AAM Reports Third Quarter 2014 Financial Results
(Thomson Reuters ONE) -
Detroit, Michigan, October 31, 2014 -- American Axle & Manufacturing Holdings,
Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial
results for the third quarter 2014.
Third Quarter 2014 Results
* Third quarter 2014 sales of $950.8 million, up 15.8% on a year-over-year
basis
* Non-GM sales grew 26.5% on a year-over-year basis to $296.8 million
* Gross profit of $149.1 million, or 15.7% of sales
* Operating income of $85.1 million, or 9.0% of sales
* Net income of $48.6 million, or $0.63 per share
* EBITDA (earnings before interest, taxes, depreciation and amortization) of
$136.1 million or approximately 14.3% of sales
AAM's net income in the third quarter of 2014 was $48.6 million, or $0.63 per
share. This compares to a net income of $31.6 million, or $0.41 per share in
the third quarter of 2013.
"In the third quarter of 2014, AAM's financial results were highlighted by
strong cash flow and solid profitability driven by continued sales growth and
improvements in operational stability and productivity. Based on our progress
through the first three quarters of the year, AAM is on track to deliver more
than $100 million of positive free cash flow for the full year 2014," said David
C. Dauch, AAM's Chairman, President & Chief Executive Officer. "AAM's improved
free cash flow execution is helping to reduce our balance sheet leverage and is
strengthening our ability to invest in the continued development of innovative
new product, process and systems technologies designed to provide our customers
with measurable gains in fuel efficiency and power density, as well as improved
safety, ride and handling performance."
Net sales in the third quarter of 2014 increased approximately 15.8% on a year-
over-year basis to $950.8 million as compared to $820.8 million in the third
quarter of 2013. Non-GM sales were up 26.5% in the quarter to $296.8 million as
compared to $234.7 million in the third quarter of 2013.
AAM's net sales in the first nine months of 2014 increased by 16% to $2.76
billion as compared to $2.38 billion in the first nine months of 2013. Non-GM
sales in the first nine months of 2014 increased approximately 36.5% on a year-
over-year basis to $882.7 million as compared to $646.6 million in the first
nine months of 2013.
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
third quarter of 2014, AAM's content-per-vehicle increased to $1,676 as compared
to $1,560 in the third quarter of 2013 and $1,640 in the second quarter of 2014.
AAM's gross profit in the third quarter of 2014 increased 19.0% on a year-over-
year basis to $149.1 million as compared to $125.3 million in the third quarter
of 2013. Gross margin was 15.7% in the third quarter of 2014 as compared to
15.3% in the third quarter of 2013.
AAM's gross profit for the first nine months of 2014 increased 19.4% on a year-
over-year basis to $420.0 million as compared to $351.8 million in the first
nine months of 2013. Gross margin was 15.2% in the first nine months of 2014 as
compared to 14.8% in the first nine months of 2013.
AAM's SG&A expense in the third quarter of 2014 was $64.0 million, or 6.7% of
sales, as compared to $57.8 million, or 7.0% of sales, in the third quarter of
2013. AAM's R&D expense in the third quarter of 2014 was $26.4 million as
compared to $23.6 million in the third quarter of 2013.
In the first nine months of 2014, AAM's SG&A expense was $182.6 million, or
6.6% of sales, as compared to $177.9 million, or 7.5% of sales, for the first
nine months of 2013. AAM's R&D expense decreased $2.8 million in the first nine
months of 2014 on a year-over-year basis to $76.6 million compared to $79.4
million in the first nine months of 2013.
In the third quarter of 2014, AAM's operating income increased 26.1% to $85.1
million as compared to $67.5 million in the third quarter of 2013. Operating
margin was 9.0% in the third quarter of 2014 as compared to 8.2% in the third
quarter of 2013.
AAM's operating income in the first nine months of 2014 increased by 63.5
million to $237.4 million as compared to $173.9 million in the first nine months
of 2013. Operating margin was 8.6% in the first nine months of 2014 as compared
to 7.3% in the first nine months of 2013.
In the third quarter of 2014, AAM's net income was $48.6 million or $0.63 per
share. This compares to net income of $31.6 million or $0.41 per share in the
third quarter of 2013.
AAM defines EBITDA to be earnings before interest, taxes, depreciation and
amortization. In the third quarter of 2014, AAM's EBITDA was $136.1 million or
14.3% of sales. In the first nine months of 2014, AAM's EBITDA was $385.3
million or 14.0% of sales.
AAM defines free cash flow to be net cash provided by (used in) 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 third quarter of 2014 was
$149.2 million. Capital spending, net of proceeds from the sale of property,
plant and equipment and the sale-leaseback of equipment, for the third quarter
of 2014 was $52.3 million. Reflecting the impact of this activity, AAM
generated free cash flow of $96.9 million for the third quarter of 2014.
Net cash provided by operating activities for the first nine months of 2014 was
$231.6 million. Capital spending, net of proceeds from the sale of property,
plant and equipment and the sale-leaseback of equipment, for the first nine
months of 2014 was $147.7 million. Reflecting the impact of this activity, AAM
generated free cash flow of $83.9 million in the first nine months of 2014.
A conference call to review AAM's third quarter 2014 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 October
31, 2014 until 5:00 p.m. ET November 7, 2014 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 34605138.
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," "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), 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
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; our ability to respond to
changes in technology, increased competition or pricing pressures; 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; global economic conditions, including the impact of the
continued market weakness in the Euro-zone; 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); 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; price
volatility in, or reduced availability of, fuel; our ability to successfully
implement upgrades to our enterprise resource planning systems; 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 attract and retain key
associates; 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; 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 to consummate and integrate acquisitions and joint
ventures; 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...
Christopher M. Son
Director, Investor Relations,
Corporate Communications and Marketing
(313) 758-4814
chris.son(at)aam.com
Vitalie Stelea
Manager, Investor Relations
(313) 758-4635
vitalie.stelea(at)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,
-------------------------- --------------------------
2014 2013 2014 2013
----------- -------------- ------------- ------------
(in millions, except per (in millions, except per
share data) share data)
Net sales $ 950.8 $ 820.8 $ 2,756.5 $ 2,376.0
Cost of goods sold 801.7 695.5 2,336.5 2,024.2
----------- -------------- ------------- ------------
Gross profit 149.1 125.3 420.0 351.8
Selling, general and
administrative expenses 64.0 57.8 182.6 177.9
----------- -------------- ------------- ------------
Operating income 85.1 67.5 237.4 173.9
Interest expense (25.1 ) (30.0 ) (75.2 ) (87.9 )
Investment income 0.7 0.1 1.3 0.4
Other income (expense)
Debt refinancing and
redemption costs - - - (11.2 )
Other, net (0.8 ) 0.1 0.5 (1.4 )
----------- -------------- ------------- ------------
Income before income
taxes 59.9 37.7 164.0 73.8
Income tax expense 11.3 6.1 29.6 9.1
----------- -------------- ------------- ------------
Net income $ 48.6 $ 31.6 $ 134.4 $ 64.7
----------- -------------- ------------- ------------
Diluted earnings per
share $ 0.63 $ 0.41 $ 1.74 $ 0.84
----------- -------------- ------------- ------------
Diluted shares
outstanding 77.6 77.0 77.4 76.7
----------- -------------- ------------- ------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
--------------------- ---------------------
2014 2013 2014 2013
---------- ---------- ----------- ---------
(in millions)
Net income $ 48.6 $ 31.6 $ 134.4 $ 64.7
Other comprehensive income (loss),
net of tax
Defined benefit plans, net of tax
((a)) 0.6 15.1 6.3 15.7
Foreign currency translation
adjustments (23.3 ) 2.5 (11.9 ) (14.3 )
Change in derivatives (2.5 ) (0.6 ) (1.1 ) (2.2 )
---------- ---------- ----------- ---------
Other comprehensive income (loss ) (25.2 ) 17.0 (6.7 ) (0.8 )
---------- ---------- ----------- ---------
Comprehensive income $ 23.4 $ 48.6 $ 127.7 $ 63.9
---------- ---------- ----------- ---------
_______________________________________
(a) Amounts are net of tax of $(0.2) million and $(3.1) million for the three
and nine months ended September 30, 2014, respectively, and $(7.9) million and
$(8.0) million for the three and nine months ended September 30, 2013,
respectively.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September December
30, 31,
2014 2013
------------- ------------
(in millions)
ASSETS
Assets
Cash and cash equivalents $ 219.0 $ 154.0
Accounts receivable, net 600.2 458.5
Inventories, net 249.2 261.8
Prepaid expenses and other current assets 108.5 123.5
------------- ------------
Total current assets 1,176.9 997.8
Property, plant and equipment, net 1,066.7 1,058.5
Deferred income taxes 327.7 341.8
Goodwill 155.6 156.4
GM postretirement cost sharing asset 233.9 242.0
Other assets and deferred charges 264.8 232.5
------------- ------------
Total assets $ 3,225.6 $ 3,029.0
------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities and Stockholders' Equity
Current portion of long-term debt $ 17.1 $ -
Accounts payable 496.3 445.8
Accrued compensation and benefits 102.7 110.1
Deferred revenue 22.2 17.0
Accrued expenses and other current liabilities 100.2 94.2
------------- ------------
Total current liabilities 738.5 667.1
Long-term debt 1,525.5 1,559.1
Deferred revenue 101.4 76.4
Postretirement benefits and other long-term
liabilities 690.9 692.8
------------- ------------
Total liabilities 3,056.3 2,995.4
