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Jun 30, 2020
TriMas Q2 2020 Earnings Report
TriMas reported results with increased net sales driven by record sales in the Packaging group.
Key Takeaways
TriMas reported a 4.6% increase in net sales for Q2 2020, driven by record sales in its Packaging group. The company's adjusted diluted EPS from continuing operations was $0.43. TriMas ended the quarter with a strong balance sheet, including $349.4 million in cash and aggregate availability.
Increased second quarter net sales by 4.6%, driven by record sales in TriMas' Packaging group
Reported second quarter diluted loss per share from continuing operations of $0.36, driven by an accounting policy change and realignment charges, while adjusted diluted earnings per share from continuing operations was $0.43
Generated net cash provided by operating activities from continuing operations of $27.4 million, which resulted in Free Cash Flow of $25.2 million for the second quarter
Strong balance sheet with $349.4 million of cash and aggregate availability, and a leverage ratio of 1.6x
Revenue by Segment
Forward Guidance
TriMas expects relatively flat sales for the second half of 2020 compared to the second half of 2019, with robust Packaging segment sales offset by weaker demand in Aerospace and Specialty Products. The company anticipates generating solid Free Cash Flow at greater than 100% of net income and maintaining a strong balance sheet.
Positive Outlook
- Continued strong demand and growth of 15% to 20% in Packaging segment compared to back half of 2019
- Focus on realigning cost structures where needed
- Proactively working with customers to maximize opportunities
- Anticipates continuing to generate solid Free Cash Flow at greater than 100% of net income
- Maintaining a strong balance sheet
Challenges Ahead
- Continued weaker demand for products in Aerospace segment
- Expects back half sales declines in Specialty Products segment of 15% to 25%, consistent with the sales change in the front half of 2020
- Anticipates back half of 2020 Aerospace segment sales to be more in line with the broader aerospace market, with sales declines of approximately 20% to 30% compared to the same period in 2019
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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