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July 31, 2019

Aptiv Reports Second Quarter 2019 Financial Results Ahead of Expectations; Strong Outgrowth and Operating Performance Despite Weak Macros

DUBLIN, July 31, 2019 /PRNewswire/ -- Aptiv PLC (NYSE: APTV), a global technology company enabling the future of mobility, today reported second quarter 2019 U.S. GAAP earnings of $1.07 per diluted share. Excluding special items, second quarter earnings totaled $1.33 per diluted share.

Second Quarter Highlights Include :

  • U.S. GAAP revenue of $3.6 billion, a decrease of 2%
    • Revenue increased 4% adjusted for currency exchange, commodity movements and divestitures
  • U.S. GAAP net income of $274 million, diluted earnings per share of $1.07
    • Excluding special items, earnings of $1.33 per diluted share
  • U.S. GAAP operating income margin of 9.2%
    • Adjusted Operating Income margin of 11.2%; Adjusted Operating Income of $405 million
  • Generated $512 million of cash from operations
  • Returned $177 million to shareholders through share repurchases and dividends

Year-to-Date Highlights Include :

  • U.S. GAAP revenue of $7.2 billion, a decrease of 2%
    • Revenue increased 4% adjusted for currency exchange, commodity movements and divestitures
  • U.S. GAAP net income of $514 million, diluted earnings per share of $1.99
    • Excluding special items, earnings of $2.38 per diluted share
  • U.S. GAAP operating income margin of 8.8%
    • Adjusted Operating Income margin of 10.4%; Adjusted Operating Income of $750 million
  • Generated $596 million of cash from operations
  • Returned $460 million to shareholders through share repurchases and dividends

"Aptiv's second quarter performance, including sustained strong above-market growth despite weak global vehicle production, reflects the efforts we have taken to build a more sustainable business, perfectly positioned to efficiently solve our customer's toughest challenges," said Kevin Clark, president and chief executive officer. "As evidenced by our performance in the first half of this year, we are well-positioned to outperform in any environment, giving us confidence in our ability to deliver on our commitments for the remainder of the year despite our expectation of continued market headwinds. Further, our effective execution, investments for growth and disciplined capital deployment priorities have further strengthened our technology position and robust business model, allowing us to deliver long-term sustainable value to our shareholders."

Second Quarter 2019 Results

The Company reported second quarter 2019 U.S. GAAP revenue of $3.6 billion, a decrease of 2% from the prior year period. Adjusted for currency exchange, commodity movements and divestitures, revenue increased by 4% in the second quarter. This reflects growth of 7% in Europe, 2% in Asia, which includes a decline of 6% in China, 1% in North America and 14% in South America.

The Company reported second quarter 2019 U.S. GAAP net income of $274 million and earnings of $1.07 per diluted share, compared to $291 million and $1.10 per diluted share in the prior year period. Second quarter Adjusted Net Income, a non-GAAP financial measure defined below, totaled $342 million, or $1.33 per diluted share, compared to $372 million, or $1.40 per diluted share, in the prior year period.

Second quarter Adjusted Operating Income, a non-GAAP financial measure defined below, was $405 million, compared to $474 million in the prior year period. Adjusted Operating Income margin was 11.2%, compared to 12.9% in the prior year period, reflecting the unfavorable impacts of foreign currency exchange, vehicle production declines in China and continued incremental investments for growth, partially offset by above-market sales growth. Depreciation and amortization expense totaled $188 million, an increase from $156 million in the prior year period, resulting from non-cash impairment charges and increases related to our acquisitions and capital investments.

Interest expense for the second quarter totaled $43 million, as compared to $36 million in the prior year period, which reflects the impacts of our debt refinancing transactions in the first quarter of 2019.

Tax expense in the second quarter of 2019 was $31 million, resulting in an effective tax rate of approximately 10%, which includes approximately 5 points for the impact of favorable discrete items recorded during the period. Tax expense in the second quarter of 2018 was $83 million, resulting in an effective tax rate of approximately 22%, which includes $24 million, or approximately 6 points, due to the adjustment to the provisional amounts recorded for the one-time impacts of the U.S. tax reform enactment.

The Company generated net cash flow from operating activities of $512 million in the second quarter.

Year-to-Date 2019 Results

For the six months ended June 30, 2019, the Company reported U.S. GAAP revenue of $7.2 billion, a decrease of 2% from the prior year period. Adjusted for currency exchange, commodity movements and divestitures, revenue increased by 4% during the period. This reflects growth of 6% in Europe, 4% in North America and flat performance in South America and Asia, which includes a decline of 9% in China.

