DETROIT, Feb. 14, 2020 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the fourth quarter and full year
2019. AAM also provided its full year 2020 financial outlook and
2020-2022 new business backlog.
Fourth Quarter 2019 Results
- Sales of $1.43 billion
- Net loss attributable to AAM of $454.4
million, or (31.8)% of sales, which includes the impact of a
pre-tax goodwill impairment of $440.0
million
- Adjusted EBITDA of $193.5
million, or 13.5% of sales
- Diluted loss per share of $4.04;
Adjusted earnings per share of $0.13
- Net cash provided by operating activities of $181.0 million; Adjusted free cash flow of
$116.5 million
- AAM's fourth quarter financial results were unfavorably
impacted by a work stoppage at our largest customer (GM work
stoppage)
Full Year 2019 Results
- Sales of $6.53 billion
- Net loss attributable to AAM of $484.5
million, or (7.4)% of sales, which includes the impact of
pre-tax impairment charges of $665.0
million
- Adjusted EBITDA of $970.3
million, or 14.9% of sales
- Diluted loss per share of $4.31;
Adjusted earnings per share of $1.62
- Net cash provided by operating activities of $559.6 million; Adjusted free cash flow of
$207.8 million
- AAM's full year financial results were unfavorably impacted by
the GM work stoppage
"AAM delivered solid operating and cash flow performance in
2019, as we adjusted our operations for lower global production
volumes and the GM work stoppage," said AAM's Chairman and Chief
Executive Officer, David C. Dauch.
"In 2020, we are focused on further free cash flow generation and
debt reduction while continuing to invest in advanced propulsion
technologies to drive future profitable growth for AAM."
AAM's sales in the fourth quarter of 2019 were $1.43 billion as compared to $1.69 billion in the fourth quarter of
2018. AAM's sales for full year 2019 were $6.53 billion as compared to $7.27 billion for full year 2018. AAM estimates
that our sales for the fourth quarter and full year 2019 were
unfavorably impacted by the GM work stoppage by approximately
$186 million and $243 million, respectively.
AAM's net loss in the fourth quarter of 2019 was $454.4 million, or $4.04 per share, as compared to a net loss of
$361.8 million, or $3.24 per share in the fourth quarter of
2018. AAM's net loss for full year 2019 was $484.5 million, or $4.31 per share, as compared to a net loss of
$57.5 million, or $0.51 per share, for full year 2018.
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) loss on sale of business, impairment charges, pension
settlements and non-recurring items, including the tax effect
thereon. Adjusted earnings per share in the fourth quarter of
2019 were $0.13 compared to
$0.45 in the fourth quarter of 2018.
Adjusted earnings per share for full year 2019 were $1.62 compared to $3.28 for full year 2018.
AAM estimates that our net loss in the fourth quarter of 2019
was unfavorably impacted by the GM work stoppage by approximately
$52 million, or $0.47 per share. AAM estimates that our net loss
for full year 2019 was unfavorably impacted by the GM work stoppage
by approximately $66 million, or
$0.59 per share.
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) loss on sale of business, impairment charges, pension
settlements and non-recurring items. In the fourth quarter of
2019, Adjusted EBITDA was $193.5
million, or 13.5% of sales, as compared to $244.0 million, or 14.4% of sales, in the fourth
quarter of 2018. For full year 2019, AAM's Adjusted EBITDA
was $970.3 million, or 14.9% of
sales, as compared to $1,183.9
million, or 16.3% of sales, in 2018. AAM estimates that our
Adjusted EBITDA in the fourth quarter and full year 2019 was
unfavorably impacted by the GM work stoppage by approximately
$66 million and $84 million, respectively.
AAM's net cash provided by operating activities for the fourth
quarter of 2019 was $181.0 million as
compared to $258.3 million for the
fourth quarter of 2018. AAM's net cash provided by operating
activities for full year 2019 was $559.6
million as compared to $771.5
million for full year 2018.
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. AAM's Adjusted free
cash flow for the fourth quarter of 2019 was $116.5 million as compared to $142.4 million for the fourth quarter of 2018.
AAM's Adjusted free cash flow for full year 2019 was $207.8 million as compared to $322.3 million for full year 2018.
