TROY, Mich., Nov. 15, 2011 /PRNewswire-FirstCall/ -- Meritor,
Inc. (NYSE: MTOR) today reported financial results for its fourth
quarter and full fiscal year ended Sept. 30,
2011.
Fourth-Quarter Highlights
- Sales from continuing operations were $1.2 billion, up $276
million or 29 percent, from the same period last year.
- Net income on a GAAP basis was $31
million compared to $2 million
in the prior year's fourth quarter.
- Income from continuing operations was $38 million compared to $9
million in the same period last year.
- Adjusted income from continuing operations was $43 million, compared to $14 million in the prior year's fourth
quarter.
- Adjusted EBITDA was $97 million,
up $22 million from the same period
last year.
- Cash flow from operations was $60
million in the fourth quarter of fiscal year 2011, compared
to $72 million in the same period
last year.
- Free cash flow for the quarter was $23
million, compared to $42
million in the same period last year.
"Our fourth-quarter revenue and earnings were in line with our
expectations," said Chairman, CEO and President Chip McClure. "Cash conversion of earnings was
better than expected due to strong accounts receivables and
inventory management. Commercial truck demand globally remained
strong and we reported a 29 percent increase in adjusted EBITDA for
the entire company year-over-year."
Fourth-Quarter Results 2011
For the fourth quarter of fiscal year 2011, Meritor posted sales
of $1.2 billion, up 29 percent from
the same period last year. The increase in sales was primarily due
to continued strength in truck demand with all segments
contributing to the revenue growth. As compared to the third
quarter of fiscal year 2011, sales in the fourth quarter were
slightly lower due to typical seasonal declines in the European
commercial truck and China
off-highway markets.
Income from continuing operations, on a GAAP basis, was
$38 million or $0.40 per diluted share, compared to $9 million or $0.09
per diluted share in the prior year. Income from continuing
operations reflects an effective tax rate of approximately 16
percent, which was relatively low due to $14
million of income tax benefits recognized in the quarter
associated with the year-end remeasurement of the company's retiree
healthcare liabilities.
Adjusted income from continuing operations in the fourth quarter
of fiscal year 2011 was $43 million
compared to $14 million a year
ago.
Adjusted EBITDA was $97 million,
compared to $75 million in the fourth
quarter of fiscal year 2010. Adjusted EBITDA margin was 8 percent
in the fourth quarter of fiscal year 2011, unchanged from the same
period last year. Prior year's results include approximately
$7 million of income related to a
gain on the curtailment of the company's U.K. pension plan.
Free cash flow for the fourth quarter of fiscal year 2011 was
$23 million, compared to $42 million in the same period last year.
Fourth-Quarter 2011 Segment Results
Commercial Truck sales were $768
million, up $221 million from
the same period last year, driven primarily by higher volume in all
regions. Commercial Truck Segment EBITDA was $49 million for the quarter, up from $32 million in the fourth quarter of fiscal year
2010, primarily due to the higher sales as well as higher earnings
from our unconsolidated joint ventures.
Sales for the company's Industrial segment were $269 million, up $49
million from the fourth quarter of fiscal year 2010. The
increase in sales was primarily driven by higher sales in
Asia Pacific as well as sales of
products associated with the Caiman defense program. Industrial
Segment EBITDA was $18 million, up
$4 million from the same period last
year.
Aftermarket & Trailer posted sales of $274 million, up $37
million from the same period last year. Aftermarket &
Trailer Segment EBITDA was $32
million, up $10 million from
the fourth quarter of fiscal year 2010. Sales growth was driven by
an increase in truck tonnage in North
America and Europe.
Fiscal Year 2011 Results
For fiscal year 2011, Meritor posted sales of $4.6 billion, up 31 percent from the prior fiscal
year. Strengthening truck demand in all regions was the primary
driver of the revenue growth.
Net income for fiscal year 2011 was $63
million compared to $12
million in the prior fiscal year. Income from continuing
operations for fiscal year 2011 was $65
million, or $0.67 per diluted
share, compared to $14 million, or
$0.16 per diluted share for 2010.
Adjusted income from continuing operations in fiscal year 2011 was
$82 million, or $0.85 per diluted share, compared to $18 million, or $0.21 per diluted share, a year ago.
