American Axle & Manufacturing Reports First Quarter 2010 Financial Results

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.

Visit the AAM website at www.aam.com.

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)














Three months ended



March 31,



2010


2009



(In millions, except per share data)











Net sales


$                    521.9


$ 402.4






Cost of goods sold


434.6


375.3






Gross profit


87.3


27.1






Selling, general and administrative expenses

45.3


43.8






Operating income (loss)


42.0


(16.7)






Interest expense


(22.7)


(20.4)

Investment income


0.4


1.0

Other income (expense), net

(1.5)


(0.8)






Income (loss) before income taxes

18.2


(36.9)






Income tax expense (benefit)

2.0


(4.2)






Net income (loss)


16.2


(32.7)






Net loss attributable to noncontrolling interest

0.1


-






Net income (loss) attributable to AAM

$                      16.3


$ (32.7)






Diluted earnings (loss) per share

$                      0.22


$ (0.59)






Diluted shares outstanding

74.6


55.4



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)














March 31,


December 31,


2010


2009


(In millions)

ASSETS








Current assets




    Cash and cash equivalents

$     176.6


$            178.1

    Short-term investments

2.8


4.2

    Accounts receivable, net

166.8


129.7

    Inventories, net

99.8


90.6

    Prepaid expenses and other

71.2


114.0

Total current assets

517.2


516.6





Property, plant and equipment, net

939.5


946.7

GM postretirement cost sharing asset

214.4


219.9

Goodwill

147.8


147.8

Other assets and deferred charges

148.7


155.8

Total assets

$  1,967.6


$         1,986.8













LIABILITIES AND STOCKHOLDERS' DEFICIT








Current liabilities




    Accounts payable

$     256.5


$            200.9

    Accrued expenses and other

261.0


244.6

Total current liabilities

517.5


445.5





Long-term debt

1,015.2


1,071.4

Deferred revenue

170.5


189.7

Postretirement benefits and other long-term liabilities

809.8


840.1

Total liabilities

2,513.0


2,546.7









Stockholders' deficit

(545.4)


(559.9)

Total liabilities and stockholders' deficit

$  1,967.6


$         1,986.8



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)











Three months ended


March 31,


2010


2009


(In millions)

Operating activities




    Net income (loss)

$   16.2


$ (32.7)

    Depreciation and amortization

31.6


35.9

    Other

31.2


(24.5)





Net cash flow provided by (used in) operating activities

79.0


(21.3)





Purchases of property, plant & equipment

(18.8)


(44.8)

Purchase buyouts of leased equipment

(4.0)


-

Investment in joint venture

-


(10.2)

Proceeds from sales of equipment

0.9


0.5

Redemption of short-term investments

1.4


58.9





Net cash flow provided by (used in) investing activities

(20.5)


4.4





Net decrease in long-term debt

(55.5)


(45.0)

Debt issuance costs

(2.2)


-

Repurchase of treasury stock

(1.2)


-





Net cash flow used in financing activities

(58.9)


(45.0)





Effect of exchange rate changes on cash

(1.1)


0.2





Net decrease in cash and cash equivalents

(1.5)


(61.7)





Cash and cash equivalents at beginning of period

178.1


198.8





Cash and cash equivalents at end of period

$ 176.6


$ 137.1



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)(a)











Three months ended










March 31,










2010


2009










(In millions)













Net income (loss) attributable to AAM









$       16.3


$             (32.7)

Interest expense









22.7


20.4

Income taxes









2.0


(4.2)

Depreciation and amortization









31.6


35.9













EBITDA









$       72.6


$              19.4



























Net debt(b) to capital




















March 31,


December 31,










2010


2009










(In millions, except percentages)













Total debt









$  1,015.2


$         1,071.4

Less: cash and cash equivalents









176.6


178.1













Net debt at end of period









838.6


893.3













Stockholders' deficit









(545.4)


(559.9)













Total invested capital at end of period









$     293.2


$            333.4













Net debt to capital(c)









286.0%


267.9%



























Net Operating Cash Flow and Free Cash Flow(d)










Three months ended










March 31,










2010


2009










(In millions)













Net cash provided by (used in) operating activities








$       79.0


$             (21.3)

Less: Purchases of property, plant & equipment, net of proceeds from sale of equipment






(17.9)


(44.3)













Net operating cash flow









61.1


(65.6)













Less: dividends paid









-


-













Free cash flow









$       61.1


$             (65.6)

























(a)  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' deficit 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 net operating cash flow as net cash provided by operating activities less purchases of property and equipment net of proceeds from sales of assets.  Free cash flow is defined as net operating cash flow less dividends paid.  We believe net operating cash flow and 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.  Net operating cash flow is also a key metric used in our calculation of incentive compensation.  Other companies may calculate net operating cash flow and free cash flow differently.



For more information...


Christopher M. Son

David Tworek

Director, Investor Relations and

Manager, Communications

Corporate Communications

(313) 758-4883

(313) 758-4814

Email Contact

Email Contact








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