TriMas Corporation · NASDAQ:TRS
TriMas — FY2016 Earnings Presentation
33 slides from TriMas's earnings presentation, Feb 28, 2017
Slide 1: Fourth Quarter and Full Year 2016 Earnings Presentation
Fourth Quarter and Full Year 2016 Earnings Presentation February 28, 2017
Slide 2: Forward-Looking Statement
2 Forward-Looking Statement 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
Slide 3: Agenda
3 • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix Presenters Include: • Thomas Amato, President and Chief Executive Officer • Robert Zalupski, Chief Financial Officer • Sherry Lauderback, Vice President, Investor Relations Agenda
Slide 4: Opening Remarks
Opening Remarks
Slide 5: 2016...A Transitional Year for TriMas
5 2016…A Transitional Year for TriMas • New leadership in Q3, followed by a renewed focus to drive results • Many changes were implemented: - Implemented a new operating and financial model – concentrating on current and prospective challenges and opportunities - Leveraged data to drive a sense of u
Slide 6: Opening Remarks: Introduced New TriMas Business Model
6 Opening Remarks Actions taken and underway to unleash opportunities and value. Introduced New TriMas Business Model (TBM) – Some Examples Results- Driven Continuous Improvement TBM Focus Environmental, Health and Safety Annual Goal Setting and Measurement Flawless Launches Continuous Impro
Slide 7: Financial Highlights
Financial Highlights
Slide 8: Fourth Quarter Summary
8 Fourth Quarter Summary Note: Please see the Appendix for a detailed reconciliation to GAAP results. (Unaudited, dollars in millions, except per share amounts) Expanded operating profit margin, excluding Special Items, despite continued end market weakness. • Q4 2016 sales declined 3.8% as compared
Slide 9: Fourth Quarter Summary: Free Cash Flow
9 Fourth Quarter Summary (1) Free Cash Flow is defined as Net Cash Provided by Operating Activities of Continuing Operations, excluding the cash impact of Special Items, less Capital Expenditures. (Unaudited, dollars in millions) • Generated Free Cash Flow(1) of $33.2 million in Q4 2016 after consid
Slide 10: Full Year 2016 Summary
10 Full Year 2016 Summary • Sales decreased 8% as organic and acquisition sales increases were more than offset by declines resulting from the impact of lower oil prices and related production activity, industrial end market softness and unfavorable currency exchange • Operating profit margin, exclu
Slide 11: Segment Highlights
Segment Highlights
Slide 12: Packaging Segment
12 Packaging Segment • Sales increased 9.7% on a constant currency basis • Continued to drive and gain traction on sales by focusing technical and commercial resources in the health, beauty & home care, food & beverage, and industrial end markets • Profit increased while margins remained strong Quar
Slide 13: Aerospace Segment
13 Aerospace Segment Quarterly Comments (Unaudited, dollars in millions) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Focusing on manufacturing performance and delivery improvements to leverage platform. Actions Markets, Products & Brands • Added new leader of Aerospa
Slide 14: Aerospace Segment – Recovery Update
14 Aerospace Segment – Recovery Update • Improved operational performance at Commerce, California plant - Manufacturing environment stabilizing; key performance indicators demonstrating progress - Continued strong order intake provides solid demand to start 2017 • Improved order intake of rivets sug
Slide 15: Energy Segment
15 Energy Segment Quarterly Comments (Unaudited, dollars in millions) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Accelerating performance improvement plans. Actions Markets, Products & Brands • Sales decreased due to reduced demand in oil & gas end markets and de-em
Slide 16: Engineered Components Segment
16 Engineered Components Segment Quarterly Comments (Unaudited, dollars in millions) Note: Please see the Appendix for a detailed reconciliation to GAAP results. Tight cost management mitigating impact of lower end market volume. Actions Markets, Products & Brands • Sales declined due to softer indu
Slide 17: Outlook and Summary
SS TriMas Qutlook and Cuimmany,
Slide 18: FY 2017 Segment Assumptions
18 FY 2017 Segment Assumptions (1) 2017 sales growth versus 2016. Note: All of the figures and comments on this slide exclude any current and future Special Items. From Continuing Operations Segment Sales(1) Operating Profit Margin (excl. Special Items) Full Year 2017 Commentary Packaging 2% – 4% 23
