CONTACTS: Media Inquiries
Lin Cummins
(248) 435-7112
linda.cummins@arvinmeritor.com
Investor Inquiries
Brett Penzkofer
(248) 435-9426
brett.penzkofer@arvinmeritor.com
ArvinMeritor Reports Fourth-Quarter and Fiscal Year 2009 Results
Sees Improving Conditions in Global Markets
TROY, Mich. (Nov. 10, 2009) — ArvinMeritor, Inc. (NYSE: ARM) today reported financial results for its fourth quarter and full fiscal year ended Sept. 30, 2009.
Fourth-Quarter Highlights
· | Fourth-quarter sales were $984 million, approximately a four percent increase from the third quarter of fiscal year 2009; down from $1.5 billion in the fourth quarter of fiscal year 2008. |
· | On a GAAP basis, loss from continuing operations was $49 million for the fourth quarter, or a loss of $ 0.68 per diluted share, compared to a loss from continuing operations of $160 million, or $2.22 per diluted share, in the same period last year. |
· | Fourth-quarter EBITDA from continuing operations, before special items, was $40 million, approximately a 43-percent increase from the third quarter of fiscal year 2009, down from $87 million in the fourth quarter of fiscal year 2008. |
· | Cash flow from operations was $46 million compared to $157 million in the same period last year. |
· | Free cash flow (cash flow from operations, net of capital expenditures) was $22 million in the fourth quarte r compared to free cash flow of $103 million in the fourth quarter of fiscal year 2008. |
· | Complied with all debt covenants. |
· | Entered into new two-year U.S. Receivables Securitization Agreement. |
Fourth-Quarter Results 2009
“We are proud of our performance in the fourth quarter and the 2009 fiscal year,” said Chairman, CEO and President Chip McClure. “Our team has not only generated positive free cash flow for two consecutive quarters, we’ve also reported cost savings in our commercial vehicle businesses of $195 million, complied with all debt covenants, and completed various other actions that we believe will strengthen the company as we benefit from improving conditions in global markets – particularly in China, India and Brazil,” said McClure.
For the fourth quarter of fiscal year 2009, ArvinMeritor posted sales of $984 million, down thirty-six percent from the same period last year. This decrease in sales was primarily due to continued weakness in the global markets. As compared to the third quarter of fiscal year 2009, sales in the fourth quarter increased four percent as markets began to show signs of a recovery.
EBITDA from continuing operations (which excludes the wheels business), before special items, was $40 million, compared to $87 million in the fourth quarter of fiscal year 2008. EBITDA from continuing operations, before special items, increased 43 percent in the fourth quarter of fiscal year 2009 from the third quarter of fiscal year 2009. EBITDA margin from continuing operations, before special items, was 4.1 percent in the fourth quarter, down from 5.7 percent in the same period last year.
Loss from continuing operations, on a GAAP basis, was $49 million or $0.68 per diluted share, compared to a loss from continuing operations of $160 million or $2.22 per diluted share in the prior year.
Loss from continuing operations during the fourth quarter of fiscal year 2009, before special items, was $20 million, or $0.28 per diluted share, compared to income from continuing operations, before special items, of $26 million, or $0.35 per diluted share, a year ago. The loss from continuing operations, before special items, was driven by incremental tax expenses during the quarter due to the inability to recognize the tax benefit of losses in certain countries.
Free cash flow was $22 million in the fourth quarter compared to free cash flow of $103 million in the fourth quarter of fiscal year 2008. The company had $95 million in cash balances and an unutilized commitment of $611 million under its revolving credit facility as of Sept. 30, 2009.
Fiscal Year 2009 Results
· | Sales from continuing operations for fiscal year 2009 were $4.1 billion, down 36 percent from fiscal year 2008. |
· | On a GAAP basis, net loss was $1,212 million or a loss of $16.72 per diluted share in fiscal year 2009. |
· | On a GAAP basis, loss per diluted share from continuing operations was $14.86 in fiscal year 2009, compared to a loss of $ 1.60 per diluted share in fiscal year 2008. |
· | Loss per share from continuing operations, before special items, was $1.32 per diluted share in fiscal year 2009, compared to income from continuing operations, before special items, of $1.11 per diluted share in fiscal year 2008. |
· | Free cash outflow (cash outflow from operations, net of capital expenditures) of $429 million for the full fiscal year . |
“Our team remained focused and delivered on our 2009 priorities, while simultaneously managing the company through a global recession that affected all of our segments and customers worldwide,” said McClure. “As we transform into a commercial vehicle and industrial company, we believe the results we demonstrated in each of these areas will make ArvinMeritor a leaner, more efficient organization well-positioned for future growth.”
