00:06 Good day everyone and welcome to this TriMas First Quarter 2022 Earnings Call. Today's conference is being recorded. 00:15 At this time, I'd like to turn the conference over to Ms. Sherry Lauderback. Please go ahead ma'am.

00:21 Thank you, and welcome to TriMas Corporation's first 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 results and 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 under the Investors section. 00:49 In addition, a replay of this call will be available later today by calling (888) 203-1112 with a replay code of 221-9626. 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 first 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. 01:28 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. 02:02 With that, I'll turn the call over to Tom Amato, TriMas' President and CEO. Tom?

02:08 Thank you, Sherry. Good morning, and welcome to our first quarter earnings call. Let's turn to Slide three. Overall, we are pleased to report positive results again this quarter. Between the period of time when we completed our planning models, which was near the end of last year and when we reported our 2021 performance just nine weeks ago, we started to recognize an increasingly difficult macroeconomic environment developing from inflationary pressures and effects from the regional issues in Eastern Europe and China. 02:43 Despite continued operational challenges as a result of the pandemic-related labor constraints and more recent challenges in production input cost of supply constraints, we are reporting today earnings per share of $0.50, which is in line with our plan. Our continued solid performance is a direct result of the dedication and commitment of our global team, who is focused on meeting the needs of our customers in a diverse set of end markets all while navigating very dynamic and often deferring regional environments. 03:19 Before going through more details on our results for the quarter, I would like to like to update our investors and one of our more significant capital investments, which we initiated in 2020. As discussed on prior earnings calls, this is our new TriMas Packaging Manufacturing plant in New Albany, Ohio. As a reminder in collaboration with one of our largest customers, we began investing in a new 235,000 square foot, highly automated facility, localizing forming dispenser production in the United States, upgrading our manufacturing processes and allowing for additional production floor space for future growth in the U.S. 04:02 I'm pleased to report that we are on track to launch this facility during the second half of this year. Also we did not contemplate at the time of approving this…

09:38 Thanks, Tom. Please turn to Slide six and I will review our first quarter results starting with TriMas' Packaging. I will start by highlighting that our packaging segment results for the first quarter included another record-setting sales performance with the highest sales ever for our first quarter. Net sales of $138.5 million, increased approximately $6.4 million or 4.8% as compared to the year-ago period. Our Omega acquisition completed in December of 2021 and our Intertech acquisition completed in February of this year, contributed approximately $7.6 million of incremental sales during the quarter, while the impact of unfavorable foreign currency translation reduced sales by $2.4 million during the quarter. 10:32 Organic sales increased slightly by approximately 1%, as compared to the year-ago period as we were generally able to recover current resin cost during the quarter on account of strategic commercial pricing actions and our contractual cost recovery mechanisms. I will note that this organic growth rate is in line with our expectations, as we are comparing current results to the first quarter of 2021, which we're still benefiting from the positive effects of the pandemic-related demand surge, primarily for dispensing products, which help fight the spread of germs, which began in the second quarter of 2020. 11:15 During the first quarter of 2022 and consistent with our results over the second half of 2021, we continue to experience double-digit year-over-year organic growth percentage increases for our products used in food and beverage and industrial and agricultural applications, as these sectors continue to deliver stable macroeconomic growth. Specifically, sales for closures used in food and beverage applications, dispensing pumps used primarily in quick-service restaurants and flexible packaging used primarily in bag and box solutions experienced double-digit percentage growth during the quarter. 11:58 While we are pleased with the sales performance…

19:11 Thank you, Scott. Let's turn to Slide nine, as presented on our earnings call in March 1st -- our 2022 outlook did not include any specific impacts from the situation in Eastern Europe and derivative energy inflationary effects. With that said, while we are seeing a customer demand environment evolve differently than we planned for some of our product lines. Overall, given TriMas' diversified end market model, we are today reaffirming our outlook for the year. 19:44 Our forward planning does anticipate input cost and supply availability to stabilize, particularly as we enter the second half of 2022, where we do expect to gain more traction given the dynamic environment we continue to work through this quarter. From a timing standpoint, we are expected -- we are expecting second quarter to be higher in sales, profit and EPS in the first quarter with sequential improvement in the third quarter, as compared to the second quarter. We are also assuming no further geopolitical disruptions. 20:22 Let's turn to Slide 10. I will close out our prepared remarks by providing just a few examples of why we remain excited about the long-term prospects for TriMas'. Through our methodical repositioning of TriMas' nearly two-thirds of our revenues are now generated from TriMas' Packaging Group. As discussed in prior calls, we believe there are attractive long-term characteristics in this segment through our many end markets and we believe we have a robust pipeline of innovative product solutions. We also expect to continue to make progress on accelerating growth in packaging through acquisitions. We also have excellent annual free cash flow and financial capacity to continue to augment our organic growth with strategic acquisitions. 21:11 Next, we expect to further -- we expect a have further long-term performance gains in our TriMas Aerospace Group and in fact we are seeing developed today in our specialty products Group as air travel and commercial jet production recovers. And while we continue to reinvest in our businesses for long-term growth, we also anticipate continuing to return capital to our shareholders, both through share buybacks and dividends. In addition to our financial progress, our leadership team remains committed to operating TriMas' in a responsible way to positively contribute to society, particularly in the communities where we live and work. Again we continue to believe TriMas' is an exciting company to invest in. 21:54 And with that, I'll turn the call back to Sherry. Sherry?

