MAUMEE, Ohio, Oct. 28, 2020 /PRNewswire/ --
Third-quarter Highlights
- Sales of $2 billion; up $900 million from the second quarter as
global COVID-19 impacts tempered
- Net income attributable to Dana of $45 million; diluted
EPS of $0.31
- Adjusted EBITDA of $201 million; margin of 10.1
percent of sales
- Diluted adjusted EPS of $0.37
- Strengthens e-Propulsion systems, controls, software, and
electronics engineering expertise with investment in Pi Innovo
LLC
Dana Incorporated (NYSE: DAN) today announced financial results
for the third quarter of 2020.
"As our multiple end markets rebounded from the unprecedented
global COVID-19 pandemic shutdown, I want to commend the Dana team
for an outstanding job, first and foremost ensuring the safety of
our people, while successfully bringing our global manufacturing
operations back on-line to meet growing customer demand," said
Jim Kamsickas, Dana chairman and
CEO. "Light truck and agriculture demand were especially strong,
while many other markets, such as commercial vehicle, realized
strengthened production volumes this quarter."
"We remain intensely focused on helping our customers navigate
these challenging times all while remaining diligent about safety,
cost management, and strengthening our e-Propulsion capabilities,"
he added.
Third-quarter 2020 Financial Results
Sales for the third quarter of 2020 totaled $1.99 billion, compared with $2.16 billion in the same period of 2019. The
decrease is primarily attributable to weaker end-market demand
resulting from the global pandemic shutdown and eventual restart in
June. On a sequential basis, sales in the third quarter increased
$916 million or 85 percent, compared
with the second quarter of this year due to increased demand as
customers rapidly resumed production after the pandemic related
restrictions were lifted.
Dana reported net income of $45 million for the third
quarter of 2020, compared with net income of $111 million in
the same period of 2019, reflecting the lower operating earnings
this year associated with reduced sales due to the COVID-19
pandemic.
Reported diluted earnings per share was $0.31, compared with $0.77 per share in the third quarter of
2019.
Adjusted EBITDA for the third quarter of 2020 was $201 million, compared with $250 million for the same period last
year primarily due to lower sales. Targeted cost-management
actions and a successful restart of operations helped to mitigate
the margin impact from the sales decline and subsequent rapid
recovery.
On a sequential basis, adjusted EBITDA in the third quarter was
$206 million higher than in the
second quarter of this year, generating a 1,060-basis point margin
improvement.
Diluted adjusted earnings per share was $0.37 in the third quarter of 2020, compared
with earnings of $0.74 in the same
period last year. The lower year-over-year comparison was due
to lower earnings in this year's third quarter.
Operating cash flow in the third quarter of 2020 was
$321 million, compared with $231 million provided in the
same period of 2019.
Adjusted free cash flow was $261 million in the third
quarter of 2020, compared with $125 million in 2019. The
impact of lower profit in this year's third quarter was more than
offset by improved working capital efficiency, lower cash taxes and
interest, and lower capital expenditures, compared with the same
period last year.
The company reported it had total liquidity of approximately
$2 billion as of September 30,
2020, including $976 million of available cash and
marketable securities and $979 million available on its
committed revolving credit facility.
Reinstates 2020 Guidance
"We were very pleased to see such a rapid recovery in global
vehicle demand during the third quarter," said Jonathan Collins, Dana's executive vice
president and chief financial officer. "The improving
business conditions across all of our global end markets have
enabled us to reinstate our revised, full-year financial targets.
Dana remains financially strong, and we are well-positioned
to capitalize on the strengthening of our businesses through the
remainder of this year and into next year."
2020 Full-year Financial Targets1
- Sales of $6.650 to
$6.950 billion;
- Adjusted EBITDA of $530 million to $590 million, an implied adjusted EBITDA margin
of approximately 8 percent at the midpoint of the range;
- Diluted adjusted EPS of $0.35 to
$0.55;
- Operating cash flow of up to 5 percent of sales; and
- Adjusted free cash flow of up to 1 percent of sales.
1Net income and diluted EPS guidance are not
provided, as discussed below in Non-GAAP Financial Information.
Strategic Investment in Electric Vehicle Software and
Controls
The company also announced today that it has acquired a
non-controlling stake in Pi Innovo LLC, a leader in embedded
software solutions and electronics control units for the light
vehicle, commercial vehicle, and off-highway markets.
