Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 07, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TRECORA RESOURCES | ||
Entity Central Index Key | 7,039 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 173 | ||
Entity Common Stock, Shares Outstanding | 24,252,564 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,389 | $ 18,623 |
Trade receivables, net (Note 6) | 22,193 | 19,474 |
Prepaid expenses and other assets (Note 7) | 3,511 | 2,392 |
Inventories (Note 8) | 17,871 | 15,804 |
Deferred income taxes (Note 17) | 1,615 | 2,116 |
Taxes receivable | 3,983 | 7,672 |
Total current assets | 57,562 | 66,081 |
PLANT, PIPELINE, AND EQUIPMENT - AT COST | 194,486 | 143,471 |
LESS ACCUMULATED DEPRECIATION | (54,477) | (46,564) |
PLANT, PIPELINE, AND EQUIPMENT, NET (Note 9) | 140,009 | 96,907 |
GOODWILL (Note 10) | 21,798 | 21,798 |
OTHER INTANGIBLE ASSETS, net (Note 10) | 22,669 | 24,549 |
INVESTMENT IN AMAK (Note 11) | 49,386 | 47,697 |
MINERAL PROPERTIES IN THE UNITED STATES (Note 12) | 588 | 588 |
OTHER ASSETS | 87 | 171 |
TOTAL ASSETS | 292,099 | 257,791 |
CURRENT LIABILITIES | ||
Accounts payable | 13,306 | 8,090 |
Current portion of derivative instruments (Notes 5 and 22) | 58 | 118 |
Accrued liabilities (Note 14) | 2,017 | 4,062 |
Current portion of post-retirement benefit (Note 23) | 316 | 294 |
Current portion of long-term debt (Note 13) | 10,145 | 8,061 |
Current portion of other liabilities | 870 | 2,050 |
Total current liabilities | 26,712 | 22,675 |
LONG-TERM DEBT, net of current portion (Note 13) | 73,107 | 73,169 |
POST- RETIREMENT BENEFIT, net of current portion (Note 23) | 897 | 649 |
DERIVATIVE INSTRUMENTS, net of current portion (Notes 5 and 22) | 0 | 59 |
OTHER LIABILITIES, net of current portion | 2,309 | 2,351 |
DEFERRED INCOME TAXES (Note 17) | 24,698 | 16,503 |
Total liabilities | 127,723 | 115,406 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
EQUITY | ||
Common Stock-authorized 40 million shares of $.10 par value; issued 24.5 million in 2016 and 2015 and outstanding 24.2 million in 2016 and 2015 | 2,451 | 2,416 |
Additional Paid-in Capital | 53,474 | 50,662 |
Common Stock in Treasury, at cost 0.3 million shares | (284) | 0 |
Retained Earnings | 108,446 | 89,018 |
Total Trecora Resources Stockholders' Equity | 164,087 | 142,096 |
Noncontrolling interest | 289 | 289 |
Total equity | 164,376 | 142,385 |
TOTAL LIABILITIES AND EQUITY | $ 292,099 | $ 257,791 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
EQUITY | ||
Common stock, authorized (in shares) | 40 | 40 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued (in shares) | 24.5 | 24.2 |
Common stock, outstanding (in shares) | 24.5 | 24.2 |
Treasury stock (in shares) | 0.3 | 0.3 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Revenues | |||||
Petrochemical and product sales | $ 193,581 | $ 227,937 | $ 280,866 | ||
Processing fees | 18,818 | 14,039 | 8,777 | ||
Total Revenues | 212,399 | 241,976 | 289,643 | ||
Operating costs and expenses | |||||
Cost of petrochemical, product sales, and Processing (including depreciation and amortization of $9,016, $8,335, and $5,116, respectively) | 172,497 | 184,967 | 246,140 | ||
Gross Profit | 39,902 | 57,009 | 43,503 | ||
General and Administrative Expenses | |||||
General and administrative | 20,434 | 20,243 | 17,461 | ||
Depreciation | 761 | 725 | 560 | ||
Total General and Administrative Expenses | 21,195 | 20,968 | 18,021 | ||
Operating income | 18,707 | 36,041 | 25,482 | ||
Other income (expense) | |||||
Interest expense | (1,985) | (2,217) | (1,042) | ||
Losses on cash flow hedge reclassified from OCI | 0 | 0 | (378) | ||
Bargain purchase gain from acquisition | 11,549 | 0 | 0 | ||
Equity in earnings (loss) of AMAK (Note 11) | (1,479) | (5,325) | (1,072) | ||
Gain from additional equity issuance by AMAK (Note 11) | 3,168 | 0 | 0 | ||
Miscellaneous expense | (28) | (137) | (272) | ||
Total other income (expense) | 11,225 | (7,679) | (2,764) | ||
Income before income tax expense | 29,932 | 28,362 | 22,718 | ||
Income tax expense | 10,504 | 9,764 | 7,147 | ||
Net income | 19,428 | 18,598 | 15,571 | ||
Net loss attributable to Noncontrolling Interest | 0 | 0 | 0 | ||
Net income attributable to Trecora Resources | $ 19,428 | $ 18,598 | $ 15,571 | ||
Net income per common share | |||||
Basic earnings per share (in dollars per share) | $ 0.80 | [1] | $ 0.76 | [1] | $ 0.64 |
Diluted earnings per share (in dollars per share) | $ 0.78 | [1] | $ 0.74 | [1] | $ 0.63 |
Weighted average number of common shares outstanding | |||||
Basic (in shares) | 24,284 | 24,370 | 24,188 | ||
Diluted (in shares) | 24,982 | 25,181 | 24,896 | ||
[1] | Basic and diluted earnings per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING COSTS AND EXPENSES | |||
Depreciation and amortization included in the cost of sales and processing | $ 9,016 | $ 8,335 | $ 5,116 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
NET INCOME | $ 19,428 | $ 18,598 | $ 15,571 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | |||
Unrealized holding gains arising during period | 0 | 0 | 744 |
Less: reclassification adjustment included in net income | 0 | 0 | 378 |
OTHER COMPREHENSIVE INCOME, NET OF TAX (Note 22) | 0 | 0 | 366 |
COMPREHENSIVE INCOME | $ 19,428 | $ 18,598 | $ 15,937 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total [Member] | Non-Controlling Interest [Member] | Total |
Balance at Dec. 31, 2013 | $ 2,383 | $ 46,064 | $ 0 | $ (366) | $ 54,849 | $ 102,930 | $ 289 | $ 103,219 |
Balance (in shares) at Dec. 31, 2013 | 23,832 | |||||||
Stock options | ||||||||
Issued to Directors | $ 0 | 330 | 0 | 0 | 0 | 330 | 0 | 330 |
Issued to Employees | 0 | 1,555 | 0 | 0 | 0 | 1,555 | 0 | 1,555 |
Issued to Former Director | 0 | 97 | 0 | 0 | 0 | 97 | 0 | 97 |
Warrants | 0 | 79 | 0 | 0 | 0 | 79 | 0 | 79 |
Common Stock | ||||||||
Issued to Directors | $ 9 | (8) | 0 | 0 | 0 | 1 | 0 | 1 |
Issued to Directors (in shares) | 88 | |||||||
Issued to Employees | $ 5 | 165 | 0 | 0 | 0 | 170 | 0 | 170 |
Issued to Employees (in shares) | 55 | |||||||
Other Comprehensive Income | $ 0 | 0 | 0 | 366 | 0 | 366 | 0 | 366 |
Net Income | 0 | 0 | 0 | 0 | 15,571 | 15,571 | 0 | 15,571 |
Balance at Dec. 31, 2014 | $ 2,397 | 48,282 | 0 | 0 | 70,420 | 121,099 | 289 | 121,388 |
Balance (in shares) at Dec. 31, 2014 | 23,975 | |||||||
Stock options | ||||||||
Issued to Directors | $ 0 | 274 | 0 | 0 | 0 | 274 | 0 | 274 |
Issued to Employees | 0 | 1,274 | 0 | 0 | 0 | 1,274 | 0 | 1,274 |
Issued to Former Director | 0 | 97 | 0 | 0 | 0 | 97 | 0 | 97 |
Restricted Common Stock | ||||||||
Issued to Employees | $ 0 | 587 | 0 | 0 | 0 | 587 | 0 | 587 |
Issued to Employees (in shares) | 14 | |||||||
Issued to Directors | $ 0 | 43 | 0 | 0 | 0 | 43 | 0 | 43 |
Warrants | $ 1 | (1) | 0 | 0 | 0 | 0 | 0 | 0 |
Warrants (in shares) | 5 | |||||||
Common Stock | ||||||||
Issued to Directors | $ 10 | (10) | 0 | 0 | 0 | 0 | 0 | 0 |
Issued to Directors (in shares) | 100 | |||||||
Issued to Employees | $ 8 | 116 | 0 | 0 | 0 | 124 | 0 | 124 |
Issued to Employees (in shares) | 64 | |||||||
Other Comprehensive Income | 0 | |||||||
Net Income | $ 0 | 0 | 0 | 0 | 18,598 | 18,598 | 0 | 18,598 |
Balance at Dec. 31, 2015 | $ 2,416 | 50,662 | 0 | 0 | 89,018 | 142,096 | 289 | $ 142,385 |
Balance (in shares) at Dec. 31, 2015 | 24,158 | 24,200 | ||||||
Stock options | ||||||||
Issued to Directors | $ 0 | 173 | 0 | 0 | 0 | 173 | 0 | $ 173 |
Issued to Employees | 0 | 1,234 | 0 | 0 | 0 | 1,234 | 0 | 1,234 |
Issued to Former Director | 0 | 48 | 0 | 0 | 0 | 48 | 0 | 48 |
Restricted Common Stock | ||||||||
Issued to Employees | $ 0 | 783 | 0 | 0 | 0 | 783 | 0 | 783 |
Issued to Employees (in shares) | 0 | |||||||
Issued to Directors | $ 0 | 254 | 0 | 0 | 0 | 254 | 0 | 254 |
Common Stock | ||||||||
Issued to Directors | $ 2 | 58 | 0 | 0 | 0 | 60 | 0 | 60 |
Issued to Directors (in shares) | 13 | |||||||
Issued to Employees | $ 3 | (8) | 16 | 0 | 0 | 11 | 0 | 11 |
Issued to Employees (in shares) | 51 | |||||||
Treasury stock transferred from TOCCO to TREC | $ 30 | 270 | (300) | 0 | 0 | 0 | 0 | 0 |
Other Comprehensive Income | 0 | |||||||
Net Income | 0 | 0 | 0 | 0 | 19,428 | 19,428 | 0 | 19,428 |
Balance at Dec. 31, 2016 | $ 2,451 | $ 53,474 | $ (284) | $ 0 | $ 108,446 | $ 164,087 | $ 289 | $ 164,376 |
Balance (in shares) at Dec. 31, 2016 | 24,222 | 24,500 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income attributable to Trecora Resources | $ 19,428 | $ 18,598 | $ 15,571 |
Adjustments to reconcile net income of Trecora Resources to net cash provided by operating activities: | |||
Depreciation | 7,896 | 7,177 | 5,205 |
Amortization of intangible assets | 1,880 | 1,883 | 471 |
Unrealized (gain) loss on derivative instruments | (119) | (381) | 376 |
Share-based compensation | 2,552 | 2,353 | 2,141 |
Deferred income taxes | 8,697 | 5,567 | (1,903) |
Postretirement obligation | 271 | 7 | 8 |
Bargain purchase gain from acquisition | (11,549) | 0 | 0 |
Equity in loss of AMAK | 1,479 | 5,325 | 1,072 |
Gain from additional equity issuance by AMAK | (3,168) | 0 | 0 |
Bad debt expense | 90 | 0 | 0 |
Amortization of loan fees | 272 | 272 | 68 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in trade receivables | (2,809) | 8,797 | (3,380) |
(Increase) decrease in taxes receivable | 3,689 | (7,238) | 137 |
(Increase) decrease in inventories | (2,067) | (2,989) | 2,587 |
(Increase) decrease in prepaid expenses and other assets | (1,022) | 935 | (337) |
(Increase) decrease in other assets | 0 | 2 | (1,092) |
Increase (decrease) in other liabilities | (174) | 2,151 | 90 |
Increase (decrease) in accounts payable and accrued liabilities | 3,168 | (2,399) | 1,836 |
Increase (decrease) in accrued liabilities in Saudi Arabia | 0 | (495) | 355 |
Net cash provided by operating activities | 28,514 | 39,565 | 23,205 |
Investing activities | |||
Additions to plant, pipeline and equipment | (38,484) | (31,247) | (14,766) |
Acquisition of TC, Inc., net of cash of $107 purchased in 2014 | 0 | (47) | (74,712) |
Acquisition of B Plant | (2,011) | 0 | 0 |
Advances to AMAK, net | (14) | 0 | 536 |
Net cash used in investing activities | (40,509) | (31,294) | (88,942) |
Financing Activities | |||
Issuance of common stock | 11 | 46 | 91 |
Additions to long-term debt | 8,000 | 15,000 | 87,200 |
Repayment of long-term debt | (6,250) | (13,200) | (20,656) |
Net cash provided by in financing activities | 1,761 | 1,846 | 66,635 |
Net increase (decrease) in cash and cash equivalents | (10,234) | 10,117 | 898 |
Cash and cash equivalents at beginning of year | 18,623 | 8,506 | 7,608 |
Cash and cash equivalents at end of year | 8,389 | 18,623 | 8,506 |
Supplemental disclosure of cash flow information: | |||
Cash payments for interest | 2,545 | 2,103 | 995 |
Cash payments (net of refunds) for taxes | (1,630) | 11,428 | 8,959 |
Supplemental disclosure of non-cash items: | |||
Other liabilities for capital expansion amortized to depreciation expense | 1,047 | 972 | 1,649 |
Estimated earnout liability (Note 3) | 733 | 0 | 0 |
Unrealized gain on interest rate swap, net of tax expense | $ 0 | $ 0 | $ 366 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Investing activities | |
Acquisition of Trecora Chemical, Inc. cash acquired | $ 107 |
BUSINESS AND OPERATIONS OF THE
BUSINESS AND OPERATIONS OF THE COMPANY | 12 Months Ended |
Dec. 31, 2016 | |
BUSINESS AND OPERATIONS OF THE COMPANY [Abstract] | |
BUSINESS AND OPERATIONS OF THE COMPANY | NOTE 1 - BUSINESS AND OPERATIONS OF THE COMPANY Trecora Resources, formerly Arabian American Development Company, (the “Company”) was organized as a Delaware corporation in 1967. The Company’s principal business activities are the manufacturing of various specialty petrochemical products, specialty waxes and providing custom processing services. The Company owns 33% of a Saudi Arabian joint stock company, Al Masane Al Kobra Mining Company (“AMAK”) (see Note 11) and approximately 55% of the capital stock of a Nevada mining company, Pioche Ely Valley Mines, Inc. (“PEVM”), which does not conduct any substantial business activity but owns undeveloped properties in the United States. The Company’s petrochemical operations are primarily conducted through a wholly-owned subsidiary, Texas Oil and Chemical Co. II, Inc. (“TOCCO”). TOCCO owns all of the capital stock of South Hampton Resources, Inc. (“SHR”) and Trecora Chemical, Inc. (“TC”). SHR owns all of the capital stock of Gulf State Pipe Line Company, Inc. (“GSPL”). SHR owns and operates a specialty petrochemical product facility near Silsbee, Texas which manufactures high purity hydrocarbons used primarily in polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, Canadian tar sands, and in the catalyst support industry. TC owns and operates a facility located in Pasadena, Texas which manufactures specialty waxes and provides custom processing services. These specialty waxes are used in the production of coatings, hot melt adhesives and lubricants. GSPL 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 pipeline owned by an unaffiliated third party. On October 1, 2014, TOCCO, a Texas corporation, acquired (“Acquisition”) 100% of the Class A common stock of SSI Chusei, Inc. (“SSI”), a Texas corporation and leading manufacturer of specialty synthetic waxes and custom toll processing services in Pasadena, Texas. On November 15, 2014, SSI’s name was changed to TC. In May 2016 TC acquired B Plant, an adjacent facility. We attribute revenues to countries based upon the origination of the transaction. All of our revenues for the years ended December 31, 2016, 2015, and 2014, originated in the United States. In addition, all of our long-lived assets are in the United States. For convenience in this report, the terms “Company”, “our”, “us” or “we” may be used to refer to Trecora Resources and its subsidiaries. Certain reclassifications have been made to the Statements of Income for the years ended December 31, 2015, and 2014, in order to conform with the presentation of the year ended December 31, 2016. These reclassifications had no effect on the previously reported net income for the years ended December 31, 2015, and 2014. In addition, certain reclassifications have been made to the Consolidated Balance Sheets for the year ended December 31, 2015, related to our adoption of FASB ASU 2015-03, Interest – Imputation of interest (Subtopic 835-30) Imputation of interest (Subtopic 835-30) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Cash, Cash Equivalents and Short-Term Investments Inventories Trade Receivables and Allowance for Doubtful Accounts Notes Receivable Plant, Pipeline and Equipment Interest costs incurred to finance expenditures during construction phase are capitalized as part of the historical cost of constructing the assets. Construction commences with the development of the design and ends when the assets are ready for use. Capitalized interest costs are included in plant, pipeline and equipment and are depreciated over the service life of the related assets. Platinum catalyst is included in plant, pipeline and equipment at cost. Amortization of the catalyst is based upon cost less estimated salvage value of the catalyst using the straight line method over the estimated useful life (see Note 9). Goodwill and Other Intangible Assets Definite-lived intangible assets consist of customer relationships, licenses, permits and developed technology that were acquired as part of the Acquisition. The majority of these assets are being amortized using discounted estimated future cash flows over the term of the related agreements. Intangible assets associated with customer relationships are being amortized using the discounted estimated future cash flows method based upon assumed rates of annual customer attrition. We continually evaluate the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they will be removed from the consolidated balance sheets. Business Combinations and Related Business Acquisition Costs Business acquisition costs are expensed as incurred and are reported as general and administrative expenses in the consolidated statements of income. We define these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional consulting fees, as well as, travel associated with the evaluation and effort to acquire specific businesses. Investment in AMAK We assess our investment in AMAK for impairment when events are identified, or there are changes in circumstances that may have an adverse effect on the fair value of the investment. We consider recoverable ore reserves and the amount and timing of the cash flows to be generated by the production of those reserves, as well as, recent equity transactions within AMAK. Other Assets Long-Lived Assets Impairment The amount of the impairment loss to be recorded is calculated by the excess of the asset's carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis although other factors including the state of the economy are considered. Revenue Recognition – Revenues received in advance of future sales of products or prior to the performance of services are presented as deferred revenues. Shipping and Handling Costs - Retirement Plan Environmental Liabilities Other Liabilities Net Income Per Share Foreign Currency Management Estimates Share-Based Compensation Guarantees – a) We have a non-contingent and immediate obligation to stand ready to make payments if certain future triggering events occur. For certain guarantees, a liability is recognized for the stand ready obligation at the inception of the guarantee; and b) We have an obligation to make future payments if those certain future triggering events do occur. A liability for the payment under the guarantee is recognized when 1) it becomes probable that one or more future events will occur, triggering the requirement to make payments under the guarantee and 2) when the payment can be reasonably estimated. Derivatives Income Taxes Our estimate of the potential outcome of any uncertain tax issues is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. We use a more likely than not threshold for financial statement recognition and measurement of tax position taken or expected to be taken in a tax return. To the extent that our assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. We report tax-related interest and penalties as a component of income tax expense. We recognized no adjustment for unrecognized income tax benefits. As of December 31, 2016, and 2015, no interest or penalties related to uncertain tax positions had been accrued. Subsequent Events March 16, 2017 New Accounting Pronouncements In May 2014 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers . Revenue Recognition Revenue from Contracts with Customers efore annual periods beginning after December 15, 2016. In April 2015 the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015 the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In February 2016 the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. Upon adoption, the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. In March 2016 the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which will reduce complexity in accounting standards related to share-based payment transactions, including, among others, (1) accounting for income taxes, (2) classification of excess tax benefits on the statement of cash flow, (3) forfeitures, and (4) statutory tax withholding requirements. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. In January 2017 the FASB issued ASU No. 2017-03 Accounting Changes and Error Corrections Topic 250) and Investments —Equity Method and Joint Ventures (Topic 323) . Financial Instruments - Credit Losses, Leases, Revenue from Contracts with Customers, In January 2017 the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. |
ACQUISITION OF B PLANT
ACQUISITION OF B PLANT | 12 Months Ended |
Dec. 31, 2016 | |
ACQUISITION OF B PLANT [Abstract] | |