· | Accelerate restructuring and other cost reductions |
· | Continue operational performance improvements |
· | Complete LVS separation |
· | Continue to grow high-margin segments |
· | Innovate and strengthen technology |
Business Segments
ArvinMeritor has revised its reporting segments following the recent divestitures of several light vehicle businesses. For continuing operations, the company will now report results as defined within Commercial Truck, Industrial, Aftermarket & Trailer and Light Vehicle Systems. Of these four segments, Commercial Truck, Industrial, and Aftermarket & Trailer are considered core to ArvinMeritor.
· | Commercial Truck |
· | Industrial |
· | Aftermarket & Trailer |
· | Light Vehicle Systems |
2010 Priorities
ArvinMeritor has defined six key priorities for fiscal year 2010. The company believes it is imperative to execute well in each of these areas and has developed specific action plans to achieve strong results.
· | Remain focused on rigorous cost management to realize improved operating leverage. |
· | Continue transformation to focus the company on global commercial vehicle and industrial markets. |
· | Successfully execute as global markets recover. |
· | Drive innovation – accelerating new products and advanced fuel efficient technologies. |
· | Maintain focus on sustainable profitable growth. |
· | Continued focus on balance sheet management. |
Outlook for 2010
The company’s financial guidance for the first quarter of fiscal year 2010 is for expected results from continuing operations, which includes all four of ArvinMeritor’s current segments. For the first quarter of fiscal year 2010 (compared to the fourth fiscal quarter of 2009), the company anticipates:
· | Revenue to be higher. |
· | EBITDA, before special items, to be higher. |
· | Income before taxes, before special items, to be higher. |
In addition, on an absolute basis, the company anticipates:
· | Free cash flow, before factoring and restructuring, to be slightly negative. |
· | Free cash flow to be around breakeven. |
For fiscal year 2010, ArvinMeritor expects to report results in the following ranges for capital expenditures, interest expense, cash income taxes and income tax expense.
· | Capital expenditures in the range of $90 million to $110 million. |
· | Interest expense to be in the range of $95 million to $110 million. |
· | Cash income taxes to be in the range of $25 million to $50 million. |
· | Income tax expense, before special items, to be in the range of $40 million to $60 million. |
“With the steps we have taken to manage costs – in addition to our efforts to secure new multi-year contracts, develop advanced solutions for our customers, and focus talent and resources on strategic segments of our business – we believe we are on track to benefit from future recoveries in the global markets,” said McClure.
Fourth-Quarter and Fiscal Year 2009 Results Conference Call
ArvinMeritor will host a telephone conference call and Web cast to discuss the company’s full-year and fourth-quarter results for fiscal year 2009 on Tuesday, Nov. 10, 2009, at 9 a.m. (ET).
To participate, call (617) 213-4837 ten minutes prior to the start of the call. Please reference participant pass code 85768695 when dialing in. Investors can also listen to the conference call in real time — or the recorded version for 90 days afterward— by visiting www.arvinmeritor.com.
A replay of the call will be available from Noon on Nov. 10, to 11:59 p.m. Nov. 17, 2009, by calling (888) 286-8010 (within the United States) or (617) 801-6888 for international calls. Please refer to replay pass code number 45056962.
The company’s fourth-quarter and full-year financial results will be released prior to the conference call and Web cast. The news release will be issued through PR Newswire and First Call, and will be available on the company’s Web site.
To access the listen-only audio Web cast, visit the ArvinMeritor Web site at www.arvinmeritor.com and select the Web cast link from the home page or the investor page.
About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company marks its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For important information about the company, visit ArvinMeritor’s Web site at http://www.arvinmeritor.com.
Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “estimate,” “should,” “are likely to be,” “will” and similar expressions. There are risks and uncertainties relating to the company’s announced plans to divest the Body Systems business of LVS and any of the strategic options under which to pursue such divestiture. In the case of any sale of all or a portion of the business, these risks and uncertainties include the timing and certainty of completion of any sale, the terms upon which any purchase and sale agreement may be entered into (including potential substantial costs) and whether closing conditions (some of which may not be within the company’s control) will be met. In the case of any shut down of portions of the business, these risks and uncertainties include the amount of substantial severance and other payments as well as the length of time we will continue to have to operate the business, which is likely to be longer than in a sale scenario. There is also a risk of loss of customers of this business due to the uncertainty as to the future of this business. In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); whether our liquidity will be affected by declining vehicle production volumes in the future; availability and sharply rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of the company’s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; the ability to achieve anticipated or continued cost savings from reduction actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company’s debt; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company’s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
All earnings per share amounts are on a diluted basis. The company's fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter references relate to the company's fiscal year and fiscal quarters, unless otherwise stated.
Non-GAAP Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”) included throughout this press release, the company has provided information regarding income or loss from continuing operations, diluted earnings per share and operating income before special items, which are non-GAAP financial measures. These non-GAAP measures are defined as reported income or loss from continuing operations, reported diluted earnings or loss per share, and operating income or loss plus or minus special items. Other non-GAAP financial measures include “EBITDA,” and “free cash flow.” EBITDA is defined as income or loss from continuing operations before interest, income taxes, depreciation and amortization and loss on sale of receivables. We use EBITDA as the primary basis to evaluate the performance of each of our reportable segments. Free cash flow represents net cash provided by operating activities, less capital expenditures.
Management believes that the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the company's financial position and results of operations. In particular, management believes that EBITDA is a meaningful measure of performance as it is commonly utilized by management and the investment community to analyze operating performance and entity valuation; and free cash flow is useful in analyzing the company’s ability to service and repay its debt. Further, management uses these non-GAAP measures for planning and forecasting in future periods.
These non-GAAP measures should not be considered a substitute for the reported results prepared in accordance with GAAP. EBITDA should not be considered as an alternative to net income as an indicator of our operating performance or to cash flows as a measure of liquidity. Free cash flow should not be considered a substitute for cash provided by operating activities, or other cash flow statement data prepared in accordance with GAAP, or as a measure of financial position or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt or cash received from the divestitures of businesses or sales of other assets and thus does not reflect funds available for investment or other discretionary uses. These non-GAAP financial measures, as determined and presented by the company, may not be comparable to related or similarly titled measures reported by other companies.
Set forth on the following pages are reconciliations of these non-GAAP financial measures, if applicable, to the most directly comparable financial measures calculated and presented in accordance with GAAP.
ARVINMERITOR, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In millions, except per share amounts)
| Quarter Ended | Twelve Months Ended | ||||||||||||
September 30, | September 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||
Sales | $ | 984 | $ | 1,531 | $ | 4,108 | $ | 6,390 | ||||||
Cost of sales | (901 | ) | (1,389 | ) | (3,804 | ) | (5,828 | ) | ||||||
GROSS MARGIN | 83 | 142 | 304 | 562 | ||||||||||
Selling, general and administrative | (67 | ) | (110 | ) | (290 | ) | (415 | ) | ||||||
Restructuring costs | (4 | ) | — | (80 | ) | (9 | ) | |||||||
Asset impairments | — | — | (223 | ) | — | |||||||||
