DETROIT, July 27, 2012 /PRNewswire/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the
NYSE, today reported its financial results for the second quarter
2012.
Second Quarter 2012 Results
- Second quarter 2012 sales of $739.8
million, up 7.8% on a year-over-year basis
- Non-GM sales grew 8.5% on a year-over-year basis to
$198.2 million
- Free cash flow (net cash provided by operating activities less
capital expenditures net of proceeds from the sale of equipment) of
$48.0 million
- Net income of $4.7 million, or
$0.06 per share
- AAM's quarterly results reflect the impact of special charges
and restructuring costs of $36.5
million (or $0.49 per share),
related to the closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility
AAM's net earnings in the second quarter of 2012 were
$4.7 million, or $0.06 per share. This compares to net
earnings of $49.2 million or
$0.65 per share in the second quarter
of 2011.
In the second quarter of 2012, AAM's results reflect the impact
of special charges and restructuring costs of $36.5 million (or $0.49 per share), related to the closure of our
Detroit Manufacturing Complex and Cheektowaga Manufacturing
Facility. These special charges included $28.1 million of expense for a contingency
related to a claim made by the International UAW for pension and
postretirement benefits.
"AAM's financial results for the second quarter of 2012 were
highlighted by strong sales growth driven by solid profitability
and positive free cash flow," said AAM's Co-Founder, Chairman of
the Board and Chief Executive Officer, Richard E. Dauch. "AAM is excited about
the opportunity to make additional progress on our profitable
growth and business diversification initiatives as we continue to
support the launch of many new products, processes and systems on a
global basis in the near-term. AAM's advanced driveline
technologies and high-quality, operationally-flexible global
manufacturing, engineering and sourcing footprint are the key
factors driving our success in growing AAM's new business backlog,
which now stands at approximately $1.2
billion for programs launching from 2012 through 2014."
Net sales in the second quarter of 2012 increased approximately
8% to $739.8 million as compared to
$686.2 million in the second quarter
of 2011. Non-GM sales were up 8.5% to $198.2 million in the second quarter of 2012 as
compared to $182.7 million in the
second quarter of 2011.
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 second quarter of 2012, AAM's
content-per-vehicle was $1,439 as
compared to $1,504 in the second
quarter of 2011 and $1,475 in the
first quarter of 2012. A reduction in deferred revenue
recognition related to the 2008 AAM-GM agreement and lower
four-wheel drive penetration in our customers' North American light
truck and SUV programs were the principal factors driving the lower
content-per-vehicle in the second quarter of 2012 as compared to
the second quarter of 2011 and first quarter of 2012.
AAM's net sales in the first half of 2012 increased
approximately 12% to $1.49 billion as
compared to $1.33 billion in the
first half of 2011. Non-GM sales in the first half of 2012
increased approximately 8.5% on a year-over-year basis to
$391.8 million or 26.3% of AAM's
total sales.
AAM's gross profit in the second quarter of 2012 was
$85.8 million or 11.6% of
sales. For the second quarter of 2011, AAM's gross profit was
$130.5 million, or 19.0% of
sales.
AAM's gross profit for the first half of 2012 was $225.0 million compared to $245.9 million in the first half of 2011.
Gross margin was 15.1% in the first half of 2012 as compared to
18.5% in the first half of 2011.
AAM's SG&A spending in the second quarter of 2012 was
$55.5 million, or 7.5% of sales, as
compared to $58.8 million, or 8.6% of
sales, in the second quarter of 2011. AAM's R&D spending
in the second quarter of 2012 was $28.8
million as compared to $27.3
million in the second quarter of 2011.
In the first half of 2012, AAM's SG&A spending was
$117.3 million as compared to
$115.5 million in the first half of
2011. AAM's R&D spending increased approximately
$5.3 million in the first half of
2012 on a year-over-year basis to $58.9
million as compared to $53.6
million in the first half of 2011.
In the second quarter of 2012, AAM's operating income was
$30.3 million or 4.1% of
sales.
AAM's operating income in the first half of 2012 was
$107.7 million as compared to
$130.4 million in the first half of
2011. Operating margin was 7.2% in the first half of 2012 as
compared to 9.8% in the first half of 2011.
