TriMas (TRS)2025-02-27 21:40Financial Performance - TriMas Corporation reported net sales of $925.01 million for the year ended December 31, 2024, an increase of 3.9% compared to $893.55 million in 2023[260]. - The company's gross profit for 2024 was $199.46 million, a decrease of 0.4% from $201.32 million in 2023[260]. - Operating profit decreased to $47.19 million in 2024, down 28% from $65.44 million in 2023[260]. - Net income for 2024 was $24.25 million, a decline of 40% compared to $40.36 million in 2023[260]. - Basic earnings per share for 2024 were $0.60, down from $0.97 in 2023[260]. - Total net sales for 2024 reached $925.0 million, a slight increase from $893.6 million in 2023[320]. - Income before income taxes for the year ended December 31, 2024, was $30.04 million, down from $50.59 million in 2023 and $87.67 million in 2022[426]. - The total current income tax expense for 2024 was $8.33 million, compared to $12.10 million in 2023 and $22.94 million in 2022[426]. Assets and Liabilities - Total assets decreased to $1.32 billion as of December 31, 2024, from $1.34 billion in 2023[258]. - Total liabilities remained relatively stable at $656.88 million in 2024, compared to $658.71 million in 2023[258]. - The company reported a goodwill balance of $356.36 million as of December 31, 2024, down from $363.77 million in 2023[258]. - Long-term debt, net, increased slightly to $398.1 million in 2024 from $395.7 million in 2023, with $400.0 million in senior notes due April 2029[336]. - The fair value of the 4.125% senior notes was $365.0 million as of December 31, 2024, compared to a carrying amount of $400.0 million[349]. Cash Flow and Investments - Net cash provided by operating activities decreased to $63,780,000 in 2024 from $88,160,000 in 2023, reflecting a decline of approximately 28%[266]. - Capital expenditures for 2024 were $50,960,000, slightly lower than $54,190,000 in 2023[266]. - Net cash used for investing activities was $46,960,000 in 2024, a significant reduction from $134,420,000 in 2023[266]. - Proceeds from borrowings on revolving credit facilities increased to $308,930,000 in 2024, compared to $117,990,000 in 2023[266]. - Cash and cash equivalents at the end of 2024 were $23,070,000, down from $34,890,000 at the end of 2023[266]. Comprehensive Income - Other comprehensive loss for 2024 was $19.20 million, compared to a gain of $9.27 million in 2023[263]. - The company experienced a net current-period other comprehensive loss of $19.2 million in 2024, primarily due to foreign currency translation losses[411]. Acquisitions and Divestitures - The Company acquired Weldmac Manufacturing Company for a purchase price of $34.0 million, with contingent consideration of up to $10 million based on earnings targets[313]. - The acquisition of Aarts Packaging B.V. was completed for $37.8 million, with historical annual revenue of €23 million[314]. - The company completed the sale of its Arrow Engine business for a purchase price of $22.0 million on January 31, 2025[436]. - The acquisition of GMT Aerospace was completed for approximately €34.0 million, with annual net sales of about €22.0 million[437]. Shareholder Returns - The company declared dividends of $6,630,000 in 2024, slightly lower than $6,700,000 in 2023[268]. - Total dividends declared and paid on common shares were $6.6 million in 2024, slightly down from $6.7 million in 2023 and $6.9 million in 2022[410]. - The company repurchased 771,067 shares in 2024 for $19.3 million, compared to 680,594 shares for $18.8 million in 2023, indicating an increase in share repurchase activity[409]. - The company has $67.6 million remaining under the stock repurchase authorization as of December 31, 2024[409]. Pension and Asbestos Liabilities - The net periodic pension benefit expense for defined benefit pension plans was $(40,000) in 2024, compared to $780,000 in 2023[382]. - The funded status of the Company's defined benefit pension plans as of December 31, 2024, was a net liability of $1.34 million, down from a net asset of $330,000 in 2023[388]. - The total asbestos-related liability as of December 31, 2024, was $29.7 million, reflecting the Company's ongoing assessment of claims and settlements[374]. - The Company recorded a pre-tax charge of $5.5 million in 2024 to increase the asbestos-related liability estimate to $31.0 million, based on a study indicating a potential future liability range of $31.0 million to $39.8 million[374]. Segment Performance - Segment adjusted operating profit for the Packaging segment in 2024 was $71.2 million, while Aerospace and Specialty Products segments reported $37.2 million and $6.4 million, respectively, leading to a total segment adjusted operating profit of $114.8 million[419]. - The Aerospace & Defense segment generated $294.2 million in revenue for 2024, up from $241.4 million in 2023[320]. - The Company’s Packaging segment earned revenues from various markets, including beauty and personal care, food and beverage, and industrial markets[320]. Derivative Financial Instruments - The company utilized derivative financial instruments to manage currency risks and interest rate risks associated with its operations[245][246]. - The Company records derivative financial instruments at fair value, with changes recognized in earnings unless designated as effective hedges[304]. - The Company entered into two cross-currency swap agreements in 2024, each with a notional amount of $75.0 million, to hedge against currency volatility[352][353]. - The income recognized from foreign exchange contracts was $8,590 thousand for the year ended December 31, 2024, compared to $(1,880) thousand in 2023[359].