Slide 1: Second Quarter 2009 Earnings Presentation
Second Quarter 2009 Earnings Presentation August 4, 2009
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: Second Quarter Opening Remarks
4 Second Quarter Opening Remarks Sequential improvement vs. Q1 2009 All segments cash flow positive Continued debt reduction Businesses holding or gaining share New, structured business processes showing results Executing... wellGrowing market shareImplementing processes to continually improve.
Slide 4: TriMas Priorities
5 TriMas Priorities Drive operating profit improvement Best cost producer strategy Effectively manage the balance sheet Pay-down debt Maintain liquidity cushion Deploy capital prudently Focus capital on profitable strategic growth Aerospace, specialty packaging, medical, energy and geographic expans
Slide 5: Strategic Planning Process – Strategic Aspirations
Strategic Planning Process – Strategic Aspirations Double-digit top and bottom-line growth 3% to 5% of total productivity gains annually Continued investment in growth programs Increased percentage of non-U.S. revenues On-going improvement in capital turns and all cycle times Leverage ratio target o
Slide 6: New Incentive System
New Incentive System Measurement Criteria SBU Incentive Factors Sales / Operating Profit Cash Flow from Operations Inventory Turns New Markets / Products Personal Objectives Corporate Incentive Factors Sales / Operating Profit Liquidity / Leverage Ratio EPS Return on Tangible Assets Personal Objecti
Slide 7: Second Quarter 2009 Financial Highlights
Second Quarter 2009 Financial Highlights
Slide 8: Second Quarter Summary
Second Quarter Summary ($ in millions, except per share amounts) (from continuing operations) Q2 2009 Q2 2008 % Chg Revenue $ 208.6 $ 282.8 -26.2% Adjusted EBITDA(1) $ 38.1 $ 39.4 -3.2% Excl. Special Items, (1) Adj EBITDA would have been: $ 39.1 $ 41.6 -6.1% Excl. Special Items (1) and debt extingui
Slide 9: Q2 2009 vs. Q1 2009
Q2 2009 vs. Q1 2009 ($ in millions, except EPS) (from continuing operations) Q2 2009 Q1 2009 % Chg Revenue $ 208.6 $ 202.7 2.9% Gross Margin $ 49.6 $ 45.8 8.2% Gross margin as a percent of revenue: 23.8% 22.6% Adjusted EBITDA(1) $ 38.1 $ 29.9 27.6% Excl. Special Items, (1) Adjusted EBITDA would have
Slide 10: Key Initiatives
CORPORATION Key Initiatives
Slide 11: $30M Profit and Productivity Improvements
$30M 12 Profit and Productivity Improvements Tactics Employed: Fixed cost headcount reductions Salaried hiring freeze Merit deferrals Mandatory 4-day work weeks Required weeks off without pay Acceleration of plant consolidations and moves to low-cost countries Consolidation of distribution facilitie
Slide 12: Working Capital Improvements
13 Working Capital Improvements Tactics Employed: Cycle time improvements External expertise Statistical demand forecasting Ordering patterns Supply chain changes Supplier improvements SKU rationalization Distribution consolidation Continued lean initiatives will drive permanent process change and w
Slide 13: Debt Reduction
14 Debt Reduction Actions to reduce cash interest by $9 - $10 million this year. Reduced total indebtedness, including amounts on A/R securitization facility, by $37.8 and $102.0 million versus 3/31/09 and 6/30/08, respectively As of June 30, 2009, TriMas had $152.5 million of cash and available liq
Slide 14: Strong Cash Flow
15 Strong Cash Flow Tactics Employed: Reduce working capital Manage capital expenditures Currently at 50% of 2008 level through June Yet still investing in key growth initiatives Reduce interest costs Retirement of debt Cost of debt Dispose of non-core assets Non-strategically aligned businesses Non
Slide 15: Key Initiatives Summary - 2009
Key Initiatives Summary - 2009 $10 - $20M $10 - $20M Other (dispositions of non-core assets) $70M+ $60M+ Free cash flow(1) $7 - $9M $5 - $7M Capex reduction $25 - $35M $10 - $20M Working capital reduction $9 - $10M $4 - $7M Cash interest reduction $30M+ $28M PIP cost savings (realized in ’09) Curren
Slide 16: Second Quarter Segment Highlights
Second Quarter Segment Highlights
Slide 17: Packaging
Packaging ($ in millions) Net Sales Adjusted EBITDA Operating Profit $12.7 $44.5 $9.6 $11.6 $36.2 $8.8 (18.8%) (9.0%) (8.2%) Q2 2008 Q2 2009 Q2 2008 Q2 2009 Q2 2008 Q2 2009 Results: Key Initiatives: Sales decreased due to lower industrial closure sales Target specialty dispensing products into highe
Slide 18: Energy
GAAP Measure Adjusted EBITDA and Free Cash Flow, are provided in the Appendix. Results: Key Initiatives: Expand complementary product lines at well-site Sales decreased due to reduced demand for engines and other well-site content, as well as lower sales of – Gas production equipment including speci
Slide 19: Aerospace & Defense
