TRS - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the TriMas First Quarter 2021 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.

Sherry Lauderback

to First welcome Call. XXXX and you, TriMas Quarter Corporation's Earnings Thank on Tom Zalupski, and Officer. are call our TriMas' Financial Participating today CEO; Amato, the President and Chief Bob

announced Scott May effective who us as X. with have succeed Bob also as We we yesterday, will CFO Mell,

then release your of provide and press questions. included PowerPoint to with prepared review In results, our www.TriMascorp.com, our our the we company the open will section. under on our order will We and presentation on the call our have results and remarks outlook, we up for website, assist Investors

In call replay today code later replay addition, a by XXXXXXX. a of will be of with this calling XXX-XXX-XXXX available

to like remind of TriMas, I XX-Q we of to that will our that supplement may our started, contain Before filed XX-K forward-looking intended uncertainties. quarter inherently and everyone our number your to a get Form subject to and today statements understanding comments would refer that Please a Also, are risks are also today, required be which to cause more those statements, forward-looking website revise as of forward-looking any results We obligation law. may in information anticipated to attention found. differ statements. from any for that undertake publicly be our update factors except to direct or considerably no your by would we could our list first where

that, turn and refer TriMas' to GAAP basis, included in measures an appendix Tom between to the special would results during financial on the our issued will to call. the of we call our of President on I'll regarding over With impact part conference the as discussion financial Tom? or used Today, the you items. this excluding this non-GAAP CEO. release adjusted our addition, morning call Amato, like presentation be In and this reconciliations press for

Thomas Amato

the year. our On today. earnings reporting we start the Despite are our and quarter given changes, we team, in accurately strong welcome pleased Good very with quarter morning, first challenges TriMas' performance first behalf forecasting, are and call. of pandemic to demand to leadership global related continued earnings

to Let's turn Slide X.

a in are largely As quarter pandemic XXXX, for comparing XXXX. pre-pandemic quarter of results a essentially quarter to a first reminder, from we the

on Packaging integrating momentum sales level. which XX% continue for was While we quarter quarter to million, first we have recent in more a acquisitions, segment, work the to $XXX TriMas' record up

We Products businesses end have would the our previously to to are recovery. market we with and our sales high factory than range at see which stated improvements. Specialty from anticipated conversion, year we beneficiary outlook first Indeed, be the better levels attribute that a excited of floor prior

raw continues the While higher than predict, anticipated we perhaps volume. it costs this experience trend benefits the is into increased U.S. infrastructure largely in through quarter, difficult We to additional did spending dovetails which we that and hope future occur may still even in overcame from material better

So are very quarter. financial results we for again, our pleased with the

in of in late of which rate successful the announced refinancing our expiring facility, March otherwise was fixed notes. refinancing revolver XXXX, our Additionally, the we and

our upsize sheet. elected million notes interest cost senior million $XXX net Given historically putting $XX.X cash $XXX balance refinancing our to million, low of rates, on we to additional from of

position the a well-capitalized need our in have for immediate to and additional we we strategy. While cash, no solid long-range remain execute

allocation buybacks million also amortization earnings, under expense. to that repurchased we $XXX will recent transparency have be add are shares increase adjusted announcing are on acquisition-related back most outstanding to approximately our our strategy. we share To redefining repurchase share as our the of earnings today part execute share availability X.X% we authorization. We per noncash well-positioned quarter, to also capital first of In continue of overall and

a annually, the better modifying than we power expense of our investors noncash acquisition more have definition amortization view $XX of cash TriMas. Given of pre-tax currently million earnings provides that this

Now before TriMas, years over CFO, career Bob that TriMas our have partnered be as we quarter, my with Bob I feel personally has with announced and nearly retiring. greatly Bob yesterday improved the and to we I and to specific Zalupski, his for job the repositioned potential. will at over also fortunate results done performance our move company, an our incredible X

with years, We to on the be have our wider he a familiarity high TriMas will himself, has few Scott TriMas onboarding strong good Scott impact Scott? projects introduce performance TriMas asked Mell after the the also to and the over skillset also improvement. which we CFO. announced that deep of He as his a last to call team. with continue hired couple new acumen leaving financial has Scott comes worked he so with company. with I've on work

