EX-99.1 2 a07-11184_2ex99d1.htm EX-99.1

 

Exhibit 99.1

 

 

For more information, contact:

 

 

E.R. “Skip” Autry

Chief Financial Officer

TriMas Corporation

(248) 631-5496

MEDIA RELEASE

TRIMAS CORPORATION REPORTS FIRST QUARTER RESULTS

BLOOMFIELD HILLS, MICH. — April 30, 2007 — TriMas Corporation today announced financial results for the quarter ended March 31, 2007.  On a continuing operations basis, TriMas reported record sales of $286.7 million, Adjusted EBITDA of $42.0 million, operating profit of $33.3 million and income of $8.4 million or $.40 per share on a fully diluted basis; compared to 2006 first quarter sales of $273.0 million, Adjusted EBITDA of $37.8 million, operating profit of $28.7 million and income of $4.9 million or $.24 per share on a fully diluted basis.

First Quarter Highlights

TriMas’ President and Chief Executive Officer, Grant Beard, stated, “We are very pleased to report record quarterly sales and yet another quarter of improved profit performance on a year-over-year basis.  Sales increased 5%, 4% and 19% in our Packaging Systems, Energy Products and Industrial Specialties segments, respectively.  Operating profit increased in all segments except RV & Trailer Products, with Recreational Accessories up 24% and Industrial Specialties up 46% leading the way.  Compared to the prior year’s first quarter, earnings per share increased 67% and we continued to reduce debt levels.  Against a backdrop of low end market demand in our Recreational Accessories and RV & Trailer Products’ businesses, we are very proud of these accomplishments.  Additionally, we completed the sale of our industrial fastener business and no longer have any business units classified as discontinued operations.”

1




First Quarter Financial Summary

 

 

For the Quarter Ended March 31

 

(unaudited - in thousands, except per share amounts)

 

2007

 

2006

 

% Change

 

 

 

 

 

 

 

 

 

Sales

 

$

286,690

 

$

273,030

 

5.0

%

Operating profit

 

33,340

 

28,660

 

16.3

%

Income from continuing operations

 

8,390

 

4,940

 

69.8

%

Loss from discontinued operations, net of tax benefit

 

(1,340

)

(1,340

)

 

Net income

 

$

7,050

 

$

3,600

 

95.8

%

 

 

 

 

 

 

 

 

Earnings (loss) per share - basic

 

 

 

 

 

 

 

- Continuing operations

 

$

0.40

 

$

0.25

 

60.0

%

- Discontinued operations

 

(0.06

)

(0.07

)

14.3

%

- Net income

 

$

0.34

 

$

0.18

 

88.9

%

 

 

 

 

 

 

 

 

Earnings (loss) per share - diluted

 

 

 

 

 

 

 

- Continuing operations

 

$

0.40

 

$

0.24

 

66.7

%

- Discontinued operations

 

(0.06

)

(0.07

)

14.3

%

- Net income

 

$

0.34

 

$

0.17

 

100.0

%

 

 

 

 

 

 

 

 

Other Data - Continuing Operations:

 

 

 

 

 

 

 

- Depreciation and amortization

 

$

9,840

 

$

9,930

 

(0.9

)%

- Interest expense

 

$

18,860

 

$

19,920

 

(5.3

)%

- Other expense, net

 

$

1,160

 

$

780

 

48.7

%

- Income tax expense

 

$

4,930

 

$

3,020

 

63.2

%

- Adjusted EBITDA

 

$

42,020

 

$

37,800

 

11.2

%

 

Segment Results — Continuing Operations

Packaging Systems - Sales increased 5.2% as a result of further market penetration of new products.  Operating profit increased in line with revenue growth.

Energy Products - Sales increased 4.1% due to continued sales growth in our refinery and petrochemical business, offset by a decline in sales of engine and repair parts as a result of reduced oil and gas drilling activity in Canada.  Operating profit improved due to increased sales of specialty gaskets and a more profitable sales mix.

Industrial Specialties - Overall, sales increased 18.9% due to strong market demand and continued market and product expansion in our aerospace fastener, industrial cylinder and defense businesses.  Operating profit increased at a significantly higher rate as a result of increasing sales of higher margin products and improved operational leverage.

