TriMas Reports First Quarter 2021 Results
TriMas reported a strong start to 2021, with Q1 net sales rising by 13.1% to $206.7 million. The growth was fueled by record sales in the Packaging segment, despite weaker demand in aerospace and industrial sectors due to the pandemic. The company achieved an operating profit of $21.1 million, up from $19.8 million last year. Additionally, it successfully refinanced its debt, securing a low rate. Looking ahead, TriMas anticipates Q2 sales between $205 million and $223 million and adjusted EPS of $0.50 to $0.57.
- Q1 net sales increased by 13.1% to $206.7 million.
- Operating profit rose to $21.1 million, a 6.6% increase year-over-year.
- Packaging segment achieved record sales growth of 32%.
- Successfully refinanced $400 million in senior notes at a 4.125% fixed rate.
- Free Cash Flow surged to $10.3 million, up from $1.8 million.
- Aerospace segment sales decreased by 8.8% due to reduced air travel.
- Specialty Products segment saw a decline in sales by 11.2%.
TriMas (NASDAQ: TRS) today announced financial results for the first quarter ended March 31, 2021.
TriMas Highlights
-
Increased first quarter net sales by
13.1% , driven by record first quarter sales in TriMas' Packaging segment - Increased operating profit due to continued momentum in TriMas' Packaging segment and margin expansion in the Specialty Products segment
- Completed the successful refinancing of its capital structure, extending maturities on both its credit facility and senior notes, and locking in a historically low rate on its fixed rate debt
- Announced Chief Financial Officer transition as part of succession planning
First Quarter 2021
TriMas reported first quarter net sales of
The Company reported a first quarter 2021 net income of
"Overall, we are off to an encouraging start to 2021 with first quarter results that exceeded our initial expectations," said Thomas Amato, TriMas President and Chief Executive Officer. "During the first quarter, we achieved a sales growth rate of
"Our solid execution in the quarter was complemented by our disciplined and balanced approach to capital allocation and managing our balance sheet. We continue to balance investing in our businesses for long-term growth, augmenting organic growth with M&A and providing shareholder returns through share repurchases. During the quarter, we also successfully completed the refinancing of our revolver and fixed rate debt by extending maturities and taking advantage of historically low rates.
"One year removed from the global pandemic's initial impact, through our proactive actions, we believe we are a stronger company and well-positioned for the future when demand recovers in several of our businesses. We are a leaner organization and are poised to capitalize on new market opportunities as they arise. While there are still continued market uncertainties arising from the global COVID-19 pandemic, we remain focused on leveraging our TriMas Business Model to improve all of our businesses, thereby creating long-term shareholder value," Amato concluded.
Financial Position
The Company reported net cash provided by operating activities of
In addition, during the first quarter of 2021, the Company repurchased approximately
TriMas also refinanced its capital structure during the first quarter, closing on its offering of
The Company received the
First Quarter Segment Results
Packaging (Approximately
TriMas' Packaging segment, which consists primarily of the Rieke®, Taplast™, Affaba & Ferrari™ and Rapak® brands, develops and manufactures specialty dispensing and closure products for applications in the beauty & personal care, food & beverage, pharmaceutical & nutraceutical, industrial, and home care markets. Net sales for the first quarter increased
Aerospace (Approximately
TriMas' Aerospace segment, which includes the Monogram Aerospace Fasteners™, Allfast Fastening Systems®, Mac Fasteners™, RSA Engineered Products™ and Martinic Engineering™ brands, develops, qualifies and manufactures highly-engineered, precision fasteners and machined components to serve the aerospace, including military and defense, end market. Net sales for the first quarter decreased
Specialty Products (Approximately
TriMas' Specialty Products segment, which includes the Norris Cylinder™ and Arrow® Engine brands, designs, manufactures and distributes highly-engineered steel cylinders and wellhead engines and compressor systems, for use within the welding and HVAC, military, industrial, and oil and gas end markets. Norris Cylinder is the only remaining steel cylinder manufacturer in North America, and represents the majority of sales in this segment. First quarter net sales decreased
Outlook
Given the continued market and related demand uncertainties arising from the global COVID-19 pandemic, the Company is providing second quarter outlook only at this time, with the objective of reverting to full year outlook as the impacts of the pandemic and related economic recovery are better understood and visibility improves. For the second quarter of 2021, the Company expects TriMas’ consolidated sales to range between
All of the above amounts considered as 2021 guidance are after adjusting for any current or future amounts that may be considered Special Items, and in the case of adjusted diluted earnings per share, acquisition-related intangible asset amortization expense for deals that have not yet been consummated. The inability to predict the amount and timing of the impacts of these Special Items makes a detailed reconciliation of these forward-looking non-GAAP financial measures impracticable.(4)
Conference Call Information
TriMas will host its first quarter 2021 earnings conference call today, Thursday, April 29, 2021, at 10 a.m. ET. The call-in number is (866) 248-8441. Participants should request to be connected to the TriMas first quarter 2021 earnings conference call (Confirmation Code 7033534). The conference call will also be simultaneously webcast via TriMas' website at www.trimascorp.com, under the "Investors" section, with an accompanying slide presentation. A replay of the conference call will be available on the TriMas website or by dialing (888) 203-1112 (Replay Passcode 7033534) beginning April 29, 2021 at 3 p.m. ET through May 6, 2021 at 3 p.m. ET.
