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Investor Presentation
SEPTEMBER 2017
1
Forward-Looking Statements
This presentation contains forward-looking statements. These statements can be identified by the use of forward-looking terminology
including “will,” “may,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” or other similar words. These statements discuss future
expectations including company growth expectations, demand for our products, expectations regarding future prices, capacity expansion
plans, market trends, liquidity, transportation services, commercial product launches and research and development plans and may contain
projections of financial condition or of results of operations, or state other “forward-looking” information. These forward-looking statements
involve risks and uncertainties. Many of these risks are beyond management’s control. When considering these forward-looking statements,
you should keep in mind the risk factors, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other
cautionary statements in the company’s SEC filings. Forward-looking statements are not guarantees of future performance or an assurance
that our current assumptions or projections are valid. Our actual results and plans could differ materially from those expressed in any forward-
looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information or
future events, except as required by law.
This presentation includes certain non-GAAP financial measures, including EBITDA and Adjusted EBITDA. These non-GAAP financial
measures are used as supplemental financial measures by our management to evaluate our operating performance and compare the results
of our operations from period to period without regard to the impact of our financing methods, capital structure or non-operating income and
expenses. Adjusted EBITDA is also used by our lenders to evaluate our compliance with covenants. We believe that these measures are
meaningful to our investors to enhance their understanding of our financial performance. These measures should be considered
supplemental to and not a substitute for financial information prepared in accordance with GAAP and may differ from similarly titled measures
used by other companies. For a reconciliation of such measures to the most directly comparable GAAP term, please see the appendix of this
presentation.
FORWARD-LOOKING INFORMATION
NON-GAAP FINANCIAL MEASURES
2
Two Complementary Business Segments
6.472%
2.528%
2016 VOLUMES(million tons)
Proppant Solutions
Key Markets
Oil & Gas
Industrial & Recreational (I&R)
Key Markets
Foundry
Glass
Sports & Recreation
Building Products
Filtration
Complementary markets throughout business cycles
Complementary products to leverage asset base
3
Core Differentiators for Long-Term Value CreationFAIRMOUNT SANTROL
Commitment to People, Planet & Prosperity
Technology & Innovation
Broad Product Portfolio
Operational Scale & Efficiencies
Extensive Distribution and Unit Train Capabilities
Long-Term Value CreatorsFAIRMOUNT SANTROL
99.9% pure silica
4
Only Fully Integrated I&R Sand and Resin Solutions Provider TECHNOLOGY & INNOVATION AND BROAD PRODUCT PORTFOLIO - INDUSTRIAL & RECREATIONAL
PRODUCTS/
CHARACTERISTICS
TARGET MARKETS
Building products
Foundries
Glass manufacturing
Golf courses
Water filtration
Engineered sand-based
resin products
Foundries
Expert custom blends
of sand, aggregates,
minerals, colorants and
other materials
Building products
Specialty products
Sports & recreation
- Colored play sand
- Sports turf
HIGH-PURITY SANDSENGINEERED
RESIN-COATED SANDSCUSTOM BLENDINGHIGH-PERFORMANCE
RESIN SYSTEMS
Traditional foundry resin
systems & proprietary
resins for advanced
resin-coated proppants
