Dauch Corporation · NYSE:DCH
Dauch — American Axle & Manufacturing Holdings — Q4 2023 Earnings Presentation
26 slides from Dauch's earnings presentation, Feb 16, 2024
Slide 1: Fourth Quarter 2023 Earnings Call
Fourth Quarter 2023 Earnings Call
Slide 2: Forward-Looking Statements
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 199
Slide 3: 4Q 2023 and Full Year Financial Highlights
4Q 2023 and Full Year Financial Highlights 4Q $1.46B $170M $5M 2023 Quarterly Quarterly Quarterly Sales Adj. EBITDA Adj. Free 11.6% of Sales Cash Flow FY $6.08B $693M $219M $311M 2023 Full Year Full Year Full Year Sales Adj. EBITDA Adj. Free 11.4% of Sales Cash Flow * For definitions of Adjusted EBI
Slide 4: Performance Overview
Performance Overview Quarter Status Issues Status Update 4Q23 1Q24 • Customer Production Volatility • Situation continues to improve. • UAW Work Stoppage • Concluded in 4Q 2023 – issue closed. • Economic Recoveries • Primary objectives concluded at the tail end of 2023. • Few open discussions to clo
Slide 5: Business News Update
Business News Update DongFeng Mahindra VinFast AAM China AAM to provide AAM to deliver AAM supplying Recognized by SAIC-GM DongFeng’s MengShi eLocking differentials for components to VinFast for quality excellence & brand with final an SUV program for its mid-size electric supply chain stability, an
Slide 6: 2023 AAM Highlights
2023 AAM Highlights AAM to supply AAM launched a Recognized as an e-Beam axles for a significant new Overdrive Award future EV program, axle program winner for featuring AAM’s supporting the next sustainability at GM’s integrated 3-in-1 generation Colorado 31st annual Supplier e-Drive technology and
Slide 7: Gross New Business Backlog
Gross New Business Backlog (disclosed on February 16, 2024) $600 Million Backlog (2024-2026) Backlog By Segment Backlog By Geography 5% 5% 25% 20% 50% 45% 30% 20% Electric Trucks/SUV Crossover Pass Car Other Asia Europe Americas Electrification continues to be a growing portion of AAM’s new business
Slide 8: 2024 Financial Outlook
2024 Financial Outlook (as of February 16, 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 custom
Slide 9: 4Q Financial Results
4Q Financial Results Three Months Ended December 31, 2023 2022 (dollars in millions, except per share data) Difference Net sales $ 1,463.0 $ 1,392.7 $ 70.3 Gross profit $ 154.9 $ 167.2 $ (12.3) Gross margin 10.6% 12.0% -1.4% Selling, general and administrative expenses $ 95.7 $ 88.5 $ 7.2 SG&A as a
Slide 10: Full Year Financial Results
Full Year Financial Results Twelve Months Ended December 31, 2023 2022 (dollars in millions, except per share data) Difference Net sales $ 6,079.5 $ 5,802.4 $ 277.1 Gross profit $ 624.3 $ 704.9 $ (80.6) Gross margin 10.3% 12.1% -1.8% Selling, general and administrative expenses $ 366.9 $ 345.1 $ 21.
