MPG Reports 2016 First Quarter Results
OREANDA-NEWS. Metaldyne Performance Group Inc. (NYSE: MPG), a leading provider of highly-engineered components for use in powertrain and safety-critical platforms for the global light, commercial and industrial vehicle markets, today reported the following financial results for its first quarter ended April 3, 2016.
First Quarter Financial Highlights:
- Net sales of $739.5 million, compared to $765.2 million in Q1 2015
- Gross profit was $136.5 million for the quarter, an increase of 6% from Q1 2015
- Net income attributable to stockholders was $24.9 million resulting in Diluted EPS of $0.36
- Adjusted Net Income Attributable to Stockholders of $38.0 million resulting in Adjusted EPS of $0.55
- Adjusted EBITDA of $137.7 million, compared to $132.6 million in Q1 2015, representing a year-over-year increase of 4%
- Adjusted EBITDA margin increased to 18.6% from 17.3% for the same quarter last year
- Capital expenditures on an accrual basis were $45.0 million
- Adjusted Free Cash Flow, defined as Adjusted EBITDA less capital expenditures on an accrual basis, was $92.7 million, an increase of $6.2 million from Q1 2015
- Free Cash Flow, defined as net cash provided by operating activities less capital expenditures stated on the Company's condensed consolidated statement of cash flows, was $8.7 million
Recent Treasury Actions:
- Our board of directors authorized a 3% increase in our quarterly dividend to $0.0925 per share, payable June 21, 2016 to stockholders of record on June 7, 2016.
- On February 24, 2016 our board of directors authorized a $25 million share repurchase program. As of April 3, 2016 the cumulative shares repurchased totaled 191,645 shares at an average purchase price per share of $15.21
Commenting on the Company's results, George Thanopoulos, Chief Executive Officer of MPG, stated, "We are extremely pleased with our first quarter results. Expansion of our margins and continued strong EBITDA despite certain macro headwinds show the strength in our business. Our solid cash flow gave us flexibility to increase our dividend, start our share repurchase program and build cash on the balance sheet. We are continuing to win new business and focus on fast growing powertrain applications. We are looking forward to a successful year in 2016."
Business Outlook:
For fiscal year 2016, MPG maintains guidance as follows:
- Net sales between $2.75 and $2.95 billion
- Adjusted EBITDA between $500 and $540 million
- Capital expenditures between $190 and $210 million
- Adjusted Free Cash Flow between $310 and $330 million
- Free Cash Flow ~$125 million
- Income before tax between $131 and $171 million
About MPG:
MPG is a leading provider of highly-engineered components for use in powertrain and safety-critical platforms for the global light, commercial and industrial vehicle markets. MPG produces these components using complex metal-forming manufacturing technologies and processes for a global customer base of vehicle OEMs and Tier I suppliers. MPG's metal-forming manufacturing technologies and processes include aluminum die casting, forging, iron casting and powder metal forming as well as advanced machining and assembly. Headquartered in Southfield, Michigan, MPG has a global footprint spanning 60 locations in 13 countries across North America, South America, Europe and Asia with approximately 12,000 employees.
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METALDYNE PERFORMANCE GROUP INC. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In millions except per share data) |
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April 3, 2016 |
December 31, 2015 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
172.9 |
168.2 |
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Receivables, net: |
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Trade |
359.0 |
309.1 |
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Other |
34.2 |
35.4 |
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Total receivables, net |
393.2 |
344.5 |
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Inventories |
185.5 |
186.8 |
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Prepaid expenses |
16.1 |
15.0 |
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Other assets |
17.9 |
21.5 |
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Total current assets |
785.6 |
736.0 |
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Property and equipment, net |
798.5 |
786.0 |
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Goodwill |
907.7 |
907.7 |
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Amortizable intangible assets, net |
691.5 |
708.9 |
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Deferred income taxes |
4.3 |
1.7 |
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Other assets |
16.6 |
17.3 |
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Total assets |
$ |
3,204.2 |
3,157.6 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable |
$ |
254.0 |
248.9 |
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Accrued compensation |
45.0 |
55.2 |
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Accrued liabilities |
93.7 |
66.8 |
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Short-term debt |
0.5 |
0.7 |
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Current maturities, long-term debt and capital lease obligations |
13.5 |
14.5 |
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Total current liabilities |
406.7 |
386.1 |
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Long-term debt, less current maturities |
1,835.3 |
1,827.1 |
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Capital lease obligations, less current maturities |
22.6 |
22.5 |
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Deferred income taxes |
221.1 |
231.3 |
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Other long-term liabilities |
52.4 |
51.6 |
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Total liabilities |
2,538.1 |
2,518.6 |
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Stockholders' equity: |
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Common Stock: par $0.001, 400.0 authorized, 68.0 and 67.9 shares issued and |
0.1 |
0.1 |
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|
Common stock held in treasury, at cost: 0.2 and zero shares, respectively |
(2.9) |
— |
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Paid-in capital |
860.2 |
856.2 |
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|
Deficit |
(144.2) |
(162.9) |
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Accumulated other comprehensive loss |
(50.1) |
(57.3) |
