Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 223,943,103 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 172,583,000 | $ 145,458,000 |
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately) | 131,752,000 | 118,464,000 |
Operating expenses | ||
Selling, general and administrative expenses | 22,470,000 | 18,278,000 |
Depreciation, depletion and amortization expense | 19,442,000 | 18,586,000 |
Asset impairments | 0 | 76,000 |
Other operating expense (income) | (1,060,000) | 330,000 |
Loss from operations | (21,000) | (10,276,000) |
Interest expense, net | 12,537,000 | 17,262,000 |
Other non-operating expense (income) | (5,000) | |
Loss before benefit from income taxes | (12,558,000) | (27,533,000) |
Benefit from income taxes | (1,148,000) | (15,754,000) |
Net loss | (11,410,000) | (11,779,000) |
Less: Net income (loss) attributable to the non-controlling interest | 178,000 | (3,000) |
Net loss attributable to Fairmount Santrol Holdings Inc. | $ (11,588,000) | $ (11,776,000) |
Loss per share | ||
Basic | $ (0.05) | $ (0.07) |
Diluted | $ (0.05) | $ (0.07) |
Weighted average number of shares outstanding | ||
Basic | 223,739 | 161,446 |
Diluted | 223,739 | 161,446 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (11,410) | $ (11,779) |
Other comprehensive income (loss), before tax | ||
Foreign currency translation adjustment | (39) | 147 |
Pension obligations | 61 | 74 |
Change in fair value of derivative agreements | 1,613 | (2,918) |
Total other comprehensive income (loss), before tax | 1,635 | (2,697) |
Provision (benefit) for income taxes related to items of other comprehensive income (loss) | 1,316 | (724) |
Comprehensive loss, net of tax | (11,091) | (13,752) |
Comprehensive income (loss) attributable to the non-controlling interest | 178 | (3) |
Comprehensive loss attributable to Fairmount Santrol Holdings Inc. | $ (11,269) | $ (13,749) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 210,664 | $ 194,069 |
Accounts receivable, net of allowance for doubtful accounts of $2,196 and $3,055 at March 31, 2017 and December 31, 2016, respectively | 95,345 | 78,942 |
Inventories, net | 61,688 | 52,650 |
Prepaid expenses and other assets | 6,240 | 7,065 |
Refundable income taxes | 19,132 | 21,077 |
Total current assets | 393,069 | 353,803 |
Property, plant and equipment, net | 722,461 | 727,735 |
Deferred income taxes | 1,244 | 1,244 |
Goodwill | 15,301 | 15,301 |
Intangibles, net | 94,186 | 95,341 |
Other assets | 9,023 | 9,486 |
Total assets | 1,235,284 | 1,202,910 |
Current liabilities | ||
Current portion of long-term debt | 11,617 | 10,707 |
Accounts payable | 51,545 | 37,263 |
Accrued expenses and deferred revenue | 45,435 | 26,185 |
Total current liabilities | 108,597 | 74,155 |
Long-term debt | 833,492 | 832,306 |
Deferred income taxes | 6,893 | 7,057 |
Other long-term liabilities | 43,105 | 38,272 |
Total liabilities | 992,087 | 951,790 |
Commitments and contingent liabilities (Note 13) | ||
Equity | ||
Preferred stock: $0.01 par value, 100,000 authorized shares Shares outstanding: 0 at March 31, 2017 and December 31, 2016 | ||
Common stock: $0.01 par value, 1,850,000 authorized shares Shares outstanding: 223,939 and 223,601 at March 31, 2017 and December 31, 2016, respectively | 2,422 | 2,422 |
Additional paid-in capital | 297,190 | 297,649 |
Retained earnings | 252,831 | 264,852 |
Accumulated other comprehensive loss | (18,683) | (19,002) |
Total equity attributable to Fairmount Santrol Holdings Inc. before treasury stock | 533,760 | 545,921 |
Less: Treasury stock at cost Shares in treasury: 18,409 and 18,666 at March 31, 2017 and December 31, 2016, respectively | (290,813) | (294,874) |
Total equity attributable to Fairmount Santrol Holdings Inc. | 242,947 | 251,047 |
Non-controlling interest | 250 | 73 |
Total equity | 243,197 | 251,120 |
Total liabilities and equity | $ 1,235,284 | $ 1,202,910 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,196 | $ 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 outstanding | 223,939,000 | 223,601,000 |
Shares in treasury | 18,409,000 | 18,666,000 |
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, 2015 | $ (60,368) | $ 2,391 | $ 776,705 | $ 405,044 | $ (17,693) | $ (1,227,663) | $ (61,216) | $ 848 |
Beginning balances, shares at Dec. 31, 2015 | 161,433 | 77,765 | ||||||
Stock options exercised | 101 | $ 1 | 100 | 101 | ||||
Stock options exercised, shares | 70 | |||||||
Stock compensation expense | 1,653 | 1,653 | 1,653 | |||||
Tax effect of stock options exercised, forfeited, or expired | (738) | (738) | (738) | |||||
Transactions with non-controlling interest | (535) | (535) | ||||||
Net income (loss) | (11,779) | (11,776) | (11,776) | (3) | ||||
Other comprehensive income (loss) | (1,973) | (1,973) | (1,973) | |||||
Ending balances at Mar. 31, 2016 | (73,639) | $ 2,392 | 777,720 | 393,268 | (19,666) | $ (1,227,663) | (73,949) | 310 |
Ending balances, shares at Mar. 31, 2016 | 161,503 | 77,765 | ||||||
Beginning balances at Dec. 31, 2016 | 251,120 | $ 2,422 | 297,649 | 264,852 | (19,002) | $ (294,874) | 251,047 | 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 options exercised, shares | 125 | |||||||
Stock compensation expense | $ 3,116 | 3,116 | 3,116 | |||||
Impact of adoption of ASU 2016-09 (See Note 9) | ASU 2016-09 [Member] | (699) | (699) | (699) | |||||
Tax impact of adoption of ASU 2016-09 | ASU 2016-09 [Member] | 266 | 266 | 266 | |||||
Transactions with non-controlling interest | (1) | (1) | ||||||
Net income (loss) | (11,410) | (11,588) | (11,588) | 178 | ||||
Other comprehensive income (loss) | 319 | 319 | 319 | |||||
Ending balances at Mar. 31, 2017 | $ 243,197 | $ 2,422 | $ 297,190 | $ 252,831 | $ (18,683) | $ (290,813) | $ 242,947 | $ 250 |
Ending balances, shares at Mar. 31, 2017 | 223,939 | 18,409 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Cash Flows [Abstract] | ||
Net loss | $ (11,410) | $ (11,779) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and depletion | 17,530 | 17,451 |
Amortization | 3,130 | 2,827 |
Reserve for doubtful accounts | (447) | 1,878 |
Asset impairments | 76 | |
Gain on sale of fixed assets | (714) | (112) |
Deferred income taxes and taxes payable | 119 | (16,139) |
Refundable income taxes | 1,945 | 2,948 |
Stock compensation expense | 2,416 | 1,653 |
Change in operating assets and liabilities: | ||
Accounts receivable | (15,956) | (9,608) |
Inventories | (9,038) | 1,103 |
Prepaid expenses and other assets | (1,078) | 3,286 |
Accounts payable | 12,981 | 1,980 |
Accrued expenses and deferred revenue | 26,489 | (4,150) |
Net cash provided by (used in) operating activities | 25,967 | (8,586) |
Cash flows from investing activities | ||
Proceeds from sale of fixed assets | 957 | 588 |
Capital expenditures and stripping costs | (7,025) | (13,744) |
Other investing activities | (758) | |
Net cash used in investing activities | (6,826) | (13,156) |
