Dauch Corporation · NYSE:DCH
Dauch — American Axle & Manufacturing Holdings — Q3 2023 Earnings Presentation
21 slides from Dauch's earnings presentation, Nov 3, 2023
Slide 1: Third Quarter 2023 Earnings Call
Third 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: 3Q 2023 AAM Financial Highlights
3Q 2023 AAM Financial Highlights $1.55B $157M $136M Quarterly Third Quarter Adjusted Free Sales Adjusted EBITDA Cash Flow AAM Delivered Solid Adjusted Free Cash Flow * For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and non-GAAP reconciliations, please see the attached appendix. 3
Slide 4: Performance Overview
Performance Overview (as of November 3, 2023) Quarter Status 3Q Year To Date Issues Status Update 1-3Q23 4Q23 1Q24 2Q24 • Customer Production • Situation is improving from prior years. Volatility • Managing costs as disruptions occur. • UAW Work Stoppage • Monitor the situation and restart of operat
Slide 5: Business Update
Business Update ELECTRIC Van ELECTRIC Truck JETOUR (Chery) FAW Plug-In Hybrid Skywell Auto AAM to supply e-Beam AAM to provide power AAM to supply awarded AAM to axles for a future 2.5T transfer units (PTU) independent front supply 2-in-1 e-Beam light electric truck and rear drive modules axles for
Slide 6: 2023 Financial Outlook
2023 Financial Outlook (as of November 3, 2023) 2023 Financial Targets Full Year Sales $6.0 to $6.1 billion Adjusted EBITDA $660 to $685 million Adjusted Free Cash Flow $200 to $215 million • These targets are based on AAM’s production estimates of key programs that we support and the current operat
Slide 7: 3Q Financial Results
3Q Financial Results Three Months Ended September 30, 2023 2022 (dollars in millions, except per share data) Difference Net sales $ 1,551.9 $ 1,535.2 $ 16.7 Gross profit $ 130.6 $ 177.4 $ (46.8) Gross margin 8.4% 11.6% -3.1% Selling, general and administrative expenses $ 81.8 $ 85.7 $ (3.9) SG&A as
Slide 8: 2023 3Q Revenue Walk (Yr/Yr)
2023 3Q Revenue Walk (Yr/Yr) $ in millions $55 $1,571 21.0% $1,552 Margin$1,535 ($15) ($19) ($4) 19.0% Margin 15.1% 18.2% Margin 17.1% 13.3% 3Q 2022 Sales Pricing Volume, Mix UAW Work 3Q 2023 Metal Markets 3Q 2023 Sales & Other Stoppage Sales Subtotal & FX Note: Chart not to scale 8
Slide 9: 2023 3Q Adjusted EBITDA Walk (Yr/Yr)
2023 3Q Adjusted EBITDA Walk (Yr/Yr) $ in millions 21.0% Margin $15 $198 ($1) ($4) ($4) ($13) 19.0% $161 Margin $157 ($30) 15.1% ($4) 18.2% Margin 17.1% 13.3% 3Q 2022 Adjusted Pricing Volume, Mix R&D UAW Work Higher Net inflation, 3Q 2023 Adjusted Metal Markets 3Q 2023 Adjusted EBITDA & Other Stoppa
Slide 10: Adjusted Free Cash Flow and Credit Profile
Adjusted Free Cash Flow and Credit Profile Cash Flow and Debt Metrics 3Q 2023 Adjusted Free Cash Flow $135.8 million Net Debt $2.2 billion Net Leverage Ratio 3.3x Liquidity ~$1.6 billion AAM Maintains Strong Liquidity Note: For definitions and reconciliations of non-GAAP financial measures, please s
Slide 11: Supplemental Data
Supplemental Data
Slide 12: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such informa
Slide 13: EBITDA and Adjusted EBITDA Reconciliation
Supplemental Data EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) $ (17.4) $ 26.5 $ (14.5) $ 50.4 Interest expense 50.8 44.8 151.5 132.2 Income tax expense (benefit) (2.0) (5.7) 3.3 (2.1)
Slide 14: EBITDA and Adjusted EBITDA for the Trailing Twelve Months
Supplemental Data EBITDA and Adjusted EBITDA for the Trailing Twelve Months Ended September 30, 2023 ($ in millions) Trailing Twelve Quarter Ended Months Ended December 31, March 31, June 30, September 30, September 30, 2022 2023 2023 2023 2023 Net income (loss) $ 13.9 $ (5.1) $ 8.0 $ (17.4) $ (0.6)
Slide 15: Adjusted Earnings (Loss) Per Share Reconciliation
Supplemental Data Adjusted Earnings (Loss) Per Share Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Diluted earnings (loss) per share $ (0.15) $ 0.22 $ (0.12) $ 0.42 Restructuring and acquisition-related costs 0.04 0.07 0.14 0.22 Debt refinancing
Slide 16: 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net cash provided by operating activities $ 178.3 $ 85.2 $ 343.2 $ 300.4 Capital expenditures net of proceeds from the sale
Slide 17: Net Debt and Net Leverage Ratio
Supplemental Data Net Debt and Net Leverage Ratio ($ in millions) September 30, 2023 Current portion of long term debt $ 24.5 Long-term debt, net 2,833.9 Total debt, net 2,858.4 Less: Cash and cash equivalents 615.6 Net debt at end of period 2,242.8 Adjusted LTM EBITDA $ 681.5 Net Leverage Ratio 3.3
Slide 18: Segment Financial Information
Supplemental Data Segment Financial Information ($ in millions) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Segment Sales Driveline $ 1,061.2 $ 1,043.2 $ 3,161.5 $ 3,113.3 Metal Forming 624.8 634.1 1,878.1 1,716.9 Total Sales 1,686.0 1,677.3 5,039.6 4,830.2 I
Slide 19: 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 loss $ (65) $ (45) Net cash provided by operating activities $ 380 $ 395 Interest expense 200 200 Capital expenditures net of proceeds from the sale of property, (200) (200) In
Slide 20: 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 21: www.aam.com
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