Slide 1: Third Quarter 2018 Earnings Presentation
Third Quarter 2018 Earnings Presentation October 30, 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: TriMas Overview
TriMas Overview Packaging Net Sales: $363.8M Op. Profit/Margin: $83.5M, 22.9% Amortization Exp.(4): $9.1M, 2.5% Net Sales by Segment Operating Profit(1) Aerospace Aerospace Aerospace Packaging 21% 19% 19% 42% 59% 86% 5% 23% Specialty Net Sales: $183.3M Packaging 58% 22% 7% Products Op. Profit/Margin
Slide 4: Third Quarter Results: Q3 Highlights
Third Quarter Results Q3 Highlights • TriMas’ well-positioned businesses captured robust end market demand which contributed to strong sales growth of 6.9% • Overall performance and prior realignment actions more than offset the impact of higher material costs Net Sales Operating Profit EPS, diluted
Slide 5: Third Quarter Results: Additional Highlights
Third Quarter Results Additional Highlights • Another quarter of exceptional cash flow contributing to YTD performance: – Continued strengthening of balance sheet through net debt reduction and deleveraging Free Cash Flow(1) Leverage Ratio(2) Net Debt to EBITDA(2) $ millions $39.5 $63.5 $70.7 2.9x 2
Slide 6: Segment Results
SS TriMas Segment Results
Slide 7: Third Quarter 2018: Packaging Segment
Third Quarter 2018: Packaging Segment Net Sales Operating Profit +6.4% -4.7% Organic +7.0%, Fx -0.6% $ millions $ millions $89.6 $95.3 $23.1 $22.1 25.8% 23.2% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Quarterly Takeaways Brand & Applications • Increased sales in HBHC and Industrial end markets • Maintained st
Slide 8: Third Quarter 2018: Aerospace Segment
Third Quarter 2018: Aerospace Segment Net Sales Operating Profit +1.1% +6.1% $ millions $ millions $48.6 $49.1 $7.8 $8.3 16.1% 16.9% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Quarterly Takeaways Brands & Applications • Sales increased as higher demand more than offset the impact of the decision to exit less p
Slide 9: Third Quarter 2018: Specialty Products Segment
Third Quarter 2018: Specialty Products Segment Net Sales Operating Profit +11.6% +46.1% $ millions $ millions $71.2 $79.5 $5.5 $8.0 7.7% 10.1% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Quarterly Takeaways Brands & Applications • Increased sales by capturing higher end market demand in all brands • Increased o
Slide 10: Financial Position & Outlook
Financial Position & Outlook
Slide 11: Third Quarter YTD Results
Third Quarter YTD Results Adjusted for Special Items YTD 2018 YTD 2017 Change Net Sales $665.8 $622.5 6.9% Operating Profit $90.3 $83.5 8.3% Operating Profit Margin 13.6% 13.4% 20 bps Net Income $63.5 $49.9 27.2% Diluted Earnings Per Share $1.37 $1.09 25.7% • YTD Q3 2018 net sales increased 6.9% dri
Slide 12: Strong Balance Sheet and Available Liquidity
Strong Balance Sheet and Available Liquidity Continued Strengthening of Financial Position • Generated YTD Free Cash Flow(1) of $70.7 million as compared to $63.5 million in the year ago period • Through 10/29/18, TriMas repurchased ~236,000 TriMas shares for approximately $6.7 million, under its $5
Slide 13: 2018 Full Year Guidance
2018 Full Year Guidance As of 10/30/18 TriMas FY 2018 Guidance Prior Updated Organic Sales Growth ~5% ~6% EPS, diluted $1.65 - $1.75 $1.72 - $1.78 Free Cash Flow(1) > 120% of Net No Change Income • Continued strong order demand across all businesses • Raising full year sales and EPS range guidance,
Slide 14: Levers for Continued Share Growth
Levers for Continued Share Growth Continuous Shaping Capital Innovation Improvement TriMas Allocation • Growth through • TriMas Business Model • Investing in higher margin • Reinvestment in innovative and and return products TriMas businesses • Championing a culture differentiated products of Kaizen
Slide 15: SS TriMas
SS TriMas
Slide 16: Appendix
SS TriMas Appendix
Slide 17: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet September 30, December 31, 2018 2017 (unaudited) Assets Current assets: Cash and cash equivalents $ 79,630 $ 27,580 Receivables, net 132,630 112,220 Inventories 165,470 155,350 Prepaid expenses and other current assets 8,360 16,120 Total current assets 386,090 31
Slide 18: Consolidated Statement of Income
Consolidated Statement of Income Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Net sales $ 223,780 $ 209,330 $ 665,790 $ 622,530 Cost of sales (162,060) (150,440) (478,910) (452,350) Gross profit 61,720 58,890 186,880 170,180 Selling, general and administrative
Slide 19: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Nine months ended September 30, 2018 2017 Cash Flows from Operating Activities: Net income $ 66,590 $ 34,970 Adjustments to reconcile net income to net cash provided by operating activities: Loss on dispositions of assets 70 3,210 Depreciation 18,630 18,890 Amort
Slide 20: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Packaging Net sales $ 95,250 $ 89,560 $ 278,540 $ 259,260 Operating profit $ 22,060 $ 23,140 $ 64,450 $ 61,630 Special Items to consider in evaluating operating profit: Busi
Slide 21: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Net income, as reported $ 22,670 $ 13,130 $ 66,590 $ 34,970 Special Items to consider in evaluating quality of net income: Business restructuring and severance costs 710 4
Slide 22: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended September 30, 2018 2017 As reported Special Items As Adjusted As reported Special Items As Adjusted Net cash provided by operating activities $ 31,470 470 $ 31,940 $ 23,060 $ 6,170 $ 29,230 Less: Capital expenditures (4,570) - (4,570) (7
Slide 23: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended Nine months ended September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 Net income, as reported $ 22,670 $ 13,130 $ 62,580 $ (32,390) $ 66,590 $ 34,970 Depreciation expense 5,760 5,840 26,690 25,570