DETROIT, Feb. 8, 2011 /PRNewswire/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the
NYSE, today reported its financial results for the fourth quarter
and full year 2010.
Fourth Quarter 2010 Results
- Fourth quarter 2010 sales of $583.3
million, up 26% on a year-over-year basis
- Non-GM sales grew 52% on a year-over-year basis to $156.6 million
- Gross profit of $101.6 million,
or 17.4% of sales
- Operating income of $51.0
million, or 8.7% of sales
- Net income of $34.9 million, or
$0.47 per share
- EBITDA (earnings before interest, taxes, depreciation and
amortization) of $89.1 million, or
15.3% of sales
Full Year 2010 Results
- Sales of $2.28 billion, up 50% on
a year-over-year basis
- Non-GM sales grew 70% on a year-over-year basis to $563.0 million
- Gross margin of 17.6% of sales is a new company record
- Operating income of $204.1
million, or 8.9% of sales
- Net income of $115.4 million, or
$1.55 per share
- EBITDA margin of 14.9% of sales is a new company record
- Net debt (total long term debt, net of cash and cash
equivalents) of $765.4 million at
year-end 2010 was reduced by $127.9
million during the year
AAM's results in the fourth quarter of 2010 were net earnings of
$34.9 million or $0.47 per share. This compares to net
earnings of $48.6 million, or
$0.80 per share, in the fourth
quarter of 2009.
In the fourth quarter of 2009, AAM recorded a tax gain of
$48.8 million (or $0.80 per share) to recognize the benefit of a
special U.S. tax refund claim. AAM's results in the fourth
quarter of 2009 also included a net charge for special items of
$8.5 million (or $0.14 per share) for debt refinancing costs,
attrition programs and pension and postretirement benefit
curtailment.
"The fourth quarter of 2010 completed a very successful year for
AAM. AAM's full year 2010 sales grew by more than 50% on a
year-over-year basis. AAM achieved record profit margin
performance and generated positive free cash flow each quarter of
the year. These positive accomplishments allowed us to reduce
AAM's net debt obligations by more than $125
million in 2010," said AAM's Co-Founder, Chairman of the
Board and Chief Executive Officer, Richard
E. Dauch. "AAM is well positioned to benefit from a
continued recovery in the global automotive markets in 2011 and
beyond. With a dual focus on driving performance in our daily
operations and building value for our many key stakeholders, we are
excited about our plans for continued profitable global growth,
accelerated business diversification and improved balance sheet
strength."
For the full year 2010, AAM's net earnings were $115.4 million, or $1.55 per share. This compares to a net
loss of $253.1 million, or
$4.81 per share in 2009.
In 2009, AAM incurred special charges, asset impairments and
other non-recurring operating costs related to the implementation
of new labor agreements, hourly and salaried attrition program
activity, plant closures and other actions to rationalize capacity
and redeploy underutilized assets. In total, AAM's 2009
results reflect the impact of charges amounting to $169.3 million (or $3.22 per share) relating to these items,
including pension and other postretirement benefit curtailments and
special termination benefits.
AAM's full year 2009 results also reflect restructuring costs
and other special items of $17.8
million (or $0.34 per share),
primarily relating to debt refinancing activities and the
successful closing of a settlement and commercial agreement with
General Motors Company (GM).
Net sales in the fourth quarter of 2010 increased approximately
26% to $583.3 million as compared to
$464.0 million in the fourth quarter
of 2009. Customer production volumes for the North American
light truck and SUV programs AAM currently supports for GM and
Chrysler were up approximately 12% in the fourth quarter of 2010 as
compared to the fourth quarter of 2009.
Non-GM sales grew 52% on a year-over-year basis to $156.6 million in the fourth quarter of 2010 as
compared to $102.9 million in the
fourth quarter of 2009.
Net sales for the full year 2010 increased by 50% to
$2.28 billion as compared to
$1.52 billion in 2009. Customer
production volumes for the North American light truck and SUV
programs AAM currently supports for GM and Chrysler were up
approximately 42% in 2010 as compared to the prior year.
Non-GM sales grew 70% on a year-over-year basis to $563.0 million in 2010 as compared to
$331.2 million in 2009.
AAM's content-per-vehicle is measured by the dollar value of its
product sales supporting GM's North American light truck and SUV
programs and Chrysler's Heavy Duty Dodge Ram pickup trucks. In the
fourth quarter of 2010, AAM's content-per-vehicle was $1,508 as compared to $1,401 in the fourth quarter of 2009. For
the full year 2010, AAM's content-per-vehicle was $1,441 as compared to $1,403 in 2009.
