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04.05.2022 16:05
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Trecora Resources Announces First Quarter 2022 Results
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PR Newswire
SUGAR LAND, Texas, May 4, 2022
- First quarter revenue of $83.2 million, an increase of 52.4% compared with the first quarter of 2021, driven by price and volume increases in both the Specialty Petrochemicals and Specialty Waxes segments.
- First quarter net loss of $(0.4) million was significantly improved from $(4.4) million in the first quarter 2021.
- First quarter Adjusted EBITDA of $5.8 million compared to $(0.1) million in the first quarter 2021.
- Increasing full year Adjusted EBITDA guidance to a range between $28 million and $32 million from $27 million to $31 million previously.
- Conference call at 11:00 am ET, May 5, 2022.
SUGAR LAND, Texas, May 4, 2022 /PRNewswire/ -- Trecora Resources ("Trecora" or the "Company") (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today announced financial results for the first quarter ended March 31, 2022.
Executive Commentary
"The first quarter of 2022 saw a continuation of the market dynamics Trecora experienced during the second half of 2021 as the Company recorded solid results driven by increased economic activity, which is supporting end market demand. Demand for solvents and specialty wax products, along with custom processing, remained strong during the first quarter, enabling Trecora to record top line growth of 52.4% compared to the first quarter of 2021. Specialty Petrochemical volumes improved 17.6% from the same period in the prior year, while wax volumes similarly grew 17%. Recall that last year's volumes were significantly impacted by the Texas freeze event. Average Specialty Petrochemical sales prices rose 31.6% from the prior year period as Trecora continued to implement pricing increases in order to keep pace with input pricing. Custom processing revenues at TC improved more than 50% to $2.7 million for the first quarter of 2022 compared to the prior year period, while volumes of byproduct sales at SHR also expanded, gaining 45.2% from year-ago levels to 3.7 million gallons in the first quarter of 2022."
"We were particularly pleased to see volume growth in our Specialty Wax segment as input availability improved. That coupled with a favorable pricing environment yielded solid growth in segment revenue and Adjusted EBITDA in the first quarter of 2022," stated Pat Quarles, Trecora's President and Chief Executive Officer.
Sami Ahmad, Trecora's Chief Financial Officer stated, "The Specialty Petrochemicals segment had a strong first quarter, which included expenses associated with a large maintenance turnaround. The turnaround was completed safely and successfully. The costs for the turnaround were greater than expected and totaled approximately $2.4 million in the first quarter. We expect a further $0.4 of turnaround related costs in the second quarter."
"Rising natural gasoline feedstock costs in the first quarter, coupled with higher product pricing, had a negative impact on our working capital. Inventory build ahead of the SHR turnaround allowed us to utilize some lower cost inventory, on a relative basis, during the quarter thereby further enhancing margins. We ended the quarter with cash balance of $31.9 million and debt of $40.9 million. Operating cash flow for the quarter was a strong $7.7 million," concluded Mr. Ahmad.
First Quarter 2022 Financial Results
Total revenue in the first quarter of 2022 was $83.2 million, compared to $54.6 million in the first quarter of 2021. The 52.4% year-over-year increase was primarily due to increased volume compared with last year's quarter which was negatively impacted by the Texas freeze event. Price increases in both operating segments, resulting from strong end market demand and higher feedstock costs, also contributed to the positive year over year comparison.
Gross profit in the first quarter of 2022 was $7.9 million, or 9.5% of total revenues, compared to $2.3 million, or 4.3% of total revenues, in the first quarter of 2021 and $6.2 million, or 8.4% of total revenues, in the fourth quarter of 2021.
Net loss in the first quarter of 2022 was $(0.4) million, or $(0.02)1 per diluted share, compared to net loss of $(4.4) million, or $(0.18)2 per diluted share, in the first quarter of 2021. Adjusted EBITDA was $5.8 million for the first quarter of 2022, compared with $(0.1) million in the first quarter of 2021.
Specialty Petrochemicals
Specialty Petrochemicals volume in the first quarter of 2022 was 20.2 million gallons, which increased from 17.2 million gallons in the first quarter of 2021. Prime product volume in the first quarter of 2022 was 16.6 million gallons, which increased from 14.7 million gallons in the first quarter of 2021. By-product sales volume was 3.7 million gallons in the first quarter of 2022. The increase in volume compared to last year was primarily due to the Texas freeze event. Specialty Petrochemicals gross revenue increased 53.7% year-over-year due to the combination of increased volumes coupled with higher product prices.
Specialty Petrochemicals net income was $1.8 million in the first quarter of 2022, compared to net income of $0.2 million in the first quarter of 2021. Adjusted EBITDA for Specialty Petrochemicals in the first quarter of 2022 was $5.9 million, compared to $2.6 million in the first quarter of 2021.
| Dollar amounts in thousands/rounding may apply | THREE MONTHS | | | ||
| | MARCH 31, | | | ||
| | 2022 | 2021 | % Change | ||
| Product sales | $69,090 | $44,658 | 54.7% | ||
| Processing fees | 1,488 | 1,254 | 18.7% | ||
| Gross revenues | $70,578 | $45,912 | 53.7% | ||
| Operating income before depreciation and amortization | 5,383 | 2,571 | 109.4% | ||
| Operating income (loss) | 2,654 | (231) | 1,248.9% | ||
| Net income (loss) before taxes | 2,362 | (297) | 895.3% | ||
| Depreciation and amortization | 2,729 | 2,802 | (2.6%) | ||
| Adjusted EBITDA(*) | 5,889 | 2,569 | 129.2% | ||
| Capital expenditures | 4,129 | 3,567 | 15.8% | ||
| | | | | | |
| (*) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its |
Specialty Waxes
Specialty Waxes reported revenues of approximately $12.6 million in the first quarter of 2022, a 45.7% increase from the first quarter of 2021. Revenues included approximately $10.0 million of wax product sales in the first quarter of 2022, and processing revenues of $2.7 million. Wax revenues grew as higher selling prices combined with increased sales volumes. Wax sales volumes were 10.3 million pounds in the first quarter of 2022 compared to 8.8 million pounds in the first quarter 2021.
Specialty Waxes net income was $0.3 million in the first quarter of 2022, compared to a net loss of $(2.0) million in the first quarter of 2021. Adjusted EBITDA for Specialty Waxes in the first quarter of 2022 was $1.9 million, compared with $(0.5) million in the first quarter of 2021.
Processing fees were approximately $2.7 million in the first quarter of 2022, an increase of 50.9% from the first quarter of 2021. Processing fees in the first quarter of 2021 were negatively impacted by the Texas freeze event.
|
Dollar amounts in thousands/rounding may apply | THREE MONTHS | | | ||||
| | | | | ||||
| | 2022 | 2021 | % Change | ||||
| Product sales | $9,971 | $6,907 | 44.4% | ||||
| Processing fees | 2,665 | 1,766 | 50.9% | ||||
| Gross revenues | $12,636 | $8,673 | 45.7% | ||||
| Operating income (loss) before depreciation and | 1,909 | (481) | 496.9% | ||||
| Operating income (loss) | 331 | (1,957) | 116.9% | ||||
| Net income (loss) before taxes | 324 | (1,954) | 116.6% | ||||
| Depreciation and amortization | 1,578 | 1,476 | 6.9% | ||||
| Adjusted EBITDA(*) Werbung Mehr Nachrichten zur Trecora Resources Aktie kostenlos abonnieren
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