Adjusted EBITDA was $347 million,
compared to $260 million in fiscal
year 2010. Adjusted EBITDA margin was 7.5 percent in fiscal year
2011 compared to 7.4 percent in the prior fiscal year.
Cash provided by operating activities for fiscal year 2011 was
$41 million, compared to $211 million in fiscal year 2010. Free cash flow
for fiscal year 2011 was an outflow of $70
million compared to free cash flow of $122 million in fiscal year 2010. Fiscal year
2011 free cash flow was negative primarily due to higher
investments in inventory and machinery and equipment as global
commercial vehicle and industrial markets continued to strengthen
as well as an increased use of cash by the company's discontinued
operations.
Fiscal 2011 Accomplishments
- Achieve EBITDA margin targets and sustain momentum of cash flow
conversion
- Implemented agreements for accelerated commodity cost
recoveries.
- Completed divestiture of light vehicle business.
- Closed European trailer axle business.
- Successfully execute as global markets recover
- Worked with customers to meet demand as commercial truck
volumes strengthened through the year.
- Received 14 customer awards for performance in three major
regions of the world including the Excellence in Commercial
Relationship award from MAN.
- Drive innovation – accelerating new products and advanced fuel
efficient technologies
- Launched 18X rear axle, which reduces fuel consumption by up to
two percent for fast and heavy long-haul operations.
- Began production of ProTec High Mobility Independent Suspension
for military and off-highway applications.
- Designed more powerful front brakes and highly effective rear
axle brakes to meet the new stopping distance requirement in
the United States.
- Maintain focus on sustainable profitable growth
- Upgraded and modernized equipment for axle forgings, housings,
and machining.
- Expanded manufacturing for off-highway axles in China.
- Initiated investment in manufacturing to support MAN in
Brazil.
- Invested in new distribution centers for Aftermarket in
Australia, Brazil, China, Germany and India.
- Continue focus on strengthening the balance sheet
- Received credit rating upgrades from Moody's and S&P,
improving corporate ratings from B3/B- to B2/B, respectively.
- Initiated additional actions throughout fiscal year 2011 to
increase liquidity.
2012 Priorities
With a clear vision to be the recognized leader in providing
drivetrain, mobility, braking and aftermarket solutions to the
global commercial vehicle and industrial markets, the company will
continue to remain diligently focused on the following priorities
for 2012:
- Execute EBITDA margin enhancing strategies.
- Secure pricing equal to Meritor's value proposition.
- Invest to alleviate premium costs.
- Continue collaboration with customers and suppliers to
profitably address demand.
- Continue to drive new product development.
- Reduce debt and implement other appropriate balance sheet
strategies.
Outlook for 2012
For fiscal year 2012, the company expects the following results
from continuing operations:
- Revenue to be approximately $4.8
billion.
- Adjusted EBITDA margin in the range of 8.2 percent to 8.6
percent.
- Adjusted income from continuing operations in the range of
$105 million to $135 million.
- Free cash flow before restructuring payments in the range of
$25 million to $75 million.
- Effective tax rate of approximately 40 percent.
For fiscal year 2012, the company anticipates the following
results for the entire company:
- Capital expenditures in the range of $100 million to $110 million.
- Interest expense in the range of $85
million to $95 million.
- Cash interest in the range of $75
million to $85 million.
- Cash income taxes in the range of $75
million to $95 million.
- Restructuring cash of approximately $20
million.
"We remain focused on our 2012 priorities and key initiatives,"
said McClure. "We will keep driving for sustainable and profitable
growth, collaboration with customers and suppliers, strategic
investments, new product introductions and cost management."
Fourth-Quarter Fiscal Year 2011 Conference Call
Meritor will host a telephone conference call and Web cast to
discuss the company's fourth-quarter and full-year results for
fiscal year 2011 on Tuesday, Nov. 15,
2011, at 9 a.m. (ET).
To participate, call (617) 213-4855 at least 10 minutes prior to
the start of the call. Please reference participant passcode
48702141 when dialing in. Investors can also listen to the
conference call in real time – or for seven days by recording – by
visiting www.meritor.com.
