Trimas Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Trimas Corp filed its quarterly report (10-Q) for the period ending March 31, 2024</b>.

AI Summary

TRIMAS CORP (TRS) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Trimas Corp reported financial results for the period ending March 31, 2024. The filing is a 10-Q, indicating a quarterly report. The company's fiscal year ends on December 31st. Trimas Corp is incorporated in Delaware. The company operates in the Metal Forging & Stampings industry.

Why It Matters

For investors and stakeholders tracking TRIMAS CORP, this filing contains several important signals. This 10-Q filing provides investors with an update on Trimas Corp's financial performance and operational status for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks.

Risk Assessment

Risk Level: medium — TRIMAS CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information and does not indicate any immediate, severe risks, but requires careful review for specific details.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand Trimas Corp's operational trends and identify any emerging risks or opportunities.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-30 — Filed As Of Date (FILED AS OF DATE)
• 1231 — Fiscal Year End (FISCAL YEAR END)
• 38505 WOODWARD AVENUE SUITE 200 — Business Address (BUSINESS ADDRESS)
• 2486315400 — Business Phone (BUSINESS PHONE)
• 001-10716 — SEC File Number (SEC FILE NUMBER)
• 24895195 — Film Number (FILM NUMBER)
• 40,733,302 — P5Y Value (P5Y)

Key Players & Entities

• TRIMAS CORP (company) — FILER
• 0000842633 (company) — CENTRAL INDEX KEY
• 3460 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 248-631-5400 (company) — BUSINESS PHONE
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-04-30 (date) — FILED AS OF DATE
• 40,733,302 (dollar_amount) — P5Y value

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-30: Filing Date — Date the 10-Q report was officially filed with the SEC.

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value TRS The NASDAQ Stock Market L
• $256.9 m — 23, the Company had $ 227.0 million and $256.9 million, respectively, of borrowing capac

Filing Documents

• trs-20240331.htm (10-Q) — 1128KB
• trs_03312024xexh101.htm (EX-10.1) — 293KB
• trs_03312024xexh102.htm (EX-10.2) — 183KB
• trs_03312024xexh103.htm (EX-10.3) — 45KB
• trs_03312024xexh311.htm (EX-31.1) — 9KB
• trs_03312024xexh312.htm (EX-31.2) — 9KB
• trs_03312024xexh321.htm (EX-32.1) — 4KB
• trs_03312024xexh322.htm (EX-32.2) — 4KB
• 0000842633-24-000053.txt (&nbsp;) — 8825KB
• trs-20240331.xsd (EX-101.SCH) — 80KB
• trs-20240331_cal.xml (EX-101.CAL) — 92KB
• trs-20240331_def.xml (EX-101.DEF) — 573KB
• trs-20240331_lab.xml (EX-101.LAB) — 868KB
• trs-20240331_pre.xml (EX-101.PRE) — 701KB
• trs-20240331_htm.xml (XML) — 1008KB

Forward-Looking Statements

Forward-Looking Statements 2 Item 1. Consolidated Financial Statements 3 Consolidated Balance Sheet as of March 3 1 , 202 4 and December 31, 20 23 3 Consolidated Statement of Income for the Three Months Ended March 31 , 202 4 and 20 23 4 Consolidated Statement of Comprehensive Income for the Three Months Ended March 3 1 , 202 4 and 20 23 5 Consolidated Statement of Cash Flows for the Thre e Months Ended Mar c h 31 , 202 4 and 20 23 6 Consolidated Statement of Shareholders' Equity for the Thre e Months Ended Mar ch , 202 4 and 20 23 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults Upon Senior Securities 37 Item 4. Mine Safety Disclosures 37 Item 5. Other Information 37 Item 6. Exhibits 38 Signature s 39 1 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This report may contain 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 about our financial condition, results of operations and business. These forward-looking statements can be identified by the use of forward-looking words, such as "may," "could," "should," "estimate," "project," "forecast," "intend," "expect," "anticipate," "believe," "target," "plan" or other comparable words, or by discussions of strategy that may involve risks and uncertainties. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which could materially affect our business, financial condition or future results including, but not limited to: general economic and currency conditions; competitive factors; market demand; our ability to realize our business strategies; our ability to identify attractive acquisition candidates, successfully integrate acquired operations or realize the intended benefits of such acquisitions; pressures on our supply chain, including availability of raw materials and inflationary pressures on raw material and energy costs, and customers; the performance of our subcontractors and suppliers; risks and uncertainties associated with intangible assets, including goodwill or other intangible asset impairment charges; risks associated with a concentrated customer base; information technology and other cyber-related risks; risks related to our international operations, including, but not limited to, risks relating to tensions between the United States and China; government and regulatory actions, including, without limitation, climate change legislation and other environmental regulations, as well as the impact of tariffs, quotas and surcharges; changes to fiscal and tax policies; intellectual property factors; uncertainties associated with our ability to meet customers' and suppliers' sustainability and envir

