DETROIT, Nov. 3, 2017 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the third quarter 2017 and
updated its full year 2017 financial outlook.
Third Quarter 2017 Results
- Sales of $1.72 billion
- Net income attributable to AAM of $86.2
million, or 5.0% of sales
- Diluted earnings per share of $0.75
- Adjusted earnings per share of $0.86
- Adjusted EBITDA of $297.7
million, or 17.3% of sales
- Net cash provided by operating activities of $207.5 million
- Adjusted free cash flow of $87.9
million
"AAM's third quarter performance was highlighted by continued
sales growth, business diversification and cash flow generation as
a result of our recent strategic actions and the realization of our
new and incremental business backlog," said AAM's Chairman &
Chief Executive Officer, David C.
Dauch.
AAM's third 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 third quarter of 2017 increased to
$1.72 billion as compared to
$1.01 billion in the third quarter of
2016. AAM's net sales in the first nine months of 2017
increased to $4.53 billion as
compared to $3.00 billion in the
first nine months of 2016. Non-GM sales in the third quarter
of 2017 were a record $1.01 billion
as compared to $307.7 million in the
third quarter of 2016.
AAM's net income in the third quarter of 2017 was $86.2 million, or $0.75 per share as compared to net income of
$61.7 million, or $0.78 per share in the third quarter of
2016. AAM's net income in the first nine months of 2017 was
$230.8 million, or $2.27 per share as compared to $193.8 million, or $2.47 per share in the first nine months 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 third quarter of 2017 were
$0.86 compared to $0.83 in the third quarter of 2016.
Adjusted earnings per share in the first nine months of 2017 were
$2.89 as compared to $2.51 in the first nine months 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 third quarter of 2017,
Adjusted EBITDA was $297.7 million,
or 17.3% of sales, as compared to $156.7
million, or 15.6% of sales, in the third quarter of
2016. In the first nine months of 2017, AAM's Adjusted EBITDA
was $807.0 million, or 17.8% of
sales, as compared to $471.3 million,
or 15.7% of sales, in the first nine months of 2016.
AAM's net cash provided by operating activities for the third
quarter of 2017 was $207.5 million as
compared to $107.5 million in the
third quarter of 2016. AAM's net cash provided by operating
activities for the first nine months of 2017 was $420.7 million as compared to $291.0 million for the first nine months 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 third
quarter of 2017 was $87.9 million as
compared to $54.6 million for the
third quarter of 2016. AAM's Adjusted free cash flow for the
first nine months of 2017 was $290.0
million as compared to $135.8
million for the first nine months of 2016.
AAM Updates Full Year 2017 Outlook
AAM has updated its full year 2017 financial outlook:
- AAM has increased its sales target to a range of $6.2 billion to $6.25 billion for the full year
2017, which excludes MPG's pre-acquisition 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 will be approximately
17 million light vehicle units in 2017.
- AAM is targeting Adjusted EBITDA of approximately $1.1 billion 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.
AAM to Redeem its 5.125% Notes
AAM has issued a notice of redemption for the $200 million aggregate principal amount of its
outstanding 5.125% senior unsecured notes due 2019 (5.125% Notes)
at par, plus accrued and unpaid interest to the redemption date of
December 4, 2017. AAM will use
cash on hand to settle the redemption of the 5.125% Notes.
"Our recent strong free cash flow generation has allowed AAM to
accelerate our debt paydown plan. AAM will continue to
maximize shareholder value through balanced capital allocation
priorities focused on profitably growing the business while
reducing our debt leverage," said Dauch.
Third Quarter 2017 Conference Call Information
A conference call to review AAM's third quarter 2017 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 November 3, 2017 until 11:59 p.m. ET November 10,
2017 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
87956026.
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 accounting
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.