A replay of the call will be available from noon on Nov. 15, to 11:59
p.m. Nov. 22, 2011, by calling
(888) 286-8010 (within the United
States) or (617) 801-6888 for international calls. Please
refer to replay passcode number 58609662.
To access the listen-only audio Web cast, visit the Meritor Web
site at meritor.com and select the Web cast link from the home page
or the investor page.
About Meritor, Inc.
Meritor, Inc. is a leading global supplier of drivetrain,
mobility, braking and aftermarket solutions for commercial vehicle
and industrial markets. With more than a 100-year legacy of
providing innovative products that offer superior performance,
efficiency and reliability, the company serves commercial truck,
trailer, off-highway, defense, specialty and aftermarket customers
in more than 70 countries. Meritor is based in Troy, Mich., United
States, and is made up of more than 11,000 diverse employees
who apply their knowledge and skills in manufacturing facilities,
engineering centers, joint ventures, distribution centers and
global offices in 19 countries. Common stock is traded on the New
York Stock Exchange under the ticker symbol MTOR. For important
information about the company, visit the company's web site at
meritor.com.
Forward-Looking Statements
This release contains statements relating to future results
of the company (including certain projections and business trends)
that are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are typically identified by words or phrases such as
"believe," "expect," "anticipate," "estimate," "should," "are
likely to be," "will" and similar expressions. Actual results may
differ materially from those projected as a result of certain risks
and uncertainties, including but not limited to our ability to
successfully manage steeply increasing volumes in the commercial
truck markets, including working with our customers to adjust their
demands in light of the rapid acceleration of production:
availability and sharply rising costs of raw materials, including
steel, and our ability to manage or recover such costs; reduced
production for certain military programs and the return of volumes
of selected long-term military contracts to more normalized levels;
global economic and market cycles and conditions, including the
recent global economic crisis; risks inherent in operating abroad
(including foreign currency exchange rates and potential disruption
of production and supply due to terrorist attacks or acts of
aggression); the ability to achieve the expected benefits of
restructuring actions; the demand for commercial and specialty
vehicles for which we supply products; whether the liquidity of the
company will be affected by declining vehicle productions in the
future; OEM program delays; demand for and market acceptance of new
and existing products; successful development of new products;
reliance on major OEM customers and possible negative outcomes from
contract negotiations with our major customers; labor relations of
the company, its suppliers and customers, including potential
disruptions in supply of parts to our facilities or demand for our
products due to work stoppages; the financial condition of the
company's suppliers and customers, including potential
bankruptcies; possible adverse effects of any future suspension of
normal trade credit terms by our suppliers; potential difficulties
competing with companies that have avoided their existing contracts
in bankruptcy and reorganization proceedings; successful
integration of acquired or merged businesses; the ability to
achieve the expected annual savings and synergies from past and
future business combinations; success and timing of potential
divestitures; potential impairment of long-lived assets, including
goodwill; potential adjustment of the value of deferred tax assets;
competitive product and pricing pressures; the amount of the
company's debt; the ability of the company to continue to comply
with covenants in its financing agreements; the ability of the
company to access capital markets; credit ratings of the company's
debt; the outcome of existing and any future legal proceedings,
including any litigation with respect to environmental or
asbestos-related matters; the outcome of actual and potential
product liability, warranty and recall claims; rising costs of
pension and other postretirement benefits; and possible changes in
accounting rules; as well as other substantial costs, risks and
uncertainties, including but not limited to those detailed herein
and from time to time in other filings of the company with the SEC.
These forward-looking statements are made only as of the date
hereof, and the company undertakes no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as otherwise
required by law.
All earnings per share amounts are on a diluted basis. The
company's fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end on the
Sundays nearest Dec. 31, March 31 and June
30. All year and quarter references relate to the company's
fiscal year and fiscal quarters, unless otherwise
stated.
Non-GAAP Measures
In addition to the results reported in accordance with
accounting principles generally accepted in the United States ("GAAP") included throughout
this press release, the company has provided information regarding
Adjusted income or loss from continuing operations, Adjusted
diluted earnings per share from continuing operations, Adjusted
EBITDA, free cash flow and free cash flow from continuing
operations before restructuring payments which are non-GAAP
financial measures.
