AAM Reports Fourth Quarter and Full Year 2013 Financial Results
Achieves record quarterly Non-GM sales of $280 million, up over 37% on a year-
over-year basis
Detroit, Michigan, February 7, 2014-- American Axle & Manufacturing Holdings,
Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial
results for the fourth quarter and full year 2013.
Fourth Quarter 2013 Results
* Fourth quarter 2013 sales of $831.3 million, up approximately 13% on a year-
over-year basis
* Non-GM sales grew over 37.2% on a year-over-year basis to $280.1 million
* Gross profit of $126.9 million, or 15.3% of sales
* Net income of $29.8 million, or $0.39 per share
* AAM's quarterly results reflect the impact of $25.6 million (or $0.32 per
share) of debt refinancing and redemption costs
* Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization, excluding the impact of debt refinancing and redemption costs)
of $113.7 million, or 13.7% of sales
* Free cash flow (net cash provided by operating activities less capital
expenditures net of proceeds from the sale of property, plant and equipment
and the sale-leaseback of equipment) of $50.9 million
Full Year 2013 Results
* Full year 2013 sales of $3.21 billion, up approximately 9.4% on a year-over-
year basis
* Non-GM sales grew 16.9% on a year-over-year basis to $926.7 million
* Gross profit of $478.7 million, or 14.9% of sales
* Net income of $94.5 million, or $1.23 per share
* AAM's full year results reflect the impact of $36.8 million (or $0.46 per
share) of debt refinancing and redemption costs and $5.8 million (or $0.07
per share) of other special items
* Adjusted EBITDA of $421.8 million, or 13.2% of sales
* Free cash flow of $4.3 million
AAM's net income in the fourth quarter of 2013 was $29.8 million, or $0.39 per
share. In the fourth quarter of 2013, AAM's results reflect the impact of $25.6
million (or $0.32 per share) of debt refinancing and redemption costs. This
compares to net income of $319.9 million, or $4.21 per share, in the fourth
quarter of 2012 which includes the favorable impact of a $337.5 million benefit
(or $4.44 per share) related to the reversal of our valuation allowance against
our net federal deferred tax assets for entities in the United States.
In the fourth quarter of 2012, AAM's results reflect the impact of $9.7 million
(or $0.13 per share) of debt refinancing and redemption costs and $6.2 million
(or $0.08 per share) of restructuring costs related to the closure of our
Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.
For the full year 2013, AAM's net income was of $94.5 million, or $1.23 per
share. This compares to net income of $367.7 million, or $4.87 per share in
2012.
On a full year basis in 2013, AAM incurred $36.8 million (or $0.46 per share) of
debt refinancing and redemption costs and $5.8 million (or $0.07 per share) of
other special items.
On a full year basis in 2012, AAM incurred $19.8 million (or $0.26 per share) of
debt refinancing and redemption costs and $40.6 million (or $0.54 per share) of
restructuring costs related to the closure of our Detroit Manufacturing Complex
and Cheektowaga Manufacturing Facility.
"In 2013, AAM's financial performance was highlighted by sales growth that
outpaced the industry and profitability that solidly rebounded versus our 2012
performance. Â AAM's foundational commitments to quality and operational
excellence paved the way for these improved results, while our focus on
technology leadership resulted in the expansion and diversification of our
customer base and product portfolio on a global basis," said AAM's Chairman,
President and Chief Executive Officer, David C. Dauch. Â "As we look to the
future, we remain focused on optimizing our profitable growth opportunities
through our global expansion, improving the diversification of our business, and
achieving solid financial performance by executing our aligned business
strategy. We are committed to achieving excellence in everything we do with the
ultimate goal of making AAM a leader in every key market that we serve."
Net sales in the fourth quarter of 2013 increased approximately 12.8% to $831.3
million as compared to $736.7 million in the fourth quarter of 2012. Â Non-GM
sales grew 37.2% on a year-over-year basis to $280.1 million in the fourth
quarter of 2013 as compared to $204.1 million in the fourth quarter of 2012.
AAM's content-per-vehicle is measured by the dollar value of its product sales
supporting our customers' North American light truck and SUV programs. In the
fourth quarter of 2013, AAM's content-per-vehicle was $1,579 as compared to
$1,514 in the fourth quarter of 2012. Â For the full year 2013, AAM's content-
per-vehicle was $1,550 as compared to $1,473 in 2012.
