Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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 Common Stock, Shares Outstanding | 24,322,625 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 2,568 | $ 3,028 |
Trade receivables, net | 27,421 | 25,779 |
Insurance receivable | 742 | 0 |
Inventories | 15,691 | 18,450 |
Prepaid expenses and other assets | 5,131 | 4,424 |
Taxes receivable | 5,481 | 5,584 |
Total current assets | 57,034 | 57,265 |
Plant, pipeline and equipment, net | 190,139 | 181,742 |
Goodwill | 21,798 | 21,798 |
Intangible assets, net | 20,343 | 20,808 |
Investment in AMAK | 45,224 | 45,125 |
Mineral properties in the United States | 588 | 588 |
TOTAL ASSETS | 335,126 | 327,326 |
Current Liabilities | ||
Accounts payable | 14,888 | 18,347 |
Accrued liabilities | 4,229 | 3,961 |
Current portion of post-retirement benefit | 302 | 305 |
Current portion of long-term debt | 8,061 | 8,061 |
Current portion of other liabilities | 889 | 870 |
Total current liabilities | 28,369 | 31,544 |
Long-term debt, net of current portion | 99,031 | 91,021 |
Post-retirement benefit, net of current portion | 897 | 897 |
Other liabilities, net of current portion | 1,374 | 1,611 |
Deferred income taxes | 17,670 | 17,242 |
Total liabilities | 147,341 | 142,315 |
EQUITY | ||
Common stock-authorized 40 million shares of $.10 par value; issued 24.5 million in 2018 and 2017 and outstanding 24.3 million shares in 2018 and 2017 | 2,451 | 2,451 |
Additional paid-in capital | 56,422 | 56,012 |
Common stock in treasury, at cost | (184) | (196) |
Retained earnings | 128,807 | 126,455 |
Total Trecora Resources Stockholders' Equity | 187,496 | 184,722 |
Noncontrolling Interest | 289 | 289 |
Total equity | 187,785 | 185,011 |
TOTAL LIABILITIES AND EQUITY | $ 335,126 | $ 327,326 |
CONSOLIDATED BALANCE SHEETS (u3
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
EQUITY | ||
Common stock, shares 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 | 24.5 |
Common stock, shares outstanding (in shares) | 24.3 | 24.3 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Petrochemical and Product Sales | $ 66,699 | $ 50,899 |
Processing Fees | 5,042 | 4,643 |
Total Revenues | 71,741 | 55,542 |
OPERATING COSTS AND EXPENSES | ||
Cost of Sales and Processing (including depreciation and amortization of $2,830 and $2,383, respectively) | 61,601 | 44,924 |
GROSS PROFIT | 10,140 | 10,618 |
GENERAL AND ADMINISTRATIVE EXPENSES | ||
General and Administrative | 6,335 | 6,221 |
Depreciation | 196 | 205 |
Total General and Administrative Expenses | 6,531 | 6,426 |
OPERATING INCOME | 3,609 | 4,192 |
OTHER INCOME (EXPENSE) | ||
Interest Income | 7 | 2 |
Interest Expense | (878) | (636) |
Equity in Earnings (Losses) of AMAK | 230 | (966) |
Miscellaneous expense | (26) | (44) |
Total other income (expense) | (667) | (1,644) |
INCOME BEFORE INCOME TAXES | 2,942 | 2,548 |
INCOME TAXES | 590 | 1,061 |
NET INCOME | 2,352 | 1,487 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 0 | 0 |
NET INCOME ATTRIBUTABLE TO TRECORA RESOURCES | $ 2,352 | $ 1,487 |
Basic Earnings per Common Share | ||
Net Income Attributable to Trecora Resources (in dollars per share) | $ 0.10 | $ 0.06 |
Basic Weighted Average Number of Common Shares Outstanding (in shares) | 24,343 | 24,240 |
Diluted Earnings per Common Share | ||
Net Income Attributable to Trecora Resources (in dollars per share) | $ 0.09 | $ 0.06 |
Diluted Weighted Average Number of Common Shares Outstanding (in shares) | 25,231 | 25,054 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING COSTS AND EXPENSES | ||
Depreciation and amortization included in the cost of petrochemical, product sales, and processing | $ 2,830 | $ 2,383 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total [Member] | Non-Controlling Interest [Member] | Total |
Balance at Dec. 31, 2017 | $ 2,451 | $ 56,012 | $ (196) | $ 126,455 | $ 184,722 | $ 289 | $ 185,011 |
Balance (in shares) at Dec. 31, 2017 | 24,311 | 24,300 | |||||
Stock Options | |||||||
Issued to Directors | $ 0 | (10) | 0 | 0 | (10) | 0 | $ (10) |
Issued to Employees | 0 | 154 | 0 | 0 | 154 | 0 | 154 |
Restricted Stock Units | |||||||
Issued to Directors | 0 | 93 | 0 | 0 | 93 | 0 | 93 |
Issued to Employees | 0 | 349 | 0 | 0 | 349 | 0 | 349 |
Common Stock | |||||||
Issued to Directors | 0 | (63) | 24 | 0 | (39) | 0 | (39) |
Issued to Employees | 0 | (39) | 44 | 0 | 5 | 0 | 5 |
Stock Exchange (see Notes 8 & 16) | 0 | (65) | (65) | 0 | (130) | 0 | (130) |
Warrants | 0 | (9) | 9 | 0 | 0 | 0 | 0 |
Net Income | 0 | 0 | 0 | 2,352 | 2,352 | 0 | 2,352 |
Balance at Mar. 31, 2018 | $ 2,451 | $ 56,422 | $ (184) | $ 128,807 | $ 187,496 | $ 289 | $ 187,785 |
Balance (in shares) at Mar. 31, 2018 | 24,311 | 24,300 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net Income | $ 2,352 | $ 1,487 |
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 2,561 | 2,123 |
Amortization of Intangible Assets | 465 | 465 |
Unrealized Gain on Derivative Instruments | 0 | (24) |
Share-based Compensation | 592 | 633 |
Deferred Income Taxes | 428 | 1,178 |
Postretirement Obligation | (3) | (2) |
Equity in (Earnings) Losses of AMAK | (230) | 966 |
Bad Debt Expense | 128 | 0 |
Amortization of Loan Fees | 93 | 68 |
Changes in Operating Assets and Liabilities: | ||
Increase in Trade Receivables | (1,770) | (2,056) |
Increase in Insurance Receivables | (742) | 0 |
(Increase) Decrease in Taxes Receivable | 102 | (160) |
Decrease in Inventories | 2,759 | 2,914 |
(Increase) Decrease in Prepaid Expenses and Other Assets | (803) | 79 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | (3,190) | 989 |
Increase (Decrease) in Other Liabilities | (7) | 70 |
Net Cash Provided by Operating Activities | 2,735 | 8,730 |
INVESTING ACTIVITIES | ||
Additions to Plant, Pipeline and Equipment | (11,028) | (13,881) |
Advances to AMAK, net | (44) | (26) |
Cash Used in Investing Activities | (11,072) | (13,907) |
FINANCING ACTIVITIES | ||
Payments Related to Tax Withholding for Stock-based Compensation | (40) | 0 |
Addition to Long-Term Debt | 10,000 | 5,000 |
Repayment of Long-Term Debt | (2,083) | (4,167) |
Net Cash Provided by Financing Activities | 7,877 | 833 |
NET DECREASE IN CASH | (460) | (4,344) |
CASH AT BEGINNING OF PERIOD | 3,028 | 8,389 |
CASH AT END OF PERIOD | 2,568 | 4,045 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest | 1,124 | 936 |
Cash payments for taxes, net of refunds | 0 | 0 |
Supplemental disclosure of non-cash items: | ||
Capital expansion amortized to depreciation expense | 210 | 161 |
Stock exchange (Notes 8 & 16) | $ 130 | $ 0 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2018 | |
GENERAL [Abstract] | |
GENERAL | 1. GENERAL Organization Trecora Resources (the "Company"), was incorporated in the State of Delaware in 1967. Our principal business activities are the manufacturing of various specialty hydrocarbons and synthetic waxes and the provision of custom processing services. Unless the context requires otherwise, references to "we," "us," "our," and the "Company" are intended to mean Trecora Resources and its subsidiaries. This document includes the following abbreviations: (1) TREC – Trecora Resources (2) TOCCO – Texas Oil & Chemical Co. II, Inc. – Wholly owned subsidiary of TREC and parent of SHR and TC (3) SHR – South Hampton Resources, Inc. – Petrochemical segment and parent of GSPL (4) GSPL – Gulf State Pipe Line Co, Inc. – Pipeline support for the petrochemical segment (5) TC – Trecora Chemical, Inc. – Specialty wax segment (6) AMAK – Al Masane Al Kobra Mining Company – Mining equity investment – 33% ownership (7) PEVM – Pioche Ely Valley Mines, Inc. – Inactive mine - 55% ownership Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with the financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited condensed financial statements included in this document have been prepared on the same basis as the annual condensed financial statements and in management's opinion reflect all adjustments, including normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the interim periods presented. We have made estimates and judgments affecting the amounts reported in this document. The actual results that we experience may differ materially from our estimates. In the opinion of management, the disclosures included in these financial statements are adequate to make the information presented not misleading. Operating results for the three months ended March 31, 2018, are not necessarily indicative of results for the year ending December 31, 2018. We currently operate in two segments, specialty petrochemical products and specialty synthetic waxes. All revenue originates from United States' sources, and all long-lived assets owned are located in the United States. In addition, we own a 33% interest in AMAK, a Saudi Arabian closed joint stock company which owns, operates and is developing mining assets in Saudi Arabia. We account for our investment under the equity method of accounting. See Note 16. Revenue Recognition The Company adopted Financial Accounting Standards Board ("FASB") ASC Topic 606 ("ASC 606"), Revenue from Contracts with Customers and its amendments Revenue The Company applied the modified retrospective approach under ASC 606 which allows for the cumulative effect of adopting the new guidance on the date of initial application. Use of the modified retrospective approach means the Company's comparative periods prior to initial application are not restated. The initial application was applied to all contracts at the date of the initial application. The Company has determined that the adjustments using the modified retrospective approach did not have a material impact on the date of the initial application along with the disclosure of the effect on prior periods. Accounting Policy Beginning on January 1, 2018, revenue is measured based on a consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. In evaluating when a customer has control of the asset we primarily consider whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer has accepted delivery and a right to payment exists. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales and processing. The Company does not offer material rights of return or service-type warranties. For the three months ended March 31, 2017 the Company recognized revenue according to FASB ASC Topic 605, " Revenue Recognition" Nature of goods and services The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, disaggregation of revenues, and contract balance disclosures, see Note 14. Petrochemical segment The petrochemical segment of the Company produces eight high purity hydrocarbons and other petroleum based products including isopentane, normal pentane, isohexane and hexane. These products are used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, crude oil from the Canadian tar sands, and in the catalyst support industry. SHR's petrochemical products are typically transported to customers by rail car, tank truck, iso-container and ship. Product Sales - The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company's product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected 30 to 60 days subsequent to point of sale. Processing Fees - The Company's promised services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements the customer retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Specialty Wax segment The specialty wax segment of the Company manufactures and sells specialty polyethylene and poly alpha olefin waxes and also provides custom processing services for customers. Product Sales - The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company's product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Processing Fees - The Company's promised services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements and Purchase Order Arrangements, the customer typically retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction and Purchase Order Arrangement is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT 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 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
TRADE RECEIVABLES
TRADE RECEIVABLES | 3 Months Ended |
Mar. 31, 2018 | |
TRADE RECEIVABLES [Abstract] | |
TRADE RECEIVABLES | 3. TRADE RECEIVABLES Trade receivables, net, consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Trade receivables $ 27,849 $ 26,079 Less allowance for doubtful accounts (428 ) (300 ) Trade receivables, net $ 27,421 $ 25,779 Trade receivables serves as collateral for our amended and restated credit agreement. See Note 10. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
PREPAID EXPENSES AND OTHER ASSETS [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | 4. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Prepaid license $ 1,919 $ 1,919 Prepaid catalyst 723 779 Prepaid insurance 92 - Spare parts 1,100 954 Other prepaid expenses and assets 1,297 772 Total $ 5,131 $ 4,424 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2018 | |
INVENTORIES [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories included the following: March 31, 2018 December 31, 2017 (thousands of dollars) Raw material $ 2,612 $ 3,703 Work in process 51 27 Finished products 13,028 14,720 Total inventory $ 15,691 $ 18,450 Inventory serves as collateral for our amended and restated credit agreement. See Note 10. Inventory included petrochemical products in transit valued at approximately $4.0 million and $3.7 million at March 31, 2018, and December 31, 2017, respectively. |
PLANT, PIPELINE AND EQUIPMENT
PLANT, PIPELINE AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2018 | |
PLANT, PIPELINE AND EQUIPMENT [Abstract] | |
PLANT, PIPELINE AND EQUIPMENT | 6. PLANT, PIPELINE AND EQUIPMENT Plant, pipeline and equipment consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Platinum catalyst metal $ 1,612 $ 1,612 Land 5,428 5,428 Plant, pipeline and equipment 188,529 186,946 Construction in progress 60,441 50,996 Total plant, pipeline and equipment 256,010 244,982 Less accumulated depreciation (65,871 ) (63,240 ) Net plant, pipeline and equipment $ 190,139 $ 181,742 Plant, pipeline, and equipment serve as collateral for our amended and restated credit agreement. See Note 10. Interest capitalized for construction was approximately $304,000 and $374,000 for the three months ended March 31, 2018 and 2017, respectively. Labor capitalized for construction was approximately $1.2 million and $0.8 million for the three months ended March 31, 2018, and 2017, respectively. Construction in progress during the first three months of 2018 included equipment purchased for various equipment updates at the TC facility; new reformer unit, tankage upgrades, and an addition to the rail spur at SHR. Amortization relating to the platinum catalyst which is included in cost of sales was approximately $0 and $25,000 for the three months ended March 31, 2018 and 2017, respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2018 | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | 7. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill and intangible assets were recorded in relation to the acquisition of TC on October 1, 2014. The following tables summarize the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): March 31, 2018 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,932 ) $ 12,920 Non-compete agreements 94 (66 ) 28 Licenses and permits 1,471 (416 ) 1,055 Developed technology 6,131 (2,146 ) 3,985 24,548 (6,560 ) 17,988 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,560 ) $ 20,343 December 31, 2017 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,651 ) $ 13,201 Non-compete agreements 94 (61 ) 33 Licenses and permits 1,471 (390 ) 1,081 Developed technology 6,131 (1,993 ) 4,138 24,548 (6,095 ) 18,453 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,095 ) $ 20,808 Amortization expense for intangible assets included in cost of sales for the three months ended March 31, 2018, and 2017, was approximately $465,000 and $465,000, respectively. Based on identified intangible assets that are subject to amortization as of March 31, 2018, we expect future amortization expenses for each period to be as follows (in thousands): Total Remainder of 2018 2019 2020 2021 2022 2023 Thereafter Customer relationships $ 12,920 $ 843 $ 1,123 $ 1,123 1,123 1,123 1,123 $ 6,462 Non-compete agreements 28 14 14 - - - - - Licenses and permits 1,055 79 106 106 101 86 86 491 Developed technology 3,985 460 613 613 613 613 613 460 Total future amortization expense $ 17,988 $ 1,396 $ 1,856 $ 1,842 $ 1,837 $ 1,822 $ 1,822 $ 7,413 |
NET INCOME PER COMMON SHARE ATT
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES | 3 Months Ended |
Mar. 31, 2018 | |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES [Abstract] | |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES | 8. NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES The following table (in thousands, except per share amounts) sets forth the computation of basic and diluted net income per share attributable to Trecora Resources for the three months ended March 31, 2018 and 2017, respectively. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Per Share Per Share Income Shares Amount Income Shares Amount Basic Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 24,343 $ 0.10 $ 1,487 24,240 $ 0.06 Unvested restricted stock units 403 321 Dilutive stock options outstanding 485 493 Diluted Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 25,231 $ 0.09 $ 1,487 25,054 $ 0.06 At March 31, 2018 and 2017, respectively, 1,242,160 and 1,344,087 potential common stock shares, respectively were issuable upon the exercise of options and warrants. In first quarter 2018, we completed an exchange of shares with some Saudi Arabian shareholders whereby they traded 65,000 shares of TREC stock in exchange for 24,489 shares of our AMAK stock. The 65,000 shares were accounted for as treasury stock. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2018 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | 9. ACCRUED LIABILITIES Accrued liabilities consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Accrued state taxes $ 332 $ 272 Accrued property taxes 703 - Accrued payroll 983 1,407 Accrued interest 31 30 Accrued officer compensation 300 500 Other 1,880 1,752 Total $ 4,229 $ 3,961 |
LIABILITIES AND LONG-TERM DEBT
LIABILITIES AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2018 | |
LIABILITIES AND LONG-TERM DEBT [Abstract] | |