In the second quarter of 2012, AAM's net income was $4.7 million or 0.6% of sales. Diluted
earnings per share were $0.06 per
share in the second quarter of 2012. For the second
quarter 2011, AAM's net income was $49.2
million or 7.2% of sales. Diluted earnings per share
were $0.65 per share for the second
quarter 2011.
AAM defines Adjusted EBITDA to be earnings before interest,
taxes, depreciation and amortization excluding the impact of
curtailment gains or losses, restructuring costs and special
charges related to the closure of the Detroit Manufacturing Complex
and Cheektowaga Manufacturing Facility, and debt refinancing and
redemption costs, to the extent applicable. In the second
quarter of 2012, AAM's Adjusted EBITDA was $103.3 million or 14.0% of sales. For the
second quarter of 2011, AAM's Adjusted EBITDA was $107.5 million or 15.7% of sales.
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 provided by operating activities for the second quarter
2012 was $96.1 million. Capital
spending, net of proceeds from the sale of equipment, for the
second quarter 2012 was $48.1
million. Reflecting the impact of this activity, AAM
generated free cash flow of $48.0
million for the second quarter 2012.
AAM's free cash flow in the second quarter 2012 reflects the
impact of approximately $12.3 million
of cash payments for special charges and restructuring actions
(principally related to the closure of our Detroit Manufacturing
Complex and Cheektowaga Manufacturing Facility).
New Business Backlog
AAM's three-year backlog of new business launching from 2012
through 2014 has grown to $1.2
billion in future annual sales. The growth in new
business backlog reflects the impact of expanded awards from
multiple global vehicle manufacturers for programs in North America and the growth markets of
Brazil and Thailand.
A conference call to review AAM's second quarter 2012 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 July 27, 2012 until 5:00
p.m. ET August 3, 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 95285667.
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 light trucks, sport utility vehicles, passenger cars, crossover
vehicles and commercial vehicles. In addition to locations in
the United States (Michigan, Ohio, Pennsylvania and Indiana), AAM also has offices or facilities
in Brazil, China, Germany, India, Japan,
Luxembourg, Mexico, Poland, Scotland, South
Korea, Sweden and
Thailand.
Cautionary Statement Concerning Forward-Looking
Statements
In this press release, we make statements concerning our
expectations, beliefs, plans, objectives, goals, strategies, and
future events or performance. Such statements are "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and relate to trends and events that may affect
our future financial position and operating results. The terms such
as "will," "may," "could," "would," "plan," "believe," "expect,"
"anticipate," "intend," "project," and similar words of
expressions, as well as statements in future tense, are intended to
identify forward-looking statements. 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; liabilities
arising from warranty claims, product recall, product liability and
legal proceedings to which we are or may become a party; our
ability to realize the expected revenues from our new business
backlog; our ability or our customers' and suppliers' ability to
successfully launch new product programs on a timely basis; changes
in liabilities arising from pension and other postretirement
benefit obligations; 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;
supply shortages or price increases in raw materials, utilities or
other operating supplies for us or our customers as a result of
natural disasters or otherwise; our ability to respond to changes
in technology, increased competition or pricing pressures; reduced
demand for our customers' products (particularly light trucks and
SUVs produced by GM and Chrysler); price volatility in, or reduced
availability of, fuel; 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; 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);
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; 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); our ability to consummate and integrate
acquisitions and joint ventures; 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. It is not
possible to foresee or identify all such factors and we make no
commitment to update any forward-looking statement or to disclose
any facts, events or circumstances after the date hereof that may
affect the accuracy of any forward-looking statement.
For more information...
