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UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
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) June 15, 2005
TRIMAS CORPORATION
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(Exact name of registrant as specified in its charter)
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| Delaware | |
333-100351 | |
38-2687639 | ||||||
| (State or other jurisdiction | |
(Commission | |
(IRS Employer | ||||||
| of incorporation) | |
File Number) | |
Identification No.) | ||||||
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| 39400 Woodward Avenue, Suite 130, Bloomfield Hills, Michigan | |
48304 | ||||
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(Zip Code) | ||||
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Registrant's telephone number, including area code (248) 631-5400
Not Applicable
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(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):
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| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| [ ] | 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.
The Company's only public security holders are holders of its 9 7/8% senior subordinated notes due 2012. The Company issued a press release and held a stakeholders' day on June 15, 2005 to discuss its current operational affairs and initiatives. A copy of the visual presentation that was used for the stakeholders' day is available at www.trimascorp.com.
Item 9.01. Financial Statements and Exhibits.
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| (c) | Exhibits. The following exhibits are filed herewith: |
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| Exhibit No. | Description |
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| 99.1 | Press Release |
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| 99.2 | TriMas Corporation (the
"Company") visual presentation titled "Presentation to Investors" is available at http://www.trimascorp.com. |
SIGNATURE
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 | ||||||||
| Date: June 15, 2005 | |
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By: /s/
Grant H. Beard Name: Grant H. Beard Title: Chief Executive Officer |
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For more information, contact: |
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E.R.
"Skip" Autry Chief Financial Officer TriMas Corporation 248-631-5496 |
MEDIA RELEASE
For Immediate Release
TRIMAS CORPORATION HOSTS STAKEHOLDERS' DAY IN
HACKETTSTOWN, NEW JERSEY
BLOOMFIELD HILLS, Mich. – June 15, 2005 – TriMas Corporation held a Stakeholders' Day at its Hackettstown, New Jersey facility today to provide a general business update, respond to investor questions and allow stakeholders to take a plant tour of its new state-of-the-art facility. TriMas Corporation President and CEO Grant H. Beard, Chief Financial Officer E.R. "Skip" Autry, Group President-Cequent Edward L. Schwartz, and Group President-Rieke Lynn A. Brooks made the overview presentations.
If you were unable to attend this event, the presentation materials are available on the Company's website at www.trimascorp.com in the Investor Relations section.
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 four strategic business groups: Cequent Transportation Accessories, Rieke Packaging Systems, Fastening Systems, and Industrial Specialties. TriMas has nearly 5,000 employees at 80 different facilities in 10 countries. For more information, visit www.trimascorp.com.
# # #
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Presentation
to Investors
June
15, 2005
Agenda
Welcome
Compac
Overview & Plant Tour
TriMas
Overview
Rieke
Presentation
Fastening
Systems & Industrial Specialties Presentation
Cequent
Presentation
Lunch
– Q&A
2
Company
Overview
Grant
Beard
President
& Chief Executive Officer
Q1
2005 Financial Highlights
First
quarter sales $292.8 million, increase of 12.2% over
Adjusted
EBITDA* within quarter was $32.7 million, an
Q1
2005 operating income was $23.3 million, an
Net
income within the quarter was $2.5 million or $0.13
*The
Company defines “Adjusted EBITDA” as net income before interest,
taxes, depreciation, amortization, non-cash asset and goodwill impairment
write-
4
Q1
2005 Financial Highlights
($
in millions)
Q1
Revenue
Q1
Adjusted EBITDA
5
Q1
2005 Financial Highlights
Steel
costs continued to challenge operating margins in
Recovering
approximately 85% of steel cost increases from
TriMas
ended quarter with $813.4 million of combined
Approximate
$27 million increase in leverage due to higher
6
Q1
2005 Operating Highlights
Q1
2005 sales increased $11.1 million to
Unit
volume essentially flat when
Softer
than expected demand for
Competitive
pricing pressures across
Adjusted
EBITDA in Q1 2005 decreased
Q1
2005 operating profit was $12.3
Order
fill performance is excellent
Cequent
Transportation Accessories
7
Q1
2005 Operating Highlights
Net
sales for the quarter were $34.1
Core
product sales volume increased
Rieke
launched 8 new pump
Operating
income for Q1 2005
Order
intake during Q1 2005
Rieke
Packaging Systems
8
Q1
2005 Operating Highlights
Q1
2005 sales increased 14.2% or
Sales
of industrial fastener products
Sales
of aerospace fasteners in the
Operating
income for Q1 2005 was
Adjusted
EBITDA in Q1 2005 was
Manufacturing
activity levels
Fastening
Systems Group
9
Q1
2005 Operating Highlights
Net
sales for Q1 2005 were $73.8
Operating
income for the quarter
Adjusted
EBITDA for the quarter
Incremental
costs associated with
Industrial
Specialties companies
Industrial
Specialties Group
10
Q1
2005 New Sales
Product
Customer
Run
Rate
Gaskets
National
Oilwell
2.6
$
Gaskets
Total
Petroleum
0.2
Gaskets
Imperial
Oil
0.2
Gaskets
Tat
Lee
0.3
Engine
Parts
Weatherford
TBD
SSL
Tape
John
Manville
1.00
Cartridge
Cases
Dept.
