American Axle & Manufacturing Reports Fourth Quarter and Full
Year 2012 Financial Results
DETROIT, Feb. 8, 2013 /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 2012.
Fourth Quarter 2012 Results
- Fourth quarter 2012 sales of $736.7
million, up 21.6% on a year-over-year basis
- Non-GM sales grew by 16.6% on a year-over-year basis to
$204.1 million
- Gross profit of $84.0 million, or
11.4% of sales
- Operating income of $18.6
million, or 2.5% of sales
- Net income of $319.9 million, or
$4.21 per share, which includes the
favorable impact of a $337.5 million
benefit related to the reversal of our valuation allowance against
our net federal deferred tax assets for entities in the United States
- Adjusted EBITDA (earnings before interest, taxes, depreciation
and amortization excluding the impact of curtailments, asset
impairments, 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) of $64.5
million or approximately 9% of sales
- AAM's quarterly results reflect the impact of $9.7 million (or $0.13 per share) of debt refinancing and
redemption costs and $6.2 million (or
$0.08 per share) of restructuring
costs related to the closure of our Detroit Manufacturing Complex
and Cheektowaga Manufacturing Facility
Full Year 2012 Results
- Full year 2012 sales of $2.93
billion, up 13.4% on a year-over-year basis
- Non-GM sales grew 11.6% on a year-over-year basis to
$792.6 million
- Gross profit of $399.7 million,
or 13.6% of sales
- Operating income of $156.4
million, or 5.3% of sales
- Net income of $367.7 million, or $4.87 per share
- Adjusted EBITDA of $346.7
million, or approximately 12% of sales
- AAM's full year results reflect the impact of $19.8 million (or $0.26 per share) of debt refinancing and
redemption costs and $40.6 million
(or $0.54 per share) of restructuring
costs related to the closure of our Detroit Manufacturing Complex
and Cheektowaga Manufacturing Facility
AAM's net income in the fourth quarter of 2012 was $319.9 million, or $4.21 per share, which includes the favorable
impact of a $337.5 million benefit
related to the reversal of our valuation allowance against our net
federal deferred tax assets for entities in the United
States. This compares to net income of $31.1 million, or $0.41 per share, in the fourth quarter of
2011.
In the fourth quarter of 2012, AAM's results reflect the impact
of $9.7 million (or $0.13 per share) of debt refinancing and
redemption costs and $6.2 million (or
$0.08 per share) of restructuring
costs related to the closure of our Detroit Manufacturing Complex
and Cheektowaga Manufacturing Facility.
In the fourth quarter of 2011, AAM's results reflect the impact
of $4.8 million (or $0.06 per share) of special charges and
restructuring costs primarily related to the closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility.
For the full year 2012, AAM's net income was $367.7 million, or $4.87 per share. This compares to net
income of $142.8 million, or
$1.89 per share in
2011.
On a full year basis in 2012, AAM incurred $19.8 million (or $0.26 per share) of debt refinancing and
redemption costs and $40.6 million
(or $0.54 per share) of restructuring
costs related to the closure of our Detroit Manufacturing Complex
and Cheektowaga Manufacturing Facility.
On a full year basis in 2011, AAM incurred $15.0 million (or $0.20 per share) of special charges, asset
impairments and restructuring costs primarily related to the
planned closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility. Also included in 2011
were special charges of $3.1 million
related to debt redemption and 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.
"2012 was an eventful year for AAM, characterized by substantial
growth and diversification due to a high level of global launch
activity. We made great strides in executing our
diversification initiatives while strengthening our global
footprint through our expanding customer and product base," said
AAM's President and Chief Executive Officer, David C. Dauch. "Financial performance in
2012 was characterized by both successes and challenges. In
the second half of 2012, we experienced operational challenges and
lower profitability, principally associated with an increased level
of launch activity. We are taking necessary actions to correct
these performance issues. As we move forward we do so with a
disciplined and forward-looking approach, reaffirming our
commitment to delivering quality, technology leadership and
operational excellence."
Net sales in the fourth quarter of 2012 increased approximately
21.6% to $736.7 million as compared
to $605.6 million in the fourth
quarter of 2011. Non-GM sales grew 16.6% on a year-over-year
basis to $204.1 million in the fourth
quarter of 2012 as compared to $175.0
million in the fourth 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 fourth quarter of 2012, AAM's
content-per-vehicle was $1,514 as
compared to $1,498 in the fourth
quarter of 2011. For the full year 2012, AAM's
content-per-vehicle was $1,473 as
compared to $1,487 in 2011.
Net sales for the full year 2012 increased by 13.4% to
$2.9 billion as compared to
$2.6 billion in 2011. Non-GM
sales grew 11.6% on a year-over-year basis to $792.6 million in 2012 as compared to
$710.0 million in 2011.
