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First Quarter Earnings Presentation A p r i l 2 8 , 2 0 1 5 NASDAQ • TRS
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Forward-Looking Statements Any "forward-looking" statements contained herein, including those relating to market conditions or the Company's financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but not limited to, risks and uncertainties with respect to the Company’s plans for successfully executing the Cequent spin-off within the expected timeframe or at all, the taxable nature of the spin-off, future prospects of the companies as independent companies, general economic and currency conditions, various conditions specific to the Company's business and industry, the Company’s ability to integrate Allfast and attain the expected synergies, and the acquisition being accretive, the Company's leverage, liabilities imposed by the Company's debt instruments, market demand, competitive factors, supply constraints, material and energy costs, technology factors, litigation, government and regulatory actions, the Company's accounting policies, future trends, and other risks which are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and in the Company's Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. In this presentation, certain non-GAAP financial measures may be used. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure may be found at the end of this presentation or in the earnings releases available on the Company’s website. Additional information is available at www.trimascorp.com under the “Investors” section. 2
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Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix 3
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Opening Remarks • First quarter sales of approximately $366 million – relatively flat year- over-year due to external headwinds • Attained $0.41(1) EPS for quarter – as expected • Achieved 20 basis point improvement in operating profit margin(1) – more work to do • Focus on mitigating internal and external headwinds • Continued emphasis on margin improvement initiatives 4 Focus on what we can control, while continuing to mitigate external uncertainties. (1) Defined as diluted earnings per share from continuing operations attributable to TriMas Corporation and operating profit margin, both excluding Special Items. Special Items are provided in the Appendix.
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External Headwinds and Tailwinds Headwinds • Oil and commodity price declines • Drilling and well completion activity • Capex reductions • Resin and specialty steel prices • Distributor inventory de-stocking and consolidation • Aerospace and Cequent • West Coast port delay impact • Packaging, Energy and Cequent • Strength of U.S. dollar • Translation and transaction impacts • Norris and Arrow exports • Imports more competitive • Overall slower macroeconomic growth 5 Tailwinds • Commercial aircraft build rates and backlog • India and China still growing, albeit at lower rates • Customer globalization – customers desire global suppliers with local plants Headwinds are creating pressure on the top-line and margin.
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Key Initiatives Update • Packaging – • Global reorganization underway to better serve markets and customers • Leveraging new, lower cost footprint to support global growth • Aerospace – • Leveraging and integrating four separate aerospace platforms to better serve customers and enhance margins • Profit improvement initiatives at Monogram and Martinic • Energy – Footprint optimization and profit improvement initiatives • Engineered Components – Restructured Arrow business to remain profitable at lower demand level; continue to evaluate as demand changes • Cequent – • Reorganizing to operate as one global company • Spin-off on track Key initiatives to drive profitable growth and increase margins – helping to mitigate external headwinds. 6
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Cequent Spin-off Update • Spin-off to result in two independent, publicly traded companies with increased strategic flexibility • Filed S-1 Registration Statement on March 31st • Capital structuring in process • Transition services agreement being finalized • Investor and Analyst Day for both TriMas and Horizon Global scheduled for May 21st in NYC • Targeting completion in mid-2015 7 We believe a tax-free spin-off will create value for shareholders, customers and employees while accelerating TriMas’ strategic transformation.
