PLYMOUTH, Mich., March 12, 2015 /PRNewswire/ -- Metaldyne
Performance Group Inc. (NYSE: MPG), a leading provider of
highly-engineered components for use in powertrain and
safety-critical platforms for the global light, commercial and
industrial vehicle markets, today reported the following financial
results for its full year and fourth quarter ended December 31, 2014.
Full Year 2014 Financial Highlights:
- Net sales of $2,717.0 million,
representing a year-over-year increase of 35%, compared to
$2,017.3 million in 2013
- Including the impact of the Grede acquisition, Combined
Non-GAAP net sales for 2014 were $3,144.0
million as compared to $3,052.9
million for 2013, or a $91
million increase
- Gross profit of $422.9 million
for the year was $114.3 million
higher than 2013, representing a year-over-year increase of
37%
- Net income of $72.9 million or
$89.8 million excluding the impact of
one-time items (1)
- Diluted earnings per share of $1.06 or $1.31
excluding one-time items (1)
- Adjusted EBITDA of $478.6
million, compared to $363.1
million in 2013, representing a year-over-year increase of
32%
- Including the impact of the Grede acquisition, combined
Adjusted EBITDA in 2014 was $545.1
million as compared to $508.8
million, resulting in a year over year growth of 7%
- Capital expenditures of $156.4
million
- Including the impact of the Grede acquisition, combined
Adjusted EBITDA in 2014 was $168.2
- Adjusted Free Cash Flow, defined as Adjusted EBITDA less
capital expenditures, was $322.2
million or 11.9% of Net Sales
- The board of directors approved and MPG executed a voluntary
repayment of $10.0 million of its
outstanding Term Loan in December of 2014
- Three year backlog as of December 31,
2014 of $190 million
Fourth Quarter Financial Highlights:
- Net sales of $762.2 million,
representing a year-over-year increase of 49% compared to
$511.4 million in 2013
- Including the impact of the Grede acquisition, net sales for
the fourth quarter of 2014 were $7.1
million higher than Combined Non-GAAP net sales of
$755.1 million for 2013, or a
$762.2 million increase
- Gross profit of $118.0 million
for the quarter was $38.4 million
higher than 2013, representing an increase of 48%
- Net income of $10.2 million or
$27.2 million excluding the impact of
one-time items (1)
- Diluted earnings per share of $0.15 or $0.40
excluding one-time items (1)
- Adjusted EBITDA of $125.7
million, compared to $92.0
million for the fourth quarter of 2013, representing a
year-over-year increase of 36.6%
- Including the impact of the Grede acquisition, Adjusted EBITDA
in 2013 was $128.6 million, resulting
in a year-over-year reduction of $2.9
million
- Capital expenditures of $54.2
million
- Adjusted Free Cash Flow, defined as Adjusted EBITDA less
capital expenditures, was $71.5
million or 9.4% of net sales
Commenting on the Company's results, George Thanopoulos, Chief Executive Officer of
MPG, stated, "2014 was a transformational and very successful year
for MPG and its underlying businesses. MPG's financial
performance improved in all facets, notably Adjusted Free Cash Flow
and Adjusted EBITDA margins. In addition, we successfully merged
three great companies and recapitalized our balance sheet through
our October 2014 refinancing and our
December 2014 IPO. All of these
actions have aligned our business to take advantage of future
profitable growth and realize the combined capabilities of the
consolidated organization."
(1) One-time items include the loss on debt extinguishment
net of tax and goodwill impairment, partially offset by the income
tax benefit from a change in assertion related to the reinvestment
of foreign earnings
Business Outlook
For fiscal 2015, MPG provides the following guidance:
- Net sales estimated to range between $3.0 and $3.15 billion
- Adjusted EBITDA between $520 and $560
million
- Capital expenditures expected to range between $210 and $225 million
Industry Production /
Key Assumptions
|
2015E
|
- Light Vehicle
SAAR North America
|
~2.5%
|
- Light Vehicle
SAAR Europe
|
~0.0%
|
- Light Vehicle
SAAR Asia
|
~3.5%
|
- NAFTA Heavy
Truck Class 5-8
|
~5.0%
|
- AMM – Chicago
#1 Bundles (Feb. 10)
|
$251 per gross
ton
|
- FX Rates
(February Month End):
|
|
|
-Euro/USD
|
1.12
|
|
-USD/Mexican
Peso
|
14.94
|
|
-USD/Chinese
Yuan
|
6.16
|
|
-USD/Korean
Won
|
1,100
|
MPG's board of directors approved a voluntary repayment of
$10.0 million of its outstanding Term
Loan before the end of the first quarter of 2015. Also, the board
declared a quarterly cash dividend of $.09 per share of common stock payable on
May 26th, 2015 for those
stockholders of record as of May
12th, 2015.
