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OMB APPROVAL |
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OMB Number:
3235-0060 |
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UNITED
STATES Washington, D.C. 20549 |
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FORM 8-K |
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 10, 2009
TRIMAS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware |
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001-10716 |
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38-2687639 |
(State or other jurisdiction |
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(Commission |
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(IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
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39400 Woodward Avenue, Suite 130, Bloomfield Hills, Michigan |
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48304 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code (248) 631-5400
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
TriMas Corporation (the Corporation) issued a press release and held a teleconference on March 10, 2009, reporting its financial results for the fourth quarter and fiscal year ending December 31, 2008. A copy of the press release and teleconference visual presentation are attached hereto as exhibits and are incorporated herein by reference. The press release and teleconference visual presentation are also available on the Corporations website at www.trimascorp.com.
The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Corporation under the Securities Act of 1933 or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are furnished herewith:
Exhibit No. |
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Description |
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99.1 |
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Press Release |
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99.2 |
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The Corporations visual presentation titled Fourth Quarter 2008 Earnings Presentation |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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TRIMAS CORPORATION |
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Date: |
March 10, 2009 |
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By: |
/s/ David M. Wathen |
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Name: |
David M. Wathen |
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Title: |
Chief Executive Officer |
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3
Exhibit 99.1
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For more information, contact: |
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Sherry Lauderback |
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VP, Investor Relations & Communications |
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(248) 631-5506 |
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sherrylauderback@trimascorp.com |
FOR IMMEDIATE RELEASE
TRIMAS CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
BLOOMFIELD HILLS, Michigan, March 10, 2009 TriMas Corporation (NYSE: TRS) today announced financial results for the fourth quarter and full year ended December 31, 2008. For the year, the Company reported sales from continuing operations of $1,021.3 million, a 1.8% increase over 2007, and improved earnings performance, excluding the after-tax impact of $155.0 million of non-cash goodwill and indefinite-lived intangible asset impairment charges, and severance and business restructuring costs of $3.1 million, identified as Special Items.(1)
FULL YEAR 2008 SUMMARY (from continuing operations)
· Full year 2008 sales increased 1.8% to $1,021.3 million. Sales in the Packaging Systems, Energy Products and Industrial Specialties segments increased 6.2%, 30.8% and 8.4%, respectively, as a result of new product launches, geographic expansion and increased market demand. Sales in the RV & Trailer Products and Recreational Accessories segments declined 12.2% and 12.1%, respectively, due to lower demand as a result of reduced consumer discretionary spending and current economic uncertainty.
· The Company reported a loss of $128.6 million in 2008, or $3.85 per share, compared to a loss of $161.2 million, or $5.66 per share in 2007. Excluding the impact of Special Items in both periods, 2008 income would have improved 45.3% to $29.9 million, or $0.89 per share, as compared to $20.5 million, or $0.72 per share in 2007.
· Adjusted EBITDA(2) for 2008 was $139.0 million, compared to $115.1 million in 2007. Excluding the impact of Special Items in both periods, 2008 adjusted EBITDA would have been $144.0 million, an increase of 3.7%, as compared to $138.8 million in 2007.
· The Company recorded non-cash goodwill and indefinite-lived intangible asset impairment charges of $172.2 million ($155.0 million after-tax) in the fourth quarter of 2008 as a result of the impact on the Companys businesses of declining end market demand and the significant decline in financial markets given global recessionary uncertainties. These charges do not affect the Companys cash flow, liquidity or debt covenant ratios.
· Free cash flow(2) (excluding Special Items) for 2008 was $41.3 million, compared to $19.0 million in 2007.
· As of December 31, 2008, the Company had cash and aggregate availability under its revolving credit and receivables securitization facility of $131.8 million.
· The Company has accelerated its previously announced Profit Improvement Plan and increased its estimate for 2009 total cost savings from $15 million to $28 million. The Company continues to pursue cost savings in addition to the $28 million.
(1) Appendix I details certain one-time costs and expenses, non-cash impairments and other charges, collectively described as Special Items, that are included in the determination of net income (loss) under GAAP and are not added back to net income (loss) in determining adjusted EBITDA, but that management would consider important in evaluating the quality of the Companys adjusted EBITDA and operating results under GAAP.
(2) See Appendix II for reconciliation of the non-GAAP financial measures adjusted EBITDA and free cash flow to the Companys reported results of operations prepared in accordance with GAAP. Additionally, see Appendix I for additional information regarding Special Items impacting reported GAAP financial measures.
1
During 2008, the Company increased sales, improved operating performance, reduced debt and lowered its fixed cost structure, said David Wathen, who joined TriMas as President and Chief Executive Officer in January of this year. Despite these results, TriMas, like many of our peers, experienced significant declines in customer demand across our business segments in the fourth quarter as a result of the global recession. The first quarter of 2009 continues to be difficult for our customers and we anticipate that this trend will continue.
As we operate in 2009, Wathen continued, we expect that our end markets will be down approximately 10% to 20%, collectively. While the current environment is challenging, we are focused on what we can control our strategy, execution and costs. Our first order of business is to secure our position as the best cost producer, as we aggressively cut fixed costs and improve productivity and flexibility throughout our businesses. Our operating premise is to increase our profitability metrics despite lower sales.
We will employ disciplined capital allocation to support growing end markets and geographies. We continue to drive working capital out of the businesses to ensure that we have adequate liquidity to support our business initiatives and to further enhance our balance sheet. Our priorities remain to aggressively position the company to best mitigate the end market declines we are facing and proactively address our leverage. Wathen concluded.
Fourth Quarter Results
Continuing Operations
· The Companys 2008 fourth quarter net sales decreased 4.0% to $213.1 million, from $222.1 million for the quarter ended December 31, 2007. Sales in the Energy Products and Industrial Specialties segments increased 39.0% and 5.5%, respectively, as a result of new product launches, geographic expansion and increased market demand. Sales in the Packaging Systems segment were down 7.8%, primarily due to the unfavorable impact of currency exchange, while sales in the RV & Trailer Products and Recreational Accessories segments declined 30.5% and 21.3%, respectively, due to lower demand as a result of reduced consumer discretionary spending and the current economic recession.
· The Company reported an operating loss of $162.1 million for the fourth quarter of 2008, compared to an operating loss of $170.5 million in the fourth quarter of 2007, primarily as a result of the non-cash goodwill and indefinite-lived asset impairment charges in both years. Excluding the impact of Special Items, fourth quarter operating profit would have been $12.7 million, as compared to $13.6 million in 2007. The decline between years is due primarily to the declines in the RV & Trailer Products and Recreational Accessories segments, substantially offset by improved operating performance within the Energy Products segment and lower spending within the corporate office, largely as a result of the Companys restructuring efforts in June 2008.
· Adjusted EBITDA for the fourth quarter of 2008 was $25.7 million, compared to $11.3 million in the fourth quarter of 2007. Excluding the impact of Special Items, adjusted EBITDA would have been $27.7 million in the fourth quarter of 2008, as compared to $20.7 million in the fourth quarter of 2007, primarily due to the improved operating performance within the Energy Products segment, lower spending within the corporate office and a gain on extinguishment of debt, which were partially offset by the declines in the RV & Trailer Products and Recreational Accessories segments.
· The Company reported a fourth quarter 2008 loss of $154.0 million, or $4.60 per share, compared to a loss of $168.8 million, or $5.05 per share, in the fourth quarter of 2007. Excluding Special Items, fourth quarter income would have improved to $2.6 million, or $0.08 per share, in the fourth quarter of 2008, as compared to a $0.5 million loss, or a loss of $0.01 per share, in the fourth quarter of 2007.
Discontinued Operations
During the fourth quarter of 2008, the Company signed a definitive agreement to sell certain assets of its subsidiary, Compac Corporation, to LAMTEC Corporation. Compac, a manufacturer of flame-retardant facings, jacketings, insulation tapes and other specialty tape products, was part of the Companys Packaging Systems business segment. The transaction subsequently closed on February 9, 2009, at which time the Company received approximately $21 million in cash proceeds.
2
Profit Improvement Plan
On November 10, 2008, the Company announced its Profit Improvement Plan, with then projected savings of approximately $15 million in 2009. The Company has accelerated this program and now expects to realize approximately $28 million in total cost savings in 2009, resulting from additional headcount reductions, more rapid consolidation of facilities and business activities and other cost savings actions. In addition to the approximately $3 million in non-recurring business restructuring charges in the fourth quarter of 2008, the Company expects to record additional cash charges of approximately $8 to $9 million as actions are implemented throughout 2009 to achieve the associated $28 million in 2009 cost savings.
On March 5, 2009, the Company also announced the closure of its Mosinee, Wisconsin manufacturing facility by the end of the third quarter of 2009. The plans to close this plant, which manufactures trailer winches, jacks and couplers and is part of the RV & Trailer Products business segment, are included in the accelerated Profit Improvement Plan described above. The Mosinee plant operations will be absorbed into lower-cost manufacturing facilities or included in the Companys expanded strategic sourcing initiatives. TriMas expects to record a non-recurring cash charge of approximately $4 to $5 million related to severance and facility closure costs, which is included in the $8 to $9 million of charges discussed above.
