TriMas Corp., parent to Cequent Performance Products, announced today (Dec. 1) that Heartland Industrial Associates, L.L.C., has agreed to sell 2 million shares of its common stock to Goldman, Sachs & Co. as the sole underwriter in the registered public offering of those shares.
All net proceeds from the sale of the common stock will be received by the selling stockholder. TriMas will not receive any of the proceeds.
The shares are being sold by the selling stockholder pursuant to an effective shelf registration statement. Goldman, Sachs & Co. may offer the shares of common stock from time to time for sale in one or more transactions on the NASDAQ Global Market, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
Bloomfield Hills, Mich.-based TriMas Corp., a diversified manufacturer of engineered and applied products and parent to RV supplier Cequent Performance Products, announced that it has received an additional $15 million commitment from Wells Fargo Bank, N.A. under its existing senior secured revolving credit facility.
This increases the company’s total revolving credit capacity under the facility to $125 million.
“The increase in our revolving facility commitments is another important step in the growth of our company and demonstrates the confidence Wells Fargo has in TriMas,” said TriMas CFO Mark Zeffiro. “The increased capacity enhances our available liquidity and will allow us to continue to pursue our long-term growth objectives and strategies, including bolt-on acquisitions and entry into new global markets.”
TriMas Corp. today (Oct. 27) announced record sales for its third quarter, ended Sept. 30, and a 42% increase in net income.
The Bloomfield, Mich.-based company, parent to RV supplier Cequent Performance Products, posted sales of $277.7 million, an increase of 16.8% compared to third quarter 2010. Net income for the period was $17.0 million, a 42% improvement from $12.0 million the year prior, while diluted earnings per share from were 49 cents as compared to 35 cents.
During the third quarter of 2011, the company reported diluted earnings per share of 3 cents related to its precision cutting tool and specialty fitting lines of businesses now classified as discontinued operations and assets held for sale. Third quarter 2011 net income per diluted share was 52 cents, an increase of 40.5% as compared to 37 cents in third quarter 2010.
• Trimas reported sales growth in all six segments compared to third quarter 2010.
• Amended its accounts receivable facility with improved pricing and terms, which, in conjunction with the recent refinance of the company’s U.S. credit facilities, will continue to reduce interest costs, extend maturities and improve financial and operating flexibility.
• Completed the acquisition of Innovative Molding, a technology leader in the design, lining and manufacturing of specialty plastic closures for bottles and jars for the food and nutrition industries.
• Completed two small, bolt-on acquisitions to extend the company’s sales and manufacturing footprint into India and South Africa.
“We achieved our sixth consecutive quarter of double-digit sales and earnings growth, delivered by our continued attention to new product innovation, market share gains, geographic expansion and successful bolt-on acquisitions,” said David Wathen, TriMas president and CEO. “We remain focused on our productivity and lean initiatives, and we will use these savings to fund growth, offset inflation and expand margins. As a result of our 16.8% sales growth and productivity initiatives, we also achieved record third quarter earnings per share from continuing operations of $0.49, an increase of approximately 40% as compared to third quarter 2010.
“We remain positive about TriMas’ ability to outperform the economy, create sustainable operating leverage and generate strong cash flow. Our diverse product portfolio and end markets serve us well, especially during times of economic uncertainty. While we experienced some softness in packaging, which we quickly responded to, we experienced continued strength in our energy and aerospace-related markets. With the uncertain economic environment, we are not assuming any economic tailwinds as we model 2012. We believe we will have to earn every bit of growth and earnings improvement achieved. We are well-positioned to execute on our strategic imperatives throughout the remainder of 2011 and achieve double-digit EPS growth in 2012.”
To view the full report click here.
Bloomfield Hills, Mich.-based TriMas Corp. today (July 28) announced financial results for the second quarter ended June 30.
