AAM Delivers Solid Financial Results and
Cash Flow Generation
DETROIT, Aug. 5, 2022
/PRNewswire/ -- American Axle & Manufacturing Holdings, Inc.
(AAM), (NYSE: AXL) today reported its financial results for the
second quarter 2022.
Second Quarter 2022 Results
- Sales of $1.44 billion
- Net income of $22.9 million, or
1.6% of sales
- Adjusted EBITDA of $195.1
million, or 13.6% of sales
- Diluted earnings per share of $0.19; Adjusted earnings per share of
$0.22
- Net cash provided by operating activities of $146.7 million; Adjusted free cash flow of
$114.3 million
"AAM delivered solid second quarter financial results and cash
flow conversion while operating in a volatile industry
environment," said AAM's Chairman and Chief Executive Officer,
David C. Dauch. "In addition, we are
excited to close on our recent Tekfor acquisition and begin the
integration process. We also remain focused on our future to be the
supplier of choice in electric propulsion while maintaining our
leadership position in our existing product segments."
AAM's sales in the second quarter of 2022 were $1.44 billion as compared to $1.28 billion in the second quarter of 2021. AAM
estimates, on a year-over-year basis, sales for the second quarter
of 2022 were favorably impacted by supply chain improvements,
volume and mix, and the Tekfor acquisition. In addition, metal
market pass-throughs to customers and foreign exchange added
approximately $27 million in sales to
the quarter.
AAM's net income in the second quarter of 2022 was $22.9 million, or $0.19 per share, as compared to $16.0 million, or $0.13 per share in the second quarter of
2021. Adjusted earnings per share in the second quarter of
2022 was $0.22 compared to
$0.29 in the second quarter of
2021.
In the second quarter of 2022, Adjusted EBITDA was $195.1 million, or 13.6% of sales, as compared to
$222.6 million, or 17.3% of sales, in
the second quarter of 2021.
AAM's net cash provided by operating activities for the second
quarter of 2022 was $146.7 million as
compared to $167.1 million for the
second quarter of 2021.
AAM's Adjusted free cash flow for the second quarter of 2022 was
$114.3 million as compared to
$136.1 million for the second quarter
of 2021.
AAM's 2022 Updated Financial Outlook
AAM's full year
2022 financial targets are as follows:
- AAM is targeting sales in the range of $5.75 - $5.95
billion vs. $5.6 -
$5.8 billion prior.
- AAM is targeting Adjusted EBITDA in the range of $790 - $830 million
vs. $785 - $830 million prior.
- AAM is targeting Adjusted free cash flow in the range of
$300 - $350
million; this target assumes capital spending of
approximately 3.5% - 4.0% of sales.
- The updated financial outlook now reflects the acquisition of
Tekfor Group which became effective on June
1, 2022 with cost synergies on track for 2023.
These targets are based on the following assumptions for
2022:
- North American light vehicle production of approximately 14.3 -
14.7 million units and the current operating environment.
Second Quarter 2022 Conference Call
Information
A conference call to review AAM's
second quarter results is scheduled today at 10:00
a.m. ET. Interested participants may listen to the
live conference call by logging onto AAM's investor
website 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 0706393. A replay will be available
one hour after the call is complete until August 12, 2022 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 2211523.
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.
Definition of Non-GAAP Financial Measures
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, loss on sale of
business, impairment charges, pension settlements, certain
accelerated depreciation, unrealized gains or losses on equity
securities and non-recurring items, including the tax effect
thereon.
AAM defines EBITDA to be earnings before interest expense,
income taxes, depreciation and amortization. Adjusted EBITDA is
defined as EBITDA excluding the impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
loss on sale of business, impairment charges, pension settlements,
unrealized gains or losses on equity securities and non-recurring
items.
AAM defines free cash flow to be net cash provided by operating
activities less capital expenditures net of proceeds from the sale
of property, plant and equipment. Adjusted free cash flow is
defined as free cash flow excluding the impact of cash payments for
restructuring and acquisition-related costs, and cash payments
related to the Malvern fire, including payments for capital
expenditures, net of recoveries.
Company Description
As a leading global Tier 1
Automotive and Mobility Supplier, AAM (NYSE: AXL) designs,
engineers and manufactures Driveline and Metal Forming technologies
to support electric, hybrid and internal combustion vehicles.
Headquartered in Detroit with
nearly 85 facilities in 18 countries, AAM is bringing the future
faster for a safer and more sustainable tomorrow. To learn more,
visit aam.com.