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Financial Highlights
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First Quarter Summary • Q1 sales relatively flat as compared to Q1 2014 – sales increased primarily due to the Allfast acquisition in Aerospace, significantly offset by impact of lower oil prices, port delays and unfavorable currency exchange • Q1 operating profit increased and the related margin percentage increased 20 basis points ‒ Beginning to see returns on margin improvement actions, with additional benefits expected to accrue throughout the year • Q1 EPS in line with full year expectations • Q1 Free Cash Flow as expected – full year outlook remains between $60 and $70 million • Total debt increased as a result of the October 2014 acquisition of Allfast; ended Q1 with leverage ratio of 2.9x 9(1) Defined as income from continuing operations and diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” “Special Items” for each period are provided in the Appendix. (2) Free Cash Flow is defined as Cash Flows from Operating Activities, excluding the cash impact of Cequent separation costs, less Capital Expenditures. (Unaudited, excluding Special Items, dollars in millions, except per share amounts) ( fro m co ntinuing o perat io ns) Q1 2015 Q1 2014 Variance Revenue $366.5 $365.4 0.3% Operati g profit $34.1 $33.3 2.5% Operating profit margin 9.3% 9.1% 20 bps Income (1) $18.5 $19.1 -2.9% Diluted EPS(1) $0.41 $0.42 -2.4% Free Cash Flow (2) ($30.6) ($33.7) 9.1% Total debt $671.5 $398.2 68.6%
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EPS(1) Bridge from Q1 2014 to Q1 2015 10 Focus on capturing opportunities and mitigating risks. (1) Excludes the impact of “Special Items.” For a detailed reconciliation, excluding “Special Items,” please see the Appendix. $0.42 $0.41 $(0.10) $(0.02) $0.10 $0.01 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 2014 Q1 EPS (1) Oil & foreign currency Interest expense Operations (ex oil & fx impact) Corporate office 2015 Q1 EPS (1) • Significant headwinds related to oil prices and stronger U.S. dollar – headwinds greater than expected • Interest expense higher due to financing related to the Allfast acquisition • Corporate office lower due to reduced spend in response to macroeconomic challenges
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Segment Highlights
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Packaging • Sales negatively impacted by unfavorable currency exchange and West Coast port delays • 2014 had several new significant customer product launches – none scheduled for first half of 2015 • Favorable product sales mix resulting from increased North American industrial closure demand supported margins Strategies • Reorganizing globally to a market focus to better service customers and end markets • Hired general manager for Lion Holdings to manage India and Vietnam operations – continued ramp-up of manufacturing capabilities • Added product engineers for customer innovation center in India to develop solutions focused on customer needs (Unaudited, dollars in millions) 12 (1) Operating profit excludes “Special Items” and corporate expense (in calculation of segment contribution). Special Items for each period are provided in the Appendix. High growth, high margin business positioning for the future. Q1 2015 Segment Contribution Quarterly Commentary 22% By Revenue 41% By Operating Profit(1) Financial Snapshot Q1 2015 Q1 2014 Variance Sales $79.0 $81.4 -3.0% Operating profit (1) $17.7 $18.4 -3.8% Operating profit margin (1) 22.4% 22.5% -10 bps
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Energy • Sales decreased slightly due to the impact of lower oil prices on upstream customers and unfavorable currency exchange • Sales growth from international branches • No significant change in product sales mix • Sequential margin improvement, but still facing operational challenges Strategies • Relocating a portion of Houston manufacturing to Mexico • Improving manufacturing efficiency of Houston facility • Consolidated Rotterdam branch into Wulfrun and Antwerp branch, while retaining business • Increased focus on sales of more highly-engineered, specialty products 13 Financial Snapshot Q1 2015 Q1 2014 Variance Sales $51.2 $52.8 -3.1% Operating profit (1) $1.8 $2.6 -31.9% Operating profit margin (1) 3.5% 4.9% -140 bps (Unaudited, dollars in millions) Q1 2015 Segment Contribution (1) Operating profit excludes “Special Items” and corporate expense (in calculation of segment contribution). Special Items for each period are provided in the Appendix. Focus on manufacturing and order fulfillment efficiency to drive margin expansion. 14% By Revenue 4% By Operating Profit(1) Quarterly Commentary
