Achieves record
annual sales, record non-GM sales, and record gross profit in
2015
Detroit, Michigan, February 12, 2016 -- 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 2015.
Fourth Quarter 2015
Results
· Fourth quarter 2015
sales of $958.4 million
· Non-GM sales of $323.5
million
· Gross profit of $159.8
million, or 16.7% of sales
· Net income of $62.9
million, or $0.81 per share
· Adjusted EBITDA
(earnings before interest, taxes, depreciation and amortization,
excluding the impact of $0.8 million of debt refinancing and
redemption costs) of $137.5 million, or 14.3% 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 from
government grants) of $53.3 million
Full Year 2015
Results
· Full year 2015 sales
of $3.9 billion
· Non-GM sales of $1.3
billion
· Gross profit of $635.4
million, or 16.3% of sales
· Net income of $235.6
million, or $3.02 per share
· Adjusted EBITDA of
$571.1 million, or 14.6% of sales
· Free cash flow of
$189.5 million
AAM's net income in the fourth quarter of 2015 was
$62.9 million, or $0.81 per share. This compares to net income of
$13.2 million, or $0.17 per share, in the fourth quarter of
2014.
In the fourth quarter of 2015, AAM's results
reflect the impact of $0.8 million of debt refinancing and
redemption costs. These results also reflect the impact of a
favorable adjustment to income tax expense of $11.5 million related
to the resolution of transfer pricing audits in Mexico.
In the fourth quarter of 2014, AAM's results
reflect the impact of 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).
For the full year 2015, AAM's net income was of
$235.6 million, or $3.02 per share. This compares to net income of
$143.0 million, or $1.85 per share in 2014.
"AAM had an outstanding year in 2015. On the
strength of North American light vehicle production volumes and our
solid operational performance, AAM achieved record sales and record
gross profit for the year. We also made measurable progress in
diversifying our business and improving our capital structure,"
said AAM's Chairman & Chief Executive Officer, David C. Dauch.
"As we look ahead to 2016 and beyond, we remain focused on
advancing our technology leadership in order to capitalize on major
industry trends and drive profitable growth and business
diversification."
Net sales in the fourth quarter of 2015 were
$958.4 million as compared to $939.5 million in the fourth quarter
of 2014. Non-GM sales in the fourth quarter of 2015 were $323.5
million as compared to $317.2 million in the fourth 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 fourth quarter of
2015, AAM's content-per-vehicle was $1,645 as compared to $1,697 in
the fourth quarter of 2014. For the full year 2015, AAM's
content-per-vehicle was $1,645 as compared to $1,667 in 2014.
Net sales for the full year 2015 increased by 5.6%
to $3.9 billion as compared to $3.7 billion in 2014. Non-GM sales
grew by 9.8% on a year-over-year basis to $1.3 billion in 2015 as
compared to $1.2 billion in 2014.
AAM's gross profit in the fourth quarter of 2015
was $159.8 million as compared to $111.2 million in the fourth
quarter of 2014. Gross margin was 16.7% in the fourth quarter of
2015 as compared to 11.8% in the fourth quarter of 2014.
Approximately $31.2 million of the non-cash charge for the 2014
Pension Payout Offer was recorded in gross profit for the fourth
quarter and the full year of 2014.
AAM's gross profit for the full year 2015
increased 21.5% on a year-over-year basis to $635.4 million as
compared to $522.8 million for the full year of 2014. Gross margin
was 16.3% for the full year of 2015 as compared to 14.1% for the
full year of 2014.
AAM's SG&A spending in the fourth quarter of
2015 was $72.7 million, or 7.6% of sales, as compared to $72.6
million, or 7.7% of sales, in the fourth quarter of 2014. AAM's
R&D spending in the fourth quarter of 2015 was $31.3 million as
compared to $27.3 million in the fourth quarter of 2014.
Approximately $4.3 million of the non-cash charge for the 2014
Pension Payout Offer was recorded in SG&A for the fourth
quarter and the full year of 2014.
AAM's SG&A spending for the full year 2015 was
$277.3 million, or 7.1% of sales, as compared to $255.2 million, or
6.9% of sales, for the full year 2014. AAM's R&D spending for
the full year 2015 was $113.9 million as compared to $103.9 million
in 2014.
Other income in the fourth quarter of 2015 was
$1.1 million as compared to $6.4 million in the fourth quarter of
2014. For the full year 2015, other income was $12.0 million as
compared to $6.9 million in 2014. The primary components of other
income in 2015 and 2014 are foreign exchange gains and losses and
earnings from our unconsolidated Hefei (China) joint venture.
