Slide 1: Third Quarter 2013 Earnings Presentation
Third Quarter 2013 Earnings Presentation October 28, 2013 NASDAQ • TRS
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 n
Slide 3: Agenda
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3
Slide 4: Opening Remarks – Third Quarter Results
Opening Remarks – Third Quarter Results • Record Q3 sales of approximately $356 million – up 6% compared to Q3 2012 – Results from bolt-on acquisitions adding to top-line – Investments in new products and higher growth markets generating results • Q3 2013 income(1) increased 30% and EPS(1) increased
Slide 5: Opening Remarks
Opening Remarks • Current environment • Industrial – Norris cylinders, Rieke steel products • Energy – drilling still down, refinery turnarounds • Middle class – growing in emerging markets • Aircraft – build rates remain strong • Growth highlights • Product enhancements and rollouts • Geographic ex
Slide 6: Recent Acquisitions
Recent Acquisitions • Located in Ottawa, Kansas • Manufacturer of aerospace fasteners, globally utilized by OEMs, aftermarket repair companies, and commercial and military aircraft producers • Broadens product offering on aircraft • Diversifies distribution channels • Provides flexible manufacturing
Slide 7: Financial Highlights
Financial Highlights
Slide 8: Third Quarter Summary
Third Quarter Summary • Sales increased 5.9% as compared to Q3 2012 – sales increased in five of six segments • Operating profit was impacted in the short term positively by the sale of Rieke Italy, and offset by a less favorable product sales mix, growth initiatives, and facility consolidation and
Slide 9: Operating Profit Margin Bridge: Q3 2012 to Q3 2013
• Productivity gains offset economics, investments in growth and short-term manufacturing inefficiencies resulting from rapid growth • Price increases essentially offset commodity inflation • Manufacturing inefficiencies from smaller lot sizes and short-cycle changes • Margin decline at Arrow Engine
Slide 10: Enhanced Capital Structure
Enhanced Capital Structure 10 As of 10/16/2013(1) Amount Rate Maturity Revolving Credit Facility $250M LIBOR plus 2.00% (2) October 2017 Term Loan A $200M LIBOR plus 2.00% (2) October 2017 Term Loan B $200M LIBOR plus 2.75% (LIBOR floor of 1.00%) October 2019 Post Refinance(1) Amount Rate Maturity R
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging
Packaging Q3 2013 Results: • Sales increased primarily as a result of specialty systems product sales gains — Increased demand from North American and European dispensing customers, as well as additional business wins in Asia • European market appears stable, but no signs of improvement • Operating
Slide 13: Energy
Energy (dollars in millions) Q3 2013 Results: • Sales increased as a result of recent bolt-on acquisitions and increased sales generated by international locations • Operating profit and the related margin percentage decreased as the margin impact of higher sales and manufacturing productivity was m
Slide 14: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications • Leverage positive end market trends of composite aircraft and robotic assembly • Capture incremental opportunities in emerging markets • Drive ongoing Lean initiatives to lower worki
Slide 15: Engineered Components
Engineered Components (dollars in millions) Key Initiatives: • Expand complementary product lines at well-sites and grow compression products – product diversification decreases cyclicality • Grow products to support the shift toward increased use of natural gas and production in shale formations •
Slide 16: Cequent (APEA & Americas)
Cequent (APEA & Americas) (dollars in millions) $46.4 Q3 2013 Results: • Sales in Americas increased primarily due to higher sales within the automotive OE and retail channels • Americas operating profit and margin(1) increased as a result of the higher sales • APEA sales increased due to the acquis
Slide 17: YTD 2013 Summary
YTD 2013 Summary • Continuous improvement on all fronts • Further enhancement of capital structure positions TriMas for future sales and earnings growth • Seven bolt-on acquisitions through September YTD – future synergies will deliver improved profitability and growth • Generated record EPS • Conti
Slide 18: Outlook and Summary
Outlook and Summary
Slide 19: 2013 Outlook
2013 Outlook Outlook as of 2/26/13, 4/25/13 and 7/25/13 Outlook as of 10/28/13 Comments Sales Growth 6% to 8% 8% to 10% Packaging, Aerospace and Cequent volumes increased partially offset by Rieke Italy sale Earnings Per Share, diluted(1) $2.15 to $2.25 $2.15 to $2.25 $2.05 to $2.15 $2.10 to $2.15 M
Slide 20: 2014 Drivers
2014 Drivers Consistent focus – On track to meet/exceed Strategic Aspirations. Strategic Aspirations •Generate high single-digit top- line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually - ut
Slide 21: Questions & Answers
Questions & Answers
Slide 22: Appendix
Appendix
Slide 23: YTD 2013 Summary
YTD 2013 Summary • Sales increased 10.2% as compared to YTD 2013 – sales increased in five of six segments • Investments in bolt-on acquisitions, new products and geographic expansion driving positive results • Productivity efforts contributed to funding growth initiatives • Operating profit was neg
Slide 24: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 24 September 30, December 31, 2013 2012 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….209,350$ 20,580$ Receivables, net………………………………………………….………………………….. 201,110 150,390 Inventories .…………………………
Slide 25: Capitalization
Capitalization 25 (Unaudited, dollars in thousands) As of September 30, 2013, TriMas had $416.0 million of cash and available liquidity under its revolving credit and accounts receivable facilities. September 30, December 31, 2013 2012 Cash and Cash Equivalents……………………………..………………… 209,350$ 20,580$ C
Slide 26: Consolidated Statement of Income
Consolidated Statement of Income (Unaudited, dollars in thousands, except for per share amounts) 26 Nine months ended 2013 2012 2013 2012 Net sales.................................................................................... 355,620$ 335,870$ 1,071,430$ 971,870$ Cost of sales.................
Slide 27: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 27 2013 2012 Cash Flows from Operating Activities: Net income..................................................................................................................... 71,790$ 49,380$ Adjustments to reconcile net income
Slide 28: Company and Business Segment Financial Information
Company and Business Segment Financial Information 28 Three months ended 2013 2012 2013 2012 Packaging Net sales………………………...………………………………………… 82,010$ 77,240$ 235,000$ 202,250$ Operating profit…………………………………………………………… 31,320$ 18,240$ 65,550$ 44,700$ Special Items to consider in evaluating operating pro
Slide 29: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 29 (Unaudited, dollars in thousands, except for per share amounts) 2013 2012 2013 2012 Income from continuing operations, as reported………………………………………………..…………………. 29,950$ 19,960$ 71,090$ 49,380$ Less: Net income
Slide 30: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 30 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended September 30, 2013 ………………………………………………………...……………………….. 54,760$ Net income attributable to partially-owned subsidiaries…….………………………………………………………