DETROIT, May 3, 2019 /PRNewswire/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its
financial results for the first quarter 2019.
First Quarter 2019 Results
- Sales of $1.72 billion
- Net income attributable to AAM of $41.6
million, or 2.4% of sales
- Adjusted EBITDA of $245.0
million, or 14.3% of sales
- Diluted earnings per share of $0.36; Adjusted earnings per share of
$0.36
"In the first quarter of 2019, AAM improved operational
performance while supporting our customers on several important
program launches," said AAM's Chairman and Chief Executive Officer,
David C. Dauch. "We look
forward to building momentum throughout the year and achieving our
launch and operational performance objectives while enhancing our
profitability and free cash flow generation."
AAM's sales in the first quarter of 2019 were $1.72 billion as compared to $1.86 billion in the first quarter of 2018.
AAM's net income in the first quarter of 2019 was $41.6 million, or $0.36 per share, as compared to net income of
$89.4 million, or $0.78 per share in the first quarter of 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 on sale of business, goodwill impairments and non-recurring
items, including the tax effect thereon. Adjusted earnings
per share in the first quarter of 2019 were $0.36 compared to $0.98 in the first quarter of 2018.
AAM defines EBITDA to be earnings before interest expense,
income taxes, depreciation and amortization. Adjusted EBITDA is
defined as EBITDA excluding the impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
gain on sale of business, goodwill impairments and non-recurring
items. In the first quarter of 2019, Adjusted EBITDA was
$245.0 million, or 14.3% of sales, as
compared to $317.0 million, or 17.1%
of sales, in the first quarter of 2018.
AAM's net cash used by operating activities for the first
quarter of 2019 was $80.2
million.
AAM defines free cash flow to be net cash provided by (used in)
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 first quarter of 2019 was a
seasonal use of $188.5 million.
AAM to Redeem $100 million of
its 7.75% Notes
AAM has issued a notice of redemption for the remaining
$100 million of its 7.75% senior
unsecured notes due 2019 (7.75% Notes), plus accrued and unpaid
interest to be paid on May 28, 2019.
AAM will use cash on hand to settle the redemption of the 7.75%
Notes.
AAM's 2019 Financial Outlook
AAM's previously stated 2019 full year targets remain
unchanged. As a result of slower than expected customer
launch curves and lower anticipated production volumes for certain
programs, we currently project that we are trending towards the low
end of our ranges.
- AAM is targeting sales in the range of $7.3 to $7.4
billion in 2019.
- AAM is targeting Adjusted EBITDA in the range of $1.2 to $1.25
billion in 2019.
- AAM is targeting Adjusted free cash flow in the range of
$350 to $400
million in 2019.
Contemplating customer launch timing and planned downtime, AAM
is targeting sales in the range of $1.75 to $1.8
billion and Adjusted EBITDA in the range of $270 to $280
million for the second quarter of 2019.
First Quarter 2019 Conference Call Information
A conference call to review AAM's first quarter 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
8939365. A replay will be available one hour after the call is
complete until May 10, 2019 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 10130211.
Non-GAAP Financial Information
In addition to the results reported in accordance with
accounting principles generally accepted in the United States of America (GAAP) included
within this press release, AAM has provided certain information,
which includes non-GAAP financial measures such as Adjusted EBITDA,
Adjusted earnings per share and Adjusted free cash flow. Such
information is reconciled to its closest GAAP measure in accordance
with Securities and Exchange Commission rules and is included in
the attached supplemental data.
Certain of the forward-looking financial measures included in
this earnings release are provided on a non-GAAP basis. A
reconciliation of non-GAAP forward-looking financial measures to
the most directly comparable forward-looking financial measures
calculated and presented in accordance with GAAP has been
provided. The amounts in these reconciliations are based on
our current estimates and actual results may differ materially from
these forward-looking estimates for many reasons, including
potential event driven transactional and other non-core operating
items and their related effects in any future period, the magnitude
of which may be significant.
