| | |
Page
|
| |||
| | | | S-ii | | | |
| | | | S-ii | | | |
| | | | S-iii | | | |
| | | | S-1 | | | |
| | | | S-2 | | | |
| | | | S-4 | | | |
| | | | S-7 | | | |
| | | | S-13 | | | |
| | | | S-14 | | | |
| | | | S-16 | | | |
| | | | S-18 | | | |
| | | | S-31 | | | |
| | | | S-35 | | | |
| | | | S-40 | | | |
| | | | S-40 | | |
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 5 | | | |
| | | | 32 | | | |
| | | | 32 | | | |
| | | | 34 | | | |
| | | | 36 | | | |
| | | | 40 | | | |
| | | | 43 | | | |
| | | | 45 | | | |
| | | | 46 | | | |
| | | | 46 | | |
| | |
Years Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
(in millions, except per share data)
|
| |||||||||||||||||||||||||||
Statement of operations data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 4,710.8 | | | | | $ | 6,530.9 | | | | | $ | 7,270.4 | | | | | $ | 2,708.4 | | | | | $ | 1,858.8 | | |
Gross profit
|
| | | | 582.7 | | | | | | 902.6 | | | | | | 1,140.4 | | | | | | 417.1 | | | | | | 96.4 | | |
Selling, general and administrative expenses
|
| | | | 313.9 | | | | | | 364.7 | | | | | | 385.7 | | | | | | 176.2 | | | | | | 164.1 | | |
Amortization of intangibles
|
| | | | 86.6 | | | | | | 95.4 | | | | | | 99.4 | | | | | | 42.9 | | | | | | 43.4 | | |
Impairment charges
|
| | | | 510.0(a) | | | | | | 665.0(a)(b) | | | | | | 485.5(a) | | | | | | — | | | | | | 510.0(a) | | |
Restructuring and acquisition-related costs
|
| | | | 67.2 | | | | | | 57.8 | | | | | | 78.9 | | | | | | 33.4 | | | | | | 28.9 | | |
Gain (loss) on sale of business
|
| | | | (1.0)(b) | | | | | | (21.3)(b) | | | | | | 15.5(c) | | | | | | (2.7) | | | | | | (1.0) | | |
Operating income (loss)
|
| | | | (396.0) | | | | | | (301.6) | | | | | | 106.4 | | | | | | 161.9 | | | | | | (651.0) | | |
Net interest expense
|
| | | | 200.7 | | | | | | 211.5 | | | | | | 214.3 | | | | | | 95.5 | | | | | | 100.3 | | |
Gain on bargain purchase of
business |
| | | | — | | | | | | 10.8(d) | | | | | | — | | | | | | — | | | | | | — | | |
Gain on settlement of capital lease
|
| | | | — | | | | | | — | | | | | | 15.6(e) | | | | | | — | | | | | | — | | |
Net income (loss)
|
| | |
|
(561.1)(f)(g)
|
| | | |
|
(484.1)(f)(g)(h)
|
| | | |
|
(56.8)(f)(g)
|
| | | |
|
54.6(f)(g)
|
| | | |
|
(714.4)(f)(g)
|
| |
Net income (loss) attributable to
AAM |
| | |
|
(561.3)(f)(g)
|
| | | |
|
(484.5)(f)(g)(h)
|
| | | |
|
(57.5)(f)(g)
|
| | | |
|
54.6(f)(g)
|
| | | |
|
(714.5)(f)(g)
|
| |
Diluted earnings (loss) per share
|
| | | $ | (4.96) | | | | | $ | (4.31) | | | | | $ | (0.51) | | | | | $ | 0.46 | | | | | $ | (6.33) | | |
Balance sheet data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 557.0 | | | | | $ | 532.0 | | | | | $ | 476.4 | | | | | $ | 587.7 | | | | | $ | 893.3 | | |
Total assets
|
| | | | 5,916.3 | | | | | | 6,644.6 | | | | | | 7,510.7 | | | | | | 5,844.9 | | | | | | 6,055.0 | | |
Total long-term debt, net
|
| | | | 3,441.3 | | | | | | 3,612.3 | | | | | | 3,686.8 | | | | | | 3,118.5 | | | | | | 3,561.4 | | |
Total AAM stockholders’ equity
|
| | | | 370.5 | | | | | | 977.6 | | | | | | 1,483.9 | | | | | | 441.3 | | | | | | 196.2 | | |
Dividends declared per share
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Years Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||||||||