Forward-Looking Statements
In this earnings
release, we make statements concerning our expectations, beliefs,
plans, objectives, goals, strategies, and future events or
performance. Such statements are "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 and relate to trends and events that may affect our future
financial position and operating results. The terms such as "will,"
"may," "could," "would," "plan," "believe," "expect," "anticipate,"
"intend," "project," "target," and similar words or expressions, as
well as statements in future tense, are intended to identify
forward-looking statements. Forward-looking statements should
not be read as a guarantee of future performance or results and
will not necessarily be accurate indications of the times at, or
by, which such performance or results will be achieved.
Forward-looking statements are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events and are
subject to risks and may differ materially from those expressed in
or suggested by the forward-looking statements. Important factors
that could cause such differences include, but are not limited to:
significant disruptions in production, sales and/or supply as a
result of public health crises, including pandemic or epidemic
illness such as COVID-19, or otherwise; global economic conditions,
including the impact of inflation or slower growth in the markets
in which operate; reduced purchases of our products by General
Motors Company (GM), Stellantis N.V. (Stellantis), Ford Motor
Company (Ford) or other customers; our ability to respond to
changes in technology, increased competition or pricing pressures;
our ability to develop and produce new products that reflect market
demand; lower-than-anticipated market acceptance of new or existing
products; our ability to attract new customers and programs for new
products; reduced demand for our customers' products (particularly
light trucks and sport utility vehicles (SUVs) produced by GM,
Stellantis and Ford); risks inherent in our global operations
(including tariffs and the potential consequences thereof to us,
our suppliers, and our customers and their suppliers, adverse
changes in trade agreements, such as the
United States-Mexico-Canada Agreement (USMCA), immigration
policies, political stability or geopolitical conflicts, taxes and
other law changes, potential disruptions of production and supply,
and currency rate fluctuations); supply shortages, such as the
semiconductor shortage that the automotive industry is currently
experiencing and the availability of natural gas or other
fuel and utility sources in certain regions, labor shortages,
including increased labor costs, or price increases in raw material
and/or freight, utilities or other operating supplies for us or our
customers as a result of pandemics, geopolitical conflicts, natural
disasters or otherwise; a significant disruption in operations at
one or more of our key manufacturing facilities; negative or
unexpected tax consequences; risks related to a failure of our
information technology systems and networks, and risks associated
with current and emerging technology threats and damage from
computer viruses, unauthorized access, cyber attacks and other
similar disruptions; cost or availability of financing for working
capital, capital expenditures, research and development (R&D)
or other general corporate purposes including acquisitions, as well
as our ability to comply with financial covenants; our customers'
and suppliers' availability of financing for working capital,
capital expenditures, R&D or other general corporate purposes;
an impairment of our goodwill, other intangible assets, or
long-lived assets if our business or market conditions indicate
that the carrying values of those assets exceed their fair values;
liabilities arising from warranty claims, product recall or field
actions, product liability and legal proceedings to which we are or
may become a party, or the impact of product recall or field
actions on our customers; our ability or our customers' and
suppliers' ability to successfully launch new product programs on a
timely basis; risks of environmental issues, including impacts of
climate-related events, that could result in unforeseen issues or
costs at our facilities, or risks of noncompliance with
environmental laws and regulations, including reputational damage;
our ability to maintain satisfactory labor relations and avoid work
stoppages; our suppliers', our customers' and their suppliers'
ability to maintain satisfactory labor relations and avoid work
stoppages; our ability to consummate and successfully integrate
acquisitions and joint ventures; our ability to achieve the level
of cost reductions required to sustain global cost competitiveness;
our ability to realize the expected revenues from our new and
incremental business backlog; price volatility in, or reduced
availability of, fuel; our ability to protect our intellectual
property and successfully defend against assertions made against
us; adverse changes in laws, government regulations or market
conditions affecting our products or our customers' products; our
ability or our customers' and suppliers' ability to comply with
regulatory requirements and the potential costs of such compliance;
changes in liabilities arising from pension and other
postretirement benefit obligations; our ability to attract and
retain qualified personnel in key positions and functions; and
other unanticipated events and conditions that may hinder our
ability to compete. It is not possible to foresee or identify
all such factors and we make no commitment to update any
forward-looking statement or to disclose any facts, events or
circumstances after the date hereof that may affect the accuracy of
any forward-looking statement.
