AAM Reports Third Quarter 2015 Financial Results
(Thomson Reuters ONE) -
Quarterly net income increases by more than 38% on a year-over-year basis to
$60.9 million, or $0.78 per share
DETROIT, October 30, 2015 -- American Axle & Manufacturing Holdings, Inc. (AAM),
which is traded as AXL on the NYSE, today reported its financial results for the
third quarter 2015.
Third Quarter 2015 Results
· Third quarter 2015 sales of $971.6 million, up 2.2% on a year-over-
year basis
· Non-GM sales grew 8.4% on a year-over-year basis to $321.6 million
· Gross profit of $158.3 million, or 16.3% of sales
· Operating income of $92.8 million, or 9.5% of sales
· Net income of $60.9 million, or $0.78 per share
· EBITDA (earnings before interest, taxes, depreciation and
amortization) of $149.2 million, or 15.4% of sales
AAM's net income in the third quarter of 2015 was $60.9 million, or $0.78 per
share. This compares to a net income of $44.0 million, or $0.57 per share in the
third quarter of 2014.
"AAM's financial results in the third quarter of 2015 reflect strong operating
cash flow generation and profitability driven by solid production volumes across
many of our major product programs supporting the North American light vehicle
segment and continued operational execution," said AAM's Chairman & Chief
Executive Officer, David C. Dauch. "As we progress towards our 2015 financial
targets, our team remains committed to improving our capital structure while
leveraging AAM's technology leadership to develop innovative solutions that will
allow us to profitably grow while exploring strategic growth opportunities."
Net sales in the third quarter of 2015 increased 2.2% on a year-over-year basis
to $971.6 million as compared to $950.8 million in the third quarter of 2014.
Non-GM sales were up 8.4% in the quarter to $321.6 million as compared to $296.8
million in the third quarter of 2014.
AAM's net sales in the first nine months of 2015 increased by 6.8% to $2.94
billion as compared to $2.76 billion in the first nine months of 2014. Non-GM
sales in the first nine months of 2015 increased 12.6% on a year-over-year basis
to $993.6 million as compared to $882.7 million in the first nine months of
2014.
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 2015, AAM's content-per-vehicle was $1,622 as compared to
$1,676 in the third quarter of 2014 and $1,637 in the second quarter of 2015.
AAM's gross profit in the third quarter of 2015 increased 12.5% on a year-over-
year basis to $158.3 million as compared to $140.7 million in the third quarter
of 2014. Gross margin was 16.3% in the third quarter of 2015 as compared to
14.8% in the third quarter of 2014.
AAM's gross profit for the first nine months of 2015 increased 15.5% on a year-
over-year basis to $475.6 million as compared to $411.6 million in the first
nine months of 2014. Gross margin was 16.1% in the first nine months of 2015 as
compared to 14.9% in the first nine months of 2014.
AAM's SG&A expense in the third quarter of 2015 was $65.5 million, or 6.7% of
sales, as compared to $64.0 million, or 6.7% of sales, in the third quarter of
2014. AAM's R&D expense in the third quarter of 2015 was $25.8 million as
compared to $26.4 million in the third quarter of 2014.
In the first nine months of 2015, AAM's SG&A expense was $204.6 million, or
6.9% of sales, as compared to $182.6 million, or 6.6% of sales, for the first
nine months of 2014. AAM's R&D expense increased $6.0 million in the first nine
months of 2015 on a year-over-year basis to $82.6 million compared to $76.6
million in the first nine months of 2014.
In the third quarter of 2015, AAM's operating income increased 21.0% to $92.8
million as compared to $76.7 million in the third quarter of 2014. Operating
margin was 9.5% in the third quarter of 2015 as compared to 8.1% in the third
quarter of 2014.
AAM's operating income in the first nine months of 2015 increased by $42.0
million to $271.0 million as compared to $229.0 million in the first nine months
of 2014. Operating margin was 9.2% in the first nine months of 2015 as compared
to 8.3% in the first nine months of 2014.
In the third quarter of 2015, AAM's net income was $60.9 million or $0.78 per
share. This compares to net income of $44.0 million or $0.57 per share in the
third quarter of 2014. AAM's net income in the first nine months of 2015 was
$172.7 million, or $2.21 per share as compared to $129.8 million, or $1.68 per
share in the first nine months of 2014.
AAM defines EBITDA to be earnings before interest, income taxes, depreciation
and amortization. In the third quarter of 2015, AAM's EBITDA was $149.2 million,
or 15.4% of sales, as compared to $127.7 million, or 13.4% of sales, in the
third quarter of 2014. In the first nine months of 2015, AAM's EBITDA was $433.6
million, or 14.7% of sales, as compared to $376.9 million, or 13.7% of sales, in
the first nine months of 2014.