We continue to reduce fixed costs, while driving productivity and flexibility across our businesses, commented Mark Zeffiro, TriMas Chief Financial Officer. It is imperative that in this time of worldwide economic slowdown, we match our costs to the reality of our current market. The changes we have made and are making in our organization and business processes will better enable TriMas to navigate the economic slowdown and provide operational efficiencies that will help us to drive our financial performance as the marketplace stabilizes and business conditions improve. We have taken immediate actions to maximize cash flow by continuing to reduce operating expenses, working capital and capital expenditures. These steps, in addition to our outstanding brands, increasingly global footprint and diverse revenue streams, will provide a solid foundation for the future.
Financial Position
TriMas ended the year with cash of $3.9 million and $127.9 million of aggregate availability under its revolving credit and receivables securitization facilities. The Company reduced total indebtedness, including amounts outstanding under its receivables securitization facility, by $27.6 million from December 31, 2007 to December 31, 2008. TriMas ended the quarter with total debt of $609.9 million and funding under its receivables securitization facility of $20.0 million for a total of $629.9 million. During the fourth quarter of 2008, the Company acquired $8.0 million face value of the Companys senior subordinated notes in open market transactions at various rates for approximately $4.1 million.
The Company does not have any significant debt maturities under its credit agreement or subordinated notes until 2012. In addition, the Company completed the annual renewal of its receivables securitization facility on February 13, 2009. As of December 31, 2008, the Company was in compliance with all debt covenants.
Business Segment Results Continuing Operations (Excluding the impact of Special Items(3))
Each of the Companys business segments reported Special Items (primarily non-cash impairment charges relating to goodwill and indefinite-lived assets) that the Company believes should be considered in evaluating operating profit. Reported business segment operating profit, including all Special Items, is presented within the segment level sales and operating profit table that appears later in this release and the reader is urged to review this information. As a supplement, the Company discusses below the business segments excluding the impact of Special Items to facilitate the comparison of the Companys operations across periods on a basis consistent with managements analysis.
Packaging Systems - Sales for the fourth quarter of 2008 were down 7.8%, due primarily to the unfavorable impact of currency exchange, while sales for the full year were up 6.2% due to the increased demand for new specialty dispensing and other new products, as well as the favorable effects of currency exchange. Operating
3
profit(3) for the quarter decreased in line with the decline in sales. Operating profit for the year improved due to increased sales volumes, partially offset by increases in raw material costs and expenses incurred to support sales growth initiatives. The Company continues to diversify its product offering by developing specialty dispensing product applications for growing end markets, including pharmaceutical, personal care and food/beverage markets, and expanding geographically to generate long-term growth.
Energy Products - Sales increased 39.0% for the fourth quarter and 30.8% for the year, compared to the year ago periods. The sales increases in both periods are due to the Companys initiatives to gain additional market share and expand the product offering at well-sites and within the refinery and petrochemical industries, during a time of strong market demand and high utilization rates at refineries and petrochemical facilities. Operating profit for the quarter and year increased in line with higher sales volumes and as a result of prior investments to support the segments growth initiatives, offset slightly by increases in material and sourced component costs. The Company plans to continue to launch new products to complement its engine business, while expanding its gasket business internationally.
Industrial Specialties - Sales for the fourth quarter and full year increased 5.5% and 8.4%, respectively, due primarily to strong growth in the aerospace fastener business resulting from market share gains and the introduction of new products and applications. Higher sales in the defense business as a result of cartridge case inventory build-up in advance of the militarys closure of a munitions facility also contributed to the segments performance. While industrial cylinder sales increased during the first three quarters of 2008, full year 2008 sales remained relatively flat in comparison to 2007. Sales of specialty cutting tools remained essentially flat year over year, while sales within the specialty fittings business declined. Operating profit for the quarter and year increased primarily due to higher sales levels between years in the aerospace fastener and defense businesses, which were partially offset by higher commodity prices and lower industrial demand, particularly in our specialty fittings business. The Company continues to drive growth in this segment by developing specialty products for growing end markets such as medical and aerospace, while continuing to expand international sales efforts.
RV & Trailer Products - Sales for the fourth quarter and full year decreased 30.5% and 12.2%, respectively, as growth in the Australian business was more than offset by the continued weak demand in most end markets in the United States. Operating profit decreased due to reduced sales volumes, lower absorption of fixed costs as the Company reduced its production to manage inventory levels and a less favorable product sales mix. The Companys focus in this segment is to aggressively reduce fixed costs, increase productivity and leverage strong brand positions for increased market share.
Recreational Accessories - Sales for the fourth quarter and full year decreased 21.3% and 12.1%, respectively, compared to the year ago periods, as the Company continued to experience weak consumer demand for towing products and accessories. Operating profit for the quarter and year declined as a result of lower sales volumes, lower absorption of fixed costs resulting from reduced manufacturing activity in response to lower demand and a less favorable product sales mix. The Company plans to continue to aggressively reduce fixed costs and increase market share in the United States and Canada.
(3) Operating Profit excludes the impact of Special Items. For a complete schedule of Special Items by segment, see Company and Business Segment Financial Information Continuing Operations.
Conference Call
TriMas Corporation will host its fourth quarter and full year 2008 earnings conference call today, Tuesday, March 10, 2009 at 10:00 a.m. EDT. The call-in number is (866) 291-4322. Participants should request to be connected to the TriMas Corporation fourth quarter conference call (conference ID number 1340021). The presentation that will accompany the call will be available on the Companys website at www.trimascorp.com prior to the call.
The conference call will also be web cast simultaneously on the Companys website at www.trimascorp.com. A replay of the conference call will be available on the TriMas website or by dialing (866) 837-8032 (access code 287405) beginning March 10th at 1:00 p.m. EDT through March 17th at 11:59 p.m. EDT.
4
Cautionary Notice Regarding Forward-looking Statements
Any forward-looking statements contained herein, including those relating to market conditions or the Companys 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 Companys business and industry, the Companys substantial leverage, liabilities imposed by the Companys debt instruments, market demand, competitive factors, the Companys ability to maintain compliance with the listing requirements of the New York Stock Exchange, supply constraints, material and energy costs, technology factors, litigation, government and regulatory actions, the Companys accounting policies, future trends, and other risks which are detailed in the Companys Annual Report on Form 10-K for the fiscal year ending December 31, 2007, and in the Companys 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.
About TriMas
Headquartered in Bloomfield Hills, Michigan, TriMas Corporation (NYSE: TRS) provides engineered and applied products for growing markets worldwide. TriMas is organized into five strategic business segments: Packaging Systems, Energy Products, Industrial Specialties, RV & Trailer Products and Recreational Accessories. TriMas has approximately 4,000 employees at 70 different facilities in 11 countries. For more information, visit www.trimascorp.com.
