Aptiv Reports Fourth Quarter 2023 Financial Results
Record Full Year Revenue, Adjusted Operating Income and Operating Cash Flow
Fourth Quarter Financial Highlights Include:
-
U.S. GAAP revenue of$4.9 billion , an increase of 6%- Revenue increased 2% adjusted for currency exchange, commodity movements and acquisitions, compared to AWM1 of 7%
-
U.S. GAAP net income of$905 million , diluted earnings per share of$3.22 -
Excluding special items, diluted earnings per share of
$1.40
-
Excluding special items, diluted earnings per share of
-
U.S. GAAP operating income margin of 7.2%-
Adjusted Operating Income margin of 12.2%; Adjusted Operating Income of
$600 million ; Adjusted EBITDA margin of 15.7%; Adjusted EBITDA of$772 million
-
Adjusted Operating Income margin of 12.2%; Adjusted Operating Income of
-
Generated
$624 million of cash from operations -
Returned
$300 million to shareholders through share repurchases -
Paid-off
$301 million Term Loan over two years early
Full Year 2023 Financial Highlights Include:
-
U.S. GAAP revenue of$20.1 billion , an increase of 15%- Revenue increased 12% adjusted for currency exchange, commodity movements and acquisitions, compared to AWM1 of 10%
-
U.S. GAAP net income of$2,909 million , diluted earnings per share of$10.39 -
Excluding special items, diluted earnings per share of
$4.86
-
Excluding special items, diluted earnings per share of
-
U.S. GAAP operating income margin of 7.8%-
Adjusted Operating Income margin of 10.6%; Adjusted Operating Income of
$2,127 million ; Adjusted EBITDA margin of 13.9%; Adjusted EBITDA of$2,788 million
-
Adjusted Operating Income margin of 10.6%; Adjusted Operating Income of
-
Generated
$1,896 million of cash from operations -
Returned
$398 million to shareholders through share repurchases
“Aptiv delivered record revenue, adjusted operating income and operating cash flow for the year, reflecting strong growth across our portfolio and solid operational execution,” said
1 Represents global vehicle production weighted to the geographic regions in which the Company generates its revenue (“AWM”). |
Fourth Quarter 2023 Results
For the three months ended
The Company reported fourth quarter 2023 U.S. GAAP net income of
Fourth quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was
Interest expense for the fourth quarter totaled
Tax benefit in the fourth quarter of 2023 was
The Company generated net cash flow from operating activities of
Full Year 2023 Results
For the year ended
For full year 2023, the Company reported
The Company reported Adjusted Operating Income of
Interest expense for full year 2023 totaled
Tax benefit for full year 2023 was
The Company generated net cash flow from operating activities of
Reconciliations of Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in
Share Repurchase Program
During the fourth quarter of 2023, the Company repurchased 3.8 million shares for approximately
Full Year 2024 Outlook
The Company’s full year 2024 financial guidance is as follows:
(in millions, except per share amounts) |
Full Year 2024 |
Net sales |
|
Adjusted EBITDA |
|
Adjusted EBITDA margin |
15.0% - 15.3% |
Adjusted operating income |
|
Adjusted operating income margin |
11.6% - 12.0% |
Adjusted net income per share (1) |
|
Cash flow from operations |
|
Capital expenditures |
|
Adjusted effective tax rate |
17.5% |
(1) The Company’s full year 2024 financial guidance includes approximately |
Conference Call and Webcast
The Company will host a conference call to discuss these results at
Use of Non-GAAP Financial Information
This press release contains information about Aptiv’s financial results which are not presented in accordance with GAAP. Specifically, Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing are non-GAAP financial measures. Adjusted Revenue Growth represents the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs, (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales. Adjusted EBITDA represents net income before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, restructuring and other special items.
Adjusted Net Income represents net income attributable to Aptiv before amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share represents Adjusted Net Income divided by the Adjusted Weighted Average Number of Diluted Shares Outstanding for the period. The Adjusted Weighted Average Number of Diluted Shares Outstanding assumes the application of the if-converted method of share dilution, if not already applied for GAAP purposes of calculating the weighted average number of diluted shares outstanding. Cash Flow Before Financing represents cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions, the cost of significant technology investments and net proceeds from the divestiture of discontinued operations and other significant businesses.