LIABILITIES AND LONG-TERM DEBT | 10. LIABILITIES AND LONG-TERM DEBT On October 1, 2014, we entered into an Amended and Restated Credit Agreement ("ARC") with the lenders which from time to time are parties to the ARC and Bank of America, N.A., as Administrative Agent for the Lenders, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Lead Arranger. On March 28, 2017, we entered into a Second Amendment to the ARC with terms which increase the Maximum Consolidated Leverage Ratio financial covenant of 3.25x to 4.00x at March 31, 2017, and 4.25x at June 30, 2017, before stepping down to 3.75x at September 30, 2017, 3.50x at December 31, 2017, and reverting to the original financial covenant of 3.25x at March 31, 2018. For Fiscal Quarter Ending Maximum Consolidated Leverage Ratio March 31, 2017 4.00 to 1.00 June 30, 2017 4.25 to 1.00 September 30, 2017 3.75 to 1.00 December 31, 2017 3.50 to 1.00 March 31, 2018 and each fiscal quarter thereafter 3.25 to 1.00 The Second Amendment also reduces the Minimum Consolidated Fixed Charge Coverage Ratio of 1.25x to 1.10x at March 31, 2017, 1.05x at June 30, 2017 and September 30, 2017, 1.10x at December 31, 2017, before reverting to the original financial covenant of 1.25x at March 31, 2018. For Fiscal Quarter Ending Minimum Consolidated Fixed Charge Coverage Ratio March 31, 2017 1.10 to 1.00 June 30, 2017 1.05 to 1.00 September 30, 2017 1.05 to 1.00 December 31, 2017 1.10 to 1.00 March 31, 2018 and each fiscal quarter thereafter 1.25 to 1.00 Also, under the terms of the Second Amendment, two additional levels of pricing were added – levels 4 and 5. Level Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Commitment Fee 1 Less than 1.50 to 1.00 2.00% 1.00% 0.25% 2 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00 2.25% 1.25% 0.25% 3 Greater than or equal to 2.00 to 1.00 but less than 3.00 to 1.00 2.50% 1.50% 0.375% 4 Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00 2.75% 1.75% 0.375% 5 Greater than or equal to 3.50 to 1.00 3.00% 2.00% 0.375% We were in compliance with all covenants at March 31, 2018. On July 25, 2017, TOCCO, SHR, GSPL, and TC (SHR, GSPL and TC collectively, the "Guarantors") entered into a Third Amendment to Amended and Restated Credit Agreement ("3rd Amendment") with the lenders which from time to time are parties to the Amended and Restated Credit Agreement (collectively, the "Lenders") and Bank of America, N.A., a national banking association, as Administrative Agent for the Lenders. The 3rd Amendment increased the Revolving Facility from $40.0 million to $60.0 million. There were no other changes to the Revolving Facility. Under the ARC as amended, we have a $60.0 million revolving line of credit which matures on October 1, 2019. As of March 31, 2018, and December 31, 2017, there was a long-term amount of $45.0 million and $35.0 million outstanding, respectively. The interest rate on the loan varies according to several options. Interest on the loan is paid monthly and a commitment fee of between 0.25% and 0.375% is due quarterly on the unused portion of the loan. At March 31, 2018, approximately $14.9 million was available to be drawn; however, only $10.0 million could be drawn while maintaining compliance with our covenants. Under the ARC, we also borrowed $70.0 million in a single advance term loan (the "Acquisition Loan") to partially finance the acquisition of TC. Interest on the Acquisition Loan is payable quarterly using a ten-year commercial style amortization. Principal is also payable on the last business day of each March, June, September and December in an amount equal to $1.8 million, 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 Loan. At March 31, 2018, there was a short-term amount of $7.0 million and a long-term amount of $38.5 million outstanding. At December 31, 2017, there was a short-term amount of $7.0 million and a long-term amount of $40.3 million outstanding. Under the ARC, we also had the right to borrow $25.0 million in a multiple advance loan ("Term Loans"). Borrowing availability under the Term Loans ended on December 31, 2015. The Term Loans converted from a multiple advance loan to a "mini-perm" loan once certain obligations were fulfilled 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. Interest on the Term Loans is paid monthly. Principal is also payable on the last business day of each March, June, September and December in an amount equal to $0.3 million, 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 Term Loans. At March 31, 2018, there was a short-term amount of $1.3 million and a long-term amount of $15.7 million outstanding. At December 31, 2017, there was a short-term amount of $1.3 million and a long-term amount of $16.0 million outstanding. Debt issuance costs of approximately $0.4 million and $0.5 million for the periods ended March 31, 2018, and December 31, 2017, have been netted against outstanding loan balances. The interest rate on all of the above loans varies according to several options as defined in the ARC. At March 31, 2018, and December 31, 2017, the rate was 4.38% and 4.07%, respectively. The following table summarizes the carrying amounts and debt issuance costs of our long-term debt (in thousands): March 31, 2018 December 31, 2017 Acquisition loan $ 45,500 $ 47,250 Term loan 17,000 17,333 Revolving facility 45,000 35,000 Total 107,500 99,583 Debt issuance costs (408 ) (501 ) Total long-term debt $ 107,092 $ 99,082 Less current portion including loan fees 8,061 8,061 Total long-term debt, less current portion including loan fees $ 99,031 $ 91,021 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 11. FAIR VALUE MEASUREMENTS The carrying value of cash, trade receivables, 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 reflects 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, trade receivables, accounts payable, accrued liabilities, other liabilities and variable rate long term debt. The fair value of the derivative instruments are described below. Interest Rate Swap In March 2008 we entered into an interest rate swap agreement with Bank of America related to a $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 London InterBank Offered Rate ("LIBOR") rate. We had designated the interest rate swap as a cash flow hedge under ASC Topic 815, Derivatives and Hedging We assessed 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). 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. The agreement terminated in December 2017; therefore, there was no outstanding liability at March 31, 2018, or December 31, 2017. See discussion of our derivative instruments in Note 12. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2018 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
DERIVATIVE INSTRUMENTS | 12. DERIVATIVE INSTRUMENTS Interest Rate Swap 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 terminated on December 15, 2017. We received credit for payments of variable rate interest made on the term loan at the loan's variable rates, which are based upon the LIBOR, and paid 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. Due to the new debt agreements associated with the Acquisition, we believed that the hedge was 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. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 13. STOCK-BASED COMPENSATION Stock-based compensation of approximately $592,000 and $633,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized. Restricted Stock Awards On January 17, 2018, we awarded 251 shares of restricted stock to an officer at a grant date price of $13.85. The stock was immediately vested. Compensation expense recognized during the three months ended March 31, 2018, was $5,000. Restricted Stock Unit Awards On February 20, 2018, we awarded approximately 102,000 shares of restricted stock units to officers at a grant date price of $12.15. One-half of the restricted stock units vest ratably over three years. The other half vests at the end of 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 the three months ended March 31, 2018, was approximately $36,000. Officer compensation of approximately $112,000 and $0 during the three months March 31, 2018, and 2017, respectively, was recognized related to restricted stock unit awards granted to officers vesting through 2020. Director compensation of approximately $84,000 and $81,000 during the three months March 31, 2018, and 2017, respectively, was recognized related to restricted stock unit awards granted to directors vesting through 2020. Officer compensation of approximately $97,000 and $105,000 was recognized during the three months ended March 31, 2018, and 2017, respectively, related to restricted stock unit awards granted to officers. One-half of the restricted stock units vest ratably over three 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. Employee compensation of approximately $104,000 and $108,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to restricted stock units with a four year vesting period which was awarded to officers. This restricted stock vests through 2019. Restricted stock units activity in the first three months of 2018 was as follows: Shares of Restricted Stock Units Weighted Average Grant Date Price per Share Outstanding at January 1, 2018 387,702 $ 11.39 Granted 102,317 $ 12.15 Forfeited (34,585 ) $ 10.97 Vested (51,998 ) $ 12.34 Outstanding at March 31, 2018 403,436 $ 11.50 Stock Option and Warrant Awards A summary of the status of our stock option awards and warrants is presented below: Number of Stock Options & Warrants Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Outstanding at January 1, 2018 1,323,587 $ 7.82 Granted -- -- Exercised (81,427 ) 6.26 Forfeited -- -- Outstanding at March 31, 2018 1,242,160 $ 7.93 4.1 Exercisable at March 31, 2018 1,042,160 $ 8.80 4.7 The fair value of the options granted were calculated using the Black Scholes option valuation model with the assumptions as disclosed in prior quarterly and annual filings. Directors' compensation of approximately $0 and $30,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to options to purchase shares vesting through 2017. Employee compensation of approximately $154,000 and $309,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to options with a four- year vesting period which were awarded to officers and key employees. These options vest through 2018. Post-retirement compensation of approximately $0 and $0 was recognized during the three months ended March 31, 2018, and 2017, related to options awarded to Mr. Hatem El Khalidi in July 2009. On May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited these 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. The Company is litigating its right to withdraw the options and benefits and as such, these options and benefits continue to be shown as outstanding. See further discussion in Note 18. See the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for additional information. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION 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. Segment data may include rounding differences. Our specialty petrochemical segment includes SHR and GSPL. Our specialty synthetic wax segment is TC. We also separately identify our corporate overhead which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Three Months Ended March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 60,285 $ 6,383 $ - $ 31 $ 66,699 Processing fees 2,028 3,212 - (198 ) 5,042 Total revenues 62,313 9,595 - (167 ) 71,741 Operating profit (loss) before depreciation and amortization 8,393 390 (2,148 ) - 6,635 Operating profit (loss) 6,679 (914 ) (2,156 ) - 3,609 Profit (loss) before taxes 6,054 (1,181 ) (1,931 ) - 2,942 Depreciation and amortization 1,714 1,304 8 - 3,026 Capital expenditures 10,283 745 - - 11,028 Three Months Ended March 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 44,391 $ 6,508 $ - - $ 50,899 Processing fees 1,488 3,155 - - 4,643 Total revenues 45,879 9,663 - - 55,542 Operating profit (loss) before depreciation and amortization 8,214 745 (2,179 ) - 6,780 Operating profit (loss) 6,658 (271 ) (2,195 ) - 4,192 Profit (loss) before taxes 6,005 (290 ) (3,167 ) - 2,548 Depreciation and amortization 1,556 1,016 16 - 2,588 Capital expenditures 8,756 5,125 - - 13,881 March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 21,495 $ 3,127 $ - $ 25 $ 24,647 Trade receivables, processing fees 1,018 1,841 - (85 ) 2,774 Goodwill and intangible assets, net - 42,141 - - 42,141 Total assets 275,063 117,297 97,543 (154,777 ) 335,126 December 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 20,211 $ 2,671 $ - $ - $ 22.882 Trade receivables, processing fees 983 1,914 - - 2,897 Goodwill and intangible assets, net - 42,606 - - 42,606 Total assets 265,213 117,579 97,880 (153,346 ) 327,326 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 15. INCOME TAXES 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 that the December 31, 2014, tax return was selected for audit. In April 2017 the audit was expanded to include the year ended December 31, 2015, to review the refund claim related to research and development activities. We received notification from the IRS in March 2018 that audit was complete and acceptance of the refund claims resulting from the R&D credit for approximately $350,000. We also received notification that Texas will audit our R&D credit calculations for 2014 and 2015. We are in the process of submitting additional documentation to Texas. We do not expect any changes related to the Texas audit. Tax returns for various jurisdictions remain open for examination for the years 2014 through 2017. As of March 31, 2018, and December 31, 2017, we recognized no adjustment for uncertain tax positions. As of March 31, 2018, and December 31, 2017, no interest or penalties related to uncertain tax positions have been accrued. The effective tax rate varies from the federal statutory rate of 21% primarily as a result of state tax expense and stock based compensation for the three months ended March 31, 2018. The effective tax rate varies from the federal statutory rate of 35% primarily as a result of state tax expense and stock option based compensation offset by the manufacturing deduction for the three months ended March 31, 2017. We continue to maintain a valuation allowance against certain deferred tax assets where realization is not certain. On December 22, 2017, Public Law No. 115-97 known as the Tax Cuts and Jobs Act (TCJA) was enacted. The TCJA includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. federal corporate income tax rate from a maximum of 35% to a flat 21% for tax years effective January 1, 2018. The TCJA also implements a territorial tax system, provides for a one-time deemed repatriation tax on unrepatriated foreign earnings, eliminates the alternative minimum tax (AMT), makes AMT credit carryforwards refundable, and permits the acceleration of depreciation for certain assets placed into service after September 27, 2017. In addition the TJCA creates prospective changes beginning in 2018, including repeal of the domestic manufacturing deduction, acceleration of tax revenue recognition, capitalization of research and development expenditures, additional limitations on executive compensation and limitations on the deductibility of interest. We have elected to recognize the income tax effects of the TCJA in our financial statements in accordance with Staff Accounting Bulletin 118 (SAB 118), which provides guidance for the application of ASC Topic 740 Income Taxes We have recognized the provisional tax impacts related to the acceleration of depreciation and included these amounts in our consolidated financial statements for the three months ended March 31, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the TCJA . We did not identify items for which the income tax effects of the TCJA have not been completed and a reasonable estimate could not be determined as of March 31, 2018, and December 31, 2017. Subsequent to quarter end, we received income tax refunds of approximately $4.4 million that were listed as income tax receivable at March 31, 2018. |
POST-RETIREMENT OBLIGATIONS
POST-RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2018 | |
POST-RETIREMENT OBLIGATIONS [Abstract] | |
POST-RETIREMENT OBLIGATIONS | 16. POST-RETIREMENT OBLIGATIONS In January 2008 an amended retirement agreement was entered into with Mr. Hatem El Khalidi; however, on May 9, 2010, the Board of Directors terminated the agreement due to actions of Mr. El Khalidi. See Notes 13 and 18. All amounts which have not met termination dates remain recorded until a resolution is achieved. As of March 31, 2018, and December 31, 2017, approximately $1.0 million remained outstanding and was included in post-retirement benefits. In July 2015 we entered into a retirement agreement with former CEO, Nicholas Carter. As of March 31, 2018, and December 31, 2017, approximately $0.2 million and $0.3 million, respectively, remained outstanding and was included in post-retirement obligations. See the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for additional information. |
INVESTMENT IN AMAK
INVESTMENT IN AMAK | 3 Months Ended |
Mar. 31, 2018 | |
INVESTMENT IN AMAK [Abstract] | |
INVESTMENT IN AMAK | 17. INVESTMENT IN AMAK In first quarter 2018, we completed an exchange of shares with some Saudi Arabian shareholders whereby they traded 65,000 shares of TREC stock in exchange for 24,489 shares of our AMAK stock. The 65,000 shares were accounted for as treasury stock. This transaction reduced our ownership percentage from 33.44% to 33.41%. As of March 31, 2018, and December 31, 2017, the Company had a non-controlling equity interest of 33.4% in AMAK of approximately $45.2 million and $45.1 million, respectively. This investment is accounted for under the equity method. There were no events or changes in circumstances that may have an adverse effect on the fair value of our investment in AMAK at March 31, 2018. AMAK's financial statements were 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 Three Months Ended March 31, 2018 2017 (thousands of dollars) Sales $ 14,087 $ 2,256 Gross profit (loss) 1,581 (1,307 ) General, administrative and other expenses 1,900 2,589 Net Loss $ (319 ) $ (3,896 ) Depreciation and amortization was $7.7 million and $0.5 million for the three months ended March 31, 2018, and 2017, respectively. Therefore, net income before depreciation and amortization was as follows: Three Months Ended March 31, 2018 2017 (thousands of dollars) Net income (loss) before depreciation and amortization $ 7,382 $ (3,369 ) Financial Position March 31, December 31, 2018 2017 (thousands of dollars) Current assets $ 33,273 $ 23,333 Noncurrent assets 228,733 237,875 Total assets $ 262,006 $ 261,208 Current liabilities $ 22,873 $ 24,439 Long term liabilities 71,520 68,837 Shareholders' equity 167,613 167,932 $ 262,006 $ 261,208 The equity in the income or loss of AMAK reflected on the consolidated statements of income for the three months ended March 31, 2018, and 2017, is comprised of the following: Three months ended March 31, 2018 2017 (thousands of dollars) AMAK Net Loss $ (319 ) $ (3,896 ) Company's share of loss reported by AMAK $ (107 ) $ (1,303 ) Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK 337 337 Equity in earnings (loss) of AMAK $ 230 $ (966 ) See our Annual Report on Form 10-K for the year ended December 31, 2017, for additional information. At March 31, 2018, and December 31, 2017, we had a receivable from AMAK of approximately $165,000 and $121,000, respectively, relating to unreimbursed travel and Board expenses which are included in prepaid and other assets. We did not advance any cash to AMAK during 2018. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS Consulting fees of approximately $27,000 were incurred during the three months ended March 31, 2017, from IHS Global FZ LLC of which Company director Gary K Adams held the position of Chief Advisor – Chemicals until April 1, 2017. Consulting fees of approximately $31,000 and $19,000 were incurred during the three months ended March 31, 2018, and 2017, respectively, from our Executive Chairman, 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. In March 2018, a new consulting agreement was entered into with Mr. Carter effective through December 31, 2018, unless otherwise agreed by the Company and Mr. Carter. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 19. 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, our guarantee is for approximately 135.33 million Saudi Riyals (US$36.1 million). The loan was necessary to continue construction of the AMAK facilities and provide working capital needs. We received no consideration in connection with extending the guarantee and did so to maintain and enhance the value of its investment. The total amount outstanding to the SIDF at March 31, 2018, was 305.0 million Saudi Riyals (US$81.3 million). AMAK has not made certain scheduled payments on their loan. They obtained a waiver from SIDF regarding the missed payments and are currently working with SIDF to renegotiate the terms and repayment schedule of the loan agreement. We do not believe that these events will result in any performance under our guarantee. Operating Lease Commitments We have operating leases for the rental of railcars, office space, and equipment with expiration dates through 2026. Rental expense for these operating leases for the three months ended March 31, 2018, and 2017, was $1.1 million and $0.8 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. The Trial Court dismissed all of Mr. El Khalidi's claims and causes of action with prejudice and the Ninth Court of Appeals affirmed. Mr. El Khalidi filed a petition for review with the Supreme Court of Texas, which was denied April 6, 2018. Mr. El Khalidi filed a motion for rehearing of his petition for review with the Supreme Court of Texas on April 23, 2018. 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. The Company is periodically named in legal actions arising from normal business activities. We evaluate the merits of these actions and, if we determine that an unfavorable outcome is probable and can be reasonably estimated, we will establish the necessary reserves. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future. Supplier Agreements From time to time, we may incur shortfall fees due to feedstock purchases being below the minimum amounts prescribed by our agreements with our suppliers. Shortfall fee expenses for the three months ended March 31, 2018, and 2017, were $0.1 million and $0.9 million, respectively. Environmental Remediation Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $149,000 and $165,000 for the three months ended March 31, 2018, and 2017, respectively. |
RECENT ACCOUNTING PRONOUNCEME27
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent 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 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
TRADE RECEIVABLES [Abstract] | |
Trade Receivables | Trade receivables, net, consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Trade receivables $ 27,849 $ 26,079 Less allowance for doubtful accounts (428 ) (300 ) Trade receivables, net $ 27,421 $ 25,779 |
PREPAID EXPENSES AND OTHER AS29
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
PREPAID EXPENSES AND OTHER ASSETS [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Prepaid license $ 1,919 $ 1,919 Prepaid catalyst 723 779 Prepaid insurance 92 - Spare parts 1,100 954 Other prepaid expenses and assets 1,297 772 Total $ 5,131 $ 4,424 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
INVENTORIES [Abstract] | |
Inventories | Inventories included the following: March 31, 2018 December 31, 2017 (thousands of dollars) Raw material $ 2,612 $ 3,703 Work in process 51 27 Finished products 13,028 14,720 Total inventory $ 15,691 $ 18,450 |
PLANT, PIPELINE AND EQUIPMENT (
PLANT, PIPELINE AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
PLANT, PIPELINE AND EQUIPMENT [Abstract] | |
Plant, Pipeline and Equipment | Plant, pipeline and equipment consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Platinum catalyst metal $ 1,612 $ 1,612 Land 5,428 5,428 Plant, pipeline and equipment 188,529 186,946 Construction in progress 60,441 50,996 Total plant, pipeline and equipment 256,010 244,982 Less accumulated depreciation (65,871 ) (63,240 ) Net plant, pipeline and equipment $ 190,139 $ 181,742 |
GOODWILL AND INTANGIBLE ASSET32
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
Summary of Intangible Assets by Major Class | The following tables summarize the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): March 31, 2018 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,932 ) $ 12,920 Non-compete agreements 94 (66 ) 28 Licenses and permits 1,471 (416 ) 1,055 Developed technology 6,131 (2,146 ) 3,985 24,548 (6,560 ) 17,988 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,560 ) $ 20,343 December 31, 2017 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,651 ) $ 13,201 Non-compete agreements 94 (61 ) 33 Licenses and permits 1,471 (390 ) 1,081 Developed technology 6,131 (1,993 ) 4,138 24,548 (6,095 ) 18,453 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,095 ) $ 20,808 |
Estimated Amortization Expenses for Succeeding Five Fiscal Years | Based on identified intangible assets that are subject to amortization as of March 31, 2018, we expect future amortization expenses for each period to be as follows (in thousands): Total Remainder of 2018 2019 2020 2021 2022 2023 Thereafter Customer relationships $ 12,920 $ 843 $ 1,123 $ 1,123 1,123 1,123 1,123 $ 6,462 Non-compete agreements 28 14 14 - - - - - Licenses and permits 1,055 79 106 106 101 86 86 491 Developed technology 3,985 460 613 613 613 613 613 460 Total future amortization expense $ 17,988 $ 1,396 $ 1,856 $ 1,842 $ 1,837 $ 1,822 $ 1,822 $ 7,413 |
NET INCOME PER COMMON SHARE A33
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES [Abstract] | |
Net Income Per Common Share | The following table (in thousands, except per share amounts) sets forth the computation of basic and diluted net income per share attributable to Trecora Resources for the three months ended March 31, 2018 and 2017, respectively. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Per Share Per Share Income Shares Amount Income Shares Amount Basic Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 24,343 $ 0.10 $ 1,487 24,240 $ 0.06 Unvested restricted stock units 403 321 Dilutive stock options outstanding 485 493 Diluted Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 25,231 $ 0.09 $ 1,487 25,054 $ 0.06 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Accrued state taxes $ 332 $ 272 Accrued property taxes 703 - Accrued payroll 983 1,407 Accrued interest 31 30 Accrued officer compensation 300 500 Other 1,880 1,752 Total $ 4,229 $ 3,961 |
LIABILITIES AND LONG-TERM DEBT
LIABILITIES AND LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
LIABILITIES AND LONG-TERM DEBT [Abstract] | |
Schedule of Maximum Leverage Ratio | On March 28, 2017, we entered into a Second Amendment to the ARC with terms which increase the Maximum Consolidated Leverage Ratio financial covenant of 3.25x to 4.00x at March 31, 2017, and 4.25x at June 30, 2017, before stepping down to 3.75x at September 30, 2017, 3.50x at December 31, 2017, and reverting to the original financial covenant of 3.25x at March 31, 2018. For Fiscal Quarter Ending Maximum Consolidated Leverage Ratio March 31, 2017 4.00 to 1.00 June 30, 2017 4.25 to 1.00 September 30, 2017 3.75 to 1.00 December 31, 2017 3.50 to 1.00 March 31, 2018 and each fiscal quarter thereafter 3.25 to 1.00 |
Schedule of Minimum Fixed Charge Coverage Ratio | The Second Amendment also reduces the Minimum Consolidated Fixed Charge Coverage Ratio of 1.25x to 1.10x at March 31, 2017, 1.05x at June 30, 2017 and September 30, 2017, 1.10x at December 31, 2017, before reverting to the original financial covenant of 1.25x at March 31, 2018. For Fiscal Quarter Ending Minimum Consolidated Fixed Charge Coverage Ratio March 31, 2017 1.10 to 1.00 June 30, 2017 1.05 to 1.00 September 30, 2017 1.05 to 1.00 December 31, 2017 1.10 to 1.00 March 31, 2018 and each fiscal quarter thereafter 1.25 to 1.00 |
