DETROIT, Nov. 1, 2019 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the third quarter 2019 and
updated its full year financial outlook.
Third Quarter 2019 Results
- Sales of $1.68 billion
- Net loss attributable to AAM of $124.2
million, or (7.4)% of sales, which includes the impact of a
pre-tax impairment charge related the announced sale of our U.S.
iron casting operations of $225.0
million
- Adjusted EBITDA of $265.8
million, or 15.8% of sales
- Diluted loss per share of $1.10;
Adjusted earnings per share of $0.58
- Net cash provided by operating activities of $241.7 million; Adjusted free cash flow of
$160.5 million
- AAM's third quarter financial results were unfavorably impacted
by a work stoppage at our largest customer (GM work stoppage) that
began on September 15, 2019.
"AAM's financial results in the third quarter of 2019 reflect
solid operating performance despite lower than expected production
volumes resulting from the GM work stoppage," said AAM's Chairman
and Chief Executive Officer, David C.
Dauch. "The strong free cash flow generated during the
quarter, along with the announced sale of our U.S. iron casting
operations, position us to continue to deliver on our commitment to
reduce debt and strengthen our financial profile."
AAM's sales in the third quarter of 2019 were $1.68 billion as compared to $1.82 billion in the third quarter of 2018.
AAM estimates that our sales in the third quarter of 2019 were
unfavorably impacted by the GM work stoppage by approximately
$57 million.
AAM's net loss in the third quarter of 2019 was $124.2 million, or $1.10 per share, as compared to net income of
$63.8 million, or $0.55 per share in the third 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, impairment charges and non-recurring
items, including the tax effect thereon. Adjusted earnings
per share in the third quarter of 2019 were $0.58 compared to $0.63 in the third quarter of 2018.
AAM estimates that our net loss in the third quarter of 2019 was
unfavorably impacted by the GM work stoppage by approximately
$14 million, or $0.12 per share.
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, impairment charges and non-recurring
items. In the third quarter of 2019, Adjusted EBITDA was
$265.8 million, or 15.8% of sales, as
compared to $275.0 million, or 15.1%
of sales, in the third quarter of 2018. AAM estimates that
our Adjusted EBITDA in the third quarter of 2019 was unfavorably
impacted by the GM work stoppage by approximately $18 million.
AAM's net cash provided by operating activities for the third
quarter of 2019 was $241.7
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 third quarter of 2019 was $160.5 million.
AAM's 2019 Financial Outlook
AAM has revised its 2019
financial targets to reflect the expected impact of the GM work
stoppage on our full year sales, which we estimate to be
approximately $250 million. These
targets also reflect the impact of lower metal market passthroughs
and foreign currency translation of approximately $50 million and assume a full year of financial
results from our U.S. iron casting operations.
AAM's revised full year 2019 financial targets are as
follows:
- AAM is targeting sales of approximately $6.6 billion.
- AAM is targeting Adjusted EBITDA in the range of $950 - $975
million.
- AAM is targeting Adjusted free cash flow of approximately
$175 million.
Third Quarter 2019 Conference Call Information
A
conference call to review AAM's third 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
0766066. A replay will be available one hour after the call is
complete until November 8, 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 10135307.
