AAM Delivers Sequential Margin
Improvement
DETROIT, Feb. 16,
2024 /PRNewswire/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its
financial results for the fourth quarter and full year
2023.
Fourth Quarter 2023 Results
- Sales of $1.46 billion
- Net loss of $(19.1) million, or
(1.3)% of sales
- Adjusted EBITDA of $169.5
million, or 11.6% of sales
- Diluted loss per share of $(0.16); Adjusted loss per share of $(0.09)
- Net cash provided by operating activities of $52.9 million; Adjusted free cash flow of
$4.5 million
Full Year 2023 Results
- Sales of $6.08 billion
- Net loss of $(33.6) million, or
(0.6)% of sales
- Adjusted EBITDA of $693.3
million, or 11.4% of sales
- Diluted loss per share of $(0.29); Adjusted loss per share of $(0.09)
- Net cash provided by operating activities of $396.1 million; Adjusted free cash flow of
$219.0 million
"AAM's fourth quarter performance was on track with our
improvement objectives, ending a challenging 2023 on a better
trajectory," said AAM's Chairman and Chief Executive Officer,
David C. Dauch. "As we look ahead,
AAM will leverage its strong core business while selectively
building a product portfolio to drive the future pivot to
electrification."
AAM's sales in the fourth quarter of 2023 were $1.46 billion as compared to $1.39 billion in the fourth quarter of 2022.
Sales for the fourth quarter of 2023 were favorably impacted by
volume and mix partially offset by the UAW work stoppage. AAM's
sales for full year 2023 were $6.08
billion as compared to $5.80
billion for full year 2022. Sales for the full year were
favorably impacted by volume and mix and the Tekfor
acquisition.
AAM's net loss in the fourth quarter of 2023 was $(19.1) million, or $(0.16) per share, as compared to net income of
$13.9 million, or $0.11 per share in the fourth quarter of 2022.
AAM's net loss for full year 2023 was $(33.6) million, or $(0.29) per share, as compared to net income of
$64.3 million, or $0.53 per share, for full year 2022. AAM's
Adjusted loss per share in the fourth quarter of 2023 was
$(0.09) as compared to Adjusted loss
per share of $(0.07) in the fourth
quarter of 2022. AAM's Adjusted loss per share for full year 2023
was $(0.09) as compared to Adjusted
earnings per share of $0.60 for full
year 2022.
In the fourth quarter of 2023, AAM's Adjusted EBITDA was
$169.5 million, or 11.6% of sales, as
compared to $157.7 million, or 11.3%
of sales, in the fourth quarter of 2022. For full year 2023, AAM's
Adjusted EBITDA was $693.3 million,
or 11.4% of sales, as compared to $747.3
million, or 12.9% of sales, in 2022.
AAM's net cash provided by operating activities for the fourth
quarter of 2023 was $52.9 million as
compared to $148.5 million for the
fourth quarter of 2022. AAM's net cash provided by operating
activities for full year 2023 was $396.1
million as compared to $448.9
million for full year 2022.
AAM's Adjusted free cash flow for the fourth quarter of 2023 was
$4.5 million as compared to
$99.0 million for the fourth quarter
of 2022. AAM's Adjusted free cash flow for full year 2023 was
$219.0 million as compared to
$313.0 million for full year
2022.
AAM's 2024 Financial Outlook
AAM's full year 2024
financial targets are as follows:
- AAM is targeting sales in the range of $6.05 - $6.35
billion.
- AAM is targeting Adjusted EBITDA in the range of $685 - $750
million.
- AAM is targeting Adjusted free cash flow in the range of
$200 - $240
million; this target assumes capital spending of
approximately 4.0% - 4.5% 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.
AAM's 2024-2026 New Business Backlog
AAM's gross new
and incremental business backlog launching from 2024 - 2026 is
estimated at approximately $600
million in future annual sales. AAM expects the launch
cadence of the three-year backlog to be approximately $300 million in 2024, $175
million in 2025 and $125
million in 2026. Electrification mix approximates 50% of
AAM's new business backlog versus 40% in the prior backlog
(2023-2025). The backlog takes into account recent OEM powertrain
trends and timing estimates.
Fourth Quarter 2023 Conference Call
Information
A conference call to review AAM's fourth
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 133151. A replay will be available one hour after the
call is complete until February 23, 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 2703442.
