Slide 1: Third Quarter 2011 Earnings Presentation
Third Quarter 2011 Earnings Presentation October 27, 2011 NASDAQ • TRS
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 – Third Quarter Results
Opening Remarks – Third Quarter Results • Playbook in place continues to enhance TriMas value ̶ Operating processes established to maximize results ̶ Great execution of growth and productivity programs ̶ Strategic plans and actions to maximize long-term portfolio and business focus • Sixth consecuti
Slide 5: Financial Highlights
Financial Highlights
Slide 6: Third Quarter Summary
Third Quarter Summary • Sales increased 16.8% vs. Q3 2010 with growth in all segments ̶ Investments in bolt-on acquisitions, new products and expanding geographies driving positive results • Productivity efforts continued to fund growth initiatives and offset commodity inflation • Sales mix had cont
Slide 7: Working Capital
Working Capital Significant sales growth and geographic expansion adds complexity – process improvements ongoing. 7 Comments: • Significant growth and global expansion adds complexity to the supply chain – focus on continuous improvement • Made decision to increase inventory levels to improve fill r
Slide 8: Capitalization
Capitalization As of September 30, 2011, TriMas had $162.7 million of cash and available liquidity under its revolving credit and accounts receivables facilities. 8 (Unaudited, $ in thousands) September 30, December 31, 2011 2010 Cash and Cash Equivalents……………………………..………………… 10,540$ 46,370$ Term loa
Slide 9: Segment Highlights
Segment Highlights
Slide 10: Packaging
Packaging Results: • Q3 2011 sales increased as a result of the Innovative Molding acquisition in August 2011 and favorable currency exchange • Legacy industrial closure and specialty system sales decreased, primarily due to customers’ management of inventory levels in light of economic uncertainty
Slide 11: Energy
Energy ($ in millions) Results: • Q3 2011 sales increased as a result of the South Texas Bolt & Fitting (STB&F) acquisition in Q4 2010, incremental sales from newer branch facilities and improved customer demand • The results generated by the acquisition of STB&F are exceeding expectations • Operati
Slide 12: 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 13: 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 14: Cequent (Asia Pacific & North America)
Cequent (Asia Pacific & North America) ($ in millions) $46.4 Results: • Q3 sales in North America improved due to increased sales within the retail and industrial channels resulting from market share gains • North America operating profit and margin level decreased due to sale of higher cost invento
Slide 15: YTD 2011 Summary
YTD 2011 Summary • Strong organic growth through market share gains, product innovation, geographic expansion and increased end market demand • Recent acquisitions ahead of schedule with enhanced synergies and growth • Improved operating leverage and capital structure • Successfully refinanced and a
Slide 16: Outlook and Summary
Outlook and Summary
Slide 17: 2011 Outlook
2011 Outlook As of 10/27/11 As of 2/28/11 As of 4/28/11 As of 7/28/11 Continuing Operations(1) Discontinued Operations(1) Sales Growth 6% to 9% 8% to 11% 13% to 16% 16% to 17% Earnings Per Share, diluted $1.40 to $1.50 $1.45 to $1.60 $1.60 to $1.70 $1.52 to $1.57 Approximately $0.13 Free Cash Flow(2
Slide 18: Strategic Aspirations
Strategic Aspirations • High single-digit top-line growth • Earnings growth faster than revenue growth • 3% to 5% of total gross cost productivity gains annually – utilize savings to fund growth • Invest in growth programs that deliver new products, new markets and expanded geographies • Increase re
Slide 19: Questions & Answers
Questions & Answers
Slide 20: Appendix
Appendix
Slide 21: YTD Summary
YTD Summary • Sales increased 19.5% vs. YTD Q3 2010 as a result of successful execution of the Company’s growth initiatives, bolt-on acquisitions and improved end market demand • Productivity efforts continue to fund growth and offset commodity inflation • Sales mix had negative impact on margin lev
Slide 22: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 22 September 30, December 31, 2011 2010 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….10,540$ 46,370$ Receivables, net of reserves ………………………………………………….………………………….. 151,970 111,380 Inventories
Slide 23: Consolidated Statement of Operations
Consolidated Statement of Operations (Unaudited, dollars in thousands) 23 Nine months ended 2011 2010 2011 2010 Net sales……………………...………………………………………….…………………….. 277,660$ 237,730$ 824,310$ 689,950$ Cost of sales………………………………………………………………………………………………………… (195,720) (165,660) (582,260) (481,150) Gross prof
Slide 24: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) 24 Three months ended Three months ended September 30, 2011 September 30, 2010 (dollars in thousands, except per share amounts) Income Diluted EPS Income Diluted EPS Income and EPS from continuing o
Slide 25: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops (Unaudited, dollars in thousands) 25 Three months ended 2011 2010 2011 2010 Packaging Net sales 46,090$ 44,490$ 137,890$ 133,610$ Operating profit 10,240$ 13,140$ 37,140$ 38,480$ Energy Net sales 42,690$ 31,710$ 125,810$ 94,400$ Operatin
Slide 26: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 26 (Unaudited, dollars in thousands) Reported net income for the twelve months ended September 30, 2011 ……………………………………………………………….. 52,800$ Interest expense, net (as defined)…………………….………………………………………………………….. 46,550 Income tax expense.……………………………….…………………