Slide 1: First Quarter 2010 Earnings Presentation
First Quarter 2010 Earnings Presentation April 29, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 not li
Slide 3: Agenda
Agenda Overview Financial Highlights Segment Highlights Outlook and Summary Questions and Answers Appendix
Slide 4: First Quarter Overview
4 First Quarter Overview Sales up 9% vs. Q1-2009 Led by sales growth in Packaging, Energy and Cequent Fast responses to short-term demands and supply chain disruptions garner sales as end markets improve Investments in new products and markets showing results Productivity initiatives drive additiona
Slide 5: YOY Sales Trend
YOY Sales Trend Historical Quarterly YOY Sales Trend Business cycle showing in recovery patterns. Sales Change -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Packaging Energy Aerospace And Defense Engineered Comp
Slide 6: First Quarter Financial Highlights
First Quarter Financial Highlights
Slide 7: First Quarter Summary
First Quarter Summary ($ in millions, except per share amounts) Revenue $ 220.1 $ 201.7 9.1% Gross Profit $ 63.1 $ 46.5 35.7% Gross Profit Margin 28.7% 23.0% 570 bps Adjusted EBITDA(1) $ 34.1 $ 30.4 12.2% Excl. Total Special Items, Adjusted EBITDA would have been: $ 34.1 $ 20.9 63.6% Excl. Total Spe
Slide 8: Margin Improvements
8 Margin Improvements Continued expansion of margins. Comments: Cost reduction and productivity initiatives improve margins over time Operating profit and Adjusted EBITDA margins improved 550 and 520 bps, respectively, compared to Q1 2009 Plans in place by business to achieve material, labor and ove
Slide 9: Working Capital
9 Working Capital Continued lean initiatives will drive permanent process change and working capital reductions. Comments: Operating working capital at 16.3% of sales vs. 21.4% at Q1 2009 Increase in working capital from Q4 2009 driven by higher receivables resulting from increased sales levels Inve
Slide 10: Capitalization
10 Capitalization ($ in thousands) March 31, December 31, 2010 2009 Cash and Cash Equivalents $ 6,630 $ 9,480 Term loan 250,880 251,580 Revolving credit facilities 13,200 5,100 Non-U.S. bank debt and other 9,350 12,890 273,430 269,570 93/4% senior secured notes, due December 2017 245,090 - 97/8% sen
Slide 11: Segment Highlights
CORPORATION Segment Highlights
Slide 12: Packaging
12 Packaging Results: Q1 sales increased due to growth in specialty dispensing and industrial closure products, as well as the impact of favorable currency exchange Increased sales volumes, cost reduction and productivity actions improved Adjusted EBITDA and operating profit Q1 2010 operating profit
Slide 13: Energy
13 Energy ($ in millions) (1) Adjusted EBITDA and Operating Profit exclude “Special Items” for each period. A detailed schedule of Special Items, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow, are provided in the Appendix. Results: Sales increased due to improv
Slide 14: Aerospace & Defense
14 Aerospace & Defense Key Initiatives: Expand aerospace fastener product lines to increase content and applications per aircraft Drive ongoing Lean initiatives to lower working capital and reduce costs Leverage and develop existing defense customer relationships Consider complementary bolt-on acqui
Slide 15: Engineered Components
15 Engineered Components ($ in millions) Results: Sales increased due to improved demand in specialty fittings and precision cutting tools businesses Sales in the industrial cylinder business declined in Q1 2010 compared to Q1 2009, but improved compared to Q4 2009 Adjusted EBITDA and operating prof
Slide 16: Cequent
16 Cequent ($ in millions) $46.4 Results: Q1 2010 sales increased compared to Q1 2009, resulting from sales improvements in the Australia/Asia Pacific and North American towing, trailer and electrical products businesses, as well as the favorable impact of currency exchange Partially offset by sales