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements TriMas Corporation Consolidated Balance Sheet (Dollars in thousands) March 31, 2024 December 31, 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 30,470 $ 34,890 Receivables, net of reserves of $ 4.9 million and $ 4.2 million as of March 31, 2024 and December 31, 2023, respectively 162,650 148,030 Inventories 206,260 192,450 Prepaid expenses and other current assets 28,350 22,010 Total current assets 427,730 397,380 Property and equipment, net 332,090 329,990 Operating lease right-of-use assets 41,690 43,220 Goodwill 361,260 363,770 Other intangibles, net 175,740 181,020 Deferred income taxes 9,880 10,230 Other assets 16,090 16,050 Total assets $ 1,364,480 $ 1,341,660 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 82,250 $ 91,910 Accrued liabilities 66,510 59,640 Lease liabilities, current portion 8,030 7,900 Total current liabilities 156,790 159,450 Long-term debt, net 424,930 395,660 Lease liabilities 37,950 39,690 Deferred income taxes 26,120 23,290 Other long-term liabilities 45,470 40,620 Total liabilities 691,260 658,710 Preferred stock, $ 0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None — — Common stock, $ 0.01 par: Authorized 400,000,000 shares; Issued and outstanding: 40,784,202 shares at March 31, 2024 and 41,202,110 shares at December 31, 2023 410 410 Paid-in capital 667,430 677,660 Retained earnings 7,630 4,230 Accumulated other comprehensive income (loss) ( 2,250 ) 650 Total shareholders' equity 673,220 682,950 Total liabilities and shareholders' equity $ 1,364,480 $ 1,341,660 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents TriMas Corporation Consolidated Statement of Income (Unaudited—dollars in thousands, except for per share amounts) Three months ended March 31, 2024 2023 Net sales $ 227,100 $ 215,460 Cost of sales ( 174,39

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Basis of Presentation TriMas Corporation ("TriMas" or the "Company"), and its consolidated subsidiaries, designs, engineers and manufactures innovative products under leading brand names for customers primarily in the consumer products, aerospace & defense, and industrial markets. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries and, in the opinion of management, contain all adjustments, including adjustments of a normal and recurring nature, necessary for a fair presentation of financial position and results of operations. The preparation of financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results may differ from such estimates and assumptions due to risks and uncertainties, including uncertainty and volatility in the current economic environment due to input cost inflation, supply chain disruptions, and shortages in global markets for commodities, logistics and labor. To the extent there are differences between these estimates and actual results, the Company's consolidated financial statements may be materially affected. Results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying consolidated financial statements and notes thereto should be read in conjunction with the Company's 2023 Annual Report on Form 10-K. 2. New Accounting Pronouncements Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced jurisdictional disclosures for income taxes paid and requires the use of specific categories in the effective tax rate reconciliation as well as additional information f

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) 4. Acquisitions 2023 Acquisitions On April 21, 2023, the Company acquired Weldmac Manufacturing Company ("Weldmac") for a purchase price of $ 34.0 million, with additional contingent consideration ranging from zero to $ 10 million based on achievement of earnings targets, as defined in the purchase agreement. The fair value of assets acquired and liabilities assumed included $ 23.7 million of property and equipment, $ 20.3 million of net working capital and $ 10 million of contingent consideration liability, with such estimate representing the Company's best estimate of fair value of contingent consideration based on Level 3 inputs under the fair value hierarchy, as defined. Located in El Cajon, California, and reported in the Company's Aerospace segment, Weldmac is a designer and manufacturer of complex metal fabricated components and assemblies for the aerospace, defense and space launch end markets and historically generated $ 33 million in annual revenue. On July 10, 2023, the Company made a cash payment of $ 5.5 million as additional consideration for the purchase of Weldmac based on achievement of earnings targets, as defined in the purchase agreement. The remaining possible contingent consideration ranges from zero to $ 4.5 million, based on achievement of 2023 earnings targets, as defined in the purchase agreement. At March 31, 2024, the Company believes it is probable the maximum contingent consideration will be earned. On February 1, 2023, the Company acquired Aarts Packaging B.V. ("Aarts"), a luxury packaging solutions provider for beauty and lifestyle brands, as well as for customers in the food and life sciences end markets, for a purchase price of $ 37.8 million, net of cash acquired. The fair value of assets acquired and liabilities assumed included $ 20.4 million of goodwill, $ 10.9 million of intangible assets, $ 8.5 million of property and equipment, $ 7.4 million of net worki

