Slide 1: First Quarter 2013 Earnings Presentation
First Quarter 2013 Earnings Presentation April 25, 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 – First Quarter Results
Opening Remarks – First Quarter Results • Record Q1 sales of approximately $338 million – up 13.5% compared to Q1 2012 – Positive results from recent bolt-on acquisitions – Investments in new products and higher growth markets showing results • Q1 2013 income(1) increased 28% and EPS(1) increased 13
Slide 5: Current Environment
Current Environment Headwinds • European downturn continues, although “stable” • New geographies take time to penetrate (e.g. Brazil) • Overall industrial production flat to low growth • Growth and customers’ needs create upward pressure on working capital • Inflation in China • Slowing of natural g
Slide 6: Growth Focused on "Bright Spots"
Growth focused on faster growing markets; following and aiding our customers. Growth Focused on “Bright Spots” 6 • New specialty dispensing and closure systems for consumer applications • Growth in Asian markets • Bolt-on acquisition synergies (Arminak and Innovative) • New branch ramp-up (U.S. and
Slide 7: Margin Initiatives
Margin Initiatives • Lean initiatives in all businesses and corporate • Capex for productivity • New suppliers for high-spec material • Plant consolidation and relocation • Manufacturing yield improvement • Insource/outsource decisions Multiple, additive tactics for ongoing improvement. 7 • Pricing
Slide 8: Financial Highlights
Financial Highlights
Slide 9: First Quarter Summary
First Quarter Summary • Sales increased 13.5% as compared to Q1 2012 – sales increased in five of six segments • Investments in bolt-on acquisitions, new products and geographic expansion driving positive results • Productivity efforts contributed to funding growth initiatives • Operating profit was
Slide 10: Capitalization, Total Debt and Leverage Ratio
10 ($ in millions) Capitalization Total Debt and Leverage Ratio (including A/R Facility) Comments: • Reduced interest expense by $5.5 million in Q1 2013 as compared to Q1 2012, due to debt restructuring efforts • Q1 2013 leverage ratio of 2.70x as compared to 2.68x as of Q1 2012 • Higher debt level
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging
Packaging Q1 2013 Results: • Sales increased primarily as a result of the Arminak acquisition in February 2012 and specialty systems product sales gains — Increases in North America business unrelated to acquisitions more than offset declines in Europe • Operating profit increased primarily due to h
Slide 13: Energy
Energy ($ in millions) Q1 2013 Results: • Sales increased as a result of incremental sales to the engineering and construction market, recent bolt-on acquisitions and additional sales generated by newer branches • Operating profit and margin decreased due to costs related to acquisitions, continued
Slide 14: 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 15: 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 16: Cequent (Asia Pacific & Americas)
Cequent (Asia Pacific & Americas) ($ in millions) $46.4 Q1 2013 Results: • Sales in Americas increased primarily due to higher sales within the OE, aftermarket and retail channels, as well as the July 2012 acquisition in Brazil • Americas operating profit and margin(1) increased due to higher sales
Slide 17: Q1 Summary
Q1 Summary • Organic growth achieved through product innovation, geographic expansion and market share gains • Active on bolt-on acquisition front – acquisitions on plan with future opportunities for enhanced synergies and growth • Generated double-digit earnings growth • Continuous productivity ini
Slide 18: Outlook and Summary
Outlook and Summary
Slide 19: 2013 Outlook Reaffirmed
2013 Outlook Reaffirmed Outlook as of 4/25/13 Comments Sales Growth 6% to 8% Recent acquisitions increase growth expectations to higher end of range Earnings Per Share, diluted(1) $2.15 to $2.25 Midpoint of 2013 EPS outlook represents a more than 19% increase as compared to 2012 Free Cash Flow(2) $4
Slide 20: Strategic Aspirations
Strategic Aspirations Strategic aspirations are the foundation for the future. 20 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fu
Slide 21: Strategic Plan Drivers
Strategic Plan Drivers 21 Middle Class/Globalization •Growing global middle class - 4.7% CAGR projected(1) •North America & Europe middle class - relatively flat(1) •Support customers in emerging and faster growing markets •Support global customers with local capability and global reach Energy Effic
Slide 22: Strategic Plan Key Takeaways (2014 – 2016)
Strategic Plan Key Takeaways (2014 – 2016) • 2014 – 2016 plan meets TriMas’ ongoing strategic aspirations for growth, productivity, earnings and balance sheet improvements • Each TriMas business has identified achievable growth plans via product and geographic expansion, as well as acquisitions • Mu
Slide 23: TriMas Value Proposition
TriMas Value Proposition Growth > End Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 23 • Multiple projects in all businesses • Geographic • Product • Customer penetration • Acquisitions • Services Stability • Energy • Aerospace • Industrial • Consumer
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Appendix
Appendix
Slide 26: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 26 March 31, December 31, 2013 2012 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….21,260$ 20,580$ Receivables, net………………………………………………….………………………….. 193,160 150,390 Inventories .………………………………………
Slide 27: Capitalization
Capitalization 27 (Unaudited, dollars in thousands) As of March 31, 2013, TriMas had $177.3 million of cash and available liquidity under its revolving credit and accounts receivable facilities. March 31, December 31, 2013 2012 Cash and Cash Equivalents……………………………..………………… 21,260$ 20,580$ U.S. bank
Slide 28: Consolidated Statement of Income
Consolidated Statement of Income (Unaudited, dollars in thousands, except for per share amounts) 28 2013 2012 Net sales.................................................................................... 337,780$ 297,570$ Cost of sales.................................................................
Slide 29: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 29 2013 2012 Cash Flows from Operating Activities: Net income..................................................................................................................... 14,040$ 12,250$ Adjustments to reconcile net income
Slide 30: Additional Information Regarding Special Items
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 30 2013 2012 Net income, as reported………………………………………………..………………….. 14,040$ 12,250$ Less: Net income (loss) attributable to noncontrolling interests…………………………………. 860 (240) Net income attributable to TriMas Corpo
Slide 31: Company and Business Segment Financial Information
Company and Business Segment Financial Information 31 (Unaudited, dollars in thousands) Three months ended 2013 2012 Packaging Net sales 74,350$ 54,310$ Operating profit 14,630$ 9,890$ Energy Net sales 54,920$ 50,590$ Operating profit 5,870$ 6,390$ Aerospace & Defense Net sales 20,970$ 17,860$ Opera
Slide 32: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 32 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended March 31, 2013 ………………………………………………………...……………………….. 34,570$ Net income attributable to partially-owned subsidiaries…….…………………………………………………………………