AAM Reports Second Quarter 2013 Financial Results - Revised
(Thomson Reuters ONE) -
In the news release, AAM Reports Second Quarter 2013 Financial Results, by
American Axle & Manufacturing Holdings, Inc. issued over Thomson on August
2, 2013, there was a typographical error. The sixth paragraph, final sentence,
should read "$1,504 in the first quarter of 2013" rather than "$1,504 million in
the first quarter of 2013". The complete, corrected release follows:
Detroit, Michigan, August 2, 2013-- American Axle & Manufacturing Holdings, Inc.
(AAM), which is traded as AXL on the NYSE, today reported its financial results
for the second quarter 2013.
Second Quarter 2013 Results
* Second quarter 2013 sales of $799.6 million, up 8.1% on a year-over-year
basis
* Non-GM sales grew 12.9% on a year-over-year basis to $223.8 million
* Gross profit of $122.2 million, or 15.3% of sales
* Operating income of $61.7 million, or 7.7% of sales
* Net income of $25.8 million, or $0.34 per share
* Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization excluding the impact of non-recurring or extraordinary items)
of $102.3 million or approximately 12.8% of sales
AAM's net income in the second quarter of 2013 was $25.8 million, or $0.34 per
share. This compares to net income of $4.7 million or $0.06 per share in the
second quarter of 2012. In the second quarter of 2012, AAM's results reflected
the impact of special charges and restructuring costs of $36.5 million (or $0.49
per share), related to the closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility.
"AAM is pleased to report solid sequential sales growth and improved
profitability in the second quarter of 2013," said AAM's President and Chief
Executive Officer, David C. Dauch. "AAM is benefiting from a strong recovery in
the North American light truck market, as well as the launch of many new
products designed to help our global customer base increase fuel efficiency,
reduce emissions and improve safety, ride and handling performance. The
combination of these factors and the continued progress in our operational
efficiency position us to continue improving AAM's financial performance in the
second half of 2013."
Net sales in the second quarter of 2013 increased approximately 8.1% to $799.6
million as compared to $739.8 million in the second quarter of 2012. Non-GM
sales were up 12.9% to $223.8 million in the second quarter of 2013 as compared
to $198.2 million in the second quarter of 2012.
AAM's net sales in the first half of 2013 increased approximately 4.7% to $1.56
billion as compared to $1.49 billion in the first half of 2012. Non-GM sales in
the first half of 2013 increased approximately 5.1% on a year-over-year basis to
$411.9 million as compared to $391.8 million in the first half of 2012.
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
second quarter of 2013, AAM's content-per-vehicle increased to $1,554 as
compared to $1,439 in the second quarter of 2012 and $1,504 in the first quarter
of 2013.
AAM's gross profit in the second quarter of 2013 was $122.2 million or 15.3% of
sales. For the second quarter of 2012, AAM's gross profit was $85.8 million or
11.6% of sales.
AAM's gross profit for the first half of 2013 was $226.5 million as compared to
$225.0 million in the first half of 2012. Gross margin was 14.6% in the first
half of 2013 as compared to 15.1% in the first half of 2012.
AAM's SG&A spending in the second quarter of 2013 was $60.5 million, or 7.6% of
sales, as compared to $55.5 million, or 7.5% of sales, in the second quarter of
2012. AAM's R&D spending in the second quarter of 2013 was $27.3 million as
compared to $28.8 million in the second quarter of 2012.
In the first half of 2013, AAM's SG&A spending was $120.1 million as compared to
$117.3 million in the first half of 2012. AAM's R&D spending decreased $3.1
million in the first half of 2013 on a year-over-year basis to $55.8 million as
compared to $58.9 million in the first half of 2012.
In the second quarter of 2013, AAM's operating income was $61.7 million or 7.7%
of sales as compared to $30.3 million or 4.1% of sales in the second quarter of
2012.
AAM's operating income in the first half of 2013 was $106.4 million as compared
to $107.7 million in the first half of 2012. Operating margin was 6.8% in the
first half of 2013 as compared to 7.2% in the first half of 2012.
In the second quarter of 2013, AAM's net income was $25.8 million or $0.34 per
share. For the second quarter of 2012, AAM's net income was $4.7 million or
$0.06 per share.
AAM defines Adjusted EBITDA to be earnings before interest, taxes, depreciation
and amortization excluding the impact of debt refinancing and redemption costs.
