BLOOMFIELD HILLS, Mich., May 6 /PRNewswire-FirstCall/ -- TriMas Corporation (NYSE: TRS) today announced financial results for the quarter ended March 31, 2009. The Company reported quarterly net sales from continuing operations of $202.7 million, a decrease of 23.4% from the first quarter of 2008. First quarter 2009 income from continuing operations was $4.1 million, a 46.6% decline from the prior year first quarter. The Company reported first quarter 2009 diluted earnings per share from continuing operations of $0.12, in comparison to $0.23 during the first quarter of 2008, including a ($0.13) per diluted share impact of severance and business restructuring costs, identified as "Special Items,"(1) and a $0.28 per diluted share gain on extinguishment of debt. The Company reduced total indebtedness, including amounts outstanding under its receivables securitization facility, by $87.6 million compared to March 31, 2008. In addition, Free Cash Flow(2) improved significantly during the first quarter of 2009 at $31.7 million, compared to a use of cash of $9.1 million in the first quarter of 2008.

"It comes as no surprise that this was a challenging quarter from an operating standpoint for the majority of our businesses," said David Wathen, TriMas President and Chief Executive Officer. "Sales were slightly lower than we expected, most notably in our Energy Products segment due to recent reductions in drilling activity and lower production levels. Despite our sales decline of approximately 23% in the first quarter, we still expect our overall sales decline to be 15% to 20% in 2009, as compared to the prior year. That said, our cost reduction and leverage-related actions are already having a positive effect on our results and that should continue throughout the year. Compared to the fourth quarter of 2008, we held our gross profit percentage despite 5% lower sales levels, increased Adjusted EBITDA by $4 million, lowered inventory by $16 million and reduced the Company's total indebtedness by $45 million during the first quarter. Our recent actions will reduce our annual interest expense by approximately $6 million."

"We continue to reduce fixed and variable costs, and we are driving productivity and flexibility across our businesses," Wathen said. "We have taken immediate actions to reduce operating expenses, working capital and capital expenditures. We are very focused on cash flow and available liquidity during these uncertain times, and are relatively pleased to exceed our forecast on both during the quarter. We maintain our commitment to delever TriMas and ensure adequate liquidity for our future endeavors."

"As we navigate through these uncertain times, our priorities remain to enhance profitability by being the best cost producer in each industry we serve, to improve the quality of our balance sheet by reducing debt and working capital levels and to deploy capital prudently, focusing on our more profitable end markets and geographies. We believe these steps, in addition to our strong brands, increased end market diversity and exceptional people, will provide a solid foundation for the future and position us for accelerated revenue growth and margin expansion as our markets recover and economic growth resumes," Wathen concluded.

First Quarter Results - From Continuing Operations

-- TriMas reported first quarter net sales of $202.7 million, a decrease of

23.4% in comparison to $264.6 million in the first quarter 2008. Sales

in all five segments declined in comparison to the prior year first

quarter, primarily due to reductions in demand as a result of continued

weak global economic activity, inventory reductions in market channels

and reduced consumer discretionary spending. Net sales were also

negatively impacted by approximately $7.1 million due to currency

exchange, as reported results in U.S. dollars were impacted by weaker

foreign currencies.

-- The Company reported operating profit of $4.3 million for the first

quarter 2009, a decrease of 84.4% in comparison to operating profit of

$27.8 million in the first quarter 2008. Excluding the impact of Special

Items, first quarter 2009 operating profit would have been $11.1

million.

-- Adjusted EBITDA(2) for the first quarter 2009 decreased 18.8% to $29.9

million, as compared to $36.8 million in the first quarter 2008.

Excluding the pre-tax impact of Special Items of $6.3 million and gain

on extinguishment of debt of $15.8 million, first quarter 2009 Adjusted

EBITDA would have been $20.3 million.

