Total Sales
are up 18% in the quarter on a year-over-year basis; non-GM sales
up 33%
Detroit, Michigan, August 1, 2014 -- American Axle
& Manufacturing Holdings, Inc. (AAM), which is traded as AXL on
the NYSE, today reported its financial results for the second
quarter of 2014.
Second Quarter 2014
Results
Second quarter 2014 sales of $946.9 million, up
approximately 18.4% on a year-over-year basis
- Non-GM sales grew 33.2% on a year-over-year basis
to $298.1 million
- Gross profit of $149.0 million, or 15.7% of
sales
- Net income of $52.2 million, or $0.67 per
share
- EBITDA (earnings before interest, income taxes,
depreciation and amortization) of $136.7 million, or 14.4% 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) of $82.5 million
AAM's net income in the second quarter of 2014 was
$52.2 million, or $0.67 per share as compared to net income of
$25.8 million, or $0.34 per share, in the second quarter of
2013.
"AAM's financial results in the second quarter of
2014 reflect strong sales growth and profitability driven by the
favorable impact of increased production volumes across many of our
major product programs supporting the North American light vehicle
segment," said AAM's Chairman, President and Chief Executive
Officer, David C. Dauch. "AAM is energized to continue
supporting these and other new global product and process launches
during the remainder of this year and continuing through the year
2015. Many of these launches feature exciting new advanced
driveline technologies that are enhancing the diversification of
our business and positioning AAM for solid profitability and
consistent free cash flow generation."
AAM's sales in the second quarter of 2014
increased approximately 18.4% to $946.9 million as compared to
$799.6 million in the second quarter of 2013. Led by higher
sales in support of Chrysler's all-new Jeep Cherokee and heavy-duty
Ram full-size pickup trucks and its derivatives, non-GM sales grew
33.2% on a year-over-year basis to $298.1 million in the second
quarter of 2014 as compared to $223.8 million in the second quarter
of 2013.
AAM's net sales in the first half of 2014
increased approximately 16.1% to $1.81 billion as compared to $1.56
billion in the first half of 2013. Non-GM sales in the first
half of 2014 increased approximately 42.2% on a year-over-year
basis to $585.9 million as compared to $411.9 million in the first
half of 2013.
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
2014, AAM's content-per-vehicle increased 5.5% to $1,640 as
compared to $1,554 in the second quarter of 2013.
AAM's gross profit in the second quarter of 2014
was $149.0 million, or 15.7% of sales, as compared to $122.2
million, or 15.3% of sales, in the second quarter of 2013.
AAM's gross profit for the first half of 2014 was
$270.9 million as compared to $226.5 million in the first half of
2013. Gross margin was 15.0% in the first half of 2014 as
compared to 14.6% in the first half of 2013.
In the second quarter of 2014, AAM's operating income increased
nearly $26 million to $87.5 million, or 9.2% of sales, as compared
to $61.7 million, or 7.7% of sales, in the second quarter of
2013.
AAM's operating income in the first half of 2014
was $152.3 million as compared to $106.4 million in the first half
of 2013. Operating margin was 8.4% in the first half of 2014
as compared to 6.8% in the first half of 2013.
AAM's SG&A spending in the second quarter of
2014 was $61.5 million, or 6.5% of sales, as compared to $60.5
million, or 7.6% of sales, in the second quarter of 2013.
AAM's R&D spending in the second quarter of 2014 was $24.4
million as compared to $27.3 million in the second quarter of
2013.
In the first half of 2014, AAM's SG&A spending
was $118.6 million as compared to $120.1 million in the first half
of 2013. AAM's R&D spending in the first half of 2014 was
$50.2 million as compared to $55.8 million in the first half of
2013.
In the second quarter of 2014, AAM's net income
was $52.2 million, or $0.67 per share as compared to $25.8 million,
or $0.34 per share in the second quarter of 2013. AAM's net income
in the first half of 2014 was $85.8 million, or $1.11 per share as
compared to $33.1 million, or $0.43 per share in the first half of
2013.
AAM defines EBITDA to be earnings before interest,
income taxes, depreciation and amortization. In the second
quarter of 2014, AAM's EBITDA increased over $34.3 million to
$136.7 million, or 14.4% of sales, as compared to $102.4 million,
or 12.8% of sales, in the second quarter of 2013.
AAM defines free cash flow to be 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.
Net cash provided by operating activities for the
second quarter of 2014 was $137.9 million. Capital spending,
net of proceeds from the sale of property, plant and equipment, for
the second quarter of 2014 was $55.4 million. Reflecting the
impact of this activity, AAM generated free cash flow of $82.5
million for the second quarter of 2014.
A conference call to review AAM's second quarter
2014 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 (855)
681-2072 from the United States or (973) 200-3383 from outside the
United States. A replay will be available from Noon ET on
August 1, 2014 until 5:00 p.m. ET August 8, 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 34605137.
