TriMas Corporation (NASDAQ:TRS) Q3 2019 Earnings Conference Call Transcript

Nov 04, 2019 • 10:00 am ET

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TriMas Corporation (NASDAQ:TRS) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the TriMas Third Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Sherry Lauderback. Please go ahead.

Executive
Sherry Lauderback

Thank you. And welcome to the TriMas Corporation's third quarter 2019 earnings call. Participating on the call today are, Tom Amato, TriMas' President and CEO; and Bob Zalupski, our Chief Financial Officer. After our prepared remarks on our third quarter results and outlook, we will 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, www.trimascorp.com under the Investors section. In addition, a replay of this call will be available later today by calling 888-203-1112, with the replay code of 6138233.

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 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. I would also like to refer you to the appendix in our press release issued this morning or included as part of this presentation, which is available on our website, for the reconciliations between GAAP and non-GAAP financial measures used during this call. Today, the discussion on the call regarding our financial results will be on an adjusted basis, excluding the impact of special items.

At this point, I would like to turn the call over to, Tom Amato, TriMas' President and CEO. Tom?

Executive
Thomas Amato

Good morning. And thank you for joining our third quarter earnings call. During this quarter, we have taken some meaningful strategic steps to better position TriMas for long-term value creation. Despite experiencing some end market choppiness impacting certain of our product lines, we are strategically staying the course to increase TriMas' concentration in the packaging and aerospace segments.

If we turn to slide 3, this morning, we announced that we have entered into an agreement to sell our Lamons business for $135 million. I'll cover more on this important transaction, and what it means to TriMas shortly. We also announced that we increased our share repurchase authorization to $150 million. Since May of 2018, we have retired about 2.6% of our shares outstanding. And with this increased authorization level and our strong balance sheet, we are able to continue our momentum in returning capital to our shareholders through reducing shares outstanding.

Additionally, we have a robust pipeline of bolt-on in packaging and aerospace acquisitions, certain of which we would anticipate adding to our businesses in 2020, subject to our normal due diligence