Management believes 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, results of operations and liquidity. In particular, management believes Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing are useful measures in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and that may obscure underlying business results and trends. Management also uses these non-GAAP financial measures for internal planning and forecasting purposes.
Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.
About Aptiv
Aptiv is a global technology company that develops safer, greener and more connected solutions enabling a more sustainable future of mobility. Visit aptiv.com.
Forward-Looking Statements
This press release, as well as other statements made by
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in millions, except per share amounts) |
||||||||||||||
Net sales |
$ |
4,919 |
|
|
$ |
4,640 |
|
|
$ |
20,051 |
|
|
$ |
17,489 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
3,997 |
|
|
|
3,827 |
|
|
|
16,612 |
|
|
|
14,854 |
|
Selling, general and administrative |
|
381 |
|
|
|
303 |
|
|
|
1,436 |
|
|
|
1,138 |
|
Amortization |
|
56 |
|
|
|
37 |
|
|
|
233 |
|
|
|
149 |
|
Restructuring |
|
130 |
|
|
|
33 |
|
|
|
211 |
|
|
|
85 |
|
Total operating expenses |
|
4,564 |
|
|
|
4,200 |
|
|
|
18,492 |
|
|
|
16,226 |
|
Operating income |
|
355 |
|
|
|
440 |
|
|
|
1,559 |
|
|
|
1,263 |
|
Interest expense |
|
(71 |
) |
|
|
(62 |
) |
|
|
(285 |
) |
|
|
(219 |
) |
Other income (expense), net |
|
27 |
|
|
|
(10 |
) |
|
|
63 |
|
|
|
(54 |
) |
Income before income taxes and equity loss |
|
311 |
|
|
|
368 |
|
|
|
1,337 |
|
|
|
990 |
|
Income tax benefit (expense) |
|
680 |
|
|
|
(25 |
) |
|
|
1,928 |
|
|
|
(121 |
) |
Income before equity loss |
|
991 |
|
|
|
343 |
|
|
|
3,265 |
|
|
|
869 |
|
Equity loss, net of tax |
|
(72 |
) |
|
|
(77 |
) |
|
|
(299 |
) |
|
|
(279 |
) |
Net income |
|
919 |
|
|
|
266 |
|
|
|
2,966 |
|
|
|
590 |
|
Net income (loss) attributable to noncontrolling interest |
|
13 |
|
|
|
18 |
|
|
|
28 |
|
|
|
(3 |
) |
Net income (loss) attributable to redeemable noncontrolling interest |
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Net income attributable to Aptiv |
|
905 |
|
|
|
249 |
|
|
|
2,938 |
|
|
|
594 |
|
Mandatory convertible preferred share dividends |
|
— |
|
|
|
(16 |
) |
|
|
(29 |
) |
|
|
(63 |
) |
Net income attributable to ordinary shareholders |
$ |
905 |
|
|
$ |
233 |
|
|
$ |
2,909 |
|
|
$ |
531 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per share: |
|
|
|
|
|
|
|
||||||||
Diluted net income per share attributable to ordinary shareholders |
$ |
3.22 |
|
|
$ |
0.86 |
|
|
$ |
10.39 |
|
|
$ |
1.96 |
|
Weighted average number of diluted shares outstanding |
|
281.21 |
|
|
|
271.40 |
|
|
|
282.88 |
|
|
|
271.18 |
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
|
|
|
|
||
|
|
||||
|
(in millions) |
||||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,640 |
|
$ |
1,531 |
Accounts receivable, net |
|
3,546 |
|
|
3,433 |
Inventories |
|
2,365 |
|
|
2,340 |
Other current assets |
|
696 |
|
|
480 |
Total current assets |
|
8,247 |
|
|
7,784 |
Long-term assets: |
|
|
|
||
Property, net |
|
3,785 |
|
|
3,495 |
Operating lease right-of-use assets |
|
540 |
|
|
451 |
Investments in affiliates |
|
1,443 |
|
|
1,723 |
Intangible assets, net |
|
2,399 |
|
|
2,585 |
|
|
5,151 |
|
|
5,106 |
Other long-term assets |
|
2,862 |
|
|
740 |
Total long-term assets |
|
16,180 |
|
|
14,100 |
Total assets |
$ |
24,427 |
|
$ |
