Detroit, Michigan, May 3, 2013--
American Axle & Manufacturing Holdings, Inc. (AAM), which is
traded as AXL on the NYSE, today reported its financial results for
the first quarter of 2013.
First Quarter 2013
Results
-
First quarter 2013 sales of $755.6
million
-
Non-GM sales were $188.1 million
-
Gross profit of $104.3 million, or 13.8% of sales
-
Operating income of $44.7 million, or 5.9% of
sales
-
Net income of $7.3 million, or $0.10 per
share
-
AAM's quarterly results reflect the impact of
$11.3 million (or $0.13 per share) of debt refinancing and
redemption costs
-
Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization excluding the impact of debt
refinancing and redemption costs) of $86.6 million or approximately
11.5% of sales
AAM's net income in the first quarter of 2013 was
$7.3 million, or $0.10 per share as compared to net income of $51.2
million, or $0.68 per share, in the first quarter of 2012. In
the first quarter of 2013, AAM's results reflect the impact of
$11.3 million (or $0.13 per share) of debt refinancing and
redemption costs.
"AAM's financial results in the first quarter of
2013 reflect our commitment to deliver improved profitability and
launch performance globally," said AAM's President and Chief
Executive Officer, David C. Dauch. "While we continue to take
actions to improve our operating and financial performance, we
remain focused on flawlessly launching several major programs in
2013. These include products supporting GM's next-generation
full-size pickup truck and SUV program, the RAM Heavy Duty pickup
truck program, as well as AAM's EcoTracTM
Disconnecting All Wheel Drive system."
Dauch also stated, "In the first quarter of 2013,
we took another step in improving AAM's balance sheet strength.
The debt refinancing activities successfully completed in the
quarter were highlighted by the issuance of $400 million of 6.25%
Senior Notes due 2021. This supports AAM's future operational
and financial flexibility, and improves our capital structure."
Net sales in the first quarter of 2013 were
approximately $755.6 million as compared to $751.5 million in the
first quarter of 2012. Sales in the first quarter of 2013
reflect the adverse impact of approximately $12.5 million related
to the labor strike at General Motors' Rayong factory in
Thailand.
Non-GM sales were $188.1 million in the first
quarter of 2013 as compared to $193.6 million in the first quarter
of 2012.
AAM's content-per-vehicle is measured by the
dollar value of our products supporting our customers' North
American light truck and SUV programs. In the first quarter of
2013, AAM's content-per-vehicle increased to $1,504 as compared to
$1,475 in the first quarter of 2012.
AAM's gross profit in the first quarter of 2013
was $104.3 million or 13.8% of sales as compared to $139.2 million
or 18.5% of sales in the first quarter in 2012.
AAM's SG&A spending in the first quarter of
2013 was $59.6 million, or 7.9% of sales, as compared to $61.8
million, or 8.2% of sales, in the first quarter of 2012.
AAM's R&D spending in the first quarter of 2013 was $28.5
million as compared to $30.1 million in the first quarter of
2012.
In the first quarter of 2013, AAM's operating
income was $44.7 million or 5.9% of sales as compared to $77.4
million or 10.3% of sales in the first quarter of 2012.
In the first quarter of 2013, AAM's net income was
$7.3 million or $0.10 per share as compared to $51.2 million or
$0.68 per share in the first quarter of 2012.
AAM defines Adjusted EBITDA to be earnings before
interest, taxes, depreciation and amortization excluding the impact
of debt refinancing and redemption costs. In the first
quarter of 2013, AAM's Adjusted EBITDA was $86.6 million or 11.5%
of sales.
AAM defines free cash flow to be net cash used in
operating activities less capital expenditures net of proceeds from
the sale of property, plant and equipment and the sale-leaseback of
equipment.
Net cash used in operating activities for the
first quarter 2013 was $26.8 million. Capital spending, net
of proceeds from the sale of property, plant and equipment and the
sale-leaseback of equipment, for the first quarter 2013 was $43.9
million. Reflecting the impact of this activity, AAM's free
cash flow was a use of $70.7 million in the first quarter 2013.
A conference call to review AAM's first quarter
2013 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 May 3, 2013 until 5:00 p.m. ET May 10, 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 32371382.