Slide 11: 4Q 2023 Year-Over-Year Sales Walk
4Q 2023 Year-Over-Year Sales Walk $ in millions $158 $1,464 $1,463 $1,393 ($84) ($1) ($3) 4Q 2022 Sales Pricing Volume, Mix UAW Work 4Q 2023 Metal Markets 4Q 2023 Sales & Other Stoppage Sales Subtotal & FX Note: Chart not to scale 11
Slide 12: 4Q 2023 Year-Over-Year EBITDA Walk
4Q 2023 Year-Over-Year EBITDA Walk $ in millions $39 $13 $183 $170 $158 ($23) ($13) ($1) ($3) 4Q 2022 Adjusted Pricing Volume, Mix UAW Work R&D Net inflation, 4Q 2023 Adjusted Metal Markets 4Q 2023 Adjusted EBITDA & Other Stoppage Performance EBITDA Subtotal & FX EBITDA & Other Note: Chart not to sc
Slide 13: Adjusted Free Cash Flow and Credit Profile
Adjusted Free Cash Flow and Credit Profile Cash Flow and Debt Metrics 4Q 2023 Adjusted Free Cash Flow $4.5 million Net Debt $2.2 billion Net Leverage Ratio 3.2x Liquidity ~$1.5 billion AAM Maintains Strong Liquidity Note: For definitions and reconciliations of non-GAAP financial measures, please see
Slide 14: 2024 Sales Target Walk
2024 Sales Target Walk $ in millions (unless noted otherwise) ~$300 ~$60 $6.05 - $6.35B ($5) - $5 $6.05 - $6.35B $6.08B ~($220) ~($20) 2023 Sales New Business Attrition Pricing Volume, Mix Subtotal Metal Markets 2024 Sales Backlog and Other* & FX in 2024 Target Range *At guidance midpoint Note: Char
Slide 15: 2024 Adjusted EBITDA Target Walk
2024 Adjusted EBITDA Target Walk $ in millions ~$35 $705 - $770 ~$35 $685 - $750 ~($20) $693 ~($20) ~($5) 2023 Adjusted Volume & Mix* Pricing R&D Productivity, Subtotal Metal Markets Adjusted EBITDA EBITDA Inflation, & FX 2024 Target Range Other, Net* *At guidance midpoint Note: Chart not to scale.
Slide 16: 2024 Targeted Adj. Free Cash Flow Walk
2024 Targeted Adj. Free Cash Flow Walk $ in millions ~$25 $219 ~$55 $200 - $240 21.0% ~($70) $0 - ($10) Margin $0 - ($10) 19.0% Margin 15.1% Margin 2023 Adjusted Yr/Yr change in Higher Capital Higher Interest Higher Income Working Capital Targeted 2024 Free Cash Flow Adjusted EBITDA* Spending* Taxes
Slide 17: Supplemental Data
Supplemental Data
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such informa
Slide 19: EBITDA and Adjusted EBITDA Reconciliation
Supplemental Data* EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) $ (19.1) $ 13.9 $ (33.6) $ 64.3 Interest expense 50.2 42.3 201.7 174.5 Income tax expense 5.8 4.1 9.1 2.0 Depreciation a
Slide 20: Adjusted Earnings (Loss) Per Share Reconciliation
Supplemental Data* Adjusted Earnings (Loss) Per Share Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Diluted earnings (loss) per share $ (0.16) $ 0.11 $ (0.29) $ 0.53 Restructuring and acquisition-related costs 0.07 0.03 0.22 0.25 Debt refinancing
Slide 21: Free Cash Flow and Adjusted Free Cash Flow Reconciliation
Supplemental Data* Free Cash Flow and Adjusted Free Cash Flow Reconciliation ($ in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Net cash provided by operating activities $ 52.9 $ 148.5 $ 396.1 $ 448.9 Capital expenditures net of proceeds from the sal
Slide 22: Net Debt and Net Leverage Ratio
Supplemental Data* Net Debt and Net Leverage Ratio ($ in millions) December 31, 2023 Current portion of long term debt $ 17.0 Long-term debt, net 2,751.9 Total debt, net 2,768.9 Less: Cash and cash equivalents 519.9 Net debt at end of period 2,249.0 Adjusted LTM EBITDA $ 693.3 Net Leverage Ratio 3.2
Slide 23: Segment Financial Information
Supplemental Data* Segment Financial Information ($ in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Segment Sales Driveline $ 1,015.2 $ 950.2 $ 4,176.7 $ 4,063.5 Metal Forming 576.2 563.8 2,454.3 2,280.7 Total Sales 1,591.4 1,514.0 6,631.0 6,344.2 In
Slide 24: 2024 Adjusted EBITDA and Adjusted Free Cash Flow Reconciliation
Supplemental Data* Adjusted EBITDA Adjusted Free Cash Flow Low End High End Low End High End (in millions) (in millions) Net Income (loss) $ (10) $ 40 Net cash provided by operating activities $ 445 $ 485 Interest expense 195 195 Capital expenditures net of proceeds from the sale of property, (265)
Slide 25: Definition of Non-GAAP Measures
Definition of Non-GAAP Measures EBITDA and Adjusted EBITDA 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 c
Slide 26: www.aam.com
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