SUGAR LAND, Texas, Oct. 31, 2018 /PRNewswire/ -- Trecora
Resources (NYSE: TREC) a leading provider of high purity specialty
hydrocarbons and waxes, today announced financial results for the
third quarter ended September 30,
2018.
"Our results in the quarter reflect a recovery in SHR prime
product sales volume from the second quarter, continued strong
sales volume, revenue and margin trends in our wax business, and
improved performance at AMAK where mill feed and recoveries
continue to grow. However, elevated feedstock costs along with
higher operating expenses pressured margins and operational
disruptions impacted profitability in the quarter," said Simon
Upfill-Brown, President and CEO.
"With regards to the Advanced Reformer, we were pleased to see
the unit was delivering the margin uplift as designed while
production accelerated. Unfortunately, in late third quarter we
experienced external power quality issues from our energy supplier
resulting in a loss of catalyst activity which reduced the value of
the refined byproduct. Plans are underway to change the catalyst in
the fourth quarter and during this period there will be a 45-day
shutdown of the Advanced Reformer with associated costs of
approximately $4 million, but
the Penhex units will continue to operate as normal. We expect the
Advanced Reformer to resume full operation in the first quarter of
2019 and we continue to anticipate EBITDA contribution of
$6 million in 2019 and $12 million to $14
million by 2022 from this unit as planned.
"Demand for our products remains strong, and as we shared last
quarter, we have a solid plan to achieve operational excellence in
all aspects of our manufacturing operations. While full
implementation will take time, in the last couple of quarters, we
are seeing significant progress leading to more predictable and
reliable operational execution. We remain confident that the added
capacity and capabilities derived from our multi-year capital
building campaign, combined with our renewed focus on operational
excellence, position us well to capitalize on the continued
strength of the U. S. chemicals market and drive profitable
growth," concluded Upfill-Brown.
Third Quarter 2018 Financial Results
Total revenue in
the third quarter was $73.4 million,
compared with $61.5 million in the
third quarter of 2017, an increase of 19.4%. The increase in
reported revenue was driven by a 21.9% increase in the average
sales price of petrochemical products, partially offset by a 3.5%
decline in petrochemical sales volume, in each case, compared with
the third quarter of 2017. The higher average sales price was
offset by a 37% year-over-year increase in the average per-gallon
cost of petrochemical feedstock, which is the basis for the formula
pricing for the majority of the Company's petrochemical product
sales. Since formula pricing is based upon prior month feedstock
averages, sales price increases tend to lag behind higher feedstock
costs resulting in lower margins in the period.
Gross profit in the third quarter was $6.8 million, or 9.3% of total revenues, compared
with $9.9 million, or 16.0% of total
revenues, in the third quarter of 2017. Operating income for the
third quarter was $0.3 million,
compared with operating income of $4.0
million for the third quarter of 2017.
Net loss for the third quarter was $1.6
million, or ($0.06) per
diluted share, compared with net income of $1.7 million, or $0.07 per diluted share, for the third quarter of
2017 and net income of $2.2 million,
or $0.09 per diluted share, for the
second quarter of 2018, which included an approximate $1.4 million benefit from the reversal of certain
post-retirement obligations resulting from the resolution of a
dispute with a former employee. Reported net loss in the
third quarter of 2018 reflected equity in losses of AMAK of
$1.1 million, or an estimated
($0.04) per diluted share on an
after-tax basis. Net income in the third quarter of 2017 reflected
an equity in losses for AMAK of $0.9
million, or an estimated impact of $(0.02) per diluted share on an after-tax basis.
Net income margin for the third quarter was (2.2%) as compared to
2.8% for the third quarter of 2017.
Adjusted EBITDA in the quarter was $4.9
million, representing a 6.7% margin, compared with Adjusted
EBITDA of $7.5 million, representing
a 12.2% margin for the same period a year ago.
South Hampton Resources (Specialty Petrochemical
Segment)
Petrochemical volume in the third quarter was 21.6
million gallons, compared with 22.4 million gallons in the third
quarter of 2017. Prime product volume in the third quarter of 2018
was 17.0 million gallons, compared with 16.7 million gallons in the
third quarter of 2017. Byproduct volume, which is sold at
significantly lower margins than prime products, increased 25.7%
sequentially and declined 19.3% year-over-year, to 4.6 million
gallons. Margins were compressed due to higher feedstock costs and
higher operating expenses including higher costs for electricity,
labor and product transportation costs. Some of the increase
in costs were non-recurring expenses related to the start-up and
performance optimization of the Advanced Reformer. Byproduct
margins were higher compared to the third quarter of 2017 as a
result of the Advanced Reformer. Net income margin for the
third quarter was 3.4% as compared to 10.3% for the third quarter
of 2017.
