Slide 1: Third Quarter 2007 Earnings Presentation
Third Quarter 2007 Earnings Presentation INNOVATION • INDUSTRY • GROWTH November 6, 2007
Slide 2: Forward-looking statements
This document contains “forward-looking” statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business. Forward-looking statements include certain anticipated, believed, planned, forecasted, expected, targeted and estimated resu
Slide 3: 2007 Third Quarter Summary
2007 Third Quarter Summary Record third quarter sales and earnings Third quarter revenues were $262.2 million, increasing $17.6 million or 7.2% from Q3-2006 Operating profit improved 6.1% to $27.3 million Adjusted EBITDA from continuing operations was $37.1 million, up $2.9 million or 8.4% over Q3-2
Slide 4: Third Quarter 2007 Operating Highlights
Third Quarter 2007 Operating Highlights INNOVATION • INDUSTRY • GROWTH
Slide 5: Packaging Systems
Packaging Systems Net Sales Adjusted EBITDA Q3-07 Q3-06 Operating Profit $53.4 $51.8 ($ in millions) Q3-07 Q3-06 $13.4 $11.3 Q3-07 Q3-06 $9.9 $8.1 -3.1% -15.5% -18.4% Sales decreased due to lower demand for core industrial closure products for the paint, construction and chemical markets Laminates b
Slide 6: Energy Products
Energy Products Strong specialty gasket sales to refinery and petrochemical industries due to product expansion and continued high levels of capacity utilization Sales of engine and well-site repair parts declined between years due to sluggish natural gas drilling activity in Western Canada Continue
Slide 7: Industrial Specialties
Industrial Specialties Q3-07 Q3-06 $44.6 $54.6 Q3-07 Q3-06 $11.1 $13.5 Q3-07 Q3-06 $9.9 $11.9 +22.3% +21.7% +19.8% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales of aerospace products continue to be strong due to the introduction of new products and a strong market Demand for indus
Slide 8: RV & Trailer Products
RV & Trailer Products Q3-07 Q3-06 $43.3 $45.9 Q3-07 Q3-06 $4.5 $6.5 Q3-07 Q3-06 $2.9 $4.3 +6.0% +44.3% +46.2% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales increased 6.0% vs. a weak end market due to sales in the electrical products business Profitability increase driven by prior
Slide 9: Recreational Accessories
Recreational Accessories Q3-07 Q3-06 $64.8 $69.6 Q3-07 Q3-06 $6.5 $7.7 Q3-07 Q3-06 $3.9 $4.9 +7.4% +17.9% +25.8% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales for group increased 7.4% vs. weak end market due to introduction of new programs and market share gains Operating profit a
Slide 10: Third Quarter 2007 Financial Highlights
Third Quarter 2007 Financial Highlights INNOVATION • INDUSTRY • GROWTH
Slide 11: 2007 Third Quarter Results: Net Sales
2007 Third Quarter Results ($ in thousands) 2007 2006 Change Net Sales Packaging Systems. 51,770 $ 53,410 $ -3.1% Energy Products 40,330 38,500 4.8% Industrial Specialties 54,560 44,600 22.3% RV & Trailer Products 45,940 43,320 6.0% Recreational Accessories 69,580 64,760 7.4% Net sales from continui
Slide 12: 2007 Third Quarter Results: Adjusted EBITDA
2007 Third Quarter Results ($ in thousands) (1) The Company has established Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") as an indicator of our operating performance and as a measure of our cash generating capabilities. The Company defines “Adjusted EBITDA” as net income
Slide 13: TriMas Capitalization
TriMas Capitalization As of September 30, 2007, TriMas had $4.2 million in cash and approximately $112.5 million of available liquidity under its existing revolving credit facilities and securitization program ($ in thousands) September 30, 2007 September 30, 2006 December 31, 2006 Cash and Cash Equ
Slide 14: Third Quarter 2007 Summary
