DETROIT, Feb. 10, 2017 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today
reported its financial results for the fourth quarter and full year
2016 and confirmed AAM's full year 2017 outlook.
Fourth Quarter 2016 Results
- Fourth quarter 2016 sales of $946.5
million
- Gross profit of $176.1 million,
or 18.6% of sales
- Net income of $46.9 million, or
5.0% of sales
- Diluted earnings per share of $0.59
- Net cash provided by operating activities of $116.6 million
- Adjusted EBITDA of $148.2
million, or 15.7% of sales
- Adjusted earnings per share of $0.78
- Adjusted free cash flow of $62.8
million
Full Year 2016 Results
- Full year 2016 sales of $3.95
billion
- Gross profit of $726.1 million,
or 18.4% of sales
- Net income of $240.7 million, or
6.1% of sales
- Diluted earnings per share of $3.06
- Net cash provided by operating activities $407.6 million
- Adjusted EBITDA of $619.4
million, or 15.7% of sales
- Adjusted earnings per share of $3.30
- Adjusted free cash flow of $198.6
million
AAM's net income in the fourth quarter of 2016 was $46.9 million, or $0.59 per share. This compares to net income of
$62.9 million, or $0.81 per share, in the fourth quarter of
2015.
For the full year 2016, AAM's net income was $240.7 million, or $3.06 per share. This compares to net income of
$235.6 million, or $3.02 per share in 2015.
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
and non-recurring items, including the tax effect thereon.
Adjusted earnings per share in the fourth quarter of 2016 was
$0.78 compared to $0.67 in the fourth quarter of 2015. For
the full year 2016, AAM's Adjusted earnings per share was
$3.30 compared to $2.88 in 2015.
"In 2016, AAM achieved another year of record sales and gross
profit, strong global operational performance, and new business
wins that will further drive sales diversification," said AAM's
Chairman & Chief Executive Officer, David C. Dauch. "As we look towards what we
expect to be a transformational year for AAM in 2017, we will be
laser focused on our commitment to provide our customers with
world-class quality, operational excellence and technology
leadership."
Net sales in the fourth quarter of 2016 were $946.5 million as compared to $958.4 million in the fourth quarter of 2015.
Non-GM sales in the fourth quarter of 2016 were $323.0 million as compared to $323.5 million in the fourth quarter of 2015.
Net sales for the full year 2016 were $3.95 billion as compared to $3.90 billion in 2015. Non-GM sales for the full
year of 2016 were $1.29 billion as
compared to $1.32 billion for the
full year of 2015.
AAM's content-per-vehicle is measured by the dollar value of its
product sales supporting our customers' North American light truck
and SUV programs. In the fourth quarter of 2016, AAM's
content-per-vehicle was $1,634 as
compared to $1,645 in the fourth
quarter of 2015. For the full year 2016, AAM's content-per-vehicle
was $1,617 as compared to
$1,645 in 2015.
AAM's gross profit in the fourth quarter of 2016 was
$176.1 million as compared to
$159.8 million in the fourth quarter
of 2015. Gross margin was 18.6% in the fourth quarter of 2016 as
compared to 16.7% in the fourth quarter of 2015.
AAM's gross profit for the full year 2016 increased 14.3% on a
year-over-year basis to $726.1
million as compared to $635.4
million for the full year of 2015. Gross margin was 18.4%
for the full year of 2016 as compared to 16.3% for the full year of
2015.
AAM's selling, general, and administrative (SG&A) expenses
in the fourth quarter of 2016 was $84.4
million, or 8.9% of sales, as compared to $72.7 million, or 7.6% of sales, in the fourth
quarter of 2015.
AAM's SG&A spending for the full year 2016 was $319.2 million, or 8.1% of sales, as compared to
$277.3 million, or 7.1% of sales, for
the full year 2015.
