Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation April 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: COVID-19 Current Status
COVID-19 Current Status TriMas has 37 facilities in 11 countries on 3 continents. Current Status • Health and safety of our employees is top priority • TriMas manufacturing facilities classified as essential – Products used in applications that fight the spread of germs, as well as military & defens
Slide 4: COVID-19 Actions
COVID-19 Actions TriMas has 37 facilities in 11 countries on 3 continents. Protocols Implemented Defensive Actions • Daily Situational Reports by production facility, shared • Suspended share buybacks, reassess in future between CEO and each divisional leader to enhance communication and benchmarkin
Slide 5: TriMas Overview
TriMas Overview • Strong Brand Names • Diverse End Markets • Innovative Product Solutions • Relentless Commitment to Cash Conversion 27% Aerospace 55% • Commercial Jet • Military & Defense Packaging • Business Jet • Beauty & Personal Care • Home Care • Pharmaceutical & Nutraceutical 18% • Food & Bev
Slide 6: Q1 2020 Results
Q1 2020 Results Adjusted for Special Items Q1 2020 Q1 2019 YOY Sales Growth % Organic Acquisitions Fx Total Net Sa l es $182.8 $173.4 Packaging 5.3% 8.4% -1.1% 12.6% Opera ti ng Profi t $22.0 $22.4 Aerospace 0.7% 6.6% n/a 7.3% Opera ti ng Profi t Ma rgi n 12.0% 12.9% Specialty Products -13.2% n/a n/
Slide 7: Segment Results
SS TriMas Segment Results
Slide 8: TriMas Packaging Segment
TriMas Packaging Segment Adjusted for Special Items Q1 2020 Q1 2019 Net Sa l es $100.1 $88.8 Opera ti ng Profi t $18.6 $18.7 Opera ti ng Ma rgi n 18.6% 21.0% Adjus ted EBITDA(1) $23.9 $23.7 (2) Adjus ted EBITDA Ma rgi n 23.9% 26.6% Quarterly Takeaways • Impact of acquisitions and demand for industri
Slide 9: TriMas Aerospace Segment
TriMas Aerospace Segment Adjusted for Special Items Q1 2020 Q1 2019 Net Sa l es $48.9 $45.6 Opera ti ng Profi t $6.1 $6.3 Opera ti ng Ma rgi n 12.4% 13.7% (1) Adjus ted EBITDA $10.1 $10.0 Adjus ted EBITDA Ma rgi n 20.7% 22.0% Quarterly Takeaways • Sales increased due to the February 2020 acquisition
Slide 10: TriMas Specialty Products Segment
TriMas Specialty Products Segment Adjusted for Special Items Q1 2020 Q1 2019 Net Sa l es $33.8 $39.0 Opera ti ng Profi t $3.4 $4.7 Opera ti ng Ma rgi n 10.1% 12.1% Adjus ted EBITDA(1) $4.4 $5.5 Adjus ted EBITDA Ma rgi n 13.0% 14.2% Quarterly Takeaways • Sales pressure due to lower industrial demand
Slide 11: Balance Sheet & Liquidity
SX TriMas Balance Sheet & Liquidity
Slide 12: TriMas Financial Position
TriMas Financial Position • Strong Brand Names • Diverse End Markets • Innovative Product Solutions • Relentless Commitment to Cash Conversion • Mergers & Acquisitions – Completed the acquisition of RSA Engineered Products on February 27, 2020 – Completed the acquisition of Rapak on April 17, 2020 –
Slide 13: 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 • Increased focus on cash conservation to defend against the potential impacts of COVID-19 – Q1 2020 Free Cash
Slide 14: Summary
SS TriMas Summary
Slide 15: 2020 Guidance Update
2020 Guidance Update Examples • Beauty & Personal Care Examples • Food & Beverage • Aerospace • Industrial – Packaging • Construction • Pharma and Medical • HVAC • Home Care • General Industrial While certain end markets remain • Military & Defense Due to recent end market challenged and product dem
Slide 16: Going Forward… …Positioning for the Future
Going Forward… Balancing demand of certain Maintain financial strength to 1 end markets against execute upon M&A strategy realignment actions on more challenged end markets 5 2 Anticipate earliest recoveries Enhance manufacturing in NA construction (welding footprint plans to position and HVAC) end
Slide 17: TriMas' Growth Strategy for the Long Term
TriMas’ Growth Strategy for the Long Term TriMas unleashes value across our portfolio of businesses through... 1 2 Leveraging Our Accelerating Organic TriMas Business Model Growth through to Drive Performance Innovation 4 3 Expanding Our Core Driving Enhanced Platforms through Cash Conversion Strate
Slide 18: SS TriMas
SS TriMas
Slide 19: Appendix
SX TriMas Appendix
Slide 20: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet March 31, December 31, 2020 2019 (unaudited) Assets Current assets: Cash and cash equivalents $ 206,110 $ 172,470 Receivables, net 122,580 108,860 Inventories 140,420 132,660 Prepaid expenses and other current assets 16,230 20,050 Total current assets 485,340 434
Slide 21: Consolidated Statement of Income
Consolidated Statement of Income Three months ended March 31, 2020 2019 (unaudited) Net sales $ 182,790 $ 173,370 Cost of sales (136,420) (126,580) Gross profit 46,370 46,790 Selling, general and administrative expenses (26,540) (26,990) Operating profit 19,830 19,800 Other expense, net: Interest ex
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Three months ended March 31, 2020 2019 Cash Flows from Operating Activities: Net income $ 13,120 $ 19,090 Income from discontinued operations - 4,540 Income from continuing operations 13,120 14,550 Adjustments to reconcile income from continuing operations to net
Slide 23: Company and Segment Financial Information
Company and Segment Financial Information Three months ended March 31, 2020 2019 Packaging Net sales $ 100,050 $ 88,840 Operating profit $ 18,280 $ 17,640 Special Items to consider in evaluating operating profit: Purchase accounting costs - 1,020 Business restructuring and severance costs 320 - Adju
Slide 24: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended March 31, 2020 2019 Income from continuing operations, as reported $ 13,120 $ 14,550 Special Items to consider in evaluating quality of net income from continuing operations: M&A diligence and transaction costs 1,110 1,120 Purchase accou
Slide 25: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended March 31, 2020 2019 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities from continuing operations $ 3,400 2,290 $ 5,690 $ 15,050 $ 1,130 $ 16,180 Less: Capital expenditur
Slide 26: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended March 31, March 31, December 31, 2020 2019 2020 2019 Income from continuing operations, as reported $ 13,120 $ 14,550 $ 60,510 $ 61,940 Depreciation expense 6,660 5,690 25,840 24,870 Amortization expense 4,850 4,630 1