21,884 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Short-term debt |
$ |
9 |
|
$ |
31 |
Accounts payable |
|
3,151 |
|
|
3,150 |
Accrued liabilities |
|
1,648 |
|
|
1,684 |
Total current liabilities |
|
4,808 |
|
|
4,865 |
Long-term liabilities: |
|
|
|
||
Long-term debt |
|
6,204 |
|
|
6,460 |
Pension benefit obligations |
|
417 |
|
|
354 |
Long-term operating lease liabilities |
|
453 |
|
|
361 |
Other long-term liabilities |
|
701 |
|
|
750 |
Total long-term liabilities |
|
7,775 |
|
|
7,925 |
Total liabilities |
|
12,583 |
|
|
12,790 |
Commitments and contingencies |
|
|
|
||
Redeemable noncontrolling interest |
|
99 |
|
|
96 |
|
|
|
|
||
Total Aptiv shareholders’ equity |
|
11,548 |
|
|
8,809 |
Noncontrolling interest |
|
197 |
|
|
189 |
Total shareholders’ equity |
|
11,745 |
|
|
8,998 |
Total liabilities, redeemable noncontrolling interest and shareholders’ equity |
$ |
24,427 |
|
$ |
21,884 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
Year Ended |
||||||
|
2023 |
|
2022 |
||||
|
(in millions) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
2,966 |
|
|
$ |
590 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
912 |
|
|
|
762 |
|
Restructuring expense, net of cash paid |
|
83 |
|
|
|
18 |
|
Deferred income taxes |
|
(2,164 |
) |
|
|
(144 |
) |
Loss from equity method investments, net of dividends received |
|
304 |
|
|
|
284 |
|
Other charges related to |
|
— |
|
|
|
54 |
|
Other, net |
|
171 |
|
|
|
126 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(112 |
) |
|
|
(497 |
) |
Inventories |
|
(20 |
) |
|
|
(258 |
) |
Accounts payable |
|
4 |
|
|
|
137 |
|
Other, net |
|
(215 |
) |
|
|
215 |
|
Pension contributions |
|
(33 |
) |
|
|
(24 |
) |
Net cash provided by operating activities |
|
1,896 |
|
|
|
1,263 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(906 |
) |
|
|
(844 |
) |
Proceeds from sale of property |
|
4 |
|
|
|
4 |
|
Proceeds from business divestitures, net of cash sold |
|
(17 |
) |
|
|
— |
|
Cost of business acquisitions and other transactions, net of cash acquired |
|
(83 |
) |
|
|
(4,310 |
) |
Proceeds from sale of technology investments |
|
— |
|
|
|
3 |
|
Cost of technology investments |
|
(6 |
) |
|
|
(42 |
) |
Settlement of derivatives |
|
6 |
|
|
|
7 |
|
Net cash used in investing activities |
|
(1,002 |
) |
|
|
(5,182 |
) |
Cash flows from financing activities: |
|
|
|
||||
Decrease in other short and long-term debt, net |
|
(332 |
) |
|
|
(5 |
) |
Proceeds from issuance of senior notes, net of issuance costs |
|
— |
|
|
|
2,472 |
|
Contingent consideration payments |
|
(10 |
) |
|
|
— |
|
Dividend payments of consolidated affiliates to minority shareholders |
|
(2 |
) |
|
|
(9 |
) |
Repurchase of ordinary shares |
|
(398 |
) |
|
|
— |
|
Distribution of mandatory convertible preferred share cash dividends |
|
(32 |
) |
|
|
(63 |
) |
Taxes withheld and paid on employees’ restricted share awards |
|
(33 |
) |
|
|
(36 |
) |
Net cash (used in) provided by financing activities |
|
(807 |
) |
|
|
2,359 |
|
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash |
|
(2 |
) |
|
|
(24 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
85 |
|
|
|
(1,584 |
) |
Cash, cash equivalents and restricted cash at beginning of the year |
|
1,555 |
|
|
|
3,139 |
|
Cash, cash equivalents and restricted cash at end of the year |
$ |
1,640 |
|
|
$ |
1,555 |
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash and cash classified as assets held for sale: |
|
|
|
||||
|
|
||||||
|
2023 |
|
2022 |
||||
|
(in millions) |
||||||
Cash, cash equivalents and restricted cash |
