Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation November 4, 2019
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Any "forward-looking" statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, contained herein, including those relating to the Company’s business, financial condition or future results,
Slide 3: Overview
Overview 1 2 Focusing TriMas to unlock long-term Increased share repurchase value for shareholders authorization to $150 million Announced sale of Lamons Retired ~2.6% of shares since May 2018 33 44 Active M&A pipeline as additional lever Leveraging our TBM to navigate macro for growth and end m
Slide 4: Transaction Summary
Transaction Summary • Provider of industrial sealing and fastener products predominantly to the petrochemical and petroleum refining end markets • Reported as part of TriMas’ Specialty Products segment, prior to which it was reported in TriMas’ Energy segment • Generated LTM(1) sales of ~$186 millio
Slide 5: Proforma TriMas
Proforma TriMas TriMas Segment Overview Strategic Rationale: (based on LTM 9/30/19 results) TriMas Proforma Simplifies and streamlines $ in millions Consolidated Lamons TriMas TriMas Net Sales $908.8 $186.1 $722.7 (1) Segment Operating Profit $147.2 $17.9 $129.3 Reduces energy-related Segment Op
Slide 6: Q3 Results
Q3 Results Q3 Highlights • Net sales higher in all segments, despite softness in certain end markets • Operating profit was relatively flat, as the impact of higher sales was offset primarily by higher freight, logistics and input costs, and a less favorable product sales mix • EPS declined primaril
Slide 7: Q3 YTD Results
Q3 YTD Results Q3 YTD Highlights • YTD net sales up by 4.8%, with organic sales up 2.0% and acquisitions contributing 3.6% • Operating profit was flat, as the impact of higher sales was essentially offset by less favorable product sales mix in the Packaging and Specialty Products segments, and highe
Slide 8: Cash Flow and Segment Results
Cash Flow and Segment Results
Slide 9: Strong Balance Sheet and Available Liquidity
Strong Balance Sheet and Available Liquidity Continued Strong Financial Position • Free Cash Flow(1) as planned; continue to expect 2019 FCF conversion to be greater than 100% of net income • Leverage Ratio(2) remained at 1.5x, even after investing $67.1 million in acquisitions and $21.1 million in
Slide 10: Packaging Segment – Q3 2019
Packaging Segment – Q3 2019 Net Sales Operating Profit +10.7% • Organic +0.2% • NA Industrial • Acquisitions +12.0% -8.9% • Shipping costs • Fx -1.5% • Product mix $105.5 $95.3 $22.1 23.2% $20.1 $ millions $ millions 19.1% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Quarterly Takeaways Brands & Applications • S
Slide 11: Aerospace Segment – Q3 2019
Aerospace Segment – Q3 2019 Net Sales Operating Profit +5.5% • Volume +7.2% • Factory floor improvement $43.1 $8.2 $40.9 $7.7 19.1% 18.8% $ millions $ millions Q3 2018 Q3 2019 Q3 2018 Q3 2019 Quarterly Takeaways Brands & Applications • Sales increased due to steady demand levels and improved product
Slide 12: Specialty Products Segment – Q3 2019
Specialty Products Segment – Q3 2019 Net Sales Operating Profit +0.7% -2.3% • Wellhead activity • Product mix $87.6 $88.2 $ millions $ millions $8.6 $8.4 9.8% 9.5% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Quarterly Takeaways Brands & Applications • Slightly higher sales driven by increased demand in Lamons (
Slide 13: Outlook
SS TriMas
Slide 14: 2019 Full Year Expectations
2019 Full Year Expectations As of 11/4/19 TriMas FY 2019 Outlook (including Lamons) Excluding Lamons July Outlook November Outlook November Outlook Organic Sales Growth 3% - 5% 1.5% - 2.5% 0% - 1% EPS, diluted $1.85 - $1.95 $1.75 - $1.80 $1.40 - $1.45 Free Cash Flow(1) > 100% of Net Income > 100% of
Slide 15: Levers for Long-term Share Appreciation
Levers for Long-term Share Appreciation Performance under the TriMas Business Model has allowed us to focus on all four value drivers. 1 2 3 4 Continuous Capital Shaping Innovation Improvement Allocation TriMas • TriMas Business Model • Investing in growth • Reinvesting in factory • Accelerating the
Slide 16: SS TriMas
SS TriMas
Slide 17: Appendix
SX TriMas Appendix
Slide 18: Segment Outlook
Segment Outlook As of 11/4/19 Segments Organic Sales Growth Operating Profit Margin July Outlook November Outlook July Outlook November Outlook Packaging 3% - 5% 0% - 1% 21% - 22% 20% - 21% Aerospace 4% - 5% 4% - 5% 16% - 17% 16% - 17% Specialty Products(1) 4% - 6% 3% - 4% 11% - 13% 9% - 11% Special
Slide 19: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet September 30, December 31, 2019 2018 (unaudited) Assets Current assets: Cash and cash equivalents $ 57,940 $ 108,150 Receivables, net 152,220 123,110 Inventories 176,300 173,120 Prepaid expenses and other current assets 8,150 7,430 Total current assets 394,610 41
Slide 20: Consolidated Statement of Income
Consolidated Statement of Income Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net sales $ 236,830 $ 223,780 $ 697,490 $ 665,790 Cost of sales (175,590) (162,060) (511,080) (478,910) Gross profit 61,240 61,720 186,410 186,880 Selling, general and administrative
Slide 21: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Nine months ended September 30, 2019 2018 Cash Flows from Operating Activities: Net income $ 60,220 $ 66,590 Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition impact: Loss on dispositions of assets 70 70 Deprecia
Slide 22: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Packaging Net sales $ 105,480 $ 95,250 $ 298,310 $ 278,540 Operating profit $ 19,740 $ 22,060 $ 60,020 $ 64,450 Special Items to consider in evaluating operating profit: Pur
Slide 23: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net income, as reported $ 19,110 $ 22,670 $ 60,220 $ 66,590 Special Items to consider in evaluating quality of net income: M&A diligence and transaction costs 700 - 2,520
Slide 24: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended September 30, 2019 2018 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities $ 34,820 1,920 $ 36,740 $ 31,470 $ 470 $ 31,940 Less: Capital expenditures (11,060) - (11,060)
Slide 25: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended Nine months ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Net income, as reported $ 19,110 $ 22,670 $ 76,930 $ 62,580 $ 60,220 $ 66,590 Depreciation expense 6,880 5,760 25,900 26,690 19