DETROIT, Oct. 31, 2014 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), which is traded as AXL on
the NYSE, today reported its financial results for the third
quarter 2014.
Third Quarter 2014 Results
- Third quarter 2014 sales of $950.8
million, up 15.8% on a year-over-year basis
- Non-GM sales grew 26.5% on a year-over-year basis to
$296.8 million
- Gross profit of $149.1 million,
or 15.7% of sales
- Operating income of $85.1
million, or 9.0% of sales
- Net income of $48.6 million, or
$0.63 per share
- EBITDA (earnings before interest, taxes, depreciation and
amortization) of $136.1 million or
approximately 14.3% of sales
AAM's net income in the third quarter of 2014 was $48.6 million, or $0.63 per share. This compares to a net
income of $31.6 million, or
$0.41 per share in the third quarter
of 2013.
"In the third quarter of 2014, AAM's financial results were
highlighted by strong cash flow and solid profitability driven by
continued sales growth and improvements in operational stability
and productivity. Based on our progress through the first
three quarters of the year, AAM is on track to deliver more than
$100 million of positive free cash
flow for the full year 2014," said David C.
Dauch, AAM's Chairman, President & Chief Executive
Officer. "AAM's improved free cash flow execution is helping
to reduce our balance sheet leverage and is strengthening our
ability to invest in the continued development of innovative new
product, process and systems technologies designed to provide our
customers with measurable gains in fuel efficiency and power
density, as well as improved safety, ride and handling
performance."
Net sales in the third quarter of 2014 increased approximately
15.8% on a year-over-year basis to $950.8
million as compared to $820.8
million in the third quarter of 2013. Non-GM sales
were up 26.5% in the quarter to $296.8
million as compared to $234.7
million in the third quarter of 2013.
AAM's net sales in the first nine months of 2014 increased by
16% to $2.76 billion as compared to
$2.38 billion in the first nine
months of 2013. Non-GM sales in the first nine months of 2014
increased approximately 36.5% on a year-over-year basis to
$882.7 million as compared to
$646.6 million in the first nine
months 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 third quarter of 2014, AAM's
content-per-vehicle increased to $1,676 as compared to $1,560 in the third quarter of 2013 and
$1,640 in the second quarter of
2014.
AAM's gross profit in the third quarter of 2014 increased 19.0%
on a year-over-year basis to $149.1
million as compared to $125.3
million in the third quarter of 2013. Gross margin was
15.7% in the third quarter of 2014 as compared to 15.3% in the
third quarter of 2013.
AAM's gross profit for the first nine months of 2014 increased
19.4% on a year-over-year basis to $420.0
million as compared to $351.8
million in the first nine months of 2013. Gross margin
was 15.2% in the first nine months of 2014 as compared to 14.8% in
the first nine months of 2013.
AAM's SG&A expense in the third quarter of 2014 was
$64.0 million, or 6.7% of sales, as
compared to $57.8 million, or 7.0% of
sales, in the third quarter of 2013. AAM's R&D expense in
the third quarter of 2014 was $26.4
million as compared to $23.6
million in the third quarter of 2013.
In the first nine months of 2014, AAM's SG&A expense was
$182.6 million, or 6.6% of sales, as
compared to $177.9 million, or 7.5%
of sales, for the first nine months of 2013. AAM's R&D
expense decreased $2.8 million in the
first nine months of 2014 on a year-over-year basis to $76.6 million compared to $79.4 million in the first nine months of
2013.
In the third quarter of 2014, AAM's operating income increased
26.1% to $85.1 million as compared to
$67.5 million in the third quarter of
2013. Operating margin was 9.0% in the third quarter of 2014
as compared to 8.2% in the third quarter of 2013.
AAM's operating income in the first nine months of 2014
increased by 63.5 million to $237.4
million as compared to $173.9
million in the first nine months of 2013. Operating
margin was 8.6% in the first nine months of 2014 as compared to
7.3% in the first nine months of 2013.
In the third quarter of 2014, AAM's net income was $48.6 million or $0.63 per share. This compares to net
income of $31.6 million or
$0.41 per share in the third quarter
of 2013.
AAM defines EBITDA to be earnings before interest, taxes,
depreciation and amortization. In the third quarter of 2014,
AAM's EBITDA was $136.1 million or
14.3% of sales. In the first nine months of 2014, AAM's
EBITDA was $385.3 million or 14.0% of
sales.
