TriMas (TRS) - 2023 Q4 - Annual Results

Financial Performance - TriMas reported fourth quarter 2023 net sales of $209.6 million, a 3.1% increase from $203.3 million in Q4 2022[3]. - For full year 2023, TriMas achieved net sales of $893.6 million, up 1.1% from $883.8 million in 2022[4]. - The TriMas Packaging group saw a 7.5% increase in net sales for Q4 2023, reaching $113.6 million, driven by organic growth in life sciences and beauty markets[8]. - The TriMas Aerospace group reported a 26.1% increase in Q4 2023 net sales to $64.0 million, attributed to higher aerospace production demand[8]. - TriMas Specialty Products group experienced a 31.8% decline in Q4 2023 net sales to $32.0 million, as industrial customers postponed capital expenditures[9]. - Net sales for Q4 2023 were $209.56 million, a 1.2% increase from $203.31 million in Q4 2022[22]. - Gross profit for Q4 2023 was $43.17 million, down 5.3% from $45.58 million in Q4 2022[22]. - Operating profit for the twelve months ended December 31, 2023, was $65.44 million, a decrease of 33.9% compared to $99.06 million in 2022[22]. - Net income for the twelve months ended December 31, 2023, was $40.36 million, down 39.0% from $66.17 million in 2022[22]. - Adjusted operating profit for the full year 2023 was $89.45 million, compared to $116.23 million in 2022, reflecting a decrease of 23.1%[27]. - Reported net income for Q4 2023 was $7,940,000, a decrease of 58.3% from $18,840,000 in Q4 2022[28]. - Adjusted net income for Q4 2023 was $12,280,000, down 46.3% from $22,920,000 in Q4 2022[30]. - Diluted earnings per share (EPS) for Q4 2023 was $0.19, compared to $0.45 in Q4 2022, reflecting a decline of 57.8%[28]. - For the twelve months ended December 31, 2023, net income was $40,360,000, down 39.0% from $66,170,000 in 2022[30]. Cash Flow and Investments - Free cash flow for the year was $88.16 million, an increase from $72.57 million in the previous year[24]. - Free cash flow for Q4 2023 was $14,710,000, representing 143% of net income, compared to 63% in Q4 2022[30]. - The company reported a total of $88,160,000 in net cash provided by operating activities for the year ended December 31, 2023[30]. - The company utilized $77.3 million for acquisitions in 2023 and repurchased 680,594 shares for $18.8 million, reducing net shares outstanding by approximately 1.3%[6]. Future Outlook - TriMas expects consolidated sales to increase by 5% to 8% in 2024, with adjusted diluted earnings per share projected between $1.95 and $2.15[10]. - The company expects diluted EPS guidance for 2024 to be between $1.44 and $1.64, with adjusted diluted EPS projected between $1.95 and $2.15[32]. Balance Sheet - TriMas ended 2023 with $34.9 million in cash and a net leverage ratio of 2.4x, maintaining a strong balance sheet[7]. - Total assets increased to $1.34 billion in 2023 from $1.31 billion in 2022[20]. - Total liabilities remained relatively stable at $658.71 million in 2023 compared to $653.17 million in 2022[20]. - Cash and cash equivalents decreased to $34.89 million at the end of 2023 from $112.09 million at the end of 2022[24]. - Long-term debt as of December 31, 2023, was $395,660,000, slightly up from $394,730,000 in 2022[30]. - Net debt increased to $360,770,000 in 2023 from $282,640,000 in 2022, indicating a rise in leverage[30]. Special Items - Special items impacting net income included $4,640,000 in business restructuring costs for Q4 2023[28]. - The company reported a net gain on dispositions of assets of $180, compared to a gain of $21.95 million in the previous year[22]. Strategic Plans - The company plans to continue investing in organic growth, pursue bolt-on acquisitions, and return capital to shareholders through dividends and share repurchases[2].