Management believes that these non-GAAP financial measures are
useful to management, investors, and banking institutions in their
analysis of the Company's business and operating performance.
Management also uses this information for operational planning and
decision-making purposes.
Non-GAAP financial measures are not and should not be considered
a substitute for any GAAP measure. Additionally, non-GAAP financial
measures as presented by AAM may not be comparable to similarly
titled measures reported by other companies.
Company Description
AAM (NYSE:AXL) delivers POWER that moves the world. As a leading
global tier 1 automotive supplier, AAM designs, engineers and
manufactures driveline, metal forming and casting technologies that
are making the next generation of vehicles smarter, lighter, safer
and more efficient. Headquartered in Detroit, AAM has over 25,000 associates
operating at nearly 90 facilities in 17 countries to support our
customers on global and regional platforms with a focus on quality,
operational excellence and technology leadership. To learn
more, visit aam.com.
Forward-Looking Statements
In this earnings release, we make statements concerning our
expectations, beliefs, plans, objectives, goals, strategies, and
future events or performance. Such statements are "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and relate to trends and events that may affect
our future financial position and operating results. The terms such
as "will," "may," "could," "would," "plan," "believe," "expect,"
"anticipate," "intend," "project," "target," and similar words or
expressions, as well as statements in future tense, are intended to
identify forward-looking statements. Forward-looking statements
should not be read as a guarantee of future performance or results,
and will not necessarily be accurate indications of the times at,
or by, which such performance or results will be achieved.
Forward-looking statements are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events and are
subject to risks and may differ materially from those expressed in
or suggested by the forward-looking statements. Important factors
that could cause such differences include, but are not limited to:
reduced purchases of our products by General Motors Company (GM),
FCA US LLC (FCA), or other customers; our ability to respond to
changes in technology, increased competition or pricing pressures;
our ability to develop and produce new products that reflect market
demand; our ability or our customers' and suppliers' ability to
successfully launch new product programs on a timely basis;
lower-than-anticipated market acceptance of new or existing
products; our ability to attract new customers and programs for new
products; an impairment of our goodwill, other intangible assets,
or long-lived assets if our business or market conditions indicate
that the carrying values of those assets exceed their fair values;
reduced demand for our customers' products (particularly light
trucks and sport utility vehicles (SUVs) produced by GM and FCA);
risks inherent in our global operations (including tariffs and the
potential consequences thereof to us, our suppliers, and our
customers and their suppliers, adverse changes in trade agreements,
such as NAFTA or USMCA, immigration policies, political stability,
taxes and other law changes, potential disruptions of production
and supply, and currency rate fluctuations); a significant
disruption in operations at one or more of our key manufacturing
facilities; global economic conditions; liabilities arising from
warranty claims, product recall or field actions, product liability
and legal proceedings to which we are or may become a party, or the
impact of product recall or field actions on our customers; risks
related to a failure of our information technology systems and
networks, and risks associated with current and emerging technology
threats and damage from computer viruses, unauthorized access,
cyber attack and other similar disruptions; supply shortages or
price increases in raw material and/or freight, utilities or other
operating supplies for us or our customers as a result of natural
disasters or otherwise; our ability to successfully integrate the
business and information systems of MPG and to realize the
anticipated benefits of the merger; negative or unexpected tax
consequences; our ability to achieve the level of cost reductions
required to sustain global cost competitiveness; our ability to
realize the expected revenues from our new and incremental business
backlog; our ability to maintain satisfactory labor relations and
avoid work stoppages; our suppliers', our customers' and their
suppliers' ability to maintain satisfactory labor relations and
avoid work stoppages; price volatility in, or reduced availability
of, fuel; potential liabilities or litigation relating to, or
assumed in, the MPG merger; potential adverse reactions or changes
to business relationships resulting from the completion of the
merger with MPG; our ability to protect our intellectual property
and successfully defend against assertions made against us; our
ability to attract and retain key associates; availability of
financing for working capital, capital expenditures, research and
development (R&D) or other general corporate purposes including
acquisitions, as well as our ability to comply with financial
covenants; our customers' and suppliers' availability of financing
for working capital, capital expenditures, R&D or other general
corporate purposes; changes in liabilities arising from pension and
other postretirement benefit obligations; risks of noncompliance
with environmental laws and regulations or risks of environmental
issues that could result in unforeseen costs at our current and
former facilities, or reputational damage; adverse changes in laws,
government regulations or market conditions affecting our products
or our customers' products; our ability or our customers' and
suppliers' ability to comply with regulatory requirements and the
potential costs of such compliance; and other unanticipated events
and conditions that may hinder our ability to compete. It is not
possible to foresee or identify all such factors and we make no
commitment to update any forward-looking statement or to disclose
any facts, events or circumstances after the date hereof that may
affect the accuracy of any forward-looking statement.
