Slide 1: Third Quarter 2008 Earnings Presentation
1 Third Quarter 2008 Earnings Presentation November 10, 2008
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 Third Quarter 2008 Results Segment Highlights Financial Highlights Outlook and Summary Questions and Answers Appendix
Slide 4: Third Quarter 2008 Results
» Ny TRIMAS CORPORATION Third Quarter 2008 Results
Slide 5: Overview
5 Overview Strong performance in a difficult environment - Grew net sales 7.1% for the quarter - Increased income from continuing operations by 53.1% - Delivered Q3-2008 EPS from continuing ops of $0.25(1) Effective management of balance sheet - Total debt pay-down in the quarter of $22.6 million an
Slide 6: 2008 Third Quarter Results
6 2008 Third Quarter Results Quarterly sales increased 7.1% to $276.9 million - Packaging Systems, Energy Products and Industrial Specialties sales increased 21.0% combined - Strong relative performance in RV & Trailer Products and Recreational Accessories - Sales declined 10.2%, but end markets dow
Slide 7: Segment Highlights
» Sy TRIMAS CORPORATION Segment Highlights
Slide 8: Segment Breakout – Third Quarter
8 Segment Breakout – Third Quarter 21% 15% 23% 21% 20% Segment Key 3 Months Ended September 30, 2008 3 Months Ended September 30, 2008 4% 8% 26% 25% 37% Approximately 88% of Q3 Segment Operating Profit is from the Packaging Systems, Energy Products and Industrial Specialties segments Packaging Syste
Slide 9: Packaging Systems
9 Packaging Systems Sales of core industrial closure products and specialty dispensing products to pharmaceutical, food/beverage and personal care end markets were up year-over-year Laminate and insulation product sales were essentially flat with increases in new specialty tape products offsetting t
Slide 10: Energy Products
10 Energy Products New product initiatives to add content at the well-site and increased engine demand drove sales increases of engine and related products year-over-year Product expansion efforts, a superior service model and continued high levels of capacity utilization increased specialty gasket
Slide 11: Industrial Specialties
11 Industrial Specialties ($ in millions) Sales of aerospace fasteners were robust due to the introduction of new products and a strong market International initiatives drove growth of industrial cylinders Specialty fittings business experienced a softening driven by reduced automotive demand Adjust
Slide 12: RV & Trailer Products
12 RV & Trailer Products ($ in millions) Sales decreased due to continued weak demand in U.S. end markets resulting from the decline in consumer discretionary spending, consumer confidence and credit availability - Sales in Australia and Southeast Asia increased year-over-year Adjusted EBITDA and op
Slide 13: Recreational Accessories
13 Recreational Accessories ($ in millions) Sales decreased due to continued weak demand resulting from the decline in consumer discretionary spending, consumer confidence and credit availability Adjusted EBITDA and operating profit declined as a result of lower sales volumes and a less favorable sa
Slide 14: Financial Highlights & Outlook
14 Financial Highlights & Outlook
Slide 15: Statement of Operations
15 Statement of Operations ($ in thousands) 2008 2007 2008 2007 Net sales 276,900 $ 258,650 $ 853,540 $ 830,760 $ Cost of sales (205,150) (188,730) (629,700) (603,190) Gross profit 71,750 69,920 223,840 227,570 Selling, general and administrative expenses (43,910) (42,650) (137,820) (133,510) Adviso
Slide 16: Statement of Operations (cont'd)
16 Statement of Operations (cont’d) Note: Special Items to consider in evaluating quality of earnings include $0.7 million in severance and facility closure costs in Q3-2008, $2.3 million of restructuring charges in Q2-2008 and $14.2 million in costs and expenses related to the use of IPO proceeds i
Slide 17: Balance Sheet
17 Balance Sheet ($ in thousands) September 30, December 31, 2008 2007 Current assets: Cash and cash equivalents 4,650 $ 4,800 $ Receivables, net 136,500 89,370 Inventories, net 198,690 190,590 Deferred income taxes 18,860 18,860 Prepaid expenses and other current assets 8,730 7,010 Assets of discon
Slide 18: Capitalization
18 Capitalization ($ in thousands) September 30, 2008 December 31, 2007 Cash and Cash Equivalents 4,650 $ 4,800 $ Senior Secured Bank Debt 278,710 279,020 9.875% Senior Sub Notes due 2012 337,080 336,970 Total Debt 615,790 $ 615,990 $ Total Shareholders’ Equity 230,650 $ 208,490 $ Total Capitalizati
Slide 19: Outlook and Summary
D9 TRIMAS CORPORATION Outlook and Summary
Slide 20: 2008 Outlook – Full Year
20 During first 9 months of 2008, performed well against the objectives incorporated into outlook provided at the beginning of the year Anticipated softened demand resulting from the economic events of October Proactively moved to reduce production levels and inventory position in Q4 Impact of volat
Slide 21: Profit Improvement Plan
21 Profit Improvement Plan Description Accelerate existing plan Across all TriMas segments Leverage previously made low-cost country investments - China - Mexico - Thailand Match production and staffing to commercial expectations Execute “lean” manufacturing and continuous improvement initiatives Mi
Slide 22: TriMas Priorities
22 TriMas Priorities Drive operating profit improvement in businesses - Reduce fixed costs - Improve productivity Effectively manage the balance sheet - Protect liquidity - Deploy capital prudently - Pay-down debt Focus capital on strategic growth - Specialty packaging, energy, aerospace, medical co
Slide 23: Summary
23 Summary Solid Q3 results driven by growth initiatives in Packaging Systems, Energy Products and Industrial Specialties Certain end-markets are challenged and less predictable – but we know what we need to do Constrained credit markets, but limited near-term exposure Proactively taking action to m
Slide 24: Questions and Answers
» 9 TRIMAS CORPORATION Questions and Answers
Slide 25: Appendix
» Ny TRIMAS CORPORATION Appendix
Slide 26: Third Quarter 2008 Results
26 Third Quarter 2008 Results ($ in thousands) (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 of property
Slide 27: Statement of Cash Flows
27 Statement of Cash Flows ($ in thousands) Nine months ended September 30, 2 008 20 07 Net income 25,640 $ 10,440 $ Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition impact: Loss on dispositions of property and equipment 40 1,570 Depreciation 20,74
Slide 28: Reconciliation of Non-GAAP Measure Adjusted EBITDA
28 Reconciliation of Non-GAAP Measure Adjusted EBITDA ($ in thousands) (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 sa
Slide 29: Additional Information Regarding Special Items
30 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Three months ended Three months ended September 30, 2008 September 30, 2007 (dollars in thousands, except per share amounts) Income EPS Income EPS Income and Diluted EPS from continuing operations, as report
Slide 30: LTM EBITDA as Defined in Credit Agreement
31 (Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended September 30, 2008 (143,230) $ Interest expense, net (as defined) 57,690 Income tax expense (benefit) (2,060) Depreciation and amortization 43,410 Extraordinary non-cash charges 17