-- Income from continuing operations for the first quarter 2009 decreased

46.6% to $4.1 million, or $0.12 per diluted share, compared to income

from continuing operations of $7.6 million, or $0.23 per diluted share,

in the first quarter 2008. These results include the after-tax impacts

of Special Items of $4.2 million, or ($0.13) per diluted share, and gain

on extinguishment of debt of $9.5 million, or $0.28 per diluted share.

-- Free Cash Flow(1) for the first quarter 2009 increased significantly to

$31.7 million, compared to a use of cash of $9.1 million in the first

quarter of 2008, primarily due to the improvements in net working

capital and the proceeds received from the sale of a non-core business.

-- The Company reduced total indebtedness, including amounts outstanding

under its receivables securitization facility, by $87.6 million compared

to the end of the first quarter 2008. TriMas ended the quarter with $4.5

million of cash and $142.7 million of aggregate availability under its

revolving credit and receivables securitization facilities.

1. Appendix I details certain one-time costs, expenses and other

charges, collectively described as "Special Items," that

are included in the determination of net income (loss) under GAAP and

are not added back to net income (loss) in determining Adjusted

EBITDA, but that management would consider important in evaluating

the quality of the Company's Adjusted EBITDA and operating

results under GAAP.

2. See Appendix II for reconciliation of Non-GAAP financial measure

Adjusted EBITDA and Free Cash Flow to the Company's reported

results of operations prepared in accordance with GAAP. Additionally,

see Appendix I for additional information regarding Special Items

impacting reported GAAP financial measures.

Profit and Cash Flow Improvement Initiatives

In light of the weak economic conditions and downward trends present in the fourth quarter of 2008 and the first quarter of 2009, the Company accelerated its Profit Improvement Plan to achieve $28 million in cost savings during 2009. The Company is on plan to achieve these savings in 2009 and continues to pursue additional fixed and variable cost saving actions. During the first quarter of 2009, the Company recorded cash and non-cash charges of $3.3 million and $0.5 million, respectively, related to the Profit Improvement Plan.

A key element of the Profit Improvement Plan was the announcement during the first quarter of the Company's plan to close its Mosinee, Wisconsin facility, which manufactures trailer winches, jacks and couplers. The plant closure is expected to be completed by the end of third quarter of 2009. The production from the Mosinee plant operations will be absorbed into lower-cost manufacturing facilities or included in the Company's expanded strategic sourcing initiatives.

In addition to aggressively reducing fixed costs throughout the businesses, the Company continues to focus on productivity and working capital improvement initiatives to maximize cash flow. The productivity projects include, but are not limited to, lean initiatives and manufacturing process improvements, vendor cost- downs, moves to lower-cost manufacturing environments and outsourcing initiatives. The Company has also identified opportunities to reduce the investment in working capital during 2009, and is focused on improving inventory turns in all of its businesses. The Company will also continue to adjust inventory levels consistent with end market demand and will concentrate on further improving receivable and payable ratios. As of March 31, 2009, the Company reduced inventories by $11.9 million and overall net working capital by $21.7 million in comparison to March 31, 2008 levels. The Company expects that planned reductions in working capital in future quarters will result in a significant source of cash flow for the Company over the remainder of 2009.

Financial Position

TriMas ended the quarter with cash of $4.5 million and $142.7 million of aggregate availability under its revolving credit and receivables securitization facilities. The Company reduced total indebtedness, including amounts outstanding under its receivables securitization facility, by $44.8 million during first quarter 2009, and by $87.6 million as compared to March 31, 2008. TriMas ended the quarter with debt of $575.2 million and funding under its receivables securitization facility of $10.0 million, and reported total indebtedness of $585.2 million. During the first quarter of 2009, the Company retired approximately $31.8 million face value of the Company's senior subordinated notes in open market transactions for approximately $16.0 million.

The Company does not have any significant debt maturities under its credit agreement or subordinated notes until 2012. As of March 31, 2009, the Company was in compliance with all debt covenants.