Cash flows from financing activities | ||
Payments on long-term debt | (2,170) | (3,128) |
Payments on capital leases and other long-term debt | (817) | (1,724) |
Proceeds from option exercises | 486 | 101 |
Tax effect of stock options exercised, forfeited, or expired | (738) | |
Transactions with non-controlling interest | (1) | (535) |
Net cash used in financing activities | (2,502) | (6,024) |
Change in cash and cash equivalents related to assets classified as held-for-sale | 34 | |
Foreign currency adjustment | (44) | 118 |
Increase (decrease) in cash and cash equivalents | 16,595 | (27,614) |
Cash and cash equivalents: | ||
Beginning of period | 194,069 | 171,486 |
End of period | $ 210,664 | $ 143,872 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 sheet as of December 31, 2016 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 2016 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 – Leases Leases In March 2016, the FASB issued ASU No. 2016-09 – Compensation – Stock Compensation In April and May 2016, the FASB issued ASU No. 2016-10 – Revenue from Contracts with Customers – Identifying Performance Obligations and Licensing Revenue Recognition and Derivatives and Hedging – Recession of SEC Guidance Revenue from Contracts with Customers – Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers – Revenue from Contracts with Customers In January 2017, the FASB issued ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. In March 2017, the FASB issued ASU 2017-07 – Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 2. Inventories, net At March 31, 2017 and December 31, 2016, inventories consisted of the following: March 31, 2017 December 31, 2016 Raw materials $ 8,278 $ 7,465 Work-in-process 10,717 12,681 Finished goods 43,925 33,760 62,920 53,906 Less: LIFO reserve (1,232 ) (1,256 ) Inventories, net $ 61,688 $ 52,650 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment, net | 3. Property, Plant, and Equipment, net At March 31, 2017 and December 31, 2016, property, plant, and equipment consisted of the following: March 31, 2017 December 31, 2016 Land and improvements $ 79,435 $ 86,298 Mineral reserves and mine development 255,771 253,766 Machinery and equipment 585,973 596,962 Buildings and improvements 187,425 161,057 Furniture, fixtures, and other 3,431 3,440 Construction in progress 8,463 6,748 1,120,498 1,108,271 Accumulated depletion and depreciation (398,037 ) (380,536 ) Property, plant, and equipment, net $ 722,461 $ 727,735 Under ASC 360 Property, Plant, and Equipment |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-Term Debt At March 31, 2017 and December 31, 2016, long-term debt consisted of the following: March 31, 2017 December 31, 2016 Term B-2 Loans 717,922 719,632 Extended Term B-1 Loans 117,347 117,634 Industrial Revenue bond 10,000 10,000 Revolving credit facility and other 72 88 Capital leases, net 7,007 3,634 Deferred financing costs, net (7,239 ) (7,975 ) 845,109 843,013 Less: current portion (11,617 ) (10,707 ) Long-term debt including leases $ 833,492 $ 832,306 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 (“Revolving Credit Facility”) and two tranches of term loans, a term B-1 facility (“Term B-1 Loans”) and a term B-2 facility (“Term B-2 Loans”). The Revolving Credit Facility, and the Term B-1 and Term B-2 Loans are secured by a first priority lien on substantially all of the Company’s domestic assets. The 2013 Amended Credit Agreement was amended in March 2014, April 2015, and May 2015 and joinder agreements were entered into as of August 2014 and September 2014. These amendments and joinder agreements made various changes to maturity dates and interest rate margins. In addition, amounts that were initially Term B-1 Loans and balances on the Revolving Credit Facility were converted into term loans with essentially the same terms as the Term B-2 Loans (the “Extended Term B-1 Loans”). The applicable margin for Term B-1 and Term B-2 Base Rate loans was 2.5% and the margin on Term B-1 and Term B-2 Eurodollar Rate loans was 3.5%. The Revolving Credit Facility, the Extended Term B-1 Loans, and Term B-2 Loans are secured by a first priority lien on substantially all of the Company’s domestic assets. On September 30, 2015, the Company entered into an amendment to the 2013 Amended Credit Agreement that modified the Revolving Credit Facility. These modifications consisted primarily of (i) a reduction in the U.S. revolving commitments from $124,000 to $99,000 (while the aggregate Canadian revolving commitment remained at $1,000) and (ii) changes in the financial covenant governing the availability of amounts under the Revolving Credit Facility if, and only if, the Company has drawn, including letters of credit, more than $31,250 on the Revolving Credit Facility. At March 31 2017, the full amount of the revolving commitment ($100,000) is available so long as the Company’s leverage ratio does not exceed a revised limit (6.50:1.00 for the first quarter of 2017 declining quarterly to 4.75:1.00 for the fourth quarter of 2017). The Revolving Credit Facility termination date is September 6, 2018. On April 28, 2016, the Company entered into an amendment to the 2013 Amended Credit Agreement that extended the maturity of certain of the Term B-1 Loans to July 15, 2018 (the “2016 Extended Term Loans”). The Company made a prepayment of accrued interest of $227 and principal of $69,580 on April 28, 2016 to the lenders consenting to the amendment. Accrued interest on the extended remainder of the Term B-1 Loans was due at maturity on July 15, 2018. Accrued interest related to the $16,723 principal payment due on March 17, 2017 was also due on the same date. On October 17, 2016, the Company repurchased $3,000 of the Extended Term B-1 Loans at 91.5% of par. On November 17, 2016, the Company fully prepaid the $16,766 of the Term B-1 Loans due March 2017 as well as the $69,580 of the 2016 Extended Term Loans. On November 29, 2016, the Company repurchased, at an average of 96.3% of par, $37,867 of the Extended Term B-1 Loans and $175,133 of the Term B-2 Loans. The related gain on the October 2016 debt repurchase and the November 2016 debt repurchase was recorded in operating expense. As of March 31, 2017, the Term B-2 Loans, Extended Term B-1 Loans, and the Revolving Credit Facility had actual interest rates of 4.65%, 4.65%, and 4.3%, respectively. As of March 31, 2017, there was $15,745 available unused capacity on the Revolving Credit Facility and $15,505 committed to outstanding letters of credit. As of March 31, 2017, the Company has not drawn on the Revolving Credit Facility. The Company has a $10,000 Industrial Revenue Bond outstanding related to the construction of a manufacturing facility in Wisconsin. The bond bears interest, which is payable monthly, at a variable rate. The rate was 0.96% at March 31, 2017. The bond matures on September 1, 2027 and is collateralized by a letter of credit of $10,000. |
