Aptiv Reports First Quarter 2022 Financial Results
Aptiv PLC reported a strong start to 2022 with U.S. GAAP revenue of $4.2 billion, a 4% increase from the previous year. The diluted earnings per share were $0.27, with adjusted earnings at $0.63. Growth was driven by 9% increase in Asia, particularly 14% in China. However, net income was $73 million, down from $279 million year-over-year. The company anticipates 2022 net sales between $17.75 billion and $18.15 billion and aims for an adjusted EBITDA margin of 13.6% to 14.8%.
- First quarter revenue increased by 4%, demonstrating resilience amid economic challenges.
- Adjusted EBITDA of $478 million indicates strong operational performance.
- Full year 2022 guidance suggests net sales of $17.75 billion to $18.15 billion.
- First quarter net income dropped to $73 million from $279 million year-over-year.
- Adjusted operating income margin decreased to 7.8% from 11.8% in the prior year, reflecting inflationary pressures.
Strong Revenue Growth Over Market Continues Despite Challenging Environment
DUBLIN, May 5, 2022 /PRNewswire/ -- Aptiv PLC (NYSE: APTV), a global technology company focused on making mobility safer, greener and more connected, today reported first quarter 2022 U.S. GAAP earnings of
First Quarter Financial Highlights Include:
-- U.S. GAAP revenue of
- Revenue increased
4% adjusted for currency exchange and commodity movements; growth over market of11% based on AWM1 of (7)%
-- U.S. GAAP net income of
- Excluding special items, diluted earnings per share of
$0.63
-- U.S. GAAP operating income margin of
- Adjusted Operating Income margin of
7.8% , Adjusted Operating Income of$324 million ; Adjusted EBITDA of$478 million
"We had a strong start to the year, delivering better than expected growth in the first quarter, underscoring the strength of our product portfolio in an otherwise challenging environment," said Kevin Clark, chairman and chief executive officer. "As the industry continues to mitigate significant supply chain and economic challenges, Aptiv remains well-positioned to navigate, innovate and lead through the current disruptions. The success of our high-growth product lines demonstrates a continued need for our leading portfolio of advanced technology solutions, which are facilitating the acceleration to an electrified, software-defined vehicle, creating exceptional value for our customers. Our relentless focus on execution puts Aptiv in an excellent position to strengthen our competitive position."
First Quarter 2022 Results
For the three months ended March 31, 2022, the Company reported U.S. GAAP revenue of
The Company reported first quarter 2022 U.S. GAAP net income of
First quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was
Interest expense for the first quarter totaled
Tax expense in the first quarter of 2022 was
Net cash flow used by operating activities totaled
Reconciliations of Adjusted Revenue Growth, Adjusted Net Income, Adjusted Net Income Per Share, Adjusted Operating Income, Adjusted EBITDA and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP") are provided in the attached supplemental schedules.
Full Year 2022 Outlook
The Company's full year 2022 financial guidance is as follows:
(in millions, except per share amounts) | Full Year 2022 |
Net sales | |
Adjusted EBITDA | |
Adjusted EBITDA margin | |
Adjusted operating income | |
Adjusted operating income margin | |
Adjusted net income per share (1) | |
Cash flow from operations | |
Capital expenditures | |
Adjusted effective tax rate |
(1) The Company's full year 2022 financial guidance includes approximately |
Conference Call and Webcast
The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing +1.800.239.9838 (U.S.) or +1.323.794.2551 (international) or through a webcast at ir.aptiv.com. The conference ID number is 4320599. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company's website. A replay will be available two hours following the conference call.
Use of Non-GAAP Financial Information
This press release contains information about Aptiv's financial results which are not presented in accordance with GAAP. Specifically, Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing are non-GAAP financial measures. Adjusted Revenue Growth represents the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements and divestitures and other transactions. Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs, asset impairments, gains (losses) on business divestitures and other transactions and deferred compensation related to acquisitions. Other acquisition and portfolio project costs include costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales. Adjusted EBITDA represents net income before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, restructuring and other special items.
Adjusted Net Income represents net income attributable to Aptiv before amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share represents Adjusted Net Income divided by the Adjusted Weighted Average Number of Diluted Shares Outstanding for the period. The Adjusted Weighted Average Number of Diluted Shares Outstanding assumes the application of the if-converted method of share dilution, if not already applied for GAAP purposes of calculating the weighted average number of diluted shares outstanding. Cash Flow Before Financing represents cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions and net proceeds from the divestiture of discontinued operations and other significant businesses.