of Defense & Other
1.60
Total
ISG
5.9
$
Industrial
Specialties Group
11
($
millions)
Product
Customer
Run
Rate
Tie
Downs
Canadian
Tire
3.0
$
Towing
Accessories
Home
Depot
1.0
Cargo
Management
Costco
TBD
Tie
Downs & Electrical
Sears
TBD
Trailer
Hitches
Honda
TBD
Misc.
Products
Toyota
TBD
Misc.
Products
Land
Rover
TBD
Total
Cequent
4.0
$
Cequent
Transportation Accessories
Product
Customer
Run
Rate
Aerospace
Fasteners
Airbus
& Satair
2.7
$
Aerospace
Fasteners
Northrop
TBD
Bolts
Caterpillar
0.4
Fasteners
Hendrickson
0.8
Fasteners
Other
TBD
Total
FSG
3.9
$
Fastening
Systems Group
Product
Customer
Run
Rate
Dispenser
Ecolab
1.2
$
Dispenser
Starbucks
0.2
Dispenser
Hershey's
0.1
Dispenser
Colgate
TBD
Dispenser
Others
0.4
Total
Rieke
2.7
$
Rieke
Packaging Systems
2005
Focus & Priorities
Working
capital reductions and free cash flow, positively
SG&A
costs will be flexed across all of TriMas consistent
Discretionary
spending on hold – capex approvals by
Measured
actions in managing earnings volatility:
TriMas
has positive year-over-year momentum in 12 of 14
Lean
vs. Disable
12
Financial
Overview
Skip
Autry
Chief
Financial Officer
(unaudited
- in millions)
Mar.
31,
Dec.
31,
2005
2004
Assets
Current
Assets
Cash
& Cash Equivalents
3.9
$
3.1
$
Receivables
127.4
93.4
Inventories
176.6
180.0
Deferred
Income Taxes
17.5
17.5
Prepaid
Expenses and Other Current Assets
7.3
8.5
Total
Current Assets
332.7
302.5
Property
& Equipment, Net
193.3
198.6
Goodwill
655.7
658.0
Other
Intangibles, Net
300.9
304.9
Other
Assets
57.3
58.2
Total
Assets
1,539.9
$
1,522.2
$
Liabilities
and Shareholders' Equity
Current
Liabilities:
Current
Maturities, Long-Term Debt
2.9
$
3.0
$
Accounts
Payable
132.9
135.2
Accrued
Liabilities
74.6
68.2
Due
to Metaldyne
2.7
2.6
Total
Current Liabilities
213.1
209.0
Long-Term
Debt
751.0
735.0
Deferred
Income Taxes
133.4
133.5
Other
Long-Term Liabilities
34.1
35.2
Due
to Metaldyne
4.3
4.3
Total
Liabilities
1,135.9
1,117.0
Total
Shareholders' Equity
404.0
405.2
Total
Liabilities and Shareholders' Equity
1,539.9
$
1,522.2
$
14
Condensed
Balance Sheet
(unaudited
- in millions, except per share amounts)
Q1
2005
Q1
2004
Net
sales
292.7
$
260.9
$
Cost
of sales
(227.2)
(196.8)
Gross
profit
65.5
64.1
Selling,
general and administrative expenses
(42.5)
(43.7)
Gain
(loss) on dispositions of property & equipment
0.2
(0.3)
Operating
profit
23.2
20.1
Other
expense, net
(19.3)
(16.6)
Income
before income taxes
3.9
3.5
Income
tax expense
(1.4)
(1.3)
Net
income
2.5
$
2.2
$
Basic
earnings per share
0.13
$
0.11
$
Diluted
earnings per share
0.13
$
0.11
$
Weighted
average common shares - basic
20.0
20.0
Weighted
average common shares - diluted
20.0
20.4
15
Condensed
Statement of Operations
Cash
Flow Highlights
(unaudited
- in millions)
2005
2004
Cash
provided by (used for) operating activities
(11.4)
$
21.6
$
Capital expenditures
(4.5)
(14.8)
Proceeds from sales of fixed assets
0.9
0.2
Acquisition of businesses, net of cash acquired
-
(5.5)
Cash