AAM's gross profit in the fourth quarter of 2012 was
$84.0 million or 11.4% of
sales. For the full year 2012, AAM's gross profit was
$399.7 million, or 13.6% of
sales.
AAM defines Adjusted EBITDA to be earnings before interest,
taxes, depreciation and amortization excluding the impact of
curtailments, asset impairments, 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 fourth
quarter of 2012, AAM's Adjusted EBITDA was $64.5 million or 8.8% of sales. For the full year
2012, AAM's Adjusted EBITDA was $346.7
million or 11.8% of sales.
AAM's SG&A spending in the fourth quarter of 2012 was
$65.4 million, or 8.9% of sales, as
compared to $57.2 million, or 9.4% of
sales, in the fourth quarter of 2011. AAM's R&D spending
in the fourth quarter of 2012 was $33.1
million as compared to $28.2
million in the fourth quarter of 2011.
AAM's SG&A spending for the full year 2012 was $243.3 million, or 8.3% of sales, as compared to
$231.7 million, or 9.0% of sales, for
the full year 2011. AAM's R&D spending for the full year
2012 was $123.4 million as compared
to $113.6 million in 2011.
In the fourth quarter of 2012, AAM's operating income was
$18.6 million or 2.5% of sales.
For the full year 2012, AAM's operating income was $156.4 million, or 5.3% of
sales.
In the fourth quarter of 2012, AAM's net income was $319.9 million or 43.4% of sales. Diluted
earnings per share (EPS) were $4.21
per share in the fourth quarter of 2012. For the full year
2012, AAM's net income was $367.7
million or 12.5% of sales. Diluted earnings per share
(EPS) were $4.87 per share for the
full year 2012. These results include the favorable impact of
a $337.5 million benefit related to
the reversal of our valuation allowance against our net federal
deferred tax assets for entities in the
United States.
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 property, plant & equipment and the
sale-leaseback of equipment.
Net cash used in operating activities for the full year 2012 was
$175.5 million. Capital
spending, net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment, for the full year
2012 was $185.4 million.
Reflecting the impact of this activity, AAM's free cash flow was a
use of $360.9 million for the full
year 2012.
AAM's free cash flow for the full year 2012 reflects the impact
of $225.4 million of contributions to
our defined benefit pension plans. On September 27, 2012, AAM and the Pension Benefit
Guaranty Corporation entered into an agreement in connection with
the closures of the Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility. As part of this agreement, in
September 2012, we contributed
$114.7 million in excess of our
statutory minimums to our U.S. hourly pension plan which is
included in the contributions described above. AAM's free
cash flow for the full year 2012 also reflects cash used for
restructuring activities of $37.9
million.
A conference call to review AAM's fourth quarter and full year
2012 results is scheduled today at 10:00 AM
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, 2013 until 5:00 p.m. ET February 15,
2013 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 86568260.
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
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.
In this earnings release, we make statements concerning our
expectations, beliefs, plans, objectives, goals, strategies, and
future events or performance. 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 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 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 respond to changes in
technology, increased competition or pricing pressures; 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; liabilities arising from warranty claims,
product recall or field actions, product liability and legal
proceedings to which we are or may become a party; 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; price volatility in, or reduced
availability of, fuel; 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 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
disruptions 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; 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; our ability to attract and
retain key associates; risks of noncompliance with environmental
laws and regulations or risks of environmental issues that could
result in unforeseen costs at our facilities; our ability or our
customers' and suppliers' ability to comply with the Dodd-Frank Act
and other regulatory requirements and the potential costs of such
