Slide 1: Second Quarter 2020 Earnings Presentation
Second Quarter 2020 Earnings Presentation July 30, 2020 1
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 TriMas’ business, financial condition or future results, involv
Slide 3: TriMas Overview
TriMas Overview • Strong Brand Names • Diverse End Markets • Innovative Product Solutions • Relentless Commitment to Cash Conversion 26% Aerospace 58% • Commercial Jet • Military & Defense Packaging • Business Jet • Beauty & Personal Care • Home Care • Pharmaceutical & Nutraceutical 16% • Food & Bev
Slide 4: Q2 2020 Results
Q2 2020 Results YOY Growth % Adjusted for Special Items Q2 2020 Q2 2019 Organic Acquisitions Fx Total Net Sales $199.6 $190.8 Packaging 19.4% 6.8% -2.3% 23.9% Aerospace -25.8% 11.9% -13.9% Operating Profit $27.5 $28.0 Specialty Products -24.7% -24.7% Operating Profit Margin 13.8% 14.7% Total TriMas
Slide 5: YTD Q2 2020 Results
YTD Q2 2020 Results YOY Growth % Adjusted for Special Items Q2 2020 YTD Q2 2019 YTD Organic Acquisitions Fx Total Net Sales $382.3 $364.2 Packaging 12.9% 7.5% -1.7% 18.7% Aerospace -13.1% 9.4% -3.7% Operating Profit $49.5 $50.4 Specialty Products-18.8% -18.8% Operating Profit Margin 12.9% 13.8% Tota
Slide 6: Free Cash Flow & Net Debt
Free Cash Flow & Net Debt Continued Strong Financial Position • TriMas characteristics aligned with a deleveraging model – capex light, low annualized interest and no principal amortization • Generated strong free cash flow from continuing operations in Q2 – Q2 2020 Free Cash Flow(1) of $25.2 millio
Slide 7: Segment Results
SS TriMas Segment Results
Slide 8: Q2 Actions
Q2 Actions Realignment Actions Asbestos Accounting Policy • Executed practical and necessary realignment • Estimated liability for asbestos-related defense actions, primarily in the Aerospace and Specialty costs updated due to change in accounting policy Products segments – relates to legacy activit
Slide 9: TriMas Packaging Segment
TriMas Packaging Segment Adjusted for Special Items Q2 2020 Q2 2019 Net Sales $128.8 $104.0 Operating Profit $27.2 $22.9 Operating Margin 21.1% 22.0% (1) Adjusted EBITDA $35.3 $30.3 Adjusted EBITDA Margin 27.4% 29.1% Quarterly Takeaways • Demand for applications that help fight the spread of germs a
Slide 10: TriMas Aerospace Segment
TriMas Aerospace Segment Adjusted for Special Items Q2 2020 Q2 2019 Net Sales $42.6 $49.5 Operating Profit $4.3 $7.7 Operating Margin 10.1% 15.5% Adjusted EBITDA(1) $8.9 $11.4 Adjusted EBITDA Margin 20.8% 23.1% Quarterly Takeaways • Sales declined due to the impact of significantly reduced aircraft
Slide 11: TriMas Specialty Products Segment
TriMas Specialty Products Segment Adjusted for Special Items Q2 2020 Q2 2019 Net Sales $28.1 $37.3 Operating Profit $3.8 $5.4 Operating Margin 13.4% 14.5% Adjusted EBITDA(1) $4.7 $6.3 Adjusted EBITDA Margin 16.9% 16.8% Quarterly Takeaways • Continued lower industrial demand and oil & gas end market
Slide 12: Summary
SS TriMas Summary
Slide 13: Forward Expectations
Forward Expectations 2H 2020 v. 2H 2019 Sales Growth 2021+ Value Drivers TriMas Total Continue to leverage secular growth trends in products for hand washing and personal TriMas Packaging Group +15% to +20% hygiene applications TriMas Aerospace Group -20% to -30% Benefit from operating leverage
Slide 14: SS TriMas
SS TriMas
Slide 15: Appendix
SX TriMas Appendix
Slide 16: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet June 30, December 31, 2020 2019 (unaudited) Assets Current assets: Cash and cash equivalents $ 65,250 $ 172,470 Receivables, net 123,320 108,860 Inventories 140,890 132,660 Prepaid expenses and other current assets 18,900 20,050 Total current assets 348,360 434,0
Slide 17: Consolidated Statement of Operations
Consolidated Statement of Operations Three months ended Six months ended June 30, June 30, 2020 2019 2020 2019 (unaudited) Net sales $ 199,550 $ 190,830 $ 382,340 $ 364,200 Cost of sales (162,320) (137,040) (298,740) (263,620) Gross profit 37,230 53,790 83,600 100,580 Selling, general and administra
Slide 18: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Six months ended June 30, 2020 2019 Cash Flows from Operating Activities: Net income (loss) $ (2,580) $ 41,110 Income from discontinued operations - 7,840 Income (loss) from continuing operations (2,580) 33,270 Adjustments to reconcile income (loss) from continui
Slide 19: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Six months ended June 30, June 30, 2020 2019 2020 2019 Packaging Net sales $ 128,830 $ 103,990 $ 228,880 $ 192,830 Operating profit $ 24,040 $ 22,640 $ 42,320 $ 40,280 Special Items to consider in evaluating operating profit: Purchase acco
Slide 20: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Six months ended June 30, June 30, 2020 2019 2020 2019 Income (loss) from continuing operations, as reported $ (15,700) $ 18,720 $ (2,580) $ 33,270 Special Items to consider in evaluating quality of net income from continuing operations:
Slide 21: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended June 30, 2020 2019 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities from continuing operations $ 27,440 3,070 $ 30,510 $ 17,720 $ 1,080 $ 18,800 Less: Capital expenditu
Slide 22: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended Six months ended June 30, June 30, June 30, 2020 2019 2020 2019 2020 2019 Income (loss) from continuing operations, as reported $ (15,700) $ 18,720 $ 26,090 $ 69,140 $ (2,580) $ 33,270 Depreciation expense 8,110 6,300