DETROIT, July 29, 2016 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the second quarter of 2016 and
updated its full year 2016 outlook.
Second Quarter 2016 Results
- Sales of $1.025 billion
- Gross profit of $191.4 million,
or 18.7% of sales
- Net income of $71.0 million, or
$0.90 per share
- Adjusted EBITDA (earnings before interest expense, income
taxes, depreciation and amortization, excluding the impact of a
$1.0 million investment gain related
to the final distribution of the Reserve Yield Plus Fund) of
$164.8 million, or 16.1% of
sales
- Net cash provided by operating activities of $157.3 million
- 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 $105.0 million
AAM's net income in the second quarter of 2016 was $71.0 million, or $0.90 per share, as compared to net income of
$58.6 million, or $0.75 per share, in the second quarter of
2015. In the second quarter of 2016, AAM's results reflect
the impact of a $1.0 million
investment gain related to the final distribution of the Reserve
Yield Plus Fund.
AAM's net income in the first half of 2016 increased to
$132.1 million, or $1.68 per share, as compared to net income of
$111.8 million, or $1.43 per share, in the first half of 2015.
"AAM's second quarter results were highlighted by record
quarterly sales and gross profit. As a result of our strong
operational and financial performance in the first half of 2016, we
are increasing our full year profitability and free cash flow
targets for 2016," said AAM's Chairman & Chief Executive
Officer, David C. Dauch. "AAM
continues to earn new business featuring our latest innovative
driveline solutions and expects customer demand for our advanced
technologies to fuel greater business diversification and
profitable growth."
AAM's sales in the second quarter of 2016 increased to
$1.025 billion as compared to
$1.004 billion in the second quarter
of 2015. Non-GM sales were $333.9
million in the second quarter of 2016 as compared to
$343.1 million in the second quarter
of 2015.
AAM's net sales in the first half of 2016 were $1.995 billion as compared to $1.973 billion in the first half of 2015.
Non-GM sales in the first half of 2016 were $657.1 million as compared to $672.0 million in the first half 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 second quarter of 2016, AAM's
content-per-vehicle was $1,609 as
compared to $1,637 in the second
quarter of 2015.
AAM's gross profit in the second quarter of 2016 increased to
$191.4 million, or 18.7% of sales, as
compared to $164.5 million, or 16.4%
of sales, in the second quarter of 2015.
AAM's gross profit for the first half of 2016 was $365.4 million as compared to $317.3 million in the first half of 2015.
Gross margin was 18.3% in the first half of 2016 as compared to
16.1% in the first half of 2015.
AAM's SG&A spending in the second quarter of 2016 was
$79.9 million, or 7.8% of sales, as
compared to $70.6 million, or 7.0% of
sales, in the second quarter of 2015. AAM's R&D spending
in the second quarter of 2016 was $35.1
million as compared to $29.5
million in the second quarter of 2015.
In the first half of 2016, AAM's SG&A spending was
$155.5 million, or 7.8%, of sales as
compared to $139.1 million, or 7.1%,
in the first half of 2015. AAM's R&D spending in the
first half of 2016 was $66.0 million
as compared to $56.8 million in the
first half of 2015.
AAM defines EBITDA to be earnings before interest expense,
income taxes, depreciation and amortization. Adjusted EBITDA
is defined as EBITDA excluding the impact of an investment gain
related to the final distribution of the Reserve Yield Plus
Fund. In the second quarter of 2016, AAM's Adjusted EBITDA
increased to $164.8 million, or 16.1%
of sales, as compared to $146.9
million, or 14.6% of sales, in the second quarter of
2015. In the first half of 2016, AAM's Adjusted EBITDA
increased to $314.6 million, or 15.8%
of sales, as compared to $284.4
million, or 14.4% of sales, in the first half 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 and government grants. Net
cash provided by operating activities for the second quarter of
2016 was $157.3 million.