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 (loss) 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 (loss) per share to be diluted earnings
(loss) per share excluding the impact of restructuring and
acquisition-related costs, debt refinancing and redemption costs,
loss on sale of business, pension curtailment and settlement
charges, unrealized gains or losses on equity securities 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,
loss on sale of business, pension curtailment and settlement
charges, unrealized gains or losses on equity securities 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. 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
electric vehicle products; 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; our ability to realize the expected revenues from our
new and incremental business backlog; 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 OPERATIONS
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
1,463.0
|
|
$
1,392.7
|
|
$
6,079.5
|
|
$
5,802.4
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,308.1
|
|
1,225.5
|
|
5,455.2
|
|
5,097.5
|
|
|
|
|
|
|
|
|
|
Gross profit
|
154.9
|
|
167.2
|
|
624.3
|
|
704.9
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
95.7
|
|
88.5
|
|
366.9
|
|
345.1
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.4
|
|
21.3
|
|
85.6
|
|
85.7
|
|
|
|
|
|
|
|
|
|
Restructuring and
acquisition-related costs
|
9.0
|
|
3.8
|
|
25.2
|
|
30.2
|
|
|
|
|
|
|
|
|
|
Operating
income
|
28.8
|
|
53.6
|
|
146.6
|
|
243.9
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(50.2)
|
|
(42.3)
|
|
(201.7)
|
|
(174.5)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
7.3
|
|
5.4
|
|
26.2
|
|
17.0
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Debt refinancing and
redemption costs
|
(1.0)
|
|
(0.4)
|
|
(1.3)
|
|
(6.4)
|
|
Gain on bargain
purchase of business
|
—
|
|
0.6
|
|
—
|
|
13.6
|
|
Pension curtailment
and settlement charges
|
(1.3)
|
|
—
|
|
(1.3)
|
|
—
|
|
Unrealized gain (loss)
on equity securities
|
0.1
|
|
(1.5)
|
|
(1.1)
|
|
(25.5)
|
|
Other income
(expense), net
|
3.0
|
|
2.6
|
|
8.1
|
|
(1.8)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(13.3)
|
|
18.0
|
|
(24.5)
|
|
66.3
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
5.8
|
|
4.1
|
|
9.1
|
|
2.0
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(19.1)
|
|
$
13.9
|
|
$
(33.6)
|
|
$
64.3
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
$
(0.16)
|
|
$
0.11
|
|
$
(0.29)
|
|
$
0.53
|
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
(in
millions)
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
519.9
|
|
$
511.5
|
|
Accounts receivable,
net
|
818.5
|
|
820.2
|
|
Inventories,
net
|
482.9
|
|
463.9
|
|
Prepaid expenses and
other
|
185.3
|
|
197.8
|
|
Total current
assets
|
2,006.6
|
|
1,993.4
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,760.9
|
|
1,903.0
|
|
Deferred income
taxes
|
169.4
|
|
119.0
|
|
Goodwill
|
182.1
|
|
181.6
|
|
Other intangible
assets, net
|
532.8
|
|
616.2
|
|
GM postretirement cost
sharing asset
|
111.9
|
|
127.6
|
|
Operating lease
right-of-use asset
|
115.6
|
|
107.2
|
|
Other assets and
deferred charges
|
477.0
|
|
421.4
|
|
Total
assets
|
$
5,356.3
|
|
$
5,469.4
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
17.0
|
|
$
75.9
|
|
Accounts
payable
|
773.9
|
|
734.0
|
|
Accrued compensation
and benefits
|
200.1
|
|
186.6
|
|
Deferred
revenue
|
16.6
|
|
28.1
|
|
Current portion of
operating lease liabilities
|
21.9
|
|
21.1
|
|
Accrued expenses and
other
|
172.1
|
|
153.6
|
|
Total current
liabilities
|
1,201.6
|
|
1,199.3
|
|
|
|
|
|
Long-term debt,
net
|
2,751.9
|
|
2,845.1
|
|
Deferred
revenue
|
70.4
|
