News
American Axle & Manufacturing
Announces Second Quarter Earnings of $0.34 Per Share
DETROIT,
Axle & Manufacturing Holdings, Inc. (AAM), which is traded as
AXL on the NYSE, today reported its financial results for the
second quarter of 2010.
Second Quarter 2010 Results
- Second quarter 2010 sales of $559.6
million - Gross profit of $98.9 million, or
17.7% of sales - Operating income of $50.4
million, or 9.0% of sales - Net income of $25.4 million, or
$0.34 per share - EBITDA (earnings before interest, taxes, depreciation and
amortization) of $83.2 million, or
14.9% of sales - Net cash provided by operating activities of
- Free cash flow (net cash provided by operating activities less
capital expenditures net of proceeds from the sale of equipment) of
$68.1 million, a
AAM's results in the second quarter of 2010 were net earnings of
$25.4 million or
net loss of $288.6 million or
2009.
In the second quarter of 2010, AAM incurred a net charge of
$1.7 million, or
asset impairments related to the planned closure of AAM's Salem
Manufacturing Facility in Ohio,
net of adjustments to previously recorded estimates for
supplemental unemployment benefits (SUB) and idled leased asset
accruals.
In the second quarter of 2009, AAM incurred special charges,
asset impairments and non-recurring operating costs of
related to asset impairments, hourly and salaried workforce
reductions (including attrition programs and related statutory
benefits) and the acceleration of expense related to the Buydown
Program (BDP) for UAW-represented associates at AAM's
facilities.
AAM's results in the second quarter of 2009 were also adversely
impacted by the extended summer production shutdowns of GM and
Chrysler. AAM estimates the reduction in sales and operating income
resulting from these shutdowns in the second quarter of 2009 was
approximately $203.6 million and
approximately $65.7 million (or
"The second quarter of 2010 marked AAM's fourth consecutive
quarter of sequential sales gains and improved profit and cash flow
performance, "said AAM's Co-Founder, Chairman of the Board and
Chief Executive Officer, Richard E.
Dauch. "AAM is benefiting from a recovery in market
demand for full-size pickups and SUVs, as well as a strong cadence
of new product launches that is rapidly enhancing the
diversification of our customer base and served markets. We
expect these favorable conditions to continue throughout the second
half of 2010, positioning AAM for full year sales growth of 40% -
45% and profit margins that rank among the best in our company's
history."
Net sales in the second quarter of 2010 were
quarter of 2009. On a sequential basis, net sales in the
quarter increased approximately 7% as compared to the first quarter
of 2010.
Non-GM sales in the second quarter of 2010 increased
approximately $78 million on a
year-over-year basis to $135.2
million. On a sequential basis, non-GM sales in the
quarter increased nearly 9% as compared to the first quarter of
2010.
AAM's content-per-vehicle is measured by the dollar value of its
product sales supporting GM's North American light truck and SUV
programs and Chrysler's heavy duty Dodge Ram pickup trucks. For the
second quarter of 2010, AAM's content-per-vehicle was
AAM's net sales of $1.1 billion in
the first half of 2010 increased by $433.5
million, or 67%, as compared to
AAM's gross profit in the second quarter of 2010 was
compared to a gross loss of $215.1
million in the second quarter of 2009. In the first
half of 2010, AAM's gross profit was $186.2
million, or 17.2% of sales, as compared to a gross loss of
$188.0 million for the first half of
2009.
AAM's SG&A spending in the second quarter of 2010 was
2009. In the first half of 2010, AAM's SG&A spending was
$93.8 million as compared to
AAM's R&D spending for the first half of 2010 was
approximately $37.7 million as
compared to $35.7 million in the
first half of 2009.
AAM's operating income in the second quarter of 2010 was
the first half of 2010, AAM's operating income was
compared to an operating loss of $277.3
million for the first half of 2009.