$ |
1,640 |
|
|
$ |
1,531 |
|
Cash classified as assets held for sale |
|
— |
|
|
|
24 |
|
Total cash, cash equivalents and restricted cash |
$ |
1,640 |
|
|
$ |
1,555 |
|
FOOTNOTES (Unaudited) |
|||||||||||||||||||||
1. Segment Summary |
|||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
2023 |
|
2022 |
|
% |
|
2023 |
|
2022 |
|
% |
||||||||||
|
(in millions) |
|
|
|
(in millions) |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Signal and Power Solutions |
$ |
3,574 |
|
|
$ |
3,374 |
|
|
6 |
% |
|
$ |
14,404 |
|
|
$ |
12,943 |
|
|
11 |
% |
Advanced Safety and User Experience |
|
1,356 |
|
|
|
1,280 |
|
|
6 |
% |
|
|
5,695 |
|
|
|
4,587 |
|
|
24 |
% |
Eliminations and Other (a) |
|
(11 |
) |
|
|
(14 |
) |
|
|
|
|
(48 |
) |
|
|
(41 |
) |
|
|
||
|
$ |
4,919 |
|
|
$ |
4,640 |
|
|
|
|
$ |
20,051 |
|
|
$ |
17,489 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Signal and Power Solutions |
$ |
459 |
|
|
$ |
446 |
|
|
3 |
% |
|
$ |
1,676 |
|
|
$ |
1,441 |
|
|
16 |
% |
Advanced Safety and User Experience |
|
141 |
|
|
|
77 |
|
|
83 |
% |
|
|
451 |
|
|
|
144 |
|
|
213 |
% |
Adjusted Operating Income |
$ |
600 |
|
|
$ |
523 |
|
|
|
|
$ |
2,127 |
|
|
$ |
1,585 |
|
|
|
(a) |
Eliminations and Other includes the elimination of inter-segment transactions. |
2. Weighted Average Number of Diluted Shares Outstanding | |||||||||||
The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income per share attributable to ordinary shareholders for the three months and years ended |
|||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
(in millions, except per share data) |
||||||||||
Weighted average ordinary shares outstanding, basic |
|
280.95 |
|
|
270.95 |
|
|
276.92 |
|
|
270.90 |
Dilutive shares related to RSUs |
|
0.26 |
|
|
0.45 |
|
|
0.17 |
|
|
0.28 |
Weighted average MCPS Converted Shares |
|
— |
|
|
— |
|
|
5.79 |
|
|
— |
Weighted average ordinary shares outstanding, including dilutive shares |
|
281.21 |
|
|
271.40 |
|
|
282.88 |
|
|
271.18 |
Net income per share attributable to ordinary shareholders: |
|
|
|
|
|
|
|
||||
Basic |
$ |
3.22 |
|
$ |
0.86 |
|
$ |
10.50 |
|
$ |
1.96 |
Diluted |
$ |
3.22 |
|
$ |
0.86 |
|
$ |
10.39 |
|
$ |
1.96 |
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In this press release the Company has provided information regarding certain non-GAAP financial measures, including “Adjusted Revenue Growth,” “Adjusted Operating Income,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Net Income Per Share” and “Cash Flow Before Financing.” Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules.
Adjusted Revenue Growth
: Adjusted Revenue Growth is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding
|
Three Months Ended
|
|
|
|
|
Reported net sales % change |
6 |
% |
Less: foreign currency exchange and commodities |
1 |
% |
Less: acquisitions |
3 |
% |
Adjusted revenue growth |
2 |
% |
|
|
|
|
Year Ended
|
|
|
|
|
Reported net sales % change |
15 |
% |
Less: foreign currency exchange and commodities |
(1 |
)% |
Less: acquisitions |
4 |
% |
Adjusted revenue growth |
12 |
% |
Adjusted Operating Income
: Adjusted Operating Income is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding
Consolidated Adjusted Operating Income |
|||||||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||
|
($ in millions) |
||||||||||||||||||||||||||
|
$ |
|
Margin |
|
$ |
|
Margin |
|
$ |
|
Margin |
|
$ |
|
Margin |
||||||||||||
Net income attributable to Aptiv |
$ |
905 |
|
|
|
|
$ |
249 |
|
|
|
|
$ |
2,938 |
|
|
|
|
$ |
