DETROIT, Feb. 3, 2012 /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 2011.
Fourth Quarter 2011 Results
- Fourth quarter 2011 sales of $605.6
million, up 4% on a year-over-year basis
- Non-GM sales grew by 11% on a year-over-year basis to
$175.0 million
- Gross profit of $105.7 million,
or 17.5% of sales
- Operating income of $48.5
million, or 8.0% of sales
- Net income of $31.1 million, or
$0.41 per share
- Adjusted EBITDA (earnings before interest, taxes, depreciation
and amortization, excluding the impact of special charges, asset
impairments, and other non-recurring costs) of $90.7 million or 15.0% of sales
- AAM's quarterly results reflect the net adverse impact of
special charges, asset impairments and other non-recurring
operating costs of $4.8 million, or
$0.06 per share, primarily related to
the planned closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility
Full Year 2011 Results
- Full year 2011 sales of $2.6
billion, up 13% on a year-over-year basis
- Non-GM sales grew 25% on a year-over-year basis to $710 million
- Gross margin of 17.6% is a new company record
- Operating income of $223.4
million, or 8.6% of sales
- Net income of $142.8 million, or
$1.89 per share
- Adjusted EBITDA of $386.3
million, or 14.9% of sales
- AAM's full year results reflect the net adverse impact of
special charges, asset impairments, debt refinancing costs and
other non-recurring operating costs of $19.2
million, or $0.26 per share,
primarily related to the planned closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility
AAM's net earnings in the fourth quarter of 2011 were
$31.1 million, or $0.41 per share. This compares to net
earnings of $34.9 million, or
$0.47 per share, in the fourth
quarter of 2010.
In the fourth quarter of 2011, AAM's results reflect the net
adverse impact of special charges, asset impairments and other
non-recurring operating costs of $4.8
million, or $0.06 per share,
primarily related to the planned closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility.
For the full year 2011, AAM's net earnings were $142.8 million, or $1.89 per share. This compares to net
earnings of $115.4 million, or
$1.55 per share in 2010.
On a full year basis in 2011, AAM incurred special charges,
asset impairments and other non-recurring operating costs of
$15.0 million, or $0.20 per share, primarily related to the planned
closure of our Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility. Also included in the year's special
charges were $3.1 million of debt
refinancing costs and a $1.6 million
asset impairment recorded by our e-AAM joint venture related to the
long-term supply agreement with Saab Automobile AB.
"The fourth quarter of 2011 capped a successful year for AAM.
AAM's full-year sales growth of 13% was significantly higher than
the industry growth rate and our profitability was steady and
strong throughout the year," said AAM's Co-Founder, Chairman of the
Board and Chief Executive Officer, Richard
E. Dauch. "AAM's continued leadership in the
development of advanced driveline technology has enabled us to grow
our new business backlog to $1.1
billion in future annual sales for programs launching from
2012 through 2014. Combined with AAM's outstanding
operational expertise and our focus on achieving and sustaining
market cost competitiveness in all of our global operations, we
believe AAM is well positioned for continued profitable growth,
accelerated business diversification and improved balance sheet
strength."
Net sales in the fourth quarter of 2011 increased approximately
4% to $605.6 million as compared to
$583.3 million in the fourth quarter
of 2010. Non-GM sales grew 11% on a year-over-year basis to
$175.0 million in the fourth quarter
of 2011 as compared to $157.6 million
in the fourth quarter of 2010.
AAM's content-per-vehicle is measured by the dollar value of its
product sales supporting our customers' North American light truck
and SUV programs. In the fourth quarter of 2011, AAM's
content-per-vehicle was $1,498 as
compared to $1,508 in the fourth
quarter of 2010. For the full year 2011, AAM's
content-per-vehicle was $1,487 as
compared to $1,441 in 2010.
Net sales for the full year 2011 increased by 13% to
$2.6 billion as compared to
$2.3 billion in 2010. Non-GM
sales grew 25% on a year-over-year basis to $710.0 million in 2011 as compared to
$567.7 million in 2010.
AAM's gross profit in the fourth quarter of 2011 was
$105.7 million or 17.5% of sales.
For the full year 2011, AAM's gross profit was $455.1 million, or 17.6% of sales.