AAM Redeems $100 million of its
6.625% Senior Notes
On February 5,
2020, AAM redeemed $100
million of its 6.625% senior notes due 2022, plus accrued
and unpaid interest.
AAM's 2020 Financial Outlook
AAM's full year 2020
financial targets are as follows:
- AAM is targeting sales in the range of $5.8 - $6.0
billion, which includes lower metal market passthroughs to
customers at current market rates.
- AAM is targeting Adjusted EBITDA margin of approximately 16% of
sales
- AAM is targeting Adjusted free cash flow of approximately
$300 million. This target assumes
capital spending of approximately 5.5% of sales.
These targets are based on the following industry production
assumptions for 2020:
- North American light vehicle production of 16.3 to 16.5 million
units
- European light vehicle production down 1% to 3% compared to
2019
- China light vehicle production
down 3% to 5% compared to 2019
AAM's 2020-2022 New Business Backlog
AAM's gross new
and incremental business backlog launching from 2020 - 2022 is
estimated at approximately $750
million in future annual sales. AAM expects the launch
cadence of the three-year backlog to be approximately $400 million in 2020, $200
million in 2021 and $150
million in 2022. AAM's updated backlog estimate
contemplates the sale of the U.S. iron casting operations completed
in December 2019.
Fourth Quarter 2019 Conference Call Information
A
conference call to review AAM's fourth quarter and full year 2019
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 (877) 883-0383 from the United States or (412) 902-6506 from
outside the United States with
access code 8417761. A replay will be available one hour after
the call is complete until February 21,
2020 by dialing (877) 344-7529 from the United States or (412) 317-0088 from
outside the United States. When
prompted, callers should enter replay access code 10138226.
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 and
metal forming technologies that are making the next generation of
vehicles smarter, lighter, safer and more efficient. Headquartered
in Detroit, AAM has over 20,000
associates operating at nearly 80 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;
lower-than-anticipated market acceptance of new or existing
products; our ability to attract new customers and programs for new
products; 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, currency rate fluctuations,
and potential disruptions of production and supply, including those
as a result of public health crises, such as pandemic or epidemic
illness, or otherwise); a significant disruption in operations at
one or more of our key manufacturing facilities; negative or
unexpected tax consequences; 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; 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; liabilities arising from
warranty claims, product recall or field actions, product liability
and legal proceedings to which we are or may become a party, or the
impact of product recall or field actions on our customers; our
ability or our customers' and suppliers' ability to successfully
launch new product programs on a timely basis; our ability to
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; 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 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; price volatility in, or
reduced availability of, fuel; our ability to protect our
intellectual property and successfully defend against assertions
made against us; 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; 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; changes in liabilities arising
from pension and other postretirement benefit obligations; our
ability to attract and retain key associates; 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.
Or visit the AAM website at www.aam.com.
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,430.0
|
|
|
$
|
1,694.1
|
|
|
$
|
6,530.9
|
|
|
$
|
7,270.4
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,246.6
|
|
|
1,468.8
|
|
|
5,628.3
|
|
|
6,130.0
