MAUMEE, Ohio, Feb. 18, 2021 /PRNewswire/ --
Full-year Results
- Sales of $7.1 billion, a decrease
of $1.5 billion driven by effects of
global pandemic
- Net loss attributable to Dana of $31
million; diluted EPS a loss of $0.21
- Adjusted EBITDA of $593 million,
margin of 8.3 percent of sales
- Diluted adjusted EPS of $0.39
- Operating cash flow of $386
million
- Adjusted free cash flow of $60
million
- Repaid term loan A and terminated covenant relief from the
April 2020 credit facility
amendment
Key Highlights
- Continued strong sales backlog of $700
million; 50 percent from electrified-vehicle programs
- Reinstated quarterly dividend of $0.10 per share
- Extended share repurchase authorization through 2023
- Accelerated sustainability leadership efforts through wind
electricity agreement
Dana Incorporated (NYSE: DAN) today announced financial results
for the fourth quarter and full-year 2020.
"Reflecting on 2020, it was truly a unique year and challenging
environment. As a result of the hard work and dedication of
the Dana team, we proved we could adapt and excel when faced with
the most severe of business environments, delivering strong sales
and rebounding margins as we ended the year with positive free cash
flow," said James Kamsickas, Dana
chairman and CEO. "We also further secured our leadership
position in the e-Mobility space with 50 percent of our
$700 million new business backlog
coming from electric or hybrid programs, demonstrating our promise
to lead in this fast-growing segment. Our success in rapidly
penetrating the electric-vehicle market is a direct result of our
strategy and the investments we have made over the past several
years. As we move forward, we are well-positioned to
capitalize on our momentum and realize the potential of our
business."
Fourth-quarter 2020 Financial Results
Sales for the
fourth quarter of 2020 totaled $2.11
billion, compared with $1.99
billion in the same period of 2019, representing a
$121 million improvement driven by
strong customer demand and the conversion of sales backlog,
primarily in the Light Vehicle segment.
Net income attributable to Dana was $40
million for the fourth quarter of 2020, compared with
$85 million in the same period of 2019. The difference
was primarily due to higher interest expense, one-time costs, and
taxes. Partially offsetting these higher expenses was a
$33 million gain on investments.
Reported diluted earnings per share was $0.27, compared with diluted earnings per share
of $0.58 in the fourth quarter
of 2019.
Adjusted EBITDA for the fourth quarter of 2020 was
$192 million, compared with $226 million for the same
period in 2019. This was a result of higher incremental
costs associated with elevated demand and the nonrecurrence of a
$17 million indirect tax expense
recovery in Brazil in 2019, along
with accelerated investments in electrification.
Diluted adjusted earnings per share were $0.24 in the fourth quarter of 2020,
compared with $0.67 in the same
period of the prior year. The lower year-over-year comparison
was primarily due to lower earnings.
Operating cash flow in the fourth quarter of 2020 was
$191 million, compared with $349 million in the same
period of 2019.
Adjusted free cash flow was $46 million, compared with
$218 million in the fourth quarter of 2019. Lower cash
generation was driven by lower earnings, higher cash income taxes
and interest, and lower cash generated from working capital as
sales continued to recover from the COVID-related shutdowns.
Full-year 2020 Financial Results
Sales for 2020 were $7.1 billion, compared with
$8.6 billion in 2019. The
decrease is primarily attributable to weaker demand across all
mobility markets due to customers idling operations through the
middle of the year in response to the global COVID-19
pandemic.
The net loss attributable to Dana was $31
million, compared with net income of $226 million in 2019. The loss resulted
mainly from the goodwill impairment charge recorded during the
onset of the global pandemic. Reported diluted earnings per
share was a loss of $0.21, compared
with $1.56 in 2019.
Adjusted EBITDA for 2020 was $593 million, or
8.3 percent of sales. Margin variance to the prior year
was driven by the rapid reduction in sales due to pandemic-related
shutdowns in the second quarter outpacing cost-reduction actions
and higher incremental costs to meet elevated demand during the
rapid restart of operations in the third quarter.
