TriMas Reports Third Quarter 2020 Results
TriMas' Packaging Group Posts Second Consecutive Record Sales and
Announces Packaging Group Acquisition of Affaba & Ferrari
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
Third Quarter 2020
TriMas reported third quarter net sales of
The Company reported a third quarter 2020 loss from continuing operations of
"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
"During the quarter, we also achieved Free Cash Flow(2) of
"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.
Financial Position
TriMas ended third quarter 2020 with
The Company reported net cash provided by operating activities from continuing operations of
In addition, during the first nine months of 2020, the Company used
Third Quarter Segment Results - From Continuing Operations
Packaging (Approximately 61% of TriMas
Aerospace (Approximately 24% of TriMas
Specialty Products (Approximately 15% of TriMas
TriMas' Specialty Products segment, which includes the Norris Cylinder™ and Arrow® Engine brands, designs, manufactures and distributes highly-engineered steel cylinders and wellhead engines and compressor systems, for use within the welding and HVAC, medical, military, industrial, and oil and gas end markets. Norris Cylinder is the only steel cylinder manufacturer in
Non-cash Impairment Charges
During the third quarter of 2020, the Company recorded pre-tax, non-cash goodwill and indefinite-lived intangible asset impairment charges of
"
Discontinued Operations
On
Outlook
Due to the COVID-19 pandemic and the resulting economic uncertainty, TriMas withdrew its 2020 full year guidance during the second quarter of 2020. Today, the Company reinstated certain 2020 full year guidance amounts, which assume there are no further significant, additional national or global negative impacts related to the pandemic. The Company noted it now expects TriMas’ consolidated sales for full year 2020 to increase 4% to 6% as compared to full year 2019, with sales activity in the Packaging segment anticipated to remain robust, offset by continued weaker demand for our products in the Aerospace and Specialty Products segments. The Company expects full year 2020 adjusted diluted earnings per share(1) of
All of the above amounts considered as 2020 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)
Conference Call Information
TriMas will host its third quarter 2020 earnings conference call today,
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 those relating to TriMas’ business, financial condition or future results, involve risks and uncertainties with respect to, including, but not limited to: the severity and duration of the ongoing coronavirus (“COVID-19”) pandemic on our operations, customers and suppliers, as well as related actions taken by governmental authorities and other third parties in response, each of which is uncertain, rapidly changing and difficult to predict; general economic and currency conditions; material and energy costs; risks and uncertainties associated with intangible assets, including goodwill or other intangible asset impairment charges; competitive factors; future trends; the Company’s ability to realize its business strategies; the Company’s ability to identify attractive acquisition candidates, successfully integrate acquired operations or realize the intended benefits of such acquisitions; information technology and other cyber-related risks; the performance of subcontractors and suppliers; supply constraints; market demand; intellectual property factors; litigation; government and regulatory actions, including, but not limited to, the impact of tariffs, quotas and surcharges; the Company’s leverage; liabilities imposed by debt instruments; labor disputes; changes to fiscal and tax policies; contingent liabilities relating to acquisition activities; the disruption of operations from catastrophic or extraordinary events, including natural disasters and public health crises; the potential impact of Brexit; tax considerations relating to the Cequent spin-off; the Company’s future prospects; and other risks that are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended
Non-GAAP Financial Measures
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 in Appendix I at the end of this release. Additional information is available at www.trimascorp.com under the “Investors” section.
