DETROIT, Feb. 7, 2014 /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 2013.
Fourth Quarter 2013 Results
- Fourth quarter 2013 sales of $831.3
million, up approximately 13% on a year-over-year basis
- Non-GM sales grew over 37.2% on a year-over-year basis to
$280.1 million
- Gross profit of $126.9 million,
or 15.3% of sales
- Net income of $29.8 million, or
$0.39 per share
- AAM's quarterly results reflect the impact of $25.6 million (or $0.32 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 $113.7 million,
or 13.7% of sales
- Free cash flow (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) of
$50.9 million
Full Year 2013 Results
- Full year 2013 sales of $3.21
billion, up approximately 9.4% on a year-over-year
basis
- Non-GM sales grew 16.9% on a year-over-year basis to
$926.7 million
- Gross profit of $478.7 million,
or 14.9% of sales
- Net income of $94.5 million, or
$1.23 per share
- AAM's full year results reflect the impact of $36.8 million (or $0.46 per share) of debt refinancing and
redemption costs and $5.8 million (or
$0.07 per share) of other special
items
- Adjusted EBITDA of $421.8
million, or 13.2% of sales
- Free cash flow of $4.3
million
AAM's net income in the fourth quarter of 2013 was $29.8 million, or $0.39 per share. In the fourth quarter of 2013,
AAM's results reflect the impact of $25.6
million (or $0.32 per share)
of debt refinancing and redemption costs. This compares to net
income of $319.9 million, or
$4.21 per share, in the fourth
quarter of 2012 which includes the favorable impact of a
$337.5 million benefit (or
$4.44 per share) related to the
reversal of our valuation allowance against our net federal
deferred tax assets for entities in the
United States.
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.
For the full year 2013, AAM's net income was of $94.5 million, or $1.23 per share. This compares to net income of
$367.7 million, or $4.87 per share in 2012.
On a full year basis in 2013, AAM incurred $36.8 million (or $0.46 per share) of debt refinancing and
redemption costs and $5.8 million (or
$0.07 per share) of other special
items.
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.
"In 2013, AAM's financial performance was highlighted by sales
growth that outpaced the industry and profitability that solidly
rebounded versus our 2012 performance. AAM's foundational
commitments to quality and operational excellence paved the way for
these improved results, while our focus on technology leadership
resulted in the expansion and diversification of our customer base
and product portfolio on a global basis," said AAM's Chairman,
President and Chief Executive Officer, David C. Dauch. "As we look to the future,
we remain focused on optimizing our profitable growth opportunities
through our global expansion, improving the diversification of our
business, and achieving solid financial performance by executing
our aligned business strategy. We are committed to achieving
excellence in everything we do with the ultimate goal of making AAM
a leader in every key market that we serve."
Net sales in the fourth quarter of 2013 increased approximately
12.8% to $831.3 million as compared
to $736.7 million in the fourth
quarter of 2012. Non-GM sales grew 37.2% on a year-over-year
basis to $280.1 million in the fourth
quarter of 2013 as compared to $204.1
million in the fourth quarter 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 fourth quarter of 2013, AAM's
content-per-vehicle was $1,579 as
compared to $1,514 in the fourth
quarter of 2012. For the full year 2013, AAM's
content-per-vehicle was $1,550 as
compared to $1,473 in 2012.
Net sales for the full year 2013 increased by 9.4% to
$3.21 billion as compared to
$2.93 billion in 2012. Non-GM
sales grew 16.9% on a year-over-year basis to $926.7 million in 2013 as compared to
$792.6 million in 2012.
AAM's gross profit in the fourth quarter of 2013 was
$126.9 million, or 15.3% of
sales. For the full year 2013, AAM's gross profit was
$478.7 million, or 14.9% of
sales.
In the fourth quarter of 2013, AAM's operating income was
$66.4 million, or 8.0% of
sales. For the full year 2013, AAM's operating income was
$240.3 million, or 7.5% of
sales.
AAM's SG&A spending in the fourth quarter of 2013 was
$60.5 million, or 7.3% of sales, as
compared to $65.4 million, or 8.9% of
sales, in the fourth quarter of 2012. AAM's R&D spending
in the fourth quarter of 2013 was $24.0
million as compared to $33.1
million in the fourth quarter of 2012.
AAM's SG&A spending for the full year 2013 was $238.4 million, or 7.4% of sales, as compared to
$243.3 million, or 8.3% of sales, for
the full year 2012. AAM's R&D spending for the full year
2013 was $103.4 million as compared
to $123.4 million in 2012.
