.  Such costs incurred during the production phase of a mine are variable production costs that should be included in the costs of the inventory produced during the period the stripping costs are incurred.  The Company also revised the asset impairment charge for the quarter ended June 30, 2016 to correct its estimated fair value for an impaired mine property included in the determination of the impairment charge.  Additionally, the Company has included in the revised statements of cash flows a previously-omitted disclosure to show increase or decrease in accounts payable for additions to property, plant, and equipment.  The Company assessed the materiality of these misstatements on prior periods’ financial statements and concluded that these misstatements were not material, individually or in aggregate, to any previously-issued financial statements.  Refer to Note 2 for additional information.  

Revenues

The Company derives its revenues by mining, manufacturing, and processing minerals that its customers purchase for various uses.  Revenues are measured by the amount of consideration the Company expects to receive in exchange for transferring its product.  The consideration the Company expects to receive is based on volumes and price of product as defined in the underlying contract.  Depending on the contract, this may include the cost of transportation and may be net of discounts and rebates.  In some instances, revenues also include a separate charge for transportation services the Company provides or arranges for customers.

On January 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606).  The adoption did not require a cumulative adjustment to opening retained earnings and did not have a material impact on revenues for the quarter ended March 31, 2018.  Revenues are recognized as each performance obligation within the contract is satisfied; this occurs with the transfer of control of the Company’s product in accordance with delivery methods as defined in the underlying contract.  Transfer of control to customers generally occurs when products leave the Company’s distribution terminals or, in the case of direct shipments, when products leave the Company’s production facilities, and customers arrange for shipping and handling of product to its final destination.  In those instances in which transfer of control occurs upon delivery to customers, the Company arranges for shipping and handling fees which are recorded as a cost of fulfillment.  Transportation costs to move product from the Company’s production facilities to its storage terminals are borne by the Company and capitalized into inventory.  These costs are included in cost of sales as the products are sold.  The Company’s contracts may include one or multiple distinct performance obligations.  Revenues are assigned to each performance obligation based on its relative standalone selling price, which is generally the contractually-stated price.  Refer to Note 18 for further details.

Accounts Receivable – Contract Balances

Accounts receivable as presented in the consolidated balance sheets are related to the Company’s contracts and are recorded when the right to consideration becomes unconditional at the amount management expects to collect.  Accounts receivable do not bear interest if paid when contractually due, and payments are generally due within thirty to forty-five days of invoicing.  Accounts receivable, net of allowance for doubtful accounts, are $179,234 and $156,916 as of March 31, 2018 and December 31, 2017, respectively.  The Company typically does not record contract assets, as the transfer of control of its products results in an unconditional right to receive consideration.

Deferred Revenues – Contract Balances

The Company enters into certain contracts with customers that include provisions requiring receipt of payment at the inception of the contract.  Deferred revenue is recorded when payment is received or due in advance of the performance obligation.  Changes in deferred revenue were as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

Beginning balance

 

$

8,963

 

Deferral of revenue

 

 

5,000

 

Recognition of unearned revenue

 

 

(678

)

Ending balance

 

$

13,285

 

 

At March 31, 2018 and December 31, 2017, respectively, deferred revenue balances of $9,346 and $5,660 were recorded as current liabilities.  At March 31, 2018 and December 31, 2017, respectively, deferred revenue balances of $3,939 and $3,303 were recorded in other long-term liabilities.  

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 – Revenue from Contracts with Customers (Topic 606).  Topic 606 supersedes the revenue recognition requirements in Topic 605 – Revenue Recognition and clarifies the principles for recognizing revenue and creates common revenue recognition guidance between GAAP and International Financial Reporting Standards.  Revenues are recognized when customers obtain control of promised goods or services and at an amount that reflects the consideration expected to be received in exchange for such goods or services.  In addition, the ASU requires disclosure of the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers.

On January 1, 2018, the Company adopted the ASU for all contracts which were not completed as of January 1, 2018 using the modified retrospective transition method.  The adoption did not require a cumulative adjustment to opening retained earnings and did not have a material impact on revenues for the quarter ended March 31, 2018.  See Note 18 for further details.

In March 2017, the FASB issued ASU No. 2017-07 – Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  The ASU requires that an employer report the service cost component in the same line item in the income statement as other compensation costs arising from services rendered by the pertinent employees during the period.  The ASU also requires only the service cost component to be eligible for capitalization when applicable.  The ASU is effective for annual reporting periods beginning after December 15, 2017 including interim periods within those annual periods with early adoption permitted.  The Company has adopted this ASU as of January 1, 2018, however, has determined it has no material impact on its consolidated financial statements and disclosures.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02 – Leases (Topic 842), which requires lessees to recognize assets and liabilities on their balance sheet related to the rights and obligations created by most leases, while continuing to recognize expense on their income statements over the lease term.  The ASU also requires disclosures designed to give financial statement users information regarding the amount, timing, and uncertainty of cash flows arising from leases.  The ASU is effective for fiscal years, and related interim periods, beginning after December 15, 2018 and early adoption is permitted, and mandates a modified retrospective transition method.  The Company believes the adoption of this ASU will likely have a material impact on its consolidated balance sheets for the recognition of certain operating leases as right-of-use assets and lease liabilities and is in the process of analyzing its lease portfolio and evaluating systems to comply with adoption.  

In August 2017, the FASB issued ASU No. 2017-12 – Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities.  The ASU expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements.  Subject matters addressed include risk component hedging, accounting for the hedged item in fair value hedges of interest rate risk, recognition and presentation of the effects of hedging instruments, amounts excluded from the assessment of hedge effectiveness, and effectiveness testing.  The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted.  All transition requirements and elections should be applied to existing hedging relationships as of the date of adoption and reflected as of the beginning of the fiscal year of adoption.  The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements and disclosures.

In February 2018, the FASB issued ASU No. 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  The FASB is providing ongoing guidance on certain accounting and tax effects of the legislation in the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted in December 2017.  Specifically, the ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from this legislation.  The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted.  The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized.  The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements and disclosures.

In March 2018, the FASB issued ASU no. 2018-05 Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.  This ASU amends certain SEC material in Topic 740 for the income tax accounting implication of the Tax Act.  This ASU adds guidance to the FASB Accounting Standards Codification regarding the Tax Act.  The additional guidance, among other things, includes accounting for income tax effects of the Tax Act during the measurement period and required disclosures of the income tax effects of the Tax Act under a measurement period approach.  The ASU is effective upon inclusion in the FASB Codification.  

v3.8.0.1
Revisions of Previously-Reported Results
3 Months Ended
Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]  
Revisions of Previously-Issued Financial Statements

2.

Revisions of Previously-Issued Financial Statements

The Company has revised previously-reported results to properly report stripping costs that were previously capitalized when incurred and amortized in subsequent periods.  Such costs incurred during the production phase of a mine are variable production costs that should be included in the costs of the inventory produced during the period the stripping costs are incurred.  The Company also revised the asset impairment charge for the quarter ended June 30, 2016 to correct its estimated fair value for an impaired mine property included in the determination of the impairment charge.  Additionally, the Company has included in the revised statements of cash flows a previously-omitted disclosure to show increase or decrease in accounts payable for additions to property, plant, and equipment.  The Company assessed the materiality of these misstatements on prior periods’ financial statements in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality, codified in ASC 250, Presentation of Financial Statements, and concluded that these misstatements were not material, individually or in the aggregate, to any previously-issued financial statements.  In accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the unaudited condensed consolidated financial statements and notes to consolidated financial statements as of December 31, 2017 and March 31, 2017, and for the period ended March 31, 2017, which are presented herein, have been revised.  

The following tables show the impact of these revisions on all of the impacted line items from the Company’s (i) unaudited condensed consolidated financial statements for the three months ended March 31, 2017 and (ii) consolidated financial statements as of December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016, and 2015:

Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

172,583

 

 

$

-

 

 

$

172,583

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

131,752

 

 

 

2,451

 

 

 

134,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

22,470

 

 

 

-

 

 

 

22,470

 

Depreciation, depletion and amortization expense

 

 

19,442

 

 

 

(2,196

)

 

 

17,246

 

Other operating (income) expense

 

 

(1,060

)

 

 

-

 

 

 

(1,060

)

Income (loss) from operations

 

 

(21

)

 

 

(255

)

 

 

(276

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

12,537

 

 

 

-

 

 

 

12,537

 

Income (loss) before benefit from income taxes

 

 

(12,558

)

 

 

(255

)

 

 

(12,813

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(1,148

)

 

 

(12

)

 

 

(1,160

)

Net income (loss)

 

 

(11,410

)

 

 

(243

)

 

 

(11,653

)

Less: Net income attributable to the non-controlling interest

 

 

178

 

 

 

-

 

 

 

178

 

Net income (loss) attributable to Fairmount Santrol Holdings Inc.

 

$

(11,588

)

 

$

(243

)

 

$

(11,831

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

 

$

-

 

 

$

(0.05

)

Diluted

 

$

(0.05

)

 

$

-

 

 

$

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

223,739

 

 

 

 

 

223,739

 

Diluted

 

 

223,739

 

 

 

 

 

223,739

 

 

 

Consolidated Statement of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

959,795

 

 

$

-

 

 

$

959,795

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

659,758

 

 

 

11,443

 

 

 

671,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

113,240

 

 

 

-

 

 

 

113,240

 

Depreciation, depletion and amortization expense

 

 

79,144

 

 

 

(9,734

)

 

 

69,410

 

Other operating income

 

 

(1,072

)

 

 

-

 

 

 

(1,072

)

Income from operations

 

 

108,725

 

 

 

(1,709

)

 

 

107,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

56,408

 

 

 

-

 

 

 

56,408

 

Loss on debt extinguishment, net

 

 

2,898

 

 

 

-

 

 

 

2,898

 

Income before benefit from income taxes

 

 

49,419

 

 

 

(1,709

)

 

 

47,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(4,666

)

 

 

(1,049

)

 

 

(5,715

)

Net income

 

 

54,085

 

 

 

(660

)

 

 

53,425

 

Less: Net income attributable to the non-controlling interest

 

 

297

 

 

 

-

 

 

 

297

 

Net income attributable to Fairmount Santrol Holdings Inc.

 

$

53,788

 

 

$

(660

)

 

$

53,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

-

 

 

$

0.24

 

Diluted

 

$

0.23

 

 

$

-

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

223,993

 

 

 

 

 

223,993

 

Diluted

 

 

229,084

 

 

 

 

 

229,084

 

 

Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

535,013

 

 

$

-

 

 

$

535,013

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

459,714

 

 

 

9,803

 

 

 

469,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

79,140

 

 

 

-

 

 

 

79,140

 

Depreciation, depletion and amortization expense

 

 

72,276

 

 

 

(8,962

)

 

 

63,314

 

Goodwill and other asset impairments

 

 

93,148

 

 

 

(3,297

)

 

 

89,851

 

Restructuring charges

 

 

1,155

 

 

 

-

 

 

 

1,155

 

Other operating expense

 

 

8,899

 

 

 

-

 

 

 

8,899

 

Loss from operations

 

 

(179,319

)

 

 

2,456

 

 

 

(176,863

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

65,367

 

 

 

-

 

 

 

65,367

 

Gain on repurchase of debt, net

 

 

(5,110

)

 

 

-

 

 

 

(5,110

)

Other non-operating income

 

 

(10

)

 

 

-

 

 

 

(10

)

Loss before benefit from income taxes

 

 

(239,566

)

 

 

2,456

 

 

 

(237,110

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(99,441

)

 

 

10,811

 

 

 

(88,630

)

Net loss

 

 

(140,125

)

 

 

(8,355

)

 

 

(148,480

)

Less: Net income attributable to the non-controlling interest

 

 

67

 

 

 

-

 

 

 

67

 

Net loss attributable to Fairmount Santrol Holdings Inc.

 

$

(140,192

)

 

$

(8,355

)

 

$

(148,547

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.78

)

 

$

(0.05

)

 

$

(0.83

)

Diluted

 

$

(0.78

)

 

$

(0.05

)

 

$

(0.83

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

179,429

 

 

 

 

 

179,429

 

Diluted

 

 

179,429

 

 

 

 

 

179,429

 

 

Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

828,709

 

 

$

-

 

 

$

828,709

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

608,845

 

 

 

7,175

 

 

 

616,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

85,191

 

 

 

-

 

 

 

85,191

 

Depreciation, depletion and amortization expense

 

 

66,754

 

 

 

(6,348

)

 

 

60,406

 

Goodwill and other asset impairments

 

 

87,476

 

 

 

-

 

 

 

87,476

 

Restructuring charges

 

 

9,221

 

 

 

-

 

 

 

9,221

 

Other operating expense

 

 

1,357

 

 

 

(378

)

 

 

979

 

Loss from operations

 

 

(30,135

)

 

 

(449

)

 

 

(30,584

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

62,242

 

 

 

-

 

 

 

62,242

 

Other non-operating expense

 

 

1,492

 

 

 

-

 

 

 

1,492

 

Loss before benefit from income taxes

 

 

(93,869

)

 

 

(449

)

 

 

(94,318

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(1,939

)

 

 

(164

)

 

 

(2,103

)

Net loss

 

 

(91,930

)

 

 

(285

)

 

 

(92,215

)

Less: Net income attributable to the non-controlling interest

 

 

205

 

 

 

-

 

 

 

205

 

Net loss attributable to Fairmount Santrol Holdings Inc.

 

$

(92,135

)

 

$

(285

)

 

$

(92,420

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.57

)

 

$

-

 

 

$

(0.57

)

Diluted

 

$

(0.57

)

 

$

-

 

 

$

(0.57

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

161,297

 

 

 

 

 

161,297

 

Diluted

 

 

161,297

 

 

 

 

 

161,297

 

 

 

 

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(11,410

)

 

$

(243

)

 

$

(11,653

)

Other comprehensive income, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(39

)

 

 

-

 

 

 

(39

)

Pension obligations

 

 

61

 

 

 

-

 

 

 

61

 

Change in fair value of derivative agreements

 

 

1,613

 

 

 

-

 

 

 

1,613

 

Total other comprehensive income, before tax

 

 

1,635

 

 

 

-

 

 

 

1,635

 

Provision for income taxes related to items of other comprehensive income

 

 

1,316

 

 

 

-

 

 

 

1,316

 

Comprehensive loss, net of tax

 

 

(11,091

)

 

 

(243

)

 

 

(11,334

)

Comprehensive income attributable to the non-controlling interest

 

 

178

 

 

 

-

 

 

 

178

 

Comprehensive loss attributable to Fairmount Santrol Holdings Inc.

 

$

(11,269

)

 

$

(243

)

 

$

(11,512

)

 

 

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net income

 

$

54,085

 

 

$

(660

)

 

$

53,425

 

Other comprehensive income, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

555

 

 

 

-

 

 

 

555

 

Pension obligations

 

 

336

 

 

 

-

 

 

 

336

 

Change in fair value of derivative agreements

 

 

5,863

 

 

 

-

 

 

 

5,863

 

Total other comprehensive income, before tax

 

 

6,754

 

 

 

-

 

 

 

6,754

 

Provision for income taxes related to items of other comprehensive income

 

 

2,850

 

 

 

-

 

 

 

2,850

 

Comprehensive income, net of tax

 

 

57,989

 

 

 

(660

)

 

 

57,329

 

Comprehensive income attributable to the non-controlling interest

 

 

297

 

 

 

-

 

 

 

297

 

Comprehensive income attributable to Fairmount Santrol Holdings Inc.

 

$

57,692

 

 

$

(660

)

 

$

57,032

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(140,125

)

 

$

(8,355

)

 

$

(148,480

)

Other comprehensive loss, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(774

)

 

 

-

 

 

 

(774

)

Pension obligations

 

 

425

 

 

 

-

 

 

 

425

 

Change in fair value of derivative agreements

 

 

(3,018

)

 

 

-

 

 

 

(3,018

)

Total other comprehensive loss, before tax

 

 

(3,367

)

 

 

-

 

 

 

(3,367

)

Benefit from income taxes related to items of other comprehensive loss

 

 

(2,058

)

 

 

-

 

 

 

(2,058

)

Comprehensive loss, net of tax

 

 

(141,434

)

 

 

(8,355

)

 

 

(149,789

)

Comprehensive income attributable to the non-controlling interest

 

 

67

 

 

 

-

 

 

 

67

 

Comprehensive loss attributable to Fairmount Santrol Holdings Inc.

 

$

(141,501

)

 

$

(8,355

)

 

$

(149,856

)

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(91,930

)

 

$

(285

)

 

$

(92,215

)

Other comprehensive loss, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(5,051

)

 

 

-

 

 

 

(5,051

)

Pension obligations

 

 

222

 

 

 

-

 

 

 

222

 

Change in fair value of derivative agreements

 

 

(1,836

)

 

 

-

 

 

 

(1,836

)

Total other comprehensive loss, before tax

 

 

(6,665

)

 

 

-

 

 

 

(6,665

)

Benefit from income taxes related to items of other comprehensive loss

 

 

(1,780

)

 

 

-

 

 

 

(1,780

)

Comprehensive loss, net of tax

 

 

(96,815

)

 

 

(285

)

 

 

(97,100

)

Comprehensive income attributable to the non-controlling interest

 

 

205

 

 

 

-

 

 

 

205

 

Comprehensive loss attributable to Fairmount Santrol Holdings Inc.

 

$

(97,020

)

 

$

(285

)

 

$

(97,305

)

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

127,967

 

 

$

-

 

 

$

127,967

 

Accounts receivable, net of allowance for doubtful accounts of $2,003

 

 

 

 

 

 

 

 

 

 

 

 

at December 31, 2017

 

 

156,916

 

 

 

-

 

 

 

156,916

 

Inventories, net

 

 

70,528

 

 

 

-

 

 

 

70,528

 

Prepaid expenses and other assets

 

 

6,841

 

 

 

-

 

 

 

6,841

 

Refundable income taxes

 

 

924

 

 

 

-

 

 

 

924

 

Total current assets

 

 

363,176

 

 

 

-

 

 

 

363,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

785,513

 

 

 

(29,225

)

 

 

756,288

 

Deferred income taxes

 

 

350

 

 

 

-

 

 

 

350

 

Goodwill

 

 

15,301

 

 

 

-

 

 

 

15,301

 

Intangibles, net

 

 

93,268

 

 

 

-

 

 

 

93,268

 

Other assets

 

 

7,711

 

 

 

-

 

 

 

7,711

 

Total assets

 

$

1,265,319

 

 

$

(29,225

)

 

$

1,236,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

19,189

 

 

$

-

 

 

$

19,189

 

Accounts payable

 

 

70,633

 

 

 

-

 

 

 

70,633

 

Accrued expenses

 

 

74,007

 

 

 

-

 

 

 

74,007

 

Deferred revenue

 

 

5,660

 

 

 

-

 

 

 

5,660

 

Total current liabilities

 

 

169,489

 

 

 

-

 

 

 

169,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

729,741

 

 

 

-

 

 

 

729,741

 

Deferred income taxes

 

 

3,606

 

 

 

(1,177

)

 

 

2,429

 

Other long-term liabilities

 

 

42,189

 

 

 

-

 

 

 

42,189

 

Total liabilities

 

 

945,025

 

 

 

(1,177

)

 

 

943,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock: $0.01 par value, 100,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 0 at December 31, 2017

 

 

-

 

 

 

-

 

 

 

-

 

Common stock: $0.01 par value, 1,850,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued: 242,366 at December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 224,291 at December 31, 2017

 

 

2,423

 

 

 

-

 

 

 

2,423

 

Additional paid-in capital

 

 

299,912

 

 

 

-

 

 

 

299,912

 

Retained earnings

 

 

318,207

 

 

 

(28,048

)

 

 

290,159

 

Accumulated other comprehensive loss

 

 

(15,098

)

 

 

-

 

 

 

(15,098

)

Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock

 

 

605,444

 

 

 

(28,048

)

 

 

577,396

 

Less: Treasury stock at cost

 

 

 

 

 

 

 

 

 

 

 

 

Shares in treasury: 18,075 at December 31, 2017

 

 

(285,520

)

 

 

-

 

 

 

(285,520

)

Total equity attributable to Fairmount Santrol Holdings Inc.

