Aptiv Reports Second Quarter 2023 Financial Results
- Aptiv delivered record revenue and adjusted operating earnings in the second quarter, reflecting continued gains across their entire portfolio and solid operating execution.
- The company achieved strong new business awards totaling over $20 billion year-to-date, driven by their smart vehicle architecture solutions, software capabilities, and advanced computing platforms for the next generation of vehicles.
- Year-to-date revenue increased by 22% to $10.0 billion, with growth over the market of 8% based on AWM1 of 12%.
- Adjusted operating income margin for the second quarter was 10.2%, compared to 5.3% in the prior year period, reflecting revenue growth over market of 10% and increased global vehicle production.
- The company generated $535 million of cash from operations in the second quarter and returned $28 million to shareholders through share repurchases.
- Full year 2023 financial guidance includes net sales of $19,950 - $20,250 million, adjusted EBITDA of $2,755 - $2,855 million, adjusted operating income of $2,075 - $2,175 million, adjusted net income per share of $4.60 - $4.90, and cash flow from operations of $2,000 million.
- None.
Record Revenue and Adjusted Operating Earnings
Raising Full Year Outlook
Second Quarter Financial Highlights Include:
--
- Revenue increased
25% adjusted for currency exchange, commodity movements and acquisitions; growth over market of10% based on AWM1 of15%
--
- Excluding special items, diluted earnings per share of
$1.25
--
- Adjusted Operating Income margin of
10.2% , Adjusted Operating Income of ; Adjusted EBITDA margin of$530 million 13.4% ; Adjusted EBITDA of$695 million
-- Generated
-- Returned
Year-to-Date Financial Highlights Include:
--
- Revenue increased
20% adjusted for currency exchange, commodity movements and acquisitions; growth over market of8% based on AWM1 of12%
--
- Excluding special items, diluted earnings per share of
$2.16
--
- Adjusted Operating Income margin of
9.7% , Adjusted Operating Income of ; Adjusted EBITDA margin of$967 million 12.9% ; Adjusted EBITDA of$1,289 million
-- Generated
-- Returned
"Aptiv delivered record revenue and adjusted operating earnings in the second quarter, reflecting continued gains across our entire portfolio and solid operating execution," said Kevin Clark, chairman and chief executive officer. "We continued to achieve strong new business awards, totaling over
1 | Represents global vehicle production weighted to the geographic regions in which the Company generates its revenue ("AWM"). |
Second Quarter 2023 Results
For the three months ended June 30, 2023, the Company reported
The Company reported second quarter 2023 U.S. GAAP net income of
Second quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was
Interest expense for the second quarter totaled
Tax expense in the second quarter of 2023 was
The Company generated net cash flow from operating activities of
Year-to-Date 2023 Results
For the six months ended June 30, 2023, the Company reported
For the 2023 year-to-date period, the Company reported
The Company reported Adjusted Operating Income of
Interest expense for the six months ended June 30, 2023 totaled
Tax expense for the six months ended June 30, 2023 was
The Company generated net cash flow from operating activities of
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
Share Repurchase Program
During the second quarter of 2023, the Company repurchased 0.3 million shares for approximately
Conversion of MCPS into Ordinary Shares
On June 15, 2023, each outstanding share of the Company's
Full Year 2023 Outlook
The Company's full year 2023 financial guidance is as follows:
(in millions, except per share amounts) | Full Year 2023 |
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 2023 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 (
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, acquisitions, 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 (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. 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, the cost of significant technology investments and net proceeds from the divestiture of discontinued operations and other significant businesses.
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.
