Record Adjusted Earnings Per Share Reflecting
Strong Operating Performance
Aptiv PLC (NYSE: APTV), a global technology company focused on
making the world safer, greener and more connected, today reported
third quarter 2024 U.S. GAAP earnings of $1.48 per diluted share.
Excluding special items, third quarter earnings totaled $1.83 per
diluted share.
Third Quarter Financial Highlights
Include:
- U.S. GAAP revenue of $4.9 billion, a decrease of 5%
- Revenue decreased 6% adjusted for currency exchange and
commodity movements, compared to AWM1 of (5)%
- U.S. GAAP net income of $363 million, U.S. GAAP net income
margin of 7.5%; U.S. GAAP diluted earnings per share of $1.48
- Excluding special items, diluted earnings per share of
$1.83
- U.S. GAAP operating income of $503 million, U.S. GAAP
operating income margin of 10.4%
- Adjusted Operating Income of $593 million, Adjusted
Operating Income margin of 12.2%; Adjusted EBITDA of $778 million,
Adjusted EBITDA margin of 16.0%
- Generated $499 million of cash from operations
- Returned $2.32 billion to shareholders through share
repurchases, including $2.25 billion under the $3.0 billion
Accelerated Share Repurchase Program
Year-to-Date Financial Highlights
Include:
- U.S. GAAP revenue of $14.8 billion, a decrease of 2%
- Revenue decreased 2% adjusted for currency exchange and
commodity movements, compared to AWM1 of (2)%
- U.S. GAAP net income of $1,519 million, U.S. GAAP net income
margin of 10.3%; U.S. GAAP diluted earnings per share of $5.76
- Excluding special items, diluted earnings per share of
$4.53
- U.S. GAAP operating income of $1,363 million, U.S. GAAP
operating income margin of 9.2%
- Adjusted Operating Income of $1,743 million, Adjusted
Operating Income margin of 11.8%; Adjusted EBITDA of $2,286
million, Adjusted EBITDA margin of 15.4%
- Generated $1,386 million of cash from operations
- Returned $3.35 billion to shareholders through share
repurchases
“Aptiv delivered record adjusted earnings per share this
quarter, reflecting strong operating results and benefits from our
recent capital allocation actions,” said Kevin Clark, chairman and
chief executive officer. “Our industry-leading solutions, global
capabilities and relentless focus on operational excellence
continue to demonstrate our resiliency while also delivering record
third quarter profitability. Our revised financial outlook reflects
the impact of incremental customer schedule reductions and broader
weakness in automotive production volumes. Despite near-term
headwinds, we are confident in the long-term megatrends of safe,
green and connected, and we are well-positioned to support our
customers in this transition, while maximizing value to
shareholders.”
1
Represents global vehicle production
weighted to the geographic regions in which the Company generates
its revenue (“AWM”).
Third Quarter 2024 Results
For the three months ended September 30, 2024, the Company
reported U.S. GAAP revenue of $4.9 billion, a decrease of 5% from
the prior year period. Adjusted for currency exchange and commodity
movements, revenue decreased by 6% in the third quarter. This
reflects declines of 7% in North America, 6% in Europe, 4% in Asia,
which includes declines of 6% in China, and 12% in South America,
our smallest region.
The Company reported third quarter 2024 U.S. GAAP net income of
$363 million, earnings of $1.48 per diluted share and net income
margin of 7.5%, compared to $1,629 million, $5.76 per diluted share
and 31.9% in the prior year period. Third quarter Adjusted Net
Income, a non-GAAP financial measure defined below, totaled $449
million, or earnings of $1.83 per diluted share, compared to $367
million, or $1.30 per diluted share, in the prior year period.