594 |
|
|
|
||||
Interest expense |
|
71 |
|
|
|
|
|
62 |
|
|
|
|
|
285 |
|
|
|
|
|
219 |
|
|
|
||||
Other (income) expense, net |
|
(27 |
) |
|
|
|
|
10 |
|
|
|
|
|
(63 |
) |
|
|
|
|
54 |
|
|
|
||||
Income tax (benefit) expense |
|
(680 |
) |
|
|
|
|
25 |
|
|
|
|
|
(1,928 |
) |
|
|
|
|
121 |
|
|
|
||||
Equity loss, net of tax |
|
72 |
|
|
|
|
|
77 |
|
|
|
|
|
299 |
|
|
|
|
|
279 |
|
|
|
||||
Net income (loss) attributable to noncontrolling interest |
|
13 |
|
|
|
|
|
18 |
|
|
|
|
|
28 |
|
|
|
|
|
(3 |
) |
|
|
||||
Net income (loss) attributable to redeemable noncontrolling interest |
|
1 |
|
|
|
|
|
(1 |
) |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
||||
Operating income |
|
355 |
|
|
7.2 |
% |
|
|
440 |
|
|
9.5 |
% |
|
|
1,559 |
|
|
7.8 |
% |
|
|
1,263 |
|
|
7.2 |
% |
Amortization |
|
56 |
|
|
|
|
|
37 |
|
|
|
|
|
233 |
|
|
|
|
|
149 |
|
|
|
||||
Restructuring |
|
130 |
|
|
|
|
|
33 |
|
|
|
|
|
211 |
|
|
|
|
|
85 |
|
|
|
||||
Other acquisition and portfolio project costs |
|
35 |
|
|
|
|
|
13 |
|
|
|
|
|
80 |
|
|
|
|
|
26 |
|
|
|
||||
Asset impairments |
|
18 |
|
|
|
|
|
— |
|
|
|
|
|
18 |
|
|
|
|
|
8 |
|
|
|
||||
Other charges related to |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
54 |
|
|
|
||||
Compensation expense related to acquisitions |
|
6 |
|
|
|
|
|
— |
|
|
|
|
|
26 |
|
|
|
|
|
— |
|
|
|
||||
Adjusted operating income |
$ |
600 |
|
|
12.2 |
% |
|
$ |
523 |
|
|
11.3 |
% |
|
$ |
2,127 |
|
|
10.6 |
% |
|
$ |
1,585 |
|
|
9.1 |
% |
Segment Adjusted Operating Income |
||||||||
(in millions) |
||||||||
Three Months Ended |
Signal and
|
|
Advanced
|
|
Total |
|||
Operating income |
$ |
325 |
|
$ |
30 |
|
$ |
355 |
Amortization |
|
33 |
|
|
23 |
|
|
56 |
Restructuring |
|
60 |
|
|
70 |
|
|
130 |
Other acquisition and portfolio project costs |
|
26 |
|
|
9 |
|
|
35 |
Asset impairments |
|
15 |
|
|
3 |
|
|
18 |
Compensation expense related to acquisitions |
|
— |
|
|
6 |
|
|
6 |
Adjusted operating income |
$ |
459 |
|
$ |
141 |
|
$ |
600 |
|
|
|
|
|
|
|||
Depreciation and amortization (a) |
$ |
174 |
|
$ |
72 |
|
$ |
246 |
|
|
|
|
|
|
|||
Three Months Ended |
Signal and
|
|
Advanced
|
|
Total |
|||
Operating income |
$ |
399 |
|
$ |
41 |
|
$ |
440 |
Amortization |
|
32 |
|
|
5 |
|
|
37 |
Restructuring |
|
7 |
|
|
26 |
|
|
33 |
Other acquisition and portfolio project costs |
|
8 |
|
|
5 |
|
|
13 |
Adjusted operating income |
$ |
446 |
|
$ |
77 |
|
$ |
523 |
|
|
|
|
|
|
|||
Depreciation and amortization (a) |
$ |
143 |
|
$ |
45 |
|
$ |
188 |
|
|
|
|
|
|
|||
Year Ended |
Signal and
|
|
Advanced
|
|
Total |
|||
Operating income |
$ |
1,379 |
|
$ |
180 |
|
$ |
1,559 |
Amortization |
|
140 |
|
|
93 |
|
|
233 |
Restructuring |
|
82 |
|
|
129 |
|
|
211 |
Other acquisition and portfolio project costs |
|
60 |
|
|
20 |
|
|
80 |
Asset impairments |
|
15 |
|
|
3 |
|
|
18 |
Compensation expense related to acquisitions |
|
— |
|
|
26 |
|
|
26 |
Adjusted operating income |
$ |
1,676 |
|
$ |
451 |
|
$ |
2,127 |
|
|
|
|
|
|
|||
Depreciation and amortization (a) |
$ |
638 |
|
$ |
274 |
|
$ |
912 |
|
|
|
|
|
|
|||
Year Ended |
Signal and
|
|
Advanced
|
|
Total |
|||
Operating income |
$ |
1,195 |
|
$ |
68 |
|
$ |
1,263 |
Amortization |
|
139 |
|
|
10 |
|
|
149 |
Restructuring |
|
30 |
|
|
55 |
|
|
85 |
Other acquisition and portfolio project costs |
|
15 |
|
|
11 |
|
|
26 |
Asset impairments |
|
8 |
|
|
— |
|
|
8 |
Other charges related to |
|
54 |
|
|
— |
|
|
54 |
Adjusted operating income |
$ |
1,441 |
|
$ |
144 |
|
$ |
1,585 |
|
|
|
|
|
|
|||
Depreciation and amortization (a) |