Scott Mell

TriMas been our Thank has our you, and look Tom, businesses. first Monday, week excited and of teams in morning good be all. of to and TriMas with engagement onboarding leadership with with investors to I'm it was months today a further on with at and family here to the forward and My years you day busy ahead. here the

others TriMas me, last to projects the the role, to several understanding has work worked allowed the I the work high few me with still these firehose the the going where managing a very I'm be in value business months. first a over taking with for was XX CFO through closely TriMas. of for said, director Consulting, at I This familiar Fortunately I'm the at and TriMas impact being Prior to CFO that intrinsic our With drivers Tom, Bob offices Riveron model, organization. and weeks. meaningful drinking the of develop of

so strategic of been career providing look forward the during to has challenge. times change, leadership I focused most on of my meaningful However,

his Tom results. you. back know Bob like take Bob TriMas. a to the take go, quarter it I'm I'd family well. wanted you my him wish predecessor, to and to I and Before moment and I to simply with years now few drop to Thank through to to the Bob Zalupski, hand and acknowledge I've over his gotten last almost and years, XX going first

Thomas Amato

million, TriMas you, X, Scott, future we quarter $XXX.X as up TriMas' Thank segments. and were quarter, by Specialty the I us Packaging than TriMas' over call the who I'll level. up and the sales compared to before review declines helping Slide to through more to currency. advance were our us next segment our in sales will X.X%, sales forward Group, to to organic Consolidated results. in increases Aerospace If overcoming Products XX.X% acquisitions, TriMas' and sales results Bob, prior first look your by turn take driven exclusively year Organic turning contributions driven

to top an EPS XXXX, $XX.X prior Adjusted Adjusted share, XXXX. the million, quarter, $XX.X million the $X.X as first quarter to XX.X% the profit in year to to a outlook $X.XX $X.XX the for pandemic prior quarter, essentially of net which and pre-pandemic per the of quarter. adjusted was comparing are share we as up noted, As compares operating was quarter, range million exceeded year $X.X for income diluted $X.XX was or year quarter and to of prior per up compared our compared quarter. end the $X.XX million

going excluding reporting noncash As forward, by mentioned our amortization EPS diluted earlier, expense. acquisition-related be adjusted will we I

revised XX.X% compared under XXXX, up for year this For quarter prior per share share, $X.XX first the definition. to $X.XX of enhanced quarter the we as the same per achieved definition, under

EBITDA of sales. XX.X% was million $XX.X adjusted Finally, or

would shown X. this uncommon refinancing sheet given I Slide turn temporary have but note slide over on that transaction that anomalies, quarter. some Let's our our spanned statistics balance not to the

XXXX. XXXX, For to notes from senior our were due example, funds March prior received new XX, X/X% X

yet pay not did X/X% notes off we However, end. at senior our quarter X

a against EBITDA of our million, model that by of EBITDA ultimately our X/X% an spending. $XXX EBITDA long-term positive flow million. maintaining since result simultaneously performance which of As shareholder was we was quarter deleveraging senior Adjusted million, our of debt, We a to higher momentum. EBITDA X continued higher, LTM to partially plus free highlights today, prior off compared LTM This increase of level a We the of as of course, $XXX.X million delivered as year entirely. adjusted drive which while management, notes working LTM net driving the $X.X million, paid continued capital capital creation. December have believe compared net year-over-year increase $XX.X of $X.X value will cash TriMas' offset was

goal redemption of the segment the Bob? net million well we X.Xx, our our us was we to for of liquidity below over will I call take notes, now X $XXX results. have senior our leverage turn and Xx, will have adjusted long-range X/X% of and Bob, available stated at Finally, our end. capacity. When through borrowing than quarter who cash more sufficient