Conference Call
The Company will hold a conference
call to discuss its fourth quarter and fiscal year 2014 results
today at 8:00 a.m. ET. A live webcast
of the call may be accessed over the Internet from the Company's
Investor Relations website at investors.mpgdriven.com. Participants
should follow the instructions provided on the website to download
and install the necessary audio applications. The dial-in phone
number for the conference call is 1-877-201-0168 and the
international dial-in number is 1-647-788-4901. Participants should
ask for the MPG fourth quarter and fiscal year 2014 earnings
conference call.
For those unable to participate in the conference call, a replay
will be available from 11:00 a.m. ET
on March 12 until 11:59 p.m. ET on March
19. The replay dial-in phone number is 1-855-859-2056 and
the international replay dial-in number is 1-404-537-3406. The
replay passcode is 82202314.
About MPG
Metaldyne Performance Group Inc. is a
leading provider of highly-engineered components for use in
powertrain and safety-critical platforms for the global light,
commercial and industrial vehicle markets. MPG produces these
components using complex metal-forming manufacturing technologies
and processes for a global customer base of vehicle OEMs and Tier I
suppliers. MPG's metal-forming manufacturing technologies and
processes include aluminum die casting, forging, iron casting and
powder metal forming as well as advanced machining and assembly.
Headquartered in Plymouth, Michigan, MPG has a global footprint spanning
61 locations in 13 countries across North America, South
America, Europe and Asia with approximately
12,000 employees. For more information, visit
www.mpgdriven.com.
Cautionary Note Regarding Forward-Looking Statements
The information provided in this press release contains certain
"forward-looking statements" about MPG's financial results and
estimates and business prospects within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by words such as "expects," "intends,"
"anticipates," "plans," "project," "believes," "seeks," "targets,"
"forecast," "estimates," "will" or other words of similar meaning
and include, but are not limited to, statements regarding the
outlook for the Company's future business, prospects, and financial
performance; the industry outlook, our backlog and our 2015
financial guidance. Forward-looking statements are based on
management's current expectations and assumptions, which are
subject to inherent uncertainties, risks, and changes in
circumstances that are difficult to predict. Actual outcomes and
results may differ materially due to global political, economic,
business, competitive, market, regulatory, and other factors and
risks, including, but not limited to, the following: volatility in
the global economy impacting demand for new vehicles and our
products; a decline in vehicle production levels, particularly with
respect to platforms for which we are a significant supplier, or
the financial distress of any of our major customers; seasonality
in the automotive industry; our significant competition; our
dependence on large-volume customers for current and future sales;
a reduction in outsourcing by our customers, the loss or
discontinuation of material production or programs, or a failure to
secure sufficient alternative programs; our failure to offset
continuing pressure from our customers to reduce our prices; our
inability to realize all of the sales expected from awarded
business or fully recover pre-production costs; our failure to
increase production capacity or over-expanding our production in
times of overcapacity; our reliance on key machinery and tooling to
manufacture components for powertrain and safety-critical systems
that cannot be easily replicated; program launch difficulties; a
disruption in our supply or delivery chain which causes one or more
of our customers to halt production; work stoppages or production
limitations at one or more of our customer's facilities; a
catastrophic loss of one of our key manufacturing facilities;
failure to protect our know-how and intellectual property; the
disruption or harm to our business as a result of any acquisitions
or joint ventures we make; a significant increase in the prices of
raw materials and commodities we use; the damage to or termination
of our relationships with key third-party suppliers; our failure to
maintain our cost structure; the incurrence of significant costs if
we close any of our manufacturing facilities; potential significant
costs at our facility in Sandusky,
Ohio; the failure of or disruptions in our information
technology networks and systems, or the inability to successfully
implement upgrades to our enterprise resource planning systems; the
incurrence of significant costs, liabilities, and obligations as a
result of environmental requirements and other regulatory risks;
extensive and growing governmental regulations; the adverse impact
of climate change and related energy legislation and regulation;
the incurrence of material costs related to legal proceedings; our
inability to recruit and retain key personnel; any failure to
maintain satisfactory labor relations; pension and other
postretirement benefit obligations; risks related to our global
operations; competitive threats posed by global operations and
entering new markets; foreign exchange rate fluctuations; increased
costs and obligations as a result of becoming a public company; the
failure of our internal controls to meet the standards required by
Sarbanes-Oxley; our substantial indebtedness; our inability, or the
inability of our customers or our suppliers, to obtain and maintain
sufficient debt financing, including working capital lines; our
exposure to a number of different tax uncertainties; the mix of
profits and losses in various jurisdictions adversely affecting our
tax rate; disruption from the combination of our operations and
diversion of management's attention; our limited history of working
as a single company and the inability to integrate HHI, Metaldyne,
and Grede successfully and achieve the anticipated benefits.