Effective on January 1, 2022, the Company now excludes amortization expense of intangible assets from the calculation of Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Share. Financial results reported in this release for both the current and historical period have been prepared under this new definition. Outlook information presented above is also calculated under this new definition. The forward-looking non-GAAP measures presented in this release are reconciled under this new definition to their closest GAAP financial measure on pages 16 and 17.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position, results of operations and liquidity. In particular, management believes Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing are useful measures in assessing the Company's ongoing financial performance that, when reconciled to the corresponding GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and that may obscure underlying business results and trends. Management also uses these non-GAAP financial measures for internal planning and forecasting purposes.
Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.
1 Represents global vehicle production weighted to the geographic regions in which the Company generates its revenue ("AWM").
About Aptiv
Aptiv is a global technology company that develops safer, greener and more connected solutions enabling a more sustainable future of mobility. Visit aptiv.com.
Forward-Looking Statements
This press release, as well as other statements made by Aptiv PLC (the "Company"), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events, certain investments and acquisitions and financial performance including the potential impact of the proposed acquisition of Wind River Systems, Inc. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company's strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: global and regional economic conditions, including conditions affecting the credit market; uncertainties posed by the COVID-19 pandemic and the difficulty in predicting its future course and its impact on the global economy and the Company's future operations; uncertainties created by the conflict between Ukraine and Russia, its impacts on the European and global economies and our operations in each country; fluctuations in interest rates and foreign currency exchange rates; the cyclical nature of global automotive sales and production; the potential disruptions in the supply of and changes in the competitive environment for raw material and other components integral to the Company's products, including the current semiconductor supply shortage; the Company's ability to maintain contracts that are critical to its operations; potential changes to beneficial free trade laws and regulations such as the United States-Mexico-Canada Agreement; the ability of the Company to integrate and realize the expected benefits of recent transactions; the ability of the Company to attract, motivate and/or retain key executives; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees or those of its principal customers; and the ability of the Company to attract and retain customers. Additional factors are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.
APTIV PLC | |||
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions, except per share amounts) | |||
Net sales | $ 4,178 | $ 4,023 | |
Operating expenses: | |||
Cost of sales | 3,589 | 3,296 | |
Selling, general and administrative | 274 | 255 | |
Amortization | 37 | 37 | |
Restructuring | 22 | 6 | |
Total operating expenses | 3,922 | 3,594 | |
Operating income | 256 | 429 | |
Interest expense | (43) | (40) | |
Other (expense) income, net | (39) | 1 | |
Income before income taxes and equity loss | 174 | 390 | |
Income tax expense | (21) | (48) | |
Income before equity loss | 153 | 342 | |
Equity loss, net of tax | (63) | (42) | |
Net income | 90 | 300 | |
Net income attributable to noncontrolling interest | 1 | 5 | |
Net income attributable to Aptiv | 89 | 295 | |
Mandatory convertible preferred share dividends | (16) | (16) | |
Net income attributable to ordinary shareholders | $ 73 | $ 279 | |
Diluted net income per share: | |||
Diluted net income per share attributable to ordinary shareholders | $ 0.27 | $ 1.03 | |
Weighted average number of diluted shares outstanding | 271.16 | 271.14 | |
APTIV PLC | |||
March 31, | December 31, | ||
(Unaudited) | |||
(in millions) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 4,877 | $ 3,139 | |
Accounts receivable, net | 3,054 | 2,784 | |
Inventories | 2,312 | 2,014 | |
Other current assets | 531 | 499 | |
Total current assets | 10,774 | 8,436 | |
Long-term assets: | |||
Property, net | 3,288 | 3,294 | |
Operating lease right-of-use assets | 384 | 383 | |
Investments in affiliates | 1,949 | 1,797 | |
Intangible assets, net | 924 | 964 | |
Goodwill | 2,479 | 2,511 | |
Other long-term assets | 606 | 622 | |
Total long-term assets | 9,630 | 9,571 | |
Total assets | $ 20,404 | $ 18,007 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 35 | $ 8 | |
Accounts payable | 2,910 | 2,953 | |
Accrued liabilities | 1,201 | 1,246 | |