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Aerospace • Sales increased due to Allfast acquisition completed in Q4 2014 – margins still impacted by related purchase accounting adjustments • Lower and less predictable demand from distribution channel – inventory de-stocking continues • Allfast meeting or exceeding expectations – integration largely complete • Operating challenges at Martinic being addressed – margins improved to historical levels • Monogram sequentially improved manufacturing efficiency with significant increases in throughput and quality Strategies • Leveraging and integrating four separate aerospace platforms to better serve customers and enhance margins • Expanding qualifications for collars and additional products 14 Financial Snapshot Q1 2015 Q1 2014 Variance Sales $45.7 $27.2 68.2% Operating profit (1) $8.9 $4.9 82.5% Operating profit margin (1) 19.4% 17.9% 150 bps Position TriMas Aerospace as aerospace fastening system supplier of choice. (1) Operating profit excludes “Special Items” and corporate expense (in calculation of segment contribution). Special Items for each period are provided in the Appendix. (Unaudited, dollars in millions) Q1 2015 Segment Contribution 12% By Revenue 21% By Operating Profit(1) Quarterly Commentary
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Engineered Components • Norris Cylinder sales and margin levels increased • Arrow Engine sales decreased as a result of reduced levels of oil and gas drilling and well completions in response to low oil prices • Aligned Arrow’s cost structure with level of business activity to remain profitable • Specialty steel price decline may be sales headwind for remainder of year at Norris • Reduction of export sales due to stronger U.S. dollar is also a headwind Strategies • Adding incremental capabilities and capacity for cylinder business • Expanding engine product lines to diversify and reduce end- market cyclicality 15 Financial Snapshot Q1 2015 Q1 2014 Variance Sales $48.3 $55.4 -12.9% Operating profit (1) $6.1 $7.9 -23.2% Operating profit margin (1) 12.5% 14.2% -170 bps (Unaudited, dollars in millions) Q1 2015 Segment Contribution (1) Operating profit excludes “Special Items” and corporate expense (in calculation of segment contribution). Special Items for each period are provided in the Appendix. 13% By Revenue 14% By Operating Profit(1) Maintain profitability at Norris Cylinder, while mitigating risks at Arrow. Quarterly Commentary
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Cequent (APEA & Americas) $46.4 16 Financial Snapshot Q1 2015 Q1 2014 Variance Sales $35.8 $39.5 -9.2% Operating profit (1) $2.6 $2.5 2.4% Operating profit margin (1) 7.1% 6.3% 80 bps Financial Snapshot Q1 2015 Q1 2014 Variance Sales $106.5 $109.1 -2.3% Operating profit (1) $6.1 $6.7 -8.4% Operating profit margin (1) 5.8% 6.1% -30 bps (1) Operating profit excludes “Special Items” and corporate expense (in calculation of segment contribution). Special Items for each period are provided in the Appendix. Cequent APEA Cequent Americas Q1 2015 Segment Contribution 10% 29% By Revenue 6% 14% By Operating Profit(1) (Unaudited, dollars in millions) Cequent Americas Cequent APEA Recent investments in a global platform expected to drive margin expansion and growth. Quarterly Commentary Asia Pacific Europe & Africa • Sales impacted by unfavorable currency exchange – sales flat in local currency • OE channel growth in South Africa and Thailand • Margin improved due to productivity improvements Americas • Sales decreased due to lower demand from the industrial channel and significant retail customer product roll-out in Q1 2014 • Significant e-Commerce channel growth in Q1 2015 • Improved gross margin, offset by timing of sales promotion costs and investment in e-Commerce capabilities • Working capital reduced and normalized Strategy • Shift to integrated, globally aligned business to leverage broad product portfolio and global reach and footprint • Expand margins through leverage of new facilities and improving performance from recent acquisitions • Targeted spin-off date forming Horizon Global mid-2015
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Segment Performance Summary 17 Actions in place and taking hold to attain expected margin expansion in 2015. Q1 2015 Q1 2014 Q4 2014 FY 2014 Q1 2015 Q1 2014 Q4 2014 FY 2014 Packaging $79.0 $81.4 $80.7 $337.7 22.4% 22.5% 25.3% 23.9% Energy $51.2 $52.8 $51.3 $206.7 3.5% 4.9% 2.3% 3.1% Aerospace $45.7 $27.2 $35.1 $121.5 19.4% 17.9% 11.6% 15.2% Engineered Components $48.3 $55.4 $56.3 $221.4 12.5% 14.2% 16.3% 15.4% Cequent $142.3 $148.6 $127.1 $611.8 6.1% 6.2% 0.8% 7.1% (Unaudited, excluding Special Items, dollars in millions) Sales Operating Profit Margin(1) (1) Excludes the impact of “Special Items.” For a detailed reconciliation, excluding “Special Items,” please see the Appendix.
