DETROIT, Aug. 2, 2019 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the second quarter 2019 and
updated its full year financial outlook.
Second Quarter 2019 Results
- Sales of $1.70 billion
- Net income attributable to AAM of $52.5
million, or 3.1% of sales
- Adjusted EBITDA of $266.0
million, or 15.6% of sales
- Diluted earnings per share of $0.45; Adjusted earnings per share of
$0.55
- Net cash provided by operating activities of $217.1 million; Adjusted free cash flow of
$119.3 million
"In the second quarter of 2019, AAM continued to improve its
operational performance with sequential quarterly margin increases
and strong free cash flow generation. However, we exited the
second quarter with softer sales than anticipated and we expect
this to continue to impact us in the second half of 2019," said
AAM's Chairman and Chief Executive Officer, David C. Dauch. "As we look towards the second
half of 2019, we are focused on efficiently operating our business
and adapting to the changing market demand."
AAM's sales in the second quarter of 2019 were $1.70 billion as compared to $1.90 billion in the second quarter of 2018.
AAM's net income in the second quarter of 2019 was $52.5 million, or $0.45 per share, as compared to $151.1 million, or $1.30 per share in the second 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 second quarter of 2019 were $0.55 compared to $1.23 in the second 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 second quarter of 2019, Adjusted EBITDA was
$266.0 million, or 15.6% of sales, as
compared to $347.9 million, or 18.3%
of sales, in the second quarter of 2018.
AAM's net cash provided by operating activities for the second
quarter of 2019 was $217.1
million.
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 second quarter of 2019 was $119.3 million.
AAM's 2019 Financial Outlook
AAM is experiencing lower
metal market pass throughs and lower than projected global
production volumes for certain programs we support including
in Asia, primarily China, and
global engine and transmission products. As a result, AAM has
revised its full year 2019 financial targets as follows:
- AAM is targeting sales in the range of $6.9 - $7.0 billion
in 2019.
- AAM is targeting Adjusted EBITDA in the range of $1.05 - $1.10
billion in 2019.
- AAM is targeting Adjusted free cash flow of approximately
$250 million in 2019, including the
reduction of estimated capital expenditures from approximately
$515 million to approximately
$485 million.
AAM's revised full year 2019 financial targets reflect:
- An estimate of production volumes for the remainder of 2019
based on internal and external sources and the current metal market
environment
- A reduction in profitability primarily associated with lower
sales and an increase in engineering, research and development
expenditures to support our future e-AAM hybrid and electric
driveline growth and
- Continued operational improvements in-line with previous
commentary.
Second Quarter 2019 Conference Call Information
A
conference call to review AAM's second 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
7793867. A replay will be available one hour after the call is
complete until August 9, 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 10132907.
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 and cost efficient 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 proposed trade agreements such as the 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 suppliers', our
customers' and their suppliers' ability to maintain satisfactory
labor relations and avoid work stoppages; our 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,704.3
|
|
|
$
|
1,900.9
|
|
|
$
|
3,423.5
|
|
|
$
|
3,759.3
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,456.0
|
|
|
1,569.5
|
|
|
2,953.0
|
|
|
3,111.6
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
248.3
|
|
|
331.4
|
|
|
470.5
|
|
|
647.7
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
91.3
|
|
|
95.0
|
|
|
182.0
|
|
|
192.3
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
24.9
|
|
|
24.8
|
|
|
49.9
|
|
|
49.7
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
12.2
|
|
|
36.8
|
|
|
24.3
|
|
|
55.1
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
business
|
—
|
|
|