|
(1) |
|
Appendix I details certain costs, expenses and other amounts or charges, collectively described as "Special Items," that are included in the determination of net income, earnings per share and/or cash flows from operating activities under GAAP, but that management believes should be separately considered when evaluating the quality of the Company’s core operating results, given they may not reflect the ongoing activities of the business. Management believes that presenting these non-GAAP financial measures, adjusted to remove the impact of Special Items, provides useful information to investors by helping them identify underlying trends in the Company’s businesses and facilitating comparisons of performance with prior and future periods. These non-GAAP financial measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP financial measures. |
|
(2) |
|
The Company defines Free Cash Flow as Net Cash Provided by/Used for Operating Activities from Continuing Operations, excluding the cash impact of Special Items, less Capital Expenditures. Please see Appendix I for additional details. |
|
(3) |
|
The Company defines Net Debt as Total Debt less Cash and Cash Equivalents. Please see Appendix I for additional details. |
|
(4) |
|
Reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not provided because the Company is unable to provide such reconciliations without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of such items impacting comparability and the periods in which such items may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. |
About TriMas
TriMas is a global manufacturer and provider of products for customers primarily in the consumer products, aerospace and industrial end markets, with approximately 3,500 dedicated employees in 11 countries. We provide customers with a wide range of innovative and quality product solutions through our market-leading businesses. Our TriMas family of businesses has strong brand names in the end markets served, and operates under a common set of values and strategic priorities under the TriMas Business Model. TriMas is publicly traded on the NASDAQ under the ticker symbol “TRS,” and is headquartered in
|
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||||||||
|
Condensed Consolidated Balance Sheet |
||||||||
|
(Dollars in thousands) |
||||||||
|
|
|
|
|
|
||||
|
Assets |
|
(unaudited) |
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
99,740 |
|
|
$ |
172,470 |
|
|
Receivables, net |
|
118,750 |
|
|
108,860 |
|
||
|
Inventories |
|
142,600 |
|
|
132,660 |
|
||
|
Prepaid expenses and other current assets |
|
13,640 |
|
|
20,050 |
|
||
|
Total current assets |
|
374,730 |
|
|
434,040 |
|
||
|
Property and equipment, net |
|
215,630 |
|
|
214,330 |
|
||
|
Operating lease right-of-use assets |
|
36,050 |
|
|
27,850 |
|
||
|
|
|
251,870 |
|
|
334,640 |
|
||
|
Other intangibles, net |
|
175,590 |
|
|
161,390 |
|
||
|
Deferred income taxes |
|
5,720 |
|
|
500 |
|
||
|
Other assets |
|
15,930 |
|
|
19,950 |
|
||
|
Total assets |
|
$ |
1,075,520 |
|
|
$ |
1,192,700 |
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
59,530 |
|
|
$ |
72,670 |
|
|
Accrued liabilities |
|
56,410 |
|
|
42,020 |
|
||
|
Operating lease liabilities, current portion |