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Outlook and Summary
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2015 – Updated Segment Assumptions 19 Expect Q2 EPS to be lower than prior year; expect Q3 EPS to be higher than Q2 despite historical seasonality, as margin actions drive second half improvements. Segment Revenue Margin Current Commentary Packaging • Low to mid single-digit growth • 2% to 3% currency headwind • Maintain 22% to 24% operating margins • On track - Q1 slower due to port delays Energy • GDP growth • Lower oil prices causing some top-line pressure on upstream exposure • Full year 150-250 basis point margin expansion • Expecting improvement in back half of year • Consolidating European branch • Continuous improvement team on-site Aerospace • Grows at 50%+ due to Allfast • Full year operating profit > 20% • Expect back half stronger than front half due to lower demand from distributors in Q2 • Expect Q1 to be stronger than Q2 on both revenue and margin Engineered Components • Oil prices expected to lower Arrow revenue ~ 35% to 45% • GDP growth for Norris, offset by lower exports due to stronger U.S. dollar • Operating profit in 13% to 15% range • Margin headwind due to declining oil prices • Potential margin headwind due to declining steel prices • Oil prices remain low – now also impacting gas compression and parts demand • Norris Q1 margin expansion from operational efficiencies Cequent • U.S. ~ GDP+ growth • Currency headwind of 10% for CAPEA • Full year 100 basis point margin expansion • Actions to create one global company drive back half margin expansion
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2015 Outlook Full Year Outlook as of 2/25/15 Updated Full Year Outlook as of 4/28/15 Sales Growth Earnings Per Share, diluted(1) $2.10 to $2.20 $2.10 to $2.20 Free Cash Flow(2) $60 to $70 million $60 to $70 million (1) Defined as diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” (2) Defined as Cash Flow from Operating Activities, excluding the cash impact of Cequent separation costs, less Capital Expenditures 20 While reducing sales growth estimates due to external headwinds, continued focus on margin improvement in an effort to hold EPS guidance. Organic 3% to 4% Acquisitions 4% to 5% Oil Price Decline ~ (2%) Currency ~ (2%) I 3% to 5% Note: This guidance is reflective of a full year of TriMas Corporation as it operates today; if and when the proposed spin transaction of Cequent is completed, management will update guidance accordingly. 2% to 3% 4% to 5% ~ (2.5%) ~ (2.5%) I 1% to 3%
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Summary • Execute on margin improvement initiatives • Focus on margins in all businesses – Energy and Aerospace are highest priority • Actions to create one global company for Cequent businesses • Mitigate external headwinds • Uncertain macroeconomic environment • Currency and oil prices • Capitalize on profitable growth opportunities • Grow higher-margin platforms faster • Willing to exit lower-margin products and geographies • Continuing the portfolio transformation in 2015 • Cequent spin-off • Leverage synergies of recent Aerospace and Packaging acquisitions 21 Execution of strategic priorities in 2015.
