DETROIT, Feb. 12, 2021 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the fourth quarter and full year
2020. AAM also provided its full year 2021 financial outlook and
2021-2023 new business backlog.
Fourth Quarter 2020 Results
- Sales of $1.44 billion
- Net income attributable to AAM of $36.0
million, or 2.5% of sales
- Adjusted EBITDA of $261.5
million, or 18.2% of sales
- Diluted earnings per share of $0.30; Adjusted earnings per share of
$0.51
- Net cash provided by operating activities of $208.3 million; Adjusted free cash flow of
$172.7 million
- Prepaid over $100 million of Term
Loans during the quarter
Full Year 2020 Results
- Sales of $4.71 billion
- Net loss attributable to AAM of $(561.3)
million, or (11.9)% of sales, which includes the impact of
impairment charges of $510.0
million
- Adjusted EBITDA of $719.8
million, or 15.3% of sales
- Diluted loss per share of $(4.96); Adjusted earnings per share of
$0.14
- Net cash provided by operating activities of $454.7 million; Adjusted free cash flow of
$311.4 million
- AAM's full year financial results were unfavorably impacted by
global production shutdowns due to the coronavirus pandemic
(COVID-19)
"AAM delivered solid financial results and free cash flow
performance in 2020 as we successfully managed our cost structure
while benefiting from the production recovery during the second
half of this year," said AAM's Chairman and Chief Executive
Officer, David C. Dauch. "While last
year was certainly challenging, we look forward to a better and
brighter year in 2021 which includes launching a number of
electrification programs to support our customers, generating
strong financial metrics through operational excellence and
investing in next generation propulsion technologies."
AAM's sales in the fourth quarter of 2020 were $1.44 billion as compared to $1.43 billion in the fourth quarter of 2019. AAM
estimates sales for the fourth quarter of 2020 were unfavorably
impacted by COVID-19 by approximately $40
million. AAM estimates that our sales for the fourth
quarter of 2019 were unfavorably impacted by a GM work stoppage by
approximately $186 million. In
addition, fourth quarter of 2019 sales included $119 million related to our U.S. iron casting
operations, which were sold in December
2019.
AAM's sales for full year 2020 were $4.71
billion as compared to $6.53
billion for full year 2019. AAM estimates sales for the full
year 2020 were unfavorably impacted by COVID-19 by approximately
$1.24 billion. AAM estimates that our
sales for the full year 2019 were unfavorably impacted by the GM
work stoppage by approximately $243
million. In addition, full year 2019 sales included
$628 million related to our U.S. iron
casting operations.
AAM's net income in the fourth quarter of 2020 was $36.0 million, or $0.30 per share, as compared to a net loss of
$(454.4) million, or $(4.04) per share in the fourth quarter of
2019. AAM's net loss for full year 2020 was $(561.3) million, or $(4.96) per share, as compared to a net loss of
$(484.5) million, or $(4.31) per share, for full year 2019.
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,
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 2020 were
$0.51 compared to $0.13 in the fourth quarter of 2019. Adjusted
earnings per share for full year 2020 were $0.14 compared to $1.62 for full year 2019.
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,
loss on sale of business, impairment charges, pension settlements
and non-recurring items. In the fourth quarter of 2020,
Adjusted EBITDA was $261.5 million,
or 18.2% of sales, as compared to $193.5
million, or 13.5% of sales, in the fourth quarter of
2019. AAM estimates Adjusted EBITDA in the fourth quarter of
2020 was unfavorably impacted by lower sales as a result of
COVID-19 by approximately $6
million. AAM estimates that our Adjusted EBITDA in the
fourth quarter 2019 was unfavorably impacted by the GM work
stoppage by approximately $66
million. In addition, fourth quarter of 2019 Adjusted
EBITDA included $2 million related to
our U.S. iron casting operations.