Third quarter U.S. GAAP operating income was $503 million,
compared to $446 million in the prior year period. The Company
reported third quarter Adjusted Operating Income, a non-GAAP
financial measure defined below, of $593 million, compared to $560
million in the prior year period. Adjusted Operating Income margin
was 12.2%, compared to 11.0% in the prior year period, primarily
reflecting improved operating performance, including the benefits
of cost reduction initiatives. Depreciation and amortization
expense totaled $241 million, an increase from $226 million in the
prior year period.
Interest expense for the third quarter totaled $101 million, an
increase from $75 million in the prior year period.
Tax expense in the third quarter of 2024 was $32 million,
resulting in an effective tax rate of approximately 8%. Tax benefit
in the third quarter of 2023 was $1,312 million, which primarily
reflects a deferred tax benefit of approximately $1.4 billion
recognized as a result of transactions entered into as part of a
reorganization of the Company’s corporate entity structure.
The Company generated net cash flow from operating activities of
$499 million in the third quarter, compared to $746 million in the
prior year period.
Year-to-Date 2024 Results
For the nine months ended September 30, 2024, the Company
reported U.S. GAAP revenue of $14.8 billion, a decrease of 2% from
the prior year period. Adjusted for currency exchange, commodity
movements and acquisitions, revenue decreased by 2% during the
period. This reflects declines of 3% in Europe, 2% in North America
and 11% in South America, our smallest region, partially offset by
growth of 1% in Asia, which includes growth of 1% in China.
For the 2024 year-to-date period, the Company reported U.S. GAAP
net income of $1,519 million, earnings of $5.76 per diluted share
and net income margin of 10.3%, compared to $2,004 million, $7.17
per diluted share and 13.2% in the prior year period. Year-to-date
Adjusted Net Income totaled $1,195 million, or $4.53 per diluted
share, compared to $981 million, or $3.46 per diluted share, in the
prior year period.
The Company reported U.S. GAAP operating income of $1,363
million for the nine months ended September 30, 2024, compared to
$1,204 million in the prior year period. Adjusted Operating Income
was $1,743 million for the nine months ended September 30, 2024,
compared to $1,527 million in the prior year period. Adjusted
Operating Income margin was 11.8% for the nine months ended
September 30, 2024, compared to 10.1% in the prior year period,
primarily reflecting improved operating performance, including the
benefits of cost reduction initiatives. Depreciation and
amortization expense totaled $719 million, an increase from $666
million in the prior year period.
Interest expense for the nine months ended September 30, 2024
totaled $230 million, an increase from $214 million in the prior
year period.
Tax expense for the nine months ended September 30, 2024 was
$159 million, resulting in an effective tax rate of approximately
9%. Tax benefit in the prior year period was $1,248 million, which
primarily reflects a deferred tax benefit of approximately $1.4
billion recognized as a result of transactions entered into as part
of a reorganization of the Company’s corporate entity
structure.
The Company generated net cash flow from operating activities of
$1,386 million in the nine months ended September 30, 2024,
compared to $1,272 million in the prior year period. As of
September 30, 2024, the Company had cash and cash equivalents of
$1.1 billion and total available liquidity of $3.9 billion.
Reconciliations of Adjusted Revenue Growth, Adjusted Net Income,
Adjusted Net Income Per Share, Adjusted Operating Income, Adjusted
EBITDA 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 Program
During the third quarter of 2024, the Company repurchased 31.7
million shares for $2.32 billion, including 30.8 million shares
repurchased under the terms of the Company’s Accelerated Share
Repurchase Program, with a value of $2.25 billion. Year-to-date,
the Company repurchased 44.4 million shares for $3.35 billion. As
of September 30, 2024, $2.52 billion remained available for future
share repurchases under the existing $5.0 billion authorization.
All repurchased shares were retired.
