EX-99.2 3 q22013earningspresentati.htm EX-99.2 q22013earningspresentati
Second Quarter 2013 Earnings Presentation July 25, 2013 NASDAQ • TRS


 
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 not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, the Company’s leverage, liabilities imposed by the Company’s debt instruments, market demand, competitive factors, supply constraints, material and energy costs, technology factors, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2012, and in the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. In this presentation, certain non-GAAP financial measures may be used. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure may be found at the end of this presentation or in the second quarter 2013 earnings release available on the Company’s website. Additional information is available at www.trimascorp.com under the “Investors” section. 2


 
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3


 
Opening Remarks – Second Quarter Results • Continued investments in short and long-term growth and productivity programs; continue to adjust and refine for events • Record Q2 sales of approximately $378 million – up 12% compared to Q2 2012 – Results from bolt-on acquisitions adding to top-line – Investments in new products and higher growth markets generating results • Q2 2013 income(1) increased 20% and EPS(1) increased 13% – record quarter of EPS(1) of $0.69 • Short-term effects of bolt-on acquisitions – track record of successful acquisitions and synergy attainment • Continued focus on cash flow, working capital and leverage Investing in growth balanced with margin expansion activities. 4 (1) Defined as income from continuing operations and diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” “Special Items” for each period are provided in the Appendix.


 
Current Environment Headwinds • European downturn continues, although “stable” • New geographies take time and investment to penetrate • Overall industrial production flat to low growth • Growth and customers’ needs create upward pressure on working capital • Inflation in China • Lower level of drilling activity • Geography-specific events • Cost of non-U.S. diligence/acquisitions 5 No significant changes in environment – we continuously fine-tune strategies to more effectively respond to risks and opportunities. Tailwinds • New product sales across businesses • Aircraft build rates • Global investments in petrochemical plants and refineries • Growth in construction markets • Additional sales in Asia for multiple businesses • Global customers want global suppliers with local plants • Recent acquisitions performing to plan (six completed in 2013); solid pipeline • Relatively stable currencies; commodities softening


 
Growth focused on faster growing markets; following and aiding our customers. Growth Focused on “Bright Spots” 6 • New specialty dispensing and closure systems for consumer applications • Growth in Asian markets • Bolt-on acquisition synergies (Arminak and Innovative) • Continued branch ramp-up (U.S. and non-U.S. based) • Growth in specialty and engineered products • Pursuit of opportunities in Brazil; leverage CIFAL and GVT acquisitions • New aircraft development and production ramp-up • Expansion of product range for composite aircraft applications • Global sales expansion, including China • Recent acquisition of Martinic Engineering expands product offering • New cylinder applications (fire suppression, cell phone towers, mining, ISO small high pressure) • Export opportunities • Additional well-site content (electronics, gas compression products) • Natural gas compressor packaging and shale field opportunities • Geographic expansion into Brazil, Europe, South Africa and New Zealand • OEM wins for engineered, heavy duty trailer products • Thailand-based automotive OEM wins • Cargo management and towing products share gains at large retailers New Products New Geographies New Markets Market Share Gains Bolt-on Acquisitions


 
Acquisition Update – YTD 2013 Short-term margin impact of bolt-on acquisitions – track record of successful acquisitions and synergy attainment. . 7 Acquisition Date Location Segment Product Geography Customer January 14 Brazil Energy P P January 28 California Aerospace & Defense P P March 26 United Kingdom Energy P P P April 12 United Kingdom Cequent APEA P P P April 29 Thailand Energy P July 19 Germany Cequent APEA P P P Towing technology business assets