AAM's gross profit in the fourth quarter of 2010 was
$101.6 million or 17.4% of sales. For
the full year 2010, AAM's gross profit was $401.7 million, or 17.6% of sales. AAM's
gross margin of 17.6% for the full year 2010 is a new company
record.
AAM defines EBITDA to be earnings before interest, taxes,
depreciation and amortization. In the fourth quarter of 2010,
AAM's EBITDA was $89.1 million, or
15.3% of sales. For the full year 2010, AAM's EBITDA was
$340.3 million, or 14.9% of sales.
AAM's EBITDA margin of 14.9% for the full year 2010 is a new
company record.
AAM's SG&A spending in the fourth quarter of 2010 was
$50.6 million, or 8.7% of sales, as
compared to $39.4 million, or 8.5% of
sales, in the fourth quarter of 2009. AAM's R&D spending
in the fourth quarter of 2010 was $23.6
million as compared to $16.3
million in the fourth quarter of 2009.
AAM's SG&A spending for the full year 2010 was $197.6 million, or 8.7% of sales, as compared to
$172.7 million, or 11.3% of sales,
for the full year 2009. AAM's R&D spending for the full
year 2010 was $82.5 million as
compared to $67.0 million in
2009.
In the fourth quarter of 2010, AAM's operating income was
$51.0 million or 8.7% of sales.
For the full year 2010, AAM's operating income was
$204.1 million, or 8.9% of sales.
In the fourth quarter of 2010, AAM's net income was $34.9 million or 6.0% of sales. Diluted
earnings per share (EPS) were $0.47
per share in the fourth quarter of 2010. For the full year
2010, AAM's net income was $115.4
million or 5.1% of sales. Diluted earnings per share
(EPS) were $1.55 per share for the
full year 2010. AAM defines free cash flow to be net cash
provided by (or used in) operating activities, less capital
expenditures net of proceeds from the sale of equipment.
Net cash provided by operating activities for the full year 2010
was $240.3 million. Capital
spending, net of proceeds from the sale of equipment for the full
year 2010 was $103.4 million.
Reflecting the impact of this activity, AAM generated
$136.9 million of positive free cash
flow for the full year 2010. For the full year 2009, AAM's
free cash flow was a use of $89.8
million.
Included in AAM's 2010 free cash flow is a $48.8 million U.S. income tax refund AAM received
in the first quarter of 2010 in connection with a special five-year
net operating loss carryback election included in the Worker, Home
Ownership and Business Act of 2009.
AAM's free cash flow for the full year 2010 also reflects the
impact of cash payments for restructuring of $46.9 million. These payments relate
primarily to AAM's remaining obligations under hourly and salaried
attrition programs and the buydown program (BDP) for UAW
represented associates at AAM's Detroit,
Michigan; Three Rivers,
Michigan; and Cheektowaga, New
York manufacturing facilities.
AAM defines net debt to be total long term debt net of cash and
cash equivalents. At year-end 2010, AAM's net debt was
reduced by $127.9 million to $765.4
million as compared to $893.3
million of net debt at year-end 2009. At year-end
2010, AAM's total available liquidity was in excess of $600 million.
A conference call to review AAM's fourth quarter and full year
2010 results is scheduled today at 3:00 p.m.
ET. Interested participants may listen to the live
conference call by logging onto AAM's investor web site at
http://investor.aam.com or calling (877) 278-1452 from the United States or (973) 200-3383 from
outside the United States. A
replay will be available from 5:00 p.m.
ET on February 8, 2011 until
5:00 p.m. ET February 15, 2011 by dialing (800) 642-1687 from
the United States or (706)
645-9291 from outside the United
States. When prompted, callers should enter conference
reservation number 36036010.
Non-GAAP Financial Information
In addition to the results reported in accordance with
accounting principles generally accepted in the United States of America (GAAP) included
within this press release, AAM has provided certain information,
which includes non-GAAP financial measures. Such information
is reconciled to its closest GAAP measure in accordance with the
Securities and Exchange Commission rules and is included in the
attached supplemental data.
Management believes that these non-GAAP financial measures are
useful to both management and its stockholders in their analysis of
the Company's business and operating performance. Management
also uses this information for operational planning and
decision-making purposes.
Non-GAAP financial measures are not and should not be considered
a substitute for any GAAP measure. Additionally, non-GAAP
financial measures as presented by AAM may not be comparable to
similarly titled measures reported by other companies.
