Slide 1: First Quarter 2019 Earnings Presentation
First Quarter 2019 Earnings Presentation April 30, 2019
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: TriMas Overview
TriMas Overview Segments Brands Packaging Net Sales: $368.8M Op. Profit/Margin: $83.7M, 22.7% Net Sales by Segment Operating Profit(1) Amortization Exp.(4): $9.2M, 2.5% Aerospace Aerospace Packaging 18% 59% 86% 19% 18% Aerospace 42% 5% Packaging 56% 26% 22% Specialty 7% Products Net Sales: $156.9M 4
Slide 4: TriMas Strategy
TriMas Strategy TriMas unleashes shareholder value across our multi-industry businesses through our strategy of... 1 2 Leveraging the Enhancing Long-term TriMas Business Model Growth through to Drive Performance Innovation 4 3 Relentless Disciplined Approach to Commitment to Capital Allocation Cash
Slide 5: Q1 2019 Results: Q1 Highlights
Q1 2019 Results Q1 Highlights • Q1 performance in line with our expectations which considered comparisons to a strong Q1 2018 and anticipated timing of new product launches in 2019 • Continued solid performance and timing of discrete tax benefits led to 12.2% increase in EPS Net Sales Operating Prof
Slide 6: Q1 2019 Results: Additional Highlights
Q1 2019 Results Additional Highlights • Q1 is traditionally our lowest FCF quarter; as planned, FCF was lower than prior year primarily due to timing of capex, a federal tax refund received in Q1 2018, and slightly higher investment in working capital • Continue to expect 2019 FCF conversion to be g
Slide 7: Taplast Acquisition
Taplast Acquisition Sample Products • Designer and manufacturer of dispensers, closures and containers • Long track record of innovation and engineered designs • Blue-chip customer base predominately in Europe and the Americas Folding Spout Foamer • Beauty, personal care, household and food/coffee a
Slide 8: Segment Results
SX TriMas Segment Results
Slide 9: Packaging Segment – Q1 2019
Packaging Segment – Q1 2019 Net Sales Operating Profit +0.7% -4.7% Organic -0.2%, Acquisitions +3.2%, Fx -2.3% $88.2 $88.8 $ millions $ millions $19.6 $18.7 22.2% 21.0% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Quarterly Takeaways Brands & Applications • Q1 performance as planned • Sales increased as a result
Slide 10: Aerospace Segment – Q1 2019
Aerospace Segment – Q1 2019 Net Sales Operating Profit +1.4% +34.6% $ millions $ millions $37.8 $38.3 $4.6 $6.2 12.1% 16.1% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Quarterly Takeaways Brands & Applications • Sales increased due to steady demand levels for fasteners • Operating profit increased due to produc
Slide 11: Specialty Products Segment – Q1 2019
Specialty Products Segment – Q1 2019 Net Sales Operating Profit +3.3% -2.8% $ millions $ millions $91.1 $94.1 $11.2 $10.9 12.3% 11.5% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Quarterly Takeaways Brands & Applications • Increased sales driven by capturing higher end market (1) demand • Impact of increased sal
Slide 12: Financial Position & Outlook
Financial Position & Outlook
Slide 13: Strong Balance Sheet and Available Liquidity
Strong Balance Sheet and Available Liquidity Continued Strength of Financial Position • Net debt and leverage remain below target levels even after considering cash used to fund the acquisition of Plastic Srl and share repurchases during the past two quarters • Strong balance sheet, cash conversion
Slide 14: Reaffirming 2019 Full Year Guidance
Reaffirming 2019 Full Year Guidance As of 4/30/19 TriMas FY 2019 Guidance Organic Sales Growth 3% - 5% EPS, diluted $1.82 - $1.92 - Effective tax rate: 22% - 23% - Interest expense: ~$14 million Free Cash Flow(1) > 100% of Net Income - Capex: ~3.5% of sales Enterprise-wide Expenses: - Corporate expe
Slide 15: Levers for Continued Share Growth
Levers for Continued Share Growth Performance under the TriMas Business Model has allowed us to focus on all four value drivers. 1 2 3 4 Continuous Capital Shaping Innovation Improvement Allocation TriMas • TriMas Business Model • Investing in growth • Reinvesting in factory • Accelerating the focus
Slide 16: SX TriMas
SX TriMas
Slide 17: Appendix
SX TriMas Appendix
Slide 18: 2019 Segment Guidance Reaffirmed
2019 Segment Guidance Reaffirmed As of 4/30/19 Organic Sales Operating Segment Growth(1) Profit Margin Packaging(2) 3% – 5% 22% – 23% Aerospace(3) 3% – 4% 16% – 17% Specialty Products(3) 4% – 6% 11% – 13% Balanced performance through our diverse portfolio of businesses. Note: All of the figures and
Slide 19: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet March 31, December 31, 2019 2018 (unaudited) Assets Current assets: Cash and cash equivalents $ 84,410 $ 108,150 Receivables, net 139,360 123,110 Inventories 179,170 173,120 Prepaid expenses and other current assets 7,020 7,430 Total current assets 409,960 411,81
Slide 20: Consolidated Statement of Income
Consolidated Statement of Income Three months ended March 31, 2019 2018 Net sales $ 221,290 $ 217,100 Cost of sales (161,470) (156,720) Gross profit 59,820 60,380 Selling, general and administrative expenses (33,970) (25,170) Operating profit 25,850 35,210 Other expense, net: Interest expense (3,440
Slide 21: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Three months ended March 31, 2019 2018 Cash Flows from Operating Activities: Net income $ 19,090 $ 24,320 Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition impact: (Gain) loss on dispositions of assets 50 (10) De
Slide 22: Company and Segment Financial Information
Company and Segment Financial Information Three months ended March 31, 2019 2018 Packaging Net sales $ 88,840 $ 88,200 Operating profit $ 17,640 $ 19,580 Special Items to consider in evaluating operating profit: Purchase accounting costs 1,020 - Adjusted operating profit $ 18,660 $ 19,580 Aerospace
Slide 23: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended March 31, 2019 2018 Net income, as reported $ 19,090 $ 24,320 Special Items to consider in evaluating quality of net income: M&A diligence and transaction costs 1,120 - Purchase accounting costs 1,020 - Business restructuring and severan
Slide 24: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended March 31, 2019 2018 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities $ 8,080 1,130 $ 9,210 $ 16,240 $ 1,350 $ 17,590 Less: Capital expenditures (6,640) - (6,640) (3,170
Slide 25: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended March 31, March 31, 2019 2018 2019 2018 Net income, as reported $ 19,090 $ 24,320 $ 78,070 $ 48,290 Depreciation expense 6,230 6,330 24,480 27,480 Amortization expense 4,930 4,910 19,460 19,840 Interest expense 3,440