DETROIT, Nov. 5, 2021 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the third quarter 2021.
Third Quarter 2021 Results
- Sales of $1.21 billion
- Net loss attributable to AAM of $(2.4)
million
- Adjusted EBITDA of $183.2
million, or 15.1% of sales
- Diluted loss per share of $(0.02); Adjusted earnings per share of
$0.15
- Net cash provided by operating activities of $89.8 million; Adjusted free cash flow of
$69.1 million
"AAM delivered solid operating performance under unprecedented
supply chain challenges that continued to impact industry
production in the third quarter," said AAM's Chairman and Chief
Executive Officer, David C. Dauch.
"Despite this uncertain and volatile environment, we remain focused
on optimizing our current operations and securing our core business
while laying a solid foundation for our electrification future."
AAM's sales in the third quarter of 2021 were $1.21 billion as compared to $1.41 billion in the third quarter of 2020. AAM
estimates sales for the third quarter of 2021 were unfavorably
impacted by the semiconductor chip shortage by approximately
$245 million.
AAM's net loss in the third quarter of 2021 was $(2.4) million, or $(0.02) per share, as compared to a net income of
$117.2 million, or $0.99 per share in the third quarter of 2020.
AAM defines adjusted earnings (loss) 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. Adjusted earnings per share in the third quarter of
2021 were $0.15 compared to
$1.15 in the third quarter of
2020.
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. In the third quarter of 2021, Adjusted EBITDA was
$183.2 million, or 15.1% of sales, as
compared to $297.1 million, or 21.0%
of sales, in the third quarter of 2020. AAM estimates Adjusted
EBITDA in the third quarter of 2021 was unfavorably impacted by
lower sales as a result of the semiconductor shortage by
approximately $83 million.
AAM's net cash provided by operating activities for the third
quarter of 2021 was $89.8 million as
compared to $249.5 million for the
third quarter of 2020.
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. AAM's adjusted free cash flow for
the third quarter of 2021 was $69.1
million as compared to $217.2
million for the third quarter of 2020.
AAM's Updated 2021 Financial Outlook
AAM financial outlook is as follows:
- AAM is targeting sales in the range of $5.15 - $5.25
billion, which includes approximately $300 million increase of metal market customer
pass-throughs and foreign currency versus the prior year
- AAM is targeting Adjusted EBITDA in the range of $830 - $850
million
- AAM is targeting Adjusted free cash flow of approximately
$400 million; this target assumes
capital spending of less than 4.0% of sales
These targets are based on the following assumptions for
2021:
- North American light vehicle production of approximately 13
million units
- Current customer production and launch schedules and operating
environment
Third Quarter 2021 Conference Call Information
A conference call to review AAM's third 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 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
2288310. A replay will be available one hour after the call is
complete until November 12, 2021 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 10159521.
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 and metal forming technologies that are
making the next generation of vehicles smarter, lighter, safer and
more efficient. Headquartered in Detroit, AAM has approximately 20,000
associates operating at nearly 80 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:
significant disruptions in production, sales and/or supply as a
result of public health crises, including pandemic or epidemic
illness such as Novel Coronavirus (COVID-19), or otherwise; global
