Fourth Quarter and Full Year 2011 Earnings Presentation February 27, 2012 NASDAQ • TRS
Safe Harbor Statement Any “forward-looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, the Company’s substantial leverage, liabilities imposed by the Company’s debt instruments, market demand, competitive factors, supply constraints, material and energy costs, technology factors, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the most recent Company’s Annual Report on Form 10-K, and in the Company’s Quarterly Reports on Form 10- Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. 2
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3
Opening Remarks – 2011 Results • Playbook in place continues to enhance TriMas’ value ̶ Established operating processes are maximizing results ̶ Great execution of growth and productivity programs ̶ Strategic plans in place to maximize portfolio • Double-digit sales and earnings growth despite choppy markets ̶ Sales up 20% vs. 2010; record year for several businesses ̶ Diversified business portfolio driving positive results ̶ Ongoing “restructuring” to ensure best cost producer position • Improved earnings driven by better operating performance and lower interest costs • Achieved target level of working capital as a percentage of sales • Continued focus on free cash flow and debt reduction Delivering on our commitments, while investing in future growth. 4
Arminak Acquisition • Acquired 70% of Arminak & Associates for approximately $64 million • Designer and supplier of foamers, lotion pumps, fine mist sprayers and other packaging solutions • Complementary customer base provides Rieke greater access to the cosmetic, personal care, beauty aid and household product markets • Combination creates superior product portfolio, enhanced design and innovation capabilities, and improved global manufacturing flexibility • Generated approximately $60 million in revenue for 12 months ended December 31, 2011 – track record of excellent growth • Expect revenue and supply chain synergies for both businesses Expanding our product portfolio to better meet our customers’ needs. 5
Financial Highlights
Fourth Quarter Summary • Sales increased 22% vs. Q4 2010 • Investments in new products, geographic expansion and bolt-on acquisitions driving positive results • Operating profit increased more than 40% with an operating profit margin improvement of 160 basis points as compared to Q4 2010 – Five of the six segments reported higher operating profit margins • Productivity efforts continued to fund growth initiatives • Q4 income and EPS was negatively impacted by higher income tax expense • Cost of tax restructuring efforts in Q4 2011 versus tax benefit of reversal of certain valuation allowances in Q4 2010 • Continued focus on cash flow and debt reduction 7 (1) “Special Items” for each period are provided in the Appendix. (2) Free Cash Flow is defined as Cash Flows from Operating Activities less Capital Expenditures. ($ in millions, except per share amounts) ( f ro m co ntinuing o perat io ns) Q4 2011 Q4 2010 % Chg Revenue 259.7$ 212.5$ 22.2% Operating Profit 26.4$ 18.6$ 41.6% Excl. Total Special Items (1) , Operating Profit would have been: 26.9$ 18.6$ 44.4% Excl. Total Special Items (1) , Operating Profit margin would have been: 10.4% 8.8% 160 bps Income 7.1$ 7.6$ -6.6% Excl. Total Special Items, Income would have been: 8.7$ 7.6$ 14.0% Diluted earnings per share 0.20$ 0.22$ -9.1% Excl. Total Special Items (1) ,diluted EPS would have been: 0.25$ 0.22$ 13.6% Free Cash Flow (2) 51.2$ 22.6$ 126.9% Debt 469.9$ 494.7$ -5.0% Cash and Cash Equivalents 88.9$ 46.4$ 91.6%