The company reported quarterly net sales from continuing operations of $299.7 million, an increase of 18.9% compared to second quarter 2010. Second quarter 2011 income from continuing operations was $17.1 million, or $0.49 per diluted share, including a ($0.07) per share impact related to debt extinguishment costs associated with the company’s recent refinancing. Trimas said excluding special items, second quarter income from continuing operations would have been $19.6 million, or $0.56 per share, compared to second quarter 2010 income from continuing operations of $15.2 million, or $0.44 per share.
Its Cequent Performance Products division, which produces towing products under the name brands of Reese, Draw-Tite, Bulldog, Fulton, ROLA and Tekonsha, posted a 7.2% increase in sales compared to the year ago period, resulting from increased sales within the retail, original equipment and aftermarket channels. Trimas said the sales increases were the result of market share gains, improved customer demand and new product introductions.
Highlights from the report include:
• Reported record quarterly net sales of $299.7 million, an increase of 18.9%, with sales growth in all six segments compared to second quarter 2010.
• Improved both income and diluted earnings per share from continuing operations by over 25%, excluding the impact of Special Items, compared to second quarter 2010.
• Raised the full-year 2011 diluted earnings per share (EPS) from continuing operations guidance range from $1.45 to $1.60 per share to $1.60 to $1.70 per share, excluding Special Items.
• Completed the refinance of its U.S. credit facilities, entering into a new credit agreement, primarily to reduce interest costs, extend maturities and improve financial and operating flexibility.
• Today announced an agreement to acquire Innovative Molding, a technology leader in the design, lining and manufacturing of specialty plastic closures for bottles and jars for the food and nutrition industries. Upon closing, Innovative will become part of Rieke, within the Packaging segment.
To view the full report click here.
A turnaround strategy by diversified holding company TriMas Corp. is paying off on Wall Street, according to Crain’s Detroit Business.
Debt has fallen, analyst consensus is climbing, share prices hit another all-time high of $24.52 a few weeks ago, and several investment fund and pension plan managers are buying up large stakes in the Bloomfield Hills, Mich., company – even as many of its traditional major holders are selling. Trimas is parent to Cequent Performance Products, a Plymouth, Mich.-based trailer and recreational vehicle accessory division.
Moody’s Investors Service this month slightly upgraded TriMas’ corporate family rating, a measure of its ability to cover debt obligations – improving its outlook from stable to positive.
Why the newfound confidence? Analysts generally are convinced that a turnaround strategy carried out after David Wathen became CEO in 2009 has worked. It included streamlining management, changing incentive criteria for executives, refinancing debt, building sales in developing global markets and improving its new product pipeline.
Also helping TriMas, and its competitors, is a stronger financial market and overseas opportunities for U.S. manufacturers.
Some threats linger too, like rising oil and commodity prices and U.S. currency exchange rates. But Wathen, 58, is convinced the holding company’s mix of manufacturing businesses is well-positioned for the risks.
“I felt coming in, and I’m even more convinced now, that TriMas had been under-investing in two things,” he said.
“One is what I call the “front end’ — automating functions like a computer system (for purchase orders) that’s more accessible to customers, which meant fewer people devoted to clerical work and greater resources for intellectual work. The other area was investment in product.”
Two years ago, TriMas’ stock price reached a low of around $1, its debt-to-EBITDA ratio was more than 5 to 1, and the company reported a $136.2 million net loss for 2008 on revenue of $1.01 billion. Revenue fell further in 2009, but grew in 2010 to $942 million and is expected to surpass $1 billion this year – with a profit.
The company first closed plants and cut more than 10% of its 4,000-plus workforce, eliminated one group of executives to streamline management and developed an incentive system for more than 75 remaining executives. A new incentive system tied performance to a mix of sales, new product development, earnings per share and other criteria.
Since then sales have advanced heavily in new products and new global markets such as Brazil, Thailand and India. Wathen said non-U.S. sales in 2011 should account for more than 28% of the top line.
TriMas even started hiring again in mid-2010, a trend that accelerated into the first quarter. The headcount is now around 3,900, and Wathen estimates total new hires are around half of the previous job cuts. Debt is down almost $25 million since last spring, and the debt-to-EBITDA ratio is now about 3 to 1.