International volume represented 25.6% of total petrochemical
volume during the quarter, up from 21.5% sequentially and 17.3%
from the third quarter of 2017.
Dollar
amounts in thousands/rounding may apply
|
THREE MONTHS
ENDED
|
|
|
September
30,
|
|
|
2018
|
2017
|
%
Change
|
Product
sales
|
$61,675
|
$52,440
|
18%
|
Processing
fees
|
2,056
|
1,519
|
35%
|
Gross
revenues
|
$63,731
|
$53,959
|
18%
|
Operating
profit before depreciation and amortization
|
6,167
|
9,318
|
(34%)
|
Operating
profit
|
3,516
|
7,734
|
(55%)
|
Profit before
taxes
|
2,561
|
7,149
|
(64%)
|
Depreciation
and amortization
|
2,651
|
1,584
|
67%
|
Adjusted
EBITDA
|
6,186
|
9,358
|
(34%)
|
Capital
expenditures
|
2,562
|
9,426
|
(73%)
|
Trecora Chemical (Specialty Wax Segment)
In the third
quarter, TC generated revenues of $9.7
million, up 29.0% from $7.5
million in the third quarter of 2017. TC revenue
included $6.9 million of product
sales, up 24.1%, and $2.8 million of
custom processing fees, up 42.9%, when compared with the third
quarter of 2017. The increase resulted from strong wax sales
driven by enhanced sales mix as well as greater sales volume in
addition to higher custom processing revenues. Net income margin
for the third quarter was (12.7%) as compared to (26.1%) for the
third quarter of 2017.
Adjusted EBITDA in the third quarter was $0.4 million, compared with ($0.6) million in the third quarter of 2017.
Dollar amounts in
thousands/rounding may apply
|
THREE MONTHS
ENDED
|
|
|
SEPTEMBER
30,
|
|
|
2018
|
2017
|
%
Change
|
Product
sales
|
$6,938
|
$5,590
|
24%
|
Processing
fees
|
2,799
|
1,959
|
43%
|
Gross
revenues
|
$9,737
|
$7,549
|
29%
|
Operating
profit before depreciation and amortization
|
415
|
(585)
|
171%
|
Operating
loss
|
(936)
|
(1,794)
|
48%
|
Profit (loss)
before taxes
|
(1,239)
|
(1,975)
|
37%
|
Depreciation
and amortization
|
1,351
|
1,208
|
12%
|
Adjusted
EBITDA
|
377
|
(597)
|
163%
|
Capital
expenditures
|
1,094
|
1,991
|
(45%)
|
Al Masane Al Kobra Mining Company (AMAK)
Trecora
reported equity in losses of AMAK of approximately $1.1 million and an AMAK net loss of
approximately $4.4 million during the
third quarter of 2018.
AMAK generated net income before depreciation and amortization
of $4.5 million compared to a net
income before depreciation and amortization of $2.5 million in the third quarter of 2017 and net
income before depreciation and amortization of $8.0 million in the second quarter of 2018.
The sequential decline was primarily due to reduction in AMAK's
inventory value for copper and zinc concentrates.
Year-to-Date 2018 Results
Total revenue for the
nine months ended September 30, 2018
was $213.3 million, compared with
revenue of $179.2 million in the
first nine months of 2017.
Gross profit for the first nine months of 2018 was $25.1 million, compared with $31.6 million in the same period in
2017. Gross profit margin in the first nine months of 2018 was
11.8%, compared with 17.6% in the same period in 2017.
Net income for the first nine months of 2018 was $3.0 million, compared with $4.0 million in the same period of 2017. Diluted
earnings per share was $0.12,
compared with $0.16 in the same
period of 2017. Net income in the first nine months of 2018 was
negatively affected by equity in losses of AMAK of $0.7 million, or ($0.02) per diluted share on an after tax basis.
In the first nine months of 2017, net income was negatively
affected by equity in losses of AMAK of $5.2
million, or $(0.13) per
diluted share on an after-tax basis. Net income margin for the
first three quarters of 2018 was 1.4% as compared to 2.3% for the
first three quarters of 2017.
Adjusted EBITDA for the first nine months of 2018 was
$18.3 million, compared with
$23.2 million in the same period in
2017. Adjusted EBITDA margin in the first nine months of 2018 was
8.6%, compared with 13.0% in the same period of 2017.