 

 

319,924

 

 

 

(28,048

)

 

 

291,876

 

Non-controlling interest

 

 

370

 

 

 

-

 

 

 

370

 

Total equity

 

 

320,294

 

 

 

(28,048

)

 

 

292,246

 

Total liabilities and equity

 

$

1,265,319

 

 

$

(29,225

)

 

$

1,236,094

 

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

194,069

 

 

$

-

 

 

$

194,069

 

Accounts receivable, net of allowance for doubtful accounts of $3,055

 

 

 

 

 

 

 

 

 

 

 

 

at December 31, 2016

 

 

78,942

 

 

 

-

 

 

 

78,942

 

Inventories, net

 

 

52,650

 

 

 

-

 

 

 

52,650

 

Prepaid expenses and other assets

 

 

7,065

 

 

 

-

 

 

 

7,065

 

Refundable income taxes

 

 

21,077

 

 

 

-

 

 

 

21,077

 

Total current assets

 

 

353,803

 

 

 

-

 

 

 

353,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

727,735

 

 

 

(27,514

)

 

 

700,221

 

Deferred income taxes

 

 

1,244

 

 

 

-

 

 

 

1,244

 

Goodwill

 

 

15,301

 

 

 

-

 

 

 

15,301

 

Intangibles, net

 

 

95,341

 

 

 

-

 

 

 

95,341

 

Other assets

 

 

9,486

 

 

 

-

 

 

 

9,486

 

Total assets

 

$

1,202,910

 

 

$

(27,514

)

 

$

1,175,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

10,707

 

 

$

-

 

 

$

10,707

 

Accounts payable

 

 

37,263

 

 

 

-

 

 

 

37,263

 

Accrued expenses

 

 

26,110

 

 

 

-

 

 

 

26,110

 

Deferred revenue

 

 

75

 

 

 

-

 

 

 

75

 

Total current liabilities

 

 

74,155

 

 

 

-

 

 

 

74,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

832,306

 

 

 

-

 

 

 

832,306

 

Deferred income taxes

 

 

7,057

 

 

 

(128

)

 

 

6,929

 

Other long-term liabilities

 

 

38,272

 

 

 

-

 

 

 

38,272

 

Total liabilities

 

 

951,790

 

 

 

(128

)

 

 

951,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock: $0.01 par value, 100,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 0 at December 31, 2016

 

 

-

 

 

 

-

 

 

 

-

 

Common stock: $0.01 par value, 1,850,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued: 242,267 at December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 223,601 at December 31, 2016

 

 

2,422

 

 

 

-

 

 

 

2,422

 

Additional paid-in capital

 

 

297,649

 

 

 

-

 

 

 

297,649

 

Retained earnings

 

 

264,852

 

 

 

(27,386

)

 

 

237,466

 

Accumulated other comprehensive loss

 

 

(19,002

)

 

 

-

 

 

 

(19,002

)

Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock

 

 

545,921

 

 

 

(27,386

)

 

 

518,535

 

Less: Treasury stock at cost

 

 

 

 

 

 

 

 

 

 

 

 

Shares in treasury: 18,666 at December 31, 2016

 

 

(294,874

)

 

 

-

 

 

 

(294,874

)

Total equity attributable to Fairmount Santrol Holdings Inc.

 

 

251,047

 

 

 

(27,386

)

 

 

223,661

 

Non-controlling interest

 

 

73

 

 

 

-

 

 

 

73

 

Total equity

 

 

251,120

 

 

 

(27,386

)

 

 

223,734

 

Total liabilities and equity

 

$

1,202,910

 

 

$

(27,514

)

 

$

1,175,396

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(11,410

)

 

$

(243

)

 

$

(11,653

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

17,530

 

 

 

(2,196

)

 

 

15,334

 

Amortization

 

 

3,130

 

 

 

-

 

 

 

3,130

 

Reserve for doubtful accounts

 

 

(447

)

 

 

-

 

 

 

(447

)

Gain on disposal of fixed assets

 

 

(714

)

 

 

-

 

 

 

(714

)

Deferred income taxes and taxes payable

 

 

119

 

 

 

(12

)

 

 

107

 

Stock compensation expense

 

 

2,416

 

 

 

-

 

 

 

2,416

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(15,956

)

 

 

-

 

 

 

(15,956

)

Inventories

 

 

(9,038

)

 

 

-

 

 

 

(9,038

)

Prepaid expenses and other assets

 

 

(1,078

)

 

 

1,945

 

 

 

867

 

Refundable income taxes

 

 

1,945

 

 

 

(1,945

)

 

 

-

 

Accounts payable

 

 

12,981

 

 

 

-

 

 

 

12,981

 

Accrued expenses and deferred revenue

 

 

26,489

 

 

 

(26,489

)

 

 

-

 

Accrued expenses

 

 

-

 

 

 

9,744

 

 

 

9,744

 

Deferred revenue

 

 

-

 

 

 

16,969

 

 

 

16,969

 

Net cash provided by operating activities

 

 

25,967

 

 

 

(2,227

)

 

 

23,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of fixed assets

 

 

957

 

 

 

-

 

 

 

957

 

Capital expenditures and stripping costs

 

 

(7,025

)

 

 

2,451

 

 

 

(4,574

)

Other investing activities

 

 

(758

)

 

 

758

 

 

 

-

 

Net cash used in investing activities

 

 

(6,826

)

 

 

3,209

 

 

 

(3,617

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Payments on term loans

 

 

(2,170

)

 

 

-

 

 

 

(2,170

)

Payments on capital leases and other long-term debt

 

 

(817

)

 

 

-

 

 

 

(817

)

Proceeds from share-based awards exercised or distributed

 

 

486

 

 

 

-

 

 

 

486

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

-

 

 

 

(982

)

 

 

(982

)

Transactions with non-controlling interest

 

 

(1

)

 

 

-

 

 

 

(1

)

Net cash used in financing activities

 

 

(2,502

)

 

 

(982

)

 

 

(3,484

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment

 

 

(44

)

 

 

-

 

 

 

(44

)

Increase in cash and cash equivalents

 

 

16,595

 

 

 

-

 

 

 

16,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

194,069

 

 

 

-

 

 

 

194,069

 

End of period

 

$

210,664

 

 

$

-

 

 

$

210,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

11,717

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(1,601

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

4,175

 

 

 

 

 

 

 

 

 

Decrease in accounts payable for additions to property, plant, and equipment

 

 

(1,301

)

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net income

 

$

54,085

 

 

$

(660

)

 

$

53,425

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

71,397

 

 

 

(9,734

)

 

 

61,663

 

Amortization

 

 

12,784

 

 

 

-

 

 

 

12,784

 

Reserve for doubtful accounts

 

 

(387

)

 

 

-

 

 

 

(387

)

Write-off of deferred financing costs

 

 

389

 

 

 

-

 

 

 

389

 

Loss on debt extinguishment, gross

 

 

2,898

 

 

 

-

 

 

 

2,898

 

Inventory write-downs and reserves

 

 

1,266

 

 

 

-

 

 

 

1,266

 

Loss on disposal of fixed assets

 

 

846

 

 

 

-

 

 

 

846

 

Unrealized loss on interest rate swaps

 

 

14

 

 

 

-

 

 

 

14

 

Deferred income taxes and taxes payable

 

 

(5,634

)

 

 

(1,049

)

 

 

(6,683

)

Stock compensation expense

 

 

10,071

 

 

 

-

 

 

 

10,071

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(77,587

)

 

 

-

 

 

 

(77,587

)

Inventories

 

 

(19,144

)

 

 

-

 

 

 

(19,144

)

Prepaid expenses and other assets

 

 

(2,398

)

 

 

-

 

 

 

(2,398

)

Refundable income taxes

 

 

20,154

 

 

 

-

 

 

 

20,154

 

Accounts payable

 

 

18,575

 

 

 

-

 

 

 

18,575

 

Accrued expenses

 

 

51,874

 

 

 

-

 

 

 

51,874

 

Deferred revenue

 

 

5,585

 

 

 

-

 

 

 

5,585

 

Net cash provided by operating activities

 

 

144,788

 

 

 

(11,443

)

 

 

133,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of fixed assets

 

 

4,939

 

 

 

-

 

 

 

4,939

 

Capital expenditures and stripping costs

 

 

(69,573

)

 

 

11,443

 

 

 

(58,130

)

Leasehold interest payments for sand reserves

 

 

(30,000

)

 

 

-

 

 

 

(30,000

)

Earnout payments

 

 

(4,170

)

 

 

-

 

 

 

(4,170

)

Net cash used in investing activities

 

 

(98,804

)

 

 

11,443

 

 

 

(87,361

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from borrowings on term loan

 

 

689,500

 

 

 

-

 

 

 

689,500

 

Payments on term loans

 

 

(6,469

)

 

 

-

 

 

 

(6,469

)

Prepayments on term loans

 

 

(832,655

)

 

 

-

 

 

 

(832,655

)

Fees for debt restructure and repurchase of term loans

 

 

(2,790

)

 

 

-

 

 

 

(2,790

)

Payments on capital leases and other long-term debt

 

 

(4,752

)

 

 

-

 

 

 

(4,752

)

Proceeds from borrowing on revolving credit facility

 

 

50,000

 

 

 

-

 

 

 

50,000

 

Payments on revolving credit facility

 

 

(5,000

)

 

 

-

 

 

 

(5,000

)

Proceeds from option exercises

 

 

845

 

 

 

-

 

 

 

845

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

(1,321

)

 

 

-

 

 

 

(1,321

)

Net cash used in financing activities

 

 

(112,642

)

 

 

-

 

 

 

(112,642

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment

 

 

556

 

 

 

-

 

 

 

556

 

Decrease in cash and cash equivalents

 

 

(66,102

)

 

 

-

 

 

 

(66,102

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

194,069

 

 

 

-

 

 

 

194,069

 

End of period

 

$

127,967

 

 

$

-

 

 

$

127,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

59,498

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(19,278

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

10,988

 

 

 

 

 

 

 

 

 

Decrease in accounts payable for additions to property, plant, and equipment

 

 

(14,796

)

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(140,125

)

 

$

(8,355

)

 

$

(148,480

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

67,614

 

 

 

(8,962

)

 

 

58,652

 

Amortization

 

 

11,641

 

 

 

-

 

 

 

11,641

 

Reserve for doubtful accounts

 

 

1,851

 

 

 

-

 

 

 

1,851

 

Write-off of deferred financing costs

 

 

2,618

 

 

 

-

 

 

 

2,618

 

Gain on repurchase of debt, gross

 

 

(8,178

)

 

 

-

 

 

 

(8,178

)

Goodwill and other asset impairments

 

 

93,148

 

 

 

(3,297

)

 

 

89,851

 

Inventory write-downs and reserves

 

 

10,302

 

 

 

-

 

 

 

10,302

 

Loss on disposal of fixed assets

 

 

420

 

 

 

-

 

 

 

420

 

Deferred income taxes and taxes payable

 

 

(82,732

)

 

 

10,811

 

 

 

(71,921

)

Stock compensation expense

 

 

8,870

 

 

 

-

 

 

 

8,870

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(4,385

)

 

 

-

 

 

 

(4,385

)

Inventories

 

 

7,543

 

 

 

-

 

 

 

7,543

 

Prepaid expenses and other assets

 

 

11,496

 

 

 

-

 

 

 

11,496

 

Refundable income taxes

 

 

5,428

 

 

 

-

 

 

 

5,428

 

Accounts payable

 

 

4,196

 

 

 

-

 

 

 

4,196

 

Accrued expenses

 

 

11,718

 

 

 

-

 

 

 

11,718

 

Deferred revenue

 

 

75

 

 

 

-

 

 

 

75

 

Net cash provided by (used in) operating activities

 

 

1,500

 

 

 

(9,803

)

 

 

(8,303

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of fixed assets

 

 

5,670

 

 

 

-

 

 

 

5,670

 

Capital expenditures and stripping costs

 

 

(30,597

)

 

 

9,803

 

 

 

(20,794

)

Earnout payments

 

 

(1,287

)

 

 

-

 

 

 

(1,287

)

Net cash used in investing activities

 

 

(26,214

)

 

 

9,803

 

 

 

(16,411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Payments on term loans

 

 

(10,840

)

 

 

-

 

 

 

(10,840

)

Prepayments on term loans

 

 

(155,926

)

 

 

-

 

 

 

(155,926

)

Repurchase of term loans

 

 

(216,000

)

 

 

-

 

 

 

(216,000

)

Fees for debt restructure and repurchase of term loans

 

 

(450

)

 

 

-

 

 

 

(450

)

Payments on capital leases and other long-term debt

 

 

(5,947

)

 

 

-

 

 

 

(5,947

)

Proceeds from option exercises

 

 

6,438

 

 

 

-

 

 

 

6,438

 

Proceeds from primary stock offering

 

 

439,556

 

 

 

-

 

 

 

439,556

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

(8,092

)

 

 

-

 

 

 

(8,092

)

Tax effect of share-based awards exercised, forfeited, or expired

 

 

(1,100

)

 

 

-

 

 

 

(1,100

)

Transactions with non-controlling interest

 

 

(842

)

 

 

-

 

 

 

(842

)

Net cash provided by financing activities

 

 

46,797

 

 

 

-

 

 

 

46,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents related to assets classified as held-for-sale

 

 

1,376

 

 

 

-

 

 

 

1,376

 

Foreign currency adjustment

 

 

(876

)

 

 

-

 

 

 

(876

)

Increase in cash and cash equivalents

 

 

22,583

 

 

 

-

 

 

 

22,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

171,486

 

 

 

-

 

 

 

171,486

 

End of period

 

$

194,069

 

 

$

-

 

 

$

194,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

60,833

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(21,311

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

-

 

 

 

 

 

 

 

 

 

Increase in accounts payable for additions to property, plant, and equipment

 

 

8,100

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(91,930

)

 

$

(285

)

 

$

(92,215

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

62,218

 

 

 

(6,348

)

 

 

55,870

 

Amortization

 

 

11,416

 

 

 

-

 

 

 

11,416

 

Reserve for doubtful accounts

 

 

1,968

 

 

 

-

 

 

 

1,968

 

Write-off of deferred financing costs

 

 

864

 

 

 

-

 

 

 

864

 

Goodwill and other asset impairments

 

 

76,038

 

 

 

-

 

 

 

76,038

 

Non-cash restructuring charges

 

 

1,162

 

 

 

-

 

 

 

1,162

 

Inventory write-downs and reserves

 

 

1,591

 

 

 

-

 

 

 

1,591

 

Loss on disposal of fixed assets

 

 

8,712

 

 

 

-

 

 

 

8,712

 

Unrealized loss on interest rate swaps

 

 

49

 

 

 

-

 

 

 

49

 

Deferred income taxes and taxes payable

 

 

20,983

 

 

 

(164

)

 

 

20,819

 

Stock compensation expense

 

 

4,525

 

 

 

-

 

 

 

4,525

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

127,718

 

 

 

-

 

 

 

127,718

 

Inventories

 

 

59,527

 

 

 

-

 

 

 

59,527

 

Prepaid expenses and other assets

 

 

23,234

 

 

 

-

 

 

 

23,234

 

Refundable income taxes

 

 

(26,506

)

 

 

-

 

 

 

(26,506

)

Accounts payable

 

 

(38,698

)

 

 

-

 

 

 

(38,698

)

Accrued expenses

 

 

(6,051

)

 

 

-

 

 

 

(6,051

)

Net cash provided by operating activities

 

 

236,820

 

 

 

(6,797

)

 

 

230,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures and stripping costs

 

 

(113,750

)

 

 

6,797

 

 

 

(106,953

)

Other investing activities

 

 

(250

)

 

 

-

 

 

 

(250

)

Net cash used in investing activities

 

 

(114,000

)

 

 

6,797

 

 

 

(107,203

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Payments on term loans

 

 

(13,532

)

 

 

-

 

 

 

(13,532

)

Payments on capital leases and other long-term debt

 

 

(6,975

)

 

 

-

 

 

 

(6,975

)

Proceeds from option exercises

 

 

1,767

 

 

 

-

 

 

 

1,767

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

(826

)

 

 

-

 

 

 

(826

)

Tax effect of share-based awards exercised, forfeited, or expired

 

 

(1,472

)

 

 

-

 

 

 

(1,472

)

Transactions with non-controlling interest

 

 

(301

)

 

 

-

 

 

 

(301

)

Other financing activities

 

 

(4,578

)

 

 

-

 

 

 

(4,578

)

Net cash used in financing activities

 

 

(25,917

)

 

 

-

 

 

 

(25,917

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents related to assets classified as held-for-sale

 

 

(1,376

)

 

 

-

 

 

 

(1,376

)

Foreign currency adjustment

 

 

(964

)

 

 

-

 

 

 

(964

)

Increase in cash and cash equivalents

 

 

94,563

 

 

 

-

 

 

 

94,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

76,923

 

 

 

-

 

 

 

76,923

 

End of period

 

$

171,486

 

 

$

-

 

 

$

171,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

61,395

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(19,898

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

4,552

 

 

 

 

 

 

 

 

 

Increase in accounts payable for additions to property, plant, and equipment

 

 

652

 

 

 

 

 

 

 

 

 

 

v3.8.0.1
Inventories, net
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Inventories, net

3.

Inventories, net

At March 31, 2018 and December 31, 2017, inventories consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Raw materials

 

$

8,368

 

 

$

7,412

 

Work-in-process

 

 

10,303

 

 

 

14,819

 

Finished goods

 

 

46,848

 

 

 

48,931

 

 

 

 

65,519

 

 

 

71,162

 

Less: LIFO reserve

 

 

(624

)

 

 

(634

)

Inventories, net

 

$

64,895

 

 

$

70,528

 

 

v3.8.0.1
Property, Plant, and Equipment, net
3 Months Ended
Mar. 31, 2018
Property Plant And Equipment [Abstract]  
Property, Plant, and Equipment, net

4.

Property, Plant, and Equipment, net

At March 31, 2018 and December 31, 2017, property, plant, and equipment consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Land and improvements

 

$

83,491

 

 

$

85,012

 

Mineral reserves and mine development

 

 

228,356

 

 

 

222,271

 

Machinery and equipment

 

 

601,745

 

 

 

590,584

 

Buildings and improvements

 

 

186,631

 

 

 

186,466

 

Furniture, fixtures, and other

 

 

3,492

 

 

 

3,478

 

Construction in progress

 

 

81,125

 

 

 

54,661

 

 

 

 

1,184,840

 

 

 

1,142,472

 

Accumulated depletion and depreciation

 

 

(401,411

)

 

 

(386,184

)

Property, plant, and equipment, net

 

$

783,429

 

 

$

756,288

 

 

On July 18, 2017, the Company entered into a 40-year lease agreement for approximately 3,250 acres of sand reserves in Kermit, Texas.  The Company has capitalized the entire $40,000 leasehold interest obligation and related exploratory and transaction costs to mineral reserves and mine development.  The initial payment of $20,000 was paid at lease commencement.  An additional $10,000 was paid in October 2017 upon the issuance of all federal, state, and local permits.  The remaining $10,000 is payable upon the earlier of two years from the commencement date of the agreement or the date the Company makes its first sale of sand from this property, which the Company expects to be in the second quarter of 2018.  The capitalized leasehold interest payments will begin to be recognized as expense as production occurs.  Additionally, the Company is obligated for certain royalty payments based on volumes sold.

v3.8.0.1
Long-Term Debt
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Long-Term Debt

5.

Long-Term Debt

At March 31, 2018 and December 31, 2017, long-term debt consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Term Loan B

 

$

685,184

 

 

$

688,990

 

Industrial Revenue Bond

 

 

10,000

 

 

 

10,000

 

ABL Revolver, Revolving Credit Facility, and other

 

 

35,056

 

 

 

45,073

 

Capital leases, net

 

 

8,738

 

 

 

9,884

 

Deferred financing costs, net

 

 

(4,738

)

 

 

(5,017

)

 

 

 

734,240

 

 

 

748,930

 

Less: current portion

 

 

(18,924

)

 

 

(19,189

)

Long-term debt including leases

 

$

715,316

 

 

$

729,741

 

On November 1, 2017 (the “Closing Date”), the Company entered into a new five-year asset-based revolving credit facility (the “ABL Revolver”) with PNC Capital Markets LLC, as administrative agent, which replaced the existing revolving credit facility.  The ABL Revolver has a borrowing capacity of up to $125,000 with an option to increase by $50,000 to $175,000.  An initial draw of $50,000 upon closing of the ABL Revolver was used to partially refinance existing term debt, pay expenses associated with debt refinancing, and can be later used for funding capital expenditures, and providing ongoing working capital.  The ABL Revolver is interest only at a rate derived from LIBOR plus 1.5% to 2.0% (depending on excess availability under the ABL Revolver) or from a Base Rate, which is the higher of the prime rate, the Federal Funds open rate plus 0.5% and the Daily LIBOR Rate plus 1.0%.  The interest payments on the ABL Revolver are payable in quarterly installments, with the principal balance due at November 1, 2022.  If the Term Loan B is still outstanding, then any balance outstanding under the ABL Revolver is due on May 1, 2022.  Availability under the ABL Revolver is based upon an available borrowing base, which includes a specified percentage of eligible accounts receivable and inventory and excludes outstanding letters of credit and applicable reserves.  In addition to interest charged on the ABL Revolver, the Company is also obligated to pay certain fees, quarterly in arrears, including letter of credit fees and unused facility fees.  The ABL Revolver includes financial covenants requiring a minimum fixed charge coverage ratio of 1.1, based on availability thresholds, and is primarily secured by all accounts receivable and inventory, with security interest second to the Term Loan B on substantially all other assets of the Company.

