AAM Reports Second Quarter 2024 Financial Results
American Axle & Manufacturing Holdings (NYSE: AXL) reported solid Q2 2024 financial results. Sales increased to $1.63 billion from $1.57 billion in Q2 2023, driven by favorable volume and mix. Net income rose to $18.2 million ($0.15 per share), up from $8.0 million ($0.07 per share) in Q2 2023. Adjusted EBITDA improved to $208.4 million (12.8% of sales) compared to $191.6 million (12.2% of sales) in Q2 2023.
AAM updated its 2024 financial outlook, targeting sales of $6.1-$6.3 billion and Adjusted EBITDA of $705-$755 million. The company also aims for Adjusted free cash flow of $200-$240 million, assuming capital spending of approximately 4.0% of sales.
American Axle & Manufacturing Holdings (NYSE: AXL) ha riportato solidi risultati finanziari per il secondo trimestre del 2024. Le vendite sono aumentate a $1,63 miliardi rispetto a $1,57 miliardi nel secondo trimestre del 2023, grazie a un volume e a una combinazione favorevoli. Il reddito netto è salito a $18,2 milioni ($0,15 per azione), in aumento rispetto a $8,0 milioni ($0,07 per azione) nel secondo trimestre del 2023. Il EBITDA rettificato è migliorato a $208,4 milioni (12,8% delle vendite) rispetto a $191,6 milioni (12,2% delle vendite) nel secondo trimestre del 2023.
AAM ha aggiornato le sue previsioni finanziarie per il 2024, puntando a vendite tra $6,1 e $6,3 miliardi e a un EBITDA rettificato tra $705 e $755 milioni. L'azienda punta anche a un flusso di cassa libero rettificato di $200-$240 milioni, assumendo una spesa in conto capitale di circa il 4,0% delle vendite.
American Axle & Manufacturing Holdings (NYSE: AXL) informó resultados financieros sólidos para el segundo trimestre de 2024. Las ventas aumentaron a $1.63 mil millones desde $1.57 mil millones en el segundo trimestre de 2023, impulsadas por un volumen y una mezcla favorables. El ingreso neto creció a $18.2 millones ($0.15 por acción), en comparación con $8.0 millones ($0.07 por acción) en el segundo trimestre de 2023. El EBITDA ajustado mejoró a $208.4 millones (12.8% de las ventas) en comparación con $191.6 millones (12.2% de las ventas) en el segundo trimestre de 2023.
AAM actualizó su proyección financiera para 2024, con un objetivo de ventas de entre $6.1 y $6.3 mil millones y un EBITDA ajustado de entre $705 y $755 millones. La compañía también tiene como objetivo un flujo de efectivo libre ajustado de $200 a $240 millones, asumiendo un gasto de capital de aproximadamente el 4.0% de las ventas.
미국 악슬 & 제조 홀딩스(NYSE: AXL)는 2024년 2분기 재무 결과를 발표했습니다. 판매는 16억 3천만 달러로 증가했습니다, 이는 2023년 2분기의 15억 7천만 달러에서 증가한 것입니다. 이는 유리한 물량 및 조합에 의해 촉진되었습니다. 순이익은 1,820만 달러로 증가했습니다 ($0.15 주당), 이는 2023년 2분기의 800만 달러($0.07 주당)에서 증가한 것입니다. 조정된 EBITDA는 2억 840만 달러 개선되었습니다 (매출의 12.8%)이는 2023년 2분기의 1억 9,160만 달러(매출의 12.2%)와 비교됩니다.
AAM은 2024년 재무 전망을 업데이트하면서 61억 달러에서 63억 달러 사이의 매출과 7억 0백만 달러에서 7억 5천 5백만 달러 사이의 조정된 EBITDA를 목표로 하고 있습니다. 또한, 자본 지출이 매출의 약 4.0%로 가정하는 경우, 2억 달러에서 2억 4천만 달러의 조정된 자유 현금 흐름을 목표로 하고 있습니다.
American Axle & Manufacturing Holdings (NYSE: AXL) a annoncé des résultats financiers solides pour le deuxième trimestre de 2024. Les ventes ont augmenté à 1,63 milliard de dollars contre 1,57 milliard de dollars au deuxième trimestre 2023, soutenues par un volume et un mix favorables. Le bénéfice net a augmenté à 18,2 millions de dollars (0,15 $ par action), contre 8,0 millions de dollars (0,07 $ par action) au deuxième trimestre 2023. L'EBITDA ajusté s'est amélioré à 208,4 millions de dollars (12,8 % des ventes) par rapport à 191,6 millions de dollars (12,2 % des ventes) au deuxième trimestre 2023.