For more information:
Investor Contact
Jason P. Parsons
Director, Investor Relations
(313) 758-2404
jason.parsons@aam.com
Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
Or visit the AAM website at www.aam.com.
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2019
|
|
2018
|
|
(in millions,
except per share data)
|
|
|
|
|
|
Net sales
|
$
|
1,719.2
|
|
|
$
|
1,858.4
|
|
|
|
|
|
|
Cost of goods
sold
|
1,497.0
|
|
|
1,542.1
|
|
|
|
|
|
|
Gross
profit
|
222.2
|
|
|
316.3
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
90.7
|
|
|
97.3
|
|
|
|
|
|
|
Amortization of
intangible assets
|
25.0
|
|
|
24.9
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
12.1
|
|
|
18.3
|
|
|
|
|
|
|
Operating
income
|
94.4
|
|
|
175.8
|
|
|
|
|
|
|
Interest
expense
|
(53.4)
|
|
|
(53.2)
|
|
|
|
|
|
|
Investment
income
|
0.7
|
|
|
0.5
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
(10.3)
|
|
|
Other expense,
net
|
(3.0)
|
|
|
(5.4)
|
|
|
|
|
|
|
Income before income
taxes
|
38.7
|
|
|
107.4
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(3.0)
|
|
|
17.9
|
|
|
|
|
|
|
Net income
|
41.7
|
|
|
89.5
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.1)
|
|
|
(0.1)
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
41.6
|
|
|
$
|
89.4
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.36
|
|
|
$
|
0.78
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
(in
millions)
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
252.1
|
|
|
$
|
476.4
|
|
|
Accounts receivable,
net
|
1,202.1
|
|
|
966.5
|
|
|
Inventories,
net
|
452.5
|
|
|
459.7
|
|
|
Prepaid expenses and
other
|
132.2
|
|
|
127.2
|
|
|
Total current
assets
|
2,038.9
|
|
|
2,029.8
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,537.6
|
|
|
2,514.4
|
|
|
Deferred income
taxes
|
45.6
|
|
|
45.5
|
|
|
Goodwill
|
1,138.3
|
|
|
1,141.8
|
|
|
Other intangible
assets, net
|
1,087.5
|
|
|
1,111.1
|
|
|
GM postretirement
cost sharing asset
|
221.9
|
|
|
219.4
|
|
|
Other assets and
deferred charges
|
545.7
|
|
|
448.7
|
|
|
Total
assets
|
$
|
7,615.5
|
|
|
$
|
7,510.7
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
|
118.6
|
|
|
$
|
121.6
|
|
|
Accounts
payable
|
882.1
|
|
|
840.2
|
|
|
Accrued compensation
and benefits
|
155.7
|
|
|
179.0
|
|
|
Deferred
revenue
|
39.0
|
|
|
44.3
|
|
|
Accrued expenses and
other
|
196.1
|
|
|
171.7
|
|
|
Total current
liabilities
|
1,391.5
|
|
|
1,356.8
|
|
|
|
|
|
|
Long-term debt,
net
|
3,678.9
|
|
|
3,686.8
|
|
|
Deferred
revenue
|
76.7
|
|
|
77.6
|
|
|
Deferred income
taxes
|
75.1
|
|
|
92.6
|
|
|
Postretirement
benefits and other long-term liabilities
|
869.5
|
|
|
810.6
|
|
|
Total
liabilities
|
6,091.7
|
|
|
6,024.4
|
|
|
|
|
|
|
Total AAM
stockholders' equity
|
1,521.3
|
|
|
1,483.9
|
|
|
Noncontrolling
interests in subsidiaries
|
2.5
|
|
|
2.4
|
|
|
Total stockholders'
equity
|
1,523.8
|
|
|
1,486.3
|
|
|
Total liabilities
and stockholders' equity
|
$
|
7,615.5
|
|
|
$
|
7,510.7
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(in
millions)
|
|
Operating
activities
|
|
|
|
|
|
Net income
|
|
$
|