2011 Full Year Summary • Sales increased 20% vs. 2010 with growth in all segments • Organic growth approximately 14% as compared to 2010 • Investments in new products, geographic expansion and bolt-on acquisitions driving positive results • Productivity efforts continued to fund growth initiatives and offset commodity inflation • Maintained operating profit margin despite a less favorable sales mix and investments in growth • Income and EPS (excl. Special Items) increased approximately 40% compared to 2010 due to increased sales levels and reductions in interest expense • Continued focus on cash flow and debt reduction 8 (1) “Special Items” for each period are provided in the Appendix. (2) Free Cash Flow is defined as Cash Flows from Operating Activities less Capital Expenditures. ($ in millions, except per share amounts) ( f ro m co ntinuing o perat io ns) FY 2011 FY 2010 % Chg Revenue 1,084.0$ 902.5$ 20.1% Operating Profit 131.3$ 109.3$ 20.1% Excl. Total Special Items (1) , Operating Profit would have been: 131.8$ 109.3$ 20.6% Excl. Total Special Items (1) , Operating Profit margin would have been: 12.2% 12.1% 10 bps Income 50.8$ 38.9$ 30.5% Excl. Total Special Items, Income would have been: 54.8$ 38.9$ 40.9% Diluted earnings per share 1.46$ 1.13$ 29.2% Excl. Total Special Items (1) ,diluted EPS would have been: 1.58$ 1.13$ 39.8% Free Cash Flow (2) 63.2$ 73.1$ -13.5% Debt 469.9$ 494.7$ -5.0% Cash and Cash Equivalents 88.9$ 46.4$ 91.6%
Working Capital Significant sales growth and geographic expansion adds complexity – process improvements ongoing. 9 Comments: • Achieved long-term target of approximately 13% of sales at year end • Significant growth and global expansion adds complexity • Made decision to increase inventory levels to improve fill rates and meet customer needs in select businesses 17.2% 14.3% 12.5% 12.7% 2008 2009 2010 2011 Operating Working Capital as a % of Sales
10 • 2011 refinance efforts have significantly reduced rates and extended maturities • Reduced interest expense by $7.4M in 2011, as compared to 2010 • Term loan at historically low rate T o tal Deb t L e v e rage Ra ti o ($ in millions) Capitalization Total Indebtedness and Leverage Ratio As of December 31, 2011, TriMas had $247.7 million of cash and available liquidity under its revolving credit and accounts receivable facilities. As of 12/31/2011 Outstanding Balance Rate Maturity Term Loan(1) $224M LIBOR plus 3.00% (LIBOR floor of 1.25%) 2017 Revolving Credit Facility(1) $0 LIBOR plus 3.25% 2016 Senior Secured Notes $246M 9 ¾% 2017 A/R Facility Borrowings(2) $0 LIBOR plus 1.50% 2015 (1) Term Loan and Revolving Credit Facility were refinanced in June 2011 (2) A/R Facility was amended in September 2011 (including A/R Facility) $754 $658 $630 $515 $495 $470 1x 2x 3x 4x 5x 6x $200 $300 $400 $500 $600 $700 $800 YE 06 YE 07 YE 08 YE 09 YE 10 YE 11 Total Indebtedness Leverage
Segment Highlights
Packaging Results: • Q4 2011 sales increased as a result of the Innovative Molding acquisition and increased specialty systems sales, partially offset by lower industrial closure sales • Q4 2011 operating profit increased primarily as a result of higher sales levels, while Q4 margin declined due to the impact of Innovative resulting in a less favorable sales mix and higher SG&A costs • FY 2011 sales improved as a result of Innovative and favorable currency exchange • FY 2011 operating profit decreased as a result of Innovative acquisition and integration costs, as well as a less favorable product sales mix, partially offset by productivity and lean projects ($ in millions) Key Initiatives: • Target specialty dispensing and closure products in higher growth end markets – Personal care and cosmetic – Food, beverage and nutrition – Pharmaceutical and medical • Increase geographic coverage efforts in Asia and Europe • Leverage bolt-on acquisitions to achieve synergies • Increase low-cost country sourcing and manufacturing • Ensure new products continue to have barriers to entry 12 Net Sales Q4-10 Q4-11 $37.6 $47.4 26.1% 2010 2011 8.2% $171.2 $185.2 Operating Profit Q4-10 Q4-11 $10.2 $10.9 6.7% 2010 2011 -1.3% $48.7 $48.1
Energy ($ in millions) Results: • Q4 2011 and FY 2011 sales increased as a result of the South Texas Bolt & Fitting (STB&F) acquisition in November 2010, market share gains, incremental sales from newer branch facilities and improved customer demand • STB&F acquisition exceeding all expectations • Operating profit and margin level in both periods increased due to the leverage gained by higher sales levels, partially offset by a less favorable sales mix and higher SG&A in support of growth initiatives Key Initiatives: • Globally expand business capabilities to support customers • Continue to capitalize on synergies related to acquisitions • Increase sales of specialty gaskets and bolts • Capture larger share of new markets such as OEM, Engineered & Construction, power generation and pulp/paper • Maximize supply chain for cost and delivery 13 Net Sales Q4-10 Q4-11 $34.7 $41.0 18.1% 2010 2011 29.2% $129.1 $166.8 Operating Profit Q4-10 Q4-11 44.3% 2010 2011 34.3% $3.3 $4.8 $14.7 $19.7