In the second quarter of 2013, AAM's Adjusted EBITDA was $102.3 million or
12.8% of sales. In the first half of 2013, AAM's Adjusted EBITDA was $188.9
million or 12.1% of sales.
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 the sale-leaseback of equipment.
Net cash provided by operating activities for the second quarter 2013 was $60.0
million. Capital spending, net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment, for the second quarter 2013 was
$56.7 million. Reflecting the impact of this activity, AAM generated free cash
flow of $3.3 million for the second quarter 2013.
Net cash provided by operating activities for the first half of 2013 was $33.2
million. Capital spending, net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment, for the first half of 2013 was
$100.6 million. Reflecting the impact of this activity, AAM's free cash flow
was a use of $67.4 million in the first half of 2013.
A conference call to review AAM's second quarter 2013 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 5:00 p.m. ET on August 2, 2013
until 5:00 p.m. ET August 9, 2013 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 14713803.
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 information is reconciled to its closest GAAP measure
in accordance with Securities and Exchange Commission rules and is included in
the attached supplemental data.
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.
AAM is a world leader in the manufacture, engineering, design and validation of
driveline and drivetrain systems and related components and modules, chassis
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, Pennsylvania and Indiana), AAM
also has offices or facilities in Brazil, China, Germany, India, Japan,
Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand.
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," 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:
global economic conditions, including the impact of the continuing market
weakness in the Euro-zone; reduced purchases of our products by General Motors
Company (GM), Chrysler Group LLC (Chrysler) or other customers; reduced demand
for our customers' products (particularly light trucks and sport utility
vehicles (SUVs) produced by GM and Chrysler); 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; our ability to respond to changes in technology, increased
competition or pricing pressures; 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; liabilities arising from warranty
claims, product recall or field actions, product liability and legal proceedings
to which we are or may become a party; our ability to achieve the level of cost
reductions required to sustain global cost competitiveness; our ability to
attract new customers and programs for new products; price volatility in, or
reduced availability of, fuel; our ability to develop and produce new products
that reflect market demand; lower-than-anticipated market acceptance of new or
existing products; risks inherent in our international operations (including
adverse changes in political stability, taxes and other law changes, potential
disruptions of production and supply, and currency rate fluctuations); 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; availability of financing for working
capital, capital expenditures, research and development (R&D) or other general
corporate purposes, including 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; 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); changes in liabilities arising from pension and other
postretirement benefit obligations; our ability to attract and retain key
associates; risks of noncompliance with environmental laws and regulations or
risks of environmental issues that could result in unforeseen costs at our
facilities; 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; our ability to consummate and integrate acquisitions and joint
ventures; 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...
Christopher M. Son
Director, Investor Relations,
Corporate Communications and Marketing
(313) 758-4814
chris.son(at)aam.com
Liz Ventimiglia
Manager, Investor Relations
(313) 758-4635
liz.ventimiglia(at)aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended Six months ended
June 30, June 30,
-------------------------- --------------------------
2013 2012 2013 2012
----------- -------------- ------------- ------------
(in millions, except per (in millions, except per
share data) share data)
Net sales $ 799.6 $ 739.8 $ 1,555.2 $ 1,491.3
Cost of goods sold 677.4 654.0 1,328.7 1,266.3
