Slide 1: Third Quarter 2006 Earnings Call
Third Quarter 2006 Earnings Call November 14, 2006
Slide 2: Forward-Looking Statements
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 resu
Slide 3: Agenda
Agenda 2006 Third Quarter Highlights 2006 Third Quarter Operating Highlights 2006 Third Quarter Financial Performance TriMas Capitalization Summary Q&A Appendix
Slide 4: 2006 Third Quarter Highlights
2006 Third Quarter Highlights TriMas is a manufacturer of highly engineered products. Our defining attributes include leading market shares, strong brand names, and diversity of end markets, customers and products. Our third quarter earnings performance improved in 4 of our 5 segments with RV & Trai
Slide 5: 2006 Third Quarter Highlights
2006 Third Quarter Highlights The Company reported Q3 2006 operating profit of $26.4 million, an increase of $5.3 million or 25.1%, compared to operating profit of $21.1 million in Q3 2005. Adjusted EBITDA during the quarter was $34.2 million, representing an increase of $5.3 million or 18.3% as com
Slide 6: 2006 Third Quarter Highlights
2006 Third Quarter Highlights Under the Amended and Restated Credit Agreement, the Company’s Bank LTM EBITDA at September 30, 2006 was $147.5 million, which supported our lending ratios: Leverage ratio was 5.11x vs. a leverage covenant of 5.75x. Interest coverage ratio was 1.87x vs. our covenant of
Slide 7: Operating Highlights
= So TRIMAS CORPORATION Operating Highlights
Slide 8: Packaging Systems
Packaging Systems Net Sales 2006 2005 2006 $145.6 $158.5 Three months ended September 30, Nine months ended September 30, 2005 $48.6 $53.4 Adjusted EBITDA 2006 2005 2006 $31.4 $38.4 2005 21.6% 24.2% $10.6 $13.4 21.8% 25.1% Operating Profit 2006 2005 2006 $24.6 $28.9 2005 16.9% 18.2% $7.9 $10.3 16.3%
Slide 9: Energy Products
Energy Products Order intake and backlogs remain strong within this segment. Arrow Engine’s compressor project is underway with the first VR330 compressor sold. We recently opened a 30,000 sq. ft. facility – Arrow Gas Products Division – to house the compressor product line and an ASME code welding
Slide 10: Industrial Specialties
Industrial Specialties Net Sales $125.0 $136.1 $40.4 $44.6 Adjusted EBITDA $28.4 $32.1 22.7% 23.6% $9.8 $11.1 24.3% 25.0% Operating Profit $24.5 $28.2 19.6% 20.7% $8.4 $9.9 20.7% 22.2% Net sales within the Industrial Specialties’ group of companies improved 10.4% compared to the same period a year a
Slide 11: RV & Trailer Products
RV & Trailer Products Net Sales Operating Profit $53.0 $43.3 $21.9 $17.6 13.6% 11.7% $161.2 $150.7 Adjusted EBITDA $27.4 $22.9 17.0% 15.2% $8.5 $4.5 15.9% 10.4% $6.6 $2.9 12.5% 6.8% Q3-2006 sales and profits showed a year-over-year decline compared to Q3-2005.End markets continue to adjust inventory
Slide 12: Recreational Accessories
Recreational Accessories In Q3 2006, consumer demand was negatively impacted by record high fuel prices and a continued uncertain interest rate environment. Although net sales declined 12% between years, operating profit increased $2.8 million due to: Improved material margins and reductions in vari
Slide 13: 2006 Third Quarter Results
2006 Third Quarter Results (1) The Company has established Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") as an indicator of our operating performance and as a measure of our cash generating capabilities. The Company defines “Adjusted EBITDA” as net income (loss) before, i
Slide 14: TriMas Capitalization
TriMas Capitalization (unaudited - $ in millions) At September 30, 2006, TriMas had $3.9 million in cash and approximately $94 million of available liquidity under our Amended and Restated Credit Agreement. (unaudited -$ in millions) September 30, September 30, December 31, 2006 2005 2005 Cash and C
Slide 15: Amended & Restated Credit Agreement Summary
Amended & Restated Credit Agreement Summary Essentially the same-sized facility as the existing Agreement Extended maturities of the Revolver through December 2011 (from 2007) and Term Loan through December 2013 (from 2009) Pricing reduced 75 bps (Revolver) and 100 bps (Term), expect 2007 full year
Slide 16: Summary
Summary TriMas had a solid third quarter. TriMas improved operating earnings. The Company and our team are focused on expanding sales growth initiatives, continued earnings improvement and debt reduction. Strengthening our balance sheet remains a critical tactical objective. Free cash flow Selected
Slide 17: Q & A
Q & A
Slide 18: Appendix
Appendix
Slide 19: Condensed Balance Sheet
Condensed Balance Sheet At September 30, 2006, TriMas had $3.9 million of cash and approximately $94 million of available liquidity under our Amended and Restated Credit Agreement. Receivables and debt reduced $32.0 million and $37.3 million at September 30, 2006 and December 31, 2005, respectively,
Slide 20: Statement of Operations
Statement of Operations For the Three Months Ended September 30, (unaudited - $ in millions) For the Three Months Ended September 30, 2006 2005 Net sales $ 244.6 $ 246.0 Cost of sales (177.7) (186.1) Gross profit 66.9 59.9 Selling, general and administrative expenses (41.0) (38.5) Gain (loss) on dis
Slide 21: Statement of Operations (cont'd)
Statement of Operations (cont’d) For the Three Months Ended September 30, (Unaudited - $ in millions, except per share amounts) For the Three Months Ended September 30, 2006 2005 Income (loss) from continuing operations $ (1.9) $ 2.1 Loss from discontinued operations, net of income tax benefit (10.8
Slide 22: Cash Flow Highlights
Cash Flow Highlights For the Nine Months Ended September 30, (Unaudited - $ in millions) (Unaudited -$ in millions) For the Nine Months Ended September 30, 2006 2005 Cash provided by operating activities. $ 26.5 $ 19.8 Capital expenditures (19.6) (15.0) Proceeds from sales of fixed assets 1.0 3.5 Ca
Slide 23: Reconciliation of Non-GAAP Measure Adjusted EBITDA
Reconciliation of Non-GAAP Measure Adjusted EBITDA (1) The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment write-offs, non-cash losses on sale-leaseback of property and equipment and legacy stock award ex
Slide 24: Key Covenant Calculations
Key Covenant Calculations ($ in millions) Leverage Ratio Total Indebtedness at September 30, 2006 (1) $ 754.3 LTM EBITDA, as defined (2) $ 147.5 Leverage Ratio - Actual 5.11x Leverage Ratio - Covenant 5.75x Coverage Ratio LTM EBITDA, as defined (2) $ 147.5 Cash Interest Expense (2) $ 79.0 Coverage R
Slide 25: LTM Bank EBITDA
LTM Bank EBITDA (1) (unaudited - $ in millions) (unaudited -$ in millions) Reported net loss for the twelve months ended September 30, 2006 $ (58.5) Interest expense, net (as defined) 79.0 Income tax expense (benefit) (36.9) Depreciation and amortization 37.7 Extraordinary non-cash charges - impairm