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; our suppliers',
our customers' and their suppliers' ability to maintain
satisfactory labor relations and avoid work stoppages; 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,677.4
|
|
|
$
|
1,817.0
|
|
|
$
|
5,100.9
|
|
|
$
|
5,576.3
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,428.7
|
|
|
1,549.6
|
|
|
4,381.7
|
|
|
4,661.2
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
248.7
|
|
|
267.4
|
|
|
719.2
|
|
|
915.1
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
92.7
|
|
|
96.3
|
|
|
274.7
|
|
|
288.6
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
23.7
|
|
|
24.8
|
|
|
73.6
|
|
|
74.5
|
|
|
|
|
|
|
|
|
|
|
Impairment
charge
|
225.0
|
|
|
—
|
|
|
225.0
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
11.7
|
|
|
11.7
|
|
|
36.0
|
|
|
66.8
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.5)
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(104.4)
|
|
|
134.6
|
|
|
109.9
|
|
|
500.7
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(54.3)
|
|
|
(54.9)
|
|
|
(163.9)
|
|
|
(162.5)
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
2.2
|
|
|
0.6
|
|
|
3.4
|
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(5.1)
|
|
|
—
|
|
|
(7.5)
|
|
|
(14.6)
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
|
Other expense,
net
|
(2.9)
|
|
|
(4.8)
|
|
|
(9.0)
|
|
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(164.5)
|
|
|
75.5
|
|
|
(67.1)
|
|
|
336.2
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(40.4)
|
|
|
11.5
|
|
|
(37.4)
|
|
|
31.4
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(124.1)
|
|
|
64.0
|
|
|
(29.7)
|
|
|
304.8
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.1)
|
|
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AAM
|
$
|
(124.2)
|
|
|
$
|
63.8
|
|
|
$
|
(30.1)
|
|
|
$
|
304.3
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(1.10)
|
|
|
$
|
0.55
|
|
|
$
|
(0.27)
|
|
|
$
|
2.63
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
|
(in
millions)
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
375.1
|
|
|
$
|
476.4
|
|
|
Accounts receivable,
net
|
976.9
|
|
|
966.5
|
|
|
Inventories,
net
|
403.1
|
|
|
459.7
|
|
|
Prepaid expenses and
other
|
130.9
|
|
|
127.2
|
|
|
Current assets
held-for-sale
|
312.2
|
|
|
—
|
|
|
Total current
assets
|
2,198.2
|
|
|
2,029.8
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,326.4
|
|
|
2,514.4
|
|
|
Deferred income
taxes
|
61.9
|
|
|
45.5
|
|
|
Goodwill
|
1,127.5
|
|
|
1,141.8
|
|
|
Other intangible
assets, net
|
881.5
|
|
|
1,111.1
|
|
|
GM postretirement
cost sharing asset
|
223.1
|
|
|
219.4
|
|
|
Other assets and
deferred charges
|
497.7
|
|
|
448.7
|
|
|
Total
assets
|
$
|
7,316.3
|
|
|
$
|
7,510.7
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
|
23.8
|
|
|
$
|
121.6
|
|
|
Accounts
payable
|
703.7
|
|
|
840.2
|
|
|
Accrued compensation
and benefits
|
165.1
|
|
|
179.0
|
|
|
Deferred
revenue
|
22.6
|
|
|
44.3
|
|
|
Accrued expenses and
other
|
220.2
|
|
|
171.7
|
|
|
Current liabilities
held-for-sale
|
101.7
|
|
|
—
|
|
|
Total current
liabilities
|
1,237.1
|
|
|
1,356.8
|
|
|
|
|
|
|
Long-term debt,
net
|
3,673.3
|
|
|
3,686.8
|
|
|
Deferred
revenue
|
83.1
|
|
|
77.6
|
|
|
Deferred income
taxes
|
21.6
|
|
|
92.6
|
|
|
Postretirement
benefits and other long-term liabilities
|
891.6
|
|
|
810.6
|
|
|
Total
liabilities
|
5,906.7
|
|
|
6,024.4
|
|
|
|
|
|
|
Total AAM