Additionally, on the Closing Date, the Company entered into an agreement with Barclays Capital Inc., as administrative agent, for a $700,000 Senior Secured Term Loan (the “Term Loan B”) to refinance all of its existing Term B-2 Loans and Extended Term B-1 Loans.  The Term Loan B was issued with original issue discount at 98.5% of face.  The Term Loan B, which has a maturity date of November 1, 2022, requires quarterly interest payments and 2.5% annual principal amortization payments for the first half of the loan period, 5.0% for the second half of the loan period, with the balance payable at the maturity date.  Interest accrues at the rate of the three-month LIBOR plus 6.0% with a LIBOR floor of 1.0%.  The Term Loan B is secured by a first priority security interest in substantially all assets of the Company and its subsidiaries, except for accounts receivable and inventory, in which it has a second priority security interest.  The Company has the option to prepay the Term Loan B.  Should the Company choose to refinance the Term Loan B, it would be subject to a 1.02% premium if refinanced at a lower interest rate within one year of the Closing Date or a 1.01% premium if refinanced at a lower interest rate within two years of the Closing Date. In the event of a change in control of 35% or more of the voting interests of the Company and at the request of the lenders, the unpaid principal and interest of the Term Loan B may become immediately due and payable.  There are no financial covenants governing the Term Loan B.

As of March 31, 2018, the Term Loan B and the ABL Revolver had actual interest rates of 8.3% and 3.6%, respectively.  As of December 31, 2017, the Term Loan B and the ABL Revolver had actual interest rates of 7.7% and 3.3%, respectively.

As of March 31, 2018, the Company was in compliance with all covenants in accordance with the ABL Revolver.  As of March 31, 2018, there was $90,000 available unused capacity on the ABL Revolver, $15,290 committed to outstanding letters of credit, and $611 withheld for collateral, leaving net availability at $74,099.

The Company has a $10,000 Industrial Revenue Bond outstanding related to the construction of a mining facility in Wisconsin.  The bond bears interest, which is payable monthly, at a variable rate.  The rate was 1.65% and 1.46% at March 31, 2018 and December 31, 2017, respectively.  The bond matures on September 1, 2027 and is collateralized by a letter of credit of $10,000.

v3.8.0.1
Accrued Expenses
3 Months Ended
Mar. 31, 2018
Payables And Accruals [Abstract]  
Accrued Expenses

6.

Accrued Expenses

At March 31, 2018 and December 31, 2017, accrued expenses consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Accrued payroll and fringe benefits

 

$

8,526

 

 

$

11,233

 

Accrued bonus

 

 

3,543

 

 

 

37,166

 

Accrued income taxes

 

 

386

 

 

 

504

 

Accrued real estate taxes

 

 

4,617

 

 

 

5,098

 

Accrued leasehold interest payments

 

 

10,000

 

 

 

10,000

 

Other accrued expenses

 

 

14,588

 

 

 

10,006

 

Accrued expenses

 

$

41,660

 

 

$

74,007

 

 

v3.8.0.1
Earnings (Loss) per Share
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Earnings (Loss) per Share

7.

Earnings (Loss) per Share  

The table below shows the computation of basic and diluted earnings (loss) per share for the three months ended March 31, 2018 and 2017, respectively:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Numerator:

 

 

 

 

 

 

 

 

Net income (loss) attributable to Fairmount Santrol Holdings Inc.

 

$

28,753

 

 

$

(11,831

)

Denominator:

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

224,484

 

 

 

223,739

 

Dilutive effect of employee stock options, RSUs, and PRSUs

 

 

4,456

 

 

 

-

 

Diluted weighted average shares outstanding

 

 

228,940

 

 

 

223,739

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share – basic

 

$

0.13

 

 

$

(0.05

)

Earnings (loss) per common share – diluted

 

$

0.13

 

 

$

(0.05

)

 

The calculation of diluted weighted average shares outstanding for the three months ended March 31, 2018 excludes 6,170 potential common shares because the effect of including these potential common shares would be antidilutive.  Potentially dilutive shares of 4,739 were excluded from the calculation of diluted weighted average shares outstanding and diluted earnings per share in the three months ended March 31, 2017 because the Company was in a loss position in that period.

v3.8.0.1
Derivative Instruments
3 Months Ended
Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Instruments

8.

Derivative Instruments

The Company enters into interest rate swap agreements as a means to partially hedge its variable interest rate risk on debt instruments.  At March 31, 2018, the Company had one outstanding interest rate swap agreement.  The notional value of this swap agreement as of March 31, 2018 and December 31, 2017 is $210,000 and represents approximately 30% of term debt outstanding at March 31, 2018 and December 31, 2017.  The swap agreement terminates on September 5, 2019 and effectively fixes the variable rate to 2.92% for the portion of the debt that is hedged.

The derivative instruments are recorded on the balance sheet at their fair values.  Changes in the fair value of derivatives are recorded each period in current earnings or in other comprehensive income, depending on whether a derivative is designated and qualifying as part of a hedging relationship and, if it is, depending on the type of hedging relationship.

The Company recognizes changes in fair value for derivatives not qualifying for hedge accounting in current period earnings.  In the event an interest rate swap is terminated prior to maturity, gains or losses in accumulated other comprehensive loss remain deferred and are reclassified into earnings in the periods in which the hedged forecasted transaction affects earnings.

The Company formally designates and documents instruments at inception that qualify for hedge accounting of underlying exposures in accordance with GAAP.  Both at inception and for each reporting period, the Company assesses whether the financial instruments used in hedging transactions are effective in offsetting changes in cash flows of the related underlying exposure.

In December 2017, the Company determined that the existing swap agreement, which previously qualified for hedge accounting treatment, no longer qualified for hedge accounting, as the underlying transaction was no longer probable of occurring.  No gain or loss was recognized and the remaining balance of accumulated other comprehensive loss associated with the swap agreement will be amortized into interest expense until September 2019, the date of the expected swap maturity.  

In November 2017, a swap agreement with a notional value of $210,000 was terminated.  Upon termination, the remaining balance in accumulated other comprehensive loss associated with the swap agreement will continue to be amortized and recorded as interest expense until September 2019, the date of the original expected swap maturity.  

The following table summarizes the fair values and the respective classification in the Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017:

 

 

 

 

 

Assets (Liabilities)

 

Interest Rate Swap Agreements

 

Balance Sheet Classification

 

March 31, 2018

 

 

December 31, 2017

 

Non-qualifying cash flow hedge

 

Other long-term liabilities

 

$

(1,394

)

 

$

(3,208

)

 

 

 

 

$

(1,394

)

 

$

(3,208

)

 

The Company recognized in interest expense the following in the three months ended March 31, 2018 and 2017, respectively, in order to represent the ineffective portion of interest rate swap agreements designated as hedges and interest rate swap agreements no longer qualifying for hedge accounting treatment:

 

Derivatives Designated as

 

Location of (Gain) Loss

 

 

 

 

 

 

 

 

ASC 815-20 Cash Flow

 

Recognized in Income on

 

Three Months Ended March 31,

 

Hedging Relationships

 

Derivative (Ineffective Portion)

 

2018

 

 

2017

 

Interest rate swap agreements

 

Interest expense

 

$

-

 

 

$

(77

)

 

 

 

 

$

-

 

 

$

(77

)

 

Derivatives Not Designated

 

 

 

 

 

 

 

 

 

 

as ASC 815-20 Cash Flow

 

Location of (Gain) Loss

 

Three Months Ended March 31,

 

Hedging Relationships

 

Recognized in Income on Derivative

 

2018

 

 

2017

 

Interest rate swap agreements

 

Interest expense

 

$

(99

)

 

$

-

 

 

 

 

 

$

(99

)

 

$

-

 

 

The Company currently expects $4,333 to be reclassified from accumulated other comprehensive loss into interest expense within the next twelve months.

v3.8.0.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements

9.

Fair Value Measurements

Financial instruments held by the Company include cash equivalents, accounts receivable, accounts payable, long-term debt (including the current portion thereof) and interest rate swaps.  The Company is also liable for contingent consideration from the acquisition of Self-Suspending Proppant LLC (“SSP”) that is subject to fair value measurement.  Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.  In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.

Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities at fair value will be classified and disclosed in one of the following three categories:

 

Level 1

Quoted market prices in active markets for identical assets or liabilities

Level 2

Observable market based inputs or unobservable inputs that are corroborated by market data

Level 3

Unobservable inputs that are not corroborated by market data

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The carrying value of cash equivalents, accounts receivable, and accounts payable are considered to be representative of their fair values because of their short maturities.  The carrying value of SSP approximates the fair value. The carrying value of the Company’s long-term debt (including the current portion thereof) is recognized at amortized cost.  The carrying value of the ABL Revolver approximates fair value because its interest rate approximates the current rates available to the Company.  The fair value of the Term Loan B differs from amortized cost and is valued at prices obtained from a readily-available source for trading non-public debt, which represent quoted prices for identical or similar assets in markets that are not active, and therefore is considered Level 2.  The following table presents the fair value as of March 31, 2018 and December 31, 2017, respectively, for the Company’s long-term debt:

 

 

 

Quoted Prices

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

Long-Term Debt Fair Value Measurements

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan B

 

$

-

 

 

$

704,320

 

 

$

-

 

 

$

704,320

 

 

 

$

-

 

 

$

704,320

 

 

$

-

 

 

$

704,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan B

 

$

-

 

 

$

708,750

 

 

$

-

 

 

$

708,750

 

 

 

$

-

 

 

$

708,750

 

 

$

-

 

 

$

708,750

 

 

The following table presents the amounts carried at fair value as of March 31, 2018 and December 31, 2017 for the Company’s other financial instruments.  Fair value of interest rate swap agreements is based on the present value of the expected future cash flows, considering the risks involved, and using discount rates appropriate for the maturity date.  These are determined using Level 2 inputs.

 

 

 

Quoted Prices

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

Recurring Fair Value Measurements

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements

 

$

-

 

 

$

(1,394

)

 

$

-

 

 

$

(1,394

)

 

 

$

-

 

 

$

(1,394

)

 

$

-

 

 

$

(1,394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements

 

$

-

 

 

$

(3,208

)

 

$

-

 

 

$

(3,208

)

 

 

$

-

 

 

$

(3,208

)

 

$

-

 

 

$

(3,208

)

 

v3.8.0.1
Common Stock and Stock-Based Compensation
3 Months Ended
Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Common Stock and Stock-Based Compensation

10.

Common Stock and Stock-Based Compensation

In the three months ended March 31, 2018, the Company did not grant any options to purchase shares of common stock and did not issue any performance restricted stock units (“PRSUs”).  The Company granted options to purchase 443 shares of common stock in the three months ended March 31, 2017.  The average grant date fair value was $10.03 for options issued in the three months ended March 31, 2017.  The Company issued restricted stock units (“RSUs”) of 1,581 and 366 in the three months ended March 31, 2018 and 2017, respectively.  The Company issued PRSUs of 139 in the three months ended March 31, 2017.    

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

Performance

 

 

Weighted

 

 

 

 

 

 

 

Average Exercise

 

 

Restricted

 

 

Average Price at

 

 

Restricted

 

 

Average Price at

 

 

 

Options

 

 

Price, Options

 

 

Stock Units

 

 

RSU Issue Date

 

 

Stock Units

 

 

PRSU Issue Date

 

Outstanding at December 31, 2017

 

 

13,393

 

 

$

6.63

 

 

 

1,517

 

 

$

6.63

 

 

 

584

 

 

$

4.10

 

Granted

 

 

-

 

 

 

-

 

 

 

1,581

 

 

 

4.56

 

 

 

-

 

 

 

-

 

Exercised

 

 

(355

)

 

 

2.58

 

 

 

(280

)

 

 

4.65

 

 

 

-

 

 

 

-

 

Forfeited

 

 

(9

)

 

 

10.70

 

 

 

(6

)

 

 

10.03

 

 

 

-

 

 

 

-

 

Expired

 

 

(4

)

 

 

16.00

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Outstanding at March 31, 2018

 

 

13,025

 

 

$

6.73

 

 

 

2,812

 

 

$

5.67

 

 

 

584

 

 

$

4.10

 

 

The Company recorded $3,420 and $2,416 of stock compensation expense related to these options, RSUs, and PRSUs for the three months ended March 31, 2018 and 2017, respectively.  Stock compensation expense is included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Income (Loss) and in additional paid-in capital on the Condensed Consolidated Balance Sheets.

v3.8.0.1
Income Taxes
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

11.

Income Taxes

The Company computes and applies to ordinary income an estimated annual effective tax rate on a quarterly basis based on current and forecasted business levels and activities, including the mix of domestic and foreign results and enacted tax laws.  The estimated annual effective tax rate is updated quarterly based on actual results and updated operating forecasts.  Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items.  The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs as a discrete item of tax.  

For the three months ended March 31, 2018, the Company recorded tax expense of $872 on income before income taxes of $29,628 resulting in an effective tax rate of 2.9%, compared to a tax benefit of $1,160 on a loss before income taxes of $12,813 resulting in an effective tax rate of 9.1% for the same period of 2017.  The decrease in the effective tax rate is primarily attributable to the decrease in the corporate income tax rate to 21% resulting from the Tax Act passed by the United States Government in December 2017.  The decrease was partially offset by the reduced impact of the U.S. depletion deduction applied against forecasted results in 2018 as compared to 2017.  The effective rate differs from the U.S. federal statutory rate due primarily to depletion and the valuation allowance against certain U.S. tax attributes.

The Tax Act subjects U.S. taxpayers to the base erosion minimum tax ("BEAT"), a potential limitation on U.S. interest deduction ("163(j)"), a potential tax deduction for foreign derived intangible income ("FDII"), and a current tax on its global intangible low-taxed income ("GILTI").  The Company estimates that the effect from the BEAT, 163(j), FDII and GILTI on its estimated annual effective tax rate will not be material.

For the three months ended March 31, 2018, the Company remains provisional for legislative changes of the Tax Act, most notably for the one-time transition tax on unremitted foreign earnings of $3,046.  While substantially complete for which a reasonable estimate of such effects have been recorded, these estimates remain provisional as certain items may differ, potentially materially, due to further refinement of the calculations, changes in interpretations and assumptions made, and further guidance that may become available.  The SEC has provided up to a one-year measurement period, ending December 22, 2018, for the Company to finalize the accounting for the impacts of the Tax Act.

v3.8.0.1
Defined Benefit Plans
3 Months Ended
Mar. 31, 2018
Compensation And Retirement Disclosure [Abstract]  
Defined Benefit Plans

12.

Defined Benefit Plans

The Company maintains two defined benefit pension plans, the Wedron pension plan and the Troy Grove pension plan, covering union employees at certain facilities that provide benefits based upon years of service or a combination of employee earnings and length of service.  Benefits under the Wedron plan were frozen effective December 31, 2012.  Benefits under the Troy Grove plan were frozen effective December 31, 2016.

Net periodic benefit (income) cost recognized for Company defined benefit pension plans for the three months ended March 31, 2018 and 2017 is as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Components of net periodic benefit (income) cost

 

 

 

 

 

 

 

 

Interest cost

 

 

84

 

 

 

89

 

Expected return on plan assets

 

 

(141

)

 

 

(127

)

Amortization of net actuarial loss

 

 

56

 

 

 

61

 

Net periodic benefit (income) cost

 

$

(1

)

 

$

23

 

 

The Company did not contribute to the plans during the three months ended March 31, 2018 and contributed $19 during the three months ended March 31, 2017.  Total expected employer contributions during the year ending December 31, 2018 are $28.

v3.8.0.1
Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Loss

13.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss attributable to Fairmount Santrol Holdings Inc. at March 31, 2018 and December 31, 2017 were as follows:

 

 

 

March 31, 2018

 

 

 

Gross

 

 

Tax Effect

 

 

Net Amount

 

Foreign currency translation

 

$

(10,233

)

 

$

1,546

 

 

$

(8,687

)

Additional pension liability

 

 

(3,193

)

 

 

1,220

 

 

 

(1,973

)

Unrealized gain (loss) on interest rate hedges

 

 

(6,214

)

 

 

2,383

 

 

 

(3,831

)

 

 

$

(19,640

)

 

$

5,149

 

 

$

(14,491

)

 

 

 

December 31, 2017

 

 

 

Gross

 

 

Tax Effect

 

 

Net Amount

 

Foreign currency translation

 

$

(10,249

)

 

$

1,849

 

 

$

(8,400

)

Additional pension liability

 

 

(3,253

)

 

 

1,220

 

 

 

(2,033

)

Unrealized gain (loss) on interest rate hedges

 

 

(7,283

)

 

 

2,618

 

 

 

(4,665

)

 

 

$

(20,785

)

 

$

5,687

 

 

$

(15,098

)

 

The following table presents the changes in accumulated other comprehensive loss by component for the three months ended March 31, 2018:

 

 

 

Three Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

Foreign

 

 

Additional

 

 

gain (loss)

 

 

 

 

 

 

 

currency

 

 

pension

 

 

on interest

 

 

 

 

 

 

 

translation

 

 

liability

 

 

rate hedges

 

 

Total

 

Beginning balance

 

$

(8,400

)

 

$

(2,033

)

 

$

(4,665

)

 

$

(15,098

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

before reclassifications

 

 

(287

)

 

 

-

 

 

 

-

 

 

 

(287

)

Amounts reclassified from accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other comprehensive loss

 

 

-

 

 

 

60

 

 

 

834

 

 

 

894

 

Ending balance

 

$

(8,687

)

 

$

(1,973

)

 

$

(3,831

)

 

$

(14,491

)

 

The following table presents the reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2018:

 

 

 

Amount reclassified

 

 

 

 

 

from accumulated

 

 

 

Details about accumulated other

 

other comprehensive

 

 

Affected line item on

comprehensive loss

 

loss

 

 

the statement of income (loss)

Change in fair value of derivative swap agreements

 

 

 

 

 

 

Interest rate hedging contracts

 

$

1,069

 

 

Interest expense

Tax effect

 

 

(235

)

 

Tax expense

 

 

$

834

 

 

Net of tax

Amortization of pension obligations

 

 

 

 

 

 

Actuarial losses

 

$

60

 

 

Cost of sales

Total reclassifications for the period

 

$

894

 

 

Net of tax

 

v3.8.0.1
Commitments and Contingent Liabilities
3 Months Ended
Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities

14.

Commitments and Contingent Liabilities

The Company has entered into numerous mineral rights agreements, in which payments under the agreements are expensed as incurred.  Certain agreements require annual payments while other agreements require payments based upon annual tons mined and others a combination thereof.  As of March 31, 2018, the Company is obligated for an additional $10,000 in future leasehold interest payments for the July 2017 Kermit, Texas transaction.  This obligation is expected to be paid in the second quarter of 2018.  Please refer to Note 4 for further detail.

The Company has entered into agreements with third party terminal operators whereby certain minimum payments are due regardless of terminal utilization.  

The Company leases certain machinery, equipment (including railcars), buildings and office space under operating lease arrangements.  Total rent expense associated with these leases was $13,127 and $13,714 for the three months ended March 31, 2018 and 2017, respectively.

The Company is subject to a contingent consideration arrangement in the form of earnout payments, related to the purchase of SSP, which was accounted for as an acquisition of a group of assets.  The earnout payments are based on a fixed percentage of the cumulative product margin, less certain adjustments, generated by sales of Propel SSP® and other products incorporating the SSP technology for five years commencing on October 1, 2015.  The Company entered into an amendment to the SSP purchase agreement on December 17, 2015.  This amendment (a) extends the period during which the threshold aggregate earnout payments equal or exceed $45,000 from the two-year period ending October 1, 2017 until the three-year period ending October 1, 2018; and (b) sets the threshold aggregate earnout payments during the two-year period ending October 1, 2017 to equal or exceed $15,000 and granted the Seller a security interest in 51% of the equity interests in the SSP technology to secure such $15,000.  The amendment does not alter the final threshold earnout amount, which continues to be $195,000 (inclusive of the $45,000 payment, if any) by October 1, 2020.  In the event the Company does not make the final threshold earnout payment, the Company would continue to retain a portion of the ownership interest in the technology, the right to a portion of future profits and would no longer be obligated for future earnout payments.  It would also have the non-exclusive right to license the technology at a negotiated rate.  Estimated earnout payments are accrued and capitalized as part of the cost of the acquired technology from the SSP acquisition at the time a payment is probable and reasonably estimable.  Based upon current information, the Company has capitalized estimated earnout payments of $11,119, which includes total actual disbursements of $5,457 made through March 31, 2018.  The seller elected not to exercise the claw-back of the technology as of October 1, 2017 as a result of the aggregate earnout payments being less than the $15,000 threshold at that date.  As of March 31, 2018, the accrued balance of the earnout liability was $5,662, which represents the estimate of the total remaining aggregate earnout payments the Company expects to pay through October 1, 2020.    

Certain subsidiaries are defendants in lawsuits in which the alleged injuries are claimed to be silicosis-related and to have resulted, in whole or in part, from exposure to silica-containing products, allegedly including those sold by certain subsidiaries.  In the majority of cases, there are numerous other defendants.  In accordance with its insurance obligations, the defense of these actions has been tendered to and the cases are being defended by the subsidiaries’ insurance carriers.  Management believes that the Company’s substantial level of existing and available insurance coverage combined with various open indemnities is more than sufficient to cover any exposure to silicosis-related expenses.  An estimate of the possible loss, if any, cannot be made at this time.

