Company Provides 2023 Outlook
TriMas (NASDAQ: TRS) today announced financial results for the
fourth quarter and full year ended December 31, 2022.
TriMas Highlights
- Increased net sales for the year by 3.1%, with continued strong
order backlog within TriMas' Aerospace and Specialty Products
groups
- Achieved 2022 operating profit of $99.1 million, a 4.2%
increase compared to 2021
- Expanded TriMas Packaging group's product offering for the life
sciences end market with the foundational acquisitions of Intertech
and Omega Plastics
- Recently announced the acquisitions of Aarts Packaging and
Weldmac Manufacturing
- Provided an approximate 3% return of capital yield to
shareholders via share buybacks and dividends in 2022
Fourth Quarter 2022
TriMas reported fourth quarter net sales of $203.3 million, a
decrease of 2.7% compared to $209.0 million in fourth quarter 2021,
as organic growth in TriMas' Aerospace and Specialty Products
groups, and acquisition-related sales were more than offset by
lower demand for TriMas Packaging's products used in certain
consumer goods and industrial applications, and the impact of
unfavorable currency exchange. The Company reported operating
profit of $26.3 million in fourth quarter 2022 compared to $17.6
million in fourth quarter 2021. Adjusting for Special Items(1),
fourth quarter 2022 adjusted operating profit was $36.3 million
compared to $24.5 million in the prior year period. During fourth
quarter 2022, the favorable impacts of price increases and the
successful completion of a property divestiture, resulting in a
$17.6 million pre-tax gain, more than offset the impact of lower
sales and cost absorption, less favorable product sales mix, and
continuing supply and labor constraints.
The Company reported fourth quarter 2022 net income of $18.8
million, or $0.45 per diluted share, compared to $12.8 million, or
$0.30 per diluted share, in fourth quarter 2021. Adjusting for
Special Items(1), fourth quarter 2022 adjusted net income(2) was
$22.9 million, a 14.0% increase compared to $20.1 million in the
prior year period, primarily as a result of higher operating profit
in fourth quarter 2022, partially offset by a higher effective tax
rate. Fourth quarter 2022 adjusted diluted earnings per share(2)
was $0.62, an increase of 10.7% compared to $0.56, in the prior
year period.
Full Year 2022
For the full year 2022, TriMas reported net sales of $883.8
million, an increase of 3.1% compared to $857.1 million in 2021, as
organic sales growth in TriMas' Specialty Products group and
acquisition-related sales more than offset the lower demand for
certain TriMas Packaging's products used in consumer goods
applications and the impact of unfavorable currency exchange. In
addition, stronger than anticipated orders within TriMas' Aerospace
group overcame the planned reduction of special stocking orders
which benefited TriMas Aerospace in 2021. The Company reported
operating profit of $99.1 million in 2022, compared to $95.1
million in 2021. Adjusting for Special Items(1), 2022 adjusted
operating profit was $116.2 million, an increase of 3.1% compared
to $112.8 million in the prior year period, as the favorable
impacts of more than $22 million of pre-tax property divestiture
gains and pricing initiatives more than offset lower sales and cost
absorption, less favorable product sales mix, higher energy costs,
and supply and labor constraints.
The Company reported full year 2022 net income of $66.2 million,
or $1.56 per diluted share, compared to $57.3 million, or $1.32 per
diluted share, in 2021. Full year 2022 adjusted net income(2) was
$75.9 million, a 5.9% decrease compared to $80.6 million in 2021,
and adjusted diluted earnings per share(2) was $2.12 compared to
$2.24 in 2021. The year-over-year reductions in adjusted net
income(2) and adjusted diluted earnings per share(2) were impacted
by a higher effective tax rate.
"As we closed out the year, our results came in largely as
anticipated," said Thomas Amato, TriMas President and Chief
Executive Officer. "While we acknowledge there were macro-economic
challenges in the year, we leveraged our TriMas Business Model to
flex manufacturing costs where practical, while remaining mindful
of what we believed may be a temporary demand effect. We also
swiftly executed on two property divestitures to unlock cash and
earnings value for the Company, which supplemented our second half
2022 performance."