ACQUISITION OF B PLANT | NOTE 3 – ACQUISITION OF B PLANT On May 2, 2016, we purchased the idle BASF facility adjacent to our TC facility in exchange for $2.0 million in cash, transaction costs of approximately $11,000 plus an earnout provision calculated through calendar year 2020 based upon revenue generated by the facility but limited to $1.8 million. The cash payment was funded by working capital. The purchased facility includes production equipment similar to TC’s plus equipment that broadens TC's capabilities and potential markets. The 6.5-acre site also includes substantial storage capacity, several rail and truck loading sites and utility tie-ins to TC. We refer to the facility as “B Plant”. We have accounted for the purchase in accordance with the acquisition method of accounting under Financial Accounting Standards Board Accounting Standards Codification Topic 805 “Business Combinations” (“ASC 805”). In accordance with ASC 805, we used our best estimates and assumptions to assign fair value to the tangible assets and liabilities acquired at the acquisition date. The assets and liabilities acquired have been included in our consolidated balance sheets and our consolidated statements of income since the date of acquisition. We recorded an $11.5 million bargain purchase gain on the transaction as calculated in the table below (in thousands). Cash paid $ 2,011 Estimated earnout liability 733 Purchase Price $ 2,744 Fixed assets at FMV Land 980 Site improvements 30 Buildings 1,350 Production equipment 11,933 14,293 Bargain purchase gain $ 11,549 The business acquired had been idle for the periods presented thus proforma financial presentation would be identical to our consolidated results. We began operating the new facility in June 2016. |
CONCENTRATIONS OF REVENUES AND
CONCENTRATIONS OF REVENUES AND CREDIT RISK | 12 Months Ended |
Dec. 31, 2016 | |
CONCENTRATIONS OF REVENUES AND CREDIT RISK [Abstract] | |
CONCENTRATIONS OF REVENUES AND CREDIT RISK | NOTE 4 - CONCENTRATIONS OF REVENUES AND CREDIT RISK We sell our products and services to companies in the chemical, plastics, and petroleum industries. We perform periodic credit evaluations of our customers and generally do not require collateral from our customers. For the year ended December 31, 2016, one customer accounted for 20.1% of petrochemical product revenue. For the year ended December 31, 2015, one customer accounted for 20.1% of petrochemical product revenue. For the year ended December 31, 2014, two customers accounted for 23.2% and 10.5% of total revenue. The associated accounts receivable balances for those customers were approximately $5.1 million at December 31, 2016, $7.6 million at December 31, 2015, and $9.5 million and $1.6 million as of December 31, 2014. The carrying amount of accounts receivable approximates fair value at December 31, 2016. Accounts receivable serves as collateral for our amended and restated loan agreement (see Note 13). We market our products in many foreign jurisdictions. For the years ended December 31, 2016, 2015 and 2014, petrochemical product sales revenue in foreign jurisdictions accounted for approximately 23.5%, 26.0%, and 30.5% of total product sales revenue, respectively. SHR utilizes one major supplier for its feedstock supply. The feedstock is a commodity product commonly available from other suppliers if needed. The percentage of feedstock purchased from the supplier during 2016, 2015, and 2014 was 99.4% 100% and 100%, respectively. At December 31, 2016, and 2015, we owed the supplier approximately $3.7 million and $2.5 million, respectively for feedstock purchases. We hold our cash with various financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000. At times during the year, cash balances may exceed this limit. We have not experienced any losses in such accounts and do not believe we are exposed to any significant risk of loss related to cash. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5 – FAIR VALUE MEASUREMENTS The carrying value of cash and cash equivalents, trade receivables, taxes receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of variable rate long term debt and notes payable reflect recent market transactions and approximate carrying value. We used other observable inputs that would qualify as Level 2 inputs to make our assessment of the approximate fair value of our cash and cash equivalents, trade receivables, taxes receivable, accounts payable, accrued liabilities, other liabilities, notes payable and variable rate long term debt. The fair value of the derivative instruments are described below. We measure fair value by ASC Topic 820 Fair Value. ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC Topic 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard amends numerous accounting pronouncements but does not require any new fair value measurements of reported balances. ASC Topic 820 emphasizes that fair value, among other things, is based on exit price versus entry price, should include assumptions about risk such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. When considering the assumptions that market participants would use in pricing the asset or liability, ASC Topic 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The fair value hierarchy prioritizes inputs used to measure fair value into three broad levels. Level 1 inputs Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Commodity Financial Instruments We periodically enter into financial instruments to hedge the cost of natural gasoline (the primary feedstock) and natural gas (used as fuel to operate the plants). We use financial swaps on feedstock and options on natural gas to limit the effect of significant fluctuations in price on operating results. We assess the fair value of the financial swaps on feedstock using quoted prices in active markets for identical assets or liabilities (Level 1 of fair value hierarchy). At December 31, 2016, and 2015, we had no derivative contracts outstanding. For additional information see Note 22. Interest Rate Swaps In March 2008 we entered into an interest rate swap agreement with Bank of America related to the $10.0 million term loan secured by plant, pipeline and equipment. The interest rate swap was designed to minimize the effect of changes in the LIBOR rate. We had designated the interest rate swap as a cash flow hedge under ASC Topic 815 (see Note 22); however, due to the new debt agreements associated with the Acquisition, we believe that the hedge is no longer entirely effective. Due to the time required to make the determination and the immateriality of the hedge, we began treating the interest rate swap as ineffective as of October 1, 2014, and the unrealized loss associated with the swap of approximately $378,000 was recognized in the Statement of Income for the year ended December 31, 2014. We assess the fair value of the interest rate swap using a present value model that includes quoted LIBOR rates and the nonperformance risk of the Company and Bank of America based on the Credit Default Swap Market (Level 2 of fair value hierarchy). The following items are measured at fair value on a recurring basis at December 31, 2016 and 2015: Fair Value Measurements Using December 31, 2016 Total Level 1 Level 2 Level 3 (thousands of dollars) Liabilities: Interest rate swap $ 58 $ - $ 58 $ - Fair Value Measurements Using December 31, 2015 Total Level 1 Level 2 Level 3 (thousands of dollars) Liabilities: Interest rate swap $ 177 $ - $ 177 $ - We have consistently applied valuation techniques in all periods presented and believe we have obtained the most accurate information available for the types of derivative contracts we hold. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2016 | |
TRADE RECEIVABLES [Abstract] | |
TRADE RECEIVABLES | NOTE 6 – TRADE RECEIVABLES Trade receivables, net, at December 31, 2016, and 2015, respectively, consisted of the following: 2016 2015 (thousands of dollars) Trade receivables $ 22,493 $ 19,684 Less allowance for doubtful accounts (300 ) (210 ) Trade receivables, net $ 22,193 $ 19,474 Trade receivables serves as collateral for our amended and restated loan agreement with a domestic bank (see Note 13). |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
PREPAID EXPENSES AND OTHER ASSETS [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | NOTE 7 – PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets at December 31 are summarized as follows: 2016 2015 (thousands of dollars) Prepaid license $ 1,919 $ - Prepaid catalyst 187 455 Prepaid insurance 797 1,182 Other prepaid expenses and assets 608 755 Total $ 3,511 $ 2,392 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 8 – INVENTORIES Inventories include the following at December 31: 2016 2015 (thousands of dollars) Raw material $ 3,627 $ 2,905 Work in process 12 56 Finished products 14,232 12,843 Total inventory $ 17,871 $ 15,804 Inventory serves as collateral for our amended and restated loan agreement with a domestic bank (see Note 13). The difference between the calculated value of inventory under the FIFO and LIFO bases generates either a recorded LIFO reserve (i.e., where FIFO value exceeds the LIFO value) or an unrecorded negative LIFO reserve (i.e., where the LIFO value exceeds the FIFO value). In the latter case, in order to ensure that inventory is reported at the lower of cost or market and in accordance with ASC 330-10, we do not increase the stated value of our inventory to the LIFO value. At December 31, 2016 and 2015, the LIFO value of inventory exceeded FIFO; therefore, in accordance with the above policy, no LIFO reserve was recorded. Inventory included products in transit valued at approximately $2.1 million and $2.7 million at December 31, 2016, and 2015, respectively. |
PLANT, PIPELINE AND EQUIPMENT
PLANT, PIPELINE AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
PLANT, PIPELINE AND EQUIPMENT [Abstract] | |
PLANT, PIPELINE AND EQUIPMENT | NOTE 9 – PLANT, PIPELINE AND EQUIPMENT Plant, pipeline and equipment include the following at December 31: 2016 2015 (thousands of dollars) Platinum catalyst $ 1,612 $ 1,612 Land 5,376 4,577 Plant, pipeline and equipment 154,107 128,302 Construction in progress 33,391 8,980 Total plant, pipeline and equipment 194,486 143,471 Less accumulated depreciation (54,477 ) (46,564 ) Net plant, pipeline and equipment $ 140,009 $ 96,907 Plant, pipeline and equipment serve as collateral for our amended and restated loan agreement with a domestic bank (see Note 13). Interest capitalized for construction for 2016 and 2015 was approximately $450,000 and $141,000, respectively. Interest capitalized for 2014 was not significant to the consolidated financial statements. Catalyst amortization relating to the platinum catalyst which is included in cost of sales was approximately $98,000, $84,000 and $84,000 for 2016, 2015 and 2014, respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | NOTE 10 – GOODWILL AND INTANGIBLE ASSETS, NET Goodwill We performed an impairment analysis on the value of Goodwill at December 31, 2016 and 2015, and determined that no impairment existed. Intangible Assets The following table summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): December 31, 2016 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (2,527 ) $ 14,325 Non-compete agreements 94 (43 ) 51 Licenses and permits 1,471 (285 ) 1,186 Developed technology 6,131 (1,379 ) 4,752 24,548 (4,234 ) 20,314 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (4,234 ) $ 22,669 December 31, 2015 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (1,404 ) $ 15,448 Non-compete agreements 94 (24 ) 70 Licenses and permits 1,471 (160 ) 1,311 Developed technology 6,131 (766 ) 5,365 24,548 (2,354 ) 22,194 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (2,354 ) $ 24,549 Amortization expense for intangible assets included in cost of sales for the years ended December 31, 2016, 2015, and 2014, was approximately $1,880,000, $1,883,000, and $471,000 respectively. Based on identified intangible assets that are subject to amortization as of December 31, 2016, we expect future amortization expenses for each period to be as follows (in thousands): 2017 2018 2019 2020 2021 Thereafter Customer relationships $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 8,710 Non-compete agreements 19 19 13 - - - Licenses and permits 106 106 106 106 106 656 Developed technology 613 613 613 613 613 1,687 Total future amortization expense $ 1,861 $ 1,861 $ 1,855 $ 1,842 $ 1,842 $ 11,053 |
INVESTMENT IN AL MASANE AL KOBR
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract] | |
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") | NOTE 11 - INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (“AMAK”) We have concluded that we have significant influence over the operating and financial policies of AMAK and, accordingly, should account for our investment in AMAK using the equity method. As of December 31, 2016, and 2015, we had a non-controlling equity interest of approximately $49.4 million and $47.7 million, respectively. We have received and attached to this Form 10-K the financial statements of AMAK prepared in accordance with generally accepted accounting principles in the United States of America as of December 31, 2016, and 2015, and for each of the three years ended December 31, 2016. These financial statements have been prepared in the functional currency of AMAK which is the Saudi Riyal (SR). In June 1986 the SR was officially pegged to the U.S. Dollar (USD) at a fixed exchange rate of 1 USD to 3.75 SR. The summarized results of operation and financial position for AMAK are as follows: Results of Operations Years Ended December 31, 2016 2015 2014 (Thousands of Dollars) Sales $ 9,921 $ 50,744 $ 63,300 Gross profit (loss) (17,211 ) (10,437 ) 3,624 General, administrative and other expenses 9,690 8,796 10,487 Loss from operations $ (26,901 ) $ (19,233 ) $ (6,863 ) Gain on settlement with former operator 17,425 - - Net loss $ (9,476 ) $ (19,233 ) $ (6,863 ) Depreciation and amortization for the years ended December 31, 2016, 2015, and 2014 was $11.7 million, $23.2 million and $23.7 million, respectively. Therefore, net income before depreciation and amortization was as follows: Years Ended December 31, 2016 2015 2014 (Thousands of Dollars) Net income before depreciation and amortization $ 2,196 $ 4,016 $ 16,845 Financial Position December 31, 2016 2015 (Thousands of Dollars) Current assets $ 22,860 $ 26,078 Noncurrent assets 251,741 255,613 Total assets $ 274,601 $ 281,691 Current liabilities $ 8,005 $ 22,740 Long term liabilities 82,546 85,450 Shareholders' equity 184,050 173,501 Total liabilities and equity $ 274,601 $ 281,691 The equity in the income or loss of AMAK reflected on the consolidated statements of income for the years ended December 31, 2016, 2015, and 2014, is comprised of the following: 2016 2015 2014 AMAK Net Loss $ (9,476 ) $ (19,233 ) $ (6,863 ) Zakat tax applicable to Saudi Arabian shareholders only 320 303 - AMAK Net Loss before Saudi Arabian shareholders’ portion of Zakat $ (9,156 ) $ (18,930 ) $ (6,863 ) Company’s share of loss reported by AMAK (33.44% beginning July 10, 2016 and 35.25% prior to July 10, 2016) $ (2,826 ) $ (6,672 ) $ (2,419 ) Amortization of difference between Company’s investment in AMAK and Company’s share of net assets of AMAK 1,347 1,347 1,347 Equity in loss of AMAK $ (1,479 ) $ (5,325 ) $ (1,072 ) The difference between our effective share of income (loss) from our investment and our actual ownership percentage is attributable to the change in our ownership percentage during the third quarter. A gain of approximately $16.2 million for the difference between our initial investment in AMAK and our share of AMAK’s initial assets recorded at fair value was not recognized in 2008. This basis difference is being amortized over the life of AMAK’s mine which is estimated to be twelve years beginning with its commencement of production in July 2012 as an adjustment to our equity in AMAK’s income or loss. In July 2016 AMAK issued four million shares to provide additional funds for ongoing exploration work and mine start-up activities. Arab Mining Co. (“Armico”) purchased 3.75 million shares at SR 20 per share (USD$5.33 per share) and the remaining 250,000 shares are for future use as employee incentives. We did not participate in the offering, thereby reducing our ownership percentage in AMAK to 33.44% from 35.25%. As a result of the equity issuance, our share of the net assets of AMAK increased approximately $3.2 million which we recognized as a gain (with a corresponding increase in our investment) in accordance with ASC 323-10-40-1. The following table shows AMAK shareholders and percentages owned at December 31, 2016: Name Percentage Owned Various Saudi shareholders 46.73 % Trecora Resources 33.44 % Armico 19.51 % Treasury 0.32 % Total 100.00 % At December 31, 2016, we had a receivable from AMAK of approximately $14,000 relating to unreimbursed travel expenses. We assess our investment in AMAK for impairment when events are identified, or there are changes in circumstances that may have an adverse effect on the fair value or recoverability of the investment. We consider recoverable ore reserves and the amount and timing of the cash flows to be generated by the production of those reserves, as well as, recent equity transactions within AMAK. No impairment charges were recorded in 2016, 2015, or 2014. |
MINERAL PROPERTIES IN THE UNITE
MINERAL PROPERTIES IN THE UNITED STATES | 12 Months Ended |
Dec. 31, 2016 | |
MINERAL PROPERTIES IN THE UNITED STATES [Abstract] | |
MINERAL PROPERTIES IN THE UNITED STATES | NOTE 12 - MINERAL PROPERTIES IN THE UNITED STATES The principal assets of PEVM are an undivided interest in 48 patented and 5 unpatented mining claims totaling approximately 1,500 acres, and a 300 ton-per-day mill located on the aforementioned properties in the PEVM Mining District in southeast Nevada. In August 2001 seventy five unpatented claims were abandoned since they were deemed to have no future value to PEVM. The properties held by PEVM have not been commercially operated for approximately 35 years. |
LONG-TERM DEBT AND LONG-TERM OB
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2016 | |
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS [Abstract] | |