In the fourth quarter of 2013, AAM's net income was $29.8 million, or 3.6% of sales. Diluted
earnings per share (EPS) were $0.39
per share in the fourth quarter of 2013. For the full
year 2013, AAM's net income was $94.5
million, or 2.9% of sales. Diluted earnings per share
(EPS) were $1.23 per share for the
full year 2013.
For 2013, AAM defines Adjusted EBITDA to be earnings before
interest, taxes, depreciation and amortization excluding the impact
of debt refinancing and redemption costs and other special charges
and restructuring costs. In the fourth quarter of 2013, AAM's
Adjusted EBITDA was $113.7 million or
13.7% of sales. For the full year 2013, AAM's Adjusted EBITDA was
$421.8 million, or 13.2% 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 property, plant and equipment and the
sale-leaseback of equipment.
Net cash provided by operating activities for the full year 2013
was $223.0 million. Capital
spending, net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment, for the full year
2013 was $218.7 million.
Reflecting the impact of this activity, AAM generated positive free
cash flow of $4.3 million for the
full year 2013.
AAM's free cash flow for the full year 2013 reflects the impact
of cash payments for debt refinancing and redemption activities of
approximately $36.8 million.
A conference call to review AAM's fourth quarter and full year
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) 681-2072 from the United States or (973) 200-3383 from
outside the United States. A replay will be available from
2:00 p.m. ET on February 7, 2014 until 5:00 p.m. ET February 14,
2014 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 34605135.
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: 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 develop and produce
new products that reflect market demand; lower-than-anticipated
market acceptance of new or existing products; our ability to
attract new customers and programs for new products; our ability to
respond to changes in technology, increased competition or pricing
pressures; our ability to achieve the level of cost reductions
required to sustain global cost competitiveness; 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; global economic conditions, including the impact of
the continued market weakness in the Euro-zone; 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); liabilities arising from warranty claims, product
recall or field actions, product liability and legal proceedings to
which we are or may become a party; price volatility in, or reduced
availability of, fuel; our ability to successfully implement
upgrades to our enterprise resource planning systems; 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; our
ability to attract and retain key associates; 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; changes in liabilities arising from pension and other
postretirement benefit obligations; risks of noncompliance with
environmental laws and regulations or risks of environmental issues
that could result in unforeseen costs at our facilities; 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; 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; 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 & Marketing
chris.son@aam.com
Danielle Landolt
Manager, Marketing & Communications
(313) 758-4589
danielle.landolt@aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December
31,
|
|
December 31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
831.3
|
|
|
$
|
736.7
|
|
|
$
|
3,207.3
|
|
|
$
|
2,930.9
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
704.4
|
|
|
652.7
|
|
|
2,728.6
|
|
|
2,531.2
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
126.9
|
|
|
84.0
|
|
|
478.7
|
|
|
399.7
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
60.5
|
|
|
65.4
|
|
|
238.4
|
|
|
243.3
|
|
|
|
|
|
|
|
|
|
Operating
income
|
66.4
|
|
|
18.6
|
|
|
240.3
|
|
|
156.4
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(28.0)
|
|
|
(28.9)
|
|
|
(115.9)
|
|
|
(101.6)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.2