Accrued Expenses and Deferred R
Accrued Expenses and Deferred Revenue | 3 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Deferred Revenue | 5. Accrued Expenses and Deferred Revenue At March 31, 2017 and December 31, 2016, accrued expenses and deferred revenue consisted of the following: March 31, 2017 December 31, 2016 Accrued payroll and fringe benefits $ 11,549 $ 10,554 Contingent consideration 3,264 2,507 Accrued income taxes 58 421 Accrued real estate taxes 3,642 4,821 Deferred revenue 17,044 75 Other accrued expenses 9,878 7,807 Accrued expenses and deferred revenue $ 45,435 $ 26,185 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 6. 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, 2017 and 2016: Three Months Ended March 31, 2017 2016 Numerator: Net loss attributable to Fairmount Santrol Holdings Inc. $ (11,588 ) $ (11,776 ) Denominator: Basic weighted average shares outstanding 223,739 161,446 Dilutive effect of employee stock options, RSUs, and PRSUs - - Diluted weighted average shares outstanding 223,739 161,446 Loss per common share - basic $ (0.05 ) $ (0.07 ) Loss per common share - diluted $ (0.05 ) $ (0.07 ) All potentially dilutive shares were excluded from the calculation of diluted weighted average shares outstanding and diluted earnings per share because the Company was in a loss position in the three months ended March 31, 2017 and 2016. As of March 31, 2017, the amount of outstanding options, RSUs, and PRSUs was 13,887, 1,610, and 597, respectively. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 7. Derivative Instruments The Company enters into interest rate swap agreements as a means to partially hedge its variable interest rate risk on debt instruments. The notional value of these swap agreements is $420,000, which represents a total of approximately 50% of term debt outstanding at March 31, 2017 and effectively fixes the variable rate in a range of 2.92% to 3.115% for the portion of the debt that is hedged. The interest rate swap agreements mature on 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 March 31, 2017 and December 31, 2016: Assets (Liabilities) Interest Rate Swap Agreements Balance Sheet Classification March 31, 2017 December 31, 2016 Designated as cash flow hedges Other long-term liabilities $ (12,629 ) $ (14,488 ) Designated as cash flow hedges Other assets - 39 $ (12,629 ) $ (14,449 ) In order to represent the ineffective portion of interest rate swap agreements designated as hedges, the Company recognized in interest expense the following in the three months ended March 31, 2017 and 2016: Derivatives in Location of Gain (Loss) ASC 815-20 Cash Flow Recognized in Income on Three Months Ended March 31, Hedging Relationships Derivative (Ineffective Portion) 2017 2016 Interest rate swap agreements Interest expense (income) $ (77 ) $ 90 $ (77 ) $ 90 The Company expects 6,384 to be reclassified from accumulated other comprehensive income (loss) into interest expense within the next twelve months. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. 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 SSP 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 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 the Company’s long-term debt (including the current portion thereof) is recognized at amortized cost. The fair value of the Extended Term B-1 Loans and the 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 following table presents the fair value as of March 31, 2017 and December 31, 2016 for the Company’s long-term debt: Quoted Other in Active Observable Unobservable Markets Inputs Inputs Long-Term Debt Fair Value Measurements (Level 1) (Level 2) (Level 3) Total March 31, 2017 Term B-2 Loans - 702,408 - 702,408 Extended Term B-1 Loans - 114,305 - 114,305 $ - $ 816,713 $ - $ 816,713 December 31, 2016 Term B-2 Loans - 699,683 - 699,683 Extended Term B-1 Loans - 114,308 - 114,308 $ - $ 813,991 $ - $ 813,991 The following table presents the amounts carried at fair value as of March 31, 2017 and December 31, 2016 for the Company’s other financial instruments. Fair value of interest rate swap agreements in 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 Other in Active Observable Unobservable Markets Inputs Inputs Recurring Fair Value Measurements (Level 1) (Level 2) (Level 3) Total March 31, 2017 Interest rate swap agreements $ - $ (12,629 ) $ - $ (12,629 ) $ - $ (12,629 ) $ - $ (12,629 ) December 31, 2016 Interest rate swap agreements $ - $ (14,449 ) $ - $ (14,449 ) $ - $ (14,449 ) $ - $ (14,449 ) |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Common Stock and Stock-Based Compensation | 9. Common Stock and Stock-Based Compensation The Company granted options to purchase 443 and 1,532 shares of common stock in the three months ended March 31, 2017 and 2016, respectively. The average grant date fair value was $10.03 and $2.04 for options issued in the three months ended March 31, 2017 and 2016, respectively. The Company issued restricted stock units (“RSUs”) of 366 and 862 in the three months ended March 31, 2017 and 2016, respectively. The Company issued performance restricted stock units (“PRSUs”) of 139 and 407 in the three months ended March 31, 2017 and 2016, respectively. Weighted Weighted Performance Weighted Average 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, 2016 13,598 $ 6.45 1,459 $ 5.10 458 $ 2.28 Granted 443 10.03 366 10.03 139 10.03 Exercised (125 ) 3.87 (211 ) 2.42 - - Forfeited (20 ) 10.62 (4 ) 4.08 - - Expired (9 ) 17.74 - - - - Outstanding at March 31, 2017 13,887 $ 6.57 1,610 $ 6.58 597 $ 4.09 As discussed in Note 1, the FASB issued ASU No. 2016-09 – Compensation – Stock Compensation The Company recorded $2,416 and $1,653 of stock compensation expense related to these options, RSUs, and PRSUs for the three months ended March 31, 2017 and 2016, respectively. Stock compensation expense is included in selling, general, and administrative expenses on the Consolidated Statements of Income (Loss) and in additional paid-in capital on the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. 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, 2017, the Company recorded a tax benefit of $1,148 on a loss before income taxes of $12,558 resulting in an effective tax rate of 9.1%, compared to a tax benefit of $15,754 on a loss before income taxes of $27,533 resulting in an effective tax rate of 57.2% for the same period of 2016. The decrease in the effective tax rate is primarily attributable to the impact of a tax benefit from a loss carryback recorded in 2016, an increase in depletion applied against forecasted results in 2017 as compared to 2016, and 2017 forecasted U.S. results with nominal tax due to a valuation allowance, offset partly by discrete tax benefits of $577 primarily related to the impacts of stock compensation. 