In the fourth quarter of 2015, AAM's net income
was $62.9 million, or $0.81 per share. This compares to net income
of $13.2 million, or $0.17 per share, in the fourth quarter of
2014. For the full year 2015, AAM's net income was $235.6 million,
or $3.02 per share, as compared to $143.0 million, or $1.85 per
share, for the full year of 2014.
AAM defines EBITDA to be earnings before interest,
income taxes, depreciation and amortization. For 2015, Adjusted
EBITDA is defined as EBITDA excluding the impact of debt
refinancing and redemption costs. 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 2015, AAM's Adjusted
EBITDA was $137.5 million, or 14.3% of sales, as compared to $135.1
million, or 14.4% of sales, in the fourth quarter of 2014. For the
full year 2015, AAM's Adjusted EBITDA was $571.1 million, or 14.6%
of sales, as compared to $512.0 million, or 13.9% of sales, for the
full year of 2014.
AAM defines free cash flow to be net cash provided
by operating activities less capital expenditures net of proceeds
from the sale of property, plant and equipment and from government
grants.
Net cash provided by operating activities for the
full year 2015 was $377.6 million. Capital expenditures net of
proceeds from the sale of property, plant and equipment and from
government grants, for the full year 2015 was $188.1 million.
Reflecting the impact of this activity, AAM's full year 2015 free
cash flow increased by 53.9% to $189.5 million as compared to
$123.1 million for the full year of 2014.
A conference call to review AAM's fourth quarter
and full year 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
1:00 p.m. ET on February 12, 2016 until 11:59 p.m. ET February 19,
2016 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 34605757.
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, 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 (FCA), or other customers; reduced demand for our
customers' products (particularly light trucks and sport utility
vehicles (SUVs) produced by GM and FCA); 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 respond to changes in technology,
increased competition or pricing pressures; our ability to attract
new customers and programs for new products; 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;
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 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 successfully
implement upgrades to our enterprise resource planning systems;
negative or unexpected tax consequences; 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); our ability to consummate and integrate acquisitions
and joint ventures; 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; price volatility in, or reduced
availability of, fuel; global economic conditions; our ability to
protect our intellectual property and successfully defend against
assertions made against us; 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 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...
Investor Contact:
Jason P.
Parsons
Director, Investor
Relations
(313)
758-2404
jason.parsons@aam.com
Media Contact:
Christopher M.
Son
Director, Marketing &
Communications
(313)
758-4814
chris.son@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, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
(in millions,
except per share data) |
|
(in millions,
except per share data) |
|
|
|
|
|
|
|
|
Net
sales |
$ |
958.4 |
|
|
$ |
939.5 |
|
|
$ |
3,903.1 |
|
|
$ |
3,696.0 |
|
|
|
|
|
|
|
|
|
Cost
of goods sold |
798.6 |
|
|
828.3 |
|
|
3,267.7 |
|
|
3,173.2 |
|
|
|
|
|
|
|
|
|
Gross
profit |
159.8 |
|
|
111.2 |
|
|
635.4 |
|
|
522.8 |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
72.7 |
|
|
72.6 |
|
|
277.3 |
|
|
255.2 |
|
|
|
|
|
|
|
|
|
Operating income |
87.1 |
|
|
38.6 |
|
|
358.1 |
|
|
267.6 |
|
|
|
|
|
|
|
|
|
Interest expense |
(24.5 |
) |
|
(24.7 |
) |
|
(99.2 |
) |
|
(99.9 |
) |
|
|
|
|
|
|
|
|
Investment income |
0.6 |
|
|
0.8 |
|
|
2.6 |
|
|
2.1 |
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
|
|
Debt
refinancing and redemption costs |
(0.8 |
) |
|
- |
|
|
(0.8 |
) |
|
- |
|
Other,
net |
1.1 |
|
|
6.4 |
|
|
12.0 |
|
|
6.9 |
|
|
|
|
|
|
|
|
|
Income
before income taxes |
63.5 |
|
|
21.1 |
|
|
272.7 |
|
|
176.7 |
|
|
|
|
|
|
|
|
|
Income
tax expense |
0.6 |
|
|
7.9 |
|
|
37.1 |
|
|
33.7 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
62.9 |
|
|
$ |
13.2 |
|
|
$ |
235.6 |
|
|
$ |