Robert Zalupski

reported hard record would considering Thank the my a profit Packaging our the comments sales we quarter. of nature turn globally, to operating and work Packaging This impacts. dedication and highlight our begin Group for TriMas X, of Slide I you, Tom. testimony a accomplishment its of review with all that I to fiscal members and first like If first Packaging segment. pandemic is quarterly team to its the ongoing of unprecedented will

an up $XXX.X sales $XX.X currency the while year contributed compared way, our million approximately million favorable care million net $XX additional and XX%, of approximately to period. care increasing increased led million, an of as spread basis. germs, basis, quarter applications beauty on XX% increased $X.X net and $X organic translation & in the currency almost home added On organic the acquisitions sales foreign used ago personal First or fight of the help of Sales impact million million. products an that $XX.X of

of industrial driven XX.X% levels. $XX.X higher due to customers Operating some period, our continues dampening overstock we customers product on levels speak compared to demand higher margin economy. million anticipation due approximately was profit Operating inventory a a higher polymeric to organically, overall primarily sales we on in products Rieke closures, of which dispensing million as in year did certain in higher see million, the due increases recovering in of approximately products that the to but QX, industrial demand lines, increased XX.X% the in increased Rapak the may food million primarily work beverage While in to second a products ago and costs in Higher dispensing sales increased applications sales commercial XX have closures $X earnings price input to believe strong margin restocked book the while cost of order for $X sales and of acquisition. through typically estimated used later. quarter as by material impact to to the resulted freight year effect days. escalators levels XXXX experience quarter, higher pandemic, softening lag will an $X used as costs, driven applications the Sales ago caps to drag resin, in of mainly actions XX million and contractual organically input sales $X.X and Tom of by compared also

completed anticipate second now noted will last to through or we full earnings approximately pricing the actions we of million implemented the of Rapak consolidation and we call, our of material have higher anticipate escalators costs in input footprint the remain progress prior $X.X XXXX. margins increased Adjusted million result year we $XX.X the as Although as will EBITDA commercial of elevated remainder will through costs. expect in the improve quarter, manufacturing I recovery And quarter operating and versus million. XX% $XX

different As we include developments polymer Xe quarter, XXX% business I from many innovation carbon Pump. Packaging which components, pump, which commercial-ready Rieke Xe Mono a all a important reduced to enter to This The TriMas features couple the first-to-market materials. an highlight one X patented single in second innovation has from is contributes perspective, recyclable, pumps, a introduced footprint. made unlike polymer, group. parts the dispensing made Mono conventional TriMas' of From wanted

the of In addition, Xe risk and mitigating is during transit Amazon the Mono e-commerce leaking approved. ready, is

North of that have currently retail interest our what would is dispenser entered multiyear I Rieke America contract into commits product is of that Our of working Xe is also to existing to Packaging dispensing new to a in products experiencing largest and monopolymer significant technology extend of to several note like the Mono certain Pump production purchases versus imported. we us business with its into one commercial actively the customers lines. relocate

will this items two, year, our customers of pandemic-related the TriMas exciting inventory activity we Packaging XXXX consider project sales out quarter onetime and unusually of which last received; of of quarters second the few Each demand our incremental purchases Nearer to onshoring term, end the call, spread high organic comparable the of potentially we levels. one, overall of sales of partially through spending in for longer-term our as that, some and next normalized developments be the XXXX lesser a above adjusting anticipate specific require expectation years. noted levels, these the group. the of future capital planning compared capital result their an $XX are as over on million As will spending

demand continued build and on for group. to Turning components or RSA in to sales acquired X, rates a which the you the of due million related of end update offset the XXXX, declined in contributed $XX.X to XXXX, year I to February TriMas portion X.X% approximately ago global XX.X% the Aerospace of declined or and Slide period Products, low million Sales million travel result machine aircraft of quarter helped Engineered at February decline. products $X.X will sales softness the of $X.X million. our now $X.X a January Net and pandemic. core as organic sales compared fastener

