Slide 1: Second Quarter 2011 Earnings Presentation
Second Quarter 2011 Earnings Presentation July 28, 2011
Slide 2: Safe Harbor Statement
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 li
Slide 3: Agenda
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3
Slide 4: Opening Remarks – Second Quarter Results
Opening Remarks – Second Quarter Results • Record quarterly sales of almost $300 million – Up 19% vs. Q2 2010 — Continuing to gain market share in several businesses via rapid responses to customer needs — Investments in new products and markets showing results — 2010 bolt-on acquisitions exceeding
Slide 5: Innovative Molding Acquisition
Innovative Molding Acquisition • Manufacturer of plastic closures for bottles and jars located in California and Arkansas • Produces 360 million caps per year ranging in size from 28mm to 120mm • Holds numerous patents on closures, container finishes, molds and tooling • Customer base provides Rieke
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Slide 7: Second Quarter Summary
Second Quarter Summary • Sales increased 18.9% vs. Q2 2010 ̶ Growth in all segments ̶ Continued to gain additional market share in several businesses, while investments in new products and markets showing results • Productivity efforts continue to fund growth initiatives and offset commodity inflati
Slide 8: Working Capital
Working Capital Significant sales growth and geographic expansion adds complexity – process improvements ongoing. 8 Comments: • Significant growth and global expansion adds complexity to the supply chain – Focus on continuous improvement • Made decision to increase fill rates and meet customer needs
Slide 9: Capitalization
Capitalization As of June 30, 2011, TriMas had $161.8 million of cash and available liquidity under its revolving credit and accounts receivables facilities. 9 (Unaudited, $ in thousands) June 30, December 31, 2011 2010 Cash and Cash Equivalents…………………………….. 10,070$ 46,370$ Term loan…………………………………………
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Slide 11: Packaging
Packaging Results: • Q2 2011 sales increased due to increased industrial closure sales and favorable currency exchange, partially offset by lower specialty dispensing sales • Gross profit margin increased 250 basis points as a result of capital, productivity and lean initiatives • Operating profit m
Slide 12: Energy
Energy ($ in millions) Results: • Q2 2011 sales increased as a result of the acquisition of South Texas Bolt & Fitting (STB&F) in Q4 2010 and incremental sales from newer branch facilities, as well as improved customer demand • The results generated by the acquisition of STB&F are exceeding expectat
Slide 13: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Drive ongoing lean initiatives to lower working capital and reduce costs • Leverage and further develop existing defense customer relationships • Consider complementary
Slide 14: Engineered Components
Engineered Components ($ in millions) Key Initiatives: • Expand complementary product lines at well-site and grow natural gas compression products • Capitalize on shale and natural gas opportunities • Develop additional capabilities of cylinder business to capture new markets • Continue to reduce co
Slide 15: Cequent (Asia Pacific & North America)
Cequent (Asia Pacific & North America) ($ in millions) $46.4 Results: • Q2 sales in North America improved due to increased sales within the retail, original equipment and aftermarket channels – increased market share • North American operating profit increased with a margin improvement of 60 basis
Slide 16: First Half 2011 Summary
First Half 2011 Summary • Strong organic growth through market share gains, product expansion and new and existing market growth • 2010 acquisitions ahead of schedule with enhanced synergies and growth • Focus on improved operating leverage and capital structure • Successfully refinanced debt – Stro
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Slide 18: 2011 Outlook
2011 Outlook As of 2/28/11 As of 4/28/11 As of 7/28/11 Sales Growth 6% to 9% 8% to 11% 13% to 16% Earnings Per Share, diluted $1.40 to $1.50 $1.45 to $1.60 $1.60 to $1.70 Free Cash Flow(1) $50 to $60 million $50 to $60 million $50 to $60 million (1) 2011 Free Cash Flow is defined as Cash Flow from O
Slide 19: Strategic Aspirations
Strategic Aspirations • High single-digit top-line growth • Earnings growth faster than revenue growth • 3% to 5% of total gross cost productivity gains annually – utilize savings to fund growth • Invest in growth programs that deliver new products, new markets and expanded geographies • Increase re
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Slide 21: Appendix
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Slide 22: YTD Summary
YTD Summary • Sales increased 20.6% vs. YTD Q2 2010 as a result of successful execution of the Company’s growth initiatives and improving end market demand • Productivity efforts continue to fund growth and offset commodity inflation • Sales mix had negative impact on margin levels as lower margin s
Slide 23: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 23 June 30, December 31, 2011 2010 Assets Current assets: Cash and cash equivalents …………………………………………...…… 10,070$ 46,370$ Receivables, net of reserves………………………………………………… 171,070 117,050 Inventories .……………………………………………...…………………… 1
Slide 24: Consolidated Statement of Operations
Consolidated Statement of Operations (Unaudited, dollars in thousands) 24 Three months ended Six months ended 2011 2010 2011 2010 Net sales……………………...………………………………………… 299,720$ 252,060$ 569,390$ 472,120$ Cost of sales……………………………………………………………… (208,350) (173,750) (403,340) (330,750) Gross profit…………………
Slide 25: Special Items Income and EPS Reconciliation
Three months ended Three months ended June 30, 2011 June 30, 2010 (dollars in thousands, except per share amounts) Income EPS Income EPS Income and EPS from continuing operations, as reported………….……………… 17,090$ 0.49$ 15,220$ 0.44$ After-tax impact of Special Items to consider in evaluating quality o
Slide 26: Segment Net Sales and Operating Profit
Three months ended 2011 2010 2011 2010 Packaging Net sales 47,900$ 45,520$ 91,800$ 89,120$ Operating profit 15,070$ 13,480$ 26,900$ 25,340$ Energy Net sales 42,170$ 30,370$ 83,120$ 62,690$ Operating profit 5,020$ 4,070$ 10,360$ 8,260$ Aerospace & Defense Net sales 21,330$ 17,220$ 39,830$ 34,300$ Ope
Slide 27: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 27 (Unaudited, dollars in thousands) Reported net income for the twelve months ended June 30, 2011 …………………… 47,250$ Interest expense, net (as defined)…………………….………………………………… 48,500 Income tax expense.……………………………….…………………………………… 19,690 Depreciation and am