Diluted adjusted earnings per share for 2020 were $0.39,
compared with $3.06 in 2019, primarily reflecting lower
year-over-year earnings and higher depreciation and interest.
The company reported operating cash flow of $386 million in
2020. Adjusted free cash flow was $60 million, or about
1 percent of sales, compared with $272 million, or
3 percent of sales in 2019. The impact of lower profit
in 2020 was partially offset by targeted cash conservation
measures, lower cash taxes, and lower capital expenditures.
2021 Guidance Ranges
"Our cost-saving actions and
strong financial position allowed us to manage through this
challenging year," said Jonathan
Collins, Dana executive vice president and chief financial
officer. "We are positioned for long-term sales, profit, and
free cash flow growth while continuing to improve our strong
balance sheet.
2021 Financial Targets1
- Sales of $8.05 to $8.55 billion;
- Adjusted EBITDA of $860 million
to $960 million, an implied adjusted
EBITDA margin of approximately 11 percent at the midpoint of the
range;
- Diluted adjusted EPS of $1.90 to
$2.40;
- Operating cash flow of approximately 7.5 percent of sales;
and
- Adjusted free cash flow of approximately 3 percent of
sales.
1Net income and diluted EPS guidance are not
provided, as discussed below in Non-GAAP Financial Information.
Company Reinstates Quarterly Dividend and Extends Share
Repurchase Authorization
Dana's board of directors elected to reinstate the company's
quarterly dividend of $0.10 per share
on its common stock. This will be payable on March 26, 2021, to holders of Dana common stock
as of March 5, 2021. The board
of directors also extended Dana's share repurchase authorization
through the end of 2023. There is $150 million remaining
under the authorization.
Strategically Leveraging Renewable Energy Sources
In the fourth quarter, Dana announced a commitment to reduce its
total annual greenhouse gas emissions by at least 50 percent before
the end of 2035, representing a reduction of more than 300,000
metrics tons of carbon dioxide emissions annually. This
action aligns with the Paris Climate Agreement and further supports
the company's vision of aiding its customers in achieving their
sustainability objectives.
To help meet this goal, Dana has signed a long-term agreement to
add 300,000 megawatt-hours annually in renewable electricity to the
grid beginning in 2022. In return, Dana will receive the
equivalent quantity of renewable energy credits to address
approximately 90 percent of the company's annual U.S. electricity
consumption.
Dana to Host Conference Call at 9 a.m. Thursday, Feb. 18
Dana will discuss its fourth-quarter and full-year results in a
conference call at 9 a.m. EST on
Thursday, Feb. 18. 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. 9259583 ask for
the "Dana Incorporated's Financial Webcast and Conference
Call." Phone registration will be available beginning at
8:30 a.m. EST.
An audio recording of the webcast will be available after
5 p.m. EST on Feb. 18 by dialing 1-855-859-2056 (U.S. or
Canada) or 1-404-537-3406
(international) and entering conference I.D. 9259583. A
webcast replay will also be available after 5 p.m. EST 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 leader in the design and manufacture of highly efficient
propulsion and energy-management solutions for all mobility markets
across the globe. The company's conventional and clean-energy
solutions support nearly every vehicle manufacturer with drive and
motion systems; electrodynamic technologies, including software and
controls; and thermal, sealing, and digital solutions.
Based in Maumee, Ohio, USA, the
company reported sales of $7.1
billion in 2020 with 38,000 associates in 33 countries
across six continents. Founded in 1904, Dana was named one of
"America's Most Responsible Companies 2021" by Newsweek for its
emphasis on sustainability and social responsibility. The company
is driven by a high-performance culture that focuses on its people,
which has earned it global recognition as a top employer, including
"World's Best Employer" from Forbes magazine. Learn more at
dana.com.