"During the fourth quarter, we achieved adjusted diluted EPS(2)
of $0.62 on a sales decline of 2.7%, with pockets of strength and
strong backlogs in certain of our end markets. To date, our
proactive operational and treasury actions have enabled TriMas to
be well-positioned for unprecedented market conditions, enabling
our continued focus on our long-range objectives. Looking to 2023,
notwithstanding a more cautious near-term outlook, our ability to
generate compelling annual cash flow allows us to continue to
invest in innovation, pursue acquisitions, pay a dividend and
opportunistically repurchase shares."
"We also continued to make substantial progress on our ESG
journey, and we are committed to continuously enhancing our
sustainability strategy and positively impacting society. I believe
TriMas is better positioned today than ever to create long-term
value for our customers, employees and shareholders, while at the
same time benefiting our global community. We are confident that
TriMas’ diversified end market model, commitment to innovation, low
leverage, cash generation profile and dedicated global workforce
will provide value creating opportunities, even in challenging
periods," Amato concluded.
Financial Position
During 2022, the Company used $64.1 million for acquisitions,
repurchased nearly 1.3 million shares of its outstanding common
stock for $36.9 million, and reduced its net outstanding shares by
approximately 2.6%. TriMas also paid a quarterly cash dividend of
$0.04 per share of TriMas Corporation stock, totaling $6.9 million,
in 2022. In 2022, the Company provided an approximate return of
capital yield to its shareholders of 3% between share buybacks and
quarterly dividends.
TriMas ended 2022 with $410.0 million of cash and aggregate
availability under its revolving credit facility, $112.1 million of
cash on hand and a leverage ratio of 1.9x as defined in the
Company's credit agreement. TriMas reported total debt of $394.7
million and Net Debt(3) of $282.6 million as of December 31,
2022.
The Company reported net cash provided by operating activities
of $25.9 million for fourth quarter 2022, compared to $56.5 million
in fourth quarter 2021. On a full year basis, TriMas reported net
cash provided by operating activities of $72.6 million, compared to
$134.2 million for 2021. As a result, the Company reported Free
Cash Flow(4) of $14.2 million for fourth quarter 2022 compared to
$43.9 million in fourth quarter 2021. For 2022, TriMas reported
Free Cash Flow(4) of $43.1 million compared to $99.6 million in
2021. Please see Appendix I for further details.
Fourth Quarter Segment
Results
TriMas' Packaging segment net sales for the fourth quarter
decreased 14.5%, including 3.8% of unfavorable currency exchange,
compared to the year ago period, as sales from recent acquisitions
were more than offset by lower demand, most notably for certain
product lines for the personal care and industrial submarkets.
Fourth quarter operating profit and the related margin percentage
declined, as a result of lower sales levels and the related
absorption of costs, and a less favorable product sales mix. During
first quarter 2023, the Company closed on the acquisition of Aarts
Packaging, an innovative, luxury packaging solutions provider for
beauty and lifestyle brands, as well as for customers in the food
and life sciences end markets.
TriMas' Aerospace segment net sales for the fourth quarter
increased 6.5% compared to the year ago period, driven by increased
aerospace production demand and acquisition-related sales, which
more than offset the planned reduction in special stocking orders,
which were predominantly fulfilled in 2021. Fourth quarter
operating profit and the related margin decreased, as the impact of
higher sales was more than offset by the impact of continued supply
chain and labor constraints, increased input costs, and a less
favorable product sales mix related to the 2021 higher margin
special stocking orders. During the period, demand increased within
TriMas Aerospace commensurate with increased market demand for
commercial aerospace applications, adding to the sales backlog.
Earlier today, the Company announced an agreement to acquire the
operating net assets of Weldmac Manufacturing Company, a leading
designer and manufacturer of high-performance, complex metal
fabricated components and assemblies for the aerospace, defense and
space launch end markets.