South Hampton Resources (Specialty Petrochemical
Segment)
Petrochemical volume in the first nine months was
64.6 million gallons, compared with 60.5 million gallons in the
first nine months of 2017. Prime product volume in the first nine
months of 2018 was 50.7 million gallons, compared with 46.9 million
gallons in the first nine months of 2017. Byproduct volume, which
is sold at lower margins, was up 1.5% year-over-year to 13.9
million gallons.
Average selling prices increased and offset higher feedstock
cost which were up 37% from the third quarter of 2017. Byproduct
selling prices were significantly higher; much of our prime product
sales are contracted with pricing formulas tied to prior month
Natural Gas Liquid (NGL) prices which is our primary feedstock. We
have also increased prices for non-formula prime
products.
Net income margin for the first nine months of 2018 was 5.5% as
compared to 9.2% for the first nine months of 2017.
International volume represented 24.1% of total petrochemical
volume during the first nine months of 2018.
Dollar amount in
thousands – rounding may apply
|
NINE MONTHS
ENDED
|
|
|
|
September
30,
|
|
|
|
2018
|
2017
|
%
Change
|
Product
sales
|
$ 178,094
|
$ 147,339
|
21%
|
Processing
fees
|
5,769
|
5,078
|
14%
|
Net
revenues
|
183,863
|
152,417
|
21%
|
Operating
profit before depreciation and amortization
|
20,655
|
26,294
|
(21%)
|
Operating
profit
|
14,635
|
21,610
|
(32%)
|
Profit before
taxes
|
12,474
|
19,750
|
(37%)
|
Depreciation
and amortization
|
6,020
|
4,684
|
29%
|
Adjusted
EBITDA
|
20,701
|
26,307
|
(21%)
|
Capital
expenditures
|
16,374
|
27,203
|
(40%)
|
Trecora Chemical (Specialty Wax Segment)
In the first
three quarters of 2018, TC generated revenues of $29.6 million, up 10.7% from $26.7 million for the first three quarters of
2017. Net income margin for the first three quarters of 2018
was (9.9%) as compared to (9.5%) for the first three quarters of
2017.
Dollar amount in
thousands – rounding may apply
|
NINE MONTHS
ENDED
|
|
|
SEPTEMBER
30,
|
|
|
2018
|
2017
|
%
Change
|
Product
sales
|
$ 20,755
|
$ 18,606
|
12%
|
Processing
fees
|
8,863
|
8,142
|
9%
|
Net
revenues
|
29,618
|
26,748
|
11%
|
Operating
profit before depreciation and amortization
|
1,969
|
970
|
103%
|
Operating
profit (loss)
|
(2,051)
|
(2,263)
|
9%
|
Profit (loss)
before taxes
|
(2,926)
|
(2,534)
|
(15%)
|
Depreciation
and amortization
|
4,020
|
3,233
|
24%
|
Adjusted
EBITDA
|
1,896
|
931
|
104%
|
Capital
expenditures
|
2,716
|
12,047
|
(77%)
|
Earnings Call
Tomorrow's conference call and
presentation slides will be simulcast live on the Internet, and can
be accessed on the investor relations section of the Company's
website at http://www.trecora.com or at
https://edge.media-server.com/m6/p/5qq387tc. A replay of the
call will also be available through the same link.
To participate via telephone, callers should dial in five to ten
minutes prior to the 10:00 am Eastern
start time; domestic callers (U.S. and Canada) should call 1-866-417-5724 or
1-409-217-8234 if calling internationally, using the conference ID
8555719. To listen to the playback, please call 1-855-859-2056 if
calling within the United States
or 1-404-537-3406 if calling internationally. Use pin number
8555719 for the replay.
Use of Non-GAAP Measures
The Company reports its
financial results in accordance with U.S. generally accepted
accounting principles ("GAAP"). This press release contains the
non-GAAP measures: EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin,
and Adjusted Net Income. We define EBITDA as net income plus
interest expense including derivative gains and losses, income
taxes, depreciation and amortization. We define Adjusted
EBITDA as EBITDA plus share-based compensation, plus or minus
equity in AMAK's earnings and losses or gains from equity issuances
and plus or minus gains or losses on acquisitions. We define
Adjusted Net Income as net income plus or minus tax effected equity
in AMAK's earnings and losses and plus or minus tax effected gains
or losses on acquisitions. These measures are not measures of
financial performance or liquidity under U.S. GAAP and should be
considered in addition to, not as a substitute for, net income
(loss), nor as an indicator of cash flows reported in accordance
with U.S. GAAP. These measures are used as supplemental financial
measures by management and external users of our financial
statements such as investors, banks, research analysts and
others. We believe that these non-GAAP measures are useful as
they exclude transactions not related to our core cash operating
activities.