Net sales for the full year 2013 increased by 9.4% to $3.21 billion as compared
to $2.93 billion in 2012. Â Non-GM sales grew 16.9% on a year-over-year basis to
$926.7 million in 2013 as compared to $792.6 million in 2012.
AAM's gross profit in the fourth quarter of 2013 was $126.9 million, or 15.3% of
sales. Â For the full year 2013, AAM's gross profit was $478.7 million, or 14.9%
of sales.
In the fourth quarter of 2013, AAM's operating income was $66.4 million, or
8.0% of sales. Â For the full year 2013, AAM's operating income was $240.3
million, or 7.5% of sales.
AAM's SG&A spending in the fourth quarter of 2013 was $60.5 million, or 7.3% of
sales, as compared to $65.4 million, or 8.9% of sales, in the fourth quarter of
2012. Â AAM's R&D spending in the fourth quarter of 2013 was $24.0 million as
compared to $33.1 million in the fourth quarter of 2012.
AAM's SG&A spending for the full year 2013 was $238.4 million, or 7.4% of sales,
as compared to $243.3 million, or 8.3% of sales, for the full year 2012. Â AAM's
R&D spending for the full year 2013 was $103.4 million as compared to $123.4
million in 2012.
In the fourth quarter of 2013, AAM's net income was $29.8 million, or 3.6% of
sales. Â Diluted earnings per share (EPS) were $0.39 per share in the fourth
quarter of 2013. Â For the full year 2013, AAM's net income was $94.5 million,
or 2.9% of sales. Â Diluted earnings per share (EPS) were $1.23 per share for the
full year 2013.
For 2013, AAM defines Adjusted EBITDA to be earnings before interest, taxes,
depreciation and amortization excluding the impact of debt refinancing and
redemption costs and other special charges and restructuring costs. Â In the
fourth quarter of 2013, AAM's Adjusted EBITDA was $113.7 million or 13.7% of
sales. For the full year 2013, AAM's Adjusted EBITDA was $421.8 million, or
13.2% of sales.
AAM defines free cash flow to be net cash provided by (or used in) operating
activities less capital expenditures net of proceeds from the sale of property,
plant and equipment and the sale-leaseback of equipment.
Net cash provided by operating activities for the full year 2013 was $223.0
million. Â Capital spending, net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment, for the full year 2013 was $218.7
million. Â Reflecting the impact of this activity, AAM generated positive free
cash flow of $4.3 million for the full year 2013.
AAM's free cash flow for the full year 2013 reflects the impact of cash payments
for debt refinancing and redemption activities of approximately $36.8 million.
A conference call to review AAM's fourth quarter and full year 2013 results is
scheduled today at 10:00 AM ET. Â 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) 681-2072 from the United States or
(973) 200-3383 from outside the United States. Â A replay will be available from
2:00 p.m. ET on February 7, 2014 until 5:00 p.m. ET February 14, 2014 by dialing
(855) 859-2056 from the United States or (404) 537-3406 from outside the United
States. Â When prompted, callers should enter conference reservation number
34605135.
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles
generally accepted in the United States of America (GAAP) included within this
press release, AAM has provided certain information, which includes non-GAAP
financial measures. Â Such information is reconciled to its closest GAAP measure
in accordance with Securities and Exchange Commission rules and is included in
the attached supplemental data.
Management believes that these non-GAAP financial measures are useful to both
management and its stockholders in their analysis of the Company's business and
operating performance. Â 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. Â Additionally, non-GAAP financial measures as presented by
AAM may not be comparable to similarly titled measures reported by other
companies.
AAM is a world leader in the manufacture, engineering, design and validation of
driveline and drivetrain systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport utility vehicles,
passenger cars, crossover vehicles and commercial vehicles. Â In addition to
locations in the United States (Michigan, Ohio, Pennsylvania and Indiana), AAM
also has offices or facilities in Brazil, China, Germany, India, Japan,
Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand.