Christopher M. Son
|
David
Tworek
|
Director,
Investor Relations,
|
Manager,
Communications
|
Corporate
Communications and Marketing
|
(313)
758-4883
|
(313)
758-4814
|
david.tworek@aam.com
|
chris.son@aam.com
|
|
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Six
months ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
(In millions, except per share data)
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
739.8
|
|
$
686.2
|
|
$
1,491.3
|
|
$
1,331.8
|
Cost of
goods sold
|
|
654.0
|
|
555.7
|
|
1,266.3
|
|
1,085.9
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
85.8
|
|
130.5
|
|
225.0
|
|
245.9
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
55.5
|
|
58.8
|
|
117.3
|
|
115.5
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
30.3
|
|
71.7
|
|
107.7
|
|
130.4
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(23.4)
|
|
(20.5)
|
|
(47.4)
|
|
(41.8)
|
Investment
income
|
|
0.1
|
|
0.3
|
|
0.4
|
|
0.6
|
Debt
refinancing costs
|
|
-
|
|
(3.1)
|
|
-
|
|
(3.1)
|
Other
income (expense), net
|
|
(0.6)
|
|
(0.7)
|
|
(1.8)
|
|
0.3
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
6.4
|
|
47.7
|
|
58.9
|
|
86.4
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
1.7
|
|
(0.2)
|
|
3.9
|
|
1.9
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
4.7
|
|
47.9
|
|
55.0
|
|
84.5
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interests
|
|
-
|
|
1.3
|
|
0.9
|
|
2.4
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
|
$
4.7
|
|
$
49.2
|
|
$
55.9
|
|
$
86.9
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
0.06
|
|
$
0.65
|
|
$
0.74
|
|
$
1.15
|
|
|
|
|
|
|
|
|
|
Diluted
shares outstanding
|
|
75.1
|
|
75.4
|
|
75.1
|
|
75.4
|
|
|
|
|
|
|
|
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six
months ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
4.7
|
|
$
47.9
|
|
$
55.0
|
|
$
84.5
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans
|
|
|
(0.5)
|
|
0.4
|
|
(14.6)
|
|
3.5
|
Foreign currency translation
adjustments
|
|
|
(22.5)
|
|
8.3
|
|
(11.9)
|
|
13.5
|
Change in
derivatives
|
|
|
(0.2)
|
|
(0.1)
|
|
5.5
|
|
1.1
|
Other
comprehensive income (loss)
|
|
|
(23.2)
|
|
8.6
|
|
(21.0)
|
|
18.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
|
(18.5)
|
|
56.5
|
|
34.0
|
|
102.6
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interests
|
|
|
-
|
|
1.3
|
|
0.9
|
|
2.4
|
Foreign currency
translation adjustments attributable to
noncontrolling interests
|
|
|
-
|
|
-
|
|
(0.2)
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to
AAM
|
|
|
$
(18.5)
|
|
$
57.8
|
|
$
34.7
|
|
$
104.2
|
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
(In
millions)
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
85.2
|
|
$
169.2
|
Accounts
receivable
|
|
474.2
|
|
333.3
|
Inventories
|
|
208.5
|
|
177.2
|
Prepaid expenses and other
current assets
|
|
93.7
|
|
83.4
|
Total
current assets
|
|
861.6
|
|
763.1
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
990.3
|
|
971.2
|
Goodwill
|
|
155.9
|
|
155.9
|
GM
postretirement cost sharing asset
|
|
253.9
|
|
260.2
|
Other
assets and deferred charges
|
|
179.5
|
|
178.3
|
Total
assets
|
|
$
2,441.2
|
|
$
2,328.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable
|
|
$
439.6
|
|
$
337.1
|
Accrued compensation and
benefits
|
|
96.8
|
|
110.6
|
Deferred revenue
|
|
24.3
|
|
32.9
|
Accrued expenses and other
current liabilities
|
|
131.2
|
|
95.5
|
Total
current liabilities
|
|
691.9
|
|
576.1
|
|
|
|
|
|
Long-term
debt
|
|
1,174.3
|
|
1,180.2
|
Deferred
revenue
|
|
80.0
|
|
88.2
|
Postretirement benefits and other long-term
liabilities
|
|
889.7
|
|
903.8
|
Total
liabilities
|
|
2,835.9
|
|
2,748.3
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit
|
|
(394.7)
|
|
(419.6)
|
Total
liabilities and stockholders' deficit
|
|
$
2,441.2
|
|
$
2,328.7
|
|
|
|
|
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Six
months ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
4.7
|
|
$
47.9
|
|
$
55.0
|
|
$
84.5
|
|
Depreciation and amortization
|
|
|
37.0
|
|
34.9
|
|
73.7
|
|
68.8
|
|
Other
|
|
|
54.4
|
|
32.7
|
|
(104.1)
|
|
(36.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash flow provided by operating activities
|
|
96.1
|
|
115.5
|
|
24.6
|
|