Forward-Looking 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 or more 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
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,724.4
|
|
|
$
|
1,006.9
|
|
|
$
|
4,532.1
|
|
|
$
|
3,001.5
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,426.7
|
|
|
825.7
|
|
|
3,707.3
|
|
|
2,454.9
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
297.7
|
|
|
181.2
|
|
|
824.8
|
|
|
546.6
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
102.3
|
|
|
78.6
|
|
|
289.1
|
|
|
231.8
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
24.4
|
|
|
1.3
|
|
|
50.8
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
22.8
|
|
|
—
|
|
|
90.5
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Operating
income
|
148.2
|
|
|
101.3
|
|
|
394.4
|
|
|
311.2
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(57.5)
|
|
|
(23.2)
|
|
|
(139.9)
|
|
|
(70.2)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.8
|
|
|
0.5
|
|
|
2.2
|
|
|
2.6
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and redemption costs
|
—
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
Other income
(expense), net
|
0.5
|
|
|
0.9
|
|
|
(7.4)
|
|
|
4.0
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
92.0
|
|
|
79.5
|
|
|
246.6
|
|
|
247.6
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
5.7
|
|
|
17.8
|
|
|
15.6
|
|
|
53.8
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
86.3
|
|
|
$
|
61.7
|
|
|
$
|
231.0
|
|
|
$
|
193.8
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
86.2
|
|
|
$
|
61.7
|
|
|
$
|
230.8
|
|
|
$
|
193.8
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.75
|
|
|
$
|
0.78
|
|
|
$
|
2.27
|
|
|
$
|
2.47
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(Unaudited)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
Net income
|
$
|
86.3
|
|
|
$
|
61.7
|
|
|
$
|
231.0
|
|
|
$
|
193.8
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Defined benefit plans,
net of tax (a)
|
3.1
|
|
|
0.6
|
|
|
3.7
|
|
|
5.3
|
|
Foreign currency
translation adjustments
|
42.8
|
|
|
(0.8)
|
|
|
79.3
|
|
|
15.0
|
|
Changes in cash flow
hedges, net of tax (b)
|
1.1
|
|
|
(4.1)
|
|
|
21.5
|
|
|
(6.4)
|
|
Other comprehensive
income (loss)
|
47.0
|
|
|
(4.3)
|
|
|
104.5
|
|
|
13.9
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
133.3
|
|
|
$
|
57.4
|
|
|
$
|
335.5
|
|
|
$
|
207.7
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to AAM
|
$
|
133.2
|
|
|
$
|
57.4
|
|
|
$
|
335.3
|
|
|
$
|
207.7
|
|
|
_______________________________________
|
(a)
|
Amounts are net of
tax of $(1.0) million and $(1.2) million for the three and nine
months ended September 30, 2017, and $(0.1) million and $(2.8)
million for the three and nine months ended September 30, 2016,
respectively.
|
(b)
|
Amounts are net of
tax of $0.7 million for the nine months ended September 30,
2017.
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
September
30,
2017
|
|
December 31,
2016
|
|
(in millions)
|
ASSETS
|
|
|
|
Current assets
|
|
Cash and cash
equivalents
|
$
|
549.6
|
|
|
$
|
481.2
|
|
Accounts receivable,
net
|
1,122.0
|
|
|
560.0
|
|
Inventories,
net
|
396.6
|
|
|
182.3
|
|
Prepaid expenses and
other
|
144.5
|
|
|
75.8
|
|
Total current assets
|
2,212.7
|
|
|
1,299.3
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,302.7
|
|
|
1,093.7
|
|
Deferred income
taxes
|
39.9
|
|
|
369.4
|
|
Goodwill
|
1,654.6
|
|
|
154.0
|
|
Intangible assets,
net
|
1,236.6
|
|
|
28.5
|