|
6,940 |
|
|
5,100 |
|
||
|
Total current liabilities |
|
122,880 |
|
|
119,790 |
|
||
|
Long-term debt, net |
|
295,550 |
|
|
294,690 |
|
||
|
Operating lease liabilities |
|
29,650 |
|
|
23,100 |
|
||
|
Deferred income taxes |
|
12,220 |
|
|
16,830 |
|
||
|
Other long-term liabilities |
|
57,250 |
|
|
40,810 |
|
||
|
Total liabilities |
|
517,550 |
|
|
495,220 |
|
||
|
Total shareholders' equity |
|
557,970 |
|
|
697,480 |
|
||
|
Total liabilities and shareholders' equity |
|
$ |
1,075,520 |
|
|
$ |
1,192,700 |
|
|
|
||||||||||||||||||||
|
Consolidated Statement of Operations |
||||||||||||||||||||
|
(Unaudited - dollars in thousands, except per share amounts) |
||||||||||||||||||||
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
|
Net sales |
|
$ |
199,460 |
|
|
|
$ |
188,410 |
|
|
|
$ |
581,800 |
|
|
|
$ |
552,610 |
|
|
|
Cost of sales |
|
(147,530 |
) |
|
|
(139,420 |
) |
|
|
(446,270 |
) |
|
|
(403,040 |
) |
|
||||
|
Gross profit |
|
51,930 |
|
|
|
48,990 |
|
|
|
135,530 |
|
|
|
149,570 |
|
|
||||
|
Selling, general and administrative expenses |
|
(25,650 |
) |
|
|
(25,420 |
) |
|
|
(107,570 |
) |
|
|
(79,140 |
) |
|
||||
|
Impairment of goodwill and indefinite-lived intangible assets |
|
(134,600 |
) |
|
|
— |
|
|
|
(134,600 |
) |
|
|
— |
|
|
||||
|
Operating profit (loss) |
|
(108,320 |
) |
|
|
23,570 |
|
|
|
(106,640 |
) |
|
|
70,430 |
|
|
||||
|
Other expense, net: |
|
|
|
|
|
|
|
|
||||||||||||
|
Interest expense |
|
(3,450 |
) |
|
|
(3,520 |
) |
|
|
(11,260 |
) |
|
|
(10,450 |
) |
|
||||
|
Other income (expense), net |
|
(1,200 |
) |
|
|
600 |
|
|
|
(150 |
) |
|
|
1,250 |
|
|
||||
|
Other expense, net |
|
(4,650 |
) |
|
|
(2,920 |
) |
|
|
(11,410 |
) |
|
|
(9,200 |
) |
|
||||
|
Income (loss) before income tax expense |
|
(112,970 |
) |
|
|
20,650 |
|
|
|
(118,050 |
) |
|
|
61,230 |
|
|
||||
|
Income tax benefit (expense) |
|
12,100 |
|
|
|
(5,410 |
) |
|
|
14,600 |
|
|
|
(12,720 |
) |
|
||||
|
Income (loss) from continuing operations |
|
(100,870 |
) |
|
|
15,240 |
|
|
|
(103,450 |
) |
|
|
48,510 |
|
|
||||
|
Income from discontinued operations, net of tax |
|
— |
|
|
|
3,870 |
|
|
|
— |
|
|
|
11,710 |
|
|
||||
|
Net income (loss) |
|
$ |
(100,870 |
) |
|
|
$ |
19,110 |
|
|
|
$ |
(103,450 |
) |
|
|
$ |
60,220 |
|
|
|
Basic earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
|
$ |
(2.32 |
) |
|
|
$ |
0.34 |
|
|
|
$ |
(2.37 |
) |
|
|
$ |
1.07 |
|
|
|
Discontinued operations |
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.26 |
|
|
||||
|
Net income (loss) per share |
|
$ |
(2.32 |
) |
|
|
$ |
0.42 |
|
|
|
$ |
(2.37 |
) |
|
|
$ |
1.33 |
|
|
|
Weighted average common shares—basic |
|
43,457,704 |
|
|
|
45,175,244 |
|
|
|
43,707,331 |
|
|
|
45,448,711 |
|
|
||||
|
Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
|
$ |
(2.32 |
) |
|
|
$ |
0.34 |
|
|
|
$ |
(2.37 |
) |
|
|
$ |
1.06 |
|
|
|
Discontinued operations |
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.26 |
|
|
||||
|
Net income (loss) per share |
|
$ |
(2.32 |
) |
|
|
$ |
0.42 |
|
|
|
$ |
(2.37 |
) |
|
|
$ |
1.32 |
|
|
|
Weighted average common shares—diluted |
|
43,457,704 |
|
|
|
45,415,767 |
|
|
|
43,707,331 |
|
|
|
45,745,421 |
|
|
||||
|
|
||||||||||
|
Consolidated Statement of Cash Flow |
