Company Reports Growth in Income(1)
and EPS(1) of More Than 30%
Raises Full Year 2015 EPS and Free Cash Flow Guidance
TriMas Corporation (NASDAQ: TRS) today announced financial results for
the quarter ended September 30, 2015. The Company reported third quarter
net sales from continuing operations of $222.2 million, relatively flat
as compared to third quarter 2014. The Company reported third quarter
2015 income from continuing operations attributable to TriMas
Corporation of $11.7 million, or $0.26 per diluted share, as compared to
income of $11.1 million, or $0.24 per diluted share, in the third
quarter of 2014. Excluding Special Items(1), third quarter
2015 diluted earnings per share from continuing operations would have
been $0.39, a 34.5% improvement from $0.29 in third quarter 2014.
TriMas Highlights
-
Improved income and earnings per share from continuing operations by
30.9% and 34.5%, respectively, excluding the impact of Special Items(1),
compared to the third quarter of 2014.
-
Announced and began implementing a broadly-focused Financial
Improvement Plan, targeting cost actions which are expected to yield
approximately $15 million of annual savings, and improve the Company’s
profitability, cash flow conversion and operational efficiency.
-
Improved operating profit margin(1) by 300 basis points
with improvements in Packaging, Aerospace and Energy, and a reduction
in corporate expenses as compared to third quarter 2014.
-
Continued to execute on reorganization and integration initiatives in
Packaging and Aerospace, the Company's highest margin businesses, to
drive future growth and margin expansion.
-
Launched the TriMas Aerospace Engineering Research and Technology team
to partner with the Company's aerospace customers to support
innovation and application growth; TriMas Aerospace also recognized as
the Embraer 2015 Hardware Supplier of the Year.
"While our third quarter sales were relatively flat year-over-year, we
achieved 300 basis points of margin expansion and an increase of 34.5%
in earnings per share(1)," said David Wathen, TriMas
President and Chief Executive Officer. "We realized year-over-year
operating profit margin improvements in three out of four of our
segments, reduced corporate expenses as compared to a year ago, and
realigned our engine and compressor business' cost structure to break
even despite a 60% decline in sales year-over-year. We were able to
achieve these results in an environment of global macroeconomic
uncertainty, with external headwinds related to continued low
oil-related activity, a strong U.S. dollar and relative weakness in our
industrial end markets."
"In addition, our team is aggressively implementing our Financial
Improvement Plan announced in September, pursuing cost actions to
accelerate business improvement initiatives that maintain or enhance
margins across the company. With significant uncertainty in many end
markets and economies, we continually assess and implement measures to
improve our operations and financial position. We expect this
broad-based set of cost reductions to position us for improved margins
and free cash flow in 2016, in spite of top-line headwinds. While our
immediate focus remains on cost reduction, we also continue to invest in
initiatives that will drive future profitable growth," Wathen continued.
"Based on our third quarter performance and the current trends we are
experiencing, we are updating our full year 2015 outlook from continuing
operations, slightly lowering sales guidance, while increasing projected
earnings per share from $1.15 to $1.25, to $1.25 to $1.30, excluding any
future events that may be considered Special Items. We are also
increasing 2015 Free Cash Flow outlook to be between $50 million and $60
million. As we move forward, we are focused on mitigating the
challenging growth environment, while driving enhanced profitability
through cost reduction actions and investment in higher-return
projects." Wathen concluded.
Third Quarter Financial Results - From
Continuing Operations
-
TriMas reported third quarter net sales of $222.2 million, relatively
flat as compared to $222.3 million in third quarter 2014. The positive
impact of recent acquisitions and organic initiatives was offset by
sales declines resulting from the impact of lower oil prices,
macroeconomic uncertainty and $3.6 million of unfavorable currency
exchange, primarily in Packaging and Energy.
-
The Company reported operating profit of $21.6 million in third
quarter 2015, an increase of 5.1% as compared to third quarter 2014.
Excluding Special Items(1) related to severance and
business restructuring, third quarter 2015 operating profit would have
been $29.9 million, an increase of 28.6% as compared to $23.2 million
during third quarter 2014. Third quarter 2015 operating profit margin,
excluding Special Items(1), increased 300 basis points to
13.4%, as a result of improvements in Packaging, Aerospace and Energy,
and a reduction in corporate expenses as compared to third quarter
2014.
