Slide 1: Fourth Quarter 2017 Earnings Presentation
Fourth Quarter 2017 Earnings Presentation February 27, 2018
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 • Performance Review & Highlights • Segment Performance & Outlook • 2018 Guidance • Q&A Presenters Include: • Thomas Amato, President and Chief Executive Officer • Robert Zalupski, Chief Financial Officer • Sherry Lauderback, Vice President, Investor Relations 3
Slide 4: Performance Review & Highlights
Performance Review & Highlights
Slide 5: Fourth Quarter Performance
Fourth Quarter Performance Excludes Special Items Q4 2017 Q4 2016 Change Net Sa l es $195.2 $185.5 5.2% Opera ti ng Profi t $23.4 $19.0 22.7% Opera ti ng Profi t Ma rgi n 12.0% 10.3% 170 bps Net Income $14.5 $13.6 6.6% Di l uted Ea rni ngs Per Sha re $0.31 $0.30 3.3% • Increased net sales 5.2% with
Slide 6: Strong Financial Position
Strong Financial Position Q4 2017 Q4 2016 Change Tota l Debt $303.1 $374.7 ($71.6) Les s : Ca s h $27.6 $20.7 $6.9 Net Debt $275.5 $353.9 ($78.4) Free Ca s h Fl ow (1) $36.7 $33.2 $3.5 (2) LTM Adjus ted EBITDA $154.8 $145.7 $9.1 (3) Levera ge Ra ti o 1.9x 2.6x • Reduced Net Debt by $78.4 million to
Slide 7: Full Year 2017 Performance
Full Year 2017 Performance Excludes Special Items FY 2017 FY 2016 Change Net Sa l es $817.7 $794.0 3.0% Opera ti ng Profi t $106.3 $94.7 12.3% Opera ti ng Profi t Ma rgi n 13.0% 11.9% 110 bps Net Income $64.4 $57.7 11.5% Di l uted Ea rni ngs Per Sha re $1.40 $1.26 11.1% Free Ca s h Fl ow (1) $100.2
Slide 8: TriMas Strategy
TriMas Strategy TriMas unleashes value across our multi-industry businesses through our core strategies of... 1 2 Utilizing our TriMas Enhancing Long-term Business Model to Growth through Drive Performance Innovation 4 3 A Relentless Leveraging Commitment to Cash Enterprise-wide Conversion Opportuni
Slide 9: 2017 Notable Accomplishments
2017 Notable Accomplishments TriMas Segments Enterprise-wide Packaging: Commercializing several new lotion pumps and Consolidated, closed or relocated 13 facilities trigger sprayers for e-Commerce applications Packaging: Added North American capacity by launching a Streamlined annual incentive plans
Slide 10: Key Production Capacity Investments
Key Production Capacity Investments Packaging Engineered Components New Plant in San Miguel de Allende, Mexico Forging Line in Longview, Texas • Incremental capacity for Latin American and U.S. • Adds forge capacity for steel cylinders markets • Purchased used equipment and rebuilt to • Initial prod
Slide 11: Segment Performance & Outlook
Segment Performance & Outlook
Slide 12: Segment Performance Summary
Segment Performance Summary Fourth Quarter 2017 Full Year 2017 Net Sales Net Sales $195.2 $817.7 $794.0 +3.0% +5.2% $185.5 Q4 2016 Q4 2017 FY 2016 FY 2017 Segment Operating Profit Margin, Segment Operating Profit Margin, excluding Special Items excluding Special Items $134.0 $29.9 +10.1% +17.3% $121
Slide 13: Segment Performance & Outlook: Packaging and Aerospace
Segment Performance & Outlook Packaging Segment Aerospace Segment Excludes Special Items Q4 2017 Q4 2016 Excludes Special Items Q4 2017 Q4 2016 Net Sa l es $85.3 $82.8 Net Sa l es $42.8 $42.9 Opera ti ng Profi t $18.9 $20.4 Opera ti ng Profi t $6.5 $1.3 Opera ti ng Ma rgi n 22.2% 24.6% Opera ti ng M
Slide 14: Segment Performance & Outlook: Engineered Components and Energy
Segment Performance & Outlook Engineered Components Segment Energy Segment Excludes Special Items Q4 2017 Q4 2016 Excludes Special Items Q4 2017 Q4 2016 Net Sa l es $30.4 $23.8 Net Sa l es $36.7 $36.1 Opera ti ng Profi t $3.3 $2.8 Opera ti ng Profi t $1.1 $1.0 Opera ti ng Ma rgi n 11.0% 11.8% Opera
Slide 15: 2018 Guidance
SX TriMas 2018 Guidance
Slide 16: Updates for 2018
