Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FMSA | |
Entity Registrant Name | Fairmount Santrol Holdings Inc. | |
Entity Central Index Key | 1,010,858 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 161,423,048 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 221,323 | $ 334,291 | $ 522,813 | $ 629,223 |
Cost of sales (excluding depreciation, depletion, amortization, and stock compensation expense shown separately) | 165,130 | 211,190 | 367,678 | 402,302 |
Operating expenses | ||||
Selling, general and administrative expenses | 19,204 | 27,390 | 43,224 | 49,168 |
Depreciation, depletion and amortization expense | 16,276 | 14,584 | 32,499 | 27,522 |
Stock compensation expense | 2,618 | 2,219 | 4,501 | 4,313 |
Restructuring and other charges | 14,824 | 15,148 | ||
Other operating expense (income) | 913 | (263) | 600 | (328) |
Income from operations | 2,358 | 79,171 | 59,163 | 146,246 |
Interest expense, net | 14,894 | 16,572 | 30,202 | 34,478 |
Other non-operating expense | 250 | 541 | ||
Income (loss) before provision for income taxes | (12,536) | 62,349 | 28,961 | 111,227 |
Provision (benefit) for income taxes | (26,677) | 18,146 | (16,060) | 32,412 |
Net income | 14,141 | 44,203 | 45,021 | 78,815 |
Less: Net income attributable to the non-controlling interest | 4 | 282 | 125 | 355 |
Net income attributable to Fairmount Santrol Holdings Inc. | $ 14,137 | $ 43,921 | $ 44,896 | $ 78,460 |
Earnings per share | ||||
Basic | $ 0.09 | $ 0.28 | $ 0.28 | $ 0.50 |
Diluted | $ 0.08 | $ 0.27 | $ 0.27 | $ 0.47 |
Weighted average number of shares outstanding | ||||
Basic | 161,368,468 | 156,684,036 | 161,160,994 | 156,573,196 |
Diluted | 166,866,817 | 165,642,288 | 166,631,841 | 165,585,168 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,141 | $ 44,203 | $ 45,021 | $ 78,815 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment | (120) | 63 | (3,353) | (372) |
Pension obligations | 74 | 28 | 123 | 56 |
Change in fair value of derivative agreements | 24 | (3,093) | (2,711) | (5,006) |
Total other comprehensive income (loss), net of tax | (22) | (3,002) | (5,941) | (5,322) |
Comprehensive income | 14,119 | 41,201 | 39,080 | 73,493 |
Comprehensive income attributable to the non-controlling interest | 4 | 282 | 125 | 355 |
Comprehensive income attributable to Fairmount Santrol Holdings Inc. | $ 14,115 | $ 40,919 | $ 38,955 | $ 73,138 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 175,488 | $ 76,923 |
Accounts receivable, net | 122,038 | 206,094 |
Inventories | 90,625 | 131,613 |
Deferred income taxes | 5,158 | 5,158 |
Prepaid expenses and other assets | 27,530 | 40,766 |
Total current assets | 420,839 | 460,554 |
Property, plant and equipment, net | 865,784 | 841,274 |
Goodwill | 84,625 | 84,677 |
Intangibles, net | 98,501 | 100,769 |
Other assets | 26,942 | 26,742 |
Total assets | 1,496,691 | 1,514,016 |
Current liabilities | ||
Current portion of long-term debt | 16,797 | 17,274 |
Accounts payable | 46,940 | 88,542 |
Accrued expenses | 30,562 | 36,025 |
Total current liabilities | 94,299 | 141,841 |
Long-term debt | 1,229,646 | 1,235,365 |
Deferred income taxes | 60,895 | 74,351 |
Other long-term liabilities | 33,016 | 28,985 |
Total liabilities | $ 1,417,856 | $ 1,480,542 |
Commitments and contingent liabilities | ||
Common stock: $0.01 par value, 272,000,000 authorized shares Shares outstanding: 161,423,048 and 160,913,266 at June 30, 2015 and December 31, 2014, respectively | $ 2,391 | $ 2,387 |
Preferred stock: $0.01 par value, 100,000,000 authorized shares Shares outstanding: 0 at June 30, 2015 and December 31, 2014, respectively | ||
Additional paid-in capital | $ 778,165 | $ 771,888 |
Retained earnings | 542,075 | 497,179 |
Accumulated other comprehensive income (loss) | (18,750) | (12,809) |
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock | 1,303,881 | 1,258,645 |
Less: Treasury stock at cost Shares in treasury: 77,765,480 at June 30, 2015 and December 31, 2014, respectively | (1,227,663) | (1,227,663) |
Total equity attributable to Fairmount Santrol Holdings Inc. | 76,218 | 30,982 |
Non-controlling interest | 2,617 | 2,492 |
Total equity | 78,835 | 33,474 |
Total liabilities and equity | $ 1,496,691 | $ 1,514,016 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 272,000,000 | 272,000,000 |
Common stock, shares outstanding | 161,423,048 | 160,913,266 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Shares in treasury | 77,765,480 | 77,765,480 |
Condensed Consolidated Stateme6
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, 2013 | $ (165,358) | $ 2,341 | $ 733,088 | $ 326,729 | $ (3,536) | $ (1,227,001) | $ (168,379) | $ 3,021 |
Beginning balances, shares at Dec. 31, 2013 | 156,462 | 77,706 | ||||||
Purchase of treasury stock | (662) | $ (662) | (662) | |||||
Purchase of treasury stock, shares | 36 | |||||||
Stock options exercised | 2,306 | $ 15 | 2,291 | 2,306 | ||||
Stock options exercised, shares | 1,381 | |||||||
Stock compensation expense | 4,313 | 4,313 | 4,313 | |||||
Tax effect of stock options exercised | 4,366 | 4,366 | 4,366 | |||||
Transactions with non-controlling interest | (431) | (431) | ||||||
Net income | 78,815 | 78,460 | 78,460 | 355 | ||||
Other comprehensive income (loss) | (5,322) | (5,322) | (5,322) | |||||
Ending balances at Jun. 30, 2014 | (81,973) | $ 2,356 | 744,058 | 405,189 | (8,858) | $ (1,227,663) | (84,918) | 2,945 |
Ending balances, shares at Jun. 30, 2014 | 157,843 | 77,742 | ||||||
Beginning balances at Dec. 31, 2014 | 33,474 | $ 2,387 | 771,888 | 497,179 | (12,809) | $ (1,227,663) | 30,982 | 2,492 |
Beginning balances, shares at Dec. 31, 2014 | 160,913 | 77,765 | ||||||
Stock options exercised | 1,759 | $ 4 | 1,755 | 1,759 | ||||
Stock options exercised, shares | 510 | |||||||
Stock compensation expense | 4,501 | 4,501 | 4,501 | |||||
Tax effect of stock options exercised | 21 | 21 | 21 | |||||
Net income | 45,021 | 44,896 | 44,896 | 125 | ||||
Other comprehensive income (loss) | (5,941) | (5,941) | (5,941) | |||||
Ending balances at Jun. 30, 2015 | $ 78,835 | $ 2,391 | $ 778,165 | $ 542,075 | $ (18,750) | $ (1,227,663) | $ 76,218 | $ 2,617 |
Ending balances, shares at Jun. 30, 2015 | 161,423 | 77,765 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 45,021 | $ 78,815 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and depletion | 30,231 | 24,861 |
Amortization | 5,650 | 5,898 |
Write-off and impairment of intangibles and long-lived assets | 7,637 | |
Inventory reserve adjustment | 513 | |
(Gain) on sale of fixed assets | (953) | |
Unrealized loss on interest rate swaps | 40 | 145 |
Deferred income taxes | (13,456) | |
Stock compensation expense | 4,501 | 4,313 |
Change in operating assets and liabilities, net of acquired balances: | ||
Accounts receivable | 84,056 | (62,915) |
Inventories | 40,475 | (9,006) |
Prepaid expenses and other assets | 11,520 | 8,272 |
Accounts payable | (38,562) | (951) |
Accrued expenses | (4,062) | 1,503 |
Net cash provided by operating activities | 173,564 | 49,982 |
Cash flows from investing activities | ||
Proceeds from sale of fixed assets | 1,214 | |
Capital expenditures | (61,293) | (61,827) |