AAM defines EBITDA to be earnings before interest, taxes,
depreciation and amortization. AAM's EBITDA in the second
quarter of 2010 was $83.2 million, or
14.9% of sales. In the first half of 2010, AAM's EBITDA was
$155.8 million, or 14.4% of
sales.
AAM defines free cash flow to be net cash provided by (or used
in) operating activities less capital expenditures net of proceeds
from the sale of equipment. Net cash provided by operating
activities in the first half of 2010 was
of proceeds from the sale of equipment for the first half of 2010
was $35.7 million. Reflecting
the impact of this activity, AAM generated
In the first half of 2009, AAM's free cash flow was a use of
$106.9 million.
Included in AAM's first half of 2010 free cash flow is a
received in connection with a special five-year net operating loss
carryback election included in the Worker, Home Ownership and
Business Act of 2009.
AAM's first half of 2010 free cash flow also reflects the impact
of cash payments for restructuring costs of
primarily to AAM's remaining obligations under hourly and salaried
attrition programs and the BDP for UAW represented associates
at AAM's Detroit, Michigan;
facilities.
A conference call to review AAM's second quarter 2010 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
target="_blank"
href="http://investor.aam.com">http://investor.aam.com or
calling (877) 278-1452 from the United
States or (973) 200-3383 from outside
be available from Noon ET on
6, 2010 by dialing (800) 642-1687 from
outside the United States.
When prompted, callers should enter conference reservation
number 86844610.
Non-GAAP Financial Information
In addition to the results reported in accordance with
accounting principles generally accepted in
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 the 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 trucks, sport utility vehicles, passenger cars and crossover
utility vehicles. In addition to locations in
York, Ohio, and
facilities in Brazil,
Korea, Thailand and the
United Kingdom.
Certain statements contained in this press release are
"forward-looking statements" and relate to the Company's plans,
projections, strategies or future performance. Such
statements, made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, are based on our
current expectations, are inherently uncertain, are subject to
risks and should be viewed with caution. 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; our ability to comply
with the definitive terms and conditions of various commercial and
financing arrangements with GM; reduced purchases of our products
by GM, Chrysler or other customers; reduced demand for our
customers' products (particularly light trucks and SUVs produced by
GM and Chrysler); availability of financing for working capital,
capital expenditures, 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; the impact on us and our customers of requirements
imposed on, or actions taken by, our customers in response to the
U.S. government's ownership interest, the Troubled Asset Relief
Program or similar programs; our ability to achieve cost reductions
through ongoing restructuring actions; additional restructuring
actions that may occur; our ability to achieve the level of cost
reductions required to sustain global cost competitiveness; our
ability to maintain satisfactory labor relations and avoid future
work stoppages; our suppliers', our customers' and their suppliers'
ability to maintain satisfactory labor relations and avoid work
stoppages; our ability to continue to implement improvements in our
U.S. labor cost structure; supply shortages or price increases in
raw materials, utilities or other operating supplies; 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; our ability to attract new customers
and programs for new products; 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
respond to changes in technology, increased competition or pricing
pressures; price volatility in, or reduced availability of, fuel;
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);
adverse changes in the political stability of our principal markets
(particularly North America,
America and Asia);
liabilities arising from warranty claims, product liability and
legal proceedings to which we are or may become a party; changes in
liabilities arising from pension and other postretirement benefit
obligations; risks of noncompliance with environmental regulations
or risks of environmental issues that could result in unforeseen
costs at our facilities; our ability to attract and retain key
associates; other unanticipated events and conditions that may
hinder our ability to compete. For additional discussion, see
"Risk factors related to our business" in our most recent 10K
filing.
It is not possible to foresee or identify all such factors
and we assume no obligation to update any forward-looking
statements or to disclose any subsequent facts, events or
circumstances that may affect their accuracy.
style="font-family:Arial;font-size:8pt;">For more
information...
style="font-family:Arial;font-size:8pt;">Christopher M.