Capital spending, net of proceeds from the sale of property, plant
and equipment and government grants, for the second quarter of 2016
was $52.3 million. Reflecting
the impact of this activity, AAM generated free cash flow of
$105.0 million for the second quarter
of 2016.
Share Repurchase Program
AAM began its share repurchase program in the second quarter of
2016, in which we repurchased 100,000 shares at an average price of
$15.02. As of June 30, 2016, there was approximately
$98.5 million remaining for future
repurchases under the program, which expires on December 31, 2018.
AAM's Full Year 2016 Outlook
AAM has updated its full year 2016 outlook:
- AAM is targeting sales of $4.0
billion in 2016. This sales projection is based on the
anticipated launch schedule of programs in AAM's new and
incremental business backlog and the assumption that the U.S.
Seasonally Adjusted Annual Rate of sales ("SAAR") is approximately
17.5 million light vehicle units in 2016.
- AAM is targeting an Adjusted EBITDA margin in the range of
15.0% to 15.5% in 2016.
- AAM is targeting free cash flow in the range of $140 million to $160 million in 2016.
- AAM is targeting full year capital spending of approximately 6%
of sales in 2016.
Second Quarter 2016 Conference Call
A conference call to review AAM's second quarter 2016 results is
scheduled today at 10:00 AM ET.
Interested participants may listen to the live conference call by
logging onto AAM's investor web site at 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 July
29 until 11:59 p.m. ET
August 5 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 87956019.
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 manufacturing, 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.
Cautionary Statements
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; 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, including
those resulting from the United
Kingdom's vote to exit the European Union); negative or
unexpected tax consequences; our ability to consummate and
integrate acquisitions and joint ventures; global economic
conditions; 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; our ability to protect our intellectual property and
successfully defend against assertions made against us; our ability
to successfully implement upgrades to our enterprise resource
planning systems; 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
|
|
Six Months
ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,025.4
|
|
|
$
|
1,004.0
|
|
|
$
|
1,994.6
|
|
|
$
|
1,973.1
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
834.0
|
|
|
839.5
|
|
|
1,629.2
|
|
|
1,655.8
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
191.4
|
|
|
164.5
|
|
|
365.4
|
|
|
317.3
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
79.9
|
|
|
70.6
|
|
|
155.5
|
|
|
139.1
|
|
|
|
|
|
|
|
|
|
Operating
income
|
111.5
|
|
|
93.9
|
|
|
209.9
|
|
|
178.2
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(23.4)
|
|
|
(24.8)
|
|
|
(47.0)
|
|
|
(49.9)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
1.5
|
|
|
0.6
|
|
|
2.1
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
2.1
|
|
|
1.8
|
|
|
3.1
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
91.7
|
|
|
71.5
|
|
|
168.1
|
|
|
133.9
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
20.7
|
|
|
12.9
|
|
|
36.0
|
|
|
22.1
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
71.0
|
|
|
$
|
58.6
|
|
|
$
|
132.1
|
|
|
$
|
111.8
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.90
|
|
|
$
|
0.75
|
|
|
$
|
1.68
|
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
|
$
|
71.0
|
|
|
$
|
58.6
|
|
|
$
|
132.1
|
|
|
$
|
111.8
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Defined benefit
plans, net of tax (a)
|
0.5
|
|
|
0.9
|
|
|
4.7
|
|
|
4.8
|
|
Foreign currency translation
adjustments
|
0.8
|
|
|
3.0
|
|
|
15.8
|
|
|
(28.5)
|
|
Changes in cash flow
hedges
|
(5.7)
|
|
|
(1.2)
|
|
|
(2.3)
|
|
|
(1.7)
|
|
Other comprehensive
income (loss)
|
(4.4)
|
|
|
2.7
|
|
|
18.2
|
|
|
(25.4)
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
66.6
|
|
|
$
|
61.3
|
|
|
$
|
150.3
|
|
|
$
|
86.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts are
net of tax of $(0.4) million and $(2.7) million for the three and
six months ended June 30, 2016, respectively, and $(0.4) million
and $(2.4) million for the three and six months ended June 30,
2015, respectively.
