Slide 1: First Quarter 2018 Earnings Presentation
First Quarter 2018 Earnings Presentation April 26, 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 • Summary • 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: TriMas Overview
TriMas Overview Balance provided by our multi-industry group of businesses Packaging Net Sales: $351.8M Op. Profit/Margin: $83.3M, 23.7% Amortization Exp.(4): $9.3M, 2.6% Net Sales Operating Profit(1) Aerospace Aerospace Packaging Aerospace Packaging 22% 19% 42% 59% Specialty Net Sales: $184.7M 22%
Slide 6: 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 7: Solid First Quarter Performance
Solid First Quarter Performance Adjusted for Special Items Q1 2018 Q1 2017 Change Net Sales $217.1 $199.8 8.6% Operating Profit $28.1 $24.0 16.9% Operating Profit Margin 12.9% 12.0% 90 bps Net Income $19.0 $14.0 36.0% Diluted Earnings Per Share $0.41 $0.30 36.7% • Increased net sales 8.6% with sales
Slide 8: Continued Strengthening of Financial Position
Continued Strengthening of Financial Position Q1 2018 v. Q4 2017 Change v. Q1 2017 Change Tota l Debt $301.7 $303.1 ($1.4) $366.9 ($65.2) Les s : Ca s h $36.7 $27.6 $9.1 $22.6 $14.0 Net Debt $265.0 $275.5 ($10.5) $344.2 ($79.2) LTM Adjus ted EBITDA $159.3 $154.8 $4.5 $146.4 $12.9 (1) Levera ge Ra ti
Slide 9: Segment Performance
SS TriMas Segment Performanée
Slide 10: Segment Performance Summary
Segment Performance Summary First Quarter 2018 Adjusted Segment Operating Net Sales Profit and Margin $217.1 +8.6% $35.3 +11.9% $31.6 $199.8 15.8% 16.3% Q1 2017 Q1 2018 Q1 2017 Q1 2018 13.7% 15.3% Solid organic growth and improved profitability overall. 10 Note: Please see the detailed reconciliatio
Slide 11: Packaging Segment
Packaging Segment Financial Performance Leading Brand Adjusted for Special Items Q1 2018 Q1 2017 Change Net Sales $88.2 $81.0 8.9% Operating Profit $19.6 $18.6 5.4% Operating Margin 22.2% 22.9% -70 bps Note: Amortization Expens e $2.3 $2.4 As % of Sales 2.6% 2.9% Quarterly Comments • Higher product
Slide 12: Aerospace Segment
Aerospace Segment Financial Performance Leading Brands Adjusted for Special Items Q1 2018 Q1 2017 Change Net Sales $45.8 $45.4 0.9% Operating Profit $5.1 $5.1 0.4% Operating Margin 11.1% 11.1% 0 bps Note: Amortization Expens e $2.2 $2.2 As % of Sales 4.7% 4.7% Quarterly Comments • Sales were relativ
Slide 13: Specialty Products Segment
Specialty Products Segment Financial Performance Leading Brands Adjusted for Special Items Q1 2018 Q1 2017 Change Net Sa l es $83.1 $73.5 13.1% Opera ti ng Profi t $10.7 $8.0 34.3% Opera ti ng Ma rgi n 12.9% 10.8% 210 bps Note: Amorti za ti on Expens e $0.5 $0.4 As % of Sa l es 0.5% 0.6% Quarterly C
Slide 14: Summary
SS TriMas Summary
Slide 15: 2018 Focus and Guidance
2018 Focus and Guidance As of 4/26/18 Focus to Deliver Plan TriMas 2018 Full Year Guidance • Rely on our proprietary TriMas Business Reaffirming previously provided full year outlook Model to drive performance of our • Organic Sales Growth… ~ 3% multi-industry businesses • Earnings Per Share, dilute
Slide 16: Summary: Capital Allocation Priorities
Summary Capital Allocation Priorities 1 • Reinvest in our businesses Drive Performance, Exceptional Cash 2 Conversion and • Reduce net debt with a long-term target leverage Solid ROIC ratio below 2.0x 3 • Augment highest value proposition segment through bolt-on acquisitions • Consider share repurch
Slide 17: Questions & Answers
SS TriMas Questions & Answers
Slide 18: Appendix
SS TriMas Appendix
Slide 19: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet March 31, December 31, 2018 2017 (unaudited) Assets Current assets: Cash and cash equivalents $ 36,670 $ 27,580 Receivables, net 128,850 112,220 Inventories 156,560 155,350 Prepaid expenses and other current assets 10,840 16,120 Total current assets 332,920 311,2
Slide 20: Consolidated Statement of Income
Consolidated Statement of Income Three months ended March 31, 2018 2017 Net sales $ 217,100 $ 199,830 Cost of sales (156,720) (148,010) Gross profit 60,380 51,820 Selling, general and administrative expenses (25,170) (35,910) Operating profit 35,210 15,910 Other expense, net: Interest expense (3,700
Slide 21: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Three months ended March 31, 2018 2017 Cash Flows from Operating Activities: Net income $ 24,320 $ 6,990 Adjustments to reconcile net income to net cash provided by operating activities: (Gain) loss on dispositions of assets (10) 4,170 Depreciation 6,330 5,800 Amo
Slide 22: Company and Segment Financial Information
Company and Segment Financial Information Three months ended March 31, 2018 2017 Packaging Net sales $ 88,200 $ 80,960 Operating profit $ 19,580 $ 16,900 Special Items to consider in evaluating operating profit: Business restructuring and severance costs - 1,670 Adjusted operating profit $ 19,580 $
Slide 23: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended March 31, 2018 2017 Net income, as reported $ 24,320 $ 6,990 Special Items to consider in evaluating quality of net income: Business restructuring and severance costs 1,210 8,110 Reversal of legacy related party liability (8,150) - Incom
Slide 24: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended March 31, 2018 2017 As reported Special Items As Adjusted As reported Special Items As Adjusted Net cash provided by operating activities $ 16,240 1,350 $ 17,590 $ 21,970 $ 6,490 $ 28,460 Less: Capital expenditures (3,170) - (3,170) (10,
Slide 25: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended March 31, March 31, 2018 2017 2018 2017 Net income (loss), as reported $ 24,320 $ 6,990 $ 48,290 $ (41,110) Depreciation expense 6,330 5,800 27,480 24,250 Amortization expense 4,910 4,990 19,840 20,360 Interest expens