$ |
584 |
|
$ |
178 |
|
$ |
762 |
(a) |
Includes asset impairments. |
Adjusted EBITDA
: Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in millions) |
||||||||||||||
Net income attributable to Aptiv |
$ |
905 |
|
|
$ |
249 |
|
|
$ |
2,938 |
|
|
$ |
594 |
|
Interest expense |
|
71 |
|
|
|
62 |
|
|
|
285 |
|
|
|
219 |
|
Income tax (benefit) expense |
|
(680 |
) |
|
|
25 |
|
|
|
(1,928 |
) |
|
|
121 |
|
Net income (loss) attributable to noncontrolling interest |
|
13 |
|
|
|
18 |
|
|
|
28 |
|
|
|
(3 |
) |
Net income (loss) attributable to redeemable noncontrolling interest |
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Depreciation and amortization |
|
246 |
|
|
|
188 |
|
|
|
912 |
|
|
|
762 |
|
EBITDA |
$ |
556 |
|
|
$ |
541 |
|
|
$ |
2,235 |
|
|
$ |
1,692 |
|
Other (income) expense, net |
|
(27 |
) |
|
|
10 |
|
|
|
(63 |
) |
|
|
54 |
|
Equity loss, net of tax |
|
72 |
|
|
|
77 |
|
|
|
299 |
|
|
|
279 |
|
Restructuring |
|
130 |
|
|
|
33 |
|
|
|
211 |
|
|
|
85 |
|
Other acquisition and portfolio project costs |
|
35 |
|
|
|
13 |
|
|
|
80 |
|
|
|
26 |
|
Other charges related to |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
54 |
|
Compensation expense related to acquisitions |
|
6 |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
772 |
|
|
$ |
674 |
|
|
$ |
2,788 |
|
|
$ |
2,190 |
|
Adjusted Net Income and Adjusted Net Income Per Share
: Adjusted Net Income and Adjusted Net Income Per Share, which are non-GAAP measures, are presented as supplemental measures of the Company’s financial performance which management believes are useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in millions, except per share amounts) |
||||||||||||||
Net income attributable to ordinary shareholders |
$ |
905 |
|
|
$ |
233 |
|
|
$ |
2,909 |
|
|
$ |
531 |
|
Mandatory convertible preferred share dividends |
|
— |
|
|
|
16 |
|
|
|
29 |
|
|
|
63 |
|
Net income attributable to Aptiv |
|
905 |
|
|
|
249 |
|
|
|
2,938 |
|
|
|
594 |
|
Adjusting items: |
|
|
|
|
|
|
|
||||||||
Amortization |
|
56 |
|
|
|
37 |
|
|
|
233 |
|
|
|
149 |
|
Restructuring |
|
130 |
|
|
|
33 |
|
|
|
211 |
|
|
|
85 |
|
Other acquisition and portfolio project costs |
|
35 |
|
|
|
13 |
|
|
|
80 |
|
|
|
26 |
|
Asset impairments |
|
18 |
|
|
|
— |
|
|
|
18 |
|
|
|
8 |
|
Other charges related to |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
Compensation expense related to acquisitions |
|
6 |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
Costs associated with acquisitions and other transactions |
|
— |
|
|
|
53 |
|
|
|
4 |
|
|
|
61 |
|
Debt extinguishment costs |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Impairment of equity investments without readily determinable fair value |
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
(Gain) loss on change in fair value of publicly traded equity securities |
|
— |
|
|
|
(3 |
) |
|
|
6 |
|
|
|
52 |
|
Tax impact of intra-entity transfers of intellectual property and other related transactions (b) |
|
(723 |
) |
|
|
— |
|
|
|
(2,082 |
) |
|
|
— |
|
Tax impact of adjusting items (c) |
|
(33 |
) |
|
|
(21 |
) |
|
|
(77 |
) |
|
|
(37 |
) |
Adjusted net income attributable to Aptiv |
$ |
395 |
|
|
$ |
361 |
|
|
$ |
1,376 |
|
|
$ |
967 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted weighted average number of diluted shares outstanding (d) |
|
281.21 |
|
|
|
283.77 |
|
|
|
282.88 |
|
|
|
283.55 |
|
Diluted net income per share attributable to ordinary shareholders |
$ |
3.22 |
|
|
$ |
0.86 |
|
|
$ |
10.39 |
|
|
$ |
