TriMas Corp. (TRS) Tops Q3 EPS by 6c, Revenues Beat

TriMas Corp. (NASDAQ: TRS) reported Q3 EPS of $0.43, $0.06 better than the analyst estimate of $0.37. Revenue for the quarter came in at $199.46 million versus the consensus estimate of $192.63 million.

TriMas Highlights

• Increased third quarter net sales by 5.9%, driven by record sales in TriMas' Packaging group
• Generated third quarter net cash provided by operating activities from continuing operations of $48.3 million, an increase of 73.4% compared to $27.8 million in third quarter 2019
• Resumed the Company’s share buyback program during third quarter given strong cash flow; $165.1 million available under current repurchase authorization
• Ended quarter with $389.2 million of unrestricted cash and aggregate availability, and a leverage ratio of 1.4x
• Announced an agreement to acquire Affaba & Ferrari, a designer and manufacturer of engineered caps and closures for food and beverage, and industrial applications, further expanding TriMas’ Packaging group

"As we move through the fourth quarter of 2020, I would like to once again thank all of our employees for their commitment and dedication during this unprecedented time," said Thomas Amato, TriMas President and Chief Executive Officer. "Through our combined efforts, we delivered solid third quarter results, exceeding our third quarter 2019 performance, as well as our expectations at the onset of the pandemic. Given the robust sales activity in our Packaging group, we achieved a third quarter sales growth rate of 5.9%, and adjusted diluted EPS from continuing operations(1) of $0.43, a 19.4% increase compared to third quarter of 2019.

"During the quarter, we also achieved Free Cash Flow(2) of $41.6 million, more than double the Free Cash Flow in third quarter 2019, and approximately 223% of adjusted net income(1). Our strong cash flow, coupled with our disciplined approach to managing the balance sheet and capital deployment, positions TriMas well for the future. We remain focused on maintaining our financial and strategic flexibility which enables us to fund organic growth initiatives and pursue strategic bolt-on acquisitions, as well as return capital to shareholders through our share re-purchase program.

"While 2020 has undoubtedly been challenging, it has also provided us with an opportunity to demonstrate the strength of our presence in a diverse set of end markets. Our businesses have solid, experienced management teams, dedicated employees, innovative products and exceptional customer focus. We will continue to leverage the TriMas Business Model to drive performance across all of our businesses to capture additional opportunities, while taking any necessary realignment steps to improve future performance when certain markets recover," Amato concluded.

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

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