TriMas (US:TRS)2020-10-29 15:32Financial Performance - Net sales for Q3 2020 were $199.46 million, a 5.5% increase from $188.41 million in Q3 2019[19] - Gross profit for Q3 2020 was $51.93 million, compared to $48.99 million in Q3 2019, reflecting a gross margin improvement[19] - The company reported a net loss of $100.87 million for Q3 2020, compared to a net income of $19.11 million in Q3 2019[22] - Basic earnings per share for continuing operations were $(2.32) in Q3 2020, down from $0.34 in Q3 2019[19] - For the three months ended September 30, 2020, total net sales increased to $199.46 million, compared to $188.41 million in the same period of 2019, representing a growth of 0.56%[46] - For the nine months ended September 30, 2020, total net sales reached $581.80 million, compared to $552.61 million in the same period of 2019, an increase of 5.3%[46] - The total operating loss for the Company was $108.32 million in Q3 2020, compared to an operating profit of $23.57 million in Q3 2019[106] - Income from continuing operations decreased by approximately $116.1 million, resulting in a net loss of $100.9 million for the three months ended September 30, 2020, compared to net income of $15.2 million in the same period of 2019[165] Segment Performance - The Consumer Products segment generated $114.22 million in sales for the three months ended September 30, 2020, up from $82.50 million in 2019, reflecting a significant increase of 38.5%[46] - Aerospace & Defense sales decreased to $39.13 million in Q3 2020 from $50.56 million in Q3 2019, a decline of 22.5%[46] - Industrial segment sales also declined to $46.11 million in Q3 2020 from $55.35 million in Q3 2019, a decrease of 16.7%[46] - Net sales for the Packaging segment increased to $135.12 million in Q3 2020 from $105.48 million in Q3 2019, while Aerospace segment sales decreased to $39.13 million from $50.56 million[106] - Net sales in the Packaging segment increased approximately $65.7 million, or 22.0%, to $364.0 million for the nine months ended September 30, 2020, driven by increased demand for personal hygiene applications[188] Assets and Liabilities - Total assets decreased to $1,075.52 million as of September 30, 2020, from $1,192.70 million as of December 31, 2019[17] - Total liabilities increased to $517.55 million as of September 30, 2020, compared to $495.22 million as of December 31, 2019[17] - Cash and cash equivalents decreased to $99.74 million at the end of Q3 2020, down from $172.47 million at the beginning of the year[24] - Long-term debt, net, increased slightly to $295.55 million as of September 30, 2020, from $294.69 million as of December 31, 2019[66] Impairment and Charges - The company incurred an impairment charge of $134.60 million related to goodwill and indefinite-lived intangible assets in Q3 2020[19] - Goodwill impairment charges totaled approximately $70.8 million for the Aerospace Fasteners unit and approximately $56.0 million for the Aerospace Engineered Products unit during the three and nine months ended September 30, 2020[59] - The Aerospace segment experienced goodwill and intangible asset impairment charges of approximately $126.8 million and $7.8 million, respectively, due to reduced financial projections and uncertainty from the COVID-19 pandemic[134] - The Company recorded a non-cash, pre-tax charge of approximately $23.4 million for asbestos-related costs in the second quarter of 2020[99] Cash Flow and Financing - Operating cash flow from continuing operations was $79.11 million for the nine months ended September 30, 2020, compared to $60.61 million for the same period in 2019[24] - Cash flows provided by operating activities were approximately $79.1 million for the nine months ended September 30, 2020, compared to approximately $60.6 million for the same period in 2019[202] - Net cash used for investing activities was approximately $110.9 million for the nine months ended September 30, 2020, compared to $89.1 million in the same period of 2019, with significant investments in acquisitions and capital expenditures[202] - The company generated approximately $82.7 million of cash for the nine months ended September 30, 2020, based on a reported net loss of approximately $103.5 million after considering non-cash items[202] Acquisitions and Divestitures - The company completed the sale of its Lamons division for approximately $135 million in cash on December 20, 2019, which is now classified as discontinued operations[36] - The Company acquired the Rapak® brand for approximately $11.4 million, which historically generated approximately $30 million in annual revenue[48] - The acquisition of RSA Engineered Products was completed for approximately $83.7 million, also generating approximately $30 million in annual revenue[49] - The Company signed an agreement to acquire Affaba & Ferrari Srl for approximately €84 million, expected to close by the end of 2020[123] Stock and Compensation - The Company did not grant any stock option awards during the nine months ended September 30, 2020, with 150,000 stock options outstanding at an average price of $17.87[108] - The Company awarded 189,349 RSUs to employees, vesting over three years, and 31,816 RSUs vesting fully at the end of three years[110] - The Company recognized stock-based compensation expense of approximately $5.6 million for the nine months ended September 30, 2020, compared to $3.9 million in the same period of 2019[116] - The Company repurchased 1,441,678 shares of its common stock for approximately $36.0 million during the nine months ended September 30, 2020[118] Market and Economic Conditions - The company expects continued robust demand for its Packaging segment's products used in personal care and home care applications[141] - The company anticipates that the aerospace market will experience significant dislocation due to ongoing travel restrictions and a drop in passenger miles[141] - The company has taken defensive actions in response to COVID-19, including tightening capital expenditures and monitoring accounts receivable balances[215]