In the news release, AAM Reports
Second Quarter 2013 Financial Results, by American Axle &
Manufacturing Holdings, Inc. issued over Thomson on August 2, 2013,
there was a typographical error. The sixth paragraph,
final sentence, should read "$1,504 in the first quarter of 2013"
rather than "$1,504 million in the first quarter of 2013". The
complete, corrected release follows:
Detroit, Michigan, August 2, 2013-- American Axle
& Manufacturing Holdings, Inc. (AAM), which is traded as AXL on
the NYSE, today reported its financial results for the second
quarter 2013.
Second Quarter 2013
Results
-
Second quarter 2013 sales of $799.6 million, up
8.1% on a year-over-year basis
-
Non-GM sales grew 12.9% on a year-over-year basis
to $223.8 million
-
Gross profit of $122.2 million, or 15.3% of
sales
-
Operating income of $61.7 million, or 7.7% of
sales
-
Net income of $25.8 million, or $0.34 per
share
-
Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization excluding the impact of non-recurring
or extraordinary items) of $102.3 million or approximately 12.8% of
sales
AAM's net income in the second quarter of 2013 was
$25.8 million, or $0.34 per share. This compares to net
income of $4.7 million or $0.06 per share in the second quarter of
2012. In the second quarter of 2012, AAM's results reflected
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 is pleased to report solid sequential sales
growth and improved profitability in the second quarter of 2013,"
said AAM's President and Chief Executive Officer, David C.
Dauch. "AAM is benefiting from a strong recovery in the North
American light truck market, as well as the launch of many new
products designed to help our global customer base increase fuel
efficiency, reduce emissions and improve safety, ride and handling
performance. The combination of these factors and the
continued progress in our operational efficiency position us to
continue improving AAM's financial performance in the second half
of 2013."
Net sales in the second quarter of 2013 increased
approximately 8.1% to $799.6 million as compared to $739.8 million
in the second quarter of 2012. Non-GM sales were up 12.9% to
$223.8 million in the second quarter of 2013 as compared to $198.2
million in the second quarter of 2012.
AAM's net sales in the first half of 2013
increased approximately 4.7% to $1.56 billion as compared to $1.49
billion in the first half of 2012. Non-GM sales in the first
half of 2013 increased approximately 5.1% on a year-over-year basis
to $411.9 million as compared to $391.8 million in the first half
of 2012.
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
2013, AAM's content-per-vehicle increased to $1,554 as compared to
$1,439 in the second quarter of 2012 and $1,504 in the first
quarter of 2013.
AAM's gross profit in the second quarter of 2013
was $122.2 million or 15.3% of sales. For the second quarter
of 2012, AAM's gross profit was $85.8 million or 11.6% of sales.
AAM's gross profit for the first half of 2013 was
$226.5 million as compared to $225.0 million in the first half of
2012. Gross margin was 14.6% in the first half of 2013 as
compared to 15.1% in the first half of 2012.
AAM's SG&A spending in the second quarter of
2013 was $60.5 million, or 7.6% of sales, as compared to $55.5
million, or 7.5% of sales, in the second quarter of 2012.
AAM's R&D spending in the second quarter of 2013 was
$27.3 million as compared to $28.8 million in the second quarter of
2012.
In the first half of 2013, AAM's SG&A spending
was $120.1 million as compared to $117.3 million in the first half
of 2012. AAM's R&D spending decreased $3.1 million in the
first half of 2013 on a year-over-year basis to $55.8 million as
compared to $58.9 million in the first half of 2012.
In the second quarter of 2013, AAM's operating
income was $61.7 million or 7.7% of sales as compared to $30.3
million or 4.1% of sales in the second quarter of 2012.
AAM's operating income in the first half of 2013
was $106.4 million as compared to $107.7 million in the first half
of 2012. Operating margin was 6.8% in the first half of 2013 as
compared to 7.2% in the first half of 2012.
In the second quarter of 2013, AAM's net income
was $25.8 million or $0.34 per share. For the second quarter
of 2012, AAM's net income was $4.7 million or $0.06 per share.