For full year 2020, AAM's Adjusted EBITDA was $719.8 million, or 15.3% of sales, as compared to
$970.3 million, or 14.9% of sales, in
2019. AAM estimates Adjusted EBITDA for the full year 2020 was
unfavorably impacted by lower sales as a result of COVID-19 by
approximately $368 million. AAM
estimates that our Adjusted EBITDA for the full year 2019 was
unfavorably impacted by the GM work stoppage by approximately
$84 million. In addition, full year
2019 Adjusted EBITDA included $43
million related to our U.S. iron casting operations.
AAM's net cash provided by operating activities for the fourth
quarter of 2020 was $208.3 million as
compared to $181.0 million for the
fourth quarter of 2019. AAM's net cash provided by operating
activities for full year 2020 was $454.7
million as compared to $559.6
million for full year 2019.
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 2020 was $172.7 million as compared to $116.5 million for the fourth quarter of 2019.
AAM's Adjusted free cash flow for full year 2020 was $311.4 million as compared to $207.8 million for full year 2019.
AAM's 2021 Financial Outlook
AAM's full year 2021 financial targets are as follows:
- AAM is targeting sales in the range of $5.3 - $5.5
billion
- AAM is targeting Adjusted EBITDA in the range of $850 - $925
million
- AAM is targeting Adjusted free cash flow in the range
$300 - $400
million; this target assumes capital spending of
approximately 4.5% of sales
These targets are based on the following industry production
assumptions for 2021:
- North American light vehicle production in the range of 15.5 -
16 million units
- European light vehicle production of approximately 19 million
units
- China light vehicle production
of approximately 25 million units
AAM's full year 2021 financial targets are based on current
customer production and launch schedules.
AAM's 2021-2023 New Business Backlog
AAM's gross new and incremental business backlog launching from
2021 - 2023 is estimated at approximately $600 million in future annual sales. AAM expects
the launch cadence of the three-year backlog to be approximately
$200 million in 2021, $150 million in 2022 and $250 million in 2023. Approximately 15% of
AAM's new business backlog is related to our electric drive
technologies.
Fourth Quarter 2020 Conference Call Information
A conference call to review AAM's fourth quarter and full year
2020 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 4544991. A replay will be available one hour after
the call is complete until February 19,
2021 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 10150289.
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 approximately 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: significant disruptions in production, sales and/or
supply as a result of public health crises, including pandemic or
epidemic illness such as Novel Coronavirus (COVID-19), or
otherwise; global economic conditions; reduced purchases of our
products by General Motors Company (GM), FCA US LLC (FCA), Ford
Motor Company (Ford) 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, FCA
and Ford); 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 the United
States-Mexico-Canada Agreement (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; 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;
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 pandemics, natural disasters or otherwise; 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; 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; 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; 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 any or all of the foregoing factors may be