DANA
INCORPORATED
|
Consolidated
Statement of Operations (Unaudited)
|
For the
Three Months Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Net
sales
|
|
|
$
2,108
|
|
$
1,987
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
1,897
|
|
1,764
|
Selling, general and
administrative expenses
|
|
122
|
|
104
|
Amortization of
intangibles
|
|
3
|
|
4
|
Restructuring charges,
net
|
|
13
|
|
6
|
Impairment of
goodwill
|
|
|
|
(6)
|
Pension
settlement charge
|
|
|
|
1
|
Other income,
net
|
|
27
|
|
6
|
Earnings before
interest and income taxes
|
|
100
|
|
110
|
Loss on
extinguishment of debt
|
|
(3)
|
|
(9)
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
39
|
|
30
|
Earnings before
income taxes
|
|
60
|
|
73
|
Income tax
expense (benefit)
|
|
24
|
|
(5)
|
Equity in
earnings of affiliates
|
|
3
|
|
8
|
Net
income
|
|
39
|
|
86
|
Less: Noncontrolling
interests net income
|
|
4
|
|
4
|
Less: Redeemable
noncontrolling interests net loss
|
|
(5)
|
|
(3)
|
Net income
attributable to the parent company
|
|
$
40
|
|
$
85
|
|
|
|
|
|
|
Net income
per share available to common stockholders
|
|
|
|
|
Basic
|
|
|
$
0.28
|
|
$
0.59
|
Diluted
|
|
|
$
0.27
|
|
$
0.58
|
|
|
|
|
|
|
Weighted-average shares outstanding -
Basic
|
|
144.6
|
|
144.0
|
Weighted-average shares outstanding -
Diluted
|
|
145.7
|
|
145.3
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations
|
|
|
|
|
|
For the Year
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In millions,
except per share amounts)
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Net
sales
|
|
|
$
7,106
|
|
$
8,620
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
6,485
|
|
7,489
|
Selling, general and
administrative expenses
|
|
421
|
|
508
|
Amortization of
intangibles
|
|
13
|
|
12
|
Restructuring charges,
net
|
|
34
|
|
29
|
Impairment of
goodwill
|
|
(51)
|
|
(6)
|
Pension
settlement charges
|
|
|
|
(259)
|
Other income
(expense), net
|
|
22
|
|
(25)
|
Earnings before
interest and income taxes
|
|
124
|
|
292
|
Loss on
extinguishment of debt
|
|
(8)
|
|
(9)
|
Interest
income
|
|
9
|
|
10
|
Interest
expense
|
|
138
|
|
122
|
Earnings (loss)
before income taxes
|
|
(13)
|
|
171
|
Income tax
expense (benefit)
|
|
58
|
|
(32)
|
Equity in
earnings of affiliates
|
|
20
|
|
30
|
Net income
(loss)
|
|
(51)
|
|
233
|
Less: Noncontrolling
interests net income
|
|
10
|
|
13
|
Less: Redeemable
noncontrolling interests net loss
|
|
(30)
|
|
(6)
|
Net income
(loss) attributable to the parent company
|
|
$
(31)
|
|
$
226
|
|
|
|
|
|
|
Net income
(loss) per share available to common
stockholders
|
|
|
|
Basic
|
|
|
$
(0.21)
|
|
$
1.57
|
Diluted
|
|
|
$
(0.21)
|
|
$
1.56
|
|
|
|
|
|
|
Weighted-average shares outstanding -
Basic
|
|
144.5
|
|
144.0
|
Weighted-average shares outstanding -
Diluted
|
|
144.5
|
|
145.1
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the
Three Months Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
|
|
|
2020
|
|
2019
|
Net
income
|
|
$
39
|
|
$
86
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
Currency translation
adjustments
|
|
56
|
|
24
|
Hedging gains and
losses
|
|
(1)
|
|
9
|
Defined benefit
plans
|
|
(2)
|
|
(21)
|
Other comprehensive
income
|
|
53
|
|
12
|
Total
comprehensive income
|
|
92
|
|
98
|
Less: Comprehensive
income attributable to noncontrolling interests
|
|
(20)
|
|
(13)
|
Less: Comprehensive
loss attributable to redeemable noncontrolling interests
|
|
11
