NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
Organization
Trecora Resources (the “Company”) was incorporated in the State of Delaware in 1967. The Company's principal business activities are the manufacturing of various specialty petrochemical products, specialty waxes and providing custom processing services.
The Company’s specialty petrochemicals operations are primarily conducted through its wholly-owned subsidiary, Texas Oil and Chemical Co. II, Inc. (“TOCCO”). TOCCO owns all of the capital stock of South Hampton Resources, Inc. (“SHR”) and Trecora Chemical, Inc. (“TC”). SHR owns all of the capital stock of Gulf State Pipe Line Company, Inc. (“GSPL”). SHR owns and operates a specialty petrochemicals product facility in Silsbee, Texas which manufactures high purity hydrocarbons used primarily in polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, Canadian tar sands, and in the catalyst support industry. TC owns and operates a facility located in Pasadena, Texas which manufactures specialty waxes and provides custom processing services. These specialty waxes are used in the production of coatings, hot melt adhesives and lubricants. GSPL owns and operates pipelines that connect the SHR facility to a natural gas line, to SHR’s truck and rail loading terminal and to a major petroleum pipeline owned by an unaffiliated third party.
The Company previously owned a 55% ownership interest in an inactive mining corporation, Pioche Ely Valley Mines, Inc. (“PEVM”), which was previously presented as a non-controlling interest on the Company's financial statements. In November 2019, PEVM entered into a sales contract to sell all of its assets, which include 48 patented and 5 unpatented claims totaling approximately 1,500 acres. The sale was completed on November 1, 2021 and resulted in liquidation of substantially all of PEVM's remaining assets. Proceeds from the sale were used to repay outstanding indebtedness of PEVM owed to the Company. PEVM was legally dissolved on February 16, 2022.
For convenience in this report, the terms “Company”, “our”, “us”, “we” or “TREC” may be used to refer to Trecora Resources and its subsidiaries.
Basis of Presentation
The accompanying unaudited condensed 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, 2021, filed on March 10, 2022, as amended by Amendment No. 1 to such Annual Report on Form 10-K, filed on April 29, 2022 (collectively, the “Annual Report on Form 10-K, as amended”). The unaudited condensed consolidated financial statements included in this document have been prepared on the same basis as the annual 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, 2022 are not necessarily indicative of results for the year ending December 31, 2022.
We currently operate in two segments, Specialty Petrochemicals and Specialty Waxes. All revenue originates from sources in the United States and all long-lived assets owned are located in the United States.
Reclassifications
Certain prior period balances have been reclassified to conform to the current period presentation in the condensed consolidated financial statements and the accompanying notes.
2. RECENT ACCOUNTING PRONOUNCEMENTS
Recent Accounting Pronouncements Not Yet Adopted
In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2020–04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference the London Interbank Offer Rate or another reference rate expected to be discontinued due to reference rate reform. This guidance is effective from March 12, 2020 through December 31, 2022 and adoption is optional. We are currently evaluating the impact of ASU 2020-04 on our consolidated financial statements.
3. TRADE RECEIVABLES
| | | | | | | | | | | | | | |
Trade receivables, net consisted of the following: | | | | |
| | March 31, 2022 | | December 31, 2021 |
| | (thousands of dollars) |
Trade receivables | | $ | 33,872 | | | $ | 33,111 | |
Less allowance for doubtful accounts | | (300) | | | (300) | |
Total trade receivables, net | | $ | 33,572 | | | $ | 32,811 | |
Trade receivables serve as collateral for our amended and restated credit agreement. See Note 10.
4. INVENTORIES
| | | | | | | | | | | | | | |
Inventories consisted of the following: | | | | |
| | March 31, 2022 | | December 31, 2021 |
| | (thousands of dollars) |
Raw material | | $ | 5,432 | | | $ | 2,348 | |
Work in process | | 171 | | | 212 | |
Finished products | | 14,752 | | | 18,574 | |
Total inventories | | $ | 20,355 | | | $ | 21,134 | |
Inventory serves as collateral for our amended and restated credit agreement. See Note 10.