Son
style="font-family:Arial;font-size:8pt;">David Tworek
style="font-family:Arial;font-size:8pt;">Director, Investor
Relations and
style="font-family:Arial;font-size:8pt;">Manager,
Communications
style="font-family:Arial;font-size:8pt;">Corporate
Communications
style="font-family:Arial;font-size:8pt;">(313) 758-4883
style="font-family:Arial;font-size:8pt;">(313) 758-4814
style="font-family:Arial;font-size:8pt;">
target="_blank"
href='mailto://www.prnewswire.com/news-releases/david.tworek@aam.com'
title='david.tworek@aam.com'>david.tworek@aam.com
style="font-family:Arial;font-size:8pt;">
target="_blank"
href='mailto://www.prnewswire.com/news-releases/chris.son@aam.com'
title='chris.son@aam.com'>chris.son@aam.com
style="font-family:Arial;font-size:8pt;">Or visit the AAM website
at
href="http://www.aam.com/">
style="font-family:Arial;font-size:8pt;">www.aam.com
style="font-family:Arial;font-size:8pt;">.
style="font-family:Arial;font-size:8pt;">AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
style="font-family:Arial;font-size:8pt;">CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
style="font-family:Arial;font-size:8pt;">(Unaudited)
style="font-family:Arial;font-size:8pt;">Three months
ended
style="font-family:Arial;font-size:8pt;">Six months
ended
style="font-family:Arial;font-size:8pt;">June 30,
style="font-family:Arial;font-size:8pt;">June 30,
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
style="font-family:Arial;font-size:8pt;">(In millions, except per
share data)
style="font-family:Arial;font-size:8pt;">(In millions, except per
share data)
style="font-family:Arial;font-size:8pt;">Net sales
style="font-family:Arial;font-size:8pt;">$ 559.6
style="font-family:Arial;font-size:8pt;">$ 245.6
style="font-family:Arial;font-size:8pt;">$ 1,081.5
style="font-family:Arial;font-size:8pt;">$ 648.0
style="font-family:Arial;font-size:8pt;">Cost of goods
sold
valign="bottom">
style="font-family:Arial;font-size:8pt;">460.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">460.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">895.3
valign="bottom">
style="font-family:Arial;font-size:8pt;">836.0
style="font-family:Arial;font-size:8pt;">Gross profit
(loss)
style="font-family:Arial;font-size:8pt;">98.9
style="font-family:Arial;font-size:8pt;">(215.1)
style="font-family:Arial;font-size:8pt;">186.2
style="font-family:Arial;font-size:8pt;">(188.0)
style="font-family:Arial;font-size:8pt;">Selling, general and
administrative expenses
valign="bottom">
style="font-family:Arial;font-size:8pt;">48.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">45.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">93.8
valign="bottom">
style="font-family:Arial;font-size:8pt;">89.3
style="font-family:Arial;font-size:8pt;">Operating income
(loss)
style="font-family:Arial;font-size:8pt;">50.4
style="font-family:Arial;font-size:8pt;">(260.6)
style="font-family:Arial;font-size:8pt;">92.4
style="font-family:Arial;font-size:8pt;">(277.3)
style="font-family:Arial;font-size:8pt;">Interest
expense
style="font-family:Arial;font-size:8pt;">(22.6)
style="font-family:Arial;font-size:8pt;">(19.7)
style="font-family:Arial;font-size:8pt;">(45.3)
style="font-family:Arial;font-size:8pt;">(40.1)
style="font-family:Arial;font-size:8pt;">Investment
income
style="font-family:Arial;font-size:8pt;">0.6
style="font-family:Arial;font-size:8pt;">1.0
style="font-family:Arial;font-size:8pt;">1.0
style="font-family:Arial;font-size:8pt;">2.0
style="font-family:Arial;font-size:8pt;">Other expense,
net
valign="bottom">
style="font-family:Arial;font-size:8pt;">(0.7)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(2.9)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(2.2)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(3.7)
style="font-family:Arial;font-size:8pt;">Income (loss) before
income taxes
style="font-family:Arial;font-size:8pt;">27.7
style="font-family:Arial;font-size:8pt;">(282.2)