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 third quarter
of 2014 was $149.2 million. Capital
spending, net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment, for the third
quarter of 2014 was $52.3
million. Reflecting the impact of this activity, AAM
generated free cash flow of $96.9
million for the third quarter of 2014.
Net cash provided by operating activities for the first nine
months of 2014 was $231.6 million.
Capital spending, net of proceeds from the sale of property, plant
and equipment and the sale-leaseback of equipment, for the first
nine months of 2014 was $147.7
million. Reflecting the impact of this activity, AAM
generated free cash flow of $83.9
million in the first nine months of 2014.
A conference call to review AAM's third quarter 2014 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 1:00 p.m. ET on
October 31, 2014 until 5:00 p.m. ET November 7,
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 34605138.
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 and Marketing
(313) 758-4814
chris.son@aam.com
Vitalie 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 OPERATIONS
(Unaudited)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
950.8
|
|
|
$
|
820.8
|
|
|
$
|
2,756.5
|
|
|
$
|
2,376.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
801.7
|
|
|
695.5
|
|
|
2,336.5
|
|
|
2,024.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
149.1
|
|
|
125.3
|
|
|
420.0
|
|
|
351.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
64.0
|
|
|
57.8
|
|
|
182.6
|
|
|
177.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
85.1
|
|
|
67.5
|
|
|
237.4
|
|
|
173.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(25.1)
|
|
|
(30.0)
|
|
|
(75.2)
|
|
|
(87.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.7
|
|
|
0.1
|
|
|
1.3
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.2)
|
|
Other, net
|
(0.8)
|
|
|
0.1
|
|
|
0.5
|
|
|
(1.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
59.9
|
|
|
37.7
|
|
|
164.0
|
|
|
73.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
11.3
|
|
|
6.1
|
|
|
29.6
|
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
48.6
|
|
|
$
|
31.6
|
|
|
$
|
134.4
|
|
|
$
|
64.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.63
|
|
|
$
|
0.41
|
|
|
$
|
1.74
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
77.6
|
|
|
77.0
|
|
|
77.4
|
|
|
76.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
48.6
|
|
|
$
|
31.6
|
|
|
$
|
134.4
|
|
|
$
|
64.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans, net of tax (a)
|
0.6
|
|
|
15.1
|
|
|
6.3
|
|
|
15.7
|
|
Foreign currency
translation adjustments
|
(23.3)
|
|
|
2.5
|
|
|
(11.9)
|
|
|
(14.3)
|
|
Change in
derivatives
|
(2.5)
|
|
|
(0.6)
|
|
|
(1.1)
|
|
|
(2.2)
|
|
Other comprehensive
income (loss )
|
(25.2)
|
|
|
17.0
|
|
|
(6.7)
|
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
23.4
|
|
|
$
|
48.6
|
|
|
$
|
127.7
|
|
|
$
|
63.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________________________
|
|
|
(a)
|
Amounts are net of
tax of $(0.2) million and $(3.1) million for the three and nine
months ended September 30, 2014, respectively, and $(7.9) million
and $(8.0) million for the three and nine months ended September
30, 2013, respectively.
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
219.0
|
|
|
$
|
154.0
|
|
Accounts receivable,
net
|
600.2
|
|
|
458.5
|
|
Inventories,
net
|
249.2
|
|
|
261.8
|
|
Prepaid expenses and
other current assets
|
108.5
|
|
|
123.5
|
|
Total current
assets
|
1,176.9
|
|
|
997.8
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,066.7
|
|
|
1,058.5
|
|
Deferred income
taxes
|
327.7
|
|
|
341.8
|
|
Goodwill
|
155.6
|
|
|
156.4
|
|
GM postretirement
cost sharing asset
|
233.9
|
|
|
242.0
|
|
Other assets and
deferred charges
|
264.8
|
|
|
232.5
|
|
Total
assets
|
$
|
3,225.6
|
|
|
$
|
3,029.0
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
17.1
|
|
|
$
|
—
|
|
Accounts
payable
|
496.3
|
|
|
445.8
|
|
Accrued compensation
and benefits
|
102.7
|
|
|
110.1
|
|
Deferred
revenue
|
22.2
|
|
|
17.0
|
|
Accrued expenses and
other current liabilities
|
100.2
|
|
|
94.2
|
|
Total current
liabilities
|
738.5
|
|
|
667.1
|
|
|
|
|
|
|
|
Long-term
debt
|
1,525.5
|
|
|
