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TREC Trecora Resources

Trecora Resources engages in the manufacture and sale of petrochemical products and synthetic waxes; and provision of custom processing services. It operates through the Petrochemical and Specialty Wax segments. The Petrochemical segment is conducted through South Hampton Resources, Inc. (SHR), which produces high purity hydrocarbons and other petroleum based products; and Gulf State Pipe Line Co, Inc., which owns and operates pipelines that connect the SHR facility to a natural gas line, to SHR's truck and rail loading terminal, and to a major petroleum products pipeline owned by a third party. The Specialty Wax segment is conducted through Trecora Chemical, Inc., which produces specialty polyethylene and poly alpha olefin waxes. The company was founded on May 4, 1967 and is headquartered in Sugar Land, TX.

Company profile

Ticker
TREC
Exchange
Website
CEO
Patrick Quarles
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
ARABIAN AMERICAN DEVELOPMENT CO, ARABIAN SHIELD DEVELOPMENT CO
SEC CIK
IRS number
751256622

TREC stock data

(
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Calendar

6 May 21
3 Aug 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 53.03M 53.03M 53.03M 53.03M 53.03M 53.03M
Cash burn (monthly) 879.33K (positive/no burn) 1.8M 360.17K (positive/no burn) (positive/no burn)
Cash used (since last report) 3.64M n/a 7.45M 1.49M n/a n/a
Cash remaining 49.39M n/a 45.58M 51.54M n/a n/a
Runway (months of cash) 56.2 n/a 25.3 143.1 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
12 Jul 21 Ortelius Advisors Common Stock Buy Aquire P Yes No 8.27 10,000 82.7K 2,674,683
9 Jul 21 Ortelius Advisors Common Stock Buy Aquire P Yes No 8.2 54,737 448.84K 2,664,683
25 Jun 21 Ortelius Advisors Common Stock Buy Aquire P Yes No 8.31 58,449 485.71K 2,609,946
24 Jun 21 Ortelius Advisors Common Stock Buy Aquire P Yes No 8.18 28,076 229.66K 2,551,497
10 Jun 21 Ortelius Advisors Common Stock Buy Aquire P Yes No 8.49 31,529 267.68K 2,523,421
1 Jun 21 Michael W Silberman Common stock Payment of exercise Dispose F No No 8.26 4,301 35.53K 9,992
1 Jun 21 Michael W Silberman Common stock Option exercise Aquire M No No 0 12,288 0 14,293
1 Jun 21 Michael W Silberman RSU Common stock Option exercise Dispose M No No 0 12,288 0 63,052

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

80.2% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 68 64 +6.3%
Opened positions 11 8 +37.5%
Closed positions 7 2 +250.0%
Increased positions 25 28 -10.7%
Reduced positions 18 20 -10.0%
13F shares
Current Prev Q Change
Total value 247.84M 174.4M +42.1%
Total shares 19.95M 17.92M +11.4%
Total puts 38.7K 0 NEW
Total calls 0 0
Total put/call ratio Infinity
Largest owners
Shares Value Change
WELLINGTON TRUST Co N A 3.37M $23.58M 0.0%
Wellington Management 2.31M $17.95M -32.7%
Pangaea Ventures 1.83M $14.18M NEW
Wellington Trust Company, National Association Multiple Common Trust Funds Trust, Micro Cap Equity Portfolio 1.64M $11.47M 0.0%
BLK Blackrock 1.32M $10.28M +3.8%
Dimensional Fund Advisors 1.26M $9.82M +1.9%
Vanguard 1.08M $8.36M +11.0%
Royce & Associates 1.06M $8.27M +28.4%
Yacktman Asset Management 948.1K $7.37M +49.1%
Rutabaga Capital Management 785.2K $6.1M +9.8%
Largest transactions
Shares Bought/sold Change
Pangaea Ventures 1.83M +1.83M NEW
Wellington Management 2.31M -1.12M -32.7%
Yacktman Asset Management 948.1K +312.08K +49.1%
Royce & Associates 1.06M +235.19K +28.4%
First Wilshire Securities Management 527.43K +170K +47.6%
BEN Franklin Resources 162.3K +162.3K NEW
Acuitas Investments 130K +130K NEW
Arrowstreet Capital, Limited Partnership 123.46K +123.46K NEW
Vanguard 1.08M +106.23K +11.0%
Brigade Capital Management 0 -105.43K EXIT

