Slide 1: Presentation to Investors
Presentation to Investors June 15, 2005
Slide 2: Agenda
Agenda Welcome Compac Overview & Plant Tour TriMas Overview Rieke Presentation Fastening Systems & Industrial Specialties Presentation Cequent Presentation Lunch – Q&A
Slide 3: Company Overview
Company Overview Grant Beard President & Chief Executive Officer
Slide 4: Q1 2005 Financial Highlights
Q1 2005 Financial Highlights First quarter sales $292.8 million, increase of 12.2% over Q1 2004 Adjusted EBITDA* within quarter was $32.7 million, an increase of $2.6 million compared to Q1 2004 Q1 2005 operating income was $23.3 million, an increase of $3.1 million compared to Q1 2004 Net income wi
Slide 5: Q1 Revenue and Adjusted EBITDA
Q1 Revenue Q1 Adjusted EBITDA Q1 2005 Financial Highlights ($ in millions)
Slide 6: Q1 2005 Financial Highlights
Q1 2005 Financial Highlights Steel costs continued to challenge operating margins in the quarter – most direct impact on Cequent and Fastening Systems Recovering approximately 85% of steel cost increases from customers via pricing TriMas ended quarter with $813.4 million of combined debt and receiva
Slide 7: Cequent Transportation Accessories
Cequent Transportation Accessories Q1 2005 Operating Highlights Q1 2005 sales increased $11.1 million to $140.6 million Unit volume essentially flat when adjusted for steel Softer than expected demand for towing products in wholesale distributor and installer markets after strong E.O.P. in Q4 2004 C
Slide 8: Rieke Packaging Systems
Rieke Packaging Systems Q1 2005 Operating Highlights Net sales for the quarter were $34.1 million, up 12.2% compared to Q1 Core product sales volume increased approximately $4.0% while new specialty dispensing product revenues increased $4.3 million in the quarter Rieke launched 8 new pump dispensin
Slide 9: Fastening Systems Group Operating Highlights
Q1 2005 Operating Highlights Q1 2005 sales increased 14.2% or $5.5 million to $44.2 million Sales of industrial fastener products remained strong in the quarter Sales of aerospace fasteners in the quarter increased 8.9% compared to prior year Operating income for Q1 2005 was $0.8 million, a $2.4 mil
Slide 10: Industrial Specialties Group
Industrial Specialties Group Q1 2005 Operating Highlights Net sales for Q1 2005 were $73.8 million, increase of 18.4% Operating income for the quarter increased 10.7% to $8.5 million Adjusted EBITDA for the quarter was $10.4 million compared to $9.5 million in Q1 Incremental costs associated with fa
Slide 11: Q1 2005 New Sales
Product Customer Run Rate Industrial Specialties Group Product Customer Run Rate Cequent Transportation Accessories Product Customer Run Rate Product Customer Run Rate Rieke Packaging Systems Q1 2005 New Sales Gaskets National Oilwell 2.6 $ Gaskets Total Petroleum 0.2 Gaskets Imperial Oil 0.2 Gasket
Slide 12: Focus & Priorities
Focus & Priorities Working capital reductions and free cash flow, positively impacted by lower capex and non-recurring activity, will drive substantial debt reduction by year end SG&A costs will be flexed across all of TriMas consistent with demand in end customer markets – especially within the Ceq
Slide 13: Financial Overview
Financial Overview Skip Autry Chief Financial Officer
Slide 14: Balance Sheet
Mar. 31, Dec. 31, 2005 2004 (unaudited - in millions) Assets Current Assets Cash & Cash Equivalents 3.9 $ 3.1 $ Receivables 127.4 93.4 Inventories 176.6 180.0 Deferred Income Taxes 17.5 17.5 Prepaid Expenses and Other Current Assets 7.3 8.5 Total Current Assets 332.7 302.5 Property & Equipment, Net
Slide 15: Condensed Statement of Operations
Q1 2005 Q1 2004 (unaudited - in millions, except per share amounts) Net sales 292.7 $ 260.9 $ Cost of sales (227.2) (196.8) Gross profit 65.5 64.1 Selling, general and administrative expenses (42.5) (43.7) Gain (loss) on dispositions of property & equipment 0.2 (0.3) Operating profit 23.2 20.1 Other
Slide 16: Cash Flow Highlights
