DETROIT, July 28, 2017 /PRNewswire/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its
financial results for the second quarter of 2017 and confirmed its
full year 2017 financial outlook.
Second Quarter 2017 Results
- Sales of $1.76 billion
- Net income attributable to AAM of $66.2
million or 3.8% of sales
- Diluted earnings per share of $0.59
- Adjusted earnings per share of $0.99
- Adjusted EBITDA of $325.7
million, or 18.5% of sales
- Net cash provided by operating activities of $150.9 million
- Adjusted free cash flow of $141.6
million
"AAM had an outstanding and transformational second quarter,"
said David C. Dauch, AAM's Chairman
and Chief Executive Officer. "Our financial results demonstrate the
favorable impact of AAM's recent strategic acquisitions and our
ability to deliver operational excellence, technology leadership
and world-class quality on a larger, more diverse scale. We
are off to a great start on our integration activities and look
forward to driving further value through achievement of our synergy
and debt reduction targets."
AAM's second quarter of 2017 results reflect the impact of the
acquisition of Metaldyne Performance Group Inc. (MPG) that was
completed on April 6, 2017.
AAM's sales in the second quarter of 2017 increased to
$1.76 billion as compared to
$1.03 billion in the second quarter
of 2016. AAM's net sales in the first half of 2017 were
$2.81 billion as compared to
$1.99 billion in the first half of
2016. Non-GM sales in the second quarter of 2017 increased to
a record $969.7 million, or 55.2% of
sales, as compared to $333.9 million,
or 32.6% of sales, in the second quarter of 2016.
AAM's net income in the second quarter of 2017 was $66.2 million, or $0.59 per share, as compared to net income of
$71.0 million, or $0.90 per share, in the second quarter of
2016. AAM's net income in the first half of 2017 was
$144.6 million, or $1.51 per share, as compared to net income of
$132.1 million, or $1.68 per share, in the first half of 2016.
AAM defines Adjusted earnings per share to be diluted earnings
per share excluding the impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
and non-recurring items, including the tax effect thereon.
Adjusted earnings per share in the second quarter of 2017 were
$0.99 compared to $0.89 in the second quarter of 2016. Adjusted
earnings per share in the first half of 2017 were $2.02 as compared to $1.67 in the first half of 2016.
AAM defines EBITDA to be earnings before interest expense,
income taxes, depreciation and amortization. Adjusted EBITDA is
defined as EBITDA excluding the impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
and non-recurring items. In the second quarter of 2017,
Adjusted EBITDA was $325.7 million,
or 18.5% of sales, as compared to $164.8
million, or 16.1% of sales, in the second quarter of
2016. In the first half of 2017, AAM's Adjusted EBITDA was
$509.3 million, or 18.1% of sales, as
compared to $314.6 million, or 15.8%
of sales, in the first half of 2016.
AAM's net cash provided by operating activities for the second
quarter of 2017 was $150.9 million as
compared to $157.3 million in the
second quarter of 2016. AAM's net cash provided by operating
activities for the first half of 2017 was $213.2 million as compared to $183.5 million for the first half of 2016.
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. Adjusted
free cash flow is defined as free cash flow excluding the impact of
cash payments for restructuring and acquisition-related costs,
settlements of pre-existing accounts payable balances with acquired
entities, and interest payments upon the settlement of acquired
company debt. AAM's Adjusted free cash flow for the second quarter
of 2017 was $141.6 million as
compared to $105.0 million for the
second quarter of 2016. AAM's Adjusted free cash flow for the
first half of 2017 was $202.1 million
as compared to $81.2 million for the
first half of 2016.
AAM Confirms Full Year 2017 Financial Outlook
AAM confirmed its full year 2017 financial outlook which includes
the impact of the MPG acquisition, reflecting the expected
financial performance of the acquired entity from April 6, 2017 to December
31, 2017.
- AAM is targeting sales of approximately $6.1 billion in 2017, which excludes MPG sales
for the period between January 1,
2017 and April 5, 2017.
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") will be approximately 17 million light vehicle units in
2017.
