TriMas' Packaging Group Achieves Record
Fourth Quarter and Full Year Sales
Company Provides First Quarter 2021
Outlook
TriMas (NASDAQ: TRS) today announced financial results for the
fourth quarter and full year ended December 31, 2020.
TriMas Highlights
- Increased fourth quarter and full year 2020 sales by 10.1% and
6.4%, respectively, driven by record sales in TriMas' Packaging
group
- Increased fourth quarter diluted EPS from continuing operations
80.0% to $0.54, while adjusted diluted EPS from continuing
operations(1) increased 22.6% to $0.38 compared to fourth quarter
2019
- Generated full year 2020 net cash provided by operating
activities from continuing operations of $127.4 million, an
increase of 33.1% compared to $95.7 million in 2019
- Ended 2020 with $312.3 million of unrestricted cash and
aggregate availability, and a net leverage ratio of 1.8x, even
after share repurchases and three acquisitions
- Acquired Affaba & Ferrari, a designer and manufacturer of
engineered caps and closures for food and beverage, and industrial
applications, further expanding TriMas’ Packaging group
Fourth Quarter 2020
TriMas reported fourth quarter net sales of $188.2 million, an
increase of 10.1% compared to $170.9 million in fourth quarter
2019, as robust organic sales growth in Packaging and the impact of
recent acquisitions were partially offset by the impact of weak
demand in the aerospace and industrial businesses resulting from
the effects of the COVID-19 pandemic. The Company reported
operating profit of $18.4 million in fourth quarter 2020 compared
to $20.8 million in fourth quarter 2019. Adjusting for Special
Items(1) primarily related to realignment and acquisition diligence
costs, fourth quarter 2020 adjusted operating profit was $21.1
million compared to $21.2 million in the prior year period, as the
impact of higher overall sales was offset primarily by lower
profitability of TriMas Aerospace.
The Company reported fourth quarter 2020 income from continuing
operations of $23.7 million, or $0.54 per diluted share, compared
to $13.4 million, or $0.30 per diluted share, in fourth quarter
2019. Adjusting for Special Items(1) including the favorable impact
of tax planning actions, fourth quarter 2020 adjusted income from
continuing operations(1) was $16.5 million, or $0.38 per diluted
share, an 18.3% increase compared to $13.9 million, or $0.31 per
diluted share, in the prior year period.
Full Year 2020
For the full year 2020, TriMas reported net sales of $770.0
million, an increase of 6.4% compared to $723.5 million in 2019,
driven by robust organic sales growth in Packaging and the impact
of recent acquisitions. The Company reported an operating loss of
$88.3 million in 2020, which included pre-tax, non-cash goodwill
and indefinite-lived intangible asset impairment charges of $134.6
million in its Aerospace segment during the third quarter of 2020,
compared to an operating profit of $91.2 million in 2019. Adjusting
for Special Items(1), 2020 adjusted operating profit was $100.2
million compared to $96.2 million in the prior year.
The Company reported a full year 2020 loss from continuing
operations of $79.8 million, or $(1.83) per diluted share, compared
to income from continuing operations of $61.9 million, or $1.36 per
diluted share, in 2019. Full year 2020 adjusted income from
continuing operations(1) was $68.9 million, or $1.57 per diluted
share, a 8.3% increase compared to $66.2 million, or $1.45 per
diluted share, in 2019.
"While 2020 presented us with unprecedented challenges, we
leveraged our TriMas Business Model to anticipate disruptions to
our plan, and in turn, took swift actions to implement changes to
both protect our workforce and meet customer demands," said Thomas
Amato, TriMas President and Chief Executive Officer. "Through our
multi-industry family of businesses and our dedicated global team,
we delivered solid financial results, and also continued to make
progress against TriMas’ overarching strategy.
"Our solid financial performance allowed us to achieve the full
year adjusted EPS(1) and Free Cash Flow(2) outlook we set forth at
the start of 2020 prior to the onset of the pandemic. We were able
to effectively convert on robust organic sales growth opportunities
in our Packaging group, and achieve higher consolidated sales,
earnings per share and cash flow from operating activities during
the fourth quarter compared to the year ago period. Our strong
execution was complemented by our disciplined and balanced approach
to capital allocation and managing our balance sheet. We remain
focused on maintaining our financial and strategic flexibility,
which will enable us to continue to fund organic growth initiatives
and pursue strategic acquisitions to build out our Packaging and
Aerospace platforms, as well as return capital to shareholders
through share repurchases.