TriMas' Specialty Products segment net sales for the fourth
quarter increased 24.2% compared to the year ago period, primarily
due to higher demand for steel cylinders used in construction and
HVAC applications, as well as increased sales of engines and
replacement parts for stationary power generation units, as demand
has increased in natural gas and crude oil extraction activity.
Fourth quarter operating profit and the related margin level
increased, as a result of higher sales and the positive impact of
previous factory floor improvement actions more than offset
inflationary pressures.
Outlook
The Company expects TriMas' 2023 consolidated sales to increase
10% to 15% compared to 2022. The Company expects full year 2023
adjusted diluted earnings per share(2) to be between $2.00 to $2.20
per share. For first quarter 2023, adjusted diluted earnings per
share(2) is anticipated to be in the range of $0.24 to $0.28. In
addition, the Company is targeting full year 2023 Free Cash Flow(4)
to be greater than 100% of net income.
"While we do not customarily provide quarterly guidance, we
believe it prudent to provide first quarter guidance today given it
is not indicative of our expectations for the remainder of 2023. We
are forecasting a demand recovery within TriMas Packaging as we
move through 2023, as our customers continue to work through high
inventory levels, and we collectively assess changes in consumer
confidence. As such, we anticipate first quarter EPS to be lower
than the prior year quarter, and are forecasting sequential
improvement in the second and third quarters driven by a reversion
to a more normalized seasonal selling period, which did not occur
in 2022. We remain excited about our prospects for the future, and
believe our strategy to deploy our strong cash flow to augment
TriMas' core growth with acquisitions will continue to drive
long-term value for our shareholders," commented Amato.
The above outlook includes the impact of all announced
acquisitions. All of the above amounts considered as 2023 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.(1)
Conference Call
Information
TriMas will host its fourth quarter and full year 2022 earnings
conference call today, Thursday, February 23, 2023, at 10:00 a.m.
ET. To participate via phone, please dial (877) 407-0890 (U.S. and
Canada) or +1 (201) 389-0918 (outside the U.S. and Canada) and ask
to be connected to the TriMas Corporation fourth quarter and full
year 2022 earnings conference call. 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 (877)
660-6853 (U.S. and Canada) or +1 (201) 612-7415 (outside the U.S.
and Canada) with a meeting ID of 13735882, beginning February 23,
2023 at 3:00 p.m. ET through March 9, 2023 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: general economic and currency conditions; the severity and
duration of the ongoing coronavirus (“COVID-19”) pandemic;
competitive factors; market demand; 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; pressures on our supply
chain, including availability of raw materials and inflationary
pressures on raw material and energy costs, and customers; the
performance of our subcontractors and suppliers; risks and
uncertainties associated with intangible assets, including goodwill
or other intangible asset impairment charges; risks associated with
a concentrated customer base; information technology and other
cyber-related risks; risks related to our international operations,
including, but not limited to, risks relating to rising tensions
between the United States and China; government and regulatory
actions, including, without limitation, climate change legislation
and other environmental regulations, as well as the impact of
tariffs, quotas and surcharges; changes to fiscal and tax policies;
intellectual property factors; uncertainties associated with our
ability to meet customers’ and suppliers’ sustainability and
environmental, social and governance (“ESG”) goals and achieve our
sustainability and ESG goals in alignment with our own announced
targets; litigation; contingent liabilities relating to acquisition
activities; interest rate volatility; our leverage; liabilities
imposed by our debt instruments; labor disputes and shortages; the
disruption of operations from catastrophic or extraordinary events,
including, but not limited to, natural disasters, geopolitical
conflicts and public health crises, such as the ongoing coronavirus
pandemic; the amount and timing of future dividends and/or share
repurchases, which remain subject to Board approval and depend on
market and other conditions; 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, 2022. The risks described are
not the only risks facing our Company. Additional risks and
uncertainties not currently known to us or that we currently deemed
to be immaterial also may materially adversely affect our business,
financial position and results of operations or cash flows. 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 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.
(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 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.
About TriMas
TriMas manufactures a diverse set of products primarily for the
consumer products, aerospace and industrial markets through its
TriMas Packaging, TriMas Aerospace and Specialty Products groups.
