DETROIT, Feb. 15, 2019
/PRNewswire/ -- American Axle & Manufacturing Holdings,
Inc. (AAM), (NYSE: AXL) today reported its financial results for
the fourth quarter and full year 2018 and confirmed its full year
2019 financial outlook.
Fourth Quarter 2018 Results
- Sales of $1.69 billion
- Net loss attributable to AAM of $361.8
million, or (21.4)% of sales, which includes the impact of a
pre-tax goodwill impairment of $485.5
million
- Adjusted EBITDA of $244.0
million, or 14.4% of sales
- Diluted loss per share of $3.24;
Adjusted earnings per share of $0.45
- Net cash provided by operating activities of $258.3 million; Adjusted free cash flow of
$142.4 million
Full Year 2018 Results
- Sales of $7.27 billion
- Net loss attributable to AAM of $57.5
million, or (0.8)% of sales
- Adjusted EBITDA of $1.18 billion,
or 16.3% of sales
- Diluted loss per share of $0.51;
Adjusted earnings per share of $3.28
- Net cash provided by operating activities of $771.5 million; Adjusted free cash flow of
$322.3 million
"AAM's full year 2018 financial results reflect record sales,
gross profit and operating cash flow, despite some launch and
operating related challenges during the second half of the
year. We continued to fund organic growth, invest in advanced
technologies and reduce our debt throughout the year," said AAM's
Chairman and Chief Executive Officer, David
C. Dauch. "As we look towards 2019, we expect to
profitably grow, diversify our business and continue our trend of
delivering strong free cash flow metrics."
AAM's sales in the fourth quarter of 2018 were $1.69 billion as compared to $1.73 billion in the fourth quarter of 2017.
AAM's net sales for full year 2018 were $7.27 billion as compared to $6.27 billion for full year 2017.
AAM's net loss in the fourth quarter of 2018 was $361.8 million, or a loss of $3.24 per share, as compared to net income of
$106.3 million, or $0.93 per share in the fourth quarter of
2017. AAM's net loss for full year 2018 was $57.5 million, or $0.51 per share, as compared to net income of
$337.1 million, or $3.21 per share, for full year 2017.
AAM's results in the fourth quarter and full year 2018 reflect
the impact of a non-cash goodwill impairment of $485.5 million related to our Casting and
Powertrain segments.
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, goodwill impairments and non-recurring
items, including the tax effect thereon. Adjusted earnings
per share in the fourth quarter of 2018 were $0.45 compared to $0.89 in the fourth quarter of 2017. Adjusted
earnings per share for full year 2018 were $3.28 as compared to $3.75 for full year 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, goodwill impairments and non-recurring
items. In the fourth quarter of 2018, Adjusted EBITDA was
$244.0 million, or 14.4% of sales, as
compared to $295.7 million, or 17.1%
of sales, in the fourth quarter of 2017. For full year 2018, AAM's
Adjusted EBITDA was $1.18 billion, or
16.3% of sales, as compared to $1.10
billion, or 17.6% of sales, in 2017.
AAM's net cash provided by operating activities for the fourth
quarter of 2018 was $258.3 million as
compared to $226.3 million for the
fourth quarter of 2017. AAM's net cash provided by operating
activities for full year 2018 was $771.5
million as compared to $647.0
million for full year 2017.
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 fourth quarter of 2018 was
$142.4 million as compared to
$50.9 million for the fourth quarter
of 2017. AAM's Adjusted free cash flow for full year 2018 was
$322.3 million as compared to
$340.9 million for full year
2017.
AAM's Full Year 2019 Outlook
AAM is confirming its
full year 2019 financial outlook:
- AAM is targeting sales in the range of $7.3 to $7.4
billion in 2019.
- AAM is targeting Adjusted EBITDA in the range of $1.20 to $1.25
billion in 2019.
- AAM is targeting Adjusted free cash flow in the range of
$350 to $400
million in 2019.
Fourth Quarter 2018 Conference Call Information
A
conference call to review AAM's fourth quarter and full year 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 3:00 p.m.