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
Liz Ventimiglia
Manager, Investor Relations
(313) 758-4635
liz.ventimiglia@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 |
|
March 31, |
|
2013 |
|
2012 |
|
(in
millions, except per share data) |
|
|
|
|
| Net sales |
$ |
755.6 |
|
|
$ |
751.5 |
|
|
|
|
|
| Cost of goods sold |
651.3 |
|
|
612.3 |
|
|
|
|
|
| Gross profit |
104.3 |
|
|
139.2 |
|
|
|
|
|
| Selling, general and administrative expenses |
59.6 |
|
|
61.8 |
|
|
|
|
|
| Operating income |
44.7 |
|
|
77.4 |
|
|
|
|
|
| Interest expense |
(29.1) |
|
|
(24.0) |
|
|
|
|
|
| Investment income |
0.1 |
|
|
0.3 |
|
|
|
|
|
| Other income (expense) |
|
|
|
| Debt refinancing and redemption costs |
(11.3) |
|
|
- |
|
| Other income (expense), net |
0.5 |
|
|
(1.2) |
|
|
|
|
|
| Income before income taxes |
4.9 |
|
|
52.5 |
|
|
|
|
|
| Income tax expense (benefit) |
(2.4) |
|
|
2.2 |
|
|
|
|
|
| Net income |
7.3 |
|
|
50.3 |
|
|
|
|
|
| Net loss attributable to noncontrolling interests |
- |
|
|
0.9 |
|
|
|
|
|
| Net income attributable to AAM |
$ |
7.3 |
|
|
$ |
51.2 |
|
|
|
|
|
| Diluted earnings per share |
$ |
0.10 |
|
|
$ |
0.68 |
|
|
|
|
|
| Diluted shares outstanding |
76.2 |
|
|
75.0 |
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(Unaudited)
|
Three
months ended |
|
March 31, |
|
2013 |
|
2012 |
|
(in
millions) |
|
|
|
|
| Net income |
$ |
7.3 |
|
|
$ |
50.3 |
|
|
|
|
|
| Other comprehensive income (loss), net of tax |
|
|
|
| Defined benefit plans |
(1.1) |
|
|
(14.0) |
|
| Foreign currency translation adjustments |
4.9 |
|
|
10.7 |
|
| Change in derivatives |
0.5 |
|
|
5.6 |
|
| Other comprehensive income |
4.3 |
|
|
2.3 |
|
|
|
|
|
| Comprehensive income |
11.6 |
|
|
52.6 |
|
|
|
|
|
| Net loss attributable to noncontrolling interests |
- |
|
|
0.9 |
|
| Foreign currency translation adjustments attributable to
noncontrolling interests |
- |
|
|
0.2 |
|
| Comprehensive income attributable to AAM |
$ |
11.6 |
|
|
$ |
53.3 |
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
March 31,
2013 |
|
December 31,
2012 |
|
(in
millions) |
| ASSETS |
|
|
|
| Assets |
|
|
|
| Cash and cash equivalents |
$ |
100.8 |
|
|
$ |
62.4 |
|
| Accounts receivable, net |
535.3 |
|
|
463.4 |
|
| Inventories, net |
240.6 |
|
|
224.3 |
|
| Prepaid expenses and other current assets |
128.4 |
|
|
122.0 |
|
| Total current assets |
1,005.1 |
|
|
872.1 |
|
|
|
|
|
| Property, plant and equipment, net |
1,043.5 |
|
|
1,009.7 |
|
| Deferred income taxes |
365.6 |
|
|
366.1 |
|
| Goodwill |
156.4 |
|
|
156.4 |
|
| GM postretirement cost sharing asset |
253.8 |
|
|
259.7 |
|
| Other assets and deferred charges |
205.2 |
|
|
202.0 |
|
| Total assets |
$ |
3,029.6 |
|
|
$ |
2,866.0 |
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS'
DEFICIT |
|
|
|
| Liabilities and Stockholders'
Deficit |
|
|
|
| Accounts payable |
$ |
454.6 |
|
|
$ |
396.1 |
|
| Accrued compensation and benefits |
83.9 |
|
|
84.9 |
|
| Deferred revenue |
16.0 |
|
|
17.2 |
|
| Accrued expenses and other current liabilities |
96.6 |
|
|
102.6 |
|
| Total current
liabilities |
651.1 |
|
|
600.8 |
|
|
|
|
|
| Long-term debt |
1,570.2 |
|
|
1,454.1 |
|
| Deferred revenue |
78.4 |
|
|
82.2 |
|
| Postretirement benefits and other long-term
liabilities |
837.8 |
|
|
849.7 |
|
| Total liabilities |
3,137.5 |
|
|
2,986.8 |
|
|
|
|
|
| Total stockholders' deficit |
(107.9) |
|
|
(120.8) |
|
| Total liabilities and stockholders'
deficit |
$ |
3,029.6 |
|
|
$ |
2,866.0 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
|
|
|
Three
months ended |
|
|
March 31, |
|
|
2013 |
|
2012 |
|
|
(in
millions) |
| Operating activities |
|
|
|
|
| Net income |
|
$ |
7.3 |
|
|
$ |
50.3 |
|
| Adjustments to reconcile net income to net cash used in
operating activities |
|
|
|
|
| Depreciation and amortization |
|
41.3 |
|
|
36.7 |
|
| Other |
|
(75.4) |