5
TriMas Corporation
Consolidated Balance Sheet
(dollars in thousands)
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December 31, |
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2008 |
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2007 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
3,910 |
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$ |
4,800 |
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Receivables, net |
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104,760 |
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89,370 |
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Inventories |
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188,950 |
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181,790 |
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Deferred income taxes |
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16,970 |
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18,860 |
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Prepaid expenses and other current assets |
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7,430 |
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7,010 |
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Assets of discontinued operations held for sale |
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26,200 |
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41,450 |
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Total current assets |
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348,220 |
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343,280 |
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Property and equipment, net |
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181,570 |
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186,840 |
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Goodwill |
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202,280 |
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367,420 |
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Other intangibles, net |
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178,880 |
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203,170 |
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Other assets |
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19,270 |
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27,280 |
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Total assets |
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$ |
930,220 |
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$ |
1,127,990 |
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Liabilities and Shareholders Equity |
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Current liabilities: |
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Current maturities, long-term debt |
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$ |
10,360 |
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$ |
8,390 |
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Accounts payable |
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111,810 |
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121,860 |
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Accrued liabilities |
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66,340 |
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71,830 |
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Liabilities of discontinued operations |
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1,340 |
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1,450 |
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Total current liabilities |
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189,850 |
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203,530 |
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Long-term debt |
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599,580 |
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607,600 |
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Deferred income taxes |
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51,650 |
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73,280 |
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Other long-term liabilities |
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34,240 |
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35,090 |
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Total liabilities |
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875,320 |
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919,500 |
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Preferred stock $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None |
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Common stock, $0.01 par: Authorized 400,000,000 shares; Issued and outstanding: 33,620,410 and 33,409,500 shares at December 31, 2008 and 2007, respectively |
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330 |
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330 |
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Paid-in capital |
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527,000 |
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525,960 |
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Accumulated deficit |
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(510,160 |
) |
(373,970 |
) |
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Accumulated other comprehensive income |
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37,730 |
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56,170 |
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Total shareholders equity |
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54,900 |
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208,490 |
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Total liabilities and shareholders equity |
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$ |
930,220 |
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$ |
1,127,990 |
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6
TriMas Corporation
Statement of Operations
(dollars in thousands, except per share amounts)
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Quarter ended |
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December 31, |
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Year ended |
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(unaudited) |
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December 31, |
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2008 |
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2007 |
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2008 |
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2007 |
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Net sales |
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$ |
213,140 |
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$ |
222,070 |
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$ |
1,021,300 |
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$ |
1,003,070 |
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Cost of sales |
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(164,540 |
) |
(164,140 |
) |
(758,120 |
) |
(729,510 |
) |
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Gross profit |
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48,600 |
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57,930 |
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263,180 |
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273,560 |
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Selling, general and administrative expenses |
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(37,760 |
) |
(49,890 |
) |
(166,500 |
) |
(173,810 |
) |
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Advisory services agreement termination fee |
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|
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(10,000 |
) |
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Costs for early termination of operating leases |
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|
|
|
|
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(4,230 |
) |
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Settlement of Canadian benefit plan liability |
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|
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(3,870 |
) |
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|
(3,870 |
) |
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Loss on dispositions of property and equipment |
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(180 |
) |
(40 |
) |
(340 |
) |
(1,720 |
) |
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Impairment of property and equipment |
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(500 |
) |
(3,370 |
) |
(500 |
) |
(3,370 |
) |
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Impairment of goodwill and indefinite-lived intangible assets |
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(172,220 |
) |
(171,210 |
) |
(172,220 |
) |
(171,210 |
) |
||||
Operating loss |
|
(162,060 |
) |
(170,450 |
) |
(76,380 |
) |
(94,650 |
) |
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Other expense, net: |
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|
|
|
|
|
|
|
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Interest expense |
|
(13,580 |
) |
(15,390 |
) |
(55,740 |
) |
(68,310 |
) |
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Gain (loss) on extinguishment of debt |
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3,740 |