Other expense, net | — | (2 | ) | (1 | ) | (3 | ) | |||||||
OPERATING INCOME (LOSS) | 12 | 30 | (290 | ) | 135 | |||||||||
Equity in earnings of affiliates | 7 | 9 | 15 | 38 | ||||||||||
Interest expense, net | (21 | ) | (16 | ) | (86 | ) | (80 | ) | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (2 | ) | 23 | (361 | ) | 93 | ||||||||
Provision for income taxes | (43 | ) | (182 | ) | (707 | ) | (197 | ) | ||||||
Minority interests | (4 | ) | (1 | ) | (9 | ) | (11 | ) | ||||||
LOSS FROM CONTINUING OPERATIONS | (49 | ) | (160 | ) | (1,077 | ) | (115 | ) | ||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 37 | 7 | (135 | ) | 14 | |||||||||
NET LOSS | $ | (12 | ) | $ | (153 | ) | $ | (1,212 | ) | $ | (101 | ) | ||
DILUTED EARNINGS (LOSS) PER SHARE | ||||||||||||||
Continuing operations | $ | (0.68 | ) | $ | (2.22 | ) | $ | (14.86 | ) | $ | (1.60 | ) | ||
Discontinued operations | 0.51 | 0.10 | (1.86 | ) | 0.20 | |||||||||
Diluted loss per share | $ | (0.17 | ) | $ | (2.12 | ) | $ | (16.72 | ) | $ | (1.40 | ) | ||
Diluted average common shares outstanding | 72.7 | 72.2 | 72.5 | 72.1 |
ARVINMERITOR, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited, In millions)
|
| September 30, |
| September 30, |
| |||
|
| 2009 |
| 2008 |
| |||
ASSETS: |
|
|
|
|
|
|
| |
Cash and cash equivalents |
| $ | 95 | $ | 497 |
| ||
Receivables, trade and other, net |
|
| 694 |
| 1,114 |
| ||
Inventories |
|
| 374 |
| 623 |
| ||
Other current assets |
|
| 97 |
| 218 |
| ||
Assets of discontinued operations | 56 | — | ||||||
Net property |
|
| 445 |
| 775 |
| ||
Goodwill |
|
| 438 |
| 522 |
| ||
Other assets |
|
| 309 |
| 925 |
| ||
TOTAL ASSETS |
| $ | 2,508 | $ | 4,674 |
| ||
|
|
|
|
|
| |||
LIABILITIES AND SHAREOWNERS’ EQUITY (DEFICIT) |
|
|
|
|
| |||
Short-term debt |
| $ | 97 | $ | 240 |
| ||
Accounts payable |
|
| 674 |
| 1,287 |
| ||
Other current liabilities |
|
| 411 |
| 610 |
| ||
Liabilities of discontinued operations | 107 | — | ||||||
Long-term debt |
|
| 1,080 |
| 1,063 |
| ||
Retirement benefits |
|
| 1,077 |
| 690 |
| ||
Other liabilities |
|
| 310 |
| 247 |
| ||
Minority interests |
|
| 29 |
| 75 |
| ||
Shareowners' equity (deficit) |
|
| (1,277 | ) |
| 462 |
| |
TOTAL LIABILITIES AND SHAREOWNERS’ EQUITY (DEFICIT) |
| $ | 2,508 | $ | 4,674 |
|
ARVINMERITOR, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, In millions)
|
| Twelve Months Ended September 30, | |||||||
| 2009 |
| 2008 |
| |||||
OPERATING ACTIVITIES |
|
|
|
|
|
|
| ||
Loss from continuing operations |
| $ | (1,077 | ) | $ | (115 | ) | ||
Adjustments to loss from continuing operations: |
|
|
|
| |||||
Depreciation and amortization |
|
| 81 |
| 120 | ||||
Asset impairment charges | 223 | — | |||||||
Deferred income tax expense | 679 | 103 | |||||||
Restructuring costs, net of payments |
|
| 27 |
| (27 | ) | |||
Pension and retiree medical expense |
|
| 74 |
| 99 | ||||
Other adjustments to loss from continuing operations, net |
|
| 30 |
| 3 | ||||
Pension and retiree medical contributions |
|
| (100 | ) |
| (77 | ) | ||
Proceeds from terminations of interest rate swaps | — | 28 | |||||||
Changes in off-balance sheet receivable securitization and factoring |
|
| (275 | ) |
| 120 | |||
Changes in assets and liabilities |
|
| 59 |
| (74 | ) | |||
Cash flows provided by (used for) continuing operations |
|
| (279 | ) |
| 180 | |||
Cash flows used for discontinued operations, net |
|
| (16 | ) |
| (17 | ) | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |
|
| (295 | ) |
| 163 | |||
INVESTING ACTIVITIES |
|
|
|
| |||||
Capital expenditures |
|
| (111 | ) |
| (138 | ) | ||
Acquisitions of businesses and investments, net of cash acquired |
|
| — |
|
| (60 | ) | ||
Other investing activities | 10 |
| 14 |
| |||||
Net investing cash flows provided by discontinued operations |
|
| 115 |
| 24 | ||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES |
|
| 14 |
| (160 | ) | |||
FINANCING ACTIVITIES |
|
|
|
|
| ||||
Borrowings (payments) on prior accounts receivable securitization program |
|
| (111 | ) |
| 111 |
| ||
Borrowings on new accounts receivable securitization program | 83 | — | |||||||
Borrowings on revolving credit facility, net |
|
| 28 |
| — | ||||
Repayment of notes | (83 | ) | (5 | ) | |||||
Borrowings (payments) on lines of credit and other, net |
|
| (9 | ) |
| 13 | |||
Net change in debt |
|
| (92 | ) |
| 119 | |||
Debt issuance and extinguishment costs | — | (6 | ) | ||||||
Cash dividends |
|
| (8 | ) |
| (29 | ) | ||
Net financing cash flows provided by (used for) discontinued operations | (6 | ) | 13 | ||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
|
| (106 | ) |
| 97 | |||
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE |
|
|
|
| |||||
RATES ON CASH AND CASH EQUIVALENTS |
|
| (15 | ) |
| (12 | ) | ||
CHANGE IN CASH AND CASH EQUIVALENTS |
|
| (402 | ) |
| 88 | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
| 497 |
|
| 409 | |||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
| $ | 95 |
| $ | 497 |
|
ARVINMERITOR, INC.