|
GM postretirement
cost sharing asset
|
232.2
|
|
|
236.1
|
|
Other assets and
deferred charges
|
379.6
|
|
|
242.9
|
|
Total assets
|
$
|
8,058.3
|
|
|
$
|
3,423.9
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
6.8
|
|
|
$
|
3.3
|
|
Accounts
payable
|
856.4
|
|
|
382.3
|
|
Accrued compensation
and benefits
|
200.0
|
|
|
139.3
|
|
Deferred
revenue
|
28.5
|
|
|
24.6
|
|
Accrued expenses and
other
|
193.3
|
|
|
102.0
|
|
Total current liabilities
|
1,285.0
|
|
|
651.5
|
|
|
|
|
|
Long-term debt,
net
|
4,169.3
|
|
|
1,400.9
|
|
Deferred
revenue
|
79.7
|
|
|
70.8
|
|
Deferred income
taxes
|
233.5
|
|
|
15.0
|
|
Postretirement
benefits and other long-term liabilities
|
854.2
|
|
|
779.9
|
|
Total liabilities
|
6,621.7
|
|
|
2,918.1
|
|
|
|
|
|
Total AAM
stockholders' equity
|
1,432.8
|
|
|
505.8
|
|
Noncontrolling
interests in subsidiaries
|
3.8
|
|
|
—
|
|
Total stockholders'
equity
|
1,436.6
|
|
|
505.8
|
|
Total liabilities and stockholders'
equity
|
$
|
8,058.3
|
|
|
$
|
3,423.9
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(in millions)
|
Operating Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
86.3
|
|
|
$
|
61.7
|
|
|
$
|
231.0
|
|
|
$
|
193.8
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
122.6
|
|
|
49.9
|
|
|
303.4
|
|
|
150.4
|
|
Other
|
|
(1.4)
|
|
|
(4.1)
|
|
|
(113.7)
|
|
|
(53.2)
|
|
Net cash provided by operating
activities
|
|
207.5
|
|
|
107.5
|
|
|
420.7
|
|
|
291.0
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(140.1)
|
|
|
(53.0)
|
|
|
(278.7)
|
|
|
(158.7)
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.2
|
|
|
0.1
|
|
|
1.7
|
|
|
0.7
|
|
Proceeds from
government grants
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
—
|
|
|
(895.5)
|
|
|
—
|
|
Other
|
|
(4.2)
|
|
|
(5.6)
|
|
|
(6.7)
|
|
|
(4.6)
|
|
Net cash used in investing
activities
|
|
(144.1)
|
|
|
(58.5)
|
|
|
(1,179.2)
|
|
|
(159.8)
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(7.2)
|
|
|
(3.2)
|
|
|
822.7
|
|
|
22.6
|
|
Purchase of treasury
stock
|
|
(0.1)
|
|
|
(0.3)
|
|
|
(7.0)
|
|
|
(5.3)
|
|
Employee stock option
exercises
|
|
—
|
|
|
0.2
|
|
|
0.9
|
|
|
0.3
|
|
Net cash provided by (used in) financing
activities
|
|
(7.3)
|
|
|
(3.3)
|
|
|
816.6
|
|
|
17.6
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
2.9
|
|
|
(0.2)
|
|
|
10.3
|
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
59.0
|
|
|
45.5
|
|
|
68.4
|
|
|
151.4
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
490.6
|
|
|
388.4
|
|
|
481.2
|
|
|
282.5
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period
|
|
$
|
549.6
|
|
|
$
|
433.9
|
|
|
$
|
549.6
|
|
|
$
|
433.9
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
SUPPLEMENTAL
DATA
|
(Unaudited)
|
|
The supplemental data
presented below is a reconciliation of certain financial measures
which is intended to facilitate analysis of American Axle &
Manufacturing Holdings, Inc. business and operating
performance.
|
|
Earnings before
interest expense, income taxes and depreciation and amortization
(EBITDA) and Adjusted EBITDA(a)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in millions)
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
86.2
|
|
|
$
|
61.7
|
|
|
$
|
230.8
|
|
|
$
|
193.8
|
|
Interest
expense
|
57.5
|
|
|
23.2
|
|
|
139.9
|
|
|
70.2
|
|
Income tax
expense
|
5.7
|
|
|
17.8
|
|
|
15.6
|
|
|
53.8
|
|
Depreciation and
amortization
|
122.6
|
|
|
49.9
|
|
|
303.4
|
|
|
150.4
|
|
EBITDA
|
$
|
272.0
|
|
|
$
|
152.6
|
