EX-99.1 2 a2176846zex-99_1.htm EXHIBIT 99.1

Exhibit 99.1

 

For more information, contact:

 

 

 

E.R. “Skip”Autry

 

Chief Financial Officer

 

TriMas Corporation

 

(248) 631-5496

 

MEDIA RELEASE

 

TRIMAS CORPORATION REPORTS FULL YEAR

AND FOURTH QUARTER RESULTS

 

BLOOMFIELD HILLS, MICH. – March 22, 2007 – TriMas Corporation today announced financial results for the fourth quarter and full year ended December 31, 2006. On a full year basis, the Company reported record sales from continuing operations of $1,020.5 million and a loss from continuing operations of $108.2 million (which includes a $116.5 million goodwill impairment charge, as described below), or $5.35 per share on a fully-diluted basis.

 

The reported GAAP results for the year ended December 31, 2006 were impacted significantly by a $116.5 million non-cash goodwill impairment charge and $8.6 million of costs and charges related to the refinancing of its credit agreement which, after-tax, increased the loss from continuing operations by $5.97 per share.

 

FULL YEAR 2006 HIGHLIGHTS – CONTINUING OPERATIONS

 

•                  Sales increased 2.0%, to a record $1,020.5 million, driven by significant sales growth in our Packaging Systems, Energy Products and Industrial Specialties operating segments.

 

•                  The Company’s reported operating loss was $13.6 million which included a $116.5 million non-cash goodwill impairment charge. Before consideration of the impact of such goodwill impairment charge, operating profit improved 22.1% to $102.9 million as compared to $84.3 million in 2005.

 

•                  Adjusted EBITDA increased 16.5% to $137.7 million in 2006 from $118.3 million in 2005.

 

•                  The Company’s reported loss from continuing operations was $5.35 per share on a fully-diluted basis, including the after-tax impact of the non-cash goodwill impairment charge and costs and charges related to the Company’s August 2006 refinancing of its credit agreement of $5.97, as compared to income from continuing operations of $1.0 million, or $0.05 per share on a fully-diluted basis in 2005.

 

1


 

“We achieved solid year-over-year growth in sales in three of the five segments of our business and an even greater improvement in operating earnings performance as our profit improvement initiatives continued and we benefited from economic expansion in key market segments,” said Grant Beard, TriMas’ President and Chief Executive Officer. “Unfortunately, the improvement in our reported results on a GAAP basis is masked by the magnitude of the goodwill impairment charge.”

 

“Our businesses within Packaging Systems, Energy Products and Industrial Specialties enjoyed particularly strong year-over-year growth in sales and earnings, and from a total company perspective, our operating profitability continued to improve due to sourcing and other cost reduction initiatives implemented in the second half of 2005, as well as improved product mix,” Beard commented.

 

“While the economic outlook for the majority of our companies remains positive, we continue to watch end market demand within our Recreational Accessories and RV & Trailer Products businesses closely,” Beard said. “Sales within Recreational Accessories and RV & Trailer Products declined compared to the year ago period as a result of continued soft end market demand.”.

 

“Our focus within TriMas will be to accelerate organic growth initiatives and to continue to drive earnings improvement across each of the businesses within our portfolio in order to improve cash flow and enable further debt reduction,” Beard said.

 

Full Year Results – Additional Data

 

Continuing Operations

 

•                  Net sales improved 2.0 % in 2006 to $1,020.5 million from $1,000.9 million in 2005 as we experienced sales increases of 7.5%, 19.8%, and 10.5% within our Packaging Systems, Energy Products and Industrial Specialties operating segments, respectively. Sales within our Recreational Accessories and RV & Trailer Products operating segments declined 6.4% and 8.8%, respectively, between years.

 

•                  The Company reported an operating loss of $13.6 million in 2006 which included a $116.5 million non-cash goodwill impairment charge, as compared to an operating profit of $84.3 million in 2005. Excluding the impact of the non-cash goodwill impairment charge related to our RV & Trailer Products and Recreational Accessories segments, operating profit improved $18.6 million, or 22.1% to $102.9 million as a result of higher sales, improved product sales mix and lower operating costs due to sourcing and other cost reduction initiatives implemented in the second half of 2005. In 2005, operating profit also included an impairment loss of approximately $3.0 million associated with the shutdown of operating facilities in Albion, Indiana and Sheffield, PA within our RV & Trailer Products and Recreational Accessories business segments, respectively.