The Company has been named as a defendant in several lawsuits in which alleged stockholders claim the Company and its directors violated securities laws in connection with the current proposed merger transaction (defined in Note 19).  The Company and its directors believe these allegations lack merit.  An estimate of the possible loss, if any, cannot be made at this time.  

v3.8.0.1
Transactions with Related Parties
3 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
Transactions with Related Parties

15.

Transactions with Related Parties

The Company pays American Securities LLC (“American Securities”), in accordance with its policy, for Board of Directors’ fees and Company-related expenses, including reimbursement for travel and lodging, market research, and other miscellaneous consulting fees and expenses.  Fees and expenses paid to American Securities were $47 and $86 in the three months ended March 31, 2018 and 2017, respectively.    

v3.8.0.1
Segment Reporting
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting

16.

Segment Reporting

The Company organizes its business into two reportable segments, Proppant Solutions and Industrial & Recreational Products.  The reportable segments are consistent with how management views the markets served by the Company and the financial information reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance.

The chief operating decision maker primarily evaluates an operating segment’s performance based on segment gross profit, which does not include any selling, general, and administrative costs or corporate costs.  

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

Proppant Solutions

 

$

242,182

 

 

$

140,993

 

Industrial & Recreational Products

 

 

31,156

 

 

 

31,590

 

Total revenues

 

 

273,338

 

 

 

172,583

 

 

 

 

 

 

 

 

 

 

Segment gross profit

 

 

 

 

 

 

 

 

Proppant Solutions

 

 

76,114

 

 

 

25,461

 

Industrial & Recreational Products

 

 

11,146

 

 

 

12,919

 

Total segment gross profit

 

 

87,260

 

 

 

38,380

 

 

 

 

 

 

 

 

 

 

Operating expenses excluded from segment gross profit

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

27,353

 

 

 

22,470

 

Depreciation, depletion, and amortization

 

 

17,225

 

 

 

17,246

 

Other operating income

 

 

(729

)

 

 

(1,060

)

Interest expense

 

 

13,783

 

 

 

12,537

 

Income (loss) before provision (benefit) for income taxes

 

$

29,628

 

 

$

(12,813

)

 

In the three months ended March 31, 2018, three customers exceeded 10% of revenues.  These customers accounted for 29%, 11%, and 10% of revenues, respectively, in the three months ended March 31, 2018.  In the three months ended March 31, 2017, three customers exceeded 10% of revenues.  These customers accounted for 24%, 12%, and 11%, respectively, of revenues in the three months ended March 31, 2017.  These are customers of the Company’s Proppant Solutions segment.  

v3.8.0.1
Goodwill and Intangibles
3 Months Ended
Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles

17.

Goodwill and Intangibles

As of March 31, 2018, the balance of Goodwill was $15,301, which represents goodwill related to acquisitions in the Company’s Industrial & Recreational Products segment.  As part of Company policy in its normal course of business, the Company performed a review of qualitative factors and concluded that, as of March 31, 2018, there were no events or changes in circumstances that would more likely than not result in an impairment of the carrying value of Goodwill.  

As of March 31, 2018, the balance of the FTSI supply agreement, net of accumulated amortization, was $29,659.  At March 31, 2018, the balance of the SSP intangible asset, net of accumulated amortization, was $63,225.  Please refer to Note 14 for additional information related to SSP.  

v3.8.0.1
Revenues from Contracts with Customers
3 Months Ended
Mar. 31, 2018
Revenue From Contract With Customer [Abstract]  
Revenues from Contracts with Customers

18.

Revenues from Contracts with Customers

The Company’s revenues are primarily derived from contracts with customers with terms typically ranging from one to eight years in length.

Variable Consideration

The Company’s products may be sold with rebates, discounts, take-or-pay provisions, or other features which are accounted for as variable consideration.  Rebates and discounts are not material and have not been separately disclosed.  

Contracts that contain take-or-pay provisions obligate customers to pay shortfall payments if the required volumes, as defined in the contracts, are not purchased.  Shortfall payments are recognized as revenues when the likelihood of the customer purchasing the minimum volume becomes remote, subject to renegotiation of the contract and collectability.  At March 31, 2018 and December 31, 2017, the Company had no accounts receivable related to shortfall payments.

Disaggregated Revenues

The following table presents the Company’s revenues disaggregated by reportable segment and by product line for the three months ended March 31, 2018 and 2017:

 

 

Three Months Ended March 31, 2018

 

 

 

Proppant Solutions

 

 

I&R

 

 

Total

 

Product lines

 

 

 

 

 

 

 

 

 

 

 

 

Raw sand

 

$

191,176

 

 

$

21,243

 

 

$

212,419

 

Value-added products

 

 

51,006

 

 

 

9,913

 

 

 

60,919

 

Total revenues

 

$

242,182

 

 

$

31,156

 

 

$

273,338

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

Proppant Solutions

 

 

I&R

 

 

Total

 

Product lines

 

 

 

 

 

 

 

 

 

 

 

 

Raw sand

 

$

102,834

 

 

$

20,230

 

 

$

123,064

 

Value-added products

 

 

38,159

 

 

 

11,360

 

 

 

49,519

 

Total revenues

 

$

140,993

 

 

$

31,590

 

 

$

172,583

 

 

v3.8.0.1
Proposed Merger with Unimin Corporation
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Proposed Merger with Unimin Corporation

19.

Proposed Merger with Unimin Corporation

On December 11, 2017, the Company entered into a merger agreement with Unimin Corporation (“Unimin”) and certain other parties with respect to the proposed combination of the businesses of Unimin and Fairmount Santrol.  The merger agreement provides that, upon the satisfaction or waiver of the conditions contained in the agreement, a direct wholly owned subsidiary of Unimin will be merged with and into Fairmount Santrol, with Fairmount Santrol surviving such merger and becoming a direct wholly owned subsidiary of Unimin (the “Merger”).  In accordance with the terms of the Merger agreement (“Merger Agreement”), Fairmount Santrol stockholders in the aggregate (including holders of certain Fairmount Santrol equity awards) will receive $170,000 in cash and approximately 35% of the common stock of Unimin, with SCR-Sibelco NV (“Sibelco”), the existing parent company of Unimin, owning the remaining 65%.  The Merger is subject to, among other things, approval by Fairmount Santrol’s stockholders, listing of Unimin’s common stock on the New York Stock Exchange (“NYSE”), and certain regulatory approvals.  The Company will hold a special meeting of its stockholders on May 25, 2018 (the “Special Meeting”) to vote to approve the Merger, among other items.  Upon completion of the Merger, the Company would delist and no longer trade on the NYSE.  The transaction is expected to close in mid-2018, subject to satisfaction of the closing conditions.  Were the transaction to close, Internal Revenue Code Sections 382 and 383 could limit post-merger annual utilization of U.S. federal net operating losses and tax credits.

The Merger Agreement contains certain conditional termination rights and, if exercised, the Company may be required to pay Unimin a termination fee of $52,000.

The Company has incurred $11,645 of expenses associated with the Merger, which are recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Income (Loss).  In the three months ended March 31, 2018, the Company has incurred $3,334 of such expenses, with the remaining balance primarily recorded in the fourth quarter of 2017.

For further information on the Merger, refer to the Merger Agreement, a copy of which was filed as Exhibit 2.1 to our Current Report on Form 8-K filed with the SEC on December 12, 2017.

v3.8.0.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements of Fairmount Santrol Holdings Inc. and its consolidated subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.  In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (which are of a normal, recurring nature) and disclosures necessary for a fair statement of the financial position, results of operations, comprehensive income, and cash flows of the reported interim periods.  The Condensed Consolidated Balance Sheets as of December 31, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP.  Certain reclassifications of prior year amounts have been made to conform to current year presentation.  Interim results are not necessarily indicative of the results to be expected for the full year or any other interim period.  These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as filed in the 2017 Annual Report on Form 10-K and notes thereto and information included elsewhere in this Quarterly Report on Form 10-Q.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Revisions of Previously-Issued Financial Statements

Revisions of Previously-Issued Financial Statements

The Company has revised previously-reported results to properly report stripping costs that were previously capitalized when incurred and amortized in subsequent periods.  Such costs incurred during the production phase of a mine are variable production costs that should be included in the costs of the inventory produced during the period the stripping costs are incurred.  The Company also revised the asset impairment charge for the quarter ended June 30, 2016 to correct its estimated fair value for an impaired mine property included in the determination of the impairment charge.  Additionally, the Company has included in the revised statements of cash flows a previously-omitted disclosure to show increase or decrease in accounts payable for additions to property, plant, and equipment.  The Company assessed the materiality of these misstatements on prior periods’ financial statements and concluded that these misstatements were not material, individually or in aggregate, to any previously-issued financial statements.  Refer to Note 2 for additional information.  

Revenues

Revenues

The Company derives its revenues by mining, manufacturing, and processing minerals that its customers purchase for various uses.  Revenues are measured by the amount of consideration the Company expects to receive in exchange for transferring its product.  The consideration the Company expects to receive is based on volumes and price of product as defined in the underlying contract.  Depending on the contract, this may include the cost of transportation and may be net of discounts and rebates.  In some instances, revenues also include a separate charge for transportation services the Company provides or arranges for customers.

On January 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606).  The adoption did not require a cumulative adjustment to opening retained earnings and did not have a material impact on revenues for the quarter ended March 31, 2018.  Revenues are recognized as each performance obligation within the contract is satisfied; this occurs with the transfer of control of the Company’s product in accordance with delivery methods as defined in the underlying contract.  Transfer of control to customers generally occurs when products leave the Company’s distribution terminals or, in the case of direct shipments, when products leave the Company’s production facilities, and customers arrange for shipping and handling of product to its final destination.  In those instances in which transfer of control occurs upon delivery to customers, the Company arranges for shipping and handling fees which are recorded as a cost of fulfillment.  Transportation costs to move product from the Company’s production facilities to its storage terminals are borne by the Company and capitalized into inventory.  These costs are included in cost of sales as the products are sold.  The Company’s contracts may include one or multiple distinct performance obligations.  Revenues are assigned to each performance obligation based on its relative standalone selling price, which is generally the contractually-stated price.  Refer to Note 18 for further details.

Accounts Receivable – Contract Balances

Accounts Receivable – Contract Balances

Accounts receivable as presented in the consolidated balance sheets are related to the Company’s contracts and are recorded when the right to consideration becomes unconditional at the amount management expects to collect.  Accounts receivable do not bear interest if paid when contractually due, and payments are generally due within thirty to forty-five days of invoicing.  Accounts receivable, net of allowance for doubtful accounts, are $179,234 and $156,916 as of March 31, 2018 and December 31, 2017, respectively.  The Company typically does not record contract assets, as the transfer of control of its products results in an unconditional right to receive consideration.

Deferred Revenues – Contract Balances

Deferred Revenues – Contract Balances

The Company enters into certain contracts with customers that include provisions requiring receipt of payment at the inception of the contract.  Deferred revenue is recorded when payment is received or due in advance of the performance obligation.  Changes in deferred revenue were as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

Beginning balance

 

$

8,963

 

Deferral of revenue

 

 

5,000

 

Recognition of unearned revenue

 

 

(678

)

Ending balance

 

$

13,285

 

 

At March 31, 2018 and December 31, 2017, respectively, deferred revenue balances of $9,346 and $5,660 were recorded as current liabilities.  At March 31, 2018 and December 31, 2017, respectively, deferred revenue balances of $3,939 and $3,303 were recorded in other long-term liabilities.  

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 – Revenue from Contracts with Customers (Topic 606).  Topic 606 supersedes the revenue recognition requirements in Topic 605 – Revenue Recognition and clarifies the principles for recognizing revenue and creates common revenue recognition guidance between GAAP and International Financial Reporting Standards.  Revenues are recognized when customers obtain control of promised goods or services and at an amount that reflects the consideration expected to be received in exchange for such goods or services.  In addition, the ASU requires disclosure of the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers.

On January 1, 2018, the Company adopted the ASU for all contracts which were not completed as of January 1, 2018 using the modified retrospective transition method.  The adoption did not require a cumulative adjustment to opening retained earnings and did not have a material impact on revenues for the quarter ended March 31, 2018.  See Note 18 for further details.

In March 2017, the FASB issued ASU No. 2017-07 – Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  The ASU requires that an employer report the service cost component in the same line item in the income statement as other compensation costs arising from services rendered by the pertinent employees during the period.  The ASU also requires only the service cost component to be eligible for capitalization when applicable.  The ASU is effective for annual reporting periods beginning after December 15, 2017 including interim periods within those annual periods with early adoption permitted.  The Company has adopted this ASU as of January 1, 2018, however, has determined it has no material impact on its consolidated financial statements and disclosures.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02 – Leases (Topic 842), which requires lessees to recognize assets and liabilities on their balance sheet related to the rights and obligations created by most leases, while continuing to recognize expense on their income statements over the lease term.  The ASU also requires disclosures designed to give financial statement users information regarding the amount, timing, and uncertainty of cash flows arising from leases.  The ASU is effective for fiscal years, and related interim periods, beginning after December 15, 2018 and early adoption is permitted, and mandates a modified retrospective transition method.  The Company believes the adoption of this ASU will likely have a material impact on its consolidated balance sheets for the recognition of certain operating leases as right-of-use assets and lease liabilities and is in the process of analyzing its lease portfolio and evaluating systems to comply with adoption.  

In August 2017, the FASB issued ASU No. 2017-12 – Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities.  The ASU expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements.  Subject matters addressed include risk component hedging, accounting for the hedged item in fair value hedges of interest rate risk, recognition and presentation of the effects of hedging instruments, amounts excluded from the assessment of hedge effectiveness, and effectiveness testing.  The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted.  All transition requirements and elections should be applied to existing hedging relationships as of the date of adoption and reflected as of the beginning of the fiscal year of adoption.  The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements and disclosures.

In February 2018, the FASB issued ASU No. 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  The FASB is providing ongoing guidance on certain accounting and tax effects of the legislation in the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted in December 2017.  Specifically, the ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from this legislation.  The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted.  The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized.  The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements and disclosures.

In March 2018, the FASB issued ASU no. 2018-05 Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.  This ASU amends certain SEC material in Topic 740 for the income tax accounting implication of the Tax Act.  This ASU adds guidance to the FASB Accounting Standards Codification regarding the Tax Act.  The additional guidance, among other things, includes accounting for income tax effects of the Tax Act during the measurement period and required disclosures of the income tax effects of the Tax Act under a measurement period approach.  The ASU is effective upon inclusion in the FASB Codification.  

v3.8.0.1
Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Summary of Changes in Deferred Revenue

Changes in deferred revenue were as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

Beginning balance

 

$

8,963

 

Deferral of revenue

 

 

5,000

 

Recognition of unearned revenue

 

 

(678

)

Ending balance

 

$

13,285

 

 

v3.8.0.1
Revisions of Previously-Reported Results (Tables)
3 Months Ended
Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]  
Impact of Revisions on Consolidated Financial Statements

The following tables show the impact of these revisions on all of the impacted line items from the Company’s (i) unaudited condensed consolidated financial statements for the three months ended March 31, 2017 and (ii) consolidated financial statements as of December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016, and 2015:

Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

172,583

 

 

$

-

 

 

$

172,583

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

131,752

 

 

 

2,451

 

 

 

134,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

22,470

 

 

 

-

 

 

 

22,470

 

Depreciation, depletion and amortization expense

 

 

19,442

 

 

 

(2,196

)

 

 

17,246

 

Other operating (income) expense

 

 

(1,060

)

 

 

-

 

 

 

(1,060

)

Income (loss) from operations

 

 

(21

)

 

 

(255

)

 

 

(276

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

12,537

 

 

 

-

 

 

 

12,537

 

Income (loss) before benefit from income taxes

 

 

(12,558

)

 

 

(255

)

 

 

(12,813

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(1,148

)

 

 

(12

)

 

 

(1,160

)

Net income (loss)

 

 

(11,410

)

 

 

(243

)

 

 

(11,653

)

Less: Net income attributable to the non-controlling interest

 

 

178

 

 

 

-

 

 

 

178

 

Net income (loss) attributable to Fairmount Santrol Holdings Inc.

 

$

(11,588

)

 

$

(243

)

 

$

(11,831

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

 

$

-

 

 

$

(0.05

)

Diluted

 

$

(0.05

)

 

$

-

 

 

$

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

223,739

 

 

 

 

 

223,739

 

Diluted

 

 

223,739

 

 

 

 

 

223,739

 

 

 

Consolidated Statement of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

959,795

 

 

$

-

 

 

$

959,795

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

659,758

 

 

 

11,443

 

 

 

671,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

113,240

 

 

 

-

 

 

 

113,240

 

Depreciation, depletion and amortization expense

 

 

79,144

 

 

 

(9,734

)

 

 

69,410

 

Other operating income

 

 

(1,072

)

 

 

-

 

 

 

(1,072

)

Income from operations

 

 

108,725

 

 

 

(1,709

)

 

 

107,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

56,408

 

 

 

-

 

 

 

56,408

 

Loss on debt extinguishment, net

 

 

2,898

 

 

 

-

 

 

 

2,898

 

Income before benefit from income taxes

 

 

49,419

 

 

 

(1,709

)

 

 

47,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(4,666

)

 

 

(1,049

)

 

 

(5,715

)

Net income

 

 

54,085

 

 

 

(660

)

 

 

53,425

 

Less: Net income attributable to the non-controlling interest

 

 

297

 

 

 

-

 

 

 

297

 

Net income attributable to Fairmount Santrol Holdings Inc.

 

$

53,788

 

 

$

(660

)

 

$

53,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

-

 

 

$

0.24

 

Diluted

 

$

0.23

 

 

$

-

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

223,993

 

 

 

 

 

223,993

 

Diluted

 

 

229,084

 

 

 

 

 

229,084

 

 

Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

535,013

 

 

$

-

 

 

$

535,013

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

459,714

 

 

 

9,803

 

 

 

469,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

79,140

 

 

 

-

 

 

 

79,140

 

Depreciation, depletion and amortization expense

 

 

72,276

 

 

 

(8,962

)

 

 

63,314

 

Goodwill and other asset impairments

 

 

93,148

 

 

 

(3,297

)

 

 

89,851

 

Restructuring charges

 

 

1,155

 

 

 

-

 

 

 

1,155

 

Other operating expense

 

 

8,899

 

 

 

-

 

 

 

8,899

 

Loss from operations

 

 

(179,319

)

 

 

2,456

 

 

 

(176,863

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

65,367

 

 

 

-

 

 

 

65,367

 

Gain on repurchase of debt, net

 

 

(5,110

)

 

 

-

 

 

 

(5,110

)

Other non-operating income

 

 

(10

)

 

 

-

 

 

 

(10

)

Loss before benefit from income taxes

 

 

(239,566

)

 

 

2,456

 

 

 

(237,110

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(99,441

)

 

 

10,811

 

 

 

(88,630

)

Net loss

 

 

(140,125

)

 

 

(8,355

)

 

 

(148,480

)

Less: Net income attributable to the non-controlling interest

 

 

67

 

 

 

-

 

 

 

67

 

Net loss attributable to Fairmount Santrol Holdings Inc.

 

$

(140,192

)

 

$

(8,355

)

 

$

(148,547

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.78

)

 

$

(0.05

)

 

$

(0.83

)

Diluted

 

$

(0.78

)

 

$

(0.05

)

 

$

(0.83

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

179,429

 

 

 

 

 

179,429

 

Diluted

 

 

179,429

 

 

 

 

 

179,429

 

 

Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands, except per share amounts)

 

Revenues

 

$

828,709

 

 

$

-

 

 

$

828,709

 

Cost of goods sold (excluding depreciation, depletion,

 

 

 

 

 

 

 

 

 

 

 

 

and amortization shown separately)

 

 

608,845

 

 

 

7,175

 

 

 

616,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

85,191

 

 

 

-

 

 

 

85,191

 

Depreciation, depletion and amortization expense

 

 

66,754

 

 

 

(6,348

)

 

 

60,406

 

Goodwill and other asset impairments

 

 

87,476

 

 

 

-

 

 

 

87,476

 

Restructuring charges

 

 

9,221

 

 

 

-

 

 

 

9,221

 

Other operating expense

 

 

1,357

 

 

 

(378

)

 

 

979

 

Loss from operations

 

 

(30,135

)

 

 

(449

)

 

 

(30,584

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

62,242

 

 

 

-

 

 

 

62,242

 

Other non-operating expense

 

 

1,492

 

 

 

-

 

 

 

1,492

 

Loss before benefit from income taxes

 

 

(93,869

)

 

 

(449

)

 

 

(94,318

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(1,939

)

 

 

(164

)

 

 

(2,103

)

Net loss

 

 

(91,930

)

 

 

(285

)

 

 

(92,215

)

Less: Net income attributable to the non-controlling interest

 

 

205

 

 

 

-

 

 

 

205

 

Net loss attributable to Fairmount Santrol Holdings Inc.