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS | NOTE 13 - LONG-TERM DEBT AND LONG-TERM OBLIGATIONS Long-term debt and long-term obligations at December 31 are summarized as follows: 2016 2015 (thousands of dollars) Revolving note to domestic banks (A) $ 9,000 $ 1,000 Term note to domestic banks (B) 56,000 61,250 Term note to domestic banks (C) 19,000 20,000 Loan fees (748 ) (1,020 ) Total long-term debt 83,252 81,230 Less current portion including loan fees 10,145 8,061 Total long-term debt, less current portion including loan fees $ 73,107 $ 73,169 Loan fees are capitalized and amortized on a straight line basis over the life of the loan, which approximates the effective interest method. Loan fees of $748,000 and $1,020,000 net of accumulated amortization are included with long term debt and long term obligations at December 31, 2016 and 2015. Amortization of loan fees amounted to approximately $272,000, $272,000, and $68,000 for the years ended December 31, 2016, 2015, and 2014, respectively. (A) On October 1, 2014, TOCCO, SHR, GSPL and TC (SHR, GSPL and TC collectively the “Guarantors”) entered into an Amended and Restated Credit Agreement (“ARC Agreement”) with the lenders which from time to time are parties to the ARC Agreement (collectively, the “Lenders”) and Bank of America, N.A., a national banking association, as Administrative Agent for the Lenders, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Lead Arranger. Subject to the terms and conditions of the ARC Agreement, TOCCO may (a) borrow, repay and re-borrow revolving loans (collectively, the “Revolving Loans”) from time to time during the period ending September 30, 2019, up to but not exceeding at any one time outstanding $40.0 million (the “Revolving Loan Commitment”) and (b) request up to $5.0 million of letters of credit and $5.0 million of swingline loans. Each of the issuance of letters of credit and the advance of swingline loans shall be considered usage of the Revolving Loan Commitment. All outstanding loans under the Revolving Loans must be repaid on October 1, 2019. As of December 31, 2016, and 2015, TOCCO had long-term outstanding borrowings under the Revolving Loans of $9.0 million and $1.0 million, respectively. At December 31, 2016, approximately $31.0 million was available to be drawn. However, in order to maintain compliance with our covenants, we could have only drawn approximately $29.5 million. (B) Under the ARC Agreement, TOCCO also borrowed $70.0 million in a single advance term loan (the “Acquisition Term Loan”) to partially finance the Acquisition. At December 31, 2016, there was a short-term amount of $8.8 million and a long-term amount of $47.3 million outstanding. At December 31, 2015, there was a short-term amount of $7.0 million and a long-term amount of $54.3 million outstanding. (C) Under the ARC Agreement, TOCCO also has the right to borrow $25.0 million in a multiple advance loan (the “Term Loans,” together with the Revolving Loans and Acquisition Term Loan, collectively the “Loans”). Borrowing availability under the Term Loans ended on December 31, 2015. The Term Loans convert from a multiple advance loan to a “mini-perm” loan once TOCCO has fulfilled certain obligations such as certification that construction of D Train was completed in a good and workmanlike manner, receipt of applicable permits and releases from governmental authorities, and receipt of releases of liens from the contractor and each subcontractor and supplier. The Loans also include a $40.0 million uncommitted increase option (the “Accordion Option”). As of December 31, 2016, TOCCO had borrowed funds under the agreement aggregating $20.0 million with no additional availability remaining. At December 31, 2016, there was a short-term amount of $1.7 million and a long-term amount of $17.3 million outstanding. At December 31, 2015, there was a short-term amount of $1.3 million and a long-term amount of $18.7 million outstanding. All of the Loans under the ARC Agreement will accrue interest at the lower of (i) a London interbank offered rate (“Eurodollar Rate”) plus a margin of between 2.00% and 2.50% based on the total leverage ratio of TOCCO and its subsidiaries on a consolidated basis, or (ii) a base rate (“Base Rate”) equal to the highest of the federal funds rate plus 0.50%, the rate announced by Bank of America, N.A. as its prime rate, and Eurodollar Rate plus 1.0%, plus a margin of between 1.00% to 1.50% based on the total leverage ratio of TOCCO and its subsidiaries on a consolidated basis. The Revolving Loans accrue a commitment fee on the unused portion thereof at a rate between 0.25% and 0.375% based on the total leverage ratio of TOCCO and its subsidiaries on a consolidated basis. Interest on the Revolving Loans is payable quarterly, with principal due and payable at maturity. Interest on the Acquisition Term Loan is payable quarterly using a ten year commercial style amortization, commencing on December 31, 2014. The Acquisition Term Loan is also payable as to principal beginning on December 31, 2014, and continuing on the last business day of each March, June, September and December thereafter, each payment in an amount equal to $1,750,000, provided that the final installment on the September 30, 2019, maturity date shall be in an amount equal to the then outstanding unpaid principal balance of the Acquisition Term Loan. Interest on the Term Loans is payable quarterly using a fifteen year commercial style amortization, with interest only through December 31, 2015, and quarterly principal payments of $333,333 commenced on March 31, 2016. Interest on the Loans is computed (i) in the case of Base Rate Loans, on the basis of a 365-day or 366-day year, as the case may be, and (ii) in the case of Eurodollar Rate Loans, on the basis of a 360-day year, in each case for the actual number of days elapsed in the period during which it accrues. At December 31, 2016, the variable interest rate under the loans was 3.27%. The Loans may be prepaid in whole or in part without premium or penalty (Eurodollar Rate Loans are prepayable only on the last days of related interest periods or upon payment of any breakage costs) and the lenders’ commitments relative thereto reduced or terminated. Subject to certain exceptions and thresholds, outstanding Loans shall be prepaid by an amount equal to 100% of the net cash proceeds from: (i) all sales, transfers, licenses, lease or other disposition of any property by TOCCO and Guarantors (other than a permitted transfer); (ii) any equity issuance by TOCCO or the Guarantors; (iii) any debt issuance by TOCCO or the Guarantors; or (iv) the receipt of any cash received by TOCCO or the Guarantors not in the ordinary course of business. Amounts prepaid in connection with the mandatory repayments described above will be applied first, to the principal repayment installments of the Acquisition Term Loan in inverse order of maturity, second, to the principal repayment installments of the Term Loans in inverse order of maturity and, third, to the Revolving Loans in the manner set forth in the Amended and Restated Credit Agreement. All amounts owing under the ARC Agreement and all obligations under the guarantees will be secured in favor of the Lenders by substantially all of the assets of TOCCO and its subsidiaries and guaranteed by its subsidiaries. The ARC Agreement contains, among other things, customary covenants, including restrictions on the incurrence of additional indebtedness, the granting of additional liens, the making of investments, the disposition of assets and other fundamental changes, the transactions with affiliates and the declaration of dividends and other restricted payments. The ARC Agreement also includes the following financial covenants, each tested on a quarterly basis for TOCCO and its subsidiaries on a consolidated basis: a maximum total leverage ratio of 3.25 to 1, a minimum fixed charge coverage ratio of 1.25 to 1, and an asset coverage test of greater than 1.1 to 1. The ARC Agreement further includes customary representations and warranties and events of default, and upon occurrence of such events of default the outstanding obligations under the ARC Agreement may be accelerated and become immediately due and payable and the commitment of the Lenders to make loans under the ARC Agreement may be terminated. TOCCO was in compliance with all covenants at December 31, 2016. Principal payments of long-term debt for the next five years and thereafter ending December 31 are as follows: Year Ending December 31, Long-Term Debt (thousands of dollars) 2017 $ 10,417 2018 8,333 2019 65,250 Total $ 84,000 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | NOTE 14 – ACCRUED LIABILITIES Accrued liabilities at December 31 are summarized as follows: 2016 2015 (thousands of dollars) Accrued state taxes $ 81 $ 325 Accrued payroll 1,097 1,293 Accrued interest 33 34 Accrued officers’ compensation - 1,254 Other liabilities 806 1,156 Total $ 2,017 $ 4,062 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 - COMMITMENTS AND CONTINGENCIES Guarantees On October 24, 2010, we executed a limited guarantee in favor of the Saudi Industrial Development Fund (“SIDF”) whereby we agreed to guaranty up to 41% of the SIDF loan to AMAK in the principal amount of 330.0 million Saudi Riyals (US$88.0 million) (the “Loan”). The term of the loan is through June 2019. As a condition of the Loan, SIDF required all shareholders of AMAK to execute personal or corporate guarantees; as a result, the Company’s guarantee is for approximately 135.3 million Saudi Riyals (US$36.1 million). The loan was necessary to continue construction of the AMAK facilities and provide working capital needs. Our current assessment is that the probability of contingent performance is remote based on our analysis of the contingent portion of the guarantee which included but was not limited to the following: (1) the SIDF has historically not called guarantees, (2) the value of the assets exceeds the amount of the loan (3) the other shareholders have indicated that they would prioritize their personal guarantees ahead of the corporate guarantee, and (4) according to Saudi Arabian legal counsel, assets outside of Saudi Arabia are protected from the Saudi Court System. We received no consideration in connection with extending the guarantee and did so to maintain and enhance the value of our investment. Our non-contingent and immediate obligation to stand ready to make payments On July 17, 2016, we, along with some existing shareholders of AMAK, executed a document in favor of the Chairman of AMAK agreeing to provide a stock bonus to him upon successful completion of financial and operational goals. We will contribute 250,000 shares of our AMAK stock and other shareholders will also contribute 250,000 shares for the award upon his success in reaching the goals by the end of 2017. Operating Lease Commitments We have operating leases for the rental of over 340 railcars for shipping purposes with expiration dates through 2026. Invoices are received and paid on a monthly basis. The total amount of the commitment is approximately $21.2 million over the next 10 years. We also have an operating lease for our office space in Sugar Land, TX. The expiration date for this lease is 2018. The total amount of the commitment is approximately $0.1 million. In addition, we are required to make periodic payments for property taxes, utilities and common area operating expenses. In addition, we have operating leases for other equipment such as forklifts and copiers with varying expiration dates through 2020. The total amount of the commitment is approximately $0.1 million. Future minimum property and equipment lease payments under the non-cancelable operating leases at December 31, 2016, are as follows: Year Ending December 31, Long-Term Debt (thousands of dollars) 2017 $ 3,595 2018 3,393 2019 3,341 2020 3,250 2021 3,120 Thereafter 4,675 Total $ 21,374 Rental expense for these operating leases for the years ended December 31, 2016, 2015, and 2014 was $4.2 million, $4.2 million and $2.5 million, respectively. Litigation On March 21, 2011, Mr. El Khalidi filed suit against the Company in Texas alleging breach of contract and other claims. The 88th Judicial District Court of Hardin County, Texas dismissed all claims and counterclaims for want of prosecution in this matter on July 24, 2013. The Ninth Court of Appeals subsequently affirmed the dismissal for want of prosecution and the Supreme Court of Texas denied Mr. El Khalidi’s petition for review. On May 1, 2014, Mr. El Khalidi refiled his lawsuit against the Company for breach of contract and defamation in the 356th Judicial District Court of Hardin County, Texas. The case was transferred to the 88th Judicial District Court of Hardin County, Texas where it is currently pending. On September 1, 2016, the Court dismissed all of Mr. El Khalidi’s claims and causes of action with prejudice. Mr. El Khalidi has filed a notice of appeal. Liabilities of approximately $1.0 million remain recorded, and the options will continue to accrue in accordance with their own terms until all matters are resolved. On April 30, 2015, TC and TREC received notice of a lawsuit filed in the 152nd Judicial District Court of Harris County, Texas. The suit alleges that the plaintiff, an independent contractor employee, was injured while working on a product line at TC. On March 31, 2016, plaintiff agreed to settle all claims against TC and TREC for an insignificant amount. On or about August 3, 2015, SHR received notice of a lawsuit filed in the 14th Judicial District Court of Calcasieu Parish, Louisiana. The suit alleges that the plaintiff became ill from exposure to benzene. SHR placed its insurers on notice. Its insurers retained a law firm based in Louisiana to defend SHR. On or about March 18, 2016, SHR received notice of a lawsuit filed in the 172 nd On or about August 2, 2016, SHR received notice of a lawsuit filed in the 58 th On or about November 5, 2016, SHR received notice of a lawsuit filed in the 172 nd Environmental Remediation Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $622,000 in 2016, $604,000 in 2015 and $414,000 in 2014. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 16 - SHARE-BASED COMPENSATION Share-based compensation of approximately $2.6 million, $2.3 million, and $2.1 million was recognized in 2016, 2015, and 2014, respectively. Restricted Common Stock A summary of all 2016 issuances is as follows: On November 17, 2016, we awarded 25,105 shares of restricted stock to a director at a grant date price of $11.95. The restricted stock award vests over 4 years in 25% increments. Director’s compensation recognized during 2016 was approximately $50,000. On November 17, 2016, we awarded 21,967 shares of restricted stock to a director at a grant date price of $11.95. The restricted stock award vests over 3.5 years in equal increments for three years and one-half increment for the final half year. Director’s compensation recognized during 2016 was approximately $12,500. On May 17, 2016, we awarded approximately 28,090 shares of restricted stock to a director at a grant date price of $10.68. The restricted stock award vests over 4 years in 25% increments. Director’s compensation recognized during 2016 was approximately $50,000. On March 1, 2016, we awarded 134,931 shares of restricted stock to officers at a grant date price of $9.39. One-half of the restricted stock vests ratably over 3 years. The other half vests at the end of the three years based upon the performance metrics of return on invested capital and earnings per share growth. The number of shares actually granted will be adjusted based upon relative performance to our peers. Compensation expense recognized during 2016 was approximately $352,000. On January 29, 2016, we awarded 35,333 shares of restricted stock to a director at a grant date price of $10.52. The restricted stock award vests over 5 years in 20% increments with the first tranche issued on January 29, 2016. Director’s compensation recognized in 2016 was approximately $142,000. A summary of the status of the Company’s restricted stock activity in 2016 is as follows: Shares of Restricted Stock Weighted Average Grant Date Price per Share Outstanding at January 1, 2016 148,040 $ 14.14 Granted 245,426 10.19 Vested (42,575 ) 13.60 Outstanding at December 31, 2016 350,891 $ 11.44 Expected to vest 329,690 As of December 31, 2016, there was approximately $2.8 million of unrecognized compensation costs related to non-vested restricted share-based compensation that is expected to be recognized over a weighted average period of 2.6 years. A summary of all 2015 issuances is as follows: On May 20, 2015, we awarded 30,000 shares of restricted stock to a director at a grant date price of $12.39. The restricted stock award vests over 5 years in 20% increments with the first tranche issued on May 19, 2016. Compensation expense recognized during 2016 and 2015 was approximately $58,000 and $43,000, respectively. On April 14, 2015, we awarded 1,000 shares of restricted stock to two of our 30 year employees at a grant date price of $12.03. The restricted stock award was fully vested. Compensation expense recognized during 2015 was approximately $12,000. On February 12, 2015, we awarded 18,000 shares of fully vested restricted stock to various employees at a grant date price of $14.34. Compensation expense recognized during 2015 was approximately $258,000. On February 10, 2015, we awarded 118,040 shares of restricted stock to our officers at a grant date price of $14.59. The restricted stock award vests over 4 years in 25% increments with the first tranche issued on February 9, 2016. Compensation expense recognized during 2016 and 2015 was approximately $431,000 and $395,000, respectively. A summary of all 2014 issuances is as follows: In October 2014 we issued 7,000 shares of restricted common stock to the President of TC. Compensation expense of $79,310 was recognized in connection with this issuance. Stock Options and Warrant Awards On April 3, 2012, the Board of Directors of the Company adopted the Trecora Resources Stock and Incentive Plan (the “Plan”) subject to the approval of Company’s shareholders. Shareholders approved the Plan at the 2012 Annual Meeting of Shareholders on June 6, 2012. We filed Form S-8 to register the 1,500,000 shares allocated to the Plan on May 8, 2013. On April 7, 2008, the Board of Directors of the Company adopted the Stock Option Plan for Key Employees, as well as, the Non-Employee Director Stock Option Plan (hereinafter collectively referred to as the “Stock Option Plans”), subject to the approval of Company’s shareholders. Shareholders approved the Stock Option Plans at the 2008 Annual Meeting of Shareholders on July 10, 2008. We filed Form S-8 to register the 1,000,000 shares allocated to the Stock Option Plans on October 23, 2008. Compensation expense recognized in connection with the following issuances was approximately $1,456,000, $1,645,000, and $2,063,000 for the years ended December 31, 2016, 2015, and 2014, respectively. There were no stock options or warrant awards issued during 2016 or 2015. A summary of all 2014 issuances is as follows: On February 21, 2014, we awarded 10 year options to various employees for 500,000 shares. These options have an exercise price equal to the closing price of the stock on February 21, 2014, which was $12.26 and vest in 25% increments over a 4 year period. Compensation expense recognized during 2016, 2015, and 2014 was approximately $1,108,000, $1,108,000 and $955,000, respectively. The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: Expected volatility 84% Expected dividends None Expected term (in years) 6.25 Risk free interest rate 1.95% A summary of all 2013 issuances is as follows: On May 29, 2013, we awarded 10 year options to Simon Upfill-Brown for 90,000 shares. These options have an exercise price equal to the closing price of the stock on May 29, 2013, which was $7.71 and vest in 25% increments over a 4 year period. Compensation expense recognized during 2016, 2015 and 2014 in connection with this award was approximately $126,000 each year. The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: Expected volatility 85% Expected dividends None Expected term (in years) 6.25 Risk free interest rate 1.33% On February 1, 2013, we issued a warrant for the purchase of 100,000 shares of common stock to Genesis Select Corporation (“Genesis”) at a strike price of $10.00 per share. The term of the warrant is 5 years with 50% vesting in equal increments of 1/12 th th A summary of all 2012 issuances is as follows: On November 15, 2012, we awarded 10 year options to Director Gary Adams for 100,000 shares. These options have an exercise price equal to the closing price of the stock on November 15, 2012, which was $7.14 and vest in 20% increments over a 5 year period. Compensation expense recognized during 2016, 2015, and 2014 in connection with this award was approximately $120,000 each year. The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: Expected volatility 87% Expected dividends None Expected term (in years) 6.5 Risk free interest rate 0.92% A summary of all 2011 issuances is as follows: On May 20, 2011, we awarded 10 year options to Director Joseph Palm for 19,333 shares with the intent to increase the aggregate grant to 100,000 shares as they become available. The initial grant of 19,333 options has an exercise price equal to the closing price of the stock on May 20, 2011, which was $3.90 and vest after 1 year. Compensation expense recognized during 2016, 2015, and 2014 in connection with this award was approximately $0. On September 25, 2011, we awarded 10 year options to Director Joseph Palm for 80,000 shares with an exercise price equal to the closing price of the stock on September 23, 2011, (the latest closing date available) which was $3.52. These options vest over 4.67 years with the first 20,000 vesting on May 19, 2013, and subsequent 20,000 share lots vesting each anniversary of that date subsequent until entirely vested. Compensation expense recognized for 2016, 2015 and 2014 was approximately $27,000, $65,000, and $65,000, respectively. On May 2, 2011, we awarded 10 year options to Director John Townsend for 100,000 shares. These options have an exercise price equal to the closing price