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
183.4
|
|
|
225.3
|
|
|
902.6
|
|
|
1,140.4
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
90.0
|
|
|
97.1
|
|
|
364.7
|
|
|
385.7
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.8
|
|
|
24.9
|
|
|
95.4
|
|
|
99.4
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
440.0
|
|
|
485.5
|
|
|
665.0
|
|
|
485.5
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
21.8
|
|
|
12.1
|
|
|
57.8
|
|
|
78.9
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale
of business
|
21.3
|
|
|
—
|
|
|
21.3
|
|
|
(15.5)
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(411.5)
|
|
|
(394.3)
|
|
|
(301.6)
|
|
|
106.4
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(53.4)
|
|
|
(53.8)
|
|
|
(217.3)
|
|
|
(216.3)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
2.4
|
|
|
0.4
|
|
|
5.8
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(0.9)
|
|
|
(4.8)
|
|
|
(8.4)
|
|
|
(19.4)
|
|
Gain on bargain
purchase of business
|
10.8
|
|
|
—
|
|
|
10.8
|
|
|
—
|
|
Pension settlement
charge
|
(9.8)
|
|
|
—
|
|
|
(9.8)
|
|
|
—
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
Other, net
|
(3.5)
|
|
|
2.4
|
|
|
(12.5)
|
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(465.9)
|
|
|
(450.1)
|
|
|
(533.0)
|
|
|
(113.9)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(11.5)
|
|
|
(88.5)
|
|
|
(48.9)
|
|
|
(57.1)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(454.4)
|
|
|
(361.6)
|
|
|
(484.1)
|
|
|
(56.8)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
—
|
|
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AAM
|
$
|
(454.4)
|
|
|
$
|
(361.8)
|
|
|
$
|
(484.5)
|
|
|
$
|
(57.5)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(4.04)
|
|
|
(3.24)
|
|
|
$
|
(4.31)
|
|
|
(0.51)
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
|
532.0
|
|
|
$
|
476.4
|
|
Accounts receivable,
net
|
815.4
|
|
|
966.5
|
|
Inventories,
net
|
373.6
|
|
|
459.7
|
|
Prepaid expenses and
other
|
136.8
|
|
|
127.2
|
|
Total current
assets
|
1,857.8
|
|
|
2,029.8
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,358.4
|
|
|
2,514.4
|
|
Deferred income
taxes
|
64.1
|
|
|
45.5
|
|
Goodwill
|
699.1
|
|
|
1,141.8
|
|
Other intangible
assets, net
|
864.5
|
|
|
1,111.1
|
|
GM postretirement
cost sharing asset
|
223.3
|
|
|
219.4
|
|
Other assets and
deferred charges
|
577.4
|
|
|
448.7
|
|
Total
assets
|
$
|
6,644.6
|
|
|
$
|
7,510.7
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
28.7
|
|
|
$
|
121.6
|
|
Accounts
payable
|
623.5
|
|
|
840.2
|
|
Accrued compensation
and benefits
|
154.4
|
|
|
179.0
|
|
Deferred
revenue
|
18.9
|
|
|
44.3
|
|
Accrued expenses and
other
|
200.9
|
|
|
171.7
|
|
Total current
liabilities
|
1,026.4
|
|
|
1,356.8
|
|
|
|
|
|
Long-term
debt
|
3,612.3
|
|
|
3,686.8
|
|
Deferred
revenue
|
83.7
|
|
|
77.6
|
|
Deferred income
taxes
|
19.6
|
|
|
92.6
|
|
Postretirement
benefits and other long-term liabilities
|
922.2
|
|
|
810.6
|
|
Total
liabilities
|
5,664.2
|
|
|
6,024.4
|
|
|
|
|
|
Total AAM
stockholders' equity
|
977.6
|
|
|
1,483.9
|
|
Noncontrolling
interests in subsidiaries
|
2.8
|
|
|
2.4
|
|
Total stockholders'
equity
|
980.4
|
|
|
1,486.3
|
|
Total liabilities
and stockholders' equity
|
$
|
6,644.6
|
|
|
$
|
7,510.7
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(454.4)
|
|
|
$
|
(361.6)
|
|
|
$
|
(484.1)
|
|
|
$
|
(56.8)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
125.4
|
|
|
137.9
|
|
|
536.9
|
|
|
528.8
|
|
Impairment
charges
|
|
442.9
|
|
|
515.5
|
|
|
667.9
|
|
|
515.5
|
|
Other
|
|
67.1
|
|
|
(33.5)
|
|
|
(161.1)
|
|
|
(216.0)
|
|
Net cash provided
by operating activities
|
|
181.0
|
|
|
258.3
|
|
|
559.6
|
|
|
771.5
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(98.0)
|
|
|
(132.9)
|
|
|
(433.3)
|
|
|
(524.7)
|
|
Proceeds from sale of
property, plant and equipment
|
|
3.0
|
|
|
1.7
|
|
|
5.0
|
|
|
4.9
|
|
Acquisition of
business, net of cash acquired
|
|
(9.4)
|
|
|
—
|
|
|
(9.4)
|
|
|
(1.3)
|
|
Proceeds from sale of
business, net
|
|
141.2
|
|
|
—
|
|
|
141.2
|
|
|
47.1
|
|
Other
|
|
(7.9)
|
|
|
(3.7)
|
|
|
(10.1)