Adjusted income (loss) from continuing operations and Adjusted
diluted earnings (loss) per share from continuing operations are
defined as reported income or loss from continuing operations and
reported diluted earnings or loss per share from continuing
operations before restructuring expenses, asset impairment charges
and other special items as determined by management. Adjusted
EBITDA is defined as income (loss) from continuing operations
before interest, income taxes, depreciation and amortization,
non-controlling interests in consolidated joint ventures, loss on
sale of receivables, restructuring expenses, asset impairment
charges and other special items as determined by management. Free
cash flow is defined as cash flows provided by (used for) operating
activities less capital expenditures.
Management believes that the non-GAAP financial measures used in
this press release are useful to both management and investors in
their analysis of the company's financial position and results of
operations. In particular, management believes that Adjusted EBITDA
is a meaningful measure of performance as it is commonly utilized
by management and the investment community to analyze operating
performance in our industry. Further, management uses
Adjusted EBITDA for planning and forecasting future periods.
Management believes that free cash flow is useful in analyzing our
ability to service and repay debt.
Adjusted income (loss) from continuing operations, Adjusted
diluted earnings (loss) per share from continuing operations and
Adjusted EBITDA should not be considered a substitute for the
reported results prepared in accordance with GAAP and should not be
considered as an alternative to net income as an indicator of our
operating performance or to cash flows as a measure of liquidity.
Free cash flow should not be considered a substitute for cash
provided by (used for) operating activities, or other cash flow
statement data prepared in accordance with GAAP, or as a measure of
financial position or liquidity. In addition, these non-GAAP cash
flow measures do not reflect cash used to service debt or cash
received from the divestitures of businesses or sales of other
assets and thus do not reflect funds available for investment or
other discretionary uses. These non-GAAP financial measures, as
determined and presented by the company, may not be comparable to
related or similarly titled measures reported by other
companies.
Set forth on the following pages are reconciliations of these
non-GAAP financial measures to the most directly comparable
financial measures calculated and presented in accordance with
GAAP.
Segment EBITDA and EBITDA Margins
Segment EBITDA is defined as income (loss) from continuing
operations before interest expense, income taxes, depreciation and
amortization, noncontrolling interests in consolidated joint
ventures, loss on sale of receivables, restructuring costs and
asset impairment charges. We use Segment EBITDA as the primary
basis for the Chief Operating Decision Maker to evaluate the
performance of each of our reportable segments.
MERITOR,
INC.
CONSOLIDATED
STATEMENT OF INCOME
(Unaudited)
(In
millions, except per share amounts)
|
|
|
|
Quarter
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
1,217
|
|
$
|
941
|
|
$
|
4,622
|
|
$
|
3,530
|
|
|
Cost of sales
|
|
|
(1,099)
|
|
|
(823)
|
|
|
(4,146)
|
|
|
(3,105)
|
|
|
GROSS MARGIN
|
|
|
118
|
|
|
118
|
|
|
476
|
|
|
425
|
|
|
Selling,
general and administrative
|
|
|
(66)
|
|
|
(74)
|
|
|
(278)
|
|
|
(281)
|
|
|
Restructuring
costs
|
|
|
(7)
|
|
|
(5)
|
|
|
(22)
|
|
|
(6)
|
|
|
Other
operating expense
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(6)
|
|
|
OPERATING INCOME
|
|
|
45
|
|
|
39
|
|
|
174
|
|
|
132
|
|
|
Other
income, net
|
|
|
7
|
|
|
—
|
|
|
10
|
|
|
2
|
|
|
Equity in
earnings of affiliates
|
|
|
19
|
|
|
15
|
|
|
70
|
|
|
48
|
|
|
Interest
expense, net
|
|
|
(22)
|
|
|
(25)
|
|
|
(95)
|
|
|
(106)
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
49
|
|
|
29
|
|
|
159
|
|
|
76
|
|
|
Provision
for income taxes
|
|
|
(8)
|
|
|
(17)
|
|
|
(77)
|
|
|
(48)
|
|
|
INCOME FROM CONTINUING
OPERATIONS
|
|
|
41
|
|
|
12
|
|
|
82
|
|
|
28
|
|
|
LOSS FROM DISCONTINUED
OPERATIONS, net of tax
|
|
|
(7)
|
|
|
(7)
|
|
|
(2)
|
|
|
(2)
|
|
|
NET INCOME
|
|
|
34
|
|
|
5
|
|
|
80
|
|
|
26
|
|
|
Less: Net income attributable to
noncontrolling interests
|
|
|
(3)
|
|
|
(3)
|
|
|
(17)
|
|
|
(14)
|
|
|
NET INCOME ATTRIBUTABLE TO
MERITOR, INC.