Statement of cash flows data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash provided by (used in) operating activities
|
| | | $ | 454.7 | | | | | $ | 559.6 | | | | | $ | 771.5 | | | | | $ | 346.2 | | | | | $ | (3.1) | | |
Cash used in investing activities
|
| | | | (218.4) | | | | | | (306.6) | | | | | | (478.2) | | | | | | (74.3) | | | | | | (108.8) | | |
Cash provided by (used in) financing activities
|
| | | | (214.5) | | | | | | (200.0) | | | | | | (184.5) | | | | | | (240.2) | | | | | | 480.2 | | |
Other data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | $ | 521.9 | | | | | $ | 536.9 | | | | | $ | 528.8 | | | | | $ | 285.6 | | | | | $ | 268.7 | | |
Capital expenditures
|
| | | | 215.6 | | | | | | 433.3 | | | | | | 524.7 | | | | | | 82.4 | | | | | | 105.6 | | |
Proceeds (payments) from sale of business, net
|
| | | | — | | | | | | 141.2(b) | | | | | | 47.1(c) | | | | | | (0.7) | | | | | | (4.4) | | |
Acquisition of business, net of cash acquired
|
| | | | — | | | | | | 9.4 | | | | | | 1.3 | | | | | | 4.9 | | | | | | — | | |
Purchase buyouts of leased equipment
|
| | | | 0.1 | | | | | | 0.9 | | | | | | 0.5 | | | | | | — | | | | | | 0.2 | | |
| | |
Year Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||||||||
(in millions, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Net income (loss)
|
| | | $ | (561.1) | | | | | $ | (484.1) | | | | | $ | (56.8) | | | | | $ | 54.6 | | | | | $ | (714.4) | | |
Interest expense
|
| | | | 212.3 | | | | | | 217.3 | | | | | | 216.3 | | | | | | 101.0 | | | | | | 106.1 | | |
Income tax expense (benefit)
|
| | | | (49.2) | | | | | | (48.9) | | | | | | (57.1) | | | | | | 11.2 | | | | | | (40.6) | | |
Depreciation and amortization
|
| | | | 521.9 | | | | | | 536.9 | | | | | | 528.8 | | | | | | 285.6 | | | | | | 268.7 | | |
EBITDA
|
| | | $ | 123.9 | | | | | $ | 221.2 | | | | | $ | 631.2 | | | | | $ | 452.4 | | | | | $ | (380.2) | | |
Restructuring and acquisition-related costs
|
| | | | 67.2 | | | | | | 57.8 | | | | | | 78.9 | | | | | | 33.4 | | | | | | 28.9 | | |
Debt refinancing and redemption costs
|
| | | | 7.9 | | | | | | 8.4 | | | | | | 19.4 | | | | | | 2.4 | | | | | | 1.5 | | |
Loss (gain) on sale of business
|
| | | | 1.0 | | | | | | 21.3 | | | | | | (15.5) | | | | | | 2.7 | | | | | | 1.0 | | |
Impairment charges
|
| | | | 510.0 | | | | | | 665.0 | | | | | | 485.5 | | | | | | — | | | | | | 510.0 | | |
Pension settlement
|
| | | | 0.5 | | | | | | 9.8 | | | | | | — | | | | | | — | | | | | | — | | |
Non-recurring items(b)
|
| | | | 9.3 | | | | | | (13.2) | | | | | | (15.6) | | | | | | (5.4) | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 719.8 | | | | | $ | 970.3 | | | | | $ | 1,183.9 | | | | | $ | 485.5 | | | | | $ | 161.2 | | |
as % of net sales
|
| | | | 15.3% | | | | | | 14.9% | | | | | | 16.3% | | | | | | 17.9% | | | | | | 8.7% | | |
| | |
As of June 30, 2021
|
| |||||||||
(dollars in millions)
|
| |
Historical
|
| |
As Adjusted
|
| ||||||
Cash and cash equivalents(1)
|
| | | $ | 587.7 | | | | | $ | 456.8 | | |
Total debt:
|
| | | | | | | | | | | | |
Revolving Credit Facility(2)
|
| | | | — | | | | | | — | | |
Term Loan A Facility
|
