Trimas Corporation · NASDAQ:TRS
Trimas — Q4 2007 Earnings Presentation
38 slides from Trimas's earnings presentation, Mar 13, 2008
Slide 1: Fourth Quarter 2007 Earnings Presentation
March 13, 2008 Fourth Quarter 2007 Earnings Presentation
Slide 2: Forward-looking statements
2 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 re
Slide 3: Agenda
3 Agenda · Full Year and Fourth Quarter 2007 Highlights · Segment Highlights · Financial Highlights · Summary and Outlook · Questions and Answers · Appendix
Slide 4: Full Year and Fourth Quarter 2007 Highlights
Full Year and Fourth Quarter 2007 Highlights
Slide 5: 2007 Major Accomplishments
5 2007 Major Accomplishments · Completed IPO in May 2007 · Achieved record sales from continuing operations of $1,068.3 million, a 5.4% increase over 2006 · Launched new products across all five operating segments · Initiated new revenue programs in Europe, South America, Australia and South Africa
Slide 6: 2007 Major Accomplishments (cont.)
6 2007 Major Accomplishments (cont.) · Continued cost management initiatives · Continued to leverage Asian sourcing and production efficiency opportunities · Expanded and additionally utilized manufacturing facilities in China, Thailand and Mexico · Increased focus on strong end markets · Increased
Slide 7: 2007 Special Items
7 2007 Special Items · As previously announced, TriMas incurred: · One-time costs and expenses related the use of IPO proceeds of $14.2 million and $7.4 million to early retire $100 million of senior subordinated notes · $9.0 million in costs and expenses related to the Huntsville facility closure ·
Slide 8: 2007 Full Year Summary
8 2007 Full Year Summary · Record full year sales of $1,068.3 million, increasing 5.4% from 2006 · Excluding the impact of Special Items(1): · 2007 Operating Profit improved 5.7% to $106.5 million, as compared to $100.8 million in 2006 · 2007 Adjusted EBITDA from continuing operations was $143.8 mil
Slide 9: 2007 Fourth Quarter Summary
9 2007 Fourth Quarter Summary · Record fourth quarter sales of $237.5 million, increasing 7.1% from Q4-2006 · Excluding the impact of Special Items(1): · Fourth quarter 2007 Adjusted EBITDA, before corporate expenses, was up $2.4 million. However, corporate expenses were up $3.0 million due to costs
Slide 10: Segment Highlights
# = eo TRIMAs CORPORATION Segment Highlights
Slide 11: Packaging Systems
11 Packaging Systems ($ in millions) · Net sales increased 3.7% in 2007 due to strong demand for new, specialty dispensing products for growing end markets · Specialty dispensing and closure product lines increased year-over-year · Sales of core industrial closure products were flat year-over-year ·
Slide 12: Energy Products
12 Energy Products · Net sales for the year increased 4.1%, compared to 2006 · Strong specialty gasket sales to the 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
Slide 13: Industrial Specialties
13 Industrial Specialties ($ in millions) · 2007 net sales increased 16.7%, compared to 2006 · Sales of aerospace fastener products continue to be robust due to the introduction of new products and a strong market · Demand for industrial cylinders (ISO) and shell casings remained strong · Precision
Slide 14: RV & Trailer Products
14 RV & Trailer Products ($ in millions) · 2007 net sales increased 4.2% in a weak end market due to new product sales and market share initiatives · Growth in Southeast Asia · Electrical product expansion · Effective “cross-selling” strategy · Proactively managed costs through sourcing and improvin
Slide 15: Recreational Accessories
15 Recreational Accessories ($ in millions) · 2007 sales increased 1.0% versus weak end market due to introduction of new programs and market share gains · Pre-tax, non-cash goodwill and indefinite-lived intangible asset impairment charge of $70.4 million in Q4-2007 and $19.0 million in Q4-2006 · Du
Slide 16: Financial Highlights
» PoTRIMAs CORPORATION Financial Highlights
Slide 17: Summary of Special Items
17 Summary of Special Items . Costs and expenses related to use of IPO proceeds . (Corporate) . Expense related to settlement of Canadian benefit plan liability . (Packaging Systems) . Huntsville facility closure costs . (Recreational Accessories) . Non-cash goodwill and intangible asset impairment
Slide 18: Goodwill and Intangible Asset Impairment
18 Goodwill and Intangible Asset Impairment . Process overview . Pre-tax, non-cash goodwill and indefinite-lived asset impairment charges of $171.2 million . $100.8 million in RV & Trailer Products segment . $70.4 million in Recreational Accessories segment . After-tax impact of $159.9 million
Slide 19: 2007 Fourth Quarter/Year-end Results: Net Sales
19 2007 Fourth Quarter/Year-end Results (unaudited) 2007 2006 Change 2007 2006 Change Net Sales Packaging Systems 49,600 $ 45,780 $ 8.3% 211,820 $ 204,230 $ 3.7% Energy Products 40,540 39,820 1.8% 163,470 156,990 4.1% Industrial Specialties 50,160 44,500 12.7% 204,630 175,410 16.7% RV & Trailer Prod