Total current liabilities | 4,146 | 4,207 | |
Long-term liabilities: | |||
Long-term debt | 6,503 | 4,059 | |
Pension benefit obligations | 437 | 440 | |
Long-term operating lease liabilities | 303 | 304 | |
Other long-term liabilities | 415 | 436 | |
Total long-term liabilities | 7,658 | 5,239 | |
Total liabilities | 11,804 | 9,446 | |
Commitments and contingencies | |||
Total Aptiv shareholders' equity | 8,396 | 8,347 | |
Noncontrolling interest | 204 | 214 | |
Total shareholders' equity | 8,600 | 8,561 | |
Total liabilities and shareholders' equity | $ 20,404 | $ 18,007 | |
APTIV PLC | |||
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions) | |||
Cash flows from operating activities: | |||
Net income | $ 90 | $ 300 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 191 | 193 | |
Restructuring expense, net of cash paid | 7 | (25) | |
Deferred income taxes | (1) | 3 | |
Loss from equity method investments, net of dividends received | 63 | 42 | |
Other, net | 15 | 42 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (270) | 14 | |
Inventories | (298) | (228) | |
Accounts payable | 1 | 101 | |
Other, net | 4 | (184) | |
Pension contributions | (4) | (6) | |
Net cash (used in) provided by operating activities | (202) | 252 | |
Cash flows from investing activities: | |||
Capital expenditures | (247) | (134) | |
Proceeds from sale of property | 2 | 1 | |
Cost of business acquisitions and other transactions, net of cash acquired | (220) | — | |
Proceeds from sale of technology investments | 2 | — | |
Cost of technology investments | (1) | — | |
Settlement of derivatives | (1) | (1) | |
Net cash used in investing activities | (465) | (134) | |
Cash flows from financing activities: | |||
Decrease in other short and long-term debt, net | (1) | (16) | |
Proceeds from issuance of senior notes, net of issuance costs | 2,472 | — | |
Dividend payments of consolidated affiliates to minority shareholders | (8) | — | |
Distribution of mandatory convertible preferred share cash dividends | (16) | (16) | |
Taxes withheld and paid on employees' restricted share awards | (36) | (45) | |
Net cash provided by (used in) financing activities | 2,411 | (77) | |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (6) | (12) | |
Increase in cash, cash equivalents and restricted cash | 1,738 | 29 | |
Cash, cash equivalents and restricted cash at beginning of the period | 3,139 | 2,853 | |
Cash, cash equivalents and restricted cash at end of the period | $ 4,877 | $ 2,882 | |
APTIV PLC | |||||
1. Segment Summary | |||||
Three Months Ended March 31, | |||||
2022 | 2021 | % | |||
(in millions) | |||||
Net Sales | |||||
Signal and Power Solutions | $ 3,106 | $ 3,022 | |||
Advanced Safety and User Experience | 1,082 | 1,011 | |||
Eliminations and Other (a) | (10) | (10) | |||
Net Sales | $ 4,178 | $ 4,023 | |||
Adjusted Operating Income | |||||
Signal and Power Solutions | $ 308 | $ 406 | (24)% | ||
Advanced Safety and User Experience | 16 | 68 | (76)% | ||
Adjusted Operating Income | $ 324 | $ 474 | |||
(a) Eliminations and Other includes the elimination of inter-segment transactions. |
2. Weighted Average Number of Diluted Shares Outstanding | |||
The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income per share attributable to ordinary shareholders for the three months ended March 31, 2022 and 2021: | |||
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions, except per share amounts) | |||
Weighted average ordinary shares outstanding, basic | 270.79 | 270.31 | |
Dilutive shares related to RSUs | 0.37 | 0.83 | |
Weighted average ordinary shares outstanding, including dilutive shares | 271.16 | 271.14 | |
Net income per share attributable to ordinary shareholders: | |||
Basic | $ 0.27 | $ 1.03 | |
Diluted | $ 0.27 | $ 1.03 | |
APTIV PLC
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In this press release the Company has provided information regarding certain non-GAAP financial measures, including "Adjusted Revenue Growth," "Adjusted Operating Income," "Adjusted EBITDA," "Adjusted Net Income," "Adjusted Net Income Per Share" and "Cash Flow Before Financing." Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules.
Effective on January 1, 2022, the Company now excludes amortization expense of intangible assets from the calculation of Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Share. Financial results reported in this release for both the current and historical period have been prepared under this new definition and are reconciled as such in the tables below.
Adjusted Revenue Growth: Adjusted Revenue Growth is presented as a supplemental measure of the Company's financial performance which management believes is useful to investors in assessing the Company's ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Revenue Growth in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Revenue Growth is defined as the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements and divestitures and other transactions. Not all companies use identical calculations of Adjusted Revenue Growth, therefore this presentation may not be comparable to other similarly titled measures of other companies.
