DETROIT, Aug. 3, 2018 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the second quarter 2018 and
updated AAM's full year 2018 financial outlook.
Second Quarter 2018 Results
- Sales of $1.90 billion
- Net income attributable to AAM of $151.1
million, or 7.9% of sales
- Diluted earnings per share of $1.30
- Adjusted earnings per share of $1.23
- Adjusted EBITDA of $347.9
million, or 18.3% of sales
- Net cash provided by operating activities of $222.5 million
- Adjusted free cash flow of $100.3
million
"In the second quarter of 2018, AAM achieved record quarterly
sales and gross profit," said AAM's
Chairman and Chief Executive Officer, David
C. Dauch. "AAM also further strengthened its financial
position while focusing on exciting new product launches, including
our e-AAM electric drive systems."
AAM's sales in the second quarter of 2018 increased to
$1.90 billion as compared to
$1.76 billion in the second quarter
of 2017. AAM's net sales in the first half of 2018 were
$3.76 billion as compared to
$2.81 billion in the first half of
2017.
AAM's net income in the second quarter of 2018 was $151.1 million, or $1.30 per share as compared to net income of
$66.2 million, or $0.59 per share in the second quarter of
2017. AAM's net income in the first half of 2018 was
$240.5 million, or $2.08 per share, as compared to net income of
$144.6 million, or $1.51 per share, in the first half of 2017.
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,
gain on sale of business, and non-recurring items, including the
tax effect thereon. Adjusted earnings per share in the second
quarter of 2018 were $1.23 compared
to $0.99 in the second quarter of
2017. Adjusted earnings per share in the first half of 2018 were
$2.21 as compared to $2.02 in the first half of 2017.
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,
gain on sale of business, and non-recurring items. In the
second quarter of 2018, Adjusted EBITDA was $347.9 million, or 18.3% of sales, as compared to
$325.8 million, or 18.5% of sales, in
the second quarter of 2017. In the first half of 2018, AAM's
Adjusted EBITDA was $664.9 million,
or 17.7% of sales, as compared to $509.4
million, or 18.1% of sales, in the first half of 2017.
AAM's net cash provided by operating activities for the second
quarter of 2018 was $222.5 million.
AAM's net cash provided by operating activities for the first half
of 2018 was $289.4 million.
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. 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 2018 was
$100.3 million. AAM's Adjusted free
cash flow for the first half of 2018 was $58.6 million.
AAM's Full Year 2018 Outlook
AAM is updating its full
year 2018 financial outlook:
- AAM is now targeting full year 2018 sales in the range of
$7.2 - $7.25
billion.
- We are increasing our 2018 sales target due to higher-trending
metal market customer passthroughs and additional customer
directed-buy content. The nature of these sales increases does not
have a significant impact on absolute dollar profitability, but
impacts the calculation of Adjusted EBITDA margin. As a result,
AAM's Adjusted EBITDA margin target for 2018 is in the range of
17.5% - 17.75%.
- AAM continues to target Adjusted free cash flow of
approximately 5% of sales in 2018.
Second Quarter 2018 Conference Call Information
A
conference call to review AAM's second quarter 2018 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 August 3, 2018 until 11:59
p.m. ET August 10, 2018 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 4958648.