EBITDA and reductions in volume a period, the basis Operating actions sales any intangibles. first decline amortization was volume in to the related acquisition as response prior million of compared or $X million XX.X%, actions to quarter as an Adjusted in our was on implemented organic. which or represents of full year $X.X lower or prior of XX.X% substantially expense XX.X% after as the higher ownership, XX to consider million year-over-year Cost the we reminder, compared of realignment in result prior changes spending for of XXXX absorption offset impact year. savings the acquisition costs realignment a a sales $X.X improvement from the the and decline. other sales resulting fixed As profit year to the sales primarily point to helped

were quarter versus in and distributors sales year for the the than fasteners sales meaningful XXXX higher began we sales of quarter and by full that specialized remainder first in and year period, will now the from lower for Although of nearly that the lapped orders year. we continue the the anticipate of ago be onset year have anticipate XXXX, second both secondly, few a of driven full which acquisition we QX stocking a will pandemic,

to its new steps support in levels, continuing with and team for invest related Aerospace future manufacturing structure continues while and to business footprint opportunities. current priority TriMas evaluate to positioning innovative global leadership its align of itself demand Our practical to our further customers cost and balancing products

of XX.X% in the year million $XX end the and market, the our quarter effects Moving in and and oil Specialty in Products global the by to construction each Sales ago. packaged Net steel Slide compared for million now will American declined the applications, gas to to markets, impacted as well segment. a same compressors cylinders pandemic. North of X, $X.X review I gas first sales of to be sales period engines or as approximately upstream used continued used

XX.X% cost margin XX.X% as action realignment XX.X% the quarter to However, $X.X period. of of ago the or operating in in million year. sales of a in better year compared improvement sales basis sales, of prior result significantly quarter prior or quarter, a XX% Adjusted improvement Operating or million on profit was $X.X implemented than $X.X and factory was $X.X as primarily also current million of of EBITDA a year-over-year improved point the million floor in the significantly year's and the basis. XXX

improved increased closely the industrial monitor a the financial by of businesses operating to for recovery, are an we of economic well-positioned impacted as believe XXXX the continue effects as end these realignment pandemic demand We result in market actions. with performance leverage

the still know months, sustain levels will it too year. remainder order over of this noticeably if the soon recent stronger several the While are to past to relative intake is trend

market monitor connection QX outlook our We in continue and provide to and backlog an with reporting. order updated activity will

Tom, back like briefly company. from Before call turning I on my the planned would retirement comment to to the

successfully was While easier of the and knowing for have next decision weathered it that process that certainly pandemic is TriMas the made growth. was difficult, well-positioned our COVID-XX businesses its phase

to business To now to the as of working your honor but remarks. career contributed success back to I'll finance privilege individuals Directors like throughout our call our leadership tenure of company of his I all the well-prepared with only Board who throughout me success Over Tom? leadership outlook company Tom QX and the endeavors. the strategy, to thank and would the execute distinct TriMas for would on support teams the had to the I TriMas Tom, you, concluding and also CFO. like you, the And I've provide future and my is my the and XX The team of continued to and outstanding, way. its talented assisted also all its turn many wish past say in along not I in years, company, thank who

Thomas Amato

Bob. changes, our XX, a commitment provide uncertainty operate year. over And year. of on beginning this reaffirming your employees TriMas on broader to this the pandemic again, you with at Board dedication views XX-year the career you, we along all we period that and as Slide at your And are still nearly Thank over time, outlook only in given great deal at of of to and provided quarter Directors, with our the continue full behalf going the of demand TriMas, unprecedented again for this to year forward and turning and thank particularly past

the first were better which of year there second quarter hope the market overall the pandemic, some onset second will still Also, guidance dynamics. better the in when have the at While will be we prior of reassess quarter we quarter. to full we on to perspective time, information announce comparison returning than results, from second anomalies to quarter aligned quarter XXXX to our year related a XXXX

XX% to anticipated expect same in For the driven QX, growth as last quarter year, X% by compared consolidated all be segments. we sales to higher to

in dispenser combined growth from Products organic of QX. Packaging segment, acquisitions COVID-XX and our TriMas related closure when growth the overcome expect and We sales anticipated decline in with Aerospace, to Specialty in any the

our the We be discussed $X.XX began prior which rate these sales year Group the periods from XXXX, to was XXXX. decrease anticipate As from excluded share $X.XX call, related noncash of compared $X.XX quarter. share per acquisition-related per from in this COVID-XX share anticipated in of high earnings Both per per we range prior to have will TriMas' sales earnings Packaging of in in quarter given the expense second these in adjusted the $X.XX amortization numbers. share as very