Forward-Looking Statements
Statements in this press
release that are not historical facts are forward looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are based upon our belief,
as well as, assumptions made by and information currently available
to us. Because such statements are based upon expectations as to
future economic performance and are not statements of fact, actual
results may differ from those projected. These risks, as well as
others, are discussed in greater detail in Trecora Resources'
filings with the Securities and Exchange Commission, including
Trecora Resources' Annual Report on Form 10-K for the year ended
December 31, 2017, and the Company's
subsequent Quarterly Reports on Form 10-Q. All forward-looking
statements included in this press release are based upon
information available to the Company as of the date of this press
release.
About Trecora Resources (TREC)
TREC owns and operates
a facility located in southeast Texas, just north of Beaumont, which specializes in high purity
hydrocarbons and other petrochemical manufacturing. TREC also owns
and operates a leading manufacturer of specialty polyethylene waxes
and provider of custom processing services located in the heart of
the Petrochemical complex in Pasadena,
Texas. In addition, the Company is the original developer
and a 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian
joint stock company.
Investor Relations Contact:
Jean Marie Young
The Piacente Group, Inc.
212-481-2050
trecora@tpg-ir.com
TRECORA RESOURCES
AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
September
30, 2018 (Unaudited)
|
|
December
31, 2017
|
ASSETS
|
|
(thousands of
dollars)
|
Current
Assets
|
|
|
|
|
Cash
|
|
$
|
1,292
|
|
|
$
|
3,028
|
|
Trade receivables,
net
|
|
29,787
|
|
|
25,779
|
|
Insurance
receivable
|
|
391
|
|
|
—
|
|
Inventories
|
|
17,828
|
|
|
18,450
|
|
Prepaid expenses and
other assets
|
|
5,466
|
|
|
4,424
|
|
Taxes
receivable
|
|
1,554
|
|
|
5,584
|
|
Total current
assets
|
|
56,318
|
|
|
57,265
|
|
|
|
|
|
|
Plant,
pipeline and equipment, net
|
|
192,311
|
|
|
181,742
|
|
|
|
|
|
|
Goodwill
|
|
21,798
|
|
|
21,798
|
|
Intangible assets,
net
|
|
19,412
|
|
|
20,808
|
|
Investment in
AMAK
|
|
44,322
|
|
|
45,125
|
|
Mineral properties
in the United States
|
|
588
|
|
|
588
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
334,749
|
|
|
$
|
327,326
|
|
LIABILITIES
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
13,311
|
|
|
$
|
18,347
|
|
Accrued
liabilities
|
|
6,018
|
|
|
3,961
|
|
Current portion of
post-retirement benefit
|
|
24
|
|
|
305
|
|
Current portion of
long-term debt
|
|
4,194
|
|
|
8,061
|
|
Current portion of
other liabilities
|
|
835
|
|
|
870
|
|
Total current
liabilities
|
|
24,382
|
|
|
31,544
|
|
|
|
|
|
|
Long-term debt, net of current
portion
|
|
101,337
|
|
|
91,021
|
|
Post-retirement benefit, net of
current portion
|
|
361
|
|
|
897
|
|
Other
liabilities, net of current portion
|
|
1,170
|
|
|
1,611
|
|
Deferred income
taxes
|
|
18,218
|
|
|
17,242
|
|
Total
liabilities
|
|
145,468
|
|
|
142,315
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Common
stock‑authorized 40 million shares of $0.10 par value; issued
24.5 million in 2018 and 2017 and outstanding 24.3 million
shares in 2018 and 2017
|
|
2,451
|
|
|
2,451
|
|
Additional paid-in
capital
|
|
57,147
|
|
|
56,012
|