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," 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:
reduced purchases of our products by General Motors Company (GM), Chrysler Group
LLC (Chrysler) or other customers; reduced demand for our customers' products
(particularly light trucks and sport utility vehicles (SUVs) produced by GM and
Chrysler); our ability or our customers' and suppliers' ability to successfully
launch new product programs on a timely basis; our ability to realize the
expected revenues from our new and incremental business backlog; our ability to
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; our ability to respond to
changes in technology, increased competition or pricing pressures; our ability
to achieve the level of cost reductions required to sustain global cost
competitiveness; supply shortages or price increases in raw materials, utilities
or other operating supplies for us or our customers as a result of natural
disasters or otherwise; global economic conditions, including the impact of the
continued market weakness in the Euro-zone; risks inherent in our international
operations (including adverse changes in political stability, taxes and other
law changes, potential disruptions of production and supply, and currency rate
fluctuations); liabilities arising from warranty claims, product recall or field
actions, product liability and legal proceedings to which we are or may become a
party; price volatility in, or reduced availability of, fuel; our ability to
successfully implement upgrades to our enterprise resource planning systems; our
ability to maintain satisfactory labor relations and avoid work stoppages; our
suppliers', our customers' and their suppliers' ability to maintain satisfactory
labor relations and avoid work stoppages; our ability to attract and retain key
associates; availability of financing for working capital, capital expenditures,
research and development (R&D) or other general corporate purposes, including
our ability to comply with financial covenants; our customers' and suppliers'
availability of financing for working capital, capital expenditures, R&D or
other general corporate purposes; changes in liabilities arising from pension
and other postretirement benefit obligations; risks of noncompliance with
environmental laws and regulations or risks of environmental issues that could
result in unforeseen costs at our facilities; adverse changes in laws,
government regulations or market conditions affecting our products or our
customers' products (such as the Corporate Average Fuel Economy (CAFE)
regulations); our ability to consummate and integrate acquisitions and joint
ventures; our ability or our customers' and suppliers' ability to comply with
the Dodd-Frank Act and other regulatory requirements and the potential costs of
such compliance; and other unanticipated events and conditions that may hinder
our ability to compete. It is not possible to foresee or identify all such
factors and we make no commitment to update any forward-looking statement or to
disclose any facts, events or circumstances after the date hereof that may
affect the accuracy of any forward-looking statement.
# Â # Â #
For more information...
Christopher M. Son
Director, Investor Relations,
Corporate Communications & Marketing
(313) 758-4814
chris.son@aam.com
Danielle Landolt
Manager, Marketing & Communications
(313) 758-4589
danielle.landolt@aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three months ended  Twelve months ended
 December 31,  December 31,
 2013  2012  2013  2012
 (in millions, except per  (in millions, except per
share data) share data)
Net sales $ 831.3 Â Â $ 736.7 Â Â $ 3,207.3 Â Â $ 2,930.9
Cost of goods sold 704.4 Â Â 652.7 Â Â 2,728.6 Â Â 2,531.2
Gross profit 126.9 Â Â 84.0 Â Â 478.7 Â Â 399.7
Selling, general and 60.5 Â Â 65.4 Â Â 238.4 Â Â 243.3
administrative expenses
Operating income 66.4 Â Â 18.6 Â Â 240.3 Â Â 156.4
Interest expense (28.0 ) Â (28.9 ) Â (115.9 ) Â (101.6 )
Investment income 0.2 Â Â - Â Â 0.6 Â Â 0.6
Other income (expense)
Debt refinancing and (25.6 ) Â (9.7 ) Â (36.8 ) Â (19.8 )
redemption costs
Other, net (0.5 ) Â (0.1 ) Â (1.9 ) Â (4.1 )
Income (loss) before 12.5 Â Â (20.1 ) Â 86.3 Â Â 31.5
income taxes
Income tax expense (17.3 ) Â (340.0 ) Â (8.2 ) Â (335.2 )
(benefit)
Net income 29.8 Â Â 319.9 Â Â 94.5 Â Â 366.7
Net loss attributable to - Â Â - Â Â - Â Â 1.0