AAM's research and development (R&D) spending in the fourth
quarter of 2016 was $37.5 million as
compared to $31.3 million in the
fourth quarter of 2015. AAM's R&D spending for the full year
2016 was $139.8 million as compared
to $113.9 million in 2015.
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
and non-recurring items.
In the fourth quarter of 2016, AAM's Adjusted EBITDA was
$148.2 million, or 15.7% of sales, as
compared to $137.5 million, or 14.3%
of sales, in the fourth quarter of 2015. For the full year 2016,
AAM's Adjusted EBITDA was $619.4
million, or 15.7% of sales, as compared to $571.1 million, or 14.6% of sales, for the full
year of 2015.
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 and from government grants.
Adjusted free cash flow is defined as free cash flow excluding the
impact of cash payments for restructuring and acquisition-related
costs.
Net cash provided by operating activities for the full year 2016
was $407.6 million. Capital
expenditures, net of proceeds from the sale of property, plant and
equipment and from government grants for the full year 2016 was
$218.5 million. Cash payments for
restructuring and acquisition-related costs were $9.5 million. Reflecting the impact of this
activity, AAM's Adjusted free cash flow for the full year of 2016
was $198.6 million as compared to
$189.5 million for the full year of
2015.
AAM's Full Year 2017 Outlook
AAM is confirming its
stand-alone full year 2017 outlook:
- AAM is targeting sales in the range of $4.1 billion to $4.2 billion in 2017. This sales
projection is based on the anticipated launch schedule of programs
in AAM's new and incremental business backlog and the assumption
that U.S. Seasonally Adjusted Annual Rate of sales ("SAAR") will be
approximately 17.5 million light vehicle units in 2017.
- AAM is targeting an Adjusted EBITDA margin in the range of
15.5% to 16.0% of sales in 2017.
- AAM is targeting Adjusted free cash flow in the range of
$175 million to $200 million in
2017.
- AAM is targeting full year capital spending in the range of
6.5% to 7.0% of sales in 2017.
Fourth Quarter and Full-year 2016 Conference Call
Information
A conference call to review AAM's fourth quarter
and full year 2016 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 (855) 681-2072 from
the United States or (973)
200-3383 from outside the United
States. A replay will be available from 1:00 p.m. ET on February
10, 2017 until 11:59 p.m. ET
February 17, 2017 by dialing (855)
859-2056 from the United States or
(404) 537-3406 from outside the United
States. When prompted, callers should enter conference
reservation number 87956021.
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 financial measures calculated and
presented in accordance with GAAP is not practical given the
difficulty of projecting event driven transactional and other
non-core operating items in any future period. The magnitude of
these items, however, may be significant.
Management believes that these non-GAAP financial measures are
useful to both management and its stockholders 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 is a world leader in the
manufacturing, engineering, design and validation of driveline and
drivetrain systems and related components and modules, chassis
systems, electric drive systems and metal-formed products for light
trucks, sport utility vehicles, passenger cars, crossover vehicles
and commercial vehicles. In addition to locations in the United States (Michigan, Ohio, and Indiana), AAM also has offices or facilities
in Brazil, China, Germany, India, Japan,
Luxembourg, Mexico, Poland, Scotland, South
Korea, Sweden and
Thailand.