Slide 17: Outlook & Summary
CORPORATION Outlook & Summary
Slide 18: Strategic Aspirations
18 Strategic Aspirations High single-digit top-line growth Earnings growth faster than revenue growth 3% to 5% of total gross cost productivity gains annually – utilize savings to fund growth Invest in growth programs that deliver new products, new markets and expanded geographies Increase revenues
Slide 19: 2010 Outlook
19 2010 Outlook Up 80 to 120 bps Up 60 to 100 bps Recurring Operating Profit $40 to $45 million > $30 million Free Cash Flow(1) $0.65 to $0.75 > $0.60 Diluted EPS (excl. Special Items) 0% - 2% 2% - 5% 3% - 4% 5% - 9% Q1-2010 Q4-2009 Sales Growth 4% - 7% Core growth 3% - 4% New program growth 1% - 3%
Slide 20: 2010 Playbook
20 2010 Playbook TriMas Operating Model is producing results Continue to drive productivity initiatives Continue to improve working capital metrics Optimize growth programs Grow revenue Bumpy economic recovery requires fast responses to win 10 – 20 new product programs in each segment Footprint expa
Slide 21: Questions & Answers
CORPORATION Questions & Answers
Slide 22: TriMas Summary
22 TriMas Summary Five strategic platforms Highly-engineered product portfolio servicing defensible, focused markets Leading market positions Strong brand names Significant diversification End markets Customers and distribution channels Geographies Proven operating model TriMas Operating Model drive
Slide 23: Appendix
CORPORATION Appendix
Slide 24: Statement of Operations
24 Statement of Operations ($ in thousands) Three months ended March 31, 2010 2009 Net sales $ 220,060 $ 201,720 Cost of sales (157,000) (155,260) Gross profit 63,060 46,460 Selling, general and administrative expenses (37,700) (41,300) Gain (loss) on dispositions of property and equipment (310) 40
Slide 25: Condensed Balance Sheet
25 Condensed Balance Sheet ($ in thousands) March 31, December 31, 2010 2009 Assets Current assets: Cash and cash equivalents $ 6,630 $ 9,480 Receivables, net of reserves 128,650 93,380 Inventories 135,730 141,840 Deferred income taxes 24,320 24,320 Prepaid expenses and other current assets 6,420 6,
Slide 26: Reconciliation of Non-GAAP Measures
26 Reconciliation of Non-GAAP Measures Adjusted EBITDA(1) and Free Cash Flow(2) Three months ended March 31, (dollars in thousands) 2010 2009 Net income (loss) $ 5,430 $ (3,680) Income tax expense 4,470 (2,490) Interest expense 14,290 12,530 Debt extinguishment costs — 510 Depreciation and amortizat
Slide 27: Additional Information Regarding Special Items
27 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) Three months ended March 31, (dollars in thousands) 2010 2009 Operating profit from continuing operations, as reported $ 25,050 $ 5,200 Special Items to consider in evaluating quality of earnings
Slide 28: Company and Business Segment Financial Information
28 Company and Business Segment Financial Information – Cont. Ops (Unaudited, $ in thousands) Three months ended March 31, 2010 2009 Packaging Net sales $ 43,600 $ 30,250 Operating profit $ 11,860 $ 5,400 Adjusted EBITDA $ 14,920 $ 8,640 Special Items to consider in evaluating operating profit and A
Slide 29: Company and Business Segment Financial Information (cont.)
29 Company and Business Segment Financial Information – Cont. Ops (cont.) (Unaudited, $ in thousands) Cequent Net sales $ 96,580 $ 90,450 Operating profit (loss) $ 8,120 $ (3,350) Adjusted EBITDA $ 12,120 $ 1,340 Special Items to consider in evaluating operating profit (loss): - Severance and busine
Slide 30: LTM EBITDA as Defined in Credit Agreement
30 ($ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net income for the twelve months ended March 31, 2010 $ 8,890 Interest expense, net (as defined) 47,480 Income tax expense 6,440 Depreciation and amortization 41,790 Extraordinary non-cash charges 3,270 Monitoring fees 2,890 Inte