Net cash used in investing activities | (61,293) | (60,613) |
Cash flows from financing activities | ||
Proceeds from issuance of term loans | 0 | 41,000 |
Payments on term debt | (7,867) | (6,256) |
Change in other long-term debt and capital leases | (3,044) | (2,277) |
Proceeds from borrowing on revolving credit facility | 32,000 | |
Payments on revolving credit facility | (63,000) | |
Proceeds from option exercises | 1,759 | 2,306 |
Purchase of treasury stock | (662) | |
Tax effect of stock options exercised and dividend equivalents | 21 | 4,366 |
Distributions to non-controlling interest | (431) | |
Financing costs | (4,339) | (1,699) |
Net cash provided by (used in) financing activities | (13,470) | 5,347 |
Foreign currency adjustment | (236) | (17) |
Increase (decrease) in cash and cash equivalents | 98,565 | (5,301) |
Cash and cash equivalents: | ||
Beginning of period | 76,923 | 17,815 |
End of period | $ 175,488 | $ 12,514 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements of Fairmount Santrol Holdings Inc. (formerly FMSA Holdings Inc.) and its consolidated subsidiaries (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 presentation of the financial position, results of operations, comprehensive income and cash flows of the reported interim periods. The condensed consolidated balance sheet as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. 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 2014 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. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In February 2015, the FASB issued Accounting Standards Update No. 2015-02 – Consolidation On April 1, 2015, the FASB voted to propose a delay in the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, and the interim periods within that year. As such, for a public business entity with a calendar year-end, the ASU would be effective on January 1, 2018, for both its interim and annual reporting periods. This proposal represents a one-year deferral from the original effective date. The proposed new effective date guidance will allow early adoption for all entities (i.e., both public business entities and other entities) as of the original effective date for public business entities, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. Early adoption by public business entities was not permitted under the original effective date guidance. The Company is in the process of evaluating the effect of the new guidance on its financial statements and disclosures. In April 2015, the FASB issued Accounting Standards Update No. 2015-03 – Interest – Imputation of Interest In April 2015, the FASB issued Accounting Standards Update No. 2015-05 – Intangibles – Goodwill and Other – Internal-Use Software In July 2015, the FASB issued Accounting Standards Update No. 2015-11 – Inventory (Topic 330) – Simplifying the Measurement of Inventory |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories At June 30, 2015 and December 31, 2014, inventories consisted of the following: June 30, 2015 December 31, 2014 Raw materials $ 16,378 $ 19,803 Work-in-process 15,204 23,568 Finished goods 60,760 91,202 92,342 134,573 Less: LIFO reserve (1,717 ) (2,960 ) Inventories $ 90,625 $ 131,613 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 3. Property, Plant and Equipment At June 30, 2015 and December 31, 2014, property, plant and equipment consisted of the following: June 30, 2015 December 31, 2014 Land and improvements $ 77,686 $ 63,800 Mineral reserves and mine development 313,905 303,804 Machinery and equipment 534,370 478,225 Buildings and improvements 147,685 146,165 Furniture, fixtures and other 3,732 3,604 Construction in progress 89,644 110,677 1,167,022 1,106,275 Accumulated depletion and depreciation (301,238 ) (265,001 ) Property, plant and equipment, net $ 865,784 $ 841,274 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-Term Debt At June 30, 2015 and December 31, 2014, long-term debt consisted of the following: June 30, 2015 December 31, 2014 Term B-1 Loans $ 156,233 $ 319,917 Term B-2 Loans 906,651 910,900 Extended Term B-1 Loans 160,653 — Industrial Revenue bond 10,000 10,000 Revolving credit facility and other 1,082 1,098 Capital leases, net 11,824 10,724 1,246,443 1,252,639 Less: current portion (16,797 ) (17,274 ) Long-term debt including leases $ 1,229,646 $ 1,235,365 On September 5, 2013, the Company entered into the Second Amended and Restated Credit Agreement (the “2013 Amended Credit Agreement”). The 2013 Amended Credit Agreement initially contained a revolving credit facility with a commitment amount of $75,000 (“Revolving Credit Facility”) and two tranches of term loans, pursuant to which the Company has borrowed $325,000 in aggregate principal amount under a term B-1 facility (“Term B-1 Loans”) and $885,000 in aggregate principal under a term B-2 facility (“Term B-2 Loans”). The Revolving Credit Facility and the Term B-1 and B-2 Loans are secured by a first priority lien on substantially all of the Company’s domestic assets. In February 2014 the Company executed a joinder agreement to borrow $41,000 as an additional Term B-2 Loan. The proceeds of this borrowing were used to repay then outstanding amounts under the revolving credit facility. The additional borrowings mature on the same date as the then existing Term B-2 Loan (September 5, 2019) and the required quarterly principal repayments for the Term B-2 Loan were increased by one-quarter of 1% of the amount borrowed with the balance due at maturity. There were no other changes in the terms, interest rates or covenants of the 2013 Amended Credit Agreement. In March 2014, the Company amended the 2013 Amended Credit Agreement whereby the applicable margin for the Term B-1 In August and September 2014, the Company executed additional joinder agreements for incremental revolving commitments to the Revolving Credit Facility for $46,629 and $3,371 respectively, which brings the Company’s total Revolving Credit Facility commitment to $125,000. As of June 30, 2015, there was $113,467 available borrowing remaining on this facility. There were no other changes in the terms, interest rates or covenants of the Revolving Credit Facility. As of April 30, 2015, the Company entered into the Third Amendment to the Second Amended and Restated Credit Agreement (the “April 2015 Amendment”) to the 2013 Amended Credit Agreement. The April 2015 Amendment provides for the extension of the maturity date of $46,036 of outstanding Term B-1 Loans from March 15, 2017 (the “Stated B-1 Maturity Date”) to September 5, 2019 (the “Extended Maturity Date,” which is the same maturity date applicable to Term B-2 Loans under the Credit Agreement). The Company paid a fee of approximately $1,151 to the lender as a consent fee. As of May 15, 2015, the Company entered into the Fourth Amendment to the Second Amended and Restated Credit Agreement (the “May 2015 Amendment”). The May 2015 Amendment provides for the extension of the maturity date of $115,458 of outstanding Term B-1 Loans from March 15, 2017 (the “Stated B-1 Maturity Date”) to September 