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 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, sport utility vehicles (SUVs) and
crossover vehicles produced by GM and FCA); our ability to respond
to changes in technology, increased competition or pricing
pressures; 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 attract new customers and
programs for new products; risks inherent in our global operations
(including tariffs and the potential consequences thereof to us,
our suppliers, and our customers and their suppliers, adverse
changes in trade agreements, such as NAFTA, immigration
policies, political stability, taxes and other law changes,
potential disruptions of production and supply, and currency rate
fluctuations); a significant disruption in operations at one or
more of our key manufacturing facilities; global economic
conditions; 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 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; negative or unexpected tax consequences;
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; 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; our ability or our customers' and suppliers'
ability to comply with 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
Vice President, 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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,900.9
|
|
$
|
1,757.8
|
|
$
|
3,759.3
|
|
$
|
2,807.7
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,569.5
|
|
1,441.4
|
|
3,111.6
|
|
2,280.6
|
|
|
|
|
|
|
|
|
Gross
profit
|
331.4
|
|
316.4
|
|
647.7
|
|
527.1
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
95.0
|
|
105.6
|
|
192.3
|
|
186.8
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
24.8
|
|
24.8
|
|
49.7
|
|
26.4
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
36.8
|
|
51.7
|
|
55.1
|
|
67.7
|
|
|
|
|
|
|
|
|
Gain on sale of
business
|
(15.5)
|
|
—
|
|
(15.5)
|
|
—
|
|
|
|
|
|
|
|
|
Operating
income
|
190.3
|
|
134.3
|
|
366.1
|
|
246.2
|
|
|
|
|
|
|
|
|
Interest
expense
|
(54.4)
|
|
(56.9)
|
|
(107.6)
|
|
(82.4)
|
|
|
|
|
|
|
|
|
Investment
income
|
0.5
|
|
0.8
|
|
1.0
|
|
1.4
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(4.3)
|
|
(2.7)
|
|
(14.6)
|
|
(2.7)
|
Gain on settlement of
capital lease
|
15.6
|
|
—
|
|
15.6
|
|
—
|
Other income
(expense), net
|
5.6
|
|
(6.8)
|
|
0.2
|
|
(7.9)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
153.3
|
|
68.7
|
|
260.7
|
|
154.6
|
|
|
|
|
|
|
|
|
Income tax
expense
|
2.0
|
|
2.4
|
|
19.9
|
|
9.9
|
|
|
|
|
|
|
|
|
Net income
|
151.3
|
|
66.3
|
|
240.8
|
|
144.7
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling
interests
|
(0.2)
|
|
(0.1)
|
|
(0.3)
|
|
(0.1)
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
151.1
|
|
$
|
66.2
|
|
$
|
240.5
|
|
$
|
144.6
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
1.30
|
|
$
|
0.59
|
|
$
|
2.08
|
|
$
|
1.51
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
Net income
|
$
|
151.3
|
|
$
|
66.3
|
|
$
|
240.8
|
|
$
|
144.7
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Defined benefit plans,
net of tax(a)
|
12.2
|
|
0.9
|
|
13.5
|
|
0.6
|
Foreign currency translation
adjustments
|
(81.0)
|
|
24.6
|
|
(43.1)
|
|
36.5
|
Changes in cash flow hedges,
net of tax(b)
|
(7.9)
|
|
4.9
|
|
7.2
|
|
20.4
|
Other comprehensive
income (loss)
|
(76.7)
|
|
30.4
|
|
(22.4)
|
|
57.5
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
74.6
|
|
$
|
96.7
|
|
$
|
218.4
|
|
$
|
202.2
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.2)
|
|
(0.1)
|
|
(0.3)
|
|
(0.1)
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to AAM
|
$
|
74.4
|
|
$
|
96.6
|
|
$
|
218.1
|
|
$
|
202.1
|
|
|
|
|
(a)
|
Amounts are net of
tax of $(4.1) million and $(4.5) million for the three and six
months ended June 30, 2018, and $(0.4) million and $(0.2) million
for the three and six months ended June 30, 2017,
respectively.
