AAM Concludes 2022 With Strong Cash Flow
Delivery
DETROIT, Feb. 17,
2023 /PRNewswire/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its
financial results for the fourth quarter and full year
2022.
Fourth Quarter 2022 Results
- Sales of $1.39 billion
- Net income attributable to AAM of $13.9
million, or 1.0% of sales, which includes Malvern fire
recoveries, net
- Adjusted EBITDA of $157.7
million, or 11.3% of sales
- Diluted earnings per share of $0.11; Adjusted loss per share of $(0.07)
- Net cash provided by operating activities of $148.5 million; Adjusted free cash flow of
$99.0 million
Full Year 2022 Results
- Sales of $5.80 billion
- Net income attributable to AAM of $64.3
million, or 1.1% of sales
- Adjusted EBITDA of $747.3
million, or 12.9% of sales
- Diluted earnings per share of $0.53; Adjusted earnings per share of
$0.60
- Net cash provided by operating activities of $448.9 million; Adjusted free cash flow of
$313.0 million
"AAM delivered strong cash flow performance in 2022 while
navigating customer production schedule volatility and ongoing
supply chain challenges," said AAM's Chairman and Chief Executive
Officer, David C. Dauch. "In the
pivot to electrification, AAM continues to bring the future faster
with sophisticated industry-leading electric drive technology
resulting in an expanding electrification business mix within our
$725 million new business
backlog."
AAM's sales in the fourth quarter of 2022 were $1.39 billion as compared to $1.24 billion in the fourth quarter of 2021.
Sales for the fourth quarter of 2022 were favorably impacted by the
Tekfor acquisition and volume and mix.
AAM's sales for full year 2022 were $5.80
billion as compared to $5.16
billion for full year 2021. The increase is attributable to
the Tekfor acquisition and production growth, although schedules
remained volatile throughout the year.
AAM's net income in the fourth quarter of 2022 was $13.9 million, or $0.11 per share, as compared to a net loss of
$(46.3) million, or $(0.41) per share in the fourth quarter of
2021. AAM's net income for full year 2022 was $64.3 million, or $0.53 per share, as compared to net income of
$5.9 million, or $0.05 per share, for full year 2021.
AAM defines Adjusted earnings (loss) per share to be diluted
earnings (loss) 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,
certain accelerated depreciation, unrealized gains or losses on
equity securities and non-recurring items, including the tax effect
thereon. Adjusted loss per share in the fourth quarter of
2022 was $(0.07) compared to Adjusted
loss per share of $(0.09) in the
fourth quarter of 2021. Adjusted earnings per share for full year
2022 were $0.60 compared to
$0.93 for full year 2021.
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,
unrealized gains or losses on equity securities and non-recurring
items. In the fourth quarter of 2022, Adjusted EBITDA was
$157.7 million, or 11.3% of sales, as
compared to $164.6 million, or 13.3%
of sales, in the fourth quarter of 2021.
For full year 2022, AAM's Adjusted EBITDA was $747.3 million, or 12.9% of sales, as compared to
$833.3 million, or 16.2% of sales, in
2021.
AAM's net cash provided by operating activities for the fourth
quarter of 2022 was $148.5 million as
compared to $102.4 million for the
fourth quarter of 2021. AAM's net cash provided by operating
activities for full year 2022 was $448.9
million as compared to $538.4
million for full year 2021.
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, and cash payments
related to the Malvern fire, including payments for capital
expenditures, net of recoveries. AAM's adjusted free cash flow for
the fourth quarter of 2022 was $99.0
million as compared to $43.6
million for the fourth quarter of 2021. AAM's adjusted
free cash flow for full year 2022 was $313.0
million as compared to $422.9
million for full year 2021.
AAM's 2023 Financial Outlook
AAM's full year 2023
financial targets are as follows:
- AAM is targeting sales in the range of $5.95 - $6.25
billion.
- AAM is targeting Adjusted EBITDA in the range of $725 - $800
million.
-
- Reflects the impact of increased R&D spending to support
new programs and electrification growth opportunities
- AAM is targeting Adjusted free cash flow in the range of
$225 - $300
million; this target assumes capital spending of
approximately 3.5% - 4.0% of sales.
These targets are based on the following assumptions for
2023:
- North American light vehicle production of approximately 14.5 -
15.1 million units.
- Current customer production and launch schedules and operating
environment.
AAM's 2023-2025 New Business Backlog
As disclosed at
AAM's Technology Day (January 4,
2023), AAM's gross new and incremental business backlog
launching from 2023 - 2025 is estimated at approximately
$725 million in future annual sales.
AAM expects the launch cadence of the three-year backlog to be
approximately $350 million in 2023,
$225 million in 2024 and $150 million in 2025. Electrification mix
approximates 40% of AAM's new business backlog versus 35% in the
prior backlog (2022-2024).