- AAM is targeting Adjusted EBITDA margin in the range of 17% to
18% of sales in 2017.
- AAM is targeting Adjusted free cash flow of approximately 5% of
sales in 2017.
- AAM is targeting full year capital spending of approximately 8%
of sales in 2017.
- We have incurred and expect to further incur significant costs
and payments related to restructuring and acquisition-related
activities as well as significant purchase accounting adjustments and related effects
on the income statement during 2017. The impact of these has been
excluded from our Adjusted EBITDA margin and Adjusted free cash
flow targets.
Second Quarter 2017 Conference Call
A conference call to review AAM's second quarter 2017 results is
scheduled today at 10:00 AM ET.
Interested participants may listen to the live conference call and
view the related conference call slides 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 28 until 11:59 p.m. ET August
4 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 87956025.
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 as Adjusted EBITDA, Adjusted
earnings per share and Adjusted free cash flow. 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.
Certain of the forward-looking financial measures included in
this earnings release are provided on a non-GAAP basis. A
reconciliation of non-GAAP forward-looking financial measures to
the most directly comparable financial measures calculated and
presented in accordance with GAAP is not practical given the
difficulty of projecting event driven transactional and other
non-core operating items, as well as purchase price adjustments and
their related effects in any future period. The magnitude of these
items, however, may be significant.
Management believes that these non-GAAP financial measures are
useful to management, investors, and banking institutions 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.
Company Description
AAM is a premier, global leader in design, engineering, validation
and manufacturing of driveline, metal forming, powertrain, and
casting products for automotive, commercial and industrial
markets.
Headquartered in Detroit, AAM
has over 25,000 associates operating at more than 90 facilities in
17 countries to support our customers on global and regional
platforms with a focus on quality, operational excellence and
technology leadership. To learn more, visit www.aam.com.
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
successfully integrate the business and information systems of
Metaldyne Performance Group, Inc. (MPG) and to realize the
anticipated benefits of the merger; risks inherent in our global
operations (including adverse changes in trade agreements, tariffs,
immigration policies, political stability, taxes and other law
changes, potential disruptions of production and supply, and
currency rate fluctuations); negative or unexpected tax
consequences; risks related to disruptions to ongoing business
operations as a result of the merger with MPG, including
disruptions to management time; 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 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 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 related to a failure of our information technology
systems and networks, and risks associated with current and
emerging technology threats and damage from computer viruses,
unauthorized access, cyber attack and other similar disruptions;
global economic conditions; a significant disruption in operations
at one of our key manufacturing facilities; 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; potential
liabilities or litigation relating to, or assumed in, the MPG
merger; potential adverse reactions or changes to business
relationships resulting from the completion of the merger with MPG;
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 or