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|
|
3,740 |
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(7,440 |
) |
||||
Other, net |
|
720 |
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(430 |
) |
(2,290 |
) |
(3,880 |
) |
||||
Other expense, net |
|
(9,120 |
) |
(15,820 |
) |
(54,290 |
) |
(79,630 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Loss from continuing operations before income tax benefit |
|
(171,180 |
) |
(186,270 |
) |
(130,670 |
) |
(174,280 |
) |
||||
Income tax benefit |
|
17,230 |
|
17,490 |
|
2,080 |
|
13,080 |
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||||
Loss from continuing operations |
|
(153,950 |
) |
(168,780 |
) |
(128,590 |
) |
(161,200 |
) |
||||
Income (loss) from discontinued operations, net of income tax benefit (expense) |
|
(7,880 |
) |
(90 |
) |
(7,600 |
) |
2,770 |
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||||
Net loss |
|
$ |
(161,830 |
) |
$ |
(168,870 |
) |
$ |
(136,190 |
) |
$ |
(158,430 |
) |
|
|
|
|
|
|
|
|
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|
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Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
||||
Continuing operations |
|
$ |
(4.60 |
) |
$ |
(5.05 |
) |
$ |
(3.85 |
) |
$ |
(5.66 |
) |
Discontinued operations, net of income tax benefit (expense) |
|
(0.24 |
) |
|
|
(0.22 |
) |
0.10 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share |
|
$ |
(4.84 |
) |
$ |
(5.05 |
) |
$ |
(4.07 |
) |
$ |
(5.56 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares - basic |
|
33,450,444 |
|
33,409,500 |
|
33,422,572 |
|
28,498,678 |
|
7
TriMas Corporation
Company and Business Segment Financial Information
Continuing Operations
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Quarter ended |
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|
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||||||||
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December 31, |
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Year ended |
|
||||||||
|
|
(unaudited) |
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December 31, |
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||||||||
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
||||
Packaging Systems |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
32,420 |
|
$ |
35,150 |
|
$ |
161,330 |
|
$ |
151,950 |
|
Operating profit (loss) |
|
$ |
(57,730 |
) |
$ |
1,300 |
|
$ |
(31,200 |
) |
$ |
26,880 |
|
Operating profit (loss) as a % of sales |
|
NM |
|
3.7 |
% |
NM |
|
17.7 |
% |
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|
|
|
|
|
|
|
|
|
||||
Special Items to consider in evaluating operating profit: |
|
|
|
|
|
|
|
|
|
||||
- Non-cash goodwill and indefinite-lived asset impairment |
|
$ |
(62,490 |
) |
$ |
|
|
$ |
(62,490 |
) |
$ |
|
|
- Other Special Items |
|
$ |
|
|
$ |
(3,870 |
) |
$ |
(410 |
) |
$ |
(3,870 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, operating profit would have been: |
|
$ |
4,760 |
|
$ |
5,170 |
|
$ |
31,700 |
|
$ |
30,750 |
|
|
|
|
|
|
|
|
|
|
|
||||
Energy Products |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
56,360 |
|
$ |
40,540 |
|
$ |
213,750 |
|
$ |
163,470 |
|
Operating profit |
|
$ |
8,070 |
|
$ |
5,930 |
|
$ |
32,740 |
|
$ |
22,860 |
|
Operating profit as a % of sales |
|
14.3 |
% |
14.6 |
% |
15.3 |
% |
14.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||
Special Item to consider in evaluating operating profit: |
|
|
|
|
|
|
|
|
|
||||
- Other Special Items |
|
$ |
|
|
$ |
|
|
$ |
(320 |
) |
$ |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Item, operating profit would have been: |
|
$ |
8,070 |
|
$ |
5,930 |
|
$ |
33,060 |
|
$ |
22,860 |
|
|
|
|
|
|
|
|
|
|
|
||||
Industrial Specialties |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
52,900 |
|
$ |
50,160 |
|
$ |
221,830 |
|
$ |
204,630 |
|
Operating profit (loss) |
|
$ |
(15,080 |
) |
$ |
9,400 |
|
$ |
19,670 |
|
$ |
41,770 |
|
Operating profit (loss) as a % of sales |
|
NM |
|
18.7 |
% |
8.9 |
% |
20.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||
Special Items to consider in evaluating operating profit: |
|
|
|
|
|
|
|
|
|
||||
- Non-cash goodwill and indefinite-lived asset impairment |
|
$ |
(24,790 |
) |
$ |
|
|
$ |
(24,790 |
) |
$ |
|
|
- Other Special Items |
|
$ |
|
|
$ |
|
|
$ |
(430 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, operating profit would have been: |
|
$ |
9,710 |
|
$ |
9,400 |
|
$ |
44,890 |
|
$ |
41,770 |
|
|
|
|
|
|
|
|
|
|
|
||||
RV & Trailer Products |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
32,240 |
|
$ |
46,370 |
|
$ |
174,610 |
|
$ |
198,790 |
|
Operating loss |
|
$ |
(49,430 |
) |
$ |
(97,970 |
) |
$ |
(43,320 |
) |
$ |
(81,230 |
) |
Operating loss as a % of sales |
|
NM |
|
NM |
|
NM |
|
NM |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Special Items to consider in evaluating operating profit (loss): |
|
|
|
|
|
|
|
|
|
||||
- Non-cash goodwill and indefinite-lived asset impairment |
|
$ |
(47,600 |
) |
$ |
(100,780 |
) |
$ |
(47,600 |
) |
$ |
(100,780 |
) |
- Other Special Items |
|
$ |
(1,080 |
) |
$ |
|
|
$ |
(1,200 |
) |
$ |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, operating profit (loss) would have been: |
|
$ |
(750 |
) |
$ |
2,810 |
|
$ |
5,480 |
|
$ |
19,550 |
|
|
|
|
|
|
|
|
|
|
|
||||
Recreational Accessories |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
39,220 |
|
$ |
49,850 |
|
$ |
249,780 |
|
$ |
284,230 |
|
Operating loss |
|
$ |
(43,930 |
) |
$ |
(81,620 |
) |
$ |
(32,110 |
) |
$ |
(64,200 |
) |
Operating loss as a % of sales |
|
NM |
|
NM |
|
NM |
|
NM |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Special Items to consider in evaluating operating profit (loss): |
|
|
|
|
|
|
|
|
|
||||
- Non-cash goodwill and indefinite-lived asset impairment |
|
$ |
(37,340 |
) |
$ |
(70,430 |
) |
$ |
(37,340 |
) |
$ |
(70,430 |
) |
- Other Special Items |
|
$ |
(820 |
) |
$ |
(8,990 |
) |
$ |
(900 |
) |
$ |
(8,990 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, operating profit (loss) would have been: |
|
$ |
(5,770 |
) |
$ |
(2,200 |
) |
$ |
6,130 |
|
$ |
15,220 |
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate Expenses |
|
$ |
(3,960 |
) |
$ |
(7,490 |
) |
$ |
(22,160 |
) |
$ |
(40,730 |
) |
Special Item to consider in evaluating corporate expenses: |
|
$ |
(610 |
) |
$ |
|
|
$ |
(2,220 |
) |
$ |
(14,230 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, corporate expenses would have been: |
|
$ |
(3,350 |
) |
$ |
(7,490 |
) |
$ |
(19,940 |
) |
$ |
(26,500 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
213,140 |
|
$ |
222,070 |
|
$ |
1,021,300 |
|
$ |
1,003,070 |
|
Operating loss |
|
$ |
(162,060 |
) |
$ |
(170,450 |
) |
$ |
(76,380 |
) |
$ |
(94,650 |
) |
Operating loss as a % of sales |
|
NM |
|
NM |
|
NM |
|
NM |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Total Special Items to consider in evaluating operating loss: |
|
$ |
(174,730 |
) |
$ |
(184,070 |
) |
$ |
(177,700 |
) |
$ |
(198,300 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, operating profit would have been: |
|
$ |
12,670 |
|
$ |
13,620 |
|
$ |
101,320 |
|
$ |
103,650 |
|
|
|
|
|
|
|
|
|
|
|
||||
Other Data: |
|
|
|
|
|
|
|
|
|
||||
- Depreciation and amortization |
|
$ |
10,470 |
|
$ |
10,370 |
|
$ |
41,090 |
|
$ |
39,060 |
|
- Interest expense |
|
$ |
13,580 |
|
$ |
15,390 |
|
$ |
55,740 |
|
$ |
68,310 |
|
- Gain (loss) on extinguishment of debt |
|
$ |
3,740 |
|
$ |
|
|
$ |
3,740 |
|
$ |
(7,440 |
) |
- Other (income) expense, net |
|
$ |
(720 |
) |
$ |
430 |
|
$ |
2,290 |
|
$ |
3,880 |
|
- Income tax benefit |
|
$ |
17,230 |
|
$ |
17,490 |
|
$ |
2,080 |
|
$ |
13,080 |
|
8
Appendix I
TriMas Corporation
Additional Information Regarding Special Items Impacting
Reported GAAP Financial Measures
|
|
Year ended |
|
Year ended |
|
||||||||
|
|
December 31, 2008 |
|
December 31, 2007 |
|
||||||||
(dollars in thousands, except per share amounts) |
|
Income |
|
EPS |
|
Income |
|
EPS |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Loss and EPS from continuing operations, as reported |
|
$ |
(128,590 |
) |
$ |
(3.85 |
) |
$ |
(161,200 |
) |
$ |
(5.66 |
) |
|
|
|
|
|
|
|
|
|
|
||||
After-tax impact of Special Items to consider in evaluating quality of loss and EPS from continuing operations: |
|
|
|
|
|
|
|
|
|
||||
Goodwill and indefinite-lived intangible asset impairment charges |
|
$ |
(155,050 |
) |
$ |
(4.64 |
) |
$ |
(159,930 |
) |
$ |
(5.61 |
) |
Impairment of property and equipment |
|
(300 |
) |
(0.01 |
) |
(2,220 |
) |
(0.08 |
) |
||||
Severance and business restructuring costs |
|
(3,090 |
) |
(0.09 |
) |
|
|
|
|
||||
Advisory services agreement termination fee |
|
|
|
|
|
(6,190 |
) |
(0.22 |
) |
||||
Costs for early termination of operating leases |
|
|
|
|
|
(2,620 |
) |
(0.09 |
) |
||||
Debt extinguishment costs |
|
|
|
|
|
(4,610 |
) |
(0.16 |
) |
||||
Huntsville facility closure costs |
|
|
|
|
|
(3,700 |
) |
(0.13 |
) |
||||
Settlement of Canadian benefit plan liability |
|
|
|
|
|
(2,470 |
) |
(0.09 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Total Special Items |
|
$ |
(158,440 |
) |
$ |
(4.74 |
) |
$ |
(181,740 |
) |
$ |
(6.38 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, Profit and EPS from continuing operations would have been |
|
$ |
29,850 |
|
$ |
0.89 |
|
$ |
20,540 |
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding at December 31, 2008 and 2007 |
|
|
|
33,422,572 |
|
|
|
28,498,678 |
|
|
|
Quarter ended |
|
Quarter ended |
|
||||||||
|
|
December 31, 2008 |
|
December 31, 2007 |
|
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
||||||||
(dollars in thousands, except per share amounts) |
|
Income |
|
EPS |
|
Income |
|