|
Common stock in
treasury, at cost
|
|
(19)
|
|
|
(196)
|
|
Retained
earnings
|
|
129,413
|
|
|
126,455
|
|
Total Trecora
Resources Stockholders' Equity
|
|
188,992
|
|
|
184,722
|
|
Noncontrolling
Interest
|
|
289
|
|
|
289
|
|
Total
equity
|
|
189,281
|
|
|
185,011
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
334,749
|
|
|
$
|
327,326
|
|
TRECORA RESOURCES
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
THREE MONTHS
ENDED SEPTEMBER 30,
|
|
NINE MONTHS
ENDED SEPTEMBER 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(thousands of
dollars)
|
|
(thousands of
dollars)
|
REVENUES
|
|
|
|
|
|
|
|
|
Petrochemical and
Product Sales
|
|
$
|
68,613
|
|
|
$
|
58,030
|
|
|
$
|
198,881
|
|
|
$
|
165,945
|
|
Processing
Fees
|
|
4,803
|
|
|
3,478
|
|
|
14,382
|
|
|
13,220
|
|
|
|
73,416
|
|
|
61,508
|
|
|
213,263
|
|
|
179,165
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS
AND EXPENSES
|
|
|
|
|
|
|
|
|
Cost of Sales and
Processing (including depreciation
and amortization of $3,813, $2,565, $9,480, and $7,311,
respectively)
|
|
66,574
|
|
|
51,638
|
|
|
188,139
|
|
|
147,570
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
6,842
|
|
|
9,870
|
|
|
25,124
|
|
|
31,595
|
|
|
|
|
|
|
|
|
|
|
GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
|
|
|
|
|
|
|
General and
Administrative
|
|
6,327
|
|
|
5,660
|
|
|
17,216
|
|
|
17,621
|
|
Depreciation
|
|
205
|
|
|
245
|
|
|
592
|
|
|
655
|
|
|
|
6,532
|
|
|
5,905
|
|
|
17,808
|
|
|
18,276
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
310
|
|
|
3,965
|
|
|
7,316
|
|
|
13,319
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
|
5
|
|
|
—
|
|
|
26
|
|
|
—
|
|
Interest
Expense
|
|
(924)
|
|
|
(795)
|
|
|
(2,617)
|
|
|
(2,109)
|
|
Loss on
Extinguishment of Debt
|
|
(315)
|
|
|
—
|
|
|
(315)
|
|
|
—
|
|
Equity in Losses of
AMAK
|
|
(1,130)
|
|
|
(897)
|
|
|
(672)
|
|
|
(5,161)
|
|
Miscellaneous Income
(Expense)
|
|
(28)
|
|
|
22
|
|
|
(67)
|
|
|
(42)
|
|
|
|
(2,392)
|
|
|
(1,670)
|
|
|
(3,645)
|
|
|
(7,312)
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
|
(2,082)
|
|
|
2,295
|
|
|
3,671
|
|
|
6,007
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
(EXPENSE) BENEFIT
|
|
(473)
|
|
|
577
|
|
|
713
|
|
|
1,970
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
(1,609)
|
|
|
1,718
|
|
|
2,958
|
|
|
4,037
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO TRECORA RESOURCES
|
|
$
|
(1,609)
|
|
|
$
|
1,718
|
|
|
$
|
2,958
|
|
|
$
|
4,037
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per
Common Share
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Trecora Resources (dollars)
|
|
$
|
(0.07)
|
|
|
$
|
0.07
|
|
|
$
|
0.12
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Number of Common Shares Outstanding
|
|
24,483
|
|
|
24,304
|
|
|
24,397
|
|
|
24,267
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
per Common Share
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Trecora Resources (dollars)
|
|
$
|
(0.06)
|
|
|
$
|
0.07
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Number of Common Shares Outstanding
|
|
25,175
|
|
|
25,157
|
|
|
25,138
|
|
|
25,082
|
|
TRECORA RESOURCES
AND SUBSIDIARIES
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP
MEASURES(1)
|
Adjusted EBITDA
Margin
|
(thousands of
dollars; rounding may apply)
|
|
|
THREE MONTHS ENDED
9/30/18
|
|
THREE MONTHS ENDED