21:57 Thanks, Tom. At this point, we'd like to open the call up to your questions.

22:02 Thank you, ma'am. [Operator Instructions] We'll take a question from Ken Newman with KeyBanc Capital Markets.

22:41 Hi guys, this is [Jacob] (ph) on for Ken. Just a couple of questions here, you provide a little color on the impact of resin cost had on the packaging segment and where you expect to be on price cost for that business by the end of the year?

22:54 Yes. Hi, Jacob. Yes, well we certainly did not expect that in Q1 resin costs would go up, yet again after the rate that they had escalated to towards the end of ’21. And we were recovering nicely through that point. And here we are yet again with some cost going up, which is a direct driver of crude pricing. We've had a very good track record does take a little time both contractually and commercially to getting an appropriate level of recovery and resin price increases. So while there could be an additional lag factor depending on what happens with resin pricing here this quarter and into the second half. Our expectation is, by the end of the year will be fully recovered.

23:50 Got you. Makes sense, and then just a follow-up to that, could you remind us how much that the packaging segment is leveraging European supply chains, and then what's the confidence level around the bottom end of that segment guidance?

24:04 So from a supply chain point of view, I don't have that -- the answer handy, I would say it's probably under 30% of our raw material buying. The biggest impact that we've been seeing in Europe have been almost entirely on the energy price side -- energy cost side as opposed to material, which has been in line with sort of global supply pricing.

24:37 Got you. Yes, that makes sense. And then there's a couple more from me if you don't mind. Certainly, it seems like the market is becoming a bit more concerned about potential recessionary pressures here. Could you talk a little bit about pressure or excuse me, customer sentiment across your businesses, whether you've seen any material changes in customer behavior?

24:57 Right, it’s a great question and I mentioned in my comments that it is a dynamic of an environment is certainly I could say I've seen for some time. Depending on the end market we're seeing very different behaviors. There are some customers, I would say, less so in aerospace and in the industrial side of business. We're certainly on the industrial side with respect to our specialty products, we're seeing in order book that continues to remain high. On the packaging side there are certain customers that are making conscious decisions to balance their inventories pretty tightly, some customers have opted to halt some production given very high energy costs and predominantly in Europe. So we are seeing a little bit of that dynamic play out as some of those customers sort of just take a bit of a wait and see approach to what happens with the market. 26:07 Remember, though most of the products that we supply into the packaging space are consumed our consumables. So there is going to be a natural demand level it -- my response really relates to how long they want to go in their inventory and their future planning.

26:32 Okay, understood. And then sort of along the same lines, can you comment on the M&A pipeline and whether any activity there is load, given some of that uncertainty?

26:42 Yes, I would say, it certainly hasn't slowed, we saw the pace pick-up going into last year and what's happened from a TriMas' point of view is, given the cadence of deals that we have completed, we're starting to see more unsolicited inbounds from mid-market bankers that maybe we wouldn't have seen otherwise. So our activity level remains high, perhaps on some bigger deals, the market could slow, but I think if you look at our strategy, we're pretty comfortable with protecting our balance sheet and doing manageable bolt-on type deals. So on that front, we're continuing to see a fair amount of inbound opportunities and we remain pretty busy.

27:33 Okay, got you. That's good to hear. And then just last one for me is you -- can you comment on any insight into demand visibility for your aero segment?

27:44 Can you -- I'm sorry can you repeat the question?

27:48 Yes, I'm just looking for if you have any insight into demand visibility for your aero segment?

27:54 Yes. Yes, look, I mean, not much change from last quarter, but as I said at that -- during that call, we're starting to see the fundamentals line up in the right direction in terms of more, more and more increased travel, which ultimately will drive production. So I would say, as compared to last quarter not much change, but I would also say that what we saw last quarter, if that trend continues, I think will be a positive for us as we look into 2023 and 2024.

28:35 Got you. Appreciate the time guys.

28:39 Thank you very much. Appreciate it.

28:43 All right. [Operator Instructions] Okay, it looks like we have no further questions at this time. So I'd like to turn it back over to our speakers for any additional or closing remarks.

29:04 Okay. Thanks everyone, I know it's a busy earnings day. We appreciate your time, again we'd like to thank you for joining us on our earnings call and we look forward to updating you next quarter.

29:18 That does conclude today's conference. We thank everyone again for their participation.