----------- -------------- ------------- ------------
Gross profit 122.2 85.8 226.5 225.0
Selling, general and
administrative expenses 60.5 55.5 120.1 117.3
----------- -------------- ------------- ------------
Operating income 61.7 30.3 106.4 107.7
Interest expense (28.8 ) (23.4 ) (57.9 ) (47.4 )
Investment income 0.2 0.1 0.3 0.4
Other income (expense)
Debt refinancing and
redemption costs 0.1 - (11.2 ) -
Other, net (2.0 ) (0.6 ) (1.5 ) (1.8 )
----------- -------------- ------------- ------------
Income before income
taxes 31.2 6.4 36.1 58.9
Income tax expense 5.4 1.7 3.0 3.9
----------- -------------- ------------- ------------
Net income 25.8 4.7 33.1 55.0
Net loss attributable to
noncontrolling interests - - - 0.9
----------- -------------- ------------- ------------
Net income attributable
to AAM $ 25.8 $ 4.7 $ 33.1 $ 55.9
----------- -------------- ------------- ------------
Diluted earnings per
share $ 0.34 $ 0.06 $ 0.43 $ 0.74
----------- -------------- ------------- ------------
Diluted shares
outstanding 76.9 75.1 76.5 75.1
----------- -------------- ------------- ------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
---------------------- --------------------
2013 2012 2013 2012
---------- ----------- ---------- ---------
(in millions)
Net income $ 25.8 $ 4.7 $ 33.1 $ 55.0
Other comprehensive income (loss),
net of tax
Defined benefit plans, net of tax
of $(0.8) million and $(0.1)
million for the three and six
months ended June 30, 2013,
respectively 1.7 (0.5 ) 0.6 (14.5 )
Foreign currency translation
adjustments (21.7 ) (22.5 ) (16.8 ) (11.8 )
Change in derivatives (2.1 ) (0.2 ) (1.6 ) 5.4
---------- ----------- ---------- ---------
Other comprehensive loss (22.1 ) (23.2 ) (17.8 ) (20.9 )
---------- ----------- ---------- ---------
Comprehensive income (loss) 3.7 (18.5 ) 15.3 34.1
Net loss attributable to
noncontrolling interests - - - 0.9
Foreign currency translation
adjustments attributable to
noncontrolling interests - - - 0.2
---------- ----------- ---------- ---------
Comprehensive income (loss)
attributable to AAM $ 3.7 $ (18.5 ) $ 15.3 $ 34.8
---------- ----------- ---------- ---------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2013 2012
------------- --------------
(in millions)
ASSETS
Assets
Cash and cash equivalents $ 78.9 $ 62.4
Accounts receivable, net 559.5 463.4
Inventories, net 233.2 224.3
Prepaid expenses and other current assets 120.6 122.0
------------- --------------
Total current assets 992.2 872.1
Property, plant and equipment, net 1,036.8 1,009.7
Deferred income taxes 366.2 366.1
Goodwill 156.2 156.4
GM postretirement cost sharing asset 252.5 259.7
Other assets and deferred charges 204.8 202.0
------------- --------------
Total assets $ 3,008.7 $ 2,866.0
------------- --------------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities and Stockholders' Deficit
Accounts payable $ 450.7 $ 396.1
Accrued compensation and benefits 90.1 84.9
Deferred revenue 15.8 17.2
Accrued expenses and other current liabilities 90.4 102.6
------------- --------------
Total current liabilities 647.0 600.8
Long-term debt 1,546.5 1,454.1
Deferred revenue 79.5 82.2
Postretirement benefits and other long-term
liabilities 837.3 849.7
------------- --------------
Total liabilities 3,110.3 2,986.8
Total stockholders' deficit (101.6 ) (120.8 )
------------- --------------
Total liabilities and stockholders' deficit $ 3,008.7 $ 2,866.0
------------- --------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
--------------------- --------------------
2013 2012 2013 2012
---------- ---------- ---------- ---------
(in millions) (in millions)
Operating activities
Net income $ 25.8 $ 4.7 $ 33.1 $ 55.0
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and amortization 42.4 37.0 83.7 73.7
Other (8.2 ) 54.4 (83.6 ) (104.1 )
---------- ---------- ---------- ---------
Net cash provided by operating
activities 60.0 96.1 33.2 24.6
---------- ---------- ---------- ---------
Investing Activities
Purchases of property, plant &
equipment (73.6 ) (48.4 ) (121.5 ) (92.9 )
Proceeds from sale of property,
plant & equipment 4.8 0.3 4.9 1.2
Proceeds from sale-leaseback of
equipment 12.1 - 16.0 -
---------- ---------- ---------- ---------
Net cash used in investing
activities (56.7 ) (48.1 ) (100.6 ) (91.7 )
---------- ---------- ---------- ---------
Financing Activities
Net increase (decrease) in long-
term debt (24.0 ) (74.1 ) 90.7 (7.3 )
Debt issuance costs (0.4 ) - (6.6 ) -
Purchase of noncontrolling
interest - - - (4.0 )
Employee stock option exercises 0.8 - 0.8 0.1
Purchase of treasury stock (0.1 ) - (0.1 ) (5.9 )
---------- ---------- ---------- ---------