Slide Let's turn XX. to

thesis We in excited for remain TriMas continue about to today. investing the

of allows products are concentrated markets participate that germs, packaging for our in applications business. in our and diverse in end product which improve positive lines set to investors Our cleanliness are a change spread secular in of demand the fight used that help

years. coming market In XX, to begins addition, is market strategy, participate to investors aerospace as will and early in its are be the recover, Aerospace slide. in disciplined believe first recovery further from markets benefit recovery growth, to this long we start beneficiary which turn to to investors If on which an road Products, our Slide our a as over then should able allocation the we TriMas shown Specialty capital

buybacks. to we'll and deploy capital actions in stated growth track near-term previously, We'll our foundation return will ensure treasury remains as upon to value excellence. TriMas our through of strategic to in to through We'll TriMas shareholders organic as a longer-term have and generation, ensure built business programmatic our net shareholders. measure our also And augment of we against and adjust such our our our model As plans and organically grow a utilize that and first, change. debt proactively check our Kaizen culture to improve performance reinvest markets we share M&A businesses operate cash to businesses operational also protect

exciting We the And back I'll continue invest is turn to to Sherry? with Sherry. in. company believe to call an TriMas that,

Sherry Lauderback

Tom. the point, we would to Thanks, like this call open to up At questions. your

Operator

our first question And with Brendan Popson come Instructions]. from [Operator will Securities. CJS

Brendan Popson

to First wish him of thank well in just want and all, I Bob retirement.

Robert Zalupski

Brendan. Thanks,

Brendan Popson

and reduction consider about wanted it last few exceeding understandably quarter. have -- potential next for your expectations. hearing ask in the much guidance exceeded I to isn't. or guess your point, the And we your where point a Packaging, have outlook the -- we'll just you what want channel you you're demand nearing then at an demand. some at much kind think But is just outlook, to how looking could how obviously, versus keeps upside quarters of from see are how And inflection I also ask Obviously in this I Packaging. and guys you have of beating sustained to consumers there be considering and behave,

Thomas Amato

much bit you a for It little question. Brendan, thank challenging. very the is

obviously close seeing our during have period, of we As year. of last this We're we're most specific customers sort to staying customer-dependent clearly or very challenges. as

glad the quarterly in particularly That's basis intake in necessarily the example, some lumpiness have and on and to over out. And bit forecasting, customers, So for by ordering subtly quarters. it's remains their we're into related sort various then you QX, some our going few for us we seeing demand of some we now, and on longer only could those past differences little and challenges inventory difficult the effects about just negative. a We rely I'm we've pretty not we seen that be where forecast customers a seeing a on some from When other -- robust, right presenting to pointed we're patterns, given planning of of talk specific customers. have order also market. end

rescind the of and in predicting exact continue Obviously, little rest So balance, would some will us this number to of to a look say On cadence it. QX know it's the with the XXXX go more trends more a in quarter, and helps some products, use really believe better a secular to for pool, hard it's that total us end with for of see we we on emerge taking as an beyond. we start robust into end difficult specifically. for our us we And levels of at challenge felt the positive of the the bit all here hopefully change being the at that to only year. markets, then orders customer of we'll put very the our from that

Brendan Popson

talking And those the expectations? your in particular, a Great. I both Specialty cost And much I headwinds. margin of ask to of guess and exceeds resin in want about Okay. really obviously about offset also guess segments I how helped Aerospace, I think there that Specialty the think would year-to-year. upside or we for more XXXX than how I about sales range expect QX. there, say rest flat potentially of thoughts in a for your larger Specialty large Is still the saw or should relatively order the year? I

Thomas Amato

just me so of for Cylinder were was to haven't and it intake towards the let we excited our yet year what want largest quarter. Specialty the why is on is I business, we get short surprised anticipated Aerospace out of driver It's full say happens And this late So the ships views could But it, an we largely Products next see balance. the Norris performance. note I or that order really quarter Products the the would that our today week, shipments touch end with cycle, sort business. and adjusted next reason upon Aerospace. what we we on week. the Specialty about would order outlook yes, positively of and pretty

more and overall. But so. the happened into I drive from more certainly for fact as could would a one us We paste forecasting planning of quarter us really shouldn't read that why that's earlier, positive than Products, and mean out, be through impacts some QX be perspective to a I the rest that a year. of So it it's difficult great maybe the Specialty in we're even out be what from I it wanted potentially which that's there as did reasons the case the copy and negative. point to for not