 

•                  The Company’s reported loss from continuing operations in 2006 was $108.2 million, or $5.35 per share on a fully-diluted basis, which included the after-tax impacts of the non-cash goodwill impairment charge ($115.3 million or $5.70 per share) and costs and charges associated with the Company’s August 2006 refinancing of its credit agreement ($5.4 million or $0.27 per share), as

 

2


 

compared to income from continuing operations of $1.0 million, or $0.05 per share, in 2005. In 2005, income from continuing operations also included $2.3 million of currency exchange losses which were not considered in operating profit and that did not recur in 2006.

 

Discontinued Operations

 

•                  Sales from discontinued operations in 2006 were $93.7 million, a decrease of $14.4 million from $108.1 million in the same period a year ago, due to lower market demand and as a result of major industrial customers adjusting inventory levels. The loss from discontinued operations, net of tax benefits recorded was $20.7 million and $46.5 million in 2006 and 2005, respectively. Included in these results are non-cash impairment charges, net of related tax effects of $9.7 million and $41.6 million for the years ended 2006 and 2005, respectively, which were recorded to reduce the carrying value of net assets used in the industrial fastening business to their estimated fair value.

 

•                  In December 2006, the Company sold its Wood Dale, Illinois and Lakewood, Ohio businesses, and in February 2007 completed the sale of remaining assets and liabilities of its discontinued industrial fastening business located in Frankfort, Indiana.

 

Fourth Quarter Results

 

Continuing Operations

 

•                  Overall, the Company’s 2006 fourth quarter net sales decreased slightly to $223.3 million, from $225.3 million for the quarter ended December 31, 2005. However, within our Packaging Systems, Energy Products and Industrial Specialties segments sales increased 3.4%, 11.3% and 15.7%, respectively. Sales in our RV & Trailer Products and Recreational Accessories segments declined 16.3% and 10.4%, respectively, in fourth quarter 2006 compared to the same period a year ago.

 

•                  In fourth quarter 2006, the Company reported an operating loss of $99.0 million which included a $116.5 million non-cash goodwill impairment charge related to our RV & Trailer Products and Recreational Accessories segments, as compared to an operating profit of $9.0 million in fourth quarter 2005. Before consideration of the impact of the $116.5 million goodwill impairment charge, operating profit improved $8.5 million, or 94.4%, to $17.5 million as a result of improved product sales mix and lower operating costs due to sourcing and other cost reduction initiatives implemented in the second half of 2005. In the fourth quarter of 2006, operating profit also included an asset impairment charge of $0.5 million related to the planned shutdown of a plating facility which is part of our RV & Trailer Products segment. Operating profit reported in the fourth quarter 2005 included an asset impairment charge of $3.0 million associated with the shutdown of an assembly / distribution center and a small accessory manufacturing location in our Recreational Accessories segment and a small assembly facility in our RV & Trailer Products segment.

 

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•                  Adjusted EBITDA increased $5.9 million, or 29.5%, to $25.7 million in fourth quarter 2006 from $19.8 million in fourth quarter 2005.

 

•                  The Company’s loss from continuing operations, as reported in fourth quarter 2006, was $117.4 million, or $5.65 per share on a fully-diluted basis, which included the after-tax impact of the goodwill impairment charge ($115.3 million or $5.55 per share), as compared to a loss from continuing operations of $9.6 million, or $0.48 per share, in the fourth quarter 2005.

 

Discontinued Operations

 

•                  Sales from discontinued operations declined $5.1 million, or approximately 20.3%, from $25.4 million in fourth quarter 2005 to $20.3 million in fourth quarter 2006. The loss from discontinued operations, net of tax benefits recorded, was $4.5 million and $42.6 million in the fourth quarter of 2006 and 2005, respectively. Included in the 2005 amount was a net of tax impairment charge of $41.6 million, which reduced the carrying value of net assets used in discontinued operations to their estimated fair value.