AAM is a world leader in the manufacture, engineering, design
and validation of driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed products
for trucks, sport utility vehicles, passenger cars and crossover
utility vehicles. In addition to locations in the United States (Indiana, Michigan, New
York, Ohio, and
Pennsylvania), AAM also has
offices or facilities in Brazil,
China, Germany, India, Japan,
Luxembourg, Mexico, Poland, South
Korea, Sweden, Thailand and the United Kingdom.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained in this press release are
"forward-looking statements" and relate to the Company's plans,
projections, strategies or future performance. Such statements,
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, are based on our current
expectations, are inherently uncertain, are subject to risks and
should be viewed with caution. Forward-looking statements
should not be read as a guarantee of future performance or results,
and will not necessarily be accurate indications of the times at,
or by, which such performance or results will be achieved.
Forward-looking statements are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events and are
subject to risks and may differ materially from those expressed in
or suggested by the forward-looking statements. Important
factors that could cause such differences include, but are not
limited to: global economic conditions; our ability to comply with
the definitive terms and conditions of various commercial and
financing arrangements with GM; reduced purchases of our products
by GM, Chrysler or other customers; reduced demand for our
customers' products (particularly light trucks and SUVs produced by
GM and Chrysler); availability of financing for working capital,
capital expenditures, R&D or other general corporate purposes,
including our ability to comply with financial covenants; our
customers' and suppliers' availability of financing for working
capital, capital expenditures, R&D or other general corporate
purposes; our ability to achieve cost reductions through ongoing
restructuring actions; our ability to achieve the level of cost
reductions required to sustain global cost competitiveness; our
ability to maintain satisfactory labor relations and avoid future
work stoppages; our suppliers', our customers' and their suppliers'
ability to maintain satisfactory labor relations and avoid work
stoppages; additional restructuring actions that may occur; our
ability to continue to implement improvements in our U.S. labor
cost structure; supply shortages or price increases in raw
materials, utilities or other operating supplies; our ability to
consummate and integrate acquisitions and joint ventures; our
ability or our customers' and suppliers' ability to successfully
launch new product programs on a timely basis; our ability to
realize the expected revenues from our new and incremental business
backlog; our ability to attract new customers and programs for new
products; our ability to develop and produce new products that
reflect market demand; lower-than-anticipated market acceptance of
new or existing products; our ability to respond to changes in
technology, increased competition or pricing pressures; price
volatility in, or reduced availability of, fuel; adverse changes in
laws, government regulations or market conditions affecting our
products or our customers' products (such as the Corporate Average
Fuel Economy ("CAFE") regulations); risks inherent in our
international operations (including adverse changes in political
stability, taxes and other law changes, potential disruption of
production and supply, and currency rate fluctuations); liabilities
arising from warranty claims, product liability and legal
proceedings to which we are or may become a party; changes in
liabilities arising from pension and other postretirement benefit
obligations; risks of noncompliance with environmental regulations
or risks of environmental issues that could result in unforeseen
costs at our facilities; our ability to attract and retain key
associates; other unanticipated events and conditions that may
hinder our ability to compete. For additional discussion, see "Risk
factors" in our most recent 10Q filing.
It is not possible to foresee or identify all such factors
and we assume no obligation to update any forward-looking
statements or to disclose any subsequent facts, events or
circumstances that may affect their accuracy.
For more
information...
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Christopher M. Son
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David Tworek
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Director, Investor
Relations,
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Manager,
Communications
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Corporate Communications and
Marketing
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(313) 758-4883
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(313) 758-4814
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david.tworek@aam.com
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chris.son@aam.com
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Or visit the AAM website
at www.aam.com.