Aerospace & Defense Key Initiatives: • Expand aerospace fastener product lines to increase content and applications per aircraft • Capitalize on expectations for continued ramp-up of large frame, composite aircraft • Continue to expand sales globally • Drive ongoing lean initiatives to lower working capital and reduce costs • Leverage and further develop existing defense customer relationships • Consider complementary bolt-on acquisitions ($ in millions) Results: • Q4 2011 sales decreased as the improved demand for blind bolts and temporary fasteners from aerospace distribution customers was more than offset by significantly lower sales in the defense business • Q4 2011 operating profit declined primarily due to lower defense sales levels, while margin improved due the higher sales mix of the more profitable aerospace business • FY 2011 sales increased due to improved demand from aerospace distribution customers, partially offset by lower sales in defense business • FY 2011 operating profit increased slightly as higher profits generated by the aerospace business more than offset the reduction in profitability in the defense business and higher SG&A costs 14 Net Sales Q4-10 Q4-11 $20.5 $18.4 -9.9% 2010 2011 $73.9 $78.6 6.3% Operating Profit Q4-10 Q4-11 -8.5% 2010 2011 3.0% $5.1 $4.6 $ 8.1 $18.6
Engineered Components ($ in millions) Key Initiatives: • Expand complementary product lines at well-site • Grow natural gas compression products and capitalize on shale opportunities • Develop additional capabilities of cylinder business to capture new markets • Continue to reduce costs and improve working capital turnover • Continue to expand product offering and geographies Results: • Q4 and FY 2011 sales increased due to improved demand and increased market share for industrial cylinders, engines, compressors and other well-site content • Operating profit increased due to higher sales volumes, increased absorption of fixed costs and productivity efforts, partially offset by higher SG&A costs supporting the increased sales levels • 2011 operating profit margin improved approximately 460 basis points compared to 2010 • Specialty fittings and precision cutting tool businesses were sold in Q4 2011 and classified as discontinued operations 15 Net Sales 2010 2011Q4-10 Q4-11 $35.2 $48.5 37.8% 55.2% $113.0 $175.4 Operating P ofit Q4-10 Q4-11 113.6% 2010 2011 118.2% $4.0 $8.6 $12.7 $27.6
Cequent (Asia Pacific & North America) ($ in millions) $46.4 Results: • Q4 and FY 2011 sales in North America improved due to increased sales within all their major channels resulting from market share gains and new product introductions • North America operating profit and margin level increased due to higher sales levels and productivity initiatives • Q4 and FY 2011 sales in Asia Pacific increased due to new business awards in Thailand and Australia, the Q4 2011 acquisition in South Africa and the impact of favorable currency exchange • Q4 and FY 2011 Asia Pacific operating profit increased as a result of favorable currency exchange, higher sales volumes and productivity projects, partially offset by higher SG&A costs related to consolidation of manufacturing facilities Key Initiatives: • Continue to reduce fixed costs and simplify the businesses • Improve processes for better customer service and support • Leverage strong brands for additional market share and cross-selling • Expand sales in new, growing geographies • Continue to reduce working capital requirements Asia Pacific North America 16 Asia Pacific North America $19.0 $26.9 $76.0 $94.3 $65.6 $77.5 $339.3 $383.7 Net Sales Q4-10 Q4-11 $104.4 2010 2011 $415.3 $478.0 15.1% $84.6 23.4% $2.6 $4.2 $12.1 $13.9 -$0.3 $2.6 $27.8 $33.3 Operating Profit (1) Q4-10 Q4-11 $6.8 196.9% 2010 2011 18.2% $2.3 $39.9 $47.2 (1) “Special Items” for each period are provided in the Appendix.