Dana to Host Conference Call at 9 a.m. Wednesday, October 28
Participants may listen to the audio portion of the conference
call either through audio streaming online or by telephone.
Slide viewing is available online via a link provided on the Dana
investor website: www.dana.com/investors. U.S. and Canadian
locations should dial 1-888-311-4590 and international locations
should call 1-706-758-0054. Please enter conference I.D.
1250919 and ask for the "Dana Incorporated's Financial Webcast
and Conference Call." Phone registration will be available
beginning at 8:30 a.m. EDT.
An audio recording of the webcast will be available after
5 p.m. EDT on October 28 by dialing 1-855-859-2056 (U.S. or
Canada) or 1-404-537-3406
(international) and entering conference I.D. 1250919. A
webcast replay will also be available after 5 p.m. EDT and may be accessed via Dana's
investor website.
Non-GAAP Financial Information
This release refers to adjusted EBITDA, a non-GAAP financial
measure which we have defined as net income before interest, income
taxes, depreciation, amortization, equity grant expense,
restructuring expense, non-service cost components of pension and
other postretirement benefit costs, and other adjustments not
related to our core operations (gain/loss on debt extinguishment,
pension settlements, divestitures, impairment, etc.). Adjusted
EBITDA is a measure of our ability to maintain and continue to
invest in our operations and provide shareholder returns. We use
adjusted EBITDA in assessing the effectiveness of our business
strategies, evaluating and pricing potential acquisitions and as a
factor in making incentive compensation decisions. In addition to
its use by management, we also believe adjusted EBITDA is a measure
widely used by securities analysts, investors, and others to
evaluate financial performance of our company relative to other
Tier 1 automotive suppliers. Adjusted EBITDA should not be
considered a substitute for income before income taxes, net income,
or other results reported in accordance with GAAP. Adjusted EBITDA
may not be comparable to similarly titled measures reported by
other companies.
Diluted adjusted EPS is a non-GAAP financial measure, which we
have defined as adjusted net income divided by adjusted diluted
shares. We define adjusted net income as net income (loss)
attributable to the parent company, excluding any nonrecurring
income tax items, restructuring charges, amortization expense, and
other adjustments not related to our core operations (as used in
adjusted EBITDA), net of any associated income tax effects.
We define adjusted diluted shares as diluted shares as determined
in accordance with GAAP based on adjusted net income. This
measure is considered useful for purposes of providing investors,
analysts, and other interested parties with an indicator of ongoing
financial performance that provides enhanced comparability to EPS
reported by other companies. Diluted adjusted EPS is neither
intended to represent nor be an alternative measure to diluted EPS
reported under GAAP.
Free cash flow is a non-GAAP financial measure which we have
defined as net cash provided by (used in) operating activities less
purchases of property, plant, and equipment. Adjusted free
cash flow is a non-GAAP financial measure which we have defined as
net cash provided by (used in) operating activities excluding
voluntary pension contributions less purchases of property, plant,
and equipment. We believe these measures are useful to
investors in evaluating the operational cash flow of the company
inclusive of the spending required to maintain the
operations. Free cash flow and adjusted free cash flow are
not intended to represent nor be an alternative to the measure of
net cash provided by (used in) operating activities reported under
GAAP. Free cash flow and adjusted free cash flow may not be
comparable to similarly titled measures reported by other
companies.
We have not provided reconciliations of preliminary and
projected adjusted EBITDA and diluted adjusted EPS to the most
comparable GAAP measures of net income and diluted EPS. Providing
net income and diluted EPS guidance is potentially misleading and
not practical given the difficulty of projecting event-driven
transactional and other non-core operating items that are included
in net income and diluted EPS, including restructuring actions,
asset impairments, and income tax valuation adjustments.
Reconciliations of these non-GAAP measures with the most comparable
GAAP measures for historical periods are indicative of the
reconciliations that will be prepared upon completion of the
periods covered by the non-GAAP guidance. Please reference the
"Non-GAAP Financial Information" accompanying our quarterly
earnings conference call presentations on our website at
www.dana.com/investors for our GAAP results and the reconciliations
of these measures, were used, to the comparable GAAP measures.
