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Actionable news in TRS: TriMas Corporation,

TriMas: Vp, Investor Relations & Communications

The following excerpt is from the company's SEC filing.

(248) 631-5506


Company Reports Growth in Income

and EPS

of More Than 30%

Raises Full Year 2015 EPS and Free Cash Flow Guidance


October 29, 2015

- TriMas Corporation (NASDAQ: TRS) today announced financial results for the quarter ended

September 30, 2015

. The Company reported

third quarter

net sales from continuing operations of

$222.2 million

, relatively flat as compared to

income from continuing operations attributable to TriMas Corporation of

$11.7 million

per diluted share,

as compared to income of

$11.1 million

per diluted share, in the

. Excluding Special Items

diluted earnings per share from continuing operations would have been

improvement from

TriMas Highlights

Improved income and earnings per share from continuing operations by

, respectively, excluding the impact of Special Items

, compared to the

Announced and began implementing a broadly-focused Financial Improvement Plan, targeting cost actions which are expected to yield approximately $15 million of annual savings, and improve the Company’s profitability, cash flow conversion and operational efficiency.

Improved operating profit margin

by 300 basis points with improvements in Packaging, Aerospace and Energy, and a reduction in corporate expenses as compared to

Continued to execute on reorganization and integration initiatives in Packaging and Aerospace, the Company's highest margin businesses, to drive future growth and margin expansion.

Launched the TriMas Aerospace Engineering Research and Technology team to partner with the Company's aerospace customers to support innovation and application growth; TriMas Aerospace also recognized as the Embraer 2015 Hardware Supplier of the Year.

"While our third quarter sales were relatively flat year-over-year, we achieved 300 basis points of margin expansion and an increase of

in earnings per share

," said David Wathen, TriMas President and Chief Executive Officer. "We realized year-over-year operating profit margin improvements in three out of four of our segments, reduced corporate expenses as compared to a year ago, and realigned our engine and compressor business' cost structure to break even despite a 60% decline in sales year-over-year. We were able to achieve these results in an environment of global macroeconomic uncertainty, with external headwinds related to continued low oil-related activity, a strong U.S. dollar and relative weakness in our industrial end markets."

"In addition, our team is aggressively implementing our Financial Improvement Plan announced in September, pursuing cost actions to accelerate business improvement initiatives that maintain or enhance margins across the company. With significant uncertainty in many end markets and economies, we continually assess and implement measures to improve our operations and financial position. We expect this broad-based set of cost reductions to position us for improved margins and free cash flow in 2016, in spite of top-line headwinds. While our immediate focus remains on cost reduction, we also continue to invest in initiatives that will drive future profitable growth," Wathen continued.

"Based on our third quarter performance and the current trends we are experiencing, we are updating our full year 2015 outlook from continuing operations, slightly lowering sales guidance, while increasing projected earnings per share from $1.15 to $1.25, to $1.25 to $1.30, excluding any future events that may be considered Special Items. We are also increasing

Free Cash Flow outlook to be between $50 million and $60 million. As we move forward, we are focused on mitigating the challenging growth environment, while driving enhanced profitability through cost reduction actions and investment in higher-return projects." Wathen concluded.

Quarter Financial Results - From Continuing Operations

TriMas reported

net sales of

$222.3 million

. The positive impact of recent acquisitions and organic initiatives was offset by sales declines resulting from the impact of lower oil prices, macroeconomic uncertainty and $3.6 million of unfavorable currency exchange, primarily in Packaging and Energy.

The Company reported operating profit of

$21.6 million

, an increase of

related to severance and business restructuring,

operating profit would have been

$29.9 million

$23.2 million


Third quarter

operating profit margin, excluding Special Items

, increased 300 basis points to

, as a result of improvements in Packaging, Aerospace and Energy, and a reduction in corporate expenses as compared to

income from continuing operations attributable to TriMas Corporation was

per diluted share, compared to

per diluted share in

income from continuing operations attributable to TriMas Corporation would have been

$17.8 million

per diluted share, an improvement of

The Company reported Free Cash Flow (defined as Net Cash Provided by Operating Activities of Continuing Operations, excluding the cash impact of the Financial Improvement Plan, less Capital Expenditures) of

$1.5 million

$8.0 million

. On a year-to-date basis, the Company generated

$9.1 million

of Free Cash Flow and expects to generate between $50 million and $60 million for full year 2015.

Discontinued Operations

On June 30, 2015, the Company completed the spin-off of its Cequent businesses (comprised of the Cequent Americas and Cequent APEA reportable segments), creating a new independent publicly-traded company, Horizon Global Corporation, through a distribution of 100% of the Company's interest in Horizon Global to holders of TriMas common shares. The results of operations of the Cequent businesses, as well as the one-time costs incurred in connection with the separation of the two companies, are included in discontinued operations for all periods presented.

Financial Position

TriMas reported total indebtedness of

$459.4 million

as of

, as compared to

$638.6 million

December 31, 2014

, and $338.3 million as of September 30, 2014. The Company used the cash distribution from Horizon Global to reduce the outstanding borrowings in conjunction with the spin-off of the Cequent businesses. The increase in total indebtedness from the year ago period is related to the additional borrowings in October 2014 to fund the acquisition of Allfast Fastening Systems, net the reduction resulting from the Horizon Global distribution. TriMas ended

$129.7 million

of cash and aggregate availability under its revolving credit and...