For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@aam.com
Media Contact
Christopher M. Son
Vice President,
Marketing & Communications
(313) 758-4814
chris.son@aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
1,438.3
|
|
$
1,283.3
|
|
$
2,874.5
|
|
$
2,708.4
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,264.8
|
|
1,093.3
|
|
2,514.2
|
|
2,291.3
|
|
|
|
|
|
|
|
|
Gross profit
|
173.5
|
|
190.0
|
|
360.3
|
|
417.1
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
84.8
|
|
86.2
|
|
170.9
|
|
176.2
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.4
|
|
21.4
|
|
42.9
|
|
42.9
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
9.6
|
|
15.9
|
|
18.5
|
|
33.4
|
|
|
|
|
|
|
|
|
Loss on sale of
business
|
—
|
|
0.1
|
|
—
|
|
2.7
|
|
|
|
|
|
|
|
|
Operating
income
|
57.7
|
|
66.4
|
|
128.0
|
|
161.9
|
|
|
|
|
|
|
|
|
Interest
expense
|
(42.7)
|
|
(49.9)
|
|
(87.4)
|
|
(101.0)
|
|
|
|
|
|
|
|
|
Interest
income
|
3.2
|
|
2.6
|
|
6.2
|
|
5.5
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(0.2)
|
|
(1.3)
|
|
(5.8)
|
|
(2.4)
|
Gain on bargain
purchase of business
|
11.6
|
|
—
|
|
11.6
|
|
—
|
Unrealized loss on
equity securities
|
(3.7)
|
|
—
|
|
(21.7)
|
|
—
|
Other income
(expense), net
|
(2.4)
|
|
0.6
|
|
(3.4)
|
|
1.8
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
23.5
|
|
18.4
|
|
27.5
|
|
65.8
|
|
|
|
|
|
|
|
|
Income tax
expense
|
0.6
|
|
2.4
|
|
3.6
|
|
11.2
|
|
|
|
|
|
|
|
|
Net income
|
22.9
|
|
16.0
|
|
23.9
|
|
54.6
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.19
|
|
$
0.13
|
|
$
0.20
|
|
$
0.46
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
501.4
|
|
$
530.2
|
Accounts receivable,
net
|
929.3
|
|
762.8
|
Inventories,
net
|
470.8
|
|
410.4
|
Prepaid expenses and
other
|
154.3
|
|
152.6
|
Total current
assets
|
2,055.8
|
|
1,856.0
|
|
|
|
|
Property, plant and
equipment, net
|
1,980.6
|
|
1,996.1
|
Deferred income
taxes
|
140.7
|
|
121.1
|
Goodwill
|
181.4
|
|
183.8
|
Other intangible
assets, net
|
657.0
|
|
697.2
|
GM postretirement cost
sharing asset
|
202.2
|
|
201.1
|
Operating lease
right-of-use asset
|
116.1
|
|
123.7
|
Other assets and
deferred charges
|
434.9
|
|
456.7
|
Total
assets
|
$
5,768.7
|
|
$
5,635.7
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
14.1
|
|
$
18.8
|
Accounts
payable
|
803.6
|
|
612.8
|
Accrued compensation
and benefits
|
184.7
|
|
195.2
|
Deferred
revenue
|
30.1
|
|
28.1
|
Current portion of
operating lease liabilities
|
24.2
|
|
24.6
|
Accrued expenses and
other
|
157.0
|
|
160.4
|
Total current
liabilities
|
1,213.7
|
|
1,039.9
|
|
|
|
|
Long-term debt,
net
|
3,034.8
|
|
3,085.7
|
Deferred
revenue
|
79.6
|
|
94.8
|
Deferred income
taxes
|
17.3
|
|
13.5
|
Long-term portion of
operating lease liabilities
|
95.7
|
|
99.9
|
Postretirement benefits
and other long-term liabilities
|
858.4
|
|
844.1
|
Total
liabilities
|
5,299.5
|
|
5,177.9
|
|
|
|
|
Total stockholders'
equity
|
469.2
|
|
457.8
|
Total liabilities
and stockholders' equity
|
$
5,768.7
|
|
$
5,635.7
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
Operating
activities
|
|
|
|
|
|
|
|
Net income
|
$
22.9
|
|
$
16.0
|
|
$
23.9
|
|
$
54.6
|
Adjustments to
reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
121.9
|
|
143.6
|
|
242.3
|
|
285.6
|
Other
|
1.9
|
|
7.5
|
|
(51.0)
|
|
6.0
|
Net cash provided by
operating activities
|
146.7
|
|
167.1
|
|
215.2
|
|
346.2
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
(42.6)