Forward-Looking Statements
Certain statements and projections contained in this news
release are, by their nature, forward-looking within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on our current expectations,
estimates, and projections about our industry and business,
management's beliefs, and certain assumptions made by us, all of
which are subject to change. Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "could," "potential," "continue,"
"ongoing," and similar expressions, and variations or negatives of
these words. These forward-looking statements are not
guarantees of future results and are subject to risks,
uncertainties, and assumptions that could cause our actual results
to differ materially and adversely from those expressed in any
forward-looking statement.
Dana's Annual Report on Form 10-K, subsequent Quarterly Reports
on Form 10-Q, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings discuss important risk
factors that could affect our business, results of operations, and
financial condition. The forward-looking statements in this
news release speak only as of this date. Dana does not undertake
any obligation to revise or update publicly any forward-looking
statement for any reason.
About Dana Incorporated
Dana is a world leader in providing power-conveyance and
energy-management solutions that are engineered to improve the
efficiency, performance, and sustainability of light vehicles,
commercial vehicles, and off-highway equipment. Enabling the
propulsion of conventional, hybrid, and electric-powered vehicles,
Dana equips its customers with critical drive and motion systems;
electrodynamic technologies; and thermal, sealing, and digital
solutions.
In 2019, the company reported sales of $8.6 billion with 36,000 associates in 34
countries across six continents. Based in Maumee, Ohio, USA, and founded in 1904, Dana
has established a high-performance culture that focuses on its
people, and the company has earned recognition around the world as
a top employer. Learn more at dana.com.
DANA
INCORPORATED
|
Consolidated
Statement of Operations (Unaudited)
|
For the
Three Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
September
30,
|
|
|
2020
|
|
2019
|
Net
sales
|
|
$
1,994
|
|
$
2,164
|
Costs and
expenses
|
|
|
|
Cost of
sales
|
1,780
|
|
1,882
|
Selling, general and
administrative expenses
|
111
|
|
128
|
Amortization of
intangibles
|
4
|
|
2
|
Restructuring charges,
net
|
2
|
|
5
|
Pension
settlement charge
|
|
|
(2)
|
Other income
(expense), net
|
(8)
|
|
(8)
|
Earnings before
interest and income taxes
|
89
|
|
137
|
Interest
income
|
3
|
|
3
|
Interest
expense
|
38
|
|
31
|
Earnings before
income taxes
|
54
|
|
109
|
Income tax
expense
|
16
|
|
5
|
Equity in
earnings of affiliates
|
7
|
|
8
|
Net
income
|
45
|
|
112
|
Less: Noncontrolling
interests net income
|
4
|
|
3
|
Less: Redeemable
noncontrolling interests net loss
|
(4)
|
|
(2)
|
Net income
attributable to the parent company
|
$
45
|
|
$
111
|
|
|
|
|
|
Net income
per share available to common stockholders
|
|
|
|
Basic
|
|
$
0.31
|
|
$
0.77
|
Diluted
|
|
$
0.31
|
|
$
0.77
|
|
|
|
|
|
Weighted-average shares outstanding -
Basic
|
144.5
|
|
144.0
|
Weighted-average shares outstanding -
Diluted
|
145.2
|
|
144.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In millions,
except per share amounts)
|
|
September
30,
|
|
|
|
2020
|
|
2019
|
Net
sales
|
|
|
$
4,998
|
|
$
6,633
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
4,588
|
|
5,725
|
Selling, general and
administrative expenses
|
|
299
|
|
404
|
Amortization of
intangibles
|
|
10
|
|
8
|
Restructuring charges,
net
|
|
21
|
|
23
|
Impairment of
goodwill
|
|
(51)
|
|
|
Pension
settlement charge
|
|
|
|
