NASDAQ$TRS

TriMas Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

TriMas reported results with increased net sales driven by record sales in the Packaging group.

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

Headline financials

Total Revenue

$200M

Previous: $239M-16.6%
EPS (adj)

$0.43

Previous: $0.50-14.0%
Free Cash Flow

-$15.7M

Previous: $22M-171.3%
Net Income

-$15.7M

Previous: $22M-171.3%
Operating Income

-$18.2M

Previous: $31.1M-158.3%
Gross Profit

$37.2M

Previous: $65.4M-43.0%
Cash & Equivalents

$65.3M

Previous: $40.3M+62.0%
Total Assets

$1.18B

Previous: $1.17B+1.1%
Stock-Based Comp

$2.74M

Previous: $1.72M+59.3%

Revenue & EPS history

TriMas · Revenue · Quarterly

$200M

Q2 2020-16.6%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

TriMas · $200M total across 3 segments · Q2 2020

  • Packaging
    $129M+23.9%
  • Aerospace (Discontinued)
    $42.6M-13.9%
  • Specialty Products
    $28.1M-24.7%

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.

Tailwinds

  • 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

Headwinds

  • 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
  • Relatively flat total sales expected for TriMas for the back half of 2020 compared to prior year
  • Impacts of the global pandemic to continue

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-0.3%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+14.8%

Q3 2014

Best reaction

-29.6%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+14.9%+13.4%
Q4 2025+3.1%+4.0%-3.2%
Q3 2025-2.8%-9.1%-13.0%
Q1 2025+12.3%+17.9%+26.8%
Q4 2024-6.2%+0.1%+6.7%
Q3 2024-3.3%+1.0%-1.7%
Q2 2024-10.0%-13.0%-7.2%
Q1 2024-3.6%-2.0%-0.2%
Q4 2023-8.5%-6.0%+4.1%
Q3 2023+3.6%+5.8%+7.3%
Q2 2023-2.0%-7.3%-7.9%
Q1 2023+0.4%+1.7%+1.3%
Q4 2022-3.0%-1.0%-10.8%
Q3 2022-18.1%-14.0%-4.9%
Q2 2022+4.5%+2.0%-0.7%
Q1 2022-3.2%-5.1%-5.7%
Q4 2021-1.6%-0.8%-1.3%
Q3 2021+0.2%+2.2%+5.7%
Q2 2021-1.4%-5.1%-3.3%
Q1 2021+1.2%+3.5%+3.1%
Q4 2020-6.0%-10.7%-13.2%
Q3 2020+3.0%+10.5%+17.2%
Q2 2020-6.0%-5.1%+3.5%
Q1 2020-10.5%-11.5%-8.7%
Q4 2019-9.6%-4.8%-18.1%
Q3 2019-7.4%-5.2%-7.4%
Q2 2019-1.8%-1.6%-3.9%
Q1 2019-4.9%-3.9%-11.0%
Q4 2018+1.7%+2.2%-2.9%
Q3 2018+7.4%+7.4%+4.6%
Q2 2018+5.7%+4.0%+3.4%
Q1 2018-0.4%-1.1%+4.7%
Q4 2017+3.8%+2.6%+5.2%
Q3 2017-2.0%-4.3%-8.1%
Q2 2017+8.1%+11.3%+7.9%
Q1 2017+5.3%+5.3%+0.0%
Q4 2016-1.5%-6.9%-10.5%
Q3 2016+2.2%-0.6%+21.2%
Q2 2016-10.7%-12.5%-5.7%
Q1 2016-1.8%
Q4 2015+4.2%
Q3 2015+4.4%
Q2 2015-29.6%
Q1 2015-10.0%
Q4 2014+2.1%
Q3 2014+14.8%
Q2 2014-5.6%
Q1 2014+11.0%
Q4 2013-3.1%
Q3 2013-8.2%
Q2 2013+8.4%
Q1 2013+0.2%
Q4 2012+1.7%
Q3 2012-1.1%
Q2 2012+13.3%
Q1 2011-1.7%
Q1 2012+6.6%
Q4 2011+6.0%
Q4 2009+6.0%
Q3 2010+11.1%
Q3 2011+11.1%
Q4 2010+4.0%
Q2 2010+4.0%
Q2 2011+4.0%
Q1 2010-2.4%

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