|
|
7
|
Comprehensive
income attributable to the parent company
|
|
$
83
|
|
$
92
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income
|
|
|
|
|
|
For the Year
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
|
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
(51)
|
|
$
233
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
Currency translation
adjustments
|
|
(77)
|
|
8
|
Hedging gains and
losses
|
|
39
|
|
24
|
Defined benefit
plans
|
|
9
|
|
344
|
Other comprehensive
income (loss)
|
|
(29)
|
|
376
|
Total
comprehensive income (loss)
|
|
(80)
|
|
609
|
Less: Comprehensive
income attributable to noncontrolling interests
|
|
(27)
|
|
(9)
|
Less: Comprehensive
loss attributable to redeemable noncontrolling interests
|
|
36
|
|
1
|
Comprehensive
income (loss) attributable to the parent company
|
|
$
(71)
|
|
$
601
|
DANA
INCORPORATED
Consolidated Balance Sheet
As of December 31, 2020 and December 31, 2019
|
|
(In millions,
except share and per share amounts)
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
559
|
|
$
508
|
Marketable
securities
|
|
21
|
|
19
|
Accounts
receivable
|
|
|
|
|
Trade, less
allowance for doubtful accounts of $7 in 2020 and $9 in
2019
|
|
1,201
|
|
1,103
|
Other
|
|
231
|
|
202
|
Inventories
|
|
1,149
|
|
1,193
|
Other current
assets
|
|
127
|
|
137
|
Total
current assets
|
|
3,288
|
|
3,162
|
Goodwill
|
|
479
|
|
493
|
Intangibles
|
|
236
|
|
240
|
Deferred tax
assets
|
|
611
|
|
580
|
Other
noncurrent assets
|
|
169
|
|
120
|
Investments in
affiliates
|
|
152
|
|
182
|
Operating lease
assets
|
|
190
|
|
178
|
Property, plant
and equipment, net
|
|
2,251
|
|
2,265
|
Total
assets
|
|
$
7,376
|
|
$
7,220
|
|
|
|
|
|
|
|
Liabilities
and equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
26
|
|
$
14
|
Current portion
of long-term debt
|
|
8
|
|
20
|
Accounts
payable
|
|
1,331
|
|
1,255
|
Accrued payroll
and employee benefits
|
|
190
|
|
206
|
Taxes on
income
|
|
35
|
|
46
|
Current portion
of operating lease liabilities
|
|
43
|
|
42
|
Other accrued
liabilities
|
|
308
|
|
262
|
Total
current liabilities
|
|
1,941
|
|
1,845
|
Long-term debt,
less debt issuance costs of $27 in 2020 and $28 in
2019
|
|
2,420
|
|
2,336
|
Noncurrent
operating lease liabilities
|
|
154
|
|
140
|
Pension and
postretirement obligations
|
|
479
|
|
459
|
Other
noncurrent liabilities
|
|
368
|
|
305
|
Total
liabilities
|
|
5,362
|
|
5,085
|
Commitments and contingencies
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
|
180
|
|
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,
|
|
|
|
|
144,515,658
and 143,942,539 shares outstanding
|
|
2
|
|
2
|
Additional
paid-in capital
|
|
2,408
|
|
2,386
|
Retained
earnings
|
|
530
|
|
622
|
Treasury stock,
at cost (10,442,582 and 10,111,191 shares)
|
|
(156)
|
|
(150)
|
Accumulated other
comprehensive loss
|
|
(1,026)
|
|
(987)
|
Total
parent company stockholders' equity
|
|
1,758
|
|
1,873
|
Noncontrolling
interests
|
|
76
|
|
95
|
Total
equity
|
|
1,834
|
|
1,968
|
Total
liabilities and equity
|
|
$
7,376
|
|
$
7,220
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the
Three Months Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
39
|
|
$
86
|
Depreciation
|
|
88
|
|
87
|
Amortization
|
|
5
|
|
5
|
Amortization of
deferred financing charges
|
|
2
|
|
1
|
Call premium on
debt
|
|
|
|
7
|
Write-off of
deferred financing costs
|
|
3
|
|
2
|
Earnings of
affiliates, net of dividends received