2011 Summary • Strong organic growth through market share gains, product innovation, geographic expansion and increased end market demand • Acquisitions ahead of schedule with enhanced synergies and growth • Improved operating leverage and capital structure • Successfully refinanced and amended debt – strong capital position through 2016 • Working capital provides ongoing opportunity to increase efficiency • Continuous productivity initiatives fund investments for long-term growth Continue momentum to drive positive results. 17
Outlook and Summary
2012 Outlook As of 2/27/12 Headwinds Tailwinds Sales Growth 7% to 10% European economic environment, currency exchange New products, new markets, share gains, acquisitions Earnings Per Share, diluted $1.75 to $1.85 Restructuring and acquisition costs, new long- term incentive plan Productivity and fixed cost leverage, interest cost reduction, tax rate Free Cash Flow(1) $40 to $50 million Cash tax increase (NOL expiration), capital investments Incremental earnings, less working capital use (1) 2012 Free Cash Flow is defined as Cash Flow from Operating Activities less Capital Expenditures. 2012 outlook in line with our strategic aspirations. 19
Strategic Aspirations Strategic aspirations are our foundation for 2012. 20 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fund growth • Grow earnings faster than revenue growth • Continue to decrease leverage ratio • Strive to be a great place to work
• New aircraft development and production ramp-up • Global sales expansion, including China • Expansion of product range for composite aircraft applications • New specialty dispensing and closure systems for consumer applications • Growth in Asian markets • Recent bolt-on acquisition synergies • New branch ramp-up (U.S. and non-U.S. based) • Growth in specialty and engineered products • Pursuit of opportunities in Brazil • New cylinder applications (fire suppression, cell phone towers, mining, ISO small high pressure) • Export opportunities • Additional well-site content (electronics, gas compression products) • Natural gas compressor packaging and shale field opportunities • OEM wins for engineered, heavy duty trailer products • Thailand-based automotive OEM wins • Cargo management and towing products share gains at large retailers 2011 commercial successes and investments position us for sustainable growth in 2012 and beyond. Growth Momentum 21
Productivity Initiatives 22 Continuous productivity across all businesses and functional areas drives efficiency and funds growth. • 3%+ total gross cost productivity in 2012 plans • Global sourcing group expanding in Mexico, Brazil and India • Lean initiatives embraced across the businesses • Productivity initiatives and kaizen events taking place in all functional areas • Recent emphasis on new high-efficiency machinery • Ongoing restructuring to ensure best cost producer • Continuing to expand flexible, low-cost manufacturing footprint - Mexico, India, China and Thailand, as well as consolidation in Australia
TriMas Value Proposition Growth > Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 23 Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value X X • Multiple projects in all businesses • Geographic • Product • Customer penetration • Acquisitions • Services Stability • Energy • Aerospace • Industrial • Consumer • Agricultural • Geographic diversity • Customer diversity Funds Growth & Margin Expansion • Rationalization • Optimization of global supply chain • Lean initiatives and kaizen events • Best cost position • Purchasing efficiencies • Manufacturing efficiencies = • Earnings growth > sales growth • Strong cash flow dynamics • Deleverage • Increased ROIC
Questions & Answers
Appendix
2012 Additional Assumptions 2012 Estimates Interest expense $42 - $44 million Capital expenditures 3% - 4% of sales Tax rate 33% - 34% 26
Condensed Consolidated Balance Sheet (Dollars in thousands) 27 December 31, December 31, 2011 2010 Assets Current assets: Cash and cash equivalents............................................................. 88,920$ 46,370$ Receivables, net............................................................................ 135,610 111,380 Inventories..................................................................................... 178,030 155,980 Deferred income taxes................................................................... 18,510 34,500 Prepaid expenses and other current assets...................................... 10,620 6,670 Assets of discontinued operations held for sale................................ - 30,360 Total current assets.................................................................... 431,690 385,260 Property and equipment, net.............................................................. 159,210 149,290 Goodwill........................................................................................... 215,360 205,890 Other intangibles, net........................................................................ 155,670 159,910 Other assets.................................................................................... 24,610 25,370 Total assets............................................................................... 