TriMas Corporation · NASDAQ:TRS
TriMas — Q4 2006 Earnings Presentation
25 slides from TriMas's earnings presentation, Mar 23, 2007
Slide 1: Fourth Quarter 2006 Earnings Call
Innovation • Industry • Growth Fourth Quarter 2006 Earnings Call March 22, 2007
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: Agenda
Agenda 2006 Fourth Quarter Highlights 2006 Fourth Quarter Operating Highlights 2006 Fourth Quarter Financial Performance TriMas Capitalization Summary Q&A Appendix
Slide 4: 2006 Fourth Quarter Highlights
2006 Fourth Quarter Highlights TriMas is a manufacturer of highly engineered products. Our defining attributes include leading market shares, strong brand names, and diversity of end markets, customers and products. TriMas had sales of $223.3 million in fourth quarter 2006, essentially flat when com
Slide 5: 2006 Fourth Quarter Highlights
2006 Fourth Quarter Highlights The improvement in Adjusted EBITDA and operating profit (before consideration of the goodwill impairment charge) between years is attributed to: Continued earnings expansion within Packaging Systems, Energy Products and Industrial Specialties. Better conversion within
Slide 6: 2006 Fourth Quarter Highlights
2006 Fourth Quarter Highlights Under the Amended and Restated Credit Agreement, the Company’s Bank LTM EBITDA at December 31, 2006 was $147.8 million, which supported our lending ratios: Leverage ratio was 5.10x vs. a leverage covenant of 5.75x. Interest coverage ratio was 1.87x vs. our covenant of
Slide 7: 2006 Fourth Quarter Operating Highlights
Innovation • Industry • Growth 2006 Fourth Quarter Operating Highlights
Slide 8: Packaging Systems Financial Highlights
Packaging Systems Financial Highlights Packaging Systems revenue grew 3.4% in Q4 2006 compared to Q4 2005 and 7.5% for the entire year. Growth was primarily driven by new product introductions across the year. Within Q4 2006, Packaging Systems launched new products with the following companies: McDo
Slide 9: Energy Products Financial Highlights
Energy Products Financial Highlights Q4 2006 versus Q4 2005 revenue growth of 11.3% was driven by market share gains due to expanded parts offerings and superior delivery performance. These actions support total year growth of 19.8%. Established Lamons China as a lower cost source of standard gasket
Slide 10: Industrial Specialties Financial Highlights
Industrial Specialties Financial Highlights Q4 2006 versus Q4 2005 revenue growth of 15.7% was driven by strong demand for new products and market share gains. Total year revenues grew by 10.5%. Within Q4 2006, the Industrial Specialties Group secured the following new business awards: Norris Cylind
Slide 11: RV & Trailer Products Financial Highlights
RV & Trailer Products Financial Highlights Q4 2006 revenue declined 16.3% compared to 2005 as a result of lower sales across all market channels due to soft end market demand. Total year revenue was down 8.8%. Awarded $3.0 million of new business within Q4 2006. Launched a new lower cost manufacturi
Slide 12: Recreational Accessories Financial Highlights
Recreational Accessories Financial Highlights Q4 2006 revenue declined 10.4% compared to Q4 2005 due to end market demand, primarily in the installer channel. Total year revenue declined 6.4%. Continued improvement in operating profitability led by sourcing initiatives and operating efficiencies. Co
Slide 13: 2006 Fourth Quarter Results
Three Months Ended Year Ended December 31, December 31, 2006 Fourth Quarter Results ($ in thousands – continuing operations) Net Sales 2006 2005 Variance 2006 2005 Variance Packaging Systems 45,780 $ 44,270 $ 3.4% 204,230 $ 189,910 $ 7.5% Energy Products 39,820 35,770 11.3% 156,990 131,020 19.8% Ind
Slide 14: Goodwill Impairment
Goodwill Impairment We test our recorded balance of goodwill for impairment annually as of December 31st. We estimate the fair value of our reporting units using a third-party valuation specialist and based on the present value of expected future cash flows included in the Company’s long-range plan
Slide 15: TriMas Capitalization
TriMas Capitalization ($ in thousands) December 31, December 31, 2006 2005 Cash and Cash Equivalents 3,600 $ 3,730 $ Working Capital Revolver Term Loan B 14,710 $ 259,350 4,100 $ 256,250 Other Debt 23,890 30,960 Subtotal, Senior Secured Debt 297,950 291,310 9.875% Senior Sub Notes due 2012 436,540 4
Slide 16: Summary
Summary TriMas had a solid fourth quarter. TriMas improved operating earnings. The Company and our team are focused on expanding sales growth initiatives, continued earnings improvement and debt reduction. Strengthening our balance sheet remains a critical tactical objective. Free cash flow Selected
Slide 17: Q & A
Innovation • Industry • Growth Q & A
Slide 18: Appendix
Innovation • Industry • Growth Appendix
Slide 19: Condensed Balance Sheet
Condensed Balance Sheet 2006 2005 Current assets: Cash and cash equivalents 3,600 $ 3,730 $ Receivables, net 99,240 89,960 Inventories, net 165,360 148,450 Deferred income taxes 24,310 20,120 Prepaid expenses and other current assets 7,320 7,050 Assets of discontinued operations held for sale 11,770
Slide 20: Statement of Operations
Statement of Operations For the Three Months Ended December 31, (unaudited - $ in thousands) 2006 2005 Net sales $ 223,270 $ 225,270 Cost of sales (165,050) (171,790) Gross profit 58,220 53,480 Selling, general and administrative expenses (39,820) (41,380) Gain (loss) on dispositions of property and
Slide 21: Statement of Operations (cont'd)
Statement of Operations (cont’d) For the Three Months Ended December 31, (Unaudited - $ in thousands, except per share amounts) 2006 2005 Income (loss) from continuing operations (117,400) $ (9,620) $ Cumulative effect of change in accounting principle - (420) Loss from discontinued operations, net
Slide 22: Cash Flow Highlights
Cash Flow Highlights For the Twelve Months Ended December 31, ($ in thousands) 2006 2005 Cash provided by operating activities 15,880 $ 29,890 $ Capital expenditures (29,840) (21,670) Net proceeds from disposition of businesses and other assets 7,680 5,030 Cash used for investing activities (22,160)
Slide 23: Reconciliation of Non-GAAP Measure Adjusted EBITDA
For the Twelve Months Ended December 31, Reconciliation of Non-GAAP Measure Adjusted EBITDA 2006 2005 2006 2005 Net income (loss) before cumulative effect of accounting change (121,890) $ (52,250) $ (128,910) $ (45,460) $ Income tax benefit (810) (31,600) (6,520) (30,580) Interest expense 19,740 19,
Slide 24: Key Covenant Calculations
Leverage Ratio Coverage Ratio Key Covenant Calculations ($ in thousands) Total Indebtedness at December 31, 2006 (1) $ 754,050 LTM EBITDA, as defined (2) $ 147,760 Leverage Ratio - Actual 5.10x Leverage Ratio - Covenant 5.75x LTM EBITDA, as defined (2) $ 147,760 Cash Interest Expense (2) $ 79,060 Co
Slide 25: LTM Bank EBITDA
LTM Bank EBITDA (1) (unaudited - $ in thousands) Reported net loss for the twelve months ended December 31, 2006 $ (128,910) Interest expense, net (as defined) Income tax expense (benefit) Depreciation and amortization Extraordinary non-cash charges - impairment of assets Extraordinary non-cash char