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Total equity attributable to stockholders |
663.1 |
636.1 |
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Noncontrolling interest |
3.0 |
2.9 |
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Total stockholders' equity |
666.1 |
639.0 |
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Total liabilities and stockholders' equity |
$ |
3,204.2 |
3,157.6 |
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METALDYNE PERFORMANCE GROUP INC. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In millions except per share amounts) |
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Quarter Ended |
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April 3, 2016 |
March 29, 2015 |
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Net sales |
$ |
739.5 |
765.2 |
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Cost of sales |
603.0 |
636.7 |
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Gross profit |
136.5 |
128.5 |
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Selling, general and administrative expenses |
60.8 |
56.2 |
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Operating income |
75.7 |
72.3 |
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Interest expense, net |
26.5 |
27.6 |
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Other, net |
15.0 |
(5.2) |
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Other expense, net |
41.5 |
22.4 |
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Income before tax |
34.2 |
49.9 |
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Income tax expense |
9.2 |
17.3 |
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Net income |
25.0 |
32.6 |
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Income attributable to noncontrolling interest |
0.1 |
0.2 |
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Net income attributable to stockholders |
$ |
24.9 |
32.4 |
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Weighted average shares outstanding - Basic |
68.0 |
67.1 |
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Weighted average shares outstanding - Diluted |
69.4 |
68.6 |
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Cash dividends declared per share |
$ |
0.09 |
0.09 |
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Net income per share attributable to stockholders |
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Basic |
0.37 |
0.48 |
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Diluted |
0.36 |
0.47 |
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METALDYNE PERFORMANCE GROUP INC. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In millions) |
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Quarter Ended |
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April 3, 2016 |
March 29, 2015 |
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Cash flows from operating activities: |
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Net income |
$ |
25.0 |
32.6 |
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Adjustments to reconcile net income to cash provided by operating activities: |
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Depreciation and amortization |
55.2 |
56.4 |
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Debt fee amortization |
0.8 |
0.8 |
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Loss on fixed asset dispositions |
0.3 |
0.2 |
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Deferred income taxes |
(12.3) |
(0.3) |
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Noncash interest expense |
0.3 |
0.2 |
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Stock-based compensation expense |
3.7 |
3.3 |
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Foreign currency adjustment |
11.4 |
0.5 |
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Other |
0.1 |
0.1 |
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Changes in assets and liabilities: |
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Receivables, net |
(47.2) |
(101.0) |
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Inventories |
1.7 |
7.0 |
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Accounts payable, accrued liabilities, and accrued compensation |
19.1 |
60.7 |
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Other, current |
2.8 |
(7.6) |
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Other, non-current |
(0.3) |
(0.3) |
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Net cash provided by operating activities |
60.6 |
52.6 |
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Cash flow from investing activities: |
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Capital expenditures |
(51.9) |
(60.7) |
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Proceeds from sale of fixed assets |
0.1 |
0.1 |
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Capitalized patent costs |
(0.1) |
(0.1) |
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Net cash used for investing activities |
(51.9) |
(60.7) |
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Cash flows from financing activities: |
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Cash dividends |
(0.1) |
— |
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Proceeds from stock issuance |
0.8 |
— |
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Purchases of treasury stock |
(2.9) |
— |
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Excess tax benefit on stock-based compensation |
0.4 |
— |
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Cash settlement of equity awards |
(0.9) |
— |
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Payments on long-term debt |
(3.3) |
(10.2) |
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Other debt, net |
(1.6) |
(0.5) |
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Payment of offering related costs |
— |
(0.1) |
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Net cash used for financing activities |
(7.6) |
(10.8) |
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Effect of exchange rates on cash |
3.6 |
(5.6) |
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Net increase (decrease) in cash and cash equivalents |
$ |
4.7 |
(24.5) |
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Cash and cash equivalents: |
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Cash and cash equivalents, beginning of period |
168.2 |
156.5 |
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Net increase (decrease) in cash and cash equivalents |
4.7 |
(24.5) |
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Cash and cash equivalents, end of period |
$ |
172.9 |
132.0 |
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Supplementary cash flow information: |