style="font-family:Arial;font-size:8pt;">45.9
style="font-family:Arial;font-size:8pt;">(319.1)
style="font-family:Arial;font-size:8pt;">Income tax
expense
valign="bottom">
style="font-family:Arial;font-size:8pt;">2.4
valign="bottom">
style="font-family:Arial;font-size:8pt;">6.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">4.4
valign="bottom">
style="font-family:Arial;font-size:8pt;">2.3
style="font-family:Arial;font-size:8pt;">Net income
(loss)
style="font-family:Arial;font-size:8pt;">25.3
style="font-family:Arial;font-size:8pt;">(288.7)
style="font-family:Arial;font-size:8pt;">41.5
style="font-family:Arial;font-size:8pt;">(321.4)
style="font-family:Arial;font-size:8pt;"> Net loss
attributable to noncontrolling interest
valign="bottom">
style="font-family:Arial;font-size:8pt;">0.1
valign="bottom">
style="font-family:Arial;font-size:8pt;">0.1
valign="bottom">
style="font-family:Arial;font-size:8pt;">0.2
valign="bottom">
style="font-family:Arial;font-size:8pt;">0.1
style="font-family:Arial;font-size:8pt;">Net income (loss)
attributable to AAM
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 25.4
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ (288.6)
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
41.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ (321.3)
style="font-family:Arial;font-size:8pt;">Diluted earnings (loss)
per share
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 0.34
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ (5.20)
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
0.56
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ (5.79)
style="font-family:Arial;font-size:8pt;">Diluted shares
outstanding
valign="bottom">
style="font-family:Arial;font-size:8pt;">74.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">55.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">74.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">55.5
style="font-family:Arial;font-size:8pt;">AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
style="font-family:Arial;font-size:8pt;">CONDENSED CONSOLIDATED
BALANCE SHEETS
style="font-family:Arial;font-size:8pt;">(Unaudited)
style="font-family:Arial;font-size:8pt;">June 30,
style="font-family:Arial;font-size:8pt;">December
31,
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">ASSETS
style="font-family:Arial;font-size:8pt;">Current assets
style="font-family:Arial;font-size:8pt;"> Cash and
cash equivalents
style="font-family:Arial;font-size:8pt;">$
238.7
style="font-family:Arial;font-size:8pt;">$
178.1
style="font-family:Arial;font-size:8pt;"> Short-term
investments
style="font-family:Arial;font-size:8pt;">2.8
style="font-family:Arial;font-size:8pt;">4.2
style="font-family:Arial;font-size:8pt;"> Accounts
receivable, net
style="font-family:Arial;font-size:8pt;">172.4
style="font-family:Arial;font-size:8pt;">129.7
style="font-family:Arial;font-size:8pt;"> Inventories,
net
style="font-family:Arial;font-size:8pt;">116.6
style="font-family:Arial;font-size:8pt;">90.6
style="font-family:Arial;font-size:8pt;"> Prepaid
expenses and other
valign="bottom">
style="font-family:Arial;font-size:8pt;">65.2
valign="bottom">
style="font-family:Arial;font-size:8pt;">114.0
style="font-family:Arial;font-size:8pt;">Total current
assets
style="font-family:Arial;font-size:8pt;">595.7
style="font-family:Arial;font-size:8pt;">516.6
style="font-family:Arial;font-size:8pt;">Property, plant and
equipment, net
style="font-family:Arial;font-size:8pt;">922.6
style="font-family:Arial;font-size:8pt;">946.7
style="font-family:Arial;font-size:8pt;">GM postretirement cost
sharing asset
style="font-family:Arial;font-size:8pt;">214.4
style="font-family:Arial;font-size:8pt;">219.9
style="font-family:Arial;font-size:8pt;">Goodwill
style="font-family:Arial;font-size:8pt;">147.8
style="font-family:Arial;font-size:8pt;">147.8
style="font-family:Arial;font-size:8pt;">Other assets and deferred
charges
valign="bottom">