 
Financial Highlights


 
Second Quarter Summary • Sales increased 11.7% as compared to Q2 2012 – sales increased in five of six segments • Organic initiatives contributed more than 50% of growth • Margin expansion in many of the legacy businesses • Operating profit was negatively impacted by acquisition-related costs and costs related to facility consolidation and relocation projects • Q2 income(1) and EPS(1) increased 19.7% and 13.1%, respectively, while absorbing costs related to acquisitions and taking into account 6% higher weighted average shares compared to Q2 2012 • Lower interest expense and a reduced tax rate had a positive effect 9 (1) Defined as income from continuing operations and diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” “Special Items” for each period are provided in the Appendix. (2) Free Cash Flow is defined as Cash Flows from Operating Activities less Capital Expenditures. (Unaudited, dollars in millions, except per share amounts) (from continuing operations) Q2 2013 Q2 2012 % Chg Revenue 378.0$ 338.4$ 11.7% Operating Profit 41.6$ 43.2$ -3.6% Excl. Special Items (1), Operating Profit would have been: 43.6$ 46.2$ -5.5% Excl. Special Items (1), Operating Profit Margin would have been: 11.5% 13.6% -210 bps Income 27.1$ 17.2$ 57.8% I c me attributable to TriMas Corporation (1) 26.2$ 16.7$ 57.2% Excl. Special Items (1), Income attributable to TriMas Corporation would have been: 27.6$ 23.0$ 19.7% Diluted Earnings Per Share attributable to TriMas Corporation 0.65$ 0.44$ 47.7% Excl. Special Items (1), Diluted Earnings Per Share attributable to TriMas Corporation would have been: 0.69$ 0.61$ 13.1% Free Cash Flow (2) 39.5$ 19.3$ 105.2% Total Debt 480.7$ 420.8$ 14.2%


 
Q2 2012 Packaging Energy A&D Eng. Comp Cequent APEA Cequent Americas Energy A&D Cequent APEA Cequent Americas Q2 2013 $338.4M Arrow $378.0M LTM Acquisitions Sales Bridge: Q2 2012 to Q2 2013 Legacy Businesses • Record quarterly sales achieved Q2 2013 • More than 50% of sales increase driven by organic initiatives • All businesses increased with the exception of Arrow Engine, resulting from lower drilling and well completion levels • Packaging offerings led growth with significant customer and regional success • Energy business network continues to experience significant growth Norris 10 • Geographic expansion investment in Asia, South America and Europe • Investing in customers and regions which enhance TriMas’ relevance • Cequent APEA acquisitions globalize the broad product offering and supports global customers ~ +625 Basis Points ~ +550 Basis Points


 
Q2 2012 Productivity Economics Manufacturing Inefficiencies Engine Business Growth Investment Purchase Accounting Acquisition Diligence Mix Operating Profit Margin Bridge: Q2 2012 to Q2 2013 Note: Above reflects operating profit margin excluding Special Items and corporate expenses. “Special Items” and corporate expense for the period are provided in the Appendix. 16.2% 14.2% Q2 2013 LTM Acquisitions Legacy Businesses 11 • Productivity gains offset economics, investments in growth and short-term manufacturing inefficiencies resulting from rapid growth • Price increases essentially offset commodity inflation • Packaging demonstrated margin expansion in all businesses to reach 25% operating profit margin for quarter • Energy expanded legacy margins during the quarter • Lean will drive future manufacturing efficiencies as adjustments are made to smaller lot sizes and short-cycle changes • Margin decline at Arrow Engine due to lower fixed cost absorption and less favorable product mix • Short-term effects of purchase accounting and integration costs addressed in coming year • Mix will be addressed through synergies identified and Lean implementation • Plan to increase the margins of acquisitions over time ~ -100 Basis Points ~ -100 Basis Points


 
Segment Highlights


 
Packaging Q2 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 • Sales of industrial closures increased, due to increases in North America and additional market share gains in Europe • European market appears stable, but no signs of improvement • Operating profit increased primarily due to higher sales and ongoing productivity and automation initiatives, in both legacy and acquired businesses • Operating profit margin increased 150 basis points as compared to Q2 2012 (dollars in millions) Key Initiatives: • Target specialty dispensing and closure products in higher growth end markets — Beverage, cosmetic, food, nutrition, personal care and pharmaceutical • Increase focus on Asian market and cultivate other geographic opportunities • Further integrate acquisitions into global sales network, while growing margins • Provide solutions focused on customer needs, differentiation and delivery speed • Increase low cost sourcing and leverage flexible manufacturing footprint • Ensure new products continue to have barriers to entry 13 Net Sales $70.7 $78.6 Q2 2012 Q2 2013 11.2% Operating Profit $16.6 $19.6 Q2 2012 Q2 2013 18.3%