For the Three Months Ended March 31, Cash Flow Highlights (unaudited - in millions) Cash provided by (used for) operating activities (11.4) $ 21.6 $ Capital expenditures (4.5) (14.8) Proceeds from sales of fixed assets 0.9 0.2 Acquisition of businesses, net of cash acquired - (5.5) Cash used for inv
Slide 17: Cost Reduction/Profit Improvement Initiatives
Cost Reduction/Profit Improvement Initiatives Represents a continuation of our game plan Mentioned a $10 million run rate target in Cequent in the earnings call Goal has now expanded to approximately $13 million Are now ready to expand the program across TriMas: Improve earnings and cash flow perfor
Slide 18: Bank Compliance
Q2 Bank Compliance Leverage covenant is 5.5x in Q2, 5.25x in Q3 and 5.0x in Q4 Have been close in each of the last two quarters – no way to live! Steel increases in 2005 cost the Company $75 to $100 million in liquidity (e.g. higher inventory and receivable levels, lower payables levels and lower EB
Slide 19: Guidance
Guidance Have not given guidance historically Aftermarket business is not precisely predictable (receive orders on day “1” and ship on day “2”) – no backlog ISG businesses are all on positive trends Rieke continues to see market expansion FSG has stabilized but now needs higher sales levels as we wo
Slide 20: Rieke Packaging Systems
Rieke Packaging Systems Lynn Brooks Group President
Slide 21: Consumer Products Core Products
Consumer Products Core Products Rieke Packaging Systems "Razor-blade" model with strong operating leverage Promising growth prospects
Slide 22: Rieke Packaging Systems
Rieke Packaging Systems 50% of products IP-protected Diverse end markets Leading market shares Benefiting from industrial recovery Strong growth drivers: New product launches Bundling and cross selling International business New plastic injection molding facility in China to supply specialty dispens
Slide 23: Rieke New Products
Revenue Opportunity & Awarded Business ($mm) Major Business Awards Rieke New Products Target market size is estimated at $300 million and is growing at 9% annually new products introduced from late 2002 through Q1 2005 Average concept to launch: 15 months Margins are similar to core products Capacit
Slide 24: Rieke Customer Forecast – Remainder of 2005
North America Europe Rieke Customer Forecast – Remainder of 2005 Petroleum – 5-10% growth in Chemical – Overall, double digit growth Ag Chem – Overall, double digit growth Paints – Overall, flat to 5% Steel Drums – Flat to down Medical – Flat Ag Chem – Flat Steel Drums – Flat to down Plastic Drum –
Slide 25: Fastening Systems & Industrial Specialties
Fastening Systems & Industrial Specialties Grant Beard Interim Group President
Slide 26: Frankfort Bolt-Making Comparison
Frankfort Bolt-Making Comparison Production very good at Frankfort and Wood Dale in Q1 – Combined daily average of 281,000 lbs. Reduced past due orders from over $7 million in January to under $2 million at end of March Reduced spending in all major categories Inventory grew through first quarter, w
Slide 27: New Business Update
2004 Actual 2005 Impact 2006 Impact 2007 Impact 2008 Impact Status ($ in millions) New Business Update Sales up from budgeted levels despite challenging production environment at GM and Ford Significant market share gains at Mark IV Automotive Contribution margins exceeded budget due to favorable cu
Slide 28: Bookings and Backlog
Bookings and Backlog Record incoming orders of $15.8 million March 2005 record production month of 42.4k pieces per day Production for Q1 up 32% over 2004 average Improved productivity of 6.5% for the quarter over 2004 Incoming business and total backlog reached record levels in Q1
Slide 29: Drilling
Drilling activity at 4/8/05 shows 1,329 active rigs, represents 10% improvement over prior 12 months Good indication of future production Engine sales expected to remain strong especially on Climax engine line Projecting engine sales in 2005 to be approximately 70% ahead of Continue to push product