Three Months Ended | |
Reported net sales % change | 4 % |
Less: foreign currency exchange and commodities | — % |
Adjusted revenue growth | 4 % |
Adjusted Operating Income: Adjusted Operating Income is presented as a supplemental measure of the Company's financial performance which management believes is useful to investors in assessing the Company's ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring and other special items. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable to other similarly titled measures of other companies. Operating income margin represents Operating income as a percentage of net sales, and Adjusted Operating Income margin represents Adjusted Operating Income as a percentage of net sales.
Consolidated Adjusted Operating Income | |||||||
Three Months Ended March 31, | |||||||
2022 | 2021 | ||||||
($ in millions) | |||||||
$ | Margin | $ | Margin | ||||
Net income attributable to Aptiv | $ 89 | $ 295 | |||||
Interest expense | 43 | 40 | |||||
Other expense (income), net | 39 | (1) | |||||
Income tax expense | 21 | 48 | |||||
Equity loss, net of tax | 63 | 42 | |||||
Net income attributable to noncontrolling interest | 1 | 5 | |||||
Operating income | $ 256 | 6.1 % | $ 429 | 10.7 % | |||
Amortization | 37 | 37 | |||||
Restructuring | 22 | 6 | |||||
Other acquisition and portfolio project costs | 9 | 2 | |||||
Adjusted operating income | $ 324 | 7.8 % | $ 474 | 11.8 % | |||
Segment Adjusted Operating Income | |||||
(in millions) | |||||
Three Months Ended March 31, 2022 | Signal and Power | Advanced Safety | Total | ||
Operating income (loss) | $ 257 | $ (1) | $ 256 | ||
Amortization | 35 | 2 | 37 | ||
Restructuring | 9 | 13 | 22 | ||
Other acquisition and portfolio project costs | 7 | 2 | 9 | ||
Adjusted operating income | $ 308 | $ 16 | $ 324 | ||
Depreciation and amortization (a) | $ 146 | $ 45 | $ 191 | ||
Three Months Ended March 31, 2021 | Signal and Power | Advanced Safety | Total | ||
Operating income | $ 372 | $ 57 | $ 429 | ||
Amortization | 35 | 2 | 37 | ||
Restructuring | (2) | 8 | 6 | ||
Other acquisition and portfolio project costs | 1 | 1 | 2 | ||
Adjusted operating income | $ 406 | $ 68 | $ 474 | ||
Depreciation and amortization (a) | $ 149 | $ 44 | $ 193 | ||
(a) Includes asset impairments. | |||||
Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company's financial performance which management believes is useful to investors in assessing the Company's ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted EBITDA in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted EBITDA is defined as net income before depreciation and amortization (including asset impairment), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, restructuring and other special items. Not all companies use identical calculations of Adjusted EBITDA, therefore this presentation may not be comparable to other similarly titled measures of other companies.
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions) | |||
Net income attributable to Aptiv | $ 89 | $ 295 | |
Interest expense | 43 | 40 | |
Income tax expense | 21 | 48 | |
Net income attributable to noncontrolling interest | 1 | 5 | |
Depreciation and amortization | 191 | 193 | |
EBITDA | $ 345 | $ 581 | |
Other expense (income), net | 39 | (1) | |
Equity loss, net of tax | 63 | 42 | |
Restructuring | 22 | 6 | |
Other acquisition and portfolio project costs | 9 | 2 | |
Adjusted EBITDA | $ 478 | $ 630 | |
Adjusted Net Income and Adjusted Net Income Per Share: Adjusted Net Income and Adjusted Net Income Per Share, which are non-GAAP measures, are presented as supplemental measures of the Company's financial performance which management believes are useful to investors in assessing the Company's ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net income attributable to Aptiv before amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the Adjusted Weighted Average Number of Diluted Shares Outstanding, as reconciled below, for the period. Not all companies use identical calculations of Adjusted Net Income and Adjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies.