(15.5)
|
|
|
—
|
|
|
(15.5)
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
119.9
|
|
|
190.3
|
|
|
214.3
|
|
|
366.1
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(56.2)
|
|
|
(54.4)
|
|
|
(109.6)
|
|
|
(107.6)
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.5
|
|
|
0.5
|
|
|
1.2
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(2.4)
|
|
|
(4.3)
|
|
|
(2.4)
|
|
|
(14.6)
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
15.6
|
|
|
—
|
|
|
15.6
|
|
|
Other income (expense),
net
|
(3.1)
|
|
|
5.6
|
|
|
(6.1)
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
58.7
|
|
|
153.3
|
|
|
97.4
|
|
|
260.7
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
6.0
|
|
|
2.0
|
|
|
3.0
|
|
|
19.9
|
|
|
|
|
|
|
|
|
|
|
Net income
|
52.7
|
|
|
151.3
|
|
|
94.4
|
|
|
240.8
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AAM
|
$
|
52.5
|
|
|
$
|
151.1
|
|
|
$
|
94.1
|
|
|
$
|
240.5
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.45
|
|
|
$
|
1.30
|
|
|
$
|
0.81
|
|
|
$
|
2.08
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
June 30,
2019
|
|
December 31,
2018
|
|
(in
millions)
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
248.8
|
|
|
$
|
476.4
|
|
|
Accounts receivable,
net
|
1,138.0
|
|
|
966.5
|
|
|
Inventories,
net
|
459.9
|
|
|
459.7
|
|
|
Prepaid expenses and
other
|
130.0
|
|
|
127.2
|
|
|
Total current
assets
|
1,976.7
|
|
|
2,029.8
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,544.4
|
|
|
2,514.4
|
|
|
Deferred income
taxes
|
51.9
|
|
|
45.5
|
|
|
Goodwill
|
1,140.9
|
|
|
1,141.8
|
|
|
Other intangible
assets, net
|
1,063.1
|
|
|
1,111.1
|
|
|
GM postretirement
cost sharing asset
|
224.1
|
|
|
219.4
|
|
|
Other assets and
deferred charges
|
546.8
|
|
|
448.7
|
|
|
Total
assets
|
$
|
7,547.9
|
|
|
$
|
7,510.7
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
|
26.0
|
|
|
$
|
121.6
|
|
|
Accounts
payable
|
853.4
|
|
|
840.2
|
|
|
Accrued compensation
and benefits
|
159.6
|
|
|
179.0
|
|
|
Deferred
revenue
|
33.6
|
|
|
44.3
|
|
|
Accrued expenses and
other
|
194.5
|
|
|
171.7
|
|
|
Total current
liabilities
|
1,267.1
|
|
|
1,356.8
|
|
|
|
|
|
|
Long-term debt,
net
|
3,674.2
|
|
|
3,686.8
|
|
|
Deferred
revenue
|
87.5
|
|
|
77.6
|
|
|
Deferred income
taxes
|
67.4
|
|
|
92.6
|
|
|
Postretirement
benefits and other long-term liabilities
|
879.5
|
|
|
810.6
|
|
|
Total
liabilities
|
5,975.7
|
|
|
6,024.4
|
|
|
|
|
|
|
Total AAM
stockholders' equity
|
1,569.5
|
|
|
1,483.9
|
|
|
Noncontrolling
interests in subsidiaries
|
2.7
|
|
|
2.4
|
|
|
Total stockholders'
equity
|
1,572.2
|
|
|
1,486.3
|
|
|
Total liabilities
and stockholders' equity
|
$
|
7,547.9
|
|
|
$
|
7,510.7
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(in
millions)
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
52.7
|
|
|
$
|
151.3
|
|
|
$
|
94.4
|
|
|
$
|
240.8
|
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
136.5
|
|
|
130.2
|
|
|
277.3
|
|
|
258.0
|
|
|
Other
|
|
27.9
|
|
|
(59.0)
|
|
|
(234.8)
|
|
|
(209.4)
|
|
|
Net cash provided
by operating activities
|
|
217.1
|
|
|
222.5
|
|
|
136.9
|
|
|
289.4
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(113.3)
|
|
|
(142.2)
|
|
|
(237.5)
|
|
|
(273.0)
|
|
|
Proceeds from sale of
property, plant and equipment
|
|
1.4
|
|
|
0.5
|
|
|
1.7
|
|
|
0.9
|
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3)
|
|
|
Proceeds from sale of
business, net
|
|
—
|
|
|
47.1
|
|
|
—
|
|
|
47.1
|
|
|
Other
|
|
(2.2)
|
|
|
—
|
|
|
(2.2)
|
|
|
(0.5)
|
|
|
Net cash used in
investing activities
|
|
(114.1)
|
|
|
(94.6)
|
|
|
(238.0)
|
|
|
(226.8)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(106.1)
|
|
|
(101.3)
|
|
|
(120.2)
|
|
|
(73.6)
|
|
|
Other
|
|
(0.2)
|
|
|
(1.4)
|
|
|
(7.5)
|
|
|
(5.8)
|
|
|
Net cash used in
financing activities
|
|
(106.3)
|
|
|
(102.7)
|
|
|
(127.7)
|
|
|
(79.4)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
—
|
|
|
(10.2)
|
|
|
1.2
|
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(3.3)
|
|
|
15.0
|
|
|
(227.6)
|
|
|
(21.1)
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
254.6
|
|
|
340.7
|
|
|
478.9
|
|
|
376.8
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
251.3
|
|
|
$
|
355.7
|
|
|
$
|
251.3
|
|
|
$
|
355.7
|
|
|
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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