|
|
$
|
689.7
|
|
|
$
|
468.2
|
|
Restructuring and
acquisition-related costs
|
22.8
|
|
|
4.1
|
|
|
90.5
|
|
|
4.1
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Acquisition-related
fair value inventory adjustment
|
—
|
|
|
—
|
|
|
24.9
|
|
|
—
|
|
Other
(b)
|
2.9
|
|
|
—
|
|
|
(0.8)
|
|
|
(1.0)
|
|
Adjusted EBITDA
|
$
|
297.7
|
|
|
$
|
156.7
|
|
|
$
|
807.0
|
|
|
$
|
471.3
|
|
|
|
|
|
|
Adjusted earnings
per share(c)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.75
|
|
|
$
|
0.78
|
|
|
$
|
2.27
|
|
|
$
|
2.47
|
|
Restructuring and
acquisition-related costs
|
0.20
|
|
|
0.05
|
|
|
0.89
|
|
|
0.05
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Acquisition-related
fair value inventory adjustment
|
—
|
|
|
—
|
|
|
0.24
|
|
|
—
|
|
Acquisition-related
tax adjustments
|
(0.04)
|
|
|
—
|
|
|
(0.12)
|
|
|
—
|
|
Other
(b)
|
0.03
|
|
|
—
|
|
|
(0.01)
|
|
|
(0.01)
|
|
Tax effect of
adjustments
|
(0.08)
|
|
|
—
|
|
|
(0.41)
|
|
|
—
|
|
Adjusted earnings per share
|
$
|
0.86
|
|
|
$
|
0.83
|
|
|
$
|
2.89
|
|
|
$
|
2.51
|
|
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
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
207.5
|
|
|
$
|
107.5
|
|
|
$
|
420.7
|
|
|
$
|
291.0
|
|
Capital expenditures
net of proceeds from the sale of property, plant and equipment and
from government grants
|
(139.9)
|
|
|
(52.9)
|
|
|
(277.0)
|
|
|
(155.2)
|
|
Free cash flow
|
67.6
|
|
|
54.6
|
|
|
143.7
|
|
|
135.8
|
|
Cash payments for
restructuring and acquisition-related costs
|
20.3
|
|
|
—
|
|
|
86.5
|
|
|
—
|
|
Acquisition-related
settlement of pre-existing accounts payable balances with acquired
entities
|
—
|
|
|
—
|
|
|
35.2
|
|
|
—
|
|
Interest payments
upon the settlement of acquired company debt
|
—
|
|
|
—
|
|
|
24.6
|
|
|
—
|
|
Adjusted free cash flow
|
$
|
87.9
|
|
|
$
|
54.6
|
|
|
$
|
290.0
|
|
|
$
|
135.8
|
|
|
|
|
|
|
Segment Financial
Information
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,007.9
|
|
|
$
|
956.1
|
|
|
$
|
3,028.7
|
|
|
$
|
2,840.4
|
|
Metal
Forming
|
368.2
|
|
|
137.2
|
|
|
887.5
|
|
|
414.4
|
|
Powertrain
|
260.9
|
|
|
—
|
|
|
544.5
|
|
|
—
|
|
Casting
|
226.6
|
|
|
—
|
|
|
452.2
|
|
|
—
|
|
Total
Sales
|
1,863.6
|
|
|
1,093.3
|
|
|
4,912.9
|
|
|
3,254.8
|
|
Intersegment
Sales
|
(139.2)
|
|
|
(86.4)
|
|
|
(380.8)
|
|
|
(253.3)
|
|
Net External
Sales
|
$
|
1,724.4
|
|
|
$
|
1,006.9
|
|
|
$
|
4,532.1
|
|
|
$
|
3,001.5
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
181.4
|
|
|
$
|
134.4
|
|
|
$
|
513.5
|
|
|
$
|
391.9
|
|
Metal
Forming
|
70.7
|
|
|
22.3
|
|
|
170.5
|
|
|
79.4
|
|
Powertrain
|
36.8
|
|
|
—
|
|
|
88.7
|
|
|
—
|
|
Casting
|
8.8
|
|
|
—
|
|
|
34.3
|
|
|
—
|
|
Total Segment
Adjusted EBITDA
|
$
|
297.7
|
|
|
$
|
156.7
|
|
|
$
|
807.0
|
|
|
$
|
471.3
|
|
|
________________
|
(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 and Adjusted EBITDA differently.
|
|
|
(b)
|
For the three months
ended on September 30, 2017, other non-recurring items reflect the
impact of a non-cash pension settlement charge related to one of
our foreign entities. For the nine months ended on September 30,
2017, other non-recurring items also 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 nine
months ended on September 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.
|
View original
content:http://www.prnewswire.com/news-releases/aam-reports-third-quarter-2017-financial-results-300549234.html
SOURCE American Axle & Manufacturing Holdings, Inc.