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; reduced demand for our customers' products
(particularly light trucks and sport utility vehicles (SUVs)
produced by GM and FCA); 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 respond to
changes in technology, increased competition or pricing pressures;
our ability to attract new customers and programs for new products;
our ability to consummate and integrate acquisitions and joint
ventures; risks inherent in our international operations (including
adverse changes in trade agreements, tariffs, immigration policies,
political stability, taxes and other law changes, potential
disruptions of production and supply, and currency rate
fluctuations, including those resulting from the recent
United States presidential
election and the United Kingdom's
vote to exit the European Union); negative or unexpected tax
consequences; 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 to achieve the level
of cost reductions required to sustain global cost competitiveness;
supply shortages or price increases in raw materials, utilities or
other operating supplies for us or our customers as a result of
natural disasters or otherwise; our ability or our customers' and
suppliers' ability to successfully launch new product programs on a
timely basis; our ability to realize the expected revenues from our
new and incremental business backlog; 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; global economic conditions; our ability to
maintain satisfactory labor relations and avoid work stoppages; our
suppliers', our customers' and their suppliers' ability to maintain
satisfactory labor relations and avoid work stoppages; price
volatility in, or reduced availability of, fuel; 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 facilities; adverse changes in laws,
government regulations or market conditions affecting our products
or our customers' products (such as the Corporate Average Fuel
Economy (CAFE) regulations); our ability or our customers' and
suppliers' ability to comply with the Dodd-Frank Act and other
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
Director, Marketing &
Communications
(313)
758-4814
chris.son@aam.com
Or visit the AAM website at www.aam.com.
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
946.5
|
|
|
$
|
958.4
|
|
|
$
|
3,948.0
|
|
|
$
|
3,903.1
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
770.4
|
|
|
798.6
|
|
|
3,221.9
|
|
|
3,267.7
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
176.1
|
|
|
159.8
|
|
|
726.1
|
|
|
635.4
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
84.4
|
|
|
72.7
|
|
|
319.2
|
|
|
277.3
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
22.2
|
|
|
—
|
|
|
26.2
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
69.5
|
|
|
87.1
|
|
|
380.7
|
|
|
358.1
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(23.2)
|
|
|
(24.5)
|
|
|
(93.4)
|
|
|
(99.2)
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
0.3
|
|
|
0.6
|
|
|
2.9
|
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
(0.8)
|
|
|
—
|
|
|
(0.8)
|
|
|
Other, net
|
4.8
|
|
|
1.1
|
|
|
8.8
|
|
|
12.0
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
51.4
|
|
|
63.5
|
|
|
299.0
|
|
|
272.7
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
4.5
|
|
|
0.6
|
|
|
58.3
|
|
|
37.1
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
46.9
|
|
|
$
|
62.9
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.59
|
|
|
$
|
0.81
|
|
|
$
|
3.06
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
46.9
|
|
|
$
|
62.9
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Defined benefit plans,
net of tax
|
(24.9)
|
|
|
11.6
|
|
|
(19.6)
|
|
|
16.7
|
|
|
Foreign currency
translation adjustments
|
(18.2)
|
|
|
(5.9)
|
|
|
(3.2)
|
|
|
(70.3)
|
|
|
Changes in
cash flow hedges
|
(3.9)
|
|
|
3.4
|
|
|
(10.3)
|
|
|
(6.0)
|
|
|
Other comprehensive
income (loss)
|
(47.0)
|
|
|
9.1
|
|
|
(33.1)
|
|
|
(59.6)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
(0.1)
|
|
|
$
|
72.0
|
|
|
$
|
207.6
|
|
|
$
|
176.0
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(in
millions)
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
481.2
|
|
|
$
|
282.5
|
|
|
Accounts receivable,