52.7
|
|
|
$
|
151.3
|
|
|
$
|
94.4
|
|
|
$
|
240.8
|
|
|
Interest
expense
|
56.2
|
|
|
54.4
|
|
|
109.6
|
|
|
107.6
|
|
|
Income tax
expense
|
6.0
|
|
|
2.0
|
|
|
3.0
|
|
|
19.9
|
|
|
Depreciation and
amortization
|
136.5
|
|
|
130.2
|
|
|
277.3
|
|
|
258.0
|
|
|
EBITDA
|
251.4
|
|
|
337.9
|
|
|
484.3
|
|
|
626.3
|
|
|
Restructuring and
acquisition-related costs
|
12.2
|
|
|
36.8
|
|
|
24.3
|
|
|
55.1
|
|
|
Debt refinancing and
redemption costs
|
2.4
|
|
|
4.3
|
|
|
2.4
|
|
|
14.6
|
|
|
Gain on sale of
business
|
—
|
|
|
(15.5)
|
|
|
—
|
|
|
(15.5)
|
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
(15.6)
|
|
|
—
|
|
|
(15.6)
|
|
|
Adjusted
EBITDA
|
$
|
266.0
|
|
|
$
|
347.9
|
|
|
$
|
511.0
|
|
|
$
|
664.9
|
|
|
|
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Diluted earnings per
share
|
$
|
0.45
|
|
|
$
|
1.30
|
|
|
$
|
0.81
|
|
|
$
|
2.08
|
|
|
Restructuring and
acquisition-related costs
|
0.11
|
|
|
0.32
|
|
|
0.21
|
|
|
0.48
|
|
|
Debt refinancing and
redemption costs
|
0.02
|
|
|
0.04
|
|
|
0.02
|
|
|
0.13
|
|
|
Gain on sale of
business
|
—
|
|
|
(0.14)
|
|
|
—
|
|
|
(0.14)
|
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
(0.14)
|
|
|
—
|
|
|
(0.14)
|
|
|
Tax Cuts and Jobs Act
Transition Tax adjustment
|
—
|
|
|
—
|
|
|
(0.08)
|
|
|
—
|
|
|
Adjustments to
liability for unrecognized tax benefits
|
—
|
|
|
(0.17)
|
|
|
—
|
|
|
(0.17)
|
|
|
Tax effect of
adjustments
|
(0.03)
|
|
|
0.02
|
|
|
(0.05)
|
|
|
(0.03)
|
|
|
Adjusted earnings
per share
|
$
|
0.55
|
|
|
$
|
1.23
|
|
|
$
|
0.91
|
|
|
$
|
2.21
|
|
|
|
Adjusted earnings per
share are based on weighted average diluted shares outstanding of
116.1 million and 116.0 million for the three months ended on June
30, 2019 and 2018, respectively, and 116.0 million and 115.4
million for the six months ended on June 30, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
|
217.1
|
|
|
$
|
222.5
|
|
|
$
|
136.9
|
|
|
$
|
289.4
|
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(111.9)
|
|
|
(141.7)
|
|
|
(235.8)
|
|
|
(272.1)
|
|
|
Free cash
flow
|
105.2
|
|
|
80.8
|
|
|
(98.9)
|
|
|
17.3
|
|
|
Cash payments for
restructuring and acquisition-related costs
|
14.1
|
|
|
19.5
|
|
|
29.7
|
|
|
41.3
|
|
|
Adjusted free cash
flow
|
$
|
119.3
|
|
|
$
|
100.3
|
|
|
$
|
(69.2)
|
|
|
$
|
58.6
|
|
|
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 and six months ended on June 30,
2018 have been reclassified to Driveline and Metal Forming in the
tables below.
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,141.1
|
|
|
$
|
1,274.3
|
|
|
$
|
2,275.8
|
|
|
$
|
2,490.4
|
|
|
Metal
Forming
|
484.2
|
|
|
530.4
|
|
|
967.5
|
|
|
1,072.7
|
|
|
Casting
|
220.7
|
|
|
243.2
|
|
|
446.0
|
|
|
482.2
|
|
|
Total
Sales
|
1,846.0
|
|
|
2,047.9
|
|
|
3,689.3
|
|
|
4,045.3
|
|
|
Intersegment
Sales
|
(141.7)
|
|
|
(147.0)
|
|
|
(265.8)
|
|
|
(286.0)
|
|
|
Net External
Sales
|
$
|
1,704.3
|
|
|
$
|
1,900.9
|
|
|
$
|
3,423.5
|
|
|
$
|
3,759.3
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
|
Driveline
|
$
|
152.9
|
|
|
$
|
204.3
|
|
|
$
|
290.1
|
|
|
$
|
394.0
|
|
|
Metal
Forming
|
88.0
|
|
|
116.7
|
|
|
173.3
|
|
|
222.4
|
|
|
Casting
|
25.1
|
|
|
26.9
|
|
|
47.6
|
|
|
48.5
|
|
|
Total Segment
Adjusted EBITDA
|
$
|
266.0
|
|
|
$
|
347.9
|
|
|
$
|
511.0
|
|
|
$
|
664.9
|
|
|
Full Year 2019
Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net income
|
$
|
190
|
|
|
$
|
230
|
|
|
Interest
expense
|
220
|
|
|
220
|
|
|
Income tax
expense
|
25
|
|
|
35
|
|
|
Depreciation and
amortization
|
565
|
|
|
565
|
|
|
Full year 2019
targeted EBITDA
|
1,000
|
|
|
1,050
|
|
|
Restructuring,
acquisition-related and debt refinancing and
redemption costs
|
50
|
|
|
50
|
|
|
Full year 2019
targeted Adjusted EBITDA
|
$
|
1,050
|
|
|
$
|
1,100
|
|
|
Adjusted Free
Cash Flow
|
|
|
|
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
|
680
|
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(485)
|
|
|
Full year 2019
targeted Free Cash Flow
|
195
|
|
|
Cash payments for
restructuring and acquisition-related costs
|
55
|
|
|
Full year 2019
targeted Adjusted Free Cash Flow
|
$
|
250
|
|
|
|
|
|
|
________________
|
(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 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.