 

Fourth Quarter Financial Summary

 

 

 

For the Quarter Ended
December 31,

 

(unaudited – in thousands, except per share amounts)

 

2006

 

2005

 

Sales

 

$

223,270

 

$

225,270

 

Operating profit (loss)

 

$

(98,980

)

$

8,980

 

Loss from continuing operations

 

$

(117,400

)

$

(9,620

)

Loss from discontinued operations, net of tax benefit

 

(4,490

)

(42,630

)

Cumulative effect of change in accounting principle, net of income tax benefit

 

—

 

(420

)

Net loss

 

$

(121,890

)

$

(52,670

)

 

 

 

 

 

 

Earnings (loss) per share – basic:

 

 

 

 

 

– Continuing operations

 

$

(5.65

)

$

(0.48

)

– Discontinued operations

 

(0.22

)

(2.14

)

– Cumulative effect of change in accounting principle

 

—

 

(0.02

)

– Net loss

 

$

(5.87

)

$

(2.64

)

 

 

 

 

 

 

Earnings (loss) per share – diluted:

 

 

 

 

 

– Continuing operations

 

$

(5.65

)

$

(0.48

)

– Discontinued operations

 

(0.22

)

(2.14

)

– Cumulative effect of change in accounting principle

 

—

 

(0.02

)

– Net loss

 

$

(5.87

)

$

(2.64

)

 

 

 

 

 

 

Other Data – Continuing Operations:

 

 

 

 

 

– Goodwill Impairment

 

$

116,500

 

$

—

 

– Impairment of assets

 

$

510

 

$

2,960

 

– Depreciation and amortization

 

$

8,640

 

$

8,960

 

– Interest expense

 

$

19,740

 

$

19,420

 

– Other expense, net

 

$

1,030

 

$

640

 

– Income tax benefit

 

$

(2,360

)

$

(1,460

)

 

4


 

Segment Results – Continuing Operations

 

Packaging Systems

 

Net sales increased $1.5 million, or 3.4%, to $45.8 million in fourth quarter 2006 from $44.3 million in the year ago period. Operating profit declined approximately 3.2% to $5.8 million during fourth quarter 2006, from $6.0 million in fourth quarter 2005, due principally to a less favorable sales mix.

 

Energy Products

 

Net sales increased $4.0 million, or 11.3%, to $39.8 million in the fourth quarter 2006 compared to $35.8 million in the year ago period, as this segment benefited from continued favorable market conditions for oil and gas producers in the United States and Canada, market share gains due to expanded parts offerings and continued high turnaround activity at petrochemical refineries. Operating profit improved $1.6 million, or 41.3%, to $5.5 million in the fourth quarter 2006, from $3.9 million in the year ago period.

 

Industrial Specialties

 

Net sales increased $6.2 million, or 15.7%, to $45.9 million in the quarter ended December 31, 2006, from $39.7 million in the year ago period as four of this segment’s five businesses continued to experience strong demand driven by new products, market share gains and economic expansion. Operating profit in fourth quarter 2006 increased 48.5% to $10.7 million, from $7.2 million in the year ago period.

 

RV & Trailer Products

 

Net sales decreased $7.9 million in the fourth quarter 2006 to $40.0 million, from $47.9 million in the year ago period. This segment experienced lower sales across all market channels due to soft market demand. The operating loss reported in fourth quarter 2006 was $97.2 million, which included a non-cash goodwill impairment charge of $97.5 million, as compared to an operating profit of $4.9 million in fourth quarter 2005.

 

Recreational Accessories

 

Net sales decreased $6.0 million, or 10.4%, to $51.7 million in the fourth quarter 2006, compared to $57.7 million in the year ago period as a result of continued soft consumer demand for towing products and accessories due to record high gasoline prices and a continued uncertain interest rate environment. The operating loss in fourth quarter 2006 was $19.2 million, which included a non-cash goodwill impairment charge of $19.0 million, as compared to an operating loss of $6.7 million in fourth quarter 2005. Before consideration of the goodwill impairment charge, the operating loss in fourth quarter 2006 was $0.2 million. The operating loss reported in the fourth quarter 2005 also included an asset impairment charge of $2.7 million associated with the shutdown of an assembly / distribution center in Sheffield, PA, which was consolidated into our South Bend, IN distribution activities.

