Slide 1: Fourth Quarter and Full Year 2011 Earnings Presentation
Fourth Quarter and Full Year 2011 Earnings Presentation February 27, 2012 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 – 2011 Results
Opening Remarks – 2011 Results • Playbook in place continues to enhance TriMas’ value ̶ Established operating processes are maximizing results ̶ Great execution of growth and productivity programs ̶ Strategic plans in place to maximize portfolio • Double-digit sales and earnings growth despite chopp
Slide 5: Arminak Acquisition
Arminak Acquisition • Acquired 70% of Arminak & Associates for approximately $64 million • Designer and supplier of foamers, lotion pumps, fine mist sprayers and other packaging solutions • Complementary customer base provides Rieke greater access to the cosmetic, personal care, beauty aid and house
Slide 6: Financial Highlights
Financial Highlights
Slide 7: Fourth Quarter Summary
Fourth Quarter Summary • Sales increased 22% vs. Q4 2010 • Investments in new products, geographic expansion and bolt-on acquisitions driving positive results • Operating profit increased more than 40% with an operating profit margin improvement of 160 basis points as compared to Q4 2010 – Five of t
Slide 8: 2011 Full Year Summary
2011 Full Year Summary • Sales increased 20% vs. 2010 with growth in all segments • Organic growth approximately 14% as compared to 2010 • Investments in new products, geographic expansion and bolt-on acquisitions driving positive results • Productivity efforts continued to fund growth initiatives a
Slide 9: Working Capital
Working Capital Significant sales growth and geographic expansion adds complexity – process improvements ongoing. 9 Comments: • Achieved long-term target of approximately 13% of sales at year end • Significant growth and global expansion adds complexity • Made decision to increase inventory levels t
Slide 10: Capitalization and Total Indebtedness
10 • 2011 refinance efforts have significantly reduced rates and extended maturities • Reduced interest expense by $7.4M in 2011, as compared to 2010 • Term loan at historically low rate T o tal Deb t L e v e rage Ra ti o ($ in millions) Capitalization Total Indebtedness and Leverage Ratio As of Dec
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging
Packaging Results: • Q4 2011 sales increased as a result of the Innovative Molding acquisition and increased specialty systems sales, partially offset by lower industrial closure sales • Q4 2011 operating profit increased primarily as a result of higher sales levels, while Q4 margin declined due to
Slide 13: Energy
Energy ($ in millions) Results: • Q4 2011 and FY 2011 sales increased as a result of the South Texas Bolt & Fitting (STB&F) acquisition in November 2010, market share gains, incremental sales from newer branch facilities and improved customer demand • STB&F acquisition exceeding all expectations • O
Slide 14: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Capitalize on expectations for continued ramp-up of large frame, composite aircraft • Continue to expand sales globally • Drive ongoing lean initiatives to lower working
Slide 15: Engineered Components
Engineered Components ($ in millions) Key Initiatives: • Expand complementary product lines at well-site • Grow natural gas compression products and capitalize on shale opportunities • Develop additional capabilities of cylinder business to capture new markets • Continue to reduce costs and improve
Slide 16: Cequent (Asia Pacific & North America)
Cequent (Asia Pacific & North America) ($ in millions) $46.4 Results: • Q4 and FY 2011 sales in North America improved due to increased sales within all their major channels resulting from market share gains and new product introductions • North America operating profit and margin level increased du
Slide 17: 2011 Summary
2011 Summary • Strong organic growth through market share gains, product innovation, geographic expansion and increased end market demand • Acquisitions ahead of schedule with enhanced synergies and growth • Improved operating leverage and capital structure • Successfully refinanced and amended debt
Slide 18: Outlook and Summary
Outlook and Summary
Slide 19: 2012 Outlook
2012 Outlook As of 2/27/12 Headwinds Tailwinds Sales Growth 7% to 10% European economic environment, currency exchange New products, new markets, share gains, acquisitions Earnings Per Share, diluted $1.75 to $1.85 Restructuring and acquisition costs, new long- term incentive plan Productivity and f
Slide 20: Strategic Aspirations
Strategic Aspirations Strategic aspirations are our foundation for 2012. 20 • 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 21: 2011 commercial successes and investments position us for 2012
• New aircraft development and production ramp-up • Global sales expansion, including China • Expansion of product range for composite aircraft applications • New specialty dispensing and closure systems for consumer applications • Growth in Asian markets • Recent bolt-on acquisition synergies • New
Slide 22: Productivity Initiatives
Productivity Initiatives 22 Continuous productivity across all businesses and functional areas drives efficiency and funds growth. • 3%+ total gross cost productivity in 2012 plans • Global sourcing group expanding in Mexico, Brazil and India • Lean initiatives embraced across the businesses • Produ
Slide 23: TriMas Value Proposition
TriMas Value Proposition Growth > Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 23 Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value X X • Multiple projects in all businesses • Geographic • Product • Customer penetration •
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Appendix
Appendix
Slide 26: 2012 Additional Assumptions
2012 Additional Assumptions 2012 Estimates Interest expense $42 - $44 million Capital expenditures 3% - 4% of sales Tax rate 33% - 34% 26
Slide 27: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Dollars in thousands) 27 December 31, December 31, 2011 2010 Assets Current assets: Cash and cash equivalents............................................................. 88,920$ 46,370$ Receivables, net...........................................................
Slide 28: Capitalization
Capitalization 28 December 31, December 31, 2011 2010 Cash and Cash Equivalents……………………………..………………… 88,920$ 46,370$ Term loan…………………………………………………. 223,870 248,950 Revolving credit facilities……………………………….. - - Non-U.S. bank debt and other……………………….. 140 290 224,010 249,240 93/4% senior secured notes,
Slide 29: Consolidated Statement of Operations
Consolidated Statement of Operations (Dollars in thousands) 29 Three months ended Twelve months ended 2011 2010 2011 2010 Net sales................................................................................. 259,650$ 212,510$ 1,083,960$ 902,460$ Cost of sales....................................
Slide 30: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Dollars in thousands) 30 2011 2010 Cash Flows from Operating Activities: Net income......................................................................................... 60,360$ 45,270$ Adjustments to reconcile net income to net cash provided by operating acti
Slide 31: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) 31 Three months ended Three months ended December 31, 2011 December 31, 2010 (dollars in thousands, except per share amounts) Income Diluted EPS Income Diluted EPS Income and EPS from continuing ope
Slide 32: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) 32 (dolla s in thousands) 2011 2010 2011 2010 Operating profit from continuing operations, as reported………………………………………………………………..26,400$ 18,640$ 131,320$ 109,340$ Special Items to consider in evaluat
Slide 33: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops (Unaudited, dollars in thousands) 33 Three months ended 2011 2010 2011 2010 Packaging Net sales......................................................................................................... 47,350$ 37,560$ 185,240$ 171,170$ Op
Slide 34: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 34 (Unaudited, dollars in thousands) 60,360$ Interest expense, net (as defined).................................................................. 44,480 Income tax expense..................................................................................