 

$

(92,135

)

 

$

(285

)

 

$

(92,420

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.57

)

 

$

-

 

 

$

(0.57

)

Diluted

 

$

(0.57

)

 

$

-

 

 

$

(0.57

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

161,297

 

 

 

 

 

161,297

 

Diluted

 

 

161,297

 

 

 

 

 

161,297

 

 

 

 

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(11,410

)

 

$

(243

)

 

$

(11,653

)

Other comprehensive income, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(39

)

 

 

-

 

 

 

(39

)

Pension obligations

 

 

61

 

 

 

-

 

 

 

61

 

Change in fair value of derivative agreements

 

 

1,613

 

 

 

-

 

 

 

1,613

 

Total other comprehensive income, before tax

 

 

1,635

 

 

 

-

 

 

 

1,635

 

Provision for income taxes related to items of other comprehensive income

 

 

1,316

 

 

 

-

 

 

 

1,316

 

Comprehensive loss, net of tax

 

 

(11,091

)

 

 

(243

)

 

 

(11,334

)

Comprehensive income attributable to the non-controlling interest

 

 

178

 

 

 

-

 

 

 

178

 

Comprehensive loss attributable to Fairmount Santrol Holdings Inc.

 

$

(11,269

)

 

$

(243

)

 

$

(11,512

)

 

 

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net income

 

$

54,085

 

 

$

(660

)

 

$

53,425

 

Other comprehensive income, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

555

 

 

 

-

 

 

 

555

 

Pension obligations

 

 

336

 

 

 

-

 

 

 

336

 

Change in fair value of derivative agreements

 

 

5,863

 

 

 

-

 

 

 

5,863

 

Total other comprehensive income, before tax

 

 

6,754

 

 

 

-

 

 

 

6,754

 

Provision for income taxes related to items of other comprehensive income

 

 

2,850

 

 

 

-

 

 

 

2,850

 

Comprehensive income, net of tax

 

 

57,989

 

 

 

(660

)

 

 

57,329

 

Comprehensive income attributable to the non-controlling interest

 

 

297

 

 

 

-

 

 

 

297

 

Comprehensive income attributable to Fairmount Santrol Holdings Inc.

 

$

57,692

 

 

$

(660

)

 

$

57,032

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(140,125

)

 

$

(8,355

)

 

$

(148,480

)

Other comprehensive loss, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(774

)

 

 

-

 

 

 

(774

)

Pension obligations

 

 

425

 

 

 

-

 

 

 

425

 

Change in fair value of derivative agreements

 

 

(3,018

)

 

 

-

 

 

 

(3,018

)

Total other comprehensive loss, before tax

 

 

(3,367

)

 

 

-

 

 

 

(3,367

)

Benefit from income taxes related to items of other comprehensive loss

 

 

(2,058

)

 

 

-

 

 

 

(2,058

)

Comprehensive loss, net of tax

 

 

(141,434

)

 

 

(8,355

)

 

 

(149,789

)

Comprehensive income attributable to the non-controlling interest

 

 

67

 

 

 

-

 

 

 

67

 

Comprehensive loss attributable to Fairmount Santrol Holdings Inc.

 

$

(141,501

)

 

$

(8,355

)

 

$

(149,856

)

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(91,930

)

 

$

(285

)

 

$

(92,215

)

Other comprehensive loss, before tax

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(5,051

)

 

 

-

 

 

 

(5,051

)

Pension obligations

 

 

222

 

 

 

-

 

 

 

222

 

Change in fair value of derivative agreements

 

 

(1,836

)

 

 

-

 

 

 

(1,836

)

Total other comprehensive loss, before tax

 

 

(6,665

)

 

 

-

 

 

 

(6,665

)

Benefit from income taxes related to items of other comprehensive loss

 

 

(1,780

)

 

 

-

 

 

 

(1,780

)

Comprehensive loss, net of tax

 

 

(96,815

)

 

 

(285

)

 

 

(97,100

)

Comprehensive income attributable to the non-controlling interest

 

 

205

 

 

 

-

 

 

 

205

 

Comprehensive loss attributable to Fairmount Santrol Holdings Inc.

 

$

(97,020

)

 

$

(285

)

 

$

(97,305

)

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

127,967

 

 

$

-

 

 

$

127,967

 

Accounts receivable, net of allowance for doubtful accounts of $2,003

 

 

 

 

 

 

 

 

 

 

 

 

at December 31, 2017

 

 

156,916

 

 

 

-

 

 

 

156,916

 

Inventories, net

 

 

70,528

 

 

 

-

 

 

 

70,528

 

Prepaid expenses and other assets

 

 

6,841

 

 

 

-

 

 

 

6,841

 

Refundable income taxes

 

 

924

 

 

 

-

 

 

 

924

 

Total current assets

 

 

363,176

 

 

 

-

 

 

 

363,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

785,513

 

 

 

(29,225

)

 

 

756,288

 

Deferred income taxes

 

 

350

 

 

 

-

 

 

 

350

 

Goodwill

 

 

15,301

 

 

 

-

 

 

 

15,301

 

Intangibles, net

 

 

93,268

 

 

 

-

 

 

 

93,268

 

Other assets

 

 

7,711

 

 

 

-

 

 

 

7,711

 

Total assets

 

$

1,265,319

 

 

$

(29,225

)

 

$

1,236,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

19,189

 

 

$

-

 

 

$

19,189

 

Accounts payable

 

 

70,633

 

 

 

-

 

 

 

70,633

 

Accrued expenses

 

 

74,007

 

 

 

-

 

 

 

74,007

 

Deferred revenue

 

 

5,660

 

 

 

-

 

 

 

5,660

 

Total current liabilities

 

 

169,489

 

 

 

-

 

 

 

169,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

729,741

 

 

 

-

 

 

 

729,741

 

Deferred income taxes

 

 

3,606

 

 

 

(1,177

)

 

 

2,429

 

Other long-term liabilities

 

 

42,189

 

 

 

-

 

 

 

42,189

 

Total liabilities

 

 

945,025

 

 

 

(1,177

)

 

 

943,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock: $0.01 par value, 100,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 0 at December 31, 2017

 

 

-

 

 

 

-

 

 

 

-

 

Common stock: $0.01 par value, 1,850,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued: 242,366 at December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 224,291 at December 31, 2017

 

 

2,423

 

 

 

-

 

 

 

2,423

 

Additional paid-in capital

 

 

299,912

 

 

 

-

 

 

 

299,912

 

Retained earnings

 

 

318,207

 

 

 

(28,048

)

 

 

290,159

 

Accumulated other comprehensive loss

 

 

(15,098

)

 

 

-

 

 

 

(15,098

)

Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock

 

 

605,444

 

 

 

(28,048

)

 

 

577,396

 

Less: Treasury stock at cost

 

 

 

 

 

 

 

 

 

 

 

 

Shares in treasury: 18,075 at December 31, 2017

 

 

(285,520

)

 

 

-

 

 

 

(285,520

)

Total equity attributable to Fairmount Santrol Holdings Inc.

 

 

319,924

 

 

 

(28,048

)

 

 

291,876

 

Non-controlling interest

 

 

370

 

 

 

-

 

 

 

370

 

Total equity

 

 

320,294

 

 

 

(28,048

)

 

 

292,246

 

Total liabilities and equity

 

$

1,265,319

 

 

$

(29,225

)

 

$

1,236,094

 

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

194,069

 

 

$

-

 

 

$

194,069

 

Accounts receivable, net of allowance for doubtful accounts of $3,055

 

 

 

 

 

 

 

 

 

 

 

 

at December 31, 2016

 

 

78,942

 

 

 

-

 

 

 

78,942

 

Inventories, net

 

 

52,650

 

 

 

-

 

 

 

52,650

 

Prepaid expenses and other assets

 

 

7,065

 

 

 

-

 

 

 

7,065

 

Refundable income taxes

 

 

21,077

 

 

 

-

 

 

 

21,077

 

Total current assets

 

 

353,803

 

 

 

-

 

 

 

353,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

727,735

 

 

 

(27,514

)

 

 

700,221

 

Deferred income taxes

 

 

1,244

 

 

 

-

 

 

 

1,244

 

Goodwill

 

 

15,301

 

 

 

-

 

 

 

15,301

 

Intangibles, net

 

 

95,341

 

 

 

-

 

 

 

95,341

 

Other assets

 

 

9,486

 

 

 

-

 

 

 

9,486

 

Total assets

 

$

1,202,910

 

 

$

(27,514

)

 

$

1,175,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

10,707

 

 

$

-

 

 

$

10,707

 

Accounts payable

 

 

37,263

 

 

 

-

 

 

 

37,263

 

Accrued expenses

 

 

26,110

 

 

 

-

 

 

 

26,110

 

Deferred revenue

 

 

75

 

 

 

-

 

 

 

75

 

Total current liabilities

 

 

74,155

 

 

 

-

 

 

 

74,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

832,306

 

 

 

-

 

 

 

832,306

 

Deferred income taxes

 

 

7,057

 

 

 

(128

)

 

 

6,929

 

Other long-term liabilities

 

 

38,272

 

 

 

-

 

 

 

38,272

 

Total liabilities

 

 

951,790

 

 

 

(128

)

 

 

951,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock: $0.01 par value, 100,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 0 at December 31, 2016

 

 

-

 

 

 

-

 

 

 

-

 

Common stock: $0.01 par value, 1,850,000 authorized shares

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued: 242,267 at December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding: 223,601 at December 31, 2016

 

 

2,422

 

 

 

-

 

 

 

2,422

 

Additional paid-in capital

 

 

297,649

 

 

 

-

 

 

 

297,649

 

Retained earnings

 

 

264,852

 

 

 

(27,386

)

 

 

237,466

 

Accumulated other comprehensive loss

 

 

(19,002

)

 

 

-

 

 

 

(19,002

)

Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock

 

 

545,921

 

 

 

(27,386

)

 

 

518,535

 

Less: Treasury stock at cost

 

 

 

 

 

 

 

 

 

 

 

 

Shares in treasury: 18,666 at December 31, 2016

 

 

(294,874

)

 

 

-

 

 

 

(294,874

)

Total equity attributable to Fairmount Santrol Holdings Inc.

 

 

251,047

 

 

 

(27,386

)

 

 

223,661

 

Non-controlling interest

 

 

73

 

 

 

-

 

 

 

73

 

Total equity

 

 

251,120

 

 

 

(27,386

)

 

 

223,734

 

Total liabilities and equity

 

$

1,202,910

 

 

$

(27,514

)

 

$

1,175,396

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(11,410

)

 

$

(243

)

 

$

(11,653

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

17,530

 

 

 

(2,196

)

 

 

15,334

 

Amortization

 

 

3,130

 

 

 

-

 

 

 

3,130

 

Reserve for doubtful accounts

 

 

(447

)

 

 

-

 

 

 

(447

)

Gain on disposal of fixed assets

 

 

(714

)

 

 

-

 

 

 

(714

)

Deferred income taxes and taxes payable

 

 

119

 

 

 

(12

)

 

 

107

 

Stock compensation expense

 

 

2,416

 

 

 

-

 

 

 

2,416

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(15,956

)

 

 

-

 

 

 

(15,956

)

Inventories

 

 

(9,038

)

 

 

-

 

 

 

(9,038

)

Prepaid expenses and other assets

 

 

(1,078

)

 

 

1,945

 

 

 

867

 

Refundable income taxes

 

 

1,945

 

 

 

(1,945

)

 

 

-

 

Accounts payable

 

 

12,981

 

 

 

-

 

 

 

12,981

 

Accrued expenses and deferred revenue

 

 

26,489

 

 

 

(26,489

)

 

 

-

 

Accrued expenses

 

 

-

 

 

 

9,744

 

 

 

9,744

 

Deferred revenue

 

 

-

 

 

 

16,969

 

 

 

16,969

 

Net cash provided by operating activities

 

 

25,967

 

 

 

(2,227

)

 

 

23,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of fixed assets

 

 

957

 

 

 

-

 

 

 

957

 

Capital expenditures and stripping costs

 

 

(7,025

)

 

 

2,451

 

 

 

(4,574

)

Other investing activities

 

 

(758

)

 

 

758

 

 

 

-

 

Net cash used in investing activities

 

 

(6,826

)

 

 

3,209

 

 

 

(3,617

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Payments on term loans

 

 

(2,170

)

 

 

-

 

 

 

(2,170

)

Payments on capital leases and other long-term debt

 

 

(817

)

 

 

-

 

 

 

(817

)

Proceeds from share-based awards exercised or distributed

 

 

486

 

 

 

-

 

 

 

486

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

-

 

 

 

(982

)

 

 

(982

)

Transactions with non-controlling interest

 

 

(1

)

 

 

-

 

 

 

(1

)

Net cash used in financing activities

 

 

(2,502

)

 

 

(982

)

 

 

(3,484

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment

 

 

(44

)

 

 

-

 

 

 

(44

)

Increase in cash and cash equivalents

 

 

16,595

 

 

 

-

 

 

 

16,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

194,069

 

 

 

-

 

 

 

194,069

 

End of period

 

$

210,664

 

 

$

-

 

 

$

210,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

11,717

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(1,601

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

4,175

 

 

 

 

 

 

 

 

 

Decrease in accounts payable for additions to property, plant, and equipment

 

 

(1,301

)

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net income

 

$

54,085

 

 

$

(660

)

 

$

53,425

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

71,397

 

 

 

(9,734

)

 

 

61,663

 

Amortization

 

 

12,784

 

 

 

-

 

 

 

12,784

 

Reserve for doubtful accounts

 

 

(387

)

 

 

-

 

 

 

(387

)

Write-off of deferred financing costs

 

 

389

 

 

 

-

 

 

 

389

 

Loss on debt extinguishment, gross

 

 

2,898

 

 

 

-

 

 

 

2,898

 

Inventory write-downs and reserves

 

 

1,266

 

 

 

-

 

 

 

1,266

 

Loss on disposal of fixed assets

 

 

846

 

 

 

-

 

 

 

846

 

Unrealized loss on interest rate swaps

 

 

14

 

 

 

-

 

 

 

14

 

Deferred income taxes and taxes payable

 

 

(5,634

)

 

 

(1,049

)

 

 

(6,683

)

Stock compensation expense

 

 

10,071

 

 

 

-

 

 

 

10,071

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(77,587

)

 

 

-

 

 

 

(77,587

)

Inventories

 

 

(19,144

)

 

 

-

 

 

 

(19,144

)

Prepaid expenses and other assets

 

 

(2,398

)

 

 

-

 

 

 

(2,398

)

Refundable income taxes

 

 

20,154

 

 

 

-

 

 

 

20,154

 

Accounts payable

 

 

18,575

 

 

 

-

 

 

 

18,575

 

Accrued expenses

 

 

51,874

 

 

 

-

 

 

 

51,874

 

Deferred revenue

 

 

5,585

 

 

 

-

 

 

 

5,585

 

Net cash provided by operating activities

 

 

144,788

 

 

 

(11,443

)

 

 

133,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of fixed assets

 

 

4,939

 

 

 

-

 

 

 

4,939

 

Capital expenditures and stripping costs

 

 

(69,573

)

 

 

11,443

 

 

 

(58,130

)

Leasehold interest payments for sand reserves

 

 

(30,000

)

 

 

-

 

 

 

(30,000

)

Earnout payments

 

 

(4,170

)

 

 

-

 

 

 

(4,170

)

Net cash used in investing activities

 

 

(98,804

)

 

 

11,443

 

 

 

(87,361

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from borrowings on term loan

 

 

689,500

 

 

 

-

 

 

 

689,500

 

Payments on term loans

 

 

(6,469

)

 

 

-

 

 

 

(6,469

)

Prepayments on term loans

 

 

(832,655

)

 

 

-

 

 

 

(832,655

)

Fees for debt restructure and repurchase of term loans

 

 

(2,790

)

 

 

-

 

 

 

(2,790

)

Payments on capital leases and other long-term debt

 

 

(4,752

)

 

 

-

 

 

 

(4,752

)

Proceeds from borrowing on revolving credit facility

 

 

50,000

 

 

 

-

 

 

 

50,000

 

Payments on revolving credit facility

 

 

(5,000

)

 

 

-

 

 

 

(5,000

)

Proceeds from option exercises

 

 

845

 

 

 

-

 

 

 

845

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

(1,321

)

 

 

-

 

 

 

(1,321

)

Net cash used in financing activities

 

 

(112,642

)

 

 

-

 

 

 

(112,642

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment

 

 

556

 

 

 

-

 

 

 

556

 

Decrease in cash and cash equivalents

 

 

(66,102

)

 

 

-

 

 

 

(66,102

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

194,069

 

 

 

-

 

 

 

194,069

 

End of period

 

$

127,967

 

 

$

-

 

 

$

127,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

59,498

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(19,278

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

10,988

 

 

 

 

 

 

 

 

 

Decrease in accounts payable for additions to property, plant, and equipment

 

 

(14,796

)

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(140,125

)

 

$

(8,355

)

 

$

(148,480

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

67,614

 

 

 

(8,962

)

 

 

58,652

 

Amortization

 

 

11,641

 

 

 

-

 

 

 

11,641

 

Reserve for doubtful accounts

 

 

1,851

 

 

 

-

 

 

 

1,851

 

Write-off of deferred financing costs

 

 

2,618

 

 

 

-

 

 

 

2,618

 

Gain on repurchase of debt, gross

 

 

(8,178

)

 

 

-

 

 

 

(8,178

)

Goodwill and other asset impairments

 

 

93,148

 

 

 

(3,297

)

 

 

89,851

 

Inventory write-downs and reserves

 

 

10,302

 

 

 

-

 

 

 

10,302

 

Loss on disposal of fixed assets

 

 

420

 

 

 

-

 

 

 

420

 

Deferred income taxes and taxes payable

 

 

(82,732

)

 

 

10,811

 

 

 

(71,921

)

Stock compensation expense

 

 

8,870

 

 

 

-

 

 

 

8,870

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(4,385

)

 

 

-

 

 

 

(4,385

)

Inventories

 

 

7,543

 

 

 

-

 

 

 

7,543

 

Prepaid expenses and other assets

 

 

11,496

 

 

 

-

 

 

 

11,496

 

Refundable income taxes

 

 

5,428

 

 

 

-

 

 

 

5,428

 

Accounts payable

 

 

4,196

 

 

 

-

 

 

 

4,196

 

Accrued expenses

 

 

11,718

 

 

 

-

 

 

 

11,718

 

Deferred revenue

 

 

75

 

 

 

-

 

 

 

75

 

Net cash provided by (used in) operating activities

 

 

1,500

 

 

 

(9,803

)

 

 

(8,303

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of fixed assets

 

 

5,670

 

 

 

-

 

 

 

5,670

 

Capital expenditures and stripping costs

 

 

(30,597

)

 

 

9,803

 

 

 

(20,794

)

Earnout payments

 

 

(1,287

)

 

 

-

 

 

 

(1,287

)

Net cash used in investing activities

 

 

(26,214

)

 

 

9,803

 

 

 

(16,411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Payments on term loans

 

 

(10,840

)

 

 

-

 

 

 

(10,840

)

Prepayments on term loans

 

 

(155,926

)

 

 

-

 

 

 

(155,926

)

Repurchase of term loans

 

 

(216,000

)

 

 

-

 

 

 

(216,000

)

Fees for debt restructure and repurchase of term loans

 

 

(450

)

 

 

-

 

 

 

(450

)

Payments on capital leases and other long-term debt

 

 

(5,947

)

 

 

-

 

 

 

(5,947

)

Proceeds from option exercises

 

 

6,438

 

 

 

-

 

 

 

6,438

 

Proceeds from primary stock offering

 

 

439,556

 

 

 

-

 

 

 

439,556

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

(8,092

)

 

 

-

 

 

 

(8,092

)

Tax effect of share-based awards exercised, forfeited, or expired

 

 

(1,100

)

 

 

-

 

 

 

(1,100

)

Transactions with non-controlling interest

 

 

(842

)

 

 

-

 

 

 

(842

)

Net cash provided by financing activities

 

 

46,797

 

 

 

-

 

 

 

46,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents related to assets classified as held-for-sale

 

 

1,376

 

 

 

-

 

 

 

1,376

 

Foreign currency adjustment

 

 

(876

)

 

 

-

 

 

 

(876

)

Increase in cash and cash equivalents

 

 

22,583

 

 

 

-

 

 

 

22,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

171,486

 

 

 

-

 

 

 

171,486

 

End of period

 

$

194,069

 

 

$

-

 

 

$

194,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

60,833

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(21,311

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

-

 

 

 

 

 

 

 

 

 

Increase in accounts payable for additions to property, plant, and equipment

 

 

8,100

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

As Reported

 

 

Adjustments

 

 

As Corrected

 

 

 

(in thousands)

 

Net loss

 

$

(91,930

)

 

$

(285

)

 

$

(92,215

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

62,218

 

 

 

(6,348

)

 

 

55,870

 

Amortization

 

 

11,416

 

 

 

-

 

 

 

11,416

 

Reserve for doubtful accounts

 

 

1,968

 

 

 

-

 

 

 

1,968

 

Write-off of deferred financing costs

 

 

864

 

 

 

-

 

 

 

864

 

Goodwill and other asset impairments

 

 

76,038

 

 

 

-

 

 

 

76,038

 

Non-cash restructuring charges

 

 

1,162

 

 

 

-

 

 

 

1,162

 

Inventory write-downs and reserves

 

 

1,591

 

 

 

-

 

 

 

1,591

 