economic conditions; 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 United States-Mexico-Canada Agreement (USMCA),
immigration policies, political stability, 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, 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, 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; 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 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 key associates; and other
unanticipated events and conditions that may hinder our ability to
compete. It is not possible to foresee or identify all such
factors 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,213.1
|
|
|
$
|
1,414.1
|
|
|
$
|
3,921.5
|
|
|
$
|
3,272.9
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,047.5
|
|
|
1,164.3
|
|
|
3,338.8
|
|
|
2,926.7
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
165.6
|
|
|
249.8
|
|
|
582.7
|
|
|
346.2
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
90.5
|
|
|
66.5
|
|
|
266.7
|
|
|
230.6
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.4
|
|
|
21.6
|
|
|
64.3
|
|
|
65.0
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
510.0
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
7.4
|
|
|
9.7
|
|
|
40.8
|
|
|
38.6
|
|
|
|
|
|
|
|
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
2.7
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
46.3
|
|
|
152.0
|
|
|
208.2
|
|
|
(499.0)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(49.7)
|
|
|
(53.9)
|
|
|
(150.7)
|
|
|
(160.0)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
2.7
|
|
|
3.4
|
|
|
8.2
|
|
|
9.2
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(31.6)
|
|
|
(5.2)
|
|
|
(34.0)
|
|
|
(6.7)
|
|
Unrealized gain on
equity securities
|
19.4
|
|
|
—
|
|
|
19.4
|
|
|
—
|
|
Other expense,
net
|
(3.1)
|
|
|
(1.6)
|
|
|
(1.3)
|
|
|
(3.8)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(16.0)
|
|
|
94.7
|
|
|
49.8
|
|
|
(660.3)
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
(13.6)
|
|
|
(22.5)
|
|
|
(2.4)
|
|
|
(63.1)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(2.4)
|
|
|
117.2
|
|
|
52.2
|
|
|
(597.2)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AAM
|
$
|
(2.4)
|
|
|
$
|
117.2
|
|
|
$
|
52.2
|
|
|
$
|
(597.3)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(0.02)
|
|
|
$
|
0.99
|
|
|
$
|
0.44
|
|
|
$
|
(5.28)
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
September 30,
2021
|
|
December 31,
2020
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
|
500.7
|
|
|
$
|
557.0
|
|
Accounts receivable,
net
|
739.6
|
|
|
793.2
|
|
Inventories,
net
|
417.9
|
|
|
323.2
|
|
Prepaid expenses and
other
|
163.8
|
|
|
203.6
|
|
Total current
assets
|
1,822.0
|
|
|
1,877.0
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,992.3
|
|
|
2,163.8
|
|
Deferred income
taxes
|
126.5
|
|
|
107.8
|
|
Goodwill
|
184.1
|
|
|
185.7
|
|
Other intangible
assets, net
|
717.7
|
|
|
780.7
|
|
GM postretirement
cost sharing asset
|
233.9
|
|
|
237.0
|
|
Operating lease
right-of-use asset
|
121.2
|
|
|
116.6
|
|
Other assets and
deferred charges
|
444.8
|
|
|
447.7
|
|
Total
assets
|
$
|
5,642.5
|
|
|
$
|
5,916.3
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
|
14.6
|
|
|
$
|
13.7
|
|
Accounts
payable
|
605.0
|
|
|
578.9
|
|
Accrued compensation
and benefits
|
197.4
|
|
|
170.9
|
|
Deferred
revenue
|
25.7
|
|
|
23.4
|
|
Current portion of
operating lease liabilities
|
24.4
|
|
|
22.6
|
|
Accrued expenses and
other
|
136.1
|
|
|
169.8
|
|
Total current
liabilities
|
1,003.2
|
|
|
979.3
|
|
|
|
|
|
Long-term debt,
net
|
3,104.1
|
|
|
3,441.3
|
|
Deferred
revenue
|
88.2
|
|
|
91.0
|
|
Deferred income
taxes
|
15.1
|
|
|
13.2
|
|
Long-term portion of
operating lease liabilities
|
97.6
|
|
|
94.4
|
|
Postretirement
benefits and other long-term liabilities
|
901.5
|
|
|
923.9
|
|
Total
liabilities
