Net income increases
58% on a year-over-year basis to $53.2 million, or $0.68 per
share
Detroit, Michigan, May 1, 2015 -- American Axle
& Manufacturing Holdings, Inc. (AAM), which is traded as AXL on
the NYSE, today reported its financial results for the first
quarter of 2015.
First Quarter 2015
Results
· First quarter 2015
sales of $969.1 million, up approximately 12.8% on a year-over-year
basis
· Non-GM sales grew over
14% on a year-over-year basis to $328.9 million
· Gross profit of $152.8
million, or 15.8% of sales
· Net income of $53.2
million, or $0.68 per share
· EBITDA (earnings
before interest, taxes, depreciation and amortization) of $137.5
million, or 14.2% of sales
AAM's net income in the first quarter of 2015 was
$53.2 million, or $0.68 per share as compared to net income of
$33.6 million, or $0.44 per share, in the first quarter of
2014.
"AAM is off to a great start in 2015, with
increased North American production volumes and improved operating
efficiency driving sales growth and margin expansion," said
AAM's Chairman, President and Chief Executive Officer, David C.
Dauch. "We remain focused on leveraging AAM's technology
leadership to develop innovative new products to improve the fuel
efficiency, safety, ride and handling performance of our customers'
vehicle programs, while delivering on our plan to sustain strong
free cash flow performance."
AAM's sales in the first quarter of 2015 increased
approximately 12.8% to $969.1 million as compared to $858.8 million
in the first quarter of 2014. Non-GM sales grew 14.3% on a
year-over-year basis to $328.9 million in the first quarter of 2015
as compared to $287.8 million in the first quarter of 2014.
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 first
quarter of 2015, AAM's content-per-vehicle was $1,676 as compared
to $1,655 in the first quarter of 2014.
AAM's gross profit in the first quarter of 2015
was $152.8 million, or 15.8% of sales, as compared to $121.9
million, or 14.2% of sales, in the first quarter of 2014.
In the first quarter of 2015, AAM's operating
income increased by nearly $20 million to $84.3 million, or 8.7% of
sales, as compared to $64.8 million, or 7.5% of sales, in the first
quarter of 2014.
AAM's SG&A spending in the first quarter of
2015 was $68.5 million, or 7.1% of sales, as compared to $57.1
million, or 6.6% of sales, in the first quarter of 2014.
AAM's R&D spending in the first quarter of 2015 was $27.3
million as compared to $25.8 million in the first quarter of
2014.
In the first quarter of 2015, AAM's net income was
$53.2 million, or $0.68 per share as compared to $33.6 million or
$0.44 per share in the first quarter of 2014.
AAM defines EBITDA to be earnings before interest,
taxes, depreciation and amortization. In the first quarter of
2015, AAM's EBITDA increased by $25 million to $137.5 million, or
14.2% of sales, as compared to $112.5 million, or 13.1% of sales,
in the first quarter of 2014.
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.
Net cash provided by operating activities for the
first quarter of 2015 was $6.4 million. Capital spending, net
of proceeds from the sale of property, plant and equipment, for the
first quarter of 2015 was $43.5 million. Reflecting the
impact of this activity, AAM's free cash flow was a use of $37.1
million for the first quarter of 2015.
A conference call to review AAM's first quarter
2015 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 May 1, 2015 until 5:00 p.m. ET May 8, 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 34605208.