Loss on disposal of fixed assets

 

 

8,712

 

 

 

-

 

 

 

8,712

 

Unrealized loss on interest rate swaps

 

 

49

 

 

 

-

 

 

 

49

 

Deferred income taxes and taxes payable

 

 

20,983

 

 

 

(164

)

 

 

20,819

 

Stock compensation expense

 

 

4,525

 

 

 

-

 

 

 

4,525

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

127,718

 

 

 

-

 

 

 

127,718

 

Inventories

 

 

59,527

 

 

 

-

 

 

 

59,527

 

Prepaid expenses and other assets

 

 

23,234

 

 

 

-

 

 

 

23,234

 

Refundable income taxes

 

 

(26,506

)

 

 

-

 

 

 

(26,506

)

Accounts payable

 

 

(38,698

)

 

 

-

 

 

 

(38,698

)

Accrued expenses

 

 

(6,051

)

 

 

-

 

 

 

(6,051

)

Net cash provided by operating activities

 

 

236,820

 

 

 

(6,797

)

 

 

230,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures and stripping costs

 

 

(113,750

)

 

 

6,797

 

 

 

(106,953

)

Other investing activities

 

 

(250

)

 

 

-

 

 

 

(250

)

Net cash used in investing activities

 

 

(114,000

)

 

 

6,797

 

 

 

(107,203

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Payments on term loans

 

 

(13,532

)

 

 

-

 

 

 

(13,532

)

Payments on capital leases and other long-term debt

 

 

(6,975

)

 

 

-

 

 

 

(6,975

)

Proceeds from option exercises

 

 

1,767

 

 

 

-

 

 

 

1,767

 

Tax payments for withholdings on share-based awards exercised or distributed

 

 

(826

)

 

 

-

 

 

 

(826

)

Tax effect of share-based awards exercised, forfeited, or expired

 

 

(1,472

)

 

 

-

 

 

 

(1,472

)

Transactions with non-controlling interest

 

 

(301

)

 

 

-

 

 

 

(301

)

Other financing activities

 

 

(4,578

)

 

 

-

 

 

 

(4,578

)

Net cash used in financing activities

 

 

(25,917

)

 

 

-

 

 

 

(25,917

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents related to assets classified as held-for-sale

 

 

(1,376

)

 

 

-

 

 

 

(1,376

)

Foreign currency adjustment

 

 

(964

)

 

 

-

 

 

 

(964

)

Increase in cash and cash equivalents

 

 

94,563

 

 

 

-

 

 

 

94,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

76,923

 

 

 

-

 

 

 

76,923

 

End of period

 

$

171,486

 

 

$

-

 

 

$

171,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid, net of capitalized interest

 

$

61,395

 

 

 

 

 

 

 

 

 

Income taxes refunded

 

 

(19,898

)

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment purchased under capital leases

 

$

4,552

 

 

 

 

 

 

 

 

 

Increase in accounts payable for additions to property, plant, and equipment

 

 

652

 

 

 

 

 

 

 

 

 

 

v3.8.0.1
Inventories, net (Tables)
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Schedule of Inventories

At March 31, 2018 and December 31, 2017, inventories consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Raw materials

 

$

8,368

 

 

$

7,412

 

Work-in-process

 

 

10,303

 

 

 

14,819

 

Finished goods

 

 

46,848

 

 

 

48,931

 

 

 

 

65,519

 

 

 

71,162

 

Less: LIFO reserve

 

 

(624

)

 

 

(634

)

Inventories, net

 

$

64,895

 

 

$

70,528

 

 

v3.8.0.1
Property, Plant, and Equipment, net (Tables)
3 Months Ended
Mar. 31, 2018
Property Plant And Equipment [Abstract]  
Schedule of Property, Plant, and Equipment

At March 31, 2018 and December 31, 2017, property, plant, and equipment consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Land and improvements

 

$

83,491

 

 

$

85,012

 

Mineral reserves and mine development

 

 

228,356

 

 

 

222,271

 

Machinery and equipment

 

 

601,745

 

 

 

590,584

 

Buildings and improvements

 

 

186,631

 

 

 

186,466

 

Furniture, fixtures, and other

 

 

3,492

 

 

 

3,478

 

Construction in progress

 

 

81,125

 

 

 

54,661

 

 

 

 

1,184,840

 

 

 

1,142,472

 

Accumulated depletion and depreciation

 

 

(401,411

)

 

 

(386,184

)

Property, plant, and equipment, net

 

$

783,429

 

 

$

756,288

 

 

v3.8.0.1
Long-Term Debt (Tables)
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt

At March 31, 2018 and December 31, 2017, long-term debt consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Term Loan B

 

$

685,184

 

 

$

688,990

 

Industrial Revenue Bond

 

 

10,000

 

 

 

10,000

 

ABL Revolver, Revolving Credit Facility, and other

 

 

35,056

 

 

 

45,073

 

Capital leases, net

 

 

8,738

 

 

 

9,884

 

Deferred financing costs, net

 

 

(4,738

)

 

 

(5,017

)

 

 

 

734,240

 

 

 

748,930

 

Less: current portion

 

 

(18,924

)

 

 

(19,189

)

Long-term debt including leases

 

$

715,316

 

 

$

729,741

 

 

v3.8.0.1
Accrued Expenses (Tables)
3 Months Ended
Mar. 31, 2018
Payables And Accruals [Abstract]  
Summary of Accrued Expenses

At March 31, 2018 and December 31, 2017, accrued expenses consisted of the following:

 

 

 

March 31, 2018

 

 

December 31, 2017

 

Accrued payroll and fringe benefits

 

$

8,526

 

 

$

11,233

 

Accrued bonus

 

 

3,543

 

 

 

37,166

 

Accrued income taxes

 

 

386

 

 

 

504

 

Accrued real estate taxes

 

 

4,617

 

 

 

5,098

 

Accrued leasehold interest payments

 

 

10,000

 

 

 

10,000

 

Other accrued expenses

 

 

14,588

 

 

 

10,006

 

Accrued expenses

 

$

41,660

 

 

$

74,007

 

 

v3.8.0.1
Earnings (Loss) per Share (Tables)
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Earnings (Loss) per Share

The table below shows the computation of basic and diluted earnings (loss) per share for the three months ended March 31, 2018 and 2017, respectively:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Numerator:

 

 

 

 

 

 

 

 

Net income (loss) attributable to Fairmount Santrol Holdings Inc.

 

$

28,753

 

 

$

(11,831

)

Denominator:

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

224,484

 

 

 

223,739

 

Dilutive effect of employee stock options, RSUs, and PRSUs

 

 

4,456

 

 

 

-

 

Diluted weighted average shares outstanding

 

 

228,940

 

 

 

223,739

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share – basic

 

$

0.13

 

 

$

(0.05

)

Earnings (loss) per common share – diluted

 

$

0.13

 

 

$

(0.05

)

 

v3.8.0.1
Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2018
Derivatives, Fair Value [Line Items]  
Fair Values of Derivative Instrument and Respective Classification in Condensed Consolidated Balance Sheets

The following table summarizes the fair values and the respective classification in the Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017:

 

 

 

 

 

Assets (Liabilities)

 

Interest Rate Swap Agreements

 

Balance Sheet Classification

 

March 31, 2018

 

 

December 31, 2017

 

Non-qualifying cash flow hedge

 

Other long-term liabilities

 

$

(1,394

)

 

$

(3,208

)

 

 

 

 

$

(1,394

)

 

$

(3,208

)

 

Designated as Cash Flow Hedges [Member]  
Derivatives, Fair Value [Line Items]  
Schedule of Interest Expense Recognized on Derivative

The Company recognized in interest expense the following in the three months ended March 31, 2018 and 2017, respectively, in order to represent the ineffective portion of interest rate swap agreements designated as hedges and interest rate swap agreements no longer qualifying for hedge accounting treatment:

 

Derivatives Designated as

 

Location of (Gain) Loss

 

 

 

 

 

 

 

 

ASC 815-20 Cash Flow

 

Recognized in Income on

 

Three Months Ended March 31,

 

Hedging Relationships

 

Derivative (Ineffective Portion)

 

2018

 

 

2017

 

Interest rate swap agreements

 

Interest expense

 

$

-

 

 

$

(77

)

 

 

 

 

$

-

 

 

$

(77

)

 

Derivatives Not Designated as Cash Flow Hedges [Member]  
Derivatives, Fair Value [Line Items]  
Schedule of Interest Expense Recognized on Derivative

 

Derivatives Not Designated

 

 

 

 

 

 

 

 

 

 

as ASC 815-20 Cash Flow

 

Location of (Gain) Loss

 

Three Months Ended March 31,

 

Hedging Relationships

 

Recognized in Income on Derivative

 

2018

 

 

2017

 

Interest rate swap agreements

 

Interest expense

 

$

(99

)

 

$

-

 

 

 

 

 

$

(99

)

 

$

-

 

 

v3.8.0.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Fair Value for Long-term Debt

The following table presents the fair value as of March 31, 2018 and December 31, 2017, respectively, for the Company’s long-term debt:

 

 

 

Quoted Prices

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

Long-Term Debt Fair Value Measurements

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan B

 

$

-

 

 

$

704,320

 

 

$

-

 

 

$

704,320

 

 

 

$

-

 

 

$

704,320

 

 

$

-

 

 

$

704,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan B

 

$

-

 

 

$

708,750

 

 

$

-

 

 

$

708,750

 

 

 

$

-

 

 

$

708,750

 

 

$

-

 

 

$

708,750

 

 

Financial Instruments Carried at Fair Value

The following table presents the amounts carried at fair value as of March 31, 2018 and December 31, 2017 for the Company’s other financial instruments.  Fair value of interest rate swap agreements is based on the present value of the expected future cash flows, considering the risks involved, and using discount rates appropriate for the maturity date.  These are determined using Level 2 inputs.

 

 

 

Quoted Prices

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

Recurring Fair Value Measurements

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements

 

$

-

 

 

$

(1,394

)

 

$

-

 

 

$

(1,394

)

 

 

$

-

 

 

$

(1,394

)

 

$

-

 

 

$

(1,394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements

 

$

-

 

 

$

(3,208

)

 

$

-

 

 

$

(3,208

)

 

 

$

-

 

 

$

(3,208

)

 

$

-

 

 

$

(3,208

)

 

v3.8.0.1
Common Stock and Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Share Based Compensation Activity of Option and Non-option Instruments

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

Performance

 

 

Weighted

 

 

 

 

 

 

 

Average Exercise

 

 

Restricted

 

 

Average Price at

 

 

Restricted

 

 

Average Price at

 

 

 

Options

 

 

Price, Options

 

 

Stock Units

 

 

RSU Issue Date

 

 

Stock Units

 

 

PRSU Issue Date

 

Outstanding at December 31, 2017

 

 

13,393

 

 

$

6.63

 

 

 

1,517

 

 

$

6.63

 

 

 

584

 

 

$

4.10

 

Granted

 

 

-

 

 

 

-

 

 

 

1,581

 

 

 

4.56

 

 

 

-

 

 

 

-

 

Exercised

 

 

(355

)

 

 

2.58

 

 

 

(280

)

 

 

4.65

 

 

 

-

 

 

 

-

 

Forfeited

 

 

(9

)

 

 

10.70

 

 

 

(6

)

 

 

10.03

 

 

 

-

 

 

 

-

 

Expired

 

 

(4

)

 

 

16.00

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Outstanding at March 31, 2018

 

 

13,025

 

 

$

6.73

 

 

 

2,812

 

 

$

5.67

 

 

 

584

 

 

$

4.10

 

 

v3.8.0.1
Defined Benefit Plans (Tables)
3 Months Ended
Mar. 31, 2018
Net Periodic Benefit Cost [Member]  
Summary of Defined Benefit Plans

Net periodic benefit (income) cost recognized for Company defined benefit pension plans for the three months ended March 31, 2018 and 2017 is as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Components of net periodic benefit (income) cost

 

 

 

 

 

 

 

 

Interest cost

 

 

84

 

 

 

89

 

Expected return on plan assets

 

 

(141

)

 

 

(127

)

Amortization of net actuarial loss

 

 

56

 

 

 

61

 

Net periodic benefit (income) cost

 

$

(1

)

 

$

23

 

 

v3.8.0.1
Accumulated Other Comprehensive Loss (Tables)
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss attributable to Fairmount Santrol Holdings Inc. at March 31, 2018 and December 31, 2017 were as follows:

 

 

 

March 31, 2018

 

 

 

Gross

 

 

Tax Effect

 

 

Net Amount

 

Foreign currency translation

 

$

(10,233

)

 

$

1,546

 

 

$

(8,687

)

Additional pension liability

 

 

(3,193

)

 

 

1,220

 

 

 

(1,973

)

Unrealized gain (loss) on interest rate hedges

 

 

(6,214

)

 

 

2,383

 

 

 

(3,831

)

 

 

$

(19,640

)

 

$

5,149

 

 

$

(14,491

)

 

 

 

December 31, 2017

 

 

 

Gross

 

 

Tax Effect

 

 

Net Amount

 

Foreign currency translation

 

$

(10,249

)

 

$

1,849

 

 

$

(8,400

)

Additional pension liability

 

 

(3,253

)

 

 

1,220

 

 

 

(2,033

)

Unrealized gain (loss) on interest rate hedges

 

 

(7,283

)

 

 

2,618

 

 

 

(4,665

)

 

 

$

(20,785

)

 

$

5,687

 

 

$

(15,098

)

 

Changes in Accumulated Other Comprehensive Loss by Component

The following table presents the changes in accumulated other comprehensive loss by component for the three months ended March 31, 2018:

 

 

 

Three Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

Foreign

 

 

Additional

 

 

gain (loss)

 

 

 

 

 

 

 

currency

 

 

pension

 

 

on interest

 

 

 

 

 

 

 

translation

 

 

liability

 

 

rate hedges

 

 

Total

 

Beginning balance

 

$

(8,400

)

 

$

(2,033

)

 

$

(4,665

)

 

$

(15,098

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

before reclassifications

 

 

(287

)

 

 

-

 

 

 

-

 

 

 

(287

)

Amounts reclassified from accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other comprehensive loss

 

 

-

 

 

 

60

 

 

 

834

 

 

 

894

 

Ending balance

 

$

(8,687

)

 

$

(1,973

)

 

$

(3,831

)

 

$

(14,491

)

 

Reclassifications out of Accumulated Other Comprehensive Loss

The following table presents the reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2018:

 

 

 

Amount reclassified

 

 

 

 

 

from accumulated

 

 

 

Details about accumulated other

 

other comprehensive

 

 

Affected line item on

comprehensive loss

 

loss

 

 

the statement of income (loss)

Change in fair value of derivative swap agreements

 

 

 

 

 

 

Interest rate hedging contracts

 

$

1,069

 

 

Interest expense

Tax effect

 

 

(235

)

 

Tax expense

 

 

$

834

 

 

Net of tax

Amortization of pension obligations

 

 

 

 

 

 

Actuarial losses

 

$

60

 

 

Cost of sales

Total reclassifications for the period

 

$

894

 

 

Net of tax

 

v3.8.0.1
Segment Reporting (Tables)
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Summarized Financial Information for Reportable Segments

The chief operating decision maker primarily evaluates an operating segment’s performance based on segment gross profit, which does not include any selling, general, and administrative costs or corporate costs.  

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

Proppant Solutions

 

$

242,182

 

 

$

140,993

 

Industrial & Recreational Products

 

 

31,156

 

 

 

31,590

 

Total revenues

 

 

273,338

 

 

 

172,583

 

 

 

 

 

 

 

 

 

 

Segment gross profit

 

 

 

 

 

 

 

 

Proppant Solutions

 

 

76,114

 

 

 

25,461

 

Industrial & Recreational Products

 

 

11,146

 

 

 

12,919

 

Total segment gross profit

 

 

87,260

 

 

 

38,380

 

 

 

 

 

 

 

 

 

 

Operating expenses excluded from segment gross profit

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

27,353

 

 

 

22,470

 

Depreciation, depletion, and amortization

 

 

17,225

 

 

 

17,246

 

Other operating income

 

 

(729

)

 

 

(1,060

)

Interest expense

 

 

13,783

 

 

 

12,537

 

Income (loss) before provision (benefit) for income taxes

 

$

29,628

 

 

$

(12,813

)

 

v3.8.0.1
Revenues from Contracts with Customers (Tables)
3 Months Ended
Mar. 31, 2018
Revenue From Contract With Customer [Abstract]  
Summary of Revenues Disaggregated by Reported Segment and by Product Line

The following table presents the Company’s revenues disaggregated by reportable segment and by product line for the three months ended March 31, 2018 and 2017:

 

 

Three Months Ended March 31, 2018

 

 

 

Proppant Solutions

 

 

I&R

 

 

Total

 

Product lines

 

 

 

 

 

 

 

 

 

 

 

 

Raw sand

 

$

191,176

 

 

$

21,243

 

 

$

212,419

 

Value-added products

 

 

51,006

 

 

 

9,913

 

 

 

60,919

 

Total revenues

 

$

242,182

 

 

$

31,156

 

 

$

273,338

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

Proppant Solutions

 

 

I&R

 

 

Total

 

Product lines

 

 

 

 

 

 

 

 

 

 

 

 

Raw sand

 

$

102,834

 

 

$

20,230

 

 

$

123,064

 

Value-added products

 

 

38,159

 

 

 

11,360

 

 

 

49,519

 

Total revenues

 

$

140,993

 

 

$

31,590

 

 

$

172,583

 

 

