TriMas Corp. (TRS) Tops Q4 EPS by 23c, Revenues Beat; Offers 1Q EPS Outlook

TriMas Corp. (NASDAQ: TRS) reported Q4 EPS of $0.54, $0.23 better than the analyst estimate of $0.31. Revenue for the quarter came in at $188.2 million versus the consensus estimate of $176.97 million.

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.

GUIDANCE:

TriMas Corp. sees Q1 2021 EPS of $0.34-$0.39, versus the consensus of $0.36.

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)

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

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