Richard Hoss, research analyst at Roth Capital Partners in Newport Beach, Calif., said TriMas is faring better than some in its peer group, and he maintains a “buy” rating for its stock.
He also said energy and materials prices remain a risk for its high-margin packaging business segment as well as Cequent, its largest by revenue.
“As far as oil prices, the majority of the hit comes on the raw materials side that affects their packaging segment. And they’ve been able so far to push nearly 50% of the material costs along to customers,” Hoss said.
TriMas Corp. announced last week that its Cequent Performance Products Inc. unit had reached an agreement with Pacific Rim International LLC to protect the intellectual property rights of various Cequent Bulldog brand gooseneck trailer couplers.
In response to the discovery late last year that Pacific Rim had copied Cequent’s patented technology on several models of Cequent’s Bulldog gooseneck trailer couplers, Cequent filed a patent infringement suit, according to a news release.
Cequent’s Bulldog brand is a leading name in heavy duty couplers designed for utility, horse/livestock, cargo and construction trailer applications. The patented technology utilized in the Bulldog gooseneck couplers features a highly functional tapered locking plate system that has very high acceptance in these markets. Cequent’s Bulldog gooseneck couplers are available in configurations to match virtually any gooseneck trailer.
In response to Cequent’s claims, Pacific Rim agreed to settle the dispute with Cequent as opposed to facing continuing patent litigation in federal district court. The specific terms are confidential.
Several RV-related firms are scheduled to make presentations at the prestigious 4th Annual Barrington Research Conference May 25-26 at the Four Seasons Hotel in Chbicago.
Among the nearly 50 presenters are management leaders representing Drew Industries Inc., TriMas Corp., Spartan Motors Inc. and Navistar International Corp.
Barrington’s Industrial Conference provides institutional investors with access to management through a series of one-on-one and small group meetings.
More information on the conference, including registration for institutional investors, is located at http://www.brai.com.
TriMas Corp., Bloomfield Hills, Mich., a manufacturer of hitches through its Cequent division along with other divisions that make an assortment of non-RV related products, has announced financial results for the quarter ended March 31.
The company reported quarterly net sales from continuing operations of $220.1 million, an increase of 9.1% from first quarter 2009, according to a new release.
First quarter 2010 income from continuing operations was $5.8 million, a 24.5% improvement from $4.6 million in first quarter 2009. TriMas reported first quarter 2010 diluted earnings per share from continuing operations of $0.17, as compared to $0.14 during first quarter 2009. Excluding special items, first quarter 2009 loss from continuing operations would have been $0.7 million, or ($0.01) per share.
The company reported operating profit of $25.1 million in first quarter 2010, as compared to operating profit of $5.2 million during first quarter 2009. Excluding the impact of special items, operating profit would have improved 110%, from $12.0 million in first quarter 2009 to $25.1 million in first quarter 2010, which represents an increase in operating profit margin of 550 basis points.
In its Cequent division, TriMas reported sales for the first quarter increased 6.8% compared to the year-ago period, resulting from increased sales in the Australian/Asia Pacific and North American towing, trailer and electrical products businesses, and the favorable impact of currency exchange, partially offset by a decline in sales in the retail business.
Due to cost-reduction actions and improved sales levels, operating profit margin improved more than 840 basis points compared to first quarter 2009. The company continues to aggressively reduce fixed costs, decrease working capital and leverage strong brand positions for increased market share.
TriMas raised its outlook for full-year 2010 diluted earnings per share (EPS) from continuing operations to $0.65 to $0.75 per share, as compared to $0.43 per share in 2009, excluding special items in both periods. The company previously provided an outlook for 2010 EPS to exceed $0.60 per share. TriMas also raised its 2010 sales outlook from an increase of 4% to 7% to a range of 5% to 9% compared to 2009. In addition, the company expects its 2010 operating profit margin to improve by 80 to 120 basis points compared to 2009, excluding special items.