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Cash paid for income taxes, net |
$ |
8.4 |
4.9 |
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Cash paid for interest |
13.8 |
16.0 |
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Noncash transactions: |
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Capital expenditures in accounts payables |
22.6 |
21.6 |
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Dividends declared, not yet paid |
6.1 |
6.1 |
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Dividends declared on restricted stock awards, not yet vested |
0.3 |
— |
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METALDYNE PERFORMANCE GROUP INC. |
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RECONCILIATION OF ADJUSTED EPS |
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TO US GAAP DILUTED EPS |
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(In millions except per share amounts) |
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Quarter Ended |
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April 3, 2016 |
March 29, 2015 |
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Net income attributable to stockholders |
$ |
24.9 |
32.4 |
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Weighted average shares outstanding - Diluted |
69.4 |
68.6 |
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Net income per share attributable to stockholders - Diluted |
$ |
0.36 |
0.47 |
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Adjustments to Arrive at Adjusted Net Income Attributable to Stockholders |
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Loss (gain) on re-measurement of Euro Term Loan |
$ |
11.0 |
— |
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|
Loss (gain) on foreign currency transactions - other |
3.3 |
(5.0) |
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Non-recurring acquisition related items |
1.3 |
(0.3) |
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Non-recurring operational items (1) |
2.2 |
0.4 |
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Tax impact of adjustments to net income attributable to stockholders |
(4.7) |
1.5 |
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Adjusted Net Income Attributable to Stockholders |
$ |
38.0 |
29.0 |
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Weighted average shares outstanding - Diluted |
69.4 |
68.6 |
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Adjusted EPS |
$ |
0.55 |
0.42 |
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(1) Non-recurring operational items include charges for disposed operations and other. |
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RECONCILIATION OF US GAAP INCOME BEFORE TAX TO ADJUSTED |
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EBITDA AND ADJUSTED FREE CASH FLOW |
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(In millions) |
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Quarter Ended |
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April 3, 2016 |
March 29, 2015 |
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Income before tax |
$ |
34.2 |
49.9 |
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Addbacks to Arrive at Unadjusted EBITDA |
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Interest expense, net |
26.5 |
27.6 |
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Depreciation and amortization |
55.2 |
56.4 |
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Unadjusted EBITDA |
$ |
115.9 |
133.9 |
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|
Adjustments to Arrive at Adjusted EBITDA |
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Loss (gain) on foreign currency |
14.3 |
(5.0) |
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Loss on fixed assets |
0.3 |
0.2 |
||||||
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Debt transaction expenses |
— |
0.1 |
||||||
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Stock-based compensation expense |
3.7 |
3.3 |
||||||
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Non-recurring acquisition related items |
1.3 |
(0.3) |
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Non-recurring operational items (1) |
2.2 |
0.4 |
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Adjusted EBITDA |
$ |
137.7 |
132.6 |
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|
Capital expenditures |
45.0 |
46.1 |
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Adjusted Free Cash Flow |
$ |
92.7 |
86.5 |
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(1) Non-recurring operational items include charges for disposed operations and other. |
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METALDYNE PERFORMANCE GROUP INC. |
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RECONCILIATION OF 2016 GUIDANCE |
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INCOME BEFORE TAX TO ADJUSTED EBITDA AND ADJUSTED FREE CASH FLOW |
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(In millions) |
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2016 Guidance |
2016 Guidance |
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Low End of Range |
High End of Range |
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|
Income before tax |
$ |
131.2 |
171.2 |
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|
Addbacks to Arrive at Unadjusted EBITDA |
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Interest expense, net |
104.4 |
104.4 |
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Depreciation and amortization |
238.4 |
238.4 |
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Unadjusted EBITDA |
474.0 |
514.0 |
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Adjustments to Arrive at Adjusted EBITDA |
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Stock-based compensation expense |
22.9 |
22.9 |
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Non-recurring operational items (1) |
3.1 |
3.1 |
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Adjusted EBITDA |
$ |
500.0 |
540.0 |
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Capital expenditures |
(190.0) |
(210.0) |
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Adjusted Free Cash Flow |
$ |
310.0 |
330.0 |
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|
(1) Non-recurring operational items include charges for disposed operations and other. |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mpg-reports-2016-first-quarter-results-announces-055-adjusted-eps-and-re-affirms-guidance-for-2016-300263355.html
SOURCE Metaldyne Performance Group Inc.
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