Our approximately 3,500 dedicated employees in 13 countries 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,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
112,090
$
140,740
Receivables, net
132,370
125,630
Inventories
163,360
152,450
Prepaid expenses and other current
assets
14,840
12,950
Total current assets
422,660
431,770
Property and equipment, net
277,750
265,630
Operating lease right-of-use assets
47,280
50,650
Goodwill
339,810
315,490
Other intangibles, net
188,110
196,730
Deferred income taxes
9,400
9,740
Other assets
19,990
33,630
Total assets
$
1,305,000
$
1,303,640
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable
$
85,210
$
87,800
Accrued liabilities
46,660
58,980
Operating lease liabilities, current
portion
8,280
8,120
Total current liabilities
140,150
154,900
Long-term debt, net
394,730
393,820
Operating lease liabilities
41,010
43,780
Deferred income taxes
20,940
21,260
Other long-term liabilities
56,340
59,030
Total liabilities
653,170
672,790
Total shareholders' equity
651,830
630,850
Total liabilities and shareholders'
equity
$
1,305,000
$
1,303,640
TriMas Corporation
Consolidated Statement of
Income
(Dollars in thousands, except
share and per share amounts)
Three months ended
December 31,
Twelve months ended
December 31,
2022
2021
2022
2021
(unaudited)
Net sales
$
203,310
$
208,970
$
883,830
$
857,110
Cost of sales
(157,730
)
(159,580
)
(675,530
)
(639,920
)
Gross profit
45,580
49,390
208,300
217,190
Selling, general and administrative
expenses
(36,710
)
(31,800
)
(131,190
)
(121,970
)
Net gain (loss) on dispositions of
assets
17,410
—
21,950
(130
)
Operating profit
26,280
17,590
99,060
95,090
Other expense, net:
Interest expense
(3,600
)
(3,400
)
(14,110
)
(14,510
)
Debt financing and related expenses
—
—
—
(10,520
)
Other income (expense), net
1,870
(150
)
2,720
(950
)
Other expense, net
(1,730
)
(3,550
)
(11,390
)
(25,980
)
Income before income tax expense
24,550
14,040
87,670
69,110
Income tax expense
(5,710
)
(1,220
)
(21,500
)
(11,800
)
Net income
$
18,840
$
12,820
$
66,170
$
57,310
Basic earnings per share:
Net income per share
$
0.45
$
0.30
$
1.57
$
1.33
Weighted average common shares - basic
41,905,216
42,842,566
42,249,244
43,006,922
Diluted earnings per share:
Net income per share
$
0.45
$
0.30
$
1.56
$
1.32
Weighted average common shares -
diluted
42,139,729
43,086,974
42,478,015
43,281,076
TriMas Corporation
Consolidated Statement of Cash
Flows
(Dollars in thousands)
Twelve months ended
December 31,
2022
2021
Cash Flows from Operating
Activities:
Net income
$
66,170
$
57,310
Adjustments to reconcile income to net
cash provided by operating activities, net of acquisition
impact:
(Gain) loss on dispositions of assets
(21,950
)
130
Depreciation
34,120
31,890
Amortization of intangible assets
19,100
21,560
Amortization of debt issue costs
910
960
Deferred income taxes
(1,400
)
1,680
Non-cash compensation expense
9,840
9,500
Debt financing and related expenses
—
10,520
Change in legacy liability estimate
5,590
1,450
Increase in receivables
(6,650
)
(11,180
)
Increase in inventories
(6,970
)
(960
)
Decrease in prepaid expenses and other
assets
6,120
5,030
Increase (decrease) in accounts payable
and accrued liabilities
(29,130
)
2,120
Other operating activities
(3,180
)
4,210
Net cash provided by operating
activities
72,570
134,220
Cash Flows from Investing
Activities:
Capital expenditures
(45,960
)
(45,060
)
Acquisition of businesses, net of cash
acquired
(64,100
)
(34,340
)
Cross-currency swap terminations
26,230
—
Net proceeds from dispositions of property