For the reasons described above, we caution you against relying
on any forward-looking statements, which should also be read in
conjunction with the other cautionary statements that are included
elsewhere in this press release and in our public filings,
including under the heading "Risk Factors" in our filings that we
make from time to time with the Securities and Exchange Commission.
You should not consider any list of such factors to be an
exhaustive statement of all of the risks, uncertainties, or
potentially inaccurate assumptions that could cause our current
expectations or beliefs to change. Further, any forward-looking
statement speaks only as of the date on which it is made, and we
undertake no obligation to update or revise any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events, except as otherwise may be required by
law.
Non-GAAP Financial Measures
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest
expense, provision for (benefit from) income taxes and depreciation
and amortization, with further adjustments to reflect the additions
and eliminations of certain income statement items, including (i)
gains and losses on foreign currency and fixed assets and debt
transaction expenses, (ii) stock-based compensation and other
non-cash charges, (iii) sponsor management fees and other
income and expense items that we consider to be not indicative of
our ongoing operations, (iv) specified non-recurring items and
(v) other adjustments.
We believe Adjusted EBITDA is used by investors as a
supplemental measure to evaluate the overall operating performance
of companies in our industry. Management uses Adjusted EBITDA (i)
as a measurement used in comparing our operating performance on a
consistent basis, (ii) to calculate incentive compensation for our
employees, (iii) for planning purposes, including the preparation
of our internal annual operating budget, (iv) to evaluate the
performance and effectiveness of our operational strategies and (v)
to assess compliance with various metrics associated with our
agreements governing our indebtedness. Accordingly, we believe that
Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating our operating performance in the
same manner as our management. For a reconciliation of Adjusted
EBITDA to net income, the most directly comparable measure
determined under U.S. generally accepted accounting principles
("GAAP"), see "RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
AND ADJUSTED FREE CASH FLOW".
Adjusted Free Cash Flow
We define Adjusted Free Cash Flow as Adjusted EBITDA less
capital expenditures. Capital expenditures can be found in our
consolidated statements of cash flows as a component of cash flows
from investing activities. We present Adjusted Free Cash Flow
because our management considers it to be a useful, supplemental
indicator of our performance. When measured over time, Adjusted
Free Cash Flow provides supplemental information to investors
concerning our results of operations and our ability to generate
cash flows to satisfy mandatory debt service requirements and make
other non-discretionary expenditures. For a reconciliation of
Adjusted Free Cash Flow to net income, the most directly comparable
GAAP measure, see "RECONCILIATION OF NET INCOME TO ADJUSTED
EBITDA AND ADJUSTED FREE CASH FLOW".