Schedule of Pricing Levels for Leverage Ratios | Also, under the terms of the Second Amendment, two additional levels of pricing were added – levels 4 and 5. Level Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Commitment Fee 1 Less than 1.50 to 1.00 2.00% 1.00% 0.25% 2 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00 2.25% 1.25% 0.25% 3 Greater than or equal to 2.00 to 1.00 but less than 3.00 to 1.00 2.50% 1.50% 0.375% 4 Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00 2.75% 1.75% 0.375% 5 Greater than or equal to 3.50 to 1.00 3.00% 2.00% 0.375% |
Summary of Carrying Amount and Debt Issuance Costs of Long-term Debt | The following table summarizes the carrying amounts and debt issuance costs of our long-term debt (in thousands): March 31, 2018 December 31, 2017 Acquisition loan $ 45,500 $ 47,250 Term loan 17,000 17,333 Revolving facility 45,000 35,000 Total 107,500 99,583 Debt issuance costs (408 ) (501 ) Total long-term debt $ 107,092 $ 99,082 Less current portion including loan fees 8,061 8,061 Total long-term debt, less current portion including loan fees $ 99,031 $ 91,021 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
Restricted Stock Units Activity | Restricted stock units activity in the first three months of 2018 was as follows: Shares of Restricted Stock Units Weighted Average Grant Date Price per Share Outstanding at January 1, 2018 387,702 $ 11.39 Granted 102,317 $ 12.15 Forfeited (34,585 ) $ 10.97 Vested (51,998 ) $ 12.34 Outstanding at March 31, 2018 403,436 $ 11.50 |
Summary of Status of Stock Option Awards and Warrants | A summary of the status of our stock option awards and warrants is presented below: Number of Stock Options & Warrants Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Outstanding at January 1, 2018 1,323,587 $ 7.82 Granted -- -- Exercised (81,427 ) 6.26 Forfeited -- -- Outstanding at March 31, 2018 1,242,160 $ 7.93 4.1 Exercisable at March 31, 2018 1,042,160 $ 8.80 4.7 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | We also separately identify our corporate overhead which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Three Months Ended March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 60,285 $ 6,383 $ - $ 31 $ 66,699 Processing fees 2,028 3,212 - (198 ) 5,042 Total revenues 62,313 9,595 - (167 ) 71,741 Operating profit (loss) before depreciation and amortization 8,393 390 (2,148 ) - 6,635 Operating profit (loss) 6,679 (914 ) (2,156 ) - 3,609 Profit (loss) before taxes 6,054 (1,181 ) (1,931 ) - 2,942 Depreciation and amortization 1,714 1,304 8 - 3,026 Capital expenditures 10,283 745 - - 11,028 Three Months Ended March 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 44,391 $ 6,508 $ - - $ 50,899 Processing fees 1,488 3,155 - - 4,643 Total revenues 45,879 9,663 - - 55,542 Operating profit (loss) before depreciation and amortization 8,214 745 (2,179 ) - 6,780 Operating profit (loss) 6,658 (271 ) (2,195 ) - 4,192 Profit (loss) before taxes 6,005 (290 ) (3,167 ) - 2,548 Depreciation and amortization 1,556 1,016 16 - 2,588 Capital expenditures 8,756 5,125 - - 13,881 March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 21,495 $ 3,127 $ - $ 25 $ 24,647 Trade receivables, processing fees 1,018 1,841 - (85 ) 2,774 Goodwill and intangible assets, net - 42,141 - - 42,141 Total assets 275,063 117,297 97,543 (154,777 ) 335,126 December 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 20,211 $ 2,671 $ - $ - $ 22.882 Trade receivables, processing fees 983 1,914 - - 2,897 Goodwill and intangible assets, net - 42,606 - - 42,606 Total assets 265,213 117,579 97,880 (153,346 ) 327,326 |
INVESTMENT IN AMAK (Tables)
INVESTMENT IN AMAK (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
INVESTMENT IN 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 Three Months Ended March 31, 2018 2017 (thousands of dollars) Sales $ 14,087 $ 2,256 Gross profit (loss) 1,581 (1,307 ) General, administrative and other expenses 1,900 2,589 Net Loss $ (319 ) $ (3,896 ) |
Equity in Income or Loss of AMAK Reflected on Consolidated Statements | Depreciation and amortization was $7.7 million and $0.5 million for the three months ended March 31, 2018, and 2017, respectively. Therefore, net income before depreciation and amortization was as follows: Three Months Ended March 31, 2018 2017 (thousands of dollars) Net income (loss) before depreciation and amortization $ 7,382 $ (3,369 ) Financial Position March 31, December 31, 2018 2017 (thousands of dollars) Current assets $ 33,273 $ 23,333 Noncurrent assets 228,733 237,875 Total assets $ 262,006 $ 261,208 Current liabilities $ 22,873 $ 24,439 Long term liabilities 71,520 68,837 Shareholders' equity 167,613 167,932 $ 262,006 $ 261,208 The equity in the income or loss of AMAK reflected on the consolidated statements of income for the three months ended March 31, 2018, and 2017, is comprised of the following: Three months ended March 31, 2018 2017 (thousands of dollars) AMAK Net Loss $ (319 ) $ (3,896 ) Company's share of loss reported by AMAK $ (107 ) $ (1,303 ) Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK 337 337 Equity in earnings (loss) of AMAK $ 230 $ (966 ) |
GENERAL (Details)
GENERAL (Details) | 3 Months Ended |
Mar. 31, 2018Segment | |
Noncontrolling Interest [Line Items] | |
Number of operating segments | 2 |
Al Masane Al Kobra ("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% |
RECENT ACCOUNTING PRONOUNCEME40
RECENT ACCOUNTING PRONOUNCEMENTS (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |||
Federal corporate tax rate | 21.00% | 35.00% | 35.00% |
TRADE RECEIVABLES (Details)
TRADE RECEIVABLES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
TRADE RECEIVABLES [Abstract] | ||
Trade receivables | $ 27,849 | $ 26,079 |
Less allowance for doubtful accounts | (428) | (300) |
Trade receivables, net | $ 27,421 | $ 25,779 |
PREPAID EXPENSES AND OTHER AS42
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
PREPAID EXPENSES AND OTHER ASSETS [Abstract] | ||
Prepaid license | $ 1,919 | $ 1,919 |
Prepaid catalyst | 723 | 779 |
Prepaid insurance | 92 | 0 |
Spare parts | 1,100 | 954 |
Other prepaid expenses and assets | 1,297 | 772 |
Total | $ 5,131 | $ 4,424 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
INVENTORIES [Abstract] | ||
Raw material | $ 2,612 | $ 3,703 |
Work in process | 51 | 27 |
Finished products | 13,028 | 14,720 |
Total inventory | 15,691 | 18,450 |
Products in transit | $ 4,000 | $ 3,700 |
PLANT, PIPELINE AND EQUIPMENT44
PLANT, PIPELINE AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | $ 256,010 | $ 244,982 | |
Less accumulated depreciation | (65,871) | (63,240) | |
PLANT, PIPELINE, AND EQUIPMENT, NET (Note 9) | 190,139 | 181,742 | |
Interest capitalized for construction | 304 | $ 374 | |
Capitalized labor costs | 1,200 | 800 | |
Amortization relating to the platinum catalyst | 0 | $ 25 | |
Platinum Catalyst Metal [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 1,612 | 1,612 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 5,428 | 5,428 | |
Plant, Pipeline and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 188,529 | 186,946 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | $ 60,441 | $ 50,996 |
GOODWILL AND INTANGIBLE ASSET45
GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Intangible assets subject to amortization [Abstract] | |||
Gross | $ 24,548 | $ 24,548 | |
Accumulated Amortization | (6,560) | (6,095) | |
Net | 17,988 | 18,453 | |
Amortization of intangible assets | 465 | $ 465 | |
Intangible assets not subject to amortization [Abstract] | |||
Gross | 26,903 | 26,903 | |
Accumulated Amortization | (6,560) | (6,095) | |
Net | 20,343 | 20,808 | |
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
Total | 17,988 | ||
Remainder of 2018 | 1,396 | ||
2,019 | 1,856 | ||
2,020 | 1,842 | ||
2,021 | 1,837 | ||
2,022 | 1,822 | ||
2,023 | 1,822 | ||
Thereafter | 7,413 | ||
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] | |||
Total | 12,920 | ||
Remainder of 2018 | 843 | ||
2,019 | 1,123 | ||
2,020 | 1,123 | ||
2,021 | 1,123 | ||
2,022 | 1,123 | ||
2,023 | 1,123 | ||
Thereafter | 6,462 | ||
Non-compete Agreements [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
Total | 28 | ||
Remainder of 2018 | 14 | ||
2,019 | 14 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2,022 | 0 | ||
2,023 | 0 | ||
Thereafter | 0 | ||
Licenses and Permits [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
Total | 1,055 | ||
Remainder of 2018 | 79 | ||
2,019 | 106 | ||
2,020 | 106 | ||
2,021 | 101 | ||
2,022 | 86 | ||
2,023 | 86 | ||
Thereafter | 491 | ||
Developed Technology [Member] | |||
Estimated amortization expense for succeeding five fiscal years [Abstract] | |||
Total | 3,985 | ||
Remainder of 2018 | 460 | ||
2,019 | 613 | ||
2,020 | 613 | ||
2,021 | 613 | ||
2,022 | 613 | ||
2,023 | 613 | ||
Thereafter | 460 | ||
Customer Relationships [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 16,852 | 16,852 | |
Accumulated Amortization | (3,932) | (3,651) | |
Net | 12,920 | 13,201 | |
Non-compete Agreements [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 94 | 94 | |
Accumulated Amortization | (66) | (61) | |
Net | 28 | 33 | |
Licenses and Permits [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 1,471 | 1,471 | |
Accumulated Amortization | (416) | (390) | |
Net | 1,055 | 1,081 | |
