Trimase Corp. Files Q3 2024 10-Q

TL;DR

Trimase Corp. 10-Q filed. Financials for Q3 2024 out.

AI Summary

Trimase Corp. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the company, which is involved in metal forging and stampings. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational status of Trimase Corp., crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Players & Entities

• TRIMAS CORP (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241104 (date) — Filing date
• METAL FORGING & STAMPINGS [3460] (industry) — Standard Industrial Classification

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-20240930.htm (10-Q) — 1491KB
• trs_09302024xexh311.htm (EX-31.1) — 9KB
• trs_09302024xexh312.htm (EX-31.2) — 9KB
• trs_09302024xexh321.htm (EX-32.1) — 4KB
• trs_09302024xexh322.htm (EX-32.2) — 4KB
• 0000842633-24-000078.txt ( ) — 9225KB
• trs-20240930.xsd (EX-101.SCH) — 82KB
• trs-20240930_cal.xml (EX-101.CAL) — 93KB
• trs-20240930_def.xml (EX-101.DEF) — 591KB
• trs-20240930_lab.xml (EX-101.LAB) — 881KB
• trs-20240930_pre.xml (EX-101.PRE) — 719KB
• trs-20240930_htm.xml (XML) — 1225KB

Forward-Looking Statements

Forward-Looking Statements 2 Item 1. Consolidated Financial Statements 3 Consolidated Balance Sheet as of September 30, 2024 and December 31, 2023 3 Consolidated Statement of Income for the Three and Nine Months Ended September 30, 2024 and 2023 4 Consolidated Statement of Comprehensive Income for the Three and Nine Months Ended Sept e mber 30, 2024 and 2023 5 Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 6 Consolidated Statement of Shareholders' Equity for the Nine Months Ended September 30, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 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 25 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults Upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 44 Signature s 45 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) September 30, 2024 December 31, 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 26,910 $ 34,890 Receivables, net of reserves of $ 4.5 million and $ 4.2 million as of September 30, 2024 and December 31, 2023, respectively 163,260 148,030 Inventories 213,880 192,450 Prepaid expenses and other current assets 31,290 22,010 Total current assets 435,340 397,380 Property and equipment, net 329,310 329,990 Operating lease right-of-use assets 42,220 43,220 Goodwill 365,100 363,770 Other intangibles, net 168,650 181,020 Deferred income taxes 10,370 10,230 Other assets 16,840 16,050 Total assets $ 1,367,830 $ 1,341,660 Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings $ 80 $ — Accounts payable 80,800 91,910 Accrued liabilities 65,210 59,640 Lease liabilities, current portion 7,900 7,900 Total current liabilities 153,990 159,450 Long-term debt, net 409,870 395,660 Lease liabilities 38,650 39,690 Deferred income taxes 26,820 23,290 Other long-term liabilities 55,750 40,620 Total liabilities 685,080 658,710 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: 40,563,351 shares at September 30, 2024 and 41,202,110 shares at December 31, 2023 410 410 Paid-in capital 665,000 677,660 Retained earnings 17,680 4,230 Accumulated other comprehensive income (loss) ( 340 ) 650 Total shareholders' equity 682,750 682,950 Total liabilities and shareholders' equity $ 1,367,830 $ 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 September 30, Nine months ended Sept

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 2024 Realignment Actions During the three and nine months ended September 30, 2024, the Company incurred pre-tax realignment charges of $ 0.9 million in its Packaging segment, related to the closure of its facility in Irwindale, California. For the three and nine months ended September 30, 2024, $ 0.5 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. 2023 Realignment Actions During the nine months ended September 30, 2023, the Company incurred realignment charges in its Packaging segment, related to the closure and consolidation of two manufacturing facilities located in China into one new, larger facility in the Haining region, and for costs incurred to close and consolidate its Rohnert Park, California, manufacturing facility operations into other existing U.S. production locations. In connection with these actions, the Company recorded pre-tax realignment charges of $ 2.7 million and $ 6.4 million during the three and nine months ended September 30, 2023, respectively, of which $ 0.8 million and $ 2.1 million during the three and nine months ended September 30, 2023, respectively, were for employee-related costs, $ 0.8 million during the three and nine months ended September 30, 2023 was for inventory write-downs, $ 1.1 million and $ 1.3 million during the three and nine months ended September 30, 2023, respectively, were for other facility move and consolidation costs, and $ 2.2 million during the nine months ended September 30, 2023 was related to charges to accelerate the depreciation of certain fixed assets. For the three months ended September 30, 2023, $ 2.4 million and $ 0.3 million of these charges were included in cost of sales and selling, general and administrative expenses, respectively, in the accompanying consolida

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) 6. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill for the nine months ended September 30, 2024 are summarized as follows (dollars in thousands): Packaging Aerospace Specialty Products Total Balance, December 31, 2023 $ 287,350 $ 69,860 $ 6,560 $ 363,770 Foreign currency translation and other 1,480 ( 150 ) — 1,330 Balance, September 30, 2024 $ 288,830 $ 69,710 $ 6,560 $ 365,100 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 September 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 $ 141,540 $ ( 94,670 ) $ 141,260 $ ( 89,020 ) Customer relationships, 15 – 25 years 129,670 ( 85,230 ) 129,830 ( 80,600 ) Total customer relationships 271,210 ( 179,900 ) 271,090 ( 169,620 ) Technology and other, 1 – 15 years 57,010 ( 43,990 ) 56,970 ( 41,850 ) Technology and other, 17 – 30 years 43,300 ( 40,990 ) 43,300 ( 40,730 ) Total technology and other 100,310 ( 84,980 ) 100,270 ( 82,580 ) Indefinite-lived intangible assets: Trademark/Trade names 62,010 — 61,860 — Total other intangible assets $ 433,530 $ ( 264,880 ) $ 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 September 30, Nine months ended September 30, 2024 2023 2024 2023 Technology and other, included in cost of sales $ 810 $ 800 $ 2,470 $ 2,410 Customer relationships, included in selling, general and administrative expenses 3,400 3,810 10,170

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (unaudited) 7. Inventories Inventories consist of the following components (dollars in thousands): September 30, 2024 December 31, 2023 Finished goods $ 90,010 $ 82,300 Work in process 61,410 51,990 Raw materials 62,460 58,160 Total inventories $ 213,880 $ 192,450 8. Property and Equipment, Net Property and equipment consists of the following components (dollars in thousands): September 30, 2024 December 31, 2023 Land and land improvements $ 31,100 $ 32,840 Buildings 95,550 99,230 Machinery and equipment 521,860 502,090 648,510 634,160 Less: Accumulated depreciation 319,200 304,170 Property and equipment, net $ 329,310 $ 329,990 Depreciation expense as included in the accompanying consolidated statement of income is as follows (dollars in thousands): Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Depreciation expense, included in cost of sales $ 9,660 $ 9,080 $ 29,150 $ 29,150 Depreciation expense, included in selling, ge

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