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Questions and Answers
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Appendix
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Condensed Consolidated Balance Sheet 24 (Dollars in thousands) March 31, December 31, 2015 2014 (unaudited) Assets Current assets: Cash and cash equivalents............................................................. 23,730$ 24,420$ Receivables, net............................................................................ 220,380 196,320 Inventories..................................................................................... 301,440 294,630 Deferred income taxes................................................................... 28,720 28,870 Prepaid expenses and other current assets...................................... 17,630 14,380 Total current assets.................................................................... 591,900 558,620 Property and equipment, net.............................................................. 228,170 232,650 Goodwill........................................................................................... 461,700 466,660 Other intangibles, net........................................................................ 354,840 363,930 Other assets.................................................................................... 37,130 39,890 Total assets............................................................................... 1,673,740$ 1,661,750$ Liabilities and Shareholders' Equity Current liabilities: Current maturities, long-term debt................................................... 23,590$ 23,860$ Accounts payable.......................................................................... 174,710 185,010 Accrued liabilities.......................................................................... 90,730 101,050 Total current liabilities................................................................. 289,030 309,920 Long-term debt................................................................................. 647,910 615,470 Deferred income taxes...................................................................... 54,250 55,290 Other long-term liabilities................................................................... 84,030 90,440 Total liabilities............................................................................ 1,075,220 1,071,120 Total shareholders' equity............................................................ 598,520 590,630 Total liabilities and shareholders' equity........................................ 1,673,740$ 1,661,750$
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Consolidated Statement of Income 25 Three months ended 2015 2014 Net sales................................................................................................. 366,490$ 365,390$ Cost of sales............................................................................................ (268,270) (269,450) Gross profit........................................................................................... 98,220 95,940 Selling, general and administrative expenses............................................... (70,720) (63,670) Operating profit...................................................................................... 27,500 32,270 Other expense, net: Interest expense.................................................................................... (4,670) (3,470) Other expense, net................................................................................ (2,570) (950) Other expense, net............................................................................. (7,240) (4,420) Income from continuing operations before income tax expense...................... 20,260 27,850 Income tax expense.................................................................................. (6,280) (8,620) Income from continuing operations.............................................................. 13,980 19,230 Income from discontinued operations, net of income tax expense.................. - 150 Net income............................................................................................... 13,980 19,380 Less: Net income attributable to noncontrolling interests.............................. - 810 Net income attributable to TriMas Corporation.............................................. 13,980$ 18,570$ Earnings per share attributable to TriMas Corporation - basic: Continuing operations............................................................................. $ 0.31 $ 0.41 Discontinued operations......................................................................... - - Net income per share............................................................................. $ 0.31 $ 0.41 Weighted average common shares - basic 44,997,961 44,768,594 Earnings per share attributable to TriMas Corporation - diluted: Continuing operations............................................................................. $ 0.31 $ 0.41 Discontinued operations......................................................................... - - Net income per share............................................................................. $ 0.31 $ 0.41 Weighted average common shares - diluted 45,400,843 45,186,114 March 31, (Unaudited, dollars in thousands, except for per share amounts)
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Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) 26 2015 2014 Cash Flows from Operating Activities: Net income......................................................................................................................... 13,980$ 19,380$ Adjustments to reconcile net income to net cash used for operating activities: Loss on dispositions of property and equipment.................................................................. 50 70 Depreciation..................................................................................................................... 7,620 8,030 Amortization of intangible assets....................................................................................... 7,220 5,480 Amortization of debt issue costs........................................................................................ 510 480 Deferred income taxes...................................................................................................... (490) (2,820) Non-cash compensation expense...................................................................................... 2,520 2,280 Excess tax benefits from stock based compensation........................................................... (200) (760) Increase in receivables...................................................................................................... (29,080) (44,960) (Increase) decrease in inventories...................................................................................... (10,210) 1,800 (Increase) decrease in prepaid expenses and other assets................................................... (3,480) 100 Decrease in accounts payable and accrued liabilities........................................................... (9,560) (13,910) Other, net........................................................................................................................ (2,150) 160 Net cash used for operating activities.............................................................................. (23,270) (24,670) Cash Flows from Investing Activities: Capital expenditures......................................................................................................... (8,010) (9,030) Net proceeds from disposition of assets............................................................................. 