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. |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Plans | 11. 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. The benefits under the plans were frozen effective December 31, 2012. Net periodic benefit cost recognized for other Company defined benefit pension plans for the three months ended March 31, 2017 and 2016 is as follows: Three Months Ended March 31, 2017 2016 Components of net periodic benefit cost Service cost $ - 22 Interest cost 89 87 Expected return on plan assets (127 ) (120 ) Amortization of prior service cost - 4 Amortization of net actuarial loss 61 70 Net periodic benefit cost $ 23 $ 63 The Company contributed $19 and $25 during the three months ended March 31, 2017 and 2016, respectively. Total expected employer contributions during the year ending December 31, 2017 are $69. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc. at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 Gross Tax Effect Net Amount Foreign currency translation $ (10,843 ) $ 1,795 $ (9,048 ) Additional pension liability (3,528 ) 1,291 (2,237 ) Unrealized gain (loss) on interest rate hedges (11,533 ) 4,135 (7,398 ) $ (25,904 ) $ 7,221 $ (18,683 ) December 31, 2016 Gross Tax Effect Net Amount Foreign currency translation $ (10,804 ) $ 2,533 $ (8,271 ) Additional pension liability (3,589 ) 1,291 (2,298 ) Unrealized gain (loss) on interest rate hedges (13,146 ) 4,713 (8,433 ) $ (27,539 ) $ 8,537 $ (19,002 ) The following table presents the changes in accumulated other comprehensive income by component for the three months ended March 31, 2017: Three Months Ended March 31, 2017 Unrealized Foreign Additional gain (loss) currency pension on interest translation liability rate hedges Total Beginning balance $ (8,271 ) $ (2,298 ) $ (8,433 ) $ (19,002 ) Other comprehensive income (loss) before reclassifications (777 ) - 30 (747 ) Amounts reclassified from accumulated other comprehensive income (loss) - 61 1,005 1,066 Ending balance $ (9,048 ) $ (2,237 ) $ (7,398 ) $ (18,683 ) The following table presents the reclassifications out of accumulated other comprehensive income during the three months ended March 31, 2017: Amount from accumulated Details about accumulated other other comprehensive Affected line item on comprehensive income income the statement of income Change in fair value of derivative swap agreements Interest rate hedging contracts $ 1,566 Interest expense Tax effect (561 ) Tax $ 1,005 Net of tax Amortization of pension obligations Prior service cost $ - Cost of sales Actuarial losses 61 Cost of sales 61 Total before tax Tax effect - Tax expense 61 Net of tax Total reclassifications for the period $ 1,066 Net of tax |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 13. 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 require a combination thereof. 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 $13,714 and $17,803 for the three months ended March 31, 2017 and 2016, 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 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 aggregate earnout payments must 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) provides that the aggregate earnout payments during the two-year period ending October 1, 2017 must equal or exceed $15,000 and granted the Seller a security interest in 51% of the equity interests in the Company 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. The contingent consideration is 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 results, the Company accrued and capitalized an additional $757 in the three months ended March 31, 2017. 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. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 14. 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 $57 and $263 in the three months ended March 31, 2017 and 2016, respectively. 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 expenses. Fees and expenses paid to American Securities were $86 and $104 in the three months ended March 31, 2017 and 2016, respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 15. 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, 2017 2016 Revenues Proppant Solutions $ 140,993 $ 117,463 Industrial & Recreational Products 31,590 27,995 Total revenues 172,583 145,458 Segment gross profit Proppant Solutions 27,346 16,592 Industrial & Recreational Products 13,485 10,402 Total segment gross profit 40,831 26,994 Operating expenses excluded from segment gross profit Selling, general, and administrative 22,470 18,278 Depreciation, depletion, and amortization 19,442 18,586 Asset impairments - 76 Other operating expense (income) (1,060 ) 330 Interest expense, net 12,537 17,262 Other non-operating expense (income) - (5 ) Loss before benefit from income taxes $ (12,558 ) $ (27,533 ) Total assets reported in the Proppant Solutions segment were $513,409 and $477,777 as of March 31, 2017 and December 31, 2016, respectively. Total assets reported in the I&R segment were $61,213 and $57,029 as of March 31, 2017 and December 31, 2016, respectively. |
Definite and Indefinite-Lived I
Definite and Indefinite-Lived Intangibles | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Definite and Indefinite-Lived Intangibles | 16. Definite and Indefinite-Lived Intangibles As of March 31, 2017, 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, 2017, there were no events or changes in circumstances that would more likely than not result in an impairment of the carrying value of its intangible assets, including goodwill. With the current volatile market conditions in the oil and gas industry, there could be future changes that impact the carrying value of other long-lived intangibles, including the supply agreement with FTS International Services, LLC (“FTSI”) or the value of the acquired technology from the SSP acquisition. As of March 31, 2017, the balance of the FTSI supply agreement, net of accumulated amortization, was $34,053. Beginning in the first quarter of 2017, the Company began selling products using the SSP technology in full commercial protocol. Accordingly, the Company began to amortize this intangible asset over a 20-year useful life, which is based upon the period over which the asset is expected to contribute directly or indirectly to the future cash flows of the Company. Amortization expense of the SSP technology was $761 in the three months ended March 31, 2017. Based on future results of sales of products utilizing the SSP technology, it is possible the fair value of the intangible asset could decline below its cost such that an impairment in carrying value exists. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 sheet as of December 31, 2016 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 2016 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 – Leases Leases In March 2016, the FASB issued ASU No. 2016-09 – Compensation – Stock Compensation In April and May 2016, the FASB issued ASU No. 2016-10 – Revenue from Contracts with Customers – Identifying Performance Obligations and Licensing Revenue Recognition and Derivatives and Hedging – Recession of SEC Guidance Revenue from Contracts with Customers – Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers – Revenue from Contracts with Customers In January 2017, the FASB issued ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. In March 2017, the FASB issued ASU 2017-07 – Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At March 31, 2017 and December 31, 2016, inventories consisted of the following: March 31, 2017 December 31, 2016 Raw materials $ 8,278 $ 7,465 Work-in-process 10,717 12,681 Finished goods 43,925 33,760 62,920 53,906 Less: LIFO reserve (1,232 ) (1,256 ) Inventories, net $ 61,688 $ 52,650 |