Contacts
Investor Relations
Paul Suber
Vice President, Business Development & Investor Relations
investors@mpgdriven.com
248-440-9503
METALDYNE
PERFORMANCE GROUP INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In millions
except per share data)
|
|
|
December 31,
|
|
2014
|
|
2013
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
156.5
|
|
68.2
|
Receivables,
net:
|
|
|
|
Trade
|
312.9
|
|
222.3
|
Other
|
31.9
|
|
26.6
|
Total receivables,
net
|
344.8
|
|
248.9
|
Inventories
|
204.8
|
|
154.8
|
Deferred income
taxes
|
12.4
|
|
10.4
|
Prepaid
expenses
|
13.0
|
|
10.8
|
Other
assets
|
14.5
|
|
16.1
|
Total current
assets
|
746.0
|
|
509.2
|
Property and
equipment, net
|
750.2
|
|
539.5
|
Goodwill
|
907.7
|
|
658.0
|
Amortizable
intangible assets, net
|
778.5
|
|
463.9
|
Deferred income
taxes, noncurrent
|
1.4
|
|
2.8
|
Other
assets
|
40.8
|
|
43.4
|
Total
assets
|
$ 3,224.6
|
|
2,216.8
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
285.5
|
|
180.6
|
Accrued
compensation
|
50.9
|
|
40.1
|
Accrued
liabilities
|
79.9
|
|
54.9
|
Deferred income
taxes
|
—
|
|
17.0
|
Short-term
debt
|
1.6
|
|
20.4
|
Current maturities,
long-term debt and capital lease obligations
|
16.5
|
|
24.1
|
Total current
liabilities
|
434.4
|
|
337.1
|
Long-term debt, less
current maturities
|
1,920.3
|
|
1,209.6
|
Capital lease
obligations, less current maturities
|
23.4
|
|
25.9
|
Deferred income
taxes
|
260.7
|
|
287.9
|
Other long-term
liabilities
|
60.8
|
|
31.1
|
Total
liabilities
|
2,699.6
|
|
1,891.6
|
Stockholders'
equity:
|
|
|
|
Common Stock: par
$0.001, 400.0 authorized, 67.1 issued and outstanding
|
0.1
|
|
0.1
|
Paid-in
capital
|
827.3
|
|
557.5
|
Deficit
|
(269.7)
|
|
(231.2)
|
Accumulated other
comprehensive loss
|
(35.2)
|
|
(3.3)
|
Total equity
attributable to stockholders
|
522.5
|
|
323,1
|
Noncontrolling
interest
|
2.5
|
|
2.1
|
Total stockholders'
equity
|
525.0
|
|
325.2
|
Total liabilities and
stockholders' equity
|
$ 3,224.6
|
|
2,216.8
|
|
|
|
|
METALDYNE
PERFORMANCE GROUP INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In millions
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Year Ended
December 31,
2014
|
|
Year Ended
December 31,
2013
|
|
Successor
Period
2012
|
|
|
Predecessor
Period
2012
|
Net sales
|
$ 2,717.0
|
|
2,017.3
|
|
205.3
|
|
|
$ 680.5
|
Cost of
sales
|
2,294.1
|
|
1,708.7
|
|
199.5
|
|
|
559.0
|
Gross
profit
|
422.9
|
|
308.6
|
|
5.8
|
|
|
121.5
|
Selling, general and
administrative expenses
|
194.6
|
|
123.2
|
|
14.4
|
|
|
116.6
|
Acquisition
costs
|
13.0
|
|
—
|
|
25.9
|
|
|
13.4
|
Goodwill
impairment
|
11.8
|
|
—
|
|
—
|
|
|
—
|
Operating profit
(loss)
|
203.5
|
|
185.4
|
|
(34.5)
|
|
|
(8.5 )
|
Interest expense,
net
|
99.9
|
|
74.7
|
|
11.1
|
|
|
25.8
|
Loss on debt
extinguishment
|
60.7
|
|
—
|
|
—
|
|
|
—
|
Other, net
|
(11.3 )
|
|
17.8
|
|
1.5
|
|
|
2.4
|
Other expense,
net
|
149.3
|
|
92.5
|
|
12.6
|
|
|
28.2
|
Income (loss) before
tax
|
54.2
|
|
92.9
|
|
(47.1)
|
|
|
(36.7)
|
Income tax expense
(benefit)
|
(19.1 )
|
|
35.0
|
|
(15.2 )
|
|
|
(11.1)
|
Net income
(loss)
|
73.3
|
|
57.9
|
|
(31.9 )
|
|
|
(25.6 )
|
Income attributable
