Company Generated Free Cash Flow of $43.4 Million and Reduced Debt
by $22.0 Million During the Quarter BLOOMFIELD HILLS, Mich., Nov. 9
/PRNewswire-FirstCall/ -- TriMas Corporation (NASDAQ:TRS) today
announced financial results for the quarter ended September 30,
2009. The Company reported quarterly net sales from continuing
operations of $203.7 million, a decrease of 21.9% from third
quarter of 2008. Third quarter 2009 income from continuing
operations decreased 19.2% from third quarter 2008 to $6.5 million,
or $0.19 diluted earnings per share, including a ($0.05) per share
impact of severance and business restructuring costs, identified as
"Special Items,"(1) and a $0.02 per diluted share gain on
extinguishment of debt. In comparison, third quarter 2008 income
from continuing operations was $8.1 million, or $0.24 per diluted
share, including a ($0.01) per share impact of severance and
business restructuring costs. The Company reduced total
indebtedness, including amounts outstanding under its receivables
securitization facility, by $22.0 million compared to June 30, 2009
and by $101.4 million compared to September 30, 2008. The Company
ended the third quarter with $24.8 million in cash. TriMas Third
Quarter Business Highlights -- Continued to execute its $30 million
Profit Improvement Plan (PIP) ahead of schedule with over $9
million in cost reductions realized during the quarter. -- Improved
operating profit margin (excluding the impact of Special Items) by
280 basis points compared to second quarter 2009 and by 50 basis
points compared to third quarter 2008. -- In the Packaging segment,
grew specialty dispensing and new product sales by approximately
40% compared to the third quarter of 2008. These products are
designed for end markets such as pharmaceutical, medical, personal
care and food/beverage. -- Continued to demonstrate improvements in
Cequent with an increase in operating profit margin (excluding the
impact of Special Items) of 560 basis points, compared to third
quarter 2008. -- Launched a strategic sourcing initiative across
the businesses to drive additional synergies and productivity. "We
are executing on our productivity, working capital and growth
initiatives," said David Wathen, TriMas President and Chief
Executive Officer. "Compared to last quarter, we improved operating
profit margin by 280 basis points on slightly lower revenues,
decreased operating working capital by almost $23 million and
generated over $43 million of free cash flow. Sales and end market
demand are still down, but we are using this environment to make
TriMas a permanently better business." "As we move forward, we will
continue our focus on reducing costs and working capital in each
business segment," Wathen continued. "We remain focused on debt
reduction and the protection of our liquidity. During the quarter,
we reduced total indebtedness by $22 million and ended the quarter
with almost $25 million in cash. While we are pleased with the
progress we are making across these initiatives, there is more work
to be done." "For the full year of 2009, we continue to anticipate
revenue to be down 20% to 25% compared to 2008, consistent with our
comments last quarter. We are allocating some resources to key
growth initiatives aimed at expanding end markets and geographies.
We are also beginning to see positive signs in some of our
businesses, as our Packaging and Cequent segments project fourth
quarter 2009 revenues close to fourth quarter 2008 levels. These
developments lead us to expect at least modest revenue gains for
next year. We are, however, continuing to operate our company with
the realization we are still in a time of economic uncertainty. We
are committed to maintaining cushion on our bank covenants,
delevering TriMas and ensuring liquidity for our future endeavors,"
Wathen concluded. Third Quarter Financial Results - From Continuing
Operations -- TriMas reported third quarter net sales of $203.7
million, a decrease of 21.9% in comparison to $260.7 million in the
third quarter 2008. Although several businesses benefited from new
product introductions and new sales promotions, sales in all five
segments declined in comparison to the prior year third quarter.
The sales declines were primarily due to reductions in volume as a
result of continued weak global economic activity and reduced
consumer discretionary spending. Net sales were also negatively
impacted by approximately $3.1 million due to unfavorable currency
exchange. -- The Company reported operating profit of $20.2 million
for the third quarter 2009, a decrease of 26.7% compared to
operating profit of $27.5 million for the third quarter 2008.
