TriMas Corporation · NASDAQ:TRS
TriMas — Q1 2007 Earnings Presentation
22 slides from TriMas's earnings presentation, Apr 30, 2007
Slide 1: First Quarter 2007 Earnings Call
First Quarter 2007 Earnings Call April 27, 2007 INNOVATION • INDUSTRY • GROWTH
Slide 2: Forward-Looking Statements
This document contains “forward-looking” statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business. Forward-looking statements include certain anticipated, believed, planned, forecasted, expected, targeted and estimated resu
Slide 3: 2007 First Quarter Summary
2007 First Quarter Summary Increased sales and operating earnings in 4 of 5 segments Record sales levels in the quarter Adjusted EBITDA margin improved to14.7% from 13.8% Earnings per share increased 67% The increase in operating cash flow enabled further debt pay down ($ in thousands, except per sh
Slide 4: First Quarter 2007 Operating Highlights
First Quarter 2007 Operating Highlights INNOVATION • INDUSTRY • GROWTH
Slide 5: Packaging Systems
Packaging Systems Sales increase due to improved market penetration and introduction of new products Improvements in Adjusted EBITDA and operating profit in line with sales growth Expect sales in our closure business to exceed GDP due to continued new product penetration Laminates business will be h
Slide 6: Energy Products
Energy Products Sales of engine and well-site repair parts declined slightly between years due to lower levels of Canadian drilling activity Continued strong sales of gaskets to refinery and petrochemical industries due to product expansion and continued high levels of capacity utilization Expect en
Slide 7: Industrial Specialties
Industrial Specialties Increased sales of aerospace products due to strong demand and continued market and product expansion Demand for industrial cylinders and shell casings remains strong Focus within group is to increase presence in medical and aerospace Demand expected to continue at or above GD
Slide 8: RV & Trailer Products
RV & Trailer Products Sales decline due to continued weak end-market demand in North America Declines in Adjusted EBITDA and operating profit due to sales decline and launch costs associated with Australia’s new manufacturing facility in Thailand Growth initiatives in Southeast Asia are on plan Weak
Slide 9: Recreational Accessories
Recreational Accessories New business gained in retail segment more than offset the impact of soft end market demand Improved profitability compared to the prior year due to the full benefit of sourcing initiatives and other cost reduction activities implemented throughout 2006. Weak end-market dema
Slide 10: 2007 First Quarter Results
2007 First Quarter Results (1) The Company has established Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") as an indicator of our operating performance and as a measure of our cash generating capabilities. The Company defines “Adjusted EBITDA” as net income before interest,
Slide 11: TriMas Capitalization
TriMas Capitalization At March 31, 2007, TriMas had $3.9 million in cash and approximately $88.9 million of available liquidity under its existing credit facilities. ($ in thousands) March 31, 2007 March 31, 2006 December 31, 2006 Cash and Cash Equivalents 3,900 $ 1,710 $ 3,600 $ Working Capital Rev
Slide 12: 2007 Focus and Priorities
2007 Focus and Priorities Restructuring / Integration efforts done Organic growth focus has led to investments in sales and engineering staffing Product extensions Geographic market expansions Bundling opportunities S-1 registration statement process continues In a “quiet” period – Can’t comment fur
Slide 13: Summary
Summary Record Sales for the Quarter Improved Margins Total Debt Reduction, including A/R Securitization, of $11.0 Million vs. Q1 2006 Focus is Disciplined Growth with Debt Reduction
Slide 14: Q & A
Q & A INNOVATION • INDUSTRY • GROWTH
Slide 15: Appendix
Appendix INNOVATION • INDUSTRY • GROWTH
Slide 16: Balance Sheet
Balance Sheet At March 31, 2007, TriMas had $3.9 million of cash and approximately $88.9 million of available liquidity under its revolving credit agreement. (Unaudited - $ in thousands) March 31, December 31, 2007 2006 Current assets: Cash and cash equivalents 3,900 $ 3,600 $ Receivables, net . 122
Slide 17: Statement of Operations
Statement of Operations For the Three Months Ended March 31, (Unaudited - $ in thousands) 2007 2006 Net sales 286,690 $ 273,030 $ Cost of sales. (207,400) (199,690) Gross profit. 79,290 73,340 Selling, general and administrative expenses (45,780) (44,500) Loss on dispositions of property and equipme
Slide 18: Statement of Operations (cont'd)
Statement of Operations (cont’d) For the Three Months Ended March 31, (Unaudited - In thousands, except for per share amounts) 2007 2006 Income from continuing operations 8,390 $ 4,940 $ Loss from discontinued operations, net of income taxes. (1,340) (1,340) Net income 7,050 $ 3,600 $ Earnings (loss
Slide 19: Cash Flow Highlights
Cash Flow Highlights For the Three Months Ended March 31, (Unaudited - $ in thousands) 2007 2006 Cash provided by operating activities 26,940 $ 11,010 $ (19,480) (5,290) 4,000 640 Cash used for investing activities (15,480) (4,650) (860) (700) 144,150 167,710 (154,450) (175,390) Cash used for financ
Slide 20: Reconciliation of Non-GAAP Measure Adjusted EBITDA
Reconciliation of Non-GAAP Measure Adjusted EBITDA (1) The Company defines Adjusted EBITDA as net income (loss) before cumulative effect of accounting change, interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment charges and write-offs, non-cash losses on sale-leaseback
Slide 21: Key Covenant Calculations
Key Covenant Calculations (Unaudited - $ in thousands) x x x x Leverage Ratio Total Indebtedness at March 31, 2007 (1) 767,940 $ LTM EBITDA, as defined (2) 151,660 $ Leverage Ratio - Actual 5.06 Leverage Ratio - Covenant 5.65 Coverage Ratio LTM EBITDA, as defined (2) 151,660 $ Cash Interest Expense
Slide 22: 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 March 31, 2007 (125,460) $ Interest expense, net (as defined) 78,000 Income tax expense (benefit) (3,710) Depreciation and amortization . 38,650 Extraordinary non-cash charges 132,260