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
$19,600 - $19,900
U.S. GAAP net income
$1,740 - $1,840
U.S. GAAP net income margin
8.9% - 9.2%
U.S. GAAP operating income
$1,765 - $1,865
U.S. GAAP operating income margin
9.0% - 9.4%
Adjusted EBITDA
$3,025 - $3,125
Adjusted EBITDA margin
15.4% - 15.7%
Adjusted operating income
$2,300 - $2,400
Adjusted operating income margin
11.7% - 12.1%
U.S. GAAP diluted net income per share
$6.80 - $7.10
Adjusted net income per share (1)
$6.00 - $6.30
Cash flow from operations
$2,150
Capital expenditures
$875
U.S. GAAP effective tax rate
~10.6%
Adjusted effective tax rate
~16.5%
(1) The Company’s full year 2024 financial
guidance includes approximately $0.55 per diluted share for the
anticipated equity losses to be recognized by Aptiv from the
performance of the Motional autonomous driving joint venture.
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
+1.800.239.9838 (U.S.) or +1.323.994.2093 (international) or
through a webcast at ir.aptiv.com. The conference ID number is
1329199. 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 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 Weighted Average
Number of Diluted Shares Outstanding for the period. 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 focused on making the world
safer, greener and more connected. 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, certain investments and acquisitions 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
include, but are not limited to, the following: global and regional
economic conditions, including conditions affecting the credit
market; global inflationary pressures; uncertainties created by the
conflict between Ukraine and Russia, and its impacts to the
European and global economies and our operations in each country;
uncertainties created by the conflicts in the Middle East and their
impacts on global economies; fluctuations in interest rates and
foreign currency exchange rates; the cyclical nature of global
automotive sales and production; the potential disruptions in the
supply of and changes in the competitive environment for raw
material and other components integral to the Company’s products,
including the ongoing semiconductor supply shortage; the Company’s
ability to maintain contracts that are critical to its operations;
potential changes to beneficial free trade laws and regulations,
such as the United States-Mexico-Canada Agreement; changes to tax
laws; future significant public health crises; the ability of the
Company to integrate and realize the expected benefits of recent
transactions; the ability of the Company to attract, motivate
and/or retain key executives; the ability of the Company to avoid
or continue to operate during a strike, or partial work stoppage or
slow down by any of its unionized employees or those of its
principal customers; and the ability of the Company to attract and
retain customers. Additional factors 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in millions, except per share
amounts)
Net sales
$
4,854
$
5,114
$
14,806
$
15,132
Operating expenses:
Cost of sales
3,951
4,221
12,057
12,615
Selling, general and administrative
331
360
1,102
1,055
Amortization
53
59
159
177
Restructuring
16
28
125
81
Total operating expenses
4,351
4,668
13,443
13,928
Operating income
503
446
1,363
1,204
Interest expense
(101
)
(75
)
(230
)
(214
)
Other income, net
5
26
30
36
Gain on Motional transactions
—
—
641
—
Income before income taxes and equity
loss
407
397
1,804
1,026
Income tax (expense) benefit
(32
)
1,312
(159
)
1,248
Income before equity loss
375
1,709
1,645
2,274
Equity loss, net of tax
(7
)
(72
)
(110
)
(227
)
Net income
368
1,637
1,535
2,047
Net income attributable to noncontrolling
interest
7
8
18
15
Net loss attributable to redeemable
noncontrolling interest
(2
)
—
(2
)
(1
)
Net income attributable to Aptiv
363
1,629
1,519
2,033
Mandatory convertible preferred share
dividends
—
—
—
(29
)
Net income attributable to ordinary
shareholders
$
363
$
1,629
$
1,519
$
2,004
Diluted net income per share:
Diluted net income per share attributable
to ordinary shareholders
$
1.48
$
5.76
$
5.76
$
7.17
Weighted average number of diluted shares
outstanding
245.78