986,540$ 925,720$ Liabilities and Shareholders' Equity Current liabilities:.............................................................................. Current maturities, long-term debt................................................... 7,290$ 17,730$ Accounts payable.......................................................................... 146,930 124,390 Accrued liabilities.......................................................................... 70,140 66,600 Liabilities of discontinued operations................................................ - 5,710 Total current liabilities................................................................. 224,360 214,430 Long-term deb ................................................................................. 462,610 476,920 Deferred income taxes...................................................................... 64,780 65,440 Other long-term liabilities................................................................... 61,000 56,610 Total liabilities............................................................................ 812,750 813,400 Total shareholders' equity............................................................ 173,790 112,320 Total liabilities and shareholders' equity........................................ 986,540$ 925,720$
Capitalization 28 December 31, December 31, 2011 2010 Cash and Cash Equivalents……………………………..………………… 88,920$ 46,370$ Term loan…………………………………………………. 223,870 248,950 Revolving credit facilities……………………………….. - - Non-U.S. bank debt and other……………………….. 140 290 224,010 249,240 93/4% senior secured notes, due December 2017………………………………………………………………………………. 245,890 245,410 A/R Facility Borrowings………............................................................ -$ -$ Total Debt………………………...………………………...………………………… 469,900$ 494,650$ Key Ratios: Bank LTM EBITDA……………………………………………………………………………….……………………………………… 176,380$ 161,830$ Interest Coverage Ratio………………………………………………………………… 4.37 x 3.10 x Leverage Ratio…………………………………………………………………... 2.67 x 3.06 x Bank Covenants: Minimum Interest Coverage Ratio………………………………………………………………… 2.50 x 2.00 x Maximum Leverage Ratio………………………………………………………………………………… 4.00 x 5.00 x (Unaudited, dollars in thousands) As of December 31, 2011, TriMas had $247.7 million of cash and available liquidity under its revolving credit and accounts receivable facilities.
Consolidated Statement of Operations (Dollars in thousands) 29 Three months ended Twelve months ended 2011 2010 2011 2010 Net sales................................................................................. 259,650$ 212,510$ 1,083,960$ 902,460$ Cost of sales............................................................................ (184,000) (150,260) (766,260) (631,410) Gross profit........................................................................... 75,650 62,250 317,700 271,050 Selling, general and administrative expenses.............................. (49,340) (43,020) (186,520) (160,190) Net gain (loss) on dispositions of property and equipment............ 90 (590) 140 (1,520) Operating profit...................................................................... 26,400 18,640 131,320 109,340 Other expense, net: Interest expense.................................................................... (10,110) (12,050) (44,480) (51,830) Debt extinguishment costs..................................................... - - (3,970) - Other expense, net................................................................ (1,960) (260) (3,130) (1,080) Other expense, net............................................................. (12,070) (12,310) (51,580) (52,910) Income from continuing operations before income tax expense..... 14,330 6,330 79,740 56,430 Income tax benefit (expense).................................................. (7,200) 1,300 (28,930) (17,500) Income from continuing operations............................................. 7,130 7,630 50,810 38,930 Income (loss) from discontinued operations, net of income taxes.. 6,120 (1,940) 9,550 6,340 Net income.............................................................................. 13,250$ 5,690$ 60,360$ 45,270$ Earnings (loss) per share - basic: Continuing operations............................................................ $ 0.21 0.23$ $ 1.48 1.15$ Discontinued operations......................................................... 0.18 (0.06) 0.28 0.19 Net income per share............................................................. $ 0.39 0.17$ $ 1.76 1.34$ Weighted average common shares - basic 34,437,097 33,852,165 34,246,289 33,761,430 Earnings (loss) per share - diluted: Continuing operations............................................................ $ 0.20 0.22$ $ 1.46 1.13$ Discontinued operations......................................................... 0.18 (0.06) 0.27 0.18 Net income per share............................................................. $ 0.38 0.16$ $ 1.73 1.31$ Weighted average common shares - diluted 34,961,772 34,561,391 34,779,693 34,435,245 December 31, December 31, (unaudited)