CONSOLIDATED BUSINESS SEGMENT INFORMATION
(Unaudited, In millions)
Quarter Ended | Twelve Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||
Sales: | |||||||||||||
Commercial Truck | $ | 325 | $ | 690 | $ | 1,566 | $ | 2,922 | |||||
Industrial | 220 | 290 |
| 888 | 1,117 | ||||||||
Aftermarket & Trailer | 219 | 307 | 954 | 1,183 | |||||||||
Light Vehicle Systems | 288 | 340 | 1,034 | 1,571 | |||||||||
Intersegment Sales | (68 | ) | (96 | ) | (334 | ) | (403 | ) | |||||
Total sales | $ | 984 | $ | 1,531 | $ | 4,108 | $ | 6,390 | |||||
EBITDA: |
|
|
|
| |||||||||
Commercial Truck | $ | (2 | ) | $ | 28 | $ | (98 | ) | $ | 117 | |||
Industrial | 24 |
| 36 |
| 124 | 128 | |||||||
Aftermarket & Trailer | 17 |
| 34 | 88 | 110 | ||||||||
Light Vehicle Systems | 2 | 4 | (281 | ) | 5 | ||||||||
Total Segment EBITDA | 41 | 102 | (167 | ) | 360 | ||||||||
Unallocated Corporate Costs | (5 | ) | (26 | ) | (29 | ) | (56 | ) | |||||
Total EBITDA | 36 | 76 |
| (196 | ) | 304 |
| ||||||
Loss on Sale of Receivables | — | (7 | ) | (7 | ) | (22 | ) | ||||||
Depreciation and Amortization | (21 | ) | (31 | ) | (81 | ) | (120 | ) | |||||
Interest Expense, Net | (21 | ) | (16 | ) | (86 | ) | (80 | ) | |||||
Provision for Income Taxes | (43 | ) | (182 | ) | (707 | ) | (197 | ) | |||||
Loss from Continuing Operations | $ | (49 | ) | $ | (160 | ) | $ | (1,077 | ) | $ | (115 | ) | |
|
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION – RECONCILIATION
Non-GAAP
(Unaudited)
(In millions, except per share amounts)
Q4 FY 09 |
| |||||||||||
Q4 FY 09 | Income Tax | Before | ||||||||||
Reported | Restructuring | Charges | Special Items | |||||||||
Sales | $ | 984 | $ | — | $ | — |
| $ | 984 | |||
Gross Margin | 83 | — | — |
| 83 |
| ||||||
Operating Income | 12 | 4 | — | 16 | ||||||||
Loss from Continuing Operations | (49 | ) | 4 | 25 |
| (20 | ) | |||||
Diluted Loss Per Share – Continuing Operations | $ | (0.68 | ) | $ | 0.06 | $ | 0.34 | $ | (0.28 | ) | ||
| ||||||||||||
Segment EBITDA: | ||||||||||||
Commercial Truck | $ | (2 | ) | $ | 3 | $ | — | $ | 1 | |||
Industrial | 24 | — | — | 24 | ||||||||
Aftermarket & Trailer | 17 | 1 | — | 18 | ||||||||
Light Vehicle Systems | 2 | (2 | ) | — | — | |||||||
Total Segment EBITDA | $ | 41 | $ | 2 | $ | — | $ | 43 | ||||
| ||||||||||||
| ||||||||||||
Segment EBITDA Margins | ||||||||||||
Commercial Truck | (0.6) | % | 0.3 | % | ||||||||
Industrial | 10.9 | % | 10.9 | % | ||||||||
Aftermarket & Trailer | 7.8 | % | 8.2 | % | ||||||||
Light Vehicle Systems | 0.7 | % | 0.0 | % | ||||||||
Total Segment EBITDA Margins | 4.2 | % | 4.4 | % |
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION – RECONCILIATION
Non-GAAP
(Unaudited)
(In millions, except per share amounts)
LVS | Non-cash | Q4 FY 08 | ||||||||||||||||
Q4 FY 08 | Separation | Income Tax | Tax Rate | Before | ||||||||||||||