EPS |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Income and EPS from continuing operations, as reported |
|
$ |
(153,950 |
) |
$ |
(4.60 |
) |
$ |
(168,780 |
) |
$ |
(5.05 |
) |
|
|
|
|
|
|
|
|
|
|
||||
After-tax impact of Special Items to consider in evaluating quality of income and EPS from continuing operations: |
|
|
|
|
|
|
|
|
|
||||
Goodwill and indefinite-lived intangible asset impairment charges |
|
$ |
(155,050 |
) |
$ |
(4.64 |
) |
(159,930 |
) |
$ |
(4.79 |
) |
|
Impairment of property and equipment |
|
(300 |
) |
(0.01 |
) |
(2,220 |
) |
(0.07 |
) |
||||
Severance and business restructuring costs |
|
(1,250 |
) |
(0.04 |
) |
|
|
|
|
||||
Huntsville facility closure costs |
|
|
|
|
|
(3,700 |
) |
(0.11 |
) |
||||
Settlement of Canadian benefit plan liability |
|
|
|
|
|
(2,470 |
) |
(0.07 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Total Special Items |
|
$ |
(156,600 |
) |
$ |
(4.68 |
) |
$ |
(168,320 |
) |
$ |
(5.04 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, Profit (Loss) and EPS from continuing operations would have been |
|
$ |
2,650 |
|
$ |
0.08 |
|
$ |
(460 |
) |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding at December 31, 2008 and 2007 |
|
|
|
33,450,444 |
|
|
|
33,409,500 |
|
9
Appendix I (contd)
TriMas Corporation
Additional Information Regarding Special Items Impacting
Reported GAAP Financial Measures
|
|
Quarter ended December 31, |
|
Year ended December 31, |
|
||||||||
(dollars in thousands) |
|
2008(1) |
|
2007(1) |
|
2008 |
|
2007 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Operating loss from continuing operations, as reported |
|
$ |
(162,060 |
) |
$ |
(170,450 |
) |
$ |
(76,380 |
) |
$ |
(94,650 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Special Items to consider in evaluating quality of earnings: |
|
|
|
|
|
|
|
|
|
||||
Goodwill and indefinite-lived intangible asset impairment charges |
|
$ |
(172,220 |
) |
$ |
(171,210 |
) |
$ |
(172,220 |
) |
$ |
(171,210 |
) |
Impairment of property and equipment |
|
(500 |
) |
(3,370 |
) |
(500 |
) |
(3,370 |
) |
||||
Severance and business restructuring costs |
|
(2,010 |
) |
|
|
(4,980 |
) |
|
|
||||
Advisory services agreement termination fee |
|
|
|
|
|
|
|
(10,000 |
) |
||||
Costs for early termination of operating leases |
|
|
|
|
|
|
|
(4,230 |
) |
||||
Huntsville facility closure costs |
|
|
|
(5,620 |
) |
|
|
(5,620 |
) |
||||
Settlement of Canadian benefit plan liability |
|
|
|
(3,870 |
) |
|
|
(3,870 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Total Special Items |
|
$ |
(174,730 |
) |
$ |
(184,070 |
) |
$ |
(177,700 |
) |
$ |
(198,300 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, operating profit from continuing operations would have been |
|
$ |
12,670 |
|
$ |
13,620 |
|
$ |
101,320 |
|
$ |
103,650 |
|
|
|
Quarter ended December 31, |
|
Year ended December 31, |
|
||||||||
(dollars in thousands) |
|
2008(1) |
|
2007(1) |
|
2008 |
|
2007 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA from continuing operations, as reported |
|
$ |
25,710 |
|
$ |
11,250 |
|
$ |
139,020 |
|
$ |
115,120 |
|
|
|
|
|
|
|
|
|
|
|
||||
Special Items to consider in evaluating quality of earnings: |
|
|
|
|
|
|
|
|
|
||||
Severance and business restructuring costs |
|
$ |
(2,010 |
) |
$ |
|
|
$ |
(4,980 |
) |
$ |
|
|
Advisory services agreement termination fee |
|
|
|
|
|
|
|
(10,000 |
) |
||||
Costs for early termination of operating leases |
|
|
|
|
|
|
|
(4,230 |
) |
||||
Huntsville facility closure costs |
|
|
|
(5,620 |
) |
|
|
(5,620 |
) |
||||
Settlement of Canadian benefit plan liability |
|
|
|
(3,870 |
) |
|
|
(3,870 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Total Special Items |
|
$ |
(2,010 |
) |
$ |
(9,490 |
) |
$ |
(4,980 |
) |
$ |
(23,720 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Excluding Special Items, Adjusted EBITDA from continuing operations would have been |
|
$ |
27,720 |
|
$ |
20,740 |
|
$ |
144,000 |
|
$ |
138,840 |
|
(1) Information is unaudited
10
Appendix II
TriMas Corporation
Reconciliation of Non-GAAP Measure Adjusted EBITDA(1) and Free Cash Flow(2)
(unaudited)
|
|
Quarter ended |
|
Year ended |
|
||||||||
|
|
December 31, |
|
December 31, |
|
||||||||
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
||||
Net loss |
|
$ |
(161,830 |
) |
$ |
(168,870 |
) |
$ |
(136,190 |
) |
$ |
(158,430 |
) |
Income tax expense |
|
(27,920 |
) |
(17,370 |
) |
(12,610 |
) |
(10,410 |
) |
||||
Interest expense |
|
13,600 |
|
15,390 |
|
55,920 |
|
68,310 |
|
||||
Debt extinguishment costs |
|
140 |
|
|
|
140 |
|
7,440 |
|
||||
Impairment of property and equipment |
|
500 |
|
3,370 |
|
500 |
|
3,370 |
|
||||
Impairment of goodwill and indefinite-lived intangible assets |
|
184,530 |
|
171,210 |
|
184,530 |
|
171,210 |
|
||||
Depreciation and amortization |
|
11,630 |
|
10,970 |
|
44,070 |
|
41,350 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA, total company |
|
20,650 |
|
14,700 |
|
136,360 |
|
122,840 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA, discontinued operations |
|
(5,060 |
) |
3,450 |
|
(2,660 |
) |
7,720 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA, continuing operations |
|
$ |
25,710 |
|
$ |
11,250 |
|
$ |
139,020 |
|
$ |
115,120 |
|
Special Items |
|
2,010 |
|
9,490 |
|
4,980 |
|
23,720 |
|
||||
Cash interest |
|
(20,420 |
) |
(22,810 |
) |
(52,660 |
) |
(63,690 |
) |
||||
Cash taxes |
|
(1,600 |
) |
(1,820 |
) |
(8,060 |
) |
(8,660 |
) |
||||
Capital expenditures |
|
(9,050 |
) |
(11,200 |
) |
(28,680 |
) |
(33,400 |
) |
||||
Changes in operating working capital |
|
60 |
|
14,620 |
|
(13,300 |
) |
(14,100 |
) |
||||
Subtotal |
|
$ |
(29,000 |
) |
$ |
(11,720 |
) |
$ |
(97,720 |
) |
$ |
(96,130 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Free cash flow |
|
$ |
(3,290 |
) |
$ |
(470 |
) |
$ |
41,300 |
|
$ |
18,990 |
|
(1)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 write-offs, and non-cash losses on sale-leaseback of property and equipment. Lease expense and non-recurring charges are included in Adjusted EBITDA and include both cash and non-cash charges related to restructuring and integration expenses. In evaluating our business, management considers and uses Adjusted EBITDA as a key indicator of financial operating performance and as a measure of cash generating capability. Management believes this measure is useful as an analytical indicator of leverage capacity and debt servicing ability, and uses it to measure financial performance as well as for planning purposes. However, Adjusted EBITDA should not be considered as an alternative to net income, cash flow from operating activities or any other measures calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The definition of Adjusted EBITDA used here may differ from that used by other companies.
(2)The Company defines Free Cash Flow as Adjusted EBITDA from continuing operations, plus Special Items as defined below, less cash paid for interest and taxes, capital expenditures and changes in operating working capital. As detailed in Appendix I, for purposes of determining Free Cash Flow, Special Items include those one-time costs, expenses and other charges incurred on a cash basis that are included in the determination of net income (loss) under GAAP and are not added back to net income (loss) in determining Adjusted EBITDA, but that management would consider important in evaluating the quality of the Companys Free Cash Flow, as defined.
11
Exhibit 99.2
Fourth Quarter 2008 Earnings Presentation March 10, 2009 |
1 Safe Harbor Statement Any forward-looking statements contained herein, including those relating to market conditions or the Companys 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 Companys business and industry, the Companys substantial leverage, liabilities imposed by the Companys debt instruments, market demand, competitive factors, the Companys ability to maintain compliance with the listing requirements of the New York Stock Exchange, supply constraints, material and energy costs, technology factors, litigation, government and regulatory actions, the Companys accounting policies, future trends, and other risks which are detailed in the Companys Annual Report on Form 10-K for the fiscal year ending December 31, 2007, and in the Companys 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. |
2 Agenda Opening Remarks Fourth Quarter 2008 Highlights Full Year 2008 Highlights Segment Highlights Summary and Outlook Questions and Answers Appendix |
3 Opening Remarks Activities during the first 2 months Visited all U.S.-based businesses Implemented new planning process and incentive compensation system Conducted first operating review with business units Aggressively reacted to recessionary market trends Initial observations Good businesses with good products and people Highly-engineered defensible products Strong cash flow dynamics Opportunities for: Increased productivity Working capital improvements Better resource allocation Task at hand Be realistic about recessionary impact Aggressively respond to customer needs and demand Act with speed |
Fourth Quarter 2008 Highlights |
5 Q4 Summary ($ in millions, except per share amounts) (from continuing operations) Q4 2008 Q4 2007 % Chg Revenue $213.1 $ 222.1 -4.0% Adjusted EBITDA(1) $25.7 $ 11.3 128.5% Excl. Special Items, (1) Adjusted EBITDA would have been: 27.7 $ 20.7 $ 33.7% Income (loss) (154.0) $ (168.8) $ Excl. Special Items, (1) Income (loss) would have been: 2.7 $ (0.5) $ Earnings (loss) per share (4.60) $ (5.05) $ Excl. Special Items, (1) EPS would have been: 0.08 $ (0.01) $ Sales in Energy Products and Industrial Specialties were up 39.0% and 5.5%, respectively Sales in Packaging Systems were down 7.8% largely due to the unfavorable impact of currency exchange, while RV & Trailer Products and Recreational Accessories were down 30.5% and 21.3%, respectively, due to continued end market weakness Non-cash goodwill and indefinite-lived intangible asset impairment charges of $172.2 million mask underlying company performance Adjusted EBITDA increase driven by the improved operating performance in Energy Products, lower corporate expense and a gain on extinguishment of debt (1) Special Items for each period, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA, are provided in the Appendix. |
