Slide 1: First Quarter Earnings Presentation
First Quarter Earnings Presentation A p r i l 2 8 , 2 0 1 5 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
Opening Remarks • First quarter sales of approximately $366 million – relatively flat year- over-year due to external headwinds • Attained $0.41(1) EPS for quarter – as expected • Achieved 20 basis point improvement in operating profit margin(1) – more work to do • Focus on mitigating internal and e
Slide 5: External Headwinds and Tailwinds
External Headwinds and Tailwinds Headwinds • Oil and commodity price declines • Drilling and well completion activity • Capex reductions • Resin and specialty steel prices • Distributor inventory de-stocking and consolidation • Aerospace and Cequent • West Coast port delay impact • Packaging, Energy
Slide 6: Key Initiatives Update
Key Initiatives Update • Packaging – • Global reorganization underway to better serve markets and customers • Leveraging new, lower cost footprint to support global growth • Aerospace – • Leveraging and integrating four separate aerospace platforms to better serve customers and enhance margins • Pro
Slide 7: Cequent Spin-off Update
Cequent Spin-off Update • Spin-off to result in two independent, publicly traded companies with increased strategic flexibility • Filed S-1 Registration Statement on March 31st • Capital structuring in process • Transition services agreement being finalized • Investor and Analyst Day for both TriMas
Slide 8: Financial Highlights
Financial Highlights
Slide 9: First Quarter Summary
First Quarter Summary • Q1 sales relatively flat as compared to Q1 2014 – sales increased primarily due to the Allfast acquisition in Aerospace, significantly offset by impact of lower oil prices, port delays and unfavorable currency exchange • Q1 operating profit increased and the related margin pe
Slide 10: EPS Bridge from Q1 2014 to Q1 2015
EPS(1) Bridge from Q1 2014 to Q1 2015 10 Focus on capturing opportunities and mitigating risks. (1) Excludes the impact of “Special Items.” For a detailed reconciliation, excluding “Special Items,” please see the Appendix. $0.42 $0.41 $(0.10) $(0.02) $0.10 $0.01 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 2
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging
Packaging • Sales negatively impacted by unfavorable currency exchange and West Coast port delays • 2014 had several new significant customer product launches – none scheduled for first half of 2015 • Favorable product sales mix resulting from increased North American industrial closure demand suppo
Slide 13: Energy
Energy • Sales decreased slightly due to the impact of lower oil prices on upstream customers and unfavorable currency exchange • Sales growth from international branches • No significant change in product sales mix • Sequential margin improvement, but still facing operational challenges Strategies
Slide 14: Aerospace
Aerospace • Sales increased due to Allfast acquisition completed in Q4 2014 – margins still impacted by related purchase accounting adjustments • Lower and less predictable demand from distribution channel – inventory de-stocking continues • Allfast meeting or exceeding expectations – integration la
Slide 15: Engineered Components
Engineered Components • Norris Cylinder sales and margin levels increased • Arrow Engine sales decreased as a result of reduced levels of oil and gas drilling and well completions in response to low oil prices • Aligned Arrow’s cost structure with level of business activity to remain profitable • Sp
Slide 16: Cequent (APEA & Americas)
Cequent (APEA & Americas) $46.4 16 Financial Snapshot Q1 2015 Q1 2014 Variance Sales $35.8 $39.5 -9.2% Operating profit (1) $2.6 $2.5 2.4% Operating profit margin (1) 7.1% 6.3% 80 bps Financial Snapshot Q1 2015 Q1 2014 Variance Sales $106.5 $109.1 -2.3% Operating profit (1) $6.1 $6.7 -8.4% Operating
Slide 17: Segment Performance Summary
Segment Performance Summary 17 Actions in place and taking hold to attain expected margin expansion in 2015. Q1 2015 Q1 2014 Q4 2014 FY 2014 Q1 2015 Q1 2014 Q4 2014 FY 2014 Packaging $79.0 $81.4 $80.7 $337.7 22.4% 22.5% 25.3% 23.9% Energy $51.2 $52.8 $51.3 $206.7 3.5% 4.9% 2.3% 3.1% Aerospace $45.7
Slide 18: Outlook and Summary
R R Outlook and Summary
Slide 19: 2015 – Updated Segment Assumptions
2015 – Updated Segment Assumptions 19 Expect Q2 EPS to be lower than prior year; expect Q3 EPS to be higher than Q2 despite historical seasonality, as margin actions drive second half improvements. Segment Revenue Margin Current Commentary Packaging • Low to mid single-digit growth • 2% to 3% curren
Slide 20: 2015 Outlook
2015 Outlook Full Year Outlook as of 2/25/15 Updated Full Year Outlook as of 4/28/15 Sales Growth Earnings Per Share, diluted(1) $2.10 to $2.20 $2.10 to $2.20 Free Cash Flow(2) $60 to $70 million $60 to $70 million (1) Defined as diluted earnings per share from continuing operations attributable to
Slide 21: Summary
Summary • Execute on margin improvement initiatives • Focus on margins in all businesses – Energy and Aerospace are highest priority • Actions to create one global company for Cequent businesses • Mitigate external headwinds • Uncertain macroeconomic environment • Currency and oil prices • Capitaliz
Slide 22: Questions and Answers
Questions and Answers
Slide 23: Appendix
R R Appendix
Slide 24: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 24 (Dollars in thousands) March 31, December 31, 2015 2014 (unaudited) Assets Current assets: Cash and cash equivalents............................................................. 23,730$ 24,420$ Receivables, net..................................................
Slide 25: Consolidated Statement of Income
Consolidated Statement of Income 25 Three months ended 2015 2014 Net sales................................................................................................. 366,490$ 365,390$ Cost of sales............................................................................................ (268
Slide 26: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 26 2015 2014 Cash Flows from Operating Activities: Net income......................................................................................................................... 13,980$ 19,380$ Adjustments to reconcile net in
Slide 27: Company and Business Segment Financial Information
Company and Business Segment Financial Information 27 (Unaudited, dollars in thousands) Three months ended 2015 2014 Packaging Net sales................................................................................................................................................ 78,960$ 81,430$ Ope
Slide 28: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 28 (Unaudited, dollars in thousands, except for per share amounts) Three months ended March 31, 2015 2014 Income from continuing operations, as reported..........................................................
Slide 29: Current Debt Structure
Current Debt Structure 29 (Unaudited, dollars in thousands) As of March 31, 2015, TriMas had $164.8 million of cash and available liquidity under its revolving credit and accounts receivable facilities. March 31, December 31, 2015 2014 Cash and Cash Equivalents……………………………..………………… 23,730$ 24,420$ Cr
Slide 30: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 30 (Unaudited, dollars in thousands) 63,880$ Interest expense, net (as defined)............................................................................................... 17,090 Income tax expense.....................................................