TriMas Corporation (NASDAQ:TRS) Q3 2022 Earnings Conference Call October 27, 2022 10:00 AM ET

Company Participants

Sherry Lauderback - Investor Relations

Thomas Amato - President and Chief Executive Officer

Scott Mell - Chief Financial Officer

Conference Call Participants

Katie Fleischer - KeyBanc Capital Markets

Operator

Good day and welcome to the TriMas Third Quarter 2022 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Sherry Lauderback. Please go ahead.

Sherry Lauderback

Thank you and welcome to TriMas Corporation’s third quarter 2022 earnings call. Participating on the call today are Thomas Amato, TriMas’ President and CEO; and Scott Mell, our Chief Financial Officer. We will provide our prepared remarks on our third quarter results and outlook and then we will open up the call for your questions.

In order to assist with the results in review, we have included today’s press release and PowerPoint presentation on our company website at trimascorp.com under the Investors section. In addition, a replay of this call will be available later today by calling 888-203-1112 with a replay code of 390-6527.

Before we get started, I would like to remind everyone that our comments today 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 later 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 or our presentation for the reconciliations between GAAP and non-GAAP financial measures used during this call. Today, the discussion in the call regarding our financial results will be on an adjusted basis, excluding the impact of special items.

With that, I will turn the call over to Tom Amato, TriMas’ President and CEO. Tom?

Thomas Amato

Thank you, Sherry. Good morning, and welcome to our third quarter earnings call. On our prior earnings call, we spoke about some of the challenges we were facing in certain of our submarkets as well as our expectation that we would see improvements begin to take hold as we move through the third quarter and into the fourth quarter, particularly within TriMas Packaging. Since that period, increasing inflationary and energy costs quickly spread to weakening consumer confidence. This turned into an abrupt impact in demand in some of our key consumer goods and end markets as several of our top packaging customers decided to bring their inventories into better balance for an uncertain period. This had compounding effect as it began to emerge at the beginning of our normal holiday season pipeline fill period, which starts in late August and ramps up through November. While we believe the demand impact we’re experiencing within TriMas packaging in the second half of 2022 is largely related to our customers deferring demand due to overstock inventories, TriMas is well positioned to navigate through this or any uncertain period. Moreover, we have several submarkets that are showing signs of strengthening, which we believe will translate to longer-term growth.