used for investing activities
(3.6)
(20.1)
Proceeds from senior credit facility, net
15.9
6.3
Payments on notes payable and other
(0.1)
(7.7)
Cash
provided by (used for) financing activites
15.8
(1.4)
Net
increase in cash and cash equivalents
0.8
$
0.1
$
16
For
the Three Months Ended March 31,
Cost
Reduction/Profit Improvement
Represents
a continuation of our
Mentioned
a $10 million run rate
Goal
has now expanded to
Are
now ready to expand the
Improve
earnings and cash flow
Make
the company more IPO
Inventory
reduction plan in place –
Stated
goal is to improve profits
Actions
are being formally rolled
No
cost area will be exempted
Roughly
½ people and ½ other
Will
focus on G&A/Selling/Indirect
Investigating
an SBU liquidation to
Utilization
of NOL
17
Q2
Bank Compliance
Leverage
covenant is 5.5x in Q2, 5.25x in Q3 and 5.0x in
Have
been close in each of the last two quarters – no
Steel
increases in 2005 cost the Company $75 to $100
Actively
managing working capital
Expect
to meet our Q2 leverage covenant
18
Guidance
Have
not given guidance historically
Aftermarket
business is not precisely predictable
ISG
businesses are all on positive trends
Rieke
continues to see market expansion
FSG
has stabilized but now needs higher sales levels as
19
Rieke
Packaging Systems
Lynn
Brooks
Group
President
Rieke
Packaging Systems
Consumer
Products
Core
Products
"Razor-blade"
model with strong operating leverage
Promising
growth prospects
21
Rieke
Packaging Systems
50%
of products IP-protected
Diverse
end markets
Leading
market shares
Benefiting
from industrial
Strong
growth drivers:
New
product launches
Bundling
and cross selling
International
business
New
plastic injection molding
Pass-through
on material
Accelerating
growth rate
22
Rieke
New Products
Target
market size is estimated at
36
new products introduced from
Average
concept to launch: 15
Margins
are similar to core
Capacity
in place
New
markets in food, beverage,
Highly
engineered products
23
Revenue
Opportunity & Awarded Business ($mm)
Major
Business Awards
Rieke
Customer Forecast – Remainder of 2005
Petroleum
– 5-10% growth in
Chemical
– Overall, double
Ag
Chem – Overall, double
Paints
– Overall, flat to 5%
Steel
Drums – Flat to down
Medical
– Flat
Ag
Chem – Flat
Steel
Drums – Flat to down
Plastic
Drum – 5% increase
Petroleum
– Flat to 2% growth
Paints
– Flat to down
North
America
Europe
24
Fastening
Systems & Industrial
Grant
Beard
Interim
Group President
Production
very good at
Reduced
past due orders from
Reduced
spending in all major
Inventory
grew through first
Notification
of steel price
Frankfort
Bolt-Making Comparison
26
Sales
up from budgeted levels despite challenging production
Significant
market share gains at Mark IV Automotive
Contribution
margins exceeded budget due to favorable customer
Inventory
levels increased in Q1 due to steel move to Republic and
2004
Actual
2005
Impact
2006
Impact
2007
Impact
2008
Impact
Status
Legacy
15.52
15.52
15.52
15.52
15.52
Bud
Inc.