Despite this decline, which was driven by the decrease in sales,
operating profit margin, excluding the impact of Special Items,
would have increased from 10.8% of sales during the third quarter
of 2008 to 11.3% of sales during the third quarter of 2009. This
improvement was a result of the Company's cost reduction and
productivity initiatives, with the largest positive impact
experienced in the Packaging and Cequent segments. -- Adjusted
EBITDA(2) for the third quarter 2009 decreased 14.2% to $31.9
million, as compared to $37.2 million in the third quarter 2008.
Management's actions, however, enabled the Company to achieve an
increase in Adjusted EBITDA margin from 14.3% during the third
quarter of 2008 to 15.7% during the third quarter of 2009. --
Income from continuing operations for the third quarter 2009
decreased 19.2% to $6.5 million, or $0.19 per diluted share,
compared to income from continuing operations of $8.1 million, or
$0.24 per diluted share, in the third quarter 2008. These results
include the after-tax impact of Special Items of $1.8 million, or
($0.05) per diluted share, and gain on extinguishment of debt of
$0.7 million, or $0.02 per diluted share, in the third quarter of
2009 and the after-tax impact of Special Items of $0.4 million, or
($0.01) per diluted share, in the third quarter of 2008. -- Free
Cash Flow(2) for third quarter 2009 increased 85.3% to $43.4
million from $23.4 million during the third quarter of 2008, driven
by improvements in net working capital resulting from reduced
inventory and accounts receivables levels. -- The Company continued
to focus on its Profit Improvement Plan (PIP) to achieve over $30
million in cost savings during 2009 and is on plan to exceed these
cost savings. TriMas realized over $9 million in cost reductions
and incurred approximately $2.9 million in cash and non-cash
charges related to its PIP during the third quarter of 2009. The
Company has substantially completed the elimination of the
production and distribution functions in Mosinee, Wisconsin as of
September 30, 2009, and expects to fully complete the move of these
operations by December 31, 2009. The Company continues to pursue
additional fixed and variable cost saving actions and productivity
initiatives. Financial Position TriMas ended the quarter with cash
of $24.8 million and $130.9 million of aggregate availability under
its revolving credit and receivables securitization facilities. The
Company reduced total indebtedness, including amounts outstanding
under its receivables securitization facility, by $22.0 million
during third quarter 2009, and by $101.4 million as compared to
September 30, 2008. TriMas ended the quarter with reported total
indebtedness of $525.4 million, with no amounts outstanding under
its receivables securitization facility. During the third quarter
of 2009, the Company retired approximately $10.0 million face value
of the Company's senior subordinated notes in open market
transactions for approximately $8.7 million. The Company does not
have any significant debt maturities under its credit agreement or
subordinated notes until 2012. As of September 30, 2009, the
Company was in compliance with all debt covenants. Business Segment
Results -- From Continuing Operations Packaging -- Sales for the
third quarter decreased 8.4% compared to the year ago period, due
primarily to a decline in industrial closure product sales
resulting from the overall economic slowdown, partially offset by
the growth in specialty dispensing product sales and the launch of
other new products. Sales were also negatively impacted by the
unfavorable effects of currency exchange. Despite the decrease in
sales, operating profit for the quarter increased due to lower
material costs and reduced selling, general and administrative
costs associated with the Company's cost reduction plans, partially
offset by the decline in industrial product sales and the
unfavorable effects of currency exchange. As a result of the cost
reduction actions, operating profit as a percentage of sales
improved approximately 400 basis points compared to the third
quarter of 2008. The Company continues to diversify its product
offering by developing specialty dispensing product applications
for growing end markets, including pharmaceutical, personal care
and food/beverage markets, and expanding geographically to generate
long-term growth. Energy -- Third quarter sales decreased 35.1%
compared to the year ago period due primarily to reduced demand for
engines and other well-site content, resulting from a reduction in
drilling activity and the deferred completion of previously drilled
wells in North America. Sales in the Energy segment were also
negatively impacted due to lower sales of specialty gaskets and
related fastening hardware, as a result of decreased levels of