exacerbated by COVID-19. Further, 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
David H.
Lim
Head of Investor
Relations
(313)
758-2006
david.lim@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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,437.9
|
|
|
$
|
1,430.0
|
|
|
$
|
4,710.8
|
|
|
$
|
6,530.9
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,201.4
|
|
|
1,246.6
|
|
|
4,128.1
|
|
|
5,628.3
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
236.5
|
|
|
183.4
|
|
|
582.7
|
|
|
902.6
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
83.3
|
|
|
90.0
|
|
|
313.9
|
|
|
364.7
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.6
|
|
|
21.8
|
|
|
86.6
|
|
|
95.4
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
—
|
|
|
440.0
|
|
|
510.0
|
|
|
665.0
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
28.6
|
|
|
21.8
|
|
|
67.2
|
|
|
57.8
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale
of business
|
—
|
|
|
21.3
|
|
|
1.0
|
|
|
21.3
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
103.0
|
|
|
(411.5)
|
|
|
(396.0)
|
|
|
(301.6)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(52.3)
|
|
|
(53.4)
|
|
|
(212.3)
|
|
|
(217.3)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
2.4
|
|
|
2.4
|
|
|
11.6
|
|
|
5.8
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(1.2)
|
|
|
(0.9)
|
|
|
(7.9)
|
|
|
(8.4)
|
|
Gain on bargain
purchase of business
|
—
|
|
|
10.8
|
|
|
—
|
|
|
10.8
|
|
Pension settlement
charge
|
(0.5)
|
|
|
(9.8)
|
|
|
(0.5)
|
|
|
(9.8)
|
|
Other, net
|
(1.4)
|
|
|
(3.5)
|
|
|
(5.2)
|
|
|
(12.5)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
50.0
|
|
|
(465.9)
|
|
|
(610.3)
|
|
|
(533.0)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
13.9
|
|
|
(11.5)
|
|
|
(49.2)
|
|
|
(48.9)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
36.1
|
|
|
(454.4)
|
|
|
(561.1)
|
|
|
(484.1)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AAM
|
$
|
36.0
|
|
|
$
|
(454.4)
|
|
|
$
|
(561.3)
|
|
|
$
|
(484.5)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.30
|
|
|
(4.04)
|
|
|
$
|
(4.96)
|
|
|
(4.31)
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
December 31,
2020
|
|
December 31,
2019
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
|
557.0
|
|
|
$
|
532.0
|
|
Accounts receivable,
net
|
793.2
|
|
|
815.4
|
|
Inventories,
net
|
323.2
|
|
|
373.6
|
|
Prepaid expenses and
other
|
203.6
|
|
|
136.8
|
|
Total current
assets
|
1,877.0
|
|
|
1,857.8
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,163.8
|
|
|
2,358.4
|
|
Deferred income
taxes
|
107.8
|
|
|
64.1
|
|
Goodwill
|
185.7
|
|
|
699.1
|
|
Other intangible
assets, net
|
780.7
|
|
|
864.5
|
|
GM postretirement
cost sharing asset
|
237.0
|
|
|
223.3
|
|
Operating lease
right-of-use asset
|
116.6
|
|
|
118.5
|
|
Other assets and
deferred charges
|
447.7
|
|
|
458.9
|
|
Total
assets
|
$
|
5,916.3
|
|
|
$
|
6,644.6
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
13.7
|
|
|
$
|
28.7
|
|
Accounts
payable
|
578.9
|
|
|
623.5
|
|
Accrued compensation
and benefits
|
170.9
|
|
|
154.4
|
|
Deferred
revenue
|
23.4
|
|
|
18.9
|
|
Current portion of
operating lease liabilities
|
22.6
|
|
|
21.8
|
|
Accrued expenses and
other
|
169.8
|
|
|
179.1
|
|
Total current
liabilities
|
979.3
|
|
|
1,026.4
|
|
|
|
|
|
Long-term
debt
|
3,441.3
|
|
|
3,612.3
|
|
Deferred
revenue
|
91.0
|
|
|
83.7
|
|
Deferred income
taxes
|
13.2
|
|
|
19.6
|
|
Long-term portion of