5, 2019 (the “Extended Maturity Date,” which is the same maturity date applicable to Term B-2 Loans under the Credit Agreement). Such loans (together with other loans whose maturity dates were so extended under a prior amendment to the Credit Agreement, “Extended Term B-1 Loans”) effectively will be converted to Term B-2 Loans, and will be treated as Term B-2 Loans under the Credit Agreement for all purposes (including pricing), except for certain minor administrative differences and except that, prior to the Stated B-1 Maturity Date, Extended Term B-1 Loans shall continue to amortize as Term B-1 Loans. Upon giving effect to the April 2015 and May 2015 Amendments, the maturity date of approximately $161,495 in principal amount of outstanding Term B-1 Loans was so extended, and leaving approximately $156,619 in principal amount of outstanding Term B-1 Loans (not including Extended Term B-1 Loans) maturing on the Stated B-1 Maturity Date. The Company paid a fee of approximately $2,886 to the lender as a consent fee for the May 2015 Amendment. After the Amendments above, $156,619 in principal amount of outstanding Term B-1 Loans mature on March 15, 2017 and $1,073,706 in principal amount of outstanding Term B-2 Loans (including Extended Term B-1 Loans) mature on September 5, 2019. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 5. Earnings per Share The table below shows the computation of basic and diluted earnings per share for the six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income attributable to Fairmount Santrol Holdings Inc. $ 14,137 $ 43,921 $ 44,896 $ 78,460 Denominator: Basic weighted average shares outstanding 161,368,468 156,684,036 161,160,994 156,573,196 Dilutive effect of employee stock options & RSU’s 5,498,349 8,958,252 5,470,847 9,011,972 Diluted weighted average shares outstanding 166,866,817 165,642,288 166,631,841 165,585,168 Earnings per common share - basic $ 0.09 $ 0.28 $ 0.28 $ 0.50 Earnings per common share - diluted $ 0.08 $ 0.27 $ 0.27 $ 0.47 The calculation of diluted weighted average shares outstanding for the six months ended June 30, 2015 and 2014 excludes 6,914,209 and 374,850 potential common shares, respectively, because the effect of including these potential common shares would be antidilutive. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 6. Derivative Instruments The Company enters into interest rate swap agreements as a means to hedge its variable interest rate risk on debt instruments. The current notional value of these swap agreements is $520,225 at June 30, 2015 and effectively fixes the variable rate in a range of 0.83% to 3.115%. The notional amount of these instruments is scheduled to increase over time to provide a hedge against variable interest rate debt. The interest rate swap agreements mature at various dates between October 31, 2015 and September 5, 2019. 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 as part of a hedging relationship and, if it is, depending on the type of hedging relationship. For cash flow hedges in which the Company is hedging the variability of cash flows related to a variable-rate liability, the effective portion of the gain or loss on the derivative instrument is reported in other comprehensive income in the periods during which earnings are impacted by the variability of the cash flows of the hedged item. The ineffective portion of all hedges is recognized in current period earnings. As interest expense is accrued on the debt obligation, amounts in accumulated other comprehensive income (loss) related to the interest rate swaps are reclassified into income to obtain a net cost on the debt obligation equal to the effective yield of the fixed rate of each swap. In the event that an interest rate swap is terminated prior to maturity, gains or losses in accumulated other comprehensive income (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. The following table summarizes the fair values and the respective classification in the Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014: Assets (Liabilities) Interest Rate Swap Agreements Balance Sheet Classification June 30, 2015 December 31, 2014 Designated as hedges Other long-term liabilities $ (14,263 ) $ (10,253 ) Not designated as hedges Other long-term liabilities (557 ) (1,443 ) Designated as hedges Other assets — 333 $ (14,820 ) $ (11,363 ) The Company recognized $16 and $21 in interest expense, representing the ineffective portion of interest rate swap agreements designated as hedges, in the six months ended June 30, 2015 and 2014, respectively. The Company expects $5,884 to be reclassified from accumulated other comprehensive income into interest expense in the twelve-month period ending June 30, 2016. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements Financial instruments held by the Company include cash equivalents, accounts receivable, accounts payable, long-term debt and interest rate swaps. The Company is also liable for contingent consideration from an acquisition 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 carried 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 book 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 the Company’s long-term debt is recognized at amortized cost. The value of the Company’s Term B-1, Extended Term, and Term B-2 loans differs from amortized costs 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 fair value of the Company’s Term B-1 loan was $153,490 and $295,750, Extended Term loan was $150,206 and $0, and Term B-2 loan was $857,577 and $796,500 at June 30, 2015 and December 31, 2014, respectively. The fair value of certain of the Company’s long-lived assets held and used with a carrying value of $15,271 was written down to a fair value of $7,634 in accordance with ASC 360-10. The resulting impairment charge of $7,637, which was based on management’s estimate of the disposed value of the assets, was recognized in restructuring and other charges in the current period. The following tables present the amounts carried at fair value as of June 30, 2015 and December 31, 2014 for the Company’s other financial instruments. Recurring Fair Value Measurements Quoted Prices Other Unobservable (Level 3) Total June 30, 2015 Interest rate swap agreements $ — $ (14,820 ) $ — $ (14,820 ) $ — $ (14,820 ) $ — $ (14,820 ) December 31, 2014 Interest rate swap agreements $ — $ (11,363 ) $ — $ (11,363 ) $ — $ (11,363 ) $ — $ (11,363 ) Non-Recurring Fair Value Measurements Quoted Prices Other Unobservable (Level 3) Total June 30, 2015 Long-lived assets held and used $ — $ — $ 7,634 $ 7,634 $ — $ — $ 7,634 $ 7,634 December 31, 2014 Long-lived assets held and used $ — $ — $ 15,271 $ 15,271 $ — $ — $ 15,271 $ 15,271 |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock and Stock-Based Compensation | 8. Common Stock and Stock-Based Compensation The Company granted options to purchase 1,614,604 shares of common stock in the six months ended June 30, 2015. No options were granted in the six months ended June 30, 2014. The average grant date fair value was $3.97 for options issued in the six months ended June 30, 2015. The Company was not publicly traded in the six months ended June 30, 2014. The company issued restricted stock units of 360,412 in the six months ended June 30, 2015. No restricted stock units were issued in the six months ended June 30, 2014. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. 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 June 30, 2015, the Company recorded a tax benefit of $26,677 on loss before income taxes of $12,536. For the six months ended June 30, 2015, the Company recorded a tax benefit of $16,060 on income before income taxes of $28,961. For the three months ended June 30, 2014, the Company recorded tax expense of $18,146 on income before income taxes of $62,349. For the six months ended June 30, 2014, the Company recorded tax expense of $32,412 on income before income taxes of $111,227. The effective tax rate for the three and six months ended June 30, 2015 was negative 212.8% and negative 55.5%, respectively, as compared with 29.1% for the three and six months ended June 30, 2014, respectively. The decreases in the effective tax rate from the corresponding fiscal periods in 2014 was primarily due to a greater impact on the effective tax rate from the depletion deduction. |
Defined Benefit Plans
Defined Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plans | 10. Defined Benefit Plans The Company currently maintains two multiemployer defined benefit pension plans covering union employees at certain facilities that provide benefits based upon years of service or a combination of employee earnings and length of service. The Company is in the process of closing these facilities and is in the process of negotiating a withdrawal from the plans. The estimated cost of the withdrawal liability on a net present value basis has been recorded in the quarter. Net periodic benefit cost recognized for these plans for the six months ended June 30, 2015 and 2014 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ 27 $ 19 $ 54 $ 38 Interest cost 85 83 170 166 Expected return on plan assets (127 ) (146 ) (254 ) (292 ) Amortization of prior service cost 4 5 8 10 Amortization of net actuarial loss 70 40 140 80 Net periodic benefit cost $ 59 $ 1 $ 118 $ 2 The Company contributed $33 and $130 during the six months ended June 30, 2015 and 2014, respectively. Total expected employer contributions during the year ending December 31, 2015 are $63. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 11. Accumulated Other Comprehensive Income The components of accumulated other comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc. at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 Gross Tax Effect Net Amount Foreign currency translation $ (8,332 ) $ — $ (8,332 ) Additional pension liability (4,088 ) 1,564 (2,524 ) Unrealized gain (loss) on interest rate hedges (12,353 ) 4,459 (7,894 ) $ (24,773 ) $ 6,023 $ (18,750 ) December 31, 2014 Gross Tax Effect Net Amount Foreign currency translation $ (4,979 ) $ — $ (4,979 ) Additional pension liability (4,236 ) 1,588 (2,648 ) Unrealized gain (loss) on interest rate hedges (8,292 ) 3,110 (5,182 ) $ (17,507 ) $ 4,698 $ (12,809 ) The following table presents the changes in accumulated other comprehensive income by component for the six months ended June 30, 2015: Six Months Ended June 30, 2015 Unrealized Additional Foreign Total Beginning balance $ (5,182 ) $ (2,648 ) $ (4,979 ) $ (12,809 ) Other comprehensive income (loss) before reclassifications (3,401 ) — (3,353 ) (6,754 ) Amounts reclassified from accumulated other comprehensive income (loss) 689 124 — 813 Ending balance $ (7,894 ) $ (2,524 ) $ (8,332 ) $ (18,750 ) The following table presents the reclassifications out of accumulated other comprehensive income during the six months ended June 30, 2015: Details about accumulated other comprehensive income Amount reclassified Affected line item on Change in fair value of derivative swap agreements Interest rate hedging contracts $ 1,269 Interest expense Tax effect (579 ) Tax expense (benefit) $ 690 Net of tax Amortization of pension obligations Prior service cost $ 8 Cost of sales Actuarial losses 140 Cost of sales 148 Total before tax Tax effect (25 ) Tax expense 123 Net of tax Total reclassifications for the period $ 813 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies 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 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. The Company leases certain machinery, equipment (including railcars), buildings and office space under operating lease arrangements. Total rent expense associated with these leases was $33,503 and $25,458 for the six months ended June 30, 2015 and 2014, respectively. The Company is subject to a contingent consideration arrangement related to the purchase of Self-Suspending Proppant LLC (“SSP”), which was accounted for as an acquisition of a group of assets. The contingent consideration is based on a fixed percentage of the cumulative product margin, less certain adjustments, generated by sales of Propel SSP and other products incorporating SSP technology for the five years commencing on October 1, 2015. Because the earnout is dependent on future sales and the related cost of sales, the amounts of which are highly uncertain, it is not currently possible to estimate the amounts that will be paid. The contingent consideration will be accrued and capitalized as part of the cost of the SSP assets at the time a payment is probable and reasonably estimable. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 13. Transactions with Related Parties The Company had purchases from an affiliated entity for freight, logistic services and consulting services related to its operations in China of $120 and $976 in the six months ended June 30, 2015 and 2014, respectively. The Company had purchases from an affiliated entity for material purchases related to its operations in China of $62 and $0 in the six months ended June 30, 2015 and 2014, respectively. The Company paid management fees of $0 and $526 in the six months ended June 30, 2015 and 2014, respectively. Concurrent with the Company’s initial public offering on October 3, 2014, the Company no longer pays a management fee to A.S. LLC. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. 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 contribution margin, which excludes certain corporate costs not associated with the operations of the segment. These corporate costs are separately stated below and include costs that are related to functional areas such as operations management, corporate purchasing, accounting, treasury, information technology, legal and human resources. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue Proppant Solutions $ 188,150 $ 300,685 $ 461,019 $ 567,185 Industrial & Recreational Products 33,173 33,606 61,794 62,038 Total revenue 221,323 334,291 522,813 629,223 Segment contribution margin Proppant Solutions 35,416 103,900 119,235 192,928 Industrial & Recreational Products (894 ) 10,613 6,182 16,835 Total segment contribution margin 34,522 114,513 125,417 209,763 Operating expenses excluded from segment contribution margin Selling, general, and administrative 12,694 18,884 28,454 32,010 Depreciation, depletion, and amortization 16,276 14,584 32,499 27,522 Stock compensation expense 2,618 2,219 4,501 4,313 Corporate restructuring charges and other operating expense (income) 576 (345 ) 800 (328 ) Interest expense, net 14,894 16,572 30,202 34,478 Other non-operating expense (income) — 250 — 541 Income (loss) before provision for taxes $ (12,536 ) $ 62,349 $ 28,961 $ 111,227 |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 15. Restructuring and Other Charges As a result of recent challenging conditions in the proppant market, in the first and second quarters of 2015 the Company took actions to rationalize its overall operational footprint and reduce selling, general, and administrative costs. The restructuring program primarily consists of workforce reductions and closure of excess facilities. The expected completion date of these activities is September 30, 2015. A summary of the restructuring and other costs recognized for the six months ended June 30, 2015 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Restructuring and other charges Workforce reduction costs, including one-time severance payments $ 401 $ — $ 725 $ — Write-down to net realizable value of exited facilities and other capitalized costs 7,637 — 7,637 — Other exit costs, including multiemployer pension plan withdrawal liability and additional cash costs to exit facilities 6,786 — 6,786 — Total restructuring and other charges 14,824 — 15,148 — While these restructuring activities primarily were driven by the decline in proppant demand in 2015, certain plants supporting the Industrial & Recreational Products segment have been adversely impacted as well. A summary of the restructuring and other costs by operating segment is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Restructuring and other charges Proppant Solutions $ 2,402 $ — $ 2,402 $ — Industrial & Recreational Products 12,085 — 12,085 — Corporate 337 — 661 — Total restructuring and other charges $ 14,824 $ — $ 15,148 $ — |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements of Fairmount Santrol Holdings Inc. (formerly FMSA Holdings Inc.) and its consolidated subsidiaries (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 presentation of the financial position, results of operations, comprehensive income and cash flows of the reported interim periods. The condensed consolidated balance sheet as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. 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 2014 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In February 2015, the FASB issued Accounting Standards Update No. 2015-02 – Consolidation On April 1, 2015, the FASB voted to propose a delay in the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, and the interim periods within that year. As such, for a public business entity with a calendar year-end, the ASU would be effective on January 1, 2018, for both its interim and annual reporting periods. This proposal represents a one-year deferral from the original effective date. The proposed new effective date guidance will allow early adoption for all entities (i.e., both public business entities and other entities) as of the original effective date for public business entities, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. Early adoption by public business entities was not permitted under the original effective date guidance. The Company is in the process of evaluating the effect of the new guidance on its financial statements and disclosures. In April 2015, the FASB issued Accounting Standards Update No. 2015-03 – Interest – Imputation of Interest In April 2015, the FASB issued Accounting Standards Update No. 2015-05 – Intangibles – Goodwill and Other – Internal-Use Software In July 2015, the FASB issued Accounting Standards Update No. 2015-11 – Inventory (Topic 330) – Simplifying the Measurement of Inventory |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At June 30, 2015 and December 31, 2014, inventories consisted of the following: June 30, 2015 December 31, 2014 Raw materials $ 16,378 $ 19,803 Work-in-process 15,204 23,568 Finished goods 60,760 91,202 92,342 134,573 Less: LIFO reserve (1,717 ) (2,960 ) Inventories $ 90,625 $ 131,613 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | At June 30, 2015 and December 31, 2014, property, plant and equipment consisted of the following: June 30, 2015 December 31, 2014 Land and improvements $ 77,686 $ 63,800 Mineral reserves and mine development 313,905 303,804 Machinery and equipment 534,370 478,225 Buildings and improvements 147,685 146,165 Furniture, fixtures and other 3,732 3,604 Construction in progress 89,644 110,677 1,167,022 1,106,275 Accumulated depletion and depreciation (301,238 ) (265,001 ) Property, plant and equipment, net $ 865,784 $ 841,274 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At June 30, 2015 and December 31, 2014, long-term debt consisted of the following: June 30, 2015 December 31, 2014 Term B-1 Loans $ 156,233 $ 319,917 Term B-2 Loans 906,651 910,900 Extended Term B-1 Loans 160,653 — Industrial Revenue bond 10,000 10,000 Revolving credit facility and other 1,082 1,098 Capital leases, net 11,824 10,724 1,246,443 1,252,639 Less: current portion (16,797 ) (17,274 ) Long-term debt including leases $ 1,229,646 $ 1,235,365 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The table below shows the computation of basic and diluted earnings per share for the six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income attributable to Fairmount Santrol Holdings Inc. $ 14,137 $ 43,921 $ 44,896 $ 78,460 Denominator: Basic weighted average shares outstanding 161,368,468 156,684,036 161,160,994 156,573,196 Dilutive effect of employee stock options & RSU’s 5,498,349 8,958,252 5,470,847 9,011,972 Diluted weighted average shares outstanding 166,866,817 165,642,288 166,631,841 165,585,168 Earnings per common share - basic $ 0.09 $ 0.28 $ 0.28 $ 0.50 Earnings per common share - diluted $ 0.08 $ 0.27 $ 0.27 $ 0.47 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instrument and the 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 June 30, 2015 and December 31, 2014: Assets (Liabilities) Interest Rate Swap Agreements Balance Sheet Classification June 30, 2015 December 31, 2014 Designated as hedges Other long-term liabilities $ (14,263 ) $ (10,253 ) Not designated as hedges Other long-term liabilities (557 ) (1,443 ) Designated as hedges Other assets — 333 $ (14,820 ) $ (11,363 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value | The following tables present the amounts carried at fair value as of June 30, 2015 and December 31, 2014 for the Company’s other financial instruments. Recurring Fair Value Measurements Quoted Prices Other Unobservable (Level 3) Total June 30, 2015 Interest rate swap agreements $ — $ (14,820 ) $ — $ (14,820 ) $ — $ (14,820 ) $ — $ (14,820 ) December 31, 2014 Interest rate swap agreements $ — $ (11,363 ) $ — $ (11,363 ) $ — $ (11,363 ) $ — $ (11,363 ) Non-Recurring Fair Value Measurements Quoted Prices Other Unobservable (Level 3) Total June 30, 2015 Long-lived assets held and used $ — $ — $ 7,634 $ 7,634 $ — $ — $ 7,634 $ 7,634 December 31, 2014 Long-lived assets held and used $ — $ — $ 15,271 $ 15,271 $ — $ — $ 15,271 $ 15,271 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Periodic Benefit Cost Recognized for Plans | Net periodic benefit cost recognized for these plans for the six months ended June 30, 2015 and 2014 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ 27 $ 19 $ 54 $ 38 Interest cost 85 83 170 166 Expected return on plan assets (127 ) (146 ) (254 ) (292 ) Amortization of prior service cost 4 5 8 10 Amortization of net actuarial loss 70 40 140 80 Net periodic benefit cost $ 59 $ 1 $ 118 $ 2 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc. at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 Gross Tax Effect Net Amount Foreign currency translation $ (8,332 ) $ — $ (8,332 ) Additional pension liability (4,088 ) 1,564 (2,524 ) Unrealized gain (loss) on interest rate hedges (12,353 ) 4,459 (7,894 ) $ (24,773 ) $ 6,023 $ (18,750 ) December 31, 2014 Gross Tax Effect Net Amount Foreign currency translation $ (4,979 ) $ — $ (4,979 ) Additional pension liability (4,236 ) 1,588 (2,648 ) Unrealized gain (loss) on interest rate hedges (8,292 ) 3,110 (5,182 ) $ (17,507 ) $ 4,698 $ (12,809 ) |
Changes in Accumulated Other Comprehensive Income by Component | The following table presents the changes in accumulated other comprehensive income by component for the six months ended June 30, 2015: Six Months Ended June 30, 2015 Unrealized Additional Foreign Total Beginning balance $ (5,182 ) $ (2,648 ) $ (4,979 ) $ (12,809 ) Other comprehensive income (loss) before reclassifications (3,401 ) — (3,353 ) (6,754 ) Amounts reclassified from accumulated other comprehensive income (loss) 689 124 — 813 Ending balance $ (7,894 ) $ (2,524 ) $ (8,332 ) $ (18,750 ) |
Reclassifications out of Accumulated Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income during the six months ended June 30, 2015: Details about accumulated other comprehensive income Amount reclassified Affected line item on Change in fair value of derivative swap agreements Interest rate hedging contracts $ 1,269 Interest expense Tax effect (579 ) Tax expense (benefit) $ 690 Net of tax Amortization of pension obligations Prior service cost $ 8 Cost of sales Actuarial losses 140 Cost of sales 148 Total before tax Tax effect (25 ) Tax expense 123 Net of tax Total reclassifications for the period $ 813 Net of tax |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Reportable Segments | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue Proppant Solutions $ 188,150 $ 300,685 $ 461,019 $ 567,185 Industrial & Recreational Products 33,173 33,606 61,794 62,038 Total revenue 221,323 334,291 522,813 629,223 Segment contribution margin Proppant Solutions 35,416 103,900 119,235 192,928 Industrial & Recreational Products (894 ) 10,613 6,182 16,835 Total segment contribution margin 34,522 114,513 125,417 209,763 Operating expenses excluded from segment contribution margin Selling, general, and administrative 12,694 18,884 28,454 32,010 Depreciation, depletion, and amortization 16,276 14,584 32,499 27,522 Stock compensation expense 2,618 2,219 4,501 4,313 Corporate restructuring charges and other operating expense (income) 576 (345 ) 800 (328 ) Interest expense, net 14,894 16,572 30,202 34,478 Other non-operating expense (income) — 250 — 541 Income (loss) before provision for taxes $ (12,536 ) $ 62,349 $ 28,961 $ 111,227 |
Restructuring and Other Charg33
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Other Costs Recognized | A summary of the restructuring and other costs recognized for the six months ended June 30, 2015 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Restructuring and other charges Workforce reduction costs, including one-time severance payments $ 401 $ — $ 725 $ — Write-down to net realizable value of exited facilities and other capitalized costs 7,637 — 7,637 — Other exit costs, including multiemployer pension plan withdrawal liability and additional cash costs to exit facilities 6,786 — 6,786 — Total restructuring and other charges 14,824 — 15,148 — |
Summary of Restructuring and Other Costs by Operating Segment | A summary of the restructuring and other costs by operating segment is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Restructuring and other charges Proppant Solutions $ 2,402 $ — $ 2,402 $ — Industrial & Recreational Products 12,085 — 12,085 — Corporate 337 — 661 — Total restructuring and other charges $ 14,824 $ — $ 15,148 $ — |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 16,378 | $ 19,803 |
Work-in-process | 15,204 | 23,568 |
Finished goods | 60,760 | 91,202 |
Inventory gross | 92,342 | 134,573 |
Less: LIFO reserve | (1,717) | (2,960) |
Inventories | $ 90,625 | $ 131,613 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property,Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 1,167,022 | $ 1,106,275 |
Accumulated depletion and depreciation | (301,238) | (265,001) |
Property, plant, and equipment, net | 865,784 | 841,274 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 77,686 | 63,800 |
Mineral Reserves and Mine Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 313,905 | 303,804 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 534,370 | 478,225 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 147,685 | 146,165 |
Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 3,732 | 3,604 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 89,644 | $ 110,677 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | May. 15, 2015 | Apr. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||
Industrial Revenue bond | $ 10,000 | $ 10,000 | ||
Revolving credit facility and other | 1,082 | 1,098 | ||
Capital leases, net | 11,824 | 10,724 | ||
Long term debt | 1,246,443 | 1,252,639 | ||
Long term debt | 1,246,443 | 1,252,639 | ||
Less: current portion | (16,797) | (17,274) | ||
Long-term debt including leases | 1,229,646 | 1,235,365 | ||
Term B-1 Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Term Loans | 156,233 | 319,917 | ||
Revolving credit facility and other | $ 115,458 | $ 46,036 | ||
Term B-2 Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Term Loans | 906,651 | $ 910,900 | ||
Extended Term B-1 Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Term Loans | $ 160,653 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||
Sep. 30, 2014 | Aug. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Jun. 30, 2015 | May. 15, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Sep. 05, 2013 | |
Debt Instrument [Line Items] | |||||||||
Total Revolving Credit Facility commitment | $ 125,000,000 | $ 125,000,000 | |||||||
Outstanding term loans | $ 1,082,000 | $ 1,098,000 | |||||||
Available borrowing remaining on the credit facility | 113,467,000 | ||||||||
Consent fee paid | $ 2,886,000 | ||||||||
Additional Joinder Agreements [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, incremental revolving commitments | $ 3,371,000 | $ 46,629,000 | |||||||
