Slide 1: Third Quarter 2016 Earnings Presentation
Third Quarter 2016 Earnings Presentation October 27, 2016
Slide 2: Forward-Looking Statement
Forward-Looking Statement 2 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
Slide 3: Agenda
Agenda 3 • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix Presenters Include: • Thomas Amato, President and Chief Executive Officer • Robert Zalupski, Chief Financial Officer • Sherry Lauderback, Vice President, Investor Relations
Slide 4: Opening Remarks
Opening Remarks
Slide 5: Opening Remarks – First 100 Days
5 Implementing a data-driven, fact-based review process to set TriMas’ future direction. Opening Remarks – First 100 Days First 100 Days Focus Actions Visited 17 facilities and performed on-site operational assessments Accelerating opportunities to further optimize cost structure and improve operati
Slide 6: Opening Remarks – Key Observations
6 TriMas has strong brand names, innovative products and process technologies, and dedicated employees. TriMas’ businesses brand names are well-recognized and respected within the end markets we serve Our product technology and processing know-how, customer and regulatory approvals, and establis
Slide 7: Financial Highlights
Financial Highlights
Slide 8: Third Quarter Summary
8 Third Quarter Summary Note: Please see the Appendix for a detailed reconciliation to GAAP results. (Unaudited, dollars in millions, except per share amounts) Expanded operating profit margin, excluding Special Items, despite continued end market weakness. ( fro m co ntinuing o perat io ns) Q3 2016
Slide 9: EPS Bridge from Q3 2015 to Q3 2016
9 • Significant year-over-year impact related to lower energy-facing business volume • Cost reduction actions, including impacts of the Financial Improvement Plan, helping to offset lower sales volumes • Tax rate higher due to mix of more income in the United States versus lower-tax foreign jurisdic
Slide 10: Third Quarter Summary: Free Cash Flow
10 Third Quarter Summary (1) Free Cash Flow is defined as Net Cash Provided by Operating Activities of Continuing Operations, excluding the cash impact of Special Items, less Capital Expenditures. (Unaudited, dollars in millions) Increased attention on Free Cash Flow as part of the new TriMas Busine
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging Segment
12 Packaging Segment • Excluding the impact of unfavorable currency exchange, sales increased more than 5% as compared to prior year • Increased sales to the health, beauty and home care, and industrial end markets • Profit and related margin, excluding Special Items, declined slightly due to higher
Slide 13: Aerospace Segment
13 Aerospace Segment Quarterly Comments (Unaudited, dollars in millions) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Intensifying focus on manufacturing performance and delivery improvements. Actions Markets, Products & Brands • Executing plan to increase manufacturi
Slide 14: Energy Segment
14 Energy Segment Quarterly Comments (Unaudited, dollars in millions) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Accelerating performance improvement plans. Actions Markets, Products & Brands • Sales decreased due to reduced demand from downstream oil and gas custom
Slide 15: Engineered Components Segment
15 Engineered Components Segment Quarterly Comments (Unaudited, dollars in millions) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Tight cost management mitigating impact of lower end market volume. Actions Markets, Products & Brands • Cylinder sales declined due to we
Slide 16: Segment Performance Summary
16 Segment Performance Summary (Unaudited, dollars in millions) Operating Profit Margin (excluding Special Items) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Historical figures may be found in the corresponding earnings releases located on www.trimascorp.com under th
Slide 17: Outlook and Summary
Outlook and Summary
Slide 18: Updated FY 2016 Segment Assumptions
18 Updated FY 2016 Segment Assumptions Sales(1) Operating Profit Margin (excl. Special Items) Full Year 2016 Commentary Packaging 2% – 3% Previous 3% – 5% 23% – 24% • Stronger U.S. dollar and customer product launch delays into 2017 are moderating sales growth expectations • Maintaining targeted pro
Slide 19: Updated FY 2016 Outlook
19 Updated FY 2016 Outlook Full Year Outlook (as of 7/28/16) Full Year Outlook (as of 10/27/16) Net Sales (4%) – (7%) (6%) – (8%) Earnings Per Share, diluted (excl. Special Items) $1.22 – $1.30 $1.24 – $1.28 Free Cash Flow(1) (excl. Special Items) $55 – $65 million $55 – $65 million (1) Free Cash Fl
Slide 20: 2017 Preliminary Thoughts
20 2017 Preliminary Thoughts Anticipate earnings expansion in the face of end market challenges. TriMas Segment Preliminary Comments Packaging • Anticipate low to mid single-digit sales growth dependent on GDP growth, ramp of customer new product launches and the impact of currency exchange • Contin
Slide 21: Summary
21 Summary Focused on operational execution for the remainder of 2016 and into the new year. • Operate under the new TriMas Business Model, with a nearer-term focus on driving performance improvement within the Energy and Aerospace segments • Focus on managing cash flow and optimizing operational st
Slide 22: Questions and Answers
Questions and Answers
Slide 23: Appendix
Appendix
Slide 24: Third Quarter YTD Summary
24 Third Quarter YTD Summary (Unaudited, dollars in millions, except per share amounts) • YTD 2016 sales declined approximately 9% as compared to YTD 2015 – weakness in the oil-related and industrial end markets, aerospace distributor volumes and unfavorable currency exchange more than offset organi
Slide 25: Updated FY 2016 Additional Assumptions
Updated FY 2016 Additional Assumptions 25 Full Year Outlook (Updated as of 10/27/16) Interest Expense $13 – $15 million Capital Expenditures ~4% of sales Tax Rate 32% – 33% Corporate Expense – • Cash Costs • Stock Compensation $21 – $22 million $7 million From Continuing Operations Note: All of the
Slide 26: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 26 (Dollars in thousands) September 30, December 31, 2016 2015 (unaudited) Assets Current assets: Cash and cash equivalents............................................................ 22,550$ 19,450$ Receivables, net...............................................
Slide 27: Consolidated Statement of Operations
Consolidated Statement of Operations 27 (Unaudited, dollars in thousands, except for per share amounts) Three months ended Nine months ended 2016 2015 2016 2015 Net sales................................................................................................. 202,290$ 222,190$ 608,490$ 671,2
Slide 28: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow 28 (Unaudited, dollars in thousands) 2016 2015 Cash Flows from Operating Activities: Net income.............................................................................................................................. 27,560$ 27,400$ Loss from discontinued ope
Slide 29: Company & Business Segment Financial Information
Company & Business Segment Financial Information 29 (Unaudited, dollars in thousands, from continuing operations) Three months ended 2016 2015 2016 2015 Packaging Net sales................................................................................................................................
Slide 30: Additional Information Regarding Special Items
Additional Information Regarding Special Items 30 (Unaudited, dollars in thousands, except for per share amounts) Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Income from continuing operations, as reported.......................................................
Slide 31: Additional Information Regarding Special Items
Additional Information Regarding Special Items 31 (Unaudited, dollars in thousands) As reported Special Items Excluding Special Items As reported Special Items Excluding Special Items Net cash provided by operating activities of continuing operations..................................................
Slide 32: Current Debt Structure
32 Current Debt Structure (Unaudited, dollars in thousands) TriMas had $100.9 million of cash and available liquidity under its revolving credit and accounts receivable facilities. September 30, December 31, 2016 2015 Cash and Cash Equivalents……………………………..………………… 22,550$ 19,450$ Credit Agreement…………
Slide 33: LTM Bank EBITDA
LTM Bank EBITDA 33 (Unaudited, dollars in thousands) (1) As defined in the Credit Agreement dated June 30, 2015. (33,240)$ Interest expense....................................................................................................................... 13,680 Income tax expense................