AAM defines Adjusted EBITDA to be earnings before interest,
taxes, depreciation and amortization, excluding the impact of
special charges, asset impairments, and other non-recurring costs.
In the fourth quarter of 2011, AAM's Adjusted EBITDA was
$90.7 million or 15.0% of sales. For
the full year 2011, AAM's Adjusted EBITDA was $386.3 million or 14.9% of sales.
AAM's SG&A spending in the fourth quarter of 2011 was
$57.2 million, or 9.4% of sales, as
compared to $50.6 million, or 8.7% of
sales, in the fourth quarter of 2010. AAM's R&D spending
in the fourth quarter of 2011 was $28.2
million as compared to $23.6
million in the fourth quarter of 2010.
AAM's SG&A spending for the full year 2011 was $231.7 million, or 9.0% of sales, as compared to
$197.6 million, or 8.7% of sales, for
the full year 2010. AAM's R&D spending for the full year
2011 was $113.6 million as compared
to $82.5 million in 2010.
In the fourth quarter of 2011, AAM's operating income was
$48.5 million or 8.0% of sales.
For the full year 2011, AAM's operating income was
$223.4 million, or 8.6% of sales.
In the fourth quarter of 2011, AAM's net income was $31.1 million or 5.1% of sales. Diluted
earnings per share (EPS) were $0.41
per share in the fourth quarter of 2011. For the full year
2011, AAM's net income was $142.8
million or 5.5% of sales. Diluted earnings per share
(EPS) were $1.89 per share for the
full year 2011.
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. For purposes of calculating free
cash flow, AAM excludes the impact of purchase buyouts of leased
equipment, if any.
Net cash used in operating activities for the full year 2011 was
$56.3 million, including $5.2 million of cash payments for purchase
buyouts of leased equipment. Capital spending, net of
proceeds from the sale of equipment, for the full year 2011 was
$154.2 million. Reflecting the
impact of this activity, AAM's free cash flow was a use of
$205.3 million for the full year
2011.
AAM's free cash flow in 2011 reflects a one-time use of cash in
the third quarter of approximately $190
million related to the termination of accelerated payment
terms with GM. As a result of this change, effective July 1, 2011 AAM transitioned to GM's standard
weekly payment terms, which average approximately 50 days.
AAM's free cash flow in 2011 also reflects the impact of
$34.6 million of cash payments for
special charges and restructuring actions (principally related to
the planned closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility) and $52
million of total pension funding, $26
million of which was pulled ahead into the fourth quarter of
2011 in excess of AAM's minimum statutory funding requirements for
the 2011 calendar year.
For the full year 2010, AAM generated $136.9 million of positive free cash flow.
As of December 31, 2011, AAM's
total available liquidity was in excess of $475 million, consisting of available cash and
borrowing capacity on AAM's global credit facilities.
A conference call to review AAM's fourth quarter and full year
2011 results is scheduled today at 10:00
a.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 3, 2012 until
5:00 p.m. ET February 10, 2012 by dialing (855) 859-2056 from
the United States or (404)
537-3406 from outside the United
States. When prompted, callers should enter conference
reservation number 42077280.