style="font-family:Arial;font-size:8pt;">147.2
valign="bottom">
style="font-family:Arial;font-size:8pt;">155.8
style="font-family:Arial;font-size:8pt;">Total assets
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 2,027.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
1,986.8
style="font-family:Arial;font-size:8pt;">LIABILITIES AND
STOCKHOLDERS' DEFICIT
style="font-family:Arial;font-size:8pt;">Current
liabilities
style="font-family:Arial;font-size:8pt;"> Accounts
payable
style="font-family:Arial;font-size:8pt;">$
287.6
style="font-family:Arial;font-size:8pt;">$
200.9
style="font-family:Arial;font-size:8pt;"> Accrued
expenses and other
valign="bottom">
style="font-family:Arial;font-size:8pt;">276.4
valign="bottom">
style="font-family:Arial;font-size:8pt;">244.6
style="font-family:Arial;font-size:8pt;">Total current
liabilities
style="font-family:Arial;font-size:8pt;">564.0
style="font-family:Arial;font-size:8pt;">445.5
style="font-family:Arial;font-size:8pt;">Long-term debt
style="font-family:Arial;font-size:8pt;">1,012.6
style="font-family:Arial;font-size:8pt;">1,071.4
style="font-family:Arial;font-size:8pt;">Deferred
revenue
style="font-family:Arial;font-size:8pt;">155.6
style="font-family:Arial;font-size:8pt;">189.7
style="font-family:Arial;font-size:8pt;">Postretirement benefits
and other long-term liabilities
valign="bottom">
style="font-family:Arial;font-size:8pt;">815.9
valign="bottom">
style="font-family:Arial;font-size:8pt;">840.1
style="font-family:Arial;font-size:8pt;">Total
liabilities
style="font-family:Arial;font-size:8pt;">2,548.1
style="font-family:Arial;font-size:8pt;">2,546.7
style="font-family:Arial;font-size:8pt;">Stockholders'
deficit
valign="bottom">
style="font-family:Arial;font-size:8pt;">(520.4)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(559.9)
style="font-family:Arial;font-size:8pt;">Total liabilities and
stockholders' deficit
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 2,027.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
1,986.8
style="font-family:Arial;font-size:8pt;">AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
style="font-family:Arial;font-size:8pt;">CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
style="font-family:Arial;font-size:8pt;">(Unaudited)
style="font-family:Arial;font-size:8pt;">Three months
ended
style="font-family:Arial;font-size:8pt;">Six months
ended
style="font-family:Arial;font-size:8pt;">June 30,
style="font-family:Arial;font-size:8pt;">June 30,
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">Operating
activities
style="font-family:Arial;font-size:8pt;"> Net income
(loss)
style="font-family:Arial;font-size:8pt;">$ 25.3
style="font-family:Arial;font-size:8pt;">$ (288.6)
style="font-family:Arial;font-size:8pt;">$ 41.5
style="font-family:Arial;font-size:8pt;">$ (321.4)
style="font-family:Arial;font-size:8pt;"> Depreciation
and amortization
style="font-family:Arial;font-size:8pt;">32.8
style="font-family:Arial;font-size:8pt;">36.6
style="font-family:Arial;font-size:8pt;">64.4
style="font-family:Arial;font-size:8pt;">72.5
style="font-family:Arial;font-size:8pt;">
Other
valign="bottom">
style="font-family:Arial;font-size:8pt;">27.8
valign="bottom">
style="font-family:Arial;font-size:8pt;">246.9
valign="bottom">
style="font-family:Arial;font-size:8pt;">59.0
valign="bottom">
style="font-family:Arial;font-size:8pt;">222.5
style="font-family:Arial;font-size:8pt;">Net cash flow provided by
(used in) operating activities
style="font-family:Arial;font-size:8pt;">85.9
style="font-family:Arial;font-size:8pt;">(5.1)
style="font-family:Arial;font-size:8pt;">164.9
style="font-family:Arial;font-size:8pt;">(26.4)
style="font-family:Arial;font-size:8pt;">Purchases of property,
plant & equipment
style="font-family:Arial;font-size:8pt;">(18.1)
style="font-family:Arial;font-size:8pt;">(36.2)
style="font-family:Arial;font-size:8pt;">(36.9)
style="font-family:Arial;font-size:8pt;">(81.0)