"Given the continued market uncertainties arising from the
global COVID-19 pandemic, we are providing first quarter outlook at
this time. We expect first quarter sales growth of 4% to 9%
compared to first quarter 2020, and first quarter 2021 adjusted
diluted EPS(1) is expected to range from $0.34 to $0.39 per share.
We remain focused on leveraging our TriMas Business Model to drive
performance across all of our businesses, capturing available
market opportunities and taking further realignment steps where
demand remains weak, all to improve future performance when certain
markets recover," Amato concluded.
Financial Position
The Company reported net cash provided by operating activities
from continuing operations of $48.3 million for fourth quarter
2020, compared to $35.1 million generated in fourth quarter 2019.
On a full year basis, TriMas reported net cash provided by
operating activities from continuing operations of $127.4 million
compared to $95.7 million for 2019. As a result, the Company
reported Free Cash Flow(2) of $26.8 million for fourth quarter 2020
compared to $28.3 million in fourth quarter 2019. For 2020, TriMas
reported Free Cash Flow of $95.4 million, an increase of 34.3%
compared to $71.0 million in 2019. The Company exceeded its
previously provided 2020 Free Cash Flow guidance of greater than
100% of income from continuing operations. Please see Appendix I
for further details.
During 2020, the Company used $193.5 million for acquisitions
and repurchased 1,582,049 shares, or approximately 3.6% of its
outstanding common stock, for $39.4 million. As of December 31,
2020, $161.7 million remained available under the Company's
repurchase authorization.
TriMas ended 2020 with $312.3 million of unrestricted cash and
aggregate availability under its revolving credit facility, and a
leverage ratio of 1.8x as defined in the Company's credit
agreement. TriMas reported total debt of $346.3 million as of
December 31, 2020, compared to $294.7 million as of December 31,
2019. The Company ended the quarter with Net Debt(3) of $272.3
million, compared to $122.2 million as of December 31, 2019.
Fourth Quarter Results - From
Continuing Operations
Packaging (Approximately 63% of TriMas 2020 net
sales)
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 fourth quarter increased 32.2%
compared to the year ago period, primarily as a result of higher
demand for dispensing pumps and closure products sold into
applications that help fight the spread of germs or are used in
cleaning. Higher sales of products used in food and beverage
applications, as well as acquisition-related sales, also
contributed to the increase. Fourth quarter operating profit
increased as the impact of higher sales more than offset a less
favorable product sales mix, inefficiencies related to the impact
of the pandemic on production planning and operations, and higher
selling, general and administrative expenses related to
acquisitions and the investment in sales growth initiatives. During
fourth quarter 2020, the Company closed on the acquisition of
Affaba & Ferrari, a designer and manufacturer of engineered
caps and closures for food and beverage, and industrial
applications, further expanding TriMas’ Packaging group.
Aerospace (Approximately 22% of TriMas 2020 net
sales)
TriMas' Aerospace segment, which includes the Monogram Aerospace
Fasteners™, Allfast Fastening Systems®, Mac Fasteners™, RSA
Engineered Products™ (RSA) 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 fourth quarter
decreased 23.5% compared to the year ago period, primarily due the
impact of significantly lower air travel and reduced commercial and
business jet production as a result of the global pandemic,
partially offset by the sales increase related to the acquisition
of RSA completed in February 2020. Fourth quarter operating profit
and the related margin percentage decreased due to the reduced
sales and lower absorption of fixed costs, as well as production
inefficiencies due to the impacts of the pandemic on operations.
The Company continues to focus on adjusting cost structures to
better align with lower demand due to the pandemic, while balancing
its priority of investing in new and innovative products to support
its global customers.