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) Other Intangible Assets The Company amortizes its other intangible assets over periods ranging from one to 30 years. The gross carrying amounts and accumulated amortization of the Company's other intangibles are summarized below (dollars in thousands): As of March 31, 2024 As of December 31, 2023 Intangible Category by Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Customer relationships, 5 – 12 years $ 140,430 $ ( 90,600 ) $ 141,260 $ ( 89,020 ) Customer relationships, 15 – 25 years 129,660 ( 82,130 ) 129,830 ( 80,600 ) Total customer relationships 270,090 ( 172,730 ) 271,090 ( 169,620 ) Technology and other, 1 – 15 years 56,910 ( 42,530 ) 56,970 ( 41,850 ) Technology and other, 17 – 30 years 43,300 ( 40,810 ) 43,300 ( 40,730 ) Total technology and other 100,210 ( 83,340 ) 100,270 ( 82,580 ) Indefinite-lived intangible assets: Trademark/Trade names 61,510 — 61,860 — Total other intangible assets $ 431,810 $ ( 256,070 ) $ 433,220 $ ( 252,200 ) Amortization expense related to intangible assets as included in the accompanying consolidated statement of income is summarized as follows (dollars in thousands): Three months ended March 31, 2024 2023 Technology and other, included in cost of sales $ 790 $ 810 Customer relationships, included in selling, general and administrative expenses 3,420 3,780 Total amortization expense $ 4,210 $ 4,590 6. Inventories Inventories consist of the following components (dollars in thousands): March 31, 2024 December 31, 2023 Finished goods $ 88,060 $ 82,300 Work in process 58,610 51,990 Raw materials 59,590 58,160 Total inventories $ 206,260 $ 192,450 10 Table of Contents TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) 7. Property and Equipment, Net Property and equipment consists of the following components (dollars in thousands): March 31, 2024 December 31, 2023 Land and land improvements $ 32,730 $ 32,840 Buildings 99,550 99,230 Machinery and equipment 511,110 502,090 643,390 634,160 Less: Accumulated depreciation 311,300 304,170 Property and equipment, net $ 332,090 $ 329,990 Depreciation expense as included in the accompanying consolidated statement of income is as follows (dollars in thousands): Three months ended March 31, 2024 2023 Depreciation expense, included in cost of sales $ 9,750 $ 8,560 Depreciation expense, included in selling, general and administrative expenses 230 200 Total depreciation expense $ 9,980 $ 8,760 8. Long-term Debt The Company's long-term debt consists of the following (dollars in thousands): March 31, 2024 December 31, 2023 4.125% Senior Notes due April 2029 $ 400,000 $ 400,000 Credit Agreement 29,040 — Debt issuance costs ( 4,110 ) ( 4,340 ) Long-term debt, net $ 424,930 $ 395,660 Senior Notes In March 2021, the Company issued $ 400.0 million aggregate principal amount of 4.125 % senior notes due April 15, 2029 ("Senior Notes") at par value in a private placement under Rule 144A of the Securities Act of 1933, as amended ("Securities Act"). The Senior Notes accrue interest at a rate of 4.125 % per annum, payable semi-annually in arrears on April 15 and October 15. The payment of principal and interest is jointly and severally guaranteed, on a senior unsecured basis, by certain subsidiaries of the Company. The Senior Notes are pari passu in right of payment with all existing and future senior indebtedness and effectively subordinated to all existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. 11 Table of Contents TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) Prior to April 15, 2024, the Company may redeem up to 40 % of the principal amount of the Senior Notes at a redemption price of 104.125 % of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, with the net cash proceeds of one or more equity offerings provided that each such redemption occurs within 90 days of the date of closing of each such equity offering. In addition, prior to April 15, 2024, the Company may redeem all or part of the Senior Notes at a redemption price equal to 100 % of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus a "make whole" premium. On or after April 15, 2024, the Company may redeem all or part of the Senior Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any, to the redemption date, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: Year Percentage 2024 102.063 % 2025 101.031 % 2026 and thereafter 100.000 % Credit Agreement The Company is a party to a credit agreement ("Credit Agreement") consisting of a $ 300.0 million senior secured revolving credit facility, which permits borrowings denominated in specific foreign currencies, subject to a $ 125.0 million sub limit, maturing on March 29, 2026 . The Credit Agreement is subject to benchmark interest rates determined based on the currency denomination of borrowings, with British pound sterling borrowings subject to the Sterling Overnight Index Average and Euro borrowings to the Euro InterBank Offered Rate, both plus a spread of 1.625 %, and U.S. dollar borrowings subject to the Secured Overnight Financing Rate plus a spread of 1.725 %. The interest rate spread is based upon the leverage ratio, as defined, as of the most recent determination date. The Company's revolving credit facility allows for th

View Full Filing

View this 10-Q filing on SEC EDGAR