Slide 1: Second Quarter 2012 Earnings Presentation
Second Quarter 2012 Earnings Presentation July 30, 2012 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 • Record quarterly sales of $338 million – up 17.5% vs. Q2 2011 – Continuing to gain market share in multiple businesses via rapid responses to short term customer needs – Investments in new products and higher growth markets showing results – Bolt-on acquisi
Slide 5: Second Quarter Business Highlights
• New program awards from global customers • New consolidated plant in Melbourne opened; Mexico production expansion on-track Second Quarter Business Highlights 5 • First shipments to global consumer packaged goods dispensing customer in Asia • Integration of dispensing systems sales force beginning
Slide 6: CIFAL Acquisition
CIFAL Acquisition • Establishes energy footprint in Brazil – a region of the world heavily investing in new refineries and off-shore platforms • São Paulo manufacturer and supplier of specialty fasteners and stud bolts for the oil and gas industry • Fastener “hub” similar to South Texas Bolt & Fitti
Slide 7: Opportunistic Bolt-on Acquisition
Opportunistic Bolt-on Acquisition Execute on opportunistic bolt-on acquisition in attractive market – evaluating current pipeline of opportunities. 7 Trail Com • Headquartered in Auckland, New Zealand • Leading distributor of towing accessories and trailer components • Offer existing product line in
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Second Quarter Summary
Second Quarter Summary • Sales increased 17.5% vs. Q2 2011 – record sales quarter in several businesses and total company • Investments in new products, geographic expansion and bolt-on acquisitions driving positive results • Productivity efforts continued to fund growth initiatives – Productivity s
Slide 10: Capitalization, Total Debt and Leverage Ratio
10 ($ in millions) Capitalization Total Debt and Leverage Ratio (including A/R Facility) Comments: • Redeemed $50 million of the 9¾% senior secured notes • Reduced interest expense by $1.3M in Q2 2012, as compared to Q2 2011 • Q2 2012 leverage ratio of 2.19x • Credit rating upgrades from Moody’s and
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging
Packaging Q2 2012 Results: • Sales increased as a result of acquisitions and specialty systems product sales gains, partially offset by a decrease in industrial closure products sales and unfavorable currency exchange — Continued softness in Europe • Operating profit increased primarily due to highe
Slide 13: Energy
Energy ($ in millions) Q2 2012 Results: • Sales increased as a result of continued market share gains of highly engineered bolts and additional sales generated by newer branches • Higher levels of turnaround activity at refineries and petrochemical plants • Operating profit decreased due to a less f
Slide 14: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Capitalize on expectations for continued ramp-up of large frame, composite aircraft • Continue to expand sales and manufacturing footprint • Drive ongoing Lean initiativ
Slide 15: Engineered Components
Engineered Components ($ in millions) Key Initiatives: • Expand complementary product lines at well site • Grow natural gas compression products and capitalize on natural gas opportunities • Leverage broader product line to capture new markets • Continue to reduce costs and improve working capital t
Slide 16: Cequent (Asia Pacific & North America)
Cequent (Asia Pacific & North America) ($ in millions) $46.4 Q2 2012 Results: • Sales in North America increased across all channels • North America operating profit increased due to higher sales levels and decreased SG&A – Operating profit margin(1) improved 120 basis points compared to Q2 2011 • S
Slide 17: Outlook and Summary
Outlook and Summary
Slide 18: First Half 2012 Summary
First Half 2012 Summary • Ninth consecutive quarter of double-digit sales and earnings growth(1) • Strong organic growth through product innovation, geographic expansion, market share gains and increased end market demand • Acquisitions on schedule with revenue and cost synergies – pipeline for addi
Slide 19: 2012 Outlook
2012 Outlook Outlook as of 2/27/12 and 4/26/12 Outlook as of 7/30/12 Sales Growth 7% to 10% 10% to 14% Earnings Per Share, diluted(1) $1.75 to $1.85 $1.75 to $1.85 (Post May equity offering and 4 million incremental shares) Free Cash Flow(2) $40 to $50 million $40 to $50 million Capital Expenditures
Slide 20: Strategic Aspirations
Strategic Aspirations Strategic aspirations are our foundation for 2012. 20 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fund gro
Slide 21: Questions & Answers
Questions & Answers
Slide 22: Appendix
Appendix
Slide 23: YTD Summary
YTD Summary • Sales increased 16.3% vs. YTD Q2 2011 as a result of the successful execution of the Company’s growth initiatives • Productivity efforts continue to fund growth and offset commodity inflation • Income(1) and EPS(1) increased 25.7% and 20.2% compared to YTD Q2 2011 due to increased volu
Slide 24: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 24 June 30, December 31, 2012 2011 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….29,280$ 88,920$ Receivables, net of reserves ………………………………………………….………………………….. 186,720 135,610 Inventories .………
Slide 25: Capitalization
Capitalization 25 (Unaudited, dollars in thousands) June 30, December 31, 2012 2011 Cash and Cash Equivalents……………………………..………………… 29,280$ 88,920$ Term loan…………………………………………………. 217,750 223,870 Receivables securitization facility……………………………….. - - Revolving credit facilities……………………………….. - - Non-U.S.
Slide 26: Consolidated Statement of Operations
Consolidated Statement of Operations (Unaudited, dollars in thousands, except for per share amounts) 26 Six months ended 2012 2011 2012 2011 Net sales.................................................................................... 338,430$ 288,090$ 636,000$ 546,650$ Cost of sales................
Slide 27: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 27 2012 2011 Cash Flows from Operating Activities: Net income..................................................................................................................... 29,420$ 28,840$ Adjustments to reconcile net income
Slide 28: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited, dollars in thousands, except per share amounts) 28 2012 2011 2012 2011 Income from continuing operations, as reported 17,170$ 16,010$ 29,420$ 26,700$ Less: Net income attributable to noncontrolling
Slide 29: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops 29 (Unaudited, dollars in thousands) Three months ended 2012 2011 2012 2011 Packaging Net sales 70,700$ 47,900$ 125,010$ 91,800$ Operating profit 16,570$ 15,070$ 26,460$ 26,900$ Energy Net sales 47,170$ 42,170$ 97,760$ 83,120$ Operating
Slide 30: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 30 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended June 30, 2012 ……………………………………………………………….. 60,670$ Net income attributable to partially-owned subsidiaries…….………………………………………………………….. (630) Inte