Trecora Resources (TREC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.85 million, or $ 0.03 a share in the quarter, against a net profit of $1.12 million, or $0.05 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1.58 million, or $0.10 a share compared with $3.05 million or $0.08 a share, a year ago. Revenue during the quarter dropped 10.47 percent to $54.20 million from $60.54 million in the previous year period. Gross margin for the quarter contracted 448 basis points over the previous year period to 14.12 percent. Total expenses were 95.32 percent of quarterly revenues, up from 90.50 percent for the same period last year. That has resulted in a contraction of 482 basis points in operating margin to 4.68 percent.
Operating income for the quarter was $2.54 million, compared with $5.75 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.74 million compared with $8.57 million in the prior year period. At the same time, adjusted EBITDA margin contracted 356 basis points in the quarter to 10.60 percent from 14.15 percent in the last year period.
"During 2016 we focused our resources and invested in building a strong foundation for future growth," said Simon Upfill-Brown, president and chief executive officer. "Our transformational capital projects continued to take shape as we positioned our business to increase capacity and profitability over the long-term to take advantage of the resurgence in the global chemical industry. While certain projects have experienced some slight delays, the completion of the distillation unit is a major milestone for Trecora Chemical (TC), which will benefit from increased demand for custom processing."
Working capital drops significantly
Trecora Resources has witnessed a decline in the working capital over the last year. It stood at $30.85 million as at Dec. 31, 2016, down 28.93 percent or $12.56 million from $43.41 million on Dec. 31, 2015. Current ratio was at 2.15 as on Dec. 31, 2016, down from 2.89 on Dec. 31, 2015. Debt moves up marginally
Trecora Resources has witnessed an increase in total debt over the last one year. It stood at $83.25 million as on Dec. 31, 2016, up 2.49 percent or $2.02 million from $81.23 million on Dec. 31, 2015. Total debt was 28.50 percent of total assets as on Dec. 31, 2016, compared with 31.39 percent on Dec. 31, 2015. Debt to equity ratio was at 0.51 as on Dec. 31, 2016, down from 0.57 as on Dec. 31, 2015. Interest coverage ratio improved to 13.95 for the quarter from 11.53 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
