Slide 1: Second Quarter 2018 Earnings Presentation
Second Quarter 2018 Earnings Presentation August 7, 2018
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: TriMas Overview
TriMas Overview Net Sales by Segment Net Sales by Geography TriMas Business Attributes: Aerospace U.S. Packaging 22% 86% • Leading brand names 42% • Innovative products 7% Europe 36% Specialty 5% Asia • Customer-focused culture Products Other 2% • Capital-light investment requirements • LTM Net Sale
Slide 4: Second Quarter Results: Q2 Highlights
Second Quarter Results Q2 Highlights • TriMas’ well-positioned businesses captured robust end market demand which contributed to strong sales growth of 5.4% • Overall performance and prior realignment actions mitigated impact of higher material costs Net Sales Operating Profit EPS, diluted +5.4% +5.
Slide 5: Second Quarter Results: Additional Highlights
Second Quarter Results Additional Highlights • Another quarter of exceptional cash flow contributing to YTD performance: – Further net debt reduction and deleveraging – Continued strengthening of balance sheet Free Cash Flow(1) Leverage Ratio(2) +4.3% - 0.6x Net Debt to EBITDA(2) $ millions $41.5 $4
Slide 6: Segment Results
SS TriMas Segment Results
Slide 7: Second Quarter 2018: Packaging Segment
Second Quarter 2018: Packaging Segment Net Sales Operating Profit +7.2% +5.7% Organic +5.9%, Fx +1.3% -30 bps $ millions $ millions $88.7 $95.1 $21.6 $22.8 24.3% 24.0% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Quarterly Takeaways Brands & Applications • Increased sales in HBHC and Industrial end markets • Mai
Slide 8: Second Quarter 2018: Aerospace Segment
Second Quarter 2018: Aerospace Segment Net Sales Operating Profit -4.1% +4.6% +130 bps $ millions $ millions $47.6 $45.6 $7.0 $7.3 14.7% 16.0% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Quarterly Takeaways Brands & Applications • Lower sales resulted from TriMas Aerospace’s decision to exit less profitable mac
Slide 9: Second Quarter 2018: Specialty Products Segment
Second Quarter 2018: Specialty Products Segment Net Sales Operating Profit +9.3% +7.3% -20 bps $ millions $ millions $77.1 $84.2 $9.2 $9.8 11.9% 11.7% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Quarterly Takeaways Brands & Applications • Increased sales by capturing higher end market demand • Increased operati
Slide 10: Financial Position & Outlook
Financial Position & Outlook
Slide 11: Strong Balance Sheet and Available Liquidity
Strong Balance Sheet and Available Liquidity Continued Strengthening of Financial Position • Generated YTD Free Cash Flow(1) of $43.3 million as compared to $41.5 million in the year ago period • Repurchased 100,947 TRS shares during Q2 2018 for approximately $2.9 million • Reduced Net Debt $35.9 mi
Slide 12: 2018 Full Year Guidance
2018 Full Year Guidance As of 8/7/18 TriMas FY 2018 Guidance Prior Updated Organic Sales Growth ~3% ~5% EPS, diluted $1.60 - $1.75 $1.65 - $1.75 Free Cash Flow(1) > 120% of Net > 120% of Net Income Income • Assuming solid back half end market demand, although at lower levels than first half • Tighte
Slide 13: Key Takeaways
Key Takeaways Strong second quarter and first half results Expect to maintain positive performance momentum despite headwinds from material costs and tariffs Continue to operate under the TriMas Business Model to drive performance across our multi-industry businesses Strong balance sheet and
Slide 14: SS TriMas
SS TriMas
Slide 15: Appendix
SS TriMas Appendix
Slide 16: Updated Full Year 2018 Segment Guidance
Updated Full Year 2018 Segment Guidance FY 2018 Segment Guidance Prior Updated (as of 8/7/18) • Packaging Organic Sales Growth ~3% ~5% Operating Profit Margin 22%-24% 22%-24% • Aerospace Organic Sales Growth ~2% ~2% Operating Profit Margin 15%-17% 15%-17% • Specialty Products Organic Sales Growth ~5
Slide 17: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet June 30, December 31, 2018 2017 (unaudited) Assets Current assets: Cash and cash equivalents $ 53,400 $ 27,580 Receivables, net 132,500 112,220 Inventories 160,680 155,350 Prepaid expenses and other current assets 6,960 16,120 Total current assets 353,540 311,270
Slide 18: Consolidated Statement of Income
Consolidated Statement of Income Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Net sales $ 224,910 $ 213,370 $ 442,010 $ 413,200 Cost of sales (160,130) (153,900) (316,850) (301,910) Gross profit 64,780 59,470 125,160 111,290 Selling, general and administrative expenses (
Slide 19: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Six months ended June 30, 2018 2017 Cash Flows from Operating Activities: Net income $ 43,920 $ 21,840 Adjustments to reconcile net income to net cash provided by operating activities: Loss on dispositions of assets 70 3,030 Depreciation 12,870 13,050 Amortizatio
Slide 20: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Packaging Net sales $ 95,090 $ 88,740 $ 183,290 $ 169,700 Operating profit $ 22,810 $ 21,590 $ 42,390 $ 38,490 Special Items to consider in evaluating operating profit: Business restru
Slide 21: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Net income, as reported $ 19,600 $ 14,850 $ 43,920 $ 21,840 Special Items to consider in evaluating quality of net income: Business restructuring and severance costs 660 4,000 1,870
Slide 22: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended June 30, 2018 2017 As reported Special Items As Adjusted As reported Special Items As Adjusted Net cash provided by operating activities $ 35,380 1,630 $ 37,010 $ 27,620 $ 2,340 $ 29,960 Less: Capital expenditures (8,150) - (8,150) (6,17
Slide 23: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Twelve months ended Six months ended June 30, June 30, June 30, 2018 2017 2018 2017 2018 2017 Net income (loss), as reported $ 19,600 $ 14,850 $ 53,040 $ (36,740) $ 43,920 $ 21,840 Depreciation expense 6,540 7,250 26,770 25,460 12,870 13