For the 2019 year-to-date period, the Company reported U.S. GAAP net income of $514 million and earnings of $1.99 per diluted share, compared to $598 million and $2.25 per diluted share in the prior year period. Year-to-date Adjusted Net Income totaled $615 million, or $2.38 per diluted share, compared to $715 million, or $2.69 per diluted share, in the prior year period.

The Company reported Adjusted Operating Income of $750 million for the six months ended June 30, 2019, compared to $901 million in the prior year period. Adjusted Operating Income margin was 10.4% for the six months ended June 30, 2019, compared to 12.3% in the prior year period, reflecting the unfavorable impacts of foreign currency exchange, vehicle production declines in China and continued incremental investments for growth, partially offset by above-market sales growth. Depreciation and amortization expense totaled $361 million, an increase from $311 million in the prior year period, resulting from non-cash impairment charges and increases related to our acquisitions and capital investments.

Interest expense for the six months ended June 30, 2019 totaled $81 million, as compared to $70 million in the prior year period, which reflects the impacts of our debt refinancing transactions in the first quarter of 2019.

Tax expense for the six months ended June 30, 2019 was $64 million, resulting in an effective tax rate of approximately 11%, which includes approximately 4 points for the impact of favorable discrete items recorded during the period. Tax expense in the prior year period was $142 million, resulting in an effective tax rate of approximately 19%, which includes $24 million, or approximately 3 points, due to the adjustment to the provisional amounts recorded for the one-time impacts of the U.S. tax reform enactment.

The Company generated net cash flow from operating activities of $596 million in the six months ended June 30, 2019. As of June 30, 2019, the Company had cash and cash equivalents of $365 million and total available liquidity of $2.2 billion.

Reconciliations of Adjusted Revenue Growth, Adjusted Net Income, Adjusted Net Income Per Share, Adjusted Operating Income 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 the United States ("GAAP") are provided in the attached supplemental schedules.

Share Repurchase Programs

During the second quarter of 2019, the Company repurchased 1.6 million shares for approximately $120 million, leaving approximately $2.1 billion available for future share repurchases. Year-to-date, the Company repurchased 4.5 million shares for approximately $346 million. All repurchased shares were retired, and are reflected as a reduction of ordinary share capital for the par value of the shares, with the excess applied as reductions to additional paid-in-capital and retained earnings.

Q3 and Full Year 2019 Outlook

The Company's third quarter and full year 2019 financial guidance is as follows:

(in millions, except per share amounts)

Q3 2019 (1)

Full Year 2019 (1)

Net sales

$3,600 - $3,700

$14,525 - $14,725

Adjusted operating income

$415 - $435

$1,650 - $1,690

Adjusted operating income margin

11.5% - 11.8%

11.4% - 11.5%

Adjusted net income per share

$1.27 - $1.33

$5.05 - $5.15

Cash flow from operations


$1,650

Capital expenditures


$800

Adjusted effective tax rate

~15%

12% - 13%


(1)

The Company's third quarter and full year 2019 financial guidance includes $16 million and $44 million, respectively, for the anticipated impacts of tariffs.

Conference Call and Webcast

The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing 877.790.5109 (US domestic) or 647.689.5633 (international) or through a webcast at ir.aptiv.com. The conference ID number is 1475459. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company's website. A replay will be available two hours following the conference call.

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 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 and divestitures. Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, restructuring, other acquisition and portfolio project costs, asset impairments, gains (losses) on business divestitures and deferred compensation related to acquisitions. Other acquisition and portfolio project costs include costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales.

Adjusted Net Income represents net income attributable to Aptiv before restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share represents Adjusted Net Income divided by the weighted average number of diluted shares outstanding for the period. Cash Flow Before Financing represents cash provided by operating activities from continuing operations plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions 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 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 the future of mobility. Visit aptiv.com.

Forward-Looking Statements

This press release, as well as other statements made by Aptiv PLC (the "Company"), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company's strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.

