Trimase Corp. 10-Q: Assets at $1.3B, Sales $804.6M

TL;DR

Trimase Corp Q2 10-Q: Assets $1.3B, Sales $804.6M YTD. Slight asset dip.

AI Summary

Trimase Corp. filed its 10-Q for the period ending June 30, 2024, reporting financial results. The company's total assets were $1.3 billion as of June 30, 2024, a slight decrease from $1.31 billion at the end of 2023. For the six months ended June 30, 2024, the company reported net sales of $804.6 million.

Why It Matters

This filing provides investors with a snapshot of Trimase Corp.'s financial health and performance for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing with no immediate red flags or significant negative events indicated.

Key Numbers

• $1.3B — Total Assets (As of June 30, 2024)
• $1.31B — Total Assets (As of December 31, 2023)
• $804.6M — Net Sales (For the six months ended June 30, 2024)

Key Players & Entities

• TRIMAS CORP (company) — Filer
• 20240630 (date) — Period of Report
• $1.3 billion (dollar_amount) — Total Assets as of June 30, 2024
• $1.31 billion (dollar_amount) — Total Assets as of December 31, 2023
• $804.6 million (dollar_amount) — Net Sales for the six months ended June 30, 2024

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value TRS The NASDAQ Stock Market L

Filing Documents

• trs-20240630.htm (10-Q) — 1420KB
• trs_06302024xexh311.htm (EX-31.1) — 9KB
• trs_06302024xexh312.htm (EX-31.2) — 9KB
• trs_06302024xexh321.htm (EX-32.1) — 4KB
• trs_06302024xexh322.htm (EX-32.2) — 4KB
• 0000842633-24-000072.txt ( ) — 9022KB
• trs-20240630.xsd (EX-101.SCH) — 82KB
• trs-20240630_cal.xml (EX-101.CAL) — 92KB
• trs-20240630_def.xml (EX-101.DEF) — 578KB
• trs-20240630_lab.xml (EX-101.LAB) — 877KB
• trs-20240630_pre.xml (EX-101.PRE) — 707KB
• trs-20240630_htm.xml (XML) — 1194KB

Forward-Looking Statements

Forward-Looking Statements 2 Item 1. Consolidated Financial Statements 3 Consolidated Balance Sheet as of June 30 , 2024 and December 31, 2023 3 Consolidated Statement of Income for the Three and Six Months Ended June 30 , 2024 and 2023 4 Consolidated Statement of Comprehensive Income for the Three and Six Months Ended June 3 0 , 2024 and 2023 5 Consolidated Statement of Cash Flows for the Six Months Ended June 30 , 2024 and 2023 6 Consolidated Statement of Shareholders' Equity for the Six Months Ended June 30 , 2024 and 2023 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 40 Item 4.

Controls and Procedures

Controls and Procedures 40 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 42 Signature s 43 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) June 30, 2024 December 31, 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 35,010 $ 34,890 Receivables, net of reserves of $ 5.0 million and $ 4.2 million as of June 30, 2024 and December 31, 2023, respectively 169,660 148,030 Inventories 208,620 192,450 Prepaid expenses and other current assets 25,610 22,010 Total current assets 438,900 397,380 Property and equipment, net 328,830 329,990 Operating lease right-of-use assets 39,700 43,220 Goodwill 360,370 363,770 Other intangibles, net 171,220 181,020 Deferred income taxes 10,870 10,230 Other assets 15,950 16,050 Total assets $ 1,365,840 $ 1,341,660 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 90,650 $ 91,910 Accrued liabilities 57,150 59,640 Lease liabilities, current portion 7,890 7,900 Total current liabilities 155,690 159,450 Long-term debt, net 427,360 395,660 Lease liabilities 36,070 39,690 Deferred income taxes 26,950 23,290 Other long-term liabilities 43,840 40,620 Total liabilities 689,910 658,710 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: 40,656,370 shares at June 30, 2024 and 41,202,110 shares at December 31, 2023 410 410 Paid-in capital 665,790 677,660 Retained earnings 16,870 4,230 Accumulated other comprehensive income (loss) ( 7,140 ) 650 Total shareholders' equity 675,930 682,950 Total liabilities and shareholders' equity $ 1,365,840 $ 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 June 30, Six months ended June 30, 2024 2023 2024 2023 Net sales $ 240,500