ET on February 15, 2019 until
11:59 p.m. ET February 21, 2019 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 3389085.
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 forward-looking financial measures
calculated and presented in accordance with GAAP has been
provided. The amounts in these reconciliations are
based on our current estimates and actual results may differ
materially from these forward-looking estimates for many reasons,
including potential event driven transactional and other non-core
operating items and their related effects in any future period, the
magnitude of which 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 (NYSE:AXL) delivers POWER that
moves the world. As a leading global tier 1 automotive supplier,
AAM designs, engineers and manufactures driveline, metal forming
and casting technologies that are making the next generation of
vehicles smarter, lighter, safer and more efficient.
Headquartered in Detroit, AAM
has over 25,000 associates operating at nearly 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 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; 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; our ability or our customers' and suppliers' ability to
successfully launch new product programs on a timely basis;
lower-than-anticipated market acceptance of new or existing
products; our ability to attract new customers and programs for new
products; an impairment of our goodwill, other intangible assets,
or long-lived assets if our business or market conditions indicate
that the carrying values of those assets exceed their fair values;
reduced demand for our customers' products (particularly light
trucks and sport utility vehicles (SUVs) produced by GM and FCA);
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 or USMCA, 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; 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; 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; supply shortages or
price increases in raw material and/or freight, utilities or other
operating supplies for us or our customers as a result of natural
disasters or otherwise; our ability to successfully integrate the
business and information systems of MPG and to realize the
anticipated benefits of the merger; negative or unexpected tax
consequences; our ability to achieve the level of cost reductions
required to sustain global cost competitiveness; 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 OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,694.1
|
|
|
$
|
1,733.9
|
|
|
$
|
7,270.4
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,468.8
|
|
|
1,439.6
|
|
|
6,130.0
|
|
|
5,146.9
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
225.3
|
|
|
294.3
|
|
|
1,140.4
|
|
|
1,119.1
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
97.1
|
|
|
101.0
|
|
|
385.7
|
|
|
390.1
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
24.9
|
|
|
24.5
|
|
|
99.4
|
|
|
75.3
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
485.5
|
|
|
—
|
|
|
485.5
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
12.1
|
|
|
20.2
|
|
|
78.9
|
|
|
110.7
|
|
|
|
|
|
|
|
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
(15.5)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(394.3)
|
|
|
148.6
|
|
|
106.4
|
|
|
543.0
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(53.8)
|
|
|
(55.7)
|
|
|
(216.3)
|
|
|