and equipment
28,790
220
Net cash used for investing activities
(55,040
)
(79,180
)
Cash Flows from Financing
Activities:
Retirement of senior notes
—
(300,000
)
Proceeds from issuance of senior notes
—
400,000
Proceeds from borrowings on revolving
credit facilities
12,000
—
Repayments of borrowings on revolving
credit facilities
(12,000
)
(48,620
)
Debt financing fees and senior notes
redemption premium
—
(13,570
)
Payments to purchase common stock
(36,920
)
(19,090
)
Shares surrendered upon exercise and
vesting of equity awards to cover taxes
(2,380
)
(5,230
)
Dividends paid
(6,880
)
(1,740
)
Net cash provided by (used for) financing
activities
(46,180
)
11,750
Cash and Cash Equivalents:
Increase (decrease) for the year
(28,650
)
66,790
At beginning of year
140,740
73,950
At end of year
$
112,090
$
140,740
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
12,960
$
13,280
Cash paid for income taxes
$
20,060
$
10,520
Appendix I
TriMas Corporation
Additional Information
Regarding Special Items Impacting
Reported GAAP Financial
Measures
(Unaudited - dollars in
thousands)
Three months ended
December 31,
Twelve months ended
December 31,
2022
2021
2022
2021
Packaging
Net sales
$
105,640
$
123,530
$
522,180
$
533,260
Operating profit
$
14,280
$
20,000
$
81,000
$
96,490
Special Items to consider in evaluating
operating profit:
Purchase accounting costs
—
—
760
830
Business restructuring and severance
costs
840
2,140
4,440
4,040
Adjusted operating profit
$
15,120
$
22,140
$
86,200
$
101,360
Aerospace
Net sales
$
50,760
$
47,660
$
188,090
$
183,340
Operating profit (loss)
$
(1,240
)
$
2,670
$
8,060
$
13,270
Special Items to consider in evaluating
operating profit:
Business restructuring and severance
costs
2,660
840
3,420
2,490
Purchase accounting costs
—
—
400
—
Adjusted operating profit
$
1,420
$
3,510
$
11,880
$
15,760
Specialty Products
Net sales
$
46,910
$
37,780
$
173,560
$
140,510
Operating profit
$
9,480
$
5,360
$
30,250
$
22,550
Corporate Expenses
Operating profit (loss)
$
3,760
$
(10,440
)
$
(20,250
)
$
(37,220
)
Special Items to consider in evaluating
operating profit (loss):
Change in legacy liability estimate for
asbestos-related costs
5,590
1,450
5,590
1,450
M&A diligence and transaction
costs
900
2,070
2,050
2,900
Business restructuring and severance
costs
—
430
510
5,950
Adjusted operating profit (loss)
$
10,250
$
(6,490
)
$
(12,100
)
$
(26,920
)
Total Company
Net sales
$
203,310
$
208,970
$
883,830
$
857,110
Operating profit
$
26,280
$
17,590
$
99,060
$
95,090
Total Special Items to consider in
evaluating operating profit
9,990
6,930
17,170
17,660
Adjusted operating profit
$
36,270
$
24,520
$
116,230
$
112,750
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,
2022
2021
2022
2021
Net income, as reported
$
18,840
$
12,820
$
66,170
$
57,310
Special Items to consider in evaluating
quality of net income:
Change in legacy liability estimate for
asbestos-related costs
5,590
1,450
5,590
1,450
Business restructuring and severance
costs
3,500
3,410
8,520
13,090
M&A diligence and transaction
costs
900
2,070
2,050
2,900
Purchase accounting costs
—
—
1,160
830
Reversal of a contingent deferred purchase
price liability
(3,560
)
—
(3,560
)
—
Debt financing and related expenses
—
—
—
10,520
Income tax effect of Special Items (1)
(2,350
)
350
(4,060
)
(5,480
)
Adjusted net income
$
22,920
$
20,100
$
75,870
$
80,620
Three months ended
December 31,
Twelve months ended
December 31,
2022
2021
2022
2021
Diluted earnings per share, as
reported
$
0.45
$
0.30
$
1.56
$
1.32