style="font-family:Arial;font-size:8pt;">Purchase buyouts of leased
equipment
style="font-family:Arial;font-size:8pt;">(3.4)
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">(7.4)
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">Investment in joint
venture
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">(10.2)
style="font-family:Arial;font-size:8pt;">Proceeds from sales of
equipment
style="font-family:Arial;font-size:8pt;">0.3
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">1.2
style="font-family:Arial;font-size:8pt;">0.5
style="font-family:Arial;font-size:8pt;">Redemption of short-term
investments
valign="bottom">
style="font-family:Arial;font-size:8pt;">0.2
valign="bottom">
style="font-family:Arial;font-size:8pt;">7.1
valign="bottom">
style="font-family:Arial;font-size:8pt;">1.6
valign="bottom">
style="font-family:Arial;font-size:8pt;">66.0
style="font-family:Arial;font-size:8pt;">Net cash flow used in
investing activities
style="font-family:Arial;font-size:8pt;">(21.0)
style="font-family:Arial;font-size:8pt;">(29.1)
style="font-family:Arial;font-size:8pt;">(41.5)
style="font-family:Arial;font-size:8pt;">(24.7)
style="font-family:Arial;font-size:8pt;">Net increase (decrease) in
long-term debt
style="font-family:Arial;font-size:8pt;">(2.0)
style="font-family:Arial;font-size:8pt;">168.6
style="font-family:Arial;font-size:8pt;">(57.5)
style="font-family:Arial;font-size:8pt;">123.6
style="font-family:Arial;font-size:8pt;">Debt issuance
costs
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">(2.7)
style="font-family:Arial;font-size:8pt;">(2.2)
style="font-family:Arial;font-size:8pt;">(2.7)
style="font-family:Arial;font-size:8pt;">Repurchase of treasury
stock
style="font-family:Arial;font-size:8pt;">(0.1)
style="font-family:Arial;font-size:8pt;">(0.1)
style="font-family:Arial;font-size:8pt;">(1.3)
style="font-family:Arial;font-size:8pt;">(0.1)
style="font-family:Arial;font-size:8pt;">Net cash flow provided by
(used in) financing activities
style="font-family:Arial;font-size:8pt;">(2.1)
style="font-family:Arial;font-size:8pt;">165.8
style="font-family:Arial;font-size:8pt;">(61.0)
style="font-family:Arial;font-size:8pt;">120.8
style="font-family:Arial;font-size:8pt;">Effect of exchange rate
changes on cash
valign="bottom">
style="font-family:Arial;font-size:8pt;">(0.7)
valign="bottom">
style="font-family:Arial;font-size:8pt;">3.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">(1.8)
valign="bottom">
style="font-family:Arial;font-size:8pt;">3.9
style="font-family:Arial;font-size:8pt;">Net increase in cash and
cash equivalents
style="font-family:Arial;font-size:8pt;">62.1
style="font-family:Arial;font-size:8pt;">135.3
style="font-family:Arial;font-size:8pt;">60.6
style="font-family:Arial;font-size:8pt;">73.6
style="font-family:Arial;font-size:8pt;">Cash and cash equivalents
at beginning of period
valign="bottom">
style="font-family:Arial;font-size:8pt;">176.6
valign="bottom">
style="font-family:Arial;font-size:8pt;">137.1
valign="bottom">
style="font-family:Arial;font-size:8pt;">178.1
valign="bottom">
style="font-family:Arial;font-size:8pt;">198.8
style="font-family:Arial;font-size:8pt;">Cash and cash equivalents
at end of period
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 238.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 272.4
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 238.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">$ 272.4
style="font-family:Arial;font-size:8pt;">AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
style="font-family:Arial;font-size:8pt;">SUPPLEMENTAL
DATA
style="font-family:Arial;font-size:8pt;">(Unaudited)
style="font-family:Arial;font-size:8pt;">The supplemental data
presented below is a reconciliation of certain financial measures
which is intended
style="font-family:Arial;font-size:8pt;">to facilitate analysis of
American Axle & Manufacturing Holdings, Inc. business and
operating performance.