turn-around activity at petrochemical refineries and reduced demand
from the chemical industry. Operating profit for the quarter
decreased as a result of lower sales volumes and related lower
absorption of fixed costs, partially offset by reductions in
discretionary spending. The Company continues to launch new
well-site products to complement its engine business, while
continuing to expand its sales and service branch network for the
specialty gasket business, in anticipation of improvements in
underlying demand in both of these businesses. Aerospace &
Defense -- Sales for the third quarter decreased 34.6% compared to
the year ago period due primarily to lower blind-bolt fastener
sales resulting from program delays at commercial airframe
manufacturers and inventory reductions at distribution customers,
partially offset by sales of new products which increased the
Company's content on certain aircraft. Sales in the defense
business were also lower compared to the year ago period, due to
the lack of cartridge case sales resulting from the ongoing
relocation of the defense facility, partially offset by new product
sales and revenue associated with managing the facility relocation
and closure. Operating profit for the quarter decreased primarily
due to lower sales volumes, partially offset by a more favorable
product sales mix and reduced selling, general and administrative
expenses. The Company continues to develop and market
highly-engineered products for the aerospace market, as well as
expand its offerings to military and defense customers. Engineered
Components -- Third quarter sales declined 54.3% compared to the
year ago period due to demand declines in the Company's industrial
cylinder, precision cutting tools and medical device businesses,
primarily as a result of the current economic downturn. Sales in
the specialty fittings business increased slightly due to new
product offerings. Operating profit for the quarter decreased due
to lower sales volumes and lower absorption of fixed costs, which
were partially offset by reduced selling, general and
administrative expenses. The Company continues to develop specialty
products for growing end markets such as medical and expand its
international sales efforts. Cequent -- Sales decreased 6.5% for
the third quarter compared to the year ago period. The Company
continued to experience weak, but improving, consumer demand for
heavy-duty towing, trailer and electrical products, as a result of
uncertain economic conditions and reductions in consumer
discretionary spending, and the unfavorable effects of currency
exchange, partially offset by a slight increase in sales in the
Australia/Asia Pacific business. Operating profit for the quarter
improved as a result of cost reductions implemented as part of the
Company's Profit Improvement Plan, partially offset by lower sales
volumes, unfavorable foreign currency exchange and lower absorption
of fixed costs. Due to the cost reduction actions, operating profit
as a percentage of sales also improved approximately 560 basis
points compared to the third quarter of 2008. The segment was
negatively impacted by $2.1 million in charges associated with the
closure of its Mosinee, Wisconsin manufacturing facility and other
business restructuring costs. The Company continues to aggressively
reduce fixed costs, decrease working capital and leverage strong
brand positions for increased market share. For a complete schedule
of Segment Sales and Operating Profit, including Special Items by
segment, see page 7 of this release, "Company and Business Segment
Financial Information - Continuing Operations." (1) Appendix I
details certain one-time costs, expenses and other charges,
collectively described as "Special Items," that are included in the
determination of net income (loss) under GAAP and are not added
back to net income (loss) in determining Adjusted EBITDA, but that
management would consider important in evaluating the quality of
the Company's Adjusted EBITDA and operating results under GAAP. (2)
See Appendix II for reconciliation of Non-GAAP financial measure
Adjusted EBITDA and Free Cash Flow to the Company's reported
results of operations prepared in accordance with GAAP.
Additionally, see Appendix I for additional information regarding
Special Items impacting reported GAAP financial measures Conference
Call Information TriMas Corporation will host its third quarter
2009 earnings conference call today, Monday, November 9, 2009 at
11:00 a.m. EST. The call-in number is (866) 238-0637. Participants
should request to be connected to the TriMas Corporation third
quarter conference call (conference ID number 1403128). The
presentation that will accompany the call will be available on the
Company's website at http://www.trimascorp.com/ prior to the call.