Total stockholders' equity 169.3 33.6
------------- ------------
Total liabilities and stockholders' equity $ 3,225.6 $ 3,029.0
------------- ------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
----------------------- ----------------------
2014 2013 2014 2013
----------- ----------- ----------- ----------
(in millions) (in millions)
Operating Activities
Net income $ 48.6 $ 31.6 $ 134.4 $ 64.7
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and
amortization 51.1 45.7 146.1 129.4
Other 49.5 (8.2 ) (48.9 ) (91.8 )
----------- ----------- ----------- ----------
Net cash provided by operating
activities 149.2 69.1 231.6 102.3
----------- ----------- ----------- ----------
Investing Activities
Purchases of property, plant &
equipment (52.5 ) (56.7 ) (156.2 ) (178.2 )
Proceeds from sale of
property, plant & equipment 0.2 0.9 8.5 5.8
Proceeds from sale-leaseback
of equipment - 7.5 - 23.5
----------- ----------- ----------- ----------
Net cash used in investing
activities (52.3 ) (48.3 ) (147.7 ) (148.9 )
----------- ----------- ----------- ----------
Financing Activities
Net increase (decrease) in
long-term debt (3.3 ) 25.1 (16.7 ) 115.8
Debt issuance costs - (6.3 ) (0.3 ) (12.9 )
Employee stock option
exercises - - 1.2 0.8
Purchase of treasury stock - (0.3 ) (0.3 ) (0.4 )
----------- ----------- ----------- ----------
Net cash provided by (used in)
financing activities (3.3 ) 18.5 (16.1 ) 103.3
----------- ----------- ----------- ----------
Effect of exchange rate
changes on cash (3.5 ) 0.4 (2.8 ) (0.5 )
----------- ----------- ----------- ----------
Net increase in cash and cash
equivalents 90.1 39.7 65.0 56.2
Cash and cash equivalents at
beginning of period 128.9 78.9 154.0 62.4
----------- ----------- ----------- ----------
Cash and cash equivalents at
end of period $ 219.0 $ 118.6 $ 219.0 $ 118.6
----------- ----------- ----------- ----------
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,
----------------------- ----------------------
2014 2013 2014 2013
----------- ----------- ----------- ----------
(in millions) (in millions)
Net income $ 48.6 $ 31.6 $ 134.4 $ 64.7
Interest expense 25.1 30.0 75.2 87.9
Income tax expense 11.3 6.1 29.6 9.1
Depreciation and amortization 51.1 45.7 146.1 129.4
----------- ----------- ----------- ----------
EBITDA 136.1 113.4 385.3 291.1
Debt refinancing and redemption
costs - - - 11.2
Other special charges((b)) - 5.8 - 5.8
----------- ----------- ----------- ----------
ADJUSTED EBITDA $ 136.1 $ 119.2 $ 385.3 $ 308.1
----------- ----------- ----------- ----------
Net debt((c) )to capital
September December
30, 2014 31, 2013
---------------- --------------
(in millions, except
percentages)
Total debt $ 1,542.6 $ 1,559.1
Less: cash and cash equivalents 219.0 154.0
---------------- --------------
Net debt at end of period 1,323.6 1,405.1
Stockholders' equity 169.3 33.6
---------------- --------------
Total invested capital at end of period $ 1,492.9 $ 1,438.7
---------------- --------------
Net debt to capital((d)) 88.7 % 97.7 %
---------------- --------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
SUPPLEMENTAL DATA
(Unaudited)
The supplemental data presented below is a reconciliation of certain financial
measures which is intended
to facilitate analysis of American Axle & Manufacturing Holdings, Inc. business
and operating performance.
Free Cash Flow((e))
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2014 2013 2014 2013
----------- ---------- ----------- ----------
(in millions) (in millions)
Net cash provided by operating
activities $ 149.2 $ 69.1 $ 231.6 $ 102.3
Less: Purchases of property,
plant & equipment, net
of proceeds from sale of
property, plant &
equipment and sale-leaseback of
equipment (52.3 ) (48.3 ) (147.7 ) (148.9 )
----------- ---------- ----------- ----------
Free cash flow $ 96.9 $ 20.8 $ 83.9 $ (46.6 )
----------- ---------- ----------- ----------
________________________________________
(a) We define EBITDA to be earnings before interest, income taxes, depreciation
and amortization. We believe that EBITDA is a meaningful measure of performance
as it is 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 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 differently.
(b) Special charges of $5.8 million for the three and nine months ended
September 30, 2013 primarily relate to a net charge of $5.3 million related to
the acceleration of expense for stock-based compensation and other benefits
earned and vested due to the passing of our Co-Founder and Executive Chairman of
the Board of Directors and $0.5 million for the settlement of a National Labor
Relations Board proceeding related to the closure of our Detroit Manufacturing
Complex and Cheektowaga Manufacturing Facility.
(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'
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 as net cash provided by (used in) 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.
AAM Announces Third Quarter 2014 Results:
http://hugin.info/143751/R/1867463/656249.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1867463]
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2014 - 13:01 Uhr
Sprache: Deutsch
News-ID 348721
Anzahl Zeichen: 35036
contact information:
Town:
Detroit, MI
Kategorie:
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