Slide 1: Third Quarter 2017 Earnings Presentation
Third Quarter 2017 Earnings Presentation October 26, 2017
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 Company’s business, financial condition or future results,
Slide 3: Agenda
Agenda • Quarter Highlights and Performance • Segment Summary • Outlook • Questions and Answers • 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: Quarter Highlights
Quarter Highlights Q3 and YTD Performance - On Track Successfully Completed Refinancing • Continuing to gain traction on realignment • Issued $300 million in senior unsecured notes efforts and operational improvements due 2025 at 4.875% • Delivered another solid quarter of financial • Proceeds used
Slide 6: Q4 Outlook
Q4 Outlook External Factors Proactive Management Actions • Lamons’ customers delaying fall turnaround • Taking further actions to streamline TriMas activity into 2018 as they make up lost profits as a result of the hurricane – Packaging: Entered into an agreement to sell property in Mexico City • Cr
Slide 7: Third Quarter Performance
Third Quarter Performance Q3 2017 Q3 2016 Change Net Sales $209.3 $202.3 3.5% Operating Profit $28.1 $17.8 58.1% Operating Profit Margin 13.4% 8.8% 460 bps Excluding Special Items, Operating Profit would have been: $28.8 $28.1 2.3% Excluding Special Items, Operating Profit Margin would have been: 13
Slide 8: Third Quarter Performance
Third Quarter Performance Q3 2017 v. Q4 2016 Change v. Q3 2016 Change Debt $336.6 $374.7 ($38.1) $402.4 ($65.9) Less: Cash $24.8 $20.7 $4.1 $22.6 $2.2 Net Debt $311.8 $353.9 ($42.1) $379.9 ($68.1) Free Cash Flow (1) $22.0 $33.2 ($11.2) $11.2 $10.8 Capital Expenditures $7.2 $8.9 ($1.7) $9.4 ($2.2) No
Slide 9: Third Quarter YTD Summary
Third Quarter YTD Summary YTD 2017 YTD 2016 Change Net Sales $622.5 $608.5 2.3% Operating Profit $70.1 $52.9 32.5% Operating Profit Margin 11.3% 8.7% 260 bps Excluding Special Items, Operating Profit would have been: $82.9 $75.6 9.7% Excluding Special Items, Operating Profit Margin would have been:
Slide 10: Segment Summary
SS TriMas Segment Summary
Slide 11: Segment Performance
Segment Performance Packaging Segment Aerospace Segment Financial Summary Q3 2017 Q3 2016 Change Financial Summary Q3 2017 Q3 2016 Change Net Sales $89.6 $90.3 -0.9% Net Sales $48.6 $47.4 2.4% Operating Profit $23.1 $20.1 14.9% Operating Profit $7.8 $6.7 16.5% Operating Profit Margin 25.8% 22.2% 360
Slide 12: Segment Performance
Segment Performance Engineered Components Segment Energy Segment Financial Summary Q3 2017 Q3 2016 Change Financial Summary Q3 2017 Q3 2016 Change Net Sales $30.8 $26.3 17.0% Net Sales $40.4 $38.2 5.8% Operating Profit $3.3 $3.2 4.1% Operating Profit/(Loss) $1.2 ($1.9) n/m Operating Profit Margin 10
Slide 13: Segment Performance Summary
Segment Performance Summary Net Sales Segment Operating Profit Margin, excluding Special Items $209.3 +3.5% $202.3 $35.9 +3.0% $34.8 17.2% 17.1% Q3 2016 Q3 2017 Q3 2016 Q3 2017 Note: Please see the detailed reconciliation to GAAP results in the Appendix. Third quarter overall performance on plan. Un
Slide 14: Outlook
SX TriMas
Slide 15: Full Year 2017 Outlook
Full Year 2017 Outlook Full Year Outlook Considerations: (as of 10/26/17) (not considered in previous guidance) External Factors 2% – 4% • Hurricane Harvey Sales Growth No change ̶ Customer facility closures ̶ Fall turnarounds delayed $1.37 – $1.43 ̶ Increased raw material costs • Northern Californi
Slide 16: Summary: Capital Allocation Priorities
Summary Capital Allocation Priorities 1 Reinvest in our businesses 2 Drive Performance, Reduce net debt with a long-term target leverage ratio Exceptional Cash below 2.0x Generation and Solid ROIC 3 4 Evaluate bolt-on acquisitions to Consider share augment TriMas’ repurchases and/or highest value di
Slide 17: Questions and Answers
SS TriMas Questions and Answers
Slide 18: Appendix
SX TriMas Appendix
Slide 19: Updated FY 2017 Segment Assumptions
Updated FY 2017 Segment Assumptions Operating Profit Margin, Segment Sales(1) excluding Special Items Packaging(2) 1% – 2% 23% – 24% Aerospace 4% – 6% 13% – 15% (1%) – 1% 5% – 7% Energy Previous Previous (2%) – 0% 6% – 8% 5% – 8% 11% – 13% Engineered Components Previous Previous 2% – 5% 13% – 15% Up
Slide 20: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet September 30, December 31, 2017 2016 (unaudited) Assets Current assets: Cash and cash equivalents $ 24,760 $ 20,710 Receivables, net 125,410 111,570 Inventories 160,180 160,460 Prepaid expenses and other current assets 8,800 16,060 Total current assets 319,150 30
Slide 21: Consolidated Income Statement
Consolidated Income Statement Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net sales $ 209,330 $ 202,290 $ 622,530 $ 608,490 Cost of sales (150,500) (144,240) (452,530) (437,440) Gross profit 58,830 58,050 170,000 171,050 Selling, general and administrative ex
Slide 22: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Nine months ended September 30, 2017 2016 Cash Flows from Operating Activities: Net income $ 34,970 $ 27,560 Adjustments to reconcile net income to net cash provided by operating activities: Loss on dispositions of assets 3,210 1,350 Depreciation 18,890 17,710 Amo
Slide 23: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Packaging Net sales $ 89,560 $ 90,330 $ 259,260 $ 258,550 Operating profit $ 23,090 $ 20,090 $ 61,480 $ 59,340 Special Items to consider in evaluating operating profit: Busi
Slide 24: Additional Information Regarding Special Items
Additional Information Regarding Special Items Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net income, as reported $ 13,130 $ 8,780 $ 34,970 $ 27,560 Special Items to consider in evaluating quality of net income: Business restructuring and severance costs 440
Slide 25: Additional Information Regarding Special Items
Additional Information Regarding Special Items Three months ended September 30, 2017 2016 Excluding Excluding As reported Special Items Special Items As reported Special Items Special Items Net cash provided by operating activities $ 23,060 $ 6,170 $ 29,230 $ 13,470 $ 7,160 $ 20,630 Less: Capital ex
Slide 26: LTM Bank EBITDA and Ratios
LTM Bank EBITDA and Ratios September 30, 2017 Net loss for the twelve months ended $ (32,390) Interest expense 13,850 Depreciation and amortization 45,630 Impairment charges and asset write-offs 104,610 Non-cash compensation expense 7,770 Other non-cash expenses or losses 2,080 Non-recurring expense