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. 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; global inflationary pressures; 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
APTIV PLC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in millions, except per share amounts) | |||||||
Net sales | $ 5,200 | $ 4,057 | $ 10,018 | $ 8,235 | |||
Operating expenses: | |||||||
Cost of sales | 4,336 | 3,617 | 8,394 | 7,206 | |||
Selling, general and administrative | 353 | 286 | 695 | 560 | |||
Amortization | 59 | 38 | 118 | 75 | |||
Restructuring | 42 | 19 | 53 | 41 | |||
Total operating expenses | 4,790 | 3,960 | 9,260 | 7,882 | |||
Operating income | 410 | 97 | 758 | 353 | |||
Interest expense | (72) | (56) | (139) | (99) | |||
Other income (expense), net | 11 | (25) | 10 | (64) | |||
Income before income taxes and equity loss | 349 | 16 | 629 | 190 | |||
Income tax expense | (30) | (16) | (64) | (37) | |||
Income before equity loss | 319 | — | 565 | 153 | |||
Equity loss, net of tax | (73) | (72) | (155) | (135) | |||
Net income (loss) | 246 | (72) | 410 | 18 | |||
Net income (loss) attributable to noncontrolling interest | 4 | (27) | 7 | (26) | |||
Net loss attributable to redeemable noncontrolling interest | — | — | (1) | — | |||
Net income (loss) attributable to Aptiv | 242 | (45) | 404 | 44 | |||
Mandatory convertible preferred share dividends | (13) | (16) | (29) | (32) | |||
Net income (loss) attributable to ordinary shareholders | $ 229 | $ (61) | $ 375 | $ 12 | |||
Diluted net income (loss) per share: | |||||||
Diluted net income (loss) per share attributable to ordinary shareholders | $ 0.84 | $ (0.23) | $ 1.38 | $ 0.04 | |||
Weighted average number of diluted shares outstanding | 272.77 | 270.93 | 271.97 | 271.11 |
APTIV PLC CONDENSED CONSOLIDATED BALANCE SHEETS | |||
June 30, | December 31, | ||
(Unaudited) | |||
(in millions) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,302 | $ 1,531 | |
Accounts receivable, net | 3,729 | 3,433 | |
Inventories | 2,380 | 2,340 | |
Other current assets | 661 | 480 | |
Total current assets | 8,072 | 7,784 | |
Long-term assets: | |||
Property, net | 3,592 | 3,495 | |
Operating lease right-of-use assets | 470 | 451 | |
Investments in affiliates | 1,581 | 1,723 | |
Intangible assets, net | 2,487 | 2,585 | |
Goodwill | 5,140 | 5,106 | |
Other long-term assets | 756 | 740 | |
Total long-term assets | 14,026 | 14,100 | |
Total assets | $ 22,098 | $ 21,884 | |
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 37 | $ 31 | |
Accounts payable | 3,028 | 3,150 | |
Accrued liabilities | 1,524 | 1,684 | |
Total current liabilities | 4,589 | 4,865 | |
Long-term liabilities: | |||
Long-term debt | 6,476 | 6,460 | |
Pension benefit obligations | 380 | 354 | |
Long-term operating lease liabilities | 379 | 361 | |
Other long-term liabilities | 752 | 750 | |
Total long-term liabilities | 7,987 | 7,925 | |
Total liabilities | 12,576 | 12,790 | |
Commitments and contingencies | |||
Redeemable noncontrolling interest | 97 | 96 | |
Total Aptiv shareholders' equity | 9,232 | 8,809 | |
Noncontrolling interest | 193 | 189 | |
Total shareholders' equity | 9,425 | 8,998 | |
Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ 22,098 | $ 21,884 |
APTIV PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||
Six Months Ended June 30, | |||
2023 | 2022 | ||
(in millions) | |||
Cash flows from operating activities: | |||
Net income | $ 410 | $ 18 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 440 | 384 | |
Restructuring expense, net of cash paid | — | 10 | |
Deferred income taxes | (17) | (5) | |