The conference call will also be web cast simultaneously on the
Company's website at http://www.trimascorp.com/. A replay of the
conference call will be available on the TriMas website or by
dialing (866) 837-8032 (access code 1403128) beginning November 9th
at 2:00 p.m. EST through November 16th at 11:59 p.m. EST.
Cautionary Notice Regarding 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 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, the Company's ability to
maintain compliance with the listing requirements of NASDAQ, 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 ending December 31, 2008, 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. About TriMas Headquartered in Bloomfield Hills,
Michigan, TriMas Corporation (NASDAQ: TRS) provides engineered and
applied products for growing markets worldwide. TriMas is organized
into five strategic business segments: Packaging, Energy, Aerospace
& Defense, Engineered Components and Cequent. TriMas has
approximately 4,000 employees at 70 different facilities in 11
countries. For more information, visit http://www.trimascorp.com/.
TriMas Corporation Consolidated Balance Sheet (Unaudited -- dollars
in thousands) September 30, December 31, 2009 2008 ---- ---- Assets
Current assets: Cash and cash equivalents $24,770 $3,910
Receivables, net of reserves of approximately $6.0 million and $5.7
million as of September 30, 2009 and December 31, 2008,
respectively 99,360 104,760 Inventories 141,830 188,950 Deferred
income taxes 16,970 16,970 Prepaid expenses and other current
assets 6,680 7,430 Assets of discontinued operations held for sale
2,700 26,200 ----- ------ Total current assets 292,310 348,220
Property and equipment, net 170,760 181,570 Goodwill 196,520
202,280 Other intangibles, net 168,700 178,880 Other assets 15,720
19,270 ------ ------ Total assets $844,010 $930,220 ========
======== Liabilities and Shareholders' Equity Current liabilities:
Current maturities, long-term debt $6,640 $10,360 Accounts payable
79,650 111,810 Accrued liabilities 73,710 66,340 Liabilities of
discontinued operations 1,240 1,340 ----- ----- Total current
liabilities 161,240 189,850 Long-term debt 518,740 599,580 Deferred
income taxes 45,680 51,650 Other long-term liabilities 44,610
34,240 ------ ------ Total liabilities 770,270 875,320 -------
------- Preferred stock $0.01 par: Authorized 100,000,000 shares;
Issued and outstanding: None - - Common stock, $0.01 par:
Authorized 400,000,000 shares; Issued and outstanding: 33,578,324
shares at September 30, 2009 and 33,620,410 shares at December 31,
2008 330 330 Paid-in capital 527,330 527,000 Accumulated deficit
(499,020) (510,160) Accumulated other comprehensive income 45,100
37,730 ------ ------ Total shareholders' equity 73,740 54,900
------ ------ Total liabilities and shareholders' equity $844,010
$930,220 ======== ======== TriMas Corporation Consolidated
Statement of Operations (Unaudited -- dollars in thousands, except
for share amounts) Three months ended Nine months ended September
30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales
$203,730 $260,730 $615,090 $808,160 Cost of sales (146,300)
(192,100) (462,210) (593,580) -------- -------- -------- --------
Gross profit 57,430 68,630 152,880 214,580 Selling, general and
administrative expenses (37,280) (41,160) (112,930) (128,740) Gain
(loss) on dispositions of property and equipment 20 50 180 (160)
Operating profit 20,170 27,520 40,130 85,680 ------ ------ ------
------ Other income (expense), net: Interest expense (10,760)
(13,570) (34,560) (42,160) Gain on extinguishment of debt 1,180 -
28,250 - Other, net (190) (480) (1,710) (3,010) ---- ---- ------
------ Other income (expense), net (9,770) (14,050) (8,020)
(45,170) ------ ------- ------ ------- Income from continuing
operations before income tax expense 10,400 13,470 32,110 40,510
