Third Quarter 2013 Earnings Presentation October 28, 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 third 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 – Third Quarter Results • Record Q3 sales of approximately $356 million – up 6% compared to Q3 2012 – Results from bolt-on acquisitions adding to top-line – Investments in new products and higher growth markets generating results • Q3 2013 income(1) increased 30% and EPS(1) increased 25% • Capital structure enhanced – September equity offering and October refinance provide additional flexibility and cost reduction • Continued investments in short and long-term growth and productivity programs • Track record of successful acquisitions and synergy attainment; robust pipeline of acquisitions • 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.
Opening Remarks • Current environment • Industrial – Norris cylinders, Rieke steel products • Energy – drilling still down, refinery turnarounds • Middle class – growing in emerging markets • Aircraft – build rates remain strong • Growth highlights • Product enhancements and rollouts • Geographic expansion and bolt-on acquisitions • Productivity initiatives • Capital and people driven • Capital structure enhancements • Equity offering raises $175 million • New debt structure expanded with lower cost • People • Second Green Belt class • TriMas intranet launched for communication 5 No significant changes in macro environment – we continuously fine-tune strategies to mitigate risks and capture opportunities.
Recent Acquisitions • Located in Ottawa, Kansas • Manufacturer of aerospace fasteners, globally utilized by OEMs, aftermarket repair companies, and commercial and military aircraft producers • Broadens product offering on aircraft • Diversifies distribution channels • Provides flexible manufacturing footprint • Approximate annual revenue of $18 million • Part of the Aerospace and Defense segment • Located in Bangalore, India • Manufacturer of high quality, low cost non-asbestos sheet jointing • Further expands low cost manufacturing for Lamons • Part of the Energy segment Good pipeline of potential acquisitions; approach remains consistent with bolt-ons, clear synergies and fast integration. 6
Financial Highlights
Third Quarter Summary • Sales increased 5.9% as compared to Q3 2012 – sales increased in five of six segments • Operating profit was impacted in the short term positively by the sale of Rieke Italy, and offset by a less favorable product sales mix, growth initiatives, and facility consolidation and relocation projects • Q3 income(1) and EPS(1) increased 29.5% and 25.5%, respectively, primarily due to higher operating profit and lower interest expense • Free Cash Flow(2) as expected and well ahead of 2012 • Total Debt, net of cash, was $270.4 million as of September 30, 2013 8 (1) Defined as operating profit, excluding “Special Items,” and income from continuing operations and diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” “Special Items” for each period are provided in the Appendix. (2) Free Cash Flow is defined as Cash Flows from Operating Activities less Capital Expenditures. (Unaudited, dollars in millions, except per share amounts) (from continuing operations) Q3 2013 Q3 2012 % Chg Revenue 355.6$ 335.9$ 5.9% Operating Profit 43.3$ 36.6$ 18.3% Excl. Special Items (1), Operating Profit would have been: 40.2$ 38.7$ 3.8% Excl. Special Items (1), Operating Profit Margin would have been: 11.3% 11.5% -20 bps Inco e 30.0$ 20.0$ 50.1% Income attributable to TriMas Corporation (1) 28.6$ 18.7$ 53.3% Excl. Special Items (1), Income attributable to TriMas Corporation would have been: 26.0$ 20.1$ 29.5% Diluted Earnings Per Share attributable to TriMas Corporation 0.70$ 0.47$ 48.9% Excl. Special Items (1), Diluted Earnings Per Share attributable to TriMas Corporation would have been: 0.64$ 0.51$ 25.5% Free Cash Flow (2) 18.5$ 10.5$ 76.6% Total Debt 479.7$ 430.0$ 11.6%
• Productivity gains offset economics, investments in growth and short-term manufacturing inefficiencies resulting from rapid growth • Price increases essentially offset commodity inflation • Manufacturing inefficiencies from smaller lot sizes and short-cycle changes • Margin decline at Arrow Engine due to lower fixed cost absorption and less favorable product sales mix • Mix will be addressed through synergies identified and Lean implementation • Plan to increase the margins of acquisitions over time ~ -60 Basis Points Operating Profit Margin Bridge: Q3 2012 to Q3 2013 14.5% 13.9% Q3 2012 Q3 2013 Productivity Italy Sale Gain Economics Mix Manufacturing Inefficiencies Engine Business Acquisitions 9 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.
Enhanced Capital Structure 10 As of 10/16/2013(1) Amount Rate Maturity Revolving Credit Facility $250M LIBOR plus 2.00% (2) October 2017 Term Loan A $200M LIBOR plus 2.00% (2) October 2017 Term Loan B $200M LIBOR plus 2.75% (LIBOR floor of 1.00%) October 2019 Post Refinance(1) Amount Rate Maturity Revolving Credit Facility $575M LIBOR plus 1.625% (3) October 2018 Term Loan A $175M L IBOR plus 1.625% (3) October 2018 (1) The Company did not refinance Non-U.S. Bank Debt or the A/R Facility during the recent transaction. (2) Subject to a step-up to LIBOR plus 2.5% or step-down to LIBOR plus 1.5% based on leverage ratio. (3) Subject to a step-up to LIBOR plus 2.125% of step-down to LIBOR plus 1.375% based on leverage ratio. • September equity offering of 5,175,000 shares of common stock with net proceeds of approximately $175 million (approximately 13% more outstanding shares) • October refinance further reduces rates, extends maturities and increases financial flexibility – approximately $4 million annual cash interest savings on a pro forma basis • Moody’s upgraded TriMas’ credit facility rating • Substantial support from both existing and new stakeholders As of September 30, 2013, TriMas had $416.0 million of cash and available liquidity under its revolving credit and accounts receivable facilities.
Segment Highlights
Packaging Q3 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 • European market appears stable, but no signs of improvement • Operating profit(1) and margin increased primarily due to higher sales, ongoing productivity and automation initiatives and gain on sale of business • Sold non-core Italian ring and levers business (dollars in millions) Key Initiatives: • Target specialty dispensing and closure products in higher growth end markets — Beverage, 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 12 Net Sales $77.2 $82.0 Q3 2012 Q3 2013 6.2% Operating Profit (1) $18.2 $23.4 Q3 2012 Q3 2013 28.3% (1) Excluding “Special Items” for each period which are provided in the Appendix.
Energy (dollars in millions) Q3 2013 Results: • Sales increased as a result of recent bolt-on acquisitions and increased sales generated by international locations • Operating profit and the related margin percentage decreased as the margin impact of higher sales and manufacturing productivity was more than offset by the impact of weaker refinery shutdown activity, which resulted in a less favorable product sales mix shift toward standard gaskets and bolts • Continued investments in branch expansion and bolt-on acquisitions • Acquired Basrur, a manufacturer and distributor of sheet jointing in India during September 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 and drive Lean initiatives to improve margins 13 Net Sales $45.5 $47.7 Q3 2012 Q3 2013 4.9% Operating Profit $3.8 $1.5 Q3 2012 Q3 2013 -61.6%
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications • Leverage positive end market trends of 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 and Mac Fasteners; consider other complementary bolt-on acquisitions • Manage existing defense contracts (dollars in millions) Q3 2013 Results: • Sales increased in the aerospace business primarily as a result of the acquisition of Martinic Engineering during Q1, which expands our content on aircraft, and higher blind bolt sales • Operating profit was flat, while the related margin percentage decreased, due to higher SG&A in support of growth initiatives, 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 and reductions in past due orders • Acquired Mac Fasteners, a leading manufacturer of aerospace fasteners, in October 2013 14 Net Sales $20.8 $26.5 Q3 2012 Q3 2013 27.5% Operating Profit $6.0 $6.1 Q3 2012 Q3 2013 0.5%
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 and applications • Continue to expand product offering and geographies • Continue to improve working capital turnover Q3 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 15 Net Sales $51.9 $47.5 Q3 2012 Q3 2013 -8.4% Operating Profit $6.3 $2.9 Q3 2012 Q3 2013 -54.7%
Cequent (APEA & Americas) (dollars in millions) $46.4 Q3 2013 Results: • Sales in Americas increased primarily due to higher sales within the automotive OE and retail channels • Americas operating profit and margin(1) increased as a result of the higher sales • APEA sales increased due to the acquisitions of C.P. Witter and the towing assets of AL-KO • APEA operating profit and margin(1) decreased as profit from higher sales volumes was offset by additional costs related to the acquisitions and less favorable product sales mix 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 16 APEA Americas (1) Excluding “Special Items” for each period which are provided in the Appendix. $41.0 $110.9 Net Sales $37.5 $103.0 Q3 2012 Q3 2013 $140.5 $151.9 8.1% $3.6 $12.2 Operating Profit (1) $4.6 $9.9 Q3 2012 Q3 2013 $15.8 9.0% $14.5
YTD 2013 Summary • Continuous improvement on all fronts • Further enhancement of capital structure positions TriMas for future sales and earnings growth • Seven bolt-on acquisitions through September YTD – future synergies will deliver improved profitability and growth • Generated record EPS • 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. 17
Outlook and Summary
2013 Outlook Outlook as of 2/26/13, 4/25/13 and 7/25/13 Outlook as of 10/28/13 Comments Sales Growth 6% to 8% 8% to 10% Packaging, Aerospace and Cequent volumes increased partially offset by Rieke Italy sale Earnings Per Share, diluted(1) $2.15 to $2.25 $2.15 to $2.25 $2.05 to $2.15 $2.10 to $2.15 Midpoint represents a more than 19% increase as compared to 2012 2013 impact of increased share count and Rieke Italy sale (approximately $0.10) Current EPS Outlook Free Cash Flow(2) $40 to $50 million $40 to $50 million YTD ahead of 2012; 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. 19
2014 Drivers Consistent focus – On track to meet/exceed Strategic Aspirations. Strategic Aspirations •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 Tailwinds •Most global economies improving • Aircraft build rates, U.S. energy production, middle class consumer demand and emerging markets improving •New product pipeline •Robust strategic/opportunistic acquisition pipeline • Several new, lower cost plants on-line and ramping up • Strong balance sheet •Acquisition integrations yielding margin improvement •Productivity projects for margin improvement • Investment in SIOP, systems and Green Belts Headwinds •1-2% economic growth causes short-term changes •U.S. government uncertainty •U.S. oil/gas drilling levels uncertain •Currency and wage inflation in China, Thailand and Mexico 20
Questions & Answers
Appendix
YTD 2013 Summary • Sales increased 10.2% as compared to YTD 2013 – 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 25.1% and 16.4%, 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 • Free Cash Flow(2) and debt levels as expected 23 (Unaudited, dollars in millions, except per share amounts) (from continuing operations) Q3 YTD 2013 Q3 YTD 2012 % Chg Revenue 1,071.4$ 971.9$ 10.2% Operating Profit 108.7$ 108.5$ 0.1% Excl. Special Items (1), Operating Profit would have been: 113.3$ 115.3$ -1.7% Excl. Special Items (1), Operating Profit margin would have been: 10.6% 11.9% -130 bps Inco e 71.1$ 49.4$ 44.0% I c me attributable to TriMas Corporation (1) 68.0$ 47.8$ 42.2% Excl. Special Items (1), Income attributable to TriMas Corporation would have been: 71.0$ 56.7$ 25.1% Diluted earnings per share, attributable to TriMas Corporation 1.70$ 1.28$ 32.8% Excl. Special Items (1), diluted earnings per share attributable to TriMas Corporation would have been: 1.77$ 1.52$ 16.4% Free Cash Flow (2) 6.1$ (21.0)$ fav Debt 479.7$ 430.0$ 11.6% (1) Defined as operating profit, excluding “Special Items,” and 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.
Condensed Consolidated Balance Sheet (Unaudited, dollars in thousands) 24 September 30, December 31, 2013 2012 Assets Current assets: Cash and cash equivalents …………………………………………...……………………………………….209,350$ 20,580$ Receivables, net………………………………………………….………………………….. 201,110 150,390 Inventories .……………………………………………...……………………………………………………...249,630 238,020 Deferred income taxes …………………………………….……………………………………………………………………17,690 18,270 Prepaid expenses and other current assets ..……….………………….……………………………………………………17,960 10,530 Total current assets ………………………………...……….……………………………………………….. 695,740 437,790 Property and equipment, net ..……………………..…………………………………………206,730 185,030 Goodwill …………………………………………………………………………………………………290,270 270,940 Other intangibles, net ……………………………………………………………………….200,310 206,160 Other assets ...………………………………………………………………………………..39,270 31,040 Total assets …………………………………………………………………………………..1,432,320$ 1,130,960$ Liabilities and Shareholders' Equity Current liabilities: Current maturities, long-term debt ……………………...………………………………………………..21,600$ 14,370$ Accounts payable….…………………………………………….……………………………..152,460 158,410 Accrued liabilities ..………………………………………………….……………………………….83,090 74,420 Total current liabilities ……………………………………...………………………………..257,150 247,200 Long-term debt ………………………………………………..……………………………………458,140 408,070 Deferred income taxes ……………………………………………..…………………………….63,310 60,370 Other long-term liabilities ……………………………………….………………………………………80,940 84,960 Total liabilities …………………………………………………..…………………………………….859,540 800,600 Redeemable noncontrolling interests…………………………………………………..…………………………………….27,960 26,780 Total shareholders' equity …………………………………………..………………….544,820 303,580 Total liabilities and shareholders' equity …………………………….……………………1,432,320$ 1,130,960$
Capitalization 25 (Unaudited, dollars in thousands) As of September 30, 2013, TriMas had $416.0 million of cash and available liquidity under its revolving credit and accounts receivable facilities. September 30, December 31, 2013 2012 Cash and Cash Equivalents……………………………..………………… 209,350$ 20,580$ Credit Agreement……….……………………………….. 413,720 399,500 Receivables facility and other………………………..….. 66,020 22,940 479,740 422,440 Total Debt………………………...………………………...………………………… 479,740$ 422,440$ Key Ratios: Bank LTM EBITDA……………………………………………………………………………….……………………………………… 199,670$ 191,710$ Interest Coverage Ratio………………………………………………………………… 9.82 x 5.68 x Leverage Ratio…………………………………………………………………... 2.47 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
Consolidated Statement of Income (Unaudited, dollars in thousands, except for per share amounts) 26 Nine months ended 2013 2012 2013 2012 Net sales.................................................................................... 355,620$ 335,870$ 1,071,430$ 971,870$ Cost of sales............................................................................... (261,470) (245,730) (790,570) (706,930) Gross profit.............................................................................. 94,150 90,140 280,860 264,940 Selling, general and administrative expenses.................................. (61,220) (53,550) (182,540) (156,730) Net gain on dispositions of property and equipment......................... 10,360 10 10,350 330 Operating profit......................................................................... 43,290 36,600 108,670 108,540 Other expense, net:..................................................................... Interest expense....................................................................... (5,570) (9,450) (16,320) (30,420) Debt extinguishment costs........................................................ - - - (6,560) Other income (expense), net...................................................... 2,290 140 360 (2,410) Other expense, net................................................................ (3,280) (9,310) (15,960) (39,390) Income from continuing operations before income tax expense......... 40,010 27,290 92,710 69,150 Income tax expense..................................................................... (10,060) (7,330) (21,620) (19,770) Income from continuing operations................................................. 29,950 19,960 71,090 49,380 Income from discontinued operations, net of income tax expense..... - - 700 - Net income.................................................................................. 29,950 19,960 71,790 49,380 Less: Net income attributable to noncontrolling interests................. 1,320 1,290 3,090 1,560 Net income attributable to TriMas Corporation................................. 28,630$ 18,670$ 68,700$ 47,820$ Earnings per share attributable to TriMas Corporation - basic: Continuing operations …………………………...….…………………………………………………………………………….…………………….. 0.71$ 0.48$ 1.71$ 1.29$ Discontinued operations…………………….……………………..……. - - 0.02 - Net income per share…………………………………...……………… 0.71$ 0.48$ 1.73$ 1.29$ Weighted average common shares - basic …………………………...………………….….. 40,345,828 39,045,282 39,668,693 36,994,192 Earnings per share attributable to TriMas Corporation - diluted: Continuing operations …………………………...….……………………………… 0.70$ 0.47$ 1.70$ 1.28$ Discontinued operations……………………..…………………………… - - 0.02 - Net income per share…………………………………...………………… 0.70$ 0.47$ 1.72$ 1.28$ Weighted average common shares - diluted …………………………...………………….….. 40,746,503 39,508,503 40,029,425 37,379,292 September 30, September 30, Three months ended
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 27 2013 2012 Cash Flows from Operating Activities: Net income..................................................................................................................... 71,790$ 49,380$ Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition impact: Gain on dispositions of property and equipment............................................................... (10,350) (330) Bargain purchase gain.................................................................................................. (2,880) - Depreciation................................................................................................................. 22,190 18,990 Amortization of intangible assets................................................................................... 14,420 14,460 Amortization of debt issue costs.................................................................................... 1,310 2,240 Deferred income taxes.................................................................................................. (3,180) (3,480) Debt extinguishment costs............................................................................................ - 6,560 Non-cash compensation expense.................................................................................. 7,110 6,640 Excess tax benefits from stock based compensation....................................................... (1,280) (2,310) Increase in receivables.................................................................................................. (48,560) (38,750) (Increase) decrease in inventories.................................................................................. 1,800 (31,440) Increase in prepaid expenses and other assets............................................................... (7,100) (600) Decrease in accounts payable and accrued liabilities....................................................... (4,280) (6,130) Other, net.................................................................................................................... 290 170 Net cash provided by operating activities, net of acquisition impact................................ 41,280 15,400 Cash Flows from Investing Activities: Capital expenditures..................................................................................................... (35,150) (36,440) Acquisition of businesses, net of cash acquired.............................................................. (56,000) (84,600) Net proceeds from disposition of assets......................................................................... 10,720 2,950 Net cash used for investing activities........................................................................... (80,430) (118,090) Cash Flows from Financing Activities: Proceeds from sale of common stock in connection with the Company's equity offering, net of issuance costs …....…....…….………..…...……………………………….……………….… 174,720 79,040 Proceeds from borrowings on term loan facilities............................................................. 150,090 140,370 Repayments of borrowings on term loan facilities............................................................. (151,710) (130,850) Proceeds from borrowings on revolving credit and accounts receivable facilities.................. 632,740 555,300 Repayments of borrowings on revolving credit and accounts receivable facilities................. (575,730) (555,300) Repurchase of 9¾% senior secured notes...................................................................... - (50,000) Senior secured notes redemption premium and debt financing fees................................... - (4,880) Distributions to noncontrolling interests.......................................................................... (1,910) (820) 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………..…………...….…..………………….....………………………………………. (3,930) (990) Proceeds from exercise of stock options........................................................................ 1,340 5,680 Excess tax benefits from stock based compensation....................................................... 1,280 2,310 Net cash provided by financing activities...................................................................... 227,920 39,860 Cash and Cash Equivalents: Increase (decrease) for the period.................................................................................. 188,770 (62,830) At beginning of period................................................................................................... 20,580 88,920 At end of period......................................................................................................... 209,350$ 26,090$ Supplemental disclosure of cash flow information: Cash paid for interest................................................................................................. 12,610$ 20,990$ Cash paid for taxes.................................................................................................... 29,880$ 23,000$ Nine months ended September 30,
Company and Business Segment Financial Information 28 Three months ended 2013 2012 2013 2012 Packaging Net sales………………………...………………………………………… 82,010$ 77,240$ 235,000$ 202,250$ Operating profit…………………………………………………………… 31,320$ 18,240$ 65,550$ 44,700$ Special Items to consider in evaluating operating profit: - Release of historical translation adjustment related to the sale of Italian business……….………………………………………… (7,910)$ -$ (7,910)$ -$ Excluding Special Items, operating profit would have been…….. 23,410$ 18,240$ 57,640$ 44,700$ Energy Net sales………………………………………………………………….. 47,680$ 45,460$ 161,420$ 143,220$ Operating profit…………………………………………………………… 1,450$ 3,780$ 12,530$ 14,520$ Aerospace & Defense Net sales………………………………………………………………….. 26,540$ 20,810$ 71,250$ 58,000$ Operating profit…………………………………………………………… 6,060$ 6,030$ 15,330$ 15,710$ Engineered Components Net sales………………………………………………………………….. 47,540$ 51,880$ 143,830$ 154,180$ Operating profit…………………………………………………………… 2,860$ 6,310$ 14,450$ 22,620$ Cequent APEA Net sales………………………………………………………………….. 40,950$ 37,480$ 111,330$ 94,230$ Operating profit…………………………………………………………… 3,570$ 3,950$ 9,300$ 9,000$ Special Items to consider in evaluating operating profit: - Severance and business restructuring costs…..………….………. -$ 600$ -$ 2,880$ Excluding Special Items, operating profit would have been…….. 3,570$ 4,550$ 9,300$ 11,880$ Cequent Americas Net sales………………………………………………………………….. 110,900$ 103,000$ 348,600$ 319,990$ Operating profit…………………………………………………………… 7,440$ 8,430$ 21,030$ 28,090$ Special Items to consider in evaluating operating profit: - Severance and business restructuring costs……………………. 4,780$ 1,500$ 12,570$ 3,840$ Excluding Special Items, operating profit would have been…….. 12,220$ 9,930$ 33,600$ 31,930$ Corporate Expenses Operati g loss……………………………………………………………. (9,410)$ (10,140)$ (29,520)$ (26,100)$ Total Company Net sales………………………………………………………………….. 355,620$ 335,870$ 1,071,430$ 971,870$ Operating profit…………………………………………………………… 43,290$ 36,600$ 108,670$ 108,540$ Total Special Items to consider in evaluating operating profit………. (3,130)$ 2,100$ 4,660$ 6,720$ Excluding Special Items, operating profit would have been…….. 40,160$ 38,700$ 113,330$ 115,260$ Nine months ended September 30, September 30, (Unaudited, dollars in thousands)
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 29 (Unaudited, dollars in thousands, except for per share amounts) 2013 2012 2013 2012 Income from continuing operations, as reported………………………………………………..…………………. 29,950$ 19,960$ 71,090$ 49,380$ Less: Net income attributable to noncontrolling interests…………………………………. 1,320 1,290 3,090 1,560 Income from continuing operations attributable to TriMas Corporation……………………………………………………………….. 28,630 18,670 68,000 47,820 After-tax impact of Special Items to consider in evaluating quality of income from continuing operations: Release of historical translation adjustment related to the sale of Italian business…………………...…….………….………………………………… (7,910) - (7,910) - Severance and business restructuring costs………………………………………………………………3,100 1,420 8,690 4,520 Tax restructuring…………………….………………………………………….. 2,200 - 2,200 - Debt extinguishment costs………………………………………………………. - - - 4,400 Excluding Special Items, income from continuing operations attributable to TriMas Corporation would have been……………………………………………………………………….. 26,020$ 20,090$ 70,980$ 56,740$ 2013 2012 2013 2012 Diluted earnings per share from continuing operations attributable to TriMas Corporation, as reported………………………………………………………………………..……………………………………………. 0.70$ 0.47$ 1.70$ 1.28$ After-tax impact of Special Items to consider in evaluating quality of EPS from continuing operations: Release of historical translation adjustment related to the sale of Italian business………………………………………...……………………… (0.19) - (0.20) - Severance and business restructuring costs………………………………………………………………0.08 0.04 0.22 0.12 Tax restructuring…………………….………………………………………….. 0.05 - 0.05 - Debt extinguishment costs - - - 0.12 Excluding Special Items, EPS from continuing operations would have been……………..………………..……………………………………..…. $ 0.64 $ 0.51 $ 1.77 $ 1.52 Weighted-average shares outstanding for the three and six months ended June 30, 2013 and 2012 40,746,503 39,508,503 40,029,425 37,379,292 2013 2012 2013 2012 Operating profit (excluding Special Items)……………………….………. 40,160$ 38,700$ 113,330$ 115,260$ Corporate expenses……………………………………………………………. 9,410 10,140 29,520 26,100 Segment operating profit (excluding Special Items)………………….. 49,570$ 48,840$ 142,850$ 141,360$ Segment operating profit margin (excluding Special Items)…...…… 13.9% 14.5% 13.3% 14.5% Three months ended September 30, Nine months ended September 30, Three months ended September 30, Nine months ended September 30, Three months ended September 30, Nine months ended September 30,
LTM Bank EBITDA as Defined in Credit Agreement 30 (Unaudited, dollars in thousands) Net income attributable to TriMas Corporation for the twelve months ended September 30, 2013 ………………………………………………………...……………………….. 54,760$ Net income attributable to partially-owned subsidiaries…….………………………………………………………………………. 3,940 Interest expense, net (as defined)…………………….…………………………………………………………………………….. 21,700 Income tax expense.……………………………….……………………………………………………………………………………… 7,820 Depreciation and amortization……………………………...………………………………………………………………………. 48,040 Non-cash compensation expense………………….…………………..…………………………………………………………. 9,750 Other non-cash expenses or losses………………………………………………………………………………….. 3,020 Non-recurring expenses or costs in connection with acquisition integration………………...…………………………………………………………… 450 Debt extinguishment costs……………………...………………………………………………………………… 40,250 Non-recurring expenses or costs for cost saving projects…………………………………………………………………. 15,280 Permitted dispositions……………………………………………………………………………………………………………. (1,940) Permitted acquisitions……………………………………………………………………………………………………………. 2,180 EBITDA of partially-owned subsidiaries attributable to noncontrolling interest……………………………………….. (5,580) Bank EBITDA - LTM Ended September 30, 2013 (1)…………………………………………………………………………………………… 199,670$ (1) As defined in the Credit Agreement dated October 11, 2012.