|
|
2
|
|
(6)
|
Stock
compensation expense
|
|
9
|
|
4
|
Deferred income
taxes
|
|
(7)
|
|
(17)
|
Pension
expense, net
|
|
|
|
4
|
Impairment of
goodwill
|
|
|
|
6
|
Change in
working capital
|
|
97
|
|
180
|
Change in other
noncurrent assets and liabilities
|
|
(22)
|
|
(5)
|
Other,
net
|
|
(25)
|
|
(5)
|
Net cash
provided by operating activities
|
|
191
|
|
349
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(145)
|
|
(128)
|
Acquisition of
businesses, net of cash acquired
|
|
|
|
(2)
|
Purchases of
marketable securities
|
|
(8)
|
|
(9)
|
Proceeds from
maturities of marketable securities
|
|
9
|
|
10
|
Proceeds from
sale of equity affiliate
|
|
21
|
|
|
Other,
net
|
|
(11)
|
|
1
|
Net cash
used in investing activities
|
|
(134)
|
|
(128)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
11
|
|
(95)
|
Proceeds from
long-term debt
|
|
(4)
|
|
300
|
Repayment of
long-term debt
|
|
(468)
|
|
(302)
|
Call premium on
debt
|
|
|
|
(7)
|
Deferred
financing payments
|
|
|
|
(4)
|
Dividends paid
to common stockholders
|
|
|
|
(15)
|
Distributions
to noncontrolling interests
|
|
(1)
|
|
(5)
|
Sale of
interest to noncontrolling shareholder
|
|
2
|
|
|
Contributions
from noncontrolling interests
|
|
1
|
|
|
Payments to
acquire noncontrolling interests
|
|
(6)
|
|
|
Deconsolidation
of non-wholly owned subsidiary
|
|
(14)
|
|
|
Other,
net
|
|
1
|
|
2
|
Net cash
used in financing activities
|
|
(478)
|
|
(126)
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
(421)
|
|
95
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
966
|
|
412
|
Effect of
exchange rate changes on cash balances
|
|
22
|
|
11
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
567
|
|
$
518
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
For the Year
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
(51)
|
|
$
233
|
Depreciation
|
|
345
|
|
322
|
Amortization
|
|
20
|
|
17
|
Amortization of
deferred financing charges
|
|
8
|
|
6
|
Call premium on
debt
|
|
|
|
7
|
Write-off of
deferred financing costs
|
|
8
|
|
2
|
Earnings of
affiliates, net of dividends received
|
|
7
|
|
(9)
|
Stock
compensation expense
|
|
14
|
|
19
|
Deferred income
taxes
|
|
(35)
|
|
(137)
|
Pension
expense, net
|
|
3
|
|
211
|
Impairment of
goodwill
|
|
51
|
|
6
|
Change in
working capital
|
|
47
|
|
(17)
|
Change in other
noncurrent assets and liabilities
|
|
(20)
|
|
(18)
|
Other,
net
|
|
(11)
|
|
(5)
|
Net cash
provided by operating activities
|
|
386
|
|
637
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(326)
|
|
(426)
|
Acquisition of
businesses, net of cash acquired
|
|
(6)
|
|
(668)
|
Purchases of
marketable securities
|
|
(44)
|
|
(33)
|
Proceeds from
sales of marketable securities
|
|
5
|
|
6
|
Proceeds from
maturities of marketable securities
|
|
36
|
|
29
|
Proceeds from
sale of equity affiliate
|
|
21
|
|
|
Proceeds from
sale of subsidiary, net of cash disposed
|
|
|
|
1
|
Settlements of
undesignated derivatives
|
|
(5)
|
|
(20)
|
Other,
net
|
|
(8)
|
|
(12)
|
Net cash
used in investing activities
|
|
(327)
|
|
(1,123)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
9
|
|
(3)
|
Proceeds from
long-term debt
|
|
508
|
|
975
|
Repayment of
long-term debt
|
|
(480)
|
|
(423)
|
Call premium on
debt
|
|
|
|
(7)
|
Deferred
financing payments
|
|
(13)
|
|
(20)
|
Dividends paid
to common stockholders
|
|
(15)
|
|
(58)
|
Distributions
to noncontrolling interests
|
|
(11)