Reported | Restructuring | Costs | Charges | Impact | Special Items | |||||||||||||
Sales | $ | 1,531 | $ | — | $ | — | $ | — | $ | — | $ | 1,531 |
| |||||
Gross Margin | 142 | — | — | — | — |
| 142 |
| ||||||||||
Operating Income | 30 | — | 11 | — | — | 41 | ||||||||||||
Income from Continuing Operations | (160 | ) | — | 11 | 183 | (8 | ) | 26 | ||||||||||
Diluted Income (Loss) Per Share – Continuing Operations | $ | (2.22 | ) | $ | — | $ | 0.15 | $ | 2.53 |
$ | (0.11 | ) | $ | 0.35 | ||||
|
|
|
|
|
|
|
|
| ||||||||||
Segment EBITDA: |
|
|
|
|
| |||||||||||||
Commercial Truck | $ | 28 | $ | (1 | ) | $ | — | $ | — | $ | — | $ | 27 |
| ||||
Industrial | 36 |
| — | — | — |
| — |
| 36 | |||||||||
Aftermarket & Trailer | 34 | — | — | — |
| — | 34 | |||||||||||
Light Vehicle Systems | 4 |
| 1 | — | — | — | 5 | |||||||||||
Total Segment EBITDA | $ | 102 | $ | — | $ | — | $ | — | $ | — | $ | 102 |
| |||||
| ||||||||||||||||||
Segment EBITDA Margins | ||||||||||||||||||
Commercial Truck | 4.1% | 3.9% | ||||||||||||||||
Industrial | 12.4% | 12.4% | ||||||||||||||||
Aftermarket & Trailer | 11.1% | 11.1% | ||||||||||||||||
Light Vehicle Systems | 1.2% | 1.5% | ||||||||||||||||
Total Segment EBITDA Margins | 6.7% | 6.7% |
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION – RECONCILIATION
Non-GAAP
(Unaudited)
(In millions, except per share amounts)
YTD | ||||||||||||||||||
YTD | LVS | FY 09 | ||||||||||||||||
FY 09 | Separation | Income Tax | Before | |||||||||||||||
Reported | Restructuring | Costs | Impairments | Charges | Special Items | |||||||||||||
Sales | $ | 4,108 | $ | — | $ | — | $ | — |
| $ | — | $ | 4,108 | |||||
Gross Margin | 304 | — | — | — |
| — | 304 |
| ||||||||||
Operating Income (Loss) | (290 | ) | 80 | 9 | 223 | — | 22 | |||||||||||
Loss from Continuing Operations | (1,077 | ) | 68 | 9 | 216 |
| 688 | (96 | ) | |||||||||
Diluted Loss Per Share – Continuing Operations | $ | (14.86 | ) | $ | 0.94 | $ | 0.13 | $ | 2.98 | $ | 9.49 | $ | (1.32 | ) | ||||
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Segment EBITDA: |
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Commercial Truck | $ | (98 | ) | $ | 52 | $ | — | $ | 8 | $ | — | $ | (38 | ) | ||||
Industrial | 124 | 2 | — | — | — | 126 | ||||||||||||
Aftermarket & Trailer | 88 | 1 | — | — | — | 89 | ||||||||||||
Light Vehicle Systems | (281 | ) | 19 | — | 209 | — | (53 | ) | ||||||||||
Total Segment EBITDA | $ | (167 | ) | $ | 74 | $ | — | $ | 217 |
$ | — | $ | 124 | |||||
Segment EBITDA Margins | ||||||||||||||||||
Commercial Truck | (6.3) | % | (2.4) | % | ||||||||||||||
Industrial | 14.0 | % | 14.2 | % | ||||||||||||||
Aftermarket & Trailer | 9.2 | % | 9.3 | % | ||||||||||||||
Light Vehicle Systems | (27.2) | % | (5.1) | % | ||||||||||||||
Total Segment EBITDA Margins | (4.1) | % | 3.0 | % |
ARVINMERITOR, INC.