-
Third quarter 2015 income from continuing operations attributable to
TriMas Corporation was $11.7 million, or $0.26 per diluted share,
compared to $0.24 per diluted share in third quarter 2014. Excluding
Special Items(1), third quarter 2015 income from continuing
operations attributable to TriMas Corporation would have been $17.8
million, or $0.39 per diluted share, an improvement of 34.5% as
compared to $0.29 in third quarter 2014.
-
The Company reported Free Cash Flow (defined as Net Cash Provided by
Operating Activities of Continuing Operations, excluding the cash
impact of the Financial Improvement Plan, less Capital Expenditures)
of $1.5 million for third quarter 2015 as compared to $8.0 million in
third quarter 2014. On a year-to-date basis, the Company generated
$9.1 million of Free Cash Flow and expects to generate between $50
million and $60 million for full year 2015.
Discontinued Operations
On June 30, 2015, the Company completed the spin-off of its Cequent
businesses (comprised of the Cequent Americas and Cequent APEA
reportable segments), creating a new independent publicly-traded
company, Horizon Global Corporation, through a distribution of 100% of
the Company's interest in Horizon Global to holders of TriMas common
shares. The results of operations of the Cequent businesses, as well as
the one-time costs incurred in connection with the separation of the two
companies, are included in discontinued operations for all periods
presented.
Financial Position
TriMas reported total indebtedness of $459.4 million as of September 30,
2015, as compared to $638.6 million as of December 31, 2014, and $338.3
million as of September 30, 2014. The Company used the cash distribution
from Horizon Global to reduce the outstanding borrowings in conjunction
with the spin-off of the Cequent businesses. The increase in total
indebtedness from the year ago period is related to the additional
borrowings in October 2014 to fund the acquisition of Allfast Fastening
Systems, net the reduction resulting from the Horizon Global
distribution. TriMas ended third quarter 2015 with $129.7 million of
cash and aggregate availability under its revolving credit and accounts
receivable facilities.
Business Segment Results - From Continuing
Operations(2)
Packaging
Net sales for the third quarter decreased 1.6% as compared to the year
ago period, primarily as a result of unfavorable currency exchange,
partially offset by increased specialty systems product sales due to the
acquisition of Lion Holdings in the third quarter of 2014. Third quarter
operating profit and the related margin percentage increased due to
reductions in certain acquisition-related liabilities, lower material
costs, a favorable shift in product mix and lower selling, general and
administrative costs, partially offset by continued investment in global
capabilities and unfavorable currency exchange. The Company continues to
develop specialty dispensing and closure applications for growing end
markets, including personal care, cosmetic, pharmaceutical, nutrition
and food/beverage, and expand into growing markets.
Aerospace
Net sales for the third quarter increased 65.6% as compared to the year
ago period, primarily due to the results of Allfast, which was acquired
in October 2014, and higher demand from OE customers, partially offset
by lower sales to large distribution customers. Third quarter operating
profit and the related margin percentage increased by 400 basis points
due to the higher sales levels and related operating leverage, continued
productivity initiatives and a more favorable product mix, partially
offset by increased selling, general and administrative costs related to
the acquisition. The Company is focused on integrating and leveraging
its aerospace businesses to better serve its customers, improving
manufacturing efficiencies and throughput, and developing and qualifying
additional highly-engineered products for aerospace applications.
Energy
Third quarter net sales increased 2.6% as compared to the year ago
period, as increased North American sales, primarily related to higher
levels of engineering and construction activity, more than offset
reduced demand levels from upstream customers related to lower oil
prices, lower sales in China and Brazil due to restructuring activities
in those regions, and the impact of unfavorable currency exchange. Third
quarter operating profit and the related margin percentage increased by
260 basis points as compared to the prior year period as a result of the
higher sales levels, a more favorable product sales mix, improved
manufacturing efficiencies and reduced selling, general and
administrative costs. The Company has accelerated the restructuring
actions in this business to drive manufacturing and operational
improvements, optimize its global footprint and increase sales of its
higher-margin, specialty products.
