TriMas (US:TRS)2024-02-29 20:06Financial Performance - TriMas Corporation reported net sales of $893.55 million for the year ended December 31, 2023, an increase of 1% from $883.83 million in 2022[255]. - The company's gross profit for 2023 was $201.32 million, down from $208.30 million in 2022, reflecting a decrease of approximately 3.7%[255]. - Operating profit decreased to $65.44 million in 2023 from $99.06 million in 2022, representing a decline of about 33.9%[255]. - Net income for 2023 was $40.36 million, a decrease of 39% compared to $66.17 million in 2022[255]. - Basic earnings per share for 2023 were $0.97, down from $1.57 in 2022, indicating a decline of approximately 38.2%[255]. - The company reported a total comprehensive income of $49.63 million for 2023, compared to $57.32 million in 2022, reflecting a decrease of about 13.5%[258]. - The company reported a total income before income taxes of $50.59 million in 2023, down from $87.67 million in 2022, reflecting a decrease of about 42.3%[425]. - The current income tax expense for 2023 was $12.1 million, a decrease from $22.94 million in 2022[425]. - The income tax expense for the year ended December 31, 2023, was $10.23 million, a decrease of 52.5% compared to $21.5 million in 2022[430]. Assets and Liabilities - Total assets increased to $1.34 billion as of December 31, 2023, compared to $1.31 billion in 2022, marking a growth of about 2.7%[253]. - The company's total liabilities rose to $658.71 million in 2023 from $653.17 million in 2022, an increase of approximately 0.8%[253]. - Long-term debt, net stood at $395,660,000 in 2023, slightly up from $394,730,000 in 2022, indicating a marginal increase of 0.2%[31]. - The Company has $400,000,000 in 4.125% Senior Notes due April 2029, with no maturities due until then[35]. - As of December 31, 2023, the Company had $294,000,000 available under its revolving credit facility after accounting for $6,000,000 in letters of credit issued[41]. - The total accrued liabilities increased to $59,640,000 in 2023, compared to $46,660,000 in 2022, marking a rise of 27.7%[30]. Cash Flow and Investments - TriMas Corporation's cash and cash equivalents decreased to $34.89 million in 2023 from $112.09 million in 2022, a decline of approximately 68.9%[253]. - Net cash provided by operating activities increased to $88,160,000 in 2023 from $72,570,000 in 2022, reflecting a 21% growth[261]. - Capital expenditures for 2023 were $54,190,000, up from $45,960,000 in 2022, indicating a 24% increase[261]. - Net cash used for investing activities rose significantly to $134,420,000 in 2023 from $55,040,000 in 2022, representing a 144% increase[261]. - Cash paid for interest increased to $14,320,000 in 2023 from $12,960,000 in 2022, marking an increase of 10%[261]. Goodwill and Intangible Assets - Goodwill allocated to the Aerospace Segment was $70 million as of December 31, 2023, with no impairment recognized during the assessment[248]. - Goodwill increased to $363.77 million as of December 31, 2023, from $339.81 million at the end of 2022, reflecting acquisitions and foreign currency translation[319]. - The Company recorded an impairment charge of $1.1 million for one of its aerospace-related trade names during the 2023 annual indefinite-lived intangible asset impairment test[321]. - The Company incurred $18.18 million in total amortization expense for intangible assets in 2023, down from $19.1 million in 2022[323]. - Estimated amortization expense for 2024 is projected to be $17.22 million[325]. Dividends and Stock Repurchase - The total dividends declared in 2023 were $6,700,000, slightly down from $6,880,000 in 2022[263]. - Total dividends declared and paid on common shares during 2023 amounted to $6.7 million, consistent with the quarterly dividend of $0.04 per share[408]. - The Company repurchased 680,594 shares of its common stock for $18.8 million in 2023, with $86.9 million remaining under the repurchase authorization[407]. Segment Performance - The Packaging segment reported net sales of $463.6 million in 2023, down from $522.18 million in 2022, reflecting a decrease of approximately 11.2%[421]. - The Aerospace segment experienced a significant increase in net sales, rising to $241.4 million in 2023 from $188.09 million in 2022, marking an increase of about 28.3%[421]. - The Specialty Products segment achieved net sales of $188.55 million in 2023, up from $173.56 million in 2022, representing an increase of approximately 8.6%[421]. Taxation - The net deferred tax asset increased to $55.48 million from $48.55 million in 2022, reflecting a growth of approximately 14.0%[427]. - The company recorded deferred tax assets on $25.4 million of state operating loss carryforwards and $60.5 million of foreign operating loss carryforwards, with most state losses expiring between 2026 and 2032[427]. - Unrecognized tax benefits (UTBs) decreased to $0.83 million in 2023 from $1.11 million in 2022, indicating a reduction of approximately 25.2%[430]. - The company has recorded potential interest and penalties associated with uncertain tax positions amounting to $0.4 million as of December 31, 2023[430]. - The U.S. federal statutory tax rate remained stable at 21% for the years ended December 31, 2023, 2022, and 2021[430]. Pension and Asbestos Liabilities - The net periodic pension benefit expense for defined benefit pension plans was $0.78 million in 2023, compared to $0.71 million in 2022[379]. - The Company recognized a one-time, pre-tax settlement charge of $1.0 million in 2023 related to transferring Canadian defined benefit obligations to an insurance company[380]. - Non-current asbestos-related liabilities were $23,880 thousand as of December 31, 2023, down from $26,370 thousand in 2022[364]. - The Company faced 459 pending asbestos-related cases involving 4,863 claimants as of December 31, 2023, with an average settlement amount of $15,465 per claim[368]. - The total settlement costs for asbestos-related cases, excluding defense costs, have reached $13.1 million, with the current asbestos-related liability estimated at $26.6 million[372].