Slide 1: Second Quarter 2007 Earnings Call
Second Quarter 2007 Earnings Call August 2, 2007
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: 2007 Second Quarter Summary
2007 Second Quarter Summary Record sales of $290.8 million in Q2 2007 Increased sales and operating earnings in 4 of 5 segments Excluding the impact of costs and expenses related to the use of IPO proceeds: Operating profit would have improved 16.1% to $35.9 million, as compared to $31.0 million in
Slide 4: Second Quarter 2007 Operating Highlights
Second Quarter 2007 Operating Highlights
Slide 5: Packaging Systems
Packaging Systems Sales increase due to continued market penetration and introduction of new products Sales of core industrial products flat with Q2 2006 Laminates business continues to be heavily influenced by North America construction markets Growth in Adjusted EBITDA and operating profit in line
Slide 6: Energy Products
Energy Products Continued strong sales of gaskets to refinery and petrochemical industries due to product expansion and continued high levels of capacity utilization Sales of engine and well-site repair parts declined between years due to sluggish drilling activity in Western Canada Expect engine bu
Slide 7: Industrial Specialties
Industrial Specialties Sales of aerospace products increased 28.4% as compared to Q2 2006 fueled by introduction of new products and market share gains Market demand for industrial cylinders and shell casings remains strong as sales increased 24.4% and 23.0%, respectively, compared to Q2 2006 Demand
Slide 8: RV & Trailer Products
RV & Trailer Products Sales increased 3.1% in an end market estimated to be 12% lower compared to prior year levels Declines in profitability due principally to closure costs of our Wakerley, Australia facility and launch costs for new programs in Thailand Focus is on gaining share in North America
Slide 9: Recreational Accessories
Recreational Accessories Sales decreased 5.0% but the group outperformed its end markets which were estimated to be 12% lower compared to prior year levels Improved profitability compared to Q2 2006 as the benefits of sourcing initiatives and other cost reduction activities were realized Weak end-ma
Slide 10: Second Quarter 2007 Financial Highlights
Second Quarter 2007 Financial Highlights
Slide 11: Initial Public Offering of Stock
Initial Public Offering of Stock Sold 12.7 million share at $11.00 per share Net proceeds to the Company of $126.5 million, after consideration of underwriting discounts and commissions and other offering expenses of $12.7 million. Net proceeds of the offering, together with $10.1 million of revolvi
Slide 12: 2007 Second Quarter Results
2007 Second 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 before interest
Slide 13: Impact of costs related to use of IPO proceeds
2007 Second Quarter Results Impact of costs and expenses related to the use of IPO proceeds on reported results of operations (Unaudited - $ in thousands, except for share amounts) Earnings (Loss) Operating Income Income (Loss) (2) Per Share - Diluted (3) Adjusted EBITDA (4) As reported - Three mont
Slide 14: TriMas Capitalization
TriMas Capitalization At June 30, 2007, TriMas had $2.7 million in cash and approximately $118.4 million of available liquidity under its existing revolving credit facilities and securitization program. ($ in thousands) “June 30, 2007” "June 30, 2006” “December 31, 2006” Cash and Cash Equivalents $2
Slide 15: 2007 Outlook
2007 Outlook Guidance Qo TRIMAs ee SS ee ourens INNOVATION @ INDUSTRY e GROWTH
Slide 16: Second Quarter 2007 Summary
Second Quarter 2007 Summary Record sales for the quarter Solid operating performance and improved profitability, before one-time costs and expenses related to the use of IPO proceeds Successful completion of IPO Total debt reduction, including A/R Securitization, of $102.7 Million vs. Q2 2006 Focus
Slide 17: Q&A
% ho TRIMAS CORPORATION Q&A
Slide 18: Appendix
CORPORATION Appendix
Slide 19: Balance Sheet
Balance Sheet (Unaudited - $ in thousands) June 30, December 31, 2007 2006 Assets Current assets: Cash and cash $2,720 $3,600 Receivables, net 114,420 99,240 Inventories, 172,380 165,360 Deferred income taxes 24,310 24,310 Prepaid expenses and other current assets 6,540 7,320 Assets of discontinued
Slide 20: Statement of Operations
Statement of Operations (Unaudited - $ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2007 2006 2007 2006 Net sales $290,830 $279,640 $577,520 $552,670 Cost of sales (209,530) (204,580) (416,930) (404,270) Gross profit 81,300 75,060 160,590 148,400 Selling, general and administr
Slide 21: Statement of Operations (cont'd)
Statement of Operations (cont’d) (Unaudited - $ in thousands, except for share amounts) Three Months Ended June 30, Six Months Ended June 30, 2007 2006 2007 2006 Income (loss) from continuing operations $(3,190) $6,540 $5,200 $11,470 Loss from discontinued operations, net of income taxes - (4,030) (
Slide 22: Cash Flow Highlights
Cash Flow Highlights For the Six Months Ended June 30, (Unaudited - $ in thousands) 2007 2006 Cash provided by operating activities $25,940 $17,340 Capital expenditures (14,860) (11,170) Acquisition of leased assets (29,960) (3,140) Net proceeds from disposition of businesses and other assets 5,850
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 cumulative effect of accounting change, interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment charges and write-offs, non-cash losses on sale-leaseback
Slide 24: Impact of Costs and Expenses Related to Use of IPO Proceeds
Impact of Costs and Expenses Related to Use of IPO Proceeds (1) Operating Income, Income (Loss), Earnings (Loss) Per Share - Diluted and Adjusted EBITDA, all from continuing operations, as adjusted for the impacts of transaction costs and expenses associated with the use of proceeds resulting from c
Slide 25: Key Covenant Calculations
Key Covenant Calculations (Unaudited - $ in thousands) Leverage Ratio Total Indebtedness at June 30, 2007 (1) $670,740 LTM EBITDA, as defined (2) $159,290 Leverage Ratio - Actual 4.21 X Leverage Ratio - Covenant 5.65 X Coverage Ratio LTM EBITDA, as defined (2 $159,290 Cash Interest Expense (2) $76,2
Slide 26: LTM EBITDA as Defined in Credit Agreement
LTM EBITDA as Defined in Credit Agreement (Unaudited - $ in thousands)Reported net loss for the twelve months ended June 30, 2007 $(131,150) Interest expense, net (as defined) 76,310 Income tax expense (benefit) (6,030) Depreciation and amortization 38,060 Extraordinary non-cash charges 132,260 Hear