SELECTED FINANCIAL INFORMATION – RECONCILIATION
Non-GAAP
(Unaudited)
(In millions, except per share amounts)
LVS | Non-cash | Q4 FY 08 | ||||||||||||||||
YTD FY 08 | Separation | Income Tax | Tax Rate | Before | ||||||||||||||
Reported | Restructuring | Costs | Charges | Impact | Special Items | |||||||||||||
Sales | $ | 6,390 | $ | — | $ | — | $ | — | $ | — | $ | 6,390 |
| |||||
Gross Margin | 562 | — | — | — |
| — |
| 562 |
| |||||||||
Operating Income | 135 | 9 | 17 | — |
| — | 161 | |||||||||||
Income (Loss) from Continuing Operations | (115 | ) | 6 | 17 | 183 | (10 | ) | 81 | ||||||||||
Diluted Income (Loss) Per Share – Continuing Operations | $ | (1.60 | ) | $ | 0.08 | $ | 0.23 | $ | 2.54 | $ | (0.14 | ) | $ | 1.11 | ||||
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Segment EBITDA: |
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Commercial Truck | $ | 117 | $ | (1 | ) | $ | — | $ | — | $ | — | $ | 116 |
| ||||
Industrial | 128 |
| — | — | — | — | 128 | |||||||||||
Aftermarket & Trailer | 110 | — |
| — | — | — | 110 | |||||||||||
Light Vehicle Systems | 5 | 10 | — | — | — | 15 | ||||||||||||
Total Segment EBITDA | $ | 360 | $ | 9 | $ | — | $ | — | $ | — | $ | 369 |
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Segment EBITDA Margins | ||||||||||||||||||
Commercial Truck | 4.0% | 4.0% | ||||||||||||||||
Industrial | 11.5% | 11.5% | ||||||||||||||||
Aftermarket & Trailer | 9.3% | 9.3% | ||||||||||||||||
Light Vehicle Systems | 0.3% | 1.0% | ||||||||||||||||
Total Segment EBITDA Margins | 5.6% | 5.8% |
ARVINMERITOR, INC.
EBITDA BEFORE SPECIAL ITEMS RECONCILIATION
Non-GAAP
(Unaudited, in millions)
|
| Quarter Ended |
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| 2009 |
| 2008 |
| ||
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Total EBITDA - Before Special Items |
| $ | 40 |
| $ | 87 |
|
Restructuring Costs, net of minority nterests |
|
| (4 | ) |
| — |
|
LVS Separation Costs |
|
| — |
|
| (11 | ) |
Loss on Sale of Receivables |
|
| — |
|
| (7 | ) |
Depreciation and Amortization | (21 | ) | (31 | ) | |||
Interest Expense, Net |
|
| (21 | ) |
| (16 | ) |
Provision for Income Taxes |
|
| (43 | ) |
| (182 | ) |
Loss From Continuing Operations |
| $ | (49 | ) | $ | (160 | ) |
ARVINMERITOR, INC.
FREE CASH FLOW - RECONCILIATION
Non-GAAP
(Unaudited, in millions)
Quarter Ended | Twelve Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||
Cash flows provided by (used for) continuing operations | $ | 27 | $ | 127 | $ | (279 | ) | $ | 180 | ||||
Capital expenditures – continuing operations | (17 | ) | (48 | ) | (111 | ) | (138 | ) | |||||
Free cash flows provided by (used for) continuing operations | 10 | 79 | (390 | ) | 42 | ||||||||
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Cash flows provided by (used for) discontinued operations | 19 | 30 | (16 | ) | (17 | ) | |||||||
Capital expenditures – discontinued operations | (7 | ) | (6 | ) | (23 | ) | (34 | ) | |||||
Cash flows provided by (used for) discontinued operations | 12 | 24 | (39 | ) | (51 | ) | |||||||
| |||||||||||||
Free cash flow – full company | $ | 22 | $ | 103 | $ | (429 | ) | $ | (9 | ) |