operating lease liabilities
|
94.4
|
|
|
96.7
|
|
Postretirement
benefits and other long-term liabilities
|
923.9
|
|
|
825.5
|
|
Total
liabilities
|
5,543.1
|
|
|
5,664.2
|
|
|
|
|
|
Total AAM
stockholders' equity
|
370.5
|
|
|
977.6
|
|
Noncontrolling
interests in subsidiaries
|
2.7
|
|
|
2.8
|
|
Total stockholders'
equity
|
373.2
|
|
|
980.4
|
|
Total liabilities
and stockholders' equity
|
$
|
5,916.3
|
|
|
$
|
6,644.6
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(in
millions)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
36.1
|
|
|
$
|
(454.4)
|
|
|
$
|
(561.1)
|
|
|
$
|
(484.1)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
128.2
|
|
|
125.4
|
|
|
521.9
|
|
|
536.9
|
|
Impairment
charges
|
|
—
|
|
|
442.9
|
|
|
510.0
|
|
|
667.9
|
|
Other
|
|
44.0
|
|
|
67.1
|
|
|
(16.1)
|
|
|
(161.1)
|
|
Net cash provided
by operating activities
|
|
208.3
|
|
|
181.0
|
|
|
454.7
|
|
|
559.6
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(69.3)
|
|
|
(98.0)
|
|
|
(215.6)
|
|
|
(433.3)
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.1
|
|
|
3.0
|
|
|
1.7
|
|
|
5.0
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
(9.4)
|
|
|
—
|
|
|
(9.4)
|
|
Proceeds from sale of
business, net
|
|
—
|
|
|
141.2
|
|
|
—
|
|
|
141.2
|
|
Other
|
|
—
|
|
|
(7.9)
|
|
|
(4.5)
|
|
|
(10.1)
|
|
Net cash provided
by (used in) investing activities
|
|
(69.2)
|
|
|
28.9
|
|
|
(218.4)
|
|
|
(306.6)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(129.2)
|
|
|
(59.9)
|
|
|
(213.5)
|
|
|
(192.5)
|
|
Other
|
|
2.3
|
|
|
—
|
|
|
(1.0)
|
|
|
(7.5)
|
|
Net cash used in
financing activities
|
|
(126.9)
|
|
|
(59.9)
|
|
|
(214.5)
|
|
|
(200.0)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
7.5
|
|
|
4.4
|
|
|
3.2
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
19.7
|
|
|
154.4
|
|
|
25.0
|
|
|
53.1
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
537.3
|
|
|
377.6
|
|
|
532.0
|
|
|
478.9
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of year
|
|
$
|
557.0
|
|
|
$
|
532.0
|
|
|
$
|
557.0
|
|
|
$
|
532.0
|
|
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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
36.1
|
|
|
$
|
(454.4)
|
|
|
$
|
(561.1)
|
|
|
$
|
(484.1)
|
|
Interest
expense
|
52.3
|
|
|
53.4
|
|
|
212.3
|
|
|
217.3
|
|
Income tax expense
(benefit)
|
13.9
|
|
|
(11.5)
|
|
|
(49.2)
|
|
|
(48.9)
|
|
Depreciation and
amortization
|
128.2
|
|
|
125.4
|
|
|
521.9
|
|
|
536.9
|
|
EBITDA
|
230.5
|
|
|
(287.1)
|
|
|
123.9
|
|
|
221.2
|
|
Restructuring and
acquisition-related costs
|
28.6
|
|
|
21.8
|
|
|
67.2
|
|
|
57.8
|
|
Debt refinancing and
redemption costs
|
1.2
|
|
|
0.9
|
|
|
7.9
|
|
|
8.4
|
|
Impairment
charges
|
—
|
|
|
440.0
|
|
|
510.0
|
|
|
665.0
|
|
Pension
settlement
|
0.5
|
|
|
9.8
|
|
|
0.5
|
|
|
9.8
|
|
Loss on sale of
business
|
—
|
|
|
21.3
|
|
|
1.0
|
|
|
21.3
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire charges,
net of recoveries
|
0.7
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
Gain on bargain
purchase of business
|
—
|
|
|
(10.8)
|
|
|
—
|
|
|
(10.8)
|
|
Other
|
—
|
|
|
(2.4)
|
|
|
—
|
|
|
(2.4)
|
|
Adjusted
EBITDA
|
$
|
261.5
|
|
|
$
|
193.5
|
|
|
$
|
719.8
|
|
|
$
|
970.3
|
|
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Diluted earnings
(loss) per share
|
$
|
0.30
|
|
|
(4.04)
|
|
|
$
|
(4.96)
|
|
|
(4.31)
|
|
Restructuring and
acquisition-related costs
|
0.24
|
|
|
0.19
|
|
|
0.60
|
|
|
0.51
|
|
Debt refinancing and
redemption costs
|
0.01
|
|
|
0.01
|
|
|
0.07
|
|
|
0.07
|
|
Loss on sale of
business
|
—
|
|
|
0.19
|
