Slide 1: Second Quarter 2017 Earnings Presentation
Second Quarter 2017 Earnings Presentation July 27, 2017
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 Company’s business, financial condition or f
Slide 3: Agenda
Agenda 1. Quarter Highlights and Performance 2. Segment Summary 3. Outlook 4. Questions and Answers 5. Appendix Presenters Include: • Thomas Amato, President and Chief Executive Officer • Robert Zalupski, Chief Financial Officer • Sherry Lauderback, Vice President, Investor Relations 3
Slide 4: Quarter Highlights and Performance
Quarter Highlights and Performance
Slide 5: Second Quarter Highlights
Second Quarter Highlights • Performance On Plan Leveraging TriMas Business Model to drive results Tangible improvements in Aerospace and Energy Commitment to Environmental, Health & Safety • Continued strong cash flow conversion Further debt reduction through performance and Talent TriMas Annual Goa
Slide 6: Second Quarter Performance
Second Quarter Performance (Unaudited, dollars in millions, except per share amounts) Q2 2017 Q2 2016 Change Net Sales $213.4 $203.3 4.9% Operating Profit $26.3 $18.7 40.7% Operating Profit Margin 12.3% 9.2% 310 b ps Excluding Special Items, Operating Profit would have b een: $30.3 $25.7 18.2% Exclu
Slide 7: Second Quarter Performance
Second Quarter Performance (Unaudited, dollars in millions) Q2 2017 v. Q4 2016 Change v. Q2 2016 Change Debt $346.5 $374.7 ($28.2) $406.3 ($59.8) Less: Cash $22.7 $20.7 $2.0 $23.7 ($1.0) Net Debt $323.8 $353.9 ($30.1) $382.6 ($58.8) (1) Leverage Ratio 2.3x 2.6x 2.8x (2) Cash & Available Liquidity $1
Slide 8: Second Quarter YTD Summary
Second Quarter YTD Summary (Unaudited, dollars in millions, except per share amounts) YTD 2017 YTD 2016 Change Net Sales $413.2 $406.2 1.7% Operating Profit $42.0 $35.1 19.6% Operating Profit Margin 10.2% 8.6% 160 b ps Excluding Special Items, Operating Profit would have b een: $54.2 $47.5 14.1% Exc
Slide 9: Segment Summary
Ss TriMias Segment Summary
Slide 10: Packaging Segment
Packaging Segment (Unaudited, dollars in millions) Financial Summary Q2 2017 Q2 2016 Change Sales $88.7 $88.1 0.7% Operating Profit, excluding Special Items $21.5 $22.0 -2.1% Operating Margin, excluding Special Items 24.3% 25.0% -70 bps Note: Please see the Appendix for a detailed reconciliation to
Slide 11: Aerospace Segment
Aerospace Segment (Unaudited, dollars in millions) Financial Summary Q2 2017 Q2 2016 Change Sales $47.6 $44.1 7.9% Operating Profit, excluding Special Items $6.9 $5.0 37.5% Operating Margin, excluding Special Items 14.6% 11.4% 320 bps Note: Please see the Appendix for a detailed reconciliation to GA
Slide 12: Energy Segment
Energy Segment (Unaudited, dollars in millions) Financial Summary Q2 2017 Q2 2016 Change Sales $43.5 $40.0 8.9% Operating Profit, excluding Special Items $4.0 $1.8 122.2% Operating Margin, excluding Special Items 9.2% 4.5% 470 bps Note: Please see the Appendix for a detailed reconciliation to GAAP r
Slide 13: Engineered Components Segment
Engineered Components Segment (Unaudited, dollars in millions) Financial Summary Q2 2017 Q2 2016 Change Sales $33.6 $31.2 7.7% Operating Profit, excluding Special Items $4.7 $3.9 21.4% Operating Margin, excluding Special Items 14.0% 12.4% 160 bps Note: Please see the Appendix for a detailed reconcil
Slide 14: Segment Performance Summary
Segment Performance Summary (Unaudited, dollars in millions) Segment Operating Profit Margin, Net Sales excluding Special Items $213 $203 $37 +4.9% +13.6% $33 16.1% 17.4% Q2 2016 Q2 2017 Q2 2016 Q2 2017 Note: Please see the detailed reconciliation to GAAP results in the Appendix. TriMas Business Mod
Slide 15: Outlook
Ss TriMias
Slide 16: FY 2017 Outlook
FY 2017 Outlook Full Year Outlook (as of 7/27/17) Sales Growth 2% – 4% Earnings Per Share, diluted $1.35 – $1.45 Free Cash Flow(1) > 100% of net income Note: All of the figures on this slide exclude any current and future Special Items. (1) Free Cash Flow is defined as Net Cash Provided by/Used for
Slide 17: Closing Comments
Closing Comments TriMas Cash Priorities Commitment to 1. Reinvest in our businesses Environmental, Health & Safety 2. Reduce net debt with a long-term TriMas Annual Goal Drive Performance, target leverage ratio of <2.0x Talent Development Business Setting & Exceptional Cash Measurement Model Generat
Slide 18: Questions and Answers
Ss TriMias Questions and Answers
Slide 19: Appendix
Ss TriMias
Slide 20: Updated FY 2017 Segment Assumptions
Updated FY 2017 Segment Assumptions From Continuing Operations (Updated as of 7/27/17) Operating Profit Margin, Segment Sales(1) excluding Special Items 1% – 2% Packaging 23% – 24% Previous 2% – 4% Aerospace 4% – 6% 13% – 15% (2%) – 0% 6% – 8% Energy Previous Previous (5%) – (2%) 5% – 7% Engineered
Slide 21: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Dollars in thousands) June 30, December 31, 2017 2016 (unaudited) Assets Current assets: Cash and cash equivalents............................................... $ 22,680 $ 20,710 Receivables, net.............................................................. 123
Slide 22: Consolidated Income Statement
Consolidated Income Statement (Unaudited, dollars in thousands, except for per share amounts) Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Net sales........................................................................... $ 213,370 $ 203,320 $ 413,200 $ 406,200 Cost of
Slide 23: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) Six months ended June 30, 2017 2016 Cash Flows from Operating Activities: Net income..................................................................................................................... $ 21,840 $ 18,780 Adjustment
Slide 24: Company and Segment Financial Information
Company and Segment Financial Information (Unaudited, dollars in thousands) Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Packaging Net sales................................................................................................... $ 88,740 $ 88,110 $ 169,700 $ 1
Slide 25: Additional Information Regarding Special Items
Additional Information Regarding Special Items (Unaudited, dollars in thousands, except for per share amounts) Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Net income, as reported............................................................................................
Slide 26: Additional Information Regarding Special Items
Additional Information Regarding Special Items (Unaudited, dollars in thousands) Three months ended June 30, 2017 2016 Excluding Excluding As reported Special Items Special Items As reported Special Items Special Items Net cash provided by operating activities.................................. $ 27,
Slide 27: LTM Bank EBITDA and Ratios
LTM Bank EBITDA and Ratios (Unaudited, dollars in thousands) June 30, December 31, 2017 2016 Net loss for the twelve months ended……………………………......................... $ (36,740) $ (39,800) Interest expense........................................................................................ 13,940