style="font-family:Arial;font-size:8pt;">Earnings (loss) before
interest expense, income taxes and depreciation and amortization
(EBITDA)(a)
style="font-family:Arial;font-size:8pt;">Three months
ended
style="font-family:Arial;font-size:8pt;">Six months
ended
style="font-family:Arial;font-size:8pt;">June 30,
style="font-family:Arial;font-size:8pt;">June 30,
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">Net income (loss)
attributable to AAM
style="font-family:Arial;font-size:8pt;">$
25.4
style="font-family:Arial;font-size:8pt;">$
(288.6)
style="font-family:Arial;font-size:8pt;">$
41.7
style="font-family:Arial;font-size:8pt;">$
(321.3)
style="font-family:Arial;font-size:8pt;">Interest
expense
style="font-family:Arial;font-size:8pt;">22.6
style="font-family:Arial;font-size:8pt;">19.7
style="font-family:Arial;font-size:8pt;">45.3
style="font-family:Arial;font-size:8pt;">40.1
style="font-family:Arial;font-size:8pt;">Income taxes
style="font-family:Arial;font-size:8pt;">2.4
style="font-family:Arial;font-size:8pt;">6.5
style="font-family:Arial;font-size:8pt;">4.4
style="font-family:Arial;font-size:8pt;">2.3
style="font-family:Arial;font-size:8pt;">Depreciation and
amortization
valign="bottom">
style="font-family:Arial;font-size:8pt;">32.8
valign="bottom">
style="font-family:Arial;font-size:8pt;">36.6
valign="bottom">
style="font-family:Arial;font-size:8pt;">64.4
valign="bottom">
style="font-family:Arial;font-size:8pt;">72.5
style="font-family:Arial;font-size:8pt;">EBITDA
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
83.2
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
(225.8)
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
155.8
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
(206.4)
style="font-family:Arial;font-size:8pt;">Net debt(b) to
capital
style="font-family:Arial;font-size:8pt;">June 30,
style="font-family:Arial;font-size:8pt;">December
31,
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
style="font-family:Arial;font-size:8pt;">(In millions, except
percentages)
style="font-family:Arial;font-size:8pt;">Total debt
style="font-family:Arial;font-size:8pt;">$
1,012.6
style="font-family:Arial;font-size:8pt;">$
1,071.4
style="font-family:Arial;font-size:8pt;">Less: cash and cash
equivalents
valign="bottom">
style="font-family:Arial;font-size:8pt;">238.7
valign="bottom">
style="font-family:Arial;font-size:8pt;">178.1
style="font-family:Arial;font-size:8pt;">Net debt at end of
period
style="font-family:Arial;font-size:8pt;">773.9
style="font-family:Arial;font-size:8pt;">893.3
style="font-family:Arial;font-size:8pt;">Stockholders'
deficit
valign="bottom">
style="font-family:Arial;font-size:8pt;">(520.4)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(559.9)
style="font-family:Arial;font-size:8pt;">Total invested capital at
end of period
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
253.5
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
333.4
style="font-family:Arial;font-size:8pt;">Net debt to
capital(c)
valign="bottom">
style="font-family:Arial;font-size:8pt;">305.3%
valign="bottom">
style="font-family:Arial;font-size:8pt;">267.9%
style="font-family:Arial;font-size:8pt;">Net Operating Cash Flow
and Free Cash Flow(d)
style="font-family:Arial;font-size:8pt;">Three months
ended
style="font-family:Arial;font-size:8pt;">Six months
ended
style="font-family:Arial;font-size:8pt;">June 30,
style="font-family:Arial;font-size:8pt;">June 30,
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
valign="bottom">
style="font-family:Arial;font-size:8pt;">2010
style="font-family:Arial;font-size:8pt;">2009
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">(In
millions)