|
|
$
|
31
|
|
$
|
2
|
|
$
|
63
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO
MERITOR, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
38
|
|
$
|
9
|
|
$
|
65
|
|
$
|
14
|
|
|
Loss from
discontinued operations
|
|
|
(7)
|
|
|
(7)
|
|
|
(2)
|
|
|
(2)
|
|
|
Net
income
|
|
$
|
31
|
|
$
|
2
|
|
$
|
63
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
0.40
|
|
$
|
0.09
|
|
$
|
0.67
|
|
$
|
0.16
|
|
|
Discontinued
operations
|
|
|
(0.08)
|
|
|
(0.07)
|
|
|
(0.02)
|
|
|
(0.02)
|
|
|
Diluted earnings per
share
|
|
$
|
0.32
|
|
$
|
0.02
|
|
$
|
0.65
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted average common shares
outstanding
|
|
|
96.8
|
|
|
96.5
|
|
|
96.9
|
|
|
87.6
|
|
|
Prior
periods have been recast for discontinued
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERITOR,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEET
(Unaudited,
In millions)
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
217
|
|
$
|
343
|
|
|
Receivables, trade and other,
net
|
|
|
712
|
|
|
579
|
|
|
Inventories
|
|
|
460
|
|
|
382
|
|
|
Other current
assets
|
|
|
66
|
|
|
76
|
|
|
Assets of discontinued
operations
|
|
|
4
|
|
|
341
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
1,459
|
|
|
1,721
|
|
|
Net property
|
|
|
421
|
|
|
389
|
|
|
Goodwill
|
|
|
431
|
|
|
432
|
|
|
Other assets
|
|
|
352
|
|
|
337
|
|
|
TOTAL ASSETS
|
|
$
|
2,663
|
|
$
|
2,879
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
(DEFICIT):
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
84
|
|
$
|
—
|
|
|
Accounts payable
|
|
|
841
|
|
|
670
|
|
|
Other current
liabilities
|
|
|
327
|
|
|
358
|
|
|
Liabilities of discontinued
operations
|
|
|
1
|
|
|
362
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
1,253
|
|
|
1,390
|
|
|
Long-term debt
|
|
|
950
|
|
|
1,029
|
|
|
Retirement
benefits
|
|
|
1,096
|
|
|
1,162
|
|
|
Other liabilities
|
|
|
325
|
|
|
321
|
|
|
|
|
|
|
|
|
|
|
|
Total deficit attributable to
Meritor, Inc.
|
|
|
(995)
|
|
|
(1,054)
|
|
|
Noncontrolling
interests
|
|
|
34
|
|
|
31
|
|
|
TOTAL EQUITY
(DEFICIT)
|
|
|
(961)
|
|
|
(1,023)
|
|
|
TOTAL LIABILITIES AND EQUITY
(DEFICIT)
|
|
$
|
2,663
|
|
$
|
2,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERITOR,
INC.
