American Axle & Manufacturing Holdings I (AXL, Financial) filed Quarterly Report for the period ended 2010-09-30.
American Axle & Manufacturing Holdings I has a market cap of $678.3 million; its shares were traded at around $9.83 with a P/E ratio of 17.6 and P/S ratio of 0.4. AXL is in the portfolios of George Soros of Soros Fund Management LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Income Tax Expense Income tax expense was $0.8 million in the third quarter of 2010 as compared to $5.5 million in the third quarter of 2009. Our effective income tax rate was 2.0% in the third quarter of 2010 as compared to 21.9% in the third quarter of 2009. Our income tax expense and effective tax rate in the third quarter of 2010 and 2009 reflect the effect of recording a valuation allowance against income tax benefits on U.S. losses. In conjunction with the filing of our 2009 federal tax return, under provisions contained in the American Recovery and Reinvestment Act of 2009, we recorded a tax benefit of $1.4 million in the third quarter of 2010 attributable to the monetization of alternative minimum tax and research and development credits. We will receive this tax refund during the fourth quarter of 2010. Our income tax expense and effective tax rate in the third quarter of 2009 reflects the effect of increasing our contingent tax liabilities by $4.8 million as a result of our quarterly analysis of uncertain tax positions.
Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $147.0 million or 8.6% of net sales in the first nine months of 2010 as compared to $133.3 million or 12.6% of net sales in the first nine months of 2009. R&D was $58.9 million in the first nine months of 2010 as compared to $50.7 million in the first nine months of 2009. The increase in SG&A in the first nine months of 2010 reflects increased R&D spending and higher profit sharing accruals and other incentive compensation expense due to increased profitability, partially offset by lower professional fees related to restructuring actions. SG&A in the first nine months of 2010 included a $3.0 million write down of administrative and engineering facilities located in Detroit, Michigan. SG&A in the first nine months of 2009 included special charges of $2.7 million related to salaried workforce reductions. In addition, we incurred $9.6 million of professional fees related to restructuring actions in the first nine months of 2009.
Cash paid for special charges In the first nine months of 2010, we made cash payments of $42.6 million for special charges compared to $120.4 million in the first nine months of 2009. These cash payments primarily related to hourly and salaried workforce reductions initiated prior to 2010, including annual lump-sum Buydown Program (BDP) payments, the acceleration of buydown payments to associates who elected to accelerate their BDP payments and terminate employment and $12.4 million of pension contributions made in the first quarter of 2010 related to special termination benefit payments that were previously paid out of our pension trusts. We expect to make payments of approximately $4 million in the fourth quarter of 2010, $10 million in 2011 and $5 million in 2012 related to the remaining restructuring accrual.
Financing Activities In the first nine months of 2010, net cash used in financing activities was $64.3 million as compared to net cash provided by financing activities of $45.6 million in the first nine months of 2009. Total long-term debt outstanding decreased $60.4 million in the first nine months of 2010 to $1,011.0 million as compared to $1,071.4 million at year-end 2009, primarily as a result of using cash flow from operations to pay down the amount outstanding under our Revolving Credit Facility as of December 31, 2009.
At September 30, 2010, we had $267.8 million available under the Revolving Credit Facility. This availability reflects a reduction of $28.5 million for standby letters of credit issued against the facility. We also utilize foreign credit facilities and uncommitted lines of credit to finance working capital needs. At September 30, 2010, $33.7 million was outstanding and $0.5 million was available under such agreements.
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American Axle & Manufacturing Holdings I has a market cap of $678.3 million; its shares were traded at around $9.83 with a P/E ratio of 17.6 and P/S ratio of 0.4. AXL is in the portfolios of George Soros of Soros Fund Management LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $53.2 million or 8.6% of net sales in the third quarter of 2010 as compared to $44.0 million or 10.7% of net sales in the third quarter of 2009. R&D was $21.2 million in the third quarter of 2010 as compared to $15.1 million in the third quarter of 2009. The increase in SG&A in the third quarter of 2010 reflects increased R&D spending and higher profit sharing accruals and other incentive compensation expense due to increased profitability, partially offset by lower professional fees related to restructuring actions. SG&A in the third quarter of 2010 included a $3.0 million write down of administrative and engineering facilities located in Detroit, Michigan. SG&A in the third quarter of 2009 included special charges related to salaried workforce reductions of $0.7 million. In addition, in the third quarter of 2009, we incurred $5.7 million of professional fees related to restructuring actions.Income Tax Expense Income tax expense was $0.8 million in the third quarter of 2010 as compared to $5.5 million in the third quarter of 2009. Our effective income tax rate was 2.0% in the third quarter of 2010 as compared to 21.9% in the third quarter of 2009. Our income tax expense and effective tax rate in the third quarter of 2010 and 2009 reflect the effect of recording a valuation allowance against income tax benefits on U.S. losses. In conjunction with the filing of our 2009 federal tax return, under provisions contained in the American Recovery and Reinvestment Act of 2009, we recorded a tax benefit of $1.4 million in the third quarter of 2010 attributable to the monetization of alternative minimum tax and research and development credits. We will receive this tax refund during the fourth quarter of 2010. Our income tax expense and effective tax rate in the third quarter of 2009 reflects the effect of increasing our contingent tax liabilities by $4.8 million as a result of our quarterly analysis of uncertain tax positions.
Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $147.0 million or 8.6% of net sales in the first nine months of 2010 as compared to $133.3 million or 12.6% of net sales in the first nine months of 2009. R&D was $58.9 million in the first nine months of 2010 as compared to $50.7 million in the first nine months of 2009. The increase in SG&A in the first nine months of 2010 reflects increased R&D spending and higher profit sharing accruals and other incentive compensation expense due to increased profitability, partially offset by lower professional fees related to restructuring actions. SG&A in the first nine months of 2010 included a $3.0 million write down of administrative and engineering facilities located in Detroit, Michigan. SG&A in the first nine months of 2009 included special charges of $2.7 million related to salaried workforce reductions. In addition, we incurred $9.6 million of professional fees related to restructuring actions in the first nine months of 2009.
Cash paid for special charges In the first nine months of 2010, we made cash payments of $42.6 million for special charges compared to $120.4 million in the first nine months of 2009. These cash payments primarily related to hourly and salaried workforce reductions initiated prior to 2010, including annual lump-sum Buydown Program (BDP) payments, the acceleration of buydown payments to associates who elected to accelerate their BDP payments and terminate employment and $12.4 million of pension contributions made in the first quarter of 2010 related to special termination benefit payments that were previously paid out of our pension trusts. We expect to make payments of approximately $4 million in the fourth quarter of 2010, $10 million in 2011 and $5 million in 2012 related to the remaining restructuring accrual.
Financing Activities In the first nine months of 2010, net cash used in financing activities was $64.3 million as compared to net cash provided by financing activities of $45.6 million in the first nine months of 2009. Total long-term debt outstanding decreased $60.4 million in the first nine months of 2010 to $1,011.0 million as compared to $1,071.4 million at year-end 2009, primarily as a result of using cash flow from operations to pay down the amount outstanding under our Revolving Credit Facility as of December 31, 2009.
At September 30, 2010, we had $267.8 million available under the Revolving Credit Facility. This availability reflects a reduction of $28.5 million for standby letters of credit issued against the facility. We also utilize foreign credit facilities and uncommitted lines of credit to finance working capital needs. At September 30, 2010, $33.7 million was outstanding and $0.5 million was available under such agreements.
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