283.01
263.77
283.44
APTIV PLC
CONDENSED CONSOLIDATED BALANCE
SHEETS
September 30,
2024
December 31,
2023
(Unaudited)
(in millions)
ASSETS
Current assets:
Cash and cash equivalents
$
1,054
$
1,640
Short-term investments
791
—
Accounts receivable, net
3,653
3,546
Inventories
2,550
2,365
Other current assets
640
696
Total current assets
8,688
8,247
Long-term assets:
Property, net
3,797
3,785
Operating lease right-of-use assets
499
540
Investments in affiliates
1,503
1,443
Intangible assets, net
2,235
2,399
Goodwill
5,170
5,151
Other long-term assets
2,874
2,862
Total long-term assets
16,078
16,180
Total assets
$
24,766
$
24,427
LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$
1,257
$
9
Accounts payable
2,989
3,151
Accrued liabilities
1,558
1,648
Total current liabilities
5,804
4,808
Long-term liabilities:
Long-term debt
8,283
6,204
Pension benefit obligations
413
417
Long-term operating lease liabilities
421
453
Other long-term liabilities
647
701
Total long-term liabilities
9,764
7,775
Total liabilities
15,568
12,583
Commitments and contingencies
Redeemable noncontrolling interest
99
99
Total Aptiv shareholders’ equity
8,882
11,548
Noncontrolling interest
217
197
Total shareholders’ equity
9,099
11,745
Total liabilities, redeemable
noncontrolling interest and shareholders’ equity
$
24,766
$
24,427
APTIV PLC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September
30,
2024
2023
(in millions)
Cash flows from operating activities:
Net income
$
1,535
$
2,047
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
719
666
Restructuring expense, net of cash
paid
(65
)
4
Deferred income taxes
(1
)
(1,408
)
Loss from equity method investments, net
of dividends received
120
232
Loss on extinguishment of debt
12
—
Gain on Motional transactions
(641
)
—
Other, net
136
125
Changes in operating assets and
liabilities:
Accounts receivable, net
(107
)
(213
)
Inventories
(185
)
(87
)
Accounts payable
(39
)
(1
)
Other, net
(77
)
(73
)
Pension contributions
(21
)
(20
)
Net cash provided by operating
activities
1,386
1,272
Cash flows from investing activities:
Capital expenditures
(664
)
(703
)
Proceeds from sale of property
3
3
Proceeds from business divestitures, net
of cash sold
—
(17
)
Cost of business acquisitions and other
transactions, net of cash acquired
—
(83
)
Cost of technology investments
(121
)
(1
)
Proceeds from the sale of equity method
investment
448
—
Purchase of short-term investments
(748
)
—
Settlement of derivatives
(2
)
6
Net cash used in investing activities
(1,084
)
(795
)
Cash flows from financing activities:
Increase (decrease) in other short and
long-term debt, net
1,036
(30
)
Repayment of senior notes
(700
)
—
Proceeds from issuance of senior and
junior notes, net of issuance costs
2,920
—
Proceeds from bridge loan, net of issuance
costs
2,483
—
Repayment of bridge loan
(2,500
)
—
Contingent consideration payments
—
(10
)
Repurchase of ordinary shares
(4,104
)
(98
)
Distribution of mandatory convertible
preferred share cash dividends
—
(32
)
Taxes withheld and paid on employees’
restricted share awards
(23
)
(31
)
Net cash used in financing activities
(888
)
(201
)
Effect of exchange rate fluctuations on
cash, cash equivalents and restricted cash
—
(23
)
(Decrease) increase in cash, cash
equivalents and restricted cash
(586
)
253
Cash, cash equivalents and restricted cash
at beginning of the period
1,640
1,555
Cash, cash equivalents and restricted cash
at end of the period
$
1,054
$
1,808
APTIV PLC
FOOTNOTES
(Unaudited)
1. Segment Summary
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
%
2024
2023
%
(in millions)
(in millions)
Net Sales
Signal and Power Solutions
$
3,443
$
3,687
(7
)%
$
10,442
$
10,830
(4
)%
Advanced Safety and User Experience
1,427
1,441
(1
)%
4,410
4,339
2
%
Eliminations and Other (a)
(16
)
(14
)
(46
)
(37
)
Net Sales
$
4,854
$
5,114
$
14,806
$
15,132
Adjusted Operating Income
Signal and Power Solutions
$
397
$
451
(12
)%
$
1,222
$
1,217
—
%
Advanced Safety and User Experience
196
109
80
%
521
310
68
%
Adjusted Operating Income
$
593
$
560
$
1,743
$
1,527
(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 and nine months ended September 30, 2024 and
2023:
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in millions, except per share