640 240 Net cash used for investing activities............................................................................... (7,370) (8,790) Cash Flows from Financing Activities: Proceeds from borrowings on term loan facilities................................................................. 29,930 46,750 Repayments of borrowings on term loan facilities................................................................. (35,760) (46,340) Proceeds from borrowings on revolving credit and accounts receivable facilities...................... 289,440 331,120 Repayments of borrowings on revolving credit and accounts receivable facilities..................... (246,020) (239,900) Payments for deferred purchase price................................................................................. (5,710) - Distributions to noncontrolling interests.............................................................................. - (580) Payment for noncontrolling interests................................................................................... - (51,000) Shares surrendered upon vesting of options and restricted stock awards to cover tax obligations…...…………………………………………………………………………………….…… (2,560) (2,670) Proceeds from exercise of stock options............................................................................ 430 140 Excess tax benefits from stock based compensation........................................................... 200 760 Net cash provided by financing activities.......................................................................... 29,950 38,280 Cash and Cash Equivalents: Increase (decrease) for the period...................................................................................... (690) 4,820 At beginning of period....................................................................................................... 24,420 27,000 At end of period............................................................................................................. 23,730$ 31,820$ Supplemental disclosure of cash flow information: Cash paid for interest..................................................................................................... 4,710$ 3,010$ Cash paid for taxes........................................................................................................ 8,340$ 2,660$ Three months ended March 31,
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Company and Business Segment Financial Information 27 (Unaudited, dollars in thousands) Three months ended 2015 2014 Packaging Net sales................................................................................................................................................ 78,960$ 81,430$ Operating profit........................................................................................................................................ 17,510$ 18,360$ Special Items to consider in evaluating operating profit: Severance and business restructuring costs........................................................................................... 150$ -$ Excluding Special Items, operating profit would have been................................................................... 17,660$ 18,360$ Energy Net sales................................................................................................................................................ 51,160$ 52,780$ Operating profit........................................................................................................................................ 340$ 2,600$ Special Items to consider in evaluating operating profit: Severance and business restructuring costs........................................................................................... 1,430$ -$ Excluding Special Items, operating profit would have been................................................................... 1,770$ 2,600$ Aerospace Net sales................................................................................................................................................ 45,740$ 27,190$ Operating profit........................................................................................................................................ 8,080$ 4,860$ Special Items to consider in evaluating operating profit: Severance and business restructuring costs........................................................................................... 790$ -$ Excluding Special Items, operating profit would have been................................................................... 8,870$ 4,860$ Engineered Components Net sales................................................................................................................................................ 48,270$ 55,430$ Operating profit........................................................................................................................................ 5,970$ 7,880$ Special Items to consider in evaluating operating profit: Severance and business restructuring costs........................................................................................... 80$ -$ Excluding Special Items, operating profit would have been................................................................... 6,050$ 7,880$ Cequent APEA Net sales................................................................................................................................................ 35,820$ 39,470$ Operating profit........................................................................................................................................ 2,250$ 2,500$ Special Items to consider in evaluating operating profit: Severance and business restructuring costs........................................................................................... 310$ -$ Excluding Special Items, operating profit would have been................................................................... 2,560$ 2,500$ Cequent Americas Net sales................................................................................................................................................ 106,540$ 109,090$ Operating profit........................................................................................................................................ 5,910$ 5,710$ Special Items to consider in evaluating operating profit: Severance and business restructuring costs........................................................................................... 220$ 980$ Excluding Special Items, operating profit would have been................................................................... 6,130$ 6,690$ Corporate Expenses and Cequent separation costs Operating loss......................................................................................................................................... (12,560)$ (9,640)$ Special Items to consider in evaluating operating loss: Cequent separation costs..................................................................................................................... 3,600$ -$ Excluding Special Items, operating loss would have been.................................................................... (8,960)$ (9,640)$ Total Company Net sales................................................................................................................................................ 366,490$ 365,390$ Operating profit........................................................................................................................................ 27,500$ 32,270$ Total Special Items to consider in evaluating operating profit........................................................................ 6,580$ 980$ Excluding Special Items, operating profit would have been................................................................... 34,080$ 33,250$ March 31,
