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TRIMAS CORPORATION (TRS) filed Quarterly Report for the period ended 2011-09-30.
Trimas Corp. has a market cap of $623.7 million; its shares were traded at around $18.04 with a P/E ratio of 11.8 and P/S ratio of 0.7.
This is the annual revenues and earnings per share of TRS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TRS.
Highlight of Business Operations:
Packaging's gross profit increased approximately $2.3 million to $56.3 million, or 40.9% of sales, in the nine months ended September 30, 2011, as compared to $54.1 million, or 40.5% of sales, in the nine months ended September 30, 2010. Although the acquisition of Innovative Molding added approximately $6.2 million of sales in 2011, it only contributed approximately $0.4 million of gross profit, with the low margin primarily due to purchase accounting adjustments related to step-up in value and subsequent amortization of inventory and intangible assets and related to planned costs incurred and manufacturing inefficiencies related to the move to a new manufacturing facility. The inclusion of Innovative Molding's results of operations, including the purchase accounting and move costs, drove a 160 basis point drop in gross profit margin for this segment. After consideration of changes in gross profit related to the Innovative Molding acquisition, gross profit increased $1.9 million, primarily driven by favorable currency exchange of $1.8 million. This segment was able to hold gross profit dollars essentially flat in its legacy business despite a $5.7 million reduction in legacy sales levels after consideration of currency exchange, equating to almost a 200 basis point improvement in gross profit margins. This margin improvement was due to the continued savings and efficiencies generated by our continued capital investments, productivity projects and lean initiatives.Cequent North America. Net sales increased approximately $32.6 million, or 11.9% to $306.2 million in the nine months ended September 30, 2011, as compared to $273.6 million in the nine months ended September 30, 2010, primarily due to year-over-year increases within our retail, original equipment, aftermarket and industrial channels, all of which were aided by the economic recovery that began in 2010 and continued through the third quarter of 2011. Sales in our retail channel increased approximately $14.2 million in the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010, with approximately 40% of the increase related to a one-time stocking order by one significant customer for a new product placement of cargo management products during the first quarter of 2011, 40% of the increase related to product sales to new customers and 20% of the increase related to market share gains at certain of our existing customers to whom we now provide additional products. Sales within our aftermarket channel increased approximately $8.1 million in the first nine months of 2011 compared to the first nine months of 2010, primarily due to market share gains and new product introductions. Sales in our industrial channel increased approximately $5.6 million in the first nine months of 2011 compared to the first nine months of 2010, primarily due to sales to new customers and higher levels of trailer‑builds, which use our towing, trailer and electrical products. Sales to original equipment manufacturers and suppliers increased approximately $5.0 million in the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010, primarily due to the full run rate of sales generated from our new product launches throughout 2010.
Engineered Components. Net sales for the nine months ended September 30, 2011 increased approximately $49.1 million, or 63.1%, to $126.9 million, as compared to $77.8 million in the nine months ended September 30, 2010. Sales in our industrial cylinder business increased by approximately $28.0 million. Of this increase, approximately $8.2 million was due to our Taylor-Wharton asset acquisition during the second quarter of 2010, approximately $9.5 million was due to market share gains, primarily of large high pressure cylinders to existing customers, and $1.1 million was due to new product introductions, primarily related to cellular phone tower and breathing air applications. The remainder of the increase was primarily due to the continued upturn in economic conditions. Sales of slow speed and compressor engines and related products increased by approximately $21.1 million, as sales of engines and engine parts increased approximately $12.2 million due to increased drilling activity as compared to the nine months ended September 30, 2010. Sales of gas compression products and processing and meter run equipment increased by approximately $8.9 million, as we continue to introduce new products to add to our well-site content.
Another important source of liquidity is our accounts receivable facility, under which we have the ability to sell eligible accounts receivable to a third-party multi-seller receivables funding company. We amended the facility in September 2011, increasing the committed funding from $75.0 million to $90.0 million, and reducing the margin on amounts outstanding from a range of 2.75%-3.50%, depending on leverage ratio, to a range of 1.50%-1.75% depending on the amount drawn under the facility. The amendment also reduced the cost of the unused portion of the facility from a range of 0.50%-1.00%, depending on usage amount, to 0.45% and extended the maturity date from December 29, 2012 to September 15, 2015. We incurred approximately $0.1 million in fees and expenses to complete the amendment. We did not have any amounts outstanding under the facility as of September 30, 2011 or December 31, 2010, but had $70.3 million and $41.4 million, respectively, available but not utilized.
Depreciation expense was approximately $6.0 million and $5.2 million, and $17.5 million and $16.1 million for the three and nine months ended September 30, 2011 and 2010, respectively, of which $5.3 million and $4.6 million, and $15.3 million and $14.2 million, respectively, is included in cost of sales in the accompanying consolidated statement of operations, and $0.7 million and $0.6 million, and $2.2 million and $1.9 million, respectively, is included in selling, general and administrative expenses in the accompanying consolidated statement of operations.
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