|
73.4
|
|
Deferred income
taxes
|
16.5
|
|
10.7
|
|
Long-term portion of
operating lease liabilities
|
95.5
|
|
87.2
|
|
Postretirement benefits
and other long-term liabilities
|
615.5
|
|
626.4
|
|
Total
liabilities
|
4,751.4
|
|
4,842.1
|
|
|
|
|
|
Total stockholders'
equity
|
604.9
|
|
627.3
|
|
Total liabilities
and stockholders' equity
|
$
5,356.3
|
|
$
5,469.4
|
|
AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(in
millions)
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(19.1)
|
|
$
13.9
|
|
$
(33.6)
|
|
$
64.3
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
121.4
|
|
125.0
|
|
487.2
|
|
492.1
|
|
Other
|
|
(49.4)
|
|
9.6
|
|
(57.5)
|
|
(107.5)
|
|
Net cash provided by
operating activities
|
|
52.9
|
|
148.5
|
|
396.1
|
|
448.9
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(56.0)
|
|
(53.5)
|
|
(194.6)
|
|
(171.4)
|
|
Proceeds from sale of
property, plant and equipment
|
|
0.1
|
|
0.4
|
|
0.9
|
|
4.7
|
|
Acquisition of
business, net of cash acquired
|
|
(0.6)
|
|
(0.6)
|
|
(2.5)
|
|
(88.9)
|
|
Other
|
|
(1.3)
|
|
8.1
|
|
11.7
|
|
12.6
|
|
Net cash used in
investing activities
|
|
(57.8)
|
|
(45.6)
|
|
(184.5)
|
|
(243.0)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Net debt
activity
|
|
(94.3)
|
|
(65.6)
|
|
(177.2)
|
|
(216.8)
|
|
Other
|
|
(3.0)
|
|
(3.8)
|
|
(28.3)
|
|
(0.4)
|
|
Net cash used in
financing activities
|
|
(97.3)
|
|
(69.4)
|
|
(205.5)
|
|
(217.2)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
6.5
|
|
5.7
|
|
2.3
|
|
(7.4)
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(95.7)
|
|
39.2
|
|
8.4
|
|
(18.7)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
615.6
|
|
472.3
|
|
511.5
|
|
530.2
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
519.9
|
|
$
511.5
|
|
$
519.9
|
|
$
511.5
|
|
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.
|
|
|
|
|
|
Earnings before
interest expense, income taxes and depreciation and amortization
(EBITDA) and Adjusted
EBITDA(a)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(19.1)
|
|
$
13.9
|
|
$
(33.6)
|
|
$
64.3
|
|
Interest
expense
|
50.2
|
|
42.3
|
|
201.7
|
|
174.5
|
|
Income tax
expense
|
5.8
|
|
4.1
|
|
9.1
|
|
2.0
|
|
Depreciation and
amortization
|
121.4
|
|
125.0
|
|
487.2
|
|
492.1
|
|
EBITDA
|
158.3
|
|
185.3
|
|
664.4
|
|
732.9
|
|
Restructuring and
acquisition-related costs
|
9.0
|
|
3.8
|
|
25.2
|
|
30.2
|
|
Debt refinancing and
redemption costs
|
1.0
|
|
0.4
|
|
1.3
|
|
6.4
|
|
Unrealized loss (gain)
on equity securities
|
(0.1)
|
|
1.5
|
|
1.1
|
|
25.5
|
|
Pension curtailment and
settlement charges
|
1.3
|
|
—
|
|
1.3
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
|
Malvern fire insurance
recoveries, net of charges
|
—
|
|
(32.7)
|
|
—
|
|
(39.1)
|
|
Acquisition-related
fair value inventory adjustment
|
—
|
|
—
|
|
—
|
|
5.0
|
|
Gain on bargain
purchase of business
|
—
|
|
(0.6)
|
|
—
|
|
(13.6)
|
|
Adjusted
EBITDA
|
$
169.5
|
|
$
157.7
|
|
$
693.3
|
|
$
747.3
|
|
Adjusted earnings
(loss) per share(b)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Diluted earnings (loss)
per share
|
$
(0.16)
|
|
$
0.11
|
|
$
(0.29)
|
|
$
0.53
|
|
Restructuring and
acquisition-related costs
|
0.07
|
|
0.03
|
|
0.22
|
|
0.25
|
|
Debt refinancing and
redemption costs
|
0.01
|
|
—
|
|
0.01
|
|
0.05
|
|
Unrealized loss on
equity securities
|
—
|
|
0.01
|
|
0.01
|
|
0.21
|
|
Pension curtailment and
settlement charges
|
0.01
|
|
—
|
|
0.01
|
|
—
|
|
Non-recurring
items:
|
|
|
|
|
|
|
|
|
Malvern fire insurance
recoveries, net of charges
|
—
|
|
(0.26)
|
|
—
|
|
(0.32)
|
|
Acquisition-related
fair value inventory adjustment
|
—
|
|
—
|
|
—
|
|
0.04
|
|
Gain on bargain
purchase of business
|
—
|
|
(0.01)