compliance; our ability to consummate and integrate acquisitions
and joint ventures; 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
Director, Investor
Relations,
Corporate Communications and
Marketing
(313)
758-4814
chris.son@aam.com
David
Tworek
Manager, Communications
(313) 758-4883
david.tworek@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
|
|
Twelve
months ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(In
millions, except per share data)
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$736.7
|
|
$605.6
|
|
$2,930.9
|
|
$2,585.0
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
652.7
|
|
499.9
|
|
2,531.2
|
|
2,129.9
|
|
|
|
|
|
|
|
|
Gross
profit
|
84.0
|
|
105.7
|
|
399.7
|
|
455.1
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
65.4
|
|
57.2
|
|
243.3
|
|
231.7
|
|
|
|
|
|
|
|
|
Operating
income
|
18.6
|
|
48.5
|
|
156.4
|
|
223.4
|
|
|
|
|
|
|
|
|
Interest
expense
|
(28.9)
|
|
(22.4)
|
|
(101.6)
|
|
(83.9)
|
Investment
income
|
-
|
|
0.3
|
|
0.6
|
|
1.2
|
Debt
refinancing and redemption costs
|
(9.7)
|
|
-
|
|
(19.8)
|
|
(3.1)
|
Other
income (expense), net
|
(0.1)
|
|
0.4
|
|
(4.1)
|
|
0.5
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
(20.1)
|
|
26.8
|
|
31.5
|
|
138.1
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
(340.0)
|
|
(3.2)
|
|
(335.2)
|
|
1.0
|
|
|
|
|
|
|
|
|
Net
income
|
319.9
|
|
30.0
|
|
366.7
|
|
137.1
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling
interests
|
-
|
|
1.1
|
|
1.0
|
|
5.7
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$319.9
|
|
$
31.1
|
|
$
367.7
|
|
$
142.8
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
$
4.21
|
|
$
0.41
|
|
$
4.87
|
|
$
1.89
|
|
|
|
|
|
|
|
|
Diluted
shares outstanding
|
76.0
|
|
75.3
|
|
75.4
|
|
75.4
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (LOSS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Twelve
months ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$319.9
|
|
$
30.0
|
|
$366.7
|
|
$137.1
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
Defined benefit
plans
|
58.3
|
|
(67.4)
|
|
(58.9)
|
|
(63.5)
|
Foreign currency
translation adjustments
|
(2.3)
|
|
(10.6)
|
|
(9.4)
|
|
(27.3)
|
Change in
derivatives
|
0.2
|
|
1.1
|
|
7.8
|
|
(6.8)
|
Other
comprehensive income (loss)
|
56.2
|
|
(76.9)
|
|
(60.5)
|
|
(97.6)
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
376.1
|
|
(46.9)
|
|
306.2
|
|
39.5
|
|
|
|
|
|
|
|
|
Net loss
attributable to noncontrolling interests
|
-
|
|
1.1
|
|
1.0
|
|
5.7
|
Foreign currency translation
adjustments attributable
to noncontrolling
interests
|
0.1
|
|
0.1
|
|
0.3
|
|
0.2
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to
AAM
|
$376.0
|
|
$(45.9)
|
|
$306.9
|
|
$
45.0
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
(In
millions)
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
62.4
|
|
$
169.2
|
Accounts receivable,
net
|
463.4
|
|
333.3
|
Inventories,
net
|
224.3
|
|
177.2
|
Deferred income
taxes
|
34.9
|
|
11.3
|
Prepaid expenses and
other
|
87.1
|
|
72.1
|
Total
current assets
|
872.1
|
|
763.1
|
|
|
|
|
Property,
plant and equipment, net
|
1,009.7
|
|
971.2
|
Deferred
income taxes
|
366.1
|
|
20.1
|
Goodwill
|
156.4
|
|
155.9
|
GM
postretirement cost sharing asset
|
259.7
|
|
260.2
|
Other
assets and deferred charges
|
202.0
|
|
158.2
|
Total
assets
|
$
2,866.0
|
|
$
2,328.7
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
396.1
|
|
$
337.1
|
Accrued compensation
and benefits
|
84.9
|
|
110.6
|
Deferred
revenue
|
17.2
|
|
32.9
|
Deferred income
taxes
|
1.4
|
|
9.9
|
Other accrued
expenses
|
101.2
|
|
85.6
|
Total
current liabilities
|
600.8
|
|
576.1
|
|
|
|
|
Long-term
debt
|
1,454.1
|
|
1,180.2
|
Deferred
income taxes
|
9.5
|
|
7.7
|
Deferred
revenue
|
82.2
|
|
88.2
|
Postretirement benefits and other long-term
liabilities
|
840.2
|
|
896.1
|
Total
liabilities
|
2,986.8
|
|
2,748.3
|
|
|
|
|
Stockholders' deficit
|
(120.8)
|
|
(419.6)
|
Total
liabilities and stockholders' deficit
|
$
2,866.0
|
|
$
2,328.7
|
|
|
|
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Twelve
months ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
(In
millions)
|
|
(In
millions)
|
Operating activities
|
|
|
|
|
|
|
|
|
Net
income
|
|
$319.9
|
|
$
30.0
|
|
$366.7
|
|
$137.1
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
Asset
impairments and related indirect inventory obsolescence
|
|
5.8
|
|
-
|
|
5.8
|
|
8.7
|
Depreciation and amortization
|
|
39.8
|
|
35.6
|
|
152.2
|
|
139.4
|
Other
|
|
(344.4)
|
|
(56.5)
|
|
(700.2)
|
|
(341.5)
|