 

5


 

Financial Position

 

TriMas ended the year with total assets of $1,286.1 million, debt of $734.5 million and $19.6 million outstanding under its receivables securitization facility and had $3.6 million in cash and approximately $96 million in available liquidity under its credit facilities. Net cash provided by operating activities for the years ended December 31, 2006 and 2005 was $15.9 million and $29.9 million, respectively. In 2006, net cash provided by operating activities was reduced $17.7 million due to decreased use of our receivables securitization facility, which is included in cash flows from operating activities. In 2005, net cash provided by operating activities was reduced $10.7 million as a result of decreased use of our receivables securitization facility.

 

About TriMas

 

Headquartered in Bloomfield Hills, Mich., TriMas is a diversified growth company of high-end, specialty niche businesses manufacturing a variety of products for commercial, industrial and consumer markets worldwide. TriMas is organized into five strategic operating segments:  Packaging Systems, Energy Products, Industrial Specialties, RV & Trailer Products and Recreational Accessories. TriMas has nearly 5,000 employees at 80 different facilities in 10 countries. For more information, visit www.trimascorp.com.

 

6


 

Conference Call

 

TriMas will broadcast its fourth quarter earnings conference call on Thursday, March 22, 2007 at 10:00 a.m. EDT. President and Chief Executive Officer Grant Beard and Chief Financial Officer E.R. “Skip” Autry will discuss the Company’s recent financial performance and respond to questions from the investment community. The visual presentation that will accompany the call will be available on the Company’s website at www.trimascorp.com.

 

To participate by phone, please dial: (866) 256-9295. Callers should ask to be connected to the TriMas fourth quarter conference call (reservation number 1061437). If you are unable to participate during the live teleconference, a replay of the conference call will be available beginning March 22nd at 1:30 p.m. EDT through March 29th at 11:59 p.m. EDT. To access the replay, please dial: (866) 837-8032 and use reservation number 1061437.

 

Cautionary Notice Regarding Forward-Looking Statements

 

This release 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 results along with TriMas’ outlook concerning future results. When used in this release, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including without limitation, management’s examination of historical operating trends and data, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for these views. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved. These forward-looking statements are subject to numerous assumptions, risks and uncertainties and accordingly, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution readers not to place undue reliance on the statements, which speak to conditions only as of the date of this release. The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Risks and uncertainties that could cause actual results to vary materially from those anticipated in the forward-looking statements included in this release include general economic conditions in the markets in which we operate and industry-based factors such as: technological developments that could competitively disadvantage us, increases in our raw material, energy, and

 

7


 

healthcare costs, our dependence on key individuals and relationships, exposure to product liability, recall and warranty claims, compliance with environmental and other regulations, and competition within our industries. In addition, factors more specific to us could cause actual results to vary materially from those anticipated in the forward-looking statements included in this release such as our substantial leverage, limitations imposed by our debt instruments, our ability to successfully pursue our stated growth strategies and opportunities, as well as our ability to identify attractive and other strategic acquisition opportunities and to successfully integrate acquired businesses and complete actions we have identified as providing cost-saving opportunities.

 

8


 

TriMas Corporation
Consolidated Balance Sheet
(dollars in thousands)

 

 

 

December 31,

 

 

 

2006

 

2005

 

Assets

 

 

 

 

 

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

 

46,730

 

Total current assets

 

311,600

 

316,040

 

Property and equipment, net

 

165,200

 

164,250

 

Goodwill

 

529,730

 

644,780

 

Other intangibles, net

 

240,120

 

255,220

 

Other assets

 

39,410

 

48,220

 

Total assets

 

$

1,286,060

 

$

1,428,510

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current maturities, long-term debt

 

$

9,700

 

$

15,920

 

Accounts payable

 

100,070

 

111,250

 

Accrued liabilities

 

71,350

 

62,800

 

Due to Metaldyne

 

620

 

4,850

 

Liabilities of discontinued operations

 

23,530

 

38,410

 

Total current liabilities

 

205,270

 

233,230

 

Long-term debt

 

724,790

 

711,760

 

Deferred income taxes

 

89,940

 

95,980

 

Other long-term liabilities

 

29,800

 

34,760

 

Due to Metaldyne

 

3,480

 

3,480

 

Total liabilities

 

1,053,280

 

1,079,210

 

Preferred stock $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None

 

—

 

—

 

Common stock, $0.01 par: Authorized 400,000,000 shares; Issued and outstanding: 20,759,500 and 20,010,000 shares at December 31, 2006 and 2005, respectively

 

210

 

200

 

Paid-in capital

 

399,070

 

396,980

 