|
|
—
|
|
(0.11)
|
|
Tax effect of
adjustments
|
(0.02)
|
|
0.05
|
|
(0.05)
|
|
(0.05)
|
|
Adjusted earnings
(loss) per share
|
$
(0.09)
|
|
$
(0.07)
|
|
$
(0.09)
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) per share are based on weighted average diluted shares
outstanding of 117.1 million and 114.6 million for the
three months ended December 31, 2023 and 2022 respectively, and
116.6 million and 120.4 million for the twelve months ended
December 31, 2023 and 2022, 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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
52.9
|
|
$
148.5
|
|
$
396.1
|
|
$
448.9
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(55.9)
|
|
(53.1)
|
|
(193.7)
|
|
(166.7)
|
|
Free cash
flow
|
(3.0)
|
|
$
95.4
|
|
202.4
|
|
282.2
|
|
Cash payments for
restructuring and acquisition-related costs
|
7.5
|
|
6.6
|
|
23.6
|
|
27.8
|
|
Cash payments
(insurance proceeds) related to Malvern fire, net
|
—
|
|
(3.0)
|
|
(7.0)
|
|
3.0
|
|
Adjusted free cash
flow
|
$
4.5
|
|
$
99.0
|
|
$
219.0
|
|
$
313.0
|
|
Segment Financial
Information
|
|
|
On June 1, 2022, our
acquisition of Tekfor became effective and we began consolidating
the results of Tekfor on that date, which are
reported in our Metal Forming segment. In the first quarter of
2023, we moved a plant location that was previously reported under
our
Driveline segment to our Metal Forming segment in order to better
align our product and process technologies. The amounts in the
tables below for the three and twelve months ended December 31,
2022 have been recast to reflect this reorganization.
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
Driveline
|
$
1,015.2
|
|
$
950.2
|
|
$
4,176.7
|
|
$
4,063.5
|
|
Metal
Forming
|
576.2
|
|
563.8
|
|
2,454.3
|
|
2,280.7
|
|
Total
Sales
|
1,591.4
|
|
1,514.0
|
|
6,631.0
|
|
6,344.2
|
|
Intersegment
Sales
|
(128.4)
|
|
(121.3)
|
|
(551.5)
|
|
(541.8)
|
|
Net External
Sales
|
$
1,463.0
|
|
$
1,392.7
|
|
$
6,079.5
|
|
$
5,802.4
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
|
Driveline
|
$
140.1
|
|
$
118.7
|
|
$
543.6
|
|
$
510.9
|
|
Metal
Forming
|
29.4
|
|
39.0
|
|
149.7
|
|
236.4
|
|
Total Segment
Adjusted EBITDA
|
$
169.5
|
|
$
157.7
|
|
$
693.3
|
|
$
747.3
|
|
Full Year 2024
Financial Outlook
|
|
|
|
Adjusted
EBITDA
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net income
(loss)
|
$
(10)
|
|
$
40
|
|
Interest
expense
|
195
|
|
195
|
|
Income tax
expense
|
—
|
|
15
|
|
Depreciation and
amortization
|
480
|
|
480
|
|
Full year 2024 targeted
EBITDA
|
665
|
|
730
|
|
Restructuring and
acquisition-related costs
|
20
|
|
20
|
|
Full year 2024
targeted Adjusted EBITDA
|
$
685
|
|
$
750
|
|
Adjusted Free Cash
Flow
|
|
Low
End
|
|
High
End
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
445
|
|
$
485
|
|
Capital expenditures
net of proceeds from the sale of property,
plant and equipment
|
(265)
|
|
(265)
|
|
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, loss on sale of a business,
pension curtailment and settlement charges, unrealized gains or
losses on equity securities 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 (loss) per share to be diluted earnings (loss) per share
excluding the impact of restructuring and acquisition-related
costs, debt refinancing and redemption costs, loss on sale of a
business, pension curtailment and settlement charges, unrealized
gains or losses on equity securities and non-recurring items,
including the tax effect thereon. We believe Adjusted
earnings (loss) 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 (loss) 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. 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.