to noncontrolling interest
|
0.4
|
|
0.3
|
|
0.0
|
|
|
0.2
|
Net income (loss)
attributable to stockholders
|
$
72.9
|
|
57.6
|
|
(31.9 )
|
|
|
$ (25.8)
|
Weighted average
shares outstanding
|
67.1
|
|
67.1
|
|
67.1
|
|
|
17.7
|
Net income (loss) per
share attributable to stockholders
|
|
|
|
|
|
|
|
|
Basic
|
$
1.09
|
|
0.86
|
|
(0.48 )
|
|
|
$ (1.46
)
|
Diluted
|
1.06
|
|
0.86
|
|
(0.48 )
|
|
|
(1.46 )
|
METALDYNE
PERFORMANCE GROUP INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
|
|
Year Ended
December 31,
2014
|
|
Year Ended
December 31,
2013
|
|
Successor
Period
2012
|
|
|
Predecessor
Period
2012
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
73.3
|
|
57.9
|
|
(31.9 )
|
|
|
$ (25.6
)
|
Adjustments to
reconcile net income (loss) to cash provided by (used for)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
210.8
|
|
163.4
|
|
18.7
|
|
|
20.0
|
Debt fee
amortization
|
6.4
|
|
7.6
|
|
1.0
|
|
|
2.7
|
Loss on debt
extinguishment
|
60.7
|
|
—
|
|
—
|
|
|
—
|
Goodwill
impairment
|
11.8
|
|
—
|
|
—
|
|
|
—
|
(Gain) loss on fixed
asset dispositions
|
2.1
|
|
1.4
|
|
—
|
|
|
(1.1)
|
Deferred income
taxes
|
(88.4)
|
|
(9.2)
|
|
(17.4)
|
|
|
5.1
|
Recognition of
deferred gain
|
—
|
|
—
|
|
—
|
|
|
(0.7)
|
Recognition of
deferred revenue
|
(1.0 )
|
|
(1.3 )
|
|
(0.6 )
|
|
|
(1.6 )
|
Noncash interest
expense
|
1.0
|
|
1.0
|
|
—
|
|
|
—
|
Write-down of purchase
price receivable
|
—
|
|
10.1
|
|
—
|
|
|
—
|
Stock-based
compensation expense
|
17.3
|
|
6.2
|
|
0.1
|
|
|
—
|
Foreign currency
adjustment
|
(12.7)
|
|
2.2
|
|
1.8
|
|
|
—
|
Other
|
3.8
|
|
3.7
|
|
0.1
|
|
|
2.7
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Receivables,
net
|
20.2
|
|
(14.6 )
|
|
19.7
|
|
|
(8.9)
|
Inventories
|
(15.6)
|
|
(2.0 )
|
|
12.1
|
|
|
(1.1 )
|
Prepaid expenses and
other assets
|
(1.0 )
|
|
28.5
|
|
6.2
|
|
|
(31.8)
|
Accounts payable,
accrued liabilities and accrued compensation
|
22.6
|
|
(15.0)
|
|
(10.8 )
|
|
|
106.0
|
Long-term assets and
liabilities, other
|
(5.9 )
|
|
(5.6 )
|
|
(0.8 )
|
|
|
(1.0)
|
Net cash provided by
(used for) operating activities
|
305.4
|
|
234.3
|
|
(1.8)
|
|
|
64.7
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(156.4)
|
|
(122.3)
|
|
(10.4 )
|
|
|
(32.6 )
|
Proceeds from sale of
fixed assets
|
1.4
|
|
1.1
|
|
—
|
|
|
1.5
|
Capitalized patent
costs
|
(0.2)
|
|
(0.3)
|
|
(0.1 )
|
|
|
(0.2)
|
Grede Transaction, net
of cash acquired
|
(829.7 )
|
|
—
|
|
—
|
|
|
—
|
HHI Transaction, net
of cash acquired
|
—
|
|
—
|
|
(722.2)
|
|
|
—
|
Metaldyne Transaction,
net of cash acquired
|
—
|
|
—
|
|
(782.2 )
|
|
|
—
|
Release of escrow from
the Metaldyne Transaction
|
—
|
|
4.8
|
|
—
|
|
|
—
|
Net cash used for
investing activities
|
(984.9)
|
|
(116.7)
|
|
(1,514.9)
|
|
|
(31.3 )
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Cash
dividends
|
(111.3 )
|
|
(256.9 )
|
|
—
|
|
|
(70.0 )
|
Other stock
activity
|
(2.4)
|
|
0.6
|
|
—
|
|
|
—
|
Proceeds from stock
issuance
|
260.5
|
|
—
|
|
546.0
|
|
|
—
|
Borrowings of
short-term debt
|
388.8
|
|
545.6
|
|
6.0
|
|
|
38.9
|
Repayments of
short-term debt
|
(407.4)
|
|
(533.2)
|
|
—
|
|
|
(38.9 )
|
Proceeds of long-term