Slide 30: Operations update
During Q1 experienced weak sales in January combined with depressed material margins, resulting in shortfalls in both revenue and EBITDA Sales in Q2 expected to improve due to further selling price increases and business growth from export and new business opportunities Purchasing initiatives implem
Slide 31: Largest revenue quarter
Q1 2005 largest revenue quarter in Lamons’ history Major turnarounds with: Exxon, Premcor, BP, Citgo, Dow and Bayer Canadian operations expanding into refining industry – new contracts with Imperial Oil and North Atlantic Refining Latin America/Europe sales on plan in Q1 2005 - $647K vs. $418K in Q1
Slide 32: Revenue
Revenue strong for Q1 2005 with order strength continuing into Q2 Steel more available but prices continued to rise in Q1. Indication of prices being flat or giving back for Q2 deliveries March was record production/shipping month over last five years with over 30,000 units produced Secured first or
Slide 33: FMS
FMS shipped record number of launchers in Q1 2005 - 7,310 LAW next generation – Nammo version in prototype stages, Talley version in design stage and should be available for review in Q3 LAW relocation to Pennsylvania – complete 2005 assembly requirements in August at Amarillo, move equipment and re
Slide 34: Orders
Orders continued strong for both Keo and Richards Micro-Tool in Q1 2005 Sales into medical market exceeded budget (>$250K) Cost of steel continues to increase Implemented second price increase in last six months New product sales for Keo brand (ZErO Flute Countersinks, Kounterbores) were 12% above b
Slide 35: Cequent Transportation Accessories
Cequent Transportation Accessories Ed Schwartz Group President
Slide 36: CEQUENT
Cc] CEQUENT peese yom: a) RMZOM Noy "Stcxonsna Wesbar Bargman. isu. mean e Pro's Brand! ROOF RACKS
Slide 37: Cequent business units and locations
Plymouth, Michigan Plymouth, Michigan Cequent Towing Products Cequent Towing Products Cequent Trailer Products Cequent Trailer Products Cequent Australia Cequent Australia Cequent Consumer Products Cequent Consumer Products Cequent Electrical Products Cequent Electrical Products Plymouth, Michigan P
Slide 38: Cequent Major Facilities
Cequent Major Facilities Goshen, IN South Bend, IN Mosinee, WI Juarez, Mexico Tekonsha, MI Plymouth, MI
Slide 39: Cequent's Sales Mix
Cequent Sales by Region Cequent Sales by Business Unit Cequent Sales by Product Group Cequent Sales by Distribution Channel Cequent’s Sales Mix (March 31, LTM) Total Cequent Net Sales . $522.5 Million
Slide 40: Market Overview - Recreational Vehicle Segment
U.S. RV Segment by Product Group Total U.S. Towable RV Trailer Market RV Shipment Historical Volume Growth Channel Strategic Plan - INSTALLER/WD Market Overview - Recreational Vehicle Segment SOURCE: RVIA U.S. RV Market ...... $14.0 billion (Retail Value) SOURCE: RVIA U.S. Towable Trailer Market ...
Slide 41: Market Overview - RV Segment Demand Drivers
Driving Age Population Growth is Driving Fleet Growth and Increased Consumer spending Regular Unleaded Gasoline Prices Have Been on the Rise U.S. Prime Lending Rate Channel Strategic Plan - COMMERCIAL Market Overview – RV Segment Demand Drivers SOURCE: Econstats.com SOURCE: Energy Information Admini
Slide 42: Market Overview - Marine Segment
U.S. Marine Segment by Type of Product Total Recreational Boats Owned in the U.S. Boat Trailer Unit Sales Channel Strategic Plan - COMMERCIAL Market Overview - Marine Segment Total Unit Sales ....... 838,500 SOURCE: NMMA SOURCE: NMMA SOURCE: NMMA Boat trailer sales peaked in 1995 and have declined s
Slide 43: Market Overview - Marine Segment Volume Drivers
Outboard Boats Sales Inboard Boat Sales Stern Drive Boat Sales Personal Watercraft Sales Sailboat Sales Channel Strategic Plan - COMMERCIAL Market Overview - Marine Segment Volume Drivers SOURCE: NMMA, 1991-2002 Annual Sailing Business Review. 1991-2004 CAGR ........ 0.8% 1991-2004 CAGR ........ 5.7
Slide 44: Market Overview - Other Market Segments