0.82
0.82
0.82
0.82
Partially
awarded
Steel
Recoveries
0.73
1.15
1.15
1.15
1.15
B&E
Closure
0.33
0.5
0.5
0.5
Awarded
AGS
Standards
0.22
0.8
0.8
0.8
Awarded
TI,
ITT, Other
0.15
0.35
0.45
0.55
Partially
awarded
Curtis
Maruyasu
0.4
0.5
0.65
Partially
awarded
AMI
0.05
0.25
0.35
0.4
Highly
likely
AZ
Spacers, Net
0.6
2.25
3.1
Highly
likely
MartinRea
GMT900
0.15
0.45
0.53
Highly
likely
Total
Revenue
16.25
18.24
20.54
22.8
24.02
27
($
in millions)
New
Business Update
Record
incoming orders of $15.8 million
March
2005 record production month of 42.4k pieces per day
Production
for Q1 up 32% over 2004 average
Improved
productivity of 6.5% for the quarter over 2004
Incoming
business and total backlog reached record levels in Q1
Bookings
and Backlog
28
Drilling
activity at 4/8/05 shows 1,329 active rigs, represents 10%
Good
indication of future production
Engine
sales expected to remain strong especially on Climax engine
Projecting
engine sales in 2005 to be approximately 70% ahead of
Continue
to push product
29
During
Q1 experienced weak sales in
Sales
in Q2 expected to improve due to
Purchasing
initiatives implemented saving
Netcong,
NJ facility sold March 31, 2005.
Fiberglass
manufacturers enjoy sold-out
Finishing
Department
Laminator
30
Q1
2005 largest revenue
Major
turnarounds with: Exxon,
Canadian
operations expanding
Latin
America/Europe sales on plan in Q1 2005 - $647K vs. $418K in Q1
Plan
to grow business in UK through Novus Sealing and Mexico through
Signed
Tat Lee (former Flexitallic licensee) as our distributor for spiral
31
Revenue
strong for Q1 2005 with
Steel
more available but prices
March
was record
Secured
first order for EU acetylene
32
FMS
shipped record number of launchers in
LAW
next generation – Nammo version in
LAW
relocation to Pennsylvania – complete
Flexible
projectile line on track, requesting
33
Orders
continued strong for both Keo and
Sales
into medical market exceeded budget
Cost
of steel continues to increase
Implemented
second price increase in last six
New
product sales for Keo brand (ZErO Flute
ZErO
Flute Countersinks
KEO
Kounterbores
34
Cequent
Transportation Accessories
Ed
Schwartz
Group
President
Plymouth,
Michigan
Plymouth,
Michigan
Cequent
Towing
Products
Cequent
Towing
Products
Cequent
Trailer
Products
Cequent
Trailer
Products
Cequent
Australia
Cequent
Australia
Cequent
Consumer
Products
Cequent
Consumer
Products
Cequent
Electrical
Products
Cequent
Electrical
Products
Plymouth,
Michigan
Plymouth,
Michigan
Mosinee,
Wisconsin
Mosinee,
Wisconsin
Melbourne,
Australia
Melbourne,
Australia
Solon,
Ohio
Solon,
Ohio
Tekonsha,
Michigan
Tekonsha,
Michigan
Plymouth,
Michigan
Plymouth,
Michigan
Cequent
Towing
Products
Cequent
Towing
Products
Cequent
Trailer
Products
Cequent
Trailer Products
Cequent
Australia
Cequent
Electrical
Products
Cequent
Consumer
Products
Cequent
Consumer
Products
Cequent
Electrical
Products
Cequent
Australia
Plymouth,
Michigan
Plymouth,
Michigan
Mosinee,
Wisconsin
Mosinee,
Wisconsin
Melbourne,
Australia
Tekonsha,
Michigan
Solon,
Ohio
Solon,
Ohio
Tekonsha,
Michigan
Melbourne,
Australia
Manufacturing
– Goshen, IN;
Products
– Towing Products,
Distribution
– Installers,
Manufacturing
– Sheffield,
PA
Products
– Towing Products,
Distribution
– Mass
Manufacturing
– Wakerley,
Products
– Towing, Trailering,
Distribution
– Automotive
OE
Products
– Brake Controls,
Distribution
– Automotive
Manufacturing
– Tekonsha,
Manufacturing
– Mosinee, WI;
Products
– Trailer Products
Distribution
– Trailer
OEM,
LTM
Ended Mar. 31
2005
2004
Net
Sales .