Net cash provided by (used in)
financing activities (23.7 ) (74.1 ) 84.8 (17.1 )
---------- ---------- ---------- ---------
Effect of exchange rate changes on
cash (1.5 ) (1.5 ) (0.9 ) 0.2
---------- ---------- ---------- ---------
Net increase (decrease) in cash
and cash equivalents (21.9 ) (27.6 ) 16.5 (84.0 )
Cash and cash equivalents at
beginning of period 100.8 112.8 62.4 169.2
---------- ---------- ---------- ---------
Cash and cash equivalents at end
of period $ 78.9 $ 85.2 $ 78.9 $ 85.2
---------- ---------- ---------- ---------
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,
----------------------- ----------------------
2013 2012 2013 2012
----------- ----------- ----------- ----------
(in millions) (in millions)
Net income attributable to AAM $ 25.8 $ 4.7 $ 33.1 $ 55.9
Interest expense 28.8 23.4 57.9 47.4
Income tax expense 5.4 1.7 3.0 3.9
Depreciation and amortization 42.4 37.0 83.7 73.7
----------- ----------- ----------- ----------
EBITDA 102.4 66.8 177.7 180.9
Debt refinancing and redemption
costs (0.1 ) - 11.2 -
Other special charges,
curtailment gains and
restructuring costs((b)) - 36.5 - 31.2
----------- ----------- ----------- ----------
ADJUSTED EBITDA $ 102.3 $ 103.3 $ 188.9 $ 212.1
----------- ----------- ----------- ----------
Net debt((c) )to capital
June 30, December 31,
2013 2012
------------- --------------
(in millions, except
percentages)
Total debt $ 1,546.5 $ 1,454.1
Less: cash and cash equivalents 78.9 62.4
------------- --------------
Net debt at end of period 1,467.6 1,391.7
Stockholders' deficit (101.6 ) (120.8 )
------------- --------------
Total invested capital at end of period $ 1,366.0 $ 1,270.9
------------- --------------
Net debt to capital((d)) 107.4 % 109.5 %
------------- --------------
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.
Free Cash Flow((e))
Three months ended Six months ended
June 30, June 30,
--------------------- ----------------------
2013 2012 2013 2012
---------- ---------- ----------- ----------
(in millions) (in millions)
Net cash provided by operating
activities $ 60.0 $ 96.1 $ 33.2 $ 24.6
Less: Purchases of property, plant
& equipment, net of proceeds from
sale of property, plant &
equipment and sale-leaseback of
equipment (56.7 ) (48.1 ) (100.6 ) (91.7 )
---------- ---------- ----------- ----------
Free cash flow $ 3.3 $ 48.0 $ (67.4 ) $ (67.1 )
---------- ---------- ----------- ----------
________________________________________
a. We define EBITDA to be earnings before interest, taxes, depreciation and
amortization. For 2013, Adjusted EBITDA is defined as EBITDA excluding
impact of debt refinancing and redemption costs. For 2012, Adjusted EBITDA
is defined as EBITDA excluding the impact of curtailment gains,
restructuring costs and special charges related to the closure of the
Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility, and
debt refinancing and redemption costs. 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. Special charges and restructuring costs of $36.5 million for three months
ended June 30, 2012 and $31.2 million for the six months ended June
30, 2012 primarily relate to the closure of our Detroit Manufacturing
Complex and Cheektowaga Manufacturing Facility. This special charge
activity includes $28.1 million of expense for a contingency related to a
claim made by the International UAW for pension and postretirement benefits
in the second quarter of 2012 and a $21.8 million postretirement benefit
curtailment gain in the first quarter of 2012.
c. Net debt is equal to total debt less cash and cash equivalents.
d. Net debt to capital is equal to net debt divided by the sum of stockholders'
deficit 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 as net cash provided by operating activities less
capital expenditures net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment. For purposes of calculating
free cash flow, AAM excludes the impact of purchase buyouts of leased
equipment, if any. We believe free cash flow is a meaningful measure as it
is 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 is also a key metric used in our
calculation of incentive compensation. Other companies may calculate free
cash flow differently.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: American Axle & Manufacturing Holdings, Inc via Thomson Reuters ONE
[HUG#1720947]
Unternehmensinformation / Kurzprofil:
Datum: 02.08.2013 - 21:00 Uhr
Sprache: Deutsch
News-ID 284475
Anzahl Zeichen: 36145
contact information:
Town:
Detroit, MI
Kategorie:
Business News
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