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," "target," 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, or the
impact of product recall or field actions on our customers; 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
(313)
758-4814
chris.son@aam.com
Vitalie V. Stelea
Manager, Investor
Relations
(313)
758-4635
vitalie.stelea@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, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions, except per share data) |
|
(in
millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
946.9 |
|
|
$ |
799.6 |
|
|
$ |
1,805.7 |
|
|
$ |
1,555.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of goods sold |
797.9 |
|
|
677.4 |
|
|
1,534.8 |
|
|
1,328.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
149.0 |
|
|
122.2 |
|
|
270.9 |
|
|
226.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
61.5 |
|
|
60.5 |
|
|
118.6 |
|
|
120.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
87.5 |
|
|
61.7 |
|
|
152.3 |
|
|
106.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(25.1) |
|
|
(28.8) |
|
|
(50.1) |
|
|
(57.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
0.3 |
|
|
0.2 |
|
|
0.6 |
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Debt
refinancing and redemption costs |
- |
|
|
0.1 |
|
|
- |
|
|
(11.2) |
|
Other,
net |
0.8 |
|
|
(2.0) |
|
|
1.3 |
|
|
(1.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
63.5 |
|
|
31.2 |
|
|
104.1 |
|
|
36.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense |
11.3 |
|
|
5.4 |
|
|
18.3 |
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
52.2 |
|
|
$ |
25.8 |
|
|
$ |
85.8 |
|
|
$ |
33.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.67 |
|
|
$ |
0.34 |
|
|
$ |
1.11 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
77.5
|
|
76.9 |
|
77.3
|
|
76.5 |
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
|
Three
months ended |
|
Six
months ended |
|
June 30, |
|
June 30, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
52.2 |
|
|
$ |
25.8 |
|
|
$ |
85.8 |
|
|
$ |
33.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
Defined benefit plans, net of tax(a) |
0.6 |
|
|
1.7 |
|
|
5.7 |
|
|
0.6 |
|
Foreign currency translation
adjustments |
3.6 |
|
|
(21.7) |
|
|
11.4 |
|
|
(16.8) |
|
Change in derivatives |
0.5 |
|
|
(2.1) |
|
|
1.4 |
|
|
(1.6) |
|
Other
comprehensive income (loss) |
4.7 |
|
|
(22.1) |
|
|
18.5 |
|
|
(17.8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
$ |
56.9 |
|
|
$ |
3.7 |
|
|
$ |
104.3 |
|
|
$ |
15.3 |
|
________________________________________
(a) Amounts are net of tax $(0.2) million and $(2.9) million for
the three and six months ended June 30, 2014,
respectively, and $(0.8) million and $(0.1) million for the
three and six months ended June 30, 2013, respectively.
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
June
30, 2014 |
|
December 31, 2013 |
|
(in
millions) |
ASSETS |
|
|
|
|
|
Assets |
|
|
|
|
|
Cash
and cash equivalents |
$ |
128.9 |
|
|
$ |
154.0 |
|
Accounts receivable, net |
648.2 |
|
|
458.5 |
|
Inventories, net |
255.7 |
|
|
261.8 |
|
Prepaid expenses and other current assets |
114.0 |
|
|
123.5 |
|
Total current assets |
1,146.8 |
|
|
997.8 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
1,077.0 |
|
|
1,058.5 |
|
Deferred income taxes |
333.0 |
|
|
341.8 |
|
Goodwill |
156.2 |
|
|
156.4 |
|
GM
postretirement cost sharing asset |
234.9 |
|
|
242.0 |
|
Other
assets and deferred charges |
253.5 |
|
|
232.5 |
|
Total assets |
$ |
3,201.4 |
|
|
$ |
3,029.0 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
Accounts payable |
$ |
509.7 |
|
|
$ |
445.8 |
|
Accrued compensation and benefits |
92.3 |
|
|
110.1 |
|
Deferred revenue |
22.5 |
|
|
17.0 |
|
Accrued expenses and other current liabilities |
97.0 |
|
|
94.2 |
|
Total current liabilities |
721.5 |
|
|
667.1 |
|
|
|
|
|
|
|
Long-term debt |
1,545.7 |
|
|
1,559.1 |
|
Deferred revenue |
106.4 |
|
|
76.4 |
|
Postretirement benefits and other long-term liabilities |
684.4 |
|
|
692.8 |
|
Total liabilities |
3,058.0 |
|
|
2,995.4 |
|
|
|
|
|
|
|
Total
stockholders' equity |
143.4 |
|
|
33.6 |
|
Total liabilities and stockholders'
equity |
$ |
3,201.4 |
|
|
$ |
3,029.0 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended |
|
Six
months
ended |
|
|