Developed Technology [Member] | |||
Intangible assets subject to amortization [Abstract] | |||
Gross | 6,131 | 6,131 | |
Accumulated Amortization | (2,146) | (1,993) | |
Net | $ 3,985 | $ 4,138 |
NET INCOME PER COMMON SHARE A46
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic Net Income per Share [Abstract] | ||
Net Income Attributable to Trecora Resources | $ 2,352 | $ 1,487 |
Weighted average number of shares outstanding, basic (in shares) | 24,343,000 | 24,240,000 |
Net Income Attributable to Trecora Resources (in dollars per share) | $ 0.10 | $ 0.06 |
Unvested restricted stock units (in shares) | 403,000 | 321,000 |
Dilutive stock options outstanding (in shares) | 485,000 | 493,000 |
Diluted Net Income per Share [Abstract] | ||
Net Income Attributable to Trecora Resources | $ 2,352 | $ 1,487 |
Weighted average number of shares outstanding, diluted (in shares) | 25,231,000 | 25,054,000 |
Net Income Attributable to Trecora Resources (in dollars per share) | $ 0.09 | $ 0.06 |
Potential common stock shares issuable upon exercise of options (in shares) | 1,242,160 | 1,334,087 |
Treasury Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of stock exchanged (in shares) | 65,000 | |
Al Masane Al Kobra ("AMAK") [Member] | ||
Class of Stock [Line Items] | ||
Number of stock exchanged (in shares) | 24,489 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Accrued state taxes | $ 332 | $ 272 |
Accrued property taxes | 703 | 0 |
Accrued payroll | 983 | 1,407 |
Accrued interest | 31 | 30 |
Accrued officer compensation | 300 | 500 |
Other | 1,880 | 1,752 |
Total | $ 4,229 | $ 3,961 |
LIABILITIES AND LONG-TERM DEB48
LIABILITIES AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Oct. 01, 2014 | Mar. 31, 2018 | Dec. 31, 2017 | Jul. 25, 2017 |
Maximum Consolidated Leverage Ratio [Abstract] | ||||
Maximum consolidated leverage ratio, March 31, 2017 | 4 | |||
Maximum consolidated leverage ratio, June 30, 2017 | 4.25 | |||
Maximum consolidated leverage ratio, September 30, 2017 | 3.75 | |||
Maximum consolidated leverage ratio, December 31, 2017 | 3.50 | |||
Maximum consolidated leverage ratio, March 31, 2018 and each fiscal quarter thereafter | 3.25 | |||
Minimum Consolidated Fixed Charge Coverage Ratio [Abstract] | ||||
Minimum consolidated fixed charge coverage ratio, March 31, 2017 | 1.10 | |||
Minimum consolidated fixed charge coverage ratio, June 30, 2017 | 1.05 | |||
Minimum consolidated fixed charge coverage ratio, September 30, 2017 | 1.05 | |||
Minimum consolidated fixed charge coverage ratio, December 31, 2017 | 1.10 | |||
Minimum consolidated fixed charge coverage ratio, March 31, 2018 and each fiscal quarter thereafter | 1.25 | |||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Interest rate on loan | 4.38% | 4.07% | ||
Long-term debt [Abstract] | ||||
Long-term debt | $ 107,500 | $ 99,583 | ||
Debt issuance costs | (408) | (501) | ||
Total long-term debt | 107,092 | 99,082 | ||
Less current portion including loan fees | 8,061 | 8,061 | ||
Total long-term debt, less current portion including loan fees | $ 99,031 | 91,021 | ||
Leverage Ratio, Less than 1.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Commitment fee | 0.25% | |||
Leverage Ratio, Less than 1.50 to 1.00 [Member] | Maximum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 1.50 | |||
Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Commitment fee | 0.25% | |||
Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | Minimum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 1.50 | |||
Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | Maximum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 2 | |||
Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Commitment fee | 0.375% | |||
Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | Minimum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 2 | |||
Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | Maximum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 3 | |||
Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Commitment fee | 0.375% | |||
Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | Minimum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 3 | |||
Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | Maximum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 3.50 | |||
Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Commitment fee | 0.375% | |||
Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member] | Minimum [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Consolidated leverage ratio | 3.50 | |||
Revolving Facility [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Maximum borrowing capacity | $ 60,000 | $ 40,000 | ||
Maturity date | Oct. 1, 2019 | |||
Available remaining borrowing capacity | $ 14,900 | |||
Available remaining borrowing capacity to maintain covenant compliance | 10,000 | |||
Long-term debt [Abstract] | ||||
Long-term debt | $ 45,000 | 35,000 | ||
Acquisition Loan [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Maturity date | Sep. 30, 2019 | |||
Total long-term debt | $ 70,000 | |||
Amortization period for principal on acquisition term loan | 10 years | |||
Quarterly installment amount of acquisition term loan | $ 1,800 | |||
Long-term debt [Abstract] | ||||
Long-term debt | 45,500 | 47,250 | ||
Less current portion including loan fees | 7,000 | 7,000 | ||
Total long-term debt, less current portion including loan fees | $ 38,500 | 40,300 | ||
Term Loan [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Maturity date | Sep. 30, 2019 | |||
Amount of multiple advance loan that was available to be borrowed | $ 25,000 | |||
Quarterly installment amount of acquisition term loan | 300 | |||
Long-term debt [Abstract] | ||||
Long-term debt | 17,000 | 17,333 | ||
Less current portion including loan fees | 1,300 | 1,300 | ||
Total long-term debt, less current portion including loan fees | $ 15,700 | $ 16,000 | ||
LIBOR [Member] | Leverage Ratio, Less than 1.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 2.00% | |||
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 2.25% | |||
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 2.50% | |||
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 2.75% | |||
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 3.00% | |||
Base Rate [Member] | Leverage Ratio, Less than 1.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 1.00% | |||
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 1.25% | |||
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 1.50% | |||
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 1.75% | |||
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member] | ||||
Pricing Levels for Leverage Ratios [Abstract] | ||||
Basis spread on variable rate | 2.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Outstanding liability | $ 0 | $ 0 |
Interest Rate Swap [Member] | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Term loan secured by plant, pipeline and equipment | $ 10 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - Interest Rate Swap [Member] $ in Millions | Mar. 31, 2018USD ($) |
Derivative [Line Items] | |
Term loan in pay fixed, receive variable interest rate swap | $ 10 |
Term loan secured by plant, pipeline and equipment | $ 14 |
Derivative, variable interest rate | 5.83% |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 20, 2018 | Jan. 17, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 592 | $ 633 | ||
Restricted Stock Awards [Member] | Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 5 | |||
Shares of Restricted Stock Units [Roll Forward] | ||||
Granted (in shares) | 251 | |||
Weighted Average Grant Date Price per Share [Abstract] | ||||
Granted (in dollars per share) | $ 13.85 | |||
Restricted Stock Unit Awards [Member] | ||||
Shares of Restricted Stock Units [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 387,702 | |||
Granted (in shares) | 102,317 | |||
Forfeited (in shares) | (34,585) | |||
Vested (in shares) | (51,998) | |||
Outstanding at end of period (in shares) | 403,436 | |||
Weighted Average Grant Date Price per Share [Abstract] | ||||
Outstanding at beginning of period (in dollars per share) | $ 11.39 | |||
Granted (in dollars per share) | 12.15 | |||
Forfeited (in dollars per share) | 10.97 | |||
Vested (in dollars per share) | 12.34 | |||
Outstanding at end of period (in dollars per share) | $ 11.50 | |||
Restricted Stock Unit Awards [Member] | Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 36 | |||
Percentage of stock vests ratably over three years | 50.00% | |||
Vesting period of stock vests ratably over three years | 3 years | |||
Percentage of stock vests at the end of the three years | 50.00% | |||
Vesting period of stock vests at the end of three years | 3 years | |||
Shares of Restricted Stock Units [Roll Forward] | ||||
Granted (in shares) | 102,000 | |||
Weighted Average Grant Date Price per Share [Abstract] | ||||
Granted (in dollars per share) | $ 12.15 | |||
Restricted Stock Unit Awards [Member] | Officer [Member] | Vesting through 2020 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 112 | 0 | ||
Restricted Stock Unit Awards [Member] | Director [Member] | Vesting through 2020 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 84 | 81 | ||
Restricted Stock Unit Awards [Member] | Officer 1 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 97 | 105 | ||
