Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation October 29, 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 • Innovative Product Solutions • Diverse End Markets • Exceptional Cash Conversion 9/30/20 LTM Sales % by Segment 24% Aerospace 61% • Commercial Jet • Military & Defense Packaging • Business Jet • Beauty & Personal Care • Food & Beverage • Industrial • Pharmaceut
Slide 4: TriMas Growth Strategy
TriMas Growth Strategy 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 Enhancing Growth Relentless Commitment Through Strategic to Cash Conversion M&A Disciplined app
Slide 5: Affaba & Ferrari Acquisition
Affaba & Ferrari Acquisition • Designer and manufacturer of engineered caps and closures for food & beverage and industrial applications • Aseptic closures for energetic, juice and dairy drinks, as well as industrial caps, closures and flex spouts with tamper evident and child-proof features • Globa
Slide 6: Q3 2020 Results
Q3 2020 Results Adjusted for Special Items Q3 2020 Q3 2019 YOY Growth % Net Sales $199.5 $188.4 Organic Acquisitions Fx Total Consolidated TriMas 0.4% 5.1% 0.4% 5.9% Operating Profit $29.6 $24.6 Packaging 22.8% 4.7% 0.6% 28.1% Operating Profit Margin 14.8% 13.1% Aerospace -31.8% 9.2% -22.6% Net Inco
Slide 7: Q3 2020 YTD Results
Q3 2020 YTD Results Adjusted for Special Items Q3 2020 YTD Q3 2019 YTD YOY Growth % Organic Acquisitions Fx Total Net Sales $581.8 $552.6 Consolidated TriMas -0.2% 6.0% -0.5% 5.3% Operating Profit $79.1 $75.0 Packaging 16.4% 6.5% -0.9% 22.0% Operating Profit Margin 13.6% 13.6% Aerospace -19.6% 9.3%
Slide 8: Free Cash Flow & Net Debt
Free Cash Flow & Net Debt Continued Strong Financial Position • TriMas capital structure and commitment to generating free cash flow drive our deleveraging model • Generated strong free cash flow from continuing operations in Q3 – Q3 2020 Free Cash Flow(1) of $41.6 million, as compared to $19.3 mill
Slide 9: Segment Results
SX TriMas Segment Results
Slide 10: TriMas Packaging Segment
TriMas Packaging Segment Adjusted for Special Items Q3 2020 Q3 2019 Net Sales $135.1 $105.5 Operating Profit $28.0 $20.1 Operating Margin 20.7% 19.1% Adjusted EBITDA(1) $34.2 $26.8 Adjusted EBITDA Margin 25.3% 25.4% Quarterly Takeaways • Record sales quarter driven by demand increases for beauty & p
Slide 11: TriMas Aerospace Segment
TriMas Aerospace Segment Adjusted for Special Items Q3 2020 Q3 2019 Net Sales $39.1 $50.6 Operating Profit $3.7 $7.8 Operating Margin 9.5% 15.4% Adjusted EBITDA(1) $8.2 $11.5 Adjusted EBITDA Margin 20.9% 22.7% Quarterly Takeaways • Sales declined due to the impact of significantly reduced aircraft p
Slide 12: TriMas Specialty Products Segment
TriMas Specialty Products Segment Adjusted for Special Items Q3 2020 Q3 2019 Net Sales $25.2 $32.4 Operating Profit $3.4 $3.6 Operating Margin 13.4% 11.2% Adjusted EBITDA(1) $4.3 $4.5 Adjusted EBITDA Margin 16.9% 13.8% Quarterly Takeaways • Continued lower demand for Norris steel cylinder products i
Slide 13: Summary
SX TriMas Summary
Slide 14: Forward Expectations
Forward Expectations TriMas FY 2020 Outlook Initial 2021 Thoughts Sales and % Change vs. FY 2019 Consolidated TriMas Consolidated TriMas $752M - $767M • Anticipate organic sales growth year-over-year, plus acquisitions 4% to 6% • Strong free cash flow generation greater than 100% of net income TriMa
Slide 15: TriMas Value Drivers
TriMas Value Drivers New compelling value drivers have emerged as a result of the pandemic, while prior value drivers remain… 1. Accelerate organic growth in dispensing and closure products given new global secular trends in personal hygiene and cleaning applications 2. Position challenged businesse
Slide 16: SX TriMas
SX TriMas
Slide 17: Appendix
SX TriMas Appendix
Slide 18: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet September 30, December 31, 2020 2019 (unaudited) Assets Current assets: Cash and cash equivalents $ 99,740 $ 172,470 Receivables, net 118,750 108,860 Inventories 142,600 132,660 Prepaid expenses and other current assets 13,640 20,050 Total current assets 374,730
Slide 19: Consolidated Statement of Operations
Consolidated Statement of Operations Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 (unaudited) Net sales $ 199,460 $ 188,410 $ 581,800 $ 552,610 Cost of sales (147,530) (139,420) (446,270) (403,040) Gross profit 51,930 48,990 135,530 149,570 Selling, general an
Slide 20: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Nine months ended September 30, 2020 2019 Cash Flows from Operating Activities: Net income (loss) $ (103,450) $ 60,220 Income from discontinued operations - 11,710 Income (loss) from continuing operations (103,450) 48,510 Adjustments to reconcile income (loss) fr
Slide 21: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Packaging Net sales $ 135,120 $ 105,480 $ 364,000 $ 298,310 Operating profit $ 28,020 $ 19,740 $ 70,340 $ 60,020 Special Items to consider in evaluating operating profit: Pu
Slide 22: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Income (loss) from continuing operations, as reported $ (100,870) $ 15,240 $ (103,450) $ 48,510 Special Items to consider in evaluating quality of income (loss) from conti
Slide 23: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended September 30, 2020 2019 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities from continuing operations $ 48,270 1,740 $ 50,010 $ 27,840 $ 1,920 $ 29,760 Less: Capital expe
Slide 24: 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, 2020 2019 2020 2019 2020 2019 Income (loss) from continuing operations, as reported $ (100,870) $ 15,240 $ (90,020) $ 63,450 $ (103,450) $ 48,510 Depreciatio