TriMas Corp. (TRS) Reports In-Line Q4 EPS, Revenues Beat; Offers FY19 EPS Mid-Point Guidance Below Consensus

TriMas Corp. (NASDAQ: TRS) reported Q4 EPS of $0.38, in-line with the analyst estimate of $0.38. Revenue for the quarter came in at $211.4 million versus the consensus estimate of $205.72 million.

• TriMas reported fourth quarter net sales of $211.4 million, an increase of 8.3% compared to $195.2 million in fourth quarter 2017.
• The Company reported operating profit of $25.5 million in fourth quarter 2018 compared to $18.6 million in fourth quarter 2017.
• Adjusting for Special Items(1), fourth quarter 2018 adjusted operating profit was $25.7 million, an increase of 9.4% compared to the prior year period, as the favorable impact of volume increases was partially offset by higher material costs.
• The Company reported fourth quarter 2018 net income of $16.7 million, or $0.36 per diluted share, compared to a net loss of $4.0 million, or $0.09 per diluted share, in fourth quarter 2017 primarily related to one-time tax charges of approximately $12.7 million resulting from the enactment of the Tax Cuts and Jobs Act of 2017.
• Fourth quarter 2018 adjusted net income(1) was $17.5 million, or $0.38 per diluted share, a 21.0% increase from $14.5 million, or $0.31 per diluted share, in the prior year period.

"We are pleased to report another strong quarter to conclude 2018, a year in which we achieved 7% organic sales growth and 25% adjusted earnings per share growth compared to the prior year," said Thomas Amato, TriMas President and Chief Executive Officer. "This performance demonstrated great execution by our team, as we continued to leverage the TriMas Business Model to enhance our businesses and better serve our customers, all while generating excellent cash flow and completing the year with a strong balance sheet. During the year, we successfully overcame the impact of higher material costs and the onset of tariffs through improved operating performance, incremental volume and commercial actions."

"In addition to the strong operational and financial performance, we achieved continued progress on numerous strategic initiatives that better position TriMas for profitable growth in the future. For example, we completed numerous Kaizen projects which accelerated our continuous improvement efforts and ramped-up our corporate development initiatives, closing on the acquisition of Plastic Srl in January 2019. We also executed upon our share buyback program, retiring nearly 1% of shares outstanding, or approximately 443,000 shares, during the year."

"In 2019, our objectives are to continue our momentum under the TriMas Business Model, better position our businesses strategically to drive growth through innovation, and capitalize on market opportunities through manufacturing efficacy. We anticipate organic sales growth of 3% to 5% compared to 2018, and free cash flow conversion greater than 100% of net income, both in line with our longer-term targets. We expect full year 2019 diluted EPS to range between $1.82 to $1.92 per share. Our performance in 2018 was outstanding, and we remain excited about our prospects for 2019 and beyond," Amato concluded.

GUIDANCE:

TriMas Corp. sees FY2019 EPS of $1.82-$1.92, versus the consensus of $1.88.

For earnings history and earnings-related data on TriMas Corp. (TRS) click here.

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