Special Items to consider in evaluating
quality of EPS:
Change in legacy liability estimate for
asbestos-related costs
0.13
0.03
0.13
0.03
Business restructuring and severance
costs
0.08
0.08
0.20
0.30
M&A diligence and transaction
costs
0.02
0.05
0.05
0.07
Purchase accounting costs
—
—
0.03
0.02
Reversal of a contingent deferred purchase
price liability
(0.08
)
—
(0.08
)
—
Debt financing and related expenses
—
—
—
0.24
Income tax effect of Special Items (1)
(0.06
)
0.01
(0.10
)
(0.12
)
Pre-tax amortization of
acquisition-related intangible assets
0.11
0.12
0.45
0.50
Income tax benefit on amortization of
acquisition-related intangible assets (1)
(0.03
)
(0.03
)
(0.12
)
(0.12
)
Adjusted diluted EPS
$
0.62
$
0.56
$
2.12
$
2.24
Weighted-average shares outstanding
(2)
42,139,729
43,086,974
42,478,015
43,281,076
(1)
Income tax effect of Special Items and
amortization of acquisition-related intangible assets is calculated
on an item-by-item basis, utilizing the tax rate in the
jurisdiction where the Special Item or amortization occurred. For
the three and twelve month periods ended December 31, 2022 and
2021, 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.
Appendix I
TriMas Corporation
Additional Information
Regarding Special Items Impacting
Reported GAAP Financial
Measures
(Unaudited - dollars in
thousands)
Three months ended December
31,
2022
2021
As reported
Special Items
As adjusted
As reported
Special Items
As adjusted
Net cash provided by operating
activities
$
25,930
$
2,390
$
28,320
$
56,480
$
2,630
$
59,110
Less: Capital expenditures
(14,120
)
—
(14,120
)
(15,210
)
—
(15,210
)
Free Cash Flow
11,810
2,390
14,200
41,270
2,630
43,900
Net income
18,840
4,080
22,920
12,820
7,280
20,100
Free Cash Flow as a percentage of net
income
63
%
62
%
322
%
218
%
Twelve months ended December
31,
2022
2021
As reported
Special Items
As adjusted
As reported
Special Items
As adjusted
Net cash provided by operating
activities
$
72,570
$
16,480
$
89,050
134,220
$
10,400
$
144,620
Less: Capital expenditures
(45,960
)
—
(45,960
)
(45,060
)
—
(45,060
)
Free Cash Flow
26,610
16,480
43,090
89,160
10,400
99,560
Net income
66,170
9,700
75,870
57,310
23,310
80,620
Free Cash Flow as a percentage of net
income
40
%
57
%
156
%
123
%
December 31,
2022
December 31,
2021
Long-term debt, net
$
394,730
$
393,820
Less: Cash and cash equivalents
112,090
140,740
Net Debt
$
282,640
$
253,080
Appendix I
TriMas Corporation
Reconciliation of GAAP to
Non-GAAP Financial Measures
Forecasted Diluted Earnings
Per Share Guidance
(Unaudited - dollars per
share)
Twelve months ended
December 31, 2023
Low
High
Diluted earnings per share (GAAP)
$
1.67
$
1.87
Pre-tax amortization of
acquisition-related intangible assets (1)
0.45
0.45
Income tax benefit on amortization of
acquisition-related intangible assets
(0.12
)
(0.12
)
Impact of Special Items (2)
—
—
Adjusted diluted earnings per share
$
2.00
$
2.20
(1)
These amounts relate to acquisitions
announced as of February 23, 2023. The Company is unable to provide
forward-looking estimates of future acquisitions, if any, that have
not yet been consummated.
(2)
The Company is unable to provide
forward-looking estimates of Special Items without unreasonable
effort, due to the uncertainty and inherent difficulty of
predicting the occurrence and the financial impact of such items
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005286/en/
Sherry Lauderback VP, Investor Relations & Communications
(248) 631-5506 sherrylauderback@trimascorp.com
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