Property, Plant, and Equipmen26
Property, Plant, and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | At March 31, 2017 and December 31, 2016, property, plant, and equipment consisted of the following: March 31, 2017 December 31, 2016 Land and improvements $ 79,435 $ 86,298 Mineral reserves and mine development 255,771 253,766 Machinery and equipment 585,973 596,962 Buildings and improvements 187,425 161,057 Furniture, fixtures, and other 3,431 3,440 Construction in progress 8,463 6,748 1,120,498 1,108,271 Accumulated depletion and depreciation (398,037 ) (380,536 ) Property, plant, and equipment, net $ 722,461 $ 727,735 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At March 31, 2017 and December 31, 2016, long-term debt consisted of the following: March 31, 2017 December 31, 2016 Term B-2 Loans 717,922 719,632 Extended Term B-1 Loans 117,347 117,634 Industrial Revenue bond 10,000 10,000 Revolving credit facility and other 72 88 Capital leases, net 7,007 3,634 Deferred financing costs, net (7,239 ) (7,975 ) 845,109 843,013 Less: current portion (11,617 ) (10,707 ) Long-term debt including leases $ 833,492 $ 832,306 |
Accrued Expenses and Deferred28
Accrued Expenses and Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses and Deferred Revenue | At March 31, 2017 and December 31, 2016, accrued expenses and deferred revenue consisted of the following: March 31, 2017 December 31, 2016 Accrued payroll and fringe benefits $ 11,549 $ 10,554 Contingent consideration 3,264 2,507 Accrued income taxes 58 421 Accrued real estate taxes 3,642 4,821 Deferred revenue 17,044 75 Other accrued expenses 9,878 7,807 Accrued expenses and deferred revenue $ 45,435 $ 26,185 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016: Three Months Ended March 31, 2017 2016 Numerator: Net loss attributable to Fairmount Santrol Holdings Inc. $ (11,588 ) $ (11,776 ) Denominator: Basic weighted average shares outstanding 223,739 161,446 Dilutive effect of employee stock options, RSUs, and PRSUs - - Diluted weighted average shares outstanding 223,739 161,446 Loss per common share - basic $ (0.05 ) $ (0.07 ) Loss per common share - diluted $ (0.05 ) $ (0.07 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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, 2017 and December 31, 2016: Assets (Liabilities) Interest Rate Swap Agreements Balance Sheet Classification March 31, 2017 December 31, 2016 Designated as cash flow hedges Other long-term liabilities $ (12,629 ) $ (14,488 ) Designated as cash flow hedges Other assets - 39 $ (12,629 ) $ (14,449 ) |
Schedule of Interest Expense Recognized on Derivative | In order to represent the ineffective portion of interest rate swap agreements designated as hedges, the Company recognized in interest expense the following in the three months ended March 31, 2017 and 2016: Derivatives in Location of Gain (Loss) ASC 815-20 Cash Flow Recognized in Income on Three Months Ended March 31, Hedging Relationships Derivative (Ineffective Portion) 2017 2016 Interest rate swap agreements Interest expense (income) $ (77 ) $ 90 $ (77 ) $ 90 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value for Long-term Debt | The following table presents the fair value as of March 31, 2017 and December 31, 2016 for the Company’s long-term debt: Quoted Other in Active Observable Unobservable Markets Inputs Inputs Long-Term Debt Fair Value Measurements (Level 1) (Level 2) (Level 3) Total March 31, 2017 Term B-2 Loans - 702,408 - 702,408 Extended Term B-1 Loans - 114,305 - 114,305 $ - $ 816,713 $ - $ 816,713 December 31, 2016 Term B-2 Loans - 699,683 - 699,683 Extended Term B-1 Loans - 114,308 - 114,308 $ - $ 813,991 $ - $ 813,991 |
Financial Instruments Carried at Fair Value | The following table presents the amounts carried at fair value as of March 31, 2017 and December 31, 2016 for the Company’s other financial instruments. Fair value of interest rate swap agreements in 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 Other in Active Observable Unobservable Markets Inputs Inputs Recurring Fair Value Measurements (Level 1) (Level 2) (Level 3) Total March 31, 2017 Interest rate swap agreements $ - $ (12,629 ) $ - $ (12,629 ) $ - $ (12,629 ) $ - $ (12,629 ) December 31, 2016 Interest rate swap agreements $ - $ (14,449 ) $ - $ (14,449 ) $ - $ (14,449 ) $ - $ (14,449 ) |
Common Stock and Stock-Based 32
Common Stock and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 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, 2016 13,598 $ 6.45 1,459 $ 5.10 458 $ 2.28 Granted 443 10.03 366 10.03 139 10.03 Exercised (125 ) 3.87 (211 ) 2.42 - - Forfeited (20 ) 10.62 (4 ) 4.08 - - Expired (9 ) 17.74 - - - - Outstanding at March 31, 2017 13,887 $ 6.57 1,610 $ 6.58 597 $ 4.09 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net Periodic Benefit Cost [Member] | |
Summary of Defined Benefit Plans | Net periodic benefit cost recognized for other Company defined benefit pension plans for the three months ended March 31, 2017 and 2016 is as follows: Three Months Ended March 31, 2017 2016 Components of net periodic benefit cost Service cost $ - 22 Interest cost 89 87 Expected return on plan assets (127 ) (120 ) Amortization of prior service cost - 4 Amortization of net actuarial loss 61 70 Net periodic benefit cost $ 23 $ 63 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) attributable to Fairmount Santrol Holdings Inc. at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 Gross Tax Effect Net Amount Foreign currency translation $ (10,843 ) $ 1,795 $ (9,048 ) Additional pension liability (3,528 ) 1,291 (2,237 ) Unrealized gain (loss) on interest rate hedges (11,533 ) 4,135 (7,398 ) $ (25,904 ) $ 7,221 $ (18,683 ) December 31, 2016 Gross Tax Effect Net Amount Foreign currency translation $ (10,804 ) $ 2,533 $ (8,271 ) Additional pension liability (3,589 ) 1,291 (2,298 ) Unrealized gain (loss) on interest rate hedges (13,146 ) 4,713 (8,433 ) $ (27,539 ) $ 8,537 $ (19,002 ) |