Fourth Quarter 2022 Conference Call
Information
A conference call to review AAM's fourth
quarter 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 3177234. A replay will be available one hour after the
call is complete until February 24, 2023 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 5108684.
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
As a leading global Tier 1
Automotive and Mobility Supplier, AAM (NYSE: AXL) designs,
engineers and manufactures Driveline and Metal Forming technologies
to support electric, hybrid and internal combustion vehicles.
Headquartered in Detroit with over
80 facilities in 18 countries, AAM is bringing the future
faster for a safer and more sustainable tomorrow. 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: global economic conditions, including the impact of
inflation, recession or recessionary concerns, or slower growth in
the markets in which we operate; reduced purchases of our products
by General Motors Company (GM), Stellantis N.V. (Stellantis), 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,
Stellantis 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 or geopolitical conflicts, taxes and
other law changes, potential disruptions of production and supply,
and currency rate fluctuations); supply shortages, such as the
semiconductor shortage that the automotive industry is currently
experiencing and the availability of natural gas or other fuel and
utility sources in certain regions, labor shortages, including
increased labor costs, or price increases in raw material and/or
freight, utilities or other operating supplies for us or our
customers as a result of pandemic or epidemic illness such as
COVID-19, geopolitical conflicts, natural disasters 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 attacks and other similar disruptions; our
suppliers', our customers' and their suppliers' ability to maintain
satisfactory labor relations and avoid work stoppages; cost or
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; risks of environmental issues, including impacts of
climate-related events, that could result in unforeseen issues or
costs at our facilities, or risks of noncompliance with
environmental laws and regulations, including reputational damage;
our ability to maintain satisfactory labor relations and avoid work
stoppages; our ability to consummate and successfully integrate
acquisitions and joint ventures; our ability to achieve the level
of cost reductions required to sustain global cost competitiveness
or our ability to recover certain cost increases from our
customers; 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; 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 qualified personnel in key positions and functions; 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
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 OPERATIONS (Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
1,392.7
|
|
$
1,235.1
|
|
$
5,802.4
|
|
$
5,156.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,225.5
|
|
1,095.1
|
|
5,097.5
|
|
4,433.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
167.2
|
|
140.0
|
|
704.9
|
|
722.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
88.5
|
|
77.5
|
|
345.1
|
|
344.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.3
|
|
21.5
|
|
85.7
|
|
85.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
3.8
|
|
8.6
|
|
30.2
|
|
49.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
business
|
—
|
|
—
|
|
—
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
53.6
|
|
32.4
|
|
243.9
|
|
240.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(42.3)
|
|
(44.5)
|
|
(174.5)
|
|
(195.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
5.4
|
|
2.7
|
|
17.0
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(0.4)
|
|
—
|
|
(6.4)
|
|
(34.0)
|
|
|
Gain on bargain
purchase of business
|
0.6
|
|
—
|
|
13.6
|
|
—
|
|
|
Pension settlement
charges
|
—
|
|
(42.3)
|
|
—
|
|
(42.3)
|
|
|
Unrealized gain (loss)
on equity securities
|
(1.5)
|
|
5.0
|
|
(25.5)
|
|
24.4
|
|
|
Other income
(expense), net
|
2.6
|
|
(1.9)
|
|
(1.8)
|
|
(3.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
18.0
|
|
(48.6)
|
|
66.3
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
4.1
|
|
(2.3)
|
|
2.0
|
|
(4.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AAM