2




Segment Results — Continuing Operations (continued)

RV & Trailer Products - Sales declined as a result of continued soft end market demand offset in part by market share gains.  Operating profit declined due to lower sales and launch costs associated with a new manufacturing facility in Thailand.

Recreational Accessories - Sales increased as a result of capturing new business offset in part by continued weak end-market demand.  Operating profit improved compared to the prior year’s first quarter as a result of realizing the full benefit of sourcing initiatives and other cost reduction activities implemented throughout 2006.

Financial Position

TriMas ended the quarter with total debt of $723.5 million and funding under our receivables securitization of $44.4 million for a total of $767.9 million.  Total debt and receivables securitization decreased by $11.0 million when compared to the year ago period.  TriMas ended the quarter with cash of $3.9 million and $88.9 million of availability under our existing credit facilities.

Conference Call

TriMas will broadcast its first quarter earnings conference call on Monday, April 30, 2007 at  2:00 p.m. EDT.  President and Chief Executive Officer Grant Beard and Chief Financial Officer E.R. “Skip” Autry will discuss the Company’s recent financial performance and respond to questions from the investment community.  The visual presentation that will accompany the call will be available on the Company’s website at www.trimascorp.com.

To participate by phone, please dial: (866) 814-1933.   Callers should ask to be connected to the TriMas first quarter conference call (reservation number 1080509).  If you are unable to participate during the live teleconference, a replay of the conference call will be available beginning April 30th at 5:00 p.m. EDT through May 7th at 11:59 p.m. EDT.  To access the replay, please dial: (866) 837-8032 and use reservation number 1080509.

Cautionary Notice Regarding Forward-Looking Statements

This release contains “forward-looking” statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business.  Forward-looking statements include: certain anticipated, believed, planned, forecasted, expected, targeted and estimated results along with TriMas’ outlook concerning future results.  When used in this release, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements.  All forward-looking statements, including without limitation, management’s examination of historical operating trends and data, are based upon our current expectations and various assumptions.  Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for these views.  However, there can be no assurance that management’s expectations, beliefs and projections will be achieved.  These forward-looking statements are subject to numerous assumptions, risks and uncertainties and accordingly, actual results may differ materially from those expressed or implied by the forward-looking statements.  We caution readers not to place undue reliance on the statements, which speak to conditions only as of the date of this release.  The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.  We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.  Risks and uncertainties that could cause actual results to vary materially from those anticipated in the forward-looking statements included in this release include general economic conditions in the markets in which we operate and industry-based factors such as: technological developments that could competitively disadvantage us, increases in our raw material, energy, and healthcare costs, our dependence on key individuals and relationships, exposure to product liability, recall and warranty claims, compliance with environmental and other regulations, and competition within our industries.  In addition, factors more specific to us could cause actual results to vary materially from those anticipated in the forward-looking statements included in this release such as our substantial leverage, limitations imposed by our debt instruments, our ability to successfully pursue our stated growth strategies and opportunities, as well as our ability to identify attractive and other strategic acquisition opportunities and to successfully integrate acquired businesses and complete actions we have identified as providing cost-saving opportunities.

About TriMas

Headquartered in Bloomfield Hills, Mich., TriMas is a diversified growth company of high-end, specialty niche businesses manufacturing a variety of products for commercial, industrial and consumer markets worldwide.  TriMas is organized into five strategic business groups: Packaging Systems, Energy Products, Industrial Specialties, RV & Trailer Products, and Recreational Accessories.  TriMas has nearly 5,000 employees at 80 different facilities in 10 countries.  For more information, visit www.trimascorp.com.

