Slide 1: Fourth Quarter and Full Year 2012 Earnings Presentation
Fourth Quarter and Full Year 2012 Earnings Presentation February 26, 2013 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 – 2012 Results
Opening Remarks – 2012 Results • Record sales of approximately $1.3 billion – up 17% compared to 2011 – Investments in new products and higher growth markets showing results – Bolt-on acquisitions performed well – achieving revenue and cost synergies – Market share gains in multiple businesses via r
Slide 5: Strategic Aspirations
Strategic Aspirations Strategic aspirations achieved in 2012 and are the foundation for 2013. 5 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize
Slide 6: Current Environment
Current Environment Pressures • European downturn continues, although “stable” • New geographies take time to penetrate (e.g. Brazil) • Overall industrial production flat to low growth • Growth and customers needs create upward pressure on working capital • Inflation in China • Rising plastic resin
Slide 7: Recent Acquisitions – 2013
Recent Acquisitions – 2013 • Located in Rio de Janeiro, Brazil • Manufacturer and supplier of ring-type joints for the onshore and offshore drilling markets, and additional gasket types for the refining and petrochemical markets • Further expands footprint in Brazil to serve growing energy sector •
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Fourth Quarter Summary
Fourth Quarter Summary • Sales increased 16% as compared to Q4 2011 – sales increased in five of six segments • Investments in bolt-on acquisitions, new products and geographic expansion driving positive results • Productivity efforts contributed to funding growth initiatives • Operating profit was
Slide 10: 2012 Summary
2012 Summary • Sales increased 17% as compared to 2011 with growth in five segments; Aerospace & Defense flat year over year • More than 40% of growth related to organic initiatives, including new products, geographic expansion and market share gains • Recent bolt-on acquisitions contributed to rema
Slide 11: Capitalization and Total Debt and Leverage Ratio
11 ($ in millions) Capitalization Total Debt and Leverage Ratio (including A/R Facility) Comments: • Reduced interest expense by $8.7 million in 2012 as compared to 2011 • Q4 2012 leverage ratio of 2.30x as compared to 2.67x as of Q4 2011 • Continued focus on deleveraging • Amended credit facilities
Slide 12: Segment Highlights
Segment Highlights
Slide 13: Packaging
Packaging Q4 and FY 2012 Results: • Sales increased in both periods primarily as a result of acquisitions and specialty systems product sales gains — Increases in North America business unrelated to acquisitions offset declines in Europe • Operating profit for both periods increased primarily due to
Slide 14: Energy
Energy ($ in millions) Q4 and FY 2012 Results: • Sales increased in both periods as a result of continued market share gains of highly-engineered bolts, additional sales generated by newer branches, the July acquisition in Brazil and increased levels of turnaround activity • Operating profit and mar
Slide 15: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Leverage positive end market trends including composite aircraft and robotic assembly • Capture incremental opportunities in emerging markets • Drive ongoing Lean initia
Slide 16: Engineered Components
Engineered Components ($ in millions) Key Initiatives: • Expand complementary product lines at well-site and grow compression products – product diversification decreases cyclicality • Grow products to support the shift toward increased use of natural gas and production in shale formations • Expand
Slide 17: Cequent (Asia Pacific & Americas)
Cequent (Asia Pacific & Americas) ($ in millions) $46.4 Q4 and FY 2012 Results: • 2012 and Q4 sales in Americas increased primarily due to higher sales within the OE, industrial, agricultural and aftermarket channels (new products and increased share) • Americas Q4 operating profit and margin(1) inc
Slide 18: 2012 Summary
2012 Summary • Eleventh consecutive quarter over quarter of double-digit sales and income growth(1) • Strong organic growth through product innovation, geographic expansion, market share gains and increased end market demand • Acquisitions on schedule with revenue and cost synergies • Follow our cus
Slide 19: Outlook and Summary
Outlook and Summary
Slide 20: 2013 Playbook
2013 Playbook 20 We expect strong performance, despite uncertain economies. Ongoing Strategic Drivers • Globalization • “Green” & environmentally- friendly solutions • Growing middle classes 2013 Top Priorities • Revenue and earnings growth • Margin expansion • Capacity in right location at right ti
Slide 21: 2013 Outlook
2013 Outlook As of 2/26/13 Sales Growth 6% to 8% Earnings Per Share, diluted(1) $2.15 to $2.25 Free Cash Flow(2) $40 to $50 million (1) Defined as diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” (2) Defined as Cash Flow from Operat
Slide 22: TriMas Value Proposition
TriMas Value Proposition Growth > End Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 22 • Multiple projects in all businesses • Geographic • Product • Customer penetration • Acquisitions • Services Stability • Energy • Aerospace • Industrial • Consumer
Slide 23: Questions & Answers
Questions & Answers
Slide 24: Appendix
Appendix
Slide 25: 2013 Additional Assumptions
2013 Additional Assumptions 2013 Estimates Interest expense $21 - $23 million Capital expenditures ~4% of sales Tax rate ~30% 25
Slide 26: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (dollars in thousands) 26 December 31, December 31, 2012 2011 Assets Current assets: Cash and cash equivalents............................................................. 20,580$ 88,920$ Receivables, net...........................................................
Slide 27: Capitalization
Capitalization 27 (Unaudited, dollars in thousands) As of December 31, 2012, TriMas had $251.1 million of cash and available liquidity under its revolving credit and accounts receivable facilities. December 31, December 31, 2012 2011 Cash and Cash Equivalents……………………………..………………… 20,580$ 88,920$ U.S.
Slide 28: Consolidated Statement of Operations
Consolidated Statement of Operations (dollars in thousands, except for per share amounts) 28 Three months ended Twelve months ended 2012 2011 2012 2011 Net sales................................................................................................. 301,040$ 259,650$ 1,272,910$ 1,083,960$ C
Slide 29: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (dollars in thousands) 29 2012 2011 Cash Flows from Operating Activities: Net income......................................................................................................................... 36,290$ 60,360$ Adjustments to reconcile net income to net
Slide 30: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 30 Three months ended Twelve months ended December 31, December 31, (dollars in thousands, except per share amounts) 2012 2011 2012 2011 Income (loss) from continuing operations, as reported………….………………………………………
Slide 31: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops 31 Three months ended 2012 2011 2012 2011 Packaging Net sales......................................................................................................... 72,910$ 47,350$ 275,160$ 185,240$ Operating profit....................
Slide 32: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 32 (Unaudited, dollars in thousands) 33,880$ Net income attributable to partially-owned subsidiaries................................................................. 2,410 Interest expense, net (as defined)...............................................