|
(b)
|
Amounts are net of
tax of $(0.1) million and $(1.2) million for the three and six
months ended June 30, 2018, and $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,
2018
|
|
December 31,
2017
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
353.2
|
|
$
|
376.8
|
Accounts receivable,
net
|
1,253.6
|
|
1,035.9
|
Inventories,
net
|
426.4
|
|
392.0
|
Prepaid expenses and
other
|
121.8
|
|
140.3
|
Total current
assets
|
2,155.0
|
|
1,945.0
|
|
|
|
|
Property, plant and
equipment, net
|
2,459.3
|
|
2,402.9
|
Deferred income
taxes
|
30.6
|
|
37.1
|
Goodwill
|
1,631.7
|
|
1,654.3
|
Intangible assets,
net
|
1,159.8
|
|
1,212.5
|
GM postretirement
cost sharing asset
|
248.3
|
|
252.2
|
Other assets and
deferred charges
|
405.7
|
|
378.8
|
Total
assets
|
$
|
8,090.4
|
|
$
|
7,882.8
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
33.2
|
|
$
|
5.9
|
Accounts
payable
|
930.9
|
|
799.0
|
Accrued compensation
and benefits
|
161.5
|
|
200.0
|
Deferred
revenue
|
38.1
|
|
34.1
|
Accrued expenses and
other
|
168.0
|
|
177.4
|
Total current
liabilities
|
1,331.7
|
|
1,216.4
|
|
|
|
|
Long-term debt,
net
|
3,873.0
|
|
3,969.3
|
Deferred
revenue
|
81.6
|
|
78.8
|
Deferred income
taxes
|
143.0
|
|
101.7
|
Postretirement
benefits and other long-term liabilities
|
894.9
|
|
976.6
|
Total
liabilities
|
6,324.2
|
|
6,342.8
|
|
|
|
|
Total AAM
stockholders' equity
|
1,764.2
|
|
1,536.0
|
Noncontrolling
interests in subsidiaries
|
2.0
|
|
4.0
|
Total stockholders'
equity
|
1,766.2
|
|
1,540.0
|
Total liabilities
and stockholders' equity
|
$
|
8,090.4
|
|
$
|
7,882.8
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
151.3
|
|
$
|
66.3
|
|
$
|
240.8
|
|
$
|
144.7
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
130.2
|
|
124.6
|
|
258.0
|
|
180.8
|
Other
|
|
(43.5)
|
|
(40.0)
|
|
(193.9)
|
|
(112.3)
|
Net cash provided
by operating activities
|
|
222.5
|
|
150.9
|
|
289.4
|
|
213.2
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(142.2)
|
|
(103.7)
|
|
(273.0)
|
|
(138.6)
|
Proceeds from sale of
property, plant and equipment
|
|
0.5
|
|
0.7
|
|
0.9
|
|
1.5
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
(751.4)
|
|
(1.3)
|
|
(895.5)
|
Proceeds from sale of
business, net
|
|
47.1
|
|
—
|
|
47.1
|
|
—
|
Other
|
|
—
|
|
(6.1)
|
|
(0.5)
|
|
(2.5)
|
Net cash used in
investing activities
|
|
(94.6)
|
|
(860.5)
|
|
(226.8)
|
|
(1,035.1)
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(101.3)
|
|
(348.1)
|
|
(73.6)
|
|
829.9
|
Other
|
|
(1.4)
|
|
(0.8)
|
|
(5.8)
|
|
(6.0)
|
Net cash provided
by financing activities
|
|
(102.7)
|
|
(348.9)
|
|
(79.4)
|
|
823.9
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(10.2)
|
|
5.7
|
|
(4.3)
|
|
7.4
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
15.0
|
|
(1,052.8)
|
|
(21.1)
|
|
9.4
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
340.7
|
|
1,543.4
|
|
376.8
|
|
481.2
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
355.7
|
|
$
|
490.6
|
|
$
|
355.7
|
|
$
|
490.6
|
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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
|
$
|
151.3
|
|
$
|
66.3
|
|
$
|
240.8
|
|
$
|
144.7
|
Interest
expense
|
54.4
|
|
56.9
|
|
107.6
|
|
82.4
|
Income tax
expense
|
2.0
|
|
2.4
|
|
19.9
|
|
9.9
|
Depreciation and
amortization
|
130.2
|
|
124.6
|
|
258.0
|
|
180.8
|
EBITDA
|
337.9
|
|
250.2
|
|
626.3
|
|
417.8
|
Restructuring and
acquisition-related costs
|
36.8
|
|
51.7
|
|
55.1
|
|
67.7
|
Debt refinancing and
redemption costs
|
