Detroit, Michigan, February 23, 2015
-- 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 2014.
Fourth Quarter 2014
Results
- Fourth quarter 2014 sales of $939.5 million, up
approximately 13% on a year-over-year basis
- Non-GM sales grew over 13% on a year-over-year
basis to $317.2 million
- Gross profit of $111.2 million, or 11.8% of
sales
- Net income of $13.2 million, or $0.17 per
share
- AAM's quarterly results reflect a non-cash charge
of $35.5 million related to a voluntary one-time lump sum cash
payment to certain eligible terminated vested participants in our
U.S. pension plans (2014 Pension Payout Offer)
- Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization, excluding the impact of the non-cash
charge related to the 2014 Pension Payout Offer) of $135.1 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 and government grants) of $39.2
million
Full Year 2014
Results
- Full year 2014 sales of $3.7 billion, up
approximately 15% on a year-over-year basis
- Non-GM sales grew nearly 30% on a year-over-year
basis to $1.2 billion
- Gross profit of $522.8 million, or 14.1% of
sales
- Net income of $143.0 million, or $1.85 per
share
- Adjusted EBITDA of $512.0 million, or 13.9% of
sales
- Free cash flow of $123.1 million
AAM's net income in the fourth quarter of 2014 was
$13.2 million, or $0.17 per share. In the fourth quarter of 2014,
AAM's results reflect the impact of a non-cash charge of $35.5
million related to the 2014 Pension Payout Offer. This compares to
net income of $29.8 million, or $0.39 per share, in the fourth
quarter of 2013.
In the fourth quarter of 2013, AAM's results
reflect the impact of $25.6 million of debt refinancing and
redemption costs.
For the full year 2014, AAM's net income was of
$143.0 million, or $1.85 per share. This compares to net income of
$94.5 million, or $1.23 per share in 2013.
On a full year basis in 2013, AAM incurred $36.8
million of debt refinancing and redemption costs and $5.8 million
of other special items.
"2014 was a very successful year for AAM.
AAM's sales growth outpaced the industry in 2014 and our financial
performance was highlighted by improved profitability and a
positive inflection in cash flow generation," said AAM's Chairman,
President and Chief Executive Officer, David C. Dauch. "As we look
to the future, we remain focused on delivering our plan to sustain
strong free cash flow performance while leveraging AAM's technology
leadership to develop innovative, market driven products to achieve
profitable growth and business diversification."
Net sales in the fourth quarter of 2014 increased
13% to $939.5 million as compared to $831.3 million in the fourth
quarter of 2013. Non-GM sales grew 13.2% on a year-over-year basis
to $317.2 million in the fourth quarter of 2014 as compared to
$280.1 million in the fourth quarter 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 fourth quarter of
2014, AAM's content-per-vehicle was $1,697 as compared to $1,579 in
the fourth quarter of 2013. For the full year 2014, AAM's
content-per-vehicle was $1,667 as compared to $1,550 in 2013.
Net sales for the full year 2014 increased by
15.2% to $3.70 billion as compared to $3.21 billion in 2013. Non-GM
sales grew 29.5% on a year-over-year basis to $1.2 billion in 2014
as compared to $926.7 million in 2013.
AAM's gross profit in the fourth quarter of 2014
was $111.2 million, or 11.8% of sales. For the full year 2014,
AAM's gross profit was $522.8 million, or 14.1% of sales.
In the fourth quarter of 2014, AAM's operating
income was $38.6 million, or 4.1% of sales. For the full year 2014,
AAM's operating income was $267.6 million, or 7.2% of
sales.
AAM's SG&A spending in the fourth quarter of
2014 was $72.6 million, or 7.7% of sales, as compared to $60.5
million, or 7.3% of sales, in the fourth quarter of 2013. AAM's
R&D spending in the fourth quarter of 2014 was $27.3 million as
compared to $24.0 million in the fourth quarter of 2013.
Approximately $4.3 million of the non-cash charge for the 2014
Pension Payout Offer was recognized in SG&A.
AAM's SG&A spending for the full year 2014 was
$255.2 million, or 6.9% of sales, as compared to $238.4 million, or
7.4% of sales, for the full year 2013. AAM's R&D spending for
the full year 2014 was $103.9 million as compared to $103.4 million
in 2013.