 
Energy (dollars in millions) Q2 2013 Results: • Sales increased as a result of recent bolt-on acquisitions, sales into the engineering and construction market and increased sales generated by the European branches • Operating profit increased, while the related margin percentage decreased as the margin impact of higher sales and manufacturing productivity were more than offset by the effects of the acquisitions and higher SG&A in support of growth • Legacy business margins improved compared to Q2 2012 • Acquired assets of Tat Lee, a manufacturer and distributor of standard and specialty gaskets in Thailand, in April 2013 Key Initiatives: • Replicate U.S. branch strategy – expand business capabilities with major customers globally • Execute on growth and profitability initiatives in Brazil and other emerging markets • Increase sales of highly-engineered specialty products • Maximize supply chain for cost and delivery • Drive Lean initiatives to improve margins 14 Net Sales $47.2 $58.8 Q2 2012 Q2 2013 24.7% Operating Profit $4.4 $5.2 Q2 2012 Q2 2013 19.8%


 
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Leverage positive end market trends including composite aircraft and robotic assembly • Capture incremental opportunities in emerging markets • Drive ongoing Lean initiatives to lower working capital and reduce costs • Continue to integrate Martinic Engineering; consider other complementary bolt-on acquisitions • Bid on new defense projects (dollars in millions) Q2 2013 Results: • Sales increased in the aerospace business primarily as a result of the acquisition of Martinic Engineering in Q1, which expands our content on aircraft • Defense business sales decreased as compared to Q2 2012 • Operating profit increased, while the related margin percentage decreased due to the effect of the acquisition, as well as new equipment and plant ramp-up costs in the aerospace business • Aircraft frame manufacturers continue to ramp-up build rates with growth in backlog 15 Net Sales $19.3 $23.7 Q2 2012 Q2 2013 22.8% Operating Profit $4.8 $5.5 Q2 2012 Q2 2013 14.5%


 
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 • Expand cylinder business into new markets • Continue to expand product offering and geographies • Continue to improve working capital turnover Q2 2013 Results: • Sales of engines, compressors and other well-site content decreased due to reduced levels of drilling and well completions • Sales of industrial cylinders increased primarily due to market share gains both domestically and internationally, as well as new products • Operating profit and related margin declined due to decreased sales levels and lower fixed cost absorption in the engine business, partially offset by improvements in the industrial cylinder business 16 Net Sales $52.6 $50.0 Q2 2012 Q2 2013 -4.9% Operating Profit $8.6 $5.9 Q2 2012 Q2 2013 -31.5%


 
Cequent (APEA & Americas) (dollars in millions) $46.4 Q2 2013 Results: • Sales in Americas increased primarily due to higher sales within the automotive OE, aftermarket and retail channels, as well as the July 2012 acquisition in Brazil • Americas operating profit and margin(1) decreased as a result of a less favorable product sales mix and increased SG&A in support of growth initiatives • APEA sales increased due to the acquisitions of Witter and Trail Com, as well as growth initiatives in Asia and South Africa • APEA operating profit and margin(1) decreased as profit from higher sales volumes was offset by additional costs related to the acquisitions Key Initiatives: • Globalize full product line and strong brands for market share and cross-selling • Expand sales in new growing geographies and support global customer needs • Manage utilization of flexible manufacturing footprint in Thailand and Mexico • Integrate opportunistic, bolt-on acquisitions to capture synergies and support global customers • Utilize Lean to continue to reduce fixed costs and simplify the businesses for better customer service and operating effectiveness • Continue to reduce working capital requirements APEA Americas 17 APEA Americas (1) Excluding “Special Items” for each period which are provided in the Appendix. $38.3 $128.5 Net Sales $28.6 $120.1 Q2 2012 Q2 2013 $148.7 $166.8 12.2% $2.6 $14.9 Operating Profit (1) $3.6 $16.9 Q2 2012 Q2 2013 $17.5 -14.5% $20.5


 
First Half 2013 Summary • Organic growth achieved through product innovation, geographic expansion and market share gains • Five bolt-on acquisitions in the first half – future synergies will deliver improved profitability and growth • Generated double-digit earnings growth and record EPS • Majority legacy businesses’ margins improving as a result of productivity and margin initiatives • Continuous productivity initiatives fund investments for long-term growth • Continued focus on margins, cash flow, working capital and leverage Continue momentum to drive positive results. 18


