DETROIT, May 6, 2016 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the first quarter of 2016 and
announced a share repurchase program.
First Quarter 2016 Results
- Sales of $969.2 million
- Non-GM sales of $323.2
million
- Gross profit of $174.0 million,
or 18.0% of sales
- Net income of $61.1 million, or
$0.78 per share
- EBITDA (earnings before interest, income taxes, depreciation
and amortization) of $149.8 million,
or 15.5% of sales
AAM's net income in the first quarter of 2016 was $61.1 million, or $0.78 per share, as compared to net income of
$53.2 million, or $0.68 per share, in the first quarter of
2015.
"Our strong first quarter financial results position AAM to
achieve our full year 2016 financial targets," said David C. Dauch, AAM's Chairman and Chief
Executive Officer. "As we look forward to the remainder of 2016, we
remain focused on supporting the launch of programs in our new
business backlog and advancing AAM's product technology to drive
long-term profitable growth and shareholder value."
AAM's sales in the first quarter of 2016 were $969.2 million as compared to $969.1 million in the first quarter of
2015. Non-GM sales were $323.2
million in the first quarter of 2016 as compared to
$328.9 million in the first quarter
of 2015.
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 2016, AAM's
content-per-vehicle was $1,611 as
compared to $1,676 in the first
quarter of 2015.
AAM's gross profit in the first quarter of 2016 increased
$21.2 million to $174.0 million, or 18.0% of sales, as compared to
$152.8 million, or 15.8% of sales, in
the first quarter of 2015.
AAM's SG&A spending in the first quarter of 2016 was
$75.6 million, or 7.8% of sales, as
compared to $68.5 million, or 7.1% of
sales, in the first quarter of 2015. AAM's R&D spending in
the first quarter of 2016 was $30.9
million as compared to $27.3
million in the first quarter of 2015.
AAM defines EBITDA to be earnings before interest, income taxes,
depreciation and amortization. In the first quarter of 2016,
AAM's EBITDA was $149.8 million, or
15.5% of sales, as compared to $137.5
million, or 14.2% of sales, in the first quarter of
2015.
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.
Net cash provided by operating activities for the first quarter
of 2016 was $26.2 million.
Capital spending, net of proceeds from the sale of property, plant
and equipment, for the first quarter of 2016 was $50.0 million. Reflecting the impact of
this activity, AAM's free cash flow was a use of $23.8 million for the first quarter of
2016.
Share Repurchase Program
AAM announced today that the
Board of Directors authorized a share repurchase program of up to
$100 million of AAM's common shares
through December 31, 2018 as part of
AAM's overall capital allocation strategy. "The authorization of a
share repurchase program by the Board of Directors demonstrates the
confidence in AAM's long-term growth and strong free cash flow
generation as well as our commitment to create and deliver value to
our shareholders," said Dauch.
The repurchase of shares may be made in the open market or in
privately negotiated transactions and will be funded through
available cash balances and cash flow from operations. The
timing and amount of any share repurchases will be determined based
on market and economic conditions, share price, alternative uses of
capital and other factors.
First Quarter 2016 Conference Call
A conference call
to review AAM's first quarter 2016 results and related matters 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 May 6, 2016 until
11:59 p.m. ET May 13, 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 87956018.
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, 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.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
|
|
|
Net sales
|
$
|
969.2
|
|
|
$
|
969.1
|
|
|
|
|
|
Cost of goods
sold
|
795.2
|
|
|
816.3
|
|
|
|
|
|
Gross
profit
|
174.0
|
|
|
152.8
|
|
|
|
|
|
Selling, general and
administrative expenses
|
75.6
|
|
|
68.5
|
|
|
|
|
|
Operating
income
|
98.4
|
|
|
84.3
|
|
|
|
|
|
Interest
expense
|
(23.6)
|
|
|
(25.1)
|
|
|
|
|
|
Investment
income
|
0.6
|
|
|
0.8
|
|
|
|
|
|
Other income,
net
|
1.0
|
|
|
2.4
|
|
|
|
|
|
Income before income
taxes
|
76.4
|
|
|
62.4
|
|
|
|
|
|
Income tax
expense
|
15.3
|
|
|
9.2
|
|
|
|
|
|
Net income
|
$
|
61.1
|
|
|
$
|
53.2
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.78
|
|
|
$
|
0.68
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
|
|
|
Net income
|
$
|
61.1
|
|
|
$
|
53.2
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
Defined benefit
plans, net of tax
|
4.2
|
|
|
3.9
|
|
Foreign currency
translation adjustments
|
15.0
|
|
|
(31.5)
|
|
Changes in cash flow
hedges
|