AAM defines Adjusted EBITDA to be earnings before
interest, taxes, depreciation and amortization excluding the impact
of debt refinancing and redemption costs. In the second
quarter of 2013, AAM's Adjusted EBITDA was $102.3 million or 12.8%
of sales. In the first half of 2013, AAM's Adjusted EBITDA
was $188.9 million or 12.1% of sales.
AAM defines free cash flow to be net cash provided
by operating activities less capital expenditures net of proceeds
from the sale of property, plant and equipment and the
sale-leaseback of equipment.
Net cash provided by operating activities for the
second quarter 2013 was $60.0 million. Capital spending, net of
proceeds from the sale of property, plant and equipment and the
sale-leaseback of equipment, for the second quarter 2013 was $56.7
million. Reflecting the impact of this activity, AAM
generated free cash flow of $3.3 million for the second quarter
2013.
Net cash provided by operating activities for the
first half of 2013 was $33.2 million. Capital spending, net of
proceeds from the sale of property, plant and equipment and the
sale-leaseback of equipment, for the first half of 2013 was $100.6
million. Reflecting the impact of this activity, AAM's free
cash flow was a use of $67.4 million in the first half of 2013.
A conference call to review AAM's second quarter
2013 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 (855)
681-2072 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 August 2, 2013 until 5:00 p.m. ET August 9, 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 14713803.
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.
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 or 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 continuing market weakness
in the Euro-zone; reduced purchases of our products by General
Motors Company (GM), Chrysler Group LLC (Chrysler) or other
customers; reduced demand for our customers' products (particularly
light trucks and sport utility vehicles (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; 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); 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;
availability of financing for working capital, capital
expenditures, research and development (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; and 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 |
|
Six
months ended |
|
June 30, |
|
June 30, |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
(in
millions, except per share data) |
|
(in
millions, except per share data) |
|
|
|
|
|
|
|
|
Net sales |
$ |
799.6 |
|
|
$ |
739.8 |
|
|
$ |
1,555.2 |
|
|
$ |
1,491.3 |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
677.4 |
|
|
654.0 |
|
|
1,328.7 |
|
|
1,266.3 |
|
|
|
|
|
|
|
|
|
Gross profit |
122.2 |
|
|
85.8 |
|
|
226.5 |
|
|
225.0 |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
60.5 |
|
|
55.5 |
|
|
120.1 |
|
|
117.3 |
|
|
|
|
|
|
|
|
|
Operating income |
61.7 |
|
|
30.3 |
|
|
106.4 |
|
|
107.7 |
|
|
|
|
|
|
|
|
|
Interest expense |
(28.8 |
) |
|
(23.4 |
) |
|
(57.9 |
) |
|
(47.4 |
) |
|
|
|
|
|
|
|
|
Investment income |
0.2 |
|
|
0.1 |
|
|
0.3 |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
Debt refinancing and redemption costs |
0.1 |
|
|
- |
|
|
(11.2 |
) |
|
- |
|
Other, net |
(2.0 |
) |
|
(0.6 |
) |
|
(1.5 |
) |
|
(1.8 |
) |
|
|
|
|
|
|
|
|
Income before income taxes |
31.2 |
|
|
6.4 |
|
|
36.1 |
|
|
58.9 |
|
|
|
|
|
|
|
|
|
Income tax expense |
5.4 |
|
|
1.7 |
|
|
3.0 |
|
|
3.9 |
|
|
|
|
|
|
|
|
|
Net income |
25.8 |
|
|
4.7 |
|
|
33.1 |
|
|
55.0 |
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interests |
- |
|
|
- |
|
|
- |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
