On the top line, revenues rose 111.0% year/year to $43.57 million, which easily topped expectations. The increase was primarily attributable to increases in technology product sales, frac sand sales, and environmental product sales.
The operating loss includes $11.1 million of costs primarily associated with slowing and idling production, two thirds of which is non-cash.
But looking ahead, the company is pretty optimistic.
From the prior quarter, the company anticipates similar levels of sand sales in the third quarter of 2017 as compared to the second quarter of 2017. Clearly, not that impressive.
But for the second half of 2017, the company anticipates technology products, industrial ceramic products and mineral processing opportunities to lead its revenue growth and return to profitability, and now believes its revenue growth in 2017 will be at least a 60% increase over 2016.
Although the commodity price environment remains tenuous in the oil and gas industry, the company is optimistic about our oilfield business for the second half of 2017>
The company also expects the base ceramic business to see higher volumes in the second half as compared to the first half of 2017.
The frac sand business has grown substantially this year and is part of delivering a complete suite of product offerings to its oil and gas clients. Given the strong demand for frac sand, the company ramped to full utilization at its Marshfield, Wisconsin sand plant during the second quarter of 2017.
In addition to increased sand volumes, we are also benefiting from rail car revenue generated from leased rail cars dedicated to this business.
The company said, "Revenue continues to rebound and is now up 115% off the trough witnessed in the third quarter of 2016. We made progress during the second quarter in expanding our opportunities in technology products and services, and in our industrial products and services. Our efforts to reduce fixed structural costs resulted in increased fall-through on revenue growth.
In the quarter here, CRR sold 496 mln lbs of Northern White Sand and 96 mln lbs of Ceramic. In the second quarter of last year, CRR sold 41 mln lbs. of Northern White Sand and 71 mln lbs. of Ceramic.
The company's ceramic product is more expensive than its sand product, so one must watch capital spending of its customers, the oil and gas producers. If they cut capital spending a lot, this would be negative for companies in the oil and gas equipment and services space such as CRR.
Looking at other areas of the business, the company said, "Subsequent to quarter end, we met remaining post-closing conditions under our $65 million credit facility and received the remaining $12.3 million. On a pro-forma basis, our cash balance at quarter end including this $12.3 million, stands at $62.9 million. In addition, subsequent to quarter end, we signed a share purchase agreement to sell our Russian proppant business for $22 million and, subject to local regulatory approval, expect the closing of this transaction to occur in the third quarter of 2017. This additional liquidity, coupled with our expectation for reduced cash burn in the second half of 2017, keeps our balance sheet strong."