Specialty Products (Approximately 15% of TriMas 2020 net
sales)
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, HVAC, medical,
military, industrial, and oil and gas end markets. Norris Cylinder
is the only steel cylinder manufacturer in North America, and
represents the majority of sales in this segment. Fourth quarter
net sales decreased 5.9% compared to the year ago period, as the
increase in sales of industrial high pressure cylinders was more
than offset by lower demand for engines and compressors used in oil
and gas applications. Fourth quarter operating profit and the
related margin level increased, as a result of the higher cylinder
sales and related more favorable product sales mix, and the
positive impact of previous realignment actions taken in the
businesses. The Company has taken actions to better align cost
structures with sales demand in the end markets impacted by the
global pandemic, including streamlining the Arrow Engine product
line offering.
Non-cash Impairment
Charges
During the third quarter of 2020, the Company recorded pre-tax,
non-cash goodwill and indefinite-lived intangible asset impairment
charges of $134.6 million in its Aerospace segment. This charge was
a result of a decline in its aerospace-related business' financial
results, a significant reduction in its financial projections for
the remainder of 2020 compared with prior projections, and
uncertainty around the duration and magnitude of the impact of the
COVID-19 pandemic on future financial results given their
dependence on future levels of air travel and new aircraft builds.
These non-cash impairment charges do not impact the Company’s
liquidity, cash flows, compliance with debt covenants, or any
future operations.
Discontinued Operations
On December 20, 2019, the Company completed the sale of its
Lamons business, a provider of sealing products for the oil and gas
end markets, with annual revenues of approximately $180 million.
Upon completion of the sale of Lamons, on a pro forma basis, TriMas
reduced its sales exposure to the oil and gas end market from more
than 20% of total sales in 2019 to less than 2% in 2020. The
results of operations of Lamons, which were previously reported in
the Specialty Products segment, as well as the one-time costs
incurred in connection with the sale, are included in discontinued
operations for all periods presented.
Outlook
Given the continued market uncertainties arising from the global
COVID-19 pandemic, the Company is providing first 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
first quarter of 2021, the Company expects TriMas’ consolidated
sales to increase 4% to 9% as compared to first quarter 2020, with
sales in the Packaging segment anticipated to increase, partially
offset by continued weaker demand in the Aerospace and Specialty
Products segments. The Company expects first quarter 2021 adjusted
diluted earnings per share(1) in the range of $0.34 to $0.39 per
share, compared to adjusted diluted earnings per share of $0.34 in
first quarter 2020. In addition, the Company is targeting 2021 Free
Cash Flow(2) to be greater than 100% of net income.
"As we move through the next couple of months, we believe we
will be able to better assess customer demands and future order
patterns for our products that are both positively and negatively
impacted by the pandemic. In 2021, our objective remains to execute
against our long-term growth strategy, driving growth through
product and process innovation, as well as via acquisitions, while
continuing to apply a disciplined approach to capital allocation.
We remain excited about our prospects for the future, and believe
our strategic actions during the past two years to focus TriMas on
the more attractive packaging and aerospace markets for the
long-term will continue to drive value for our shareholders." said
Amato.
All of the above amounts considered as 2021 guidance are after
adjusting for any current or future amounts that may be considered
Special Items. 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 fourth quarter and full year 2020 earnings
conference call today, Thursday, February 25, 2021, at 10:00 a.m.
ET. The call-in number is (800) 353-6461. Participants should
request to be connected to the TriMas Corporation fourth quarter
and full year 2020 earnings conference call (Confirmation Code
6413483). 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 6413483) beginning February 25, 2021 at
3:00 p.m. ET through March 4, 2021 at 3:00 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. 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. Management believes that presenting
these non-GAAP financial measures, adjusted to remove the impact of
Special Items, 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. These non-GAAP financial measures should be considered in
addition to, and not as a replacement for or superior to, the
comparable GAAP financial measures.
(2)
The Company defines Free Cash Flow as Net
Cash Provided by/Used for Operating Activities from Continuing
Operations, 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)
Reconciliations of these forward-looking
non-GAAP financial measures to the most directly comparable GAAP
financial measures are not provided because the Company is unable
to provide such reconciliations 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.