Consolidated Statement of Cash Flow (Dollars in thousands) 30 2011 2010 Cash Flows from Operating Activities: Net income......................................................................................... 60,360$ 45,270$ Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition impact: Gain on dispositions of businesses and other assets........................... (10,380) (8,510) Depreciation.................................................................................... 25,940 23,640 Amortization of intangible assets....................................................... 14,530 14,100 Amortization of debt issue costs........................................................ 2,910 2,960 Deferred income taxes...................................................................... 12,680 12,500 Non-cash compensation expense...................................................... 3,510 2,180 Excess tax benefits from stock based compensation.......................... (3,980) (600) Loss on extinguishment debt............................................................. 3,970 - Increase in receivables...................................................................... (21,420) (17,190) Increase in inventories...................................................................... (16,840) (12,820) Increase in prepaid expenses and other assets................................... (890) (600) Increase in accounts payable and accrued liabilities............................ 25,870 31,740 Other, net........................................................................................ (450) 2,290 Net cash provided by operating activities, net of acquisition impact.... 95,810 94,960 Cash Flows from Investing Activities: Capital expenditures......................................................................... (32,620) (21,900) Acquisition of businesses, net of cash acquired.................................. (31,390) (30,760) Net proceeds from disposition of businesses and other assets............. 38,780 14,810 Net cash used for investing activities............................................... (25,230) (37,850) Cash Flows from Financing Activities: Proceeds from borrowings on term loan facilities................................. 269,150 - Repayments of borrowings on term loan facilities................................ (294,370) (14,660) Proceeds from borrowings on revolving credit facilities and accounts receivable facility ……………………………………………………………. 659,300 476,310 Repayments of borrowings on revolving credit facilities and accounts receivable facility ……………………………………………………………. (659,300) (482,360) Debt refinance fees and expenses..................................................... (6,890) - Shares surrendered upon vesting of options and restricted stock awards to cover tax obligations ……………………………………………. (900) (240) Proceeds from exercise of stock options............................................ 1,000 130 Excess tax benefits from stock based compensation.......................... 3,980 600 Net cash used for financing activities............................................... (28,030) (20,220) Cash and Cash Equivalents: Increase for the year......................................................................... 42,550 36,890 At beginning of year.......................................................................... 46,370 9,480 At end of year............................................................................... 88,920$ 46,370$ Supplemental disclosure of cash flow information: Cash paid for interest..................................................................... 40,550$ 45,090$ Cash paid for income taxes............................................................ 15,710$ 8,920$ Year ended December 31,
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) 31 Three months ended Three months ended December 31, 2011 December 31, 2010 (dollars in thousands, except per share amounts) Income Diluted EPS Income Diluted EPS Income and EPS from continuing operations, as reported………….……………………………………………………7,130$ 0.20$ 7,630$ 0.22$ After-tax impact of Special Items to consider in evaluating quality of income and EPS from continuing operations: Severance and business restructuring costs....................................................... 320 0.01 - - Tax restructuring.............................................................................................. 1,250 0.04 - - Excluding Special Items, income and EPS from continuing operations would have been………………………………………………………………………………. 8,700$ 0.25$ 7,630$ 0.22$ Weighted-average shares outstanding at December 31, 2011 and 2010 34,961,772 34,561,391 Twelve months ended Twelve months ended December 31, 2011 December 31, 2010 (dollars in thousands, except per share amounts) Income Diluted EPS Income Diluted EPS Income and EPS from continuing operations, as reported………….……………………………………………………50,810$ 1.46$ 38,930$ 1.13$ After-tax impact of Special Items to consider in evaluating quality of income and EPS from continuing operations: Severance and business restructuring costs…………………………………………………………………………………………………… 320 0.01 - - Tax restructuring…………………………………………………………………………………………………… 1,250 0.04 - - Debt extinguishment costs…………………………………………………………………………………………………… 2,460 0.07 - - Excluding Special Items income and EPS from continuing operations would have been……………………………………………………………………………….. 54,840$ 1.58$ 38,930$ 1.13$ Weighted-average shares outstanding at December 31, 2011 and 2010 34,779,693 34,435,245
