Fairmount Santrol Holdings Inc (NYSE:FMSA) issued results for the third quarter closed September 30, 2017. Revenue came at $280.1 million compared to $233.2 million in Q2 2017 and $134.8 million in Q3 2016. Total firm volumes sold stood at 3.4 million tons for the third quarter, compared to 3.3 million tons sold in the Q2 2017 and 2.4 million tons in Q3 2016.
For Q3 2017, Fairmount posted net income of $34.9 million against $10.5 million, in Q2 2017. Net loss for Q3 2016 stood at $20.6 million. Adjusted EBITDA for Q3 2017 came at $72.4 million, which discounts non-cash stock compensation cost of $2.4 million.
The company reported that adjusted EBITDA was $47.0 million in Q2 2107, and discounted non-cash stock compensation cost of $2.8 million and the write-off of late financing fees amounting to $0.4 million, but comprised $1.5 million in costs linked to plant start-ups as well as $3.2 million of freight charges to get railcars into the firm’s active fleet. Also, adjusted EBITDA loss for Q3 2016 came at $4.9 million, and discounted the impact of non-cash stock compensation cost, but included fees linked to railcar renegotiations.
Jenniffer Deckard, the CEO and President of Fairmount, expressed that the team successfully used their strengths to capitalize on enhancing market conditions in the third quarter, leading in strong profitability growth.
They continued to relentlessly execute efficiency measures to both maximize the utilization of their asset base and to lower costs. The company focus remains on short-term execution, while also prioritizing major strategic investments like the building out of Kermit, Texas, facility and improving logistics network. This dual focus will place company to meet growing and varied demand while further enhancing their long-term value proposition to both shareholders and customers.
In the last trading session, the stock price of Fairmount gained more than 3% to close the day at $5.06.