AAM a mis à jour ses prévisions financières pour 2024, visant des ventes entre 6,1 et 6,3 milliards de dollars et un EBITDA ajusté entre 705 et 755 millions de dollars. L'entreprise vise également un flux de trésorerie libre ajusté de 200 à 240 millions de dollars, en supposant des dépenses d'investissement d'environ 4,0 % des ventes.
American Axle & Manufacturing Holdings (NYSE: AXL) hat solide Finanzzahlen für das zweite Quartal 2024 gemeldet. Der Umsatz stieg auf 1,63 Milliarden Dollar von 1,57 Milliarden Dollar im zweiten Quartal 2023, was auf ein günstiges Volumen und eine günstige Mischung zurückzuführen ist. Der Nettogewinn stieg auf 18,2 Millionen Dollar (0,15 Dollar pro Aktie), gegenüber 8,0 Millionen Dollar (0,07 Dollar pro Aktie) im zweiten Quartal 2023. Das bereinigte EBITDA verbesserte sich auf 208,4 Millionen Dollar (12,8 % des Umsatzes) im Vergleich zu 191,6 Millionen Dollar (12,2 % des Umsatzes) im zweiten Quartal 2023.
AAM hat seine Finanzprognose für 2024 aktualisiert und peilt einen Umsatz von 6,1 bis 6,3 Milliarden Dollar sowie ein bereinigtes EBITDA von 705 bis 755 Millionen Dollar an. Das Unternehmen strebt auch einen bereinigten freien Cashflow von 200 bis 240 Millionen Dollar an, wobei von Investitionen in Höhe von etwa 4,0 % des Umsatzes ausgegangen wird.
- Sales increased by 3.8% year-over-year to $1.63 billion
- Net income more than doubled to $18.2 million compared to Q2 2023
- Adjusted EBITDA improved to $208.4 million, representing 12.8% of sales
- Adjusted earnings per share increased to $0.19 from $0.12 in Q2 2023
- Net cash provided by operating activities rose to $142.8 million
- Company raised its 2024 Adjusted EBITDA target range to $705-$755 million
- Narrowed 2024 sales target range to $6.1-$6.3 billion from $6.05-$6.35 billion previously
Insights
AAM's Q2 2024 results demonstrate solid financial performance. Sales increased to
The company's adjusted earnings per share of
AAM's Q2 results reflect resilience in the automotive supply chain. The company's focus on "quality, technology leadership and operational excellence" is paying off, evidenced by improved margins and cash flow. The narrowed sales forecast suggests cautious optimism about market conditions, while the raised EBITDA target indicates enhanced operational efficiency.
The mention of maintaining a "comprehensive product portfolio to support current and future powertrain solutions" is crucial. It signals AAM's strategic positioning for the industry's transition towards electrification while still capitalizing on traditional powertrain demand. This balanced approach could provide stability during the automotive industry's technological shift. The projected North American light vehicle production of 15.8 million units for 2024 also suggests a stable market environment, which bodes well for AAM's near-term prospects.
AAM Delivers Another Solid Quarter
Second Quarter 2024 Results
- Sales of
$1.63 billion - Net income of
$18.2 million 1.1% of sales - Adjusted EBITDA of
$208.4 million 12.8% of sales - Diluted earnings per share of
$0.15 $0.19 - Net cash provided by operating activities of
$142.8 million $97.9 million
"AAM's solid second quarter results reflect positive contributions from volume and mix and continued operational performance," said AAM's Chairman and Chief Executive Officer, David C. Dauch. "Looking ahead, AAM will maintain and develop a comprehensive product portfolio to support current and future powertrain solutions while focusing on quality, technology leadership, and operational excellence."
AAM's sales in the second quarter of 2024 were
AAM's net income in the second quarter of 2024 was
Adjusted earnings per share in the second quarter of 2024 was
In the second quarter of 2024, Adjusted EBITDA was
AAM's net cash provided by operating activities for the second quarter of 2024 was
AAM's Adjusted free cash flow for the second quarter of 2024 was
AAM's 2024 Updated Financial Outlook
AAM's full year 2024 financial targets are as follows:
- AAM is targeting sales in the range of
$6.1 $6.3 billion $6.05 $6.35 billion - AAM is targeting Adjusted EBITDA in the range of
$705 $755 million $685 $750 million - AAM is targeting Adjusted free cash flow in the range of
$200 $240 million 4.0% of sales.