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
388.4
|
|
|
$
|
282.5
|
|
Accounts receivable,
net
|
641.7
|
|
|
539.1
|
|
Inventories,
net
|
226.9
|
|
|
230.5
|
|
Prepaid expenses and
other
|
77.4
|
|
|
72.1
|
|
Total current
assets
|
1,334.4
|
|
|
1,124.2
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,080.7
|
|
|
1,046.2
|
|
Deferred income
taxes
|
352.2
|
|
|
373.6
|
|
Goodwill
|
154.4
|
|
|
154.4
|
|
GM postretirement
cost sharing asset
|
238.2
|
|
|
243.2
|
|
Other assets and
deferred charges
|
272.8
|
|
|
261.1
|
|
Total
assets
|
$
|
3,432.7
|
|
|
$
|
3,202.7
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
3.4
|
|
|
$
|
3.3
|
|
Accounts
payable
|
503.8
|
|
|
412.7
|
|
Accrued compensation
and benefits
|
113.0
|
|
|
128.0
|
|
Deferred
revenue
|
24.1
|
|
|
22.9
|
|
Accrued expenses and
other
|
107.6
|
|
|
132.3
|
|
Total current
liabilities
|
751.9
|
|
|
699.2
|
|
|
|
|
|
Long-term debt,
net
|
1,403.3
|
|
|
1,375.7
|
|
Deferred
revenue
|
57.1
|
|
|
65.7
|
|
Postretirement
benefits and other long-term liabilities
|
763.0
|
|
|
760.6
|
|
Total
liabilities
|
2,975.3
|
|
|
2,901.2
|
|
|
|
|
|
Total stockholders'
equity
|
457.4
|
|
|
301.5
|
|
Total liabilities
and stockholders' equity
|
$
|
3,432.7
|
|
|
$
|
3,202.7
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(in
millions)
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
71.0
|
|
|
$
|
58.6
|
|
|
$
|
132.1
|
|
|
$
|
111.8
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
50.7
|
|
|
50.6
|
|
|
100.5
|
|
|
100.6
|
|
Other
|
|
35.6
|
|
|
38.7
|
|
|
(49.1)
|
|
|
(58.1)
|
|
Net cash provided
by operating activities
|
|
157.3
|
|
|
147.9
|
|
|
183.5
|
|
|
154.3
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(55.1)
|
|
|
(47.8)
|
|
|
(105.7)
|
|
|
(91.4)
|
|
Proceeds from sale of
property, plant and equipment
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.1
|
|
Proceeds from
government grants
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
Final distribution of
the Reserve Yield Plus Fund
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(51.3)
|
|
|
(47.8)
|
|
|
(101.3)
|
|
|
(91.3)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
21.2
|
|
|
(3.2)
|
|
|
25.8
|
|
|
(4.4)
|
|
Employee stock option
exercises
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.4
|
|
Purchase of treasury
stock
|
|
(1.5)
|
|
|
(2.4)
|
|
|
(5.0)
|
|
|
(2.7)
|
|
Net cash provided
by (used in) financing activities
|
|
19.8
|
|
|
(5.6)
|
|
|
20.9
|
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
0.6
|
|
|
1.1
|
|
|
2.8
|
|
|
(4.2)
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
126.4
|
|
|
95.6
|
|
|
105.9
|
|
|
52.1
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
262.0
|
|
|
205.7
|
|
|
282.5
|
|
|
249.2
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
388.4
|
|
|
$
|
301.3
|
|
|
$
|
388.4
|
|
|
$
|
301.3
|
|
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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
|
$
|
71.0
|
|
|
$
|
58.6
|
|
|
$
|
132.1
|
|
|
$
|
111.8
|
|
Interest
expense
|
23.4
|
|
|
24.8
|
|
|
47.0
|
|
|
49.9
|
|
Income tax
expense
|
20.7
|
|
|
12.9
|
|
|
36.0
|
|
|
22.1
|
|
Depreciation and
amortization
|
50.7
|
|
|
50.6
|
|
|
100.5
|
|
|
100.6