TriMas Corp. Tuesday (March 2) announced financial results for the quarter and full year ended Dec. 31, 2009.
For the quarter, the company reported sales from continuing operations of $191.1 million, a decline of 9.9% compared to the fourth quarter of 2008. The company reported a fourth quarter loss from continuing operations of $8.9 million, compared to loss from continuing operations of $149.8 million in fourth quarter 2008.
For the year ended Dec. 31, 2009, the company reported sales from continuing operations of $803.7 million, a 20.7% decline compared to 2008. The company reported full year income from continuing operations of $12.7 million, compared to a loss from continuing operations of $124.1 million in 2008.
Excluding Special Items for both periods, 2009 income from continuing operations would have been $14.9 million, as compared to 2008 income from continuing operations of $28.4 million, or $0.85 per diluted share.
As for TriMas’s Cequent Performance Products Division, sales for the fourth quarter increased 16% compared to the year ago period, resulting from increases in sales in the Australia/Asia Pacific and retail businesses and the favorable impact of currency exchange. Sales for the year decreased 12.1% compared to the year ago period due to weak, but improving, consumer demand for heavy-duty towing, trailer and electrical products and the unfavorable effects of currency exchange, partially offset by an increase in sales in the retail business and a slight improvement in sales in the Australia/Asia Pacific business.
Operating profit for the quarter and year improved as a result of cost reductions implemented as part of the company’s profit improvement plan, partially offset by lower sales volumes and lower absorption of fixed costs. Due to the cost reduction actions, operating profit margin for the full year 2009 improved approximately 240 basis points compared to 2008. The company continues to aggressively reduce fixed costs, decrease working capital and leverage strong brand positions for increased market share.
The company is estimating 2010 sales to increase 4-7%, compared to 2009. The company expects full-year 2010 diluted earnings per share (EPS) from continuing operations to exceed $0.60 per share, in comparison to $0.43 per share in 2009, excluding Special Items in both periods. In addition, the company expects its operating profit margin to improve by 60 to 100 basis points, compared to 2009, excluding Special Items, and Free Cash Flow to be in excess of $30 million.
“While we expect only a modest recovery in our end markets during 2010, we expect our planned growth and productivity initiatives to expand margins and accelerate our ability to grow earnings during the year,” said David Wathen, president and CEO. “The foundation we laid in 2009 will enhance our results in 2010, and provide for even greater margin expansion as normal end market demand returns.”
TriMas Corp. today (Jan. 14) announced it has concluded the final step of its previously announced refinancing activities with the completion of the cash tender offer for its outstanding 9 7/8% Senior Subordinated Notes due 2012.
According to a news release, the refinancing activities for TriMas included:
- The amendment of its credit agreement to extend the maturity of $226.3 million of $252.2 million in term loans from August 2013 to December 2015, which is expected to improve the company’s financial flexibility. The maturity date and interest margins of approximately $26 million in term loans held by lenders that did not consent will remain unchanged.
- Extending the maturities of $75 million in revolving credit commitments from August 2011 to December 2013. The maturities and interest margin of $8 million in revolving credit commitments remains unchanged.
- The issuance of $250 million principal amount of 9 3/4% Senior Secured Notes due 2017, the proceeds of which, together with other available cash, were used to redeem $256 million principal amount of outstanding notes.
- A new three-year accounts receivable facility which provides committed funding of up to $75 million and is expected to provide up to $25 million in increased availability at a lower cost of funds than the 364-day accounts receivable facility that it replaces.
“The refinancing activities of the past month improve and extend TriMas’ debt maturity profile, as well as provide additional financial flexibility that allows us to continue to execute on our business plan,” commented David Wathen, TriMas president and CEO. “We will remain focused on improving our operating performance via productivity initiatives and increased cash generation, allowing us to continue our progress in reducing debt and strengthening the balance sheet. We appreciate the cooperation we have received from our lenders and other stakeholders.”
TriMas is the parent company of RV supplier Cequent Performance Products.