of the stock on May 2, 2011, which was $4.09 and vest in 20% increments over a 5 year period. Compensation expense recognized during 2016, 2015, and 2014 in connection with this award was approximately $27,000, $80,000 and $80,000, respectively. On January 12, 2011, we awarded 10 year options to key employees for 391,000 shares. These options have an exercise price equal to the closing price of the stock on January 12, 2011, which was $4.86 and vest in 25% increments over a 4 year period. Compensation expense recognized during 2016, 2015, and 2014 in connection with this award was approximately $0, $40,000 and $475,000, respectively. The fair value of the 2011 options granted was calculated using the Black-Scholes option valuation model with the following range of assumptions: Expected volatility 96% to 413% Expected dividends None Expected term (in years) 5-10 Risk free interest rate 1.26% to 3.34% A summary of all 2010 issuances is as follows: In February 2010 we awarded 500,000 options to non-employee directors for their service during 2010 subject to attendance and service requirements. These options vest over a 5 year period. The exercise price of these options is $2.82 based upon the closing price on February 23, 2010. Directors’ fee expense recognized during 2016, 2015 and 2014 in connection with this award was approximately $0, $9,000 and $66,000, respectively. The fair value of the 2010 options granted was calculated using the Black-Scholes option valuation model with the following range of assumptions: Expected volatility 338% to 467% Expected dividends None Expected term (in years) 5-10 Risk free interest rate 2.37% to 3.68% A summary of unvested 2009 issuances is as follows: On July 2009 we awarded two stock options to Mr. Hatem El Khalidi and his wife, Ingrid El Khalidi, tied to the performance of AMAK as follows: (1) an option to purchase 200,000 shares of the Company’s common stock with an exercise price of $3.40 per share, equal to the closing sale price of such a share as reported on the public marketon July 2, 2009, provided that said option may not be exercised until such time as the first shipment of ore from the Al Masane mining project is transported for commercial sale by AMAK, and further that said option shall terminate and be immediately forfeited if not exercised on or before June 30, 2012; and (2) an option to purchase 200,000 shares of the Company’s common stock with an exercise price equal to the closing sale price of such a share as reported on the Nasdaq Stock Market on July 2, 2009, provided that said option may not be exercised until such time as the Company receives its first cash dividend distribution from AMAK, and further that said option shall terminate and be immediately forfeited if not exercised on or before June 30, 2019. Compensation expense of approximately $49,000, $97,000 and $97,000 was recognized during the years ended December 31, 2016, 2015, and 2014, respectively, related to the options awarded to Mr. El Khalidi. Approximately $413,000 was reversed during 2012 due to the performance condition associated with 200,000 shares in options not being met as required by the terms of the award by June 30, 2012. Previously, on May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited all options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders. As discussed in Note 15 we are currently in litigation with Mr. El Khalidi and in connection therewith, we are currently reviewing our legal right to withdraw the options and benefits. However, as of December 31, 2016, the options vesting upon a cash dividend distribution from AMAK continue to be shown as outstanding. A summary of the status of the Company’s stock option and warrant awards is presented below: Stock Options and Warrants Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Intrinsic Value (in thousands) Outstanding at December 31, 2015 1,376,437 $ 7.68 Granted - - Expired - - Exercised (28,000 ) 2.39 Forfeited - - Outstanding at December 31, 2016 1,348,437 $ 7.79 5.2 $ 8,172 Expected to vest 292,500 $ 11.56 7.0 $ 670 Exercisable at December 31, 2016 855,937 $ 7.53 5.2 $ 5,410 The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. At December 31, 2016, options and warrants to purchase approximately 1.3 million shares of common stock were in-the-money. The weighted average grant-date fair value per share of options granted during the years 2016, 2015, and 2014 was $0, $0 and $12.26, respectively. During 2016, 2015 and 2014 the aggregate intrinsic value of options exercised was approximately $237,000, $2,300,000 and $1,600,000 respectively, determined as of the date of option exercise. The Company received approximately $11,000, $123,000 and $91,000 in cash from the exercise of options during 2016, 2015 and 2014, respectively. Some of the options were exercised via a net transaction. The tax benefit realized from the exercise was insignificant. A summary of the status of the Company’s non-vested options that are expected to vest is presented below: Shares Weighted Average Grant-Date Fair Value Per Share Non-vested at January 1, 2016 700,000 $ 8.66 Granted - - Forfeited - - Vested (207,500 ) 9.64 Non-vested at December 31, 2016 492,500 $ 8.25 Total fair value of options that vested during 2016 was approximately $874,000. As of December 31, 2016, there was approximately $1.4 million of unrecognized compensation costs related to non-vested share-based compensation that is expected to be recognized over a weighted average period of 1.1 years. The Company expects to issue shares upon exercise of options and warrants from its treasury stock and authorized but unissued common stock. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 17 – INCOME TAXES The provision for income taxes consisted of the following: Year ended December 31, 2016 2015 2014 (thousands of dollars) Current federal provision $ 1,691 $ 4,062 $ 8,756 Current state provision 18 285 296 Deferred federal provision (benefit) 8,645 5,367 (1,893 ) Deferred state provision (benefit) 150 50 (12 ) Income tax expense $ 10,504 $ 9,764 $ 7,147 The difference between the effective tax rate in income tax expense and the Federal statutory rate of 35% for the years ended December 31, 2016, 2015, and 2014, is as follows: 2016 2015 2014 (thousands of dollars) Income taxes at U.S. statutory rate $ 10,476 $ 9,927 $ 7,952 State taxes, net of federal benefit 285 230 181 Permanent and other items (257 ) (393 ) (915 ) Increase (decrease) in valuation allowance - - (71 ) Total tax expense $ 10,504 $ 9,764 $ 7,147 The Texas margin tax rate was reduced in a legislative reduction effective January 1, 2015. Permanent differences are primarily due to the Federal manufacturer’s deduction, research and development credit, and stock options. Tax effects of temporary differences that give rise to significant portions of federal and state deferred tax assets and deferred tax liabilities were as follows: December 31, 2016 2015 (thousands of dollars) Deferred tax liabilities: Plant, pipeline and equipment $ (22,598 ) $ (14,996 ) Intangible assets (786 ) (284 ) Other assets (10 ) (14 ) Investment in AMAK (3,109 ) ( 2,522 ) Total deferred tax liabilities $ (26,503 ) $ (17,816 ) Deferred tax assets: Accounts receivable 322 283 Inventory 1,283 1,785 Mineral interests 376 376 Unrealized loss on swap agreements 20 62 Post-retirement benefits 423 330 Stock-based compensation 1,372 969 Intangible assets - - Deferred revenue - - Gross deferred tax assets 3,796 3,805 Valuation allowance (376 ) (376 ) Total net deferred tax assets $ 3,420 $ 3,429 Net deferred tax liabilities $ (23,083 ) $ (14,387 ) The current and non-current classifications of the deferred tax balances are as follows: 2016 2015 (thousands of dollars) Current: Deferred tax asset $ 1,615 $ 2,116 Non-current: Deferred tax assets 6,124 4,637 Deferred tax liability (30,446 ) (20,764 ) Valuation allowance (376 ) (376 ) Non-current deferred tax liability, net (24,698 ) (16,503 ) Total deferred liabilities, net $ (23,083 ) $ (14,387 ) We have provided a valuation allowance in 2016 and 2015 against certain deferred tax assets because of uncertainties regarding their realization. We had no Saudi Arabian income tax expense or liability in 2016, 2015, or 2014. We file an income tax return in the U.S. federal jurisdiction and a margin tax return in Texas. We received notification from the Internal Revenue Service (“IRS”) in November 2016 on the selection of the December 31, 2014, tax return for audit. The audit is ongoing, and we do not expect any adjustment to the return. If any issues addressed in the audit are resolved in a manner not consistent with our expectations, provisions will be adjusted in the period the resolution occurs. Tax returns for various jurisdictions remain open for examination for the years 2013 through 2016. During 2016 we performed analysis, documentation, and interview of relevant personnel relative to base period and qualifying expenditures with regard to potential research and development (“R&D”) credits for the years ending December 31, 2014 and 2015. We expect to file amended returns for the respective years generating net benefits of federal and state taxes of approximately $524,000, which have been recorded in this period decreasing the overall tax rate. The calculation is inherently complex and many factors influence the ultimate credit. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 18 – SEGMENT INFORMATION In October 2014 we began operating in two business segments; petrochemical and specialty waxes. We operate through business segments according to the nature and economic characteristics of our products as well as the manner in which the information is used internally by our key decision maker, who is our Chief Executive Officer. The accounting policies of the reporting segments are the same as those described in Note 2. Our petrochemical segment includes SHR and GSPL. Our specialty wax segment includes TC. We also separately identify our corporate overhead and investing which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Year Ended December 31, 2016 Petrochemical Specialty Wax Corporate Consolidated (in thousands) Net revenues $ 182,028 $ 30,371 $ - $ 212,399 Operating profit before depreciation and amortization 31,885 3,043 (6,444 ) 28,484 Operating profit (loss) 26,060 (865 ) (6,488 ) 18,707 Profit (loss) before taxes 24,084 10,675 (4,827 ) 29,932 Depreciation and amortization 5,825 3,908 44 9,777 Capital expenditures 22,948 17,547 - 40,495 Year Ended December 31, 2016 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Goodwill and intangible assets, net $ - $ 44,467 $ - $ - $ 44,467 Total assets 219,376 113,676 107,302 (148,255 ) 292,099 Year Ended December 31, 2015 Petrochemical Specialty Wax Corporate Consolidated (in thousands) Net revenues $ 218,233 $ 23,743 $ - $ 241,976 Operating profit before depreciation and amortization 47,565 4,549 (7,013 ) 45,101 Operating profit (loss) 43,081 (1 ) (7,039 ) 36,041 Profit (loss) before taxes 40,948 (195 ) (12,392 ) 28,362 Depreciation and amortization 4,484 4,550 26 9,060 Capital expenditures 24,358 6,889 - 31,247 Year Ended December 31, 2015 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Goodwill and intangible assets, net $ - $ 46,347 $ - $ - $ 46,347 Total assets 195,358 86,076 98,728 (122,371 ) 257,791 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2016 | |
NET INCOME PER COMMON SHARE [Abstract] | |
NET INCOME PER COMMON SHARE | NOTE 19 - NET INCOME PER COMMON SHARE Year ended December 31, 2016 2015 2014 (thousands of dollars) Net income $ 19,428 $ 18,598 $ 15,571 Basic earnings per common share: Weighted average shares outstanding 24,284 24,370 24,188 Per share amount (dollars) $ 0.80 $ 0.76 $ 0.64 Diluted earnings per common share: Weighted average shares outstanding 24,982 25,181 24,896 Per share amount (dollars) $ 0.78 $ 0.74 $ 0.63 Weighted average shares-denominator basic computation 24,284 24,370 24,188 Unvested restricted stock grant 310 141 - Effect of dilutive stock options 388 670 708 Weighted average shares, as adjusted denominator diluted computation 24,982 25,181 24,896 At December 31, 2016, 2015, and 2014, 1,348,437, 1,376,437 and 1,598,191 potential common stock shares, respectively, were issuable upon the exercise of options and warrants. The earnings per share calculations for the periods ended December 31, 2016, 2015, and 2014, include 284,011, 300,000 and 300,000 shares held in the treasury. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | NOTE 20 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The quarterly results of operations shown below are derived from unaudited financial statements for the eight quarters ended December 31, 2016 (in thousands, except per share data, rounding may apply): Year Ended December 31, 2016 First Quarter Second Quarter(2) Third Quarter(3) Fourth Quarter Total Revenues $ 52,200 $ 48,854 $ 57,142 $ 54,203 $ 212,399 Gross profit 11,771 11,574 8,905 7,652 39,902 Net income 7,224 10,252 2,799 (847 ) 19,428 Basic EPS(1) $ 0.30 $ 0.42 $ 0.12 $ (0.03 ) $ 0.80 Diluted EPS(1) $ 0.29 $ 0.41 $ 0.11 $ (0.03 ) $ 0.78 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 55,143 $ 59,350 $ 66,938 $ 60,545 $ 241,976 Gross profit 15,123 14,594 16,035 11,257 57,009 Net income 5,784 6,374 5,318 1,122 18,598 Basic EPS(1) $ 0.24 $ 0.26 $ 0.21 $ 0.05 $ 0.76 Diluted EPS(1) $ 0.23 $ 0.25 $ 0.21 $ 0.05 $ 0.74 (1) Basic and diluted earnings per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. (2) On May 2, 2016, we purchased the idle BASF facility adjacent to our TC facility. As discussed in Note 2, we recorded a bargain purchase gain of approximately $11.5 million on the transaction. (3) As discussed in Note 11, in July 2016 AMAK issued four million shares. As a result of the equity issuance, our share of the net assets of AMAK increased approximately $3.2 million which we recognized as a gain. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 21 – RELATED PARTY TRANSACTIONS Consulting fees of approximately $33,000, $25,000 and $52,000 were incurred during 2016, 2015, and 2014, respectively from IHS Global FZ LLC of which Company Director Gary K. Adams holds the position of Chief Advisor – Chemicals. At December 31, 2016, and 2015, we had no outstanding liability payable to IHS Global FZ LLC. Consulting fees of approximately $73,000 and $37,000 were incurred during 2016 and 2015, respectively, from Chairman of the Board, Nicholas Carter. Due to his history and experience with the Company and to provide continuity after his retirement, a three year consulting agreement was entered into with Mr. Carter in July 2015. At December 31, 2016, and 2015, we had no outstanding liability payable to Mr. Carter. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE 22 – DERIVATIVE INSTRUMENTS Commodity Financial Instruments Hydrocarbon based manufacturers, such as SHR, are significantly impacted by changes in feedstock and natural gas prices. Not considering derivative transactions, feedstock and natural gas used for the years ended December 31, 2016, 2015, and 2014, represented approximately 62.2%, 69.3% and 78.0% of SHR’s operating expenses, respectively. On February 26, 2009, the Board of Directors rescinded its original commodity trading resolution from 1992 and replaced it with a new resolution. The 2009 resolution allows the Company to establish a commodity futures account for the purpose of maximizing our resources and reducing risk as pertaining to our purchases of natural gas and feedstock for operational purposes by employing a four step process. This process, in summary, includes, (1) education of employees who are responsible for carrying out the policy, (2) adoption of a derivatives policy by the Board explaining the objectives for use of derivatives including accepted risk limits, (3) implementation of a comprehensive derivative strategy designed to clarify the specific circumstances under which we will use derivatives, and (4) establishment and maintenance of a set of internal controls to ensure that all of the derivatives transactions taking place are authorized and in accord with the policies and strategies that have been enacted. On August 31, 2009, the Company adopted a formal risk management policy which incorporates the above process, as well as, established a “hedge committee” for derivative oversight. We endeavor to acquire feedstock and natural gas at the lowest possible cost. The primary feedstock (natural gasoline) is traded over the counter and not on organized futures exchanges. Financially settled instruments (fixed price swaps) are the principal vehicle used to give some predictability to feed prices. We do not purchase or hold any derivative financial instruments for trading purposes. The following tables detail (in thousands) the impact the feedstock and natural gas instruments had on the financial statements: December 31, 2016 2015 2014 Realized gain (loss) $ - $ (180 ) $ (452 ) Unrealized gain (loss) - 180 (132 ) Net loss $ - $ - $ (584 ) Realized and unrealized gains / (losses) are recorded in Cost of Petrochemical Product Sales and Processing for the years ended December 31, 2016, 2015, and 2014. Interest Rate Swaps On March 21, 2008, SHR entered into a pay-fixed, receive-variable interest rate swap agreement with Bank of America related to the $10.0 million (later increased to $14 million) term loan secured by plant, pipeline and equipment. The effective date of the interest rate swap agreement was August 15, 2008, and terminates on December 15, 2017. The notional amount of the interest rate swap was $1.75 million at December 31, 2016. We receive credit for payments of variable rate interest made on the term loan at the loan’s variable rates, which are based upon the London InterBank Offered Rate (LIBOR), and pay Bank of America an interest rate of 5.83% less the credit on the interest rate swap. We originally designated the transaction as a cash flow hedge according to ASC Topic 815, Derivatives and Hedging. Beginning on August 15, 2008, the derivative instrument was reported at fair value with any changes in fair value reported within other comprehensive income (loss) in the Company’s Statement of Stockholders’ Equity. We entered into the interest rate swap to minimize the effect of changes in the LIBOR rate. The following tables detail (in thousands) the impact the agreement had on the financial statements: December 31, 2016 2015 2014 Interest expense reclassified from other comprehensive income (loss) $ - $ - $ 378 December 31, 2016 2015 Fair value of derivative liability $ 58 $ 177 Due to the new debt agreements associated with the Acquisition, we believe that the hedge is no longer entirely effective. Due to the time required to make the determination and the immateriality of the hedge, we began treating the interest rate swap as ineffective as of October 1, 2014, and the unrealized loss associated with the swap of approximately $378,000 was recognized in the Statement of Income. |
POST RETIREMENT OBLIGATIONS
POST RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2016 | |
POST-RETIREMENT OBLIGATIONS [Abstract] | |