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, including the impact
of the current sovereign debt crisis in the Euro-zone; 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); our ability to
realize the expected revenues from our new and incremental business
backlog; our ability or our customers' and suppliers' ability to
successfully launch new product programs on a timely basis; our
ability to achieve the level of cost reductions required to sustain
global cost competitiveness; our ability to attract new customers
and programs for new products; our ability to maintain satisfactory
labor relations and avoid work stoppages; our suppliers', our
customers' and their suppliers' ability to maintain satisfactory
labor relations and avoid work stoppages; supply shortages or price
increases in raw materials, utilities or other operating supplies
as a result of natural disasters or otherwise; 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
recalls, product liability and legal proceedings to which we are or
may become a party; 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 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; our ability to
consummate and integrate acquisitions and joint ventures; 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); 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 10K 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
|
(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,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
(In
millions, except per share data)
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 605.6
|
|
$ 583.3
|
|
$ 2,585.0
|
|
$ 2,283.0
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
499.9
|
|
481.7
|
|
2,129.9
|
|
1,881.3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
105.7
|
|
101.6
|
|
455.1
|
|
401.7
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
57.2
|
|
50.6
|
|
231.7
|
|
197.6
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
48.5
|
|
51.0
|
|
223.4
|
|
204.1
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(22.4)
|
|
(21.6)
|
|
(83.9)
|
|
(89.0)
|
|
Investment income
|
|
0.3
|
|
2.4
|
|
1.2
|
|
3.8
|
|
Debt refinancing and redemption
costs
|
|
-
|
|
-
|
|
(3.1)
|
|
-
|
|
Other income (expense),
net
|
|
0.4
|
|
1.6
|
|
0.5
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
26.8
|
|
33.4
|
|
138.1
|
|
118.8
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(3.2)
|
|
(0.9)
|
|
1.0
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
30.0
|
|
34.3
|
|
137.1
|
|
114.5
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to noncontrolling interests
|
|
1.1
|
|
0.6
|
|
5.7
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
AAM
|
|
$ 31.1
|
|
$ 34.9
|
|
$ 142.8
|
|
$ 115.4
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$ 0.41
|
|
$ 0.47
|
|
$
1.89
|
|
$
1.55
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
75.3
|
|
74.6
|
|
75.4
|
|
74.5
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(In
millions)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
169.2
|
|
$
244.6
|
|
Accounts
receivable, net
|
|
333.3
|
|
146.6
|
|
Inventories,
net
|
|
177.2
|
|
130.3
|
|
Deferred income
taxes
|
|
11.3
|
|
8.0
|
|
Prepaid expenses
and other
|
|
72.1
|
|
72.6
|
|
Total current assets
|
|
763.1
|
|
602.1
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
971.2
|
|
936.3
|
|
Deferred income taxes
|
|
20.1
|
|
38.6
|
|
Goodwill
|
|
155.9
|
|
155.8
|
|
GM postretirement cost sharing
asset
|
|
260.2
|
|
244.4
|
|
Other assets and deferred
charges
|
|
158.2
|
|
137.5
|
|
Total assets
|
|
$
2,328.7
|
|
$
2,114.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
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|
|
|
Current liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
337.1
|
|
$
283.6
|
|
Accrued expenses
and other
|
|
239.0
|
|
285.5
|
|
Total current
liabilities
|
|
576.1
|
|
569.1
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,180.2
|
|
1,010.0
|
|
Deferred revenue
|
|
88.2
|
|
116.0
|
|
Postretirement benefits and
other long-term liabilities
|
|
903.8
|
|
887.7
|
|
Total liabilities
|
|
2,748.3
|
|
2,582.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit
|
|
(419.6)
|
|
(468.1)
|
|
Total liabilities and
stockholders' deficit
|
|
$
2,328.7
|
|
$
2,114.7
|
|
|
|
|
|
|
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$ 30.0
|
|
$ 34.3
|
|
$ 137.1
|
|
$ 114.5
|
|
Depreciation and
amortization
|
|
|
35.6
|
|
33.5
|
|
139.4
|
|
131.6
|
|
Other
|
|
|
(56.5)
|
|
(21.0)
|
|
(332.8)
|
|
(5.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow provided by (used
in) operating activities
|
|
9.1
|
|
46.8
|
|
(56.3)
|
|
240.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant
& equipment
|
|
|
(52.1)
|
|
(46.6)
|
|
(163.1)
|
|
(108.3)
|
|
Proceeds from sales of property,
plant & equipment
|
|
|
1.0
|
|
3.7
|
|