amounts)
Weighted average ordinary shares
outstanding, basic
245.48
282.84
263.55
275.56
Dilutive shares related to RSUs
0.30
0.17
0.22
0.13
Weighted average MCPS Converted Shares
—
—
—
7.75
Weighted average ordinary shares
outstanding, including dilutive shares
245.78
283.01
263.77
283.44
Net income per share attributable to
ordinary shareholders:
Basic
$
1.48
$
5.76
$
5.76
$
7.27
Diluted
$
1.48
$
5.76
$
5.76
$
7.17
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 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 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,
acquisitions, divestitures and other transactions. 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 September
30, 2024
Reported net sales % change
(5
)%
Less: foreign currency exchange and
commodities
(1
)%
Adjusted revenue growth
(6
)%
Nine Months Ended September
30, 2024
Reported net sales % change
(2
)%
Less: foreign currency exchange and
commodities
—
%
Adjusted revenue growth
(2
)%
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) benefit, equity income (loss),
net of tax, amortization, 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
($ in millions)
$
Margin
$
Margin
$
Margin
$
Margin
Net income attributable to ordinary
shareholders
$
363
7.5
%
$
1,629
31.9
%
$
1,519
10.3
%
$
2,004
13.2
%
Mandatory convertible preferred share
dividends
—
—
—
29
Net income attributable to Aptiv
$
363
7.5
%
$
1,629
31.9
%
$
1,519
10.3
%
$
2,033
13.4
%
Interest expense
101
75
230
214
Other income, net
(5
)
(26
)
(30
)
(36
)
Gain on Motional transactions
—
—
(641
)
—
Income tax expense (benefit)
32
(1,312
)
159
(1,248
)
Equity loss, net of tax
7
72
110
227
Net income attributable to noncontrolling
interest
7
8
18
15
Net loss attributable to redeemable
noncontrolling interest
(2
)
—
(2
)
(1
)
Operating income
$
503
10.4
%
$
446
8.7
%
$
1,363
9.2
%
$
1,204
8.0
%
Amortization
53
59
159
177
Restructuring
16
28
125
81
Other acquisition and portfolio project
costs
13
20
66
45
Asset impairments
3
—
17
—
Compensation expense related to
acquisitions
5
7
13
20
Adjusted operating income
$
593
12.2
%
$
560
11.0
%
$
1,743
11.8
%
$
1,527
10.1
%
Segment Adjusted Operating
Income
(in millions)
Three Months Ended September 30,
2024
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
341
$
162
$
503
Amortization
31
22
53
Restructuring
13
3
16
Other acquisition and portfolio project
costs
9
4
13
Asset impairments
3
—
3
Compensation expense related to
acquisitions
—
5
5
Adjusted operating income
$
397
$
196
$
593
Depreciation and amortization (a)
$
170
$
71
$
241
Three Months Ended September 30,
2023
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
395
$
51
$
446
Amortization
35
24
59
Restructuring
7
21
28
Other acquisition and portfolio project
costs
14
6
20
Compensation expense related to
acquisitions
—
7
7
Adjusted operating income
$
451
$
109
$
560
Depreciation and amortization (a)
$
160
$
66
$
226
Nine Months Ended September 30,
2024
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
992
$
371
$
1,363
Amortization
93
66
159
Restructuring
89
36
125
Other acquisition and portfolio project
costs
45
21
66
Asset impairments
3
14
17
Compensation expense related to
acquisitions
—
13
13
Adjusted operating income
$
1,222
$
521
$
1,743
Depreciation and amortization (a)
$
493
$
226
$
719
Nine Months Ended September 30,
2023
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
1,054
$
150
$
1,204
Amortization
107
70
177
Restructuring
22
59
81
Other acquisition and portfolio project
costs
34
11
45
Compensation expense related to
acquisitions
—
20
20
Adjusted operating income
$
1,217
$
310
$
1,527
Depreciation and amortization (a)
$
464
$
202
$
666
(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 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 EBITDA in its financial decision making process,
to evaluate performance of the Company and for internal reporting,
planning and forecasting purposes. Adjusted EBITDA is defined as
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. Not all companies use
identical calculations of Adjusted EBITDA, therefore this
presentation may not be comparable to other similarly titled
measures of other companies.