|
|
(158.5) |
|
| Net cash used in operating
activities |
|
(26.8) |
|
|
(71.5) |
|
|
|
|
|
|
| Investing Activities |
|
|
|
|
| Purchases of property, plant & equipment |
|
(47.9) |
|
|
(44.5) |
|
| Proceeds from sale of property, plant & equipment |
|
0.1 |
|
|
0.9 |
|
| Proceeds from sale-leaseback of equipment |
|
3.9 |
|
|
- |
|
| Net cash used in investing
activities |
|
(43.9) |
|
|
(43.6) |
|
|
|
|
|
|
| Financing Activities |
|
|
|
|
| Net increase in long-term debt |
|
114.7 |
|
|
66.8 |
|
| Debt issuance costs |
|
(6.2) |
|
|
- |
|
| Purchase of noncontrolling interest |
|
- |
|
|
(4.0) |
|
| Employee stock option exercises |
|
- |
|
|
0.1 |
|
| Purchase of treasury stock |
|
- |
|
|
(5.9) |
|
| Net cash provided by financing
activities |
|
108.5 |
|
|
57.0 |
|
|
|
|
|
|
| Effect of exchange rate changes on cash |
|
0.6 |
|
|
1.7 |
|
|
|
|
|
|
| Net increase (decrease) in cash and
cash equivalents |
|
38.4 |
|
|
(56.4) |
|
|
|
|
|
|
| Cash and cash equivalents at beginning of period |
|
62.4 |
|
|
169.2 |
|
|
|
|
|
|
| Cash and cash equivalents at end of
period |
|
$ |
100.8 |
|
|
$ |
112.8 |
|
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 March
31, |
|
2013 |
|
2012 |
|
(in
millions) |
|
|
|
|
| Net income attributable to AAM |
$ |
7.3 |
|
|
$ |
51.2 |
|
| Interest expense |
29.1 |
|
|
24.0 |
|
| Income tax expense (benefit) |
(2.4) |
|
|
2.2 |
|
| Depreciation and amortization |
41.3 |
|
|
36.7 |
|
|
|
|
|
| EBITDA |
75.3 |
|
|
114.1 |
|
|
|
|
|
| Debt refinancing and redemption costs |
11.3 |
|
|
- |
|
| Other special charges, curtailment gains and restructuring
costs(e) |
- |
|
|
(5.3) |
|
|
|
|
|
| ADJUSTED EBITDA |
$ |
86.6 |
|
|
$ |
108.8 |
|
Net
debt(b) to
capital
|
March 31, 2013 |
|
December 31, 2012 |
|
(in
millions, except percentages) |
|
|
|
|
| Total debt |
$ |
1,570.2 |
|
|
$ |
1,454.1 |
|
| Less: cash and cash equivalents |
100.8 |
|
|
62.4 |
|
|
|
|
|
| Net debt at end of
period |
1,469.4 |
|
|
1,391.7 |
|
|
|
|
|
| Stockholders' deficit |
(107.9) |
|
|
(120.8) |
|
|
|
|
|
| Total invested capital at end of
period |
$ |
1,361.5 |
|
|
$ |
1,270.9 |
|
|
|
|
|
| Net debt to
capital(c) |
107.9% |
|
|
109.5% |
|
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.
Free Cash
Flow(d)
|
Three Months Ended March
31, |
|
2013 |
|
2012 |
|
(in
millions) |
|
|
|
|
| Net cash used in operating activities |
$ |
(26.8) |
|
|
$ |
(71.5) |
|
|
|
|
|
| Less: Purchases of property, plant & equipment, net of
proceeds from sale of property, plant & equipment and
sale-leaseback of equipment |
(43.9) |
|
|
(43.6) |
|
|
|
|
|
| Free cash flow |
$ |
(70.7) |
|
|
$ |
(115.1) |
|
________________________________________
-
We define EBITDA to be earnings before interest,
taxes, depreciation and amortization. Adjusted EBITDA is
defined as EBITDA excluding the impact of curtailment gains,
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.
-
Net debt is equal to total debt less cash and cash
equivalents.
-
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.
-
We define free cash flow as net cash used in
operating activities less capital expenditures net of
proceeds from the 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.
-
Special charges, curtailment gains and
restructuring costs for the three months ended March 31, 2012
reflect the favorable impact of postretirement benefit curtailment
gains of $21.8 million (or $0.29 per share); these gains were
partially offset by special charges and restructuring costs of
$16.5 million (or $0.22 per share), primarily related to the
closure of our Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility.
American Axle & Manufacturing
First Quarter 2013 Earnings Release
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: American Axle & Manufacturing Holdings, Inc via Thomson
Reuters ONE
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