|
|
|
(4.2)
|
|
Net cash used in
investing activities
|
|
28.9
|
|
|
(134.9)
|
|
|
(306.6)
|
|
|
(478.2)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(59.9)
|
|
|
(84.9)
|
|
|
(192.5)
|
|
|
(178.5)
|
|
Other
|
|
—
|
|
|
(0.1)
|
|
|
(7.5)
|
|
|
(6.0)
|
|
Net cash used in
financing activities
|
|
(59.9)
|
|
|
(85.0)
|
|
|
(200.0)
|
|
|
(184.5)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
4.4
|
|
|
(1.4)
|
|
|
0.1
|
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
154.4
|
|
|
37.0
|
|
|
53.1
|
|
|
102.1
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
377.6
|
|
|
441.9
|
|
|
478.9
|
|
|
376.8
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of year
|
|
$
|
532.0
|
|
|
$
|
478.9
|
|
|
$
|
532.0
|
|
|
$
|
478.9
|
|
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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(454.4)
|
|
|
$
|
(361.6)
|
|
|
$
|
(484.1)
|
|
|
$
|
(56.8)
|
|
Interest
expense
|
53.4
|
|
|
53.8
|
|
|
217.3
|
|
|
216.3
|
|
Income tax expense
(benefit)
|
(11.5)
|
|
|
(88.5)
|
|
|
(48.9)
|
|
|
(57.1)
|
|
Depreciation and
amortization
|
125.4
|
|
|
137.9
|
|
|
536.9
|
|
|
528.8
|
|
EBITDA
|
(287.1)
|
|
|
(258.4)
|
|
|
221.2
|
|
|
631.2
|
|
Restructuring and
acquisition-related costs
|
21.8
|
|
|
12.1
|
|
|
57.8
|
|
|
78.9
|
|
Debt refinancing and
redemption costs
|
0.9
|
|
|
4.8
|
|
|
8.4
|
|
|
19.4
|
|
Impairment
charges
|
440.0
|
|
|
485.5
|
|
|
665.0
|
|
|
485.5
|
|
Pension
settlement
|
9.8
|
|
|
—
|
|
|
9.8
|
|
|
—
|
|
(Gain) loss on sale
of business
|
21.3
|
|
|
—
|
|
|
21.3
|
|
|
(15.5)
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Gain on bargain
purchase of business
|
(10.8)
|
|
|
—
|
|
|
(10.8)
|
|
|
—
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.6)
|
|
Other
|
(2.4)
|
|
|
—
|
|
|
(2.4)
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
193.5
|
|
|
$
|
244.0
|
|
|
$
|
970.3
|
|
|
$
|
1,183.9
|
|
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Diluted earnings
(loss) per share
|
$
|
(4.04)
|
|
|
(3.24)
|
|
|
$
|
(4.31)
|
|
|
(0.51)
|
|
Restructuring and
acquisition-related costs
|
0.19
|
|
|
0.11
|
|
|
0.51
|
|
|
0.71
|
|
Debt refinancing and
redemption costs
|
0.01
|
|
|
0.04
|
|
|
0.07
|
|
|
0.17
|
|
(Gain) loss on sale
of business
|
0.19
|
|
|
—
|
|
|
0.19
|
|
|
(0.14)
|
|
Impairment
charges
|
3.91
|
|
|
4.35
|
|
|
5.92
|
|
|
4.35
|
|
Pension
settlement
|
0.09
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Gain on bargain
purchase of business
|
(0.10)
|
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.14)
|
|
Tax Cuts and Jobs Act
Transition Tax adjustment
|
—
|
|
|
—
|
|
|
(0.08)
|
|
|
—
|
|
Adjustments to
liability for unrecognized tax benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.18)
|
|
Other
|
(0.02)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Tax effect of
adjustments
|
(0.10)
|
|
|
(0.79)
|
|
|
(0.60)
|
|
|
(0.85)
|
|
Adjustment for
anti-dilutive effect
|
—
|
|
|
(0.02)
|
|
|
(0.05)
|
|
|
(0.13)
|
|
Adjusted earnings
per share
|
$
|
0.13
|
|
|
$
|
0.45
|
|
|
$
|
1.62
|
|
|
$
|
3.28
|
|
|
|
Adjusted earnings per
share are based on weighted average diluted shares outstanding of
116.2 million for the three months ended on December 31, 2019 and
2018, and 116.1 million and 115.8 million for the twelve months
ended on December 31, 2019 and 2018, 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(c)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
181.0
|
|
|
$
|
258.3
|
|
|
$
|
559.6
|
|
|
$
|
771.5
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(95.0)
|
|
|
(131.2)
|
|
|
(428.3)
|
|
|
(519.8)
|
|
Free cash
flow
|
86.0
|
|
|
127.1
|
|
|
131.3
|
|
|
251.7
|
|
Cash payments for
restructuring and acquisition-related costs
|
30.5
|
|
|
15.3
|
|
|
76.5
|
|
|
70.6
|
|
Adjusted free cash
flow
|
$
|
116.5
|
|
|
$
|
142.4
|
|
|
$
|
207.8
|
|
|
$
|
322.3
|
|
Segment Financial
Information
|
|
In the first quarter
of 2019, we reorganized our business to disaggregate our former
Powertrain segment, with a portion moving to our Driveline segment
and a portion moving to our Metal Forming segment.