Consolidated Adjusted EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in millions)
Net income attributable to ordinary
shareholders
$
363
$
1,629
$
1,519
$
2,004
Mandatory convertible preferred share
dividends
—
—
—
29
Net income attributable to Aptiv
363
1,629
1,519
2,033
Interest expense
101
75
230
214
Income tax expense (benefit)
32
(1,312
)
159
(1,248
)
Net income attributable to noncontrolling
interest
7
8
18
15
Net loss attributable to redeemable
noncontrolling interest
(2
)
—
(2
)
(1
)
Depreciation and amortization
241
226
719
666
EBITDA
$
742
$
626
$
2,643
$
1,679
Other income, net
(5
)
(26
)
(30
)
(36
)
Gain on Motional transactions
—
—
(641
)
—
Equity loss, net of tax
7
72
110
227
Restructuring
16
28
125
81
Other acquisition and portfolio project
costs
13
20
66
45
Compensation expense related to
acquisitions
5
7
13
20
Adjusted EBITDA
$
778
$
727
$
2,286
$
2,016
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 amortization,
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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in millions, except per share
amounts)
Net income attributable to ordinary
shareholders
$
363
$
1,629
$
1,519
$
2,004
Mandatory convertible preferred share
dividends (a)
—
—
—
29
Net income attributable to Aptiv
363
1,629
1,519
2,033
Adjusting items:
Amortization
53
59
159
177
Restructuring
16
28
125
81
Other acquisition and portfolio project
costs
13
20
66
45
Asset impairments
3
—
17
—
Compensation expense related to
acquisitions
5
7
13
20
Debt extinguishment costs
12
—
12
—
Costs associated with acquisitions and
other transactions
—
—
—
4
Impairment of equity investments without
readily determinable fair value
—
—
—
18
Loss on change in fair value of publicly
traded equity securities
5
—
3
6
Gain on Motional transactions
—
—
(641
)
—
Tax impact of intercompany transfers of
intellectual property and other related transactions (b)
—
(1,359
)
—
(1,359
)
Tax impact of adjusting items (c)
(21
)
(17
)
(78
)
(44
)
Adjusted net income attributable to
Aptiv
$
449
$
367
$
1,195
$
981
Weighted average number of diluted shares
outstanding (a)
245.78
283.01
263.77
283.44
Diluted net income per share attributable
to ordinary shareholders
$
1.48
$
5.76
$
5.76
$
7.17
Adjusted net income per share
$
1.83
$
1.30
$
4.53
$
3.46
(a)
On June 15, 2023, each
outstanding share of the Company’s 5.50% Mandatory Convertible
Preferred Shares (the “MCPS”) converted into 1.0754 ordinary shares
of the Company. For purposes of calculating Adjusted Net Income Per
Share, the Company has excluded the impact of the MCPS dividends
for the nine months ended September 30, 2023 and assumed the “if
converted” method of share dilution as the assumed conversion of
the MCPS into ordinary shares on a weighted average basis was more
dilutive to net income per share than the impact of the MCPS
dividends (method already applied for U.S. GAAP purposes of
calculating the weighted average number of diluted shares
outstanding).
