Slide 1: Fourth Quarter 2008 Earnings Presentation
Fourth Quarter 2008 Earnings Presentation March 10, 2009
Slide 2: Safe Harbor Statement
1 Safe Harbor Statement Any “forward-looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but not
Slide 3: Agenda
2 Agenda Opening Remarks Fourth Quarter 2008 Highlights Full Year 2008 Highlights Segment Highlights Summary and Outlook Questions and Answers Appendix
Slide 4: Opening Remarks
3 Opening Remarks Activities during the first 2 months Visited all U.S.-based businesses Implemented new planning process and incentive compensation system Conducted first operating review with business units Aggressively reacted to recessionary market trends Initial observations Good businesses wit
Slide 5: Q4 Summary
5 Q4 Summary ($ in millions, except per share amounts) (from continuing operations) Q4 2008 Q4 2007 % Chg Revenue $213.1 $ 222.1 -4.0% Adjusted EBITDA(1) $25.7 $ 11.3 128.5% Excl. Special Items, (1) Adjusted EBITDA would have been: 27.7 $ 20.7 $ 33.7% Income (loss) (154.0) $ (168.8) $ Excl. Special
Slide 6: Q4 Business Segment Overview
6 Q4 Business Segment Overview Highlights Lamons expanded gasket/bolt contracts with key customers globally for 5 years Signed agreement to sell non-core asset, Compac – closed on 2/9/09 Monogram secured additional business for new products and applications Cequent Consumer Products won significant
Slide 7: Full Year 2008 Highlights
CORPORATION So TRIMAS Full Year 2008 Highlights
Slide 8: 2008 Full Year Summary
8 2008 Full Year Summary (from continuing operations) FY 2008 FY 2007 % Chg Revenue 1,021.3 $ 1,003.1 $ 1.8% Adjusted EBITDA(1) 139.0 $ 115.1 $ 20.8% Excl. Special Items, (1) Adjusted EBITDA would have been: 144.0 $ 138.8 $ 3.7% Income (loss) (128.6) $ (161.2) $ Excl. Special Items, (1) Income would
Slide 9: Other Financial Highlights
9 Other Financial Highlights Full year 2008 versus full year 2007 performance: Free cash flow(1) of $41.3 million; an increase of $22.3 million Total debt and A/R securitization of $629.9 million; a decrease of $27.6 million Leverage ratio of 4.16x compared to a debt covenant ratio of 5.0x. Total we
Slide 10: Segment Highlights
CORPORATION So TRIMAS Segment Highlights
Slide 11: Segment Summary
11 Segment Summary 17% 22% 21% 24% 16% Segment Key 27% 37% 5% 26% 5% Packaging Systems Energy Products Industrial Specialties RV & Trailer Products Recreational Accessories % of Revenue % of Segment Operating Profit(1) Year Ended December 31, 2008 Year Ended December 31, 2008 (1) Segment Operating P
Slide 12: Packaging Systems
12 Packaging Systems 2008 net sales increased 6.2%, compared to 2007, due to sales of specialty dispensing and other new products to the pharmaceutical, food/beverage and personal care end markets and the favorable effects of currency exchange 2008 Adjusted EBITDA and operating profit improved due t
Slide 13: Energy Products
13 Energy Products Sales for the year increased 30.8%, compared to 2007 New product initiatives to add content at the well-site and increased engine demand drove sales increases of engine and related products year-over-year Product expansion efforts, a superior service model and continued high level
Slide 14: Industrial Specialties
14 Industrial Specialties 2008 sales increased 8.4%, compared to 2007 Sales of aerospace fasteners were robust due to the introduction of new products and a strong market Higher sales in defense business driven by cartridge case inventory build-up Sales of industrial cylinders and specialty cutting
Slide 15: RV & Trailer Products
15 RV & Trailer Products ($ in millions) 2008 sales decreased 12.2% due to continued weak demand in end markets resulting from the decline in consumer discretionary spending and credit availability Sales in Australia and Southeast Asia increased year-over-year Adjusted EBITDA and operating profit de
Slide 16: Recreational Accessories
16 Recreational Accessories ($ in millions) Q4-07 Q4-08 $49.9 $39.2 2007 2008 $284.2 $249.8 $0.8 $(3.1) $26.0 $16.0 Q4-07 Q4-08 2007 2008 $(5.8) $15.2 $6.1 Q4-07 Q4-08 2007 2008 $(2.2) Net Sales Adjusted EBITDA( 1) Operating Profit(1) (1) Adjusted EBITDA and Operating Profit exclude “Special Items”
Slide 17: Summary and Outlook
CORPORATION Summary and Outlook
Slide 18: TriMas Vision
18 TriMas Vision We provide applied technology that customers in growing markets need and will pay for. We build and run agile businesses that provide high returns on capital. Operating Principles: Securing our position as the best cost producer Acting with high speed in all aspects of business Thou