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions, except per share amounts) | |||
Net income attributable to ordinary shareholders | $ 73 | $ 279 | |
Mandatory convertible preferred share dividends | 16 | 16 | |
Net income attributable to Aptiv | 89 | 295 | |
Adjusting items: | |||
Amortization | 37 | 37 | |
Restructuring | 22 | 6 | |
Other acquisition and portfolio project costs | 9 | 2 | |
Loss on change in fair value of publicly traded equity securities | 32 | — | |
Tax impact of adjusting items (a) | (9) | (7) | |
Adjusted net income attributable to Aptiv | $ 180 | $ 333 | |
Adjusted weighted average number of diluted shares outstanding (b) | 283.53 | 283.51 | |
Diluted net income per share attributable to Aptiv | $ 0.27 | $ 1.03 | |
Adjusted net income per share | $ 0.63 | $ 1.17 | |
(a) | Represents the income tax impacts of the adjustments made for amortization, restructuring and other special items by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. |
(b) | In June 2020, the Company issued |
Adjusted Weighted Average Number of Diluted Shares Outstanding: | |||
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions) | |||
Weighted average number of diluted shares outstanding | 271.16 | 271.14 | |
Weighted average MCPS Converted Shares | 12.37 | 12.37 | |
Adjusted weighted average number of diluted shares outstanding | 283.53 | 283.51 | |
Cash Flow Before Financing: Cash Flow Before Financing is presented as a supplemental measure of the Company's liquidity which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions, evaluating its liquidity and determining appropriate capital allocation strategies. Management believes this measure is useful to investors to understand how the Company's core operating activities generate and use cash. Cash Flow Before Financing is defined as cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions, net proceeds from the divestiture of discontinued operations and other significant businesses. Not all companies use identical calculations of Cash Flow Before Financing, therefore this presentation may not be comparable to other similarly titled measures of other companies. The calculation of Cash Flow Before Financing does not reflect cash used to service debt, pay dividends or repurchase shares and, therefore, does not necessarily reflect funds available for investment or other discretionary uses.
Three Months Ended March 31, | |||
2022 | 2021 | ||
(in millions) | |||
Cash flows from operating activities: | |||
Net income | $ 90 | $ 300 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 191 | 193 | |
Restructuring expense, net of cash paid | 7 | (25) | |
Working capital | (567) | (113) | |
Pension contributions | (4) | (6) | |
Other, net | 81 | (97) | |
Net cash (used in) provided by operating activities | (202) | 252 | |
Cash flows from investing activities: | |||
Capital expenditures | (247) | (134) | |
Cost of business acquisitions and other transactions, net of cash acquired | (220) | — | |
Proceeds from sale of technology investments | 2 | — | |
Cost of technology investments | (1) | — | |
Settlement of derivatives | (1) | (1) | |
Other, net | 2 | 1 | |
Net cash used in investing activities | (465) | (134) | |
Adjusting items: | |||
Adjustment for cost of business acquisitions and other transactions, net of cash acquired | 220 | — | |
Cash flow before financing | $ (447) | $ 118 | |
Financial Guidance: The reconciliation of the forward-looking non-GAAP financial measures provided in the Company's financial guidance to the most comparable forward-looking GAAP measure is as follows:
Estimated Full Year | |||
2022 (1) | |||
($ in millions) | |||
Adjusted Operating Income | $ | Margin (2) | |
Net income attributable to Aptiv | $ 1,024 | ||
Interest expense | 133 | ||
Other expense, net | 4 | ||
Income tax expense | 188 | ||
Equity loss, net of tax | 279 | ||
Net income attributable to noncontrolling interest | 10 | ||
Operating income | $ 1,638 | 9.1 % | |
Amortization | 150 | ||
Restructuring | 85 | ||
Other acquisition and portfolio project costs | 17 | ||
Adjusted operating income | $ 1,890 | 10.5 % | |
Adjusted EBITDA | |||
Net income attributable to Aptiv | $ 1,024 | ||
Interest expense | 133 | ||
Income tax expense | 188 | ||
Net income attributable to noncontrolling interest | 10 | ||
Depreciation and amortization | 815 | ||
EBITDA | $ 2,170 | 12.1 % | |
Other expense, net | 4 | ||
Equity loss, net of tax | 279 | ||
Restructuring | 85 | ||
Other acquisition and portfolio project costs | 17 | ||
Adjusted EBITDA | $ 2,555 | 14.2 % | |
(1) | Prepared at the estimated mid-point of the Company's financial guidance range. |
(2) | Represents operating income, Adjusted Operating Income, EBITDA and Adjusted EBITDA, respectively, as a percentage of estimated net sales. |
Estimated Full Year | |
2022 (1) | |
Adjusted Net Income Per Share | ($ and shares in |
Net income attributable to ordinary shareholders | $ 961 |
Mandatory convertible preferred share dividends | 63 |
Net income attributable to Aptiv | 1,024 |
Adjusting items: | |
Amortization | 150 |
Restructuring | 85 |
Other acquisition and portfolio project costs | 17 |
Tax impact of adjusting items | (40) |
Adjusted net income attributable to Aptiv | $ 1,236 |
Adjusted weighted average number of diluted shares outstanding | 284.03 |
Diluted net income per share attributable to Aptiv | $ 3.54 |
Adjusted net income per share | $ 4.35 |
(1) | Prepared at the estimated mid-point of the Company's financial guidance range. |
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SOURCE Aptiv PLC
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