TriMas Corp. (TRS) Tops Q1 EPS by 3c, Revenues Beat; Offers 2Q EPS Guidance Above Consensus, Provides 2Q Revenue Outlook

TriMas Corp. (NASDAQ: TRS) reported Q1 EPS of $0.40, $0.03 better than the analyst estimate of $0.37. Revenue for the quarter came in at $206.7 million versus the consensus estimate of $195.56 million.

TriMas Highlights

• Increased first quarter net sales by 13.1%, driven by record first quarter sales in TriMas' Packaging segment
• Increased operating profit due to continued momentum in TriMas' Packaging segment and margin expansion in the Specialty Products segment
• Completed the successful refinancing of its capital structure, extending maturities on both its credit facility and senior notes, and locking in a historically low rate on its fixed rate debt
• Announced Chief Financial Officer transition as part of succession planning

"Overall, we are off to an encouraging start to 2021 with first quarter results that exceeded our initial expectations," said Thomas Amato, TriMas President and Chief Executive Officer. "During the first quarter, we achieved a sales growth rate of 13.1%, and adjusted diluted EPS(1) of $0.40, resulting primarily from the positive momentum in TriMas' Packaging segment and better-than-expected performance in the TriMas' Specialty Products segment. We demonstrated yet again TriMas' ability to navigate varying economic cycles, while delivering strong financial performance through our multi-industry family of businesses and our dedicated global team.

"Our solid execution in the quarter was complemented by our disciplined and balanced approach to capital allocation and managing our balance sheet. We continue to balance investing in our businesses for long-term growth, augmenting organic growth with M&A and providing shareholder returns through share repurchases. During the quarter, we also successfully completed the refinancing of our revolver and fixed rate debt by extending maturities and taking advantage of historically low rates.

"One year removed from the global pandemic's initial impact, through our proactive actions, we believe we are a stronger company and well-positioned for the future when demand recovers in several of our businesses. We are a leaner organization and are poised to capitalize on new market opportunities as they arise. While there are still continued market uncertainties arising from the global COVID-19 pandemic, we remain focused on leveraging our TriMas Business Model to improve all of our businesses, thereby creating long-term shareholder value," Amato concluded.

GUIDANCE:

TriMas Corp. sees Q2 2021 EPS of $0.50-$0.57, versus the consensus of $0.45. TriMas Corp. sees Q2 2021 revenue of $205-223 million, versus the consensus of $213.58 million.

Given the continued market and related demand uncertainties arising from the global COVID-19 pandemic, the Company is providing second 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 second quarter of 2021, the Company expects TriMas’ consolidated sales to range between $205 million and $223 million, with sales in all three segments anticipated to increase year-over-year. The Company expects second quarter 2021 adjusted diluted earnings per share(4) in the range of $0.50 to $0.57 per share. The Company is prospectively modifying the adjusted earnings per share definition to add back intangible amortization expense related to acquisitions. Please see Exhibit 99.2 of the Form 8-K filed in connection with this earnings release for the historical adjusted diluted earnings per share amounts reflecting this modification. In addition, the Company is continuing to forecast 2021 Free Cash Flow(2) to be greater than 100% of net income.

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

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