Other income in the fourth quarter of 2014 was
$6.4 million as compared to a loss of $0.5 million in the fourth
quarter of 2013. For the full year 2014, other income was $6.9
million as compared to a loss of $1.9 million in 2013. The primary
components of other income in 2013 and 2014 are foreign exchange
gains and losses and earnings from our unconsolidated Hefei (China)
joint venture.
In the fourth quarter of 2014, AAM's net income
was $13.2 million, or 1.4% of sales. Diluted earnings per share
were $0.17 per share in the fourth quarter of 2014. For the full
year 2014, AAM's net income was $143.0 million, or 3.9% of sales.
Diluted earnings per share were $1.85 per share for the full year
2014.
AAM defines EBITDA to be earnings before interest,
taxes, depreciation and amortization. For 2014, adjusted EBITDA
is defined as EBITDA excluding the impact of the non-cash
charge related to the 2014 Pension Payout Offer.
In the fourth quarter of 2014, AAM's Adjusted
EBITDA was $135.1 million or 14.4% of sales. For the full year
2014, AAM's Adjusted EBITDA was $512.0 million, or 13.9% 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
government grants.
Net cash provided by operating activities for the
full year 2014 was $318.4 million. Capital expenditures net of
proceeds from the sale of property, plant and equipment and
government grants, for the full year 2014 was $195.3 million.
Reflecting the impact of this activity, AAM generated positive free
cash flow of $123.1 million for the full year 2014.
A conference call to review AAM's fourth quarter
and full year 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
2:00 p.m. ET on February 23, 2015 until 5:00 p.m. ET March 2, 2015
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 34605151.
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), FCA US LLC,
formerly known as 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 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; our
ability to successfully implement upgrades to our enterprise
resource planning systems; global economic conditions; 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; 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
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;
negative or unexpected tax consequences; price volatility in, or
reduced availability of, fuel; our ability to consummate and
integrate acquisitions and joint ventures; our ability to attract
and retain key associates; our ability to protect our intellectual
property and successfully defend against assertions made against
us; availability of financing for working capital, capital
expenditures, research and development (R&D) or other general
corporate purposes including acquisitions, as well as 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 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 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.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
Three months
ended |
|
Twelve months
ended |
|
December 31, |
|
December 31, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in millions,
except per share data) |
|
(in millions,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
939.5 |
|
|
$ |
831.3 |
|
|
$ |
3,696.0 |
|
|
$ |
3,207.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of goods sold |
828.3 |
|
|
704.4 |
|
|
3,173.2 |
|
|
2,728.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
111.2 |
|
|
126.9 |
|
|
522.8 |
|
|
478.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
72.6 |
|
|
60.5 |
|
|
255.2 |
|
|
238.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
38.6 |
|
|
66.4 |
|
|
267.6 |
|
|
240.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(24.7 |
) |
|
(28.0 |
) |
|
(99.9 |
) |
|
(115.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
0.8 |
|
|
0.2 |
|
|
2.1 |
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Debt
refinancing and redemption costs |
- |
|
|
(25.6 |