3




TriMas Corporation
Consolidated Balance Sheet
(Unaudited — dollars in thousands)

 

 

March 31,

 

December 31,

 

 

 

2007

 

2006

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

3,900

 

$

3,600

 

Receivables, net

 

122,700

 

99,240

 

Inventories , net

 

170,240

 

165,360

 

Deferred income taxes

 

24,300

 

24,310

 

Prepaid expenses and other current assets

 

6,940

 

7,320

 

Assets of discontinued operations held for sale

 

 

11,770

 

Total current assets

 

328,080

 

311,600

 

Property and equipment, net

 

166,890

 

165,200

 

Goodwill

 

529,130

 

529,730

 

Other intangibles, net

 

236,580

 

240,120

 

Other assets

 

40,440

 

39,410

 

Total assets

 

$

1,301,120

 

$

1,286,060

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Current maturities, long-term debt

 

$

8,230

 

$

9,700

 

Accounts payable

 

131,770

 

100,070

 

Accrued liabilities

 

84,690

 

71,970

 

Liabilities of discontinued operations

 

 

23,530

 

Total current liabilities

 

224,690

 

205,270

 

Long-term debt

 

715,290

 

724,790

 

Deferred income taxes

 

89,250

 

89,940

 

Other long-term liabilities

 

32,540

 

33,280

 

Total liabilities

 

1,061,770

 

1,053,280

 

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: 20,759,500 shares

 

210

 

210

 

Paid-in capital

 

399,140

 

399,070

 

Accumulated deficit

 

(208,290

)

(215,220

)

Accumulated other comprehensive income

 

48,290

 

48,720

 

Total shareholders’ equity

 

239,350

 

232,780

 

Total liabilities and shareholders’ equity

 

$

1,301,120

 

$

1,286,060

 

 

4




TriMas Corporation
Consolidated Statement of Operations
(Unaudited — dollars in thousands, except for share amounts)\

 

 

Three Months Ended
March 31,

 

 

 

2007

 

2006

 

Net sales

 

$

286,690

 

$

273,030

 

Cost of sales

 

(207,400

)

(199,690

)

Gross profit

 

79,290

 

73,340

 

Selling, general and administrative expenses

 

(45,780

)

(44,500

)

Loss on dispositions of property and equipment

 

(170

)

(180

)

Operating profit

 

33,340

 

28,660

 

Other expense, net:

 

 

 

 

 

Interest expense

 

(18,860

)

(19,920

)

Other, net

 

(1,160

)

(780

)

Other expense, net

 

(20,020

)

(20,700

)

 

 

 

 

 

 

Income from continuing operations before income taxes

 

13,320

 

7,960

 

Income tax expense

 

(4,930

)

(3,020

)

Income from continuing operations

 

8,390

 

4,940

 

Loss from discontinued operations, net of income taxes

 

(1,340

)

(1,340

)

Net income

 

$

7,050

 

$

3,600

 

 

 

 

 

 

 

Earnings (loss) per share - basic:

 

 

 

 

 

Continuing operations

 

$

0.40

 

$

0.25

 

Discontinued operations, net of income taxes

 

(0.06

)

(0.07

)

 

 

 

 

 

 

Net income per share

 

$

0.34

 

$

0.18

 

 

 

 

 

 

 

Weighted average common shares - basic

 

20,759,500

 

20,010,000

 

 

 

 

 

 

 

Earnings (loss) per share - diluted:

 

 

 

 

 

Continuing operations

 

$

0.40

 

$

0.24

 

Discontinued operations, net of income taxes

 

(0.06

)

(0.07

)

 

 

 

 

 

 

Net income per share

 

$

0.34

 

$

0.17

 

 

 

 

 

 

 

Weighted average common shares - diluted

 

20,759,500

 

20,760,000

 

 

5




TriMas Corporation
Consolidated Statement of Cash Flows
(Unaudited — dollars in thousands)

 

 

 

Three months ended March 31,

 

 

 

2007

 

2006

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

 

$

7,050

 

$

3,600

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Loss on dispositions of property and equipment

 

380

 

100

 

Depreciation

 

5,930

 

5,910

 

Amortization of intangible assets

 

3,910

 

4,020

 

Amortization of debt issue costs

 

730

 

1,360

 

Deferred income taxes

 

660

 

(240

)

Non-cash compensation expense

 

70

 

420

 

Net proceeds from sale of receivables and receivables securitization

 

28,750

 

25,120

 

Increase in receivables

 

(51,930

)

(29,630

)

Increase in inventories

 

(5,700

)

(14,490

)

Decrease in prepaid expenses and other assets

 

1,910

 

200

 

Increase in accounts payable and accrued liabilities

 

35,910

 

14,320

 

Other, net

 

(730

)

320

 

