Fairmount Santrol (FMSA) saw its loss narrow to $11.59 million, or $0.05 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $11.78 million, or $0.07 a share.
Revenue during the quarter grew 18.65 percent to $172.58 million from $145.46 million in the previous year period. Gross margin for the quarter expanded 510 basis points over the previous year period to 23.66 percent. Operating margin for the quarter stood at negative 0.01 percent as compared to a negative 7.06 percent for the previous year period.
Operating loss for the quarter was $0.02 million, compared with an operating loss of $10.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.66 million compared with $10.05 million in the prior year period. At the same time, adjusted EBITDA margin improved 564 basis points in the quarter to 12.55 percent from 6.91 percent in the last year period.
Jenniffer Deckard, President and Chief Executive Officer, said, “Our Proppant Solutions segment performed well during the first quarter as market conditions strengthened, driving strong revenue growth and improving profitability, while our Industrial & Recreational segment turned in another solid performance with good profitability growth. Our value-added products within both of our business segments had excellent growth during the quarter, demonstrating the differentiated market position of these products and their importance to our customers.”
Operating cash flow turns positive
Fairmount Santrol has generated cash of $25.97 million from operating activities during the quarter as against cash outgo of $8.59 million in the last year period. The company has spent $6.83 million cash to meet investing activities during the quarter as against cash outgo of $13.16 million in the last year period. It has incurred net capital expenditure of $6.07 million on net basis during the quarter, down 53.88 percent or $7.09 million from year ago period.
The company has spent $2.50 million cash to carry out financing activities during the quarter as against cash outgo of $6.02 million in the last year period.
Cash and cash equivalents stood at $210.66 million as on Mar. 31, 2017, up 46.42 percent or $66.79 million from $143.87 million on Mar. 31, 2016.
Working capital increases sharply
Fairmount Santrol has recorded an increase in the working capital over the last year. It stood at $284.47 million as at Mar. 31, 2017, up 65.60 percent or $112.69 million from $171.78 million on Mar. 31, 2016. Current ratio was at 3.62 as on Mar. 31, 2017, up from 2.07 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 73 days for the last year period. Days sales outstanding were almost stable at 49 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 21 days for the quarter compared with 54 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 30 for the same period last year.
Debt comes down significantly
Fairmount Santrol has recorded a decline in total debt over the last one year. It stood at $845.11 million as on Mar. 31, 2017, down 30.72 percent or $374.79 million from $1,219.90 million on Mar. 31, 2016. Total debt was 68.41 percent of total assets as on Mar. 31, 2017, compared with 92.70 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