U.S. Equestrian (1) Population U.S. Industrial Trailer Production U.S. Gross Domestic Product YOY % Change Channel Strategic Plan - COMMERCIAL Market Overview - Cequent’s Other Market Segments SOURCE: Census of Agriculture 1992 and 2002 (1) Horses and ponies and farms reporting horses and ponies. (h
Slide 45: Market Overview - Agricultural Equipment Segment
North American Agricultural Equipment Demand U.S. Farm Machinery and Equipment Shipments Channel Strategic Plan - COMMERCIAL Market Overview - Agricultural Equipment Segment SOURCE: Freedonia SOURCE: U.S. Census Bureau ($ millions) The three largest agricultural equipment buying regions of the World
Slide 46: Cequent Market Share - Towing
Cequent Towing Products 63% Cequent Towing Products 49% Cequent Market Share - Towing Source: Internal company estimates
Slide 47: Cequent Market Share - Trailer
Cequent Trailer Products 61% Cequent Trailer Products 49% Jacks Couplers Cequent Market Share - Trailer Source: Internal company estimates
Slide 48: Cequent Market Share - Electrical
Cequent Electrical Products 63% Cequent Towing Products 49% Cequent Market Share - Electrical Source: Internal company estimates
Slide 49: Cequent Market Share - Consumer
Cequent Consumer Products 37% Cequent Consumer Products 31% Loading Ramps Tie Downs & Stretch Cords Cequent Market Share - Consumer Source: Internal company estimates
Slide 50: Cequent Towing: Extensive Product Portfolio
Cequent Towing: Extensive Product Portfolio Standard Hitch Storage Box
Slide 51: Cequent Towing: Channels of Distribution
Cequent Towing: Channels of Distribution RV Distributors The Reese brand is more important in this channel. The product mix is oriented towards heavy duty hitches (i.e., fifth wheel), core-line hitches, and traditional accessories. Product line sales generated through this channel are estimated as f
Slide 52: Cequent Towing: Sales by Channel
Estimated Sales by Channel Cequent Towing: Sales by Channel Auto Installer/ Distributor, 46%
Slide 53: Cequent Trailer: Extensive Product Portfolio
Cequent Trailer: Extensive Product Portfolio Ramps Bull Dog Couplers Bull Dog Jacks Swing Away Tongue
Slide 54: Cequent Trailer: Sales Breakdown
Cequent Trailer: Sales Breakdown
Slide 55: Cequent Consumer: Product Portfolio
Cequent Consumer: Product Portfolio Load: Champ ramps and Ramparts ramp kits provide sturdy, safe loading of motorcycles, ATVs, lawn tractors and other equipment. Anchor: A full line of anchor systems and hardware to anchor heavy loads, attach tie downs, truck caps, toolboxes, camper shells, over-th
Slide 56: Cequent Consumer: Channels of Distribution
Estimated Sales by Channel Estimated Sales by Product Cequent Consumer: Channels of Distribution
Slide 57: Cequent Electrical: Product Portfolio
Cequent Electrical: Product Portfolio Inertial Brake Control Breakaway Kits Brake Control Harness Proportional Brake Control Brake Hardware T-One Connector Wiring Harness 5, 6, 7 Way Connectors Trailer Lighting Tail-light Wiring Kits Interior and Exterior Illumination Products Electrical Accessories
Slide 58: Cequent Electrical: Channels of Distribution
Estimated Sales by Channel Estimated Sales by Product Cequent Electrical: Channels of Distribution
Slide 59: Cequent Australia: Product Portfolio
Cequent Australia: Product Portfolio Ladder Rack System Fishing Rod Locking Arms Snow Ski Diagonal Locking Arms Bike Carrier Tie Downs Luggage Pods Luggage Pods Cargo Barriers Hitch-Mounted Bike Rack Tow Bar Weight Distribution
Slide 60: Cequent Australia: Sales by Product
Estimated Gross Sales by Product Cequent Australia: Sales by Product
Slide 61: Wrap-Up
Wrap-Up Events beyond our control are impacting the Company Steel End market demand – Cequent We are dealing with these events on a number of fronts Cost reductions – continuing the journey Price increases Customer/market tough decisions We appreciate your support and thank you for attending Q&A?
Slide 62: Thank You!
do TRIMAS Thank You!