Dauch Corporation · NYSE:DCH
Dauch — American Axle & Manufacturing Holdings — Q2 2023 Earnings Presentation
20 slides from Dauch's earnings presentation, Aug 4, 2023
Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from
Slide 3: 2Q 2023 AAM Financial Highlights
2Q 2023 AAM Financial Highlights $1.57B $191.6M $95.8M Quarterly Second Quarter Adjusted Free Sales Adjusted EBITDA Cash Flow AAM Delivered Solid Financial Results * For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and non-GAAP reconciliations, please see the attached appendix. 3
Slide 4: Business Update
Business Update E-beam Axle Award EV Component Wins Forbes Award Forbes Award AAM to supply 2-in-1 AAM to supply electric Forbes has named AAM one of AAM was named one of Forbes E-beam axles for light duty vehicle components for America’s Best Employers for America’s Best Employers for truck applica
Slide 5: 2023 Financial Outlook
2023 Financial Outlook (as of August 4, 2023) 2023 Financial Targets Full Year Sales $5.95 to $6.25 billion Adjusted EBITDA $725 to $800 million Adjusted Free Cash Flow $225 to $300 million • These targets are based on AAM’s production estimates of key programs that we support, North American light
Slide 6: 2Q Financial Results
2Q Financial Results Three Months Ended June 30, 2023 2022 (dollars in millions, except per share data) Difference Net sales $ 1,570.7 $ 1,438.3 $ 132.4 Gross profit $ 178.2 $ 173.5 $ 4.7 Gross margin 11.3% 12.1% -0.8% Selling, general and administrative expenses $ 91.1 $ 84.8 $ 6.3 SG&A as a % of s
Slide 7: 2023 Q2 Revenue Walk (Yr/Yr)
2023 Q2 Revenue Walk (Yr/Yr) $ in millions $69 $1,609 21.0% $1,571 Margin $106 ($38) $1,438 19.0% ($4) Margin 15.1% 18.2% Margin 17.1% 13.3% 2Q 2022 Sales Pricing Volume, Mix Tekfor 2Q 2023 Metal Markets 2Q 2023 Sales & Other Acquisition Sales Subtotal & FX Note: Chart not to scale 7
Slide 8: 2023 Q2 Adjusted EBITDA Walk (Yr/Yr)
2023 Q2 Adjusted EBITDA Walk (Yr/Yr) $ in millions 21.0% $31 Margin $195 ($2) $11 $192 ($14) $2 $181 ($4) 19.0% ($27) Margin 15.1% 18.2% Margin 17.1% 13.3% 2Q 2022 Adjusted Pricing Volume, Mix R&D Inflation, net Performance, Tekfor 2Q 2023 Adjusted Metal Markets 2Q 2023 Adjusted EBITDA & Other Launc
Slide 9: Adjusted Free Cash Flow and Credit Profile
Adjusted Free Cash Flow and Credit Profile Cash Flow and Debt Metrics 2Q 2023 Adjusted Free Cash Flow $95.8 million Net Debt $2.4 billion Net Leverage Ratio 3.3x Liquidity ~$1.5 billion AAM Maintains Strong Liquidity Note: For definitions and reconciliations of non-GAAP financial measures, please se
Slide 10: Supplemental Data
Supplemental Data
Slide 11: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such informa
Slide 12: EBITDA and Adjusted EBITDA Reconciliation
Supplemental Data EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net income $ 8.0 $ 22.9 $ 2.9 $ 23.9 Interest expense 50.2 42.7 100.7 87.4 Income tax expense 5.3 0.6 5.3 3.6 Depreciation and amortization 120.5 121.
Slide 13: EBITDA and Adjusted EBITDA for the Trailing Twelve Months Ended
Supplemental Data EBITDA and Adjusted EBITDA for the Trailing Twelve Months Ended June 30, 2023 ($ in millions) Trailing Twelve Quarter Ended Months Ended September 30, December 31, March 31, June 30, June 30, 2022 2022 2023 2023 2023 Net income (loss) $ 26.5 $ 13.9 $ (5.1) $ 8.0 $ 43.3 Interest exp
Slide 14: Adjusted Earnings Per Share Reconciliation
Supplemental Data Adjusted Earnings Per Share Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Diluted earnings per share $ 0.07 $ 0.19 $ 0.02 $ 0.20 Restructuring and acquisition-related costs 0.07 0.08 0.11 0.14 Debt refinancing and redemption costs - - - 0.
Slide 15: 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net cash provided by operating activities $ 132.8 $ 146.7 $ 164.9 $ 215.2 Capital expenditures net of proceeds from the sale of proper
Slide 16: Net Debt and Net Leverage Ratio
Supplemental Data Net Debt and Net Leverage Ratio ($ in millions) June 30, 2023 Current portion of long term debt $ 16.3 Long-term debt, net 2,853.9 Total debt, net 2,870.2 Less: Cash and cash equivalents 511.1 Net debt at end of period 2,359.1 Adjusted LTM EBITDA $ 723.1 Net Leverage Ratio 3.3x 16
Slide 17: Segment Financial Information
Supplemental Data Segment Financial Information ($ in millions) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Segment Sales Driveline $ 1,086.5 $ 1,024.7 $ 2,100.3 $ 2,070.1 Metal Forming 634.2 557.7 1,253.3 1,082.8 Total Sales 1,720.7 1,582.4 3,353.6 3,152.9 Intersegment
Slide 18: 2023 Targeted 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) $ (5) $ 45 Net cash provided by operating activities $ 435 $ 510 Interest expense 200 200 Capital expenditures net of proceeds from the sale of property, plant (2
Slide 19: 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 20: www.aam.com
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