About TriMas
TriMas is a 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
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)
December 31,
2020
December 31,
2019
Assets
Current assets:
Cash and cash equivalents
$
73,950
$
172,470
Receivables, net
113,410
108,860
Inventories
149,380
132,660
Prepaid expenses and other current
assets
15,090
20,050
Total current assets
351,830
434,040
Property and equipment, net
253,060
214,330
Operating lease right-of-use assets
37,820
27,850
Goodwill
303,970
334,640
Other intangibles, net
206,200
161,390
Deferred income taxes
19,580
500
Other assets
21,420
19,950
Total assets
$
1,193,880
$
1,192,700
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable
$
69,910
$
72,670
Accrued liabilities
60,540
42,020
Operating lease liabilities, current
portion
6,740
5,100
Total current liabilities
137,190
119,790
Long-term debt, net
346,290
294,690
Operating lease liabilities
31,610
23,100
Deferred income taxes
24,850
16,830
Other long-term liabilities
69,690
40,810
Total liabilities
609,630
495,220
Total shareholders' equity
584,250
697,480
Total liabilities and shareholders'
equity
$
1,193,880
$
1,192,700
TriMas Corporation
Consolidated Statement of
Operations
(Dollars in thousands, except
share and per share amounts)
Three months ended
December 31,
Twelve months ended
December 31,
2020
2019
2020
2019
(unaudited)
Net sales
$
188,170
$
170,920
$
769,970
$
723,530
Cost of sales
(141,620)
(126,590)
(587,890)
(529,630)
Gross profit
46,550
44,330
182,080
193,900
Selling, general and administrative
expenses
(27,990)
(23,440)
(134,480)
(102,530)
Net loss on dispositions of assets
(210)
(100)
(1,290)
(150)
Impairment of goodwill and
indefinite-lived intangible assets
—
—
(134,600)
—
Operating profit (loss)
18,350
20,790
(88,290)
91,220
Other expense, net:
Interest expense
(3,400)
(3,500)
(14,660)
(13,950)
Other income (expense), net
390
(260)
240
990
Other expense, net
(3,010)
(3,760)
(14,420)
(12,960)
Income (loss) before income tax
expense
15,340
17,030
(102,710)
78,260
Income tax (benefit) expense
8,350
(3,600)
22,950
(16,320)
Income (loss) from continuing
operations
23,690
13,430
(79,760)
61,940
Income from discontinued operations, net
of income taxes
—
24,970
—
36,680
Net income (loss)
$
23,690
$
38,400
$
(79,760)
$
98,620
Basic earnings (loss) per
share:
Continuing operations
$
0.55
$
0.30
$
(1.83)
$
1.37
Discontinued operations
—
0.56
—
0.81
Net income (loss) per share
$
0.55
$
0.86
$
(1.83)
$
2.18
Weighted average common shares - basic
43,202,937
44,868,503
43,581,232
45,303,659
Diluted earnings (loss) per
share:
Continuing operations
$
0.54
$
0.30
$
(1.83)
$
1.36
Discontinued operations
—
0.55
—
0.80
Net income (loss) per share
$
0.54
$
0.85
$
(1.83)
$
2.16
Weighted average common shares -
diluted
43,493,781
45,144,353
43,581,232
45,595,154
TriMas Corporation
Consolidated Statement of Cash
Flows
(Dollars in thousands)
Twelve months ended
December 31,
2020
2019
Cash Flows from Operating
Activities:
Net income (loss)
$
(79,760)
$
98,620
Income from discontinued operations
—
36,680
Income (loss) from continuing
operations
(79,760)
61,940
Adjustments to reconcile income (loss)
from continuing operations to net cash provided by operating
activities, net of acquisition impact:
Impairment of goodwill and
indefinite-lived intangible assets
134,600
—
Loss on dispositions of assets
1,290
150
Depreciation
29,020
24,870
Amortization of intangible assets
20,750
18,630
Amortization of debt issue costs
1,150
1,130
Deferred income taxes
(33,710)
2,100
Non-cash compensation expense
8,170
6,450
Non-cash change in legacy liability
estimate
23,400
—
Decrease in receivables
9,580
3,280
Decrease in inventories
3,980
740
Decrease (increase) in prepaid expenses
and other assets
4,400
(6,930)
Increase (decrease) in accounts payable
and accrued liabilities
4,490
(12,780)
Other operating activities
50
(3,870)
Net cash provided by operating activities
