AAM Delivers Another Solid
Quarter
DETROIT, Aug. 9, 2024
/PRNewswire/ -- American Axle & Manufacturing Holdings, Inc.
(AAM), (NYSE: AXL) today reported its financial results for the
second quarter 2024.
Second Quarter 2024 Results
- Sales of $1.63 billion
- Net income of $18.2 million, or
1.1% of sales
- Adjusted EBITDA of $208.4
million, or 12.8% of sales
- Diluted earnings per share of $0.15; Adjusted earnings per share of
$0.19
- Net cash provided by operating activities of $142.8 million; Adjusted free cash flow of
$97.9 million
"AAM's solid second quarter results reflect positive
contributions from volume and mix and continued operational
performance," said AAM's Chairman and Chief Executive Officer,
David C. Dauch. "Looking ahead, AAM
will maintain and develop a comprehensive product portfolio to
support current and future powertrain solutions while focusing on
quality, technology leadership, and operational excellence."
AAM's sales in the second quarter of 2024 were $1.63 billion as compared to $1.57 billion in the second quarter of 2023.
Sales for the second quarter of 2024 were favorably impacted by
volume and mix.
AAM's net income in the second quarter of 2024 was $18.2 million, or $0.15 per share and 1.1% of sales, as compared to
net income of $8.0 million, or
$0.07 per share and 0.5% of sales in
the second quarter of 2023.
Adjusted earnings per share in the second quarter of 2024 was
$0.19 compared to Adjusted earnings
per share of $0.12 in the second
quarter of 2023.
In the second quarter of 2024, Adjusted EBITDA was $208.4 million, or 12.8% of sales, as compared to
$191.6 million, or 12.2% of sales, in
the second quarter of 2023.
AAM's net cash provided by operating activities for the second
quarter of 2024 was $142.8 million as compared to $132.8 million for the second quarter of
2023.
AAM's Adjusted free cash flow for the second quarter of 2024 was
$97.9 million as compared to
$95.8 million for the second quarter
of 2023.
AAM's 2024 Updated Financial Outlook
AAM's full year
2024 financial targets are as follows:
- AAM is targeting sales in the range of $6.1 - $6.3 billion
vs. $6.05 - $6.35 billion prior.
- AAM is targeting Adjusted EBITDA in the range of $705 - $755 million
vs. $685 - $750 million prior.
- AAM is targeting Adjusted free cash flow in the range of
$200 - $240
million; this target assumes capital spending of
approximately 4.0% of sales.
These targets are based on the following assumptions for
2024:
- North American light vehicle production of approximately 15.8
million units.
- AAM's production estimates of key programs that we
support.
- Current customer launch schedules and operating
environment.
Second Quarter 2024 Conference Call
Information
A conference call to review AAM's second
quarter 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 (877) 883-0383 from the United States or (412) 902-6506 from
outside the United States with
access code 5418526. A replay will be available one hour after the
call is complete until August 16, 2024 by dialing (877)
344-7529 from the United States or
(412) 317-0088 from outside the United
States. When prompted, callers should enter replay access
code 2733759.
Non-GAAP Financial Information
In addition to
the results reported in accordance with accounting principles
generally accepted in the United States
of America (GAAP) included within this press release, AAM
has provided certain information, which includes non-GAAP financial
measures such as Adjusted EBITDA, Adjusted earnings per share and
Adjusted free cash flow. Such information is reconciled to
its most directly comparable GAAP measure in accordance with
Securities and Exchange Commission rules and is included in the
attached supplemental data.
Certain of the forward-looking financial measures included in
this earnings release are provided on a non-GAAP basis. A
reconciliation of non-GAAP forward-looking financial measures to
the most directly comparable forward-looking financial measures
calculated and presented in accordance with GAAP has been
provided. The amounts in these reconciliations are based on
our current estimates and actual results may differ materially from
these forward-looking estimates for many reasons, including
potential event driven transactional and other non-core operating
items and their related effects in any future period, the magnitude
of which may be significant.
Management believes that these non-GAAP financial measures are
useful to management, investors, and banking institutions in their
analysis of AAM'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.
Definition of Non-GAAP Financial Measures
AAM
defines Adjusted earnings per share to be diluted earnings per
share excluding the impact of impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
gains or losses on equity securities, pension curtailment and
settlement charges and non-recurring items, including the tax
effect thereon.