reputational damage; 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
Executive 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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,757.8
|
|
|
$
|
1,025.4
|
|
|
$
|
2,807.7
|
|
|
$
|
1,994.6
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,441.4
|
|
|
834.0
|
|
|
2,280.6
|
|
|
1,629.2
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
316.4
|
|
|
191.4
|
|
|
527.1
|
|
|
365.4
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
105.6
|
|
|
78.7
|
|
|
186.8
|
|
|
153.2
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
24.8
|
|
|
1.2
|
|
|
26.4
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
51.7
|
|
|
—
|
|
|
67.7
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Operating
income
|
134.3
|
|
|
111.5
|
|
|
246.2
|
|
|
209.9
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(56.9)
|
|
|
(23.4)
|
|
|
(82.4)
|
|
|
(47.0)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.8
|
|
|
1.5
|
|
|
1.4
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(2.7)
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
Other income (expense),
net
|
(6.8)
|
|
|
2.1
|
|
|
(7.9)
|
|
|
3.1
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
68.7
|
|
|
91.7
|
|
|
154.6
|
|
|
168.1
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
2.4
|
|
|
20.7
|
|
|
9.9
|
|
|
36.0
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
66.3
|
|
|
$
|
71.0
|
|
|
$
|
144.7
|
|
|
$
|
132.1
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
66.2
|
|
|
$
|
71.0
|
|
|
$
|
144.6
|
|
|
$
|
132.1
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.59
|
|
|
$
|
0.90
|
|
|
$
|
1.51
|
|
|
$
|
1.68
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
|
$
|
66.3
|
|
|
$
|
71.0
|
|
|
$
|
144.7
|
|
|
$
|
132.1
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Defined benefit
plans, net of tax(a)
|
0.9
|
|
|
0.5
|
|
|
0.6
|
|
|
4.7
|
|
Foreign currency translation
adjustments
|
24.6
|
|
|
0.8
|
|
|
36.5
|
|
|
15.8
|
|
Changes in cash flow hedges,
net of tax (b)
|
4.9
|
|
|
(5.7)
|
|
|
20.4
|
|
|
(2.3)
|
|
Other comprehensive
income (loss)
|
30.4
|
|
|
(4.4)
|
|
|
57.5
|
|
|
18.2
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
96.7
|
|
|
$
|
66.6
|
|
|
$
|
202.2
|
|
|
$
|
150.3
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to AAM
|
$
|
96.6
|
|
|
$
|
66.6
|
|
|
$
|
202.1
|
|
|
$
|
150.3
|
|
________________________________________
(a)
|
Amounts are net of
tax of $(0.4) million and $(0.2) million for the three and six
months ended June 30, 2017, and $(0.4) million and $(2.7) million
for the three and six months ended June 30, 2016,
respectively.
|
(b)
|
Amounts are net of
tax of $0.7 million for the three and six months ended June 30,
2017.
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
490.6
|
|
|
$
|
481.2
|
|
Accounts receivable,
net
|
1,126.1
|
|
|
560.0
|
|
Inventories,
net
|
384.5
|
|
|
182.3
|
|
Prepaid expenses and
other
|
142.9
|
|
|
75.8
|
|
Total current
assets
|
2,144.1
|
|
|
1,299.3
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,209.3
|
|
|
1,093.7
|
|
Deferred income
taxes
|
44.7
|
|
|
369.4
|
|
Goodwill
|
1,610.8
|
|
|
154.0
|
|
Intangible assets,
net
|
1,281.1
|
|
|
28.5
|
|
GM postretirement
cost sharing asset
|
233.6
|
|
|
236.1
|
|
Other assets and
deferred charges
|
366.2
|
|
|
242.9
|
|
Total
assets
|
$
|
7,889.8
|
|
|
$
|
3,423.9
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
5.2
|
|
|
$
|
3.3
|
|
Accounts
payable
|
840.6
|
|
|
382.3
|
|
Accrued compensation
and benefits
|
194.1
|
|
|
139.3
|
|
Deferred
revenue
|
27.5
|
|
|
24.6
|
|
Accrued expenses and
other
|
159.8
|
|
|
102.0
|
|
Total current
liabilities
|
1,227.2
|
|
|
651.5
|
|
|
|
|
|
Long-term debt,
net
|
4,173.6
|
|
|
1,400.9
|
|
Deferred
revenue
|
78.4
|
|
|
70.8
|
|
Deferred income
taxes
|
264.8
|
|
|