noncontrolling interests
Net income attributable $ 29.8 Â Â $ 319.9 Â Â $ 94.5 Â Â $ 367.7
to AAM
Diluted earnings per $ 0.39 Â Â $ 4.21 Â Â $ 1.23 Â Â $ 4.87
share
Diluted shares 77.0 Â Â 76.0 Â Â 76.8 Â Â 75.4
outstanding
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 Three months ended  Twelve months ended
 December 31,  December 31,
 2013  2012  2013  2012
 (in millions)
Net income $ 29.8 Â Â $ 319.9 Â Â $ 94.5 Â Â $ 366.7
Other comprehensive income
(loss), net of tax
Defined benefit plans, net of tax 60.9 Â Â 58.3 Â Â 76.6 Â Â (58.9 )
Foreign currency translation (11.9 ) Â (2.3 ) Â (26.2 ) Â (9.4 )
adjustments
Change in derivatives 0.2 Â Â 0.2 Â Â (2.0 ) Â 7.8
Other comprehensive income (loss 49.2 Â Â 56.2 Â Â 48.4 Â Â (60.5 )
)
Comprehensive income 79.0 Â Â 376.1 Â Â 142.9 Â Â 306.2
Net loss attributable to - Â Â - Â Â - Â Â 1.0
noncontrolling interests
Foreign currency translation - Â Â 0.1 Â Â - Â Â 0.3
adjustments related to
noncontrolling interests
Comprehensive income attributable $ 79.0 Â Â $ 376.0 Â Â $ 142.9 Â Â $ 306.9
to AAM
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 December 31,  December 31,
2013 2012
 (in millions)
ASSETS
Current Assets
Cash and cash equivalents $ 154.0 Â Â $ 62.4
Accounts receivable, net 458.5 Â Â 463.4
Inventories, net 261.8 Â Â 224.3
Deferred income taxes 36.4 Â Â 34.9
Prepaid expenses and other current assets 87.1 Â Â 87.1
Total current assets 997.8 Â Â 872.1
Property, plant and equipment, net 1,058.5 Â Â 1,009.7
Deferred income taxes 341.8 Â Â 366.1
Goodwill 156.4 Â Â 156.4
GM postretirement cost sharing asset 242.0 Â Â 259.7
Other assets and deferred charges 232.5 Â Â 202.0
Total assets $ 3,029.0 Â Â $ 2,866.0
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable $ 445.8 Â Â $ 396.1
Accrued compensation and benefits 110.1 Â Â 84.9
Deferred revenue 17.0 Â Â 17.2
Deferred income taxes 0.1 Â Â 1.4
Accrued expenses and other current liabilities 94.1 Â Â 101.2
Total current liabilities 667.1 Â Â 600.8
Long-term debt 1,559.1 Â Â 1,454.1
Deferred income taxes 9.8 Â Â 9.5
Deferred revenue 76.4 Â Â 82.2
Postretirement benefits and other long-term 683.0 Â Â 840.2
liabilities
Total liabilities 2,995.4 Â Â 2,986.8
Total stockholders' equity (deficit) 33.6 Â Â (120.8 )
Total liabilities and stockholders' equity $ 3,029.0 Â Â $ 2,866.0
(deficit)
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
  Three months ended  Twelve months ended
  December 31,  December 31,
  2013  2012  2013  2012
  (in millions)  (in millions)
Operating Activities
Net income  $ 29.8   $ 319.9   $ 94.5   $ 366.7
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities
Asset impairments and related  -   5.8   -   5.8
indirect activity
Depreciation and amortization  47.6   39.8   177.0   152.2
Other  43.3   (344.4 )  (48.5 )  (700.2 )
Net cash provided by (used in) Â 120.7 Â Â 21.1 Â Â 223.0 Â Â (175.5 )
operating activities
Investing Activities
Purchases of property, plant & Â (73.7 ) Â (63.9 ) Â (251.9 ) Â (207.6 )
equipment
Proceeds from sale of  3.3   7.9   9.1   10.1
property, plant & equipment
Proceeds from sale-leaseback  0.6   12.1   24.1   12.1
of equipment
Net cash used in investing  (69.8 )  (43.9 )  (218.7 )  (185.4 )
activities
Financing Activities
Net increase (decrease) in  (11.0 )  (123.1 )  104.8   273.9
long-term debt
Debt issuance costs  (3.8 )  (0.5 )  (16.7 )  (10.6 )
Purchase of treasury stock  -   -   (0.4 )  (5.9 )
Purchase of noncontrolling  -   -   -   (4.0 )
interest
Employee stock option  0.3   -   1.1   0.1
exercises
Net cash provided by (used in) Â (14.5 ) Â (123.6 ) Â 88.8 Â Â 253.5
financing activities
Effect of exchange rate  (1.0 )  (0.2 )  (1.5 )  0.6
changes on cash
Net increase (decrease) in  35.4   (146.6 )  91.6   (106.8 )
cash and cash equivalents
Cash and cash equivalents at  118.6   209.0   62.4   169.2
beginning of period
Cash and cash equivalents at  $ 154.0   $ 62.4   $ 154.0   $ 62.4
end of period
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) and adjusted EBITDA((a))
 Three months ended  Twelve months ended
 December 31,  December 31,
 2013  2012  2013  2012
 (in millions)  (in millions)
Net income attributable to AAM $ 29.8 Â Â $ 319.9 Â Â $ 94.5 Â Â $ 367.7
Interest expense 28.0 Â Â 28.9 Â Â 115.9 Â Â 101.6
Income tax benefit (17.3 ) Â (340.0 ) Â (8.2 ) Â (335.2 )
Depreciation and amortization 47.6 Â Â 39.8 Â Â 177.0 Â Â 152.2
EBITDA 88.1 Â Â 48.6 Â Â 379.2 Â Â 286.3