Slide 20: 2007 Fourth Quarter/Year-end Results: Adjusted EBITDA
20 2007 Fourth Quarter/Year-end 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 bef
Slide 21: Statement of Operations
21 Statement of Operations ($ in thousands) 2007 2006 2007 2006 Net sales 237,510 $ 221,850 $ 1,068,270 $ 1,013,910 $ Cost of sales (176,190) (164,480) (779,380) (743,550) Gross profit 61,320 57,370 288,890 270,360 Selling, general and administrative expenses (52,400) (39,510) (185,910) (169,050) Ad
Slide 22: Statement of Operations (cont'd)
22 Statement of Operations (cont’d) 2007 2006 2007 2006 Earnings (loss) per share - basic: Continuing operations (5.04) $ (5.67) $ (5.59) $ (5.43) $ Discontinued operations, net of income taxes (0.01) (0.20) 0.03 (0.94) Net loss per share (5.05) $ (5.87) $ (5.56) $ (6.37) $ Weighted average common s
Slide 23: Cash Flow Highlights
23 Cash Flow Highlights ($ in thousands) 2007 2006 Cash provided by operating activities 64,970 $ 15,880 $ Capital expenditures (34,730) (22,480) Acquisition of leased assets (29,960) (7,360) Acquisition of businesses, net of cash acquired (13,540) - Net proceeds from disposition of businesses and o
Slide 24: Capitalization
24 Capitalization As of December 31, 2007, TriMas had $4.8 million in cash and approximately $118.8 million of available liquidity under its existing revolving credit and receivables securitization facilities. ($ in thousands) December 31, 2007 December 31, 2006 Cash and Cash Equivalents 4,800 $ 3,6
Slide 25: Summary and Outlook
= doTRIMAS CORPORATION Summary and Outlook
Slide 26: 2008 Segment Outlook
26 2008 Segment Outlook Packaging Systems Energy Products Industrial Specialties RV & Trailer Products and Recreational Accessories Continued growth in specialty dispensing products into higher-growth end markets (personal care, beverage, food and pharmaceutical) projected International expansion –
Slide 27: 2008 Outlook – Full Year
27 2008 Outlook – Full Year · EPS range from continuing operations of $0.85 per share to $0.95 per share, compared to $0.79 per share in 2007 excluding Special Items · Net income of $28.5 million to $31.9 million, compared to 2007 net income of $22.4 million excluding Special Items · Full year outlo
Slide 28: 2008 Outlook – First Quarter
28 2008 Outlook – First Quarter · EPS range from continuing operations of $0.21 per share to $0.24 per share, compared to $0.37 per share during Q1- 2007 · Net income from continuing operations of $6.9 million to $8.1 million, relatively flat in comparison to net income in Q1-2007 · Weighted average
Slide 29: TriMas Initiatives
29 TriMas Initiatives · Focus on continued organic growth · Develop new, innovative products for growing end markets – Medical, Specialty Packaging, Aerospace and Energy · Expand internationally to service existing customers and acquire new customers . Cross-sell product portfolio across customer ba
Slide 30: TriMas Corporation
# = eo TRIMAs CORPORATION
Slide 31: Appendix
# = eo TRIMAs CORPORATION Appendix
Slide 32: Balance Sheet
32 Balance Sheet ($ in thousands) 2007 2006 Current assets: Cash and cash equivalents 4,800 $ 3,600 $ Receivables, net 89,370 98,800 Inventories, net 190,590 164,660 Deferred income taxes 18,860 24,310 Prepaid expenses and other current assets 7,010 7,320 Assets of discontinued operations held for s
Slide 33: 2007 Fourth Quarter/Year-end Results
33 2007 Fourth Quarter/Year-end 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”
Slide 34: Reconciliation of Non-GAAP Measure Adjusted EBITDA
34 Reconciliation of Non-GAAP Measure Adjusted EBITDA(1) (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, and non-cash losses on sale-leaseback
Slide 35: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
35 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Year ended Year ended December 31, 2006 ($ in thousands, except per share amounts) Income (Loss) EPS Income (Loss) EPS Loss and Diluted EPS from continuing operations, as reported (159,320) $ (5.59) $ (109,7
Slide 36: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
36 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Year ended December 31, ($ in thousands) 2007(1) 2006(1) 2007 2006 Operating loss, as reported (169,920) $ (99,520) $ (91,770) $ (16,250) $ Special Items to consider in evaluating quality of earnings: Goodwi
Slide 37: Key Covenant Calculations
37 (Unaudited - $ in thousands) Key Covenant Calculations Leverage Ratio Total Indebtedness at December 31, 2007 (1) 657,490 $ LTM EBITDA, as defined (1) 161,040 $ Leverage Ratio - Actual 4.08 X Leverage Ratio - Covenant 5.50 X Coverage Ratio LTM EBITDA, as defined (1) 161,040 $ Cash Interest Expens
Slide 38: LTM EBITDA as Defined in Credit Agreement
38 (Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended December 31, 2007 (158,430) $ Interest expense, net (as defined) 68,310 Income tax benefit (10,410) Depreciation and amortization 41,350 Extraordinary non-cash charges 178,450 Hear