Slide 1: Second Quarter 2008 Earnings Presentation
1 Second Quarter 2008 Earnings Presentation July 31, 2008
Slide 2: Forward-looking statements
2 This document contains “forward-looking” statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business. Forward-looking statements include certain anticipated, believed, planned, forecasted, expected, targeted and estimated re
Slide 3: Agenda
3 Agenda Second Quarter 2008 Results Segment Highlights Financial Highlights and Outlook Questions and Answers Appendix
Slide 4: Second Quarter 2008 Results
4 Second Quarter 2008 Results
Slide 5: Overview
5 Overview Solid performance in a difficult environment - Delivered Q2-2008 EPS from continuing ops of $0.28 - Continued improvement in balance sheet Aggressive structural cost reduction - Restructuring and other charges of $0.04 per share (Excluding these amounts, Q2-2008 EPS would have been $0.32
Slide 6: 2008 Second Quarter Results
6 2008 Second Quarter Results Record quarterly sales of $297.1 million Excluding Special Items(1), Adjusted EBITDA would have declined primarily due to the demand declines in RV&T and Recreational Accessories segments Net income improved 12.8%, excluding the impact of Special Items(1) Net cash provi
Slide 7: Segment Highlights
Do TRIMAS. y CORPORATION Segment Highlights
Slide 8: Packaging Systems
8 Packaging Systems Sales of core industrial closure products and specialty dispensing products to pharmaceutical, food/beverage and personal care end markets were up 7.6% year-over-year and benefited from the favorable effects of price increases and currency exchange Laminate and insulation product
Slide 9: Energy Products
9 Energy Products 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 levels of capacity utilization increased specialty gasket s
Slide 10: Industrial Specialties
10 Industrial Specialties Q2 2008 Q2 2007 $52.9 $56.2 Q2 2008 Q2 2007 $12.4 $13.0 Q2 2008 Q2 2007 $11.2 $11.5 6.4% 4.9% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales of aerospace fasteners were robust due to the introduction of new products and a strong market – currently there is
Slide 11: RV & Trailer Products
11 RV & Trailer Products Q2 2008 Q2 2007 $53.1 $49.7 Q2 2008 Q2 2007 $7.8 $3.9 Q2 2008 Q2 2007 $6.0 $2.1 (6.3)% (49.7)% (65.7)% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales declined due to continued weak demand in U.S. end markets resulting from the decline in consumer discretion
Slide 12: Recreational Accessories
12 Recreational Accessories Q2 2008 Q2 2007 $84.0 $80.6 Q2 2008 Q2 2007 $9.7 $8.9 Q2 2008 Q2 2007 $7.4 $6.5 (4.1)% (8.5)% (11.8)% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales declined due to continued weak consumer demand for towing accessories - Outperformed the market - estimat
Slide 13: Financial Highlights & Outlook
13 Financial Highlights & Outlook
Slide 14: Statement of Operations
14 Statement of Operations ($ in thousands) 2008 2007 2008 2007 Net sales 297,080 $ 287,670 $ 576,640 $ 572,110 $ Cost of sales. (218,330) (208,020) (424,550) (414,460) Gross profit 78,750 79,650 152,090 157,650 Selling, general and administrative expenses (48,790) (45,320) (93,910) (90,860) Advisor
Slide 15: Statement of Operations (cont'd)
15 Statement of Operations (cont’d) 2008 2007 2008 2007 Earnings (loss) per share - basic: Continuing operations 0.28 $ (0.15) $ 0.51 $ 0.16 $ Discontinued operations, net of income taxes - 0.03 - - Net income per share 0.28 $ (0.12) $ 0.51 $ 0.16 $ Weighted average common shares - basic 33,409,500
Slide 16: Balance Sheet
16 Balance Sheet ($ in thousands) June 30, December 31, 2008 2007 Current assets: Cash and cash equivalents 6,860 $ 4,800 $ Receivables, net 127,470 89,370 Inventories, net 186,200 190,590 Deferred income taxes 18,860 18,860 Prepaid expenses and other current assets 6,280 7,010 Assets of discontinue