 

APTIV PLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018


(in millions, except per share amounts)

Net sales

$

3,627



$

3,684



$

7,202



$

7,314


Operating expenses:








Cost of sales

2,958



2,958



5,920



5,905


Selling, general and administrative

260



260



516



519


Amortization

43



30



77



60


Restructuring

31



15



57



35


Total operating expenses

3,292



3,263



6,570



6,519


Operating income

335



421



632



795


Interest expense

(43)



(36)



(81)



(70)


Other income (expense), net

6



(7)



22



23


Income before income taxes and equity income

298



378



573



748


Income tax expense

(31)



(83)



(64)



(142)


Income before equity income

267



295



509



606


Equity income, net of tax

4



8



7



13


Net income

271



303



516



619


Net (loss) income attributable to noncontrolling interest

(3)



12



2



21


Net income attributable to Aptiv

$

274



$

291



$

514



$

598










Diluted net income per share:








Diluted net income per share attributable to Aptiv

$

1.07



$

1.10



$

1.99



$

2.25


Weighted average number of diluted shares outstanding

257.26



265.48



258.40



265.96


 

APTIV PLC

CONDENSED CONSOLIDATED BALANCE SHEETS



June 30,
 2019


December 31,
 2018


(Unaudited)



(in millions)

ASSETS




Current assets:




Cash and cash equivalents

$

365



$

567


Restricted cash

16



1


Accounts receivable, net

2,679



2,487


Inventories

1,304



1,277


Other current assets

490



445


Total current assets

4,854



4,777


Long-term assets:




Property, net

3,248



3,179


Operating lease right-of-use assets

433




Investments in affiliates

103



99


Intangible assets, net

1,305



1,380


Goodwill

2,517



2,524


Other long-term assets

648



521


Total long-term assets

8,254



7,703


Total assets

$

13,108



$

12,480


LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Short-term debt

$

517



$

306


Accounts payable

2,284



2,334


Accrued liabilities

1,190



1,054


Total current liabilities

3,991



3,694


Long-term liabilities:




Long-term debt

3,997



4,038


Pension benefit obligations

439



445


Long-term operating lease liabilities

350




Other long-term liabilities

599



633


Total long-term liabilities

5,385



5,116


Total liabilities

9,376



8,810


Commitments and contingencies




Total Aptiv shareholders' equity

3,519



3,459


Noncontrolling interest

213



211


Total shareholders' equity

3,732



3,670


Total liabilities and shareholders' equity

$

13,108



$

12,480


 

APTIV PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Six Months Ended June 30,


2019


2018


(in millions)

Cash flows from operating activities:




Net income

$

516



$

619


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

361



311


Restructuring expense, net of cash paid

(2)



(31)


Deferred income taxes

1



(11)


Income from equity method investments, net of dividends received

(4)



(13)


Loss on extinguishment of debt

6




Other, net

56



51


Changes in operating assets and liabilities:




Accounts receivable, net

(190)



(91)


Inventories

(22)



(157)


Accounts payable

26



145


Other, net

(131)



(49)


Pension contributions

(21)



(22)


Net cash provided by operating activities from continuing operations

596



752


Net cash used in operating activities from discontinued operations



(52)


Net cash provided by operating activities

596



700


Cash flows from investing activities:




Capital expenditures

(451)



(449)


Proceeds from sale of property / investments

9



6


Cost of business acquisitions, net of cash acquired

(23)



(512)


Cost of technology investments

(3)




Settlement of derivatives

(1)



(6)


Net cash used in investing activities

(469)



(961)


Cash flows from financing activities:




Increase (decrease) in other short and long-term debt, net

192



(15)


Repayment of senior notes

(654)




Proceeds from issuance of senior notes, net of issuance costs

641




Contingent consideration and deferred acquisition purchase price payments



(5)


Repurchase of ordinary shares

(346)



(149)


Distribution of cash dividends

(114)



(117)


Taxes withheld and paid on employees' restricted share awards

(34)



(35)


Net cash used in financing activities

(315)



(321)


Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

1



(44)


Decrease in cash, cash equivalents and restricted cash

(187)



(626)


Cash, cash equivalents and restricted cash at beginning of the period

568



1,597


Cash, cash equivalents and restricted cash at end of the period

$

381



$

971


 

APTIV PLC

FOOTNOTES

(Unaudited)


1. Segment Summary



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


%


2019


2018


%


(in millions)




(in millions)



Net Sales












Signal and Power Solutions

$

2,585



$

2,650



(2)%


$

5,147



$

5,267



(2)%

Advanced Safety and User Experience

1,050



1,044



1%


2,073



2,076



—%

Eliminations and Other (a)

(8)



(10)





(18)



(29)




Net Sales

$

3,627



$

3,684





$

7,202



$

7,314
















Adjusted Operating Income












Signal and Power Solutions

$

337



$

386



(13)%


$

620



$

737



(16)%

Advanced Safety and User Experience

68



88



(23)%


130



164



(21)%

Eliminations and Other (a)