(195.6)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.4
|
|
|
0.7
|
|
|
2.0
|
|
|
2.9
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(4.8)
|
|
|
(0.8)
|
|
|
(19.4)
|
|
|
(3.5)
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
15.6
|
|
|
—
|
|
Other, net
|
2.4
|
|
|
0.6
|
|
|
(2.2)
|
|
|
(6.8)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(450.1)
|
|
|
93.4
|
|
|
(113.9)
|
|
|
340.0
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(88.5)
|
|
|
(13.1)
|
|
|
(57.1)
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(361.6)
|
|
|
106.5
|
|
|
(56.8)
|
|
|
337.5
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.7)
|
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AAM
|
$
|
(361.8)
|
|
|
$
|
106.3
|
|
|
$
|
(57.5)
|
|
|
$
|
337.1
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(3.24)
|
|
|
$
|
0.93
|
|
|
$
|
(0.51)
|
|
|
$
|
3.21
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
Net income
(loss)
|
$
|
(361.6)
|
|
|
$
|
106.5
|
|
|
$
|
(56.8)
|
|
|
$
|
337.5
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Defined
benefit plans, net of tax
|
23.6
|
|
|
(12.2)
|
|
|
38.1
|
|
|
(8.5)
|
|
Foreign currency translation adjustments
|
(7.5)
|
|
|
9.0
|
|
|
(62.5)
|
|
|
88.3
|
|
Changes in cash flow
hedges, net of tax
|
(14.1)
|
|
|
(4.4)
|
|
|
5.5
|
|
|
17.1
|
|
Other comprehensive
income (loss)
|
2.0
|
|
|
(7.6)
|
|
|
(18.9)
|
|
|
96.9
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
(359.6)
|
|
|
98.9
|
|
|
(75.7)
|
|
|
434.4
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.7)
|
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to AAM
|
$
|
(359.8)
|
|
|
$
|
98.7
|
|
|
$
|
(76.4)
|
|
|
$
|
434.0
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and
cash equivalents
|
$
|
476.4
|
|
|
$
|
376.8
|
|
Accounts
receivable, net
|
966.5
|
|
|
1,035.9
|
|
Inventories, net
|
459.7
|
|
|
392.0
|
|
Prepaid
expenses and other
|
127.2
|
|
|
140.3
|
|
Total current
assets
|
2,029.8
|
|
|
1,945.0
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,514.4
|
|
|
2,402.9
|
|
Deferred income
taxes
|
45.5
|
|
|
37.1
|
|
Goodwill
|
1,141.8
|
|
|
1,654.3
|
|
Other intangible
assets, net
|
1,111.1
|
|
|
1,212.5
|
|
GM postretirement
cost sharing asset
|
219.4
|
|
|
252.2
|
|
Other assets and
deferred charges
|
448.7
|
|
|
378.8
|
|
Total
assets
|
$
|
7,510.7
|
|
|
$
|
7,882.8
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current
portion of long-term debt
|
$
|
121.6
|
|
|
$
|
5.9
|
|
Accounts
payable
|
840.2
|
|
|
799.0
|
|
Accrued
compensation and benefits
|
179.0
|
|
|
200.0
|
|
Deferred
revenue
|
44.3
|
|
|
34.1
|
|
Accrued
expenses and other
|
171.7
|
|
|
177.4
|
|
Total current
liabilities
|
1,356.8
|
|
|
1,216.4
|
|
|
|
|
|
Long-term debt,
net
|
3,686.8
|
|
|
3,969.3
|
|
Deferred
revenue
|
77.6
|
|
|
78.8
|
|
Deferred income
taxes
|
92.6
|
|
|
101.7
|
|
Postretirement
benefits and other long-term liabilities
|
810.6
|
|
|
976.6
|
|
Total
liabilities
|
6,024.4
|
|
|
6,342.8
|
|
|
|
|
|
Total AAM
stockholders' equity
|
1,483.9
|
|
|
1,536.0
|
|
Noncontrolling interests in
subsidiaries
|
2.4
|
|
|
4.0
|
|
Total stockholders'
equity
|
1,486.3
|
|
|
1,540.0
|
|
Total liabilities
and stockholders' equity
|
$
|
7,510.7
|
|
|
$
|
7,882.8
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(361.6)
|
|
|
$
|
106.5
|
|
|
$
|
(56.8)
|
|
|
$
|
337.5
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
137.9
|
|
|
125.2
|
|
|
528.8
|
|
|
428.5