These targets are based on the following assumptions for 2024:
- North American light vehicle production of approximately 15.8 million units.
- AAM's production estimates of key programs that we support.
- Current customer launch schedules and operating environment.
Second Quarter 2024 Conference Call Information
A conference call to review AAM's second quarter results is scheduled today at 10:00 a.m. ET. Interested participants may listen to the live conference call by logging onto AAM's investor web site at http://investor.aam.com or calling (877) 883-0383 from
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in
Certain of the forward-looking financial measures included in this earnings release are provided on a non-GAAP basis. A reconciliation of non-GAAP forward-looking financial measures to the most directly comparable forward-looking financial measures calculated and presented in accordance with GAAP has been provided. The amounts in these reconciliations are based on our current estimates and actual results may differ materially from these forward-looking estimates for many reasons, including potential event driven transactional and other non-core operating items and their related effects in any future period, the magnitude of which may be significant.
Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of AAM's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures as presented by AAM may not be comparable to similarly titled measures reported by other companies.
Definition of Non-GAAP Financial Measures
AAM defines Adjusted earnings per share to be diluted earnings per share excluding the impact of impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on equity securities, pension curtailment and settlement charges and non-recurring items, including the tax effect thereon.
AAM defines EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on equity securities, pension curtailment and settlement charges and non-recurring items.
AAM defines free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs, and cash payments related to the Malvern fire, including payments for capital expenditures, net of recoveries.
Company Description
As a leading global Tier 1 Automotive and Mobility Supplier, AAM (NYSE: AXL) designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in
Forward-Looking Statements
In this earnings release, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: global economic conditions, including the impact of inflation, recession or recessionary concerns, or slower growth in the markets in which we operate; reduced purchases of our products by General Motors Company (GM), Stellantis N.V. (Stellantis), Ford Motor Company (Ford) or other customers; our ability to respond to changes in technology, increased competition or pricing pressures; our ability to develop and produce new products that reflect market demand; lower-than-anticipated market acceptance of new or existing products; our ability to attract new customers and programs for new products; reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM, Stellantis and Ford); risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as
For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@aam.com
Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions, except per share data) | |||||||
Net sales | $ 1,632.3 | $ 1,570.7 | $ 3,239.2 | $ 3,064.6 | |||
Cost of goods sold | 1,415.0 | 1,392.5 | 2,823.4 | 2,725.8 | |||
Gross profit | 217.3 | 178.2 | 415.8 | 338.8 | |||
Selling, general and administrative expenses | 105.2 | 91.1 | 203.5 | 189.4 | |||
Amortization of intangible assets | 20.6 | 21.4 | 41.3 | 42.8 | |||
Restructuring and acquisition-related costs | 5.0 | 7.9 | 7.5 | 12.7 | |||
Operating income | 86.5 | 57.8 | 163.5 | 93.9 | |||
Interest expense | (47.9) | (50.2) | (96.9) | (100.7) | |||
Interest income | 6.1 | 5.9 | 14.4 | 11.8 | |||
Other income (expense): | |||||||
Debt refinancing and redemption costs | (0.3) | — | (0.3) | — | |||
Gain (loss) on equity securities | (0.2) | 0.3 | (0.1) | — | |||
Other income (expense), net | (8.8) | (0.5) | (8.8) | 3.2 | |||
Income before income taxes | 35.4 | 13.3 | 71.8 | 8.2 | |||
Income tax expense | 17.2 | 5.3 | 33.1 | 5.3 | |||
Net income | $ 18.2 | $ 8.0 | $ 38.7 | $ 2.9 | |||
Diluted earnings per share | $ 0.15 | $ 0.07 | $ 0.32 | $ 0.02 | |||
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. | |||
June 30, 2024 | December 31, 2023 | ||
(Unaudited) | |||