| | | | 314.5 | | | | | | 314.5 | | |
Term Loan B Facility
|
| | | | 850.0 | | | | | | 850.0 | | |
6.875% Notes due 2028
|
| | | | 400.0 | | | | | | 400.0 | | |
6.50% Notes due 2027
|
| | | | 500.0 | | | | | | 500.0 | | |
6.25% Notes due 2026
|
| | | | 400.0 | | | | | | 400.0 | | |
6.25% Notes due 2025(3)
|
| | | | 700.0 | | | | | | — | | |
% Notes due 2029 offered hereby
|
| | | | — | | | | | | 600.0 | | |
Foreign credit facilities and other
|
| | | | 108.7 | | | | | | 108.7 | | |
Total debt
|
| | | | 3,273.2 | | | | | | 3,173.2 | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, par value $0.01 per share; 150.0 million shares authorized;
122.5 million shares issued |
| | | | 1.3 | | | | | | 1.3 | | |
Paid-in capital
|
| | | | 1,343.3 | | | | | | 1,343.3 | | |
Accumulated Deficit(4)
|
| | | | (265.2) | | | | | | (296.6) | | |
Treasury stock at cost, 8.4 million shares
|
| | | | (216.2) | | | | | | (216.2) | | |
Accumulated other comprehensive loss, net of tax
|
| | | | (421.9) | | | | | | (421.9) | | |
Noncontrolling interests in subsidiaries
|
| | | | — | | | | | | — | | |
Total stockholders’ equity
|
| | | | 441.3 | | | | | | 409.9 | | |
Total capitalization
|
| | | $ | 3,714.5 | | | | | $ | 3,583.1 | | |
Period
|
| |
Redemption
Price |
| |||
2024 | | | | | % | | |
2025 | | | | | % | | |
2026 and thereafter
|
| | | | 100.000% | | |
Underwriter
|
| |
Principal amount
|
| |||
BofA Securities, Inc.
|
| | | | | | |
Barclays Capital Inc.
|
| | | | | | |
Citigroup Global Markets Inc.
|
| | | | | | |
J.P. Morgan Securities LLC
|
| | | | | | |
RBC Capital Markets, LLC
|
| | | | | | |
BMO Capital Markets Corp.
|
| | | | | | |
PNC Capital Markets LLC
|
| | | | | | |
U.S. Bancorp Investments, Inc.
|
| | | | | | |
Citizens Capital Markets, Inc.
|
| | | | | | |
Huntington Securities, Inc.
|
| | | | | | |
Mizuho Securities USA LLC
|
| | | | | | |
KeyBanc Capital Markets Inc.
|
| | | | | | |
HSBC Securities (USA) Inc.
|
| | | | | | |
Total
|
| | | $ | 600,000,000 | | |
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 5 | | | |
| | | | 32 | | | |
| | | | 32 | | | |
| | | | 34 | | | |
| | | | 36 | | | |
| | | | 40 | | | |
| | | | 43 | | | |
| | | | 45 | | | |
| | | | 46 | | | |
| | | | 46 | | |
|
Currency
|
| |
Principal Financial Center
|
|
|
U.S. dollars
|
| |
The City of New York
|
|
|
Australian dollars
|
| |
Sydney
|
|
|
Canadian dollars
|
| |
Toronto
|
|
|
New Zealand dollars
|
| |
Auckland
|
|
|
South African rand
|
| |
Johannesburg
|
|
|
Swiss francs
|
| |
Zurich
|
|
| | | | | | |
D×360
|
| | | |
|
Money Market Yield
|
| |
=
|
| | | | | ×100 | |
| | | | | | |
360−(D×M)
|
| | | |
| | | | | | |
D×N
|
| | | |
|
bond equivalent yield
|
| |
=
|
| | | | | ×100 | |
| | | | | | |
N−(D×M)
|
| | | |
G?$+-0[#"X-!HP8-!HP8-!HP8V
M%1<294R@Y%GC7&M]R Y*8Q#HTNH3]G.D) QQ6"%CWO9*F0P&.8^P$+XB(!X
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M$XCD?;K[,3W#0MJ"9(Q6DAR[,N!J=P+:,^W>.)!WZ'&K[7YMLAM[IO(H O?XB*;S3$1[-4+92I(
M\- *.$$5ZN-:KU]PR[5B
M5@%!#2M&A#%/GD=RAS)RHNZUWRY:%911([@E?K+ %6-0I\>NIUA&5F#[RR3-
M(I"D*HX5,L]==LIG"ZQPZM*5J'4V;ZGO3>YM*6(KPH-D<8/0B]'?)JS4'$Q.
MW&^GE-R9T!R5TXNG-"V:PH0IGN'H]U=.HIUEQ-0%S6I5%"0Q\1$4<:FF+TN&
M7D\XHM6":O=^2\? G?$+-0[#"XW'Q\P]-9_P UXTPY F42?7ZU1\,N]23!