Changes in Accumulated Other Comprehensive Income by Component | The following table presents the changes in accumulated other comprehensive income by component for the three months ended March 31, 2017: Three Months Ended March 31, 2017 Unrealized Foreign Additional gain (loss) currency pension on interest translation liability rate hedges Total Beginning balance $ (8,271 ) $ (2,298 ) $ (8,433 ) $ (19,002 ) Other comprehensive income (loss) before reclassifications (777 ) - 30 (747 ) Amounts reclassified from accumulated other comprehensive income (loss) - 61 1,005 1,066 Ending balance $ (9,048 ) $ (2,237 ) $ (7,398 ) $ (18,683 ) |
Reclassifications out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income during the three months ended March 31, 2017: Amount from accumulated Details about accumulated other other comprehensive Affected line item on comprehensive income income the statement of income Change in fair value of derivative swap agreements Interest rate hedging contracts $ 1,566 Interest expense Tax effect (561 ) Tax $ 1,005 Net of tax Amortization of pension obligations Prior service cost $ - Cost of sales Actuarial losses 61 Cost of sales 61 Total before tax Tax effect - Tax expense 61 Net of tax Total reclassifications for the period $ 1,066 Net of tax |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 Revenues Proppant Solutions $ 140,993 $ 117,463 Industrial & Recreational Products 31,590 27,995 Total revenues 172,583 145,458 Segment gross profit Proppant Solutions 27,346 16,592 Industrial & Recreational Products 13,485 10,402 Total segment gross profit 40,831 26,994 Operating expenses excluded from segment gross profit Selling, general, and administrative 22,470 18,278 Depreciation, depletion, and amortization 19,442 18,586 Asset impairments - 76 Other operating expense (income) (1,060 ) 330 Interest expense, net 12,537 17,262 Other non-operating expense (income) - (5 ) Loss before benefit from income taxes $ (12,558 ) $ (27,533 ) |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,278 | $ 7,465 |
Work-in-process | 10,717 | 12,681 |
Finished goods | 43,925 | 33,760 |
Inventory gross | 62,920 | 53,906 |
Less: LIFO reserve | (1,232) | (1,256) |
Inventories, net | $ 61,688 | $ 52,650 |
Property, Plant, and Equipmen37
Property, Plant, and Equipment, net - Schedule of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 1,120,498 | $ 1,108,271 |
Accumulated depletion and depreciation | (398,037) | (380,536) |
Property, plant, and equipment, net | 722,461 | 727,735 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 79,435 | 86,298 |
Mineral Reserves and Mine Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 255,771 | 253,766 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 585,973 | 596,962 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 187,425 | 161,057 |
Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 3,431 | 3,440 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 8,463 | $ 6,748 |
Property, Plant, and Equipmen38
Property, Plant, and Equipment, net - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | ||
Asset impairments | $ 0 | $ 76,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Industrial Revenue bond | $ 10,000 | $ 10,000 |
Revolving credit facility and other | 72 | 88 |
Capital leases, net | 7,007 | 3,634 |
Long term debt | 845,109 | 843,013 |
Less: current portion | (11,617) | (10,707) |
Long-term debt including leases | 833,492 | 832,306 |
Term B-2 Loans [Member] | ||
Debt Instrument [Line Items] | ||
Term Loans | 717,922 | 719,632 |
Extended Term B-1 Loans [Member] | ||
Debt Instrument [Line Items] | ||
Term Loans | 117,347 | 117,634 |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs, net | $ (7,239) | $ (7,975) |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 17, 2016 | Apr. 28, 2016 | Sep. 30, 2015 | Mar. 31, 2017 | Dec. 31, 2016 | Nov. 29, 2016 | Oct. 17, 2016 |
Debt Instrument [Line Items] | |||||||
Applicable margin on interest rate | 0.96% | ||||||
Outstanding term loans | $ 72,000 | $ 88,000 | |||||
Prepayment of accrued interest | $ 227,000 | ||||||
Prepayment of principal amount | $ 69,580,000 | ||||||
Debt instrument borrowings, maturity date | Sep. 1, 2027 | ||||||
Outstanding letters of credit | $ 15,505,000 | ||||||
Industrial revenue bond outstanding | 10,000,000 | ||||||
Letter of credit | 10,000,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Available capacity remaining on the revolving credit facility | $ 15,745,000 | ||||||
Revolving Credit Facility [Member] | Borrowings [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of borrowings | 4.30% | ||||||
3/17/2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding term loans | $ 16,723,000 | ||||||
Debt instrument borrowings, maturity date | Mar. 17, 2017 | ||||||
Term B-1 Loans [Member] | March 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment of principal amount | $ 16,766,000 | ||||||
Term B-2 Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repurchases of term loans | $ 175,133,000 | ||||||
Repurchased term loan as average percentage of par | 96.30% | ||||||
Term B-2 Loans [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of borrowings | 4.65% | ||||||
2013 Pre Amendment [Member] | Revolving Credit Facility [Member] | US [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Revolving Credit Facility commitment | $ 124,000,000 | ||||||
2013 Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving Credit Facility termination date | Sep. 6, 2018 | ||||||
2013 Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | US [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Revolving Credit Facility commitment | 99,000,000 | ||||||
2013 Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | Canada [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Revolving Credit Facility commitment | 1,000,000 | ||||||
2013 Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding term loans | 31,250,000 | ||||||
2013 Amended Credit Agreement [Member] | First Quarter of 2017 [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Revolving Credit Facility commitment | $ 100,000,000 | ||||||
2013 Amended Credit Agreement [Member] | First Quarter of 2017 [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 650.00% | ||||||
2013 Amended Credit Agreement [Member] | Fourth Quarter of 2017 [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio | 475.00% | ||||||
2016 Extended Term Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment of principal amount | $ 69,580,000 | ||||||
Debt instrument borrowings, maturity date | Jul. 15, 2018 | ||||||
Extended Term B-1 Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repurchases of term loans | $ 37,867,000 | $ 3,000,000 | |||||
Repurchased term loan as percentage of par | 91.50% | ||||||