CONSOLIDATED
BUSINESS SEGMENT INFORMATION
(Unaudited,
In millions)
|
|
|
|
Quarter
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Truck
|
|
$
|
768
|
|
|
547
|
|
$
|
2,806
|
|
|
1,960
|
|
|
Industrial
|
|
|
269
|
|
|
220
|
|
|
1,113
|
|
|
951
|
|
|
Aftermarket
& Trailer
|
|
|
274
|
|
|
237
|
|
|
1,020
|
|
|
909
|
|
|
Intersegment
Sales
|
|
|
(94)
|
|
|
(63)
|
|
|
(317)
|
|
|
(290)
|
|
|
Total
sales
|
|
$
|
1,217
|
|
|
941
|
|
$
|
4,622
|
|
|
3,530
|
|
|
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Truck
|
|
$
|
49
|
|
|
32
|
|
$
|
171
|
|
|
85
|
|
|
Industrial
|
|
|
18
|
|
|
14
|
|
|
74
|
|
|
94
|
|
|
Aftermarket
& Trailer
|
|
|
32
|
|
|
22
|
|
|
113
|
|
|
83
|
|
|
Segment
EBITDA
|
|
|
99
|
|
|
68
|
|
|
358
|
|
|
262
|
|
|
Unallocated Legacy and Corporate Expense,
net
|
|
|
(2)
|
|
|
7
|
|
|
(11)
|
|
|
(2)
|
|
|
Adjusted
EBITDA
|
|
$
|
97
|
|
|
75
|
|
$
|
347
|
|
|
260
|
|
|
Interest
Expense, Net
|
|
|
(22)
|
|
|
(25)
|
|
|
(95)
|
|
|
(106)
|
|
|
Provision for Income
Taxes
|
|
|
(8)
|
|
|
(17)
|
|
|
(77)
|
|
|
(48)
|
|
|
Depreciation
and Amortization
|
|
|
(17)
|
|
|
(16)
|
|
|
(66)
|
|
|
(69)
|
|
|
Restructuring
Costs
|
|
|
(7)
|
|
|
(5)
|
|
|
(22)
|
|
|
(6)
|
|
|
Loss on Sale
of Receivables
|
|
|
(4)
|
|
|
—
|
|
|
(10)
|
|
|
(3)
|
|
|
Other
|
|
|
2
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
Noncontrolling
Interests
|
|
|
(3)
|
|
|
(3)
|
|
|
(17)
|
|
|
(14)
|
|
|
Income from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Meritor,
Inc.
|
|
$
|
38
|
|
|
9
|
|
$
|
65
|
|
|
14
|
|
|
Loss from Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Meritor,
Inc.
|
|
|
(7)
|
|
|
(7)
|
|
|
(2)
|
|
|
(2)
|
|
|
Net Income
|
|
$
|
31
|
|
|
2
|
|
$
|
63
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior
periods have been recast for discontinued
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERITOR,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited,
In millions)
|
|
|
|
Twelve
Months Ended September 30,
|
|
|
|
|
2011
|
|
2010
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
82
|
|
$
|
28
|
|
|
Adjustments to income from
continuing operations:
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
66
|
|
|
69
|
|
|
Restructuring costs, net of
payments
|
|
|
9
|
|
|
(8)
|
|
|
Equity in
earnings of affiliates, net of dividends
|
|
|
(25)
|
|
|
(37)
|
|
|
Other adjustments
to income from continuing operations, net
|
|
|
35
|
|
|
9
|
|
|
Pension and
retiree medical expense
|
|
|
71
|
|
|
81
|
|
|
Pension and retiree medical
contributions
|
|
|
(71)
|
|
|
(114)
|
|
|
Proceeds from unwind of swap
agreement
|
|
|
—
|
|
|
7
|
|
|
Interest proceeds on note
receivable
|
|
|
—
|
|
|
12
|
|
|
Changes in off-balance sheet
accounts receivable factoring
|
|
|
144
|
|
|
63
|
|
|
Changes in assets and
liabilities
|
|
|
(213)
|
|
|
37
|
|
|
Operating cash flows provided by
continuing operations
|
|
|
98
|
|
|
147
|
|
|
Operating cash flows provided by
(used for) discontinued operations
|
|
|
(57)
|
|
|
64
|
|
|
CASH PROVIDED BY OPERATING
ACTIVITIES
|
|
|
41
|
|
|
211
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(105)
|
|
|
(55)
|
|
|
Other investing
activities
|
|
|
2
|
|
|
5
|
|
|
Net investing cash
flows used for continuing operations
|
|
|
(103)
|
|
|
(50)
|
|
|
Net investing cash flows used
for discontinued operations
|
|
|
(69)
|
|
|
(14)
|
|
|
CASH USED FOR INVESTING
ACTIVITIES
|
|
|
(172)
|
|
|
(64)
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Net change in
debt
|
|
|
—
|
|
|
(54)
|
|
|
Issuance and debt extinguishment
costs
|
|
|
—
|
|
|
(45)
|
|
|
Proceeds from stock
issuance
|
|
|
—
|
|
|
209
|
|
|
Other financing
activities
|
|
|
6
|
|
|
(1)
|
|
|
Net financing cash
flows provided by continuing operations
|
|
|
6
|
|
|
109
|
|
|
Net financing cash flows used
for discontinued operations
|
|
|
—
|
|
|
(12)
|
|
|
CASH PROVIDED BY FINANCING
ACTIVITIES
|
|
|
6
|
|
|
97
|
|
|
EFFECT OF CHANGES IN FOREIGN
CURRENCY EXCHANGE
|
|
|
|
|
|
|
|
|
RATES ON CASH AND
CASH EQUIVALENTS
|
|
|
(1)
|
|
|
4
|
|
|
CHANGE IN CASH AND CASH
EQUIVALENTS
|
|
|
(126)
|
|
|
248
|
|
|
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
|
|
|
343
|
|
|
95
|
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
|
$
|
217
|
|
$
|
343
|
|
|
Prior
periods have been recast for discontinued
operations.