Updates for 2018 1 U.S. Tax Reform Impact 2 Streamlined Reporting Segments • Our Q4 income tax expense includes one-time discrete charges of $12.7 million, or $0.28 per share, related to: Engineered 2017 Packaging Aerospace Energy – deemed repatriation of unremitted foreign Components earnings – the
Slide 17: Full Year 2018 Guidance
Full Year 2018 Guidance As of 2/27/18 TriMas 2018 Guidance • Organic Sales Growth… ~ 3% • Earnings Per Share, diluted… $1.60 - $1.75 ̶ Effective tax rate: 22% - 24% ̶ Interest expense: ~ $14 million • Free Cash Flow(1)… > 120% of Net Income ̶ Capital expenditures: 3.0% - 3.5% of sales • Enterprise-w
Slide 18: Summary
Summary • Commitment to operational excellence and continuous improvement – Leverage the TriMas Business Model across our multi-industry businesses • Accelerate organic sales growth, complemented by disciplined bolt-on acquisitions – Provide innovative product solutions to our customers • Discipline
Slide 19: Summary: Capital Allocation Priorities
Summary Capital Allocation Priorities 1 Reinvest in our businesses Drive Performance, 2 Exceptional Cash Reduce net debt with a long-term target leverage ratio Conversion and below 2.0x Solid ROIC 3 4 Evaluate bolt-on acquisitions to Consider share augment TriMas’ repurchases and/or highest value di
Slide 20: Questions & Answers
SS TriMas Questions & Answers
Slide 21: Appendix
SX TriMas Appendix
Slide 22: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet December 31, December 31, 2017 2016 (unaudited) Assets Current assets: Cash and cash equivalents $ 27,580 $ 20,710 Receivables, net 112,220 111,570 Inventories 155,350 160,460 Prepaid expenses and other current assets 16,120 16,060 Total current assets 311,270 30
Slide 23: Consolidated Statement of Operations
Consolidated Statement of Operations Three months ended Twelve months ended December 31, December 31, 2017 2016 2017 2016 Net sales $ 195,210 $ 185,530 $ 817,740 $ 794,020 Cost of sales (146,070) (146,100) (598,600) (583,540) Gross profit 49,140 39,430 219,140 210,480 Selling, general and administra
Slide 24: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Year ended December 31, 2017 2016 Cash Flows from Operating Activities: Net income (loss) $ 30,960 $ (39,800) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Impairment of goodwill and indefinite-lived intangible assets - 9
Slide 25: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Twelve months ended December 31, December 31, 2017 2016 2017 2016 Packaging Net sales $ 85,310 $ 82,790 $ 344,570 $ 341,340 Operating profit $ 18,900 $ 18,500 $ 80,380 $ 77,840 Special Items to consider in evaluating operating profit: Busi
Slide 26: Additional Information Regarding Special Items
Additional Information Regarding Special Items Three months ended Twelve months ended December 31, December 31, 2017 2016 2017 2016 Net income (loss), as reported $ (4,010) $ (67,360) $ 30,960 $ (39,800) Special Items to consider in evaluating quality of net income: Business restructuring and severa
Slide 27: Additional Information Regarding Special Items
Additional Information Regarding Special Items Three months ended December 31, 2017 2016 Excluding Excluding As reported Special Items Special Items As reported Special Items Special Items Net cash provided by operating activities $ 47,410 $ 1,970 $ 49,380 $ 34,060 $ 8,090 $ 42,150 Less: Capital exp
Slide 28: Additional Information Regarding Special Items
Additional Information Regarding Special Items Three months ended Twelve months ended December 31, December 31, Unaudited 2017 2016 2017 2016 Net income (loss), as reported $ (4,010) $ (67,360) $ 30,960 $ (39,800) Depreciation expense 8,060 6,680 26,950 24,390 Amortization expense 5,000 5,140 19,920