POST-RETIREMENT OBLIGATIONS | NOTE 23- POST-RETIREMENT OBLIGATIONS In January 2008 an amended retirement agreement, replacing the February 2007 agreement, was entered into with Hatem El Khalidi. The amended agreement provided $6,000 per month in benefits to Mr. El Khalidi upon his retirement for the remainder of his life. Additionally, upon his death $4,000 per month would be paid to his surviving spouse for the remainder of her life. A health insurance benefit was also to be provided. An additional $382,000 was accrued in January 2008 for the increase in benefits. A liability of approximately $918,000 based upon an annuity single premium value contract was outstanding at December 31, 2016, and was included in post-retirement benefits. Mr. El Khalidi retired effective June 30, 2009. As of December 31, 2016, no payments have been made pursuant to this agreement. In June 2009 the Company’s Board of Directors awarded Mr. El Khalidi a retirement bonus in the amount of $31,500 for 42 years of service. While there is no written policy regarding retirement bonus compensation, the Company has historically awarded all employees (regardless of job position) a retirement bonus equal to $750 for each year of service. Since Mr. El Khalidi was employed by the Company for 42 years, the Board of Directors voted to award him a $31,500 retirement bonus, consistent with that provided to all other retired employees. This amount was outstanding at December 31, 2016, and was included in post-retirement benefits. On May 9, 2010, the Board of Directors terminated the retirement agreement, options, retirement bonus, and any outstanding directors’ fees due to Mr. El Khalidi; however, due to the litigation discussed in Note 15, all amounts remain outstanding until a resolution is achieved. In July 2015 we entered into a retirement agreement with former CEO, Nicholas Carter which provides continued welfare benefits for Mr. Carter and his wife for life at the same cost sharing basis as regular employees. Approximately $265,000 was outstanding at December 31, 2016, and included in post-retirement benefits. For the period ended December 31, 2016, and 2015, approximately $12,000 and $6,000, respectively had been paid. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Three years ended December 31, 2016 Description Beginning balance Charged (credited) to earnings Deductions Ending balance ALLOWANCE FOR DEFERRED TAX ASSET December 31, 2014 446,919 (122,500 ) 51,618 376,037 December 31, 2015 376,037 - - 376,037 December 31, 2016 376,037 - - 376,037 Description Beginning balance Charged to earnings Deductions Ending balance ALLOWANCE FOR DOUBTFUL ACCOUNTS December 31, 2014 210,000 - - 210,000 December 31, 2015 210,000 - - 210,000 December 31, 2016 210,000 183,339 (93,339 ) 300,000 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments |
Inventories | Inventories |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts |
Notes Receivable | Notes Receivable |
Plant, Pipeline and Equipment | Plant, Pipeline and Equipment Interest costs incurred to finance expenditures during construction phase are capitalized as part of the historical cost of constructing the assets. Construction commences with the development of the design and ends when the assets are ready for use. Capitalized interest costs are included in plant, pipeline and equipment and are depreciated over the service life of the related assets. Platinum catalyst is included in plant, pipeline and equipment at cost. Amortization of the catalyst is based upon cost less estimated salvage value of the catalyst using the straight line method over the estimated useful life (see Note 9). |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Definite-lived intangible assets consist of customer relationships, licenses, permits and developed technology that were acquired as part of the Acquisition. The majority of these assets are being amortized using discounted estimated future cash flows over the term of the related agreements. Intangible assets associated with customer relationships are being amortized using the discounted estimated future cash flows method based upon assumed rates of annual customer attrition. We continually evaluate the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they will be removed from the consolidated balance sheets. |
Business Combinations and Related Business Acquisition Costs | Business Combinations and Related Business Acquisition Costs Business acquisition costs are expensed as incurred and are reported as general and administrative expenses in the consolidated statements of income. We define these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional consulting fees, as well as, travel associated with the evaluation and effort to acquire specific businesses. |
Investment in AMAK | Investment in AMAK We assess our investment in AMAK for impairment when events are identified, or there are changes in circumstances that may have an adverse effect on the fair value of the investment. We consider recoverable ore reserves and the amount and timing of the cash flows to be generated by the production of those reserves, as well as, recent equity transactions within AMAK. |
Other Assets | Other Assets |
Long-Lived Assets Impairment | Long-Lived Assets Impairment The amount of the impairment loss to be recorded is calculated by the excess of the asset's carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis although other factors including the state of the economy are considered. |
Revenue Recognition | Revenue Recognition – Revenues received in advance of future sales of products or prior to the performance of services are presented as deferred revenues. |
Shipping and Handling Costs | Shipping and Handling Costs - |
Retirement Plan | Retirement Plan |
Environmental Liabilities | Environmental Liabilities |
Other Liabilities | Other Liabilities |
Net Income Per Share | Net Income Per Share |
Foreign Currency | Foreign Currency |
Management Estimates | Management Estimates |
Share-Based Compensation | Share-Based Compensation |
Guarantees | Guarantees – a) We have a non-contingent and immediate obligation to stand ready to make payments if certain future triggering events occur. For certain guarantees, a liability is recognized for the stand ready obligation at the inception of the guarantee; and b) We have an obligation to make future payments if those certain future triggering events do occur. A liability for the payment under the guarantee is recognized when 1) it becomes probable that one or more future events will occur, triggering the requirement to make payments under the guarantee and 2) when the payment can be reasonably estimated. |
Derivatives | Derivatives |
Income Taxes | Income Taxes Our estimate of the potential outcome of any uncertain tax issues is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. We use a more likely than not threshold for financial statement recognition and measurement of tax position taken or expected to be taken in a tax return. To the extent that our assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. We report tax-related interest and penalties as a component of income tax expense. We recognized no adjustment for unrecognized income tax benefits. As of December 31, 2016, and 2015, no interest or penalties related to uncertain tax positions had been accrued. |
Subsequent Events | Subsequent Events March 16, 2017 |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers . Revenue Recognition Revenue from Contracts with Customers efore annual periods beginning after December 15, 2016. In April 2015 the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015 the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In February 2016 the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. Upon adoption, the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. In March 2016 the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which will reduce complexity in accounting standards related to share-based payment transactions, including, among others, (1) accounting for income taxes, (2) classification of excess tax benefits on the statement of cash flow, (3) forfeitures, and (4) statutory tax withholding requirements. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. In January 2017 the FASB issued ASU No. 2017-03 Accounting Changes and Error Corrections Topic 250) and Investments —Equity Method and Joint Ventures (Topic 323) . Financial Instruments - Credit Losses, Leases, Revenue from Contracts with Customers, In January 2017 the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. |
ACQUISITION OF B PLANT (Tables)
ACQUISITION OF B PLANT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACQUISITION OF B PLANT [Abstract] | |
Schedule of Bargain of Purchase Gain | We recorded an $11.5 million bargain purchase gain on the transaction as calculated in the table below (in thousands). Cash paid $ 2,011 Estimated earnout liability 733 Purchase Price $ 2,744 Fixed assets at FMV Land 980 Site improvements 30 Buildings 1,350 Production equipment 11,933 14,293 Bargain purchase gain $ 11,549 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following items are measured at fair value on a recurring basis at December 31, 2016 and 2015: Fair Value Measurements Using December 31, 2016 Total Level 1 Level 2 Level 3 (thousands of dollars) Liabilities: Interest rate swap $ 58 $ - $ 58 $ - Fair Value Measurements Using December 31, 2015 Total Level 1 Level 2 Level 3 (thousands of dollars) Liabilities: Interest rate swap $ 177 $ - $ 177 $ - |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
TRADE RECEIVABLES [Abstract] | |
Trade Receivables | Trade receivables, net, at December 31, 2016, and 2015, respectively, consisted of the following: 2016 2015 (thousands of dollars) Trade receivables $ 22,493 $ 19,684 Less allowance for doubtful accounts (300 ) (210 ) Trade receivables, net $ 22,193 $ 19,474 |
PREPAID EXPENSES AND OTHER AS38
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PREPAID EXPENSES AND OTHER ASSETS [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets at December 31 are summarized as follows: 2016 2015 (thousands of dollars) Prepaid license $ 1,919 $ - Prepaid catalyst 187 455 Prepaid insurance 797 1,182 Other prepaid expenses and assets 608 755 Total $ 3,511 $ 2,392 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INVENTORIES [Abstract] | |
Inventory | Inventories include the following at December 31: 2016 2015 (thousands of dollars) Raw material $ 3,627 $ 2,905 Work in process 12 56 Finished products 14,232 12,843 Total inventory $ 17,871 $ 15,804 |
PLANT, PIPELINE AND EQUIPMENT (
PLANT, PIPELINE AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PLANT, PIPELINE AND EQUIPMENT [Abstract] | |
Plant, Pipeline and Equipment | Plant, pipeline and equipment include the following at December 31: 2016 2015 (thousands of dollars) Platinum catalyst $ 1,612 $ 1,612 Land 5,376 4,577 Plant, pipeline and equipment 154,107 128,302 Construction in progress 33,391 8,980 Total plant, pipeline and equipment 194,486 143,471 Less accumulated depreciation (54,477 ) (46,564 ) Net plant, pipeline and equipment $ 140,009 $ 96,907 |
GOODWILL AND INTANGIBLE ASSET41
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
Summary of Intangible Assets by Major Class | The following table summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): December 31, 2016 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (2,527 ) $ 14,325 Non-compete agreements 94 (43 ) 51 Licenses and permits 1,471 (285 ) 1,186 Developed technology 6,131 (1,379 ) 4,752 24,548 (4,234 ) 20,314 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (4,234 ) $ 22,669 December 31, 2015 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (1,404 ) $ 15,448 Non-compete agreements 94 (24 ) 70 Licenses and permits 1,471 (160 ) 1,311 Developed technology 6,131 (766 ) 5,365 24,548 (2,354 ) 22,194 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (2,354 ) $ 24,549 |
Estimated Amortization Expenses for Succeeding Five Fiscal Years | Based on identified intangible assets that are subject to amortization as of December 31, 2016, we expect future amortization expenses for each period to be as follows (in thousands): 2017 2018 2019 2020 2021 Thereafter Customer relationships $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 8,710 Non-compete agreements 19 19 13 - - - Licenses and permits 106 106 106 106 106 656 Developed technology 613 613 613 613 613 1,687 Total future amortization expense $ 1,861 $ 1,861 $ 1,855 $ 1,842 $ 1,842 $ 11,053 |
INVESTMENT IN AL MASANE AL KO42
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract] | |
Summarized Results of Operation and Financial Position for AMAK | The summarized results of operation and financial position for AMAK are as follows: Results of Operations Years Ended December 31, 2016 2015 2014 (Thousands of Dollars) Sales $ 9,921 $ 50,744 $ 63,300 Gross profit (loss) (17,211 ) (10,437 ) 3,624 General, administrative and other expenses 9,690 8,796 10,487 Loss from operations $ (26,901 ) $ (19,233 ) $ (6,863 ) Gain on settlement with former operator 17,425 - - Net loss $ (9,476 ) $ (19,233 ) $ (6,863 ) Depreciation and amortization for the years ended December 31, 2016, 2015, and 2014 was $11.7 million, $23.2 million and $23.7 million, respectively. Therefore, net income before depreciation and amortization was as follows: Years Ended December 31, 2016 2015 2014 (Thousands of Dollars) Net income before depreciation and amortization $ 2,196 $ 4,016 $ 16,845 Financial Position December 31, 2016 2015 (Thousands of Dollars) Current assets $ 22,860 $ 26,078 Noncurrent assets 251,741 255,613 Total assets $ 274,601 $ 281,691 Current liabilities $ 8,005 $ 22,740 Long term liabilities 82,546 85,450 Shareholders' equity 184,050 173,501 Total liabilities and equity $ 274,601 $ 281,691 |
Equity in Income or Loss of AMAK Reflected on Consolidated Statements of Operation | The equity in the income or loss of AMAK reflected on the consolidated statements of income for the years ended December 31, 2016, 2015, and 2014, is comprised of the following: 2016 2015 2014 AMAK Net Loss $ (9,476 ) $ (19,233 ) $ (6,863 ) Zakat tax applicable to Saudi Arabian shareholders only 320 303 - AMAK Net Loss before Saudi Arabian shareholders’ portion of Zakat $ (9,156 ) $ (18,930 ) $ (6,863 ) Company’s share of loss reported by AMAK (33.44% beginning July 10, 2016 and 35.25% prior to July 10, 2016) $ (2,826 ) $ (6,672 ) $ (2,419 ) Amortization of difference between Company’s investment in AMAK and Company’s share of net assets of AMAK 1,347 1,347 1,347 Equity in loss of AMAK $ (1,479 ) $ (5,325 ) $ (1,072 ) |
Shareholders and Percentages Owned | The following table shows AMAK shareholders and percentages owned at December 31, 2016: Name Percentage Owned Various Saudi shareholders 46.73 % Trecora Resources 33.44 % Armico 19.51 % Treasury 0.32 % Total 100.00 % |
LONG-TERM DEBT AND LONG-TERM 43
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS [Abstract] | |
Long-term Debt and Long-term Obligations | Long-term debt and long-term obligations at December 31 are summarized as follows: 2016 2015 (thousands of dollars) Revolving note to domestic banks (A) $ 9,000 $ 1,000 Term note to domestic banks (B) 56,000 61,250 Term note to domestic banks (C) 19,000 20,000 Loan fees (748 ) (1,020 ) Total long-term debt 83,252 81,230 Less current portion including loan fees 10,145 8,061 Total long-term debt, less current portion including loan fees $ 73,107 $ 73,169 (A) On October 1, 2014, TOCCO, SHR, GSPL and TC (SHR, GSPL and TC collectively the “Guarantors”) entered into an Amended and Restated Credit Agreement (“ARC Agreement”) with the lenders which from time to time are parties to the ARC Agreement (collectively, the “Lenders”) and Bank of America, N.A., a national banking association, as Administrative Agent for the Lenders, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Lead Arranger. Subject to the terms and conditions of the ARC Agreement, TOCCO may (a) borrow, repay and re-borrow revolving loans (collectively, the “Revolving Loans”) from time to time during the period ending September 30, 2019, up to but not exceeding at any one time outstanding $40.0 million (the “Revolving Loan Commitment”) and (b) request up to $5.0 million of letters of credit and $5.0 million of swingline loans. Each of the issuance of letters of credit and the advance of swingline loans shall be considered usage of the Revolving Loan Commitment. All outstanding loans under the Revolving Loans must be repaid on October 1, 2019. As of December 31, 2016, and 2015, TOCCO had long-term outstanding borrowings under the Revolving Loans of $9.0 million and $1.0 million, respectively. At December 31, 2016, approximately $31.0 million was available to be drawn. However, in order to maintain compliance with our covenants, we could have only drawn approximately $29.5 million. (B) Under the ARC Agreement, TOCCO also borrowed $70.0 million in a single advance term loan (the “Acquisition Term Loan”) to partially finance the Acquisition. At December 31, 2016, there was a short-term amount of $8.8 million and a long-term amount of $47.3 million outstanding. At December 31, 2015, there was a short-term amount of $7.0 million and a long-term amount of $54.3 million outstanding. (C) Under the ARC Agreement, TOCCO also has the right to borrow $25.0 million in a multiple advance loan (the “Term Loans,” together with the Revolving Loans and Acquisition Term Loan, collectively the “Loans”). Borrowing availability under the Term Loans ended on December 31, 2015. The Term Loans convert from a multiple advance loan to a “mini-perm” loan once TOCCO has fulfilled certain obligations such as certification that construction of D Train was completed in a good and workmanlike manner, receipt of applicable permits and releases from governmental authorities, and receipt of releases of liens from the contractor and each subcontractor and supplier. The Loans also include a $40.0 million uncommitted increase option (the “Accordion Option”). As of December 31, 2016, TOCCO had borrowed funds under the agreement aggregating $20.0 million with no additional availability remaining. At December 31, 2016, there was a short-term amount of $1.7 million and a long-term amount of $17.3 million outstanding. At December 31, 2015, there was a short-term amount of $1.3 million and a long-term amount of $18.7 million outstanding. |
Principal Payments of Long-term Debt | Principal payments of long-term debt for the next five years and thereafter ending December 31 are as follows: Year Ending December 31, Long-Term Debt (thousands of dollars) 2017 $ 10,417 2018 8,333 2019 65,250 Total $ 84,000 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued Liabilities | Accrued liabilities at December 31 are summarized as follows: 2016 2015 (thousands of dollars) Accrued state taxes $ 81 $ 325 Accrued payroll 1,097 1,293 Accrued interest 33 34 Accrued officers’ compensation - 1,254 Other liabilities 806 1,156 Total $ 2,017 $ 4,062 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Future Minimum Property and Equipment Lease Payments under the Non-cancelable Operating Leases | Future minimum property and equipment lease payments under the non-cancelable operating leases at December 31, 2016, are as follows: Year Ending December 31, Long-Term Debt (thousands of dollars) 2017 $ 3,595 2018 3,393 2019 3,341 2020 3,250 2021 3,120 Thereafter 4,675 Total $ 21,374 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION [Abstract] | |
Restricted Stock Activity | A summary of the status of the Company’s restricted stock activity in 2016 is as follows: Shares of Restricted Stock Weighted Average Grant Date Price per Share Outstanding at January 1, 2016 148,040 $ 14.14 Granted 245,426 10.19 Vested (42,575 ) 13.60 Outstanding at December 31, 2016 350,891 $ 11.44 Expected to vest 329,690 |
Black-Scholes Option Valuation Assumptions | The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: Expected volatility 84% Expected dividends None Expected term (in years) 6.25 Risk free interest rate 1.95% The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: Expected volatility 85% Expected dividends None Expected term (in years) 6.25 Risk free interest rate 1.33% The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: Expected volatility 87% Expected dividends None Expected term (in years) 6.5 Risk free interest rate 0.92% The fair value of the 2011 options granted was calculated using the Black-Scholes option valuation model with the following range of assumptions: Expected volatility 96% to 413% Expected dividends None Expected term (in years) 5-10 Risk free interest rate 1.26% to 3.34% The fair value of the 2010 options granted was calculated using the Black-Scholes option valuation model with the following range of assumptions: Expected volatility 338% to 467% Expected dividends None Expected term (in years) 5-10 Risk free interest rate 2.37% to 3.68% |