stockholders' equity
|
1,406.8
|
|
|
1,483.9
|
|
|
Noncontrolling
interests in subsidiaries
|
2.8
|
|
|
2.4
|
|
|
Total stockholders'
equity
|
1,409.6
|
|
|
1,486.3
|
|
|
Total liabilities
and stockholders' equity
|
$
|
7,316.3
|
|
|
$
|
7,510.7
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(in
millions)
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(124.1)
|
|
|
$
|
64.0
|
|
|
$
|
(29.7)
|
|
|
$
|
304.8
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided
by operating activities
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
134.2
|
|
|
132.9
|
|
|
411.5
|
|
|
390.9
|
|
|
Other
|
|
231.6
|
|
|
26.9
|
|
|
(3.2)
|
|
|
(182.5)
|
|
|
Net cash provided
by operating activities
|
|
241.7
|
|
|
223.8
|
|
|
378.6
|
|
|
513.2
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(97.8)
|
|
|
(118.8)
|
|
|
(335.3)
|
|
|
(391.8)
|
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.3
|
|
|
2.3
|
|
|
2.0
|
|
|
3.2
|
|
|
Proceeds from sale of
business, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.1
|
|
|
Other
|
|
—
|
|
|
—
|
|
|
(2.2)
|
|
|
(1.8)
|
|
|
Net cash used in
investing activities
|
|
(97.5)
|
|
|
(116.5)
|
|
|
(335.5)
|
|
|
(343.3)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(12.4)
|
|
|
(20.0)
|
|
|
(132.6)
|
|
|
(93.6)
|
|
|
Other
|
|
—
|
|
|
(0.1)
|
|
|
(7.5)
|
|
|
(5.9)
|
|
|
Net cash used in
financing activities
|
|
(12.4)
|
|
|
(20.1)
|
|
|
(140.1)
|
|
|
(99.5)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(5.5)
|
|
|
(1.0)
|
|
|
(4.3)
|
|
|
(5.3)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and
restricted cash
|
|
126.3
|
|
|
86.2
|
|
|
(101.3)
|
|
|
65.1
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
251.3
|
|
|
355.7
|
|
|
478.9
|
|
|
376.8
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
377.6
|
|
|
$
|
441.9
|
|
|
$
|
377.6
|
|
|
$
|
441.9
|
|
|
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(124.1)
|
|
|
$
|
64.0
|
|
|
$
|
(29.7)
|
|
|
$
|
304.8
|
|
|
Interest
expense
|
54.3
|
|
|
54.9
|
|
|
163.9
|
|
|
162.5
|
|
|
Income tax expense
(benefit)
|
(40.4)
|
|
|
11.5
|
|
|
(37.4)
|
|
|
31.4
|
|
|
Depreciation and
amortization
|
134.2
|
|
|
132.9
|
|
|
411.5
|
|
|
390.9
|
|
|
EBITDA
|
24.0
|
|
|
263.3
|
|
|
508.3
|
|
|
889.6
|
|
|
Restructuring and
acquisition-related costs
|
11.7
|
|
|
11.7
|
|
|
36.0
|
|
|
66.8
|
|
|
Debt refinancing and
redemption costs
|
5.1
|
|
|
—
|
|
|
7.5
|
|
|
14.6
|
|
|
Impairment
charge
|
225.0
|
|
|
—
|
|
|
225.0
|
|
|
—
|
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.5)
|
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.6)
|
|
|
Adjusted
EBITDA
|
$
|
265.8
|
|
|
$
|
275.0
|
|
|
$
|
776.8
|
|
|
$
|
939.9
|
|
|
|
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Diluted earnings
(loss) per share
|
$
|
(1.10)
|
|
|
$
|
0.55
|
|
|
$
|
(0.27)
|
|
|
$
|
2.63
|
|
|
Restructuring and
acquisition-related costs
|
0.10
|
|
|
0.10
|
|
|
0.32
|
|
|
0.58
|
|
|
Debt refinancing and
redemption costs
|
0.05
|
|
|
—
|
|
|
0.07
|
|
|
0.13
|
|
|
Impairment
charge
|
2.00
|
|
|
—
|
|
|
2.00
|
|
|
—
|
|
|
Gain on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.14)
|
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
|
Tax Cuts and Jobs Act
Transition Tax adjustment
|
—
|
|
|
—
|
|
|
(0.08)
|
|
|
—
|
|
|
Gain on settlement of
capital lease
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.14)
|
|
|
Adjustments to