|
5,209.7
|
|
|
5,543.1
|
|
|
|
|
|
Total AAM
stockholders' equity
|
432.8
|
|
|
370.5
|
|
Noncontrolling interest
in subsidiaries
|
—
|
|
|
2.7
|
|
Total stockholders'
equity
|
432.8
|
|
|
373.2
|
|
Total liabilities
and stockholders' equity
|
$
|
5,642.5
|
|
|
$
|
5,916.3
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(in
millions)
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(2.4)
|
|
|
$
|
117.2
|
|
|
$
|
52.2
|
|
|
$
|
(597.2)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
135.6
|
|
|
125.0
|
|
|
421.2
|
|
|
393.7
|
|
Impairment
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
510.0
|
|
Other
|
|
(43.4)
|
|
|
7.3
|
|
|
(37.4)
|
|
|
(60.1)
|
|
Net cash provided
by operating activities
|
|
89.8
|
|
|
249.5
|
|
|
436.0
|
|
|
246.4
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(33.4)
|
|
|
(40.7)
|
|
|
(115.8)
|
|
|
(146.3)
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.2
|
|
|
0.2
|
|
|
1.8
|
|
|
1.6
|
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
|
—
|
|
|
(4.9)
|
|
|
—
|
|
Proceeds (payments)
from sale of business, net of cash divested
|
|
1.6
|
|
|
—
|
|
|
0.9
|
|
|
(4.4)
|
|
Other
|
|
11.0
|
|
|
0.1
|
|
|
23.1
|
|
|
(0.1)
|
|
Net cash used in
investing activities
|
|
(20.6)
|
|
|
(40.4)
|
|
|
(94.9)
|
|
|
(149.2)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(152.6)
|
|
|
(566.9)
|
|
|
(386.4)
|
|
|
(84.3)
|
|
Other
|
|
(1.4)
|
|
|
(0.9)
|
|
|
(7.8)
|
|
|
(3.3)
|
|
Net cash used in
financing activities
|
|
(154.0)
|
|
|
(567.8)
|
|
|
(394.2)
|
|
|
(87.6)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(2.2)
|
|
|
2.7
|
|
|
(3.2)
|
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(87.0)
|
|
|
(356.0)
|
|
|
(56.3)
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
587.7
|
|
|
682.7
|
|
|
557.0
|
|
|
532.0
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
500.7
|
|
|
$
|
326.7
|
|
|
$
|
500.7
|
|
|
$
|
537.3
|
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(2.4)
|
|
|
$
|
117.2
|
|
|
$
|
52.2
|
|
|
$
|
(597.2)
|
|
Interest
expense
|
49.7
|
|
|
53.9
|
|
|
150.7
|
|
|
160.0
|
|
Income tax
benefit
|
(13.6)
|
|
|
(22.5)
|
|
|
(2.4)
|
|
|
(63.1)
|
|
Depreciation and
amortization
|
135.6
|
|
|
125.0
|
|
|
421.2
|
|
|
393.7
|
|
EBITDA
|
169.3
|
|
|
273.6
|
|
|
621.7
|
|
|
(106.6)
|
|
Restructuring and
acquisition-related costs
|
7.4
|
|
|
9.7
|
|
|
40.8
|
|
|
38.6
|
|
Debt refinancing and
redemption costs
|
31.6
|
|
|
5.2
|
|
|
34.0
|
|
|
6.7
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
510.0
|
|
Unrealized gain on
equity securities
|
(19.4)
|
|
|
—
|
|
|
(19.4)
|
|
|
—
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
2.7
|
|
|
1.0
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire charges,
net of recoveries
|
(5.7)
|
|
|
8.6
|
|
|
(11.1)
|
|
|
8.6
|
|
Adjusted
EBITDA
|
$
|
183.2
|
|
|
$
|
297.1
|
|
|
$
|
668.7
|
|
|
$
|
458.3
|
|
|
Adjusted earnings
(loss) per share(b)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Diluted earnings
(loss) per share
|
$
|
(0.02)
|
|
|
$
|
0.99
|
|
|
$
|
0.44
|
|
|
$
|
(5.28)
|
|
Restructuring and
acquisition-related costs
|
0.06
|
|
|
0.08
|
|
|
0.33
|
|
|
0.34
|
|
Debt refinancing and
redemption costs
|
0.27
|
|
|
0.05
|
|
|
0.29
|
|
|
0.06
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.01
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
4.51
|
|
Accelerated
depreciation(c)
|
0.08
|
|
|
—
|
|
|
0.27
|
|
|
0.14
|
|
Unrealized gain on
equity securities
|
(0.16)
|
|
|
—
|
|
|
(0.16)
|
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
Malvern fire charges,
net of recoveries
|
(0.05)
|
|
|
0.07
|
|
|
(0.09)
|
|
|
0.08
|
|
Tax adjustments
related to the CARES Act
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.07)
|
|
Adjustments to
liability for unrecognized tax benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.06)