Aerospace & Defense ($ in millions) Net Sales Adjusted EBITDA(1) Operating Profit(1) $7.6 $21.6 $7.2 $7.0 $18.3 $6.4 (15.6%) (7.9%) (10.4%) Q2 2008 Q2 2009 Q2 2008 Q2 2009 Q2 2008 Q2 2009 (1)Adjusted EBITDA and Operating Profit exclude “Special Items” for each period. A detailed schedule of Special
Slide 20: Engineered Components
Engineered Components ($ in millions) Net Sales Adjusted EBITDA(1) Operating Profit (Loss)(1) $34.6 $4.7 $5.7 $15.7 $0.6 $(0.5) (54.6%) (89.3%) nm Q2 2008 Q2 2009 Q2 2008 Q2 2009 Q2 2008 Q2 2009 (1)Adjusted EBITDA and Operating Profit exclude “Special Items” for each period. A detailed schedule of S
Slide 21: Cequent
Cequent ($ in millions) Net Sales Adjusted EBITDA(1) Operating Profit(1) $128.9 $12.8 $8.6 $103.5 $9.1 $46.4 $5.0 (19.7%) (28.8%) (41.4%) Q2 2008 Q2 2009 Q2 2008 Q2 2009 Q2 2008 Q2 2009 (1)Adjusted EBITDA and Operating Profit exclude “Special Items” for each period. A detailed schedule of Special It
Slide 22: CORPORATION
CORPORATION
Slide 23: TriMas Priorities
24 TriMas Priorities Drive operating profit improvement Best cost producer strategy Effectively manage the balance sheet Pay-down debt Maintain liquidity cushion Deploy capital prudently Focus capital on profitable strategic growth Aerospace, specialty packaging, medical, energy and geographic expan
Slide 24: Questions & Answers
CORPORATION Questions & Answers
Slide 25: Appendix
CORPORATION Appendix
Slide 26: TriMas Vision
27 TriMas Vision We provide engineered and applied products that customers in growing markets need and value. We build and run agile businesses that provide high returns on capital. Operating Principles: Securing our position as the best cost producer Building a sustainable competitive advantage Act
Slide 27: Q2 2009 Statement of Operations
Q2 2009 Statement of Operations (Unaudited, $ in thousands) Three months ended Six months ended June 30, June 30, 2009 2008 2009 2008 Net sales $ 208,650 $ 282,840 $ 411,360 $ 547,430 Cost of sales (159,040) (206,820) (315,910) (401,480) Gross profit 49,610 76,020 95,450 145,950 Selling, general and
Slide 28: Q2 2009 Balance Sheet
Q2 2009 Balance Sheet (Unaudited, $ in thousands) June 30, December 31, 2009 2008 Assets Current assets: Cash and cash equivalents $ 5,360 $ 3,910 Receivables, net 111,880 104,760 Inventories 151,080 188,950 Deferred income taxes 16,970 16,970 Prepaid expenses and other current assets 5,280 7,430 As
Slide 29: Debt Reduction
Debt Reduction ($ in thousands) June 30, December 31, June 30, 2009 2008 2008 Reduced total indebtedness, including Cash and Cash Equivalents $ 5,360 $ 3,910 $ 6,860 amounts on A/R securitization facility, by Senior Secured Bank Debt 271,260 280,800 279,360 $37.8 and $102.0 million versus 3/31/09 an
Slide 30: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted EBITDA(1) and Free Cash Flow(2) (Unaudited) Three months ended Six months ended June 30, June 30, (dollars in thousands) 2009 2008 2009 2008 Net income $ 8,990 $ 9,450 $ 5,310 $ 17,320 Income tax expense 5,720 5,270 3,230 9,750 Interest expense 11,590 13,
Slide 31: Additional Information Regarding Special Items
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) Three months ended Three months ended June 30, 2009 June 30, 2008 (dollars in thousands, except per share amounts) Income EPS Income EPS Income and EPS from continuing operations, as reported $ 9,31
Slide 32: Additional Information Regarding Special Items (cont.)
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (cont.) (Unaudited) Three months ended Six months ended June 30, June 30, (dollars in thousands) 2009 2008 2009 2008 Operating profit from continuing operations, as reported $ 15,620 $ 30,320 $ 19,960 $ 58,160
Slide 33: Company and Business Segment Financial Information
Company and Business Segment Financial Information –Cont. Ops Three months ended Six months ended (Unaudited, $ in thousands) June 30, June 30, 2009 2008 2009 2008 Packaging Net sales $ 36,150 $ 44,520 $ 66,400 $ 85,560 Operating profit $ 8,830 $ 9,620 $ 14,230 $ 18,230 Adjusted EBITDA $ 11,580 $ 12
Slide 34: Company and Business Segment Financial Information (cont.)
Company and Business Segment Financial Information –Cont. Ops (cont.) (Unaudited, $ in thousands) Three months ended Six months ended June 30, June 30, 2009 2008 2009 2008 Cequent Net sales $ 103,540 $ 128,940 $ 193,990 $ 250,220 Operating profit (loss) $ 2,890 $ 8,550 $ (460) $ 13,930 Adjusted EBIT
Slide 35: LTM EBITDA as Defined in Credit Agreement
LTM EBITDA as Defined in Credit Agreement (Unaudited, $ in thousands) Reported net loss for the twelve months ended June 30, 2009 $ (148,200) Interest expense, net (as defined) 51,360 Debt extinguishment costs 1,130 Income tax benefit (19,130) Depreciation and amortization 45,200 Interest equivalent