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,
electric drive 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.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited) |
|
|
Three months
ended |
|
|
March 31, |
|
|
2015 |
|
2014 |
|
|
(in millions,
except per share data) |
|
|
|
|
|
| Net
sales |
$ |
969.1 |
|
|
$ |
858.8 |
|
|
|
|
|
|
| Cost
of goods sold |
816.3 |
|
|
736.9 |
|
|
|
|
|
|
| Gross
profit |
152.8 |
|
|
121.9 |
|
|
|
|
|
|
|
Selling, general and administrative expenses |
68.5 |
|
|
57.1 |
|
|
|
|
|
|
|
Operating income |
84.3 |
|
|
64.8 |
|
|
|
|
|
|
|
Interest expense |
(25.1 |
) |
|
(25.0 |
) |
|
|
|
|
|
|
Investment income |
0.8 |
|
|
0.3 |
|
|
|
|
|
|
| Other
income, net |
2.4 |
|
|
0.5 |
|
|
|
|
|
|
| Income
before income taxes |
62.4 |
|
|
40.6 |
|
|
|
|
|
|
| Income
tax expense |
9.2 |
|
|
7.0 |
|
|
|
|
|
|
| Net
income |
$ |
53.2 |
|
|
$ |
33.6 |
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.68 |
|
|
$ |
0.44 |
|
|
|
|
|
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(Unaudited) |
|
|
Three months
ended |
|
|
March 31, |
|
|
2015 |
|
2014 |
|
|
(in
millions) |
|
|
|
|
|
| Net
income |
$ |
53.2 |
|
|
$ |
33.6 |
|
|
|
|
|
|
| Other
comprehensive income (loss), net of tax |
|
|
|
|
Defined benefit plans, net of tax |
3.9 |
|
|
5.1 |
|
|
Foreign currency translation adjustments |
(31.5 |
) |
|
7.8 |
|
| Change
in derivatives |
(0.5 |
) |
|
0.9 |
|
| Other
comprehensive income (loss) |
(28.1 |
) |
|
13.8 |
|
|
|
|
|
|
|
Comprehensive income |
$ |
25.1 |
|
|
$ |
47.4 |
|
|
|
|
|
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited) |
|
|
March 31,
2015 |
|
December 31,
2014 |
|
|
(in
millions) |
| ASSETS |
|
|
|
|
Current Assets |
|
|
|
| Cash
and cash equivalents |
$ |
205.7 |
|
|
$ |
249.2 |
|
|
Accounts receivable, net |
668.0 |
|
|
532.7 |
|
|
Inventories, net |
238.5 |
|
|
248.8 |
|
|
Prepaid expenses and other current assets |
111.8 |
|
|
108.8 |
|
|
Total current assets |
1,224.0 |
|
|
1,139.5 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
1,040.0 |
|
|
1,061.1 |
|
|
Deferred income taxes |
362.9 |
|
|
368.8 |
|
|
Goodwill |
154.3 |
|
|
155.0 |
|
| GM
postretirement cost sharing asset |
263.7 |
|
|
274.5 |
|
| Other
assets and deferred charges |
262.9 |
|
|
260.3 |
|
|
Total assets |
$ |
3,307.8 |
|
|
$ |
3,259.2 |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
Current Liabilities |
|
|
|
|
Current portion of long-term debt |
$ |
13.9 |
|
|
$ |
13.0 |
|
|
Accounts payable |
489.8 |
|
|
444.3 |
|
|
Accrued compensation and benefits |
102.4 |
|
|
109.1 |
|
|
Deferred revenue |
22.0 |
|
|
22.1 |
|
|
Accrued expenses and other current liabilities |
103.9 |
|
|
98.7 |
|
|
Total current liabilities |
732.0 |
|
|
687.2 |
|
|
|
|
|
|
|
Long-term debt |
1,520.8 |
|
|
1,523.4 |
|
|
Deferred revenue |
88.9 |
|
|
94.2 |
|
|
Postretirement benefits and other long-term liabilities |
823.8 |
|
|
841.0 |
|
|
Total liabilities |
3,165.5 |
|
|
3,145.8 |
|
|
|
|
|
|
| Total
stockholders' equity |
142.3 |
|
|
113.4 |
|
|
Total liabilities and stockholders'
equity |
$ |
3,307.8 |
|
|
$ |
3,259.2 |
|
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