4.3
|
|
2.7
|
|
14.6
|
|
2.7
|
Gain on sale of
business
|
(15.5)
|
|
—
|
|
(15.5)
|
|
—
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
(15.6)
|
|
—
|
|
(15.6)
|
|
—
|
Acquisition-related
fair value inventory
adjustment
|
—
|
|
24.9
|
|
—
|
|
24.9
|
Other(b)
|
—
|
|
(3.7)
|
|
—
|
|
(3.7)
|
Adjusted
EBITDA
|
$
|
347.9
|
|
$
|
325.8
|
|
$
|
664.9
|
|
$
|
509.4
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share(c)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
1.30
|
|
$
|
0.59
|
|
$
|
2.08
|
|
$
|
1.51
|
Restructuring and
acquisition-related costs
|
0.32
|
|
0.46
|
|
0.48
|
|
0.71
|
Debt refinancing and
redemption costs
|
0.04
|
|
0.02
|
|
0.13
|
|
0.03
|
Gain on sale of
business
|
(0.14)
|
|
—
|
|
(0.14)
|
|
—
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
(0.14)
|
|
—
|
|
(0.14)
|
|
—
|
Acquisition-related
fair value inventory
adjustment
|
—
|
|
0.22
|
|
—
|
|
0.26
|
Acquisition related
tax adjustment
|
—
|
|
(0.04)
|
|
—
|
|
(0.13)
|
Adjustment to
liability for unrecognized tax
benefits
|
(0.17)
|
|
—
|
|
(0.17)
|
|
—
|
Other(b)
|
—
|
|
(0.02)
|
|
—
|
|
(0.01)
|
Tax effect of
adjustments
|
0.02
|
|
(0.24)
|
|
(0.03)
|
|
(0.35)
|
Adjusted earnings per
share
|
$
|
1.23
|
|
$
|
0.99
|
|
$
|
2.21
|
|
$
|
2.02
|
Adjusted earnings per share are based on weighted average
diluted shares outstanding of 116.0 million and 112.0 million
for the three months ended on June 30,
2018 and 2017, respectively, and 115.4 million and 95.6
million for the six months ended on June 30,
2018 and 2017, respectively.
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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
222.5
|
|
$
|
150.9
|
|
$
|
289.4
|
|
$
|
213.2
|
Capital expenditures
net of proceeds from the sale
of property, plant and equipment
|
(141.7)
|
|
(103.0)
|
|
(272.1)
|
|
(137.1)
|
Free cash
flow
|
80.8
|
|
47.9
|
|
17.3
|
|
76.1
|
Cash payments for
restructuring and acquisition-
related costs
|
19.5
|
|
56.7
|
|
41.3
|
|
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
|
$
|
100.3
|
|
$
|
141.6
|
|
$
|
58.6
|
|
$
|
202.1
|
|
|
Segment Financial
Information
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,120.2
|
|
$
|
1,021.5
|
|
$
|
2,190.8
|
|
$
|
2,020.8
|
Metal
Forming
|
397.1
|
|
369.3
|
|
794.1
|
|
519.3
|
Powertrain
|
288.3
|
|
283.6
|
|
580.2
|
|
283.6
|
Casting
|
243.2
|
|
225.6
|
|
482.2
|
|
225.6
|
Total
Sales
|
2,048.8
|
|
1,900.0
|
|
4,047.3
|
|
3,049.3
|
Intersegment
Sales
|
(147.9)
|
|
(142.2)
|
|
(288.0)
|
|
(241.6)
|
Net External
Sales
|
$
|
1,900.9
|
|
$
|
1,757.8
|
|
$
|
3,759.3
|
|
$
|
2,807.7
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
184.9
|
|
$
|
179.0
|
|
$
|
354.9
|
|
$
|
332.2
|
Metal
Forming
|
89.1
|
|
69.4
|
|
164.4
|
|
99.8
|
Powertrain
|
47.0
|
|
51.9
|
|
97.1
|
|
51.9
|
Casting
|
26.9
|
|
25.5
|
|
48.5
|
|
25.5
|
Total Segment
Adjusted EBITDA
|
$
|
347.9
|
|
$
|
325.8
|
|
$
|
664.9
|
|
$
|
509.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, gain on sale of business, 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 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.
|
|
|
(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, gain on sale of business, 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. 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. Other companies
may calculate free cash flow and Adjusted free cash flow
differently.
|
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SOURCE American Axle & Manufacturing Holdings, Inc.