Slide 1: First Quarter 2012 Earnings Presentation
First Quarter 2012 Earnings Presentation April 26, 2012 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 – First Quarter Results
Opening Remarks – First Quarter Results • Playbook in place continues to enhance TriMas’ value • Double-digit sales and earnings growth despite choppy markets ̶ Sales increased 15% versus Q1 2011; record sales quarter for several businesses ̶ Slower orders in January and February in some businesses;
Slide 5: New Products & Customers Geography
New Products & Customers Geography • Lamons Rotterdam, United Kingdom, Spain and Singapore increased sales • Second quarter of Monogram sales in China • Canadian oil drilling still increasing • Cequent gained business at NAPA Canada Acquisitions • Rieke shipped to Reckitt Benckiser & Method • Lamons
Slide 6: New Products & Customers Geography
New Products & Customers Geography • Dispenser orders in Asia • Lamons “University” trained 650 customer engineers • Next round test samples at Embraer KC390; gained approval on Phenom 100 • Cequent reconfigured distribution agreements in Taiwan and China • Mexico expansion for Cequent on-track • Ad
Slide 7: Financial Highlights
Financial Highlights
Slide 8: First Quarter Summary
First Quarter Summary • Sales increased 15% vs. Q1 2011 – record sales quarter in several businesses • Investments in new products, geographic expansion and bolt-on acquisitions driving positive results • Productivity efforts continued to fund growth initiatives – Productivity savings in line with t
Slide 9: Total Debt and Leverage Ratio
9 T o tal Deb t L e v e rage Ra ti o ($ in millions) Capitalization Total Debt and Leverage Ratio (including A/R Facility) $754 $657 $630 $515 $495 $470 $499 1x 2x 3x 4x 5x 6x $200 $300 $400 $500 $600 $700 $800 YE 06 YE 07 YE 08 YE 09 YE 10 YE 11 3/31/2012 Total Indebtedness Leverage Comments: • Red
Slide 10: Segment Highlights
Segment Highlights
Slide 11: Packaging
Packaging Results: • Q1 2012 sales increased as a result of acquisitions of Innovative Molding and Arminak, partially offset by a decrease in industrial closure products sales and unfavorable currency exchange — Specialty systems product gains (not related to the acquisitions) in North America were
Slide 12: Energy
Energy ($ in millions) Results: • Q1 2012 sales increased as a result of continued market share gains of highly engineered bolts and additional sales generated by newer branches • Higher levels of turnaround activity at refineries and petrochemical plants, and increased activity with upstream/midstr
Slide 13: Aerospace & Defense
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Capitalize on expectations for continued ramp-up of large frame, composite aircraft • Continue to expand sales globally • Drive ongoing lean initiatives to lower working
Slide 14: Engineered Components
Engineered Components ($ in millions) Key Initiatives: • Expand complementary product lines at well-site • Grow natural gas compression products and capitalize on natural gas opportunities • Leverage broader product line to capture new markets • Continue to reduce costs and improve working capital t
Slide 15: Cequent (Asia Pacific & North America)
Cequent (Asia Pacific & North America) ($ in millions) $46.4 Results: • Q1 2012 sales in North America declined due to lower sales within the retail channel resulting from one-time stocking order for large customers in Q1 2011 that did not repeat in Q1 2012 • North America operating profit decreased
Slide 16: Outlook and Summary
Outlook and Summary
Slide 17: Q1 Summary
Q1 Summary • Strong organic growth through product innovation, geographic expansion, market share gains and increased end market demand • Acquisitions ahead of schedule with enhanced synergies and growth • Generated double-digit earnings growth • Continuous productivity initiatives fund investments
Slide 18: 2012 Outlook Reaffirmed
2012 Outlook Reaffirmed Outlook as of 4/26/12 Sales Growth 7% to 10% Earnings Per Share, diluted(1) $1.75 to $1.85 Free Cash Flow(2) $40 to $50 million (1) Excluding Special Items (2) 2012 Free Cash Flow is defined as Cash Flow from Operating Activities less Capital Expenditures. 2012 outlook in lin
Slide 19: Strategic Aspirations
Strategic Aspirations Strategic aspirations are our foundation for 2012. 19 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fund gro
Slide 20: Questions & Answers
Questions & Answers
Slide 21: Appendix
Appendix
Slide 22: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 22 March 31, December 31, 2012 2011 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….14,960$ 88,920$ Receivables, net of reserves ………………………………………………….………………………….. 179,820 135,610 Inventories .……
Slide 23: Capitalization
Capitalization 23 (Unaudited, dollars in thousands) As of March 31, 2012, TriMas had $165.3 million of cash and available liquidity under its revolving credit and accounts receivable facilities. March 31, December 31, 2012 2011 Cash and Cash Equivalents……………………………..………………… 14,960$ 88,920$ Term loan…
Slide 24: Consolidated Statement of Operations
Consolidated Statement of Operations (Unaudited, dollars in thousands, except for per share amounts) 24 2012 2011 Net sales……………………...………………………………………….…………………….. 297,570$ 258,560$ Cost of sales………………………………………………………………………………………………………… (218,660) (186,740) Gross profit……………………………………………………………………………. 78,
Slide 25: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 25 2012 2011 Cash Flows from Operating Activities: Net income 12,250$ 11,750$ Adjustments to reconcile net income to net cash used for operating activities, net of acquisition impact: Gain on dispositions of property and equipment
Slide 26: Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) 26 (dollars in thousands, except per share amounts) 2012 2011 Income from continuing operations, as reported 12,250$ 10,690$ Less: Net loss attributable to noncontrolling interests (240) - Income fr
Slide 27: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops 27 (Unaudited, dollars in thousands) Three months ended 2012 2011 Packaging Net sales 54,310$ 43,900$ Operating profit 9,890$ 11,830$ Energy Net sales 50,590$ 40,950$ Operating profit 6,390$ 5,340$ Aerospace & Defense Net sales 17,860$ 1
Slide 28: LTM Bank EBITDA as Defined in Credit Agreement
LTM Bank EBITDA as Defined in Credit Agreement 28 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended March 31, 2012 ……………………………………………………………….. 61,100$ Net loss attributable to partially-owned subsidiaries…….………………………………………………………….. 550 Interes