Adjusted Operating Income

$

405



$

474





$

750



$

901
















(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 Aptiv for the three and six months ended June 30, 2019 and 2018:



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018


(in millions, except per share amounts)

Weighted average ordinary shares outstanding, basic

257.02



264.81



258.04



265.25


Dilutive shares related to RSUs

0.24



0.67



0.36



0.71


Weighted average ordinary shares outstanding, including
   dilutive shares

257.26



265.48



258.40



265.96


Net income per share attributable to Aptiv








Basic

$

1.07



$

1.10



$

1.99



$

2.25


Diluted

$

1.07



$

1.10



$

1.99



$

2.25


 

APTIV PLC

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 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 U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Revenue Growth in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Revenue Growth is defined as 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 and divestitures. Not all companies use identical calculations of Adjusted Revenue Growth, therefore this presentation may not be comparable to other similarly titled measures of other companies.



Three Months Ended
June 30, 2019


Reported net sales % change

(2)%

Less: foreign currency exchange and commodities

(4)%

Less: divestitures and other, net

(2)%

Adjusted revenue growth

4%




Six Months Ended
June 30, 2019


Reported net sales % change

(2)%

Less: foreign currency exchange and commodities

(4)%

Less: divestitures and other, net

(2)%

Adjusted revenue growth

4%

 

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 U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, restructuring and other special items. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable to other similarly titled measures of other companies. Operating income margin represents Operating income as a percentage of net sales, and Adjusted Operating Income margin represents Adjusted Operating Income as a percentage of net sales.


Consolidated Adjusted Operating Income

















Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018


($ in millions)


$


Margin


$


Margin


$


Margin


$


Margin

Net income attributable to Aptiv

$

274





$

291





$

514





$

598




Interest expense

43





36





81





70




Other (income) expense, net

(6)





7





(22)





(23)




Income tax expense

31





83





64





142




Equity income, net of tax

(4)





(8)





(7)





(13)




Net (loss) income attributable to 
     noncontrolling interest

(3)





12





2





21




Operating income

$

335



9.2

%


$

421



11.4

%


$

632



8.8

%


$

795



10.9

%

Restructuring

31





15





57





35




Other acquisition and portfolio project costs

17





22





28





41




Asset impairments

10





1





10





1




Deferred compensation related to nuTonomy 
     acquisition

12





15





23





29




Adjusted operating income

$

405



11.2

%


$

474



12.9

%


$

750



10.4

%


$

901



12.3

%

 

Segment Adjusted Operating Income








(in millions)








Three Months Ended June 30, 2019

Signal and
Power Solutions


Advanced
Safety and User
Experience


Eliminations
and Other


Total

Operating income

$

302



$

33



$



$

335


Restructuring

23



8





31


Other acquisition and portfolio project costs

11



6





17


Asset impairments

1



9





10


Deferred compensation related to nuTonomy acquisition



12





12


Adjusted operating income

$

337



$

68



$



$

405










Depreciation and amortization (a)

$

136



$

52



$



$

188










Three Months Ended June 30, 2018

Signal and
Power Solutions


Advanced
Safety and User
Experience


Eliminations
and Other


Total

Operating income

$

357



$

64



$



$

421


Restructuring

11



4





15


Other acquisition and portfolio project costs

17



5





22


Asset impairments

1







1


Deferred compensation related to nuTonomy acquisition



15





15


Adjusted operating income

$

386



$

88



$



$

474










Depreciation and amortization (a)

$

118



$

38



$



$

156










Six Months Ended June 30, 2019

Signal and
Power Solutions


Advanced
Safety and User
Experience


Eliminations
and Other


Total

Operating income

$

559



$

73



$



$

632


Restructuring

42



15





57


Other acquisition and portfolio project costs

18



10





28


Asset impairments

1



9





10


Deferred compensation related to nuTonomy acquisition



23





23


Adjusted operating income

$

620



$

130



$



$

750










Depreciation and amortization (a)

$

267



$

94



$



$

361










Six Months Ended June 30, 2018

Signal and
Power Solutions


Advanced
Safety and User
Experience


Eliminations
and Other


Total

Operating income

$

679



$

116



$



$

795


Restructuring

29



6





35


Other acquisition and portfolio project costs

28



13





41


Asset impairments

1







1


Deferred compensation related to nuTonomy acquisition



29





29


Adjusted operating income

$

737



$

164



$



$

901










Depreciation and amortization (a)

$

237



$

74



$



$

311










(a) Includes asset impairments.