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AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(In
millions, except per share data)
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
583.3
|
|
$ 464.0
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|
$ 2,283.0
|
|
$ 1,521.6
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
481.7
|
|
395.6
|
|
1,881.3
|
|
1,552.7
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
101.6
|
|
68.4
|
|
401.7
|
|
(31.1)
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
50.6
|
|
39.4
|
|
197.6
|
|
172.7
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
51.0
|
|
29.0
|
|
204.1
|
|
(203.8)
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(21.6)
|
|
(24.1)
|
|
(89.0)
|
|
(84.5)
|
|
Investment income
(loss)
|
2.4
|
|
(0.8)
|
|
3.8
|
|
2.0
|
|
Debt refinancing cost
|
-
|
|
(7.7)
|
|
-
|
|
(7.7)
|
|
Other income (expense),
net
|
1.6
|
|
0.5
|
|
(0.1)
|
|
(3.1)
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|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
33.4
|
|
(3.1)
|
|
118.8
|
|
(297.1)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(0.9)
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|
(51.6)
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|
4.3
|
|
(43.8)
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|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
34.3
|
|
48.5
|
|
114.5
|
|
(253.3)
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|
|
|
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interest
|
0.6
|
|
0.1
|
|
0.9
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to AAM
|
$
34.9
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|
$ 48.6
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|
$ 115.4
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|
$ (253.1)
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|
|
|
|
|
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|
|
Diluted earnings (loss) per
share
|
$
0.47
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|
$ 0.80
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|
$
1.55
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|
$ (4.81)
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|
|
|
|
|
|
|
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|
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Diluted shares
outstanding
|
74.6
|
|
61.0
|
|
74.5
|
|
52.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
December
31,
|
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December
31,
|
|
|
2010
|
|
2009
|
|
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(In
millions)
|
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ASSETS
|
|
|
|
|
|
|
|
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Current assets
|
|
|
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Cash and cash
equivalents
|
$
244.6
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|
$
178.1
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Short-term
investments
|
-
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|
4.2
|
|
Accounts
receivable, net
|
146.6
|
|
129.7
|
|
Inventories,
net
|
130.3
|
|
90.6
|
|
Deferred income
taxes
|
8.0
|
|
5.9
|
|
Prepaid expenses
and other
|
72.6
|
|
108.1
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|
Total current assets
|
602.1
|
|
516.6
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
936.3
|
|
946.7
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|
GM postretirement cost sharing
asset
|
244.4
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|
219.9
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Goodwill
|
155.8
|
|
147.8
|
|
Other assets and deferred
charges
|
176.1
|
|
155.8
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|
Total assets
|
$
2,114.7
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|
$
1,986.8
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LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
|
|
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|
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Current liabilities
|
|
|
|
|
Accounts
payable
|
$
283.6
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|
$
200.9
|
|
Accrued expenses
and other
|
283.3
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|
244.6
|
|
Total current
liabilities
|
566.9
|
|
445.5
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|
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|
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|
Long-term debt
|
1,010.0
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|
1,071.4
|
|
Deferred income taxes
|
6.6
|
|
5.6
|
|
Deferred revenue
|
118.2
|
|
189.7
|
|
Postretirement benefits and
other long-term liabilities
|
881.1
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|
834.5
|
|
Total liabilities
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2,582.8
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|
2,546.7
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|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit
|
(468.1)
|
|
(559.9)
|
|
Total liabilities and
stockholders' deficit
|
$
2,114.7
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$
1,986.8
|
|
|
|
|
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AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(In
millions)
|
|
(In
millions)
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 34.3
|
|
$ 48.5
|
|
$ 114.5
|
|
$ (253.3)
|
|
Depreciation and
amortization
|
33.5
|
|
31.9
|
|
131.6
|
|
134.7
|
|
Other
|
(21.0)
|
|
(44.8)
|
|
(5.8)
|
|
134.5
|
|
|
|
|
|
|
|
|
|
|
Net cash flow provided by
operating activities
|
46.8
|
|
35.6
|
|
240.3
|
|
15.9
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant
& equipment
|
(46.6)
|
|
(22.2)
|
|
(108.3)
|
|
(137.7)
|
|
Acquisition, net
|
(2.2)
|
|
-
|
|
(2.2)
|
|
(10.2)
|
|
Proceeds from sales of property,
plant & equipment
|
3.7
|
|
1.2
|
|
4.9
|
|
1.7
|
|
Purchase buyouts of leased
equipment
|
-
|
|
-
|
|
(7.8)
|
|
-
|
|
Redemption of short-term
investments
|
4.8
|
|
3.6
|
|
6.4
|
|
71.6
|
|
|
|
|
|
|
|
|
|
|
Net cash flow used in investing
activities
|
(40.3)
|
|
(17.4)
|
|
(107.0)
|
|
(74.6)
|
|
|
|
|
|
|
|
|
|
|
Net decrease in debt
|
(1.1)
|
|
(107.9)
|
|
(61.9)
|
|
(75.1)
|
|
Debt issuance costs
|
-
|
|
(14.7)
|
|
(2.2)
|
|
(32.9)
|
|
Proceeds from the issuance of
Common Stock, net
|
-
|
|
109.7
|
|
-
|
|
109.7
|
|
Repurchase of treasury
stock
|
-
|
|
(0.6)
|
|
(1.3)
|
|
(0.9)
|
|
Employee stock option
exercises
|
1.1
|
|
-
|
|
1.1
|
|
1.0
|
|
Proceeds from the issuance of
warrants to GM
|
-
|
|
-
|
|
-
|
|
30.3
|
|
Purchase of noncontrolling
interest
|
(2.1)
|
|
-
|
|
(2.1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net cash flow provided by (used
in) financing activities
|
(2.1)
|
|
(13.5)
|
|
(66.4)
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
-
|
|
0.3
|
|
(0.4)
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
4.4
|
|
5.0
|
|
66.5
|
|
(20.7)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period
|
240.2
|
|
173.1
|
|
178.1
|
|
198.8
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end
of period
|
$ 244.6
|
|
$ 178.1
|
|
$ 244.6
|
|
$ 178.1
|
|
|
|
|
|
|
|
|
|
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
|
SUPPLEMENTAL
DATA
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
supplemental data presented below is a reconciliation of certain
financial measures which is intended
|
|
to
facilitate analysis of American Axle & Manufacturing Holdings,
Inc. business and operating performance.