|
|
(42.8)
|
|
(71.2)
|
|
(82.4)
|
Proceeds from sale of
property, plant and equipment
|
—
|
|
1.6
|
|
4.2
|
|
1.6
|
Acquisition of
business, net of cash acquired
|
(80.9)
|
|
(4.9)
|
|
(87.6)
|
|
(4.9)
|
Proceeds (payments)
from sale of business, net of cash divested
|
—
|
|
0.1
|
|
—
|
|
(0.7)
|
Other
|
4.6
|
|
12.1
|
|
4.4
|
|
12.1
|
Net cash used in
investing activities
|
(118.9)
|
|
(33.9)
|
|
(150.2)
|
|
(74.3)
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
Net debt
activity
|
(59.2)
|
|
(148.3)
|
|
(94.3)
|
|
(233.8)
|
Other
|
11.2
|
|
(1.3)
|
|
7.6
|
|
(6.4)
|
Net cash used in
financing activities
|
(48.0)
|
|
(149.6)
|
|
(86.7)
|
|
(240.2)
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(8.3)
|
|
2.9
|
|
(7.1)
|
|
(1.0)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(28.5)
|
|
(13.5)
|
|
(28.8)
|
|
30.7
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
529.9
|
|
601.2
|
|
530.2
|
|
557.0
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
501.4
|
|
$
587.7
|
|
$
501.4
|
|
$
587.7
|
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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
|
$
22.9
|
|
$
16.0
|
|
$
23.9
|
|
$
54.6
|
Interest
expense
|
42.7
|
|
49.9
|
|
87.4
|
|
101.0
|
Income tax
expense
|
0.6
|
|
2.4
|
|
3.6
|
|
11.2
|
Depreciation and
amortization
|
121.9
|
|
143.6
|
|
242.3
|
|
285.6
|
EBITDA
|
188.1
|
|
211.9
|
|
357.2
|
|
452.4
|
Restructuring and
acquisition-related costs
|
9.6
|
|
15.9
|
|
18.5
|
|
33.4
|
Debt refinancing and
redemption costs
|
0.2
|
|
1.3
|
|
5.8
|
|
2.4
|
Loss on sale of
business
|
—
|
|
0.1
|
|
—
|
|
2.7
|
Unrealized loss on
equity securities
|
3.7
|
|
—
|
|
21.7
|
|
—
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire charges,
net of recoveries
|
0.1
|
|
(6.6)
|
|
(5.4)
|
|
(5.4)
|
Acquisition-related
fair value inventory adjustment
|
5.0
|
|
—
|
|
5.0
|
|
—
|
Gain on bargain
purchase of business
|
(11.6)
|
|
—
|
|
(11.6)
|
|
—
|
Adjusted
EBITDA
|
$
195.1
|
|
$
222.6
|
|
$
391.2
|
|
$
485.5
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Diluted earnings per
share
|
$
0.19
|
|
$
0.13
|
|
$
0.20
|
|
$
0.46
|
Restructuring and
acquisition-related costs
|
0.08
|
|
0.14
|
|
0.14
|
|
0.28
|
Debt refinancing and
redemption costs
|
—
|
|
0.01
|
|
0.05
|
|
0.02
|
Loss on sale of
business
|
—
|
|
—
|
|
—
|
|
0.02
|
Unrealized loss on
equity securities
|
0.03
|
|
—
|
|
0.18
|
|
—
|
Accelerated
depreciation(c)
|
—
|
|
0.09
|
|
—
|
|
0.19
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire charges,
net of recoveries
|
—
|
|
(0.06)
|
|
(0.04)
|
|
(0.05)
|
Acquisition-related
fair value inventory adjustment
|
0.04
|
|
—
|
|
0.04
|
|
—
|
Gain on bargain
purchase of business
|
(0.09)
|
|
—
|
|
(0.09)
|
|
—
|
Tax effect of
adjustments
|
(0.03)
|
|
(0.02)
|
|
(0.08)
|
|
(0.06)
|
Adjusted earnings
per share
|
$
0.22
|
|
$
0.29
|
|
$
0.40
|
|
$
0.86
|
Adjusted earnings per share are based on weighted average
diluted shares outstanding of 120.3 million and 119.1 million
for the three months ended June 30, 2022 and 2021
respectively, and 119.8 million and 118.7 million for the six
months ended on June 30, 2022 and 2021,
respectively.
AMERICAN AXLE & MANUFACTURING HOLDINGS,
INC.
SUPPLEMENTAL DATA
(Unaudited)
The supplemental data presented below is a
reconciliation of certain financial measures which is intended to
facilitate analysis of American Axle & Manufacturing Holdings,
Inc. business and operating performance.
