Trimas Corporation · NASDAQ:TRS
Trimas — Q4 2019 Earnings Presentation
26 slides from Trimas's earnings presentation, Feb 27, 2020
Slide 1: Fourth Quarter and Full Year 2019 Earnings Presentation
Fourth Quarter and Full Year 2019 Earnings Presentation ] February 27, 2020 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Any "forward-looking" statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, contained herein, including those relating to the TriMas’ business, financial condition or future results, in
Slide 3: Strategic Repositioning
Strategic Repositioning Sales(1) by Segment Pro Forma(2) Sales by Segment 18% Aerospace Aerospace • Annualized Sales: ~$800 million Packaging 28% Packaging • > 80% of sales in Packaging and 43% 55% Aerospace end markets • Adj. EBITDA(3) Margin: ~20% 39% Specialty 17% • Net Leverage < 1.5x Products S
Slide 4: Share Repurchases – Investing in TriMas
Share Repurchases – Investing in TriMas Increased share repurchase authorization in November 2019 to enable purchases up to $150 million ~$92 million remains available under the authorization as of February 27, 2020 Repurchased ~2.7% of shares outstanding in 2019 Repurchased an additional ~0
Slide 5: Acquisition of RSA Engineered Products
Acquisition of RSA Engineered Products • Highly-engineered and proprietary components for aerospace air management systems – Air ducting, connectors and flexible joints – Used in hot engine bleed air, anti-icing and environmental control system Key Markets applications • Serves aerospace and defense
Slide 6: Acquisition of Rapak
Acquisition of Rapak • Provider of bag-in-box (BIB) product lines and filling equipment – Ready-to-fill polyethylene bags with attached injection molded closure and dispenser assemblies Key Products – Provides products to the North American dairy, soda, smoothie and wine end markets – Acquired brand
Slide 7: Q4 2019 Results
Q4 2019 Results Q4 Highlights • Net sales were relatively flat, as the impact of acquisitions was offset by softness in the North American industrial and Asian consumer end markets, capacity constraints in certain packaging product lines and less favorable currency exchange • Operating profit declin
Slide 8: Full Year 2019 Results
Full Year 2019 Results Full Year Highlights • Net sales were up 2.6%, as the impact of acquisitions was partially offset by continued softness in the North American industrial end market, capacity constraints in certain packaging product lines and less favorable currency exchange • Operating profit
Slide 9: Cash Flow and Segment Results
Cash Flow and Segment Results
Slide 10: Strong Balance Sheet and Available Liquidity
Strong Balance Sheet and Available Liquidity Continued Strong Financial Position • Free Cash Flow(1) conversion greater than 100% of income from continuing operations • Bank leverage well below 2.0x, even after investing $67.1 million in acquisitions and $36.7 million in share buybacks during 2019 •
Slide 11: TriMas Packaging Segment
TriMas Packaging Segment Net Sales Operating Profit • Organic -7.2% +4.9% • NA Industrial • Acquisitions +12.7% -3.2% • Product mix • Fx -0.6% • Expedited freight $94.0 $89.7 $20.1 $19.5 22.5% 20.7% $ millions $ millions Q4 2018 Q4 2019 Q4 2018 Q4 2019 Quarterly Takeaways Brands & Applications • Imp
Slide 12: TriMas Aerospace Segment
TriMas Aerospace Segment Net Sales Operating Profit +6.6% • Robust sales +14.9% • Factory floor improvement $41.1 $7.4 $38.6 $6.5 18.0% 16.7% $ millions $ millions Q4 2018 Q4 2019 Q4 2018 Q4 2019 Quarterly Takeaways Brands & Applications • Sales increased due to higher demand levels and production t
Slide 13: TriMas Specialty Products Segment
TriMas Specialty Products Segment Net Sales Operating Profit -14.5% -50.6% • Soft sales • Lower absorption • Product mix $41.8 $5.5 $35.8 13.2% $ millions $ millions $2.7 7.6% Q4 2018 Q4 2019 Q4 2018 Q4 2019 Quarterly Takeaways Brands & Applications • Sales pressure from customer consolidation and (
Slide 14: Outlook
SS TriMas
Slide 15: 2020 Updates
2020 Updates 1 2 Reportable Segment Modification Other Assumptions • In light of the planned RSA Engineered • Direct and indirect impacts of U.S. tariffs on Products acquisition closing, reorganized imported finished and subcomponent supply Martinic Engineering from the Specialty has increased custo
Slide 16: TriMas 2020 Outlook
TriMas 2020 Outlook As of 2/27/20 TriMas 2020 Outlook Annual Sales Growth(1) 9.0% to 11.0% - Organic Sales Growth 1.5% to 2.5% Diluted EPS $1.50 to $1.60 Free Cash Flow(2) > 100% of Net Income Enterprise-wide: - Effective Tax Rate 22% to 23% - Capital Expenditures as a % of Sales ~4.5% - Interest Ex
Slide 17: Levers for Long-term Share Appreciation
Levers for Long-term Share Appreciation Performance under the TriMas Business Model has allowed us to focus on all four value drivers. 1 2 3 4 Continuous Capital Shaping Innovation Improvement Allocation TriMas • TriMas Business Model • Investing in growth • Reinvesting in factory • Accelerating the
Slide 18: SS TriMas
SS TriMas
Slide 19: Appendix
SX TriMas Appendix
Slide 20: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet December 31, December 31, 2019 2018 Assets Current assets: Cash and cash equivalents $ 172,470 $ 108,150 Receivables, net 108,860 97,170 Inventories 132,660 127,160 Prepaid expenses and other current assets 20,050 6,900 Current assets, discontinued operations - 7
Slide 21: Consolidated Statement of Income
Consolidated Statement of Income Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 (unaudited) Net sales $ 170,920 $ 170,090 $ 723,530 $ 705,030 Cost of sales (126,590) (122,420) (529,630) (504,920) Gross profit 44,330 47,670 193,900 200,110 Selling, general and ad
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Twelve months ended December 31, 2019 2018 Cash Flows from Operating Activities: Net income $ 98,620 $ 83,300 Income from discontinued operations 36,680 9,590 Income from continuing operations 61,940 73,710 Adjustments to reconcile income from continuing operatio
Slide 23: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Packaging Net sales $ 94,030 $ 89,660 $ 392,340 $ 368,200 Operating profit $ 20,750 $ 20,140 $ 80,770 $ 84,590 Special Items to consider in evaluating operating profit: Reve
Slide 24: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Income from continuing operations, as reported $ 13,430 $ 14,940 $ 61,940 $ 73,710 Special Items to consider in evaluating quality of net income from continuing operations
Slide 25: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended December 31, 2019 2018 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities from continuing operations $ 35,100 830 $ 35,930 $ 35,450 $ 80 $ 35,530 Less: Capital expenditur
Slide 26: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Income from continuing operations, as reported $ 13,430 $ 14,940 $ 61,940 $ 73,710 Depreciation expense 6,540 5,380 24,870 22,230 Amortization expense 4,600 4,550 18,630 1