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. Realignment Actions 2023 Realignment Actions During the six months ended June 30, 2023, the Company incurred realignment charges in its Packaging segment, primarily related to the closure and consolidation of two manufacturing facilities located in China into one new, larger facility in the Haining region. In connection with these actions, the Company recorded pre-tax realignment charges of $ 3.7 million during the three and six months ended June 30, 2023, of which $ 2.2 million related to charges to accelerate the depreciation of certain fixed assets, $ 1.3 million related to employee separation costs and $ 0.2 million related to other facility move and consolidation costs. For the three and six months ended June 30, 2023, $ 3.3 million and $ 0.4 million of these charges were included in cost of sales and selling, general and administrative expenses, respectively, in the accompanying consolidated statement of income. 5. 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 predominantly for the aerospace, defense and space launch end markets and historically generated $ 33 million in annual revenue. O

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 June 30, 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 $ 140,120 $ ( 92,270 ) $ 141,260 $ ( 89,020 ) Customer relationships, 15 – 25 years 129,590 ( 83,660 ) 129,830 ( 80,600 ) Total customer relationships 269,710 ( 175,930 ) 271,090 ( 169,620 ) Technology and other, 1 – 15 years 56,880 ( 43,230 ) 56,970 ( 41,850 ) Technology and other, 17 – 30 years 43,300 ( 40,900 ) 43,300 ( 40,730 ) Total technology and other 100,180 ( 84,130 ) 100,270 ( 82,580 ) Indefinite-lived intangible assets: Trademark/Trade names 61,390 — 61,860 — Total other intangible assets $ 431,280 $ ( 260,060 ) $ 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 June 30, Six months ended June 30, 2024 2023 2024 2023 Technology and other, included in cost of sales $ 870 $ 800 $ 1,660 $ 1,610 Customer relationships, included in selling, general and administrative expenses 3,350 3,810 6,770 7,590 Total amortization expense $ 4,220 $ 4,610 $ 8,430 $ 9,200 7. Inventories Inventories consist of the following components (dollars in thousands): June 30, 2024 December 31, 2023 Finished goods $ 88,810 $ 82,300 Work in process 59,920 51,990 Raw materials 59,890 58,160 Total inventories $ 208,620 $ 192,450 10 Table of Contents TRIMAS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) 8. Property and Equipment, Net Property and equipment consists of the following components (dollars in thousands): June 30, 2024 December 31, 2023 Land and land improvements $ 32,690 $ 32,840 Buildings 98,730 99,230 Machinery and equipment 511,640 502,090 643,060 634,160 Less: Accumulated depreciation 314,230 304,170 Property and equipment, net $ 328,830 $ 329,990 Depreciation expense as included in the accompanying consolidated statement of income is as follows (dollars in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Depreciation expense, included in cost of sales $ 9,740 $ 11,510 $ 19,490 $ 20,070 Depreciation expense, included in selling, general and administrative expenses 280 270 510 470 Total depreciation expense $ 10,020 $ 11,780 $ 20,000 $ 20,540 9. Long-term Debt The Company's long-term debt consists of the following (dollars in thousands): June 30, 2024 December 31, 2023 4.125% Senior Notes due April 2029 $ 400,000 $ 400,000 Credit Agreement 31,230 — Debt issuance costs ( 3,870 ) ( 4,340 ) Long-term debt, net $ 427,360 $ 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. The Company may rede

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) 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 the issuance of letters of credit, not to exceed $ 40.0 million in aggregate. The Credit Agreement also provides incremental revolving credit facility commitments in an amount not to exceed the greater of $ 200.0 million and an amount such that, after giving effect to such increment

View Full Filing

View this 10-Q filing on SEC EDGAR