June 30, |
|
June 30, |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
(in
millions) |
|
(in
millions) |
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
52.2 |
|
|
$ |
25.8 |
|
|
$ |
85.8 |
|
|
$ |
33.1 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
48.1 |
|
|
42.4 |
|
|
95.0 |
|
|
83.7 |
|
Other |
|
37.6 |
|
|
(8.2) |
|
|
(98.4) |
|
|
(83.6) |
|
Net cash provided by operating
activities |
|
137.9 |
|
|
60.0 |
|
|
82.4 |
|
|
33.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant & equipment |
|
(55.8) |
|
|
(73.6) |
|
|
(103.7) |
|
|
(121.5) |
|
Proceeds from sale of property, plant & equipment |
|
0.4 |
|
|
4.8 |
|
|
8.3 |
|
|
4.9 |
|
Proceeds from sale-leaseback of equipment |
|
- |
|
|
12.1 |
|
|
- |
|
|
16.0 |
|
Net cash used in investing
activities |
|
(55.4) |
|
|
(56.7) |
|
|
(95.4) |
|
|
(100.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in long-term debt |
|
(34.0) |
|
|
(24.0) |
|
|
(13.4) |
|
|
90.7 |
|
Debt
issuance costs |
|
(0.1) |
|
|
(0.4) |
|
|
(0.3) |
|
|
(6.6) |
|
Employee stock option exercises |
|
0.6 |
|
|
0.8 |
|
|
1.2 |
|
|
0.8 |
|
Purchase of treasury stock |
|
- |
|
|
(0.1) |
|
|
(0.3) |
|
|
(0.1) |
|
Net cash provided by (used in) financing
activities |
|
(33.5) |
|
|
(23.7) |
|
|
(12.8) |
|
|
84.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash |
|
0.3 |
|
|
(1.5) |
|
|
0.7 |
|
|
(0.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
49.3 |
|
|
(21.9) |
|
|
(25.1) |
|
|
16.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period |
|
79.6 |
|
|
100.8 |
|
|
154.0 |
|
|
62.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period |
|
$ |
128.9 |
|
|
$ |
78.9 |
|
|
$ |
128.9 |
|
|
$ |
78.9 |
|
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, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
52.2 |
|
|
$ |
25.8 |
|
|
$ |
85.8 |
|
|
$ |
33.1 |
|
Interest expense |
25.1 |
|
|
28.8 |
|
|
50.1 |
|
|
57.9 |
|
Income
tax expense |
11.3 |
|
|
5.4 |
|
|
18.3 |
|
|
3.0 |
|
Depreciation and amortization |
48.1 |
|
|
42.4 |
|
|
95.0 |
|
|
83.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
136.7 |
|
|
102.4 |
|
|
249.2 |
|
|
177.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
refinancing and redemption costs |
- |
|
|
(0.1) |
|
|
- |
|
|
11.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
$ |
136.7 |
|
|
$ |
102.3 |
|
|
$ |
249.2 |
|
|
$ |
188.9 |
|
Net
debt(b) to
capital
|
June 30, 2014 |
|
December 31, 2013 |
|
(in
millions, except percentages) |
|
|
|
|
|
|
Total
debt |
$ |
1,545.7 |
|
|
$ |
1,559.1 |
|
Less:
cash and cash equivalents |
128.9 |
|
|
154.0 |
|
|
|
|
|
|
|
Net debt at end of period |
1,416.8 |
|
|
1,405.1 |
|
|
|
|
|
|
|
Stockholders' equity |
143.4 |
|
|
33.6 |
|
|
|
|
|
|
|
Total invested capital at end of
period |
$ |
1,560.2 |
|
|
$ |
1,438.7 |
|
|
|
|
|
|
|
Net debt to capital(c) |
90.8% |
|
|
97.7% |
|
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 |
|
Six
months ended |
|
June 30, |
|
June 30, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
$ |
137.9 |
|
|
$ |
60.0 |
|
|
$ |
82.4 |
|
|
$ |
33.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Purchases of property, plant & equipment, net of
proceeds from sale of property, plant & equipment and
sale-leaseback of equipment |
(55.4) |
|
|
(56.7) |
|
|
(95.4) |
|
|
(100.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
$ |
82.5 |
|
|
$ |
3.3 |
|
|
$ |
(13.0) |
|
|
$ |
(67.4) |
|
________________________________________
(a) We define EBITDA to be earnings before interest, income taxes,
depreciation and amortization. We believe that EBITDA is a
meaningful measure of performance as it is 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 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 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' equity 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 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.
![](http://thomsonreuterscorporategroup.122.2o7.net/b/ss/trcgclientrs79/1/H.22.1--NS/0?pageName=AAM%20Reports%20Second%20Quarter%202014%20Financial%20Results&c1=1844173&c2=D=Referer)
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: American Axle & Manufacturing Holdings, Inc via
Globenewswire
HUG#1844173
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