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
165.8
|
|
|
$
|
146.9
|
|
|
$
|
315.6
|
|
|
$
|
284.4
|
|
|
|
|
|
|
|
|
|
Less:
Investment gain related to the final distribution of the Reserve
Yield Plus Fund
|
(1.0)
|
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
164.8
|
|
|
$
|
146.9
|
|
|
$
|
314.6
|
|
|
$
|
284.4
|
|
Net
debt(b) to capital
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
(in millions,
except percentages)
|
|
|
|
|
Current portion of
long-term debt
|
$
|
3.4
|
|
|
$
|
3.3
|
|
Long-term debt,
net
|
1,403.3
|
|
|
1,375.7
|
|
Total debt,
net
|
1,406.7
|
|
|
1,379.0
|
|
Less: Cash and cash
equivalents
|
388.4
|
|
|
282.5
|
|
Net debt at end of
period
|
1,018.3
|
|
|
1,096.5
|
|
Stockholders'
equity
|
457.4
|
|
|
301.5
|
|
Total invested
capital at end of period
|
$
|
1,475.7
|
|
|
$
|
1,398.0
|
|
|
|
|
|
Net debt to
capital(c)
|
69.0
|
%
|
|
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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
157.3
|
|
|
$
|
147.9
|
|
|
$
|
183.5
|
|
|
$
|
154.3
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property, plant and equipment, net of proceeds from sale of
property, plant and equipment and government grants
|
(52.3)
|
|
|
(47.8)
|
|
|
(102.3)
|
|
|
(91.3)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$
|
105.0
|
|
|
$
|
100.1
|
|
|
$
|
81.2
|
|
|
$
|
63.0
|
|
Full Year 2016
Outlook
|
|
|
Adjusted EBITDA
Margin
|
|
Low
End
|
|
High
End
|
|
(in millions,
except percentages)
|
Net income
|
$
|
237
|
|
|
$
|
253
|
|
Income tax
expense
|
59
|
|
|
63
|
|
Interest
expense
|
95
|
|
|
95
|
|
Depreciation &
amortization
|
210
|
|
|
210
|
|
Full year 2016
targeted EBITDA
|
601
|
|
|
621
|
|
Less:
Investment gain related to the final distribution of the Reserve
Yield Plus Fund
|
(1)
|
|
|
(1)
|
|
Full year 2016
targeted Adjusted EBITDA
|
$
|
600
|
|
|
$
|
620
|
|
|
|
|
|
Full year 2016
targeted sales
|
4,000
|
|
|
4,000
|
|
|
|
|
|
Full year 2016
targeted Adjusted EBITDA margin
|
15.0
|
%
|
|
15.5
|
%
|
|
Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
380
|
|
|
$
|
400
|
|
Less: Purchases of
property, plant and equipment, net of proceeds from sale of
property, plant and equipment and government grants
|
(240)
|
|
|
(240)
|
|
Full year 2016
targeted free cash flow
|
$
|
140
|
|
|
$
|
160
|
|
|
|
|
|
|
Due to the
unpredictability of future events and the impractical nature of
estimating the impact of such events, the foregoing forward-looking
information does not reflect potential special charges,
asset impairments, income tax adjustments, debt refinancing
activities or other possible adjustments to EBITDA and free cash
flow.
|
|
|
|
|
(a)
|
We define EBITDA to
be earnings before interest expense, income taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding the
impact of the investment gain related to the final distribution of
the Reserve Yield Plus Fund. 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 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.
|
|
(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 and 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.
|
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SOURCE American Axle & Manufacturing Holdings, Inc.