6 Q4 Business Segment Overview Highlights Lamons expanded gasket/bolt contracts with key customers globally for 5 years Signed agreement to sell non-core asset, Compac closed on 2/9/09 Monogram secured additional business for new products and applications Cequent Consumer Products won significant new business award at WalMart for 2009 Cequent Australia secured new business in Thailand Lowlights Dramatic end market declines across the businesses Distribution channels reducing inventory Pricing pressure (competitive and raw material) Commodity price volatility |
Full Year 2008 Highlights |
8 2008 Full Year Summary (from continuing operations) FY 2008 FY 2007 % Chg Revenue 1,021.3 $ 1,003.1 $ 1.8% Adjusted EBITDA(1) 139.0 $ 115.1 $ 20.8% Excl. Special Items, (1) Adjusted EBITDA would have been: 144.0 $ 138.8 $ 3.7% Income (loss) (128.6) $ (161.2) $ Excl. Special Items, (1) Income would have been: 29.9 $ 20.5 $ 45.3% Earnings (loss) per share (3.85) $ (5.66) $ Excl. Special Items, (1) EPS would have been: 0.89 $ 0.72 $ 23.6% Free Cash Flow(1) 41.3 $ 19.0 $ 117.5% Debt and AR Securitization 629.9 $ 657.5 $ -4.2% ($ in millions, except per share amounts) Sales increased 1.8% to $1,021.3 million Packaging Systems, Energy Products and Industrial Specialties sales increased 14.8%, combined, as a result of new products, geographic expansion and increased market demand RV & Trailer and Recreational Accessories sales declined 12.1%, combined Financial performance improved as a result of strength in the aerospace and energy businesses, lower corporate costs and gain on extinguishment of debt Significant cash flow improvement of approximately $22 million driven by improved operating performance, lower cash interest costs and reduced capital spending Ended the year with $131.8 million in cash and aggregate availability under revolving credit and accounts receivables securitization facilities (1) Special Items for each period, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow from Operations, are provided in the Appendix. |
9 Other Financial Highlights Full year 2008 versus full year 2007 performance: Free cash flow(1) of $41.3 million; an increase of $22.3 million Total debt and A/R securitization of $629.9 million; a decrease of $27.6 million Leverage ratio of 4.16x compared to a debt covenant ratio of 5.0x. Total weighted average cost of credit facility borrowings of 5.4%; an improvement of 240 basis points Working capital of $178.5 million increased $13.3 million compared to the prior year end Increase in net inventory of $7.2 million primarily due to commodity cost inflation in 2008 vs. 2007 Decline in accounts payable of $7.6 million primarily due to Q408 efforts to reduce purchasing activity in light of economic environment TriMas had approximately $131.8 million of cash and aggregate availability under its revolving credit and receivables securitization facilities at year end. (1) The Company defines Free Cash Flow as Adjusted EBITDA from continuing operations , plus Special Items as defined below, less cash paid for interest and taxes, capital expenditures and changes in operating working capital. See Appendix for additional information regarding Special Items impacting reported GAAP financial measures a reconciliation of the non-GAAP financial measures Adjusted EBITDA and free cash flow to the Companys reported results of operations prepared in accordance with GAAP. |
Segment Highlights |
11 Segment Summary 17% 22% 21% 24% 16% Segment Key 27% 37% 5% 26% 5% Packaging Systems Energy Products Industrial Specialties RV & Trailer Products Recreational Accessories % of Revenue % of Segment Operating Profit(1) Year Ended December 31, 2008 Year Ended December 31, 2008 (1) Segment Operating Profit excluding Special Items. Special Items by segment are provided in the Appendix. Most profitable business segments are becoming more significant. |
12 Packaging Systems 2008 net sales increased 6.2%, compared to 2007, due to sales of specialty dispensing and other new products to the pharmaceutical, food/beverage and personal care end markets and the favorable effects of currency exchange 2008 Adjusted EBITDA and operating profit improved due to increased sales volumes, partially offset by increases in raw material costs and expenses incurred to support sales growth initiatives Closed sale of Compac business in February 2009 Develop specialty dispensing product applications for growing end markets Increase geographic coverage efforts in Europe and Southeast Asia Protect core products by introducing new product designs for better performance, lower cost and patent protection ($ in millions) Net Sales Adjusted EBITDA( 1) Q4-08 2007 2008 $152.0 $161.3 Q4-07 Q4-08 2007 2008 $42.7 $45.4 Q4-07 Operating Profit(1) Q4-08 2007 2008 $30.8 $31.7 Q4-07 $35.2 $32.4 $6.1 $8.6 $5.2 $4.8 (1) Adjusted EBITDA and Operating Profit exclude Special Items f or each period. A detailed schedule of Special Items, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow from Operations, are provided in the Appendix. |
13 Energy Products Sales for the year increased 30.8%, compared to 2007 New product initiatives to add content at the well-site and increased engine demand drove sales increases of engine and related products year-over-year Product expansion efforts, a superior service model and continued high levels of capacity utilization increased specialty gasket sales to refinery and petrochemical industries 2008 Adjusted EBITDA and operating profit improved, with strong conversion Began experiencing declines in customer demand in engine business in late 2008 Introduced complementary product line at well-site gas production equipment Plans to further expand gasket business with major customers into Southeast Asia, Europe and South America ($ in millions) Q4-08 2007 2008 $163.5 $213.8 Q4-07 Q4-08 2007 2008 $25.4 $35.8 Q4-07 Q4-08 2007 2008 $22.9 $33.1 Q4-07 $40.5 $56.4 $6.4 $8.8 $5.9 $8.1 Net Sales Adjusted EBITDA(1) Operating Profit(1) (1) Adjusted EBITDA and Operating Profit exclude Special Items f or each period. A detailed schedule of Special Items, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow from Operations, are provided in the Appendix. |
14 Industrial Specialties 2008 sales increased 8.4%, compared to 2007 Sales of aerospace fasteners were robust due to the introduction of new products and a strong market Higher sales in defense business driven by cartridge case inventory build-up Sales of industrial cylinders and specialty cutting tools were relatively flat Specialty fittings business experienced a softening driven by reduced automotive demand Adjusted EBITDA and operating profit increased due to higher sales volumes in the defense and aerospace businesses, which were partially offset by higher commodity costs and lower industrial demand Develop specialty products for growing end markets such as aerospace and medical Continue geographic expansion efforts ($ in millions) Q4-08 2007 2008 $204.6 $221.8 Q4-07 Q4-08 2007 2008 $46.9 $51.0 Q4-07 Q4-08 2007 2008 $41.8 $44.9 Q4-07 $50.2 $52.9 $10.8 $11.3 $9.4 $9.7 Net Sales Adjusted EBITDA(1) Operating Profit(1) (1) Adjusted EBITDA and Operating Profit exclude Special Items f or each period. A detailed schedule of Special Items, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow from Operations, are provided in the Appendix. |
15 RV & Trailer Products ($ in millions) 2008 sales decreased 12.2% due to continued weak demand in end markets resulting from the decline in consumer discretionary spending and credit availability Sales in Australia and Southeast Asia increased year-over-year Adjusted EBITDA and operating profit decreased due to the decline in sales, lower absorption of fixed costs as the Company reduced production to manage inventory levels, and a less favorable product sales mix Continued aggressive reduction of fixed costs and capital requirements Mitigate market decline by leveraging strong brand names for additional market share, cross-selling product portfolio and attacking weak competitors Grow geographically in Southeast Asia and Australia Q4-08 2007 2008 $46.4 $32.2 Q4-07 Q4-08 2007 2008 $27.6 $13.9 Q4-07 Q4-08 2007 2008 $19.6 $5.5 Q4-07 $198.8 $174.6 $4.8 $1.8 $2.8 $(0.8) Net Sales Adjusted EBITDA(1) Operating Profit(1) (1) Adjusted EBITDA and Operating Profit exclude Special Items for each period. A detailed schedule of Special Items, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow from Operations, are provided in the Appendix. |
16 Recreational Accessories ($ in millions) Q4-07 Q4-08 $49.9 $39.2 2007 2008 $284.2 $249.8 $0.8 $(3.1) $26.0 $16.0 Q4-07 Q4-08 2007 2008 $(5.8) $15.2 $6.1 Q4-07 Q4-08 2007 2008 $(2.2) Net Sales Adjusted EBITDA( 1) Operating Profit(1) (1) Adjusted EBITDA and Operating Profit exclude Special Items for each period. A detailed schedule of Special Items, as well as the Reconciliation of Non-GAAP Measure Adjusted EBITDA and Free Cash Flow from Operations, are provided in the Appendix. 2008 sales decreased 12.1% due to continued weak demand in end markets resulting from the decline in consumer discretionary spending and credit availability Sales in Australia and Southeast Asia increased year-over-year Adjusted EBITDA and operating profit decreased due to the decline in sales, lower absorption of fixed costs as the Company reduced production to manage inventory levels, and a less favorable product sales mix Continued aggressive reduction of fixed costs and capital requirements Mitigate market decline by leveraging strong brand names for additional market share, cross-selling product portfolio and attacking weak competitors Grow geographically in Southeast Asia and Australia |