1.96 |
|
Adjusted net income per share |
$ |
1.40 |
|
|
$ |
1.27 |
|
|
$ |
4.86 |
|
|
$ |
3.41 |
|
(a) |
Adjustment is reduced by the portion of charges attributable to noncontrolling interest for our former majority owned Russian subsidiary. Our interest in this subsidiary was sold during the second quarter of 2023 and the subsidiary was deconsolidated. |
(b) |
In response to the OECD’s Pillar Two Directive, the Company initiated changes to its corporate entity structure, including intra-entity transfers of certain intellectual property to one of its subsidiaries in |
(c) |
Represents the income tax impacts of the adjustments made for amortization, restructuring and other special items by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. |
(d) |
In |
Adjusted Weighted Average Number of Diluted Shares Outstanding: |
|||||||
|
Three Months Ended |
|
Year Ended |
||||
|
|
|
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(in millions) |
||||||
Weighted average number of diluted shares outstanding |
281.21 |
|
271.40 |
|
282.88 |
|
271.18 |
Weighted average MCPS Converted Shares |
— |
|
12.37 |
|
— |
|
12.37 |
Adjusted weighted average number of diluted shares outstanding |
281.21 |
|
283.77 |
|
282.88 |
|
283.55 |
Cash Flow Before Financing : Cash Flow Before Financing is presented as a supplemental measure of the Company’s liquidity which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions, evaluating its liquidity and determining appropriate capital allocation strategies. Management believes this measure is useful to investors to understand how the Company’s core operating activities generate and use cash. Cash Flow Before Financing is defined as cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions, the cost of significant technology investments and net proceeds from the divestiture of discontinued operations and other significant businesses. Not all companies use identical calculations of Cash Flow Before Financing, therefore this presentation may not be comparable to other similarly titled measures of other companies. The calculation of Cash Flow Before Financing does not reflect cash used to service debt, pay dividends or repurchase shares and, therefore, does not necessarily reflect funds available for investment or other discretionary uses.
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in millions) |
||||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
919 |
|
|
$ |
266 |
|
|
$ |
2,966 |
|
|
$ |
590 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
246 |
|
|
|
188 |
|
|
|
912 |
|
|
|
762 |
|
Restructuring expense, net of cash paid |
|
79 |
|
|
|
16 |
|
|
|
83 |
|
|
|
18 |
|
Working capital |
|
173 |
|
|
|
372 |
|
|
|
(128 |
) |
|
|
(618 |
) |
Pension contributions |
|
(13 |
) |
|
|
(9 |
) |
|
|
(33 |
) |
|
|
(24 |
) |
Increase in deferred income tax assets from intra-entity transfers of intellectual property and other related transactions |
|
(723 |
) |
|
|
— |
|
|
|
(2,082 |
) |
|
|
— |
|
Other, net |
|
(57 |
) |
|
|
100 |
|
|
|
178 |
|
|
|
535 |
|
Net cash provided by operating activities |
|
624 |
|
|
|
933 |
|
|
|
1,896 |
|
|
|
1,263 |
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
(203 |
) |
|
|
(178 |
) |
|
|
(906 |
) |
|
|
(844 |
) |
Proceeds from business divestitures, net of cash sold |
|
— |
|
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
Cost of business acquisitions and other transactions, net of cash acquired |
|
— |
|
|
|
(4,090 |
) |
|
|
(83 |
) |
|
|
(4,310 |
) |