Accumulated deficit

 

(215,220

)

(86,310

)

Accumulated other comprehensive income

 

48,720

 

38,430

 

Total shareholders' equity

 

232,780

 

349,300

 

Total liabilities and shareholders' equity

 

$

1,286,060

 

$

1,428,510

 

 

9


 

TriMas Corporation
Statement of Operations

(dollars in thousands, except per share amounts)

 

 

 

Year ended December 31,

 

 

 

2006

 

2005

 

2004

 

Net sales

 

$

1,020,530

 

$

1,000,860

 

$

931,400

 

Cost of sales

 

(747,010

)

(753,870

)

(674,870

)

Gross profit

 

273,520

 

246,990

 

256,530

 

Selling, general and administrative expenses

 

(170,170

)

(159,020

)

(164,280

)

Gain (loss) on dispositions of property and equipment

 

40

 

(690

)

(1,350

)

Impairment of assets

 

(510

)

(2,960

)

(2,380

)

Impairment of goodwill

 

(116,500

)

—

 

—

 

Operating profit (loss)

 

(13,620

)

84,320

 

88,520

 

Other expense, net:

 

 

 

 

 

 

 

Interest expense

 

(79,060

)

(75,210

)

(67,650

)

Debt extinguishment costs

 

(8,610

)

—

 

—

 

Other expense, net

 

(4,150

)

(6,090

)

(1,100

)

Other expense, net

 

(91,820

)

(81,300

)

(68,750

)

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax expense

 

(105,440

)

3,020

 

19,770

 

Income tax expense

 

(2,740

)

(2,010

)

(5,860

)

Income (loss) from continuing operations

 

(108,180

)

1,010

 

13,910

 

Loss from discontinued operations, net of income tax benefit

 

(20,730

)

(46,470

)

(16,100

)

Loss before cumulative effect of change in accounting principle

 

(128,910

)

(45,460

)

(2,190

)

Cumulative effect of change in accounting principle

 

—

 

(420

)

—

 

Net loss

 

$

(128,910

)

$

(45,880

)

$

(2,190

)

 

 

 

 

 

 

 

 

Earnings (loss) per share – basic:

 

 

 

 

 

 

 

Continuing operations

 

$

(5.35

)

$

0.05

 

$

0.70

 

Discontinued operations, net of income tax benefit

 

(1.02

)

(2.32

)

(0.81

)

Cumulative effect of change in accounting principle

 

—

 

(0.02

)

—

 

 

 

 

 

 

 

 

 

Net loss per share

 

$

(6.37

)

$

(2.29

)

$

(0.11

)

 

 

 

 

 

 

 

 

Weighted average common shares – basic

 

20,229,716

 

20,010,000

 

20,010,000

 

 

 

 

 

 

 

 

 

Earnings (loss) per share – diluted:

 

 

 

 

 

 

 

Continuing operations

 

$

(5.35

)

$

0.05

 

$

0.67

 

Discontinued operations, net of income tax benefit

 

(1.02

)

(2.24

)

(0.78

)

Cumulative effect of change in accounting principle

 

—

 

(0.02

)

—

 

 

 

 

 

 

 

 

 

Net loss per share

 

$

(6.37

)

$

(2.21

)

$

(0.11

)

 

 

 

 

 

 

 

 

Weighted average common shares – diluted

 

20,229,716

 

20,760,000

 

20,760,000

 

 

10


 

TriMas Corporation
Statement of Cash Flows

(dollars in thousands)

 

 

 

Year ended December 31,

 

 

 

2006

 

2005

 

2004

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net loss

 

$

(128,910

)

$

(45,880

)

$

(2,190

)

Adjustments to reconcile net loss to net cash provided by operating activities, net of acquisition impact:

 

 

 

 

 

 

 

Impairment of goodwill

 

116,500

 

—

 

—

 

Loss on dispositions of property and equipment

 

3,530

 

300

 

790

 

Impairment of assets

 

15,760

 

73,220

 

10,650

 

Depreciation and amortization

 

38,740

 

40,750

 

44,510

 

Deferred income taxes

 

(11,280

)

(37,580

)

(19,060

)

Amortization of debt issuance costs

 

4,330

 

5,050

 

4,730

 

Non-cash debt extinguishment costs

 

7,920

 

—

 

—

 