|
|
Additionally, in the
fourth quarter of 2019 we completed the sale of our U.S. iron
casting operations. This sale did not include the entities
that conduct AAM's casting operations in El Carmen, Mexico, which
are now included in our Driveline segment.
|
|
As a result, our
business is now organized into Driveline and Metal Forming. The
Powertrain Sales and Segment Adjusted EBITDA amounts previously
reported for the three and twelve months ended on December 31, 2018
have been reclassified to Driveline and Metal Forming in the tables
below. The Casting segment is now comprised entirely of the
U.S. casting operations that were sold. The amounts
previously reported in our Casting segment for the retained
operations in El Carmen, Mexico have been reclassified to our
Driveline Segment for the periods presented.
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,015.6
|
|
|
$
|
1,172.4
|
|
|
$
|
4,550.2
|
|
|
$
|
5,001.2
|
|
Metal
Forming
|
401.2
|
|
|
464.3
|
|
|
1,845.2
|
|
|
2,046.0
|
|
Casting
|
127.5
|
|
|
184.3
|
|
|
669.2
|
|
|
780.6
|
|
Total
Sales
|
1,544.3
|
|
|
1,821.0
|
|
|
7,064.6
|
|
|
7,827.8
|
|
Intersegment
Sales
|
(114.3)
|
|
|
(126.9)
|
|
|
(533.7)
|
|
|
(557.4)
|
|
Net External
Sales
|
$
|
1,430.0
|
|
|
$
|
1,694.1
|
|
|
$
|
6,530.9
|
|
|
$
|
7,270.4
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
124.9
|
|
|
$
|
163.8
|
|
|
$
|
610.8
|
|
|
$
|
754.5
|
|
Metal
Forming
|
66.2
|
|
|
73.8
|
|
|
316.5
|
|
|
376.5
|
|
Casting
|
2.4
|
|
|
6.4
|
|
|
43.0
|
|
|
52.9
|
|
Total Segment
Adjusted EBITDA
|
$
|
193.5
|
|
|
$
|
244.0
|
|
|
$
|
970.3
|
|
|
$
|
1,183.9
|
|
Full Year 2020
Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net income
|
$
|
140
|
|
|
$
|
165
|
|
Interest
expense
|
205
|
|
|
205
|
|
Income tax
expense
|
35
|
|
|
40
|
|
Depreciation and
amortization
|
515
|
|
|
515
|
|
Full year 2020
targeted EBITDA
|
895
|
|
|
925
|
|
Restructuring and
acquisition-related costs
|
35
|
|
|
35
|
|
Full year 2020
targeted Adjusted EBITDA
|
$
|
930
|
|
|
$
|
960
|
|
|
Adjusted Free
Cash Flow
|
|
|
|
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
590
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(325)
|
|
Full year 2020
targeted Free Cash Flow
|
265
|
|
Cash payments for
restructuring and acquisition-related costs
|
35
|
|
Full year 2020
targeted Adjusted Free Cash Flow
|
$
|
300
|
|
|
|
|
|
|
___________
(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) loss on sale of a
business, impairment charges, pension settlements 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)
|
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) loss on sale of a
business, impairment charges, pension settlements 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.
|
|
|
(c)
|
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. 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