$522.5
$458.0
Segment
Adjusted EBITDA
69
64
%
margin
13.2%
13.9%
37
Cequent
Operating Units
Cequent
Major Facilities
Goshen,
IN
South
Bend, IN
Mosinee,
WI
Juarez,
Mexico
Tekonsha,
MI
Plymouth,
MI
38
Cequent’s
Sales Mix
Cequent
Sales by Region
2005
(March 31, LTM) Total Cequent Net Sales . $522.5 Million
Cequent
Sales by Business Unit
Cequent
Sales by Product Group
Cequent
Sales by Distribution Channel
39
Channel
Strategic Plan - INSTALLER/WD
U.S.
RV Segment by Product Group
SOURCE:
RVIA
2004
U.S. RV Market ...... $14.0 billion
(Retail
Value)
Total
U.S. Towable RV Trailer Market
SOURCE:
RVIA
2004
U.S. Towable Trailer Market ... $5.8 billion
(Retail
Value)
SOURCE: Recreation
Vehicle Industry Association, Crove Capital Markets Research
NOTE: Does
not include conversion vehicle shipments; dotted line represents a normalized
RV
Shipment Historical Volume Growth
1991-2005
CAGR . 5.8%
While the U.S. economy was on a roller coaster throughout
Perhaps the best news of all for the RV industry was the
Total
Shipments
40
Channel
Strategic Plan - COMMERCIAL
SOURCE:
Econstats.com
SOURCE:
Energy Information Administration, conventional regular gasoline prices, U.S.
Gulf Coast delivered.
The
U.S prime lending rate is the
The
U.S. population by age group
Growth
in the high income age
Regular
unleaded gasoline prices
Gasoline
prices are not perceived
SOURCE:
U.S. Census Bureau.
Driving
Age Population Growth is Driving Fleet Growth and Increased Consumer
spending
Regular
Unleaded Gasoline Prices Have Been on the Rise
U.S.
Prime Lending Rate
(U.S.
population)
U.S.
Prime Lending Rate Feb 2004 . 6.0%
U.S.
Wholesale Price of Unleaded Regular Gas Jan-05 . $1.41
41
Channel
Strategic Plan - COMMERCIAL
U.S.
Marine Segment by Type of Product
2004
Total Unit Sales ....... 838,500
Total
Recreational Boats Owned in the U.S.
SOURCE:
NMMA
Boat
Trailer Unit Sales
SOURCE:
NMMA
SOURCE:
NMMA
Boat
trailer sales peaked in 1995 and have declined
2002
showed signs of a cyclical rebound in trailer sales.
The
total estimated number of boats owned has
The
type of watercraft owned in the U.S is broad,
All
of the marine product segments require a towing,
1991-2004
CAGR ........ 0.6%
1991-2004
CAGR ........ 0.1%
42
Channel
Strategic Plan - COMMERCIAL
SOURCE:
NMMA, 1991-2002 Annual Sailing Business Review.
Outboard
Boats Sales
Inboard
Boat Sales
Stern
Drive Boat Sales
1991-2004
CAGR ........ 0.8%
1991-2004
CAGR ........ 5.7%
1991-2004
CAGR ........ –0.2%
The
marine segment consists of a
Most
all of these boats require the use
The
demand trend is mixed due to
In
general, inboard boat sales and
Outboard
boat sales and stern drive
Personal
watercraft sales peaked in
The
marine segment trend generally
Personal
Watercraft Sales
1991-2004
CAGR ........ 1.2%
Sailboat
Sales
1991-2004
CAGR ........ 3.9%
43
Channel
Strategic Plan - COMMERCIAL
U.S.
Equestrian(1)
Population
SOURCE:
Census of Agriculture 1992 and 2002
(horses
in
CAGR
1992-2002...
12.2%
U.S.
Industrial Trailer Production
SOURCE:
Trailer Body Builders
(Industrial
CAGR
1997-2002...
- 1.7%
Equestrian
trailer industry has very few published
The
U.S. trailer production cycle over the past six years
The
light industrial and utility trailer segments generally
U.S.
Gross Domestic Product YOY % Change
SOURCE:
U.S. Census Bureau
44
Channel
Strategic Plan - COMMERCIAL
North
American Agricultural Equipment Demand
SOURCE: Freedonia
SOURCE: U.S.
Census Bureau
U.S.