) |
|
- |
|
|
(36.8 |
) |
Other,
net |
6.4 |
|
|
(0.5 |
) |
|
6.9 |
|
|
(1.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
21.1 |
|
|
12.5 |
|
|
176.7 |
|
|
86.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit) |
7.9 |
|
|
(17.3 |
) |
|
33.7 |
|
|
(8.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13.2 |
|
|
$ |
29.8 |
|
|
$ |
143.0 |
|
|
$ |
94.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.17 |
|
|
$ |
0.39 |
|
|
$ |
1.85 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
|
Three months
ended |
|
Twelve months
ended |
|
December 31, |
|
December 31, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13.2 |
|
|
$ |
29.8 |
|
|
$ |
143.0 |
|
|
$ |
94.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
Defined benefit plans, net of tax |
(49.0 |
) |
|
60.9 |
|
|
(42.7 |
) |
|
76.6 |
|
Foreign currency translation adjustments |
(18.4 |
) |
|
(11.9 |
) |
|
(30.3 |
) |
|
(26.2 |
) |
Change
in derivatives |
(6.6 |
) |
|
0.2 |
|
|
(7.7 |
) |
|
(2.0 |
) |
Other
comprehensive income (loss ) |
(74.0 |
) |
|
49.2 |
|
|
(80.7 |
) |
|
48.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
$ |
(60.8 |
) |
|
$ |
79.0 |
|
|
$ |
62.3 |
|
|
$ |
142.9 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
December 31,
2014 |
|
December 31,
2013 |
|
(in
millions) |
ASSETS |
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash
and cash equivalents |
$ |
249.2 |
|
|
$ |
154.0 |
|
Accounts receivable, net |
532.7 |
|
|
458.5 |
|
Inventories, net |
248.8 |
|
|
261.8 |
|
Deferred income taxes |
40.2 |
|
|
34.9 |
|
Prepaid expenses and other current assets |
68.6 |
|
|
87.1 |
|
Total current assets |
1,139.5 |
|
|
996.3 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
1,061.1 |
|
|
1,058.5 |
|
Deferred income taxes |
368.8 |
|
|
341.8 |
|
Goodwill |
155.0 |
|
|
156.4 |
|
GM
postretirement cost sharing asset |
274.5 |
|
|
242.0 |
|
Other
assets and deferred charges |
260.3 |
|
|
232.5 |
|
Total assets |
$ |
3,259.2 |
|
|
$ |
3,027.5 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Current portion of long-term debt |
$ |
13.0 |
|
|
$ |
- |
|
Accounts payable |
444.3 |
|
|
437.4 |
|
Accrued compensation and benefits |
109.1 |
|
|
110.1 |
|
Deferred revenue |
22.1 |
|
|
17.0 |
|
Deferred income taxes |
0.1 |
|
|
0.1 |
|
Accrued expenses and other current liabilities |
98.6 |
|
|
94.1 |
|
Total current liabilities |
687.2 |
|
|
658.7 |
|
|
|
|
|
|
|
Long-term debt |
1,523.4 |
|
|
1,559.1 |
|
Deferred income taxes |
9.1 |
|
|
9.8 |
|
Deferred revenue |
94.2 |
|
|
76.4 |
|
Postretirement benefits and other long-term liabilities |
831.9 |
|
|
683.0 |
|
Total liabilities |
3,145.8 |
|
|
2,987.0 |
|
|
|
|
|
|
|
Total
stockholders' equity |
113.4 |
|
|
40.5 |
|
Total liabilities and stockholders'
equity |
$ |
3,259.2 |
|
|
$ |
3,027.5 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
|
December 31, |
|
December 31, |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
(in
millions) |
|
(in
millions) |
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
13.2 |
|
|
$ |
29.8 |
|
|
$ |
143.0 |
|
|
$ |
94.5 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
53.8 |
|
|
47.6 |
|
|
199.9 |
|
|
177.0 |
|
Other |
|
19.8 |
|
|
43.3 |
|
|
(24.5 |
) |
|
(48.5 |
) |
Net cash provided by operating activities |
|
86.8 |
|
|
120.7 |
|
|
318.4 |
|
|
223.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant & equipment |
|
(50.3 |
) |
|
(73.7 |
) |
|
(206.5 |
) |
|
(251.9 |
) |
Proceeds from sale of property, plant & equipment |
|
0.6 |
|
|
3.3 |
|
|
9.1 |
|
|
9.1 |
|
Proceeds from sale-leaseback of equipment |
|
- |
|
|
0.6 |
|
|
- |
|
|
24.1 |
|
Proceeds from government grants |
|
2.1 |
|
|
- |
|
|
2.1 |
|
|
- |
|
Net cash used in investing activities |
|
(47.6 |
) |
|
(69.8 |
) |
|
(195.3 |
) |
|
(218.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in long-term debt and other |
|
(5.3 |
) |
|
(11.0 |
) |
|
(22.0 |
) |
|
104.8 |
|
Debt
issuance costs |