Foundries
Diverse base of over 800 customers contributes to the more steady dynamics of I&R
5
Products to Address All Well Environments
Northern White
Silica Sands
Tier 2, API
Regional
sand
(Voca)
Precured
(Tempered)
Highest
Increased
Curable
Increased
Highest
Texas Gold®
Frac Sand
Tier 1, API
NWS
99.8% pure
silica
Increases:
Reservoir Recovery –Both IP & EUR
(by optimizing well geometry)
&
Operational Efficiencies
RAW SAND
Propel SSP®
RESIN-COATED SAND TRANSPORT
TECHNOLOGY
Permian
Regional
sand
(Kermit)
Permian
Sand
Flowback Protection
Strength
TECHNOLOGY & INNOVATION AND BROAD PRODUCT PORTFOLIO – PROPPANT SOLUTIONS
Conductivity
Value Add
6
Broad Asset Base Provides Efficiency and FlexibilityOPERATIONAL SCALE & EFFICIENCIES
~ 900 million tons of proven reserves
Flexibility to shift with market demand:
− Locations, grade mixes and
logistic capabilities
− i.e.: increasing 4070 production
at Wedron – meeting coarser
grades by other mines
In 2018, regional and low-cost Wedron
represent > 70% of active capacity
Overall fines as a percent of total tons
over 70% with ability to flex
FMSA ANNUAL FRAC SAND CAPACITY
(in millions of tons)
Wedron100 mesh -37%
Kermit 40/70 -37%
Voca
Coarse – 26%
MenomonieMaiden Rock
BrewerShakopee
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Active + Future KermitCapacity
Active + Future KermitCapacity by Grade
15.6
>70%
+ 3.5 million tons of annual I&R
capacityI & R
Competitive Delivery into all Key Basins
FMSA Terminal
FMSA Mining & Processing
Unit Train Destination
Unit Train Origin (Mining &
Processing)
Coating Operation
EXTENSIVE DISTRIBUTION AND UNIT TRAIN CAPABILITIES
7
Terminal placement closer to well sites reduces last mile distance
Leveraging Our Unit Train Capabilities
Focus on Increasing Utilization of Unit Trains
11 unit-train capable terminals
Unit Trains:
− Reduce delivered cost by $6-$10/ton
− Increase railcar turns and overall efficiency of railcar fleet
Railcar Update
All excess railcars have been returned to active fleet
EXTENSIVE DISTRIBUTION AND UNIT TRAIN CAPABILITIES
0%
20%
40%
60%
80%
2014 2015 2016 1H 2017
PERCENTAGE OF NORTHERN WHITE SAND SHIPPED VIA UNIT TRAIN
> 70% $6.29
$3.99
$3.16
$2.01$1.70
~$0$0
$2
$4
$6
$8
2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17e
EXCESS RAILCAR COSTS PER TON
8
Current Areas of Investor Focus
9
1) Market Supply and Demand
2) FMSA Kermit
3) Update on Balance Sheet
AVERAGE PROPPANT TONS
PER U.S. HORIZONTAL WELL (2)
CURRENT AREAS OF INVESTOR FOCUS - MARKET DEMAND
Expected Increase in Proppant Demand for 2018
10
Sources:(1) Baker Hughes(2) FMSA estimates based on public E&P presentations and internal estimates + PacWest Consulting Partners
500
550
600
650
700
750
800
850
2015 2016 2017 Est. 2018 Est.
4,600 -
5,000
5,600 -
6,000
3,600 -
4,000
6,500 -
7,000
2018 Proppant demand forecasted to reach 100 million tons (vs. ~ 75 million tons in 2017)
Higher average rig count vs. 2017
Increasing proportion of horizontal vs. vertical wells
Higher proportion of wells drilled actually completed
Well inventory drawdowns (reversal of 2017 DUC build)
Increasing Number of Well Completions Higher Proppant Intensity Per Well
Modestly longer laterals
More stages per well
Higher proppant loading per lateral foot
U.S. HORIZONTAL LAND RIG COUNT (1)
Current Tightness on Finer Grades Carries into 2018CURRENT AREAS OF INVESTOR FOCUS – MARKET SUPPLY AND DEMAND
0
20
40
60
80
100
PermianSupply
PermianDemand
Non-PermianDemand
100 Mesh 40/70 Coarse Grades
2018: Even with 100% adoption of
Permian sands, over 75 million tons of
demand for non-Permian supply¹
1- Key assumptions for 2018:
45M tons of Permian demand and 30M tons of nameplate capacity
Permian demand is 40% 100 mesh, 40% 40/70 and 20% coarse grades