 
Outlook and Summary


 
2013 Outlook Reaffirmed Outlook as of 7/25/13 Comments Sales Growth 6% to 8% Recent acquisitions increase growth expectations to higher end of range Earnings Per Share, diluted(1) $2.15 to $2.25 Midpoint of 2013 EPS outlook represents a more than 19% increase as compared to 2012 Free Cash Flow(2) $40 to $50 million On track for year; seasonal FCF generation (1) Defined as diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” (2) Defined as Cash Flow from Operating Activities less Capital Expenditures. 2013 outlook in line with our strategic aspirations, while effectively investing in future growth and productivity. 20


 
Strategic Aspirations Strategic aspirations are the foundation for the future. 21 • 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 growth • Grow earnings faster than revenue growth • Optimize capital structure • Strive to be a great place to work


 
Questions & Answers


 
Appendix


 
First Half 2013 Summary • Sales increased 12.5% as compared to YTD 2012 – 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 negatively impacted by acquisition-related costs and costs related to facility consolidation and relocation projects • Income(1) and EPS(1) increased 22.7% and 11.9%, respectively, while absorbing costs related to acquisitions and taking into account higher weighted average shares compared to YTD 2012 • Lower interest expense and a reduced tax rate had a positive effect • FCF and debt levels as expected 24 (1) Defined as income from continuing operations and diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” “Special Items” for each period are provided in the Appendix. (2) Free Cash Flow is defined as Cash Flows from Operating Activities less Capital Expenditures. (Unaudited, dollars in millions, except per share amounts) (from continuing operations) Q2 YTD 2013 Q2 YTD 2012 % Chg Revenue 715.8$ 636.0$ 12.5% Operating Profit 65.4$ 71.9$ -9.1% Excl. Special Items (1), Operating Profit would have been: 73.2$ 76.6$ -4.4% Excl. Special Items (1), Operating Profit margin would have been: 10.2% 12.0% -180 bps Income 41.1$ 29.4$ 39.8% I c me attributable to TriMas Corporation (1) 39.4$ 29.2$ 35.1% Excl. Special Items (1), Income attributable to TriMas Corporation would have been: 45.0$ 36.7$ 22.7% Diluted earnings per share, attributable to TriMas Corporation 0.99$ 0.80$ 23.8% Excl. Special Items (1), diluted earnings per share attributable to TriMas Corporation would have been: 1.13$ 1.01$ 11.9% Free Cash Flow (2) (12.4)$ (31.5)$ fav Debt 480.7$ 420.8$ 14.2%


 
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 25 June 30, December 31, 2013 2012 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….18,830$ 20,580$ Receivables, net………………………………………………….………………………….. 207,860 150,390 Inventories .……………………………………………...……………………………………………………...246,060 238,020 Deferred income taxes …………………………………….……………………………………………………………………17,990 18,270 Prepaid expenses and other current assets ..……….………………….……………………………………………………12,770 10,530 Total current assets ………………………………...……….……………………………………………….. 503,510 437,790 Property and equipment, net ..……………………..…………………………………………200,330 185,030 Goodwill …………………………………………………………………………………………………285,360 270,940 Other intangibles, net ……………………………………………………………………….208,850 206,160 Other assets ...………………………………………………………………………………..41,270 31,040 Total assets …………………………………………………………………………………..1,239,320$ 1,130,960$ Liabilities and Shareholders' Equity Current liabilities: Current maturities, long-term debt ……………………...………………………………………………..20,840$ 14,370$ Accounts payable….…………………………………………….……………………………..163,830 158,410 Accrued liabilities ..………………………………………………….……………………………….74,120 74,420 Total current liabilities ……………………………………...………………………………..258,790 247,200 Long-term debt ………………………………………………..……………………………………459,810 408,070 Deferred income taxes ……………………………………………..…………………………….65,160 60,370 Other long-term liabilities ……………………………………….………………………………………87,140 84,960 Total liabilities …………………………………………………..…………………………………….870,900 800,600 Redeemable noncontrolling interests…………………………………………………..…………………………………….27,200 26,780 Total shareholders' equity …………………………………………..………………….341,220 303,580 Total liabilities and shareholders' equity …………………………….……………………1,239,320$ 1,130,960$


 
Capitalization 26 (Unaudited, dollars in thousands) June 30, December 31, 2013 2012 Cash and Cash Equivalents……………………………..………………… 18,830$ 20,580$ Credit Agreement……….……………………………….. 412,210 399,500 Receivables facility and other………………………..….. 68,440 22,940 480,650 422,440 Total Debt………………………...………………………...………………………… 480,650$ 422,440$ Key Ratios: Bank LTM EBITDA……………………………………………………………………………….……………………………………… 193,040$ 191,710$ Interest Coverage Ratio………………………………………………………………… 7.89 x 5.68 x Leverage Ratio…………………………………………………………………... 2.57 x 2.30 x Bank Covenants: Minimum Interest Coverage Ratio………………………………………………………………… 3.00 x 3.00 x Maximum Leverage Ratio………………………………………………………………………………… 3.50 x 3.50 x As of June 30, 2013, TriMas had $198.1 million of cash and available liquidity under its revolving credit and accounts receivable facilities.


 
Consolidated Statement of Income (Unaudited, dollars in thousands, except for per share amounts) 27 Six months ended 2013 2012 2013 2012 Net sales.................................................................................... 378,030$ 338,430$ 715,810$ 636,000$ Cost of sales............................................................................... (274,720) (242,540) (529,100) (461,200) Gross profit.............................................................................. 103,310 95,890 186,710 174,800 Selling, general and administrative expenses.................................. (61,670) (52,710) (121,320) (103,180) Net gain (loss) on dispositions of property and equipment................ - 20 (10) 320 Operating profit......................................................................... 41,640 43,200 65,380 71,940 Other expense, net:..................................................................... Interest expense....................................................................... (5,540) (10,300) (10,750) (20,970) Debt extinguishment costs........................................................ - (6,560) - (6,560) Other income (expense), net...................................................... 300 (910) (1,930) (2,550) Other expense, net................................................................ (5,240) (17,770) (12,680) (30,080) Income from continuing operations before income tax expense......... 36,400 25,430 52,700 41,860 Income tax expense..................................................................... (9,300) (8,260) (11,560) (12,440) Income from continuing operations................................................. 27,100 17,170 41,140 29,420 Income from discontinued operations, net of income tax expense..... 700 - 700 - Net income.................................................................................. 27,800 17,170 41,840 29,420 Less: Net income attributable to noncontrolling interests................. 910 510 1,770 270 Net income attributable to TriMas Corporation................................. 26,890$ 16,660$ 40,070$ 29,150$ Earnings per share attributable to TriMas Corporation - basic: Continuing operations …………………………...….…………………………………………………………………………….…………………….. 0.66$ 0.45$ 1.00$ 0.81$ Discontinued operations…………………….……………………..……. 0.02 - 0.02 - Net income per share…………………………………...……………… 0.68$ 0.45$ 1.02$ 0.81$ Weighted average common shares - basic …………………………...………………….….. 39,425,471 37,345,026 39,330,125 35,968,646 Earnings per share attributable to TriMas Corporation - diluted: Continuing operations …………………………...….……………………………… 0.65$ 0.44$ 0.99$ 0.80$ Discontinued operations……………………..…………………………… 0.02 - 0.02 - Net income per share…………………………………...………………… 0.67$ 0.44$ 1.01$ 0.80$ Weighted average common shares - diluted …………………………...………………….….. 39,886,593 37,694,221 39,790,349 36,421,387 June 30, June 30, Three months ended


 
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 28 2013 2012 Cash Flows from Operating Activities: Net income..................................................................................................................... 41,840$ 29,420$ Adjustments to reconcile net income to net cash provided by (used for) operating activities, net of acquisition impact: (Gain) loss on dispositions of property and equipment...................................................... 10 (320) Depreciation................................................................................................................. 14,560 12,690 Amortization of intangible assets................................................................................... 10,230 9,180 Amortization of debt issue costs.................................................................................... 870 1,600 Deferred income taxes.................................................................................................. (3,470) 200 Debt extinguishment costs............................................................................................ - 6,560 Non-cash compensation expense.................................................................................. 4,750 3,510 Excess tax benefits from stock based compensation....................................................... (1,180) (2,130) Increase in receivables.................................................................................................. (54,460) (41,630) (Increase) decrease in inventories.................................................................................. 1,320 (31,270) Increase in prepaid expenses and other assets............................................................... (2,240) (1,740) Increase in accounts payable and accrued liabilities........................................................ 2,320 8,470 Other, net.................................................................................................................... (1,010) 580 Net cash provided by (used for) operating activities, net of acquisition impact.................. 13,540 (4,880) Cash Flows from Investing Activities: Capital expenditures..................................................................................................... (25,920) (26,640) Acquisition of businesses, net of cash acquired.............................................................. (46,610) (61,820) Net proceeds from disposition of assets......................................................................... 700 2,770 Net cash used for investing activities........................................................................... (71,830) (85,690) Cash Flows from Financing Activities: Proceeds from sale of common stock in connection with the Company's equity offering, net of issuance costs …....…....…….………..…...……………………………….……………….… - 79,040 Proceeds from borrowings on term loan facilities............................................................. 106,420 69,530 Repayments of borrowings on term loan facilities............................................................. (104,830) (69,150) Proceeds from borrowings on revolving credit and accounts receivable facilities.................. 475,890 412,900 Repayments of borrowings on revolving credit and accounts receivable facilities................. (418,900) (412,900) Retirement of 9¾% senior secured notes........................................................................ - (50,000) Senior secured notes redemption premium and debt financing fees................................... - (4,880) Distributions to noncontrolling interests.......................................................................... (1,350) (410) Proceeds from contingent consideration related to disposition of businesses..................... 1,030 - Shares surrendered upon vesting of options and restricted stock awards to cover tax obligations………..…………...….…..………………….....………………………………………. (3,760) (990) Proceeds from exercise of stock options........................................................................ 860 5,660 Excess tax benefits from stock based compensation....................................................... 1,180 2,130 Net cash provided by financing activities...................................................................... 56,540 30,930 Cash and Cash Equivalents: Decrease for the period................................................................................................. (1,750) (59,640) At beginning of period................................................................................................... 20,580 88,920 At end of period......................................................................................................... 18,830$ 29,280$ Supplemental disclosure of cash flow information: Cash paid for interest................................................................................................. 8,280$ 17,790$ Cash paid for taxes.................................................................................................... 13,830$ 13,840$ Six months ended June 30,


 
Company and Business Segment Financial Information 29 Three months ended 2013 2012 2013 2012 Packaging Net sales………………………...………………………………………… 78,640$ 70,700$ 152,990$ 125,010$ Operating profit…………………………………………………………… 19,600$ 16,570$ 34,230$ 26,460$ Energy Net sales………………………………………………………………….. 58,820$ 47,170$ 113,740$ 97,760$ Operating profit…………………………………………………………… 5,210$ 4,350$ 11,080$ 10,740$ Aerospace & Defense Net sales………………………………………………………………….. 23,740$ 19,330$ 44,710$ 37,190$ Operating profit…………………………………………………………… 5,520$ 4,820$ 9,270$ 9,680$ Engineered Components Net sales………………………………………………………………….. 50,020$ 52,620$ 96,290$ 102,300$ Operating profit…………………………………………………………… 5,890$ 8,600$ 11,590$ 16,310$ Cequent APEA Net sales………………………………………………………………….. 38,290$ 28,550$ 70,380$ 56,750$ Operating profit…………………………………………………………… 2,550$ 2,010$ 5,730$ 5,050$ Special Items to consider in evaluating operating profit: - Severance and business restructuring costs…..………….………. -$ 1,560$ -$ 2,280$ Excluding Special Items, operating profit would have been…….. 2,550$ 3,570$ 5,730$ 7,330$ Cequent Americas Net sales………………………………………………………………….. 128,520$ 120,060$ 237,700$ 216,990$ Operating profit…………………………………………………………… 12,890$ 15,500$ 13,590$ 19,660$ Special Items to consider in evaluating operating profit: - Severance and business restructuring costs……………………. 1,960$ 1,390$ 7,790$ 2,340$ Excluding Special Items, operating profit would have been…….. 14,850$ 16,890$ 21,380$ 22,000$ Corporate Expenses Operating loss……………………………………………………………. (10,020)$ (8,650)$ (20,110)$ (15,960)$ Total Company Net sales………………………………………………………………….. 378,030$ 338,430$ 715,810$ 636,000$ Operating profit…………………………………………………………… 41,640$ 43,200$ 65,380$ 71,940$ Total Special Items to consider in evaluating operating profit………. 1,960$ 2,950$ 7,790$ 4,620$ Excluding Special Items, operating profit would have been…….. 43,600$ 46,150$ 73,170$ 76,560$ Six months ended June 30, June 30, (Unaudited, dollars in thousands)