liability for unrecognized tax benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.17)
|
|
|
Tax effect of
adjustments
|
(0.45)
|
|
|
(0.02)
|
|
|
(0.50)
|
|
|
(0.06)
|
|
|
Adjustment for
anti-dilutive effect
|
(0.02)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
Adjusted earnings
per share
|
$
|
0.58
|
|
|
$
|
0.63
|
|
|
$
|
1.49
|
|
|
$
|
2.83
|
|
|
|
|
|
Adjusted earnings per
share are based on weighted average diluted shares outstanding of
115.8 million and 116.3 million for the three months ended on
September 30, 2019 and 2018, respectively, and 115.6 million and
115.7 million for the nine months ended on September 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
|
241.7
|
|
|
$
|
223.8
|
|
|
$
|
378.6
|
|
|
$
|
513.2
|
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(97.5)
|
|
|
(116.5)
|
|
|
(333.3)
|
|
|
(388.6)
|
|
|
Free cash
flow
|
144.2
|
|
|
107.3
|
|
|
45.3
|
|
|
124.6
|
|
|
Cash payments for
restructuring and acquisition-related costs
|
16.3
|
|
|
14.0
|
|
|
46.0
|
|
|
55.3
|
|
|
Adjusted free cash
flow
|
$
|
160.5
|
|
|
$
|
121.3
|
|
|
$
|
91.3
|
|
|
$
|
179.9
|
|
|
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 nine months ended on
September 30, 2018 have been reclassified to Driveline and Metal
Forming in the tables below.
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
millions)
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
Driveline
|
$
|
1,146.7
|
|
|
$
|
1,228.2
|
|
|
$
|
3,422.5
|
|
|
$
|
3,718.6
|
|
|
Metal
Forming
|
476.6
|
|
|
509.0
|
|
|
1,444.1
|
|
|
1,581.7
|
|
|
Casting
|
209.0
|
|
|
219.1
|
|
|
655.0
|
|
|
701.3
|
|
|
Total
Sales
|
1,832.3
|
|
|
1,956.3
|
|
|
5,521.6
|
|
|
6,001.6
|
|
|
Intersegment
Sales
|
(154.9)
|
|
|
(139.3)
|
|
|
(420.7)
|
|
|
(425.3)
|
|
|
Net External
Sales
|
$
|
1,677.4
|
|
|
$
|
1,817.0
|
|
|
$
|
5,100.9
|
|
|
$
|
5,576.3
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
|
Driveline
|
$
|
171.6
|
|
|
$
|
176.9
|
|
|
$
|
461.7
|
|
|
$
|
570.9
|
|
|
Metal
Forming
|
80.4
|
|
|
83.6
|
|
|
253.7
|
|
|
306.0
|
|
|
Casting
|
13.8
|
|
|
14.5
|
|
|
61.4
|
|
|
63.0
|
|
|
Total Segment
Adjusted EBITDA
|
$
|
265.8
|
|
|
$
|
275.0
|
|
|
$
|
776.8
|
|
|
$
|
939.9
|
|
|
Full Year 2019
Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net loss
|
$
|
(50)
|
|
|
$
|
(30)
|
|
|
Interest
expense
|
220
|
|
|
220
|
|
|
Income tax
benefit
|
(45)
|
|
|
(40)
|
|
|
Depreciation and
amortization
|
550
|
|
|
550
|
|
|
Full year 2019
targeted EBITDA
|
675
|
|
|
700
|
|
|
Restructuring,
acquisition-related and debt refinancing and
redemption costs
|
50
|
|
|
50
|
|
|
Impairment
charge
|
225
|
|
|
225
|
|
|
Full year 2019
targeted Adjusted EBITDA
|
$
|
950
|
|
|
$
|
975
|
|
|
Adjusted Free
Cash Flow
|
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
|
565
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(455)
|
|
Full year 2019
targeted Free Cash Flow
|
110
|
|
Cash payments for
restructuring and acquisition-related costs
|
65
|
|
Full year 2019
targeted Adjusted Free Cash Flow
|
$
|
175
|
|
The increase in
estimated cash payments for restructuring and acquisition-related
costs in 2019 is a result of expected transactions costs related to
our announced sale of the U.S. iron casting operations.
|
|
__________
|
|
|
(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,
impairment charges 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,
impairment charges 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.