|
|
Impairment of
goodwill
|
|
485.5
|
|
|
—
|
|
|
485.5
|
|
|
—
|
|
Other
|
|
(3.5)
|
|
|
(5.4)
|
|
|
(186.0)
|
|
|
(119.0)
|
|
Net cash provided
by operating activities
|
|
258.3
|
|
|
226.3
|
|
|
771.5
|
|
|
647.0
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(132.9)
|
|
|
(199.0)
|
|
|
(524.7)
|
|
|
(477.7)
|
|
Proceeds from sale of
property, plant and equipment
|
|
1.7
|
|
|
0.8
|
|
|
4.9
|
|
|
2.5
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
—
|
|
|
(1.3)
|
|
|
(895.5)
|
|
Proceeds from sale of
business, net
|
|
—
|
|
|
—
|
|
|
47.1
|
|
|
5.9
|
|
Other
|
|
(3.7)
|
|
|
(0.7)
|
|
|
(4.2)
|
|
|
(13.3)
|
|
Net cash used in
investing activities
|
|
(134.9)
|
|
|
(198.9)
|
|
|
(478.2)
|
|
|
(1,378.1)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(84.9)
|
|
|
(201.0)
|
|
|
(178.5)
|
|
|
621.7
|
|
Other
|
|
(0.1)
|
|
|
—
|
|
|
(6.0)
|
|
|
(6.1)
|
|
Net cash provided
by (used in) financing activities
|
|
(85.0)
|
|
|
(201.0)
|
|
|
(184.5)
|
|
|
615.6
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(1.4)
|
|
|
0.8
|
|
|
(6.7)
|
|
|
11.1
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
37.0
|
|
|
(172.8)
|
|
|
102.1
|
|
|
(104.4)
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
441.9
|
|
|
549.6
|
|
|
376.8
|
|
|
481.2
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of year
|
|
$
|
478.9
|
|
|
$
|
376.8
|
|
|
$
|
478.9
|
|
|
$
|
376.8
|
|
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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(361.6)
|
|
|
$
|
106.5
|
|
|
$
|
(56.8)
|
|
|
$
|
337.5
|
|
Interest
expense
|
53.8
|
|
|
55.7
|
|
|
216.3
|
|
|
195.6
|
|
Income tax expense
(benefit)
|
(88.5)
|
|
|
(13.1)
|
|
|
(57.1)
|
|
|
2.5
|
|
Depreciation and
amortization
|
137.9
|
|
|
125.2
|
|
|
528.8
|
|
|
428.5
|
|
EBITDA
|
(258.4)
|
|
|
274.3
|
|
|
631.2
|
|
|
964.1
|
|
Restructuring and
acquisition-related costs
|
12.1
|
|
|
20.2
|
|
|
78.9
|
|
|
110.7
|
|
Debt refinancing and
redemption costs
|
4.8
|
|
|
0.8
|
|
|
19.4
|
|
|
3.5
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
(15.5)
|
|
|
—
|
|
Goodwill
impairment
|
485.5
|
|
|
—
|
|
|
485.5
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
(15.6)
|
|
|
—
|
|
Acquisition-related
fair value inventory
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
24.9
|
|
Other(b)
|
—
|
|
|
0.4
|
|
|
—
|
|
|
(0.5)
|
|
Adjusted
EBITDA
|
$
|
244.0
|
|
|
$
|
295.7
|
|
|
$
|
1,183.9
|
|
|
$
|
1,102.7
|
|
|
|
Adjusted earnings
per share(c)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Diluted earnings
(loss) per share
|
$
|
(3.24)
|
|
|
$
|
0.93
|
|
|
$
|
(0.51)
|
|
|
$
|
3.21
|
|
Restructuring and
acquisition-related costs
|
0.11
|
|
|
0.18
|
|
|
0.71
|
|
|
1.05
|
|
Debt refinancing and
redemption costs
|
0.04
|
|
|
0.01
|
|
|
0.17
|
|
|
0.03
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
(0.14)
|
|
|
—
|
|
Goodwill
impairment
|
4.35
|
|
|
—
|
|
|
4.35
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
(0.14)
|
|
|
—
|
|
Acquisition-related
fair value inventory
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
0.24
|
|
Acquisition related
tax adjustments
|
—
|
|
|
0.01
|
|
|
—
|
|
|
(0.15)
|
|
Adjustments related
to the Tax Cuts and
Jobs Act of 2017
|
—
|
|
|
(0.17)
|
|
|
—
|
|
|
(0.19)
|
|
Adjustments to
liability for unrecognized
tax benefits
|
—
|
|
|
—
|
|
|
(0.18)
|
|
|
—
|
|
Other(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
Tax effect of