Percentage of stock vests ratably over three years | 50.00% | |||
Vesting period of stock vests ratably over three years | 3 years | |||
Percentage of stock vests at the end of the three years | 50.00% | |||
Vesting period of stock vests at the end of three years | 3 years | |||
Restricted Stock Unit Awards [Member] | Officer and Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Unit Awards [Member] | Officer and Key Employees [Member] | Vesting through 2019 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 104 | $ 108 |
STOCK-BASED COMPENSATION, Stock
STOCK-BASED COMPENSATION, Stock Option and Warrant Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Remaining Contractual Life [Abstract] | ||
Compensation expense | $ 592 | $ 633 |
Stock Options [Member] | ||
Stock Options and Warrants [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,323,587 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (81,427) | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 1,242,160 | |
Exercisable, end of period (in shares) | 1,042,160 | |
Weighted Average Exercise Price Per Share [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 7.82 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 6.26 | |
Forfeited (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 7.93 | |
Exercisable, end of period (in dollars per share) | $ 8.80 | |
Weighted Average Remaining Contractual Life [Abstract] | ||
Outstanding, weighted average remaining contractual life | 4 years 1 month 6 days | |
Exercisable, weighted average remaining contractual life | 4 years 8 months 12 days | |
Stock Options [Member] | Director [Member] | Vesting through 2017 [Member] | ||
Weighted Average Remaining Contractual Life [Abstract] | ||
Compensation expense | $ 0 | 30 |
Stock Options [Member] | Officer and Key Employees [Member] | ||
Weighted Average Remaining Contractual Life [Abstract] | ||
Vesting period | 4 years | |
Stock Options [Member] | Officer and Key Employees [Member] | Vesting through 2018 [Member] | ||
Weighted Average Remaining Contractual Life [Abstract] | ||
Compensation expense | $ 154 | 309 |
Stock Options [Member] | Mr. Hatem El Khalidi [Member] | ||
Weighted Average Remaining Contractual Life [Abstract] | ||
Compensation expense | $ 0 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 71,741 | $ 55,542 | |
Operating profit (loss) before depreciation and amortization | 6,635 | 6,780 | |
Operating profit (loss) | 3,609 | 4,192 | |
Profit (loss) before taxes | 2,942 | 2,548 | |
Depreciation and amortization | 3,026 | 2,588 | |
Capital expenditures | 11,028 | 13,881 | |
Trade receivables | 27,421 | $ 25,779 | |
Goodwill and intangible assets, net | 42,141 | 42,606 | |
Total assets | 335,126 | 327,326 | |
Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 66,699 | 50,899 | |
Trade receivables | 24,647 | 22,882 | |
Processing Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 5,042 | 4,643 | |
Trade receivables | 2,774 | 2,897 | |
Operating Segments [Member] | Petrochemical [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 62,313 | 45,879 | |
Operating profit (loss) before depreciation and amortization | 8,393 | 8,214 | |
Operating profit (loss) | 6,679 | 6,658 | |
Profit (loss) before taxes | 6,054 | 6,005 | |
Depreciation and amortization | 1,714 | 1,556 | |
Capital expenditures | 10,283 | 8,756 | |
Goodwill and intangible assets, net | 0 | 0 | |
Total assets | 275,063 | 265,213 | |
Operating Segments [Member] | Petrochemical [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 60,285 | 44,391 | |
Trade receivables | 21,495 | 20,211 | |
Operating Segments [Member] | Petrochemical [Member] | Processing Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,028 | 1,488 | |
Trade receivables | 1,018 | 983 | |
Operating Segments [Member] | Specialty Wax [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 9,595 | 9,663 | |
Operating profit (loss) before depreciation and amortization | 390 | 745 | |
Operating profit (loss) | (914) | (271) | |
Profit (loss) before taxes | (1,181) | (290) | |
Depreciation and amortization | 1,304 | 1,016 | |
Capital expenditures | 745 | 5,125 | |
Goodwill and intangible assets, net | 42,141 | 42,606 | |
Total assets | 117,297 | 117,579 | |
Operating Segments [Member] | Specialty Wax [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 6,383 | 6,508 | |
Trade receivables | 3,127 | 2,671 | |
Operating Segments [Member] | Specialty Wax [Member] | Processing Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,212 | 3,155 | |
Trade receivables | 1,841 | 1,914 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating profit (loss) before depreciation and amortization | (2,148) | (2,179) | |
Operating profit (loss) | (2,156) | (2,195) | |
Profit (loss) before taxes | (1,931) | (3,167) | |
Depreciation and amortization | 8 | 16 | |
Capital expenditures | 0 | 0 | |
Goodwill and intangible assets, net | 0 | 0 | |
Total assets | 97,543 | 97,880 | |
Corporate [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Trade receivables | 0 | 0 | |
Corporate [Member] | Processing Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Trade receivables | 0 | 0 | |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (167) | 0 | |
Operating profit (loss) before depreciation and amortization | 0 | 0 | |
Operating profit (loss) | 0 | 0 | |
Profit (loss) before taxes | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Capital expenditures | 0 | 0 | |
Goodwill and intangible assets, net | 0 | 0 | |
Total assets | (154,777) | (153,346) | |
Eliminations [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 31 | 0 | |
Trade receivables | 25 | 0 | |
Eliminations [Member] | Processing Fees [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (198) | $ 0 | |
Trade receivables | $ (85) | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | |||
Federal corporate tax rate | 21.00% | 35.00% | 35.00% |
Income tax receivable | $ 4,400 | ||
Research and Development [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Refund claims amount | $ 350 |
POST-RETIREMENT OBLIGATIONS (De
POST-RETIREMENT OBLIGATIONS (Details) - Postretirement Benefits [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Mr. Hatem El Khalidi [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Post retirement liability | $ 1 | $ 1 |
Nicholas Carter [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Post retirement liability | $ 0.2 | $ 0.3 |
INVESTMENT IN AMAK (Details)
INVESTMENT IN AMAK (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)ر.س / $shares | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||
Equity in earnings (loss) of AMAK | $ 230,000 | $ (966,000) | |
Treasury Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of stock exchanged (in shares) | shares | 65,000 | ||
AMAK [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of stock exchanged (in shares) | shares | 24,489 | ||
Percentage investment in AMAK | 33.41% | 33.44% | |
Investment in AMAK | $ 45,200,000 | $ 45,100,000 | |
Exchange rate | ر.س / $ | 3.75 | ||
Results of Operations [Abstract] | |||
Sales | $ 14,087,000 | 2,256,000 | |
Gross profit (loss) | 1,581,000 | (1,307,000) | |
General, administrative and other expenses | 1,900,000 | 2,589,000 | |
Net Loss | (319,000) | (3,896,000) | |
Depreciation and amortization | 7,700,000 | 500,000 | |
Net income (loss) before depreciation and amortization | 7,382,000 | (3,369,000) | |
Financial Position [Abstract] | |||
Current assets | 33,273,000 | 23,333,000 | |
Noncurrent assets | 228,733,000 | 237,875,000 | |
Total assets | 262,006,000 | 261,208,000 | |
Current liabilities | 22,873,000 | 24,439,000 | |
Long term liabilities | 71,520,000 | 68,837,000 | |
Shareholders' equity | 167,613,000 | 167,932,000 | |
Total liabilities and Shareholders' equity | 262,006,000 | 261,208,000 | |
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract] | |||
AMAK Net Loss | (319,000) | (3,896,000) | |
Company's share of loss reported by AMAK | (107,000) | (1,303,000) | |
Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK | 337,000 | 337,000 | |
Equity in earnings (loss) of AMAK | 230,000 | $ (966,000) | |
Amount receivable for unreimbursed travel expenses | $ 165,000 | $ 121,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting fees | $ 27,000 | |
Executive Chairman [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting fees | $ 31,000 | $ 19,000 |
Period of consulting agreement | 3 years |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ر.س in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018SAR (ر.س) | Oct. 24, 2010USD ($) | Oct. 24, 2010SAR (ر.س) | |
Operating Lease Commitments [Abstract] | |||||
Operating lease, rental expense | $ 1,100 | $ 800 | |||
Supplier Agreements [Abstract] | |||||
Shortfall fee expenses | 100 | 900 | |||
Expenses for environmental monitoring, compliance, and improvements | 149 | $ 165 | |||
Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Accrual recorded value | 1,000 | ||||
Saudi Industrial Development Fund Limited Guarantee [Member] | |||||
Guarantor Obligations [Line Items] | |||||
Principal amount of loan guaranteed | $ 88,000 | ر.س 330,000 | |||
Amount of maximum exposure | $ 81,300 | ر.س 305,000 | $ 36,100 | ر.س 135,330 | |
Saudi Industrial Development Fund Limited Guarantee [Member] | Maximum [Member] | |||||
Guarantor Obligations [Line Items] | |||||
Loan guarantee | 41.00% | 41.00% |