Inventory included Specialty Petrochemicals products in transit valued at approximately $6.4 million and $4.9 million at March 31, 2022 and December 31, 2021, respectively.
5. PREPAID EXPENSES AND OTHER ASSETS
| | | | | | | | | | | | | | |
Prepaid expenses and other assets consisted of the following: | | | | |
| | March 31, 2022 | | December 31, 2021 |
| | (thousands of dollars) |
Prepaid license | | $ | 250 | | | $ | 500 | |
Prepaid insurance premiums | | — | | | 1,145 | |
Spare parts | | 2,561 | | | 2,114 | |
| | | | |
| | | | |
Other prepaid expenses and assets | | 585 | | | 554 | |
Total prepaid expenses and other assets | | $ | 3,396 | | | $ | 4,313 | |
6. PROPERTY, PLANT AND EQUIPMENT
| | | | | | | | | | | | | | |
Property, plant and equipment consisted of the following: | | | | |
| | March 31, 2022 | | December 31, 2021 |
| | (thousands of dollars) |
Platinum catalyst metal | | $ | 1,478 | | | $ | 1,478 | |
Catalyst | | 4,325 | | | 4,325 | |
Land | | 5,400 | | | 5,428 | |
Plant, pipeline and equipment | | 286,491 | | | 282,780 | |
Construction in progress | | 7,901 | | | 7,213 | |
Total property, plant and equipment | | $ | 305,595 | | | $ | 301,224 | |
Less accumulated depreciation | | (119,566) | | | (115,703) | |
Total property, plant and equipment, net | | $ | 186,029 | | | $ | 185,521 | |
Property, plant and equipment serve as collateral for our amended and restated credit agreement. See Note 10.
In the first quarter of 2022, the Company donated approximately $0.5 million of land and other property, plant and equipment to a local municipal organization, which is included in other non-cash items on the condensed consolidated statement of cash flows.
Labor capitalized for construction was approximately $0.1 million and $0.6 million for the three months ended March 31, 2022 and 2021, respectively.
Construction in progress during the first three months of 2022 included pipeline upgrades and costs related to a scheduled plant turnaround late in the first quarter at our Specialty Petrochemicals facility. Construction in progress during the first three months of 2021 included costs for rebuild and restoration of a distillation tower.
7. LEASES
The Company leases certain rail cars, rail equipment, office space and office equipment. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.
Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.
The Company has no finance leases.
| | | | | | | | | | | | | | | | | | | | | |
The components of lease expense were as follows: | | | | | | | | |
($ in thousands) | Classification in the Condensed Consolidated Statements of Income | | Three Months Ended March 31, | | |
| 2022 | | 2021 | | | | |
Operating lease cost (a) | Cost of sales, exclusive of depreciation and amortization | | $ | 1,164 | | | $ | 1,049 | | | | | |
Operating lease cost (a) | Selling, general and administrative | | 13 | | | 34 | | | | | |
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| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Total lease cost | | | $ | 1,177 | | | $ | 1,083 | | | | | |
(a) Short-term lease costs were approximately $0.2 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively.
The Company had no variable lease expense, as defined by ASC 842, during the periods.
| | | | | | | | | | | | | | |
($ in thousands) | Classification on the Condensed Consolidated Balance Sheets | March 31, 2022 | | December 31, 2021 |
Assets: | | | | |
Operating | Operating lease assets | $ | 7,305 | | | $ | 8,170 | |
| | | | |
Total lease right-of-use assets, net | | $ | 7,305 | | | $ | 8,170 | |
| | | | |
Liabilities: | | | | |
Current: | | | | |
Operating | Current portion of operating lease liabilities | $ | 3,085 | | | $ | 3,227 | |
| | | | |
Noncurrent: | | | | |
Operating | Operating lease liabilities | 4,202 | | | 4,923 | |
| | | | |
Total lease liabilities | | $ | 7,287 | | | $ | 8,150 | |
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | |
($ in thousands) | 2022 | | 2021 | | | | |
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows used for operating leases | $ | 948 | | | $ | 903 | | | | | |
| | | | | | | |
| | | | | | | |
Right-of-use assets obtained in exchange for lease obligations: | | | | | | | |
Operating leases | $ | — | | | $ | 19 | | | | | |
| | | | | | | |
| | | | | | | | | | | |
| March 31, 2022 | | March 31, 2021 |
Weighted-average remaining lease term (in years): | | | |
Operating leases | 2.9 | | 3.5 |
| | | |
Weighted-average discount rate: | | | |
Operating leases | 4.5 | % | | 4.5 | % |
| | | |
Most of the Company’s lease contracts do not provide a readily determinable implicit rate. For these contracts, the Company’s estimated incremental borrowing rate is based on information available at the inception of the lease.
