Slide 1: First Quarter 2008 Earnings Presentation
First Quarter 2008 Earnings Presentation May 7, 2008 Innovation · Industry · Growth
Slide 2: Forward-looking statements
2 This document contains “forward-looking” statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business. Forward-looking statements include certain anticipated, believed, planned, forecasted, expected, targeted and estimated re
Slide 3: Agenda
3 Agenda First Quarter 2008 Results Segment Highlights Financial Highlights Outlook and Summary Questions and Answers Appendix
Slide 4: First Quarter 2008 Results
First Quarter 2008 Results Innovation · Industry · Growth
Slide 5: 2008 First Quarter Results
5 2008 First Quarter Results Revenue decreased $4.8 million or 1.7% from Q1-2007 . Packaging Systems, Energy Products and Industrial Specialties sales increased $10.9 million, or 7.5%, compared to prior year . RV & Trailer Products and Recreational Accessories sales declined $15.7 million, or 11.4%
Slide 6: Segment Highlights
Segment Highlights Innovation · Industry · Growth
Slide 7: Packaging Systems
7 Packaging Systems Net sales increased 1.5% due to increased demand for specialty dispensing products and new product introductions, and the favorable effects of currency exchange Sales of specialty dispensing products to pharmaceutical, food and personal care end markets were up year-over-year – A
Slide 8: Energy Products
8 Energy Products Strong specialty gasket sales to refinery and petrochemical industries due to product expansion and continued high levels of capacity utilization Sales of engine and related products increased between years due to increased engine demand and new product initiatives Adjusted EBITDA
Slide 9: Industrial Specialties
9 Industrial Specialties Q1 2008 Q1 2007 $50.6 $53.5 Q1 2008 Q1 2007 $12.2 $12.6 Q1 2008 Q1 2007 $11.2 $11.2 5.7% 4.0% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales of aerospace fasteners were robust due to the introduction of new products and a strong market – Currently there is
Slide 10: RV & Trailer Products
10 RV & Trailer Products Q1 2008 Q1 2007 $53.4 $50.7 Q1 2008 Q1 2007 $8.5 $4.5 Q1 2008 Q1 2007 $6.5 $2.8 (5.1)% (46.8)% (57.4)% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales declined due to continued weak demand in U.S. end markets and higher customer inventory levels across U.S.
Slide 11: Recreational Accessories
11 Recreational Accessories Q1 2008 Q1 2007 $85.1 $72.1 Q1 2008 Q1 2007 $7.7 $5.1 Q1 2008 Q1 2007 $5.1 $2.6 (15.3)% (34.8)% (48.8)% ($ in millions) Net Sales Adjusted EBITDA Operating Profit Sales declined due to continued weak consumer demand for towing products and accessories First quarter 2007 s
Slide 12: Financial Highlights
Financial Highlights Innovation · Industry · Growth
Slide 13: Statement of Operations
13 Statement of Operations ($ in thousands) 2008 2007 Net sales 279,560 $ 284,440 $ Cost of sales (206,220) (206,440) Gross profit 73,340 78,000 Selling, general and administrative expenses (45,120) (45,540) Loss on dispositions of property and equipment (110) (170) Operating profit 28,110 32,290 Ot
Slide 14: Statement of Operations (cont'd)
14 Statement of Operations (cont’d) 2008 2007 Earnings (loss) per share - basic: Continuing operations 0.23 $ 0.37 $ Discontinued operations, net of income taxes - (0.03) Net income per share 0.23 $ 0.34 $ Weighted average common shares - basic 33,409,500 20,759,500 Earnings (loss) per share - dilut
Slide 15: Capitalization
15 Capitalization As of March 31, 2008, TriMas had $5.5 million in cash and approximately $121.9 million of available liquidity under its revolving credit and receivables securitization facilities. ($ in thousands) March 31, 2008 March 31, 2007 Cash and Cash Equivalents 5,510 $ 3,900 $ Senior Secure
Slide 16: Outlook and Summary
Outlook and Summary Innovation · Industry · Growth
Slide 17: 2008 Segment Outlook
17 2008 Segment Outlook Packaging Systems Energy Products Industrial Specialties RV & Trailer Products and Recreational Accessories Continued growth in specialty dispensing products into higher-growth end markets (personal care, beverage, food and pharmaceutical) projected International expansion –
Slide 18: Summary of Key Initiatives
18 Summary of Key Initiatives Cost Management Initiatives Recent Sales Initiatives Pricing Initiatives Financial Initiatives Cequent removal of almost 50,000 earned hours within Q1-08 Cequent 5% salary headcount reduction Corporate-wide hiring freeze in place, exclusive of specific growth initiative
Slide 19: 2008 Outlook – Full Year
19 2008 Outlook – Full Year · TriMas reaffirms full-year 2008 earnings guidance previously provided: – First quarter results met the Company’s expectations – EPS range from continuing operations of $0.85 per share to $0.95 per share, compared to $0.79 per share in 2007 excluding Special Items – Net
Slide 20: Q & A
Q & A Innovation · Industry · Growth
Slide 21: Appendix
Appendix Innovation · Industry · Growth
Slide 22: Balance Sheet
22 Balance Sheet ($ in thousands) March 31, December 31, 2008 2007 Current assets: Cash and cash equivalents 5,510 $ 4,800 $ Receivables, net 106,390 89,370 Inventories, net 192,940 190,590 Deferred income taxes. 18,860 18,860 Prepaid expenses and other current assets 6,970 7,010 Assets of discontin
Slide 23: First Quarter 2008 Results
23 First Quarter 2008 Results ($ in thousands) 2008 2007 Change Net Sales Packaging Systems 54,570 $ 53,750 $ 1.5% Energy Products 48,800 41,580 17.4% Industrial Specialties 53,470 50,590 5.7% RV & Trailer Products 50,670 53,410 -5.1% Recreational Accessories 72,050 85,110 -15.3% Net sales from cont
Slide 24: Reconciliation of Non-GAAP Measure Adjusted EBITDA
24 Reconciliation of Non-GAAP Measure Adjusted EBITDA ($ in thousands) 2008 2007 Net income 7,870 $ 7,050 $ Income tax expense 4,480 4,980 Interest expense 14,760 18,860 Depreciation and amortization 10,750 9,840 Adjusted EBITDA (1) 37,860 40,730 Adjusted EBITDA (1), discontinued operations 240 (190
Slide 25: Key Covenant Calculations
25 (Unaudited - $ in thousands) Key Covenant Calculations Leverage Ratio Total Indebtedness at March 31, 2008 (1) 672,800 $ LTM EBITDA, as defined (1) 156,420 $ Leverage Ratio - Actual 4.30 X Leverage Ratio - Covenant 5.25 X Coverage Ratio LTM EBITDA, as defined (1) 156,420 $ Cash Interest Expense (
Slide 26: LTM EBITDA as Defined in Credit Agreement
26 (Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended March 31, 2008 (157,610) $ Interest expense, net (as defined) 64,210 Income tax expense (10,880) Depreciation and amortization 42,260 Extraordinary non-cash charges 178,450 Heartla