 
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 30 (Unaudited, dollars in thousands, except for per share amounts) 2013 2012 2013 2012 Income from continuing operations, as reported………………………………………………..………………….. 27,100$ 17,170$ 41,140$ 29,420$ Less: Net income attributable to noncontrolling interests…………………………………. 910 510 1,770 270 Income from continuing operations attributable to TriMas Corporation……………………………………………………………….. 26,190 16,660 39,370 29,150 After-tax impact of Special Items to consider in evaluating quality of income from continuing operations: Severance and business restructuring costs………………………………………………………………1,390 1,980 5,590 3,100 Debt extinguishment costs………………………………………………………. - 4,400 - 4,400 Excluding Special Items, income from continuing operations attributable to TriMas Corporation would have been……………………………………………………………………….. 27,580$ 23,040$ 44,960$ 36,650$ 2013 2012 2013 2012 Diluted earnings per share from continuing operations attributable to TriMas Corporation, as reported………………………………………………………………………..……………………………………………. 0.65$ 0.44$ 0.99$ 0.80$ After-tax impact of Special Items to consider in evaluating quality of EPS from continuing operations: Severance and business restructuring costs……………………………………………………………… 0.04 0.05 0.14 0.09 Debt extinguishment costs - 0.12 - 0.12 Excluding Special Items, EPS from continuing operations would have been…………………………………………………. $ 0.69 $ 0.61 $ 1.13 $ 1.01 Weighted-average shares outstanding for the three and six months ended June 30, 2013 and 2012 39,886,593 37,694,221 39,790,349 36,421,387 Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, 2013 2012 2013 2012 Operating profit (excluding Special Items)……………………….………. 43,600$ 46,150$ 73,170$ 76,560$ Corporate expenses……………………………………………………………. 10,020 8,650 20,110 15,960 Segment operating profit (excluding Special Items) .. 53,620$ 54,800$ 93,280$ 92,520$ Segment operating profit margin (excluding Special Items)…...…… 14.2% 16.2% 13.0% 14.5% Three months ended June 30, Six months ended June 30,


 
LTM Bank EBITDA as Defined in Credit Agreement 31 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended June 30, 2013 ………………………………………………………...……………………….. 44,800$ Net income attributable to partially-owned subsidiaries…….………………………………………………………………………. 3,910 Interest expense, net (as defined)…………………….…………………………………………………………………………….. 25,580 Income tax expense.……………………………….……………………………………………………………………………………… 5,090 Depreciation and amortization……………………………...………………………………………………………………………. 47,790 Non-cash compensation expense………………….…………………..…………………………………………………………. 10,520 Other non-cash expenses or losses………………………………………………………………………………….. 2,240 Non-recurring expenses or costs in connection with acquisition integration………………...…………………………………………………………… 530 Debt extinguishment costs……………………...………………………………………………………………… 40,250 Non-recurring expenses or costs for cost saving projects…………………………………………………………………. 13,100 Permitted acquisitions……………………………………………………………………………………………………………. 4,670 EBITDA of partially-owned subsidiaries attributable to noncontrolling interest……………………………………….. (5,440) Bank EBITDA - LTM Ended June 30, 2013 (1)…………………………………………………………………………………………… 193,040$ (1) As defined in the Credit Agreement dated October 11, 2012.