Engineered Components
Third quarter net sales decreased 32.6% as compared to the year ago
period, primarily due to lower sales of engines and compressors
resulting from the impact of lower oil prices, as well as decreased
sales of industrial cylinders related to weaker demand in industrial end
markets and lower levels of export sales due to the strong U.S. dollar.
Third quarter operating profit and the related margin percentage also
decreased, primarily due to the reduced sales level and lower fixed cost
absorption related to engine and compression products, which were
partially offset by cost reductions and productivity initiatives. The
Company has responded to the dramatic drop in oil prices and the impact
on engine and compressor demand by reducing its fixed cost structure,
and continues to drive new product sales and expand its international
sales efforts.
2015 Outlook
The Company is updating its full year 2015 outlook from continuing
operations, slightly lowering sales outlook, while increasing earnings
per share and Free Cash Flow guidance. Given external headwinds related
to continued low levels of oil activity, lower macroeconomic growth and
weakness in industrial end markets, the Company is estimating that 2015
sales will be relatively flat on a year-over-year basis. The Company is
increasing its full-year 2015 diluted earnings per share outlook, from
$1.15 to $1.25, to $1.25 to $1.30, excluding any future events that may
be considered Special Items, as a result of the performance in the third
quarter, as well as the modest impact of the Financial Improvement Plan
expected in the fourth quarter of 2015. In addition, the Company is
increasing 2015 Free Cash Flow outlook, (defined as Net Cash Provided by
Operating Activities of Continuing Operations, excluding the cash impact
of the Financial Improvement Plan, less Capital Expenditures), to be
between $50 million and $60 million, as compared to $30 million to $40
million previously.
Conference Call Information
TriMas Corporation will host its third quarter 2015 earnings conference
call today, Thursday, October 29, 2015, at 10 a.m. ET. The call-in
number is (888) 427-9376. Participants should request to be connected to
the TriMas Corporation third quarter 2015 earnings conference call
(Conference ID #284954). 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 (888) 203-1112 (Replay Code #284954) beginning October 29,
2015 at 3 p.m. ET through November 5, 2015 at 3 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, but not limited to, those
relating to the Company’s business, financial condition or future
results, involve risks and uncertainties, including, but not limited to,
risks and uncertainties with respect to: the Company's leverage;
liabilities imposed by the Company's debt instruments; market demand;
competitive factors; supply constraints; material and energy costs;
risks and uncertainties associated with intangible assets, including
goodwill or other intangible asset impairment charges; technology
factors; litigation; government and regulatory actions; the Company's
accounting policies; future trends; general economic and currency
conditions; various conditions specific to the Company's business and
industry; the Company’s ability to integrate Allfast and attain the
expected synergies, including that the acquisition is accretive; the
Company’s ability to attain the Financial Improvement Plan targeted
savings and free cash flow amounts; future prospects of the Company; and
other risks that are detailed in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2014. 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.
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 at the end of
this release. Additional information is available at www.trimascorp.com
under the “Investors” section.
About TriMas
Headquartered in Bloomfield Hills, Michigan, TriMas Corporation (NASDAQ:
TRS) provides engineered and applied products for growing markets
worldwide. TriMas is organized into four reportable segments: Packaging,
Aerospace, Energy and Engineered Components. TriMas has approximately
4,000 employees at more than 50 facilities in 16 countries. For more
information, visit www.trimascorp.com.
(1)
|
|
Appendix I details certain costs, expenses and other charges,
collectively described as “Special Items,” that are included in the
determination of net income from continuing operations attributable
to TriMas Corporation under GAAP, but that management would consider
important in evaluating the quality of the Company's operating
results.
|
(2)
|
|
Business Segment Results include Operating Profit that excludes the
impact of Special Items. For a complete schedule of Special Items by
segment, see “Company and Business Segment Financial Information -
Continuing Operations.”