|
March 31, |
|
|
|
2015 |
|
2014 |
|
|
|
(in
millions) |
|
Operating Activities |
|
|
|
|
| Net
income |
|
$ |
53.2 |
|
|
$ |
33.6 |
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities |
|
|
|
|
|
Depreciation and amortization |
|
50.0 |
|
|
46.9 |
|
|
Other |
|
(96.8 |
) |
|
(136.0 |
) |
|
Net cash provided by (used in) operating
activities |
|
6.4 |
|
|
(55.5 |
) |
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
Purchases of property, plant & equipment |
|
(43.6 |
) |
|
(47.9 |
) |
|
Proceeds from sale of property, plant & equipment |
|
0.1 |
|
|
7.9 |
|
|
Net cash used in investing activities |
|
(43.5 |
) |
|
(40.0 |
) |
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
| Net
debt activity |
|
(1.2 |
) |
|
20.6 |
|
| Debt
issuance costs |
|
- |
|
|
(0.2 |
) |
|
Purchase of treasury stock |
|
(0.3 |
) |
|
(0.3 |
) |
|
Employee stock option exercises |
|
0.4 |
|
|
0.6 |
|
|
Net cash provided by (used in) financing
activities |
|
(1.1 |
) |
|
20.7 |
|
|
|
|
|
|
|
| Effect
of exchange rate changes on cash |
|
(5.3 |
) |
|
0.4 |
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(43.5 |
) |
|
(74.4 |
) |
|
|
|
|
|
|
| Cash
and cash equivalents at beginning of period |
|
249.2 |
|
|
154.0 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period |
|
$ |
205.7 |
|
|
$ |
79.6 |
|
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,
depreciation and amortization (EBITDA)(a)
|
|
|
|
|
|
Three months
ended |
|
|
March 31, |
|
|
2015 |
|
2014 |
|
|
(in
millions) |
|
|
|
|
|
| Net
income |
$ |
53.2 |
|
|
$ |
33.6 |
|
|
Interest expense |
25.1 |
|
|
25.0 |
|
| Income
tax expense |
9.2 |
|
|
7.0 |
|
|
Depreciation and amortization |
50.0 |
|
|
46.9 |
|
|
|
|
|
|
|
EBITDA |
$ |
137.5 |
|
|
$ |
112.5 |
|
|
|
|
|
|
| Net
debt(b) to
capital |
|
|
|
|
|
|
|
March 31, 2015 |
|
December 31, 2014 |
|
|
(in millions,
except percentages) |
|
|
|
|
|
| Total
debt |
$ |
1,534.7 |
|
|
$ |
1,536.4 |
|
| Less:
cash and cash equivalents |
205.7 |
|
|
249.2 |
|
|
|
|
|
|
|
Net debt at end of period |
1,329.0 |
|
|
1,287.2 |
|
|
|
|
|
|
|
Stockholders' equity |
142.3 |
|
|
113.4 |
|
|
|
|
|
|
|
Total invested capital at end of period |
$ |
1,471.3 |
|
|
$ |
1,400.6 |
|
|
|
|
|
|
|
Net debt to capital(c) |
90.3 |
% |
|
91.9 |
% |
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. |
| |
| Free Cash
Flow(d) |
|
|
|
|
|
Three months
ended |
|
|
March 31, |
|
|
2015 |
|
2014 |
|
|
(in
millions) |
|
|
|
|
|
| Net
cash provided by (used in) operating activities |
$ |
6.4 |
|
|
$ |
(55.5 |
) |
|
|
|
|
|
Less:
Purchases of property, plant & equipment, net
of proceeds from sale of property, plant & equipment |
(43.5 |
) |
|
(40.0 |
) |
|
|
|
|
|
|
Free cash flow |
$ |
(37.1 |
) |
|
$ |
(95.5 |
) |
________________________________________
(a) We define EBITDA to be
earnings before interest, 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 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. 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.
Publishing_FINAL_1Q-FY15_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
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