Net income attributable to AAM |
$ |
25.8 |
|
|
$ |
4.7 |
|
|
$ |
33.1 |
|
|
$ |
55.9 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.34 |
|
|
$ |
0.06 |
|
|
$ |
0.43 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
76.9 |
|
|
75.1 |
|
|
76.5 |
|
|
75.1 |
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
|
Three
months ended |
|
Six
months ended |
|
June 30, |
|
June 30, |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
(in
millions) |
|
|
|
|
|
|
|
|
Net income |
$ |
25.8 |
|
|
$ |
4.7 |
|
|
$ |
33.1 |
|
|
$ |
55.0 |
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
Defined benefit plans, net of tax of $(0.8) million and
$(0.1) million for the three and six months ended June 30, 2013,
respectively |
1.7 |
|
|
(0.5 |
) |
|
0.6 |
|
|
(14.5 |
) |
Foreign currency translation adjustments |
(21.7 |
) |
|
(22.5 |
) |
|
(16.8 |
) |
|
(11.8 |
) |
Change in derivatives |
(2.1 |
) |
|
(0.2 |
) |
|
(1.6 |
) |
|
5.4 |
|
Other comprehensive loss |
(22.1 |
) |
|
(23.2 |
) |
|
(17.8 |
) |
|
(20.9 |
) |
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
3.7 |
|
|
(18.5 |
) |
|
15.3 |
|
|
34.1 |
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interests |
- |
|
|
- |
|
|
- |
|
|
0.9 |
|
Foreign currency translation adjustments attributable to
noncontrolling interests |
- |
|
|
- |
|
|
- |
|
|
0.2 |
|
Comprehensive income (loss) attributable to AAM |
$ |
3.7 |
|
|
$ |
(18.5 |
) |
|
$ |
15.3 |
|
|
$ |
34.8 |
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
June 30,
2013 |
|
December 31, 2012 |
|
(in
millions) |
ASSETS |
|
|
|
Assets |
|
|
|
Cash and cash equivalents |
$ |
78.9 |
|
|
$ |
62.4 |
|
Accounts receivable, net |
559.5 |
|
|
463.4 |
|
Inventories, net |
233.2 |
|
|
224.3 |
|
Prepaid expenses and other current assets |
120.6 |
|
|
122.0 |
|
Total current assets |
992.2 |
|
|
872.1 |
|
|
|
|
|
Property, plant and equipment, net |
1,036.8 |
|
|
1,009.7 |
|
Deferred income taxes |
366.2 |
|
|
366.1 |
|
Goodwill |
156.2 |
|
|
156.4 |
|
GM postretirement cost sharing asset |
252.5 |
|
|
259.7 |
|
Other assets and deferred charges |
204.8 |
|
|
202.0 |
|
Total assets |
$ |
3,008.7 |
|
|
$ |
2,866.0 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT |
|
|
|
Liabilities and Stockholders'
Deficit |
|
|
|
Accounts payable |
$ |
450.7 |
|
|
$ |
396.1 |
|
Accrued compensation and benefits |
90.1 |
|
|
84.9 |
|
Deferred revenue |
15.8 |
|
|
17.2 |
|
Accrued expenses and other current liabilities |
90.4 |
|
|
102.6 |
|
Total current
liabilities |
647.0 |
|
|
600.8 |
|
|
|
|
|
Long-term debt |
1,546.5 |
|
|
1,454.1 |
|
Deferred revenue |
79.5 |
|
|
82.2 |
|
Postretirement benefits and other long-term
liabilities |
837.3 |
|
|
849.7 |
|
Total liabilities |
3,110.3 |
|
|
2,986.8 |
|
|
|
|
|
Total stockholders' deficit |
(101.6 |
) |
|
(120.8 |
) |
Total liabilities and stockholders'
deficit |
$ |
3,008.7 |
|
|
$ |
2,866.0 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
Six
months ended |
|
|
June 30, |
|
June 30, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
(in
millions) |
|
(in
millions) |
Operating activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
25.8 |
|
|
$ |
4.7 |
|
|
$ |
33.1 |
|
|
$ |
55.0 |
|
Adjustments to reconcile net income to net cash provided
by operating activities |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
42.4 |
|
|
37.0 |
|
|
83.7 |
|
|
73.7 |
|
Other |
|
(8.2 |
) |
|
54.4 |
|
|
(83.6 |
) |
|
(104.1 |
) |
Net cash provided by operating
activities |
|
60.0 |
|
|
96.1 |
|
|
33.2 |
|
|
24.6 |
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Purchases of property, plant & equipment |
|
(73.6 |
) |
|
(48.4 |
) |
|
(121.5 |
) |
|
(92.9 |
) |