Income tax expense (3,890) (5,410) (12,230) (15,150) ------ ------
------- ------- Income from continuing operations 6,510 8,060
19,880 25,360 Income (loss) from discontinued operations, net of
income tax benefit (expense) (680) 260 (8,740) 280 ---- --- ------
--- Net income $5,830 $8,320 $11,140 $25,640 ====== ====== =======
======= Earnings per share - basic: Continuing operations $0.19
$0.24 $0.59 $0.76 Discontinued operations, net of income tax
benefit (expense) (0.02) 0.01 (0.26) 0.01 ----- ---- ----- ---- Net
income per share $0.17 $0.25 $0.33 $0.77 ===== ===== ===== =====
Weighted average common shares - basic 33,496,634 33,420,560
33,480,747 33,413,214 ========== ========== ========== ==========
Earnings per share - diluted: Continuing operations $0.19 $0.24
$0.59 $0.76 Discontinued operations, net of income tax benefit
(expense) (0.02) 0.01 (0.26) 0.01 ----- ---- ----- ---- Net income
per share $0.17 $0.25 $0.33 $0.77 ===== ===== ===== ===== Weighted
average common shares - diluted 34,007,846 33,469,027 33,752,210
33,441,448 ========== ========== ========== ========== TriMas
Corporation Company and Business Segment Financial Information
Continuing Operations (Unaudited -- dollars in thousands) Three
months ended Nine months ended September 30, September 30,
--------------- --------------- 2009 2008 2009 2008 ---- ---- ----
---- Packaging Net sales $39,730 $43,350 $106,130 $128,910
Operating profit $9,160 $8,300 $23,390 $26,530 Operating profit as
a % of sales 23.1% 19.1% 22.0% 20.6% Special Items to consider in
evaluating operating profit: - Severance and business restructuring
costs $(480) $(410) $(480) $(410) Excluding Special Items,
operating profit would have been: $9,640 $8,710 $23,870 $26,940
Energy Net sales $36,000 $55,430 $111,260 $157,390 Operating profit
$3,200 $8,170 $9,380 $24,670 Operating profit as a % of sales 8.9%
14.7% 8.4% 15.7% Special Items to consider in evaluating operating
profit: - Severance and business restructuring costs $(30) $-
$(240) $(320) Excluding Special Items, operating profit would have
been: $3,230 $8,170 $9,620 $24,990 Aerospace & Defense Net
sales $16,060 $24,550 $56,530 $65,770 Operating profit $5,190
$8,640 $18,410 $22,230 Operating profit as a % of sales 32.3% 35.2%
32.6% 33.8% Special Items to consider in evaluating operating
profit: - Severance and business restructuring costs $(10) $-
$(140) $(130) Excluding Special Items, operating profit would have
been: $5,200 $8,640 $18,550 $22,360 Engineered Components Net sales
$15,860 $34,690 $51,100 $103,160 Operating profit (loss) $(60)
$3,470 $(1,010) $12,520 Operating profit (loss) as a % of sales
-0.4% 10.0% -2.0% 12.1% Special Items to consider in evaluating
operating profit (loss): - Severance and business restructuring
costs $(210) $(70) $(380) $(300) Excluding Special Items, operating
profit (loss) would have been: $150 $3,540 $(630) $12,820 Cequent
Net sales $96,080 $102,710 $290,070 $352,930 Operating profit
$7,220 $4,000 $6,760 $17,930 Operating profit as a % of sales 7.5%
3.9% 2.3% 5.1% Special Items to consider in evaluating operating
profit (loss): - Severance and business restructuring costs
$(2,130) $(190) $(7,580) $(190) Excluding Special Items, operating
profit would have been: $9,350 $4,190 $14,340 $18,120 Corporate
Expenses $(4,540) $(5,060) $(16,800) $(18,200) Special Items to
consider in evaluating corporate expenses: - Severance and business
restructuring costs $- $(40) $(2,940) $(1,620) Excluding Special
Items, corporate expenses would have been: $(4,540) $(5,020)
$(13,860) $(16,580) Total Company Net sales $203,730 $260,730
$615,090 $808,160 Operating profit $20,170 $27,520 $40,130 $85,680
Operating profit as a % of sales 9.9% 10.6% 6.5% 10.6% Total
Special Items to consider in evaluating operating profit: $(2,860)