||||||||||
|
(Unaudited - dollars in thousands) |
||||||||||
|
|
|
Nine months ended
|
||||||||
|
|
|
2020 |
|
2019 |
||||||
|
Cash Flows from Operating Activities: |
|
|
|
|
||||||
|
Net income (loss) |
|
$ |
(103,450 |
) |
|
|
$ |
60,220 |
|
|
|
Income from discontinued operations |
|
— |
|
|
|
11,710 |
|
|
||
|
Income (loss) from continuing operations |
|
(103,450 |
) |
|
|
48,510 |
|
|
||
|
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities, net of acquisition impact: |
|
|
|
|
||||||
|
Impairment of goodwill and indefinite-lived intangible assets |
|
134,600 |
|
|
|
— |
|
|
||
|
Loss on dispositions of assets |
|
1,080 |
|
|
|
60 |
|
|
||
|
Depreciation |
|
21,700 |
|
|
|
18,330 |
|
|
||
|
Amortization of intangible assets |
|
15,460 |
|
|
|
14,030 |
|
|
||
|
Amortization of debt issue costs |
|
860 |
|
|
|
850 |
|
|
||
|
Deferred income taxes |
|
(17,790 |
) |
|
|
5,530 |
|
|
||
|
Non-cash compensation expense |
|
5,610 |
|
|
|
4,130 |
|
|
||
|
Non-cash change in legacy liability estimate |
|
23,400 |
|
|
|
— |
|
|
||
|
Increase in receivables |
|
(6,210 |
) |
|
|
(8,380 |
) |
|
||
|
(Increase) decrease in inventories |
|
4,510 |
|
|
|
(560 |
) |
|
||
|
Decrease in prepaid expenses and other assets |
|
5,500 |
|
|
|
4,780 |
|
|
||
|
Decrease in accounts payable and accrued liabilities |
|
(7,410 |
) |
|
|
(26,760 |
) |
|
||
|
Other operating activities |
|
1,250 |
|
|
|
90 |
|
|
||
|
Net cash provided by operating activities of continuing operations |
|
79,110 |
|
|
|
60,610 |
|
|
||
|
Net cash provided by operating activities of discontinued operations |
|
— |
|
|
|
3,490 |
|
|
||
|
Net cash provided by operating activities, net of acquisition impact |
|
79,110 |
|
|
|
64,100 |
|
|
||
|
Cash Flows from Investing Activities: |
|
|
|
|
||||||
|
Capital expenditures |
|
(17,670 |
) |
|
|
(22,000 |
) |
|
||
|
Acquisition of businesses, net of cash acquired |
|
(95,160 |
) |
|
|
(67,090 |
) |
|
||
|
Net proceeds from disposition of business, property and equipment |
|
1,930 |
|
|
|
10 |
|
|
||
|
Net cash used for investing activities of continuing operations |
|
(110,900 |
) |
|
|
(89,080 |
) |
|
||
|
Net cash used for investing activities of discontinued operations |
|
— |
|
|
|
(1,350 |
) |
|
||
|
Net cash used for investing activities |
|
(110,900 |
) |
|
|
(90,430 |
) |
|
||
|
Cash Flows from Financing Activities: |
|
|
|
|
||||||
|
Proceeds from borrowings on revolving credit facilities |
|
300,950 |
|
|
|
145,540 |
|
|
||
|
Repayments of borrowings on revolving credit facilities |
|
(303,240 |
) |
|
|
(145,090 |
) |
|
||
|
Shares surrendered upon exercise and vesting of equity awards to cover taxes |
|
(2,600 |
) |
|
|
(3,240 |
) |
|
||
|
Payments to purchase common stock |
|
(36,050 |
) |
|
|
(21,090 |
) |
|
||
|
Net cash used for financing activities of continuing operations |
|
(40,940 |
) |
|
|
(23,880 |
) |
|
||
|
Net cash provided by financing activities of discontinued operations |
|
— |
|
|
|
— |
|
|
||
|
Net cash used for financing activities |
|
(40,940 |
) |
|
|
(23,880 |
) |
|
||
|
Cash and Cash Equivalents: |
|
|
|
|
||||||
|
Decrease for the period |
|
(72,730 |
) |
|
|
(50,210 |
) |
|
||
|
At beginning of period |
|
172,470 |
|
|
|
108,150 |
|
|
||
|
At end of period |