AAM defines EBITDA to be earnings before interest expense,
income taxes, depreciation and amortization. Adjusted EBITDA is
defined as EBITDA excluding the impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
gains or losses on equity securities, pension curtailment and
settlement charges and non-recurring items.
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 government grants. Adjusted
free cash flow is defined as free cash flow excluding the impact of
cash payments for restructuring and acquisition-related costs, and
cash payments related to the Malvern fire, including payments for
capital expenditures, net of recoveries.
Company Description
As a leading global Tier 1
Automotive and Mobility Supplier, AAM (NYSE: AXL) designs,
engineers and manufactures Driveline and Metal Forming technologies
to support electric, hybrid and internal combustion vehicles.
Headquartered in Detroit, with
over 80 facilities in 18 countries, AAM is bringing the future
faster for a safer and more sustainable tomorrow. To learn
more, visit aam.com.
Forward-Looking Statements
In this earnings
release, we make statements concerning our expectations, beliefs,
plans, objectives, goals, strategies, and future events or
performance. Such statements are "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 and relate to trends and events that may affect our future
financial position and operating results. The terms such as "will,"
"may," "could," "would," "plan," "believe," "expect," "anticipate,"
"intend," "project," "target," and similar words or expressions, as
well as statements in future tense, are intended to identify
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved. Forward-looking
statements are based on information available at the time those
statements are made and/or management's good faith belief as of
that time with respect to future events and are subject to risks
and may differ materially from those expressed in or suggested by
the forward-looking statements. Important factors that could cause
such differences include, but are not limited to: global economic
conditions, including the impact of inflation, recession or
recessionary concerns, or slower growth in the markets in which we
operate; reduced purchases of our products by General Motors
Company (GM), Stellantis N.V. (Stellantis), Ford Motor Company
(Ford) or other customers; our ability to respond to changes in
technology, increased competition or pricing pressures; 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; reduced demand for our customers' products (particularly
light trucks and sport utility vehicles (SUVs) produced by GM,
Stellantis and Ford); risks inherent in our global operations
(including tariffs and the potential consequences thereof to us,
our suppliers, and our customers and their suppliers, adverse
changes in trade agreements, such as the
United States-Mexico-Canada Agreement (USMCA), compliance
with customs and trade regulations, immigration policies, political
stability or geopolitical conflicts, taxes and other law changes,
potential disruptions of production and supply, and currency rate
fluctuations); supply shortages and the availability of natural gas
or other fuel and utility sources in certain regions, labor
shortages, including increased labor costs, or price increases in
raw material and/or freight, utilities or other operating supplies
for us or our customers as a result of pandemic or epidemic illness
such as COVID-19, geopolitical conflicts, natural disasters or
otherwise; a significant disruption in operations at one or more of
our key manufacturing facilities; risks inherent in transitioning
our business from internal combustion engine vehicle products to
hybrid and electric vehicle products; our ability to realize the
expected revenues from our new and incremental business backlog;
negative or unexpected tax consequences, including those resulting
from tax litigation; risks related to a failure of our information
technology systems and networks, including cloud-based
applications, and risks associated with current and emerging
technology threats and damage from computer viruses, unauthorized
access, cyber attacks and other similar disruptions; our
suppliers', our customers' and their suppliers' ability to maintain
satisfactory labor relations and avoid or minimize work stoppages;
cost or 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; an
impairment of our goodwill, other intangible assets, or long-lived
assets if our business or market conditions indicate that the
carrying values of those assets exceed their fair values;
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 or our customers' and
suppliers' ability to successfully launch new product programs on a
timely basis; risks of environmental issues, including impacts of
climate-related events, that could result in unforeseen issues or
costs at our facilities, or risks of noncompliance with
environmental laws and regulations, including reputational damage;
our ability to maintain satisfactory labor relations and avoid work
stoppages; our ability to consummate and successfully integrate
acquisitions and joint ventures; our ability to achieve the level
of cost reductions required to sustain global cost competitiveness
or our ability to recover certain cost increases from our
customers; price volatility in, or reduced availability of, fuel;
our ability to protect our intellectual property and successfully
defend against assertions made against us; adverse changes in laws,
government regulations or market conditions affecting our products
or our customers' products; our ability or our customers' and
suppliers' ability to comply with regulatory requirements and the
potential costs of such compliance; changes in liabilities arising
from pension and other postretirement benefit obligations; our
ability to attract and retain qualified personnel in key positions
and functions; and other unanticipated events and conditions that
may hinder our ability to compete. It is not possible to foresee or
identify all such factors and we make no commitment to update any
forward-looking statement or to disclose any facts, events or
circumstances after the date hereof that may affect the accuracy of
any forward-looking statement.