Farm Machinery and Equipment Shipments
($
millions)
The
three largest agricultural equipment buying regions of the World are Western
Europe, Asia-Pacific and North
Fredonia
predicts demand in North America for agricultural equipment will grow at an
average annual rate of 3.5% over
Historically,
agricultural equipment demand in North America has grown more slowly at 1.0%,
however, this
A
recent positive indicator, U.S. farm machinery and equipment shipments are on
the rise, 10% higher in January over a
CAGR
1989-2004...
1.9%
2004-2009...
3.3%
Forecast
($
millions)
45
Cequent
Market Share - Towing
Cequent
Towing
Products
63%
Cequent
Towing
Products
49%
Source: Internal
company estimates
46
Cequent
Market Share - Trailer
Cequent
Trailer
Products
61%
Cequent
Trailer
Products
49%
Jacks
Couplers
Source: Internal
company estimates
47
Cequent
Market Share - Electrical
Cequent
Electrical
Products
63%
Cequent
Towing
Products
49%
Source: Internal
company estimates
48
Cequent
Market Share - Consumer
Cequent
Consumer
Products
37%
Cequent
Consumer
Products
31%
Loading
Ramps
Tie
Downs & Stretch Cords
Source: Internal
company estimates
49
Cequent
Towing: Extensive Product Portfolio
Standard
Hitch
Storage
Box
50
Cequent
Towing: Channels of Distribution
RV
Distributors
The
Reese brand is more important in this channel. The
Auto
Aftermarket Installer/Distribution Channel
The
Draw-Tite and Hidden Hitch brands operate through a
51
Cequent
Towing: Sales by Channel
Estimated
Sales by Channel
Auto
Installer/
Distributor,
52
Cequent
Trailer: Extensive Product Portfolio
Ramps
Bull
Dog Couplers
Bull
Dog Jacks
Swing
Away
53
Cequent
Trailer: Sales Breakdown
54
Cequent
Consumer: Product Portfolio
Load:
Champ
ramps and Ramparts ramp kits provide sturdy,
Anchor:
A
full line of anchor systems and hardware to anchor
Secure:
A
complete line of tie downs, tarp straps, stretch cords
Carry:
Highland
products which expand carrying capacity
Organize:
A
wide range of products to organize vehicle and garage,
Protect:
Keeps
vehicles looking SHOWROOM NEW with Cargo
55
Cequent
Consumer: Channels of Distribution
Estimated
Sales by Channel
Estimated
Sales by Product
56
Cequent
Electrical: Product Portfolio
Inertial
Brake
Control
Breakaway
Kits
Brake
Control
Harness
Proportional
Brake
Control
Brake
Hardware
T-One
Connector
Wiring
Harness
5,
6, 7
Way
Connectors
Trailer
Lighting
Tail-light
Wiring
Kits
Interior
and Exterior Illumination Products
Electrical
Accessories
Locks
and Latches
57
Cequent
Electrical: Channels of Distribution
Estimated
Sales by Channel
Estimated
Sales by Product
58
Cequent
Australia: Product Portfolio
Ladder
Rack System
Fishing
Rod
Locking
Arms
Snow
Ski Diagonal
Locking
Arms
Bike
Carrier
Tie
Downs
Luggage
Pods
Luggage
Pods
Cargo
Barriers
Hitch-Mounted
Bike
Rack
Tow
Bar
Weight
Distribution
59
Cequent
Australia: Sales by Product
Estimated
Gross Sales by Product
60
Wrap-Up
Events
beyond our control are impacting the Company
Steel
End
market demand – Cequent
We
are dealing with these events on a number of fronts
Cost
reductions – continuing the journey
Price
increases
Customer/market
tough decisions
We
appreciate your support and thank you for attending
Q&A?