Notice Regarding Forward-Looking Statements
Any "forward-looking" statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, contained herein, including those relating to TriMas’ business, financial condition or future results, involve risks and uncertainties with respect to, including, but not limited to: the severity and duration of the ongoing coronavirus (“COVID-19”) pandemic on our operations, customers and suppliers, as well as related actions taken by governmental authorities and other third parties in response, each of which is uncertain, rapidly changing and difficult to predict; general economic and currency conditions; material and energy costs; risks and uncertainties associated with intangible assets, including goodwill or other intangible asset impairment charges; competitive factors; future trends; our ability to realize our business strategies; our ability to identify attractive acquisition candidates, successfully integrate acquired operations or realize the intended benefits of such acquisitions; information technology and other cyber-related risks; the performance of our subcontractors and suppliers; supply constraints; market demand; intellectual property factors; litigation; government and regulatory actions, including, without limitation, climate change legislation and other environmental regulations, as well as the impact of tariffs, quotas and surcharges; our leverage; liabilities imposed by our debt instruments; labor disputes; changes to fiscal and tax policies; contingent liabilities relating to acquisition activities; the disruption of operations from catastrophic or extraordinary events, including natural disasters and public health crises; the potential impact of Brexit; our future prospects; and other risks that are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
In this release, certain non-GAAP financial measures are used. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in Appendix I at the end of this release. Management believes that presenting these non-GAAP financial measures provides useful information to investors by helping them identify underlying trends in the Company’s businesses and facilitating comparisons of performance with prior and future periods and to the Company’s peers. These non-GAAP financial measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.
Reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are provided only for the expected impact of amortization of acquisition-related intangible assets for completed acquisitions, as the Company is unable to provide estimates of future Special Items(1) or amortization from future acquisitions without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of such items impacting comparability and the periods in which such items may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Additional information is available at www.trimascorp.com under the “Investors” section.
(1) |
Appendix I details certain costs, expenses and other amounts or charges, collectively described as "Special Items," that are included in the determination of net income, earnings per share and/or cash flows from operating activities under GAAP, but that management believes should be separately considered when evaluating the quality of the Company’s core operating results, given they may not reflect the ongoing activities of the business. |
|
(2) |
The Company defines Free Cash Flow as Net Cash Provided by/Used for Operating Activities, excluding the cash impact of Special Items, less Capital Expenditures. Please see Appendix I for additional details. |
|
(3) |
The Company defines Net Debt as Total Debt less Cash and Cash Equivalents. Please see Appendix I for additional details. |
|
| (4) | The Company defines adjusted diluted earnings per share as net income (per GAAP), plus or minus the after-tax impact of Special Items(1), plus the after-tax impact of non-cash acquisition-related intangible asset amortization expense. While the acquisition-related intangible assets aid in the Company’s revenue generation, the Company adjusts for the non-cash amortization expense because the Company believes it (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of financial results over multiple periods, and (iii) provides more relevant comparisons of financial results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. |
About TriMas
TriMas is a global manufacturer and provider of products for customers primarily in the consumer products, aerospace and industrial end markets, with approximately 3,200 dedicated employees in 11 countries. We provide customers with a wide range of innovative and quality product solutions through our market-leading businesses. Our TriMas family of businesses has strong brand names in the end markets served, and operates under a common set of values and strategic priorities under the TriMas Business Model. TriMas is publicly traded on the NASDAQ under the ticker symbol “TRS,” and is headquartered in Bloomfield Hills, Michigan. For more information, please visit www.trimascorp.com.
TriMas Corporation Condensed Consolidated Balance Sheet (Dollars in thousands) |
|||||||
|
|
March 31,
|
|
December 31,
|
|||
Assets |
|
(unaudited) |
|
|
|||
Current assets: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
421,140 |
|
|
$ |
73,950 |
Receivables, net |
|
128,000 |
|
|
113,410 |
||
Inventories |
|
151,820 |
|
|
149,380 |
||
Prepaid expenses and other current assets |
|
17,960 |
|
|
15,090 |
||
Total current assets |
|
718,920 |
|
|
351,830 |
||
Property and equipment, net |
|
251,150 |
|
|
253,060 |
||
Operating lease right-of-use assets |
|
36,450 |
|
|
37,820 |
||
Goodwill |
|
300,610 |
|
|
303,970 |
||
Other intangibles, net |
|
199,010 |
|
|
206,200 |
||
Deferred income taxes |
|
15,700 |
|
|
19,580 |
||
Other assets |
|
21,460 |
|
|
21,420 |
||
Total assets |
|
$ |
1,543,300 |
|
|
$ |
1,193,880 |
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FAQ
What were TriMas' first-quarter sales figures for 2021?
TriMas reported first-quarter net sales of $206.7 million, a 13.1% increase from $182.8 million in Q1 2020.
How much did TriMas' operating profit increase in Q1 2021?
TriMas' operating profit increased to $21.1 million in Q1 2021, compared to $19.8 million in Q1 2020.
What is the projected sales range for TriMas in Q2 2021?
TriMas expects consolidated sales for Q2 2021 to range between $205 million and $223 million.
What was the Free Cash Flow generated by TriMas in Q1 2021?
TriMas reported Free Cash Flow of $10.3 million for Q1 2021, significantly up from $1.8 million in the prior year.
How did the Packaging segment perform in the first quarter of 2021?
The Packaging segment achieved record sales growth of 32% compared to the previous year.
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TRS Stock Data
1.10B
33.77M
16.77%
101.74%
5.78%
Packaging & Containers
Metal Forgings & Stampings
United States of America
BLOOMFIELD HILLS
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