|
|
|
|
|
|
TriMas Corporation
|
Condensed Consolidated Balance Sheet
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
Assets
|
|
(unaudited)
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
22,460
|
|
|
$
|
24,420
|
Receivables, net
|
|
144,600
|
|
|
132,800
|
Inventories
|
|
176,410
|
|
|
171,260
|
Deferred income taxes
|
|
24,030
|
|
|
24,030
|
Prepaid expenses and other current assets
|
|
12,550
|
|
|
8,690
|
Current assets, discontinued operations
|
|
—
|
|
|
197,420
|
Total current assets
|
|
380,050
|
|
|
558,620
|
Property and equipment, net
|
|
174,320
|
|
|
177,470
|
Goodwill
|
|
455,430
|
|
|
460,080
|
Other intangibles, net
|
|
281,230
|
|
|
297,420
|
Other assets
|
|
21,930
|
|
|
27,960
|
Non-current assets, discontinued operations
|
|
—
|
|
|
140,200
|
Total assets
|
|
$
|
1,312,960
|
|
|
$
|
1,661,750
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current maturities, long-term debt
|
|
$
|
13,860
|
|
|
$
|
23,400
|
Accounts payable
|
|
84,060
|
|
|
103,510
|
Accrued liabilities
|
|
61,870
|
|
|
63,110
|
Current liabilities, discontinued operations
|
|
—
|
|
|
119,900
|
Total current liabilities
|
|
159,790
|
|
|
309,920
|
Long-term debt
|
|
445,560
|
|
|
615,170
|
Deferred income taxes
|
|
42,350
|
|
|
46,320
|
Other long-term liabilities
|
|
57,400
|
|
|
64,450
|
Non-current liabilities, discontinued operations
|
|
—
|
|
|
35,260
|
Total liabilities
|
|
705,100
|
|
|
1,071,120
|
Total shareholders' equity
|
|
607,860
|
|
|
590,630
|
Total liabilities and shareholders' equity
|
|
$
|
1,312,960
|
|
|
$
|
1,661,750
|
|
|
|
|
|
TriMas Corporation
|
Consolidated Statement of Income
|
(Unaudited - dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
222,190
|
|
|
$
|
222,330
|
|
|
$
|
671,220
|
|
|
$
|
663,870
|
|
Cost of sales
|
|
(159,720
|
)
|
|
(162,460
|
)
|
|
(484,110
|
)
|
|
(480,800
|
)
|
Gross profit
|
|
62,470
|
|
|
59,870
|
|
|
187,110
|
|
|
183,070
|
|
Selling, general and administrative expenses
|
|
(40,910
|
)
|
|
(39,350
|
)
|
|
(123,320
|
)
|
|
(113,070
|
)
|
Operating profit
|
|
21,560
|
|
|
20,520
|
|
|
63,790
|
|
|
70,000
|
|
Other expense, net:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(3,440
|
)
|
|
(2,080
|
)
|
|
(10,610
|
)
|
|
(6,310
|
)
|
Debt financing and extinguishment costs
|
|
—
|
|
|
—
|
|
|
(1,970
|
)
|
|
—
|
|
Other expense, net
|
|
(720
|
)
|
|
(1,730
|
)
|
|
(2,330
|
)
|
|
(3,450
|
)
|
Other expense, net
|
|
(4,160
|
)
|
|
(3,810
|
)
|
|
(14,910
|
)
|
|
(9,760
|
)
|
Income from continuing operations before income tax expense
|
|
17,400
|
|
|
16,710
|
|
|
48,880
|
|
|
60,240
|
|
Income tax expense
|
|
(5,690
|
)
|
|
(5,620
|
)
|
|
(16,740
|
)
|
|
(21,020
|
)
|
Income from continuing operations
|
|
11,710
|
|
|
11,090
|
|
|
32,140
|
|
|
39,220
|
|
Income (loss) from discontinued operations, net of tax
|
|
—
|
|
|
11,140
|
|
|
(4,740
|
)
|
|
28,590
|
|
Net income
|
|
11,710
|
|
|
22,230
|
|
|
27,400
|
|
|
67,810
|
|
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
Net income attributable to TriMas Corporation
|
|
$
|
11,710
|
|
|
$
|
22,230
|
|
|
$
|
27,400
|
|
|
$
|
67,000
|
|
Basic earnings per share attributable to TriMas Corporation:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.26
|
|
|
$
|
0.24
|
|
|
$
|
0.71
|
|
|
$
|
0.85
|
|
Discontinued operations
|
|
—
|
|
|
0.25
|
|
|
(0.10
|
)
|
|