143.0 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.81 |
|
|
$ |
0.17 |
|
|
$ |
3.02 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
|
Three Months
Ended |
|
Twelve Months
Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
(in
millions) |
|
|
|
|
|
|
|
|
Net
income |
$ |
62.9 |
|
|
$ |
13.2 |
|
|
$ |
235.6 |
|
|
$ |
143.0 |
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss) |
|
|
|
|
|
|
|
Defined benefit plans, net of tax |
11.6 |
|
|
(49.0 |
) |
|
16.7 |
|
|
(42.7 |
) |
Foreign currency translation adjustments |
(5.9 |
) |
|
(18.4 |
) |
|
(70.3 |
) |
|
(30.3 |
) |
Changes in cash flow hedges |
3.4 |
|
|
(6.6 |
) |
|
(6.0 |
) |
|
(7.7 |
) |
Other
comprehensive income (loss) |
9.1 |
|
|
(74.0 |
) |
|
(59.6 |
) |
|
(80.7 |
) |
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
$ |
72.0 |
|
|
$ |
(60.8 |
) |
|
$ |
176.0 |
|
|
$ |
62.3 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
December 31,
2015 |
|
December 31,
2014 |
|
(in
millions) |
ASSETS |
|
|
|
Current Assets |
|
|
|
Cash
and cash equivalents |
$ |
282.5 |
|
|
$ |
249.2 |
|
Accounts receivable, net |
539.1 |
|
|
532.7 |
|
Inventories, net |
230.5 |
|
|
248.8 |
|
Deferred income taxes |
- |
|
|
40.2 |
|
Prepaid expenses and other |
72.1 |
|
|
68.6 |
|
Total current assets |
1,124.2 |
|
|
1,139.5 |
|
|
|
|
|
Property, plant and equipment, net |
1,046.2 |
|
|
1,061.1 |
|
Deferred income taxes |
373.6 |
|
|
368.8 |
|
Goodwill |
154.4 |
|
|
155.0 |
|
GM
postretirement cost sharing asset |
243.2 |
|
|
274.5 |
|
Other
assets and deferred charges |
261.1 |
|
|
241.5 |
|
Total assets |
$ |
3,202.7 |
|
|
$ |
3,240.4 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current Liabilities |
|
|
|
Current portion of long-term debt |
$ |
3.3 |
|
|
$ |
13.0 |
|
Accounts payable |
412.7 |
|
|
444.3 |
|
Accrued compensation and benefits |
128.0 |
|
|
109.1 |
|
Deferred revenue |
22.9 |
|
|
22.1 |
|
Deferred income taxes |
- |
|
|
0.1 |
|
Other
accrued expenses |
132.3 |
|
|
98.6 |
|
Total current liabilities |
699.2 |
|
|
687.2 |
|
|
|
|
|
Long-term debt, net |
1,375.7 |
|
|
1,504.6 |
|
Deferred income taxes |
6.8 |
|
|
9.1 |
|
Deferred revenue |
65.7 |
|
|
94.2 |
|
Postretirement benefits and other long-term liabilities |
753.8 |
|
|
831.9 |
|
Total liabilities |
2,901.2 |
|
|
3,127.0 |
|
|
|
|
|
Total
stockholders' equity |
301.5 |
|
|
113.4 |
|
Total liabilities and stockholders'
equity |
$ |
3,202.7 |
|
|
$ |
3,240.4 |
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve Months
Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
(in
millions) |
|
(in
millions) |
Operating Activities |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
62.9 |
|
|
$ |
13.2 |
|
|
$ |
235.6 |
|
|
$ |
143.0 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
48.7 |
|
|
53.8 |
|
|
198.4 |
|
|
199.9 |
|
Other |
|
(2.1 |
) |
|
19.8 |
|
|
(56.4 |
) |
|
(24.5 |
) |
Net cash provided by operating activities |
|
109.5 |
|
|
86.8 |
|
|
377.6 |
|
|
318.4 |
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Purchases of property, plant & equipment |
|
(61.4 |
) |
|
(50.3 |
) |
|
(193.5 |
) |
|
(206.5 |
) |
Proceeds from sale of property, plant & equipment |
|
0.1 |
|
|
0.6 |
|
|
0.3 |
|
|
9.1 |
|
Proceeds from government grants |
|
5.1 |
|
|
2.1 |
|
|
5.1 |
|
|
2.1 |
|
Net cash used in investing activities |
|
(56.2 |
) |
|
(47.6 |
) |
|
(188.1 |
) |
|
(195.3 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Net
decreases in long-term debt and other |
|
(134.5 |
) |
|
(5.3 |
) |
|
(140.2 |
) |
|
(22.0 |
) |
Debt
issuance costs |
|
- |
|
|
- |
|
|
- |
|
|
(0.3 |
) |
Purchase of noncontrolling interest |
|
(1.1 |
) |
|
- |
|
|
(1.1 |
) |
|
- |
|
Purchase of treasury stock |
|
(0.2 |
) |
|
- |
|
|
(3.1 |
) |
|
(0.3 |
) |
Employee stock option exercises, including tax benefit |
|
0.3 |
|
|
- |
|
|
0.8 |
|
|
1.2 |
|
Net cash used in financing activities |
|
(135.5 |
) |
|
(5.3 |
) |
|
(143.6 |
) |
|
(21.4 |
) |
|
|
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash |
|
(0.9 |
) |
|
(3.7 |
) |
|
(12.6 |
) |
|
(6.5 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
(83.1 |
) |
|
30.2 |
|
|
33.3 |
|
|
95.2 |
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period |
|
365.6 |
|
|
219.0 |
|
|
249.2 |
|
|
154.0 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period |
|
$ |
282.5 |
|
|
$ |
249.2 |
|
|
$ |
282.5 |
|
|
$ |
249.2 |
|
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.