ASSETS | (in millions) | ||
Current assets | |||
Cash and cash equivalents | $ 519.9 | $ 519.9 | |
Accounts receivable, net | 935.4 | 818.5 | |
Inventories, net | 469.2 | 482.9 | |
Prepaid expenses and other | 180.9 | 185.3 | |
Total current assets | 2,105.4 | 2,006.6 | |
Property, plant and equipment, net | 1,681.5 | 1,760.9 | |
Deferred income taxes | 162.0 | 169.4 | |
Goodwill | 181.2 | 182.1 | |
Other intangible assets, net | 491.8 | 532.8 | |
GM postretirement cost sharing asset | 111.5 | 111.9 | |
Operating lease right-of-use assets | 112.0 | 115.6 | |
Other assets and deferred charges | 491.3 | 477.0 | |
Total assets | $ 5,336.7 | $ 5,356.3 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Current portion of long-term debt | $ 27.2 | $ 17.0 | |
Accounts payable | 837.6 | 773.9 | |
Accrued compensation and benefits | 189.9 | 200.1 | |
Deferred revenue | 13.5 | 16.6 | |
Current portion of operating lease liabilities | 23.2 | 21.9 | |
Accrued expenses and other | 163.7 | 172.1 | |
Total current liabilities | 1,255.1 | 1,201.6 | |
Long-term debt, net | 2,694.8 | 2,751.9 | |
Deferred revenue | 67.2 | 70.4 | |
Deferred income taxes | 14.8 | 16.5 | |
Long-term portion of operating lease liabilities | 91.0 | 95.5 | |
Postretirement benefits and other long-term liabilities | 604.2 | 615.5 | |
Total liabilities | 4,727.1 | 4,751.4 | |
Total AAM stockholders' equity | 609.6 | 604.9 | |
Total liabilities and stockholders' equity | $ 5,336.7 | $ 5,356.3 | |
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | |||||||
Operating activities | |||||||
Net income | $ 18.2 | $ 8.0 | $ 38.7 | $ 2.9 | |||
Adjustments to reconcile net income to net cash provided by | |||||||
Depreciation and amortization | 119.6 | 120.5 | 237.4 | 245.4 | |||
Other | 5.0 | 4.3 | (115.5) | (83.4) | |||
Net cash provided by operating activities | 142.8 | 132.8 | 160.6 | 164.9 | |||
Investing activities | |||||||
Purchases of property, plant and equipment | (48.8) | (44.1) | (96.8) | (90.7) | |||
Proceeds from sale of property, plant and equipment | 0.2 | — | 3.3 | 0.4 | |||
Acquisition of business, net of cash acquired | (0.7) | (0.7) | (1.3) | (1.3) | |||
Proceeds from government grants | 2.0 | — | 2.0 | — | |||
Other | 0.6 | (2.6) | (2.1) | 13.7 | |||
Net cash used in investing activities | (46.7) | (47.4) | (94.9) | (77.9) | |||
Financing activities | |||||||
Net debt activity | (39.3) | (34.5) | (49.4) | (65.4) | |||
Other | (3.2) | (3.8) | (9.1) | (22.0) | |||
Net cash used in financing activities | (42.5) | (38.3) | (58.5) | (87.4) | |||
Effect of exchange rate changes on cash | (3.5) | (1.7) | (7.2) | — | |||
Net increase (decrease) in cash and cash equivalents | 50.1 | 45.4 | — | (0.4) | |||
Cash and cash equivalents at beginning of period | 469.8 | 465.7 | 519.9 | 511.5 | |||
Cash and cash equivalents at end of period | $ 519.9 | $ 511.1 | $ 519.9 | $ 511.1 | |||
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. | |||||||
The supplemental data presented below is a reconciliation of certain financial measures which is intended | |||||||
Earnings before interest expense, income taxes and depreciation and amortization (EBITDA) and Adjusted EBITDA(a) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | |||||||
Net income | $ 18.2 | $ 8.0 | $ 38.7 | $ 2.9 | |||
Interest expense | 47.9 | 50.2 | 96.9 | 100.7 | |||
Income tax expense | 17.2 | 5.3 | 33.1 | 5.3 | |||
Depreciation and amortization | 119.6 | 120.5 | 237.4 | 245.4 | |||
EBITDA | 202.9 | 184.0 | 406.1 | 354.3 | |||
Restructuring and acquisition-related costs | 5.0 | 7.9 | 7.5 | 12.7 | |||
Debt refinancing and redemption costs | 0.3 | — | 0.3 | — | |||
Loss (gain) on equity securities | 0.2 | (0.3) | 0.1 | — | |||
Adjusted EBITDA | $ 208.4 | $ 191.6 | $ 414.0 | $ 367.0 | |||
Adjusted earnings per share(b) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Diluted earnings per share | $ 0.15 | $ 0.07 | $ 0.32 | $ 0.02 | |||
Restructuring and acquisition-related costs | 0.04 | 0.07 | 0.06 | 0.11 | |||
Debt refinancing and redemption costs | — | — | — | — | |||
Loss (gain) on equity securities | — | — | — | — | |||
Tax effect of adjustments | — | (0.02) | — | (0.02) | |||
Adjusted earnings per share | $ 0.19 | $ 0.12 | $ 0.38 | $ 0.11 | |||
Adjusted earnings per share are based on weighted average diluted shares outstanding of 122.0 million and 120.6 million for the three months ended June 30, 2024 and 2023 respectively, and 121.5 million and 120.3 million for the six months ended June 30, 2024 and 2023 respectively. |