0.64
|
|
Net income per share
|
|
$
|
0.26
|
|
|
$
|
0.49
|
|
|
$
|
0.61
|
|
|
$
|
1.49
|
|
Weighted average common shares—basic
|
|
45,157,412
|
|
|
44,919,340
|
|
|
45,102,067
|
|
|
44,863,008
|
|
Diluted earnings per share attributable to TriMas Corporation:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.26
|
|
|
$
|
0.24
|
|
|
$
|
0.70
|
|
|
$
|
0.85
|
|
Discontinued operations
|
|
—
|
|
|
0.25
|
|
|
(0.10
|
)
|
|
0.63
|
|
Net income per share
|
|
$
|
0.26
|
|
|
$
|
0.49
|
|
|
$
|
0.60
|
|
|
$
|
1.48
|
|
Weighted average common shares—diluted
|
|
45,499,104
|
|
|
45,276,199
|
|
|
45,439,618
|
|
|
45,231,058
|
|
|
|
|
TriMas Corporation
|
Consolidated Statement of Cash Flow
|
(Unaudited - dollars in thousands)
|
|
|
|
|
|
Nine months ended
|
|
|
September 30,
|
|
|
2015
|
|
2014
|
Cash Flows from Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
27,400
|
|
|
$
|
67,810
|
|
Income (loss) from discontinued operations
|
|
(4,740
|
)
|
|
28,590
|
|
Income from continuing operations
|
|
32,140
|
|
|
39,220
|
|
Adjustments to reconcile net income to net cash provided by
operating activities, net of acquisition impact:
|
|
|
|
|
Loss on dispositions of property and equipment
|
|
590
|
|
|
430
|
|
Depreciation
|
|
16,430
|
|
|
15,350
|
|
Amortization of intangible assets
|
|
15,790
|
|
|
10,900
|
|
Amortization of debt issue costs
|
|
1,360
|
|
|
1,430
|
|
Deferred income taxes
|
|
(4,220
|
)
|
|
(7,120
|
)
|
Non-cash compensation expense
|
|
4,590
|
|
|
6,450
|
|
Excess tax benefits from stock based compensation
|
|
(300
|
)
|
|
(1,100
|
)
|
Debt financing and extinguishment costs
|
|
1,970
|
|
|
—
|
|
Increase in receivables
|
|
(15,790
|
)
|
|
(24,610
|
)
|
Increase in inventories
|
|
(7,010
|
)
|
|
(1,970
|
)
|
(Increase) decrease in prepaid expenses and other assets
|
|
(1,020
|
)
|
|
1,320
|
|
Increase (decrease) in accounts payable and accrued liabilities
|
|
(15,540
|
)
|
|
11,970
|
|
Other, net
|
|
(250
|
)
|
|
370
|
|
Net cash provided by operating activities of continuing operations,
net of acquisition impact
|
|
28,740
|
|
|
52,640
|
|
Net cash provided by (used for) operating activities of discontinued
operations
|
|
(14,030
|
)
|
|
12,260
|
|
Net cash provided by operating activities, net of acquisition impact
|
|
14,710
|
|
|
64,900
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
(20,360
|
)
|
|
(18,320
|
)
|
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
(27,510
|
)
|
Net proceeds from disposition of property and equipment
|
|
1,680
|
|
|
50
|
|
Net cash used for investing activities of continuing operations
|
|
(18,680
|
)
|
|
(45,780
|
)
|
Net cash used for investing activities of discontinued operations
|
|
(2,510
|
)
|
|
(2,510
|
)
|
Net cash used for investing activities
|
|
(21,190
|
)
|
|
(48,290
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
Proceeds from borrowings on term loan facilities
|
|
275,000
|
|
|
—
|
|
Repayments of borrowings on term loan facilities
|
|
(441,410
|
)
|
|
(6,660
|
)
|
Proceeds from borrowings on revolving credit and accounts receivable
facilities
|
|
995,620
|
|
|
732,480
|
|
Repayments of borrowings on revolving credit and accounts receivable
facilities
|
|
(1,006,490
|
)
|
|
(687,520
|
)
|
Payments for deferred purchase price
|
|
(5,810
|
)
|
|
—
|
|
Debt financing fees
|
|
(1,850
|
)
|
|
—
|
|