Loss from equity method investments, net of dividends received | 160 | 135 | |
Other charges related to | — | 54 | |
Other, net | 79 | 66 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (295) | (244) | |
Inventories | (35) | (358) | |
Accounts payable | (43) | (150) | |
Other, net | (159) | (8) | |
Pension contributions | (14) | (9) | |
Net cash provided by (used in) operating activities | 526 | (107) | |
Cash flows from investing activities: | |||
Capital expenditures | (491) | (454) | |
Proceeds from sale of property | 3 | 3 | |
Proceeds from business divestitures, net of cash sold | (17) | — | |
Cost of business acquisitions and other transactions, net of cash acquired | (83) | (220) | |
Proceeds from sale of technology investments | — | 3 | |
Cost of technology investments | (1) | (41) | |
Settlement of derivatives | (1) | 4 | |
Net cash used in investing activities | (590) | (705) | |
Cash flows from financing activities: | |||
Decrease in other short and long-term debt, net | (10) | (2) | |
Proceeds from issuance of senior notes, net of issuance costs | — | 2,472 | |
Contingent consideration payments | (10) | — | |
Dividend payments of consolidated affiliates to minority shareholders | — | (8) | |
Repurchase of ordinary shares | (98) | — | |
Distribution of mandatory convertible preferred share cash dividends | (32) | (32) | |
Taxes withheld and paid on employees' restricted share awards | (31) | (36) | |
Net cash (used in) provided by financing activities | (181) | 2,394 | |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (8) | (25) | |
(Decrease) increase in cash, cash equivalents and restricted cash | (253) | 1,557 | |
Cash, cash equivalents and restricted cash at beginning of the period | 1,555 | 3,139 | |
Cash, cash equivalents and restricted cash at end of the period | $ 1,302 | $ 4,696 | |
Reconciliation of cash, cash equivalents and restricted cash and cash classified as assets held for sale | |||
June 30, | |||
2023 | 2022 | ||
(in millions) | |||
Cash, cash equivalents and restricted cash | $ 1,302 | $ 4,670 | |
Cash classified as assets held for sale | — | 26 | |
Total cash, cash equivalents and restricted cash | $ 1,302 | $ 4,696 |
APTIV PLC FOOTNOTES (Unaudited) | |||||||||||
1. Segment Summary | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2023 | 2022 | % | 2023 | 2022 | % | ||||||
(in millions) | (in millions) | ||||||||||
Net Sales | |||||||||||
Signal and Power Solutions | $ 3,679 | $ 3,039 | 21 % | $ 7,143 | $ 6,145 | 16 % | |||||
Advanced Safety and User Experience | 1,532 | 1,026 | 49 % | 2,898 | 2,108 | 37 % | |||||
Eliminations and Other (a) | (11) | (8) | (23) | (18) | |||||||
Net Sales | $ 5,200 | $ 4,057 | $ 10,018 | $ 8,235 | |||||||
Adjusted Operating Income (Loss) | |||||||||||
Signal and Power Solutions | $ 392 | $ 243 | 61 % | $ 766 | $ 551 | 39 % | |||||
Advanced Safety and User Experience | 138 | (30) | 560 % | 201 | (14) | 1,536 % | |||||
Adjusted Operating Income | $ 530 | $ 213 | $ 967 | $ 537 |
(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 (loss) per share attributable to ordinary shareholders for the three and six months ended June 30, 2023 and 2022: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in millions, except per share amounts) | |||||||
Weighted average ordinary shares outstanding, basic | 272.69 | 270.93 | 271.86 | 270.86 | |||
Dilutive shares related to RSUs | 0.08 | — | 0.11 | 0.25 | |||
Weighted average ordinary shares outstanding, including dilutive shares | 272.77 | 270.93 | 271.97 | 271.11 | |||
Net income (loss) per share attributable to ordinary shareholders: | |||||||
Basic | $ 0.84 | $ (0.23) | $ 1.38 | $ 0.04 | |||