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Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 28 (Unaudited, dollars in thousands, except for per share amounts) Three months ended March 31, 2015 2014 Income from continuing operations, as reported............................................................................................................................... 13,980$ 19,230$ Less: Net income attributable to noncontrolling interests.......................................................................................................................... - 810 Income from continuing operations attributable to TriMas Corporation........................................................................................................ 13,980 18,420 After-tax impact of Special Items to consider in evaluating quality of income from continuing operations: Severance and business restructuring costs........................................................................................................................................ 2,290 670 Cequent separation costs.................................................................................................................................................................. 2,270 - Excluding Special Items, income from continuing operations attributable to TriMas Corporation would have been..................... 18,540$ 19,090$ Three months ended March 31, 2015 2014 Diluted earnings per share from continuing operations attributable to TriMas Corporation, as reported.......................................... 0.31$ 0.41$ After-tax impact of Special Items to consider in evaluating quality of EPS from continuing operations: Severance and business restructuring costs........................................................................................................................................ 0.05 0.01 Cequent separation costs.................................................................................................................................................................. 0.05 - Excluding Special Items, EPS from continuing operations would have been................................................................................ 0.41$ 0.42$ Weighted-average shares outstanding for the three months ended March 31, 2015 and 2014........................................................ 45,400,843 45,186,114 2015 2014 Operating profit (excluding Special Items)……………………….………................................................................................................ 34,080$ 33,250$ Corporate expenses (excluding Special Items)…………………………………………................................................................................. 8,960 9,640 Segment operating profit (excluding Special Items)…………………................................................................................................... 43,040$ 42,890$ Segment operating profit margin (excluding Special Items)…...……................................................................................................ 11.7% 11.7% 2015 2014 Cash Flows from Operating Activities..................................................................................................................................................... (23,270)$ (24,670)$ Less: Cash impact of Cequent separation costs...................................................................................................................................... (640) - Cash Flows from Operating Activities excluding Cequent separation costs................................................................................................ (22,630) (24,670) Less: Capital expenditures.................................................................................................................................................................... (8,010) (9,030) Free Cash Flow.................................................................................................................................................................................... (30,640) (33,700) March 31, Three months ended Three months ended March 31,
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Current Debt Structure 29 (Unaudited, dollars in thousands) As of March 31, 2015, TriMas had $164.8 million of cash and available liquidity under its revolving credit and accounts receivable facilities. March 31, December 31, 2015 2014 Cash and Cash Equivalents……………………………..………………… 23,730$ 24,420$ Credit Agreement……………………………………….. 580,040 559,530 Receivables facility and other……………………………….. 91,460 79,800 671,500 639,330 Total Debt………………………...………………………...………………………… 671,500$ 639,330$ Key Ratios: Bank LTM EBITDA……………………………………………………………………………….……………………………………… 236,290$ 243,610$ Interest Coverage Ratio………………………………………………………………… 12.95 x 13.02 x Leverage Ratio…………………………………………………………………... 2.90 x 2.71 x Bank Covenants: Minimum Interest Coverage Ratio………………………………………………………………… 3.00 x 3.00 x Maximum Leverage Ratio………………………………………………………………………………… 3.50 x 3.50 x
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LTM Bank EBITDA as Defined in Credit Agreement 30 (Unaudited, dollars in thousands) 63,880$ Interest expense, net (as defined)............................................................................................... 17,090 Income tax expense.................................................................................................................. 31,920 Depreciation and amortization.................................................................................................... 57,810 Non-cash compensation expense............................................................................................... 7,680 Other non-cash expenses or losses........................................................................................... 15,600 Non-recurring expenses or costs in connection with acquisition integration.................................... 10,590 Acquisition integration costs...................................................................................................... 9,790 D bt extinguishment costs........................................................................................................ 3,360 Permitted dispositions............................................................................................................... 1,180 Permitted acquisitions............................................................................................................... 15,630 Negative EBITDA from discontinued operations............................................................................ 1,760 236,290$ (1) As defined in the Credit Agreement dated October 16, 2013 Net income for the twelve months ended March 31, 2015 ................................................................ Bank EBITDA - LTM Ended March 31, 2015 (1)…………………………………………………………………