AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. First Quarter 2024 Earnings Call
Forward-Looking Statements
In this presentation, 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. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include factors detailed in the reports we file with the SEC, including those described under "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this communication. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
It should also be noted that this information contains certain financial measures, including Adjusted EBITDA, Adjusted Earnings per Share, Adjusted Free Cash Flow, Net Leverage Ratio and Liquidity that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These measures are presented here to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance. A description of non-GAAP financial measures that we use to evaluate our operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found in the appendix under "Reconciliation of Non-GAAP Measures."
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1Q 2024 AAM Financial Highlights
$1.61B | $205.6M | $(21.4)M |
Quarterly | First Quarter | Adjusted Free |
Sales | Adjusted EBITDA | Cash Flow Use |
(12.8% margin) |
AAM Delivered Solid Performance
* For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and non-GAAP reconciliations, please see the attached appendix. | 3 |
Business Update
XPENG DiDi | EV Component Wins | |
AAM (in partnership with Inovance) | AAM to supply various electric | |
to provide XPENG DiDi with 3-in-1 | vehicle components for multiple | |
electric drive units. Start of | luxury OEM customers. | |
production to begin later this year. | ||
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2023 Sustainability Report
Report Highlights
- Published new sustainability report in April 2024
- Achieved ISO 50001 certification at all manufacturing facilities
- Introduced a new Cybersecurity Awareness program, #AAMSecure
- Received 21 quality performance awards
- Exceeded our 2023 U.S. renewable and carbon-free energy goal
- Achieved 22,000+ consolidated days without a recordable safety incident
- Launched 14 major global product programs
- Increased our Supplier Diversity spend year-over-year by 12%
- Enhanced our Human Rights policy
- Launched a global transportation campaign to reduce emissions
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2024 Financial Outlook (as of May 3, 2024)
2024 Financial Targets
Full Year Sales | $6.05 to $6.35 billion |
Adjusted EBITDA | $685 to $750 million |
Adjusted Free Cash Flow | $200 to $240 million |
- These targets are based on North American light vehicle production of ~15.8 million units, current customer production and launch schedules, and business environment
- Adjusted Free Cash Flow target assumes capital spending in the range of 4.0% - 4.5% of sales
- AAM expects restructuring and acquisition-related cash payments to be between $15 and $25 million
Note: For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and Non-GAAP reconciliations, please see the attached appendix
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1Q Financial Results
Net sales | $ |
Gross profit | $ |
Gross margin | |
Selling, general and administrative expenses | $ |
SG&A as a % of sales | |
Amortization of intangible assets | $ |
Restructuring and acquisition-related costs | $ |
Unrealized gain (loss) on equity securities | $ |
Other income, net | $ |
Adjusted EBITDA | $ |
Adjusted EBITDA margin | |
Net interest expense | $ |
Income tax expense | $ |
Effective income tax rate | |
Net income (loss) | $ |
Diluted earnings (loss) per share | $ |
Adjusted EPS (loss) | $ |
Three Months Ended March 31, | ||||
2024 | 2023 | |||
(dollars in millions, except per share data) | Difference | |||
1,606.9 | $ | 1,493.9 | $ | 113.0 |
198.5 | $ | 160.6 | $ | 37.9 |
12.4% | 10.8% | 1.6% | ||
98.3 | $ | 98.3 | $ | - |
6.1% | 6.6% | -0.5% | ||
20.7 | $ | 21.4 | $ | (0.7) |
2.5 | $ | 4.8 | $ | (2.3) |
0.1 | $ | (0.3) | $ | 0.4 |
- | $ | 3.7 | $ | (3.7) |
205.6 | $ | 175.4 | $ | 30.2 |
12.8% | 11.7% | 1.1% | ||
(40.7) | $ | (44.6) | $ | 3.9 |
15.9 | $ | - | $ | 15.9 |
43.7% | 0.0% | 43.7% | ||
20.5 | $ | (5.1) | $ | 25.6 |
0.17 | $ | (0.04) | $ | 0.21 |
0.18 | $ | (0.01) | $ | 0.19 |
Note: Adjusted earnings per share are based on weighted average diluted shares outstanding of 121.0 million and 115.2 million for the three months ended on March 31, 2024 and 2023, respectively.
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1Q 2024 Revenue Walk (Yr/Yr)
$ in millions
$114 | $1,601 | $6 | $1,607 |
$1,494
($7)
1Q 2023 Sales | Pricing | Volume, Mix | 1Q 2024 | Metal Markets | 1Q 2024 Sales |
& Other | Sales Subtotal | & FX |
Note: chart not to scale
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1Q 2024 Adjusted EBITDA Walk
$ in millions
$6 | $8 | $213 | $206 | ||||
$31 | |||||||
($7) | |||||||
$175 | |||||||
($7) | |||||||
1Q 2023 | Pricing | Volume, Mix | R&D | Net inflation, | 1Q 2024 | Metal Markets | 1Q 2024 |
Adjusted EBITDA | & Other | Performance | Adjusted EBITDA | & FX | Adjusted EBITDA | ||
& Other | Subtotal |
Note: chart not to scale
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Adjusted Free Cash Flow and Credit Profile
Cash Flow and Debt Metrics | 1Q 2024 |
Adjusted Free Cash Flow | $(21.4) million |
Net Debt | $2.3 billion |
Net Leverage Ratio | 3.2x |
Liquidity | ~$1.4 billion |
AAM Maintains Strong Liquidity
Note: For definitions and reconciliations of non-GAAP financial measures, please see the attached appendix.
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Disclaimer
AAM - American Axle & Manufacturing Holdings Inc. published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 14:27:06 UTC.