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.
Net cash provided by operating activities for the third quarter of 2015 was
$113.8 million. Capital spending, net of proceeds from the sale of property,
plant and equipment for the third quarter of 2015 was $40.6 million. Reflecting
the impact of this activity, AAM generated free cash flow of $73.2 million for
the third quarter of 2015.
Net cash provided by operating activities for the first nine months of 2015 was
$268.1 million. Capital spending, net of proceeds from the sale of property,
plant and equipment for the first nine months of 2015 was $131.9 million.
Reflecting the impact of this activity, AAM generated free cash flow of $136.2
million in the first nine months of 2015.
A conference call to review AAM's third quarter 2015 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 30, 2015 until
5:00 p.m. ET November 6, 2015 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 34605624.
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, 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,
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), FCA US LLC
(FCA), formerly known as Chrysler Group LLC, 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 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; our ability to
successfully implement upgrades to our enterprise resource planning systems;
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 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; global economic conditions; 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 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; negative or unexpected tax consequences; price volatility in,
or reduced availability of, fuel; our ability to consummate and integrate
acquisitions and joint ventures; our ability to attract and retain key
associates; our ability to protect our intellectual property and successfully
defend against assertions made against us; 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, contact:
Christopher M. Son
Director, Marketing & Communications
(313) 758-4814
chris.son(at)aam.com
Jason P. Parsons
Director, Investor Relations
(313) 758-2404
jason.parsons(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 Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2015 2014 2015 2014
----------- -------------- ------------- ------------
(in millions, except per (in millions, except per
share data) share data)
Net sales $ 971.6 $ 950.8 $ 2,944.7 $ 2,756.5
Cost of goods sold 813.3 810.1 2,469.1 2,344.9
----------- -------------- ------------- ------------
Gross profit 158.3 140.7 475.6 411.6
Selling, general and
administrative expenses 65.5 64.0 204.6 182.6
----------- -------------- ------------- ------------
Operating income 92.8 76.7 271.0 229.0
Interest expense (24.8 ) (25.1 ) (74.7 ) (75.2 )
Investment income 0.6 0.7 2.0 1.3
Other income (expense),
net 6.7 (0.8 ) 10.9 0.5
----------- -------------- ------------- ------------
Income before income
taxes 75.3 51.5 209.2 155.6
Income tax expense 14.4 7.5 36.5 25.8
----------- -------------- ------------- ------------
Net income $ 60.9 $ 44.0 $ 172.7 $ 129.8
----------- -------------- ------------- ------------
Diluted earnings per
share $ 0.78 $ 0.57 $ 2.21 $ 1.68
----------- -------------- ------------- ------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ----------------------
2015 2014 2015 2014
---------- ---------- ----------- ----------
(in millions)
Net income $ 60.9 $ 44.0 $ 172.7 $ 129.8
Other comprehensive income (loss)
Defined benefit plans, net of tax
((a)) 0.3 0.6 5.1 6.3
Foreign currency translation
adjustments (35.9 ) (23.3 ) (64.4 ) (11.9 )
Change in derivatives (7.7 ) (2.5 ) (9.4 ) (1.1 )
---------- ---------- ----------- ----------
Other comprehensive loss (43.3 ) (25.2 ) (68.7 ) (6.7 )
---------- ---------- ----------- ----------
Comprehensive income $ 17.6 $ 18.8 $ 104.0 $ 123.1
---------- ---------- ----------- ----------
_______________________________________
(a) Amounts are net of tax of $(0.2) million and $(2.6) million
for the three and nine months ended September 30, 2015, respectively, and $(0.3)
million and $(3.2) million for the three and nine months ended September
30, 2014, respectively.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September
30, December
2015 31, 2014
------------- --------------
(in millions)
ASSETS
Assets
Cash and cash equivalents $ 365.6 $ 249.2
Accounts receivable, net 641.3 532.7
Inventories, net 233.0 248.8
Prepaid expenses and other current assets 114.7 108.8
------------- --------------
Total current assets 1,354.6 1,139.5
Property, plant and equipment, net 1,024.4 1,061.1
Deferred income taxes 348.3 368.8
Goodwill 154.5 155.0
GM postretirement cost sharing asset 261.9 274.5
Other assets and deferred charges 254.8 260.3
------------- --------------