debt
|
2,658.3
|
|
240.0
|
|
1,040.3
|
|
|
49.9
|
Principal payments of
long-term debt
|
(1,952.1)
|
|
(59.9)
|
|
—
|
|
|
(2.8)
|
Payment of debt issue
costs
|
(45.4 )
|
|
(14.9 )
|
|
(34.9)
|
|
|
(2.5 )
|
Proceeds of other
debt
|
1.0
|
|
1.4
|
|
—
|
|
|
—
|
Principal payments of
other debt
|
(7.7)
|
|
(3.8)
|
|
(0.3 )
|
|
|
(1.9)
|
Payment of offering
related costs
|
(5.6 )
|
|
—
|
|
—
|
|
|
—
|
Payment of contingent
consideration for the Metaldyne Transaction
|
—
|
|
(10.0 )
|
|
—
|
|
|
—
|
Net cash provided by
(used for) financing activities
|
776.7
|
|
(91.1)
|
|
1,557.1
|
|
|
(27.3 )
|
Effect of exchange
rates on cash
|
(8.9)
|
|
1.4
|
|
(0.1)
|
|
|
0.3
|
Net increase in cash
and cash equivalents
|
$
88.3
|
|
27.9
|
|
40.3
|
|
|
$
6.4
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
68.2
|
|
40.3
|
|
—
|
|
|
$
4.2
|
Net increase in cash
and cash equivalents
|
88.3
|
|
27.9
|
|
40.3
|
|
|
6.4
|
Cash and cash
equivalents, end of period
|
$ 156.5
|
|
68.2
|
|
40.3
|
|
|
$
10.6
|
|
|
|
|
|
|
|
|
|
Supplementary cash
flow information:
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes, net
|
$
63.9
|
|
46.9
|
|
0.3
|
|
|
$
15.5
|
Cash paid for
interest
|
74.6
|
|
77.9
|
|
5.2
|
|
|
22.0
|
Noncash
transactions:
|
|
|
|
|
|
|
|
|
Capital expenditures
in accounts payables
|
36.2
|
|
15.4
|
|
18.2
|
|
|
2.4
|
METALDYNE
PERFORMANCE GROUP INC.
|
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA AND ADJUSTED FREE CASH
FLOW
|
(In
millions)
|
|
|
Full Year
|
|
Full Year
|
|
Q4
|
|
Q4
|
|
12/31/2014
|
|
12/31/2013
|
|
12/31/2014
|
|
12/31/2013
|
Net income
attributable to stockholders
|
$
72.9
|
|
57.6
|
|
10.2
|
|
4.0
|
Income attributable
to noncontrolling interest
|
0.4
|
|
0.3
|
|
0.2
|
|
-
|
Net income
(loss)
|
73.3
|
|
57.9
|
|
10.4
|
|
4.0
|
|
|
|
|
|
|
|
|
Addbacks to Arrive
at Unadjusted EBITDA
|
|
|
|
|
|
|
|
Interest expense,
net
|
99.9
|
|
74.7
|
|
29.6
|
|
20.7
|
Loss on debt
extinguishment
|
60.7
|
|
-
|
|
60.4
|
|
-
|
Income tax (benefit)
expense
|
(19.1)
|
|
35.0
|
|
(50.2)
|
|
8.4
|
Depreciation and
amortization
|
210.8
|
|
163.4
|
|
58.4
|
|
43.5
|
Unadjusted
EBITDA
|
425.6
|
|
331.0
|
|
108.6
|
|
76.6
|
|
|
|
|
|
|
|
|
Adjustments to
Arrive at Adjusted EBITDA
|
|
|
|
|
|
|
|
Foreign currency
(gains) losses
|
(15.7)
|
|
2.3
|
|
(4.2)
|
|
0.8
|
(Gain) loss on fixed
assets dispositions
|
2.1
|
|
1.4
|
|
0.7
|
|
0.7
|
Debt transaction
expenses
|
3.0
|
|
6.0
|
|
0.1
|
|
1.6
|
Stock-based
compensation expense
|
17.3
|
|
6.2
|
|
2.8
|
|
1.6
|
Sponsor management
fee
|
5.1
|
|
4.0
|
|
1.4
|
|
1.0
|
Non-recurring
acquisition and purchase accounting related items (1)
|
23.0
|
|
10.5
|
|
0.2
|
|
9.7
|
Non-recurring
operational items (2)
|
18.2
|
|
1.7
|
|
16.1
|
|
-
|
Adjusted
EBITDA
|
478.6
|
|
363.1
|
|
125.7
|
|
92.0
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
156.4
|
|
122.3
|
|
54.2
|
|
35.4
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flows
|
$ 322.2
|
|
240.8
|
|
71.5
|
|
56.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Acquisition and
related purchase accounting items including transaction costs,
adjustments to inventory step-ups and other.
