Slide 1: Second Quarter 2013 Earnings Presentation
Second Quarter 2013 Earnings Presentation July 25, 2013 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 – Second Quarter Results
Opening Remarks – Second Quarter Results • Continued investments in short and long-term growth and productivity programs; continue to adjust and refine for events • Record Q2 sales of approximately $378 million – up 12% compared to Q2 2012 – Results from bolt-on acquisitions adding to top-line – Inv
Slide 5: Current Environment
Current Environment Headwinds • European downturn continues, although “stable” • New geographies take time and investment to penetrate • Overall industrial production flat to low growth • Growth and customers’ needs create upward pressure on working capital • Inflation in China • Lower level of dril
Slide 6: Growth Focused on Bright Spots
Growth focused on faster growing markets; following and aiding our customers. Growth Focused on “Bright Spots” 6 • New specialty dispensing and closure systems for consumer applications • Growth in Asian markets • Bolt-on acquisition synergies (Arminak and Innovative) • Continued branch ramp-up (U.S
Slide 7: Acquisition Update – YTD 2013
Acquisition Update – YTD 2013 Short-term margin impact of bolt-on acquisitions – track record of successful acquisitions and synergy attainment. . 7 Acquisition Date Location Segment Product Geography Customer January 14 Brazil Energy P P January 28 California Aerospace & Defense P P March 26 United
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Second Quarter Summary
Second Quarter Summary • Sales increased 11.7% as compared to Q2 2012 – sales increased in five of six segments • Organic initiatives contributed more than 50% of growth • Margin expansion in many of the legacy businesses • Operating profit was negatively impacted by acquisition-related costs and co
Slide 10: Sales Bridge: Q2 2012 to Q2 2013
Q2 2012 Packaging Energy A&D Eng. Comp Cequent APEA Cequent Americas Energy A&D Cequent APEA Cequent Americas Q2 2013 $338.4M Arrow $378.0M LTM Acquisitions Sales Bridge: Q2 2012 to Q2 2013 Legacy Businesses • Record quarterly sales achieved Q2 2013 • More than 50% of sales increase driven by organi
Slide 11: Operating Profit Margin Bridge: Q2 2012 to Q2 2013
Q2 2012 Productivity Economics Manufacturing Inefficiencies Engine Business Growth Investment Purchase Accounting Acquisition Diligence Mix Operating Profit Margin Bridge: Q2 2012 to Q2 2013 Note: Above reflects operating profit margin excluding Special Items and corporate expenses. “Special Items”
Slide 12: Segment Highlights
Segment Highlights
Slide 13: Packaging
Packaging Q2 2013 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 • Sales of industrial closures increased, due to increases in North Americ
Slide 14: Energy
Energy (dollars in millions) Q2 2013 Results: • Sales increased as a result of recent bolt-on acquisitions, sales into the engineering and construction market and increased sales generated by the European branches • Operating profit increased, while the related margin percentage decreased as the mar
Slide 15: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Leverage positive end market trends including composite aircraft and robotic assembly • Capture incremental opportunities in emerging markets • Drive ongoing Lean initia
Slide 16: Engineered Components
Engineered Components (dollars in millions) 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 •
Slide 17: Cequent (APEA & Americas)
Cequent (APEA & Americas) (dollars in millions) $46.4 Q2 2013 Results: • Sales in Americas increased primarily due to higher sales within the automotive OE, aftermarket and retail channels, as well as the July 2012 acquisition in Brazil • Americas operating profit and margin(1) decreased as a result
Slide 18: First Half 2013 Summary
First Half 2013 Summary • Organic growth achieved through product innovation, geographic expansion and market share gains • Five bolt-on acquisitions in the first half – future synergies will deliver improved profitability and growth • Generated double-digit earnings growth and record EPS • Majority
Slide 19: Outlook and Summary
Outlook and Summary
Slide 20: 2013 Outlook Reaffirmed
2013 Outlook Reaffirmed Outlook as of 7/25/13 Comments Sales Growth 6% to 8% Recent acquisitions increase growth expectations to higher end of range Earnings Per Share, diluted(1) $2.15 to $2.25 Midpoint of 2013 EPS outlook represents a more than 19% increase as compared to 2012 Free Cash Flow(2) $4
Slide 21: Strategic Aspirations
Strategic Aspirations Strategic aspirations are the foundation for the future. 21 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fu
Slide 22: Questions & Answers
Questions & Answers
Slide 23: Appendix
Appendix
Slide 24: First Half 2013 Summary
First Half 2013 Summary • Sales increased 12.5% as compared to YTD 2012 – sales increased in five of six segments • Investments in bolt-on acquisitions, new products and geographic expansion driving positive results • Productivity efforts contributed to funding growth initiatives • Operating profit
Slide 25: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 25 June 30, December 31, 2013 2012 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….18,830$ 20,580$ Receivables, net………………………………………………….………………………….. 207,860 150,390 Inventories .…………………………………………
Slide 26: Capitalization
Capitalization 26 (Unaudited, dollars in thousands) June 30, December 31, 2013 2012 Cash and Cash Equivalents……………………………..………………… 18,830$ 20,580$ Credit Agreement……….……………………………….. 412,210 399,500 Receivables facility and other………………………..….. 68,440 22,940 480,650 422,440 Total Debt………………………...………………
Slide 27: Consolidated Statement of Income
Consolidated Statement of Income (Unaudited, dollars in thousands, except for per share amounts) 27 Six months ended 2013 2012 2013 2012 Net sales.................................................................................... 378,030$ 338,430$ 715,810$ 636,000$ Cost of sales....................
Slide 28: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 28 2013 2012 Cash Flows from Operating Activities: Net income..................................................................................................................... 41,840$ 29,420$ Adjustments to reconcile net income
Slide 29: Company and Business Segment Financial Information
Company and Business Segment Financial Information 29 Three months ended 2013 2012 2013 2012 Packaging Net sales………………………...………………………………………… 78,640$ 70,700$ 152,990$ 125,010$ Operating profit…………………………………………………………… 19,600$ 16,570$ 34,230$ 26,460$ Energy Net sales………………………………………………………………….. 58,820$ 4
Slide 30: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 30 (Unaudited, dollars in thousands, except for per share amounts) 2013 2012 2013 2012 Income from continuing operations, as reported………………………………………………..………………….. 27,100$ 17,170$ 41,140$ 29,420$ Less: Net incom
Slide 31: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 31 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended June 30, 2013 ………………………………………………………...……………………….. 44,800$ Net income attributable to partially-owned subsidiaries…….……………………………………………………………………