Debt refinancing and redemption 25.6 Â Â 9.7 Â Â 36.8 Â Â 19.8
costs
Other special charges, - Â Â 6.2 Â Â 5.8 Â Â 40.6
curtailment gains and
restructuring costs((b))
ADJUSTED EBITDA $ 113.7 Â Â $ 64.5 Â Â $ 421.8 Â Â $ 346.7
Net debt((c) )to capital
 December 31,  December 31,
2013 2012
 (in millions, except
percentages)
Total debt $ 1,559.1 Â Â $ 1,454.1
Less: cash and cash equivalents 154.0 Â Â 62.4
Net debt at end of period 1,405.1 Â Â 1,391.7
Stockholders' equity (deficit) 33.6 Â Â (120.8 )
Total invested capital at end of period $ 1,438.7 Â Â $ 1,270.9
Net debt to capital((d)) 97.7 % Â 109.5 %
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.
Free Cash Flow((e))
 Three months ended  Twelve months ended
 December 31,  December 31,
 2013  2012  2013  2012
 (in millions)  (in millions)
Net cash provided by (used in) $ 120.7 Â Â $ 21.1 Â Â $ 223.0 Â Â $ (175.5 )
operating activities
Less: Purchases of property, (69.8 ) Â (43.9 ) Â (218.7 ) Â (185.4 )
plant & equipment, net of
proceeds from sale of property,
plant & equipment and sale-
leaseback of equipment
Free cash flow $ 50.9 Â Â $ (22.8 ) Â $ 4.3 Â Â $ (360.9 )
________________________________________
a. We define EBITDA to be earnings before interest, taxes, depreciation and
amortization. For 2013, Adjusted EBITDA is defined as EBITDA excluding the
impact of debt refinancing and redemption costs and other special charges
and restructuring costs. For 2012, Adjusted EBITDA is defined as EBITDA
excluding the impact of curtailment gains, restructuring costs and special
charges related to the closure of the Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility, and debt refinancing and redemption
costs. 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. Â 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. Â EBITDA and adjusted EBITDA should not
be construed as income from operations, net income or cash flow from
operating activities as determined under GAAP. Â Other companies may
calculate EBITDA and adjusted EBITDA differently.
b. Special charges of $5.8 million for the twelve months ended December
31, 2013 primarily relate to a net charge of  $5.3 million related to the
acceleration of expense for stock-based compensation and other benefits
earned and vested due to the passing of our Co-Founder and Executive
Chairman of the Board of Directors and $0.5 million for the settlement of a
National Labor Relations Board proceeding related to the closure of our
Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.
Special charges and restructuring costs of $6.2 million for three months
ended December 31, 2012 and $40.6 million for the twelve months ended
December 31, 2012 primarily related to the closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility. Â This special
charge activity included $28.7 million of expense related to pension and
postretirement benefits to be provided to certain eligible UAW associates as
a result of the Detroit Manufacturing Complex and Cheektowaga Manufacturing
Facility plant closures, $33.7 million of expense primarily related to asset
impairments, asset redeployment and other restructuring costs associated
with the closures of Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility and a $21.8 million postretirement benefit
curtailment gain recorded in the first quarter of 2012.
c. Net debt is equal to total debt less cash and cash equivalents.
d. Net debt to capital is equal to net debt divided by the sum of stockholders'
equity (deficit) and net debt. Â 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. Â Other companies may calculate net debt to capital differently.
e. We define free cash flow as net cash provided by (used in) operating
activities less capital expenditures net of proceeds from the sale of
property, plant and equipment and the sale-leaseback of equipment. For
purposes of calculating free cash flow, AAM excludes the impact of purchase
buyouts of leased equipment, if any. Â We believe free cash flow is a
meaningful measure as it is 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. Â Free cash flow is also a key
metric used in our calculation of incentive compensation. Â Other companies
may calculate free cash flow differently.
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Source: American Axle & Manufacturing Holdings, Inc via GlobeNewswire
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