15.0
|
|
Postretirement
benefits and other long-term liabilities
|
848.7
|
|
|
779.9
|
|
Total
liabilities
|
6,592.7
|
|
|
2,918.1
|
|
|
|
|
|
Total stockholders'
equity
|
1,297.1
|
|
|
505.8
|
|
Total liabilities
and stockholders' equity
|
$
|
7,889.8
|
|
|
$
|
3,423.9
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
66.3
|
|
|
$
|
71.0
|
|
|
$
|
144.7
|
|
|
$
|
132.1
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
124.6
|
|
|
50.7
|
|
|
180.8
|
|
|
100.5
|
|
Other
|
|
(40.0)
|
|
|
35.6
|
|
|
(112.3)
|
|
|
(49.1)
|
|
Net cash provided
by operating activities
|
|
150.9
|
|
|
157.3
|
|
|
213.2
|
|
|
183.5
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(103.7)
|
|
|
(55.1)
|
|
|
(138.6)
|
|
|
(105.7)
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.7
|
|
|
—
|
|
|
1.5
|
|
|
0.6
|
|
Proceeds from
government grants
|
|
—
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
Acquisition of
business, net of cash acquired
|
|
(751.4)
|
|
|
—
|
|
|
(895.5)
|
|
|
—
|
|
Other
|
|
(6.1)
|
|
|
1.0
|
|
|
(2.5)
|
|
|
1.0
|
|
Net cash used in
investing activities
|
|
(860.5)
|
|
|
(51.3)
|
|
|
(1,035.1)
|
|
|
(101.3)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(348.1)
|
|
|
21.2
|
|
|
829.9
|
|
|
25.8
|
|
Employee stock option
exercises
|
|
0.9
|
|
|
0.1
|
|
|
0.9
|
|
|
0.1
|
|
Purchase of treasury
stock
|
|
(1.7)
|
|
|
(1.5)
|
|
|
(6.9)
|
|
|
(5.0)
|
|
Net cash provided
by (used in) financing activities
|
|
(348.9)
|
|
|
19.8
|
|
|
823.9
|
|
|
20.9
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
5.7
|
|
|
0.6
|
|
|
7.4
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
(1,052.8)
|
|
|
126.4
|
|
|
9.4
|
|
|
105.9
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
1,543.4
|
|
|
262.0
|
|
|
481.2
|
|
|
282.5
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
490.6
|
|
|
$
|
388.4
|
|
|
$
|
490.6
|
|
|
$
|
388.4
|
|
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.
|
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
66.2
|
|
|
$
|
71.0
|
|
|
$
|
144.6
|
|
|
$
|
132.1
|
|
Interest
expense
|
56.9
|
|
|
23.4
|
|
|
82.4
|
|
|
47.0
|
|
Income tax
expense
|
2.4
|
|
|
20.7
|
|
|
9.9
|
|
|
36.0
|
|
Depreciation and
amortization
|
124.6
|
|
|
50.7
|
|
|
180.8
|
|
|
100.5
|
|
EBITDA
|
250.1
|
|
|
165.8
|
|
|
417.7
|
|
|
315.6
|
|
Restructuring and
acquisition-related costs
|
51.7
|
|
|
—
|
|
|
67.7
|
|
|
—
|
|
Debt refinancing and
redemption costs
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Acquisition-related
fair value inventory adjustment
|
24.9
|
|
|
—
|
|
|
24.9
|
|
|
—
|
|
Other
(b)
|
(3.7)
|
|
|
(1.0)
|
|
|
(3.7)
|
|
|
(1.0)
|
|
Adjusted
EBITDA
|
$
|
325.7
|
|
|
$
|
164.8
|
|
|
$
|
509.3
|
|
|
$
|
314.6
|
|
|
|
Adjusted earnings
per share(c)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.59
|
|
|
$
|
0.90
|
|
|
$
|
1.51
|
|
|
$
|
1.68
|
|
Restructuring and
acquisition-related costs
|
0.46
|
|
|
—
|
|
|
0.71
|
|
|
—
|
|
Debt refinancing and
redemption costs
|
0.02
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Acquisition-related
fair value inventory adjustment
|
0.22
|
|
|
—
|
|
|
0.26
|
|
|
—
|
|
Acquisition-related
tax adjustments
|
(0.04)
|
|
|
—
|
|
|
(0.13)
|
|
|
—
|
|
Other
(b)
|
(0.02)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
Tax effect of
adjustments
|
(0.24)
|
|
|
—
|
|
|
(0.35)
|
|
|
—
|
|
Adjusted earnings
per share
|
$
|
0.99
|
|
|
$
|
0.89
|
|
|
$
|
2.02
|
|
|
$
|
1.67
|
|
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 and
Adjusted free cash flow(d)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
150.9
|
|
|
$
|
157.3
|
|
|
$
|
213.2
|
|
|
$
|
183.5
|
|
Capital expenditures
net of proceeds from the sale
of property, plant and equipment and from
government grants
|
(103.0)
|
|
|
(52.3)
|
|
|
(137.1)
|
|
|
(102.3)
|
|
Free cash
flow
|
47.9
|
|
|
105.0
|
|
|
76.1
|
|
|
81.2
|
|
Cash payments for