Amended Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Revolving Credit Facility commitment | $ 75,000,000 | ||||||||
Term B-1 Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding term loans | $ 115,458,000 | $ 46,036,000 | |||||||
Debt instrument borrowings, maturity date | Mar. 15, 2017 | ||||||||
Consent fee paid | $ 1,151,000 | ||||||||
Term B-1 Loans [Member] | Amended Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding term loans | 325,000,000 | ||||||||
Term B-1 Loans [Member] | Stated B-1 Maturity Date March 15, 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding term loans | $ 156,619,000 | ||||||||
Debt instrument borrowings, maturity date | Mar. 15, 2017 | ||||||||
Term B-1 Loans [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reduced margin rate | 2.50% | ||||||||
Term B-1 Loans [Member] | Eurodollar [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reduced margin rate | 3.50% | ||||||||
Term B-2 Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument increased borrowings | $ 41,000,000 | ||||||||
Debt instrument borrowings, interest rate term | One-quarter of 1% | ||||||||
Debt instrument borrowings, maturity date | Sep. 5, 2019 | ||||||||
Term B-2 Loans [Member] | Amended Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding term loans | $ 885,000,000 | ||||||||
Term B-2 Loans [Member] | Extended Maturity Date September 5, 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding term loans | $ 1,073,706,000 | ||||||||
Debt instrument borrowings, maturity date | Sep. 5, 2019 | ||||||||
Term B-2 Loans [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reduced margin rate | 2.50% | ||||||||
Term B-2 Loans [Member] | Eurodollar [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reduced margin rate | 3.50% | ||||||||
Pre Amendment [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding term loans | $ 161,495,000 | ||||||||
Debt instrument borrowings, maturity date | Mar. 15, 2017 | ||||||||
Post Amendment [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument borrowings, maturity date | Sep. 5, 2019 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net income attributable to Fairmount Santrol Holdings Inc. | $ 14,137 | $ 43,921 | $ 44,896 | $ 78,460 |
Denominator: | ||||
Basic weighted average shares outstanding | 161,368,468 | 156,684,036 | 161,160,994 | 156,573,196 |
Dilutive effect of employee stock options & RSU's | 5,498,349 | 8,958,252 | 5,470,847 | 9,011,972 |
Diluted weighted average shares outstanding | 166,866,817 | 165,642,288 | 166,631,841 | 165,585,168 |
Earnings per common share - basic | $ 0.09 | $ 0.28 | $ 0.28 | $ 0.50 |
Earnings per common share - diluted | $ 0.08 | $ 0.27 | $ 0.27 | $ 0.47 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Securities excluded from computation of earning per share | 6,914,209 | 374,850 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative [Line Items] | ||||
Interest expense | $ 14,894,000 | $ 16,572,000 | $ 30,202,000 | $ 34,478,000 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative [Line Items] | ||||
Interest expense | 5,884,000 | |||
Interest Rate Swap Agreements [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of swap agreements | $ 520,225,000 | 520,225,000 | ||
Interest expense | $ 16,000 | $ 21,000 | ||
Interest Rate Swap Agreements [Member] | Minimum [Member] | ||||
Derivative [Line Items] | ||||
Derivative, minimum variable interest rate | 0.83% | 0.83% | ||
Interest rate swap agreement, maturity date | Oct. 31, 2015 | |||
Interest Rate Swap Agreements [Member] | Maximum [Member] | ||||
Derivative [Line Items] | ||||
Derivative, maximum variable interest rate | 3.115% | 3.115% | ||
Interest rate swap agreement, maturity date | Sep. 5, 2019 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instrument and the Respective Classification in Condensed Consolidated Balance Sheets (Detail) - Interest Rate Swap Agreements [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative, fair value | $ (14,820) | $ (11,363) |
Designated as Hedges [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (14,263) | (10,253) |
Designated as Hedges [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 333 | |
Not Designated as Hedges [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (557) | $ (1,443) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Long Lived Assets Held and Used [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Carrying value | $ 15,271 | |
Impairment charge of long-lived assets held and used | 7,637 | |
Non-Recurring Fair Value Measurements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Fair value | 7,634 | $ 15,271 |
Non-Recurring Fair Value Measurements [Member] | Long Lived Assets Held and Used [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Fair value | 7,634 | 15,271 |
Quoted Prices in Active Markets (Level 1) [Member] | Term B-1 Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 153,490 | 295,750 |
Quoted Prices in Active Markets (Level 1) [Member] | Extended Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 150,206 | 0 |
Quoted Prices in Active Markets (Level 1) [Member] | Term B-2 Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 857,577 | $ 796,500 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Interest Rate Swap Agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ (14,820) | $ (11,363) |
Recurring Fair Value Measurements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | (14,820) | (11,363) |
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 | (14,820) | (11,363) |
Non-Recurring Fair Value Measurements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Fair value | 7,634 | 15,271 |
Non-Recurring Fair Value Measurements [Member] | Long Lived Assets Held and Used [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Fair value | 7,634 | 15,271 |
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) | (14,820) | (11,363) |
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 | (14,820) | (11,363) |
Unobservable Inputs (Level 3) [Member] | Non-Recurring Fair Value Measurements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Fair value | 7,634 | 15,271 |
Unobservable Inputs (Level 3) [Member] | Non-Recurring Fair Value Measurements [Member] | Long Lived Assets Held and Used [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held and used, Fair value | $ 7,634 | $ 15,271 |
Common Stock and Stock Based Co
Common Stock and Stock Based Compensation - Additional Information (Detail) - Common Stock [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Based Compensation [Line Items] | ||
Number of shares granted to purchase | 1,614,604 | 0 |
Average grant date fair value of options issued | $ 3.97 | |
Restricted stock units issued | 360,412 | 0 |
IncomeTaxes - Additional Inform
IncomeTaxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ (26,677) | $ 18,146 | $ (16,060) | $ 32,412 |
Income (Loss) before income taxes | $ (12,536) | $ 62,349 | $ 28,961 | $ 111,227 |
Effective income tax rate | (212.80%) | 29.10% | (55.50%) | 29.10% |
Defined Benefit Plans - Additio