net
|
560.0
|
|
|
539.1
|
|
|
Inventories,
net
|
219.5
|
|
|
230.5
|
|
|
Prepaid expenses and
other
|
75.8
|
|
|
72.1
|
|
|
Total current
assets
|
1,336.5
|
|
|
1,124.2
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,093.7
|
|
|
1,046.2
|
|
|
Deferred income
taxes
|
356.4
|
|
|
373.6
|
|
|
Goodwill
|
154.0
|
|
|
154.4
|
|
|
GM postretirement
cost sharing asset
|
236.1
|
|
|
243.2
|
|
|
Other assets and
deferred charges
|
271.4
|
|
|
261.1
|
|
|
Total
assets
|
$
|
3,448.1
|
|
|
$
|
3,202.7
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
|
3.3
|
|
|
$
|
3.3
|
|
|
Accounts
payable
|
382.3
|
|
|
412.7
|
|
|
Accrued compensation
and benefits
|
139.3
|
|
|
128.0
|
|
|
Deferred
revenue
|
24.6
|
|
|
22.9
|
|
|
Other accrued
expenses
|
102.0
|
|
|
132.3
|
|
|
Total current
liabilities
|
651.5
|
|
|
699.2
|
|
|
|
|
|
|
Long-term debt,
net
|
1,400.9
|
|
|
1,375.7
|
|
|
Deferred income
taxes
|
15.0
|
|
|
6.8
|
|
|
Deferred
revenue
|
70.8
|
|
|
65.7
|
|
|
Postretirement
benefits and other long-term liabilities
|
779.9
|
|
|
753.8
|
|
|
Total
liabilities
|
2,918.1
|
|
|
2,901.2
|
|
|
|
|
|
|
Total stockholders'
equity
|
530.0
|
|
|
301.5
|
|
|
Total liabilities
and stockholders' equity
|
$
|
3,448.1
|
|
|
$
|
3,202.7
|
|
|
AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(in
millions)
|
|
(in
millions)
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
46.9
|
|
|
$
|
62.9
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
51.4
|
|
|
48.7
|
|
|
201.8
|
|
|
198.4
|
|
|
Other
|
|
18.3
|
|
|
(2.1)
|
|
|
(34.9)
|
|
|
(56.4)
|
|
|
Net cash provided
by operating activities
|
|
116.6
|
|
|
109.5
|
|
|
407.6
|
|
|
377.6
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(64.3)
|
|
|
(61.4)
|
|
|
(223.0)
|
|
|
(193.5)
|
|
|
Proceeds from sale of
property, plant and equipment
|
|
1.0
|
|
|
0.1
|
|
|
1.7
|
|
|
0.3
|
|
|
Proceeds from
government grants
|
|
—
|
|
|
5.1
|
|
|
2.8
|
|
|
5.1
|
|
|
Other
|
|
(4.6)
|
|
|
—
|
|
|
(9.2)
|
|
|
—
|
|
|
Net cash used in
investing activities
|
|
(67.9)
|
|
|
(56.2)
|
|
|
(227.7)
|
|
|
(188.1)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
0.8
|
|
|
(134.5)
|
|
|
23.3
|
|
|
(140.2)
|
|
|
Purchase of
noncontrolling interest
|
|
—
|
|
|
(1.1)
|
|
|
—
|
|
|
(1.1)
|
|
|
Purchase of treasury
stock
|
|
—
|
|
|
(0.2)
|
|
|
(5.2)
|
|
|
(3.1)
|
|
|
Employee stock option
exercises
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
0.8
|
|
|
Net cash provided
by (used in) financing activities
|
|
0.8
|
|
|
(135.5)
|
|
|
18.4
|
|
|
(143.6)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(2.2)
|
|
|
(0.9)
|
|
|
0.4
|
|
|
(12.6)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
47.3
|
|
|
(83.1)
|
|
|
198.7
|
|
|
33.3
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
433.9
|
|
|
365.6
|
|
|
282.5
|
|
|
249.2
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
481.2
|
|
|
$
|
282.5
|
|
|
$
|
481.2
|
|
|
$
|
282.5
|
|
|
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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
46.9
|
|
|
$
|
62.9
|
|
|
$
|
240.7
|
|
|
$
|
235.6
|
|
|
Interest
expense
|
23.2
|
|
|
24.5
|
|
|
93.4
|
|
|
99.2
|
|
|
Income tax
expense
|
4.5
|
|
|
0.6
|
|
|
58.3
|
|
|
37.1
|
|
|
Depreciation and
amortization
|
51.4
|
|
|
48.7
|
|
|
201.8
|
|
|
198.4
|
|
|
EBITDA
|
126.0
|
|
|
136.7
|
|
|
594.2
|
|
|
570.3
|
|
|
Restructuring and
acquisition-related costs
|
22.2
|
|
|
—
|
|
|
26.2
|
|
|
—
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
Non-recurring
items(b)
|
—
|
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
148.2
|
|
|
$
|
137.5
|
|
|
$
|
619.4
|
|
|
$
|
571.1
|
|
|
Adjusted earnings
per share(c)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.59
|
|
|
$
|
0.81
|
|
|
$
|
3.06
|
|
|
$
|
3.02
|
|
|
Restructuring and
acquisition-related costs
|
0.28
|
|
|
—
|
|
|
0.34
|
|
|
—
|
|
|
Debt refinancing and
redemption costs
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
Non-recurring
items(b)
|
—
|
|
|
(0.15)
|
|
|
(0.01)
|
|
|
(0.15)
|
|
|
Tax effect of
adjustments
|
(0.09)
|
|
|
—
|
|
|
(0.09)
|
|
|
—
|
|
|
Adjusted earnings
per share
|
$
|
0.78
|
|
|
$
|
0.67
|
|
|
$
|
3.30
|
|
|
$
|
2.88
|
|
|
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.