Distributions to noncontrolling interests
|
|
—
|
|
|
(580
|
)
|
Payment for noncontrolling interests
|
|
—
|
|
|
(51,000
|
)
|
Shares surrendered upon vesting of options and restricted stock
awards to cover tax obligations
|
|
(2,620
|
)
|
|
(2,780
|
)
|
Proceeds from exercise of stock options
|
|
430
|
|
|
480
|
|
Excess tax benefits from stock based compensation
|
|
300
|
|
|
1,100
|
|
Cash transferred to the Cequent businesses
|
|
(17,050
|
)
|
|
—
|
|
Net cash used for financing activities of continuing operations
|
|
(203,880
|
)
|
|
(14,480
|
)
|
Net cash provided by financing activities of discontinued operations
|
|
208,400
|
|
|
940
|
|
Net cash provided by (used for) financing activities
|
|
4,520
|
|
|
(13,540
|
)
|
Cash and Cash Equivalents:
|
|
|
|
|
Net increase (decrease) for the period
|
|
(1,960
|
)
|
|
3,070
|
|
At beginning of period
|
|
24,420
|
|
|
27,000
|
|
At end of period
|
|
$
|
22,460
|
|
|
$
|
30,070
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Cash paid for interest
|
|
$
|
12,320
|
|
|
$
|
7,960
|
|
Cash paid for taxes
|
|
$
|
22,260
|
|
|
$
|
25,610
|
|
|
|
|
|
|
TriMas Corporation
|
Company and Business Segment Financial Information
|
Continuing Operations
|
(Unaudited - dollars in thousands)
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Packaging
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
87,930
|
|
|
$
|
89,320
|
|
|
$
|
256,470
|
|
|
$
|
257,000
|
|
Operating profit
|
|
$
|
21,870
|
|
|
$
|
20,770
|
|
|
$
|
60,090
|
|
|
$
|
59,670
|
|
Special Items to consider in evaluating operating profit:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
$
|
280
|
|
|
$
|
620
|
|
|
$
|
710
|
|
|
$
|
620
|
|
Excluding Special Items, operating profit would have been
|
|
$
|
22,150
|
|
|
$
|
21,390
|
|
|
$
|
60,800
|
|
|
$
|
60,290
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
45,380
|
|
|
$
|
27,410
|
|
|
134,340
|
|
|
86,420
|
|
Operating profit
|
|
$
|
7,110
|
|
|
$
|
3,870
|
|
|
22,410
|
|
|
14,390
|
|
Special Items to consider in evaluating operating profit:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
$
|
1,120
|
|
|
$
|
—
|
|
|
2,740
|
|
|
—
|
|
Excluding Special Items, operating profit would have been
|
|
$
|
8,230
|
|
|
$
|
3,870
|
|
|
25,150
|
|
|
14,390
|
|
|
|
|
|
|
|
|
|
|
Energy
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
51,600
|
|
|
$
|
50,290
|
|
|
$
|
152,910
|
|
|
$
|
155,390
|
|
Operating profit (loss)
|
|
$
|
(3,560
|
)
|
|
$
|
(1,100
|
)
|
|
$
|
(10,390
|
)
|
|
$
|
870
|
|
Special Items to consider in evaluating operating profit:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
$
|
5,860
|
|
|
$
|
2,080
|
|
|
$
|
11,200
|
|
|
$
|
4,430
|
|
Excluding Special Items, operating profit would have been
|
|
$
|
2,300
|
|
|
$
|
980
|
|
|
$
|
810
|
|
|
$
|
5,300
|
|
|
|
|
|
|
|
|
|
|
Engineered Components
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
37,280
|
|
|
$
|
55,310
|
|
|
$
|
127,500
|
|
|
$
|
165,060
|
|
Operating profit
|
|
$
|
4,380
|
|
|
$
|
8,090
|
|
|
$
|
16,570
|
|
|
$
|
24,920
|
|
Special Items to consider in evaluating operating profit:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
$
|
90
|
|
|
$
|
—
|
|
|
230
|
|
|
—
|
|
Excluding Special Items, operating profit would have been
|
|
$
|
4,470
|
|
|
$
|
8,090
|
|
|
16,800
|
|
|
24,920
|
|
|
|
|
|
|
|
|
|
|