|
$ |
99,740 |
|
|
|
$ |
57,940 |
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
||||||
|
Cash paid for interest |
|
$ |
7,490 |
|
|
|
$ |
6,570 |
|
|
|
Cash paid for taxes |
|
$ |
6,660 |
|
|
|
$ |
15,690 |
|
|
|
Appendix I |
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|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Additional Information Regarding Special Items Impacting |
||||||||||||||||||||
|
Reported GAAP Financial Measures |
||||||||||||||||||||
|
Continuing Operations |
||||||||||||||||||||
|
(Unaudited - dollars in thousands) |
||||||||||||||||||||
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
|
Packaging |
|
|
|
|
|
|
|
|
||||||||||||
|
Net sales |
|
$ |
135,120 |
|
|
|
$ |
105,480 |
|
|
|
$ |
364,000 |
|
|
|
$ |
298,310 |
|
|
|
Operating profit |
|
$ |
28,020 |
|
|
|
$ |
19,740 |
|
|
|
$ |
70,340 |
|
|
|
$ |
60,020 |
|
|
|
Special Items to consider in evaluating operating profit: |
|
|
|
|
|
|
|
|
||||||||||||
|
Purchase accounting costs |
|
— |
|
|
|
— |
|
|
|
750 |
|
|
|
1,280 |
|
|
||||
|
Business restructuring and severance costs |
|
— |
|
|
|
360 |
|
|
|
2,730 |
|
|
|
360 |
|
|
||||
|
Adjusted operating profit |
|
$ |
28,020 |
|
|
|
$ |
20,100 |
|
|
|
$ |
73,820 |
|
|
|
$ |
61,660 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Aerospace |
|
|
|
|
|
|
|
|
||||||||||||
|
Net sales |
|
$ |
39,130 |
|
|
|
$ |
50,560 |
|
|
|
$ |
130,660 |
|
|
|
$ |
145,650 |
|
|
|
Operating profit (loss) |
|
$ |
(133,500 |
) |
|
|
$ |
7,810 |
|
|
|
$ |
(132,630 |
) |
|
|
$ |
21,270 |
|
|
|
Special Items to consider in evaluating operating profit: |
|
|
|
|
|
|
|
|
||||||||||||
|
Impairment of goodwill and indefinite-lived intangible assets |
|
134,600 |
|
|
|
— |
|
|
|
134,600 |
|
|
|
— |
|
|
||||
|
Pre-acquisition contingent liability |
|
2,000 |
|
|
|
— |
|
|
|
2,000 |
|
|
|
— |
|
|
||||
|
Purchase accounting costs |
|
— |
|
|
|
— |
|
|
|
2,030 |
|
|
|
— |
|
|
||||
|
Business restructuring and severance costs |
|
600 |
|
|
|
— |
|
|
|
8,110 |
|
|
|
440 |
|
|
||||
|
Adjusted operating profit |
|
$ |
3,700 |
|
|
|
$ |
7,810 |
|
|
|
$ |
14,110 |
|
|
|
$ |
21,710 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Specialty Products |
|
|
|
|
|
|
|
|
||||||||||||
|
Net sales |
|
$ |
25,210 |
|
|
|
$ |
32,370 |
|
|
|
$ |
87,140 |
|
|
|
$ |
108,650 |
|
|
|
Operating profit |
|
$ |
3,380 |
|
|
|
$ |
3,620 |
|
|
|
$ |
870 |
|
|
|
$ |
13,730 |
|
|
|
Special Items to consider in evaluating operating profit: |
|
|
|
|
|
|
|
|
||||||||||||
|
Business restructuring and severance costs |
|
— |
|
|
|
— |
|
|
|
9,700 |
|
|
|
— |
|
|
||||
|
Adjusted operating profit |
|
$ |
3,380 |
|
|
|
$ |
3,620 |
|
|
|
$ |
10,570 |
|
|
|
$ |
13,730 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Corporate Expenses |
|
|
|
|
|
|
|
|
||||||||||||
|
Operating loss |
|
$ |
(6,220 |
) |
|
|
$ |
(7,600 |
) |
|
|
$ |
(45,220 |
) |
|
|
$ |
(24,590 |
) |
|
|
Special Items to consider in evaluating operating loss: |
|
|
|
|
|
|
|
|
||||||||||||
|
Change in accounting policy for asbestos-related costs |
|
— |
|
|
|
— |
|
|
|
23,400 |
|
|
|
— |
|
|
||||
|
M&A diligence and transaction costs |
|
710 |
|
|
|
700 |
|
|
|
1,780 |
|
|
|
2,520 |
|
|
||||
|
Business restructuring and severance costs |
|
— |
|
|
