Slide 1: Third Quarter 2014 Earnings Presentation
Third Quarter 2014 Earnings Presentation O c t o b e r 2 8 , 2 0 1 4 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 – Third Quarter Results
Opening Remarks – Third Quarter Results • Record third quarter sales of approximately $380 million – growth of 7% compared to Q3 2013 – Growth in all six segments – Bolt-on acquisitions and organic growth initiatives adding to top-line • EPS higher than recent expectations • Strong growth and margin
Slide 5: Continuous Improvement
Continuous Improvement • Simplify the business ‒ Divest smaller, non-strategic (lower-growth, lower-upside) pieces of business ‒ Continue to implement and train on Lean, Six Sigma and SIOP • Add people/horsepower ‒ Add and upgrade operations talent – significant progress in 2014 ‒ Add and upgrade op
Slide 6: Allfast Acquisition Update
Allfast Acquisition Update • Closed on October 17th • Funding was secured by $275 million incremental Term Loan A facility, cash and additional borrowings on revolving credit facility ‒ Borrowing rate consistent with Credit Agreement • Integration activities underway – but “business as usual” • Cust
Slide 7: Financial Highlights
Financial Highlights
Slide 8: Third Quarter Summary
Third Quarter Summary • Sales increased 7.1% as compared to Q3 2013 – growth in all six segments • Q3 operating profit and the related margin percentage decreased due to a one-time gain recognized on the sale of the Italian Packaging business in Q3 2013, less favorable product sales mix, manufacturi
Slide 9: YTD 2014 Summary
YTD 2014 Summary • Sales increased 7.5% as compared to YTD 2013 as a result of acquisitions and organic growth initiatives, offsetting challenges in energy end markets and the Q3 2013 disposition of the Italian rings and levers business • YTD operating profit(1) improved due to increased sales level
Slide 10: Segment Highlights
Segment Highlights
Slide 11: Packaging Q3 2014 Results
Packaging Q3 2014 Results: • Sales increased primarily as a result of specialty systems product sales gains — Increased demand from North American, European and Asian dispensing customers — Positive impact of July 2014 acquisition of Lion Holdings, a manufacturer of highly engineered dispensing solu
Slide 12: Energy Q3 2014 Results
Energy Q3 2014 Results: • Sales increased from prior year quarter due to increased demand in North America and higher sales at several international branches and acquisitions • Operating profit and margin were negatively impacted by continued less favorable product mix toward standard gaskets and bo
Slide 13: Aerospace
Aerospace Key Initiatives: • Integrate Allfast, as well as optimize Martinic Engineering and Mac Fasteners • Expand aerospace fastener product lines to increase content and applications • Leverage positive end market trends of composite aircraft and robotic assembly • Capture incremental opportuniti
Slide 14: Engineered Components
Engineered Components Key Initiatives: • Expand complementary product lines at well-sites and grow compression products • Grow products to support the shift toward increased use of natural gas and production in shale formations • Further leverage cost structure of cylinder acquisition • Continue to
Slide 15: Cequent (APEA & Americas)
Cequent (APEA & Americas) $46.4 Q3 2014 Results: • Sales in Americas increased due to higher sales to the aftermarket and retail channels • Americas operating profit(1) and margin percentage declined due to higher freight costs related to footprint changes and increased input costs, partially offset
Slide 16: Outlook and Summary
R R Outlook and Summary
Slide 17: 2014 Outlook Update
2014 Outlook Update Outlook as of 9/22/14* Outlook as of 10/28/14* Sales Growth 6% to 7% 6% to 7% Earnings Per Share, diluted(1) $1.85 to $1.95 $1.90 to $1.95 Free Cash Flow(2) $55 to $65 million $70 to $80 million (1) Defined as diluted earnings per share from continuing operations attributable to
Slide 18: Long-Term Margin Expansion
Long-Term Margin Expansion • Grow Packaging and Aerospace revenue twice as fast as the rest of TriMas; hold mid-20s operating profit percentage • Elevate acquisitions to core business margins via productivity, consolidations and synergies • Achieve historically demonstrated margins at all businesses
Slide 19: 2015 – Drivers
2015 – Drivers Strategic Aspirations • Generate high single-digit top- line growth • Invest in growing end markets through new products, global expansion and acquisitions • Enhance margins through productivity initiatives, leveraging costs and business mix • Grow earnings faster than revenue growth
Slide 20: 2015 – Additional Perspective
2015 – Additional Perspective 20 Committed to Strategic Aspirations – intensify margin actions. Initial Thoughts Packaging • Increased capacity in Asia • New technology center in India Energy • Overall cost-out actions underway • Improvements in business in Brazil due to recent actions • New product
Slide 21: Questions and Answers
Questions and Answers
Slide 22: Appendix
R R Appendix
Slide 23: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 23 (Dollars in thousands) September 30, December 31, 2014 2013 (unaudited) Assets Current assets: Cash and cash equivalents............................................................. 30,070$ 27,000$ Receivables, net..............................................
Slide 24: Consolidated Statement of Income
Consolidated Statement of Income 24 Three months ended Nine months ended 2014 2013 2014 2013 Net sales................................................................................................. 380,120$ 354,910$ 1,148,510$ 1,068,410$ Cost of sales...............................................
Slide 25: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 25 2014 2013 Cash Flows from Operating Activities: Net income......................................................................................................................... 67,810$ 71,790$ Adjustments to reconcile net in
Slide 26: Company and Business Segment Financial Information
Company and Business Segment Financial Information 26 (Unaudited, dollars in thousands) Three months ended 2014 2013 2014 2013 Packaging Net sales....................................................................................................................... 89,320$ 82,010$ 257,000$ 235,000$
Slide 27: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 27 Three months ended Nine months ended September 30, September 30, 2014 2013 2014 2013 Income from continuing operations, as reported............................................................ 18,390$ 30,250$
Slide 28: Current Debt Structure
Current Debt Structure 28 (Unaudited, dollars in thousands) As of September 30, 2014, TriMas had $396.8 million of cash and available liquidity under its revolving credit and accounts receivable facilities. September 30, December 31, 2014 2013 Cash and Cash Equivalents……………………………..………………… 30,070$ 27
Slide 29: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 29 (Unaudited, dollars in thousands) 76,090$ Interest expense, net (as defined)............................................................................................... 13,200 Income tax expense.....................................................