41.7
|
|
|
$
|
89.5
|
|
|
Adjustments to
reconcile net income to net cash provided by (used in)
operating
activities
|
|
|
|
|
|
Depreciation and
amortization
|
|
140.8
|
|
|
127.8
|
|
|
Other
|
|
(262.7)
|
|
|
(150.4)
|
|
|
Net cash provided
by (used in) operating activities
|
|
(80.2)
|
|
|
66.9
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(124.2)
|
|
|
(130.8)
|
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.3
|
|
|
0.4
|
|
|
Other
|
|
—
|
|
|
(1.8)
|
|
|
Net cash used in
investing activities
|
|
(123.9)
|
|
|
(132.2)
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Net debt
activity
|
|
(14.1)
|
|
|
27.7
|
|
|
Other
|
|
(7.3)
|
|
|
(4.4)
|
|
|
Net cash provided
by (used in) financing activities
|
|
(21.4)
|
|
|
23.3
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
1.2
|
|
|
5.9
|
|
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(224.3)
|
|
|
(36.1)
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
478.9
|
|
|
376.8
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
254.6
|
|
|
$
|
340.7
|
|
|
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
|
|
March
31,
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
|
|
|
|
Net income
|
$
|
41.7
|
|
|
$
|
89.5
|
|
|
Interest
expense
|
53.4
|
|
|
53.2
|
|
|
Income tax expense
(benefit)
|
(3.0)
|
|
|
17.9
|
|
|
Depreciation and
amortization
|
140.8
|
|
|
127.8
|
|
|
EBITDA
|
232.9
|
|
|
288.4
|
|
|
Restructuring and
acquisition-related costs
|
12.1
|
|
|
18.3
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
10.3
|
|
|
Adjusted
EBITDA
|
$
|
245.0
|
|
|
$
|
317.0
|
|
|
|
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2019
|
|
2018
|
|
Diluted earnings per
share
|
$
|
0.36
|
|
|
$
|
0.78
|
|
|
Restructuring and
acquisition-related costs
|
0.10
|
|
|
0.16
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
0.09
|
|
|
Non-recurring
items:
|
|
|
|
|
Tax Cuts and Jobs Act
Transition Tax adjustment
|
(0.08)
|
|
|
—
|
|
|
Tax effect of
adjustments
|
(0.02)
|
|
|
(0.05)
|
|
|
Adjusted earnings
per share
|
$
|
0.36
|
|
|
$
|
0.98
|
|
Adjusted earnings per share are based on weighted average
diluted shares outstanding of 115.8 million and 114.7 million for
the three months ended on March 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
|
|
March
31,
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
Net cash provided by
(used in) operating activities
|
$
|
(80.2)
|
|
|
$
|
66.9
|
|
|
Capital expenditures
net of proceeds from the sale of property, plant and
equipment
|
(123.9)
|
|
|
(130.4)
|
|
|
Free cash
flow
|
(204.1)
|
|
|
(63.5)
|
|
|
Cash payments for
restructuring and acquisition-related costs
|
15.6
|
|
|
21.8
|
|
|
Adjusted free cash
flow
|
$
|
(188.5)
|
|
|
$
|
(41.7)
|
|
|
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. As a result, our business is now organized into
Driveline,
Metal Forming and Casting segments. The Powertrain Sales and
Segment Adjusted EBITDA amounts previously reported for the
three
months ended March 31, 2018 have been reclassified to Driveline and
Metal Forming in the tables below.