For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@aam.com
Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
1,632.3
|
|
$
1,570.7
|
|
$
3,239.2
|
|
$
3,064.6
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,415.0
|
|
1,392.5
|
|
2,823.4
|
|
2,725.8
|
|
|
|
|
|
|
|
|
|
Gross profit
|
217.3
|
|
178.2
|
|
415.8
|
|
338.8
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
105.2
|
|
91.1
|
|
203.5
|
|
189.4
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
20.6
|
|
21.4
|
|
41.3
|
|
42.8
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
5.0
|
|
7.9
|
|
7.5
|
|
12.7
|
|
|
|
|
|
|
|
|
|
Operating
income
|
86.5
|
|
57.8
|
|
163.5
|
|
93.9
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(47.9)
|
|
(50.2)
|
|
(96.9)
|
|
(100.7)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
6.1
|
|
5.9
|
|
14.4
|
|
11.8
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(0.3)
|
|
—
|
|
(0.3)
|
|
—
|
|
Gain (loss) on equity
securities
|
(0.2)
|
|
0.3
|
|
(0.1)
|
|
—
|
|
Other income
(expense), net
|
(8.8)
|
|
(0.5)
|
|
(8.8)
|
|
3.2
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
35.4
|
|
13.3
|
|
71.8
|
|
8.2
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
17.2
|
|
5.3
|
|
33.1
|
|
5.3
|
|
|
|
|
|
|
|
|
|
Net income
|
$
18.2
|
|
$
8.0
|
|
$
38.7
|
|
$
2.9
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.15
|
|
$
0.07
|
|
$
0.32
|
|
$
0.02
|
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
|
June 30,
2024
|
|
December 31,
2023
|
|
(Unaudited)
|
|
|
|
ASSETS
|
(in
millions)
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
519.9
|
|
$
519.9
|
|
Accounts receivable,
net
|
935.4
|
|
818.5
|
|
Inventories,
net
|
469.2
|
|
482.9
|
|
Prepaid expenses and
other
|
180.9
|
|
185.3
|
|
Total current
assets
|
2,105.4
|
|
2,006.6
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,681.5
|
|
1,760.9
|
|
Deferred income
taxes
|
162.0
|
|
169.4
|
|
Goodwill
|
181.2
|
|
182.1
|
|
Other intangible
assets, net
|
491.8
|
|
532.8
|
|
GM postretirement cost
sharing asset
|
111.5
|
|
111.9
|
|
Operating lease
right-of-use assets
|
112.0
|
|
115.6
|
|
Other assets and
deferred charges
|
491.3
|
|
477.0
|
|
Total
assets
|
$
5,336.7
|
|
$
5,356.3
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
27.2
|
|
$
17.0
|
|
Accounts
payable
|
837.6
|
|
773.9
|
|
Accrued compensation
and benefits
|
189.9
|
|
200.1
|
|
Deferred
revenue
|
13.5
|
|
16.6
|
|
Current portion of
operating lease liabilities
|
23.2
|
|
21.9
|
|
Accrued expenses and
other
|
163.7
|
|
172.1
|
|
Total current
liabilities
|
1,255.1
|
|
1,201.6
|
|
|
|
|
|
Long-term debt,
net
|
2,694.8
|
|
2,751.9
|
|
Deferred
revenue
|
67.2
|
|
70.4
|
|
Deferred income
taxes
|
14.8
|
|
16.5
|
|
Long-term portion of
operating lease liabilities
|
91.0
|
|
95.5
|
|
Postretirement benefits
and other long-term liabilities
|
604.2
|
|
615.5
|
|
Total
liabilities
|
4,727.1
|
|
4,751.4
|
|
|
|
|
|
Total AAM stockholders'
equity
|
609.6
|
|
604.9
|