Diluted | $ 0.84 | $ (0.23) | $ 1.38 | $ 0.04 |
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. |
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 |
Three Months Ended | |
Reported net sales % change | 28 % |
Less: foreign currency exchange and commodities | (1) % |
Less: acquisitions | 4 % |
Adjusted revenue growth | 25 % |
Six Months Ended | |
Reported net sales % change | 22 % |
Less: foreign currency exchange and commodities | (2) % |
Less: acquisitions | 4 % |
Adjusted revenue growth | 20 % |
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 |
Consolidated Adjusted Operating Income | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
($ in millions) | |||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||
Net income (loss) attributable to Aptiv | $ 242 | $ (45) | $ 404 | $ 44 | |||||||||||
Interest expense | 72 | 56 | 139 | 99 | |||||||||||
Other (income) expense, net | (11) | 25 | (10) | 64 | |||||||||||
Income tax expense | 30 | 16 | 64 | 37 | |||||||||||
Equity loss, net of tax | 73 | 72 | 155 | 135 | |||||||||||
Net income (loss) attributable to | 4 | (27) | 7 | (26) | |||||||||||
Net loss attributable to redeemable | — | — | (1) | — | |||||||||||
Operating income | $ 410 | 7.9 % | $ 97 | 2.4 % | $ 758 | 7.6 % | $ 353 | 4.3 % | |||||||
Amortization | 59 | 38 | 118 | 75 | |||||||||||
Restructuring | 42 | 19 | 53 | 41 | |||||||||||
Other acquisition and portfolio project costs | 11 | 2 | 25 | 11 | |||||||||||
Asset impairments | — | 3 | — | 3 | |||||||||||
Other charges related to | — | 54 | — | 54 | |||||||||||
Compensation expense related to acquisitions | 8 | — | 13 | — | |||||||||||
Adjusted operating income | $ 530 | 10.2 % | $ 213 | 5.3 % | $ 967 | 9.7 % | $ 537 | 6.5 % |
Segment Adjusted Operating Income | |||||
(in millions) | |||||
Three Months Ended June 30, 2023 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||
Operating income | $ 340 | $ 70 | $ 410 | ||
Amortization | 36 | 23 | 59 | ||
Restructuring | 8 | 34 | 42 | ||
Other acquisition and portfolio project costs | 8 | 3 | 11 | ||
Compensation expense related to acquisitions | — | 8 | 8 | ||
Adjusted operating income | $ 392 | $ 138 | $ 530 | ||
Depreciation and amortization (a) | $ 155 | $ 69 | $ 224 | ||
Three Months Ended June 30, 2022 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||
Operating income (loss) | $ 136 | $ (39) | $ 97 | ||
Amortization | 37 | 1 | 38 | ||
Restructuring | 13 | 6 | 19 | ||
Other acquisition and portfolio project costs | — | 2 | 2 | ||
Asset impairments | 3 | — | 3 | ||
Other charges related to | 54 | — | 54 | ||
Adjusted operating income (loss) | $ 243 | $ (30) | $ 213 | ||
Depreciation and amortization (a) | $ 148 | $ 45 | $ 193 | ||
Six Months Ended June 30, 2023 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||
Operating income | $ 659 | $ 99 | $ 758 | ||
Amortization | 72 | 46 | 118 | ||
Restructuring | 15 | 38 | 53 | ||
Other acquisition and portfolio project costs | 20 | 5 | 25 | ||
Compensation expense related to acquisitions | — | 13 | 13 | ||
Adjusted operating income | $ 766 | $ 201 | $ 967 | ||
Depreciation and amortization (a) | $ 304 | $ 136 | $ 440 | ||
Six Months Ended June 30, 2022 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||
Operating income (loss) | $ 393 | $ (40) | $ 353 | ||
Amortization | 72 | 3 | 75 | ||
Restructuring | 22 | 19 | 41 | ||
Other acquisition and portfolio project costs | 7 | 4 | 11 | ||
Asset impairments | 3 | — | 3 | ||
Other charges related to | 54 | — | 54 | ||
Adjusted operating income (loss) | $ 551 | $ (14) | $ 537 | ||
Depreciation and amortization (a) | $ 294 | $ 90 | $ 384 |