(b)
In response to the OECD’s Pillar
Two Directive, the Company initiated changes to its corporate
entity structure, including intercompany transfers of certain
intellectual property to one of its subsidiaries in Switzerland
during the third quarter of 2023. Furthermore, during the third
quarter, the Company’s Swiss subsidiary was granted a ten year tax
incentive, beginning in 2024. This adjustment represents the total
income tax benefits recorded as a result of these transactions
during the three and nine months ended September 30, 2023.
(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.
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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in millions)
Cash flows from operating activities:
Net income
$
368
$
1,637
$
1,535
$
2,047
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
241
226
719
666
Restructuring expense, net of cash
paid
(31
)
4
(65
)
4
Working capital
(170
)
72
(331
)
(301
)
Pension contributions
(8
)
(6
)
(21
)
(20
)
Increase in deferred income tax assets
from intercompany transfers of intellectual property and other
related transactions
—
(1,359
)
—
(1,359
)
Gain on Motional transactions
—
—
(641
)
—
Other, net
99
172
190
235
Net cash provided by operating
activities
499
746
1,386
1,272
Cash flows from investing activities:
Capital expenditures
(173
)
(212
)
(664
)
(703
)
Proceeds from business divestitures, net
of cash sold
—
—
—
(17
)
Cost of business acquisitions and other
transactions, net of cash acquired
—
—
—
(83
)
Cost of technology investments
(81
)
—
(121
)
(1
)
Proceeds from the sale of equity method
investment
—
—
448
—
Purchase of short-term investments
—
—
(748
)
—
Settlement of derivatives
(2
)
7
(2
)
6
Other, net
1
—
3
3
Net cash used in investing activities
(255
)
(205
)
(1,084
)
(795
)
Adjusting items:
Adjustment for cost of business
acquisitions and other transactions, net of cash acquired
—
—
—
83
Adjustment for cost of significant
technology investments
81
—
121
—
Adjustment for proceeds from sale of
equity method investment
—
—
(448
)
—
Cash flow before financing
$
325
$
541
$
(25
)
$
560
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
$
1,790
9.1
%
Interest expense
335
Other income, net
(45
)
Gain on Motional transactions
(640
)
Income tax expense
230
Equity loss, net of tax
125
Net income attributable to noncontrolling
interest (c)
20
Operating income
$
1,815
9.2
%
Amortization
210
Restructuring
210
Other acquisition and portfolio project
costs
70
Asset impairments
20
Compensation expense related to
acquisitions
25
Adjusted operating income
$
2,350
11.9
%
Adjusted EBITDA
Net income attributable to Aptiv
$
1,790
9.1
%
Interest expense
335
Income tax expense
230
Net income attributable to noncontrolling
interest (c)
20
Depreciation and amortization
955
EBITDA
$
3,330
16.9
%
Other income, net
(45
)
Gain on Motional transactions
(640
)
Equity loss, net of tax
125
Restructuring
210
Other acquisition and portfolio project
costs
70
Compensation expense related to
acquisitions
25
Adjusted EBITDA
$
3,075
15.6
%
(a)
Prepared at the estimated
mid-point of the Company’s financial guidance range.
(b)
Represents net income
attributable to Aptiv, 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,
except per share amounts)
Net income attributable to Aptiv
$
1,790
Adjusting items:
Amortization
210
Restructuring
210
Other acquisition and portfolio project
costs
70
Asset impairments
20
Compensation expense related to
acquisitions
25
Loss on change in fair value of publicly
traded equity securities
5
Debt extinguishment costs
10
Gain on Motional transactions
(640
)
Tax impact of adjusting items
(115
)
Adjusted net income attributable to
Aptiv
$
1,585
Weighted average number of diluted shares
outstanding
256.70
Diluted net income per share attributable
to Aptiv
$
6.95
Adjusted net income per share
$
6.15
(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/20241031095433/en/
Investor Contact: Jane Wu +1.617.603.7941
jane.wu@aptiv.com
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