of continuing operations
127,410
95,710
Net cash used for operating activities of
discontinued operations
—
(20,110)
Net cash provided by operating
activities
127,410
75,600
Cash Flows from Investing
Activities:
Capital expenditures
(40,480)
(29,670)
Acquisition of businesses, net of cash
acquired
(193,540)
(67,090)
Net proceeds from dispositions of
businesses, property and equipment
1,950
128,080
Net cash provided by (used for) investing
activities of continuing operations
(232,070)
31,320
Net cash used for investing activities of
discontinued operations
—
(2,240)
Net cash provided by (used for) investing
activities
(232,070)
29,080
Cash Flows from Financing
Activities:
Proceeds from borrowings on revolving
credit facilities
367,280
189,060
Repayments of borrowings on revolving
credit facilities
(319,120)
(189,340)
Payments to purchase common stock
(39,420)
(36,740)
Shares surrendered upon exercise and
vesting of equity awards to cover taxes
(2,600)
(3,340)
Net cash provided by (used for) financing
activities of continuing operations
6,140
(40,360)
Net cash provided by financing activities
of discontinued operations
—
—
Net cash provided by (used for) financing
activities
6,140
(40,360)
Cash and Cash Equivalents:
Increase (decrease) for the year
(98,520)
64,320
At beginning of year
172,470
108,150
At end of year
$
73,950
$
172,470
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
13,210
$
12,430
Cash paid for income taxes
$
9,060
$
44,020
Appendix I
TriMas Corporation
Additional Information
Regarding Special Items Impacting
Reported GAAP Financial
Measures
Continuing Operations
(Unaudited - dollars in
thousands)
Three months ended
December 31,
Twelve months ended
December 31,
2020
2019
2020
2019
Packaging
Net sales
$
124,340
$
94,030
$
488,340
$
392,340
Operating profit
$
23,650
$
20,750
$
93,990
$
80,770
Special Items to consider in evaluating
operating profit:
Reversal of a contingent deferred purchase
price liability
—
(3,950)
—
(3,950)
Purchase accounting costs
—
—
750
1,280
Business restructuring and severance
costs
500
2,700
3,230
3,060
Adjusted operating profit
$
24,150
$
19,500
$
97,970
$
81,160
Aerospace
Net sales
$
37,080
$
48,460
$
167,740
$
194,110
Operating profit (loss)
$
(810)
$
7,680
$
(133,440)
$
28,950
Special Items to consider in evaluating
operating profit:
Impairment of goodwill and
indefinite-lived intangible assets
—
—
134,600
—
Pre-acquisition contingent liability
—
—
2,000
—
Business restructuring and severance
costs
1,300
—
9,410
440
Purchase accounting costs
—
—
2,030
—
Adjusted operating profit
$
490
$
7,680
$
14,600
$
29,390
Specialty Products
Net sales
$
26,750
$
28,430
$
113,890
$
137,080
Operating profit
$
3,480
$
2,270
$
4,350
$
16,000
Special Items to consider in evaluating
operating profit:
Business restructuring and severance
costs
—
200
9,700
200
Adjusted operating profit
$
3,480
$
2,470
$
14,050
$
16,200
Corporate Expenses
Operating loss
$
(7,970)
$
(9,910)
$
(53,190)
$
(34,500)
Special Items to consider in evaluating
operating loss:
Change in accounting policy for
asbestos-related costs
—
—
23,400
—
M&A diligence and transaction
costs
920
1,440
2,700
3,960
Business restructuring and severance
costs
—
—
640
—
Adjusted operating loss
$
(7,050)
$
(8,470)
$
(26,450)
$
(30,540)
Total Company
Net sales
$
188,170
$
170,920
$
769,970
$
723,530
Operating profit (loss)
$
18,350
$
20,790
$
(88,290)
$
91,220
Total Special Items to consider in
evaluating operating profit
2,720
390
188,460
4,990
Adjusted operating profit
$
21,070
$
21,180
$
100,170
$
96,210
Appendix I
TriMas Corporation
Additional Information
Regarding Special Items Impacting
Reported GAAP Financial
Measures
(Unaudited - dollars in
thousands, except share and per share amounts)
Three months ended
December 31,
Twelve months ended
December 31,
2020
2019
2020
2019
Income (loss) from continuing operations,
as reported
$
23,690
$
13,430
$
(79,760)
$
61,940
