Trecora Resources (TREC) Misses Q4 EPS by 75c, Revenues Beat

Trecora Resources (NYSE: TREC) reported Q4 EPS of ($0.76), $0.75 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $61.72 million versus the consensus estimate of $60.29 million.

"As evidenced by our 2019 results, Trecora had a strong year highlighted by improved cash flow and debt reduction. Operational reliability, disciplined cost control and consistent execution drove the Company's fourth quarter 2019 results, yielding gross profit of $8.3 million and consolidated Adjusted EBITDA from continuing operations of $6.4 million. This resulted in 2019 gross profit of $38.5 million, a 38% increase over 2018, and 2019 consolidated Adjusted EBITDA from continuing operations of $31.0 million, which was at the high end of our indicated range and a 50% improvement compared to 2018," said Pat Quarles, Trecora\'s President and Chief Executive Officer.

Regarding the AMAK sale process, Mr. Quarles added, "We recently received approval from the Ministry of Industry and Mineral Resources in Saudi Arabia, a critical milestone in completing the sale of this non-core asset. We are working on finalizing the remaining issues to closing. We delivered a notice to the buyers scheduling closing and believe the closing of the sale process is possible by the end of this quarter."

Mr. Quarles continued, "Looking ahead, we will continue focusing on improving our base businesses while we extend our execution strategy towards profitable growth opportunities. We have launched a new growth initiative comprised of a broad base of projects that has identified meaningful opportunities to raise our profitability and drive value, in both 2020 and in the years to come."

Sami Ahmad, Trecora's Chief Financial Officer stated, "We are very pleased with our 2019 financial results, which met or exceeded all of our financial goals. While we continued to manage challenges in certain key end markets, we generated solid underlying margins and strong free cash flow, allowing us to significantly reduce our debt. Consolidated gross margin was 14.9% in 2019, significantly improved from 9.7% in 2018. This margin improvement was a result of lower feedstock costs, lower operating expenses and improved plant operations, specifically in our Specialty Petrochemicals segment, which saw its gross margins improve to 17.7% in 2019 from 10.4% in 2018."

For earnings history and earnings-related data on Trecora Resources (TREC) click here.

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