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) before interest expense, income taxes and depreciation and
amortization (EBITDA)(a)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to AAM
|
$ 34.9
|
|
$ 48.6
|
|
$
115.4
|
|
$
(253.1)
|
|
Interest expense
|
21.6
|
|
24.1
|
|
89.0
|
|
84.5
|
|
Income taxes
|
(0.9)
|
|
(51.6)
|
|
4.3
|
|
(43.8)
|
|
Depreciation and
amortization
|
33.5
|
|
31.9
|
|
131.6
|
|
134.7
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$ 89.1
|
|
$ 53.0
|
|
$
340.3
|
|
$
(77.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt(b)
to capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
(In
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
$ 1,010.0
|
|
$ 1,071.4
|
|
Less: cash and cash
equivalents
|
|
|
|
|
244.6
|
|
178.1
|
|
|
|
|
|
|
|
|
|
|
Net debt at end of
period
|
|
|
|
|
765.4
|
|
893.3
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit
|
|
|
|
|
(468.1)
|
|
(559.9)
|
|
|
|
|
|
|
|
|
|
|
Total invested capital at end of
period
|
|
|
|
|
$
297.3
|
|
$
333.4
|
|
|
|
|
|
|
|
|
|
|
Net debt to
capital(c)
|
|
|
|
|
257.5%
|
|
267.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow(d)
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$ 46.8
|
|
$ 35.6
|
|
$
240.3
|
|
$
15.9
|
|
Add: Proceeds from
the issuance of warrants to GM
|
-
|
|
-
|
|
-
|
|
30.3
|
|
Less: Purchases of
property, plant & equipment, net of proceeds from sale of
equipment
|
(42.9)
|
|
(21.0)
|
|
(103.4)
|
|
(136.0)
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
$ 3.9
|
|
$ 14.6
|
|
$
136.9
|
|
$
(89.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We believe that EBITDA
is a meaningful measure of performance as it is commonly utilized
by management and investors to analyze operating performance and
entity valuation. Our management, the investment community
and the banking institutions routinely use EBITDA, together with
other measures, to measure our operating performance relative to
other Tier 1 automotive suppliers. EBITDA should not be
construed as income from operations, net income or cash flow from
operating activities as determined under GAAP. Other
companies may calculate EBITDA differently.
|
|
|
|
(b) Net debt is equal to
total debt less cash and cash equivalents.
|
|
|
|
(c) Net debt to capital is
equal to net debt divided by the sum of stockholders' deficit and
net debt. We believe that net debt to capital is a meaningful
measure of financial condition as it is commonly utilized by
management, investors and creditors to assess relative capital
structure risk. Other companies may calculate net debt to
capital differently.
|
|
|
|
(d) We define free cash
flow as net cash provided by operating activities and proceeds from
the issuance of warrants to GM, less purchases of property and
equipment net of proceeds from sales of assets. We believe
free cash flow is a meaningful measure as it is commonly utilized
by management and investors to assess our ability to generate cash
flow from business operations to repay debt and return capital to
our stockholders. Free cash flow is also a key metric used in
our calculation of incentive compensation. Other companies
may calculate free cash flow differently.
|
|
|
|
|
|
|
|
|
|
SOURCE American Axle & Manufacturing Holdings, Inc.