Proceeds from sale of property, plant & equipment |
|
4.8 |
|
|
0.3 |
|
|
4.9 |
|
|
1.2 |
|
Proceeds from sale-leaseback of equipment |
|
12.1 |
|
|
- |
|
|
16.0 |
|
|
- |
|
Net cash used in investing
activities |
|
(56.7 |
) |
|
(48.1 |
) |
|
(100.6 |
) |
|
(91.7 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Net increase (decrease) in long-term debt |
|
(24.0 |
) |
|
(74.1 |
) |
|
90.7 |
|
|
(7.3 |
) |
Debt issuance costs |
|
(0.4 |
) |
|
- |
|
|
(6.6 |
) |
|
- |
|
Purchase of noncontrolling interest |
|
- |
|
|
- |
|
|
- |
|
|
(4.0 |
) |
Employee stock option exercises |
|
0.8 |
|
|
- |
|
|
0.8 |
|
|
0.1 |
|
Purchase of treasury stock |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
|
(5.9 |
) |
Net cash provided by (used in)
financing activities |
|
(23.7 |
) |
|
(74.1 |
) |
|
84.8 |
|
|
(17.1 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
(1.5 |
) |
|
(1.5 |
) |
|
(0.9 |
) |
|
0.2 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents |
|
(21.9 |
) |
|
(27.6 |
) |
|
16.5 |
|
|
(84.0 |
) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
100.8 |
|
|
112.8 |
|
|
62.4 |
|
|
169.2 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period |
|
$ |
78.9 |
|
|
$ |
85.2 |
|
|
$ |
78.9 |
|
|
$ |
85.2 |
|
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 |
|
Six
months ended |
|
June 30, |
|
June 30, |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
Net income attributable to AAM |
$ |
25.8 |
|
|
$ |
4.7 |
|
|
$ |
33.1 |
|
|
$ |
55.9 |
|
Interest expense |
28.8 |
|
|
23.4 |
|
|
57.9 |
|
|
47.4 |
|
Income tax expense |
5.4 |
|
|
1.7 |
|
|
3.0 |
|
|
3.9 |
|
Depreciation and amortization |
42.4 |
|
|
37.0 |
|
|
83.7 |
|
|
73.7 |
|
|
|
|
|
|
|
|
|
EBITDA |
102.4 |
|
|
66.8 |
|
|
177.7 |
|
|
180.9 |
|
|
|
|
|
|
|
|
|
Debt refinancing and redemption costs |
(0.1 |
) |
|
- |
|
|
11.2 |
|
|
- |
|
Other special charges, curtailment gains and restructuring
costs(b) |
- |
|
|
36.5 |
|
|
- |
|
|
31.2 |
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
$ |
102.3 |
|
|
$ |
103.3 |
|
|
$ |
188.9 |
|
|
$ |
212.1 |
|
Net
debt(c) to
capital
|
June 30, 2013 |
|
December 31, 2012 |
|
(in
millions, except percentages) |
|
|
|
|
Total debt |
$ |
1,546.5 |
|
|
$ |
1,454.1 |
|
Less: cash and cash equivalents |
78.9 |
|
|
62.4 |
|
|
|
|
|
Net debt at end of
period |
1,467.6 |
|
|
1,391.7 |
|
|
|
|
|
Stockholders' deficit |
(101.6 |
) |
|
(120.8 |
) |
|
|
|
|
Total invested capital at end of
period |
$ |
1,366.0 |
|
|
$ |
1,270.9 |
|
|
|
|
|
Net debt to
capital(d) |
107.4 |
% |
|
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(e)
|
Three
months ended |
|
Six
months ended |
|
June 30, |
|
June 30, |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
60.0 |
|
|
$ |
96.1 |
|
|
$ |
33.2 |
|
|
$ |
24.6 |
|
|
|
|
|
|
|
|
|
Less: Purchases of property, plant & equipment, net of
proceeds from sale of property, plant & equipment and
sale-leaseback of equipment |
(56.7 |
) |
|
(48.1 |
) |
|
(100.6 |
) |
|
(91.7 |
) |
|
|
|
|
|
|
|
|
Free cash flow |
$ |
3.3 |
|
|
$ |
48.0 |
|
|
$ |
(67.4 |
) |
|
$ |
(67.1 |
) |
________________________________________
-
We define EBITDA to be earnings before interest,
taxes, depreciation and amortization. For 2013, Adjusted EBITDA
is defined as EBITDA excluding impact of debt refinancing and
redemption costs. For 2012, 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. 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.
-
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.
-
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 provided by
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.
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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