|
$
13.9
|
|
$
(46.3)
|
|
$
64.3
|
|
$
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
$
0.11
|
|
$
(0.41)
|
|
$
0.53
|
|
$
0.05
|
|
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
511.5
|
|
$
530.2
|
Accounts receivable,
net
|
820.2
|
|
762.8
|
Inventories,
net
|
463.9
|
|
410.4
|
Prepaid expenses and
other
|
197.8
|
|
152.6
|
Total current
assets
|
1,993.4
|
|
1,856.0
|
|
|
|
|
Property, plant and
equipment, net
|
1,903.0
|
|
1,996.1
|
Deferred income
taxes
|
119.0
|
|
121.1
|
Goodwill
|
181.6
|
|
183.8
|
Other intangible
assets, net
|
616.2
|
|
697.2
|
GM postretirement cost
sharing asset
|
127.6
|
|
201.1
|
Operating lease
right-of-use asset
|
107.2
|
|
123.7
|
Other assets and
deferred charges
|
421.4
|
|
456.7
|
Total
assets
|
$
5,469.4
|
|
$
5,635.7
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
75.9
|
|
$
18.8
|
Accounts
payable
|
734.0
|
|
612.8
|
Accrued compensation
and benefits
|
186.6
|
|
195.2
|
Deferred
revenue
|
28.1
|
|
28.1
|
Current portion of
operating lease liabilities
|
21.1
|
|
24.6
|
Accrued expenses and
other
|
153.6
|
|
160.4
|
Total current
liabilities
|
1,199.3
|
|
1,039.9
|
|
|
|
|
Long-term debt,
net
|
2,845.1
|
|
3,085.7
|
Deferred
revenue
|
73.4
|
|
94.8
|
Deferred income
taxes
|
10.7
|
|
13.5
|
Long-term portion of
operating lease liabilities
|
87.2
|
|
99.9
|
Postretirement benefits
and other long-term liabilities
|
626.4
|
|
844.1
|
Total
liabilities
|
4,842.1
|
|
5,177.9
|
|
|
|
|
Total AAM stockholders'
equity
|
627.3
|
|
457.8
|
Noncontrolling
interests in subsidiaries
|
—
|
|
—
|
Total stockholders'
equity
|
627.3
|
|
457.8
|
Total liabilities
and stockholders' equity
|
$
5,469.4
|
|
$
5,635.7
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(in
millions)
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
13.9
|
|
$
(46.3)
|
|
$
64.3
|
|
$
5.9
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
125.0
|
|
123.1
|
|
492.1
|
|
544.3
|
Other
|
|
9.6
|
|
25.6
|
|
(107.5)
|
|
(11.8)
|
Net cash provided by
operating activities
|
|
148.5
|
|
102.4
|
|
448.9
|
|
538.4
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(53.5)
|
|
(65.4)
|
|
(171.4)
|
|
(181.2)
|
Proceeds from sale of
property, plant and equipment
|
|
0.4
|
|
0.2
|
|
4.7
|
|
2.0
|
Acquisition of
business, net of cash acquired
|
|
(0.6)
|
|
—
|
|
(88.9)
|
|
(4.9)
|
Proceeds from sale of
business, net
|
|
—
|
|
0.1
|
|
—
|
|
1.0
|
Other
|
|
8.1
|
|
(1.1)
|
|
12.6
|
|
22.0
|
Net cash used in
investing activities
|
|
(45.6)
|
|
(66.2)
|
|
(243.0)
|
|
(161.1)
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(65.6)
|
|
(5.7)
|
|
(216.8)
|
|
(392.1)
|
Other
|
|
(3.8)
|
|
(1.5)
|
|
(0.4)
|
|
(9.3)
|
Net cash used in
financing activities
|
|
(69.4)
|
|
(7.2)
|
|
(217.2)
|
|
(401.4)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
5.7
|
|
0.5
|
|
(7.4)
|
|
(2.7)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
39.2
|
|
29.5
|
|
(18.7)
|
|
(26.8)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
472.3
|
|
500.7
|
|
530.2
|
|
557.0
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
511.5
|
|
$
530.2
|
|
$
511.5
|
|
$
530.2
|
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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
13.9
|
|
$
(46.3)
|
|
$
64.3
|
|
$
5.9
|
Interest
expense
|
42.3
|
|
44.5
|
|
174.5
|
|
195.2
|
Income tax expense
(benefit)
|
4.1
|
|
(2.3)
|
|
2.0
|
|
(4.7)
|
Depreciation and
amortization
|
125.0
|
|
123.1
|
|
492.1
|
|
544.3
|
EBITDA
|
185.3
|
|
119.0
|
|
732.9
|
|
740.7
|
Restructuring and
acquisition-related costs
|
3.8
|
|
8.6
|
|
30.2
|
|
49.4
|
Debt refinancing and
redemption costs
|
0.4
|
|
—
|
|
6.4
|
|
34.0
|
Loss on sale of
business
|
—
|
|
—
|
|
—
|
|
2.7
|
Unrealized loss (gain)
on equity securities
|
1.5
|
|
(5.0)
|
|
25.5
|
|
(24.4)
|
Pension
settlements
|
—
|
|
42.3
|
|
—
|
|
42.3
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire insurance
recoveries, net of charges
|
(32.7)
|
|
(0.3)
|
|
(39.1)
|
|
(11.4)
|
Acquisition-related
fair value inventory adjustment
|
—
|
|
—
|
|
5.0
|
|
—
|
Gain on bargain
purchase of business
|
(0.6)
|
|
—
|
|
(13.6)
|
|
—
|
Adjusted
EBITDA
|
$
157.7
|
|
$
164.6
|
|
$
747.3
|
|
$
833.3
|
|
Adjusted earnings
(loss) per share(b)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Diluted earnings (loss)
per share