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As of March 31, 2022, maturities of lease liabilities were as follows: | | | |
($ in thousands) | Operating Leases | | |
2022 | $ | 2,563 | | | |
2023 | 2,619 | | | |
2024 | 1,298 | | | |
2025 | 1,123 | | | |
2026 | 149 | | | |
| | | |
Total lease payments | $ | 7,752 | | | |
Less: Interest | 465 | | | |
Total lease obligations | $ | 7,287 | | | |
8. INTANGIBLE ASSETS, NET
Intangible assets were recorded in relation to the acquisition of TC on October 1, 2014.
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The following tables summarize the gross carrying amounts and accumulated amortization of intangible assets by major class: |
| | March 31, 2022 |
| | Gross | | Accumulated Amortization | | Net |
| | (thousands of dollars) |
Customer relationships | | $ | 16,852 | | | $ | (8,426) | | | $ | 8,426 | |
Non-compete agreements | | 94 | | | (94) | | | — | |
Licenses and permits | | 1,471 | | | (829) | | | 642 | |
Developed technology | | 6,131 | | | (4,598) | | | 1,533 | |
Total | | $ | 24,548 | | | $ | (13,947) | | | $ | 10,601 | |
| | | | | | | | | | | | | | | | | | | | |
| | December 31, 2021 |
| | Gross | | Accumulated Amortization | | Net |
| | (thousands of dollars) |
Customer relationships | | $ | 16,852 | | | $ | (8,145) | | | $ | 8,707 | |
Non-compete agreements | | 94 | | | (94) | | | — | |
Licenses and permits | | 1,471 | | | (808) | | | 663 | |
Developed technology | | 6,131 | | | (4,445) | | | 1,686 | |
Total | | $ | 24,548 | | | $ | (13,492) | | | $ | 11,056 | |
Amortization expense for intangible assets included in cost of sales was approximately $0.5 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively.
Based on identified intangible assets that are subject to amortization as of March 31, 2022, we expect future amortization expenses for each period to be as follows:
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| | Total | | Remainder of 2022 | | 2023 | | 2024 | | 2025 | | 2026 | | 2027 | | Thereafter |
| | (thousands of dollars) |
Customer relationships | | $ | 8,426 | | | $ | 843 | | | $ | 1,123 | | | $ | 1,123 | | | 1,123 | | | 1,123 | | | 1,123 | | | $ | 1,968 | |
| | | | | | | | | | | | | | | | |
Licenses and permits | | 642 | | | 64 | | | 86 | | | 86 | | | 86 | | | 86 | | | 86 | | | 148 | |
Developed technology | | 1,533 | | | 460 | | | 613 | | | 460 | | | — | | | — | | | — | | | — | |
Total future amortization expense | | $ | 10,601 | | | $ | 1,367 | | | $ | 1,822 | | | $ | 1,669 | | | $ | 1,209 | | | $ | 1,209 | | | $ | 1,209 | | | $ | 2,116 | |
9. ACCRUED LIABILITIES
| | | | | | | | | | | | | | |
Accrued liabilities consisted of the following: | | | | |
| | March 31, 2022 | | December 31, 2021 |
| | (thousands of dollars) |
State taxes | | $ | 288 | | | $ | 192 | |
Property taxes | | 760 | | | — | |
Payroll | | 1,179 | | | 1,406 | |
Royalties | | 454 | | | 294 | |
Incentive compensation | | 3,168 | | | 3,508 | |
Legal | | 165 | | | — | |
| | | | |
Professional expenses | | — | | | 287 | |
Other | | 1,109 | | | 186 | |
Total accrued liabilities | | $ | 7,123 | | | $ | 5,873 | |
10. LIABILITIES AND LONG-TERM DEBT
Senior Secured Credit Facilities
As of March 31, 2022, the Company had no outstanding borrowings under the senior secured revolving credit facility (the “Revolving Facility”) and approximately $40.9 million in borrowings outstanding under the senior secured term loan facility (the “Term Loan Facility”) (and, together with the Revolving Facility, the “Credit Facilities”), in each case, under the Company's amended and restated credit agreement (as amended, the “ARC Agreement”). In addition, the Company had approximately $75 million of availability under our Revolving Facility at March 31, 2022. TOCCO’s ability to make additional borrowings under the Revolving Facility at March 31, 2022 was limited by, and in the future may be limited by, the Company's obligation to maintain compliance with the covenants contained in the ARC Agreement (including maintenance of a maximum Consolidated Leverage Ratio and minimum Consolidated Fixed Charge Coverage Ratio (each as defined in the ARC Agreement)).
For each fiscal quarter after December 31, 2019, TOCCO must maintain a maximum Consolidated Leverage Ratio of 3.50 to 1.00 (subject to temporary increase following certain acquisitions). TOCCO's Consolidated Leverage Ratio was 1.20 and 1.24 as of March 31, 2022 and December 31, 2021, respectively. Additionally, TOCCO must maintain a minimum Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal quarter of 1.15 to 1.00. TOCCO's Consolidated Fixed Charge Coverage Ratio was 3.43 and 3.65 as of March 31, 2022 and December 31, 2021, respectively.
The maturity date for the ARC Agreement is July 31, 2023. As of March 31, 2022, the year to date effective interest rate for the Credit Facilities was 1.89%. The ARC Agreement contains a number of customary affirmative and negative covenants and the Company was in compliance with those covenants as of March 31, 2022.
For a summary of additional terms of the Credit Facilities, see NOTE 13, “LONG-TERM DEBT AND LONG-TERM OBLIGATIONS” to the consolidated financial statements set forth in the Annual Report on Form 10-K, as amended.
Debt Issuance Costs
Debt issuance costs of approximately $0.9 million were incurred in connection with the fourth amendment to the ARC Agreement in July 2018. Unamortized debt issuance costs of approximately $0.2 million and $0.3 million as of March 31, 2022 and December 31, 2021, respectively, have been netted against outstanding loan balances.
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Long-term debt and long-term obligations are summarized as follows: | | | |
| March 31, 2022 | | December 31, 2021 |
| (thousands of dollars) |
Revolving Facility | $ | — | | | $ | — | |
Term Loan Facility | 41,094 | | | 42,188 | |
| | | |
Loan fees | (242) | | | (287) | |
Total long-term debt | 40,852 | | | 41,901 | |
Less current portion including loan fees | 4,194 | | | 4,194 | |
Total long-term debt, less current portion including loan fees | $ | 36,658 | | | $ | 37,707 | |
11. COMMITMENTS AND CONTINGENCIES
Litigation
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
In accordance with our supplier agreements, on a recurring monthly basis, the Company commits to purchasing a determined volume of feedstock in anticipation of upcoming requirements. Feedstock purchases are invoiced and recorded when they are delivered. As of March 31, 2022 and December 31, 2021, the value of the remaining undelivered feedstock approximated $28.3 million and $19.7 million, respectively.
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 were approximately $0.2 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively.
Environmental Remediation
Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $0.1 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively.
12. STOCKHOLDERS' EQUITY
In March 2021, the Company’s Board of Directors authorized the repurchase of up to $20 million in common stock by March 2023 (the “Share Repurchase Program”). The share repurchases will be executed from time to time on the open market, through privately negotiated transactions or through broker-negotiated purchases, in compliance with applicable securities law. The timing and amount of any shares of the Company’s stock that are repurchased under the Share Repurchase Program will be determined by the Company’s management based on its evaluation of market conditions and other factors, including the Company’s stock price, although the Share Repurchase Program may be suspended or discontinued at any time. The Company repurchased no shares during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the value of shares that may yet be purchased under the Share Repurchase Program is approximately $8.8 million.
13. STOCK-BASED COMPENSATION
The Stock Option Plan for Key Employees, as well as, the Non-Employee Director Stock Option Plan (hereinafter collectively referred to as the “Stock Option Plans”), were approved by the Company’s stockholders in July 2008. The Stock Option Plans allot for the issuance of up to 1,000,000 shares.
The Trecora Resources Stock and Incentive Plan (the “Plan”) was approved by the Company’s stockholders in June 2012. As amended, the Plan allots for the issuance of up to 2.5 million shares in the form of stock options or restricted stock unit awards.
The Company recognized stock-based compensation expense of approximately $0.5 million and $0.6 million for the three months ended March 31, 2022 and 2021, respectively.
Stock Option Awards
Awards granted under the provisions of the Stock Option Plans permit the purchase of our common stock at exercise prices equal to the closing price of Company common stock on the date the options were granted. The options have terms of 10 years and generally vest ratably over terms of 4 to 5 years. There were no awards issued during the three months ended March 31, 2022 or 2021, respectively.
A summary of the status of the Company’s awards is as follows:
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| Stock Option Awards | | Weighted Average Exercise Price Per Share | | Weighted Average Remaining Contractual Life | | Intrinsic Value (in thousands) |
Outstanding at January 1, 2022 | 467,000 | | | 11.16 | | | | | |
Granted | — | | | — | | | | | |
Exercised | — | | | — | | | | | |
Forfeited | — | | | — | | | | | |
Outstanding at March 31, 2022 | 467,000 | | | 11.16 | | | 1.6 | | $ | — | |
Expected to vest | — | | | | | | | $ | — | |
Exercisable at March 31, 2022 | 467,000 | | | 11.16 | | | 1.6 | | $ | — | |
The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. At March 31, 2022, options to purchase approximately 0.1 million shares of common stock were in-the-money.
Since no awards were granted, the weighted average grant-date fair value per share of awards granted during the three months ended March 31, 2022 and 2021, respectively, was zero.
The Company has no non-vested outstanding awards as of March 31, 2022.
Restricted Stock Unit Awards
Generally, restricted stock unit awards are granted annually to officers and directors of the Company under the provisions of the Plan. Restricted stock units are also granted ad hoc to attract or retain key personnel, and the terms and conditions under which these restricted stock units vest vary by award. The fair market value of restricted stock units granted is equal to the Company’s closing stock price on the date of grant. Restricted stock units granted to directors have a one year vesting period, while restricted stock units granted to officers generally vest ratably over 3 years. Certain awards also include vesting provisions based on performance metrics measured over a 3 year period. Upon vesting, the restricted stock units are settled by issuing one share of the Company's common stock per unit.
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A summary of the status of the Company's restricted stock units activity is as follows: |
| Shares of Restricted Stock Units | | Weighted Average Grant Date Price per Share |
Outstanding at January 1, 2022 | 586,444 | | | 7.32 | |
Granted | 194,266 | | | 8.78 | |
Forfeited | (37,058) | | | 9.23 | |
Vested | (126,823) | | | 8.79 | |
Outstanding at March 31, 2022 | 616,829 | | | 7.57 | |
Expected to vest | 616,829 | | | |
14. INCOME TAXES
We file an income tax return in the U.S. federal jurisdiction and a margin tax return in Texas. Previously, the Texas Comptroller selected the R&D credit calculations related to the 2014 and 2015 calendar years for audit. The state of Texas suspended examination of the 2014 and 2015 calendar years in order to perform a comprehensive review of audit procedures to provide consistency. During the fourth quarter of 2019, we received notice that Texas had completed review of its procedures and initiated additional requests for information which has been submitted for their review. We do not expect any material changes related to the Texas audits. Our federal and Texas tax returns remain open for examination for the years 2017 through 2020. As of March 31, 2022 and December 31, 2021, respectively, we recognized no adjustments for uncertain tax positions or related interest and penalties.
The effective tax rate varies from the federal statutory rate of 21%, primarily as a result of stock based compensation, state tax expense and other permanent items for the three months ended March 31, 2022 and 2021.
15. 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 Petrochemicals segment includes SHR and GSPL. Our Specialty Waxes segment is TC. We also separately identify our corporate overhead which includes administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs.
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| Three Months Ended March 31, 2022 |
| Specialty Petrochemicals | | Specialty Waxes | | Corporate | | | | Consolidated |
| (in thousands) |
Product sales | $ | 69,090 | | | $ | 9,971 | | | $ | — | | | | | $ | 79,061 | |
Processing fees | 1,488 | | | 2,665 | | | — | | | | | 4,153 | |
Total revenues | 70,578 | | | 12,636 | | | — | | | | | 83,214 | |
Operating income (loss) before depreciation and amortization | 5,378 | | | 1,909 | | | (2,854) | | | | | 4,433 | |
Operating income (loss) | 2,654 | | | 331 | | | (2,853) | | | | | 132 | |
Income (loss) before taxes | 2,362 | | | 324 | | | (2,768) | | | | | (82) | |
Depreciation and amortization | 2,729 | | | 1,578 | | | — | | | | | 4,307 | |
Capital expenditures | 4,129 | | | 722 | | | — | | | | | 4,851 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2021 |
| Specialty Petrochemicals | | Specialty Waxes | | Corporate | | | | Consolidated |
| (in thousands) |
Product sales | $ | 44,658 | | | $ | 6,907 | | | $ | — | | | | | $ | 51,565 | |
Processing fees | 1,254 | | | 1,766 | | | — | | | | | 3,020 | |
Total revenues | 45,912 | | | 8,673 | | | — | | | | | 54,585 | |
Operating income (loss) before depreciation and amortization | 2,571 | | | (481) | | | (3,023) | | | | | (933) | |
Operating income (loss) | (231) | | | (1,957) | | | (3,025) | | | | | (5,213) | |
Income (loss) before taxes | (297) | | | (1,954) | | | (3,154) | | | | | (5,405) | |
Depreciation and amortization | 2,802 | | | 1,476 | | | 3 | | | | | 4,281 | |
Capital expenditures | 3,567 | | | 1,214 | | | — | | | | | 4,781 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2022 |
| Specialty Petrochemicals | | Specialty Waxes | | Corporate | | Eliminations | | Consolidated |
| (in thousands) |
| | | | | | | | | |
| | | | | | | | | |
Intangible assets, net | — | | | 10,601 | | | — | | | — | | | 10,601 | |
Total assets | 293,854 | | | 79,953 | | | 109,853 | | | (190,465) | | | 293,195 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2021 |
| Specialty Petrochemicals | | Specialty Waxes | | Corporate | | Eliminations | | Consolidated |
| (in thousands) |
| | | | | | | | | |
| | | | | | | | | |
Intangible assets, net | — | | | 11,056 | | | — | | | — | | | 11,056 | |
Total assets | 298,966 | | | 79,860 | | | 109,292 | | | (194,578) | | | 293,540 | |
16. NET INCOME (LOSS) PER COMMON SHARE
The following tables set forth the computation of basic and diluted net income (loss) per share for the three months ended March 31, 2022 and 2021, respectively.
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| | Three Months Ended March 31, 2022 | | Three Months Ended March 31, 2021 |
| | Loss | | Shares | | Per Share Amount | | Loss | | Shares | | Per Share Amount |
| | (in thousands, except per share amounts) |
Basic: | | | | | | | | | | | | |
Net loss | | $ | (376) | | | 23,600 | | | $ | (0.02) | | | $ | (4,404) | | | 24,861 | | | $ | (0.18) | |
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Diluted: | | | | | | | | | | | | |
Net loss | | $ | (376) | | | 23,600 | | | $ | (0.02) | | | $ | (4,404) | | | 24,861 | | | $ | (0.18) | |
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At March 31, 2022 and 2021, approximately 0.6 million and 0.7 million shares of unvested restricted stock units, respectively, were not included in the computation of diluted earnings per share because such restricted stock units would be anti-dilutive.
At March 31, 2022 and 2021, 0.5 million and 0.7 million shares of common stock, respectively, were issuable upon the exercise of outstanding stock options and were not included in the computation of diluted earnings per share because such options would be anti-dilutive.