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures (Unaudited) 32 (dolla s in thousands) 2011 2010 2011 2010 Operating profit from continuing operations, as reported………………………………………………………………..26,400$ 18,640$ 131,320$ 109,340$ Special Items to consider in evaluating quality of earnings: Severance and business restructuring costs and other.................................. 520$ -$ 520$ -$ Excluding Special Items, operating profit from continuing operations would have been…………………………………………………………………………………………………… 26,920$ 18,640$ 131,840$ 109,340$ Three months ended December 31, Twelve months ended December 31,
Company and Business Segment Financial Information – Cont. Ops (Unaudited, dollars in thousands) 33 Three months ended 2011 2010 2011 2010 Packaging Net sales......................................................................................................... 47,350$ 37,560$ 185,240$ 171,170$ Operating profit................................................................................................. 10,920$ 10,230$ 48,060$ 48,710$ Energy Net sales......................................................................................................... 40,970$ 34,700$ 166,780$ 129,100$ Operating profit................................................................................................. 4,820$ 3,340$ 19,740$ 14,700$ Aerospace & Defense Net sales......................................................................................................... 18,430$ 20,460$ 78,590$ 73,930$ Operating profit................................................................................................. 4,640$ 5,070$ 18,640$ 18,090$ Engineered Components Net sales......................................................................................................... 48,480$ 35,190$ 175,350$ 113,000$ Operating profit................................................................................................. 8,610$ 4,030$ 27,620$ 12,660$ Cequent Asia Pacific Net sales......................................................................................................... 26,900$ 18,950$ 94,290$ 75,990$ Operating profit................................................................................................. 4,180$ 2,630$ 13,900$ 12,050$ Cequent North America Net sales......................................................................................................... 77,520$ 65,650$ 383,710$ 339,270$ Operating profit (loss)........................................................................................ 2,100$ (340)$ 32,730$ 27,840$ Special Items to consider in evaluating operating profit (loss): - Severance and business restructuring costs.................................................. 520$ -$ 520$ -$ Excluding Special Items, operating profit (loss) would have been..................... 2,620$ (340)$ 33,250$ 27,840$ Corporate Expenses Operating loss.................................................................................................. (8,870)$ (6,320)$ (29,370)$ (24,710)$ Total Company Net sales......................................................................................................... 259,650$ 212,510$ 1,083,960$ 902,460$ Operating profit................................................................................................. 26,400$ 18,640$ 131,320$ 109,340$ Total Special Items to consider in evaluating operating profit................................. 520$ -$ 520$ -$ Excluding Special Items, operating profit would have been.............................. 26,920$ 18,640$ 131,840$ 109,340$ Twelve months ended December 31, December 31,
LTM Bank EBITDA as Defined in Credit Agreement 34 (Unaudited, dollars in thousands) 60,360$ Interest expense, net (as defined).................................................................. 44,480 Income tax expense..................................................................................... 33,980 Depreciation and amortization........................................................................ 40,470 Non-cash expenses related to stock option grants........................................... 3,510 Other non-cash expenses or losses............................................................... 3,850 Non-recurring fees and expenses in connection with acquisition integration........ 350 Debt extinguishment costs............................................................................ 3,970 Non-recurring expenses or costs for cost saving projects................................. 220 Negative EBITDA from discontinued operations............................................... 1,840 Permitted dispositions.................................................................................. (18,630) Permitted acquisitions.................................................................................. 1,980 176,380$ (1) As defined in the Credit Agreement dated June 21, 2011. Reported net income for the twelve months ended December 31, 2011 ................ Bank EBITDA - LTM Ended December 31, 2011 (1)............................................