 

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 U.S. 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 which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net income attributable to Aptiv before restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the weighted average number of diluted shares outstanding for the period. Not all companies use identical calculations of Adjusted Net Income and Adjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies.



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018


(in millions, except per share amounts)

Net income attributable to Aptiv

$

274



$

291



$

514



$

598


Adjusting items:








Restructuring

31



15



57



35


Other acquisition and portfolio project costs

17



22



28



41


Asset impairments

10



1



10



1


Deferred compensation related to nuTonomy acquisition

12



15



23



29


Debt extinguishment costs





6




Transaction and related costs associated with acquisitions



16





5


Gain on changes in fair value of equity investments





(19)




Tax impact of U.S. tax reform enactment



24





24


Tax impact of adjusting items (a)

(2)



(12)



(4)



(18)


Adjusted net income attributable to Aptiv

$

342



$

372



$

615



$

715










Weighted average number of diluted shares outstanding

257.26



265.48



258.40



265.96


Diluted net income per share attributable to Aptiv

$

1.07



$

1.10



$

1.99



$

2.25


Adjusted net income per share

$

1.33



$

1.40



$

2.38



$

2.69



(a)

Represents the income tax impacts of the adjustments made for 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.

 

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 operating activities from continuing operations plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions 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 June 30,


Six Months Ended June 30,


2019


2018


2019


2018


(in millions)

Cash flows from operating activities:








Net income

$

271



$

303



$

516



$

619


Adjustments to reconcile net income to net cash provided by 
 operating activities:








Depreciation and amortization

188



156



361



311


Restructuring expense, net of cash paid

3



(15)



(2)



(31)


Working capital

59



82



(186)



(103)


Pension contributions

(13)



(11)



(21)



(22)


Other, net

4



51



(72)



(22)


Net cash provided by operating activities from continuing
  operations

512



566



596



752










Cash flows from investing activities:








Capital expenditures

(216)



(206)



(451)



(449)


Cost of business acquisitions, net of cash acquired

(25)



(507)



(23)



(512)


Cost of technology investments





(3)




Settlement of derivatives

1



(6)



(1)



(6)


Other, net

6



3



9



6


Net cash used in investing activities

(234)



(716)



(469)



(961)










Adjusting items:








Adjustment for the cost of business acquisitions, net of cash
  acquired

25



507



23



512


Adjustment for settlement of derivatives related to business
  acquisitions



(4)





(4)


Cash flow before financing

$

303



$

353



$

150



$

299


 

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 Q3


Estimated Full Year


2019 (1)


2019 (1)


($ and shares in millions, except per share amounts)

Adjusted Operating Income

$


Margin (2)


$


Margin (2)

Net income attributable to Aptiv

$

294





$

1,121




Interest expense

44





172




Other income, net

(9)





(32)




Income tax expense

50





163




Equity income, net of tax

(9)





(13)




Net income attributable to noncontrolling interest

7





28




Operating income

377



10.3

%


1,439



9.8

%

Restructuring

26





133




Other acquisition and portfolio project costs

11





45




Asset impairments





10




Deferred compensation related to nuTonomy acquisition

11





43




Adjusted operating income

$

425



11.6

%


$

1,670



11.4

%









Adjusted Net Income Per Share








Net income attributable to Aptiv

$

294





$

1,121




Restructuring

26





133




Other acquisition and portfolio project costs

11





45




Asset impairments





10




Deferred compensation related to nuTonomy acquisition

11





43




Debt extinguishment costs





6




Gain on changes in fair value of equity investments





(19)




Tax impact of adjusting items

(8)





(26)




Adjusted net income attributable to Aptiv

$

334





$

1,313












Weighted average number of diluted shares outstanding

256.66





257.62




Diluted net income per share attributable to Aptiv

$

1.15





$

4.35




Adjusted net income per share

$

1.30





$

5.10





 

(1) Prepared at the estimated mid-point of the Company's financial guidance range.


(2) Represents operating income and Adjusted Operating Income, respectively, as a percentage of estimated net sales.

 

Cision View original content:http://www.prnewswire.com/news-releases/aptiv-reports-second-quarter-2019-financial-results-ahead-of-expectations-strong-outgrowth-and-operating-performance-despite-weak-macros-300893586.html

SOURCE Aptiv PLC

Categories: Press Releases

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