Free cash flow and
Adjusted free cash flow(d)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
146.7
|
|
$
167.1
|
|
$
215.2
|
|
$
346.2
|
Capital expenditures
net of proceeds from sale of property, plant
and equipment
|
(42.6)
|
|
(41.2)
|
|
(67.0)
|
|
(80.8)
|
Free cash
flow
|
104.1
|
|
125.9
|
|
148.2
|
|
265.4
|
Cash payments for
restructuring and acquisition-related costs
|
8.1
|
|
15.5
|
|
16.5
|
|
38.9
|
Cash payments related
to the Malvern fire, net of recoveries
|
2.1
|
|
(5.3)
|
|
3.5
|
|
5.9
|
Adjusted free cash
flow
|
$
114.3
|
|
$
136.1
|
|
$
168.2
|
|
$
310.2
|
Segment Financial
Information
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
1,040.7
|
|
$
935.4
|
|
$
2,102.5
|
|
$
1,961.5
|
Metal
Forming
|
512.9
|
|
440.1
|
|
994.7
|
|
929.4
|
Total
Sales
|
1,553.6
|
|
1,375.5
|
|
3,097.2
|
|
2,890.9
|
Intersegment
Sales
|
(115.3)
|
|
(92.2)
|
|
(222.7)
|
|
(182.5)
|
Net External
Sales
|
$
1,438.3
|
|
$
1,283.3
|
|
$
2,874.5
|
|
$
2,708.4
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
141.4
|
|
$
151.3
|
|
$
273.9
|
|
$
321.8
|
Metal
Forming
|
53.7
|
|
71.3
|
|
117.3
|
|
163.7
|
Total Segment
Adjusted EBITDA
|
$
195.1
|
|
$
222.6
|
|
$
391.2
|
|
$
485.5
|
Full Year 2022
Financial Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net income
|
$
55
|
|
$
85
|
Interest
expense
|
175
|
|
175
|
Income tax
expense
|
10
|
|
20
|
Depreciation and
amortization
|
500
|
|
500
|
Full year 2022 targeted
EBITDA
|
740
|
|
780
|
Restructuring and
acquisition-related costs
|
35
|
|
35
|
Other
|
15
|
|
15
|
Full year 2022
targeted Adjusted EBITDA
|
$
790
|
|
$
830
|
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
480
|
|
$
530
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(215)
|
|
(215)
|
Full year 2022 targeted
free cash flow
|
265
|
|
315
|
Cash payments for
restructuring and acquisition-related costs
|
35
|
|
35
|
Full year 2022
targeted Adjusted free cash flow
|
$
300
|
|
$
350
|
|
|
|
|
|
|
|
|
(a)
|
We define EBITDA to be
earnings before interest expense, income taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding
the impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, loss on sale of a business,
impairment charges, pension settlements, unrealized gains or losses
on equity securities and non-recurring items. We believe that
EBITDA and Adjusted EBITDA are meaningful measures of performance
as they are commonly utilized by management and investors to
analyze operating performance and entity valuation. Our
management, the investment community and the banking institutions
routinely use EBITDA and Adjusted EBITDA, together with other
measures, to measure our operating performance relative to other
Tier 1 automotive suppliers. We also use Segment Adjusted
EBITDA as the measure of earnings to assess the performance of each
segment and determine the resources to be allocated to the
segments. EBITDA and Adjusted EBITDA are also key metrics used in
our calculation of incentive compensation. EBITDA and
Adjusted EBITDA should not be construed as income from operations,
net income or cash flow from operating activities as determined
under GAAP. Other companies may calculate EBITDA and Adjusted
EBITDA differently.
|
|
|
(b)
|
We define Adjusted
earnings per share to be diluted earnings per share excluding the
impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, loss on sale of a business,
impairment charges, pension settlements, certain accelerated
depreciation, unrealized gains or losses on equity securities and
non-recurring items, including the tax effect thereon. We
believe Adjusted earnings 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)
|
In the first quarter of
2021, one of our largest customers announced their intention to
cease production operations in Brazil in 2021 as part of their
restructuring actions. As such, we accelerated depreciation on
certain property, plant and equipment beginning in the first
quarter of 2021.
|
|
|
(d)
|
We define free cash
flow to be net cash provided by operating activities less capital
expenditures net of proceeds from the sale of property, plant and
equipment. Adjusted free cash flow is defined as free cash
flow excluding the impact of cash payments for restructuring and
acquisition-related costs and cash payments related to the Malvern
fire, including payments for capital expenditures, net of
recoveries. We believe free cash flow and Adjusted free cash flow
are meaningful measures as they are commonly utilized by management
and investors to assess our ability to generate cash flow from
business operations to repay debt and return capital to our
stockholders. Free cash flow and Adjusted free cash flow are
also key metrics used in our calculation of incentive
compensation. Other companies may calculate free cash flow
and Adjusted free cash flow differently.
|
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SOURCE American Axle & Manufacturing Holdings, Inc.