|
|
|
|
|
|
|
|
|
|
(2) Non-recurring
operational items including charges for disposed operations,
impairment charges, insurance proceeds, curtailment gain and
other.
|
METALDYNE
PERFORMANCE GROUP INC.
|
US GAAP
RECONCILATION
|
(In millions
except per share data)
|
|
|
Full Year
|
|
Full Year
|
|
Q4
|
|
Q4
|
|
12/31/2014
|
|
12/31/2013
|
|
12/31/2014
|
|
12/31/2013
|
|
|
|
|
|
|
|
|
Net sales
|
$ 2,717.0
|
|
2,017.3
|
|
762.2
|
|
511.4
|
Grede pre-acquisition
net sales
|
427.0
|
|
1,035.6
|
|
-
|
|
243.7
|
Combined
Non-GAAP net sales
|
$ 3,144.0
|
|
3,052.9
|
|
762.2
|
|
755.1
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 478.6
|
|
363.1
|
|
125.7
|
|
92.0
|
Grede pre-acquisition
Adjusted EBITDA
|
66.5
|
|
145.7
|
|
-
|
|
36.6
|
Combined Adjusted
EBITDA
|
$ 545.1
|
|
508.8
|
|
125.7
|
|
128.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
EPS
|
$ 1.31
|
|
0.86
|
|
0.40
|
|
0.06
|
|
|
|
|
|
|
|
|
Reconciling
Items:
|
|
|
|
|
|
|
|
Goodwill
impairment
|
(0.17)
|
|
-
|
|
(0.17)
|
|
-
|
Loss on debt
extinguishment, net of tax
|
(0.54)
|
|
-
|
|
(0.54)
|
|
-
|
Tax benefit
from change in foreign earnings
reinvestment assertion
|
0.46
|
|
-
|
|
0.46
|
|
-
|
|
|
|
|
|
|
|
|
GAAP diluted
EPS
|
$ 1.06
|
|
0.86
|
|
0.15
|
|
0.06
|
|
|
|
|
|
|
|
|
METALDYNE
PERFORMANCE GROUP INC.
|
RECONCILIATION OF
2015 GUIDANCE OF NET INCOME TO ADJUSTED EBITDA
|
(In
millions)
|
|
|
2015
Guidance
|
|
2015
Guidance
|
|
|
Low End of
Range
|
|
High End of
Range
|
|
Net income
attributable to stockholders
|
$102.5
|
|
127.8
|
|
Income attributable
to noncontrolling interest
|
0.5
|
|
0.5
|
|
Net
income
|
102.9
|
|
128.3
|
|
|
|
|
|
|
Addbacks to Arrive
at Unadjusted EBITDA
|
|
|
|
|
Interest expense,
net
|
117.3
|
|
117.3
|
|
Income tax
expense
|
50.5
|
|
65.1
|
|
Depreciation and
amortization
|
234.2
|
|
234.2
|
|
Unadjusted
EBITDA
|
504.9
|
|
544.9
|
|
|
|
|
|
|
Adjustments to
Arrive at Adjusted EBITDA
|
|
|
|
|
Foreign currency
(gains) losses
|
(2.9)
|
|
(2.9)
|
|
Stock-based
compensation expense
|
16.6
|
|
16.6
|
|
Non-recurring
operational items (1)
|
1.4
|
|
1.4
|
|
Adjusted
EBITDA
|
$520.0
|
|
560.0
|
|
|
|
|
|
|
(1) Non-recurring
operational items including charges for disposed operations,
restructuring costs and other.
|
|
|
|
|
|
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SOURCE Metaldyne Performance Group