Slide 1: Fourth Quarter and Full Year 2014 Earnings Presentation
Fourth Quarter and Full Year 2014 Earnings Presentation February 25, 2015 NASDAQ • TRS
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 n
Slide 3: Agenda
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3
Slide 4: Opening Remarks
Opening Remarks • Record annual sales of approximately $1.5 billion – growth of 8% compared to 2013 – Sales increased in all six segments • Attained $1.92(1) full year EPS – within the previous outlook range and including costs related to the recent Allfast acquisition • Continued refinement of busi
Slide 5: Key Initiatives Update
Key Initiatives Update • Packaging – Global re-organization underway to better service customers; leveraging new, lower cost footprint to support global growth • Aerospace – Positioning as aerospace fastening system supplier of choice; leveraging and integrating four separate aerospace platforms • E
Slide 6: Cequent Spin-off Update
Cequent Spin-off Update • Spin-off will result in two independent, publicly traded companies with increased strategic flexibility • Value creation for shareholders, customers and employees: • Allows each company to pursue a more focused strategy that leverages its strengths • Optimizes the financial
Slide 7: Creating Two Strong Public Companies
Creating Two Strong Public Companies (Dollars in millions; from continuing operations – All figures are for Full Year 2014.) New TriMas New “Cequent” ENGINEERED CEQUENT CEQUENT PACKAGING AEROSPACE ENERGY COMPONENTS AMERICAS APEA Revenue: $337.7 Revenue: $121.5 Revenue: $206.7 Revenue: $221.4 Revenue
Slide 8: Cequent Spin-off Update
Cequent Spin-off Update • Naming determined – Horizon Global Corporation • Aligning organization and structure as one global company • Executing on new synergies as one company • Offsetting portions of stand-alone company costs and streamlining organization • Shifting organizational paradigms to enh
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Fourth Quarter Summary
Fourth Quarter Summary (Unaudited, dollars in millions, except per share amounts) (from continuing operations) Q4 2014 Q4 2013 % Chg Revenue $ 350.6 $ 320.2 9.5% Operating Profit $ 15.6 $ 10.5 49.3% (1) Excl. Total Special Items , Operating Profit would have been: $ 29.1 $ 23.5 24.2% (1) Excl. Total
Slide 11: Full Year 2014 Summary
Full Year 2014 Summary (Unaudited, dollars in millions, except per share amounts) (from continuing operations) FY 2014 FY 2013 % Chg Revenue $ 1,499.1 $ 1,388.6 8.0% Operating Profit $ 124.6 $ 119.6 4.1% (1) Excl. Total Special Items , Operating Profit would have been: $ 146.3 $ 137.3 6.6% (1) Excl.
Slide 12: Segment Highlights
Segment Highlights
Slide 13: Packaging
Packaging (Quarterly results unaudited, dollars in millions) Q4 and FY 2014 Results: Net Sales • Sales increased primarily as a result of specialty systems product sales gains $337.7 — Increased demand from North American and Asian dispensing customers $313.2 — Positive impact of July 2014 acquisiti
Slide 14: Energy
Energy (Quarterly results unaudited, dollars in millions) Q4 and FY 2014 Results: Net Sales • FY 2014 sales increased primarily due to recent acquisitions in the United $205.6 $206.7 Kingdom, Thailand and India • Sales of standard gaskets and bolts in the U.S. increased in the back half of 2014, par
Slide 15: Aerospace
Aerospace (Quarterly results unaudited, dollars in millions) Net Sales Q4 and FY 2014 Results: $121.5 • Sales increased primarily as a result of acquisitions, including Allfast completed $95.5 in Q4 2014 and Mac Fasteners completed in Q4 2013 $35.1 • Continued to experience choppy order demand and i
Slide 16: Engineered Components
Engineered Components (Quarterly results unaudited, dollars in millions) Net Sales Q4 and FY 2014 Results: $221.4 • Sales of industrial cylinders increased primarily due to the November 2013 $185.4 small cylinder asset acquisition, as well as growth in new products and markets $56.3 $41.5 • Sales of
Slide 17: Cequent (APEA & Americas)