Special Items to consider in evaluating
quality of income (loss) from continuing operations:
Impairment of goodwill and
indefinite-lived intangible assets
—
—
134,600
—
Change in accounting policy for
asbestos-related costs
—
—
23,400
—
Business restructuring and severance
costs
1,800
2,900
22,980
3,700
M&A diligence and transaction
costs
920
1,440
3,000
3,960
Purchase accounting costs
—
—
2,780
1,280
Reversal of a contingent deferred purchase
price liability
—
(3,950)
—
(3,950)
Pre-acquisition contingent liability
—
—
2,000
—
Change in recognized tax benefits
(9,040)
—
(9,040)
—
Income tax effect of Special Items (1)
(880)
120
(31,070)
(740)
Adjusted income from continuing
operations
$
16,490
$
13,940
$
68,890
$
66,190
Three months ended
December 31,
Twelve months ended
December 31,
2020
2019
2020
2019
Diluted earnings (loss) per share from
continuing operations, as reported
$
0.54
$
0.30
$
(1.83)
$
1.36
Dilutive impact (2)
—
—
0.01
—
Special Items to consider in evaluating
quality of EPS from continuing operations:
Impairment of goodwill and
indefinite-lived intangible assets
—
—
3.07
—
Change in accounting policy for
asbestos-related costs
—
—
0.53
—
Business restructuring and severance
costs
0.04
0.07
0.52
0.08
M&A diligence and transaction
costs
0.02
0.03
0.07
0.09
Purchase accounting costs
—
—
0.06
0.03
Reversal of a contingent deferred purchase
price liability
—
(0.09)
—
(0.09)
Pre-acquisition contingent liability
—
—
0.05
—
Change in recognized tax benefits
(0.20)
—
(0.20)
—
Income tax effect of Special Items (1)
(0.02)
—
(0.71)
(0.02)
Adjusted diluted EPS from continuing
operations
$
0.38
$
0.31
$
1.57
$
1.45
Weighted-average shares outstanding
43,493,781
45,144,353
43,821,123
45,595,154
(1)
Income tax effect of Special Items is
calculated on an item-by-item basis, utilizing the tax rate in the
jurisdiction where the Special Item occurred. For the three and
twelve month periods ended December 31, 2020 and 2019, the income
tax effect of Special Items varied from the tax rate inherent in
the Company's reported GAAP results, primarily as a result of
certain discrete items that occurred during the period for GAAP
reporting purposes.
(2)
239,891 shares for the twelve months ended
December 31, 2020, would have been dilutive to the computation of
earnings per share in an income position.
Appendix I
TriMas Corporation
Additional Information
Regarding Special Items Impacting
Reported GAAP Financial
Measures
(Unaudited - dollars in
thousands)
Three months ended December
31,
2020
2019
As reported
Special Items
As adjusted
As reported
Special Items
As adjusted
Net cash provided by operating activities
from continuing operations
$
48,300
$
1,350
$
49,650
$
35,100
$
830
$
35,930
Less: Capital expenditures
(22,810)
—
(22,810)
(7,670)
—
(7,670)
Free Cash Flow
25,490
1,350
26,840
27,430
830
28,260
Income from continuing operations
23,690
(7,200)
16,490
13,430
510
13,940
Free Cash Flow as a percentage of income
from continuing operations
108
%
163
%
204
%
203
%
Twelve months ended December
31,
2020
2019
As reported
Special Items
As adjusted
As reported
Special Items
As adjusted
Net cash provided by operating activities
from continuing operations
$
127,410
$
8,450
$
135,860
95,710
$
4,960
$
100,670
Less: Capital expenditures
(40,480)
—
(40,480)
(29,670)
—
(29,670)
Free Cash Flow
86,930
8,450
95,380
66,040
4,960
71,000
Income (loss) from continuing
operations
(79,760)
148,650
68,890
61,940
4,250
66,190
Free Cash Flow as a percentage of income
(loss) from continuing operations
(109)
%
138
%
107
%
107
%
December 31,
2020
December 31,
2019
Long-term debt, net
$
346,290
$
294,690
Less: Cash and cash equivalents
73,950
172,470
Net Debt
$
272,340
$
122,220
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225005150/en/
Sherry Lauderback VP, Investor Relations & Communications
(248) 631-5506 sherrylauderback@trimascorp.com
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