Summary and Outlook |
18 TriMas Vision We provide applied technology that customers in growing markets need and will pay for. We build and run agile businesses that provide high returns on capital. Operating Principles: Securing our position as the best cost producer Acting with high speed in all aspects of business Thoughtfully allocating resources for: New products in growing end markets Geographic expansion Cost-out and productivity projects Bolt-on acquisitions that provide enhanced growth and returns Leveraging the benefits of being a billion dollar company, while retaining agility in our SBUs Being a great place to work |
19 End Markets Broad product portfolio with strong brands Share gain due to weak competitors exit New awards domestic and offshore Trailer registrations down 23% in 2008: Down 20% Light pick-up truck sales down 35% in 2008: Down 20-30% Overall market: Down 20%+ Non-North American: 15% Retail (accessories): 27% Aftermarket (distributors/installers): 23% RV and marine specific: 14% Trailer OE (ind/agric): 15% Auto OE/OES: 6% RV&T and Recreational Accessories: Aerospace: Backlog based; new product/application growth Medical: New products/apps, new customers Industrial: Continued geographic expansion; core competencies to other markets Aerospace/Framing: Up low to mid single digits % Industrial GDP: Flat to down 5% Medical components: Up high single digits Military: Up Automotive: Down 20%+ Aerospace: 35% Industrial: 47% Military: 10% Automotive: 6% Medical: 2% Industrial Specialties: New product offering / expansion Geographic expansion MRO exposure most stable replace / fix Commodity-dynamics: Lower gas and oil prices affect demand MRO business: 65% Oil and gas commodity-driven: 35% Energy Products: New markets and customers New applied technologies and applications Consumption-based markets: Medical/Pharma: Up mid single-digits % Food/Beverage: Up low to mid single-digits % Personal Care: Up low single-digits % Industrial GDP: Flat to down 5% Specialty dispensing, consumer-based packaging products: 35% Industrial closures: 65% ~20% is non-North American Packaging Systems: Segment Content End Market Dynamics TriMas Advantage Overall sales estimate for 2009 expected to be down 10% to 20% versus 2008 |
20 Profit Improvement Plan Tactics Employed: Fixed cost headcount reductions Salaried hiring freeze Merit deferrals Mandatory 4-day work weeks Required weeks off without pay Acceleration of plant consolidations and moves to low-cost countries Consolidation of distribution facilities Employee health care contribution increase Travel freeze Aggressive reductions in discretionary spend Negotiated reductions from vendors and suppliers Cancelled supplier orders Nov 2008 Anncmt Current 2009 Packaging Systems Energy Products Industrial Specialties Cequent $ in millions Accelerated Profit Improvement Plan to $28 million of achieved savings in 2009 Compensation-related $4M Facility Reductions $4M Other Spend Reductions $7M Headcount Reductions $13M $6M $28M |
21 Value Creation Opportunities Earnings Price actions Material deflation General productivity improvements Profit Improvement Plan cost savings of $28 million+ Reduction in debt service costs of $4 to $7 million Decrease in outstanding weighted average borrowings Lower weighted average cost of borrowings Cash Working capital take-out of $10 to $20 million Capital expenditure reduction of $5 to $7 million Other (dispositions of non-core assets) of $10 to $20 million Conservative estimate of free cash flow of $40 to $45 million Targeting a minimum of 0.4x covenant cushion for remainder of 2009. |
22 TriMas Priorities Drive operating profit improvement Best cost producer strategy Effectively manage the balance sheet Pay-down debt Maintain liquidity cushion Deploy capital prudently Focus capital on profitable strategic growth Aerospace, specialty packaging, medical, energy and geographic expansion |
Questions & Answers |
Appendix |
25 2008 Statement of Operations 2008 2007 Net sales 1,021,300 $ 1,003,070 $ Cost of sales (758,120) (729,510) Gross profit 263,180 273,560 Selling, general and administrative expenses (166,500) (173,810) Advisory services agreement termination fee - (10,000) Costs for early termination of operating leases - (4,230) Settlement of Canadian benefit plan liability - (3,870) Loss on dispositions of property and equipment (340) (1,720) Impairment of property and equipment (500) (3,370) Impairment of goodwill and indefinite-lived intangible assets (172,220) (171,210) Operating loss (76,380) (94,650) Other expense, net: Interest expense (55,740) (68,310) Gain (loss) on extinguishment of debt 3,740 (7,440) Other, net (2,290) (3,880) Other expense, net (54,290) (79,630) Loss from continuing operations before income tax benefit (130,670) (174,280) Income tax benefit 2,080 13,080 Loss from continuing operations (128,590) $ (161,200) $ Income (loss) from discontinued operations, net of income taxes (7,600) 2,770 Net loss (136,190) $ (158,430) $ December 31, Year ended ($ in thousands) |
26 2008 Cash Flow Highlights 2008 2007 Adjusted Ebitda(1), as reported 139,020 $ 115,120 $ Special Items(2) 4,980 23,720 Adjusted Ebitda, excluding Special Items 144,000 $ 138,840 $ Cash interest (52,660) (63,690) Cash taxes (8,060) (8,660) Capital expenditures (28,680) (33,400) Change in operating working capital (13,300) (14,100) Subtotal (102,700) $ (119,850) $ Free Cash Flow(1) 41,300 $ 18,990 $ December 31, Year ended (1) See Appendix for Reconciliation of non-GAAP items Adjusted EBITDA and Free Cash Flow (2) In 2008, principally severance and other costs related to cost reduction actions and business restructurings. In 2007, Heartland management fee termination payment of $10M; termination of leases $4.2 million, Huntsville plant closure of $5.6 million, Canadian pension of $3.9 million and other restructuring actions of $1.8 million. ($ in thousands) |
27 2008 Balance Sheet December 31, December 31, 2008 2007 Current assets: Cash and cash equivalents 3,910 $ 4,800 $ Receivables, net 104,760 89,370 Inventories 188,950 181,790 Deferred income taxes 16,970 18,860 Prepaid expenses and other current assets 7,430 7,010 Assets of discontinued operations held for sale 26,200 41,450 Total current assets 348,220 343,280 Property and equipment, net 181,570 186,840 Goodwill 202,280 367,420 Intangibles and other assets 198,150 230,450 Total assets 930,220 $ 1,127,990 $ Current liabilities: Current maturities, long-term debt 10,360 $ 8,390 $ Accounts payable 111,810 121,860 Accrued liabilities 66,340 71,830 Liabilities of discontinued operations 1,340 1,450 Total current liabilities 189,850 203,530 Long-term debt 599,580 607,600 Deferred income taxes 51,650 73,280 Other long-term liabilities 34,240 35,090 Total liabilities 875,320 919,500 Total shareholders equity 54,900 208,490 Total liabilities and shareholders equity 930,220 $ 1,127,990 $ Assets Liabilities and Shareholders Equity ($ in thousands) |
28 (Unaudited - $ in thousands) LTM EBITDA as Defined in Credit Agreement Reported net loss for the twelve months ended December 31, 2008 (136,190) $ Interest expense, net (as defined) 56,060 Income tax expense (benefit) (12,610) Depreciation and amortization 44,070 Extraordinary non-cash charges 185,030 Interest equivalent costs 2,610 Non-cash expenses related to equity grants 1,030 Other non-cash expenses or losses 3,310 Non-recurring expenses or costs for cost savings projects 4,250 Permitted dispositions 3,970 Permitted acquisitions 40 Bank EBITDA - LTM Ended December 31, 2008 (1) 151,570 $ (1) As defined in the Amended and Restated Credit Agreement dated August 2, 2006. |
29 2008 Year End Debt Composition 6.41% 6.81% Foreign Debt 7.28% 4.57% A/R Facility (CP Rate + 1.05% plus 0.5% Facility Fee) 9.875% 9.875% Sub Notes (Fixed Rate) 7.81% 5.33% Term Loan (LIBOR + 2.25%) 7.86% 5.17% Synthetic Facility (LIBOR + 2.25%) 8.27% 5.00% Revolver (LIBOR +2% or Prime +1%) FY 2007 FY 2008 Weighted Average Cost of Borrowings December 31, 2008 December 31, 2007 Cash and Cash Equivalents 3,910 $ 4,800 $ Revolver/Synthetic 8,450 660 Foreign Debt/Other 18,200 21,610 Term Loan 254,150 256,750 Senior Secured Bank Debt 280,800 $ 279,020 $ 9.875% Senior Sub Notes due 2012 329,140 336,970 Total Debt 609,940 $ 615,990 $ Total Shareholders Equity 54,900 $ 208,490 $ Total Capitalization 664,840 $ 824,480 $ Memo: A /R Securitization 20,000 $ 41,500 $ Total Debt + A/R Securitization 629,940 $ 657,490 $ Key Ratios: Bank LTM EBITDA 151,570 $ 161,610 $ Interest Coverage Ratio 2.74x 2.28x Leverage Ratio 4.16x 4.07x Bank Covenants: Interest Coverage Ratio 2.00x 1.90x Leverage Ratio 5.00x 5.25x ($ in thousands) As of December 31, 2008, TriMas had $3.9 million in cash and approximately $127.9 million of available liquidity under its revolving credit and receivables securitization facilities. |