adjustments
|
(0.79)
|
|
|
(0.07)
|
|
|
(0.85)
|
|
|
(0.46)
|
|
Adjustment for
anti-dilutive effect
|
(0.02)
|
|
|
—
|
|
|
(0.13)
|
|
|
—
|
|
Adjusted earnings
per share
|
$
|
0.45
|
|
|
$
|
0.89
|
|
|
$
|
3.28
|
|
|
$
|
3.75
|
|
Adjusted earnings per share are based on weighted average
diluted shares outstanding of 116.2 million and 114.4 million for
the three months ended on December 31,
2018 and 2017, respectively, and 115.8 million and 105.1
million for the twelve months ended on December 31, 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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
258.3
|
|
|
$
|
226.3
|
|
|
$
|
771.5
|
|
|
$
|
647.0
|
|
Capital expenditures
net of proceeds from the sale
of property, plant and equipment
|
(131.2)
|
|
|
(198.2)
|
|
|
(519.8)
|
|
|
(475.2)
|
|
Free cash
flow
|
127.1
|
|
|
28.1
|
|
|
251.7
|
|
|
171.8
|
|
Cash payments for
restructuring and acquisition-
related costs
|
15.3
|
|
|
22.8
|
|
|
70.6
|
|
|
109.3
|
|
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
|
$
|
142.4
|
|
|
$
|
50.9
|
|
|
$
|
322.3
|
|
|
$
|
340.9
|
|
|
|
Segment Financial
Information
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
996.0
|
|
|
$
|
1,012.1
|
|
|
$
|
4,254.8
|
|
|
$
|
4,040.8
|
|
Metal
Forming
|
339.1
|
|
|
355.1
|
|
|
1,515.4
|
|
|
1,242.6
|
|
Powertrain
|
262.9
|
|
|
272.0
|
|
|
1,128.5
|
|
|
816.5
|
|
Casting
|
218.5
|
|
|
224.2
|
|
|
919.8
|
|
|
676.4
|
|
Total
Sales
|
1,816.5
|
|
|
1,863.4
|
|
|
7,818.5
|
|
|
6,776.3
|
|
Intersegment
Sales
|
(122.4)
|
|
|
(129.5)
|
|
|
(548.1)
|
|
|
(510.3)
|
|
Net External
Sales
|
$
|
1,694.1
|
|
|
$
|
1,733.9
|
|
|
$
|
7,270.4
|
|
|
$
|
6,266.0
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
146.5
|
|
|
$
|
178.8
|
|
|
$
|
660.7
|
|
|
$
|
692.3
|
|
Metal
Forming
|
54.6
|
|
|
61.8
|
|
|
285.9
|
|
|
232.3
|
|
Powertrain
|
32.3
|
|
|
42.4
|
|
|
163.7
|
|
|
131.1
|
|
Casting
|
10.6
|
|
|
12.7
|
|
|
73.6
|
|
|
47.0
|
|
Total Segment
Adjusted EBITDA
|
$
|
244.0
|
|
|
$
|
295.7
|
|
|
$
|
1,183.9
|
|
|
$
|
1,102.7
|
|
Full Year 2019
Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net income
|
$
|
285
|
|
|
$
|
325
|
|
Interest
expense
|
225
|
|
|
225
|
|
Income tax
expense
|
70
|
|
|
80
|
|
Depreciation and
amortization
|
570
|
|
|
570
|
|
Full year 2019
targeted EBITDA
|
1,150
|
|
|
1,200
|
|
Restructuring and
acquisition-related costs
|
50
|
|
|
50
|
|
Full year 2019
targeted Adjusted EBITDA
|
$
|
1,200
|
|
|
$
|
1,250
|
|
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
810
|
|
|
$
|
860
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(515)
|
|
|
(515)
|
|
Full year 2019
targeted Free Cash Flow
|
295
|
|
|
345
|
|
Cash payments for
restructuring and acquisition-related costs
|
55
|
|
|
55
|
|
Full year 2019
targeted Adjusted Free Cash Flow
|
$
|
350
|
|
|
$
|
400
|
|
________________
|
|
|
(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 a business,
goodwill impairments 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 December 31, 2017, other non-recurring items reflect the
impact of a non-cash pension settlement charge related to one of
our foreign entities. For the twelve months ended on December 31,
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.
|
|
|
(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 a business,
goodwill impairments 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. 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.