TriMas Corporation

At this time, it is my pleasure to turn the conference over to Ms. Sherry Lauterbach. Ma'am, please begin.

Thank you, and welcome to Trimus Corporation's third quarter 2021 earnings call. Participating on the call today are Thomas Amato, Trimus' president and CEO, and Scott Mell, our chief financial officer. We'll provide our prepared remarks on our results and our outlook, and then we'll open the call up for your questions. In order to assist with the review of our results, we have included the press release and PowerPoint presentation on our company website at www.trimaskorp.com under the investor section. In addition, a replay of this call will be available later today by calling 888-203-1112 with a replay code of 5060586. Before we get started, I would like to remind everyone that our comments today which are intended to supplement your understanding of TriMAS, may contain forward-looking statements that are inherently subject to a number of risks and uncertainties. Please refer to our Form 10-K and our Third Quarter 10-Q that will be filed today for a list of factors that could cause our results to differ from those anticipated in any forward-looking statements. Also, we undertake no obligation to publicly update or revise any forward-looking statements except as required by law. We would also direct your attention to our website where considerably more information may be found. In addition, we would like to refer you to the appendix in our press release issued this morning or included as part of this presentation for the reconciliations between GAAP and non-GAAP financial measures used during this conference call. Today, the discussion on the call regarding our financial results will be on an adjusted basis, excluding the impact of special items. With that, I'll turn the call over to Tom Amato, TriMass' president and CEO. Tom?

Thank you, Sherry. Good morning, and welcome to TriMass' third quarter earnings call. We're pleased to report another solid quarter of performance, continuing the positive momentum we've been building over the past several quarters. Let's turn to slide three. This is a very exciting time of year. The TriMass Global Leadership Team is busy refreshing our forward plans while also working diligently to close out 2021 on strong footing. It's interesting to reflect on the same period last year. When we set our 2021 plan, we knew there were remaining uncertainties related to the global pandemic, with many countries and various states still imposing tight restrictions. The potential for new M&A opportunities was also limited, given that targets were continuing to focus on navigating through the various market dislocations occurring at the time. So we in turn focused on the factors we could control and did the best we could to plan for 2021. As the current year unfolded, we adjusted to market changes along the way and leveraged our strong brand names, diverse end markets, and innovative product solutions all to drive strong cash conversion. As we fast forward to today, we did not come close to imagining that our largest input cost, resin, would be on average more than 50% higher than our 2021 planning level. In fact, there were periods throughout this year where we expected cost stabilization only to face further resin cost increases and even tighter supply. In addition, our second largest input cost, steel, was also up significantly against 2021 planning levels, and even freight cost increases crept into 2021, impacting a number of our businesses. Despite these challenges, our strategic repositioning and our diversified end market model have allowed us to deliver another strong quarter for TriMass' investors and continue our momentum. Additionally, on the M&A front, we are seeing a robust set of opportunities which allows us to reignite our commitment to build out our business platforms, augmenting our long-term organic growth. Finally, we are pleased to have initiated a dividend to benefit TriMas' shareholders. This rounds out our Folsom capital allocation strategy of investing in our businesses, programmatic M&A, share buybacks, and dividends, all while maintaining a strong balance sheet. With that, as noted, we are reporting a solid third quarter for TriMass. Let's turn to slide four. Consolidated sales were $220.4 million, up 11.5% as compared to the prior year quarter, driven by acquisitions, organic sales increases, and favorable currency exchange. Adjusted operating profit was $31.6 million, or 14.2% of sales, up $2 million as compared to the prior year quarter. Adjusted net income was 20.5 million, up 1.9 million as compared to the prior year quarter, primarily driven by higher consolidated sales, more than offsetting higher input costs and a higher effective tax rate. Adjusted diluted EPS was 57 cents per share, up 9.6% as compared to the prior year quarter, and which was in line with our internal expectations. Finally, Adjusted EBITDA was 46 million, or 20.7% of sales, up 4.4 million from the prior year quarter. We also continue to seek to drive increasing LTM EBITDA, a strong indicator of our cash earnings power, which was 168.5 million as compared to 164.1 million at the end of the second quarter. Let's turn to slide five. On a year-to-date basis, consolidated sales were $648.1 million, up 11.4% as compared to the prior year quarter, again, driven by acquisitions, organic sales increases, and currency. Year-to-date operating profit was $88.2 million, or 13.6% of sales, up $9.1 million as compared to the prior year period. And adjusted net income was $60.5 million, up $8.1 million as compared to last year for the same period. Through nine months, our adjusted diluted EPS was $1.68 per share, up 15.9% as compared to $1.45 per share during the same period last year. And finally, adjusted EBITDA was $131.9 million, or 20.3% of sales, up $11.8 million as compared to the same period last year. So overall, for the quarter and on a year-to-date basis, We are extremely pleased with our performance level and positioning for the future, particularly given some of the challenges we have been navigating through the year. I will now turn the call over to Scott, who will take us through our balance sheet and trimester segment results. Scott?