Non-cash compensation expense

 

1,350

 

310

 

560

 

Net proceeds from (reductions in) sale of receivables and receivables securitization

 

(14,120

)

(9,580

)

47,960

 

Payment to Metaldyne to fund contractual obligations

 

(4,340

)

(2,900

)

(4,610

)

(Increase) decrease in receivables

 

9,760

 

(1,490

)

(21,110

)

(Increase) decrease in inventories

 

(11,310

)

8,900

 

(54,130

)

Increase in prepaid expenses and other assets

 

(1,390

)

(230

)

(680

)

Increase (decrease) in accounts payable and accrued liabilities

 

(10,920

)

(3,000

)

31,760

 

Other, net

 

260

 

1,600

 

3,440

 

Cumulative effect of change in accounting principle

 

—

 

420

 

—

 

Net cash provided by operating activities

 

15,880

 

29,890

 

42,620

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Capital expenditures

 

(29,840

)

(21,670

)

(42,990

)

Net proceeds from disposition of businesses and other assets

 

7,680

 

5,030

 

1,650

 

Acquisition of businesses, net of cash acquired

 

—

 

—

 

(5,500

)

Net cash used for investing activities

 

(22,160

)

(16,640

)

(46,840

)

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Repayments of borrowings on credit facilities

 

(257,410

)

(2,890

)

(2,890

)

Proceeds from borrowings on term loan facilities

 

260,000

 

24,250

 

—

 

Proceeds from borrowings on revolving credit facilities

 

688,870

 

884,450

 

839,320

 

Repayments of borrowings on revolving credit facilities

 

(683,150

)

(916,300

)

(826,500

)

Payments on notes payable

 

—

 

—

 

(8,030

)

Debt issuance costs

 

(2,160

)

(2,120

)

(1,370

)

Net cash provided by (used for) financing activities

 

6,150

 

(12,610

)

530

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents:

 

 

 

 

 

 

 

Increase (decrease) for the year

 

(130

)

640

 

(3,690

)

At beginning of year

 

3,730

 

3,090

 

6,780

 

At end of year

 

$

3,600

 

$

3,730

 

$

3,090

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

Cash paid for interest

 

$

69,880

 

$

70,550

 

$

61,650

 

Cash paid for taxes

 

$

14,050

 

$

12,630

 

$

10,220

 

 

11


 

TriMas Corporation

Reconciliation of Non-GAAP Measure Adjusted EBITDA (1)

 

 

 

For the Three Months

 

For the Year

 

 

 

Ended December 31,

 

Ended December 31,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

(unaudited)

 

 

 

 

 

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

 

19,420

 

79,060

 

75,210

 

Debt extinguishment costs

 

—

 

—

 

8,610

 

—

 

Change in asset retirement obligation of discontinued operations

 

(550

)

 

 

(550

)

 

 

Impairment of assets

 

(90

)

73,220

 

15,760

 

73,220

 

Impairment of goodwill

 

116,500

 

—

 

116,500

 

—

 

Depreciation and amortization

 

8,910

 

9,350

 

38,740

 

40,750

 

Adjusted EBITDA, total company

 

$

21,810

 

$

18,140

 

$

122,690

 

$

113,140

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA, total company

 

$

21,810

 

$

18,140

 

$

122,690

 

$

113,140

 

Negative Adjusted EBITDA, discontinued operations

 

(3,890

)

(1,700

)

(15,050

)

(5,140

)

Adjusted EBITDA, continued operations

 

$

25,700

 

$

19,840

 

$

137,740

 

$

118,280

 

 

(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 (loss) before cumulative effect of accounting change, interest, taxes, depreciation, amortization, non-cash asset and goodwill impairment charges and write-offs, and non-cash losses on sale-leaseback of property and equipment.

 

TriMas Corporation

Reconciliation of Non-GAAP Measure Operating profit (loss) before impairment of goodwill

 

 

 

For the Three Months

 

For the Year

 

 

 

Ended December 31,

 

Ended December 31,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit (loss)

 

$

(98,980

)

$

8,980

 

$

(13,620

)

$

84,320

 

Impairment of goodwill

 

(116,500

)

—

 

(116,500

)

—

 

Operating profit (loss) before impairment of goodwill

 

$

17,520

 

$

8,980

 

$

102,880

 

$

84,320

 

 

12