Slide 1: Third Quarter 2012 Earnings Presentation
Third Quarter 2012 Earnings Presentation October 25, 2012 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 – Third Quarter Results
Opening Remarks – Third Quarter Results • Record quarterly sales of $336 million – up 21% compared to Q3 2011 – Continued to gain market share in multiple businesses via rapid responses to short term customer needs – Investments in new products and higher growth markets showing results – Bolt-on acq
Slide 5: Current Environment
Current Environment Headwinds • European downturn continues • New geographies take time to penetrate (eg. Brazil) • Overall industrial production – “holding pattern until election” • Currency translation • Costs related to capacity adds at Monogram and Rieke • Customers and growth strategy create up
Slide 6: Financial Highlights
Financial Highlights
Slide 7: Third Quarter Summary
Third Quarter Summary • Sales increased 21.0% compared to Q3 2011 – sales increased in all six segments • Investments in bolt-on acquisitions, new products and geographic expansion driving positive results • Productivity efforts continued to fund growth initiatives – productivity savings in line wit
Slide 8: Capitalization and Total Debt and Leverage Ratio
8 ($ in millions) Capitalization Total Debt and Leverage Ratio (including A/R Facility) Comments: • Reduced interest expense by $1.3M in Q3 2012 as compared to Q3 2011 • Q3 2012 leverage ratio of 2.29x • Continued focus on deleveraging • Refinance largely complete As of September 30, 2012, TriMas ha
Slide 9: Refinance Summary
Refinance Summary 9 As of 9/30/2012(1) Amount Rate Maturity Revolving Credit Facility $125M(2) LIBOR plus 3.25% June 2016 Term Loan B $217M LIBOR plus 3.00% (LIBOR floor of 1.25%) June 2017 Senior Secured Notes $197M 9.75% December 2017 Post Refinance(1) Amount Rate Maturity Revolving Credit Facilit
Slide 10: Segment Highlights
Segment Highlights
Slide 11: Packaging
Packaging Q3 2012 Results: • Sales increased primarily as a result of acquisitions and specialty systems product sales gains — Increase in North America industrial product sales offset declines in Europe — Impact of unfavorable currency exchange • Operating profit and margin increased primarily due
Slide 12: Energy
Energy ($ in millions) Q3 2012 Results: • Sales increased as a result of continued market share gains of highly- engineered bolts, the July acquisition in Brazil and additional sales generated by newer branches • Operating profit decreased due to costs related to the acquisition, increased sales at
Slide 13: 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 14: 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 15: Cequent (Americas & Asia Pacific)
Cequent (Americas & Asia Pacific) ($ in millions) $46.4 Q3 2012 Results: • Sales in Americas increased in the original equipment and retail channels as a result of new products and increased market share • Americas operating profit(1) increased due to higher sales levels, while operating profit marg
Slide 16: Outlook and Summary
Outlook and Summary
Slide 17: YTD 2012 Summary
YTD 2012 Summary • Tenth 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 cu
Slide 18: 2012 Outlook
2012 Outlook Outlook as of 2/27/12 and 4/26/12 Outlook as of 7/30/12 Outlook as of 10/25/12 Sales Growth 7% to 10% 10% to 14% 15% to 17% Earnings Per Share, diluted(1) $1.75 to $1.85 $1.75 to $1.85 (Post May equity offering and 4 million incremental shares) $1.75 to $1.85 Free Cash Flow(2) $40 to $5
Slide 19: Strategic Aspirations
Strategic Aspirations Strategic aspirations are the foundation for 2013. 19 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fund gro
Slide 20: Questions & Answers
Questions & Answers
Slide 21: Appendix
Appendix
Slide 22: YTD Summary
YTD Summary • Sales increased 18% as compared to YTD Q3 2011 as a result of the successful execution of the Company’s growth initiatives • Productivity efforts continue to fund growth and offset commodity inflation • Income(1) and EPS(1) increased 23% and 14% compared to YTD Q3 2011 due to increased
Slide 23: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 23 September 30, December 31, 2012 2011 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….26,090$ 88,920$ Receivables, net of reserves ………………………………………………….………………………….. 185,040 135,610 Inventories
Slide 24: Capitalization
Capitalization 24 (Unaudited, dollars in thousands) As of September 30, 2012, TriMas had $217.2 million of cash and available liquidity under its revolving credit and accounts receivable facilities. September 30, December 31, 2012 2011 Cash and Cash Equivalents……………………………..………………… 26,090$ 88,920$ Te
Slide 25: Consolidated Statement of Operations
Consolidated Statement of Operations (Unaudited, dollars in thousands, except for per share amounts) 25 Nine months ended 2012 2011 2012 2011 Net sales.................................................................................... 335,870$ 277,660$ 971,870$ 824,310$ Cost of sales...............
Slide 26: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 26 2012 2011 Cash Flows from Operating Activities: Net income..................................................................................................................... 49,380$ 47,110$ Adjustments to reconcile net income
Slide 27: Additional Information Regarding Special Items Impacting GAAP Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited, dollars in thousands, except per share amounts) 27 2012 2011 2012 2011 Income from continuing operations, as reported 19,960$ 16,980$ 49,380$ 43,680$ Less: Net income attributable to noncontrolling
Slide 28: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops 28 Three months ended 2012 2011 2012 2011 Packaging Net sales 77,240$ 46,090$ 202,250$ 137,890$ Operating profit 18,240$ 10,240$ 44,700$ 37,140$ Energy Net sales 45,460$ 42,690$ 143,220$ 125,810$ Operating profit 3,780$ 4,560$ 14,520$ 14
Slide 29: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 29 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended September 30, 2012 ……………………………………………………………….. 61,070$ Net income attributable to partially-owned subsidiaries…….………………………………………………………….. (3,65