Total assets $ 3,398.5 $ 3,259.2
------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities and Stockholders' Equity
Current portion of long-term debt $ 19.2 $ 13.0
Accounts payable 479.8 444.3
Accrued compensation and benefits 125.8 109.1
Deferred revenue 27.2 22.1
Accrued expenses and other current liabilities 109.6 98.7
------------- --------------
Total current liabilities 761.6 687.2
Long-term debt 1,508.1 1,523.4
Deferred revenue 68.8 94.2
Postretirement benefits and other long-term
liabilities 833.2 841.0
------------- --------------
Total liabilities 3,171.7 3,145.8
Total stockholders' equity 226.8 113.4
------------- --------------
Total liabilities and stockholders' equity $ 3,398.5 $ 3,259.2
------------- --------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ----------------------
2015 2014 2015 2014
----------- ----------- ----------- ----------
(in millions) (in millions)
Operating Activities
Net income $ 60.9 $ 44.0 $ 172.7 $ 129.8
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and
amortization 49.1 51.1 149.7 146.1
Other 3.8 54.1 (54.3 ) (44.3 )
----------- ----------- ----------- ----------
Net cash provided by operating
activities 113.8 149.2 268.1 231.6
----------- ----------- ----------- ----------
Investing Activities
Purchases of property, plant &
equipment (40.7 ) (52.5 ) (132.1 ) (156.2 )
Proceeds from sale of
property, plant & equipment 0.1 0.2 0.2 8.5
----------- ----------- ----------- ----------
Net cash used in investing
activities (40.6 ) (52.3 ) (131.9 ) (147.7 )
----------- ----------- ----------- ----------
Financing Activities
Net debt activity (1.3 ) (3.3 ) (5.7 ) (16.7 )
Debt issuance costs - - - (0.3 )
Employee stock option
exercises 0.1 - 0.5 1.2
Purchase of treasury stock (0.2 ) - (2.9 ) (0.3 )
----------- ----------- ----------- ----------
Net cash used in financing
activities (1.4 ) (3.3 ) (8.1 ) (16.1 )
----------- ----------- ----------- ----------
Effect of exchange rate
changes on cash (7.5 ) (3.5 ) (11.7 ) (2.8 )
----------- ----------- ----------- ----------
Net increase in cash and cash
equivalents 64.3 90.1 116.4 65.0
Cash and cash equivalents at
beginning of period 301.3 128.9 249.2 154.0
----------- ----------- ----------- ----------
Cash and cash equivalents at
end of period $ 365.6 $ 219.0 $ 365.6 $ 219.0
----------- ----------- ----------- ----------
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)((a))
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ----------------------
2015 2014 2015 2014
----------- ----------- ----------- ----------
(in millions) (in millions)
Net income $ 60.9 $ 44.0 $ 172.7 $ 129.8
Interest expense 24.8 25.1 74.7 75.2
Income tax expense 14.4 7.5 36.5 25.8
Depreciation and amortization 49.1 51.1 149.7 146.1
----------- ----------- ----------- ----------
EBITDA $ 149.2 $ 127.7 $ 433.6 $ 376.9
----------- ----------- ----------- ----------
Net debt((b) )to capital
September December
30, 2015 31, 2014
---------------- --------------
(in millions, except
percentages)
Total debt $ 1,527.3 $ 1,536.4
Less: cash and cash equivalents 365.6 249.2
---------------- --------------
Net debt at end of period 1,161.7 1,287.2
Stockholders' equity 226.8 113.4
---------------- --------------
Total invested capital at end of period $ 1,388.5 $ 1,400.6
---------------- --------------
Net debt to capital((c)) 83.7 % 91.9 %
---------------- --------------
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((d))
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ----------------------
2015 2014 2015 2014
----------- ----------- ----------- ----------
(in millions) (in millions)
Net cash provided by operating
activities $ 113.8 $ 149.2 $ 268.1 $ 231.6
Less: Purchases of property,
plant & equipment, net of
proceeds from sale of property,
plant & equipment (40.6 ) (52.3 ) (131.9 ) (147.7 )
----------- ----------- ----------- ----------
Free cash flow $ 73.2 $ 96.9 $ 136.2 $ 83.9
----------- ----------- ----------- ----------
________________________________________
(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) Net debt is equal to total debt less cash and cash
equivalents.
(c) 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.
(d) We define free cash flow to be net cash provided by
operating activities less capital expenditures net of proceeds from the sale of
property, plant and equipment. 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.
AXL-Q3_2015-Press Release:
http://hugin.info/143751/R/1962732/716044.pdf
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Source: American Axle & Manufacturing Holdings, Inc via GlobeNewswire
[HUG#1962732]
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Datum: 30.10.2015 - 13:00 Uhr
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contact information:
Town:
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