restructuring and acquisition-
related costs
|
56.7
|
|
|
—
|
|
|
66.2
|
|
|
—
|
|
Acquisition-related
settlement of pre-existing
accounts payable balances with acquired entities
|
12.4
|
|
|
—
|
|
|
35.2
|
|
|
—
|
|
Interest payments
upon the settlement of acquired
company debt
|
24.6
|
|
|
—
|
|
|
24.6
|
|
|
—
|
|
Adjusted free cash
flow
|
$
|
141.6
|
|
|
$
|
105.0
|
|
|
$
|
202.1
|
|
|
$
|
81.2
|
|
|
|
Segment Financial
Information
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,021.5
|
|
|
$
|
969.5
|
|
|
$
|
2,020.8
|
|
|
$
|
1,884.3
|
|
Metal
Forming
|
369.3
|
|
|
141.4
|
|
|
519.3
|
|
|
277.2
|
|
Powertrain
|
283.6
|
|
|
—
|
|
|
283.6
|
|
|
—
|
|
Casting
|
225.6
|
|
|
—
|
|
|
225.6
|
|
|
—
|
|
Total
Sales
|
1,900.0
|
|
|
1,110.9
|
|
|
3,049.3
|
|
|
2,161.5
|
|
Intersegment
Sales
|
(142.2)
|
|
|
(85.5)
|
|
|
(241.6)
|
|
|
(166.9)
|
|
Net External
Sales
|
$
|
1,757.8
|
|
|
$
|
1,025.4
|
|
|
$
|
2,807.7
|
|
|
$
|
1,994.6
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
178.9
|
|
|
$
|
135.7
|
|
|
$
|
332.1
|
|
|
$
|
257.5
|
|
Metal
Forming
|
69.4
|
|
|
29.1
|
|
|
99.8
|
|
|
57.1
|
|
Powertrain
|
51.9
|
|
|
—
|
|
|
51.9
|
|
|
—
|
|
Casting
|
25.5
|
|
|
—
|
|
|
25.5
|
|
|
—
|
|
Total Segment
Adjusted EBITDA
|
$
|
325.7
|
|
|
$
|
164.8
|
|
|
$
|
509.3
|
|
|
$
|
314.6
|
|
________________
(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 restructuring and acquisition-related costs, debt
refinancing and redemption costs, and non-recurring items. 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 and Adjusted EBITDA, together
with other measures, to measure our operating performance relative
to other Tier 1 automotive suppliers. We also use Segment Adjusted
EBITDA as the measure of earnings to assess the performance of each
segment and determine the resources to be allocated to the
segments. 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, Adjusted EBITDA differently.
|
|
|
(b)
|
For the three and six
months ended on June 30, 2017, other non-recurring items reflect
the impact of a gain related to the change of our method of
accounting for indirect inventory and the interest expense for the
debt drawdown period prior to acquisition funding requirement. For
the three and six months ended on June 30, 2016, other
non-recurring items reflect the impact of an investment gain
related to the final distribution of the Reserve Yield Plus
Fund.
|
|
|
(c)
|
We define Adjusted
earnings per share to be diluted earnings per share excluding the
impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, and non-recurring items,
including the tax effect thereon. We believe Adjusted
earnings per share is a meaningful measure as it is commonly
utilized by management and investors in assessing ongoing financial
performance that provides improved comparability between periods
through the exclusion of certain items that management believes are
not indicative of core operating performance and which may obscure
underlying business results and trends. Other companies may
calculate Adjusted earnings per share 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. Adjusted free cash flow is
defined as free cash flow excluding the impact of cash payments for
restructuring and acquisition-related costs, settlements of
pre-existing accounts payable balances with acquired entities, and
interest payments upon the settlement of acquired company
debt. We believe free cash flow and Adjusted free cash flow
are meaningful measures as they are 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 and Adjusted free cash flow are
also key metrics used in our calculation of incentive
compensation. Other companies may calculate free cash flow
and Adjusted free cash flow differently.
|
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SOURCE American Axle & Manufacturing Holdings, Inc.