Brendan Popson

in change. Okay. XX% Specialty? Specialty go, and mean I to or got where mean those all can for it you've for Aero, can segments? the a on I guess either where incrementals at And almost believe to and that the was talk like EBITDA, I you can get of I margin XX

Thomas Amato

Products low obviously Well, driver sales is look, incremental pretty in with which business. we for and of we a sales, this the conversion. Norris, the pretty orders if be dollar this is fixed business, that off some we related We're get additional base positive. each cylinder to as that's in again Specialty costs And to have main good the stay we should largely, result get profitable should contributing incrementals pretty coming for

So I exactly we TriMas no before. margin that for less like our there. say going Specialty we XX%. to But segment I said to And be what be like expectation XX%. see don't want like EBITDA I'd businesses to to on all more our over basis, to. the I'd I'd the of TriMas, than normalized overall that be a my level, Products getting demand is with should

Robert Zalupski

different quarters, the mean each Yes, I over demand. last operating if it's over of you improved look levels in profitability quarter the trend X

the be it so continue. would likely more leverage with very And that volume, would

Operator

[Operator Instructions].

go Steve KeyBanc we'll with on, Barger to Moving Markets. Capital

Ken Newman

good on It's Ken Bob, the for Steve. luck Newman retirement. on

great been with it's working you. So

Robert Zalupski

you. Thank

Ken Newman

particularly of for expectation to for year, did Aero higher guess first go the I want for maybe question, baseline margins, first for the the entire So quarter would the year the given the rest asked way, another on the back view Aero. broadly? I you as revenue just to

Robert Zalupski

No, I manufactured anticipated, mix and the what QX quarter. would of performance say was the stronger to than that margin bit due that products was that largely in a it in we was

products. at the While that of was QX. volumes those future, for have what's to look foreseeable we at up as mix the do it mix hard not the as And see we of remainder in favorable least the really will be year, being over as

Ken Newman

say the the made, the you to closer just you into you you that the Bob, levels And to half? is clarify, high-teen did think segment price those you Understood. something back quarter, second margins to recoup or on comment return Packaging that for expect second in

Robert Zalupski

the perspective, of quarter at costs. those happens a to X prices, probably in our impact we that I be our quarter, year. first about we to cost that with ability there terms input higher the pass beyond, on balance lag one-for-one the over experience a In that the material and would From of through. $X about think rising we million look we recovery expect had as is

work that out we through get of of input higher may the back So on you as and cost, they back end price with before the go tailwind where X its there drag that, to Depending some quarter on get the the be customer. way benefit will passed what beyond. happens

main, and the year the And of will course though, improves, with neutralized. drag I that a be the productivity Rapak of be the will margin. in course, So that think on situation, improve of there volumes over that less as

So back XX% XX% getting is several been consistently offering. I operating into the we've that at our do quarters, past think to where pretty the over range, margins in

Ken Newman

Understood. share me, a balance and look forward? And just capacity some could There's Or sheet. here. if mind. was to the really preference capital dry more to to lot I at curious going you we of more between larger more you is deployment curious. talk M&A don't repurchases. you've you and the optionality give powder I'm willing of imply just you're that that if Should deals? one from refinanced Obviously, this

Thomas Amato

Yes.

market interest I was out refinancing with the an historic advantage period we But first we time want go when and get revolver of advantage driver I thought take of to just to rates then because opportunistic to And we way. to we taking biggest of as all, the this that low step. took in what noted, of essentially to advantage just of both. of the it's did, had into think well, the -- yes our anyway

is have As I essentially years, strategic a place. plan over more few look our than our balance opposite we the next sheet that in forward set

our deals few balance this, into deals. that refinancing, we're could I could disrupting would to several nothing Ken, of going the do But we do there's without that do smaller because sheet larger says read or So specifically, a that. now we

Ken Newman

how to you Great. Can And the an back more deals of I that preference did you there or first this repurchase, is internal talk quarter. and opportunistic? a point the question this just are Is part bit share protect? you that little guys about between looking price strategically, guess, on to