|
|
|
—
|
|
|
0.6
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(25.6)
|
|
|
(9.7)
|
|
|
(36.8)
|
|
|
(19.8)
|
|
Other, net
|
(0.5)
|
|
|
(0.1)
|
|
|
(1.9)
|
|
|
(4.1)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
12.5
|
|
|
(20.1)
|
|
|
86.3
|
|
|
31.5
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(17.3)
|
|
|
(340.0)
|
|
|
(8.2)
|
|
|
(335.2)
|
|
|
|
|
|
|
|
|
|
Net income
|
29.8
|
|
|
319.9
|
|
|
94.5
|
|
|
366.7
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
29.8
|
|
|
$
|
319.9
|
|
|
$
|
94.5
|
|
|
$
|
367.7
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.39
|
|
|
$
|
4.21
|
|
|
$
|
1.23
|
|
|
$
|
4.87
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
77.0
|
|
|
76.0
|
|
|
76.8
|
|
|
75.4
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
|
$
|
29.8
|
|
|
$
|
319.9
|
|
|
$
|
94.5
|
|
|
$
|
366.7
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
|
|
|
|
Defined benefit
plans, net of tax
|
60.9
|
|
|
58.3
|
|
|
76.6
|
|
|
(58.9)
|
|
Foreign currency
translation adjustments
|
(11.9)
|
|
|
(2.3)
|
|
|
(26.2)
|
|
|
(9.4)
|
|
Change in
derivatives
|
0.2
|
|
|
0.2
|
|
|
(2.0)
|
|
|
7.8
|
|
Other comprehensive
income (loss )
|
49.2
|
|
|
56.2
|
|
|
48.4
|
|
|
(60.5)
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
79.0
|
|
|
376.1
|
|
|
142.9
|
|
|
306.2
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
Foreign currency
translation adjustments related to noncontrolling
interests
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
Comprehensive income
attributable to AAM
|
$
|
79.0
|
|
|
$
|
376.0
|
|
|
$
|
142.9
|
|
|
$
|
306.9
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
December 31,
2013
|
|
December 31,
2012
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
154.0
|
|
|
$
|
62.4
|
|
Accounts receivable,
net
|
458.5
|
|
|
463.4
|
|
Inventories,
net
|
261.8
|
|
|
224.3
|
|
Deferred income
taxes
|
36.4
|
|
|
34.9
|
|
Prepaid expenses and
other current assets
|
87.1
|
|
|
87.1
|
|
Total current
assets
|
997.8
|
|
|
872.1
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,058.5
|
|
|
1,009.7
|
|
Deferred income
taxes
|
341.8
|
|
|
366.1
|
|
Goodwill
|
156.4
|
|
|
156.4
|
|
GM postretirement
cost sharing asset
|
242.0
|
|
|
259.7
|
|
Other assets and
deferred charges
|
232.5
|
|
|
202.0
|
|
Total
assets
|
$
|
3,029.0
|
|
|
$
|
2,866.0
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$
|
445.8
|
|
|
$
|
396.1
|
|
Accrued compensation
and benefits
|
110.1
|
|
|
84.9
|
|
Deferred
revenue
|
17.0
|
|
|
17.2
|
|
Deferred income
taxes
|
0.1
|
|
|
1.4
|
|
Accrued expenses and
other current liabilities
|
94.1
|
|
|
101.2
|
|
Total current
liabilities
|
667.1
|
|
|
600.8
|
|
|
|
|
|
Long-term
debt
|
1,559.1
|
|
|
1,454.1
|
|
Deferred income
taxes
|
9.8
|
|
|
9.5
|
|
Deferred
revenue
|
76.4
|
|
|
82.2
|
|
Postretirement
benefits and other long-term liabilities
|
683.0
|
|
|
840.2
|
|
Total
liabilities
|
2,995.4
|
|
|
2,986.8
|
|
|
|
|
|
Total stockholders'
equity (deficit)
|
33.6
|
|
|
(120.8)
|
|
Total liabilities
and stockholders' equity (deficit)
|
$
|
3,029.0
|
|
|
$
|
2,866.0
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
(in
millions)
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
29.8
|
|
|
$
|
319.9
|
|
|
$
|
94.5
|
|
|
$
|
366.7
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities
|
|
|
|
|
|
|
|
|
Asset
impairments and related indirect activity
|
|
—
|
|
|
5.8
|
|
|
—
|
|
|
5.8
|
|
Depreciation and amortization
|
|
47.6
|
|
|
39.8
|
|
|
177.0
|
|
|
152.2
|
|
Other
|
|
43.3
|
|
|
(344.4)
|
|
|
(48.5)
|
|
|
(700.2)
|
|
Net cash provided
by (used in) operating activities
|
|
120.7
|
|
|
21.1
|
|
|
223.0
|
|
|
(175.5)
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(73.7)
|
|
|
(63.9)
|
|
|
(251.9)
|
|
|
(207.6)
|
|
Proceeds from sale of
property, plant & equipment
|
|
3.3
|
|
|
7.9
|
|
|
9.1
|
|
|
10.1
|
|
Proceeds from
sale-leaseback of equipment
|
|
0.6
|
|
|
12.1
|
|
|
24.1
|
|
|
12.1
|
|
Net cash used in
investing activities
|
|
(69.8)
|
|
|
(43.9)
|
|
|
(218.7)
|
|
|