1,559.1
|
|
Deferred
revenue
|
101.4
|
|
|
76.4
|
|
Postretirement
benefits and other long-term liabilities
|
690.9
|
|
|
692.8
|
|
Total
liabilities
|
3,056.3
|
|
|
2,995.4
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
169.3
|
|
|
33.6
|
|
Total liabilities
and stockholders' equity
|
$
|
3,225.6
|
|
|
$
|
3,029.0
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
(in
millions)
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
48.6
|
|
|
$
|
31.6
|
|
|
$
|
134.4
|
|
|
$
|
64.7
|
|
Adjustments to
reconcile net income to net cash provided
by operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
51.1
|
|
|
45.7
|
|
|
146.1
|
|
|
129.4
|
|
Other
|
|
49.5
|
|
|
(8.2)
|
|
|
(48.9)
|
|
|
(91.8)
|
|
Net cash provided
by operating activities
|
|
149.2
|
|
|
69.1
|
|
|
231.6
|
|
|
102.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(52.5)
|
|
|
(56.7)
|
|
|
(156.2)
|
|
|
(178.2)
|
|
Proceeds from sale of
property, plant & equipment
|
|
0.2
|
|
|
0.9
|
|
|
8.5
|
|
|
5.8
|
|
Proceeds from
sale-leaseback of equipment
|
|
—
|
|
|
7.5
|
|
|
—
|
|
|
23.5
|
|
Net cash used in
investing activities
|
|
(52.3)
|
|
|
(48.3)
|
|
|
(147.7)
|
|
|
(148.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in long-term debt
|
|
(3.3)
|
|
|
25.1
|
|
|
(16.7)
|
|
|
115.8
|
|
Debt issuance
costs
|
|
—
|
|
|
(6.3)
|
|
|
(0.3)
|
|
|
(12.9)
|
|
Employee stock option
exercises
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
0.8
|
|
Purchase of treasury
stock
|
|
—
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
(0.4)
|
|
Net cash provided
by (used in) financing activities
|
|
(3.3)
|
|
|
18.5
|
|
|
(16.1)
|
|
|
103.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(3.5)
|
|
|
0.4
|
|
|
(2.8)
|
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
90.1
|
|
|
39.7
|
|
|
65.0
|
|
|
56.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
128.9
|
|
|
78.9
|
|
|
154.0
|
|
|
62.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
219.0
|
|
|
$
|
118.6
|
|
|
$
|
219.0
|
|
|
$
|
118.6
|
|
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
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
48.6
|
|
|
$
|
31.6
|
|
|
$
|
134.4
|
|
|
$
|
64.7
|
|
Interest
expense
|
25.1
|
|
|
30.0
|
|
|
75.2
|
|
|
87.9
|
|
Income tax
expense
|
11.3
|
|
|
6.1
|
|
|
29.6
|
|
|
9.1
|
|
Depreciation and
amortization
|
51.1
|
|
|
45.7
|
|
|
146.1
|
|
|
129.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
136.1
|
|
|
113.4
|
|
|
385.3
|
|
|
291.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
Other special
charges(b)
|
—
|
|
|
5.8
|
|
|
—
|
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA
|
$
|
136.1
|
|
|
$
|
119.2
|
|
|
$
|
385.3
|
|
|
$
|
308.1
|
|
|
|
Net
debt(c) to capital
|
|
|
|
|
|
|
|
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
(in millions,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
|
|
|
|
$
|
1,542.6
|
|
|
$
|
1,559.1
|
|
Less: cash and cash
equivalents
|
|
|
|
|
|
|
|
|
219.0
|
|
|
154.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt at end of
period
|
|
|
|
|
|
|
|
|
1,323.6
|
|
|
1,405.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
169.3
|
|
|
33.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total invested
capital at end of period
|
|
|
|
|
|
|
|
|
$
|
1,492.9
|
|
|
$
|
1,438.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to
capital(d)
|
|
|
|
|
|
|
|
|
88.7
|
%
|
|
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(e)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
149.2
|
|
|
$
|
69.1
|
|
|
$
|
231.6
|
|
|
$
|
102.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property, plant & equipment, net
of proceeds from sale of property, plant &
equipment and sale-leaseback of equipment
|
(52.3)
|
|
|
(48.3)
|
|
|
(147.7)
|
|
|
(148.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$
|
96.9
|
|
|
$
|
20.8
|
|
|
$
|
83.9
|
|
|
$
|
(46.6)
|
|
|
________________________________________
|
|
|
(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)
|
Special charges of
$5.8 million for the three and nine months ended September 30, 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.
|
|
|
(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 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.