(260)
|
Other income
(expense), net
|
|
(5)
|
|
(31)
|
Earnings before
interest and income taxes
|
|
24
|
|
182
|
Write-off
deferred financing costs
|
|
(5)
|
|
|
Interest
income
|
|
7
|
|
8
|
Interest
expense
|
|
99
|
|
92
|
Earnings (loss)
before income taxes
|
|
(73)
|
|
98
|
Income tax
expense (benefit)
|
|
34
|
|
(27)
|
Equity in
earnings of affiliates
|
|
17
|
|
22
|
Net income
(loss)
|
|
(90)
|
|
147
|
Less: Noncontrolling
interests net income
|
|
6
|
|
9
|
Less: Redeemable
noncontrolling interests net loss
|
|
(25)
|
|
(3)
|
Net income
(loss) attributable to the parent company
|
|
$
(71)
|
|
$
141
|
|
|
|
|
|
|
Net income
(loss) per share available to common
stockholders
|
|
|
|
Basic
|
|
|
$
(0.49)
|
|
$
0.98
|
Diluted
|
|
|
$
(0.49)
|
|
$
0.97
|
|
|
|
|
|
|
Weighted-average shares outstanding -
Basic
|
|
144.4
|
|
144.0
|
Weighted-average shares outstanding -
Diluted
|
|
144.4
|
|
144.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the
Three Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
|
|
2020
|
|
2019
|
Net
income
|
|
$
45
|
|
$
112
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
Currency translation
adjustments
|
|
14
|
|
(46)
|
|
Hedging gains and
losses
|
|
1
|
|
8
|
|
Defined benefit
plans
|
|
4
|
|
5
|
|
Other comprehensive
income (loss)
|
|
19
|
|
(33)
|
Total
comprehensive income
|
|
64
|
|
79
|
|
Less: Comprehensive
(income) loss attributable to noncontrolling interests
|
|
(15)
|
|
9
|
|
Less: Comprehensive
(income) loss attributable to redeemable noncontrolling
interests
|
|
8
|
|
(3)
|
Comprehensive
income attributable to the parent company
|
|
$
57
|
|
$
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
(90)
|
|
$
147
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
Currency translation
adjustments
|
|
(133)
|
|
(16)
|
|
Hedging gains and
losses
|
|
40
|
|
15
|
|
Defined benefit
plans
|
|
11
|
|
365
|
|
Other comprehensive
income (loss)
|
|
(82)
|
|
364
|
Total
comprehensive income (loss)
|
|
(172)
|
|
511
|
|
Less: Comprehensive
(income) loss attributable to noncontrolling interests
|
|
(7)
|
|
4
|
|
Less: Comprehensive
(income) loss attributable to redeemable noncontrolling
interests
|
|
25
|
|
(6)
|
Comprehensive
income (loss) attributable to the parent company
|
|
$
(154)
|
|
$
509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Balance Sheet (Unaudited)
|
|
|
As of
September 30, 2020 and December 31, 2019
|
|
|
|
|
|
|
|
|
(In millions,
except share and per share amounts)
|
September
30,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
956
|
|
$
508
|
Marketable
securities
|
22
|
|
19
|
Accounts
receivable
|
|
|
|
Trade, less allowance for
doubtful accounts of $7 in 2020 and $9 in 2019
|
1,239
|
|
1,103
|
Other
|
171
|
|
202
|
Inventories
|
1,087
|
|
1,193
|
Other current
assets
|
129
|
|
137
|
Total current assets
|
3,604
|
|
3,162
|
Goodwill
|
458
|
|
493
|
Intangibles
|
235
|
|
240
|
Deferred tax
assets
|
594
|
|
580
|
Other
noncurrent assets
|
126
|
|
120
|
Investments in
affiliates
|
174
|
|
182
|
Operating lease
assets
|
177
|
|
178
|
Property, plant
and equipment, net
|
2,154
|
|
2,265
|
Total assets
|
$
7,522
|
|
$
7,220
|
|
|
|
|
|
|
Liabilities
and equity
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
debt
|
$
12
|
|
$
14
|
Current portion
of long-term debt
|
35
|
|
20
|
Accounts
payable
|
1,187
|
|
1,255
|
Accrued payroll
and employee benefits
|
193
|
|
206
|
Taxes on
income
|
59
|
|
46
|
Current portion
of operating lease liabilities
|
43
|
|
42
|
Other accrued
liabilities
|
308
|
|
262
|
Total current liabilities
|
1,837
|
|
1,845
|
Long-term debt,
less debt issuance costs of $31 in 2020 and $28 in
2019
|
2,839
|
|
2,336
|
Noncurrent
operating lease liabilities
|
141
|
|
140
|
Pension and
postretirement obligations
|
457
|
|
459
|
Other
noncurrent liabilities
|
303
|
|
305
|
Total liabilities
|
5,577
|
|
5,085
|
Commitments and contingencies
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
152
|
|
167
|
Parent company
stockholders' equity
|
|
|
|
Preferred stock, 50,000,000 shares authorized, $0.01 par
value, no shares outstanding
|
-
|
|
-
|
Common stock, 450,000,000
shares authorized, $0.01 par value, 144,491,212 and
143,942,539 shares outstanding
|
2
|
|
2
|
Additional paid-in capital
|
2,392
|
|
2,386
|
Retained earnings
|
535
|
|
622
|
Treasury stock, at cost (10,437,276 and 10,111,191
shares)
|
(156)
|
|
(150)
|
Accumulated other comprehensive loss
|
(1,070)
|
|
(987)
|
Total parent company stockholders' equity
|
1,703
|
|
1,873
|
Noncontrolling
interests
|
90
|
|
95
|
Total equity
|
1,793
|
|
1,968
|
Total liabilities and equity
|
$
7,522
|
|
$
7,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the
Three Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
45
|
|
$
112
|
Depreciation
|
|
88
|
|
82
|
Amortization
|
|
6
|
|
4
|
Amortization of
deferred financing charges
|
|
2
|
|
2
|
Earnings of
affiliates, net of dividends received
|
|
(6)
|
|
(6)
|
Stock
compensation expense
|
|
2
|
|
5
|
Deferred income
taxes
|
|
(20)
|
|
(15)
|
Pension
expense, net
|
|
1
|
|
|
Change in
working capital
|
|
178
|
|
50
|
Other,
net
|
|
25
|
|
(3)
|
Net cash
provided by operating activities
|
|
321
|
|
231
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(60)
|
|
(108)
|
Acquisition of
businesses, net of cash acquired
|
|
|
|
(12)
|
Purchases of
marketable securities
|
|
(21)
|
|
(12)
|
Proceeds from
sales and maturities of marketable securities
|
|
19
|
|
7
|
Settlements of
undesignated derivatives
|
|
|
|
(1)
|
Other,
net
|
|
10
|
|
(6)
|
Net cash
used in investing activities
|
|
(52)
|
|
(132)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
6
|
|
95
|
Proceeds from
long-term debt
|
|
2
|
|
|
Repayment of
long-term debt
|
|
(9)
|
|
(102)
|
Deferred
financing payments
|
|
(2)
|
|
(4)
|
Dividends paid
to common stockholders
|
|
|
|
(14)
|
Distributions
to noncontrolling interests
|
|
(7)
|
|
(2)
|
Sale of
interest to noncontrolling shareholder
|
|
|
|
53
|
Contributions
from noncontrolling interests
|
|
1
|
|
2
|
Other,
net
|
|
(1)
|
|
|
Net cash
provided by (used in) financing activities
|
|
(10)
|
|
28
|
|
|
|
|
|
|
Net increase
in cash, cash equivalents and restricted cash
|
|
259
|
|
127
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
702
|
|
298
|
Effect of
exchange rate changes on cash balances
|
|
5
|
|
(13)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
966
|
|
$
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the Nine
Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
(90)
|
|
$
147
|
Depreciation
|
|
257
|
|
235
|
Amortization
|
|
15
|
|
12
|
Amortization of
deferred financing charges
|
|
6
|
|
5
|
Write-off of
deferred financing costs
|
|
5
|
|
|
Earnings of
affiliates, net of dividends received
|
|
5
|
|
(3)
|
Stock
compensation expense
|
|
5
|
|
15
|
Deferred income
taxes
|
|
(28)
|
|
(120)
|
Pension
expense, net
|
|
3
|
|
207
|
Impairment of
goodwill
|
|
51
|
|
|
Change in
working capital
|
|
(50)
|
|
(197)
|
Other,
net
|
|
16
|
|
(13)
|
Net cash
provided by operating activities
|
|
195
|
|
288
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(181)
|
|
(298)
|
Acquisition of
businesses, net of cash acquired
|
|
(6)
|
|
(666)
|
Purchases of
marketable securities
|
|
(36)
|
|
(24)
|
Proceeds from
sales and maturities of marketable securities
|
|
32
|
|
25
|
Settlements of
undesignated derivatives
|
|
(5)
|
|
(20)
|
Other,
net
|
|
3
|
|
(12)
|
Net cash
used in investing activities
|
|
(193)
|
|
(995)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
(2)
|
|
92
|
Proceeds from
long-term debt
|
|
512
|
|
675
|
Repayment of
long-term debt
|
|
(12)
|
|
(121)
|
Deferred
financing payments
|
|
(13)
|
|
(16)
|
Dividends paid
to common stockholders
|
|
(15)
|
|
(43)
|
Distributions
to noncontrolling interests
|
|
(10)
|
|
(14)
|
Sale of
interest to noncontrolling shareholder
|
|
|
|
53
|
Contributions
from noncontrolling interests
|
|
10
|
|
4
|
Payments to
acquire noncontrolling interests
|
|
(1)
|
|
|
Repurchases of
common stock
|
|
|
|
(25)
|
Other,
net
|
|
(3)
|
|
|
Net cash
provided by financing activities
|
|
466
|
|
605
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
468
|
|
(102)
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
518
|
|
520
|
Effect of
exchange rate changes on cash balances
|
|
(20)
|
|
(6)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
966
|
|
$
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
|
Reconciliation of Net Cash Provided By (Used
In) Operating Activities to
|
Free
Cash Flow and Adjusted Free Cash Flow
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2020
|
|
2019
|
Net cash
provided by operating activities
|
|
$
321
|
|
$
231
|
Purchase of
property, plant and equipment
|
|
(60)
|
|
(108)
|
Free cash
flow
|
|
261
|
|
123
|
Discretionary
pension contributions
|
|
|
|
|
2
|
Adjusted
free cash flow
|
|
$
261
|
|
$
125
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2020
|
|
2019
|
Net cash
provided by operating activities
|
|
$
195
|
|
$
288
|
Purchase of
property, plant and equipment
|
|
(181)
|
|
(298)
|
Free cash
flow
|
|
14
|
|
(10)
|
Discretionary
pension contributions
|
|
|
|
|
64
|
Adjusted
free cash flow
|
|
$
14
|
|
$
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
Segment
Sales and Segment EBITDA (Unaudited)
|
|
|
For the
Three Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2020
|
|
2019
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
913
|
|
$
930
|
Commercial
Vehicle
|
|
314
|
|
398
|
Off-Highway
|
|
507
|
|
582
|
Power
Technologies
|
|
260
|
|
254
|
Total
Sales
|
|
$
1,994
|
|
$
2,164
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
89
|
|
$
113
|
Commercial
Vehicle
|
|
16
|
|
33
|
Off-Highway
|
|
65
|
|
79
|
Power
Technologies
|
|
34
|
|
28
|
Total
Segment EBITDA
|
|
204
|
|
253
|
Corporate
expense and other items, net
|
|
(3)
|
|
(3)
|
Adjusted
EBITDA
|
|
$
201
|
|
$
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
Segment
Sales and Segment EBITDA (Unaudited)
|
|
|
For the Nine
Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2020
|
|
2019
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
2,058
|
|
$
2,763
|
Commercial
Vehicle
|
|
847
|
|
1,266
|
Off-Highway
|
|
1,440
|
|
1,808
|
Power
Technologies
|
|
653
|
|
796
|
Total
Sales
|
|
$
4,998
|
|
$
6,633
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
140
|
|
$
333
|
Commercial
Vehicle
|
|
29
|
|
115
|
Off-Highway
|
|
175
|
|
264
|
Power
Technologies
|
|
63
|
|
90
|
Total
Segment EBITDA
|
|
407
|
|
802
|
Corporate
expense and other items, net
|
|
(6)
|
|
(9)
|
Adjusted
EBITDA
|
|
$
401
|
|
$
793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted
EBITDA to Net Income (Unaudited)
|
For the
Three Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2020
|
|
2019
|
Segment
EBITDA
|
|
$
204
|
|
$
253
|
Corporate expense and
other items, net
|
|
(3)
|
|
(3)
|
Adjusted
EBITDA
|
|
201
|
|
250
|
Depreciation
|
|
(88)
|
|
(82)
|
Amortization
|
|
(6)
|
|
(4)
|
Non-service cost
components of pension and OPEB costs
|
|
(3)
|
|
(4)
|
Restructuring
charges, net
|
|
(2)
|
|
(5)
|
Stock compensation
expense
|
|
(2)
|
|
(5)
|
Strategic transaction
expenses
|
|
(4)
|
|
(8)
|
Acquisition related
inventory adjustments
|
|
|
|
(3)
|
Pension settlement
charges, net
|
|
|
|
(2)
|
Other
items
|
|
(7)
|
|
|
Earnings before
interest and income taxes
|
|
89
|
|
137
|
Interest
income
|
|
3
|
|
3
|
Interest
expense
|
|
38
|
|
31
|
Earnings before
income taxes
|
|
54
|
|
109
|
Income tax
expense
|
|
16
|
|
5
|
Equity in
earnings of affiliates
|
|
7
|
|
8
|
Net
income
|
|
$
45
|
|
$
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted
EBITDA to Net Income (Loss) (Unaudited)
|
For the Nine
Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2020
|
|
2019
|
Segment
EBITDA
|
|
$
407
|
|
$
802
|
Corporate expense and
other items, net
|
|
(6)
|
|
(9)
|
Adjusted
EBITDA
|
|
401
|
|
793
|
Depreciation
|
|
(257)
|
|
(235)
|
Amortization
|
|
(15)
|
|
(12)
|
Non-service cost
components of pension and OPEB costs
|
|
(8)
|
|
(19)
|
Restructuring
charges, net
|
|
(21)
|
|
(23)
|
Stock compensation
expense
|
|
(5)
|
|
(15)
|
Strategic transaction
expenses
|
|
(15)
|
|
(32)
|
Impairment of
goodwill
|
|
(51)
|
|
|
Acquisition related
inventory adjustments
|
|
|
|
(12)
|
Non-income tax legal
judgment
|
|
|
|
6
|
Pension settlement
charges, net
|
|
|
|
(260)
|
Other
items
|
|
(5)
|
|
(9)
|
Earnings before
interest and income taxes
|
|
24
|
|
182
|
Write-off deferred
financing costs
|
|
(5)
|
|
|
Interest
income
|
|
7
|
|
8
|
Interest
expense
|
|
99
|
|
92
|
Earnings (loss)
before income taxes
|
|
(73)
|
|
98
|
Income tax
expense (benefit)
|
|
34
|
|
(27)
|
Equity in
earnings of affiliates
|
|
17
|
|
22
|
Net income
(loss)
|
|
$
(90)
|
|
$
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the
Three Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
2020
|
|
2019
|
Net income
attributable to parent company
|
|
$
45
|
|
$
111
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Restructuring
charges
|
|
3
|
|
5
|
|
Amortization
|
|
5
|
|
4
|
|
Strategic
transaction expenses
|
|
4
|
|
8
|
|
Acquisition
related inventory adjustments
|
|
|
|
3
|
|
Pension
settlement charges
|
|
|
|
2
|
|
Other
items
|
|
|
|
2
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(3)
|
|
(5)
|
|
Tax benefit
attributable to utilization of federal tax
credits,
|
|
|
|
|
|
state tax law changes and
valuation allowance adjustments
|
|
(1)
|
|
(22)
|
Adjusted net
income
|
|
$
53
|
|
$
108
|
|
|
|
|
|
|
Diluted shares
- as reported
|
|
145.2
|
|
144.8
|
Adjusted
diluted shares
|
|
145.2
|
|
144.8
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.37
|
|
$
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DANA
INCORPORATED
|
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the Nine
Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2020
|
|
2019
|
Net income
(loss) attributable to parent company
|
|
$
(71)
|
|
$
141
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Restructuring
charges
|
|
21
|
|
23
|
|
Amortization
|
|
13
|
|
12
|
|
Strategic
transaction expenses
|
|
15
|
|
32
|
|
Acquisition
related inventory adjustments
|
|
|
|
12
|
|
Non-income tax
legal judgment
|
|
|
|
(6)
|
|
Impairment of
goodwill
|
|
31
|
|
|
|
Pension
settlement charges
|
|
|
|
260
|
|
Write-off
deferred financing costs
|
|
5
|
|
|
|
Loss on deal
contingent forward
|
|
|
|
13
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(14)
|
|
(24)
|
|
Tax expense
(benefit) attributable to utilization of federal tax
credits,
|
|
|
|
|
|
state tax law changes and
valuation allowance adjustments
|
|
22
|
|
(116)
|
Adjusted net
income
|
|
$
22
|
|
$
347
|
|
|
|
|
|
|
Diluted shares
- as reported
|
|
144.9
|
|
144.8
|
Adjusted
diluted shares
|
|
144.9
|
|
144.8
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.15
|
|
$
2.40
|
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SOURCE Dana Incorporated