30 Reconciliation of Non-GAAP Measures Adjusted EBITDA(1) and Free Cash Flow(2) (unaudited, $ in thousands) 2008 2007 2008 2007 Net loss (161,830) $ (168,870) $ (136,190) $ (158,430) $ Income tax expense (27,920) (17,370) (12,610) (10,410) Interest expense 13,600 15,390 55,920 68,310 Debt extinguishment costs 140 - 140 7,440 Impairment of property and equipment 500 3,370 500 3,370 Impairment of goodwill and indefinite-lived intangible assets 184,530 171,210 184,530 171,210 Depreciation and amortization 11,630 10,970 44,070 41,350 Adjusted EBITDA, total company 20,650 14,700 136,360 122,840 Adjusted EBITDA, discontinued operations (5,060) 3,450 (2,660) 7,720 Adjusted EBITDA, continuing operations 25,710 $ 11,250 $ 139,020 $ 115,120 $ Special Items 2,010 9,490 4,980 23,720 Cash interest (20,420) (22,810) (52,660) (63,690) Cash taxes (1,600) (1,820) (8,060) (8,660) Capital expenditures (9,050) (11,200) (28,680) (33,400) Changes in operating working capital 60 14,620 (13,300) (14,100) Subtotal (29,000) $ (11,720) $ (97,720) $ (96,130) $ Free cash flow (3,290) $ (470) $ 41,300 $ 18,990 $ Quarter ended Year ended December 31, December 31, (1)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 write-offs, and non-cash losses on sale-leaseback of property and equipment. Lease expense and non-recurring charges are included in Adjusted EBITDA and include both cash and non-cash charges related to restructuring and integration expenses. In evaluating our business, management considers and uses Adjusted EBITDA as a key indicator of financial operating performance and as a measure of cash generating capability. Management believes this measure is useful as an analytical indicator of leverage capacity and debt servicing ability, and uses it to measure financial performance as well as for planning purposes. However, Adjusted EBITDA should not be considered as an alternative to net income, cash flow from operating activities or any other measures calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The definition of Adjusted EBITDA used here may differ from that used by other companies. (2)The Company defines Free Cash Flow as Adjusted EBITDA from continuing operations, plus Special Items as defined below, less cash paid for interest and taxes, capital expenditures and changes in operating working capital. As detailed in Appendix I, for purposes of determining Free Cash Flow, Special Items include those one-time costs, expenses and other charges incurred on a cash basis that are included in the determination of net income (loss) under GAAP and are not added back to net income (loss) in determining Adjusted EBITDA, but that management would consider important in evaluating the quality of the Companys Free Cash Flow, as defined. |
31 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Year ended Year ended December 31, 2008 December 31, 2007 ($ in thousands) Income EPS Income EPS Loss and EPS from Continuing Operations, as reported. (12 8,590) $ (3.85) $ (161,20 0) $ (5.66) $ After-tax impact of Special Items to consider in evaluating loss and EPS from continuing operations: Goodwill and indefinite-lived impairment charge (155,050) $ (4.64) $ (159,930) $ (5.61) $ Impairment of assets (300) (0.01) (2,220) (0.08) Severance and business restructuring costs (3,090) (0.09) - - Advisory Services Agreement termination fee - - (6,190) (0.22) Costs for early termination of operating leases - - (2,620) (0.09) Debt extinguishment costs. - - (4,610) (0.16) Hunts ville facility closure costs - - (3,700) (0.13) Settlement of Canadian benefit plan liability - - (2,470) (0.09) Total Special Items (158,440) $ (4.74) $ (181,740) $ (6.38) $ Excluding Special Items , Profit and EPS from continuing operations would have been 29,850 $ 0.89 $ 20,540 $ 0.72 $ Weighted-average shares outstanding at December 31, 2008 and 2007 33,422,572 28,498,678 Quarter ended Quarter ended December 31, 2008(1) December 31, 2007(1) ($ in thousands) Income EPS Income EPS Loss and EPS from Continuing Operations, as reported. (153,950) $ (4.60) $ (168,780) $ (5.05) $ After -tax impact of Special Items to consider in evaluating loss and EPS from continuing operations: Goodwill and indefinite-lived impairment charge (15 5,050) $ (4.64) (159,930) $ (4.79) Impairment of assets (3 00) (0.01) (2,220) (0.07) Severance and business restructuring costs (1,250) (0.04) - - Hunts ville facility closure costs - - (3,700) (0.11) Settlement of Canadian benefit plan liability - - (2,470) (0.07) Total Special Items (156,600) $ (4.68) $ (168,320) $ (5.04) $ Excluding Special Items, Profit and EPS from continuing operations would have been 2,650 $ 0.08 $ (460) $ (0.01) $ Weighted-averages hares outstanding at December 31, 2008 and 2007 33,450,444 33,409,500 (1) Information is unaudited |
32 Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (cont.) (1) Information is unaudited Quarter ended December 31, Year ended December 31, ($ in thousands) 2008(1) 2007(1) 2008 2007 Operating loss, as reported (162,060) $ (170,450) $ (76,380) $ (94,650) $ Special Items to consider in evaluating quality of earnings: Goodwill and indefinite-lived impairment charge (172,220) $ (171,210) $ (172,220) $ (171,210) $ Impairment of assets (500) (3,370) (500) (3,370) Severance and business restructuring costs (2,010) - (4,980) - Advisory Services Agreement termination fee - - - (10,000) Costs for early termination of operating leases - - - (4,230) Huntsville facility closure costs - (5,620) - (5,620) Settlement of Canadian benefit plan liability - (3,870) (3,870) Total Special Items (174,730) $ (184,070) $ (177,700) $ (198,300) $ Excluding Special Items, operating profit from continuing operations would have been 12,670 $ 13,620 $ 101,320 $ 103,650 $ Quarter ended December 31, Year ended December 31, ($ in thousands) 2008(1) 2007(1) 2008 2007 Adjusted EBITDA from continuing operations, as reported 25,710 $ 11,250 $ 139,020 $ 115,120 $ Special Items to consider in evaluating quality of earnings: Severance and business restructuring costs (2,010) $ - $ (4,980) $ - $ Advisory Services Agreement termination fee - - - (10,000) Costs for early termination of operating leases - - - (4,230) Huntsville facility closure costs - (5,620) - (5,620) Settlement of Canadian benefit plan liability - (3,870) - (3,870) Total Special Items (2,010) $ (9,490) $ (4,980) $ (23,720) $ Excluding Special Items, adjusted EBITDA from continuing operations would have been 27,720 $ 20,740 $ 144,000 $ 138,840 $ |
33 Company and Business Segment Financial Information Continuing Operations Quarter ended December 31, 2008 2007 2008 2007 Packaging Systems Net sales 32,420 $ 35,150 $ 161,330 $ 151,950 $ Operating profit (loss) (57,730) $ 1,300 $ (31,200) $ 26,880 $ Operating profit (loss) as a % of sales NM 3.7% NM 17. 7% Special Items to consider in evaluating operating profit: - Non-cash goodwill and indefinite-lived asset impairment (62,490) $ - $ (62,490) $ - $ - Other Special Items - $ (3,870) $ (410) $ (3,870) $ Excluding Special Items, operating profit would have been: 4,760 $ 5,170 $ 31,700 $ 30,750 $ Energy Products Net sales 56,360 $ 40,540 $ 213,750 $ 163,470 $ Operating profit 8,070 $ 5,930 $ 32,740 $ 22,860 $ Operating profit as a % of sales 14.3% 14.6% 15.3% 14. 0% Special Item to consider in evaluating operating profit: - Other Special Items - $ - $ (320) $ - $ Excluding Special Item, operating profit would have been: 8,070 $ 5,930 $ 33,060 $ 22,860 $ Industrial Specialties Net sales 52,900 $ 50,160 $ 221,830 $ 204,630 $ Operating profit (loss) (15,080) $ 9,400 $ 19,670 $ 41,770 $ Operating profit (loss) as a % of sales NM 18.7% 8.9% 20.4% Special Items to consider in evaluating operating profit: - Non-cash goodwill and indefinite-lived asset impairment (24,790) $ - $ (24,790) $ - $ - Other Special Items - $ - $ (430) $ Excluding Special Items, operating profit would have been: 9,710 $ 9,400 $ 44,890 $ 41,770 $ RV & Trailer Products Net sales 32,240 $ 46,370 $ 174,610 $ 198,790 $ Operating loss (49,430) $ (97,970) $ (43,320) $ (81,230) $ Operating loss as a % of sales NM NM NM NM Special Items to consider in evaluating operating profit (loss): - Non-cash goodwill and indefinite-lived asset impairment (47,600) $ (100,780) $ (47,600) $ (100,780) $ - Other Special Items (1,080) $ - $ (1,200) $ - $ Excluding Special Items, operating profit (loss) would have been: (750) $ 2,810 $ 5,480 $ 19,550 $ Year ended (unaudited) December 31, |
34 Company and Business Segment Financial Information Continuing Operations (cont.) Quarter ended December 31, 2008 2007 2008 2007 Recreational Accessories Net sales 39,220 $ 49,850 $ 249,780 $ 284,230 $ Operating loss (43,930) $ (81,620) $ (32,110) $ (64,200) $ Operating loss as a % of sales NM NM NM NM Special Items to consider in evaluating operating profit (los s): - Non-cash goodwill and indefinite-lived asset impairment (37,340) $ (70,430) $ (37,340) $ (70,430) $ - Other Special Items (820) $ (8,990) $ (900) $ (8,990) $ Excluding Special Items, operating profit (loss) would have been: (5,770) $ (2,200) $ 6,130 $ 15,220 $ Corporate Expenses (3,960) $ (7,490) $ (22,160) $ (40,730) $ Special Item to consider in evaluating corporate expenses: (610) $ - $ (2,220) $ (14,230) $ Excluding Special Items, corporate expenses would have been: (3,350) $ (7,490) $ (19,940) $ (26,500) $ Total Company Net sales 213,140 $ 222,070 $ 1,021,300 $ 1,003,070 $ Operating loss (162,060) $ (170,450) $ (76,380) $ (94,650) $ Operating loss as a % of sales NM NM NM NM Total Special Items to consider in evaluating operating loss: (174,730) $ (184,070) $ (177,700) $ (198,300) $ Excluding Special Items, operating profit would have been: 12,670 $ 13,620 $ 101,320 $ 103,650 $ Other Data: - Depreciation and amortization 10,470 $ 10,370 $ 41,090 $ 39,060 $ - Interest expense 13,580 $ 15,390 $ 55,740 $ 68,310 $ - Gain (loss) on extinguishment of debt 3,740 $ - $ 3,740 $ (7,440) $ - Other (income) expense, net (720) $ 430 $ 2,290 $ 3,880 $ - Income tax benefit 17,230 $ 17,490 $ 2,080 $ 13,080 $ (unaudited) December 31, Year ended |