Trecora Resources (NYSE:TREC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET

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Trecora Resources (NYSE:TREC) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to Trecora Resources Third Quarter 2019 Earnings Conference Call. [Operator instructions] And at this time, I would like to turn the call over to Mr. Jason Finkelstein from The Piacente Group, Inc. Please go ahead, Jason.

Executive
Jason Finkelstein

Thank you, operator, and good morning, everyone. Welcome to the Trecora Resources third quarter 2019 earnings conference call. The earnings release was distributed over the wire services after the close of the financial markets yesterday afternoon. Presenting on our call today will be Pat Quarles, President and Chief Executive Officer, in addition to Sami Ahmad, Chief Financial Officer.

Chris Groves, our Corporate Controller, will also be available for the question-and-answer session, which will follow management's prepared remarks. Before we get started, I would like to review the safe harbor statement. Statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's beliefs and expectations only as of the date of this teleconference, November 7, 2019.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Those risks as well as others are discussed in greater detail in Trecora's filings with the SEC, including the company's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued after the close of the financial markets yesterday afternoon.

This webcast is accompanied by a slide presentation that is available on the company's website, www.trecora.com. At this time, I'd like to turn the call over to Trecora's president and CEO, Pat Quarles.

Executive
Pat Quarles

Thank you, Jason, and good morning to all those participating in today's call. During my remarks, I'll be discussing the overall progress we've been making in the business as well as our continued pursuit of execution excellence within the company. But before I do, I would like to provide an update regarding our recent action to reshape our company, specifically the sale of our stake in AMAK. As background for investors both new and existing on the call today, Trecora is an original developer and 33% owner in Al Masane Al Kobra Mining Company, or AMAK, a Saudi Arabian closed joint stock company, which owns and operates and is developing mining assets in Saudi Arabia.

Our stake in AMAK is a meaningful but non-core asset of Trecora's. On October 2, Trecora announced that we had entered into a definitive share sale and purchase agreement with certain existing shareholders of AMAK, who will acquire Trecora's entire equity interest. AMAK is also participating in this transaction through its previously share repurchase authorization. Under the terms of the agreement, Trecora will be selling our equity interest for $70 million and we expect to receive net proceeds of approximately $60 million in