- Non-GM sales of $288 million, up over 50% on a year-over-year basis
American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial results for the first quarter of 2014.
First Quarter 2014 Results
- First quarter 2014 sales of $858.8 million, up approximately 13.7% on a year-over-year basis
- Non-GM sales grew over 50% on a year-over-year basis to $287.8 million
- Gross profit of $121.9 million, or 14.2% of sales
- Net income of $33.6 million, or $0.44 per share
- EBITDA (earnings before interest, taxes, depreciation and amortization) of $112.5 million, or 13.1% of sales
AAM’s net income in the first quarter of 2014 was $33.6 million, or $0.44 per share as compared to net income of $7.3 million, or $0.10 per share, in the first quarter of 2013. In the first quarter of 2013, AAM’s results reflect the impact of $11.3 million (or $0.13 per share) of debt refinancing and redemption costs.
“AAM’s financial results in the first quarter of 2014 reflect strong sales growth that continues to outpace the industry,” said AAM’s Chairman, President and Chief Executive Officer, David C. Dauch. “AAM’s top priority in 2014 is to flawlessly launch our new business backlog which will drive higher profitability, improve free cash flow generation and enhance business diversification for our fast-growing company. We remain committed to delivering world-class quality products, maintaining operational excellence at every one of our 35 global facilities and demonstrating technology leadership by continuing to develop innovative driveline solutions for the global automotive market.”
Led by higher sales in support of Chrysler’s all-new Jeep Cherokee and heavy-duty Ram full-size pickup trucks and its derivatives, AAM’s sales in the first quarter of 2014 increased approximately 13.7% to $858.8 million as compared to $755.6 million in the first quarter of 2013. Non-GM sales grew 53.0% on a year-over-year basis to $287.8 million in the first quarter of 2014 as compared to $188.1 million in the first quarter of 2013.
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 first quarter of 2014, AAM’s content-per-vehicle increased 10.0% to $1,655 as compared to $1,504 in the first quarter of 2013.
AAM’s gross profit in the first quarter of 2014 was $121.9 million, or 14.2% of sales, as compared to $104.3 million, or 13.8% of sales, in the first quarter of 2013.
In the first quarter of 2014, AAM’s operating income increased over $20 million to $64.8 million, or 7.5% of sales, as compared to $44.7 million, or 5.9% of sales, in the first quarter of 2013.
AAM’s SG&A spending in the first quarter of 2014 was $57.1 million, or 6.6% of sales, as compared to $59.6 million, or 7.9% of sales, in the first quarter of 2013. AAM’s R&D spending in the first quarter of 2014 was $25.8 million as compared to $28.5 million in the first quarter of 2013.
In the first quarter of 2014, AAM’s net income was $33.6 million, or $0.44 per share as compared to $7.3 million or $0.10 per share in the first quarter of 2013.
AAM defines EBITDA to be earnings before interest, taxes, depreciation and amortization. In the first quarter of 2014, AAM’s EBITDA increased over $37 million to $112.5 million, or 13.1% of sales, as compared to $75.3 million, or 10.0% of sales, in the first quarter of 2013.
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 used in operating activities for the first quarter of 2014 was $55.5 million. Capital spending, net of proceeds from the sale of property, plant and equipment, for the first quarter of 2014 was $40.0 million. Reflecting the impact of this activity, AAM’s free cash flow was a use of $95.5 million for the first quarter of 2014.
A conference call to review AAM’s first quarter 2014 results is scheduled today at 10:00 AM 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) 681-2072 from the United States or (973) 200-3383 from outside the United States. A replay will be available from 2:00 p.m. ET on May 2, 2014 until 5:00 p.m. ET May 9, 2014 by dialing (855) 859-2056 from the United States or (404) 537-3406 from outside the United States. When prompted, callers should enter conference reservation number 34605136.
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. 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. 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.
