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DUBLIN, Aug. 5, 2021 -- Aptiv PLC (NYSE: APTV), a global technology company focused on making mobility safer, greener and more connected, today reported second quarter 2021 U.S. GAAP earnings of $0.54 per diluted share. Excluding special items, second quarter earnings totaled $0.60 per diluted share.
Second Quarter Financial Highlights Include:
- U.S. GAAP revenue of $3.8 billion, an increase of 94%
- Revenue increased 85% adjusted for currency exchange, commodity movements and divestitures
- U.S. GAAP net income of $147 million, diluted earnings per share of $0.54
- Excluding special items, diluted earnings per share of $0.60
- U.S. GAAP operating income margin of 7.5%
- Adjusted Operating Income margin of 7.9%, Adjusted Operating Income of $301 million; Adjusted EBITDA of $498 million
- Generated $297 million of cash from operations
- Extended Credit Agreement to June 2026; converted to a green facility utilizing the Company's existing sustainability-linked metrics and commitments
Year-to-Date Financial Highlights Include:
- U.S. GAAP revenue of $7.8 billion, an increase of 51%
- Revenue increased 44% adjusted for currency exchange, commodity movements and divestitures
- Revenue increased 44% adjusted for currency exchange, commodity movements and divestitures
- U.S. GAAP net income of $426 million, diluted earnings per share of $1.57
- Excluding special items, diluted earnings per share of $1.66
- U.S. GAAP operating income margin of 9.1%
- Adjusted Operating Income margin of 9.4%, Adjusted Operating Income of $738 million; Adjusted EBITDA of $1,128 million
Generated $549 million of cash from operations
"Aptiv's first half performance, which includes record revenue growth and growth over market, in addition to record new business awards, further validates the strength of our portfolio of market relevant technologies aligned to the safe, green and connected megatrends," said Kevin Clark, president and chief executive officer. "Our relentless focus on serving customers in this challenging environment is driving incremental volume and market share gains for Aptiv. These higher demand levels are represented in our raised outlook for the year, as we continue to work diligently to mitigate headwinds while the industry strives to meet post-pandemic demand levels. Our unique brain and nervous system capabilities are providing distinct advantages to help customers transition to the electrified, software-defined vehicle of the future, resulting in more content and expansive market opportunities. Moving forward, I am confident that the benefits of our flexible and sustainable business model, our track record of innovation and execution, and our strong balance sheet will continue to create value for all of our stakeholders."
Second Quarter 2021 Results:
For the three months ended June 30, 2021, the Company reported U.S. GAAP revenue of $3.8 billion, an increase of 94% from the prior year period. Adjusted for currency exchange, commodity movements and divestitures, revenue increased by 85% in the second quarter, lapping the impacts of the pandemic-related shutdowns in the prior year period. This reflects growth of 154% in North America, 123% in Europe, 17% in Asia, which includes growth of 2% in China, and 287% in South America, our smallest region.
Year-to-Date 2021 Results:
The Company's full year 2021 financial guidance is as follows:
| (in millions, except per share amounts) | Full Year 2021 |
| Net sales | $16,115 - $16,415 |
| Adjusted EBITDA | $2,380 - $2,460 |
| Adjusted EBITDA margin | 14.8% - 15.0% |
| Adjusted operating income | $1,590 - $1,670 |
| Adjusted operating income margin | 9.9% - 10.2% |
| Adjusted net income per share (1) | $3.63 - $3.87 |
| Cash flow from operations | $1,800 |
| Capital expenditures | $750 |
| Adjusted effective tax rate | 12% |
(1) The Company’s full year 2021 financial guidance includes approximately $0.80 per diluted share for the anticipated equity losses to be recognized by Aptiv from the performance of the Motional autonomous driving joint venture.
The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing +1.866.548.4713 (U.S.) or +1.929.477.0324 (international) or through a webcast at ir.aptiv.com. The conference ID number is 7245401. 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 (Loss), Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) 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 (Loss) represents net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, restructuring, other acquisition and portfolio project costs, asset impairments, gains (losses) on business divestitures and other transactions 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 margin is defined as Adjusted Operating Income (Loss) as a percentage of net sales. Adjusted EBITDA represents net income (loss) 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 (Loss) represents net income (loss) attributable to Aptiv before restructuring and other special items, including the tax impact thereon. Adjusted Net Income (Loss) Per Share represents Adjusted Net Income (Loss) 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 U.S. GAAP purposes of calculating the weighted average number of diluted shares outstanding. Cash Flow Before Financing represents cash provided by operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and net proceeds from the divestiture of 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 (Loss), Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) 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 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 and resulting from the United Kingdom’s exit from the European Union, commonly referred to as “Brexit”; uncertainties posed by the COVID-19 pandemic and the difficulty in predicting its future course and its impact on the global economy and the Company’s future operations; 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 materials integral to the Company’s products, including the current 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; 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.