61
Q1 2004
increase of $2.6 million
compared to Q1 2004
increase of $3.1 million
compared to Q1 2004
per share vs. Q1 2004
net income of $2.2 million or
$0.11 per share
offs, non-cash losses on sale-leaseback of property and equipment,
legacy restricted stock award expense, and write-off of equity offering costs.
the quarter – most
direct impact on Cequent and
Fastening Systems
customers via pricing
debt and receivables
securitization compared to $786.0
million at 12/31/04 and $792.0 million at
3/31/04
accounts receivable balances
at 3/31/05 as a result of increased
sales in Q1 2005
$140.6 million
adjusted for steel
towing products in wholesale
distributor and
installer markets after
strong E.O.P. in Q4 2004
all channels, especially retail
$1.4 million to $16.9 million
million (8.7% of sales)
million, up 12.2% compared to Q1
2004
approximately $4.0% while new
specialty
dispensing product revenues
increased $4.3 million in the quarter
dispensing products within Q1 2005
increased $1.3 million to $7.3 million
(21.3% of
sales)
increased almost 20% compared to
the same period
a year ago
$5.5 million to $44.2 million
remained strong in the quarter
quarter increased 8.9% compared to
prior
year
$0.8 million, a $2.4 million
improvement from Q1
2004
$2.3 million compared to $0.1 million
in Q1 2004
reached targeted production levels
at Frankfort and
Wood Dale
million, increase of 18.4%
increased 10.7% to $8.5 million
was $10.4 million compared to
$9.5 million in Q1
2004
facility consolidation and
restructuring
activities decreased
$0.6 million
expect continued momentum
across 2005
impacted by lower capex
and non-recurring activity, will
drive substantial debt reduction by year
end
with demand in end
customer markets – especially within
the Cequent SBU’s
CEO & CFO
businesses
Initiatives
game plan
target in Cequent in the earnings
call
approximately $13 million
program across TriMas:
performance
ready
focus on Cequent & FSG
on a $25 million run rate basis
out in Q2 with implementation
underway and
continuing
throughout Q3
costs
Headcount
drive balance sheet strength
Q4
way to live!
million in liquidity (e.g.
higher inventory and receivable
levels, lower payables levels and lower
EBITDA)
(receive orders on day “1”
and ship on day “2”) – no
backlog
we work through the
backlog at Lake Erie. Monogram
continues to redefine itself with
new products and a
record backlog.
recovery
facility in China to supply
specialty
dispensing products
economics – metal and plastic
resins
$300 million and is growing at 9%
annually
late 2002 through Q1 2005
months
products
personal care and pharmaceutical
2005
digit growth
digit growth
Specialties
Frankfort and Wood Dale in Q1
– Combined daily
average of
281,000 lbs.
over $7 million in January to
under $2 million at
end of March
categories
quarter, will be adjusted during
Q2
reduction in Q1, no customer
effect until Q3
environment at GM
and Ford
recoveries relative to
premium steel costs
strategic build of
finished goods for new business growth
improvement over
prior 12 months
line
2004
development in Waukesha
market for VHP and
Intermediate parts
January combined with depressed material
margins, resulting in shortfalls in both
revenue and EBITDA
further selling price increases and
business growth from export and new
business opportunities
$400K per year
Will reduce majority of
non-recurring
expenses beginning in May.
situation – production at an all time
high
level
quarter in Lamons’ history
Premcor, BP, Citgo, Dow and
Bayer
into refining industry – new
contracts with
Imperial Oil and
North Atlantic Refining
2004
Auge
wound
and RTJ gaskets in Far East Asia
order strength continuing into Q2
continued to rise in Q1. Indication
of prices being flat or giving back
for Q2 deliveries
production/shipping month over last
five years with over
30,000 units
produced
products and DOT/ISO LHP
cylinders in
Europe
Q1 2005 - 7,310
prototype stages, Talley version in
design
stage and should be available for review in
Q3
2005 assembly requirements in
August at
Amarillo, move equipment and residual
inventory to Johnstown
in Q3, first
production order scheduled in December
$7 million for 2006
Richards Micro-Tool in Q1 2005
(>$250K)
months
Countersinks, Kounterbores) were
12%
above budget
Huntsville, ON; Elkhart, IN
Functional Vehicle Accessories
and Cargo
Management
Solutions
Distributors, Automotive OEM,
and retail
segments
Functional Vehicle Accessories
and Cargo
Management
Solutions
Merchants, Auto Specialty,
Program/Buying Groups
Brisbane, Sydney, Australia
vehicle accessory, and cargo
management
solutions
and
Aftermarket
Breakaway Systems, Brake
Accessories, Electrical
Converters
OEM, Trailer OEM, Marine,
RV, Agricultural/Utility, and
Retail
segments
MI;
Albion, IN;
Reynosa, MX
Juarez, MX
and Accessories
Wholesale-distributor, and
retail segments
Market
Overview - Recreational Vehicle Segment
shipment trend, which was calculated using regression analysis.
much of 2003, the RV industry performed solidly. Shipments to
retailers
of all RVs rose 3.2% to 320,800 units in 2003—the
second best year in
a quarter century. Towable RVs grew 3.3%
to 258,900 units, the best total
for these products in 27 years.