Permian production is 80% 100 mesh and 20% 40/70
100% adoption of local Permian sands
Permian Demand
met by Permian
supply
Mill
ions
of t
ons
~25% ~30%~20%
~40%~40%
~30%
~35% ~30%
~50%
0%
20%
40%
60%
80%
100%
DemandAddressable by
Non-PermianSupply
FMSA Supplyex-Kermit
Non-PermianMarket Supply
100 Mesh 40/70 Coarse
FMSA grade mix is well balanced to
meet demand for sand supplied from
outside the Permian
Over 75M tons
of demand
addressable by
non-Permian
supply
11
Facility manager already hired
Access to experienced employees at other facilities
Equipment has been on order for several months to
speed construction
Adequate water resources on property
Good access to other utilities
Prime access to Route 115
Ability to leverage existing terminal networks in
Permian
Long-history of protecting native species at our mines
Mine plan will be designed to avoid and preserve
potential DSL habitat
12
FMSA Kermit Addresses Challenges to Producing Permian SandCURRENT AREAS OF INVESTOR FOCUS – FMSA KERMIT
Logistics
Construction & Labor Dunes Sagebrush Lizard
Water and Utilities
FMSA Kermit Location FMSA Kermit Location
FMSA Kermit Location
FMSA has strong track record of operations in all these areas
Continued Improvement in Capital Structure
13
$50 million term debt prepayment in June
reduces total debt
Expect to further reduce net debt through
operating cash flows in both 2H 17 and
FY18
All significant debt matures in Sept. 2019
− Tem Debt: Intend to refinance prior to
the end of 2017 with similar form
− Revolver: (expires in Sept. 2018)
Will also be replaced with a new
facility – likely upsized to provide
more flexibility
CURRENT AREAS OF INVESTOR FOCUS – UPDATE ON BALANCE SHEET
Mar. 31,
2017
Jun. 30,
2017
Cash $210.7 $178.5
Debt
Term Debt Due Sept 2019 $835.2 $783.3
Other, net $9.9 $12.8
Total Long Term Debt $845.1 $796.1
Net Debt $634.4 $617.6
Capitalization Summary($ in Millions)
14
Financial Update and Outlook
Second-quarter 2017 results
Volumes: Total company +22% sequentially; Proppant Solutions +24% sequentially
Adjusted EBITDA: $47.0 million vs. $21.7 million in Q1 2017
Third-quarter 2017 outlook
Proppant volumes of 2.6 million to 2.8 million tons
− FMSA capacity will be constrained in Q3: Shakopee will begin production in Q3, with minimal Q3 impact
− Raw frac sand pricing expected to increase $5 to $7 per ton on average
− Frac sand cost per ton expected to be flat to down slightly
― Improved fixed cost leverage and lower excess rail car costs are expected to offset increased production costs from Maiden Rock and Brewer
After strong first half of the year, I&R volumes expected to be relatively flat in Q3 versus the prior year period, but with continued profitability growth due to price increases and focus on value-added products
PERFORMANCE UPDATE
15
Industry Leader Well-Positioned for GrowthWHY INVEST IN FMSA?
Technology & innovation
Broad product portfolio
Operational scale & efficiencies
Distribution & unit train capabilities
Dynamic onshore completions activity
Increased proppant intensity per well
Increased operator focus on long-term
well productivity and flowback mitigation
Continued solid demand in I&R
STRONG MARKET DRIVERSKEY LONG-TERM
VALUE CREATORS
Commitment to People, Planet & Prosperity
Appendix
17
Appendix: Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three Months Ended,
(in thousands) Jun. 30, 2017 Mar. 31, 2017
Net income (loss) $10,483 $(11,588)
Interest expense, net 12,983 12,537
Provision (benefit) for income taxes 502 (1,148)
Depreciation, depletion, and amortization expense 19,846 19,442
EBITDA $43,832 $19,243
Non-cash stock compensation expense 2,763 2,416
Write-off of deferred financing costs 389 0
Adjusted EBITDA $46,984 $21,659