(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 |
Consolidated Adjusted EBITDA | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in millions) | |||||||
Net income (loss) attributable to Aptiv | $ 242 | $ (45) | $ 404 | $ 44 | |||
Interest expense | 72 | 56 | 139 | 99 | |||
Income tax expense | 30 | 16 | 64 | 37 | |||
Net income (loss) attributable to noncontrolling interest | 4 | (27) | 7 | (26) | |||
Net loss attributable to redeemable noncontrolling interest | — | — | (1) | — | |||
Depreciation and amortization | 224 | 193 | 440 | 384 | |||
EBITDA | $ 572 | $ 193 | $ 1,053 | $ 538 | |||
Other (income) expense, net | (11) | 25 | (10) | 64 | |||
Equity loss, net of tax | 73 | 72 | 155 | 135 | |||
Restructuring | 42 | 19 | 53 | 41 | |||
Other acquisition and portfolio project costs | 11 | 2 | 25 | 11 | |||
Other charges related to | — | 54 | — | 54 | |||
Compensation expense related to acquisitions | 8 | — | 13 | — | |||
Adjusted EBITDA | $ 695 | $ 365 | $ 1,289 | $ 843 |
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 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in millions, except per share amounts) | |||||||
Net income (loss) attributable to ordinary shareholders | $ 229 | $ (61) | $ 375 | $ 12 | |||
Mandatory convertible preferred share dividends | 13 | 16 | 29 | 32 | |||
Net income (loss) attributable to Aptiv | 242 | (45) | 404 | 44 | |||
Adjusting items: | |||||||
Amortization | 59 | 38 | 118 | 75 | |||
Restructuring | 42 | 19 | 53 | 41 | |||
Other acquisition and portfolio project costs | 11 | 2 | 25 | 11 | |||
Asset impairments | — | 3 | — | 3 | |||
Other charges related to | — | 29 | — | 29 | |||
Compensation expense related to acquisitions | 8 | — | 13 | — | |||
Costs associated with acquisitions and other transactions | 4 | 2 | 4 | 2 | |||
Impairment of equity investments without readily | — | — | 18 | — | |||
Loss on change in fair value of publicly traded equity | 3 | 17 | 6 | 49 | |||
Tax impact of adjusting items (b) | (13) | (3) | (27) | (12) | |||
Adjusted net income attributable to Aptiv | $ 356 | $ 62 | $ 614 | $ 242 | |||
Adjusted weighted average number of diluted shares outstanding (c) | 283.78 | 283.30 | 283.65 | 283.48 | |||
Diluted net income (loss) per share attributable to ordinary | $ 0.84 | $ (0.23) | $ 1.38 | $ 0.04 | |||
Adjusted net income per share | $ 1.25 | $ 0.22 | $ 2.16 | $ 0.85 |
(a) | Adjustment is reduced by the portion of charges attributable to noncontrolling interest for our former majority owned Russian subsidiary. Our interest in this subsidiary was sold during the second quarter of 2023 and the subsidiary was deconsolidated. |
(b) | 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. |
(c) | In June 2020, the Company issued |
Adjusted Weighted Average Number of Diluted Shares Outstanding: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in millions) | |||||||
Weighted average number of diluted shares outstanding | 272.77 | 270.93 | 271.97 | 271.11 | |||
Weighted average MCPS Converted Shares | 11.01 | 12.37 | 11.68 | 12.37 | |||
Adjusted weighted average number of diluted shares | 283.78 | 283.30 | 283.65 | 283.48 |
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, the cost of significant technology investments and 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 June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(in millions) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ 246 | $ (72) | $ 410 | $ 18 | |||
Adjustments to reconcile net income to net cash provided by | |||||||
Depreciation and amortization | 224 | 193 | 440 | 384 | |||
Restructuring expense, net of cash paid | 24 | 3 | — | 10 | |||