|
$
0.11
|
|
$
(0.41)
|
|
$
0.53
|
|
$
0.05
|
Restructuring and
acquisition-related costs
|
0.03
|
|
0.08
|
|
0.25
|
|
0.42
|
Debt refinancing and
redemption costs
|
—
|
|
—
|
|
0.05
|
|
0.29
|
Loss on sale of
business
|
—
|
|
—
|
|
—
|
|
0.02
|
Unrealized loss (gain)
on equity securities
|
0.01
|
|
(0.04)
|
|
0.21
|
|
(0.21)
|
Pension
settlements
|
—
|
|
0.36
|
|
—
|
|
0.36
|
Accelerated
depreciation(c)
|
—
|
|
—
|
|
—
|
|
0.27
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire insurance
recoveries, net of charges
|
(0.26)
|
|
—
|
|
(0.32)
|
|
(0.10)
|
Gain on bargain
purchase of business
|
(0.01)
|
|
—
|
|
(0.11)
|
|
—
|
Acquisition-related
fair value inventory adjustment
|
—
|
|
—
|
|
0.04
|
|
—
|
Tax effect of
adjustments
|
0.05
|
|
(0.08)
|
|
(0.05)
|
|
(0.17)
|
Adjusted earnings
(loss) per share
|
$
(0.07)
|
|
$
(0.09)
|
|
$
0.60
|
|
$
0.93
|
Adjusted earnings (loss) per share are based on weighted average
diluted shares outstanding of 114.6 million and 114.1 million for
the three months ended December 31,
2022 and 2021 respectively, and 120.4 million and 118.7
million for the twelve months ended December
31, 2022 and 2021, 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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
148.5
|
|
$
102.4
|
|
$
448.9
|
|
$
538.4
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(53.1)
|
|
(65.2)
|
|
(166.7)
|
|
(179.2)
|
Free cash
flow
|
95.4
|
|
$
37.2
|
|
282.2
|
|
359.2
|
Cash payments for
restructuring and acquisition-related costs
|
6.6
|
|
9.8
|
|
27.8
|
|
57.7
|
Cash payments
(insurance proceeds) related to Malvern fire, net
|
(3.0)
|
|
(3.4)
|
|
3.0
|
|
6.0
|
Adjusted free cash
flow
|
$
99.0
|
|
$
43.6
|
|
$
313.0
|
|
$
422.9
|
|
Segment Financial
Information
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
967.2
|
|
$
913.0
|
|
$
4,130.8
|
|
$
3,744.9
|
Metal
Forming
|
527.1
|
|
410.1
|
|
2,113.0
|
|
1,762.2
|
Total
Sales
|
1,494.3
|
|
1,323.1
|
|
6,243.8
|
|
5,507.1
|
Intersegment
Sales
|
(101.6)
|
|
(88.0)
|
|
(441.4)
|
|
(350.5)
|
Net External
Sales
|
$
1,392.7
|
|
$
1,235.1
|
|
$
5,802.4
|
|
$
5,156.6
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
126.7
|
|
$
127.5
|
|
$
547.0
|
|
$
577.7
|
Metal
Forming
|
31.0
|
|
37.1
|
|
200.3
|
|
255.6
|
Total Segment
Adjusted EBITDA
|
$
157.7
|
|
$
164.6
|
|
$
747.3
|
|
$
833.3
|
Full Year 2023
Financial Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net income
|
$
10
|
|
$
65
|
Interest
expense
|
200
|
|
200
|
Income tax
expense
|
—
|
|
20
|
Depreciation and
amortization
|
490
|
|
490
|
Full year 2023 targeted
EBITDA
|
700
|
|
775
|
Restructuring and
acquisition-related costs
|
25
|
|
25
|
Full year 2023
targeted Adjusted EBITDA
|
$
725
|
|
$
800
|
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
435
|
|
$
510
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(230)
|
|
(230)
|
Full year 2023 targeted
Free Cash Flow
|
205
|
|
280
|
Cash payments for
restructuring and acquisition-related costs
|
25
|
|
25
|
Other
|
(5)
|
|
(5)
|
Full year 2023
targeted Adjusted Free Cash Flow
|
$
225
|
|
$
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, loss on sale of a business,
impairment charges, pension settlements, unrealized gains or losses
on equity securities 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 are also key metrics used in
our calculation of incentive compensation. 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 (loss) per share to be diluted earnings (loss) 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, certain
accelerated depreciation, unrealized gains or losses on equity
securities and non-recurring items, including the tax effect
thereon. We believe Adjusted earnings (loss) 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 (loss) per share differently.
|
|
|
(c)
|
In the first quarter of
2021, one of our largest customers announced their intention to
cease production operations in Brazil in 2021 as part of their
restructuring actions. As such, we accelerated depreciation on
certain property, plant and equipment beginning in the first
quarter of 2021.
|
|
|
(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 and cash payments related to the Malvern
fire, including payments for capital expenditures, net of
recoveries. 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.