Slide 17: Working Capital Management
17 Working Capital Management Accounts Receivable - DSO decreased 3 days vs. 6/30/07 Inventory - $7 million reduction from Q1-2008 to Q2-2008 - Impact of growth investments - Impact of Asia supply chain - Y-O-Y increase of $16 million (Approx. $9 million due to inflation) Accounts Payable - Concerte
Slide 18: Capitalization
18 Capitalization As of June 30, 2008, TriMas had $6.9 million in cash and approximately $143.9 million of available liquidity under its revolving credit and receivables securitization facilities. ($ in thousands) June 30, 2008 June 30, 2007 December 31, 2007 Cash and Cash Equivalents 6,860 $ 2,720
Slide 19: 2008 Outlook – Full Year
19 TriMas reaffirmed full-year 2008 earnings guidance previously provided: - Second quarter results met the Company’s expectations - Excluding Special Items(1), EPS range from continuing operations of $0.85 per share to $0.95 per share, compared to $0.79 per share in 2007 - Excluding Special Items(1
Slide 20: Current Opportunities and Risks
20 Current Opportunities and Risks Volume (growth and market) - Energy Products - Packaging Systems (specialty dispensing products) Price - Industrial Specialties - Packaging Systems Cost reduction - RV & Trailer and Recreational Accessories - Industrial Specialties - Packaging - Corporate Office Vo
Slide 21: 2008 Priorities
21 2008 Priorities Deploy capital prudently Manage balance sheet Offset cost inflation Redeploy low-value, transactional costs to fund product and market initiatives
Slide 22: Questions and Answers
Do TRIMAS. y CORPORATION Questions and Answers
Slide 23: Appendix
) doTamas SY ‘N \ Appendix
Slide 24: Second Quarter 2008 Results by Segment
24 Second Quarter 2008 Results 2008 2007 Change 2008 2007 Change Net Sales Packaging Systems 57,410 $ 56,700 $ 1.3% 111,980 $ 110,450 $ 1.4% Energy Products 53,160 41,020 29.6% 101,960 82,600 23.4% Industrial Specialties 56,210 52,850 6.4% 109,680 103,440 6.0% RV & Trailer Products 49,730 53,070 -6.
Slide 25: Statement of Cash Flows
25 Statement of Cash Flows ($ in thousands) Six months ended Three months ended June 30, June 30 , 2008 2007 2008 2007 Net income 17,320 $ 3,860 $ 9,450 $ (3,190) $ Adjustment s to reconcile net income to net cash provided by operating activities, net of acquisition impact: Loss on dispositions of p
Slide 26: Reconciliation of Non-GAAP Measure Adjusted EBITDA
26 Reconciliation of Non-GAAP Measure Adjusted EBITDA ($ in thousands) (1) The Company defines Adjusted EBITDA as net income (loss) before cumulative effect of accounting change, interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment write-offs, and non-cash losses on sa
Slide 27: Additional Information Regarding Special Items
27 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Three months ended Six months ended June 30, June 30, (dollars in thousands) 2008 2007 2008 2007 Operating profit from continuing operations, as reported 29,850 $ 20,380 $ 57,960 $ 52,670 $ Special Items to
Slide 28: Additional Information Regarding Special Items
28 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Three months ended Three months ended June 30, 2008 June 30, 2007 (dollars in thousands, except per share amounts) Income (Loss) EPS Income (Loss) EPS Income (Loss) and Diluted EPS from continuing operations
Slide 29: LTM EBITDA as Defined in Credit Agreement
29 (Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended June 30, 2008 (144,970) $ Interest expense, net (as defined) 59,800 Income tax expense (benefit) (3,810) Depreciation and amortization 43,590 Extraordinary non-cash charges 178,450