Repurchased term loan as average percentage of par | 96.30% | ||||||
Extended Term B-1 Loans [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of borrowings | 4.65% | ||||||
Base Rate [Member] | Term B-1 Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin on interest rate | 2.50% | ||||||
Base Rate [Member] | Term B-2 Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin on interest rate | 2.50% | ||||||
Eurodollar [Member] | Term B-1 Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin on interest rate | 3.50% | ||||||
Eurodollar [Member] | Term B-2 Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin on interest rate | 3.50% |
Accrued Expenses and Deferred41
Accrued Expenses and Deferred Revenue - Summary of Accrued Expenses and Deferred Revenue (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued payroll and fringe benefits | $ 11,549 | $ 10,554 |
Contingent consideration | 3,264 | 2,507 |
Accrued income taxes | 58 | 421 |
Accrued real estate taxes | 3,642 | 4,821 |
Deferred revenue | 17,044 | 75 |
Other accrued expenses | 9,878 | 7,807 |
Accrued expenses and deferred revenue | $ 45,435 | $ 26,185 |
Earnings (Loss) per Share - Com
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, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss attributable to Fairmount Santrol Holdings Inc. | $ (11,588) | $ (11,776) |
Denominator: | ||
Basic weighted average shares outstanding | 223,739,000 | 161,446,000 |
Dilutive effect of employee stock options, RSUs, and PRSUs | 0 | 0 |
Diluted weighted average shares outstanding | 223,739,000 | 161,446,000 |
Loss per common share - basic | $ (0.05) | $ (0.07) |
Loss per common share - diluted | $ (0.05) | $ (0.07) |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - shares shares in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Earnings Per Share Basic [Line Items] | ||
Outstanding options | 13,887 | 13,598 |
Restricted Stock Units (RSUs) [Member] | ||
Earnings Per Share Basic [Line Items] | ||
Performance restricted stock units, outstanding | 1,610 | 1,459 |
Performance Restricted Stock Units (PRSUs) [Member] | ||
Earnings Per Share Basic [Line Items] | ||
Performance restricted stock units, outstanding | 597 | 458 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - Interest Rate Swap Agreements [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Notional amount of swap agreements | $ 420,000,000 | |
Notional amount as percent of term debt outstanding | 50.00% | |
Interest rate swap agreement, maturity date | Sep. 5, 2019 | |
Scenario, Forecast [Member] | Interest Expense [Member] | ||
Derivative [Line Items] | ||
Reclassification from Accumulated other comprehensive income (loss) | $ 6,384,000 | |
Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative variable interest rate | 2.92% | |
Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative variable interest rate | 3.115% |
Derivative Instruments - Fair V
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, 2017 | Dec. 31, 2016 |
Derivatives Fair Value [Line Items] | ||
Derivative, fair value | $ (12,629) | $ (14,449) |
Designated as Cash Flow Hedges [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ (12,629) | (14,488) |
Designated as Cash Flow Hedges [Member] | Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | $ 39 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Expense Derivatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivatives Fair Value [Line Items] | ||
Interest expense (income) | $ (12,537) | $ (17,262) |
Interest Rate Swap Agreements [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest expense (income) | (77) | 90 |
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 Fair Value [Line Items] | ||
Interest expense (income) | $ (77) | $ 90 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value for Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 816,713 | $ 813,991 |
Term B-2 Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 702,408 | 699,683 |
Extended Term B-1 Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 114,305 | 114,308 |
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 | 816,713 | 813,991 |
Other Observable Inputs (Level 2) [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 | 702,408 | 699,683 |
Other Observable Inputs (Level 2) [Member] | Extended Term B-1 Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 114,305 | $ 114,308 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Interest Rate Swap Agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ (12,629) | $ (14,449) |
Recurring Fair Value Measurements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | (12,629) | (14,449) |
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 | (12,629) | (14,449) |
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) | (12,629) | (14,449) |
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 | $ (12,629) | $ (14,449) |
Common Stock and Stock Based Co
Common Stock and Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted to purchase | 443 | 1,532 |
Average grant date fair value of options issued | $ 10.03 | $ 2.04 |
Stock compensation expense | $ 2,416 | $ 1,653 |
ASU No. 2016-09 – Compensation – Stock Compensation [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reduction to retained earnings upon adoption of guidance updates to ASC 718 | $ (699) | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock units issued | 366 | 862 |
Performance Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock units issued | 139 | 407 |
Common Stock and Stock Based 50
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, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding Beginning Balance | 13,598 | |
Options, Granted | 443 | 1,532 |
Options, Exercised | (125) | |
Options, Forfeited | (20) | |
Options, Expired | (9) | |
Options, Outstanding Ending Balance | 13,887 | |
Weighted Average Exercise Price, Options, Outstanding Beginning Balance | $ 6.45 | |
Weighted Average Exercise Price, Options, Granted | 10.03 | |
Weighted Average Exercise Price, Options, Exercised | 3.87 | |
Weighted Average Exercise Price, Options, Forfeited | 10.62 | |
Weighted Average Exercise Price, Options, Expired | 17.74 | |
Weighted Average Exercise Price, Options, Outstanding Ending Balance | $ 6.57 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Beginning Balance | 1,459 | |
Granted | 366 | |
Exercised | (211) | |
Forfeited | (4) | |
Outstanding Ending Balance | 1,610 | |
Weighted Average Price at Issue Date, Outstanding Beginning Balance | $ 5.10 | |
Weighted Average Price at Issue Date, Granted | 10.03 | |
Weighted Average Price at Issue Date, Exercised | 2.42 | |
Weighted Average Price at Issue Date, Forfeited | 4.08 | |
Weighted Average Price at Issue Date, Outstanding Ending Balance | $ 6.58 | |
Performance Restricted Stock Units (PRSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Beginning Balance | 458 | |