Slide 19: End Markets
19 End Markets Broad product portfolio with strong brands Share gain due to weak competitors exit New awards domestic and offshore Trailer registrations down 23% in 2008: Down 20% Light pick-up truck sales down 35% in 2008: Down 20-30% Overall market: Down 20%+ Non-North American: 15% Retail (access
Slide 20: Profit Improvement Plan
20 Profit Improvement Plan Tactics Employed: Fixed cost headcount reductions Salaried hiring freeze Merit deferrals Mandatory 4-day work weeks Required weeks off without pay Acceleration of plant consolidations and moves to low-cost countries Consolidation of distribution facilities Employee health
Slide 21: Value Creation Opportunities
21 Value Creation Opportunities Earnings Price actions Material deflation General productivity improvements Profit Improvement Plan cost savings of $28 million+ Reduction in debt service costs of $4 to $7 million Decrease in outstanding weighted average borrowings Lower weighted average cost of borr
Slide 22: TriMas Priorities
22 TriMas Priorities Drive operating profit improvement Best cost producer strategy Effectively manage the balance sheet Pay-down debt Maintain liquidity cushion Deploy capital prudently Focus capital on profitable strategic growth Aerospace, specialty packaging, medical, energy and geographic expan
Slide 23: Questions & Answers
So TRIMAS CORPORATION Questions & Answers
Slide 24: Appendix
CORPORATION Appendix
Slide 25: 2008 Statement of Operations
25 2008 Statement of Operations 2008 2007 Net sales 1,021,300 $ 1,003,070 $ Cost of sales (758,120) (729,510) Gross profit 263,180 273,560 Selling, general and administrative expenses (166,500) (173,810) Advisory services agreement termination fee - (10,000) Costs for early termination of operating
Slide 26: 2008 Cash Flow Highlights
26 2008 Cash Flow Highlights 2008 2007 Adjusted Ebitda(1), as reported 139,020 $ 115,120 $ Special Items(2) 4,980 23,720 Adjusted Ebitda, excluding Special Items 144,000 $ 138,840 $ Cash interest (52,660) (63,690) Cash taxes (8,060) (8,660) Capital expenditures (28,680) (33,400) Change in operating
Slide 27: 2008 Balance Sheet
27 2008 Balance Sheet December 31, December 31, 2008 2007 Current assets: Cash and cash equivalents 3,910 $ 4,800 $ Receivables, net 104,760 89,370 Inventories 188,950 181,790 Deferred income taxes 16,970 18,860 Prepaid expenses and other current assets 7,430 7,010 Assets of discontinued operations
Slide 28: LTM EBITDA as Defined in Credit Agreement
28 (Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended December 31, 2008 (136,190) $ Interest expense, net (as defined) 56,060 Income tax expense (benefit) (12,610) Depreciation and amortization 44,070 Extraordinary non-cash charges 18
Slide 29: Reconciliation of Non-GAAP Measures
30 Reconciliation of Non-GAAP Measures Adjusted EBITDA(1) and Free Cash Flow(2) (unaudited, $ in thousands) 2008 2007 2008 2007 Net loss (161,830) $ (168,870) $ (136,190) $ (158,430) $ Income tax expense (27,920) (17,370) (12,610) (10,410) Interest expense 13,600 15,390 55,920 68,310 Debt extinguish
Slide 30: Additional Information Regarding Special Items
31 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Year ended Year ended December 31, 2008 December 31, 2007 ($ in thousands) Income EPS Income EPS Loss and EPS from Continuing Operations, as reported. (12 8,590) $ (3.85) $ (161,20 0) $ (5.66) $ After-tax im
Slide 31: Additional Information Regarding Special Items (cont.)
32 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (cont.) (1) Information is unaudited Quarter ended December 31, Year ended December 31, ($ in thousands) 2008(1) 2007(1) 2008 2007 Operating loss, as reported (162,060) $ (170,450) $ (76,380) $ (94,650) $ Sp
Slide 32: Company and Business Segment Financial Information
33 Company and Business Segment Financial Information – Continuing Operations Quarter ended December 31, 2008 2007 2008 2007 Packaging Systems Net sales 32,420 $ 35,150 $ 161,330 $ 151,950 $ Operating profit (loss) (57,730) $ 1,300 $ (31,200) $ 26,880 $ Operating profit (loss) as a % of sales NM 3.7
Slide 33: Company and Business Segment Financial Information (cont.)
34 Company and Business Segment Financial Information – Continuing Operations (cont.) Quarter ended December 31, 2008 2007 2008 2007 Recreational Accessories Net sales 39,220 $ 49,850 $ 249,780 $ 284,230 $ Operating loss (43,930) $ (81,620) $ (32,110) $ (64,200) $ Operating loss as a % of sales NM N