|
|
(19)
|
Sale of
interest to noncontrolling shareholder
|
|
9
|
|
53
|
Contributions
from noncontrolling interests
|
|
4
|
|
4
|
Payments to
acquire noncontrolling interests
|
|
(7)
|
|
|
Deconsolidation
of non-wholly owned subsidiary
|
|
(14)
|
|
|
Repurchases of
common stock
|
|
|
|
(25)
|
Other,
net
|
|
(2)
|
|
2
|
Net cash
provided by (used in) financing activities
|
|
(12)
|
|
479
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
47
|
|
(7)
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
518
|
|
520
|
Effect of
exchange rate changes on cash balances
|
|
2
|
|
5
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
567
|
|
$
518
|
DANA
INCORPORATED
|
|
|
|
|
|
Reconciliation of Net Cash Provided By
Operating Activities to
|
Free
Cash Flow and Adjusted Free Cash Flow
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
2020
|
|
2019
|
Net cash
provided by operating activities
|
|
$
191
|
|
$
349
|
Purchase of
property, plant and equipment
|
|
(145)
|
|
(128)
|
Free cash
flow
|
|
46
|
|
221
|
Discretionary
pension contributions
|
|
|
|
|
(3)
|
Adjusted
free cash flow
|
|
$
46
|
|
$
218
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
2020
|
|
2019
|
Net cash
provided by operating activities
|
|
$
386
|
|
$
637
|
Purchase of
property, plant and equipment
|
|
(326)
|
|
(426)
|
Free cash
flow
|
|
60
|
|
211
|
Discretionary
pension contributions
|
|
|
|
|
61
|
Adjusted
free cash flow
|
|
$
60
|
|
$
272
|
DANA
INCORPORATED
|
|
|
|
|
Segment
Sales and Segment EBITDA (Unaudited)
|
|
|
For the
Three Months Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
2020
|
|
2019
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
980
|
|
$
846
|
Commercial
Vehicle
|
|
334
|
|
345
|
Off-Highway
|
|
530
|
|
552
|
Power
Technologies
|
|
264
|
|
244
|
Total
Sales
|
|
$
2,108
|
|
$
1,987
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
99
|
|
$
105
|
Commercial
Vehicle
|
|
7
|
|
23
|
Off-Highway
|
|
59
|
|
66
|
Power
Technologies
|
|
31
|
|
27
|
Total
Segment EBITDA
|
|
196
|
|
221
|
Corporate
expense and other items, net
|
|
(4)
|
|
5
|
Adjusted
EBITDA
|
|
$
192
|
|
$
226
|
DANA
INCORPORATED
|
|
|
|
|
Segment
Sales and Segment EBITDA
|
|
|
|
For the Year
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
2020
|
|
2019
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
3,038
|
|
$
3,609
|
Commercial
Vehicle
|
|
1,181
|
|
1,611
|
Off-Highway
|
|
1,970
|
|
2,360
|
Power
Technologies
|
|
917
|
|
1,040
|
Total
Sales
|
|
$
7,106
|
|
$
8,620
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
239
|
|
$
438
|
Commercial
Vehicle
|
|
36
|
|
138
|
Off-Highway
|
|
234
|
|
330
|
Power
Technologies
|
|
94
|
|
117
|
Total
Segment EBITDA
|
|
603
|
|
1,023
|
Corporate
expense and other items, net
|
|
(10)
|
|
(4)
|
Adjusted
EBITDA
|
|
$
593
|
|
$
1,019
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted
EBITDA to Net Income (Unaudited)
|
|
|
For the
Three Months Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
2020
|
|
2019
|
Segment
EBITDA
|
|
$
196
|
|
$
221
|
Corporate expense and
other items, net
|
|
(4)
|
|
5
|
Adjusted
EBITDA
|
|
192
|
|
226
|
Depreciation
|
|
(88)
|
|
(87)
|
Amortization
|
|
(5)
|
|
(5)
|
Non-service cost
components of pension and OPEB costs
|
|
(2)
|
|
(4)
|
Restructuring
charges, net
|
|
(13)
|
|
(6)
|
Stock compensation
expense
|
|
(9)
|
|
(4)
|
Strategic transaction
expenses
|
|
(5)
|
|
(9)
|
Impairment of
goodwill
|
|
|