$(710) $(11,760) $(2,970) Excluding Special Items, operating profit
would have been: $23,030 $28,230 $51,890 $88,650 Other Data: -
Depreciation and amortization $10,730 $10,420 $32,410 $31,790
------- ------- ------- ------- - Interest expense $10,760 $13,570
$34,560 $42,160 ------- ------- ------- ------- - Gain on
extinguishment of debt, net $1,180 $- $28,250 $- ------ -- -------
-- - Other expense, net $190 $480 $1,710 $3,010 ---- ---- ------
------ Appendix I TriMas Corporation Additional Information
Regarding Special Items Impacting Reported GAAP Financial Measures
(Unadited) Three months ended Three months ended September 30, 2009
September 30, 2008 ------------------ ------------------ (dollars
in thousands, except per share amounts) Income EPS Income EPS
------ --- ------ --- Income and EPS from continuing operations, as
reported $6,510 $0.19 $8,060 $0.24 ====== ===== ====== =====
After-tax impact of Special Items to consider in evaluating quality
of income and EPS from continuing operations: Severance and
business restructuring costs (1,790) (0.05) (420) (0.01) ------
----- ---- ----- Excluding Special Items, income and EPS from
continuing operations would have been $8,300 $0.24 $8,480 $0.25
====== ===== ====== ===== After-tax impact of gain on
extinguishment of debt 730 0.02 - - --- ---- - - Excluding Special
Items and gain on extinguishment of debt, income and EPS from
continuing operations would have been $7,570 $0.22 $8,480 $0.25
====== ===== ====== ===== Weighted-average shares outstanding at
September 30, 2009 and 2008 34,007,846 33,469,027 ==========
========== Three months ended Three months ended September 30, 2009
September 30, 2008 ------------------ ------------------ (dollars
in thousands, except per share amounts) Income EPS Income EPS
------ --- ------ --- Income and EPS from continuing operations, as
reported $19,880 $0.59 $25,360 $0.76 ======= ===== ======= =====
After-tax impact of Special Items to consider in evaluating quality
of income and EPS from continuing operations: Severance and
business restructuring costs (7,280) (0.22) (1,860) (0.06) ------
----- ------ ----- Excluding Special Items, income and EPS from
continuing operations would have been $27,160 $0.81 $27,220 $0.82
======= ===== ======= ===== After-tax impact of gain on
extinguishment of debt 17,490 0.52 - - ------ ---- - - Excluding
Special Items and gain on extinguishment of debt, income and EPS
from continuing operations would have been Weighted-average shares
outstanding at September 30, 2009 and 2008 33,752,210 33,441,448
========== ========== Appendix I (cont.) TriMas Corporation
Additional Information Regarding Special Items Impacting Reported
GAAP Financial Measures (Unaudited) Three months ended Nine months
ended September 30, September 30, ------------- --------------
(dollars in thousands) 2009 2008 2009 2008 ---- ---- ---- ----
Operating profit from continuing operations, as reported $20,170
$27,520 $40,130 $85,680 ======= ======= ======= ======= Special
Items to consider in evaluating quality of earnings: Severance and
business restructuring costs $(2,860) $(710) $(11,760) $(2,970)
Excluding Special Items, operating profit from continuing
operations would have been $23,030 $28,230 $51,890 $88,650 =======
======= ======= ======= Three months ended Nine months ended
September 30, September 30, ------------- ------------- (dollars in
thousands) 2009 2008 2009 2008 ---- ---- ---- ---- Adjusted EBITDA
from continuing operations, as reported $31,910 $37,170 $99,880
$113,310 ======= ======= ======= ======== Special Items to consider
in evaluating quality of earnings: Severance and business
restructuring costs $(2,290) $(710) $(9,530) $(2,970) Excluding
Special Items, Adjusted EBITDA from continuing operations would
have been $34,200 $37,880 $109,410 $116,280 ======= =======