Granted | 139 | |
Outstanding Ending Balance | 597 | |
Weighted Average Price at Issue Date, Outstanding Beginning Balance | $ 2.28 | |
Weighted Average Price at Issue Date, Granted | 10.03 | |
Weighted Average Price at Issue Date, Outstanding Ending Balance | $ 4.09 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||
Benefit from income taxes | $ (1,148) | $ (15,754) |
Income (Loss) before income taxes | $ (12,558) | $ (27,533) |
Effective income tax rate | 9.10% | 57.20% |
US [Member] | ||
Income Tax Disclosure [Line Items] | ||
Discrete tax benefits | $ 577 |
Defined Benefit Plans - Additio
Defined Benefit Plans - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Pension_Plan | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit pension plans | Pension_Plan | 2 | ||
Pension and postretirement contributions | $ 19 | $ 25 | |
Scenario, Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution for pension plan remaining fiscal year | $ 69 |
Defined Benefit Plans - Summary
Defined Benefit Plans - Summary of Defined Benefit Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service cost | $ 22 | |
Interest cost | $ 89 | 87 |
Expected return on plan assets | (127) | (120) |
Amortization of prior service cost | 4 | |
Amortization of net actuarial loss | 61 | 70 |
Net periodic benefit cost | $ 23 | $ 63 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | $ (25,904) | $ (27,539) |
Accumulated other comprehensive income (loss), Tax Effect | 7,221 | 8,537 |
Accumulated other comprehensive income (loss) | (18,683) | (19,002) |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | (10,843) | (10,804) |
Accumulated other comprehensive income (loss), Tax Effect | 1,795 | 2,533 |
Accumulated other comprehensive income (loss) | (9,048) | (8,271) |
Additional Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | (3,528) | (3,589) |
Accumulated other comprehensive income (loss), Tax Effect | 1,291 | 1,291 |
Accumulated other comprehensive income (loss) | (2,237) | (2,298) |
Unrealized Gain (Loss) on Interest Rate Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Gross | (11,533) | (13,146) |
Accumulated other comprehensive income (loss), Tax Effect | 4,135 | 4,713 |
Accumulated other comprehensive income (loss) | $ (7,398) | $ (8,433) |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income by Component (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ (19,002) |
Other comprehensive income (loss) before reclassifications | (747) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,066 |
Ending balance | (18,683) |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (8,271) |
Other comprehensive income (loss) before reclassifications | (777) |
Ending balance | (9,048) |
Additional Pension Liability [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (2,298) |
Amounts reclassified from accumulated other comprehensive income (loss) | 61 |
Ending balance | (2,237) |
Unrealized Gain (Loss) on Interest Rate Hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (8,433) |
Other comprehensive income (loss) before reclassifications | 30 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,005 |
Ending balance | $ (7,398) |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ 12,537 | $ 17,262 |
Loss before benefit from income taxes | (12,558) | (27,533) |
Tax expense (benefit) | (1,148) | (15,754) |
Net loss | (11,410) | (11,779) |
Cost of sales | 131,752 | $ 118,464 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net loss | 1,066 | |
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 | 1,566 | |
Tax expense (benefit) | (561) | |
Net loss | 1,005 | |
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 | 61 | |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Additional Pension Liability [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Loss before benefit from income taxes | 61 | |
Net loss | $ 61 |
Commitments and Contingent Li57
Commitments and Contingent Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 17, 2015 | Mar. 31, 2017 | Mar. 31, 2016 |
Commitments and Contingencies [Line Items] | |||
Rent expense for lease | $ 13,714 | $ 17,803 | |
Self-Suspending Proppant LLC [Member] | |||
Commitments and Contingencies [Line Items] | |||
Commitment period of sales | 5 years | ||
Commitment commencing date | Oct. 1, 2015 | ||
Aggregate earnout payment from the two-year period ending October 1, 2017 until the three-year period ending October 1, 2018 | $ 45,000 | ||
Aggregate earnout payment during the two-year period ending October 1, 2017 | $ 15,000 | ||
Security interest percentage of equity in contingent consideration | 51.00% | ||
Contingent consideration | $ 195,000 | ||
Additional contingent consideration accrued and capitalized | $ 757 |
Transactions with Related Par58
Transactions with Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases from an affiliated entity | $ 57 | $ 263 |
American Securities [Member] | ||
Related Party Transaction [Line Items] | ||
Management fees and expense payment | $ 86 | $ 104 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Total Assets | $ 1,235,284 | $ 1,202,910 |
Proppant Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 513,409 | 477,777 |
Industrial & Recreational Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 61,213 | $ 57,029 |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Reportable Segments (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Revenues | $ 172,583,000 | $ 145,458,000 |
Segment gross profit | ||
Segment gross profit | 40,831,000 | 26,994,000 |
Operating expenses excluded from segment gross profit | ||
Selling, general, and administrative | 22,470,000 | 18,278,000 |
Depreciation, depletion, and amortization | 19,442,000 | 18,586,000 |
Asset impairments | 0 | 76,000 |
Other operating expense (income) | (1,060,000) | 330,000 |
Interest expense, net | 12,537,000 | 17,262,000 |
Other non-operating expense (income) | (5,000) | |
Income (Loss) before income taxes | (12,558,000) | (27,533,000) |
Proppant Solutions [Member] | ||
Revenues | ||
Revenues | 140,993,000 | 117,463,000 |
Segment gross profit | ||
Segment gross profit | 27,346,000 | 16,592,000 |
Industrial & Recreational Products [Member] | ||
Revenues | ||
Revenues | 31,590,000 | 27,995,000 |
Segment gross profit | ||
Segment gross profit | $ 13,485,000 | $ 10,402,000 |
Definite and Indefinite-Lived61
Definite and Indefinite-Lived Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Goodwill | $ 15,301 | $ 15,301 |
Industrial & Recreational Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 15,301 | |
FTSI Supply Agreement [Member] | ||
Goodwill [Line Items] | ||
Supply agreement, net of accumulated amortization | $ 34,053 | |
SSP Technology [Member] | ||
Goodwill [Line Items] | ||
Useful life of intangible asset | 20 years | |
Amortization expense of intangible asset | $ 761 |