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Trecora Resources (TREC)

Trecora Resources owns and operates a specialty petrochemicals facility specializing in high purity hydrocarbons and other petrochemical manufacturing and a specialty wax facility, both located in Texas, and provides custom processing services at both facilities.

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
Subsidiaries
Texas Oil & Chemical Co. • Trecora Chemical, Inc. • South Hampton Resources, Inc. • Gulf State Pipe Line Company ...
IRS number
751256622

TREC stock data

Calendar

4 May 22
12 Aug 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 31.94M 31.94M 31.94M 31.94M 31.94M 31.94M
Cash burn (monthly) (no burn) 1.76M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 7.73M n/a n/a n/a n/a
Cash remaining n/a 24.2M n/a n/a n/a n/a
Runway (months of cash) n/a 13.8 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
27 Jun 22 Loggenberg Peter Matthews Restricted Common Stock Common stock Sale back to company Dispose D No No 9.81 10,636 104.34K 0
27 Jun 22 Loggenberg Peter Matthews Restricted Common Stock Common stock Sale back to company Dispose D No No 9.81 12,492 122.55K 0
27 Jun 22 Loggenberg Peter Matthews Restricted Common Stock Common stock Sale back to company Dispose D No No 9.81 13,888 136.24K 0
27 Jun 22 Loggenberg Peter Matthews Restricted Common Stock Common stock Sale back to company Dispose D No No 9.81 10,637 104.35K 0
27 Jun 22 Loggenberg Peter Matthews Restricted Common Stock Common stock Sale back to company Dispose D No No 9.81 8,328 81.7K 0
27 Jun 22 Loggenberg Peter Matthews Restricted Common Stock Common stock Sale back to company Dispose D No No 9.81 4,630 45.42K 0
27 Jun 22 Michael W Silberman RSU Common stock Sale back to company Dispose D No No 9.81 12,290 120.56K 0
27 Jun 22 Michael W Silberman RSU Common stock Sale back to company Dispose D No No 9.81 10,688 104.85K 0
27 Jun 22 Michael W Silberman RSU Common stock Sale back to company Dispose D No No 9.81 12,552 123.14K 0
27 Jun 22 Michael W Silberman RSU Common stock Sale back to company Dispose D No No 9.81 8,021 78.69K 0
52.7% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 50 54 -7.4%
Opened positions 4 5 -20.0%
Closed positions 8 9 -11.1%
Increased positions 12 15 -20.0%
Reduced positions 20 21 -4.8%
13F shares Current Prev Q Change
Total value 80.71M 95.1M -15.1%
Total shares 12.47M 13.96M -10.7%
Total puts 52.6K 118.4K -55.6%
Total calls 0 0
Total put/call ratio Infinity Infinity NaN%
Largest owners Shares Value Change
Pangaea Ventures 2.67M $0 0.0%
Yacktman Asset Management 1.63M $13.77M +1.1%
Dimensional Fund Advisors 1.21M $10.24M -0.7%
Vanguard 1.07M $9.01M -2.3%
Royce & Associates 986.04K $8.34M -1.0%
Rutabaga Capital Management 769.84K $6.51M 0.0%
Capital Management 609.28K $5.16M +4.3%
Radoff Bradley Louis 513.64K $0 0.0%
First Wilshire Securities Management 470.86K $3.98M +1.0%
BEN Franklin Resources 429.32K $3.63M 0.0%
Largest transactions Shares Bought/sold Change
Wellington Management 0 -889.83K EXIT
Acuitas Investments 0 -280.81K EXIT
Meros Investment Management 96.92K -183.88K -65.5%
GS Goldman Sachs 0 -42.32K EXIT
First Eagle Investment Management 81.27K +39.04K +92.4%
Arrowstreet Capital, Limited Partnership 55.7K -37.33K -40.1%
Unison Advisors 0 -29.98K EXIT
Renaissance Technologies 168.75K -27.24K -13.9%
Jacobs Levy Equity Management 26.25K +26.25K NEW
Capital Management 609.28K +24.92K +4.3%

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 2021. 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.
  • We may be adversely affected by the effects of inflation.
  • 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.
  • Our business, operating results and the value of our common stock could be negatively affected as a result of actions by activist stockholders.
  • 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.
  • A failure of our information technology systems, including our enterprise resource planning (“ERP”) system, could adversely effect on 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 2022 net loss of approximately $0.4 million, an increase from net loss of $4.4 million in the first quarter of 2021. Sales volume of our Specialty Petrochemicals products increased 17.6% in the first quarter of 2022 as compared to the first quarter of 2021. Specialty Waxes sales revenue was up 44.4% compared to the first quarter 2021. First quarter 2022 results improved primarily due to increased pricing, the ongoing economic recovery and stronger demand from our end-use markets. Our first quarter 2021 results were significantly impacted by the prolonged period of sub-freezing temperatures and snow across the State of Texas and the region in February 2021 (the “Texas freeze event”) including reduced demand and higher natural gas and transportation costs.

Content analysis

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