9/30/17
|
|
TC
|
SHR
|
CORP
|
TREC
|
|
TC
|
SHR
|
CORP
|
TREC
|
NET INCOME
(LOSS)
|
$(1,239)
|
$2,504
|
$(2,874)
|
$(1,609)
|
|
$(1,974)
|
$5,537
|
$(1,845)
|
$1,718
|
Interest
|
265
|
659
|
-
|
924
|
|
168
|
625
|
2
|
795
|
Taxes
|
-
|
372
|
(845)
|
(473)
|
|
-
|
1,612
|
(1,035)
|
577
|
Depreciation and
amortization
|
24
|
165
|
16
|
205
|
|
22
|
207
|
17
|
246
|
Depreciation and
amortization in cost of sales
|
1,327
|
2,486
|
-
|
3,813
|
|
1,187
|
1,377
|
-
|
2,564
|
EBITDA
|
377
|
6,186
|
(3,703)
|
2,860
|
|
(597)
|
9,358
|
(2,861)
|
5,900
|
Share based
compensation
|
-
|
-
|
630
|
630
|
|
-
|
-
|
716
|
716
|
Loss on
extinguishment of debt
|
-
|
-
|
315
|
315
|
|
-
|
-
|
-
|
-
|
Equity in losses of
AMAK
|
-
|
-
|
1,130
|
1,130
|
|
-
|
-
|
897
|
897
|
Adjusted
EBITDA
|
$377
|
$6,186
|
$(1,628)
|
$4,935
|
|
$(597)
|
$9,358
|
$(1,248)
|
$7,513
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
9,737
|
63,731
|
(52)
|
73,416
|
|
7,550
|
53,958
|
-
|
61,508
|
Adjusted EBITDA
Margin
|
3.9%
|
9.7%
|
|
6.7%
|
|
-7.9%
|
17.3%
|
|
12.2%
|
(adjusted
EBITDA/revenue)
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED
9/30/18
|
|
NINE MONTHS ENDED
9/30/17
|
|
TC
|
SHR
|
CORP
|
TREC
|
|
TC
|
SHR
|
CORP
|
TREC
|
NET INCOME
(LOSS)
|
$(2,926)
|
$10,402
|
$(4,518)
|
$2,958
|
|
$(2,533)
|
$13,996
|
$(7,426)
|
$4,037
|
Interest
|
802
|
1,892
|
(77)
|
2,617
|
|
231
|
1,873
|
5
|
2,109
|
Taxes
|
-
|
2,387
|
(1,674)
|
713
|
|
-
|
5,754
|
(3,784)
|
1,970
|
Depreciation and
amortization
|
68
|
492
|
32
|
592
|
|
64
|
542
|
49
|
655
|
Depreciation and
amortization in cost of sales
|
3,952
|
5,528
|
-
|
9,480
|
|
3,169
|
4,142
|
-
|
7,311
|
EBITDA
|
1,896
|
20,701
|
(6,237)
|
16,360
|
|
931
|
26,307
|
(11,156)
|
16,082
|
Share based
compensation
|
-
|
-
|
1,002
|
1,002
|
|
-
|
-
|
2,005
|
2,005
|
Loss on
extinguishment of debt
|
-
|
-
|
315
|
315
|
|
-
|
-
|
-
|
-
|
Equity in losses of
AMAK
|
-
|
-
|
672
|
672
|
|
-
|
-
|
5,161
|
5,161
|
Adjusted
EBITDA
|
$1,896
|
$20,701
|
$(4,248)
|
$18,349
|
|
$931
|
$26,307
|
$(3,990)
|
$23,248
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
29,618
|
183,863
|
(218)
|
213,263
|
|
26,749
|
152,416
|
-
|
179,165
|
Adjusted EBITDA
Margin
|
6.4%
|
11.3%
|
|
8.6%
|
|
3.5%
|
17.3%
|
|
13.0%
|
(adjusted
EBITDA/revenue)
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income and Estimated EPS Impact
|
(thousands of
dollars, except per share amounts; rounding may
apply)
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
2018
|
2017
|
|
2018
|
2017
|
Net Income
(Loss)
|
$ (1,609)
|
$ 1,718
|
|
$ 2,958
|
$ 4,037
|
|
|
|
|
|
|
Equity in
losses of AMAK
|
$ 1,130
|
$
897
|
|
$
672
|
$
5,161
|
Taxes at statutory rate of 21% and 35%,
respectively
|
(237)
|
(314)
|
|
(141)
|
(1,806)
|
Tax
effected equity in losses
|
893
|
583
|
|
531
|
3,355
|
Adjusted Net Income
(Loss)
|
$ (716)
|
$ 2,301
|
|
$ 3,489
|
$ 7,392
|
Diluted weighted
average number of shares
|
25,175
|
25,157
|
|
25,138
|
25,082
|
Estimated effect on
diluted EPS (-tax effected equity
in AMAK/diluted weighted average number of shares)
|
($0.04)
|
($0.02)
|
|
($0.02)
|
($0.13)
|
|
(1)This press release
includes non-GAAP measures. Our non-GAAP measures are not meant to
be considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with
GAAP.
|
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SOURCE Trecora Resources