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) operating activities
|
|
21.1
|
|
9.1
|
|
(175.5)
|
|
(56.3)
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(63.9)
|
|
(52.1)
|
|
(207.6)
|
|
(163.1)
|
Proceeds from
sale of property, plant & equipment
|
|
7.9
|
|
1.0
|
|
10.1
|
|
8.9
|
Proceeds from
sale-leaseback of equipment
|
|
12.1
|
|
-
|
|
12.1
|
|
-
|
Purchase
buyouts of leased equipment
|
|
-
|
|
(13.4)
|
|
-
|
|
(13.4)
|
Acquisition,
net
|
|
-
|
|
(16.5)
|
|
-
|
|
(16.5)
|
|
|
|
|
|
|
|
|
|
Net
cash used in investing activities
|
|
(43.9)
|
|
(81.0)
|
|
(185.4)
|
|
(184.1)
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in long-term debt
|
|
(123.1)
|
|
133.0
|
|
273.9
|
|
173.6
|
Debt issuance
costs
|
|
(0.5)
|
|
(5.2)
|
|
(10.6)
|
|
(10.9)
|
Purchase of
noncontrolling interest
|
|
-
|
|
-
|
|
(4.0)
|
|
-
|
Employee
stock option exercises
|
|
-
|
|
-
|
|
0.1
|
|
4.6
|
Purchase of
treasury stock
|
|
-
|
|
-
|
|
(5.9)
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) financing activities
|
|
(123.6)
|
|
127.8
|
|
253.5
|
|
167.2
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
|
(0.2)
|
|
(1.1)
|
|
0.6
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
|
(146.6)
|
|
54.8
|
|
(106.8)
|
|
(75.4)
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period
|
|
209.0
|
|
114.4
|
|
169.2
|
|
244.6
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at end of period
|
|
$
62.4
|
|
$169.2
|
|
$
62.4
|
|
$169.2
|
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,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
|
$319.9
|
|
$
31.1
|
|
$
367.7
|
|
$
142.8
|
Interest
expense
|
|
28.9
|
|
22.4
|
|
101.6
|
|
83.9
|
Income tax
expense (benefit)
|
|
(340.0)
|
|
(3.2)
|
|
(335.2)
|
|
1.0
|
Depreciation and amortization
|
|
39.8
|
|
35.6
|
|
152.2
|
|
139.4
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
48.6
|
|
$
85.9
|
|
$
286.3
|
|
$
367.1
|
|
|
|
|
|
|
|
|
|
Debt
refinancing and redemption costs
|
|
9.7
|
|
-
|
|
19.8
|
|
3.1
|
Other
special charges, asset impairments, curtailments and restructuring
costs(e)
|
|
6.2
|
|
4.8
|
|
40.6
|
|
16.1
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA
|
|
$
64.5
|
|
$
90.7
|
|
$
346.7
|
|
$
386.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt(b) to capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt
|
|
$
1,454.1
|
|
$
1,180.2
|
Less: cash
and cash equivalents
|
|
62.4
|
|
169.2
|
|
|
|
|
|
Net debt
at end of period
|
|
1,391.7
|
|
1,011.0
|
|
|
|
|
|
Stockholders' deficit
|
|
(120.8)
|
|
(419.6)
|
|
|
|
|
|
Total
invested capital at end of period
|
|
$
1,270.9
|
|
$
591.4
|
|
|
|
|
|
Net
debt to capital(c)
|
|
109.5%
|
|
171.0%
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow(d)
|
|
|
|
|
|
|
|
Three
months ended
|
|
Twelve
months ended
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
(In
millions)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities
|
|
$
21.1
|
|
$
9.1
|
|
$
(175.5)
|
|
$
(56.3)
|
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
|
|
$
21.1
|
|
$
14.3
|
|
$
(175.5)
|
|
$
(51.1)
|
|
|
|
|
|
|
|
|
|
Less:
Purchases of property, plant & equipment, net of proceeds from
sale of property,
|
|
(43.9)
|
|
(51.1)
|
|
(185.4)
|
|
(154.2)
|
plant
& equipment and sale-leaseback of equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
cash flow
|
|
$
(22.8)
|
|
$(36.8)
|
|
$
(360.9)
|
|
$
(205.3)
|
|
|
Notes to
Supplemental Data
|
(a)
We define EBITDA to be earnings before interest, taxes,
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
excluding the impact of curtailments, asset impairments,
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 sale of property, plant and
equipment and the sale-leaseback 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 $6.2 million for three months ended December 31, 2012 and $40.6
million for the twelve months ended December 31, 2012 primarily
relate to the closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility. This special charge activity includes
$28.7 million of expense related to pension and postretirement
benefits to be provided to certain eligible UAW associates as a
result of the Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility plant closures, $33.7 million of expense
primarily related to asset impairments, asset redeployment and
other restructuring costs associated with the closures of Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility and a
$21.8 million postretirement benefit curtailment gain recorded in
the first quarter of 2012.
|
SOURCE American Axle & Manufacturing Holdings, Inc.