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
Segment
Sales
|
|
|
|
|
Driveline
|
$
|
1,134.7
|
|
|
$
|
1,216.1
|
|
|
Metal
Forming
|
483.3
|
|
|
542.3
|
|
|
Casting
|
225.3
|
|
|
239.0
|
|
|
Total
Sales
|
1,843.3
|
|
|
1,997.4
|
|
|
Intersegment
Sales
|
(124.1)
|
|
|
(139.0)
|
|
|
Net External
Sales
|
$
|
1,719.2
|
|
|
$
|
1,858.4
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
Driveline
|
$
|
137.2
|
|
|
$
|
189.7
|
|
|
Metal
Forming
|
85.3
|
|
|
105.7
|
|
|
Casting
|
22.5
|
|
|
21.6
|
|
|
Total Segment
Adjusted EBITDA
|
$
|
245.0
|
|
|
$
|
317.0
|
|
|
Full Year 2019
Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net income
|
$
|
285
|
|
|
$
|
325
|
|
|
Interest
expense
|
225
|
|
|
225
|
|
|
Income tax
expense
|
70
|
|
|
80
|
|
|
Depreciation and
amortization
|
570
|
|
|
570
|
|
|
Full year 2019
targeted EBITDA
|
1,150
|
|
|
1,200
|
|
|
Restructuring and
acquisition-related costs
|
50
|
|
|
50
|
|
|
Full year 2019
targeted Adjusted EBITDA
|
$
|
1,200
|
|
|
$
|
1,250
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
|
810
|
|
|
$
|
860
|
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(515)
|
|
|
(515)
|
|
|
Full year 2019
targeted Free Cash Flow
|
295
|
|
|
345
|
|
|
Cash payments for
restructuring and acquisition-related costs
|
55
|
|
|
55
|
|
|
Full year 2019
targeted Adjusted Free Cash Flow
|
$
|
350
|
|
|
$
|
400
|
|
________________
|
(a)
|
We define EBITDA to
be earnings before interest expense, income taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding
the impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, gain on sale of a business,
goodwill impairments and non-recurring items. We believe that
EBITDA and Adjusted EBITDA are meaningful measures of performance
as they are commonly utilized by management and investors to
analyze operating performance and entity valuation. Our management,
the investment community and the banking institutions routinely use
EBITDA and Adjusted EBITDA, together with other measures, to
measure our operating performance relative to other Tier 1
automotive suppliers. We also use Segment Adjusted EBITDA as the
measure of earnings to assess the performance of each segment and
determine the resources to be allocated to the segments. EBITDA and
Adjusted EBITDA should not be construed as income from operations,
net income or cash flow from operating activities as determined
under GAAP. Other companies may calculate EBITDA and Adjusted
EBITDA differently.
|
|
|
|
(b)
|
We define Adjusted
earnings per share to be diluted earnings per share excluding the
impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, gain on sale of a business,
goodwill impairments and non-recurring items, including the tax
effect thereon. We believe Adjusted earnings per share is a
meaningful measure as it is commonly utilized by management and
investors in assessing ongoing financial performance that provides
improved comparability between periods through the exclusion of
certain items that management believes are not indicative of core
operating performance and which may obscure underlying business
results and trends. Other companies may calculate Adjusted
earnings per share differently.
|
|
|
|
(c)
|
We define free cash
flow to be net cash provided by (used in) 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.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/aam-reports-first-quarter-2019-financial-results-300843456.html
SOURCE American Axle & Manufacturing Holdings, Inc.