3.4
|
|
|
(0.5)
|
|
Other comprehensive
income (loss)
|
22.6
|
|
|
(28.1)
|
|
|
|
|
|
Comprehensive
income
|
$
|
83.7
|
|
|
$
|
25.1
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
262.0
|
|
|
$
|
282.5
|
|
Accounts receivable,
net
|
643.9
|
|
|
539.1
|
|
Inventories,
net
|
229.7
|
|
|
230.5
|
|
Prepaid expenses and
other
|
79.4
|
|
|
72.1
|
|
Total current
assets
|
1,215.0
|
|
|
1,124.2
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,063.5
|
|
|
1,046.2
|
|
Deferred income
taxes
|
364.2
|
|
|
373.6
|
|
Goodwill
|
154.7
|
|
|
154.4
|
|
GM postretirement
cost sharing asset
|
239.0
|
|
|
243.2
|
|
Other assets and
deferred charges
|
269.4
|
|
|
261.1
|
|
Total
assets
|
$
|
3,305.8
|
|
|
$
|
3,202.7
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
3.4
|
|
|
$
|
3.3
|
|
Accounts
payable
|
483.4
|
|
|
412.7
|
|
Accrued compensation
and benefits
|
101.5
|
|
|
128.0
|
|
Deferred
revenue
|
23.9
|
|
|
22.9
|
|
Accrued expenses and
other
|
105.6
|
|
|
132.3
|
|
Total current
liabilities
|
717.8
|
|
|
699.2
|
|
|
|
|
|
Long-term debt,
net
|
1,382.1
|
|
|
1,375.7
|
|
Deferred
revenue
|
60.8
|
|
|
65.7
|
|
Postretirement
benefits and other long-term liabilities
|
758.2
|
|
|
760.6
|
|
Total
liabilities
|
2,918.9
|
|
|
2,901.2
|
|
|
|
|
|
Total stockholders'
equity
|
386.9
|
|
|
301.5
|
|
Total liabilities
and stockholders' equity
|
$
|
3,305.8
|
|
|
$
|
3,202.7
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
Net income
|
|
$
|
61.1
|
|
|
$
|
53.2
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation and amortization
|
|
49.8
|
|
|
50.0
|
|
Other
|
|
(84.7)
|
|
|
(96.8)
|
|
Net cash provided
by operating activities
|
|
26.2
|
|
|
6.4
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(50.6)
|
|
|
(43.6)
|
|
Proceeds from sale of
property, plant & equipment
|
|
0.6
|
|
|
0.1
|
|
Net cash used in
investing activities
|
|
(50.0)
|
|
|
(43.5)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Net debt
activity
|
|
4.6
|
|
|
(1.2)
|
|
Purchase of treasury
stock
|
|
(3.5)
|
|
|
(0.3)
|
|
Employee stock option
exercises
|
|
—
|
|
|
0.4
|
|
Net cash provided
by (used in) financing activities
|
|
1.1
|
|
|
(1.1)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
2.2
|
|
|
(5.3)
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
|
(20.5)
|
|
|
(43.5)
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
282.5
|
|
|
249.2
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
262.0
|
|
|
$
|
205.7
|
|
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.
|
|
Earnings before
interest expense, income taxes, depreciation and amortization
(EBITDA)(a)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
|
|
|
Net income
|
$
|
61.1
|
|
|
$
|
53.2
|
|
Interest
expense
|
23.6
|
|
|
25.1
|
|
Income tax
expense
|
15.3
|
|
|
9.2
|
|
Depreciation and
amortization
|
49.8
|
|
|
50.0
|
|
EBITDA
|
$
|
149.8
|
|
|
$
|
137.5
|
|
|
|
|
|
|
|
|
|
|
Net
debt(b) to capital
|
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
(in millions,
except percentages)
|
|
|
|
|
Current portion of
long-term debt
|
$
|
3.4
|
|
|
$
|
3.3
|
|
Long-term debt,
net
|
1,382.1
|
|
|
1,375.7
|
|
Total debt,
net
|
1,385.5
|
|
|
1,379.0
|
|
Less: cash and cash
equivalents
|
262.0
|
|
|
282.5
|
|
Net debt at end of
period
|
1,123.5
|
|
|
1,096.5
|
|
Stockholders'
equity
|
386.9
|
|
|
301.5
|
|
Total invested
capital at end of period
|
$
|
1,510.4
|
|
|
$
|
1,398.0
|
|
|
|
|
|
Net debt to
capital(c)
|
74.4
|
%
|
|
78.4
|
%
|
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,
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
26.2
|
|
|
$
|
6.4
|
|
Less: Purchases of
property, plant & equipment, net of proceeds from sale of
property, plant & equipment
|
(50.0)
|
|
|
(43.5)
|
|
Free cash
flow
|
$
|
(23.8)
|
|
|
$
|
(37.1)
|
|
|
|
|
|
|
|
|
|
|
________________________________________
|
(a)
|
We define EBITDA to
be earnings before interest, income taxes, depreciation and
amortization. We believe that EBITDA is a meaningful measure of
performance as it is commonly utilized by management and investors
to analyze operating performance and entity valuation. Our
management, the investment community and the banking institutions
routinely use EBITDA, together with other measures, to measure our
operating performance relative to other Tier 1 automotive
suppliers. EBITDA should not be construed as income from
operations, net income or cash flow from operating activities as
determined under GAAP. Other companies may calculate EBITDA
differently.
|
|
(b)
|
Net debt is equal to
total debt, net 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 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.
|
|
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SOURCE American Axle & Manufacturing Holdings, Inc.