|
|
|
Net
debt(d) to capital
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(in millions,
except percentages)
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
3.3
|
|
|
$
|
3.3
|
|
|
Long-term debt,
net
|
1,400.9
|
|
|
1,375.7
|
|
|
Total debt,
net
|
1,404.2
|
|
|
1,379.0
|
|
|
Less: cash and cash
equivalents
|
481.2
|
|
|
282.5
|
|
|
Net debt at end of
period
|
923.0
|
|
|
1,096.5
|
|
|
Stockholders'
equity
|
530.0
|
|
|
301.5
|
|
|
Total invested
capital at end of period
|
$
|
1,453.0
|
|
|
$
|
1,398.0
|
|
|
Net debt to
capital(d)
|
63.5
|
%
|
|
78.4
|
%
|
|
Free cash flow and
Adjusted free cash flow(e)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
116.6
|
|
|
$
|
109.5
|
|
|
$
|
407.6
|
|
|
$
|
377.6
|
|
|
Less: Capital
expenditures net of proceeds
from the sale of property, plant and equipment and
from government grants
|
(63.3)
|
|
|
(56.2)
|
|
|
(218.5)
|
|
|
(188.1)
|
|
|
Free cash
flow
|
53.3
|
|
|
53.3
|
|
|
189.1
|
|
|
189.5
|
|
|
Add: Cash payments
for restructuring and acquisition-related costs
|
9.5
|
|
|
—
|
|
|
9.5
|
|
|
—
|
|
|
Adjusted free cash
flow
|
$
|
62.8
|
|
|
$
|
53.3
|
|
|
$
|
198.6
|
|
|
$
|
189.5
|
|
________________________________________
|
(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 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, together with other measures, to
measure our operating performance relative to other Tier 1
automotive suppliers. 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)
|
Non-recurring items
for the twelve months ended December 31, 2016 reflect a $1.0
million investment gain related to the final distribution of the
Reserve Yield Plus Fund. Non-recurring items for the three
and twelve months ended December 31, 2015 reflect a favorable
adjustment to income tax expense of $11.5 million related to the
resolution of transfer pricing audits in Mexico.
|
|
|
|
(c)
|
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 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.
|
|
|
|
(d)
|
Net debt is equal to
total debt, net less cash and cash equivalents. Net
debt to capital is equal to net debt divided by the sum of
stockholders' equity and net debt. We believe that net debt
to capital is a meaningful measure of financial condition as it is
commonly utilized by management, investors and creditors to assess
relative capital structure risk. Other companies may
calculate net debt to capital differently.
|
|
|
|
(e)
|
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 and government grants. Adjusted free cash flow
excludes 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aam-reports-fourth-quarter-and-full-year-2016-financial-results-300405412.html
SOURCE AAM