Summary of Status of Stock Option Awards and Warrants | A summary of the status of the Company’s stock option and warrant awards is presented below: Stock Options and Warrants Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Intrinsic Value (in thousands) Outstanding at December 31, 2015 1,376,437 $ 7.68 Granted - - Expired - - Exercised (28,000 ) 2.39 Forfeited - - Outstanding at December 31, 2016 1,348,437 $ 7.79 5.2 $ 8,172 Expected to vest 292,500 $ 11.56 7.0 $ 670 Exercisable at December 31, 2016 855,937 $ 7.53 5.2 $ 5,410 |
Summary of Status of Non-Vested Options | A summary of the status of the Company’s non-vested options that are expected to vest is presented below: Shares Weighted Average Grant-Date Fair Value Per Share Non-vested at January 1, 2016 700,000 $ 8.66 Granted - - Forfeited - - Vested (207,500 ) 9.64 Non-vested at December 31, 2016 492,500 $ 8.25 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |
Provision for Income Taxes | The provision for income taxes consisted of the following: Year ended December 31, 2016 2015 2014 (thousands of dollars) Current federal provision $ 1,691 $ 4,062 $ 8,756 Current state provision 18 285 296 Deferred federal provision (benefit) 8,645 5,367 (1,893 ) Deferred state provision (benefit) 150 50 (12 ) Income tax expense $ 10,504 $ 9,764 $ 7,147 |
Difference between Effective Tax Rate in Income Tax Expense and Federal Statutory Rate | The difference between the effective tax rate in income tax expense and the Federal statutory rate of 35% for the years ended December 31, 2016, 2015, and 2014, is as follows: 2016 2015 2014 (thousands of dollars) Income taxes at U.S. statutory rate $ 10,476 $ 9,927 $ 7,952 State taxes, net of federal benefit 285 230 181 Permanent and other items (257 ) (393 ) (915 ) Increase (decrease) in valuation allowance - - (71 ) Total tax expense $ 10,504 $ 9,764 $ 7,147 |
Tax Effects of Temporary Differences that Give Rise to Significant Portions of Federal and State Deferred Tax Assets and Deferred Tax Liabilities | Tax effects of temporary differences that give rise to significant portions of federal and state deferred tax assets and deferred tax liabilities were as follows: December 31, 2016 2015 (thousands of dollars) Deferred tax liabilities: Plant, pipeline and equipment $ (22,598 ) $ (14,996 ) Intangible assets (786 ) (284 ) Other assets (10 ) (14 ) Investment in AMAK (3,109 ) ( 2,522 ) Total deferred tax liabilities $ (26,503 ) $ (17,816 ) Deferred tax assets: Accounts receivable 322 283 Inventory 1,283 1,785 Mineral interests 376 376 Unrealized loss on swap agreements 20 62 Post-retirement benefits 423 330 Stock-based compensation 1,372 969 Intangible assets - - Deferred revenue - - Gross deferred tax assets 3,796 3,805 Valuation allowance (376 ) (376 ) Total net deferred tax assets $ 3,420 $ 3,429 Net deferred tax liabilities $ (23,083 ) $ (14,387 ) |
Current and Non-Current Classifications of Deferred Tax Balances | The current and non-current classifications of the deferred tax balances are as follows: 2016 2015 (thousands of dollars) Current: Deferred tax asset $ 1,615 $ 2,116 Non-current: Deferred tax assets 6,124 4,637 Deferred tax liability (30,446 ) (20,764 ) Valuation allowance (376 ) (376 ) Non-current deferred tax liability, net (24,698 ) (16,503 ) Total deferred liabilities, net $ (23,083 ) $ (14,387 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | Our petrochemical segment includes SHR and GSPL. Our specialty wax segment includes TC. We also separately identify our corporate overhead and investing which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Year Ended December 31, 2016 Petrochemical Specialty Wax Corporate Consolidated (in thousands) Net revenues $ 182,028 $ 30,371 $ - $ 212,399 Operating profit before depreciation and amortization 31,885 3,043 (6,444 ) 28,484 Operating profit (loss) 26,060 (865 ) (6,488 ) 18,707 Profit (loss) before taxes 24,084 10,675 (4,827 ) 29,932 Depreciation and amortization 5,825 3,908 44 9,777 Capital expenditures 22,948 17,547 - 40,495 Year Ended December 31, 2016 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Goodwill and intangible assets, net $ - $ 44,467 $ - $ - $ 44,467 Total assets 219,376 113,676 107,302 (148,255 ) 292,099 Year Ended December 31, 2015 Petrochemical Specialty Wax Corporate Consolidated (in thousands) Net revenues $ 218,233 $ 23,743 $ - $ 241,976 Operating profit before depreciation and amortization 47,565 4,549 (7,013 ) 45,101 Operating profit (loss) 43,081 (1 ) (7,039 ) 36,041 Profit (loss) before taxes 40,948 (195 ) (12,392 ) 28,362 Depreciation and amortization 4,484 4,550 26 9,060 Capital expenditures 24,358 6,889 - 31,247 Year Ended December 31, 2015 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Goodwill and intangible assets, net $ - $ 46,347 $ - $ - $ 46,347 Total assets 195,358 86,076 98,728 (122,371 ) 257,791 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
NET INCOME PER COMMON SHARE [Abstract] | |
Net Income Per Common Share | Year ended December 31, 2016 2015 2014 (thousands of dollars) Net income $ 19,428 $ 18,598 $ 15,571 Basic earnings per common share: Weighted average shares outstanding 24,284 24,370 24,188 Per share amount (dollars) $ 0.80 $ 0.76 $ 0.64 Diluted earnings per common share: Weighted average shares outstanding 24,982 25,181 24,896 Per share amount (dollars) $ 0.78 $ 0.74 $ 0.63 Weighted average shares-denominator basic computation 24,284 24,370 24,188 Unvested restricted stock grant 310 141 - Effect of dilutive stock options 388 670 708 Weighted average shares, as adjusted denominator diluted computation 24,982 25,181 24,896 |
QUARTERLY RESULTS OF OPERATIO50
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) [Abstract] | |
Quarterly Results of Operations | The quarterly results of operations shown below are derived from unaudited financial statements for the eight quarters ended December 31, 2016 (in thousands, except per share data, rounding may apply): Year Ended December 31, 2016 First Quarter Second Quarter(2) Third Quarter(3) Fourth Quarter Total Revenues $ 52,200 $ 48,854 $ 57,142 $ 54,203 $ 212,399 Gross profit 11,771 11,574 8,905 7,652 39,902 Net income 7,224 10,252 2,799 (847 ) 19,428 Basic EPS(1) $ 0.30 $ 0.42 $ 0.12 $ (0.03 ) $ 0.80 Diluted EPS(1) $ 0.29 $ 0.41 $ 0.11 $ (0.03 ) $ 0.78 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 55,143 $ 59,350 $ 66,938 $ 60,545 $ 241,976 Gross profit 15,123 14,594 16,035 11,257 57,009 Net income 5,784 6,374 5,318 1,122 18,598 Basic EPS(1) $ 0.24 $ 0.26 $ 0.21 $ 0.05 $ 0.76 Diluted EPS(1) $ 0.23 $ 0.25 $ 0.21 $ 0.05 $ 0.74 (1) Basic and diluted earnings per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. (2) On May 2, 2016, we purchased the idle BASF facility adjacent to our TC facility. As discussed in Note 2, we recorded a bargain purchase gain of approximately $11.5 million on the transaction. (3) As discussed in Note 11, in July 2016 AMAK issued four million shares. As a result of the equity issuance, our share of the net assets of AMAK increased approximately $3.2 million which we recognized as a gain. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
Realized and Unrealized Gains on Derivatives | The following tables detail (in thousands) the impact the feedstock and natural gas instruments had on the financial statements: December 31, 2016 2015 2014 Realized gain (loss) $ - $ (180 ) $ (452 ) Unrealized gain (loss) - 180 (132 ) Net loss $ - $ - $ (584 ) |
Impact of Interest Rate Swap on Other Comprehensive Loss | The following tables detail (in thousands) the impact the agreement had on the financial statements: December 31, 2016 2015 2014 Interest expense reclassified from other comprehensive income (loss) $ - $ - $ 378 |
Fair Value of Derivative Liability | December 31, 2016 2015 Fair value of derivative liability $ 58 $ 177 |
BUSINESS AND OPERATIONS OF TH52
BUSINESS AND OPERATIONS OF THE COMPANY (Details) | Dec. 31, 2016 | Oct. 02, 2014 |
Trecora Chemical Inc (Formerly SSI Chusei, Inc) [Member] | Common Class A [Member] | ||
Noncontrolling Interest [Line Items] | ||
Percentage of common stock acquired | 100.00% | |
AMAK [Member] | ||
Noncontrolling Interest [Line Items] | ||
Percentage of ownership | 33.00% | |
Pioche Ely Valley Mines, Inc. ("PEVM") [Member] | ||
Noncontrolling Interest [Line Items] | ||
Percentage of ownership | 55.00% |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)SAR / $ | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Trade Receivables and Allowance for Doubtful Accounts [Abstract] | |||
Increase in allowance for doubtful accounts | $ 90,000 | $ 0 | $ 0 |
Accounts receivable written off | $ 93,000 | $ 0 | 0 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Imputed interest rates on outstanding notes | 4.00% | 4.00% | |
Retirement plan [Abstract] | |||
Percentage contribution by employer in relation to employee contribution to fund | 100.00% | ||
Employer matching contribution | 6.00% | ||
Vesting period under 401(k) plan | 2 years | ||
Matching contribution by employer | $ 1,195,000 | $ 1,116,000 | 641,000 |
Other Liabilities [Abstract] | |||
Reduction in depreciation expense due to amortization of capitalize liability | $ 1,047,000 | 972,000 | $ 1,649,000 |
Foreign Currency [Abstract] | |||
Exchange rate | SAR / $ | 3.75 | ||
Income Taxes [Abstract] | |||
Accrued interest related to uncertain tax positions | $ 0 | 0 | |
Accounting Standards Update 2015-03 and 2015-15 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net loan fees | $ 700,000 | $ 1,000,000 |
ACQUISITION OF B PLANT (Details
ACQUISITION OF B PLANT (Details) | May 02, 2016USD ($)a | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Purchase Price Allocation [Abstract] | ||||
Cash paid | $ 2,011,000 | $ 0 | $ 0 | |
Estimated earnout liability | 733,000 | 0 | 0 | |
Fixed assets at FMV [Abstract] | ||||
Bargain purchase gain | $ 11,549,000 | $ 0 | $ 0 | |
BASF FACILITY [Member] | ||||
Business Acquisition [Line Items] | ||||
Earnout provision calculated through calendar year 2020 based upon revenue | $ 1,800,000 | |||
Business acquisition transaction costs | $ 11,000 | |||
Area of acquired facility | a | 6.5 | |||
Purchase Price Allocation [Abstract] | ||||
Cash paid | $ 2,011,000 | |||
Estimated earnout liability | 733,000 | |||
Purchase Price | 2,744,000 | |||
Fixed assets at FMV [Abstract] | ||||
Land | 980,000 | |||
Site improvements | 30,000 | |||
Buildings | 1,350,000 | |||
Production equipment | 11,933,000 | |||
Total of Fixed assets at FMV | 14,293,000 | |||
Bargain purchase gain | $ 11,549,000 |
CONCENTRATIONS OF REVENUES AN55
CONCENTRATIONS OF REVENUES AND CREDIT RISK (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)CustomerSupplier | Dec. 31, 2015USD ($)CustomerSupplier | Dec. 31, 2014USD ($)CustomerSupplier | |
Concentration Risk [Line Items] | |||
Accounts receivable | $ 22,193,000 | $ 19,474,000 | |
Number of major supplier | Supplier | 1 | 1 | 1 |
Amount owed to supplier for feedstock purchases | $ 3,700,000 | $ 2,500,000 | |
Cash insured by the Federal Deposit Insurance Corporation | $ 250,000 | ||
Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 99.40% | 100.00% | 100.00% |
Sales [Member] | |||
Concentration Risk [Line Items] | |||
Number of major customer | Customer | 1 | 1 | 2 |
Sales [Member] | Revenue Concentration Risk [Member] | Major Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.10% | 20.10% | 23.20% |
Sales [Member] | Revenue Concentration Risk [Member] | Major Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.50% | ||
Sales [Member] | Foreign Jurisdiction Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23.50% | 26.00% | 30.50% |
Accounts Receivable [Member] | Major Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 5,100,000 | $ 7,600,000 | $ 9,500,000 |
Accounts Receivable [Member] | Major Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 1,600,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2008 | |
FAIR VALUE MEASUREMENTS [Abstract] | ||||
Term loan secured by plant, pipeline and equipment | $ 10,000 | |||
Unrealized loss associated with the swap | $ 378 | |||
Recurring [Member] | ||||
Liabilities [Abstract] | ||||
Interest rate swap | $ 58 | $ 177 | ||
Recurring [Member] | Level 1 [Member] | ||||
Liabilities [Abstract] | ||||
Interest rate swap | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | ||||
Liabilities [Abstract] | ||||
Interest rate swap | 58 | 177 | ||
Recurring [Member] | Level 3 [Member] | ||||
Liabilities [Abstract] | ||||
Interest rate swap | $ 0 | $ 0 |
TRADE RECEIVABLES (Details)
TRADE RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
TRADE RECEIVABLES [Abstract] | ||
Trade receivables | $ 22,493 | $ 19,684 |
Less allowance for doubtful accounts | (300) | (210) |
Trade receivables, net | $ 22,193 | $ 19,474 |
PREPAID EXPENSES AND OTHER AS58
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
PREPAID EXPENSES AND OTHER ASSETS [Abstract] | ||
Prepaid license | $ 1,919 | $ 0 |
Prepaid catalyst | 187 | 455 |
Prepaid insurance | 797 | 1,182 |
Other prepaid expenses and assets | 608 | 755 |
Total | $ 3,511 | $ 2,392 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
INVENTORIES [Abstract] | ||
Raw material | $ 3,627 | $ 2,905 |
Work in process | 12 | 56 |
Finished products | 14,232 | 12,843 |
Total inventory | 17,871 | 15,804 |
Excess of current cost over LIFO value | 0 | 0 |
Products in transit | $ 2,100 | $ 2,700 |
PLANT, PIPELINE AND EQUIPMENT60
PLANT, PIPELINE AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | $ 194,486,000 | $ 143,471,000 | |
Less accumulated depreciation | (54,477,000) | (46,564,000) | |
PLANT, PIPELINE, AND EQUIPMENT, NET (Note 9) | 140,009,000 | 96,907,000 | |
Interest capitalized for construction | 450,000 | 141,000 | |
Amortization relating to the platinum catalyst | 98,000 | 84,000 | $ 84,000 |
Platinum Catalyst [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 1,612,000 | 1,612,000 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 5,376,000 | 4,577,000 | |
Plant, Pipeline and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 154,107,000 | 128,302,000 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | $ 33,391,000 | $ 8,980,000 |
GOODWILL AND INTANGIBLE ASSET61
GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible assets subject to amortization [Abstract] | |||
Gross | $ 24,548 | $ 24,548 | |
Accumulated Amortization | (4,234) | (2,354) | |
Net | 20,314 | 22,194 | |
Amortization of intangible assets | 1,880 | 1,883 | $ 471 |
Intangible assets not subject to amortization [Abstract] | |||
Gross | 26,903 | 26,903 | |
Accumulated Amortization | (4,234) | (2,354) | |
Net | 22,669 | 24,549 | |
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
2,017 | 1,861 | ||
2,018 | 1,861 | ||
2,019 | 1,855 | ||
2,020 | 1,842 | ||
2,021 | 1,842 | ||
Thereafter | 11,053 | ||
Emissions Allowance [Member] | |||
Intangible assets not subject to amortization [Abstract] | |||
Gross | 197 | 197 | |
Accumulated Amortization | 0 | 0 | |
Net | 197 | 197 | |
Trade Name [Member] | |||
Intangible assets not subject to amortization [Abstract] | |||
Gross | 2,158 | 2,158 | |
Accumulated Amortization | 0 | 0 | |
Net | 2,158 | 2,158 | |
Customer Relationships [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
2,017 | 1,123 | ||
2,018 | 1,123 | ||
2,019 | 1,123 | ||
2,020 | 1,123 | ||
2,021 | 1,123 | ||
Thereafter | 8,710 | ||
Non-compete Agreements [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
2,017 | 19 | ||
2,018 | 19 | ||
2,019 | 13 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Licenses and Permits [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
2,017 | 106 | ||
2,018 | 106 | ||
2,019 | 106 | ||
2,020 | 106 | ||
2,021 | 106 | ||
Thereafter | 656 | ||
Developed Technology [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
2,017 | 613 | ||
2,018 | 613 | ||
2,019 | 613 | ||
2,020 | 613 | ||
2,021 | 613 | ||
Thereafter | 1,687 | ||
Customer Relationships [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 16,852 | 16,852 | |
Accumulated Amortization | (2,527) | (1,404) | |
Net | 14,325 | 15,448 | |
Non-compete Agreements [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 94 | 94 | |
Accumulated Amortization | (43) | (24) | |
Net | 51 | 70 | |
Licenses and Permits [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 1,471 | 1,471 | |
Accumulated Amortization | (285) | (160) | |
Net | 1,186 | 1,311 | |
Developed Technology [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 6,131 | 6,131 | |
Accumulated Amortization | (1,379) | (766) | |
Net | $ 4,752 | $ 5,365 |
INVESTMENT IN AL MASANE AL KO62
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") (Details) | Jul. 31, 2016$ / sharesshares | Dec. 31, 2016USD ($)SAR / $ | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2016SAR / sharesshares | Jul. 10, 2016 | Jul. 09, 2016 |
Schedule of Equity Method Investments [Line Items] | |||||||
Exchange rate | SAR / $ | 3.75 | ||||||
Results of Operations [Abstract] | |||||||
Operating income | $ 18,707,000 | $ 36,041,000 | $ 25,482,000 | ||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
Equity in loss of AMAK | (1,479,000) | (5,325,000) | (1,072,000) | ||||
Shares issued (in shares) | shares | 4,000,000 | ||||||
Gain from equity issuance by AMAK | 3,168,000 | 0 | 0 | ||||
AMAK [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment in AMAK | $ 49,400,000 | 47,700,000 | |||||
Exchange rate | SAR / $ | 3.75 | ||||||
Results of Operations [Abstract] | |||||||
Sales | $ 9,921,000 | 50,744,000 | 63,300,000 | ||||
Gross profit (loss) | (17,211,000) | (10,437,000) | 3,624,000 | ||||
General, administrative and other expenses | 9,690,000 | 8,796,000 | 10,487,000 | ||||
Operating income | (26,901,000) | (19,233,000) | (6,863,000) | ||||
Gain on settlement with former operator | 17,425,000 | 0 | 0 | ||||
Net loss | (9,476,000) | (19,233,000) | (6,863,000) | ||||
Depreciation and amortization expense | 11,700,000 | 23,200,000 | 23,700,000 | ||||
Net income before depreciation and amortization | 2,196,000 | 4,016,000 | 16,845,000 | ||||
Financial Position [Abstract] | |||||||
Current assets | 22,860,000 | 26,078,000 | |||||
Noncurrent assets | 251,741,000 | 255,613,000 | |||||
Total assets | 274,601,000 | 281,691,000 | |||||
Current liabilities | 8,005,000 | 22,740,000 | |||||
Long term liabilities | 82,546,000 | 85,450,000 | |||||
Shareholders' equity | 184,050,000 | 173,501,000 | |||||
Total liabilities and equity | 274,601,000 | 281,691,000 | |||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
AMAK Net Loss | (9,476,000) | (19,233,000) | (6,863,000) | ||||
Zakat tax applicable to Saudi Arabian shareholders only | 320,000 | 303,000 | 0 | ||||
AMAK Net Loss before Saudi Arabian shareholders' portion of Zakat | (9,156,000) | (18,930,000) | (6,863,000) | ||||
Company's share of loss reported by AMAK (33.44% beginning July 10, 2016 and 35.25% prior to July 10, 2016) | (2,826,000) | (6,672,000) | (2,419,000) | ||||
Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK | 1,347,000 | 1,347,000 | 1,347,000 | ||||
Equity in loss of AMAK | (1,479,000) | (5,325,000) | (1,072,000) | ||||
Gain upon formation of AMAK | $ 16,200,000 | ||||||
Shares issued (in shares) | shares | 4,000,000 | ||||||
Percentage investment in AMAK | 100.00% | 33.44% | 35.25% | ||||
Gain from equity issuance by AMAK | $ 3,200,000 | ||||||
Amount receivable for unreimbursed travel expenses | 14,000 | ||||||
Impairment charges on investment in AMAK | $ 0 | $ 0 | $ 0 | ||||
AMAK [Member] | Various Saudi Shareholders [Member] | |||||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
Percentage investment in AMAK | 46.73% | ||||||
AMAK [Member] | Trecora Resources [Member] | |||||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
Percentage investment in AMAK | 33.44% | ||||||
AMAK [Member] | Armico [Member] | |||||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
Percentage investment in AMAK | 19.51% | ||||||
AMAK [Member] | Treasury [Member] | |||||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
Percentage investment in AMAK | 0.32% | ||||||
Arab Mining Co [Member] | |||||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||||||
Shares issued (in shares) | shares | 3,750,000 | ||||||
Share price (in dollars per share) | (per share) | $ 5.33 | SAR 20 | |||||
Shares reserved for future issuance (in shares) | shares | 250,000 | 250,000 |
MINERAL PROPERTIES IN THE UNI63
MINERAL PROPERTIES IN THE UNITED STATES (Details) | 12 Months Ended | |