======== ======== Gross gain on extinguishment of debt $1,330 $-
$29,390 $- ------ -- ------- -- Excluding Special Items and gain on
extinguishment of debt, Adjusted EBITDA from continuing operations
would have been $32,870 $37,880 $80,020 $116,280 ======= =======
======= ======== Appendix II TriMas Corporation Reconciliation of
Non-GAAP Measure Adjusted EBITDA(1) and Free Cash Flow(2)
(Unaudited) Three months ended Nine months ended September 30,
September 30, --------------- ------------- (dollars in thousands)
2009 2008 2009 2008 ---- ---- ---- ---- Net income $5,830 $8,320
$11,140 $25,640 Income tax expense 3,420 5,560 6,650 15,310
Interest expense 10,930 13,630 35,050 42,320 Debt extinguishment
costs 150 - 1,140 - Depreciation and amortization 10,580 10,740
33,410 32,440 ------ ------ ------ ------ Adjusted EBITDA, total
company 30,910 38,250 87,390 115,710 Adjusted EBITDA, discontinued
operations (1,000) 1,080 (12,490) 2,400 ------- ------- -------
-------- Adjusted EBITDA, continuing operations $31,910 $37,170
$99,880 $113,310 Special Items 2,290 710 9,530 2,970 Non-cash gross
gain on extinguishment of debt (1,330) - (29,390) - Cash interest
(3,630) (5,140) (25,460) (32,240) Cash taxes (2,420) (1,130)
(6,730) (6,460) Capital expenditures (4,430) (6,460) (10,850)
(19,630) Changes in operating working capital 22,740 (2,440) 43,840
(15,070) ------ ------ ------ ------- Free Cash Flow from
operations before Special Items 45,130 22,710 80,820 42,880 Cash
paid for Special Items (2,460) (1,240) (6,910) (1,590) Net proceeds
from sale of business and other assets 680 1,920 23,100 2,260 ---
----- ------ ----- Free Cash Flow $43,350 $23,390 $97,010 $43,550
======= ======= ======= ======= (1) The Company defines Adjusted
EBITDA as net income (loss) before cumulative effect of accounting
change, interest, taxes, depreciation, amortization, non-cash asset
and goodwill impairment write-offs, and non-cash losses on
sale-leaseback of property and equipment. Lease expense and
non-recurring charges are included in Adjusted EBITDA and include
both cash and non-cash charges related to restructuring and
integration expenses. In evaluating our business, management
considers and uses Adjusted EBITDA as a key indicator of financial
operating performance and as a measure of cash generating
capability. Management believes this measure is useful as an
analytical indicator of leverage capacity and debt servicing
ability, and uses it to measure financial performance as well as
for planning purposes. However, Adjusted EBITDA should not be
considered as an alternative to net income, cash flow from
operating activities or any other measures calculated in accordance
with U.S. GAAP, or as an indicator of operating performance. The
definition of Adjusted EBITDA used here may differ from that used
by other companies. (2) The Company defines Free Cash Flow as
Adjusted EBITDA from continuing operations, plus Special Items and
net proceeds from sale of businesses, less cash paid for interest,
taxes and Special Items, capital expenditures, changes in operating
working capital and non-cash (gains) losses on debt extinguishment.
As detailed in Appendix I, for purposes of determining Free Cash
Flow, Special Items, net, include those one-time costs, expenses
and other charges incurred on a cash basis that are included in the
determination of net income (loss) under GAAP and are not added
back to net income (loss) in determining Adjusted EBITDA, but that
management would consider important in evaluating the quality of
the Company's Free Cash Flow, as defined. For more information,
contact: Sherry Lauderback VP, Investor Relations &
Communications (248) 631-5506 DATASOURCE: TriMas Corporation
CONTACT: Sherry Lauderback, VP, Investor Relations &
Communications of TriMas Corporation, +1-248-631-5506, Web Site:
http://www.trimascorp.com/
Copyright