8.9
|
|
4.9
|
|
Purchase buyouts of leased
equipment
|
|
|
(13.4)
|
|
-
|
|
(13.4)
|
|
(7.8)
|
|
Acquisition, net
|
|
|
(16.5)
|
|
(2.2)
|
|
(16.5)
|
|
(2.2)
|
|
Redemption of short-term
investments
|
|
|
-
|
|
4.8
|
|
-
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow used in investing
activities
|
|
|
(81.0)
|
|
(40.3)
|
|
(184.1)
|
|
(107.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
long-term debt
|
|
|
133.0
|
|
(1.1)
|
|
173.6
|
|
(61.9)
|
|
Debt issuance costs
|
|
|
(5.2)
|
|
-
|
|
(10.9)
|
|
(2.2)
|
|
Purchase of noncontrolling
interest
|
|
|
-
|
|
(2.1)
|
|
-
|
|
(2.1)
|
|
Employee stock option
exercises
|
|
|
-
|
|
1.1
|
|
4.6
|
|
1.1
|
|
Purchase of treasury
stock
|
|
|
-
|
|
-
|
|
(0.1)
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow provided by (used
in) financing activities
|
|
|
127.8
|
|
(2.1)
|
|
167.2
|
|
(66.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
|
(1.1)
|
|
-
|
|
(2.2)
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
|
54.8
|
|
4.4
|
|
(75.4)
|
|
66.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period
|
|
|
114.4
|
|
240.2
|
|
244.6
|
|
178.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end
of period
|
|
|
$ 169.2
|
|
$ 244.6
|
|
$ 169.2
|
|
$ 244.6
|
|
|
|
|
|
|
|
|
|
|
|
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
before interest expense, income taxes and depreciation and
amortization (EBITDA) and adjusted EBITDA(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
AAM
|
|
|
|
|
|
$
31.1
|
|
$
34.9
|
|
$
142.8
|
|
$
115.4
|
|
Interest expense
|
|
|
|
|
|
22.4
|
|
21.6
|
|
83.9
|
|
89.0
|
|
Income tax expense
(benefit)
|
|
|
|
|
|
(3.2)
|
|
(0.9)
|
|
1.0
|
|
4.3
|
|
Depreciation and
amortization
|
|
|
|
|
|
35.6
|
|
33.5
|
|
139.4
|
|
131.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
$
85.9
|
|
$
89.1
|
|
$
367.1
|
|
$
340.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt refinancing and redemption
costs
|
|
|
|
|
|
-
|
|
-
|
|
3.1
|
|
-
|
|
Other special charges, asset
impairments and other non-recurring operating costs(e)
|
|
|
|
|
|
4.8
|
|
-
|
|
16.1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA
|
|
|
|
|
|
$
90.7
|
|
$
89.1
|
|
$
386.3
|
|
$
340.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt(b)
to capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
|
|
|
|
|
$
1,180.2
|
|
$
1,010.0
|
|
Less: cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
169.2
|
|
244.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt at end of
period
|
|
|
|
|
|
|
|
|
|
1,011.0
|
|
765.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit
|
|
|
|
|
|
|
|
|
|
(419.6)
|
|
(468.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total invested capital at end of
period
|
|
|
|
|
|
|
|
|
|
$
591.4
|
|
$
297.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to
capital(c)
|
|
|
|
|
|
|
|
|
|
171.0%
|
|
257.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Operating Cash Flow and Free Cash Flow(d)
|
|
|
|
|
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities
|
|
|
|
|
|
$
9.1
|
|
$
46.8
|
|
$
(56.3)
|
|
$
240.3
|
|
Add: Portion of lease buyouts
included in Net cash provided by (used in) operating
activities
|
|
|
|
|
5.2
|
|
-
|
|
5.2
|
|
-
|
|
Adjusted Net cash provided by
(used in) operating activities
|
|
|
|
|
|
$
14.3
|
|
$
46.8
|
|
$
(51.1)
|
|
$
240.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of property,
plant & equipment, net of proceeds from sale of property, plant
& equipment
|
|
|
|
|
(51.1)
|
|
(42.9)
|
|
(154.2)
|
|
(103.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
$
(36.8)
|
|
$
3.9
|
|
$
(205.3)
|
|
$
136.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We define EBITDA to be
earnings before interest, taxes, depreciation and amortization.
Adjusted EBITDA is defined as EBITDA excluding the impact of
special charges and restructuring costs, including debt refinancing
and redemption costs and expenses related to the closure of the
Detroit Manufacturing Complex and Cheektowaga Manufacturing
Facility. We believe that EBITDA and adjusted EBITDA are
meaningful measures 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 and adjusted 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 and adjusted 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 less purchases of
property and equipment net of proceeds from sales of equipment.
For purposes of calculating free cash flow, AAM excludes the
impact of purchase buyouts of leased equipment, if any. We
believe free cash flow is a meaningful measures 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.
|
|
|
|
(e) Special charges, asset
impairments and other non-recurring operating costs include $0.5
million related to the noncontrolling interests portion of the $1.6
million asset impairments recorded by e-AAM.
|
|
|
SOURCE American Axle & Manufacturing Holdings, Inc.