Motor home shipments also increased, rising
2.5% over
the prior year on shipments to retailers of 61,900 units.
increase in dollar
values of shipments. Total retail value of all
RV shipments in 2003 rose an
impressive 9.8% to set an all-
time re c o rd high of $12 billion dollars.
The continued strength
in RV shipments as demonstrated by these growth
trends
reflects the strong appeal of the RV lifestyle to a broadening
consumer base.
(in thousands)
Market
Overview – RV Segment Demand Drivers
lowest it has been in the past six
years
providing low financing rates
for major capital purchases such as
recreational vehicles.
statistics indicate that the high
income
age groups from 40 years
old to 60 years olds, baby boomers,
have
increased by over 7.6 million
since 1998.
group is a positive factor in
supporting
recreational vehicle and
aftermarket accessory product
consumer demand.
have remained high through most
of 2004,
somewhat, offsetting the
positive effects of low interest rates.
to be a major deterrent in buying a
new recreational vehicle due to the
expectation for gasoline prices to
once again stabilize to a lower price
due to the cyclicality of oil
prices.
Market
Overview - Marine Segment
steadily until 2001, growing
slightly in 2002.
increased over the past eleven
years at slow rate of 0.6%
annually.
including kayaks, outboard
power boats, canoes,
personal watercrafts, stern drive boats, inboard
boats,
sailboats and jet boats.
trailer or accessory
product to transport, providing
additional demand for towing and trailer
products.
Market Overview - Marine Segment
Volume Drivers
mixture of different boat types such as
outboard engine boats, inboard
engine boats, stern drive boats,
personal watercraft and sail boats.
of towing and trailer products.
varying trends with boats sales.
sailboat sales have been the strongest
among all boats types with a 7.1%
annual growth rate and a 6.8% annual
growth rate, respectively.
boats sales have basically been flat
over
the past twelve years.
1995 and have dropped more than
50% below
the peak volume by 2002.
moves with the economy due to luxury
product status of the product.
Market
Overview - Cequent’s Other Market Segments
(1)
Horses and ponies and farms reporting horses and ponies.
thousands)
trailers in units)
statistics to track demand,
however, the U.S. farm
population of horses has increased at an annual rate
of
1.7% over the past ten years providing an indicator of
corresponding
growth in the equestrian trailer market.
has followed GDP
growth, which bodes well for trailer
production and suppliers and should
lead to strong
growth from a depressed production low in 2001 and
2002.
follow the same
trends as light vehicle aftermarket
macro demand as most of these consumers
are using
these trailers for personal use hobbies.
Market
Overview - Agricultural Equipment Segment
America accounting for 88% of total World
demand.
the next five years.
measurement in growth does not account for peak demand in the
mid-1990’s.
seasonally adjusted low in April
2003.
product mix is oriented
towards heavy duty hitches (i.e., fifth
wheel), core-line hitches, and
traditional accessories. Product
line sales generated through this channel
are estimated as
follows:
network of 60 two-step
distributors and over 450 independent
installer shops (“Hitch
Pros”) which carry the Draw-tite and
Hidden Hitch brands as an
exclusive, or at least preferred,
brand. A sales breakdown to the auto
aftermarket channel by
product type include:
46%
Tongue
safe
loading of motorcycles, ATVs, lawn tractors and
other
equipment.
heavy
loads, attach tie downs, truck caps, toolboxes,
camper
shells, over-the-rail bedliners, tonneau covers, CB
antenna
mounts, cab extenders and more.
and
bungee cords to meet all securing needs. Products are
available
in a wide number of styles to match specific use.
include
rooftop, rear and hitch mount carriers for
luggage,
bikes and construction.
including
the new award winning Space Master cargo
organizer,
truck and storage nets, cargo bars, and a
complete
line of garage organization products.
Liners,
Floor Guards, All Weather Floor Mats, Hump
Liners,
and Splash Guards. Custom fit vehicle protection
for
trucks, cars, vans, and SUV’s.