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, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
Net
income |
$ |
62.9 |
|
|
$ |
13.2 |
|
|
$ |
235.6 |
|
|
$ |
143.0 |
|
Interest expense |
24.5 |
|
|
24.7 |
|
|
99.2 |
|
|
99.9 |
|
Income
tax expense |
0.6 |
|
|
7.9 |
|
|
37.1 |
|
|
33.7 |
|
Depreciation and amortization |
48.7 |
|
|
53.8 |
|
|
198.4 |
|
|
199.9 |
|
|
|
|
|
|
|
|
|
EBITDA |
136.7 |
|
|
99.6 |
|
|
570.3 |
|
|
476.5 |
|
|
|
|
|
|
|
|
|
Debt
refinancing and redemption costs |
0.8 |
|
|
- |
|
|
0.8 |
|
|
- |
|
Other
special charges(b) |
- |
|
|
35.5 |
|
|
- |
|
|
35.5 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
137.5 |
|
|
$ |
135.1 |
|
|
$ |
571.1 |
|
|
$ |
512.0 |
|
Net
debt(c) to
capital
|
December 31, 2015 |
|
December 31, 2014 |
|
(in millions,
except percentages) |
|
|
|
|
Current portion of long-term debt |
$ |
3.3 |
|
|
$ |
13.0 |
|
Long-term debt, net |
1,375.7 |
|
|
1,504.6 |
|
|
|
|
|
Total debt, net |
1,379.0 |
|
|
1,517.6 |
|
|
|
|
|
Less:
cash and cash equivalents |
282.5 |
|
|
249.2 |
|
|
|
|
|
Net debt at end of period |
1,096.5 |
|
|
1,268.4 |
|
|
|
|
|
Stockholders' equity |
301.5 |
|
|
113.4 |
|
|
|
|
|
Total invested capital at end of period |
$ |
1,398.0 |
|
|
$ |
1,381.8 |
|
|
|
|
|
Net debt to capital(d) |
78.4 |
% |
|
91.8 |
% |
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, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
(in
millions) |
|
(in
millions) |
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
$ |
109.5 |
|
|
$ |
86.8 |
|
|
$ |
377.6 |
|
|
$ |
318.4 |
|
|
|
|
|
|
|
|
|
Less:
Capital expenditures net of proceeds from
the sale of property, plant & equipment and from
government grants |
(56.2 |
) |
|
(47.6 |
) |
|
(188.1 |
) |
|
(195.3 |
) |
|
|
|
|
|
|
|
|
Free cash flow |
$ |
53.3 |
|
|
$ |
39.2 |
|
|
$ |
189.5 |
|
|
$ |
123.1 |
|
________________________________________
-
We define EBITDA to be earnings before interest,
income taxes, depreciation and amortization. For 2015, Adjusted
EBITDA is defined as EBITDA excluding the impact of debt
refinancing and redemption costs. 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"). 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
months and twelve months ended December 31, 2014 relate to the 2014
Pension Payout Offer.
-
Net debt is equal to total debt, net less cash
and cash equivalents. Net debt in 2014 has been adjusted to reflect
the impact of retrospective adoption of Accounting Standards Update
2015-03, Interest - Imputation of Interest (Subtopic 835-30):
Simplifying the Presentation of Debt Issuance Costs.
-
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 operating activities less capital expenditures net of proceeds
from the sale of property, plant and equipment and from government
grants. 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%202015%20Financial%20Results&c1=1985744&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#1985744
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