|
|
|
|
|
|
|
|
|
|
MERITOR,
INC.
ADJUSTED
INCOME AND EARNINGS PER SHARE – RECONCILIATION
Non-GAAP
(Unaudited)
(In
millions, except per share amounts)
|
|
|
|
Quarter
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Income from continuing
operations
attributable
to Meritor, Inc.
|
|
$
|
38
|
|
$
|
9
|
|
$
|
65
|
|
$
|
14
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
7
|
|
|
5
|
|
|
22
|
|
|
6
|
|
|
Loss
on debt extinguishment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
Gain
on notes receivable
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(6)
|
|
|
Other
gain related to LVS divestiture
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Income
taxes
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
Adjusted
income from continuing operations
|
|
$
|
43
|
|
$
|
14
|
|
$
|
82
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
|
$
|
0.40
|
|
$
|
0.09
|
|
$
|
0.67
|
|
$
|
0.16
|
|
|
Impact of
adjustments on diluted earnings per share
|
|
|
0.05
|
|
|
0.05
|
|
|
0.18
|
|
|
0.05
|
|
|
Adjusted diluted earnings per
share from continuing operations
|
|
$
|
0.45
|
|
$
|
0.14
|
|
$
|
0.85
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior
periods have been recast for discontinued
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERITOR,
INC.
FREE CASH
FLOW - RECONCILIATION
Non-GAAP
(Unaudited,
in millions)
|
|
|
|
Quarter
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Cash flows
provided by operating activities – continuing
operations
|
|
$
|
61
|
|
$
|
29
|
|
$
|
98
|
|
$
|
147
|
|
|
Capital expenditures –
continuing operations
|
|
|
(37)
|
|
|
(23)
|
|
|
(105)
|
|
|
(55)
|
|
|
Free cash flow -
continuing operations
|
|
|
24
|
|
|
6
|
|
|
(7)
|
|
|
92
|
|
|
Cash flow
provided by (used for) operating activities - discontinued
operations
|
|
|
(1)
|
|
|
43
|
|
|
(57)
|
|
|
64
|
|
|
Capital
expenditures – discontinued operations
|
|
|
—
|
|
|
(7)
|
|
|
(6)
|
|
|
(34)
|
|
|
Free cash flow –
discontinued operations
|
|
|
(1)
|
|
|
36
|
|
|
(63)
|
|
|
30
|
|
|
Free cash flow – total
company
|
|
$
|
23
|
|
$
|
42
|
|
$
|
(70)
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow - continuing operations
|
|
$
|
24
|
|
$
|
6
|
|
$
|
(7)
|
|
$
|
92
|
|
|
Restructuring
payments
|
|
|
3
|
|
|
3
|
|
|
13
|
|
|
14
|
|
|
Free cash
flow from continuing operations before restructuring
payments
|
|
$
|
27
|
|
$
|
9
|
|
$
|
6
|
|
$
|
106
|
|
|
Prior
periods have been recast for discontinued
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Logo: http://photos.prnewswire.com/prnh/20110330/DE73783LOGO
)
SOURCE Meritor, Inc.