v3.8.0.1
Significant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Significant Of Accounting Policies [Line Items]    
Accounts receivable, net of allowance for doubtful accounts $ 179,234 $ 156,916
Deferred revenue 13,285 8,963
Current Liabilities [Member]    
Significant Of Accounting Policies [Line Items]    
Deferred revenue 9,346 5,660
Other Long-Term Liabilities [Member]    
Significant Of Accounting Policies [Line Items]    
Deferred revenue $ 3,939 $ 3,303
Minimum [Member]    
Significant Of Accounting Policies [Line Items]    
Accounts receivable payment terms 30 days  
Maximum [Member]    
Significant Of Accounting Policies [Line Items]    
Accounts receivable payment terms 45 days  
v3.8.0.1
Significant Accounting Policies - Summary of Changes in Deferred Revenue (Detail)
$ in Thousands
3 Months Ended
Mar. 31, 2018
USD ($)
Accounting Policies [Abstract]  
Beginning balance $ 8,963
Deferral of revenue 5,000
Recognition of unearned revenue (678)
Ending balance $ 13,285
v3.8.0.1
Revisions of Previously-Issued Financial Statements - Impact of Revisions on Consolidated Statements of Income (Loss) (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Revenues $ 273,338 $ 172,583      
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately) 186,078 134,203      
Operating expenses          
Selling, general and administrative expenses 27,353 22,470      
Depreciation, depletion and amortization expense 17,225 17,246      
Other operating (income) expense (729) (1,060)      
Income (loss) from operations 43,411 (276)      
Interest expense 13,783 12,537      
Income (loss) before provision (benefit) for income taxes 29,628 (12,813)      
Provision (benefit) for income taxes 872 (1,160)      
Net income (loss) 28,756 (11,653)      
Less: Net income attributable to the non-controlling interest 3 178      
Net income (loss) attributable to Fairmount Santrol Holdings Inc. $ 28,753 $ (11,831)      
Earnings (loss) per share          
Basic $ 0.13 $ (0.05)      
Diluted $ 0.13 $ (0.05)      
Weighted average number of shares outstanding          
Basic 224,484 223,739      
Diluted 228,940 223,739      
ASC 250 [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Revenues   $ 172,583 $ 959,795 $ 535,013 $ 828,709
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately)   134,203 671,201 469,517 616,020
Operating expenses          
Selling, general and administrative expenses   22,470 113,240 79,140 85,191
Depreciation, depletion and amortization expense   17,246 69,410 63,314 60,406
Other operating (income) expense   (1,060) (1,072) 8,899 979
Goodwill and other asset impairments       89,851 87,476
Restructuring charges       1,155 9,221
Income (loss) from operations   (276) 107,016 (176,863) (30,584)
Interest expense   12,537 56,408 65,367 62,242
Loss on debt extinguishment, net     2,898    
Gain on repurchase of debt, net       (5,110)  
Other non-operating income       (10) 1,492
Income (loss) before provision (benefit) for income taxes   (12,813) 47,710 (237,110) (94,318)
Provision (benefit) for income taxes   (1,160) (5,715) (88,630) (2,103)
Net income (loss)   (11,653) 53,425 (148,480) (92,215)
Less: Net income attributable to the non-controlling interest   178 297 67 205
Net income (loss) attributable to Fairmount Santrol Holdings Inc.   $ (11,831) $ 53,128 $ (148,547) $ (92,420)
Earnings (loss) per share          
Basic   $ (0.05) $ 0.24 $ (0.83) $ (0.57)
Diluted   $ (0.05) $ 0.23 $ (0.83) $ (0.57)
Weighted average number of shares outstanding          
Basic   223,739 223,993 179,429 161,297
Diluted   223,739 229,084 179,429 161,297
ASC 250 [Member] | As Reported on 2017 Form 10-K/Q [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Revenues   $ 172,583 $ 959,795 $ 535,013 $ 828,709
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately)   131,752 659,758 459,714 608,845
Operating expenses          
Selling, general and administrative expenses   22,470 113,240 79,140 85,191
Depreciation, depletion and amortization expense   19,442 79,144 72,276 66,754
Other operating (income) expense   (1,060) (1,072) 8,899 1,357
Goodwill and other asset impairments       93,148 87,476
Restructuring charges       1,155 9,221
Income (loss) from operations   (21) 108,725 (179,319) (30,135)
Interest expense   12,537 56,408 65,367 62,242
Loss on debt extinguishment, net     2,898    
Gain on repurchase of debt, net       (5,110)  
Other non-operating income       (10) 1,492
Income (loss) before provision (benefit) for income taxes   (12,558) 49,419 (239,566) (93,869)
Provision (benefit) for income taxes   (1,148) (4,666) (99,441) (1,939)
Net income (loss)   (11,410) 54,085 (140,125) (91,930)
Less: Net income attributable to the non-controlling interest   178 297 67 205
Net income (loss) attributable to Fairmount Santrol Holdings Inc.   $ (11,588) $ 53,788 $ (140,192) $ (92,135)
Earnings (loss) per share          
Basic   $ (0.05) $ 0.24 $ (0.78) $ (0.57)
Diluted   $ (0.05) $ 0.23 $ (0.78) $ (0.57)
Weighted average number of shares outstanding          
Basic   223,739 223,993 179,429 161,297
Diluted   223,739 229,084 179,429 161,297
ASC 250 [Member] | Adjustments [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately)   $ 2,451 $ 11,443 $ 9,803 $ 7,175
Operating expenses          
Depreciation, depletion and amortization expense   (2,196) (9,734) (8,962) (6,348)
Other operating (income) expense         (378)
Goodwill and other asset impairments       (3,297)  
Income (loss) from operations   (255) (1,709) 2,456 (449)
Income (loss) before provision (benefit) for income taxes   (255) (1,709) 2,456 (449)
Provision (benefit) for income taxes   (12) (1,049) 10,811 (164)
Net income (loss)   (243) (660) (8,355) (285)
Net income (loss) attributable to Fairmount Santrol Holdings Inc.   $ (243) $ (660) $ (8,355) $ (285)
Earnings (loss) per share          
Basic       $ (0.05)  
Diluted       $ (0.05)  
v3.8.0.1
Revisions of Previously-Issued Financial Statements - Impact of Revisions on Consolidated Statements of Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss) $ 28,756 $ (11,653)      
Other comprehensive income (loss), before tax          
Foreign currency translation 16 (39)      
Pension obligations 60 61      
Change in fair value of derivative agreements 1,069 1,613      
Total other comprehensive income, before tax 1,145 1,635      
Provision for income taxes related to items of other comprehensive income (loss) 538 1,316      
Comprehensive income (loss), net of tax 29,363 (11,334)      
Comprehensive income attributable to the non-controlling interest 3 178      
Comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc. $ 29,360 (11,512)      
ASC 250 [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss)   (11,653) $ 53,425 $ (148,480) $ (92,215)
Other comprehensive income (loss), before tax          
Foreign currency translation   (39) 555 (774) (5,051)
Pension obligations   61 336 425 222
Change in fair value of derivative agreements   1,613 5,863 (3,018) (1,836)
Total other comprehensive income, before tax   1,635 6,754 (3,367) (6,665)
Provision for income taxes related to items of other comprehensive income (loss)   1,316 2,850 (2,058) (1,780)
Comprehensive income (loss), net of tax   (11,334) 57,329 (149,789) (97,100)
Comprehensive income attributable to the non-controlling interest   178 297 67 205
Comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc.   (11,512) 57,032 (149,856) (97,305)
ASC 250 [Member] | As Reported on 2017 Form 10-K/Q [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss)   (11,410) 54,085 (140,125) (91,930)
Other comprehensive income (loss), before tax          
Foreign currency translation   (39) 555 (774) (5,051)
Pension obligations   61 336 425 222
Change in fair value of derivative agreements   1,613 5,863 (3,018) (1,836)
Total other comprehensive income, before tax   1,635 6,754 (3,367) (6,665)
Provision for income taxes related to items of other comprehensive income (loss)   1,316 2,850 (2,058) (1,780)
Comprehensive income (loss), net of tax   (11,091) 57,989 (141,434) (96,815)
Comprehensive income attributable to the non-controlling interest   178 297 67 205
Comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc.   (11,269) 57,692 (141,501) (97,020)
ASC 250 [Member] | Adjustments [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss)   (243) (660) (8,355) (285)
Other comprehensive income (loss), before tax          
Comprehensive income (loss), net of tax   (243) (660) (8,355) (285)
Comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc.   $ (243) $ (660) $ (8,355) $ (285)
v3.8.0.1
Revisions of Previously-Issued Financial Statements - Impact of Revisions on Condensed Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current assets            
Cash and cash equivalents $ 84,768 $ 127,967 $ 210,664 $ 194,069    
Accounts receivable, net of allowance for doubtful accounts 179,234 156,916        
Inventories, net 64,895 70,528        
Prepaid expenses and other assets 7,590 7,765        
Total current assets 336,487 363,176        
Property, plant and equipment, net 783,429 756,288        
Deferred income taxes 351 350        
Goodwill 15,301 15,301        
Intangibles, net 92,892 93,268        
Other assets 10,088 7,711        
Total assets 1,238,548 1,236,094        
Current liabilities            
Current portion of long-term debt 18,924 19,189        
Accounts payable 83,852 70,633        
Accrued expenses 41,660 74,007        
Deferred revenue 9,346 5,660        
Total current liabilities 153,782 169,489        
Long-term debt 715,316 729,741        
Deferred income taxes 6,807 2,429        
Other long-term liabilities 36,901 42,189        
Total liabilities 912,806 943,848        
Commitments and contingent liabilities        
Equity            
Preferred stock value        
Common stock value 2,423 2,423        
Additional paid-in capital 294,500 299,912        
Retained earnings 318,912 290,159        
Accumulated other comprehensive loss (14,491) (15,098)        
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock 601,344 577,396        
Less: Treasury stock at cost (275,975) (285,520)        
Total equity attributable to Fairmount Santrol Holdings Inc. 325,369 291,876        
Non-controlling interest 373 370        
Total equity 325,742 292,246 215,568 223,734    
Total liabilities and equity $ 1,238,548 1,236,094        
ASC 250 [Member]            
Current assets            
Cash and cash equivalents   127,967 210,664 194,069 $ 171,486 $ 76,923
Accounts receivable, net of allowance for doubtful accounts   156,916   78,942    
Inventories, net   70,528   52,650    
Prepaid expenses and other assets   6,841   7,065    
Refundable income taxes   924   21,077    
Total current assets   363,176   353,803    
Property, plant and equipment, net   756,288   700,221    
Deferred income taxes   350   1,244    
Goodwill   15,301   15,301    
Intangibles, net   93,268   95,341    
Other assets   7,711   9,486    
Total assets   1,236,094   1,175,396    
Current liabilities            
Current portion of long-term debt   19,189   10,707    
Accounts payable   70,633   37,263    
Accrued expenses   74,007   26,110    
Deferred revenue   5,660   75    
Total current liabilities   169,489   74,155    
Long-term debt   729,741   832,306    
Deferred income taxes   2,429   6,929    
Other long-term liabilities   42,189   38,272    
Total liabilities   943,848   951,662    
Commitments and contingent liabilities        
Equity            
Preferred stock value        
Common stock value   2,423   2,422    
Additional paid-in capital   299,912   297,649    
Retained earnings   290,159   237,466    
Accumulated other comprehensive loss   (15,098)   (19,002)    
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock   577,396   518,535    
Less: Treasury stock at cost   (285,520)   (294,874)    
Total equity attributable to Fairmount Santrol Holdings Inc.   291,876   223,661    
Non-controlling interest   370   73    
Total equity   292,246   223,734    
Total liabilities and equity   1,236,094   1,175,396    
ASC 250 [Member] | As Reported on 2017 Form 10-K/Q [Member]            
Current assets            
Cash and cash equivalents   127,967 $ 210,664 194,069 $ 171,486 $ 76,923
Accounts receivable, net of allowance for doubtful accounts   156,916   78,942    
Inventories, net   70,528   52,650    
Prepaid expenses and other assets   6,841   7,065    
Refundable income taxes   924   21,077    
Total current assets   363,176   353,803    
Property, plant and equipment, net   785,513   727,735    
Deferred income taxes   350   1,244    
Goodwill   15,301   15,301    
Intangibles, net   93,268   95,341    
Other assets   7,711   9,486    
Total assets   1,265,319   1,202,910    
Current liabilities            
Current portion of long-term debt   19,189   10,707    
Accounts payable   70,633   37,263    
Accrued expenses   74,007   26,110    
Deferred revenue   5,660   75    
Total current liabilities   169,489   74,155    
Long-term debt   729,741   832,306    
Deferred income taxes   3,606   7,057    
Other long-term liabilities   42,189   38,272    
Total liabilities   945,025   951,790    
Commitments and contingent liabilities        
Equity            
Preferred stock value        
Common stock value   2,423   2,422    
Additional paid-in capital   299,912   297,649    
Retained earnings   318,207   264,852    
Accumulated other comprehensive loss   (15,098)   (19,002)    
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock   605,444   545,921    
Less: Treasury stock at cost   (285,520)   (294,874)    
Total equity attributable to Fairmount Santrol Holdings Inc.   319,924   251,047    
Non-controlling interest   370   73    
Total equity   320,294   251,120    
Total liabilities and equity   1,265,319   1,202,910    
ASC 250 [Member] | Adjustments [Member]            
Current assets            
Property, plant and equipment, net   (29,225)   (27,514)    
Total assets   (29,225)   (27,514)    
Current liabilities            
Deferred income taxes   (1,177)   (128)    
Total liabilities   (1,177)   (128)    
Commitments and contingent liabilities        
Equity            
Preferred stock value        
Retained earnings   (28,048)   (27,386)    
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock   (28,048)   (27,386)    
Total equity attributable to Fairmount Santrol Holdings Inc.   (28,048)   (27,386)    
Total equity   (28,048)   (27,386)    
Total liabilities and equity   $ (29,225)   $ (27,514)    
v3.8.0.1
Revisions of Previously-Issued Financial Statements - Impact of Revisions on Condensed Consolidated Balance Sheets (Parenthetical) (Detail) - USD ($)
$ / shares in Units, $ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Error Corrections And Prior Period Adjustments Restatement [Line Items]      
Allowance for doubtful accounts $ 1,237 $ 2,003  
Preferred stock, par value $ 0.01 $ 0.01  
Preferred stock, shares authorized 100,000,000 100,000,000  
Preferred stock, shares outstanding 0 0  
Common stock, par value $ 0.01 $ 0.01  
Common stock, shares authorized 1,850,000,000 1,850,000,000  
Common Stock, Shares, Issued 242,366,000 242,366,000  
Common stock, shares outstanding 224,895,000 224,291,000  
Shares in treasury 17,471,000 18,075,000  
ASC 250 [Member]      
Error Corrections And Prior Period Adjustments Restatement [Line Items]      
Allowance for doubtful accounts   $ 2,003 $ 3,055
Preferred stock, par value   $ 0.01 $ 0.01
Preferred stock, shares authorized   100,000,000 100,000,000
Preferred stock, shares outstanding   0 0
Common stock, par value   $ 0.01 $ 0.01
Common stock, shares authorized   1,850,000,000 1,850,000,000
Common Stock, Shares, Issued   242,366,000 242,267,000
Common stock, shares outstanding   224,291,000 223,601,000
Shares in treasury   18,075,000 18,666,000
v3.8.0.1
Revisions of Previously-Issued Financial Statements - Impact of Revisions on Condensed Consolidated Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss) $ 28,756 $ (11,653)      
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and depletion 15,198 15,334      
Amortization 2,945 3,130      
Reserve for doubtful accounts (764) (447)      
Gain (loss) on disposal of fixed assets (10) (714)      
Deferred income taxes and taxes payable 3,578 107      
Stock compensation expense 3,420 2,416      
Change in operating assets and liabilities:          
Accounts receivable (21,554) (15,956)      
Inventories 5,633 (9,038)      
Prepaid expenses and other assets (3,120) 867      
Accounts payable 5,613 12,981      
Accrued expenses (33,431) 9,744      
Deferred revenue 3,686 16,969      
Net cash provided by operating activities 9,851 23,740      
Cash flows from investing activities          
Proceeds from sale of fixed assets 205 957      
Capital expenditures and stripping costs (37,823) (4,574)      
Net cash used in investing activities (37,618) (3,617)      
Cash flows from financing activities          
Payments on term loans (4,375) (2,170)      
Payments on capital leases and other long-term debt (1,163) (817)      
Proceeds from share-based awards exercised or distributed 713 486      
Payments on revolving credit facility (10,000)        
Tax payments for withholdings on share-based awards exercised or distributed (623) (982)      
Transactions with non-controlling interest   (1)      
Net cash used in financing activities (15,448) (3,484)      
Foreign currency adjustment 16 (44)      
(Decrease) increase in cash and cash equivalents (43,199) 16,595      
Cash and cash equivalents:          
Beginning of period 127,967 194,069 $ 194,069    
End of period 84,768 210,664 127,967 $ 194,069  
Supplemental disclosure of cash flow information:          
Interest paid, net of capitalized interest 14,853 11,717      
Income taxes refunded 375 (1,601)      
Non-cash investing activities:          
Equipment purchased under capital leases   4,175      
Decrease in accounts payable for additions to property, plant, and equipment (7,606) (1,301)      
ASC 250 [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss)   (11,653) 53,425 (148,480) $ (92,215)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and depletion   15,334 61,663 58,652 55,870
Amortization   3,130 12,784 11,641 11,416
Reserve for doubtful accounts   (447) (387) 1,851 1,968
Write-off of deferred financing costs     389 2,618 864
Loss on debt extinguishment, gross     2,898    
Gain on repurchase of debt, gross       (8,178)  
Goodwill and other asset impairments       89,851 76,038
Non-cash restructuring charges         1,162
Inventory write-downs and reserves     1,266 10,302 1,591
Gain (loss) on disposal of fixed assets   (714) 846 420 8,712
Unrealized loss on interest rate swaps     14   49
Deferred income taxes and taxes payable   107 (6,683) (71,921) 20,819
Stock compensation expense   2,416 10,071 8,870 4,525
Change in operating assets and liabilities:          
Accounts receivable   (15,956) (77,587) (4,385) 127,718
Inventories   (9,038) (19,144) 7,543 59,527
Prepaid expenses and other assets   867 (2,398) 11,496 23,234
Refundable income taxes     20,154 5,428 (26,506)
Accounts payable   12,981 18,575 4,196 (38,698)
Accrued expenses   9,744 51,874 11,718 (6,051)
Deferred revenue   16,969 5,585 75  
Net cash provided by operating activities   23,740 133,345 (8,303) 230,023
Cash flows from investing activities          
Proceeds from sale of fixed assets   957 4,939 5,670  
Capital expenditures and stripping costs   (4,574) (58,130) (20,794) (106,953)
Leasehold interest payments for sand reserves     (30,000)    
Other investing activities         (250)
Earnout payments     (4,170) (1,287)  
Net cash used in investing activities   (3,617) (87,361) (16,411) (107,203)
Cash flows from financing activities          
Proceeds from borrowings on term loan     689,500    
Payments on term loans   (2,170) (6,469) (10,840) (13,532)
Prepayments on term loans     (832,655) (155,926)  
Repurchase of term loans       (216,000)  
Fees for debt restructure and repurchase of term loans     (2,790) (450)  
Payments on capital leases and other long-term debt   (817) (4,752) (5,947) (6,975)
Proceeds from share-based awards exercised or distributed   486 845 6,438 1,767
Proceeds from borrowing on revolving credit facility     50,000    
Payments on revolving credit facility     (5,000)    
Proceeds from primary stock offering       439,556  
Tax payments for withholdings on share-based awards exercised or distributed   (982) (1,321) (8,092) (826)
Tax effect of share-based awards exercised, forfeited, or expired       (1,100) (1,472)
Transactions with non-controlling interest   (1)   (842) (301)
Other financing activities         (4,578)
Net cash used in financing activities   (3,484) (112,642) 46,797 (25,917)
Change in cash and cash equivalents related to assets classified as held-for-sale       1,376 (1,376)
Foreign currency adjustment   (44) 556 (876) (964)
(Decrease) increase in cash and cash equivalents   16,595 (66,102) 22,583 94,563
Cash and cash equivalents:          
Beginning of period 127,967 194,069 194,069 171,486 76,923
End of period   210,664 127,967 194,069 171,486
ASC 250 [Member] | As Reported on 2017 Form 10-K/Q [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss)   (11,410) 54,085 (140,125) (91,930)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and depletion   17,530 71,397 67,614 62,218
Amortization   3,130 12,784 11,641 11,416
Reserve for doubtful accounts   (447) (387) 1,851 1,968
Write-off of deferred financing costs     389 2,618 864
Loss on debt extinguishment, gross     2,898    
Gain on repurchase of debt, gross       (8,178)  
Goodwill and other asset impairments       93,148 76,038
Non-cash restructuring charges         1,162
Inventory write-downs and reserves     1,266 10,302 1,591
Gain (loss) on disposal of fixed assets   (714) 846 420 8,712
Unrealized loss on interest rate swaps     14   49
Deferred income taxes and taxes payable   119 (5,634) (82,732) 20,983
Stock compensation expense   2,416 10,071 8,870 4,525
Change in operating assets and liabilities:          
Accounts receivable   (15,956) (77,587) (4,385) 127,718
Inventories   (9,038) (19,144) 7,543 59,527
Prepaid expenses and other assets   (1,078) (2,398) 11,496 23,234
Refundable income taxes   1,945 20,154 5,428 (26,506)
Accounts payable   12,981 18,575 4,196 (38,698)
Accrued expenses and deferred revenue   26,489      
Accrued expenses     51,874 11,718 (6,051)
Deferred revenue     5,585 75  
Net cash provided by operating activities   25,967 144,788 1,500 236,820
Cash flows from investing activities          
Proceeds from sale of fixed assets   957 4,939 5,670  
Capital expenditures and stripping costs   (7,025) (69,573) (30,597) (113,750)
Leasehold interest payments for sand reserves     (30,000)    
Other investing activities   (758)     (250)
Earnout payments     (4,170) (1,287)  
Net cash used in investing activities   (6,826) (98,804) (26,214) (114,000)
Cash flows from financing activities          
Proceeds from borrowings on term loan     689,500    
Payments on term loans   (2,170) (6,469) (10,840) (13,532)
Prepayments on term loans     (832,655) (155,926)  
Repurchase of term loans       (216,000)  
Fees for debt restructure and repurchase of term loans     (2,790) (450)  
Payments on capital leases and other long-term debt   (817) (4,752) (5,947) (6,975)
Proceeds from share-based awards exercised or distributed   486 845 6,438 1,767
Proceeds from borrowing on revolving credit facility     50,000    
Payments on revolving credit facility     (5,000)    
Proceeds from primary stock offering       439,556  
Tax payments for withholdings on share-based awards exercised or distributed     (1,321) (8,092) (826)
Tax effect of share-based awards exercised, forfeited, or expired       (1,100) (1,472)
Transactions with non-controlling interest   (1)   (842) (301)
Other financing activities         (4,578)
Net cash used in financing activities   (2,502) (112,642) 46,797 (25,917)
Change in cash and cash equivalents related to assets classified as held-for-sale       1,376 (1,376)
Foreign currency adjustment   (44) 556 (876) (964)
(Decrease) increase in cash and cash equivalents   16,595 (66,102) 22,583 94,563
Cash and cash equivalents:          
Beginning of period $ 127,967 194,069 194,069 171,486 76,923
End of period   210,664 127,967 194,069 171,486