Dec. 31, 2016aClaimT | Aug. 31, 2001Claim | |
MINERAL PROPERTIES IN THE UNITED STATES [Abstract] | ||
Number of patented mining claims in which PEVM has undivided interest | 48 | |
Number of unpatented mining claims in which PEVM has undivided interest | 5 | |
Area under patented and unpatented mining claims | a | 1,500 | |
Allocated mining capacity per day | T | 300 | |
Unpatented claims abandoned | 75 | |
Period when the property is unused | 35 years |
LONG-TERM DEBT AND LONG-TERM 64
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Details) - USD ($) | Oct. 01, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term debt [Abstract] | |||||
Loan fees | $ (748,000) | $ (1,020,000) | |||
Total long-term debt | 83,252,000 | 81,230,000 | |||
Less current portion including loan fees | 10,145,000 | 8,061,000 | |||
Total long-term debt, less current portion including loan fees | 73,107,000 | 73,169,000 | |||
Amortization of loan fees | 272,000 | 272,000 | $ 68,000 | ||
Principal payments of long-term debt [Abstract] | |||||
2,017 | 10,417,000 | ||||
2,018 | 8,333,000 | ||||
2,019 | 65,250,000 | ||||
Total long-term debt | $ 84,000,000 | ||||
Eurodollar Rate [Member] | |||||
Long-term debt [Abstract] | |||||
Outstanding loans repaid percentage | 100.00% | ||||
TOCCO [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 3.27% | ||||
TOCCO [Member] | LIBOR [Member] | Minimum [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 2.00% | ||||
TOCCO [Member] | LIBOR [Member] | Maximum [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 2.50% | ||||
TOCCO [Member] | Federal Fund Rate [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 0.50% | ||||
TOCCO [Member] | Eurodollar Rate [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 1.00% | ||||
TOCCO [Member] | Base Rate [Member] | Minimum [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 1.00% | ||||
TOCCO [Member] | Base Rate [Member] | Maximum [Member] | |||||
Long-term debt [Abstract] | |||||
Basis spread on variable rate | 1.50% | ||||
Revolving Note [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term debt | [1] | $ 9,000,000 | 1,000,000 | ||
Maximum borrowing capacity | $ 40,000,000 | ||||
Loan expiration date | Oct. 1, 2019 | ||||
Borrowed funds under the agreement | $ 9,000,000 | 1,000,000 | |||
Available remaining borrowing capacity | 31,000,000 | ||||
Available remaining borrowing capacity to maintain covenant compliance | 29,500,000 | ||||
Maximum total leverage ratio | 3.25 | ||||
Minimum fixed charge coverage ratio | 1.25 | ||||
Asset coverage test, minimum | 1.1 | ||||
Revolving Note [Member] | TOCCO [Member] | Minimum [Member] | |||||
Long-term debt [Abstract] | |||||
Commitment fee | 0.25% | ||||
Revolving Note [Member] | TOCCO [Member] | Maximum [Member] | |||||
Long-term debt [Abstract] | |||||
Commitment fee | 0.375% | ||||
Letter of Credit [Member] | |||||
Long-term debt [Abstract] | |||||
Maximum borrowing capacity | 5,000,000 | ||||
Swing Line Loans [Member] | |||||
Long-term debt [Abstract] | |||||
Maximum borrowing capacity | 5,000,000 | ||||
Term Note One [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term debt | [2] | 19,000,000 | 20,000,000 | ||
Less current portion including loan fees | 1,700,000 | 1,300,000 | |||
Total long-term debt, less current portion including loan fees | 17,300,000 | 18,700,000 | |||
Borrowed funds under the agreement | 20,000,000 | ||||
Available remaining borrowing capacity | 0 | ||||
Amount of multiple advance loan that was available to be borrowed | 25,000,000 | ||||
Amount of uncommitted increase option | $ 40,000,000 | ||||
Maturity date | Dec. 31, 2015 | ||||
Amortization period for principal on acquisition term loan | 15 years | ||||
Quarterly installment amount of acquisition term loan | $ 333,333 | ||||
Term Note [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term debt | [3] | 56,000,000 | 61,250,000 | ||
Less current portion including loan fees | 8,800,000 | 7,000,000 | |||
Total long-term debt, less current portion including loan fees | $ 47,300,000 | $ 54,300,000 | |||
Total long-term debt | $ 70,000,000 | ||||
Amortization period for principal on acquisition term loan | 10 years | ||||
Quarterly installment amount of acquisition term loan | $ 1,750,000 | ||||
[1] | On October 1, 2014, TOCCO, SHR, GSPL and TC (SHR, GSPL and TC collectively the "Guarantors") entered into an Amended and Restated Credit Agreement ("ARC Agreement") with the lenders which from time to time are parties to the ARC Agreement (collectively, the "Lenders") and Bank of America, N.A., a national banking association, as Administrative Agent for the Lenders, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Lead Arranger. Subject to the terms and conditions of the ARC Agreement, TOCCO may (a) borrow, repay and re-borrow revolving loans (collectively, the "Revolving Loans") from time to time during the period ending September 30, 2019, up to but not exceeding at any one time outstanding $40.0 million (the "Revolving Loan Commitment") and (b) request up to $5.0 million of letters of credit and $5.0 million of swingline loans. Each of the issuance of letters of credit and the advance of swingline loans shall be considered usage of the Revolving Loan Commitment. All outstanding loans under the Revolving Loans must be repaid on October 1, 2019. As of December 31, 2016, and 2015, TOCCO had long-term outstanding borrowings under the Revolving Loans of $9.0 million and $1.0 million, respectively. At December 31, 2016, approximately $31.0 million was available to be drawn. However, in order to maintain compliance with our covenants, we could have only drawn approximately $29.5 million. | ||||
[2] | Under the ARC Agreement, TOCCO also has the right to borrow $25.0 million in a multiple advance loan (the "Term Loans," together with the Revolving Loans and Acquisition Term Loan, collectively the "Loans"). Borrowing availability under the Term Loans ended on December 31, 2015. The Term Loans convert from a multiple advance loan to a "mini-perm" loan once TOCCO has fulfilled certain obligations such as certification that construction of D Train was completed in a good and workmanlike manner, receipt of applicable permits and releases from governmental authorities, and receipt of releases of liens from the contractor and each subcontractor and supplier. The Loans also include a $40.0 million uncommitted increase option (the "Accordion Option"). As of December 31, 2016, TOCCO had borrowed funds under the agreement aggregating $20.0 million with no additional availability remaining. At December 31, 2016, there was a short-term amount of $1.7 million and a long-term amount of $17.3 million outstanding. At December 31, 2015, there was a short-term amount of $1.3 million and a long-term amount of $18.7 million outstanding. | ||||
[3] | Under the ARC Agreement, TOCCO also borrowed $70.0 million in a single advance term loan (the "Acquisition Term Loan") to partially finance the Acquisition. At December 31, 2016, there was a short-term amount of $8.8 million and a long-term amount of $47.3 million outstanding. At December 31, 2015, there was a short-term amount of $7.0 million and a long-term amount of $54.3 million outstanding. |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities [Abstract] | ||
Accrued state taxes | $ 81 | $ 325 |
Accrued payroll | 1,097 | 1,293 |
Accrued interest | 33 | 34 |
Accrued officers' compensation | 0 | 1,254 |
Other liabilities | 806 | 1,156 |
Total | $ 2,017 | $ 4,062 |
COMMITMENTS AND CONTINGENCIES66
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, SAR in Millions | Jul. 17, 2016shares | Dec. 31, 2016USD ($)Railcar | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016SARRailcar | Dec. 31, 2015SAR | Oct. 24, 2010USD ($) | Oct. 24, 2010SAR |
Loss Contingencies [Line Items] | ||||||||
Expenses for environmental monitoring, compliance, and improvements | $ 622 | $ 604 | $ 414 | |||||
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||||||||
2,017 | 3,595 | |||||||
2,018 | 3,393 | |||||||
2,019 | 3,341 | |||||||
2,020 | 3,250 | |||||||
2,021 | 3,120 | |||||||
Thereafter | 4,675 | |||||||
Total | 21,374 | |||||||
Operating Leased Assets [Line Items] | ||||||||
Operating lease, rental expense | $ 4,200 | 4,200 | $ 2,500 | |||||
AMAK [Member] | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Contribution of shares to be issued upon reaching goals (in shares) | shares | 250,000 | |||||||
Other Shareholders [Member] | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Contribution of shares to be issued upon reaching goals (in shares) | shares | 250,000 | |||||||
Railcars [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number Of Railcars | Railcar | 340 | 340 | ||||||
Operating lease expiration date | Dec. 31, 2026 | |||||||
Total commitments under operating leases | $ 21,200 | |||||||
Operating Lease Period | 10 years | |||||||
Office Space in Sugar Land, TX [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Operating lease expiration date | Dec. 31, 2018 | |||||||
Total commitments under operating leases | $ 100 | |||||||
Other Equipment [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Operating lease expiration date | Dec. 31, 2020 | |||||||
Total commitments under operating leases | $ 100 | |||||||
Pending Litigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrued recorded value | 1,000 | |||||||
Saudi Industrial Development Fund Limited Guarantee [Member] | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Principal amount of loan guaranteed | $ 88,000 | SAR 330 | ||||||
Amount of maximum exposure | $ 82,700 | $ 82,700 | SAR 310 | SAR 310 | $ 36,100 | SAR 135.3 | ||
Saudi Industrial Development Fund Limited Guarantee [Member] | Maximum [Member] | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Loan guarantee | 41.00% | 41.00% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | Nov. 17, 2016$ / sharesshares | May 17, 2016$ / sharesshares | Mar. 01, 2016$ / sharesshares | Jan. 29, 2016$ / sharesshares | May 20, 2015$ / sharesshares | Apr. 14, 2015Employee$ / sharesshares | Feb. 12, 2015$ / sharesshares | Feb. 10, 2015$ / sharesshares | Feb. 21, 2014USD ($)$ / sharesshares | May 29, 2013USD ($)$ / sharesshares | Nov. 15, 2012USD ($)$ / sharesshares | Sep. 25, 2011$ / sharesshares | May 20, 2011$ / sharesshares | May 02, 2011$ / sharesshares | Jan. 12, 2011USD ($)$ / sharesshares | Feb. 28, 2010USD ($) | Feb. 23, 2010$ / shares | Jul. 31, 2009Option$ / sharesshares | Oct. 31, 2014USD ($)shares | Feb. 28, 2010shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2012USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | May 08, 2013shares | Feb. 01, 2013$ / sharesshares | Oct. 23, 2008shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 2,552,000 | $ 2,353,000 | $ 2,141,000 | |||||||||||||||||||||||||
Warrants and Rights Note Disclosure [Abstract] | ||||||||||||||||||||||||||||
Common stock, issued (in shares) | 100,000 | |||||||||||||||||||||||||||
Strike price (in dollars per share) | $ / shares | $ 10 | |||||||||||||||||||||||||||
Warrant term | 5 years | |||||||||||||||||||||||||||
Vesting percentage | 50.00% | |||||||||||||||||||||||||||
Vesting of warrant in year one, description | equal increments of 1/12th each calendar month throughout the first year | |||||||||||||||||||||||||||
Vesting of warrant thereafter, description | equal increments of 1/36th each calendar month over years 2 through 4 contingent upon continuous investor relations service under the consulting agreement | |||||||||||||||||||||||||||
Investor relations expense | $ | 79,000 | |||||||||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Number of shares of common stock issued (in shares) | 0 | 0 | ||||||||||||||||||||||||||
Restricted Stock [Member] | ||||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Outstanding at beginning of period (in shares) | 148,040 | |||||||||||||||||||||||||||
Granted (in shares) | 245,426 | |||||||||||||||||||||||||||
Vested (in shares) | (42,575) | |||||||||||||||||||||||||||
Outstanding at end of period (in shares) | 350,891 | 148,040 | ||||||||||||||||||||||||||
Expected to vest (in shares) | 329,690 | 329,690 | ||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 14.14 | |||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 10.19 | |||||||||||||||||||||||||||
Vested (in dollars per share) | $ / shares | 13.60 | |||||||||||||||||||||||||||
Outstanding at end of period (in dollars per share) | $ / shares | $ 11.44 | $ 14.14 | ||||||||||||||||||||||||||
Unrecognized compensation cost related to non-vested share-based compensation | $ | $ 2,800,000 | |||||||||||||||||||||||||||
Weighted average recognition period | 2 years 7 months 6 days | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Expected to vest, end of period (in shares) | 329,690 | |||||||||||||||||||||||||||
Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 1,456,000 | $ 1,645,000 | $ 2,063,000 | |||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Expected to vest (in shares) | 292,500 | 292,500 | ||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Unrecognized compensation cost related to non-vested share-based compensation | $ | $ 1,400,000 | |||||||||||||||||||||||||||
Weighted average recognition period | 1 year 1 month 6 days | |||||||||||||||||||||||||||
Number of shares of common stock issued (in shares) | 0 | 0 | ||||||||||||||||||||||||||
Number of shares register under stock option plans (in shares) | 1,500,000 | 1,000,000 | ||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 0 | |||||||||||||||||||||||||||
Aggregate options outstanding (in shares) | 1,376,437 | 1,376,437 | 1,348,437 | |||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Outstanding at beginning of period (in shares) | 1,376,437 | |||||||||||||||||||||||||||
Granted (in shares) | 0 | |||||||||||||||||||||||||||
Expired (in shares) | 0 | |||||||||||||||||||||||||||
Exercised (in shares) | (28,000) | |||||||||||||||||||||||||||
Forfeited (in shares) | 0 | |||||||||||||||||||||||||||
Outstanding at end of period (in shares) | 1,348,437 | 1,376,437 | ||||||||||||||||||||||||||
Expected to vest, end of period (in shares) | 292,500 | |||||||||||||||||||||||||||
Exercisable, end of period (in shares) | 855,937 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 7.68 | |||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 0 | |||||||||||||||||||||||||||
Expired (in dollars per share) | $ / shares | 0 | |||||||||||||||||||||||||||
Exercised (in dollars per share) | $ / shares | 2.39 | |||||||||||||||||||||||||||
Forfeited (in dollars per share) | $ / shares | 0 | |||||||||||||||||||||||||||
Outstanding at end of period (in dollars per share) | $ / shares | 7.79 | $ 7.68 | ||||||||||||||||||||||||||
Expected to vest, end of period (in dollars per share) | $ / shares | $ 11.56 | |||||||||||||||||||||||||||
Exercisable, end of period (in dollars per share) | $ / shares | $ 7.53 | |||||||||||||||||||||||||||
Weighted Average Remaining Contractual Life [Abstract] | ||||||||||||||||||||||||||||
Outstanding, weighted average remaining contractual life | 5 years 2 months 12 days | |||||||||||||||||||||||||||
Expected to vest, weighted average remaining contractual life | 7 years | |||||||||||||||||||||||||||
Exercisable, weighted average remaining contractual life | 5 years 2 months 12 days | |||||||||||||||||||||||||||
Intrinsic Value [Abstract] | ||||||||||||||||||||||||||||
Outstanding, Intrinsic value | $ | $ 8,172,000 | |||||||||||||||||||||||||||
Expected to vest, Intrinsic value | $ | 670,000 | |||||||||||||||||||||||||||
Exercisable, Intrinsic value | $ | $ 5,410,000 | |||||||||||||||||||||||||||
Options and warrants shares to purchase in the money (in shares) | 1.3 | |||||||||||||||||||||||||||
Weighted average grant date fair value of options (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 12.26 | |||||||||||||||||||||||||
Aggregate intrinsic value of options exercised | $ | $ 237,000 | $ 2,300,000 | $ 1,600,000 | |||||||||||||||||||||||||
Cash received upon exercise of options | $ | $ 11,000 | $ 123,000 | $ 91,000 | |||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Non-vested, beginning of period (in shares) | 700,000 | |||||||||||||||||||||||||||
Granted (in shares) | 0 | |||||||||||||||||||||||||||
Forfeited (in shares) | 0 | |||||||||||||||||||||||||||
Vested (in shares) | (207,500) | |||||||||||||||||||||||||||
Non-vested, end of period (in shares) | 492,500 | 700,000 | ||||||||||||||||||||||||||
Weighted Average Grant-Date Fair Value Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Non-vested, at beginning of period (in dollars per share) | $ / shares | $ 8.66 | |||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 0 | $ 0 | $ 12.26 | |||||||||||||||||||||||||
Forfeited (in dollars per share) | $ / shares | 0 | |||||||||||||||||||||||||||
Vested (in dollars per share) | $ / shares | 9.64 | |||||||||||||||||||||||||||
Non-vested, end of period (in dollars per share) | $ / shares | $ 8.25 | $ 8.66 | ||||||||||||||||||||||||||
Fair value of options vested in period | $ | $ 874,000 | |||||||||||||||||||||||||||
Director [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 58,000 | $ 43,000 | ||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 30,000 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 12.39 | |||||||||||||||||||||||||||
Vesting percentage | 20.00% | |||||||||||||||||||||||||||
Vesting period | 5 years | |||||||||||||||||||||||||||
Director 1 [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 50,000 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 25,105 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 11.95 | |||||||||||||||||||||||||||
Vesting percentage | 25.00% | |||||||||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||||||||
Director 2 [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 12,500 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 21,967 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 11.95 | |||||||||||||||||||||||||||
Vesting period | 3 years 6 months | |||||||||||||||||||||||||||
Period for equal increments | 3 years | |||||||||||||||||||||||||||
Period for one-half increments | 6 months | |||||||||||||||||||||||||||
Director 3 [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 50,000 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 28,090 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 10.68 | |||||||||||||||||||||||||||
Vesting percentage | 25.00% | |||||||||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||||||||
Officer and Key Employees 1 [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 352,000 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 134,931 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 9.39 | |||||||||||||||||||||||||||
Percentage of stock vests ratably over three years | 50.00% | |||||||||||||||||||||||||||
Percentage of stock vests at the end of the three years | 50.00% | |||||||||||||||||||||||||||
Vesting period of stock vests ratably over three years | 3 years | |||||||||||||||||||||||||||
Vesting period of stock vests at the end of three years | 3 years | |||||||||||||||||||||||||||
Director 4 [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 142,000 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 35,333 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 10.52 | |||||||||||||||||||||||||||
Vesting percentage | 20.00% | |||||||||||||||||||||||||||
Vesting period | 5 years | |||||||||||||||||||||||||||
Employees [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 12,000 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 1,000 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 12.03 | |||||||||||||||||||||||||||
Number of employees | Employee | 2 | |||||||||||||||||||||||||||
Years with the company | 30 years | |||||||||||||||||||||||||||
Officer and Key Employees [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 431,000 | $ 395,000 | ||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 118,040 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 14.59 | |||||||||||||||||||||||||||
Vesting percentage | 25.00% | |||||||||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||||||||