Financial report summary

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Risks
  • We rely on a limited number of customers, including one customer that represented more than 10% of our consolidated revenue in 2020. A significant change in customer relationships or in customer demand for our products could materially adversely affect our results of operations, financial condition and cash flows.
  • Our industry is highly competitive, and we may lose market share to other producers of specialty petrochemicals, specialty waxes or other products that can be substituted for our products, which may adversely affect our results of operations, financial condition and cash flows.
  • Loss of key employees, our inability to attract and retain new qualified employees or our inability to keep our employees focused on our strategies and goals could have an adverse impact on our operations.
  • If the availability of our raw materials is limited, we may be unable to produce some of our products in quantities sufficient to meet customer demand or on favorable economic terms, which could have an adverse effect on our results of operations, financial condition and cash flows.
  • Increases in the costs of our raw materials could have an adverse effect on our financial condition and results of operations if those costs cannot be passed onto our customers.
  • If we are unable to access third-party transportation for our raw materials and finished products, we may not be able to fulfill our obligations to our customers in a timely manner, which could have a material adverse effect on our results of operations, financial condition and cash flows.
  • Failure to successfully consummate extraordinary transactions, including the integration of other businesses, assets, products or technologies, or realize the financial and strategic goals that were contemplated at the time of any such transaction may adversely affect our future business, results of operations and financial condition.
  • Maintenance, expansion and refurbishment of our facilities and the development and implementation of new manufacturing processes involve significant risks which may adversely affect our business, results of operations, financial condition and cash flows.
  • There are certain hazards and risks inherent in our operations that could adversely affect those operations and results of operations and financial condition.
  • Conditions in the global economy may adversely affect our results of operations, financial condition and cash flows.
  • The global outbreak of COVID-19 has had, and may continue to have, an adverse impact on the business, results of operations, financial position, and liquidity of the Company and/or its customers, suppliers, and other counterparties.
  • Domestic or international natural disasters or other severe weather events, health epidemics or pandemics or terrorist attacks may disrupt our operations or those of our customers or suppliers, decrease demand for our products or otherwise have an adverse impact on our business.
  • We are exposed to local business risks in different countries, which could have a material adverse effect on our financial condition and results of operations.
  • Certain activist stockholders actions could cause us to incur expense and hinder execution of our strategy.
  • Delaware law and certain provisions of our organizational documents may make a takeover of our company more difficult.
  • We are subject to numerous regulations that could require us to modify our current business practices and incur increased costs.
  • Adverse results of legal proceedings could materially adversely affect us.
  • We expect to continue to incur capital expenditures and operating costs as a result of our compliance with existing and future environmental laws and regulations.
  • The adoption of climate change legislation or regulation could result in increased operating costs and reduced demand for our products.
  • Increased information systems security threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products and services.
  • If we are not able to continue the technological innovation and successful commercial introduction of new products, our customers may turn to other producers to meet their requirements, which may adversely affect our results of operations, financial condition and cash flows.
  • Ineffectiveness of our enterprise resource planning (“ERP”) system may adversely affect our business and results of operations or the effectiveness of internal controls over financial reporting.
  • Changes in tax laws or exposure to additional income tax liabilities could affect our future profitability.
  • The covenants in the instruments that govern our outstanding indebtedness may limit our operating and financial flexibility.
  • Our indebtedness could limit cash flow available for our operations and could adversely affect our ability to service debt or obtain additional financing if necessary.
  • To service our current, and any future, indebtedness, we will require a significant amount of cash, which may adversely affect our future results.
  • Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
Management Discussion
  • We reported first quarter 2021 net loss from continuing operations of $4.4 million, down from net income from continuing operations of $5.9 million in the first quarter of 2020. During February 2021, a prolonged duration of sub-freezing temperatures and snow resulted in widespread utilities failures and rolling blackouts across the State of Texas and the region. This caused significant disruptions for our suppliers, customers and our own facilities. The Texas freeze event ultimately resulted in higher utility, repair and maintenance costs, as well as loss of sales at both facilities. Cost impacts of the Texas freeze event are estimated to be approximately $1.9 million across the Company, in addition to capital expenditures related to restoration of approximately $1.7 million. Sales volume of our Specialty Petrochemicals products decreased 12.9% in the first quarter of 2021 as compared to the first quarter of 2020. In addition, sales of Specialty Petrochemicals were also generally weaker compared to the same period last year due to the COVID-19 pandemic. Specialty Waxes sales revenue was up 1.6% compared to the first quarter 2020 due to wax feed supply interruptions in the first quarter of 2020.
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