Corporate Expenses
|
|
|
|
|
|
|
|
|
Operating loss
|
|
$
|
(8,240
|
)
|
|
$
|
(11,110
|
)
|
|
$
|
(24,890
|
)
|
|
$
|
(29,850
|
)
|
Special Items to consider in evaluating operating loss:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
$
|
940
|
|
|
$
|
—
|
|
|
940
|
|
|
—
|
|
Excluding Special Items, operating loss would have been
|
|
$
|
(7,300
|
)
|
|
$
|
(11,110
|
)
|
|
(23,950
|
)
|
|
(29,850
|
)
|
|
|
|
|
|
|
|
|
|
Total Continuing Operations
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
222,190
|
|
|
$
|
222,330
|
|
|
$
|
671,220
|
|
|
$
|
663,870
|
|
Operating profit
|
|
$
|
21,560
|
|
|
$
|
20,520
|
|
|
$
|
63,790
|
|
|
$
|
70,000
|
|
Total Special Items to consider in evaluating operating profit
|
|
$
|
8,290
|
|
|
$
|
2,700
|
|
|
$
|
15,820
|
|
|
$
|
5,050
|
|
Excluding Special Items, operating profit would have been
|
|
$
|
29,850
|
|
|
$
|
23,220
|
|
|
$
|
79,610
|
|
|
$
|
75,050
|
|
|
|
|
|
|
Appendix I
|
|
TriMas Corporation
|
Additional Information Regarding Special Items Impacting
|
Reported GAAP Financial Measures
|
(Unaudited - dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income from continuing operations, as reported
|
|
$
|
11,710
|
|
|
$
|
11,090
|
|
|
$
|
32,140
|
|
|
$
|
39,220
|
|
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
Income from continuing operations attributable to TriMas Corporation
|
|
11,710
|
|
|
11,090
|
|
|
32,140
|
|
|
38,410
|
|
After-tax impact of Special Items to consider in evaluating quality
of income from continuing operations:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
6,120
|
|
|
2,530
|
|
|
12,050
|
|
|
4,800
|
|
Debt extinguishment costs
|
|
—
|
|
|
—
|
|
|
1,240
|
|
|
—
|
|
Excluding Special Items, income from continuing operations
attributable to TriMas Corporation would have been
|
|
$
|
17,830
|
|
|
$
|
13,620
|
|
|
$
|
45,430
|
|
|
$
|
43,210
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Diluted earnings per share from continuing operations attributable
to TriMas Corporation, as reported
|
|
$
|
0.26
|
|
|
$
|
0.24
|
|
|
$
|
0.70
|
|
|
$
|
0.85
|
|
After-tax impact of Special Items to consider in evaluating quality
of EPS from continuing operations:
|
|
|
|
|
|
|
|
|
Severance and business restructuring costs
|
|
0.13
|
|
|
0.05
|
|
|
0.27
|
|
|
0.10
|
|
Debt extinguishment costs
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Excluding Special Items, EPS from continuing operations would have
been
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
|
$
|
1.00
|
|
|
$
|
0.95
|
|
Weighted-average shares outstanding
|
|
45,499,104
|
|
|
45,276,199
|
|
|
45,439,618
|
|
|
45,231,058
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net cash provided by operating activities of continuing operations
|
|
$
|
8,260
|
|
|
$
|
13,410
|
|
|
$
|
28,740
|
|
|
$
|
52,640
|
|
Add: Cash impact of Financial Improvement Plan
|
|
730
|
|
|
—
|
|
|
730
|
|
|
—
|
|
Cash Flows from operating activities excluding special items
|
|
8,990
|
|
|
13,410
|
|
|
29,470
|
|
|
52,640
|
|
Less: Capital expenditures of continuing operations
|
|
(7,470
|
)
|
|
(5,380
|
)
|
|
(20,360
|
)
|
|
(18,320
|
)
|
Free Cash Flow from continuing operations
|
|
$
|
1,520
|
|
|
$
|
8,030
|
|
|
$
|
9,110
|
|
|
$
|
34,320
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151029005177/en/
Copyright Business Wire 2015