MPG reports 2016 second quarter results; increases free cash flow guidance, announces upsizing of share repurchase program and voluntary debt reduction plan

Metaldyne Performance Group Inc. (NYSE: MPG), a leading provider of highly-engineered components for use in powertrain and suspension applications for the global light, commercial and industrial vehicle markets, today reported the following financial results for its second quarter ended July 3, 2016.

Financial Highlights:

Treasury Actions Authorized by Our Board of Directors on August 3, 2016:

• Declared a dividend of $0.0925 per share of common stock outstanding, payable on September 20, 2016 to stockholders of record as ofSeptember 6, 2016.
• Authorized an additional $10 million for a total of $35 million authorized for our share repurchase program. As of July 3, 2016, cumulative shares repurchased totaled 946,256 shares at an average purchase price per share of $15.54.
• Authorized a voluntary debt reduction plan of $10 million.

Commenting on the Company’s results, George Thanopoulos, Chief Executive Officer of MPG, stated, “We are extremely pleased with our second quarter and year to date results, highlighted by our strong cash flow. We continue to deliver strong operating results and margins despite certain macro headwinds and the planned attrition of our non-core wheel bearing business. We attribute these great results to our relentless focus on cost reductions and cash flow. Our solid cash flow gave us flexibility to increase our share repurchase program and authorize a voluntary debt reduction plan. We also see continued momentum in our new business wins centered on our core products. Our results and new business wins are aligned with our short and long-term value creation model.”

Business Outlook:

For fiscal year 2016, MPG maintains guidance as follows:

• Net sales between $2.75 and $2.95 billion
• Income before tax between $131 and $171 million
• Adjusted EBITDA between $500 and $540 million
• Capital expenditures between $190 and $210 million
• Net cash provided by operating activities between $335 and $355 million
• Adjusted Free Cash Flow between $310 and $330 million

For fiscal year 2016, MPG increased guidance as follows:

• Increase Free Cash Flow from ~$125 million to ~$145 million

Conference Call:

The Company will hold a conference call to discuss its second quarter 2016 results today at 8:00 a.m. ET. A live webcast of the call may be accessed over the Internet from the Company’s Investor Relations website at investors.mpgdriven.com. Participants should follow the instructions provided on the website to download and install the necessary audio applications.

The dial-in phone number for the conference call is:

A live webcast and a replay of the conference call and the second quarter press release will also be available online at http://investors.mpgdriven.com.

For those unable to participate in the conference call, a replay will be available from 11:00 a.m. ET on August 4th, until 11:59 p.m. ET on August 11th. The replay dial-in phone number is: