Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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RESTATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
9 Months Ended
Sep. 30, 2016
RESTATEMENT OF FINANCIAL STATEMENTS [Abstract]  
RESTATEMENT OF FINANCIAL STATEMENTS
3. RESTATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2016, have been restated to correct AMAK’s accounting error which reduced our equity in earnings of AMAK by approximately $2.8 million and to record a $3.2 million gain resulting from an increase in our share of the net assets of AMAK based upon the July 2016 equity raise as described in Note 17.  In the originally issued unaudited financial statements as of and for the three and nine months ended September 30, 2016, we did not record the correct equity in earnings or correctly record the gain (with a corresponding increase in our investment) in accordance with ASC 323-10-40-1.

The effects of the restatement are as follows:
 
   
September 30, 2016
 
   
(unaudited)
 
   
As Reported
   
As Restated
 
   
(thousands of dollars)
 
Consolidated Balance Sheets
           
Investment in AMAK
 
$
52,776
   
$
53,127
 
Total Assets
   
283,155
     
283,506
 
Deferred Income Taxes
   
22,817
     
22,941
 
Total Liabilities
   
118,829
     
118,953
 
Retained Earnings
   
109,066
     
109,293
 
Total Trecora Resources Stockholders’ Equity
   
164,037
     
164,264
 
Total Equity
   
164,326
     
164,553
 
Total Liabilities and Equity
   
283,155
     
283,506
 

   
Three Months Ended
September 30, 2016
   
Nine Months Ended
September 30, 2016
 
   
(unaudited)
 
   
As Reported
   
As Restated
   
As Reported
   
As Restated
 
   
(thousands of dollars)
 
Consolidated Statements of Income
                       
Equity in earnings (losses) of AMAK
 
$
(2,089
)
 
$
(2,089
)
 
$
5,079
   
$
2,261
 
Gain on Additional Equity Issuance by AMAK
   
-
     
3,168
     
-
     
3,168
 
Total other income (expense)
   
(2,729
)
   
439
     
14,863
     
15,213
 
Income before income taxes
   
1,399
     
4,567
     
31,032
     
31,382
 
Income tax expense
   
659
     
1,768
     
10,984
     
11,107
 
Net income attributable to Trecora Resources
   
740
     
2,799
     
20,048
     
20,275
 
                                 
Basic earnings per common share (dollars)
 
$
0.03
   
$
0.12
   
$
0.82
   
$
0.83
 
Diluted earnings per common share (dollars)
 
$
0.03
   
$
0.11
   
$
0.80
   
$
0.81
 

   
September 30, 2016
 
   
(unaudited)
 
   
As Reported
   
As Restated
 
   
(thousands of dollars)
 
Consolidated Statement of Stockholders’ Equity
           
Net Income
 
$
20,048
   
$
20,275
 
Retained Earnings
   
109,066
     
109,293
 
Total
   
164,037
     
164,264
 
Total Equity
   
164,326
     
164,553
 

Consolidated Statements of Cash Flows
           
Operating Activities
           
Net income
 
$
20,048
   
$
20,275
 
Deferred income taxes
   
6,728
     
6,851
 
Equity in (earnings) loss of AMAK
   
(5,079
)
   
(2,261
)
Gain on Additional Equity Issuance by AMAK
   
-
     
(3,168
)