(185.4)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in long-term debt
|
|
(11.0)
|
|
|
(123.1)
|
|
|
104.8
|
|
|
273.9
|
|
Debt issuance
costs
|
|
(3.8)
|
|
|
(0.5)
|
|
|
(16.7)
|
|
|
(10.6)
|
|
Purchase of treasury
stock
|
|
—
|
|
|
—
|
|
|
(0.4)
|
|
|
(5.9)
|
|
Purchase of
noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.0)
|
|
Employee stock option
exercises
|
|
0.3
|
|
|
—
|
|
|
1.1
|
|
|
0.1
|
|
Net cash provided
by (used in) financing activities
|
|
(14.5)
|
|
|
(123.6)
|
|
|
88.8
|
|
|
253.5
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(1.0)
|
|
|
(0.2)
|
|
|
(1.5)
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
35.4
|
|
|
(146.6)
|
|
|
91.6
|
|
|
(106.8)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
118.6
|
|
|
209.0
|
|
|
62.4
|
|
|
169.2
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
154.0
|
|
|
$
|
62.4
|
|
|
$
|
154.0
|
|
|
$
|
62.4
|
|
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,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
29.8
|
|
|
$
|
319.9
|
|
|
$
|
94.5
|
|
|
$
|
367.7
|
|
Interest
expense
|
28.0
|
|
|
28.9
|
|
|
115.9
|
|
|
101.6
|
|
Income tax
benefit
|
(17.3)
|
|
|
(340.0)
|
|
|
(8.2)
|
|
|
(335.2)
|
|
Depreciation and
amortization
|
47.6
|
|
|
39.8
|
|
|
177.0
|
|
|
152.2
|
|
|
|
|
|
|
|
|
|
EBITDA
|
88.1
|
|
|
48.6
|
|
|
379.2
|
|
|
286.3
|
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
25.6
|
|
|
9.7
|
|
|
36.8
|
|
|
19.8
|
|
Other special
charges, curtailment gains and restructuring
costs(b)
|
—
|
|
|
6.2
|
|
|
5.8
|
|
|
40.6
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA
|
$
|
113.7
|
|
|
$
|
64.5
|
|
|
$
|
421.8
|
|
|
$
|
346.7
|
|
Net
debt(c) to capital
|
|
|
December 31,
2013
|
|
December 31,
2012
|
|
(in millions,
except percentages)
|
|
|
|
|
Total debt
|
$
|
1,559.1
|
|
|
$
|
1,454.1
|
|
Less: cash and cash
equivalents
|
154.0
|
|
|
62.4
|
|
|
|
|
|
Net debt at end of
period
|
1,405.1
|
|
|
1,391.7
|
|
|
|
|
|
Stockholders' equity
(deficit)
|
33.6
|
|
|
(120.8)
|
|
|
|
|
|
Total invested
capital at end of period
|
$
|
1,438.7
|
|
|
$
|
1,270.9
|
|
|
|
|
|
Net debt to
capital(d)
|
97.7
|
%
|
|
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
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
|
120.7
|
|
|
$
|
21.1
|
|
|
$
|
223.0
|
|
|
$
|
(175.5)
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property, plant & equipment, net of proceeds from sale of
property, plant & equipment and sale-leaseback of
equipment
|
(69.8)
|
|
|
(43.9)
|
|
|
(218.7)
|
|
|
(185.4)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$
|
50.9
|
|
|
$
|
(22.8)
|
|
|
$
|
4.3
|
|
|
$
|
(360.9)
|
|
|
|
|
|
(a)
|
We define EBITDA to
be earnings before interest, taxes, depreciation and amortization.
For 2013, Adjusted EBITDA is defined as EBITDA excluding the impact
of debt refinancing and redemption costs and other special charges
and restructuring 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.
|
|
|
(b)
|
Special charges of
$5.8 million for the twelve months ended December 31, 2013
primarily relate to a net charge of $5.3 million related to
the acceleration of expense for stock-based compensation and other
benefits earned and vested due to the passing of our Co-Founder and
Executive Chairman of the Board of Directors and $0.5 million for
the settlement of a National Labor Relations Board proceeding
related to the closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility. 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 related to the closure of our Detroit Manufacturing
Complex and Cheektowaga Manufacturing Facility. This special
charge activity included $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.
|
|
|
(c)
|
Net debt is equal to
total debt less cash and cash equivalents.
|
|
|
(d)
|
Net debt to capital
is equal to net debt divided by the sum of stockholders' equity
(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.
|
|
|
(e)
|
We define free cash
flow as net cash provided by (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.
|
SOURCE American Axle & Manufacturing Holdings, Inc.