|
|
Tax effect of
adjustments
|
(0.03)
|
|
|
(0.04)
|
|
|
(0.09)
|
|
|
(0.12)
|
|
Adjusted earnings
(loss) per share
|
$
|
0.15
|
|
|
$
|
1.15
|
|
|
$
|
1.01
|
|
|
$
|
(0.39)
|
|
|
Adjusted earnings
(loss) per share are based on weighted average diluted shares
outstanding of 118.7 million and 118.4 million for the three
months ended on September 30, 2021 and 2020 respectively, and 118.7
million and 113.0 million for the nine months ended on
September 30, 2021 and 2020, 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
89.8
|
|
|
$
|
249.5
|
|
|
$
|
436.0
|
|
|
$
|
246.4
|
|
Capital expenditures
net of proceeds from the sale of property, plant
and equipment
|
(33.2)
|
|
|
(40.5)
|
|
|
(114.0)
|
|
|
(144.7)
|
|
Free cash
flow
|
56.6
|
|
|
209.0
|
|
|
322.0
|
|
|
101.7
|
|
Cash payments for
restructuring and acquisition-related costs
|
9.0
|
|
|
8.2
|
|
|
47.9
|
|
|
37.0
|
|
Cash payments related
to the Malvern fire net of recoveries
|
3.5
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
Adjusted free cash
flow
|
$
|
69.1
|
|
|
$
|
217.2
|
|
|
$
|
379.3
|
|
|
$
|
138.7
|
|
Segment Financial
Information
|
|
In the first quarter
of 2021, we completed a reorganization of our segments, which
included moving certain locations that were previously reported
under our Driveline segment to our Metal Forming segment in order
to better align our product and process technologies. The amounts
in the tables below for the three and nine months ended September
30, 2020 have been retrospectively recast to reflect this
reorganization.
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in
millions)
|
Segment
Sales
|
|
|
|
|
|
|
|
Driveline
|
$
|
870.4
|
|
|
$
|
1,025.0
|
|
|
$
|
2,831.9
|
|
|
$
|
2,346.7
|
|
Metal
Forming
|
422.7
|
|
|
497.4
|
|
|
1,352.1
|
|
|
1,147.7
|
|
Total
Sales
|
1,293.1
|
|
|
1,522.4
|
|
|
4,184.0
|
|
|
3,494.4
|
|
Intersegment
Sales
|
(80.0)
|
|
|
(108.3)
|
|
|
(262.5)
|
|
|
(221.5)
|
|
Net External
Sales
|
$
|
1,213.1
|
|
|
$
|
1,414.1
|
|
|
$
|
3,921.5
|
|
|
$
|
3,272.9
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
Driveline
|
$
|
128.4
|
|
|
$
|
199.5
|
|
|
$
|
450.2
|
|
|
$
|
309.0
|
|
Metal
Forming
|
54.8
|
|
|
97.6
|
|
|
218.5
|
|
|
149.3
|
|
Total Segment
Adjusted EBITDA
|
$
|
183.2
|
|
|
$
|
297.1
|
|
|
$
|
668.7
|
|
|
$
|
458.3
|
|
Full Year 2021
Financial Outlook
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
Net income
|
$
|
20
|
|
|
$
|
35
|
|
Interest
expense
|
200
|
|
|
200
|
|
Income tax
benefit
|
(5)
|
|
|
—
|
|
Depreciation and
amortization
|
545
|
|
|
545
|
|
Full year 2021
targeted EBITDA
|
760
|
|
|
780
|
|
Restructuring and
acquisition-related costs
|
60
|
|
|
60
|
|
Other
|
10
|
|
|
10
|
|
Full year 2021
targeted Adjusted EBITDA
|
$
|
830
|
|
|
$
|
850
|
|
|
|
Adjusted Free
Cash Flow
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
520
|
|
Capital expenditures
net of proceeds from the sale of property, plant and
equipment
|
(190)
|
|
Full year 2021
targeted Free Cash Flow
|
330
|
|
Cash payments for
restructuring and acquisition-related costs
|
60
|
|
Other
|
10
|
|
Full year 2021
targeted Adjusted Free Cash Flow
|
$
|
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, 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 (loss) 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 (loss) 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 (loss) 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 have accelerated depreciation on
certain property, plant and equipment beginning in the first
quarter of 2021. In the first six months of 2020, we accelerated
depreciation for certain assets that were idled as a result of our
largest customer exiting their operations in Thailand, which they
announced in the first quarter of 2020.
|
|
|
(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.