|
- |
|
|
(3.8 |
) |
|
(0.3 |
) |
|
(16.7 |
) |
Purchase of treasury stock |
|
- |
|
|
- |
|
|
(0.3 |
) |
|
(0.4 |
) |
Employee stock option exercises |
|
- |
|
|
0.3 |
|
|
1.2 |
|
|
1.1 |
|
Net cash provided by (used in) financing
activities |
|
(5.3 |
) |
|
(14.5 |
) |
|
(21.4 |
) |
|
88.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash |
|
(3.7 |
) |
|
(1.0 |
) |
|
(6.5 |
) |
|
(1.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
30.2 |
|
|
35.4 |
|
|
95.2 |
|
|
91.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period |
|
219.0 |
|
|
118.6 |
|
|
154.0 |
|
|
62.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period |
|
$ |
249.2 |
|
|
$ |
154.0 |
|
|
$ |
249.2 |
|
|
$ |
154.0 |
|
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, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13.2 |
|
|
$ |
29.8 |
|
|
$ |
143.0 |
|
|
$ |
94.5 |
|
Interest expense |
24.7 |
|
|
28.0 |
|
|
99.9 |
|
|
115.9 |
|
Income
tax expense (benefit) |
7.9 |
|
|
(17.3 |
) |
|
33.7 |
|
|
(8.2 |
) |
Depreciation and amortization |
53.8 |
|
|
47.6 |
|
|
199.9 |
|
|
177.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
99.6 |
|
|
88.1 |
|
|
476.5 |
|
|
379.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
refinancing and redemption costs |
- |
|
|
25.6 |
|
|
- |
|
|
36.8 |
|
Other
special charges and restructuring costs(b) |
35.5 |
|
|
- |
|
|
35.5 |
|
|
5.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
$ |
135.1 |
|
|
$ |
113.7 |
|
|
$ |
512.0 |
|
|
$ |
421.8 |
|
Net
debt(c) to
capital
|
December 31, 2014 |
|
December 31, 2013 |
|
(in millions,
except percentages) |
|
|
|
|
|
|
Total
debt |
$ |
1,536.4 |
|
|
$ |
1,559.1 |
|
Less:
cash and cash equivalents |
249.2 |
|
|
154.0 |
|
|
|
|
|
|
|
Net debt at end of period |
1,287.2 |
|
|
1,405.1 |
|
|
|
|
|
|
|
Stockholders' equity |
113.4 |
|
|
40.5 |
|
|
|
|
|
|
|
Total invested capital at end of period |
$ |
1,400.6 |
|
|
$ |
1,445.6 |
|
|
|
|
|
|
|
Net debt to capital(d) |
91.9 |
% |
|
97.2 |
% |
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.
Free Cash
Flow(e)
|
Three months
ended |
|
Twelve months
ended |
|
December 31, |
|
December 31, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
$ |
86.8 |
|
|
$ |
120.7 |
|
|
$ |
318.4 |
|
|
$ |
223.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Capital expenditures net of proceeds from the
sale of property, plant & equipment, the sale-
leaseback of equipment and government grants |
(47.6 |
) |
|
(69.8 |
) |
|
(195.3 |
) |
|
(218.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
$ |
39.2 |
|
|
$ |
50.9 |
|
|
$ |
123.1 |
|
|
$ |
4.3 |
|
________________________________________
-
We define EBITDA to be earnings before interest,
taxes, depreciation and amortization. For 2014, adjusted EBITDA is
defined as EBITDA excluding the impact of the non-cash charge
associated with a voluntary one-time lump sum cash payment to
certain eligible terminated vested participants in our U.S. pension
plans in the fourth quarter of 2014 ("the 2014 Pension Payout
Offer"). For 2013, Adjusted EBITDA is defined as EBITDA excluding
the impact of debt refinancing and redemption costs and other
special charges and restructuring 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 of $35.5 million for the
three and twelve months ended December 31, 2014 relate to the 2014
Pension Payout Offer. 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.
-
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' 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.
-
We define 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, the
sale-leaseback of equipment and government grants. 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%20Fourth%20Quarter%20and%20Full%20Year%202014%20Financial%20Results&c1=1896331&c2=D=Referer)
Publishing_AXL-Q4_2014-Press
Release
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#1896331
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