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. | |||||||
The supplemental data presented below is a reconciliation of certain financial measures which is intended | |||||||
Free cash flow and Adjusted free cash flow(c) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | |||||||
Net cash provided by operating activities | $ 142.8 | $ 132.8 | $ 160.6 | $ 164.9 | |||
Less: Capital expenditures net of proceeds from the sale of | (46.6) | (44.1) | (91.5) | (90.3) | |||
Free cash flow | $ 96.2 | $ 88.7 | $ 69.1 | $ 74.6 | |||
Cash payments for restructuring and acquisition-related costs | 1.7 | 7.1 | 7.4 | 11.1 | |||
(Insurance proceeds) related to Malvern fire, net | — | — | — | (7.0) | |||
Adjusted free cash flow | $ 97.9 | $ 95.8 | $ 76.5 | $ 78.7 | |||
Segment Financial Information | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | |||||||
Segment Sales | |||||||
Driveline | $ 1,124.5 | $ 1,086.5 | $ 2,230.9 | $ 2,100.3 | |||
Metal Forming | 653.1 | 634.2 | 1,297.2 | 1,253.3 | |||
Total Sales | 1,777.6 | 1,720.7 | 3,528.1 | 3,353.6 | |||
Intersegment Sales | (145.3) | (150.0) | (288.9) | (289.0) | |||
Net External Sales | $ 1,632.3 | $ 1,570.7 | $ 3,239.2 | $ 3,064.6 | |||
Segment Adjusted EBITDA(a) | |||||||
Driveline | $ 151.8 | $ 152.1 | $ 309.2 | $ 266.2 | |||
Metal Forming | 56.6 | 39.5 | 104.8 | 100.8 | |||
Total Segment Adjusted EBITDA | $ 208.4 | $ 191.6 | $ 414.0 | $ 367.0 | |||
Full Year 2024 Financial Outlook | |||
Adjusted EBITDA | |||
Low End | High End | ||
(in millions) | |||
Net income | $ 5 | $ 30 | |
Interest expense | 190 | 190 | |
Income tax expense | 10 | 35 | |
Depreciation and amortization | 480 | 480 | |
Full year 2024 targeted EBITDA | 685 | 735 | |
Restructuring and acquisition-related costs | 20 | 20 | |
Full year 2024 targeted Adjusted EBITDA | $ 705 | $ 755 | |
Adjusted Free Cash Flow | |||
Low End | High End | ||
(in millions) | |||
Net cash provided by operating activities | $ 430 | $ 470 | |
Capital expenditures net of proceeds from the sale of property, | (250) | (250) | |
Full year 2024 targeted Free Cash Flow | 180 | 220 | |
Cash payments for restructuring and acquisition-related costs | 20 | 20 | |
Full year 2024 targeted Adjusted Free Cash Flow | $ 200 | $ 240 | |
(a) | We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on equity securities, pension curtailment and settlement charges and non-recurring items. We believe that EBITDA and Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and the banking institutions routinely use EBITDA and Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers. We also use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. EBITDA and Adjusted EBITDA are also key metrics used in our calculation of incentive compensation. EBITDA and Adjusted EBITDA should not be construed as income from operations, net income or cash flow from operating activities as determined under GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. |
(b) | We define Adjusted earnings per share to be diluted earnings per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on equity securities, pension curtailment and settlement charges and non-recurring items, including the tax effect thereon. We believe Adjusted earnings per share is a meaningful measure as it is commonly utilized by management and investors in assessing ongoing financial performance that provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of core operating performance and which may obscure underlying business results and trends. Other companies may calculate Adjusted earnings per share differently. |
(c) | We define free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs and cash payments related to the Malvern fire, including payments for capital expenditures, net of recoveries. We believe free cash flow and Adjusted free cash flow are meaningful measures as they are commonly utilized by management and investors to assess our ability to generate cash flow from business operations to repay debt and return capital to our stockholders. Free cash flow and Adjusted free cash flow are also key metrics used in our calculation of incentive compensation. Other companies may calculate free cash flow and Adjusted free cash flow differently. |
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SOURCE American Axle & Manufacturing Holdings, Inc.
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