Third Quarter 2007 Summary Positive results of our growth strategies - revenue growth at 7.2% in Q3-2007 Improved year-over-year earnings performance for 8th consecutive quarter Short-term weakness in certain end markets Paint and construction industries Continued low levels of natural gas drilling
Slide 15: TriMas Initiatives
TriMas Initiatives Focus on continued organic growth Develop new, innovative products for growing end markets – Medical, Specialty Packaging, Aerospace and Energy Expand internationally to service existing customers and acquire new customers Cross-sell product portfolio across customer bases Leverag
Slide 16: Q & A
Q & A INNOVATION • INDUSTRY • GROWTH
Slide 17: Appendix
Appendix INNOVATION • INDUSTRY • GROWTH
Slide 18: Balance Sheet
Balance Sheet (Unaudited - $ in thousands) September 30, December 31, 2007 2006 Current assets: Cash and cash equivalents 4,160 $ 3,600 $ Receivables, net . 105,600 99,240 Inventories, net 180,390 165,360 Deferred income taxes. 24,310 24,310 Prepaid expenses and other current assets 7,420 7,320 Asse
Slide 19: Statement of Operations
Statement of Operations (Unaudited - $ in thousands) 2007 2006 2007 2006 Net sales 262,180 $ 244,590 $ 839,700 $ 797,260 $ Cost of sales (190,380) (177,690) (607,310) (581,960) Gross profit. 71,800 66,900 232,390 215,300 Selling, general and administrative expenses (42,980) (41,670) (134,430) (130,3
Slide 20: Statement of Operations (cont'd)
(Unaudited - $ in thousands, except for per share amounts) Statement of Operations (cont’d) 2007 2006 2007 2006 Income (loss) from continuing operations 6,580 $ (2,260) $ 11,780 $ 9,210 $ Loss from discontinued operations, net of income taxes. - (10,870) (1,340) (16,240) Net income (loss) 6,580 $ (1
Slide 21: Cash Flow Highlights
Cash Flow Highlights (Unaudited - $ in thousands) 2007 2006 Cash provided by operating activities 46,880 $ 26,460 $ Capital expenditures (22,520) (16,440) Acquisition of leased assets. (29,960) (3,140) Acquisition of businesses, net of cash acquired (13,540) - Net proceeds from disposition of busine
Slide 22: 2007 Third Quarter Results
2007 Third Quarter Results (1) The Company has established Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") as an indicator of our operating performance and as a measure of our cash generating capabilities. The Company defines “Adjusted EBITDA” as net income before interest,
Slide 23: Reconciliation of Non-GAAP Measure Adjusted EBITDA
Reconciliation of Non-GAAP Measure Adjusted EBITDA (1) The Company defines Adjusted EBITDA as net income (loss) before cumulative effect of accounting change, interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment write-offs, non-cash losses on sale-leaseback of property
Slide 24: Impact of Costs and Expenses Related to Use of IPO Proceeds
Impact of Costs and Expenses Related to Use of IPO Proceeds Operating Income, Income, Earnings Per Share - Diluted and Adjusted EBITDA, all from continuing operations, as adjusted for the impacts of transaction costs and expenses associated with the use of proceeds resulting from completion of the C
Slide 25: Key Covenant Calculations
(Unaudited - $ in thousands) Key Covenant Calculations Leverage Ratio Total Indebtedness at September 30, 2007 (1) 668,820 $ LTM EBITDA, as defined (1) 162,630 $ Leverage Ratio - Actual 4.11 X Leverage Ratio - Covenant 5.50 X Coverage Ratio LTM EBITDA, as defined (1) 162,630 $ Cash Interest Expense
Slide 26: LTM EBITDA as Defined in Credit Agreement
(Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended September 30, 2007 (111,440) $ Interest expense, net (as defined) 72,660 Income tax expense 6,160 Depreciation and amortization . 39,300 Extraordinary non-cash charges 116,410 Heartla