Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Earnings Presentation July 30, 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: TriMas Overview
TriMas Overview Segments Brands Packaging Net Sales: $377.7M Op. Profit/Margin: $83.8M, 22.2% Net Sales Operating Profit(1) Amortization Exp.(4): $9.4M, 2.5% Aerospace Aerospace Packaging 18% 59% 86% 19% 18% Aerospace 42% 5% Packaging 56% 26% 22% Specialty 7% Products 40% Specialty Net Sales: $160.1
Slide 4: Q2 Results
Q2 Results Q2 Highlights • Net sales higher in all segments • Operating profit was relatively flat as the impact of higher sales was offset primarily by a less favorable product sales mix and higher input and freight costs • Q2 EPS up 4.2% to $0.50 per share Net Sales Operating Profit EPS, diluted O
Slide 5: Segment Results
SX TriMas Segment Results
Slide 6: Packaging Segment – Q2 2019
Packaging Segment – Q2 2019 Net Sales Operating Profit Organic +1.1% +9.4% Acquisitions +10.2% +0.4% Fx -1.9% Update $104.0 $22.8 $22.9 $95.1 24.0% 22.0% $ millions $ millions Q2 2018 Q2 2019 Q2 2018 Q2 2019 Quarterly Takeaways Brands & Applications • Sales increased primarily as a result of growth
Slide 7: Aerospace Segment – Q2 2019
Aerospace Segment – Q2 2019 Net Sales Operating Profit +8.0% +8.7% $7.0 $42.2 $6.5 16.6% 16.5% $ millions $39.1 $ millions Q2 2018 Q2 2019 Q2 2018 Q2 2019 Quarterly Takeaways Brands & Applications • Sales increased due to steady demand levels and improved production throughput • Operating profit inc
Slide 8: Specialty Products Segment – Q2 2019
Specialty Products Segment – Q2 2019 Net Sales Operating Profit +2.7% -4.8% $93.1 $10.7 $90.7 11.8% $10.2 10.9% $ millions $ millions Q2 2018 Q2 2019 Q2 2018 Q2 2019 Quarterly Takeaways Brands & Applications • Increased sales driven by capturing higher end market (1) demand primarily in the Lamons b
Slide 9: Q2 YTD & Financial Summary
SX TriMas Q2 YTD & Financial Sdmmary
Slide 10: Q2 YTD Results
Q2 YTD Results Q2 YTD Highlights • Net sales were higher by 4.2%, with YTD acquisition-related sales of $12.5 million, and organic sales, net of currency, up 2.4% • Operating profit increased slightly as the impact of higher sales was partially offset by a less favorable product sales mix • Q2 YTD E
Slide 11: Strong Balance Sheet and Available Liquidity
Strong Balance Sheet and Available Liquidity Continued Strong Financial Position • Leverage remains below target of < 2.0x, providing flexibility for investment • Strong balance sheet, cash conversion and available liquidity position TriMas for growth • Free Cash Flow as planned; Continue to expect
Slide 12: Enhancing Shareholder Value
Enhancing Shareholder Value continues its momentum... +0.6% -0.8% LTM Net Sales & Adjusted EBITDA(1) Net Debt(2) & Leverage(3) First half 2019 capital allocation $895.8 actions: $323.8 $846.6 • Acquired two rigid packaging $801.0 $253.9 businesses $239.6 $ millions $ millions $169.6 $161.2 • Retired
Slide 13: Outlook
SX TriMas
Slide 14: 2019 Full Year Expectations
2019 Full Year Expectations As of 7/30/19 TriMas FY 2019 Outlook February Outlook July Outlook Organic Sales Growth 3% - 5% 3% - 5% EPS, diluted $1.82 - $1.92 $1.85 - $1.95 Free Cash Flow(1) > 100% of Net Income > 100% of Net Income Segments Organic Sales Growth Operating Profit Margin February Outl
Slide 15: SX TriMas
SX TriMas
Slide 16: Appendix
SX TriMas Appendix
Slide 17: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet June 30, December 31, 2019 2018 (unaudited) Assets Current assets: Cash and cash equivalents $ 40,280 $ 108,150 Receivables, net 150,410 123,110 Inventories 180,500 173,120 Prepaid expenses and other current assets 7,020 7,430 Total current assets 378,210 411,810
Slide 18: Consolidated Statement of Income
Consolidated Statement of Income Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Net sales $ 239,370 $ 224,910 $ 460,660 $ 442,010 Cost of sales (174,020) (160,130) (335,490) (316,850) Gross profit 65,350 64,780 125,170 125,160 Selling, general and administrative expenses (
Slide 19: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Six months ended June 30, 2019 2018 Cash Flows from Operating Activities: Net income $ 41,110 $ 43,920 Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition impact: Loss on dispositions of assets 40 70 Depreciation 1
Slide 20: Company and Segment Financial Information
Company and Segment Financial Information Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Packaging Net sales $ 103,990 $ 95,090 $ 192,830 $ 183,290 Operating profit $ 22,640 $ 22,810 $ 40,280 $ 42,390 Special Items to consider in evaluating operating profit: Purchase accou
Slide 21: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Net income, as reported $ 22,020 $ 19,600 $ 41,110 $ 43,920 Special Items to consider in evaluating quality of net income: M&A diligence and transaction costs 700 - 1,820 - Purchase
Slide 22: Additional Information on Non-GAAP Measures
Additional Information on Non-GAAP Measures Three months ended June 30, 2019 2018 As reported Special Items As adjusted As reported Special Items As adjusted Net cash provided by operating activities $ 21,200 1,080 $ 22,280 $ 35,380 $ 1,630 $ 37,010 Less: Capital expenditures (5,670) - (5,670) (8,15
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, 2019 2018 2019 2018 2019 2018 Net income, as reported $ 22,020 $ 19,600 $ 80,490 $ 53,040 $ 41,110 $ 43,920 Depreciation expense 6,840 6,540 24,780 26,770 13,070 12,870 Amor