Defined Benefit Plans - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)Pension_Plan | Jun. 30, 2014USD ($) | |
Compensation and Retirement Disclosure [Abstract] | ||
Number of defined benefit pension plans | Pension_Plan | 2 | |
Pension and postretirement contributions | $ 33 | $ 130 |
Expected contribution for pension plan | $ 63 |
Defined Benefit Plans - Net Per
Defined Benefit Plans - Net Periodic Benefit Cost Recognized for Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Sale Of Subsidiary [Abstract] | ||||
Service cost | $ 27 | $ 19 | $ 54 | $ 38 |
Interest cost | 85 | 83 | 170 | 166 |
Expected return on plan assets | (127) | (146) | (254) | (292) |
Amortization of prior service cost | 4 | 5 | 8 | 10 |
Amortization of net actuarial loss | 70 | 40 | 140 | 80 |
Net periodic benefit cost | $ 59 | $ 1 | $ 118 | $ 2 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | $ (24,773) | $ (17,507) |
Accumulated other comprehensive income (loss), Tax Effect | 6,023 | 4,698 |
Accumulated other comprehensive income (loss) | (18,750) | (12,809) |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | (8,332) | (4,979) |
Accumulated other comprehensive income (loss) | (8,332) | (4,979) |
Additional Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | (4,088) | (4,236) |
Accumulated other comprehensive income (loss), Tax Effect | 1,564 | 1,588 |
Accumulated other comprehensive income (loss) | (2,524) | (2,648) |
Unrealized Gain (Loss) on Interest Rate Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | (12,353) | (8,292) |
Accumulated other comprehensive income (loss), Tax Effect | 4,459 | 3,110 |
Accumulated other comprehensive income (loss) | $ (7,894) | $ (5,182) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income by Component (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ (12,809) |
Other comprehensive income (loss) before reclassifications | (6,754) |
Amounts reclassified from accumulated other comprehensive income (loss) | 813 |
Ending balance | (18,750) |
Unrealized Gain (Loss) on Interest Rate Hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (5,182) |
Other comprehensive income (loss) before reclassifications | (3,401) |
Amounts reclassified from accumulated other comprehensive income (loss) | 689 |
Ending balance | (7,894) |
Additional Pension Liability [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (2,648) |
Amounts reclassified from accumulated other comprehensive income (loss) | 124 |
Ending balance | (2,524) |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (4,979) |
Other comprehensive income (loss) before reclassifications | (3,353) |
Ending balance | $ (8,332) |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income - Reclassifications out of Accumulated Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | $ (12,536) | $ 62,349 | $ 28,961 | $ 111,227 |
Tax expense (benefit) | 26,677 | (18,146) | 16,060 | (32,412) |
Net income | 14,141 | 44,203 | 45,021 | 78,815 |
Cost of sales | $ 165,130 | $ 211,190 | 367,678 | $ 402,302 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 813 | |||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Interest Rate Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 1,269 | |||
Tax expense (benefit) | (579) | |||
Net income | 690 | |||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 8 | |||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 140 | |||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Additional Pension Liability [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 148 | |||
Tax expense (benefit) | (25) | |||
Net income | $ 123 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Commitments And Contingencies [Line Items] | ||
Rent expense for lease | $ 33,503 | $ 25,458 |
Self-Suspending Proppant LLC [Member] | ||
Commitments And Contingencies [Line Items] | ||
Commitment period of sales | 5 years | |
Commitment commencing date | Oct. 1, 2015 |
Transactions with Related Par52
Transactions with Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases from an affiliated entity | $ 120 | $ 976 |
Management Services [Member] | ||
Related Party Transaction [Line Items] | ||
Management fees payment | 0 | 526 |
Material Purchases [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases from an affiliated entity | $ 62 | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | ||||
Revenue | $ 221,323 | $ 334,291 | $ 522,813 | $ 629,223 |
Segment contribution margin | ||||
Segment contribution margin | 34,522 | 114,513 | 125,417 | 209,763 |
Operating expenses excluded from segment contribution margin | ||||
Selling, general, and administrative | 19,204 | 27,390 | 43,224 | 49,168 |
Depreciation, depletion, and amortization | 16,276 | 14,584 | 32,499 | 27,522 |
Stock compensation expense | 2,618 | 2,219 | 4,501 | 4,313 |
Interest expense, net | 14,894 | 16,572 | 30,202 | 34,478 |
Other non-operating expense (income) | 250 | 541 | ||
Income (loss) before provision for income taxes | (12,536) | 62,349 | 28,961 | 111,227 |
Proppant Solutions [Member] | ||||
Revenue | ||||
Revenue | 188,150 | 300,685 | 461,019 | 567,185 |
Segment contribution margin | ||||
Segment contribution margin | 35,416 | 103,900 | 119,235 | 192,928 |
Industrial & Recreational Products [Member] | ||||
Revenue | ||||
Revenue | 33,173 | 33,606 | 61,794 | 62,038 |
Segment contribution margin | ||||
Segment contribution margin | (894) | 10,613 | 6,182 | 16,835 |
Corporate and Other [Member] | ||||
Operating expenses excluded from segment contribution margin | ||||
Selling, general, and administrative | 12,694 | 18,884 | 28,454 | 32,010 |
Depreciation, depletion, and amortization | 16,276 | 14,584 | 32,499 | 27,522 |
Stock compensation expense | 2,618 | 2,219 | 4,501 | 4,313 |
Corporate restructuring charges and other operating expense (income) | 576 | (345) | 800 | (328) |
Interest expense, net | $ 14,894 | 16,572 | $ 30,202 | 34,478 |
Other non-operating expense (income) | $ 250 | $ 541 |
Restructuring and Other Charg55
Restructuring and Other Charges - Summary of Restructuring and Other Costs Recognized (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Restructuring and other charges | ||
Workforce reduction costs, including one-time severance payments | $ 401 | $ 725 |
Write-down to net realizable value of exited facilities and other capitalized costs | 7,637 | 7,637 |
Other exit costs, including multiemployer pension plan withdrawal liability and additional cash costs to exit facilities | 6,786 | 6,786 |
Total restructuring and other charges | $ 14,824 | $ 15,148 |
Restructuring and Other Charg56
Restructuring and Other Charges - Summary of Restructuring and Other Costs by Operating Segment (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other charges | $ 14,824 | $ 15,148 |
Operating Segments [Member] | Proppant Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other charges | 2,402 | 2,402 |
Operating Segments [Member] | Industrial & Recreational Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other charges | 12,085 | 12,085 |
Corporate, Non-Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other charges | $ 337 | $ 661 |