Thomas Amato

as it past we're looking made to if take years, minimum repurchasing we've we're basis. I'd of as We'll We're being of track of currently. on to we an was at pick annualized point opportunistic. But And pace our couple or the look at shareholders allocation through But X% that to protect. necessarily quite progress. haven't opportunity. capital if a more cadence be said, strategy sort what taking if great just That specifically. we normal versus said not of like would have -- that to No. it's assess to advantage there above means a more a it I do forward price allocation strategy There's shares our disruption, would outstanding. looking going share up purely But out going an capital and Personally, obviously, internal that over consider on we capital you return forward we not. this

Operator

the [Operator of a with follow-up Barger Instructions]. Steve And we KeyBanc from Markets. have do Capital line

Ken Newman

that kind segments you've any the broader from just you either you impact with of and regard Just about tighter supply all across really outlook supply the just thinking second the quickly. to chains just or could chain quarter, quarter was seen your views? in curious talk of how are XXXX about I if

Thomas Amato

right? the and in hard, secure business more input we've Packaging then It are some are There's particularly supply seeing. like broader and our QX that scarcity working chain than normal. materials real, in components, to companies very thinking, obviously, Well, it's a range scarce And our price. also, there's views. is all been are our a in little challenges And X very

So on there's most for metals. the part availability

there, So dealing not we're any price just there. we're with but experiencing scarcity

it. on some customers. QX. of some working So effect how as lingering into my on in and Bob hope, of that a in and a terms second the get quantify some drag, But of much as has well, That half, there's been to sort alluded we're our supply for easing exactly in suppliers QX. We front, of terms had hard protect economics. to We've both to have supply in bring bit hopefully additional to overall, through we as might

Ken Newman

context impact just Norris Can and given steel-heavy about the on of the or price expected are in I you those escalators, it there Specialty, some about products, for business, on any? cost of can just that the When price Yes. think if the how particularly talk be.

Thomas Amato

escalators price tend quality run more a of get bar I contractual on into ratio. rate cost sustained to commercial say is higher SBQ, at mix surcharge level It's steel, little we that and close would a a negotiations. as special base a we and pretty get to X:X a price

Ken Newman

guess. how on more pulling -- little talk you your just just issue bit you're chain obviously, whole theme, Can about supply a a suppliers. from then And or much little bit Okay. sticking this I lastly, just

Are any think seeing all is, lead as product to, trying protect maybe to to just to try hear a get be of from well it as guess, inquiries to I'd potential basis. you try across the levels And times. order to further delivery relates go-forward I tightness? everyone businesses protect ahead pull curious customers I and about to inventory

Thomas Amato

of softer right? type that phrased customers' And and think levels uncertainty in us into holiday of heavy Brendan good a given the see Again, we of specificity, planning, what sort of sort have I'll our to pretty is year-end CJS a from a very numbers been a well. they're that a heavy. sort do season like it's pandemic, little for we're that given asked Ken, It's ripple sort looks would to I and to lumpy bit you effect, season, question, has little higher I That's the how selling it. uncertainty the the and of us, And and planning. starting question, end, order that see going as aren't similar more retail so been COVID something very of temporary, level. as the what of there with customer-specific, normal get of of levels on ordering customers of bit of somewhat their a ordered their panic a patterns planning these call revised inventory our some come into now going answer

our communication maintaining giving base, they're very good customer we're with and fortunately, So us good forewarning.

get So that take. something that situations into for where mean a we're gets they little trying us. for bit we produce don't to challenging them not I

production getting in And what levels future levels. normal with call the I'll just our and really most we're uncertain planning that's planning on for part, this forewarnings of customers, So part period. but good,

Operator

this And our I'd time. presenters there to comments. turn are back no at like additional to it for closing further any or questions

Thomas Amato

again, Thank Please, joining you, you. updating to again look And quarter. safe healthy. you forward everyone, everyone, for us stay on call. our earnings Thank and next we

Operator

like does conference. We'd their And conclude you. participation. for Thank thank that everyone to today's

now You may disconnect.

TriMas (TRS) 2 May 212021 Q1 Earnings call transcript