|
— |
|
|
|
640 |
|
|
|
— |
|
|
||||
|
Adjusted operating loss |
|
$ |
(5,510 |
) |
|
|
$ |
(6,900 |
) |
|
|
$ |
(19,400 |
) |
|
|
$ |
(22,070 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net sales |
|
$ |
199,460 |
|
|
|
$ |
188,410 |
|
|
|
$ |
581,800 |
|
|
|
$ |
552,610 |
|
|
|
Operating profit (loss) |
|
$ |
(108,320 |
) |
|
|
$ |
23,570 |
|
|
|
$ |
(106,640 |
) |
|
|
$ |
70,430 |
|
|
|
Total Special Items to consider in evaluating operating profit |
|
137,910 |
|
|
|
1,060 |
|
|
|
185,740 |
|
|
|
4,600 |
|
|
||||
|
Adjusted operating profit |
|
$ |
29,590 |
|
|
|
$ |
24,630 |
|
|
|
$ |
79,100 |
|
|
|
$ |
75,030 |
|
|
|
Appendix I |
||||||||||||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Additional Information Regarding Special Items Impacting |
||||||||||||||||||||
|
Reported GAAP Financial Measures |
||||||||||||||||||||
|
(Unaudited - dollars in thousands, except per share amounts) |
||||||||||||||||||||
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
|
Income (loss) from continuing operations, as reported |
|
$ |
(100,870 |
) |
|
|
$ |
15,240 |
|
|
|
$ |
(103,450 |
) |
|
|
$ |
48,510 |
|
|
|
Special Items to consider in evaluating quality of income (loss) from continuing operations: |
|
|
|
|
|
|
|
|
||||||||||||
|
Impairment of goodwill and indefinite-lived intangible assets |
|
134,600 |
|
|
|
— |
|
|
|
134,600 |
|
|
|
— |
|
|
||||
|
Change in accounting policy for asbestos-related costs |
|
— |
|
|
|
— |
|
|
|
23,400 |
|
|
|
— |
|
|
||||
|
Business restructuring and severance costs |
|
600 |
|
|
|
360 |
|
|
|
21,180 |
|
|
|
800 |
|
|
||||
|
Purchase accounting costs |
|
— |
|
|
|
— |
|
|
|
2,780 |
|
|
|
1,280 |
|
|
||||
|
M&A diligence and transaction costs |
|
710 |
|
|
|
700 |
|
|
|
2,080 |
|
|
|
2,520 |
|
|
||||
|
Pre-acquisition contingent liability |
|
2,000 |
|
|
|
— |
|
|
|
2,000 |
|
|
|
— |
|
|
||||
|
Income tax effect of Special Items(1) |
|
(18,400 |
) |
|
|
(200 |
) |
|
|
(30,190 |
) |
|
|
(860 |
) |
|
||||
|
Adjusted income from continuing operations |
|
$ |
18,640 |
|
|
|
$ |
16,100 |
|
|
|
$ |
52,400 |
|
|
|
$ |
52,250 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
|
Diluted earnings (loss) per share from continuing operations, as reported |
|
$ |
(2.32 |
) |
|
|
$ |
0.34 |
|
|
|
$ |
(2.37 |
) |
|
|
$ |
1.06 |
|
|
|
Dilutive impact (2) |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
||||
|
Special Items to consider in evaluating quality of EPS from continuing operations: |
|
|
|
|
|
|
|
|
||||||||||||
|
Impairment of goodwill and indefinite-lived intangible assets |
|
3.08 |
|
|
|
— |
|
|
|
3.07 |
|
|
|
— |
|
|
||||
|
Change in accounting policy for asbestos-related costs |
|
— |
|
|
|
— |
|
|
|
0.53 |
|
|
|
— |
|
|
||||
|
Business restructuring and severance costs |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.48 |
|
|
|
0.02 |
|
|
||||
|
Purchase accounting costs |
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.03 |
|
|
||||
|
M&A diligence and transaction costs |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
||||
|
Pre-acquisition contingent liability |
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
|
||||
|
Income tax effect of Special Items(1) |
|
(0.42 |
) |
|
|
— |
|
|
|
(0.69 |
) |
|
|
(0.02 |
) |
|