Cequent (APEA & Americas) (Quarterly results unaudited, dollars in millions) Net Sales Q4 and FY 2014 Results: $588.9 $611.8 • Sales in Americas increased due to higher demand from the aftermarket and retail channels • Americas operating profit(1) and margin percentage was relatively flat as the $12
Slide 18: Outlook and Summary
Outlook and Summary
Slide 19: 2015 – Segment Assumptions
2015 – Segment Assumptions Segment Revenue Margin Packaging • Mid single-digit growth • Maintain 22% to 24% operating profit • 2% to 3% currency headwind Aerospace • Grows at 50%+ due to Allfast • Full year operating profit > 20% • Improving sequentially during year as actions implemented Energy • G
Slide 20: 2015 Outlook
2015 Outlook Full Year Outlook as of 2/25/15 Organic 3% to 4% Acquisitions 4% to 5% Sales Growth 3% to 5% Oil Price Decline ~ (2%) Currency ~ (2%) I Earnings Per Share, diluted(1) $2.10 to $2.20 3% to 5% Free Cash Flow(2) $60 to $70 million Note: This guidance is reflective of a full year of TriMas
Slide 21: Bridge from 2014 Reported to 2015 EPS Guidance
Bridge from 2014 Reported to 2015 EPS(1) Guidance $2.40 $0.50 - $0.60 $(0.20) $2.30 Oil Acquisitions $2.20 Currency $2.10 Organic (less Cequent) $2.00 $(0.10) $2.10 to $2.20 $1.90 Cequent $(0.05) $0.03 $1.92 $1.80 $1.70 2014 EPS Interest expense Corp & LTI inflation/reset Tax rate Operations (ex oil
Slide 22: Summary
Summary • Revenue and income growth during 2014 – much more to accomplish going forward • Continuing the portfolio transformation in 2015 • Cequent spin-off • Leverage synergies of recent Aerospace and Packaging acquisitions • Focus on core margins of remaining business – Energy and Aerospace are hi
Slide 23: Questions and Answers
Questions and Answers
Slide 24: Appendix
~~, zs xe, c ) Q Q <x
Slide 25: 2015 Outlook – Additional Assumptions
2015 Outlook – Additional Assumptions Full Year Outlook as of 2/25/15 Interest expense ~ $20 to $22 million Capital expenditures ~ 4% of sales Tax rate ~ 28% to 29% 25
Slide 26: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Dollars in thousands) December 31, December 31, 2014 2013 Assets Current assets: Cash and cash equivalents............................................................. $ 24,420 $ 27,000 Receivables, net............................................................
Slide 27: Consolidated Statement of Income
Consolidated Statement of Income (Unaudited, dollars in thousands, except for per share amounts) Three months ended Twelve months ended December 31, December 31, 2014 2013 2014 2013 Net sales................................................................................................. $ 350,570 $
Slide 28: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Twleve months ended (Unaudited, dollars in thousands) December 31, 2014 2013 Cash Flows from Operating Activities: Net income......................................................................................................................... $ 69,280 $ 80,070
Slide 29: Company and Business Segment Financial Information
Company and Business Segment Financial Information (Unaudited, dollars in thousands) Three months ended December 31, Twelve months ended December 31, 2014 2013 2014 2013 Packaging Net sales...............................................................................................................
Slide 30: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited, dollars in thousands, except for per share amounts) Three months ended Twelve months ended December 31, December 31, 2014 2013 2014 2013 Income from continuing operations, as reported...............
Slide 31: Current Debt Structure
Current Debt Structure (Unaudited, dollars in thousands) December 31, December 31, 2014 2013 Cash and Cash Equivalents…………………………… $ 24,420 $ 27,000 Credit Agreement……………………………………… 559,530 246,130 Receivables facility and other………………………… 79,800 59,610 639,330 305,740 Total Debt………………………...…………………… $
Slide 32: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement (Unaudited, dollars in thousands) Net income for the twelve months ended December 31, 2014 .......................................................... $ 69,280 Interest expense, net (as defined)............................................................