Slide 19: FY 2017 Outlook
19 FY 2017 Outlook (1) Free Cash Flow is defined as Net Cash Provided by/Used for Operating Activities of Continuing Operations, excluding the cash impact of Special Items, less Capital Expenditures. From Continuing Operations Sales and margin expansion expected to drive year-over-year EPS growth. N
Slide 20: FY 2017 Additional Assumptions
20 FY 2017 Additional Assumptions From Continuing Operations Note: All of the figures and comments on this slide exclude any current and future Special Items. Full Year Outlook (as of 2/28/17) Interest Expense $13 – $15 million Capital Expenditures ~ 4% of sales Tax Rate 30% – 32% Corporate Cash Exp
Slide 21: 2017 Near-Term Focus
21 2017 Near-Term Focus Focused on operational execution and improved performance. • Operate under the new TriMas Business Model, with a nearer-term focus on: - Driving growth in the Packaging and Engineered Components segments - Continuing to execute turnaround plans in the Energy and Aerospace seg
Slide 22: Closing Comments
22 Closing Comments TriMas has many attractive investment attributes. Well-established brands with leading market positions in niche markets Majority of products with high barriers to entry through production innovation or customer qualifications Strong cash flow with options to drive sharehol
Slide 23: Questions and Answers
Questions and Answers
Slide 24: Appendix
Appendix
Slide 25: Condensed Consolidated Balance Sheet
25 Condensed Consolidated Balance Sheet (Dollars in thousands) December 31, December 31, 2016 2015 Assets Current assets: Cash and cash equivalents............................................... 20,710$ 19,450$ Receivables, net.............................................................. 111,570 12
Slide 26: Consolidated Statement of Operations
26 Consolidated Statement of Operations (Unaudited, dollars in thousands, except for per share amounts) Three months ended Twelve months ended 2016 2015 2016 2015 Net sales......................................................................................... 185,530$ 192,760$ 794,020$ 863,980$ Co
Slide 27: Consolidated Statement of Cash Flow
27 Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 2016 2015 Cash Flows from Operating Activities: Net loss.......................................................................................................................... (39,800)$ (33,400)$ Loss from discontinued opera
Slide 28: Company & Segment Financial Information
28 Company & Segment Financial Information (Unaudited, dollars in thousands, from continuing operations) Three months ended 2016 2015 2016 2015 Packaging Net sales................................................................................................... 82,790$ 77,800$ 341,340$ 334,270$ Ope
Slide 29: Segment Performance Summary
29 Segment Performance Summary (Unaudited, dollars in millions) Operating Profit Margin (excluding Special Items) Note: Please see the detailed reconciliation to GAAP results in this Appendix. Historical figures may be found in the corresponding earnings releases located on www.trimascorp.com under
Slide 30: Additional Information Regarding Special Items
30 Additional Information Regarding Special Items (Unaudited, dollars in thousands, except for per share amounts) Three months ended Twelve months ended December 31, December 31, 2016 2015 2016 2015 Loss from continuing operations, as reported.........................................................
Slide 31: Additional Information Regarding Special Items
31 Additional Information Regarding Special Items (Unaudited, dollars in thousands) As reported Special Items Excluding Special Items As reported Special Items Excluding Special Items Net cash provided by operating activities of continuing operations.......................... 34,060$ 8,090$ 42,150$
Slide 32: Current Debt Structure
32 Current Debt Structure (Unaudited, dollars in thousands) TriMas had $147.2 million of cash and available liquidity under its revolving credit and accounts receivable facilities. December 31, December 31, 2016 2015 Cash and Cash Equivalents……………………………..………………… 20,710$ 19,450$ Credit Agreement……………
Slide 33: LTM Bank EBITDA
33 LTM Bank EBITDA (Unaudited, dollars in thousands) (1) As defined in the Credit Agreement dated June 30, 2015. (39,800)$ Interest expense.................................................................................. 13,720 Depreciation and amortization..........................................