Net cash provided by operating activities

 

26,940

 

11,010

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Capital expenditures

 

(19,480

)

(5,290

)

Net proceeds from disposition of businesses and other assets

 

4,000

 

640

 

Net cash used for investing activities

 

(15,480

)

(4,650

)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Repayment of term loan facilities

 

(860

)

(700

)

Proceeds from borrowings on revolving credit facilities

 

144,150

 

167,710

 

Repayments of borrowings on revolving credit facilities

 

(154,450

)

(175,390

)

Net cash used for financing activities

 

(11,160

)

(8,380

)

 

 

 

 

 

 

Cash and Cash Equivalents:

 

 

 

 

 

Increase (decrease) for the period

 

300

 

(2,020

)

At beginning of period

 

3,600

 

3,730

 

At end of period

 

$

3,900

 

$

1,710

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash paid for interest

 

$

6,630

 

$

5,280

 

Cash paid for taxes

 

$

2,260

 

$

4,930

 

 

6




TriMas Corporation

Company and Business Segment Financial Information

 

 

Three Months Ended

 

 

 

March 31,

 

(unaudited - dollars in thousands)

 

2007

 

2006

 

Packaging Systems

 

 

 

 

 

Net sales

 

$

53,750

 

$

51,100

 

Operating profit

 

$

9,000

 

$

8,190

 

Operating profit as a % of sales

 

16.7

%

16.0

%

 

 

 

 

 

 

Energy Products

 

 

 

 

 

Net sales

 

$

41,580

 

$

39,950

 

Operating profit

 

$

6,410

 

$

5,920

 

Operating profit as a % of sales

 

15.4

%

14.8

%

 

 

 

 

 

 

Industrial Specialties Group

 

 

 

 

 

Net sales

 

$

52,840

 

$

44,440

 

Operating profit

 

$

12,270

 

$

8,410

 

Operating profit as a % of sales

 

23.2

%

18.9

%

 

 

 

 

 

 

RV & Trailer Products

 

 

 

 

 

Net sales

 

$

53,410

 

$

55,860

 

Operating profit

 

$

6,460

 

$

8,260

 

Operating profit as a % of sales

 

12.1

%

14.8

%

 

 

 

 

 

 

Recreational Accessories

 

 

 

 

 

Net sales

 

$

85,110

 

$

81,680

 

Operating profit

 

$

5,140

 

$

4,140

 

Operating profit as a % of sales

 

6.0

%

5.1

%

 

 

 

 

 

 

Total Company - Continuing Operations

 

 

 

 

 

Net sales

 

$

286,690

 

$

273,030

 

Operating profit

 

$

33,340

 

$

28,660

 

Operating profit as a % of sales

 

11.6

%

10.5

%

 

 

 

 

 

 

Corporate expenses and management fee

 

$

5,940

 

$

6,260

 

 

 

 

 

 

 

Other Data - Continuing Operations:

 

 

 

 

 

- Depreciation and amortization

 

$

9,840

 

$

9,930

 

- Interest expense

 

$

18,860

 

$

19,920

 

- Other expense, net

 

$

1,160

 

$

780

 

- Income tax expense

 

$

4,930

 

$

3,020

 

 

7




TriMas Corporation

Reconciliation of Non-GAAP Measure Adjusted EBITDA (1)

 

 

Three Months Ended
March 31,

 

 

 

2007

 

2006

 

 

 

(dollars in thousands)

 

Net income

 

$

7,050

 

$

3,600

 

Income tax expense

 

4,980

 

2,170

 

Interest expense

 

18,860

 

19,920

 

Depreciation and amortization

 

9,840

 

9,930

 

Adjusted EBITDA, total company

 

40,730

 

35,620

 

Negative Adjusted EBITDA, discontinued operations

 

1,290

 

2,180

 

Adjusted EBITDA, continuing operations

 

$

42,020

 

37,800

 


(1) The Company has established Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) as an indicator of our operating performance and as a measure of our cash generating capabilities. The Company defines “Adjusted EBITDA” as net income (loss) before cumulative effect of accounting change, interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment charges and write-offs, non-cash losses on sale-leaseback of property and equipment, and write-off of equity offering costs.

8