TriMas Corporation Reports Fourth Quarter and Full Year 2013 Results | Business Wire

Article by · 2014/02/25 ·

February 20, 2014 08:00 AM Eastern Standard Time
BLOOMFIELD HILLS, Mich.–(BUSINESS WIRE)–TriMas Corporation (NASDAQ: TRS) today announced financial results for the year and quarter ended December 31, 2013. For the year, the Company reported record net sales from continuing operations of $1.395 billion, an increase of 9.6% compared to 2012. The Company reported full year income from continuing operations attributable to TriMas Corporation of $74.9 million, or $1.81 per diluted share, compared to income from continuing operations of $33.9 million, or $0.89 per diluted share, in 2012. Excluding Special Items(1), full year 2013 income from continuing operations would have been $85.1 million, or $2.06 per diluted share, as compared to $1.84 per diluted share in 2012.

“Company and Business Segment Financial Information – Continuing Operations.”

The Company reported record fourth quarter net sales from continuing operations of $323.4 million, an increase of 7.4% compared to fourth quarter 2012. The Company reported fourth quarter 2013 income from continuing operations attributable to TriMas Corporation of $6.9 million, or $0.15 per diluted share, as compared to a loss of $13.9 million, or $0.35 per diluted share during fourth quarter 2012. Excluding Special Items(1), fourth quarter 2013 diluted earnings per share from continuing operations would have been $0.31, as compared to $0.33 in fourth quarter 2012, while absorbing 13.8% higher weighted average shares outstanding in fourth quarter 2013 as compared to fourth quarter 2012.

TriMas 2013 Highlights

Achieved record net sales of $1.395 billion in 2013, an increase of 9.6%, due to the results from bolt-on acquisitions and the successful execution of numerous growth initiatives.
Improved 2013 income from continuing operations(1) by 22.1% compared to 2012. Improved 2013 diluted earnings per share(1) by 12.0%, while absorbing incremental costs related to numerous acquisitions and 9.1% higher weighted average shares outstanding for 2013 as compared to 2012.
Continued to optimize the debt structure in October 2013 to further reduce future interest rates, extend maturities and increase available liquidity. In 2013, reduced total indebtedness from $422.4 million as of December 31, 2012 to $305.7 million as of December 31, 2013, while reducing interest expense by almost 50% as compared to 2012.
Issued 5,175,000 shares of common stock with net proceeds of $174.7 million in September 2013 to support future revenue and earnings growth including bolt-on acquisitions and capital expenditures in support of growth and productivity initiatives.
Continued to invest in a flexible manufacturing footprint to optimize manufacturing costs long-term, add necessary capacity, enhance customer service and support future growth.
Continued to refine the business portfolio to support the Company’s strategic initiatives, including completing 10 bolt-on acquisitions during 2013 for approximately $105.8 million, net of cash acquired, and divesting the non-core assets of the European rings and levers business for approximately $10.3 million.
Expanded geographic reach and related sales into China, Thailand, Singapore, Brazil and several European countries.
“We completed 2013 with record net sales of approximately $1.4 billion, a 9.6% sales growth as compared to 2012, despite the challenges we faced in our energy end markets,” said David Wathen, TriMas President and Chief Executive Officer. “During the year, we pursued many key initiatives with actions focused on fine-tuning our business portfolio via acquisition and divestiture, enhancing our capital structure through our recent equity offering and debt refinancing, moving and consolidating multiple plants for cost reduction, integrating acquisitions and evaluating many potential acquisitions. We also continued to focus on our growth and productivity programs in each of our businesses. These initiatives will position TriMas for continued sales and earnings growth and will drive additional shareholder value into the future.”

“During the fourth quarter, we experienced additional pressure in our energy businesses, including cost structure and inventory challenges in Brazil,” Wathen continued. “While the end markets are negatively affecting current demand for our products, we are focused on optimizing our cost structures and supply chains in these businesses, increasing sales of our higher margin products and leveraging recent acquisitions in newer geographies. We remain focused on continuous improvement and productivity, and are taking actions to improve long-term margins in all of our businesses.”

“Looking forward, we remain committed to TriMas’ ability to attain our strategic aspirations, while intensifying our efforts to increase earnings, operating margins and cash flow. We are estimating 2014 top-line growth of 6% to 8% as compared to 2013. We expect full-year 2014 diluted earnings per share from continuing operations to range between $2.15 and $2.25 per share, taking into account the uncertainty in our energy end markets, a higher effective tax rate and currency fluctuations, as well as approximately 9% higher weighted average shares outstanding expected for 2014 as compared to 2013. We continue to be confident in our ability to grow the top-line faster than the economy, improve our margins and generate strong cash flow – to deliver increased returns on capital,” Wathen concluded.

Full Year 2013 Financial Results – From Continuing Operations (…)

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