Supplemental disclosure of cash flow information:          
Interest paid, net of capitalized interest   11,717 59,498 60,833 61,395
Income taxes refunded   (1,601) (19,278) (21,311) (19,898)
Non-cash investing activities:          
Equipment purchased under capital leases   4,175 10,988   4,552
Decrease in accounts payable for additions to property, plant, and equipment   (1,301) (14,796)    
Increase in accounts payable for additions to property, plant, and equipment       8,100 652
ASC 250 [Member] | Adjustments [Member]          
Error Corrections And Prior Period Adjustments Restatement [Line Items]          
Net income (loss)   (243) (660) (8,355) (285)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and depletion   (2,196) (9,734) (8,962) (6,348)
Goodwill and other asset impairments       (3,297)  
Deferred income taxes and taxes payable   (12) (1,049) 10,811 (164)
Change in operating assets and liabilities:          
Prepaid expenses and other assets   1,945      
Refundable income taxes   (1,945)      
Accrued expenses and deferred revenue   (26,489)      
Accrued expenses   9,744      
Deferred revenue   16,969      
Net cash provided by operating activities   (2,227) (11,443) (9,803) (6,797)
Cash flows from investing activities          
Capital expenditures and stripping costs   2,451 11,443 9,803 6,797
Other investing activities   758      
Net cash used in investing activities   3,209 $ 11,443 $ 9,803 $ 6,797
Cash flows from financing activities          
Tax payments for withholdings on share-based awards exercised or distributed   (982)      
Net cash used in financing activities   $ (982)      
v3.8.0.1
Inventories, net - Schedule of Inventories (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Inventory Disclosure [Abstract]    
Raw materials $ 8,368 $ 7,412
Work-in-process 10,303 14,819
Finished goods 46,848 48,931
Inventory gross 65,519 71,162
Less: LIFO reserve (624) (634)
Inventories, net $ 64,895 $ 70,528
v3.8.0.1
Property, Plant, and Equipment, net - Schedule of Property, Plant, and Equipment (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 1,184,840 $ 1,142,472
Accumulated depletion and depreciation (401,411) (386,184)
Property, plant, and equipment, net 783,429 756,288
Land and Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 83,491 85,012
Mineral Reserves and Mine Development [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 228,356 222,271
Machinery and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 601,745 590,584
Buildings and Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 186,631 186,466
Furniture, Fixtures and Other [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 3,492 3,478
Construction in Progress [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 81,125 $ 54,661
v3.8.0.1
Property, Plant, and Equipment, net - Additional Information (Detail)
$ in Thousands
1 Months Ended
Jul. 18, 2017
USD ($)
a
Oct. 31, 2017
USD ($)
Mar. 31, 2018
USD ($)
Property, Plant and Equipment [Line Items]      
Term of lease agreement 40 years    
Area of sand reserves under lease agreement | a 3,250    
Initial payment made at lease commencement $ 20,000    
Operating lease installment payment   $ 10,000  
Contingent leasehold Interest payments     $ 10,000
Mineral Reserves And Mine Development [Member]      
Property, Plant and Equipment [Line Items]      
Capitalization of leasehold interest obligation and related exploratory and transaction costs $ 40,000    
v3.8.0.1
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Debt Instrument [Line Items]    
Term Loan B $ 685,184 $ 688,990
Industrial Revenue Bond 10,000 10,000
ABL Revolver, Revolving Credit Facility, and other 35,056 45,073
Capital leases, net 8,738 9,884
Long term debt 734,240 748,930
Less: current portion (18,924) (19,189)
Long-term debt including leases 715,316 729,741
Term Loans [Member]    
Debt Instrument [Line Items]    
Deferred financing costs, net $ (4,738) $ (5,017)
v3.8.0.1
Long-Term Debt - Additional Information (Detail) - USD ($)
3 Months Ended
Nov. 01, 2017
Mar. 31, 2018
Dec. 31, 2017
Debt Instrument [Line Items]      
Available capacity remaining on the revolving credit facility   $ 74,099,000  
Outstanding letters of credit   15,290,000  
Amount withheld for collateral   $ 611,000  
Industrial Revenue Bond [Member]      
Debt Instrument [Line Items]      
Debt instrument borrowings, maturity date   Sep. 01, 2027  
Debt instrument, interest rate   1.65% 1.46%
Debt instrument face amount   $ 10,000,000  
Letter of credit   $ 10,000,000  
Barclays Capital Inc [Member] | Term Loan B [Member]      
Debt Instrument [Line Items]      
Debt instrument, frequency of periodic payment   quarterly  
Debt instrument borrowings, maturity date Nov. 01, 2022    
Debt instrument principal amount $ 700,000,000    
Debt instrument original issued discount percentage 98.50%    
Percentage of annual amortization payments in principal amount for first half of loan period 2.50%    
Percentage of annual amortization payments in principal amount for second half of loan period 5.00%    
Debt instrument, description of variable rate basis   three-month LIBOR plus 6.0% with a LIBOR floor of 1.0%  
Debt instrument refinance description   Should the Company choose to refinance the Term Loan B, it would be subject to a 1.02% premium if refinanced at a lower interest rate within one year of the Closing Date or a 1.01% premium if refinanced at a lower interest rate within two years of the Closing Date.  
Percentage of premium for refinance within one year of closing date 1.02%    
Percentage of premium for refinance within two years of closing date 1.01%    
Change in control description   In the event of a change in control of 35% or more of the voting interests of the Company and at the request of the lenders, the unpaid principal and interest of the Term Loan B may become immediately due and payable.  
Debt instrument, interest rate   8.30% 7.70%
Minimum [Member] | Barclays Capital Inc [Member] | Term Loan B [Member]      
Debt Instrument [Line Items]      
Voting interests 35.00%    
LIBOR [Member] | Barclays Capital Inc [Member] | Term Loan B [Member]      
Debt Instrument [Line Items]      
Applicable margin on interest rate 6.00%    
Debt instrument floor rate 1.00%    
ABL Revolver [Member] | PNC Capital Markets LLC [Member]      
Debt Instrument [Line Items]      
Debt instrument term 5 years    
Line of credit facility maximum borrowing capacity $ 125,000,000    
Line of credit facility increasing amount 50,000,000    
Line of credit facility option to increase maximum borrowing capacity 175,000,000    
Proceeds from revolving credit facility $ 50,000,000    
Debt instrument, frequency of periodic payment   quarterly  
Debt instrument, maturity date, description   If the Term Loan B is still outstanding, then any balance outstanding under the ABL Revolver is due on May 1, 2022.  
Minimum fixed charge coverage ratio 110.00%    
Debt instrument, interest rate   3.60% 3.30%
Available capacity remaining on the revolving credit facility   $ 90,000,000  
ABL Revolver [Member] | PNC Capital Markets LLC [Member] | If Term Loan B Not Outstanding [Member]      
Debt Instrument [Line Items]      
Debt instrument borrowings, maturity date Nov. 01, 2022    
ABL Revolver [Member] | PNC Capital Markets LLC [Member] | If Term Loan B Still Outstanding [Member]      
Debt Instrument [Line Items]      
Debt instrument borrowings, maturity date May 01, 2022    
ABL Revolver [Member] | LIBOR [Member] | Minimum [Member] | PNC Capital Markets LLC [Member]      
Debt Instrument [Line Items]      
Applicable margin on interest rate 1.50%    
ABL Revolver [Member] | LIBOR [Member] | Maximum [Member] | PNC Capital Markets LLC [Member]      
Debt Instrument [Line Items]      
Applicable margin on interest rate 2.00%    
ABL Revolver [Member] | Federal Funds Open Rate [Member] | PNC Capital Markets LLC [Member]      
Debt Instrument [Line Items]      
Applicable margin on interest rate 0.50%    
ABL Revolver [Member] | Daily LIBOR [Member] | PNC Capital Markets LLC [Member]      
Debt Instrument [Line Items]      
Applicable margin on interest rate 1.00%    
v3.8.0.1
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Payables And Accruals [Abstract]    
Accrued payroll and fringe benefits $ 8,526 $ 11,233
Accrued bonus 3,543 37,166
Accrued income taxes 386 504
Accrued real estate taxes 4,617 5,098
Accrued leasehold interest payments 10,000 10,000
Other accrued expenses 14,588 10,006
Accrued expenses $ 41,660 $ 74,007
v3.8.0.1
Earnings (Loss) per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Numerator:    
Net income (loss) attributable to Fairmount Santrol Holdings Inc. $ 28,753 $ (11,831)
Denominator:    
Basic weighted average shares outstanding 224,484,000 223,739,000
Dilutive effect of employee stock options, RSUs, and PRSUs 4,456,000 0
Diluted weighted average shares outstanding 228,940,000 223,739,000
Earnings (loss) per common share – basic $ 0.13 $ (0.05)
Earnings (loss) per common share – diluted $ 0.13 $ (0.05)
v3.8.0.1
Earnings (Loss) per Share - Additional Information (Detail) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Earnings Per Share [Abstract]    
Securities excluded from computation of earning per share 6,170 4,739
v3.8.0.1
Derivative Instruments - Additional Information (Detail)
3 Months Ended
Mar. 31, 2018
USD ($)
Agreement
Dec. 31, 2017
USD ($)
Nov. 30, 2017
USD ($)
Derivative [Line Items]      
Number of interest rate swap agreements | Agreement 1    
Interest Rate Swap Agreements [Member]      
Derivative [Line Items]      
Notional amount of swap agreements $ 210,000,000 $ 210,000,000  
Notional amount as percent of term debt outstanding 30.00% 30.00%  
Interest rate swap agreement, maturity date Sep. 05, 2019    
Derivative variable interest rate 2.92%    
Notional amount of swap agreements, terminated     $ 210,000,000
Interest Rate Swap Agreements [Member] | Interest Expense [Member]      
Derivative [Line Items]      
Reclassification from Accumulated other comprehensive income (loss) $ 4,333,000    
Reclassification from accumulated other comprehensive income (loss), estimate of time to transfer 12 months    
v3.8.0.1
Derivative Instruments - Fair Values of Derivative Instrument and Respective Classification in Condensed Consolidated Balance Sheets (Detail) - Interest Rate Swap Agreements [Member] - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]    
Derivative, fair value $ (1,394) $ (3,208)
Non-Qualifying Cash Flow Hedge [Member] | Other Long-Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative liabilities $ (1,394) $ (3,208)
v3.8.0.1
Derivative Instruments - Schedule of Interest Expense Derivatives (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Derivatives, Fair Value [Line Items]    
Interest expense $ (13,783) $ (12,537)
Interest Rate Swap Agreements [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Designated as Cash Flow Hedges [Member]    
Derivatives, Fair Value [Line Items]    
Interest expense   (77)
Interest Rate Swap Agreements [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Derivatives Not Designated as Cash Flow Hedges [Member]    
Derivatives, Fair Value [Line Items]    
Interest expense (99)  
Interest Rate Swap Agreements [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Interest Income Expense [Member] | Designated as Cash Flow Hedges [Member]    
Derivatives, Fair Value [Line Items]    
Interest expense   $ (77)
Interest Rate Swap Agreements [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Interest Income Expense [Member] | Derivatives Not Designated as Cash Flow Hedges [Member]    
Derivatives, Fair Value [Line Items]    
Interest expense $ (99)  
v3.8.0.1
Fair Value Measurements - Schedule of Fair Value for Long-term Debt (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of long term debt $ 704,320 $ 708,750
Term Loan B [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of long term debt 704,320 708,750
Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of long term debt 704,320 708,750
Other Observable Inputs (Level 2) [Member] | Term Loan B [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of long term debt $ 704,320 $ 708,750
v3.8.0.1
Fair Value Measurements - Financial Instruments Carried at Fair Value (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Interest Rate Swap Agreements [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ (1,394) $ (3,208)
Recurring Fair Value Measurements [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Net Asset (Liability) (1,394) (3,208)
Recurring Fair Value Measurements [Member] | Interest Rate Swap Agreements [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements (1,394) (3,208)
Other Observable Inputs (Level 2) [Member] | Recurring Fair Value Measurements [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Net Asset (Liability) (1,394) (3,208)
Other Observable Inputs (Level 2) [Member] | Recurring Fair Value Measurements [Member] | Interest Rate Swap Agreements [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Interest rate swap agreements $ (1,394) $ (3,208)
v3.8.0.1
Common Stock and Stock Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares granted to purchase   443
Average grant date fair value of options issued   $ 10.03
Stock compensation expense $ 3,420 $ 2,416
Restricted Stock Units (RSUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock units issued 1,581 366
Performance Restricted Stock Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock units issued   139
v3.8.0.1
Common Stock and Stock Based Compensation - Summary of Share Based Compensation Activity of Option and Non-option Instruments (Detail) - $ / shares
shares in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options, Outstanding Beginning Balance 13,393  
Options, Granted   443
Options, Exercised (355)  
Options, Forfeited (9)  
Options, Expired (4)  
Options, Outstanding Ending Balance 13,025  
Weighted Average Exercise Price, Options, Outstanding Beginning Balance $ 6.63  
Weighted Average Exercise Price, Options, Exercised 2.58  
Weighted Average Exercise Price, Options, Forfeited 10.70  
Weighted Average Exercise Price, Options, Expired 16.00  
Weighted Average Exercise Price, Options, Outstanding Ending Balance $ 6.73  
Restricted Stock Units (RSUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding Beginning Balance 1,517  
Granted 1,581  
Exercised (280)  
Forfeited (6)  
Outstanding Ending Balance 2,812  
Weighted Average Price at Issue Date, Outstanding Beginning Balance $ 6.63  
Weighted Average Price at Issue Date, Granted 4.56  
Weighted Average Price at Issue Date, Exercised 4.65  
Weighted Average Price at Issue Date, Forfeited 10.03  
Weighted Average Price at Issue Date, Outstanding Ending Balance $ 5.67  
Performance Restricted Stock Units (PRSUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding Beginning Balance 584  
Outstanding Ending Balance 584  
Weighted Average Price at Issue Date, Outstanding Beginning Balance $ 4.10  
Weighted Average Price at Issue Date, Outstanding Ending Balance $ 4.10  
v3.8.0.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Income Tax Disclosure [Abstract]    
Provision (benefit) for income taxes $ 872 $ (1,160)
Income (Loss) before income taxes $ 29,628 $ (12,813)
Effective income tax rate 2.90% 9.10%
Corporate income tax rate 21.00%  
Tax Act 2017, one-time transition tax on unremitted foreign earnings $ 3,046  
v3.8.0.1
Defined Benefit Plans - Additional Information (Detail)
$ in Thousands
3 Months Ended
Mar. 31, 2018
USD ($)
Pension_Plan
Mar. 31, 2017
USD ($)
Compensation And Retirement Disclosure [Abstract]    
Number of defined benefit pension plans | Pension_Plan 2  
Pension and postretirement contributions $ 0 $ 19
Expected contribution for pension plan remaining fiscal year $ 28  
v3.8.0.1
Defined Benefit Plans - Summary of Defined Benefit Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Compensation And Retirement Disclosure [Abstract]    
Interest cost $ 84 $ 89
Expected return on plan assets (141) (127)
Amortization of net actuarial loss 56 61
Net periodic benefit (income) cost $ (1) $ 23
v3.8.0.1
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, Gross $ (19,640) $ (20,785)
Accumulated other comprehensive loss, Tax Effect 5,149 5,687
Accumulated other comprehensive loss (14,491) (15,098)
Foreign Currency Translation [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, Gross (10,233) (10,249)
Accumulated other comprehensive loss, Tax Effect 1,546 1,849
Accumulated other comprehensive loss (8,687) (8,400)
Additional Pension Liability [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, Gross (3,193) (3,253)
Accumulated other comprehensive loss, Tax Effect 1,220 1,220
Accumulated other comprehensive loss (1,973) (2,033)
Unrealized Gain (Loss) on Interest Rate Hedges [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, Gross (6,214) (7,283)
Accumulated other comprehensive loss, Tax Effect 2,383 2,618
Accumulated other comprehensive loss $ (3,831) $ (4,665)
v3.8.0.1
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Detail)
$ in Thousands
3 Months Ended
Mar. 31, 2018
USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Beginning balances $ 292,246
Other comprehensive income before reclassifications (287)
Amounts reclassified from accumulated other comprehensive loss 894
Ending balances 325,742
Foreign Currency Translation [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Beginning balances (8,400)
Other comprehensive income before reclassifications (287)
Ending balances (8,687)
Additional Pension Liability [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Beginning balances (2,033)
Amounts reclassified from accumulated other comprehensive loss 60
Ending balances (1,973)
Unrealized Gain (Loss) on Interest Rate Hedges [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Beginning balances (4,665)
Amounts reclassified from accumulated other comprehensive loss 834
Ending balances (3,831)
Accumulated Other Comprehensive Loss [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Beginning balances (15,098)
Ending balances $ (14,491)
v3.8.0.1
Accumulated Other Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Interest expense $ 13,783 $ 12,537
Income (loss) before provision (benefit) for income taxes 29,628 (12,813)
Tax expense (872) 1,160
Net income (loss) 28,756 (11,653)
Cost of sales 186,078 $ 134,203
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Net income (loss) 894  
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gain (Loss) on Interest Rate Hedges [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Interest expense 1,069  
Tax expense (235)  
Net income (loss) 834  
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Cost of sales $ 60  
v3.8.0.1
Commitments and Contingent Liabilities - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended
Dec. 17, 2015
Mar. 31, 2018
Mar. 31, 2017
Commitments and Contingencies [Line Items]      
Contingent leasehold Interest payments   $ 10,000  
Rent expense for lease   $ 13,127 $ 13,714
Self-Suspending Proppant LLC [Member]      
Commitments and Contingencies [Line Items]      
Commitment period of sales   5 years  
Commitment commencing date   Oct. 01, 2015  
Threshold aggregate earnout payment from the two-year period ending October 1, 2017 until the three-year period ending October 1, 2018 $ 45,000    
Threshold aggregate earnout payment during the two-year period ending October 1, 2017 $ 15,000    
Security interest percentage of equity in contingent consideration 51.00%    
Asset acquisition contingent consideration $ 195,000    
Estimated earnout payments capitalized   $ 11,119  
Disbursement of earnout payments   5,457  
Accrued earnout liability   $ 5,662  
v3.8.0.1
Transactions with Related Parties - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
American Securities [Member]    
Related Party Transaction [Line Items]    
Management fees and expense payment $ 47 $ 86
v3.8.0.1
Segment Reporting - Additional Information (Detail)
3 Months Ended
Mar. 31, 2018
Segment
Customer
Mar. 31, 2017
Customer
Segment Reporting Information [Line Items]    
Number of reportable segments | Segment 2  
Number of customers | Customer 3 3
Customer Concentration Risk [Member] | Revenues [Member] | Customer One [Member]    
Segment Reporting Information [Line Items]    
Consolidated net revenues 29.00% 24.00%
Customer Concentration Risk [Member] | Revenues [Member] | Customer Two [Member]    
Segment Reporting Information [Line Items]    
Consolidated net revenues 11.00% 12.00%
Customer Concentration Risk [Member] | Revenues [Member] | Customer Three [Member]    
Segment Reporting Information [Line Items]    
Consolidated net revenues 10.00% 11.00%
v3.8.0.1
Segment Reporting - Summarized Financial Information for Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Revenues    
Revenues $ 273,338 $ 172,583
Segment gross profit    
Segment gross profit 87,260 38,380
Operating expenses excluded from segment gross profit    
Selling, general, and administrative 27,353 22,470
Depreciation, depletion, and amortization 17,225 17,246
Other operating income (729) (1,060)
Interest expense 13,783 12,537
Income (loss) before provision (benefit) for income taxes 29,628 (12,813)
Proppant Solutions [Member]    
Revenues    
Revenues 242,182 140,993
Segment gross profit    
Segment gross profit 76,114 25,461
Industrial & Recreational Products [Member]    
Revenues    
Revenues 31,156 31,590
Segment gross profit    
Segment gross profit $ 11,146 $ 12,919
v3.8.0.1
Goodwill and Intangibles - Additional Information (Detail) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Goodwill [Line Items]    
Goodwill $ 15,301 $ 15,301
FTSI Supply Agreement [Member]    
Goodwill [Line Items]    
Intangible asset, net of accumulated amortization 29,659  
SSP Technology [Member]    
Goodwill [Line Items]    
Intangible asset, net of accumulated amortization 63,225  
Industrial & Recreational Products [Member]    
Goodwill [Line Items]    
Goodwill $ 15,301  
v3.8.0.1
Revenues from Contracts with Customers - Additional Information (Detail) - USD ($)
3 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Disaggregation Of Revenue [Line Items]    
Accounts receivable related to shortfall payments $ 0 $ 0
Minimum [Member]    
Disaggregation Of Revenue [Line Items]    
Contracts with customers term 1 year  
Maximum [Member]    
Disaggregation Of Revenue [Line Items]    
Contracts with customers term 8 years  
v3.8.0.1
Revenues from Contracts with Customers - Summary of Revenues Disaggregated by Reported Segment and by Product Line (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Disaggregation Of Revenue [Line Items]    
Total revenues $ 273,338 $ 172,583
Raw Sand [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 212,419 123,064
Value-added Products [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 60,919 49,519
Proppant Solutions [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 242,182 140,993
Proppant Solutions [Member] | Raw Sand [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 191,176 102,834
Proppant Solutions [Member] | Value-added Products [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 51,006 38,159
Industrial & Recreational Products [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 31,156 31,590
Industrial & Recreational Products [Member] | Raw Sand [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues 21,243 20,230
Industrial & Recreational Products [Member] | Value-added Products [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenues $ 9,913 $ 11,360
v3.8.0.1
Proposed Merger with Unimin Corporation - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended
Dec. 11, 2017
Mar. 31, 2018
Business Acquisition [Line Items]    
Expenses associated with merger   $ 3,334
Selling, General and Administrative Expenses [Member]    
Business Acquisition [Line Items]    
Expenses associated with merger $ 11,645  
Merger Agreement [Member] | Unimin [Member]    
Business Acquisition [Line Items]    
Payments to acquire businesses, net of cash acquired $ 170,000  
Business acquisition percentage of common stock 35.00%  
Business acquisition remaining percentage of common stock. 65.00%  
Merger agreement termination fee payable upon exercise of conditional termination rights $ 52,000