style="font-family:Arial;font-size:8pt;">Net cash provided by (used
in) operating activities
style="font-family:Arial;font-size:8pt;">$
85.9
style="font-family:Arial;font-size:8pt;">$
(5.1)
style="font-family:Arial;font-size:8pt;">$
164.9
style="font-family:Arial;font-size:8pt;">$
(26.4)
style="font-family:Arial;font-size:8pt;">Less: Purchases of
property, plant & equipment, net of
style="font-family:Arial;font-size:8pt;">proceeds from sale of
equipment
valign="bottom">
style="font-family:Arial;font-size:8pt;">(17.8)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(36.2)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(35.7)
valign="bottom">
style="font-family:Arial;font-size:8pt;">(80.5)
style="font-family:Arial;font-size:8pt;">Net operating cash
flow
style="font-family:Arial;font-size:8pt;">68.1
style="font-family:Arial;font-size:8pt;">(41.3)
style="font-family:Arial;font-size:8pt;">129.2
style="font-family:Arial;font-size:8pt;">(106.9)
style="font-family:Arial;font-size:8pt;">Less: dividends
paid
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">-
style="font-family:Arial;font-size:8pt;">Free cash
flow
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
68.1
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
(41.3)
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
129.2
valign="bottom">
style="font-family:Arial;font-size:8pt;">$
(106.9)
style="font-family:Arial;font-size:8pt;">(a) We believe that
EBITDA is a meaningful measure of performance as it is commonly
utilized by management and investors to analyze
style="font-family:Arial;font-size:8pt;">operating performance and
entity valuation. Our management, the investment community
and the banking institutions routinely use
style="font-family:Arial;font-size:8pt;">EBITDA, together with
other measures, to measure our operating performance relative to
other Tier 1 automotive suppliers. EBITDA
style="font-family:Arial;font-size:8pt;">should not be construed as
income from operations, net income or cash flow from operating
activities as determined under GAAP.
style="font-family:Arial;font-size:8pt;">Other companies may
calculate EBITDA differently.
style="font-family:Arial;font-size:8pt;">(b) Net debt is
equal to total debt less cash and cash equivalents.
style="font-family:Arial;font-size:8pt;">(c) Net debt to
capital is equal to net debt divided by the sum of stockholders'
deficit and net debt. We believe that net debt to capital
is
style="font-family:Arial;font-size:8pt;">a meaningful measure of
financial condition as it is commonly utilized by management,
investors and creditors to assess relative capital
style="font-family:Arial;font-size:8pt;">structure risk.
Other companies may calculate net debt to capital
differently.
style="font-family:Arial;font-size:8pt;">(d) We define net
operating cash flow as net cash provided by operating activities
less purchases of property and equipment net of
style="font-family:Arial;font-size:8pt;">proceeds from sales of
assets. Free cash flow is defined as net operating cash flow
less dividends paid. We believe net operating
cash
style="font-family:Arial;font-size:8pt;">flow and free cash flow
are meaningful measures as they are commonly utilized by management
and investors to assess our ability to
style="font-family:Arial;font-size:8pt;">generate cash flow from
business operations to repay debt and return capital to our
stockholders. Net operating cash flow is also a
key
style="font-family:Arial;font-size:8pt;">metric used in our
calculation of incentive compensation. Other companies may
calculate net operating cash flow and free cash flow
style="font-family:Arial;font-size:8pt;">differently.
target="_blank">SOURCE
Topics