116.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant & equipment
|
|
|
(48.4)
|
|
(40.1)
|
|
(92.9)
|
|
(71.6)
|
|
Proceeds from sales of property, plant & equipment
|
|
|
0.3
|
|
6.3
|
|
1.2
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash flow used in investing activities
|
|
|
(48.1)
|
|
(33.8)
|
|
(91.7)
|
|
(63.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in long-term debt
|
|
|
(74.1)
|
|
(44.1)
|
|
(7.3)
|
|
(47.4)
|
|
Debt issuance costs
|
|
|
-
|
|
(5.3)
|
|
-
|
|
(5.3)
|
|
Employee stock option exercise
|
|
|
-
|
|
-
|
|
0.1
|
|
4.6
|
|
Purchase of treasury stock
|
|
|
-
|
|
-
|
|
(5.9)
|
|
(0.1)
|
|
Purchase of noncontrolling interest
|
|
|
-
|
|
-
|
|
(4.0)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash flow used in financing activities
|
|
|
(74.1)
|
|
(49.4)
|
|
(17.1)
|
|
(48.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
|
|
(1.5)
|
|
0.6
|
|
0.2
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
|
|
(27.6)
|
|
32.9
|
|
(84.0)
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period
|
|
|
112.8
|
|
217.4
|
|
169.2
|
|
244.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at end of period
|
|
|
$
85.2
|
|
$
250.3
|
|
$
85.2
|
|
$
250.3
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six
months ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
|
$
4.7
|
|
$
49.2
|
|
$
55.9
|
|
$
86.9
|
|
Interest
expense
|
|
23.4
|
|
20.5
|
|
47.4
|
|
41.8
|
|
Income tax
expense (benefit)
|
|
1.7
|
|
(0.2)
|
|
3.9
|
|
1.9
|
|
Depreciation and amortization
|
|
37.0
|
|
34.9
|
|
73.7
|
|
68.8
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
66.8
|
|
$
104.4
|
|
$
180.9
|
|
$
199.4
|
|
|
|
|
|
|
|
|
|
|
|
Other
special charges, curtailment gains and restructuring costs
(e)
|
|
36.5
|
|
-
|
|
31.2
|
|
-
|
|
Debt
refinancing and redemption costs
|
|
-
|
|
3.1
|
|
-
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA
|
|
$
103.3
|
|
$
107.5
|
|
$
212.1
|
|
$
202.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt(b)to capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
(In millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt
|
|
|
$
1,174.3
|
|
$
1,180.2
|
|
Less: cash
and cash equivalents
|
|
|
85.2
|
|
169.2
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
at end of period
|
|
|
1,089.1
|
|
1,011.0
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit
|
|
|
|
|
|
(394.7)
|
|
(419.6)
|
|
|
|
|
|
|
|
|
|
|
|
Total
invested capital at end of period
|
|
$
694.4
|
|
$
591.4
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt to capital(c)
|
|
|
156.8%
|
|
171.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow(d)
|
|
|
|
Three
months ended
|
|
Six
months ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
$
96.1
|
|
$
115.5
|
|
$
24.6
|
|
$
116.5
|
|
Less:
Purchases of property, plant & equipment, net of
proceeds
|
|
(48.1)
|
|
(33.8)
|
|
(91.7)
|
|
(63.8)
|
|
|
|
|
|
|
|
|
|
|
|
Free
cash flow
|
|
$
48.0
|
|
$
81.7
|
|
$
(67.1)
|
|
$
52.7
|
|
|
|
|
|
|
|
|
|
|
|
(a) We define
EBITDA to be earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding
the impact of curtailment gains or losses, restructuring
costs and special charges related to the closure of the
Detroit Manufacturing Complex and Cheektowaga Manufacturing
Facility, and debt refinancing and redemption costs, to the extent
applicable. We believe that EBITDA and adjusted EBITDA are
meaningful measures of performance as they are 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 (used in) operating
activities less purchases of property, plant 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 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.
|
(e) Special
charges and restructuring costs of $36.5 million for three months
ended June 30, 2012 and $31.2 million for the six months ended June
30, 2012 primarily relate to the closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility.
This special charge activity includes $28.1 million of expense for
a contingency related to a claim made by the International UAW for
pension and postretirement benefits in the second quarter of 2012
and a $21.8 million postretirement benefit curtailment gain in the
first quarter of 2012.
|
SOURCE American Axle & Manufacturing Holdings, Inc.