M8T3"E$[ZR3HHB( JG 5YFZ>G+\)B(" :R^091-GV .4
M'^8TZ<*_Z6G&Y3%\'DR\,QO5Q4Y4Y B>NHX_DE8[%;)^W-V9Z^MP 'MK2(KL
M1=A2B* 1LITG(:54ZB'*JQ,&KPY/Z/\ 'KLZHOT_Z2!J0 CS4HWOWQ'N!W<9
MJ#5#C6A\H'V@1IK(!R4TM/3/ G?$+-0[#"XOE\B?$*4[
ME;+F:Y%H"B./ZI&4RO*K /06=O+MP[DWC00#Q=1T%7#-S[CL"4G\ B; I=^!FCG3A#$%E4$"FTS;YU5/Y:\.>2<$"7?5#$-RG6R !U
M'6>U*+5MC%-(O8<"=<[R$("8 4!$^P 8@_'+,];VOCFD G?$+-0[#"X=1\J292FN!.!SDZ 6C6]]AG29.O9)6-R;<
MD$>H3E# G?$+-0[#"X-%M7E2\WT.,^4%\7Y%EBM,*Y8D6:3V1>N.TQH5W$
MJ;&*MJAU![#6%DT@392QS=!4TBH.3G C0Y5+5Y7:T73F9G+ F373"I)V12
M;ED[@4[%?=0<+$T0@HWVVNSE)S@T:NLM)P&3F'D<+%(T6KWMGM>2V 'A--&:
MS6P%2S&6%5+3JRM4YAQ)1L\XSMF*LAQA)BHW.*.P?)D%,'+14#$S7GGZN\_=(YF6X4]_K6%CT!+F06SD[5H LQJ:[!78WF3"#@%@
M2G^7[Q-M_(K.)2P%UM-:;W6^+NDP-)5BHH%!2G8]8H*&*8)^4=ODS+MR]"J\
MJ\2:GZA;)#J%Z$R*TT'I674&=^MWDL8DE)WI&/J<0'T3$BHV$NP4^9&&-[4'
M,W/NU'SQL.5'+
@LWS\37LIZ>T=V>],YIIG/==Z3S*TO;]+J+J+
MZW01OU0BEXNLGV\:QPTINX#7%4UDJUGILLO 6^N3U4G6I$%74+9(B0@Y9LFZ
M1(X;*+QLHW:O$2.&ZA3D$Q Y# 8-P$!U5US:W-G*8+N-XIQ2JNI5A7:*A@#
MM&T8=K*,ZR?4%BN:9#=VU[ECDA9K>5)HF*DJP62-F0E6!! .P@@[G?$+-0[#"X=B\K9FW8\"N/2#8HD3/
M#7%X8!,8XBXD
MK 9F8A*)7W4-$DLB+0RRBH*3EFL#9=1PZ(!1(S!-%/I!1P52'93HZRRW4=]J
M5Z/>W3^!L^I(57CI],[@DGZ&@%*M5A=>]H/4>L>4&F>3< >VT[D=N1<^%4WD
MZRRFW+4 I#;P,BI&:UE+2-Q%(BOE\=N27^Y+D3R)2IS[OX?P.TJV,Z^_:JI*
ML+I?9F1GY"_69%=#K3>1L26N,&,:8#G(*)E7"9A*[V)\M/ZB_6+4&8"T:N46
M(2%"-TDK%C*]1O"\"JG12K#8^SV]2
MN*:[*.D!K;M":7RB1..UAS$7D@/F>"Q1KNC=U6:%4(W-Q!>G".>DKQT>X-
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M;"DL =*A=/#IK/+?4>2P9O;T'6H.)1YR0;'3_2U:5WBAZ<
2/WC/?9\?I*N8/[:9
MC[8/E#'1_P!E#^G/2/Y)3T[XA9J'887!HP8-!HP8NAX(^;7<<#MH;%>?22
M^0\2- ;1T'9FYO3;UC]@0I&Z#4GI*R86BKL2%*!6JARO&B("""BA")M=7%H?
MFK=Y&J97GO'<94*!7&V6(;@-OFT'<)XE'F20 N->_:6[#60HHN$P/LHF&^F2RW-,LSRS%WE
MLL=Q9N*54UWC:K#>IH=JL 1TC&G/6&B=:GS&S
M6M)