||||
|
Adjusted diluted EPS from continuing operations |
|
$ |
0.43 |
|
|
|
$ |
0.36 |
|
|
|
$ |
1.19 |
|
|
|
$ |
1.14 |
|
|
|
Weighted-average shares outstanding(2) |
|
43,672,026 |
|
|
|
45,415,767 |
|
|
|
43,930,237 |
|
|
|
45,745,421 |
|
|
||||
|
(1) |
|
Income tax effect of Special Items is calculated on an item-by-item basis, utilizing the tax rate in the jurisdiction where the Special Item occurred. For the three and nine month periods ended |
|
(2) |
|
214,322 and 222,906 shares for the three and nine months ended |
|
Appendix I |
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Additional Information Regarding Special Items Impacting |
||||||||||||||||||||||||||||
|
Reported GAAP Financial Measures |
||||||||||||||||||||||||||||
|
(Unaudited - dollars in thousands) |
||||||||||||||||||||||||||||
|
|
|
Three months ended |
||||||||||||||||||||||||||
|
|
|
2020 |
|
2019 |
||||||||||||||||||||||||
|
|
|
As reported |
|
Special Items |
|
As adjusted |
|
As reported |
|
Special Items |
|
As adjusted |
||||||||||||||||
|
Net cash provided by operating activities from continuing operations |
|
$ |
48,270 |
|
|
|
$ |
1,740 |
|
|
$ |
50,010 |
|
|
|
$ |
27,840 |
|
|
|
$ |
1,920 |
|
|
$ |
29,760 |
|
|
|
Less: Capital expenditures |
|
(8,420 |
) |
|
|
— |
|
|
(8,420 |
) |
|
|
(10,500 |
) |
|
|
— |
|
|
(10,500 |
) |
|
||||||
|
Free Cash Flow |
|
39,850 |
|
|
|
1,740 |
|
|
41,590 |
|
|
|
17,340 |
|
|
|
1,920 |
|
|
19,260 |
|
|
||||||
|
Income (loss) from continuing operations |
|
(100,870 |
) |
|
|
119,510 |
|
|
18,640 |
|
|
|
15,240 |
|
|
|
860 |
|
|
16,100 |
|
|
||||||
|
Free Cash Flow as a percentage of income (loss) from continuing operations |
|
NM |
|
|
|
|
223 |
|
% |
|
114 |
|
% |
|
|
|
120 |
|
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Nine months ended |
||||||||||||||||||||||||||
|
|
|
2020 |
|
2019 |
||||||||||||||||||||||||
|
|
|
As reported |
|
Special Items |
|
As adjusted |
|
As reported |
|
Special Items |
|
As adjusted |
||||||||||||||||
|
Net cash provided by operating activities from continuing operations |
|
$ |
79,110 |
|
|
|
$ |
7,100 |
|
|
$ |
86,210 |
|
|
|
60,610 |
|
|
|
$ |
4,130 |
|
|
$ |
64,740 |
|
|
|
|
Less: Capital expenditures |
|
(17,670 |
) |
|
|
— |
|
|
(17,670 |
) |
|
|
(22,000 |
) |
|
|
— |
|
|
(22,000 |
) |
|
||||||
|
Free Cash Flow |
|
61,440 |
|
|
|
7,100 |
|
|
68,540 |
|
|
|
38,610 |
|
|
|
4,130 |
|
|
42,740 |
|
|
||||||
|
Income (loss) from continuing operations |
|
(103,450 |
) |
|
|
155,850 |
|
|
52,400 |
|
|
|
48,510 |
|
|
|
3,740 |
|
|
52,250 |
|
|
||||||
|
Free Cash Flow as a percentage of income (loss) from continuing operations |
|
NM |
|
|
|
|
131 |
|
% |
|
80 |
|
% |
|
|
|
82 |
|
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Current maturities, long-term debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
30 |
|
|
Long-term debt, net |
|
295,550 |
|
|
294,690 |
|
|
294,410 |
|
|||
|
Total Debt |
|
295,550 |
|
|
294,690 |
|
|
294,440 |
|
|||
|
Less: Cash and cash equivalents |
|
99,740 |
|
|
172,470 |
|
|
57,940 |
|
|||
|
Net Debt |
|
$ |
195,810 |
|
|
$ |
122,220 |
|
|
$ |
236,500 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005194/en/
VP, Investor Relations
(248) 631-5506
sherrylauderback@trimascorp.com
Source: TriMas