|
Total liabilities
and stockholders' equity
|
$
5,336.7
|
|
$
5,356.3
|
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(in
millions)
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
|
$
18.2
|
|
$
8.0
|
|
$
38.7
|
|
$
2.9
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
119.6
|
|
120.5
|
|
237.4
|
|
245.4
|
|
Other
|
5.0
|
|
4.3
|
|
(115.5)
|
|
(83.4)
|
|
Net cash provided by
operating activities
|
142.8
|
|
132.8
|
|
160.6
|
|
164.9
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
(48.8)
|
|
(44.1)
|
|
(96.8)
|
|
(90.7)
|
|
Proceeds from sale of
property, plant and equipment
|
0.2
|
|
—
|
|
3.3
|
|
0.4
|
|
Acquisition of
business, net of cash acquired
|
(0.7)
|
|
(0.7)
|
|
(1.3)
|
|
(1.3)
|
|
Proceeds from
government grants
|
2.0
|
|
—
|
|
2.0
|
|
—
|
|
Other
|
0.6
|
|
(2.6)
|
|
(2.1)
|
|
13.7
|
|
Net cash used in
investing activities
|
(46.7)
|
|
(47.4)
|
|
(94.9)
|
|
(77.9)
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Net debt
activity
|
(39.3)
|
|
(34.5)
|
|
(49.4)
|
|
(65.4)
|
|
Other
|
(3.2)
|
|
(3.8)
|
|
(9.1)
|
|
(22.0)
|
|
Net cash used in
financing activities
|
(42.5)
|
|
(38.3)
|
|
(58.5)
|
|
(87.4)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(3.5)
|
|
(1.7)
|
|
(7.2)
|
|
—
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
50.1
|
|
45.4
|
|
—
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
469.8
|
|
465.7
|
|
519.9
|
|
511.5
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
519.9
|
|
$
511.1
|
|
$
519.9
|
|
$
511.1
|
|
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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net income
|
$
18.2
|
|
$
8.0
|
|
$
38.7
|
|
$
2.9
|
|
Interest
expense
|
47.9
|
|
50.2
|
|
96.9
|
|
100.7
|
|
Income tax
expense
|
17.2
|
|
5.3
|
|
33.1
|
|
5.3
|
|
Depreciation and
amortization
|
119.6
|
|
120.5
|
|
237.4
|
|
245.4
|
|
EBITDA
|
202.9
|
|
184.0
|
|
406.1
|
|
354.3
|
|
Restructuring and
acquisition-related costs
|
5.0
|
|
7.9
|
|
7.5
|
|
12.7
|
|
Debt refinancing and
redemption costs
|
0.3
|
|
—
|
|
0.3
|
|
—
|
|
Loss (gain) on equity
securities
|
0.2
|
|
(0.3)
|
|
0.1
|
|
—
|
|
Adjusted
EBITDA
|
$
208.4
|
|
$
191.6
|
|
$
414.0
|
|
$
367.0
|
|
Adjusted earnings
per share(b)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Diluted earnings per
share
|
$
0.15
|
|
$
0.07
|
|
$
0.32
|
|
$
0.02
|
|
Restructuring and
acquisition-related costs
|
0.04
|
|
0.07
|
|
0.06
|
|
0.11
|
|
Debt refinancing and
redemption costs
|
—
|
|
—
|
|
—
|
|
—
|
|
Loss (gain) on equity
securities
|
—
|
|
—
|
|
—
|
|
—
|
|
Tax effect of
adjustments
|
—
|
|
(0.02)
|
|
—
|
|
(0.02)
|
|
Adjusted earnings
per share
|
$
0.19
|
|
$
0.12
|
|
$
0.38
|
|
$
0.11
|
|
Adjusted earnings per
share are based on weighted average diluted shares outstanding of
122.0 million and 120.6 million for the three months ended June 30,
2024 and 2023 respectively, and 121.5 million and 120.3 million for
the six months ended June 30, 2024 and 2023
respectively.