Working capital | (25) | (185) | (373) | (752) | |||
Pension contributions | (6) | (5) | (14) | (9) | |||
Other, net | 72 | 161 | 63 | 242 | |||
Net cash provided by (used in) operating activities | 535 | 95 | 526 | (107) | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (222) | (207) | (491) | (454) | |||
Proceeds from business divestitures, net of cash sold | (17) | — | (17) | — | |||
Cost of business acquisitions and other transactions, net of | (45) | — | (83) | (220) | |||
Proceeds from sale of technology investments | — | 1 | — | 3 | |||
Cost of technology investments | — | (40) | (1) | (41) | |||
Settlement of derivatives | — | 5 | (1) | 4 | |||
Other, net | 3 | 1 | 3 | 3 | |||
Net cash used in investing activities | (281) | (240) | (590) | (705) | |||
Adjusting items: | |||||||
Adjustment for cost of business acquisitions and other | 45 | — | 83 | 220 | |||
Adjustment for cost of significant technology investments | — | 40 | — | 40 | |||
Cash flow before financing | $ 299 | $ (105) | $ 19 | $ (552) |
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 | |||
2023 (a) | |||
($ in millions) | |||
Adjusted Operating Income | $ | Margin (b) | |
Net income attributable to Aptiv | $ 935 | ||
Interest expense | 285 | ||
Other income, net | (40) | ||
Income tax expense | 180 | ||
Equity loss, net of tax | 300 | ||
Net income attributable to noncontrolling interest (c) | 20 | ||
Operating income | $ 1,680 | 8.4 % | |
Amortization | 240 | ||
Restructuring | 130 | ||
Other acquisition and portfolio project costs | 45 | ||
Compensation expense related to acquisitions | 30 | ||
Adjusted operating income | $ 2,125 | 10.6 % | |
Adjusted EBITDA | |||
Net income attributable to Aptiv | $ 935 | ||
Interest expense | 285 | ||
Income tax expense | 180 | ||
Net income attributable to noncontrolling interest (c) | 20 | ||
Depreciation and amortization | 920 | ||
EBITDA | $ 2,340 | 11.6 % | |
Other income, net | (40) | ||
Equity loss, net of tax | 300 | ||
Restructuring | 130 | ||
Other acquisition and portfolio project costs | 45 | ||
Compensation expense related to acquisitions | 30 | ||
Adjusted EBITDA | $ 2,805 | 14.0 % |
(a) | Prepared at the estimated mid-point of the Company's financial guidance range. |
(b) | Represents operating income, Adjusted Operating Income, EBITDA and Adjusted EBITDA, respectively, as a percentage of estimated net sales. |
(c) | Includes portion attributable to redeemable noncontrolling interest. |
Estimated Full Year | ||
2023 (a) | ||
Adjusted Net Income Per Share | ($ and shares in | |
Net income attributable to ordinary shareholders | $ 905 | |
Mandatory convertible preferred share dividends | 30 | |
Net income attributable to Aptiv | 935 | |
Adjusting items: | ||
Amortization | 240 | |
Restructuring | 130 | |
Other acquisition and portfolio project costs | 45 | |
Compensation expense related to acquisitions | 30 | |
Costs associated with acquisitions and other transactions | 5 | |
Loss on change in fair value of publicly traded equity securities | 5 | |
Loss on change in fair value of equity investments without readily determinable fair value | 20 | |
Tax impact of adjusting items | (60) | |
Adjusted net income attributable to Aptiv | $ 1,350 | |
Adjusted weighted average number of diluted shares outstanding | 284.00 | |
Diluted net income per share attributable to ordinary shareholders | $ 3.25 | |
Adjusted net income per share | $ 4.75 |
(a) | Prepared at the estimated mid-point of the Company's financial guidance range. |
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SOURCE Aptiv PLC
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