TRECORA RESOURCES

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2022 10-Q, filed May 5, 2022. Its latest SEC filing is a 15-12G from Jul 7, 2022.

The sections below describe the company as of the FY2021 annual report.

What Did They Do?

Manufactures specialty petrochemicals and waxes and provides custom processing services for chemical, plastics and petroleum companies.

How Did They Make Money?

Customers pay for products and custom processing by invoice: product sales are typically collected 30 to 60 days after sale, and processing fees within 30 days.

revenue

Segment	Share	Revenue	How money arrives
Product sales Sold outright	94% FY2018: 94%		Sold outright
Processing fees Sold outright	5.6% FY2018: 6.3%		Sold outright

Who Were Their Customers?

Sells products and services to companies in the chemical, plastics, and petroleum industries, marketing products through long-term customer relationships.

Customers above 10% of revenue, FY2021

of revenue from one customer

FY2019: 15% from one customer

Did Revenues Turn Into Profits?

Yes. It kept 2 cents of every revenue dollar as net income in FY2021, but spent more cash than it brought in: free cash flow was −$9.8M.

Operating income, FY2021

−1% of revenue

▼ Now a loss vs FY2020 ($2.9M, 1%)

Net income, FY2021

2% of revenue

▼ −84% vs FY2020 ($31.2M, 15%)

Free cash flow, FY2021

−4% of revenue

▼ Now a loss vs FY2020 ($12.2M, 6%)

How Were They Changing?

Since the FY2021 annual report

Latest quarter: Q1 FY2022, the three months to Mar 31, 2022

Revenue: ▲ +52%; vs $54.6M in Q1 FY2021
Net income: ▼ −91% (Loss); vs −$4.4M in Q1 FY2021

Product sales share of revenue vs 94.5% in Q1 FY2021

Jun 30, 2022 Trecora appointed a new CEO after its acquisition by Balmoral. Patrick Quarles’ employment as CEO ended, and Brad Crocker became President and CEO.
Jun 27, 2022 Balmoral completed its acquisition of Trecora, which became private and delisted. Trecora became an indirect wholly owned subsidiary of Balmoral, and its shares were converted into a right to receive cash.

Grew. Revenue grew 11% in 4 years, from $245.1M in FY2017 to $272.7M in FY2021, about 3% a year.

Mining interests exited The older report included an interest in a Saudi Arabian mining company and undeveloped U.S. mining properties; the latest report says the Saudi Arabian interest was sold and the U.S. mining assets were sold.

Revenue over time

Product sales Processing fees

$500M$250M$0

FY2017 FY2018 FY2019 FY2020 FY2021

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