|
|
0.01
|
|
|
0.19
|
|
Impairment
charges
|
—
|
|
|
3.91
|
|
|
4.51
|
|
|
5.92
|
|
Pension
settlement
|
0.01
|
|
|
0.09
|
|
|
0.01
|
|
|
0.09
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire charges,
net of recoveries
|
0.01
|
|
|
—
|
|
|
0.08
|
|
|
—
|
|
Gain on bargain
purchase of business
|
—
|
|
|
(0.10)
|
|
|
—
|
|
|
(0.10)
|
|
Tax adjustments
related to the CARES Act and Tax Cuts and
Jobs Act
|
—
|
|
|
—
|
|
|
(0.07)
|
|
|
(0.08)
|
|
Adjustments to
liability for unrecognized tax benefits
|
—
|
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
Other
|
—
|
|
|
(0.02)
|
|
|
0.14
|
|
|
(0.02)
|
|
Tax effect of
adjustments
|
(0.06)
|
|
|
(0.10)
|
|
|
(0.19)
|
|
|
(0.60)
|
|
Adjustment for
anti-dilutive effect
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.05)
|
|
Adjusted earnings
per share
|
$
|
0.51
|
|
|
$
|
0.13
|
|
|
$
|
0.14
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share are based on weighted average diluted shares outstanding of
118.4 million and 116.2 million for the three months ended on
December 31, 2020 and 2019, respectively, and 117.9 million and
116.1 million for the twelve months ended on December 31, 2020
and 2019, 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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
208.3
|
|
|
$
|
181.0
|
|
|
$
|
454.7
|
|
|
$
|
559.6
|
|
Capital expenditures
net of proceeds from the sale of property, plant
and equipment
|
(69.2)
|
|
|
(95.0)
|
|
|
(213.9)
|
|
|
(428.3)
|
|
Free cash
flow
|
139.1
|
|
|
86.0
|
|
|
240.8
|
|
|
131.3
|
|
Cash payments for
restructuring and acquisition-related costs
|
33.6
|
|
|
30.5
|
|
|
70.6
|
|
|
76.5
|
|
Adjusted free cash
flow
|
$
|
172.7
|
|
|
$
|
116.5
|
|
|
$
|
311.4
|
|
|
$
|
207.8
|
|
|
|
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 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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,105.7
|
|
|
$
|
1,015.6
|
|
|
$
|
3,635.6
|
|
|
$
|
4,550.2
|
|
Metal
Forming
|
433.4
|
|
|
401.2
|
|
|
1,439.2
|
|
|
1,845.2
|
|
Casting
|
—
|
|
|
127.5
|
|
|
—
|
|
|
669.2
|
|
Total
Sales
|
1,539.1
|
|
|
1,544.3
|
|
|
5,074.8
|
|
|
7,064.6
|
|
Intersegment
Sales
|
(101.2)
|
|
|
(114.3)
|
|
|
(364.0)
|
|
|
(533.7)
|
|
Net External
Sales
|
$
|
1,437.9
|
|
|
$
|
1,430.0
|
|
|
$
|
4,710.8
|
|
|
$
|
6,530.9
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
186.2
|
|
|
$
|
124.9
|
|
|
$
|
501.7
|
|
|
$
|
610.8
|
|
Metal
Forming
|
75.3
|
|
|
66.2
|
|
|
218.1
|
|
|
316.5
|
|
Casting
|
—
|
|
|
2.4
|
|
|
—
|
|
|
43.0
|
|
Total Segment
Adjusted EBITDA
|
$
|
261.5
|
|
|
$
|
193.5
|
|
|
$
|
719.8
|
|
|
$
|
970.3
|
|
Full Year 2021
Financial Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net income
|
$
|
80
|
|
|
$
|
140
|
|
Interest
expense
|
205
|
|
|
205
|
|
Income tax
expense
|
20
|
|
|
35
|
|
Depreciation and
amortization
|
485
|
|
|
485
|
|
Full year 2021
targeted EBITDA
|
790
|
|
|
865
|
|
Restructuring and
acquisition-related costs
|
60
|
|
|
60
|
|
Full year 2021
targeted Adjusted EBITDA
|
$
|
850
|
|
|
$
|
925
|
|
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
480
|
|
|
$
|
580
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(240)
|
|
|
(240)
|
|
Full year 2021
targeted Free Cash Flow
|
240
|
|
|
340
|
|
Cash payments for
restructuring and acquisition-related costs
|
60
|
|
|
60
|
|
Full year 2021
targeted Adjusted Free Cash Flow
|
$
|
300
|
|
|
$
|
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, 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, 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.