Proceeds from sale of technology investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Cost of technology investments |
|
(5 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(42 |
) |
Settlement of derivatives |
|
— |
|
|
|
(2 |
) |
|
|
6 |
|
|
|
7 |
|
Other, net |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
4 |
|
Net cash used in investing activities |
|
(207 |
) |
|
|
(4,269 |
) |
|
|
(1,002 |
) |
|
|
(5,182 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusting items: |
|
|
|
|
|
|
|
||||||||
Adjustment for the cost of business acquisitions and other transactions, net |
|
— |
|
|
|
4,090 |
|
|
|
83 |
|
|
|
4,310 |
|
Adjustment for cost of significant technology investments |
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
|
40 |
|
Cash flow before financing |
$ |
421 |
|
|
$ |
754 |
|
|
$ |
981 |
|
|
$ |
431 |
|
Financial Guidance : The reconciliation of the forward-looking non-GAAP financial measures provided in the Company’s financial guidance to the most comparable forward-looking GAAP measure is as follows:
|
Estimated Full Year |
|||||
|
2024 (a) |
|||||
|
|
|
|
|||
|
($ in millions) |
|||||
Adjusted Operating Income |
$ |
|
Margin (b) |
|||
Net income attributable to Aptiv |
$ |
1,235 |
|
|
|
|
Interest expense |
|
250 |
|
|
|
|
Other income, net |
|
(75 |
) |
|
|
|
Income tax expense |
|
340 |
|
|
|
|
Equity loss, net of tax |
|
330 |
|
|
|
|
Net income attributable to noncontrolling interest (c) |
|
25 |
|
|
|
|
Operating income |
|
2,105 |
|
|
9.7 |
% |
Amortization |
|
225 |
|
|
|
|
Restructuring |
|
150 |
|
|
|
|
Other acquisition and portfolio project costs |
|
40 |
|
|
|
|
Compensation expense related to acquisitions |
|
30 |
|
|
|
|
Adjusted operating income |
$ |
2,550 |
|
|
11.8 |
% |
|
|
|
|
|||
Adjusted EBITDA |
|
|
|
|||
Net income attributable to Aptiv |
$ |
1,235 |
|
|
|
|
Interest expense |
|
250 |
|
|
|
|
Income tax expense |
|
340 |
|
|
|
|
Net income attributable to noncontrolling interest (c) |
|
25 |
|
|
|
|
Depreciation and amortization |
|
950 |
|
|
|
|
EBITDA |
$ |
2,800 |
|
|
13.0 |
% |
Other income, net |
|
(75 |
) |
|
|
|
Equity loss, net of tax |
|
330 |
|
|
|
|
Restructuring |
|
150 |
|
|
|
|
Other acquisition and portfolio project costs |
|
40 |
|
|
|
|
Compensation expense related to acquisitions |
|
30 |
|
|
|
|
Adjusted EBITDA |
$ |
3,275 |
|
|
15.2 |
% |
(a) |
Prepared at the estimated mid-point of the Company’s financial guidance range. |
(b) |
Represents operating income, Adjusted Operating Income, EBITDA and Adjusted EBITDA, respectively, as a percentage of estimated net sales. |
(c) |
Includes portion attributable to redeemable noncontrolling interest. |
|
|
Estimated Full Year |
||
|
|
2024 (a) |
||
|
|
|
||
Adjusted Net Income Per Share |
|
($ and shares in millions,
|
||
Net income attributable to Aptiv |
|
$ |
1,235 |
|
Adjusting items: |
|
|
||
Amortization |
|
|
225 |
|
Restructuring |
|
|
150 |
|
Other acquisition and portfolio project costs |
|
|
40 |
|
Compensation expense related to acquisitions |
|
|
30 |
|
Tax impact of adjusting items |
|
|
(75 |
) |
Adjusted net income attributable to Aptiv |
|
$ |
1,605 |
|
|
|
|
||
Adjusted weighted average number of diluted shares outstanding |
|
|
277.00 |
|
Diluted net income per share attributable to ordinary shareholders |
|
$ |
4.45 |
|
Adjusted net income per share |
|
$ |
5.80 |
|
(a) |
Prepared at the estimated mid-point of the Company’s financial guidance range. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131735343/en/
+1.617.603.7941
jane.wu@aptiv.com
Source: