Trimas Corporation · NASDAQ:TRS
Trimas — Q1 2014 Earnings Presentation
29 slides from Trimas's earnings presentation, Apr 29, 2014
Slide 1: First Quarter 2014 Earnings Presentation
First Quarter 2014 Earnings Presentation April 29, 2014 NASDAQ • TRS
Slide 2: Forward-Looking Statements
Forward-Looking Statements Any “forward-looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but n
Slide 3: Agenda
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3
Slide 4: Opening Remarks – First Quarter Results
Opening Remarks – First Quarter Results • Record Q1 sales of approximately $368 million – growth of nearly 9% compared to Q1 2013 – Results from bolt-on acquisitions and organic initiatives adding to top-line • Q1 2014 operating profit(1) improved more than 13% with a 30 basis point improvement in m
Slide 5: TriMas Key Initiatives & Accomplishments: Growth
TriMas Key Initiatives & Accomplishments 5 Growth – New Products, Global Expansion & Bolt-on Acquisitions • Completing second packaging plant in China for in-country sales – shipping in April • Acquired remaining 30% of Arminak in Packaging • Multiple contract wins for Energy leveraging our combined
Slide 6: TriMas Key Initiatives & Accomplishments: Margin Expansion & Productivity
TriMas Key Initiatives & Accomplishments 6 Margin Expansion & Productivity • Q1 productivity projects on track • New Cequent Reynosa plant running at previous production rates • Increased launch and sales efforts of specialty and engineered products in Energy • Trained 40 green belts; implementing p
Slide 7: Financial Highlights
Financial Highlights
Slide 8: First Quarter Summary
First Quarter Summary • Sales increased 8.9% as compared to Q1 2013 as a result of acquisitions and organic initiatives, offsetting challenges in energy end markets and the Q3 2013 disposition of the Italian rings and levers business • Q1 operating profit(1) and the related margin percentage improve
Slide 9: Capitalization: Total Debt and Leverage Ratio
$630 $515 $495 $470 $422 $306 $398 $200 $300 $400 $500 $600 $700 To tal D e b t Total Debt Leve ra ge R ati o Leverage Ratio 5x 3x 4x 2x 1x 9 ($ in millions) Capitalization Total Debt and Leverage Ratio (including A/R Facility) • Reduced interest expense by $1.7 million, or more than 30%, in Q1 2014
Slide 10: Segment Highlights
Segment Highlights
Slide 11: Packaging
Packaging Q1 2014 Results: • Sales increased primarily as a result of specialty systems product sales gains — Increased demand from North American and European dispensing customers, as well as additional business wins in Asia — Improved demand in Europe for industrial closures, offset by the divesti
Slide 12: Energy
Energy Q1 2014 Results: • Sales decreased due to the lower levels of turnaround activity and maintenance spend in refining and petrochemical markets • Operating profit and margin was negatively impacted by the slow down, which resulted in a less favorable product mix toward standard gaskets and bolt
Slide 13: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications • Leverage positive end market trends of composite aircraft and robotic assembly • Capture incremental opportunities in emerging markets • Drive ongoing lean initiatives to lower worki
Slide 14: Engineered Components
Engineered Components Key Initiatives: • Expand complementary product lines at well-sites and grow compression products – product diversification decreases cyclicality • Grow products to support the shift toward increased use of natural gas and production in shale formations • Integrate recent cylin
Slide 15: Cequent (APEA & Americas)
Cequent (APEA & Americas) $46.4 Q1 2014 Results: • Sales in Americas were relatively flat, as increased retail sales were offset by a decrease in aftermarket sales related to higher sales levels in Q1 2013 as customers built safety stock in anticipation of the production move to Mexico • Americas op
Slide 16: Outlook and Summary
Outlook and Summary
Slide 17: TriMas Planning Process
TriMas Planning Process Operating Reviews Strategic Plan People Plan Budget Board Reviews Incentive Plan Risk Mgmt Update JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Rolling Plans & Forecasts Incentive Plan & Budget Strategic Plan People Plan Operating Plan Repeatable structured processes drive
Slide 18: Strategic Aspirations
Strategic Aspirations Strategic aspirations are the foundation for the future. 18 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Enhance margins through productivity initiatives, leveraging costs and business mix
Slide 19: 2014 Outlook
2014 Outlook Outlook as of 2/20/14 and 4/29/2014 Sales Growth 6% to 8% Earnings Per Share, diluted(1) $2.15 to $2.25 Free Cash Flow(2) $55 to $65 million (1) Defined as diluted earnings per share attributable to TriMas Corporation, excluding “Special Items.” (2) Defined as Cash Flow from Operating A
Slide 20: TriMas Value Proposition
TriMas Value Proposition Growth > End Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 20 • Multiple projects in all businesses • Geographic • Product • Customer penetration • Acquisitions Stability • Consumer • Industrial • Agricultural • Aerospace • Ene
Slide 21: Questions & Answers
Questions & Answers
Slide 22: Appendix
Appendix
Slide 23: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 23 (Unaudited, dollars in thousands) March 31, December 31, 2014 2013 Assets Current assets: Cash and cash equivalents............................................................. 31,820$ 27,000$ Receivables, net...................................................
Slide 24: Consolidated Statement of Income
Consolidated Statement of Income (Dollars in thousands, except for per share amounts) 24 Three months ended 2014 2013 Net sales................................................................................................. 367,740$ 337,780$ Cost of sales............................................
Slide 25: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Dollars in thousands) 25 2014 2013 Cash Flows from Operating Activities: Net income......................................................................................................................... 19,380$ 14,040$ Adjustments to reconcile net income to net
Slide 26: Company and Business Segment Financial Information
Company and Business Segment Financial Information 26 Three months ended 2014 2013 Packaging Net sales......................................................................................................... 81,430$ 74,350$ Operating profit............................................................
Slide 27: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 27 Three months ended March 31, 2014 2013 Net income, as reported................................................................................................. 19,380$ 14,040$ Less: Net income attributable t
Slide 28: Enhanced Debt Structure
Enhanced Debt Structure 28 As of March 31, 2014, TriMas had $352.4 million of cash and available liquidity under its revolving credit and accounts receivable facilities. (Unaudited, dollars in thousands) March 31, December 31, 2014 2013 Cash and Cash Equivalents……………………………..………………… 31,820$ 27,000$ C
Slide 29: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 29 (Unaudited, dollars in thousands) 85,410$ Interest expense, net (as defined)............................................................................................... 16,590 Income tax expense.....................................................