|
|
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 and
Adjusted free cash flow(c)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
142.8
|
|
$
132.8
|
|
$
160.6
|
|
$
164.9
|
|
Less: Capital
expenditures net of proceeds from the sale of
property, plant and equipment and from government grants
|
(46.6)
|
|
(44.1)
|
|
(91.5)
|
|
(90.3)
|
|
Free cash
flow
|
$
96.2
|
|
$
88.7
|
|
$
69.1
|
|
$
74.6
|
|
Cash payments for
restructuring and acquisition-related costs
|
1.7
|
|
7.1
|
|
7.4
|
|
11.1
|
|
(Insurance proceeds)
related to Malvern fire, net
|
—
|
|
—
|
|
—
|
|
(7.0)
|
|
Adjusted free cash
flow
|
$
97.9
|
|
$
95.8
|
|
$
76.5
|
|
$
78.7
|
|
|
Segment Financial
Information
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(in
millions)
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
Driveline
|
$
1,124.5
|
|
$
1,086.5
|
|
$
2,230.9
|
|
$
2,100.3
|
|
Metal
Forming
|
653.1
|
|
634.2
|
|
1,297.2
|
|
1,253.3
|
|
Total
Sales
|
1,777.6
|
|
1,720.7
|
|
3,528.1
|
|
3,353.6
|
|
Intersegment
Sales
|
(145.3)
|
|
(150.0)
|
|
(288.9)
|
|
(289.0)
|
|
Net External
Sales
|
$
1,632.3
|
|
$
1,570.7
|
|
$
3,239.2
|
|
$
3,064.6
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
|
Driveline
|
$
151.8
|
|
$
152.1
|
|
$
309.2
|
|
$
266.2
|
|
Metal
Forming
|
56.6
|
|
39.5
|
|
104.8
|
|
100.8
|
|
Total Segment
Adjusted EBITDA
|
$
208.4
|
|
$
191.6
|
|
$
414.0
|
|
$
367.0
|
|
Full Year 2024
Financial Outlook
|
|
|
Adjusted EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net income
|
$
5
|
|
$
30
|
|
Interest
expense
|
190
|
|
190
|
|
Income tax
expense
|
10
|
|
35
|
|
Depreciation and
amortization
|
480
|
|
480
|
|
Full year 2024 targeted
EBITDA
|
685
|
|
735
|
|
Restructuring and
acquisition-related costs
|
20
|
|
20
|
|
Full year 2024
targeted Adjusted EBITDA
|
$
705
|
|
$
755
|
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
430
|
|
$
470
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment and from government grants
|
(250)
|
|
(250)
|
|
Full year 2024 targeted
Free Cash Flow
|
180
|
|
220
|
|
Cash payments for
restructuring and acquisition-related costs
|
20
|
|
20
|
|
Full year 2024
targeted Adjusted Free Cash Flow
|
$
200
|
|
$
240
|
|
(a)
|
We define EBITDA to be
earnings before interest expense, income taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding
the impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, gains or losses on equity
securities, pension curtailment and settlement charges and
non-recurring items. We believe that EBITDA and Adjusted
EBITDA are meaningful measures of performance as they are commonly
utilized by management and investors to analyze operating
performance and entity valuation. Our management, the
investment community and the banking institutions routinely use
EBITDA and Adjusted EBITDA, together with other measures, to
measure our operating performance relative to other Tier 1
automotive suppliers. We also use Segment Adjusted EBITDA as
the measure of earnings to assess the performance of each segment
and determine the resources to be allocated to the segments. EBITDA
and Adjusted EBITDA are also key metrics used in our calculation of
incentive compensation. 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)
|
We define Adjusted
earnings per share to be diluted earnings per share excluding the
impact of restructuring and acquisition-related costs, debt
refinancing and redemption costs, gains or losses on equity
securities, pension curtailment and settlement charges and
non-recurring items, including the tax effect thereon. We
believe Adjusted earnings per share is a meaningful measure as it
is commonly utilized by management and investors in assessing
ongoing financial performance that provides improved comparability
between periods through the exclusion of certain items that
management believes are not indicative of core operating
performance and which may obscure underlying business results and
trends. Other companies may calculate Adjusted earnings per
share differently.
|
|
|
|
(c)
|
We define free cash
flow to be net cash provided by operating activities less capital
expenditures net of proceeds from the sale of property, plant and
equipment and government grants. Adjusted free cash flow is
defined as free cash flow excluding the impact of cash payments for
restructuring and acquisition-related costs and cash payments
related to the Malvern fire, including payments for capital
expenditures, net of recoveries. We believe free cash flow and
Adjusted free cash flow are meaningful measures as they are
commonly utilized by management and investors to assess our ability
to generate cash flow from business operations to repay debt and
return capital to our stockholders. Free cash flow and
Adjusted free cash flow are also key metrics used in our
calculation of incentive compensation. Other companies may
calculate free cash flow and Adjusted free cash flow
differently.
|
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SOURCE American Axle & Manufacturing Holdings, Inc.