Executive Vice President [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 79,310 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Number of shares of common stock issued (in shares) | 7,000 | |||||||||||||||||||||||||||
Non-Employee Director [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 0 | 9,000 | $ 66,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 2.82 | |||||||||||||||||||||||||||
Vesting period | 5 years | |||||||||||||||||||||||||||
Expected dividends | $ | $ 0 | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 500,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 2.82 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 500,000 | |||||||||||||||||||||||||||
Non-Employee Director [Member] | Stock Options [Member] | Minimum [Member] | ||||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Expected volatility | 338.00% | |||||||||||||||||||||||||||
Expected term (in years) | 5 years | |||||||||||||||||||||||||||
Risk free interest rate | 2.37% | |||||||||||||||||||||||||||
Non-Employee Director [Member] | Stock Options [Member] | Maximum [Member] | ||||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Expected volatility | 467.00% | |||||||||||||||||||||||||||
Expected term (in years) | 10 years | |||||||||||||||||||||||||||
Risk free interest rate | 3.68% | |||||||||||||||||||||||||||
Director Joseph Palm [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 0 | 0 | 0 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Options awarded, term | 10 years | 10 years | ||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 3.52 | $ 3.90 | ||||||||||||||||||||||||||
Vesting period | 4 years 8 months 1 day | 1 year | ||||||||||||||||||||||||||
Aggregate options outstanding (in shares) | 100,000 | |||||||||||||||||||||||||||
Share lots vesting (in shares) | 20,000 | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 80,000 | 19,333 | ||||||||||||||||||||||||||
Outstanding at end of period (in shares) | 100,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 3.52 | $ 3.90 | ||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 80,000 | 19,333 | ||||||||||||||||||||||||||
Director Joseph Palm [Member] | Stock Options [Member] | Stock Options Issued on September 25, 2011 [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 27,000 | 65,000 | 65,000 | |||||||||||||||||||||||||
Director John Townsend [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 27,000 | 80,000 | 80,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Options awarded, term | 10 years | |||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 4.09 | |||||||||||||||||||||||||||
Vesting percentage | 20.00% | |||||||||||||||||||||||||||
Vesting period | 5 years | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 100,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 4.09 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 100,000 | |||||||||||||||||||||||||||
Key Employees [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 0 | 40,000 | 475,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Options awarded, term | 10 years | |||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 4.86 | |||||||||||||||||||||||||||
Vesting percentage | 25.00% | |||||||||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||||||||
Expected dividends | $ | $ 0 | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 391,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 4.86 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 391,000 | |||||||||||||||||||||||||||
Key Employees [Member] | Stock Options [Member] | Minimum [Member] | ||||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Expected volatility | 96.00% | |||||||||||||||||||||||||||
Expected term (in years) | 5 years | |||||||||||||||||||||||||||
Risk free interest rate | 1.26% | |||||||||||||||||||||||||||
Key Employees [Member] | Stock Options [Member] | Maximum [Member] | ||||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Expected volatility | 413.00% | |||||||||||||||||||||||||||
Expected term (in years) | 10 years | |||||||||||||||||||||||||||
Risk free interest rate | 3.34% | |||||||||||||||||||||||||||
Director Gary Adams [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 120,000 | 120,000 | 120,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Options awarded, term | 10 years | |||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 7.14 | |||||||||||||||||||||||||||
Vesting percentage | 20.00% | |||||||||||||||||||||||||||
Vesting period | 5 years | |||||||||||||||||||||||||||
Expected volatility | 87.00% | |||||||||||||||||||||||||||
Expected dividends | $ | $ 0 | |||||||||||||||||||||||||||
Expected term (in years) | 6 years 6 months | |||||||||||||||||||||||||||
Risk free interest rate | 0.92% | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 100,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 7.14 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 100,000 | |||||||||||||||||||||||||||
Mr. Hatem El Khalidi [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 49,000 | 97,000 | 97,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Number of options awarded | Option | 2 | |||||||||||||||||||||||||||
Compensation expense reversed | $ | $ 413,000 | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 200,000 | |||||||||||||||||||||||||||
Intrinsic Value [Abstract] | ||||||||||||||||||||||||||||
Weighted average grant date fair value of options (in dollars per share) | $ / shares | $ 3.40 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 200,000 | |||||||||||||||||||||||||||
Weighted Average Grant-Date Fair Value Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 3.40 | |||||||||||||||||||||||||||
Simon Upfill-Brown [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 126,000 | 126,000 | 126,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Options awarded, term | 10 years | |||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 7.71 | |||||||||||||||||||||||||||
Vesting percentage | 25.00% | |||||||||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||||||||
Expected volatility | 85.00% | |||||||||||||||||||||||||||
Expected dividends | $ | $ 0 | |||||||||||||||||||||||||||
Expected term (in years) | 6 years 3 months | |||||||||||||||||||||||||||
Risk free interest rate | 1.33% | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 90,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 7.71 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 90,000 | |||||||||||||||||||||||||||
Various Employees [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | 258,000 | |||||||||||||||||||||||||||
Shares of Restricted Stock [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 18,000 | |||||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 14.34 | |||||||||||||||||||||||||||
Various Employees [Member] | Stock Options [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||
Compensation expense | $ | $ 1,108,000 | $ 1,108,000 | $ 955,000 | |||||||||||||||||||||||||
Weighted Average Grant Date Price per Share [Abstract] | ||||||||||||||||||||||||||||
Options awarded, term | 10 years | |||||||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 12.26 | |||||||||||||||||||||||||||
Vesting percentage | 25.00% | |||||||||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||||||||
Expected volatility | 84.00% | |||||||||||||||||||||||||||
Expected dividends | $ | $ 0 | |||||||||||||||||||||||||||
Expected term (in years) | 6 years 3 months | |||||||||||||||||||||||||||
Risk free interest rate | 1.95% | |||||||||||||||||||||||||||
Stock Options [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 500,000 | |||||||||||||||||||||||||||
Weighted Average Exercise Price Per Share [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 12.26 | |||||||||||||||||||||||||||
Shares [Roll Forward] | ||||||||||||||||||||||||||||
Granted (in shares) | 500,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Provision for income taxes [Abstract] | |||
Current federal provision | $ 1,691,000 | $ 4,062,000 | $ 8,756,000 |
Current state provision | 18,000 | 285,000 | 296,000 |
Deferred federal provision (benefit) | 8,645,000 | 5,367,000 | (1,893,000) |
Deferred state provision (benefit) | 150,000 | 50,000 | (12,000) |
Income tax expense | $ 10,504,000 | $ 9,764,000 | $ 7,147,000 |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Effective tax rate in income tax expense and the Federal statutory rate [Abstract] | |||
Income taxes at U.S. statutory rate | $ 10,476,000 | $ 9,927,000 | $ 7,952,000 |
State taxes, net of federal benefit | 285,000 | 230,000 | 181,000 |
Permanent and other items | (257,000) | (393,000) | (915,000) |
Increase (decrease) in valuation allowance | 0 | 0 | (71,000) |
Income tax expense | 10,504,000 | 9,764,000 | 7,147,000 |
Deferred tax liabilities [Abstract] | |||
Plant, pipeline and equipment | (22,598,000) | (14,996,000) | |
Intangible assets | (786,000) | (284,000) | |
Other assets | (10,000) | (14,000) | |
Investment in AMAK | (3,109,000) | (2,522,000) | |
Total deferred tax liabilities | (26,503,000) | (17,816,000) | |
Deferred tax assets [Abstract] | |||
Accounts receivable | 322,000 | 283,000 | |
Inventory | 1,283,000 | 1,785,000 | |
Mineral interests | 376,000 | 376,000 | |
Unrealized loss on swap agreements | 20,000 | 62,000 | |
Post-retirement benefits | 423,000 | 330,000 | |
Stock-based compensation | 1,372,000 | 969,000 | |
Intangible assets | 0 | 0 | |
Deferred revenue | 0 | 0 | |
Gross deferred tax assets | 3,796,000 | 3,805,000 | |
Valuation allowance | (376,000) | (376,000) | |
Total net deferred tax assets | 3,420,000 | 3,429,000 | |
Net deferred tax liabilities | (23,083,000) | (14,387,000) | |
Current [Abstract] | |||
Deferred tax asset | 1,615,000 | 2,116,000 | |
Non-current [Abstract] | |||
Deferred tax assets | 6,124,000 | 4,637,000 | |
Deferred tax liability | (30,446,000) | (20,764,000) | |
Valuation allowance | (376,000) | (376,000) | |
Non-current deferred tax liability, net | (24,698,000) | (16,503,000) | |
Net deferred tax liabilities | (23,083,000) | (14,387,000) | |
Income tax expense or liability in Saudi Arabia | 0 | 0 | 0 |
Income Tax Contingency [Line Items] | |||
Income tax expense | 10,504,000 | $ 9,764,000 | $ 7,147,000 |
Federal and state tax authority [Member] | |||
Provision for income taxes [Abstract] | |||
Income tax expense | 524,000 | ||
Effective tax rate in income tax expense and the Federal statutory rate [Abstract] | |||
Income tax expense | 524,000 | ||
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 524,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | [1] | Jun. 30, 2016USD ($) | [2] | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||
Number of operating segments | Segment | 2 | ||||||||||||
Net revenues | $ 54,203 | $ 57,142 | $ 48,854 | $ 52,200 | $ 60,545 | $ 66,938 | $ 59,350 | $ 55,143 | $ 212,399 | $ 241,976 | $ 289,643 | ||
Operating profit before depreciation and amortization | 28,484 | 45,101 | |||||||||||
Operating profit (loss) | 18,707 | 36,041 | 25,482 | ||||||||||
Profit (loss) before taxes | 29,932 | 28,362 | $ 22,718 | ||||||||||
Depreciation and amortization | 9,777 | 9,060 | |||||||||||
Capital expenditures | 40,495 | 31,247 | |||||||||||
Goodwill and intangible assets, net | 44,467 | 46,347 | 44,467 | 46,347 | |||||||||
Total assets | 292,099 | 257,791 | 292,099 | 257,791 | |||||||||
Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Goodwill and intangible assets, net | 0 | 0 | 0 | 0 | |||||||||
Total assets | (148,255) | (122,371) | (148,255) | (122,371) | |||||||||
Corporate [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 0 | 0 | |||||||||||
Operating profit before depreciation and amortization | (6,444) | (7,013) | |||||||||||
Operating profit (loss) | (6,488) | (7,039) | |||||||||||
Profit (loss) before taxes | (4,827) | (12,392) | |||||||||||
Depreciation and amortization | 44 | 26 | |||||||||||
Capital expenditures | 0 | 0 | |||||||||||
Goodwill and intangible assets, net | 0 | 0 | 0 | 0 | |||||||||
Total assets | 107,302 | 98,728 | 107,302 | 98,728 | |||||||||
Petrochemical [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 182,028 | 218,233 | |||||||||||
Operating profit before depreciation and amortization | 31,885 | 47,565 | |||||||||||
Operating profit (loss) | 26,060 | 43,081 | |||||||||||
Profit (loss) before taxes | 24,084 | 40,948 | |||||||||||
Depreciation and amortization | 5,825 | 4,484 | |||||||||||
Capital expenditures | 22,948 | 24,358 | |||||||||||
Goodwill and intangible assets, net | 0 | 0 | 0 | 0 | |||||||||
Total assets | 219,376 | 195,358 | 219,376 | 195,358 | |||||||||
Specialty Wax [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 30,371 | 23,743 | |||||||||||
Operating profit before depreciation and amortization | 3,043 | 4,549 | |||||||||||
Operating profit (loss) | (865) | (1) | |||||||||||
Profit (loss) before taxes | 10,675 | (195) | |||||||||||
Depreciation and amortization | 3,908 | 4,550 | |||||||||||
Capital expenditures | 17,547 | 6,889 | |||||||||||
Goodwill and intangible assets, net | 44,467 | 46,347 | 44,467 | 46,347 | |||||||||
Total assets | $ 113,676 | $ 86,076 | $ 113,676 | $ 86,076 | |||||||||
[1] | As discussed in Note 11, in July 2016 AMAK issued four million shares. As a result of the equity issuance, our share of the net assets of AMAK increased approximately $3.2 million which we recognized as a gain. | ||||||||||||
[2] | On May 2, 2016, we purchased the idle BASF facility adjacent to our TC facility. As discussed in Note 2, we recorded a bargain purchase gain of approximately $11.5 million on the transaction. |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[3] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
NET INCOME PER COMMON SHARE [Abstract] | |||||||||||||||||||||
Net income | $ 19,428 | $ 18,598 | $ 15,571 | ||||||||||||||||||
Basic earnings per common share [Abstract] | |||||||||||||||||||||
Weighted average shares outstanding (in shares) | 24,284,000 | 24,370,000 | 24,188,000 | ||||||||||||||||||
Per share amount (in dollars per share) | $ (0.03) | $ 0.12 | $ 0.42 | $ 0.30 | $ 0.05 | $ 0.21 | $ 0.26 | $ 0.24 | $ 0.80 | [1] | $ 0.76 | [1] | $ 0.64 | ||||||||
Diluted earnings per common share [Abstract] | |||||||||||||||||||||
Weighted average shares outstanding (in shares) | 24,982,000 | 25,181,000 | 24,896,000 | ||||||||||||||||||
Per share amount (in dollars per share) | $ (0.03) | $ 0.11 | $ 0.41 | $ 0.29 | $ 0.05 | $ 0.21 | $ 0.25 | $ 0.23 | $ 0.78 | [1] | $ 0.74 | [1] | $ 0.63 | ||||||||
Weighted average shares-denominator basic computation (in shares) | 24,284,000 | 24,370,000 | 24,188,000 | ||||||||||||||||||
Unvested restricted stock grant (in shares) | 310,000 | 141,000 | 0 | ||||||||||||||||||
Effect of dilutive stock options (in shares) | 388,000 | 670,000 | 708,000 | ||||||||||||||||||
Weighted average shares, as adjusted denominator diluted computation (in shares) | 24,982,000 | 25,181,000 | 24,896,000 | ||||||||||||||||||
Potential common stock shares issuable upon exercise of options (in shares) | 1,348,437 | 1,376,437 | 1,598,191 | ||||||||||||||||||
Treasury of TOCCO included in earnings per share calculation (in shares) | 284,011 | 300,000 | 300,000 | ||||||||||||||||||
[1] | Basic and diluted earnings per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. | ||||||||||||||||||||
[2] | As discussed in Note 11, in July 2016 AMAK issued four million shares. As a result of the equity issuance, our share of the net assets of AMAK increased approximately $3.2 million which we recognized as a gain. | ||||||||||||||||||||
[3] | On May 2, 2016, we purchased the idle BASF facility adjacent to our TC facility. As discussed in Note 2, we recorded a bargain purchase gain of approximately $11.5 million on the transaction. |
QUARTERLY RESULTS OF OPERATIO71
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jul. 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||
Quarterly results of operations [Abstract] | ||||||||||||||||||||||
Revenues | $ 54,203 | $ 57,142 | $ 48,854 | $ 52,200 | $ 60,545 | $ 66,938 | $ 59,350 | $ 55,143 | $ 212,399 | $ 241,976 | $ 289,643 | |||||||||||
Gross profit | 7,652 | 8,905 | 11,574 | 11,771 | 11,257 | 16,035 | 14,594 | 15,123 | 39,902 | 57,009 | 43,503 | |||||||||||
Net Income | $ (847) | $ 2,799 | $ 10,252 | $ 7,224 | $ 1,122 | $ 5,318 | $ 6,374 | $ 5,784 | $ 19,428 | $ 18,598 | $ 15,571 | |||||||||||
Basic EPS (in dollars per share) | $ (0.03) | [3] | $ 0.12 | [3] | $ 0.42 | [3] | $ 0.30 | [3] | $ 0.05 | [3] | $ 0.21 | [3] | $ 0.26 | [3] | $ 0.24 | [3] | $ 0.80 | [3] | $ 0.76 | [3] | $ 0.64 | |
Diluted EPS (in dollars per share) | $ (0.03) | [3] | $ 0.11 | [3] | $ 0.41 | [3] | $ 0.29 | [3] | $ 0.05 | [3] | $ 0.21 | [3] | $ 0.25 | [3] | $ 0.23 | [3] | $ 0.78 | [3] | $ 0.74 | [3] | $ 0.63 | |
Bargain purchase gain from acquisition | $ 11,549 | $ 0 | $ 0 | |||||||||||||||||||
Shares issued by AMAK (in shares) | 4 | |||||||||||||||||||||
Gain from equity issuance by AMAK | $ 3,168 | $ 0 | $ 0 | |||||||||||||||||||
[1] | As discussed in Note 11, in July 2016 AMAK issued four million shares. As a result of the equity issuance, our share of the net assets of AMAK increased approximately $3.2 million which we recognized as a gain. | |||||||||||||||||||||
[2] | On May 2, 2016, we purchased the idle BASF facility adjacent to our TC facility. As discussed in Note 2, we recorded a bargain purchase gain of approximately $11.5 million on the transaction. | |||||||||||||||||||||
[3] | Basic and diluted earnings per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting fees | $ 33,000 | $ 25,000 | $ 52,000 |
Outstanding liability payable | 0 | 0 | |
Chairman [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting fees | 73,000 | 37,000 | |
Outstanding liability payable | $ 0 | $ 0 | |
Period of consulting agreement | 3 years |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
DERIVATIVE INSTRUMENTS [Abstract] | |||
Feedstock and natural gas usage to operating expenses | 62.20% | 69.30% | 78.00% |
Derivative [Line Items] | |||
Unrealized gain (loss) | $ 119 | $ 381 | $ (376) |
Interest expense reclassified from other comprehensive income (loss) | 0 | 0 | 378 |
Unrealized loss associated with the swap recognized in the Statement of Income | 378 | ||
Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Term loan in pay fixed, receive variable interest rate swap | 10,000 | ||
Term loan secured by plant, pipeline and equipment | 14,000 | ||
Notional amount | $ 1,750 | ||
Derivative, variable interest rate | 5.83% | ||
Interest expense reclassified from other comprehensive income (loss) | $ 0 | 0 | 378 |
Fair value of derivative liability | 58 | 177 | |
Not Designated as Hedging Instrument [Member] | Commodity Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Realized gain (loss) | 0 | (180) | (452) |
Unrealized gain (loss) | 0 | 180 | (132) |
Net loss | $ 0 | $ 0 | $ (584) |
POST RETIREMENT OBLIGATIONS (De
POST RETIREMENT OBLIGATIONS (Details) - Postretirement Benefits [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2008 | |
Nicholas Carter [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Additional benefits accrued | $ 265,000 | ||
Post-retirement benefits paid | 12,000 | $ 6,000 | |
Mr. Hatem El Khalidi [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Monthly post retirement benefit | 6,000 | ||
Monthly post retirement benefit payable after death to spouse | 4,000 | ||
Additional benefits accrued | $ 382,000 | ||
Outstanding liability | 918,000 | ||
Payments relate to post-retirement obligation | 0 | ||
Retirement bonus outstanding | $ 31,500 | ||
Number of years service | 42 years | ||
Retirement bonus per service year | $ 750 |
VALUATION AND QUALIFYING ACCO75
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Deferred Tax Asset [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | $ 376,037 | $ 376,037 | $ 446,919 |
Charged (credited) to earnings | 0 | 0 | (122,500) |
Deductions | 0 | 0 | 51,618 |
Ending balance | 376,037 | 376,037 | 376,037 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | 210,000 | 210,000 | 210,000 |
Charged (credited) to earnings | 183,339 | 0 | 0 |
Deductions | (93,339) | 0 | 0 |
Ending balance | $ 210,000 | $ 210,000 | $ 210,000 |