|
(6)
|
Amounts attributable
to previously divested/closed operations
|
|
(1)
|
|
(5)
|
Gain on investment in
Hyliion
|
|
33
|
|
|
Acquisition related
inventory adjustments
|
|
|
|
(1)
|
Pension settlement
charges
|
|
|
|
1
|
Gain on liquidation
of foreign subsidiary
|
|
|
|
12
|
Other
items
|
|
(2)
|
|
(2)
|
Earnings before
interest and income taxes
|
|
100
|
|
110
|
Loss on
extinguishment of debt
|
|
(3)
|
|
(9)
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
39
|
|
30
|
Earnings before
income taxes
|
|
60
|
|
73
|
Income tax
expense (benefit)
|
|
24
|
|
(5)
|
Equity in
earnings of affiliates
|
|
3
|
|
8
|
Net
income
|
|
$
39
|
|
$
86
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted
EBITDA to Net Income (Loss)
|
|
|
|
|
For the Year
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
2020
|
|
2019
|
Segment
EBITDA
|
|
$
603
|
|
$
1,023
|
Corporate expense and
other items, net
|
|
(10)
|
|
(4)
|
Adjusted
EBITDA
|
|
593
|
|
1,019
|
Depreciation
|
|
(345)
|
|
(322)
|
Amortization
|
|
(20)
|
|
(17)
|
Non-service cost
components of pension and OPEB costs
|
|
(10)
|
|
(23)
|
Restructuring
charges, net
|
|
(34)
|
|
(29)
|
Stock compensation
expense
|
|
(14)
|
|
(19)
|
Strategic transaction
expenses
|
|
(20)
|
|
(41)
|
Impairment of
goodwill
|
|
(51)
|
|
(6)
|
Amounts attributable
to previously divested/closed operations
|
|
(1)
|
|
(5)
|
Gain on investment in
Hyliion
|
|
33
|
|
|
Acquisition related
inventory adjustments
|
|
|
|
(13)
|
Non-income tax legal
judgment
|
|
|
|
6
|
Pension settlement
charges
|
|
|
|
(259)
|
Gain on liquidation
of foreign subsidiary
|
|
|
|
12
|
Other
items
|
|
(7)
|
|
(11)
|
Earnings before
interest and income taxes
|
|
124
|
|
292
|
Loss on
extinguishment of debt
|
|
(8)
|
|
(9)
|
Interest
income
|
|
9
|
|
10
|
Interest
expense
|
|
138
|
|
122
|
Earnings (loss)
before income taxes
|
|
(13)
|
|
171
|
Income tax
expense (benefit)
|
|
58
|
|
(32)
|
Equity in
earnings of affiliates
|
|
20
|
|
30
|
Net income
(loss)
|
|
$
(51)
|
|
$
233
|
DANA
INCORPORATED
|
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the
Three Months Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Net income
attributable to parent company
|
|
$
40
|
|
$
85
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
4
|
|
5
|
|
Restructuring
charges, net
|
|
12
|
|
6
|
|
Strategic
transaction expenses
|
|
6
|
|
9
|
|
Amounts
attributable to previously divested/closed
operations
|
|
1
|
|
5
|
|
Impairment of
goodwill
|
|
|
|
6
|
|
Gain on
investment in Hyliion
|
|
(33)
|
|
|
|
Acquisition
related inventory adjustments
|
|
|
|
1
|
|
Pension
settlement charges
|
|
|
|
(1)
|
|
Gain on
liquidation of foreign subsidiary
|
|
|
|
(12)
|
|
Loss on
extinguishment of debt
|
|
3
|
|
9
|
|
Other
items
|
|
(1)
|
|
(2)
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense (benefit) on items above
|
|
7
|
|
(3)
|
|
Tax benefit
attributable to various discrete tax matters
|
|
(4)
|
|
(11)
|
Adjusted net
income
|
|
$
35
|
|
$
97
|
|
|
|
|
|
|
Diluted shares
- as reported
|
|
145.7
|
|
145.3
|
Adjusted
diluted shares
|
|
145.7
|
|
145.3
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.24
|
|
$
0.67
|
DANA
INCORPORATED
|
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the Year
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
Net income
(loss) attributable to parent company
|
|
$
(31)
|
|
$
226
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
17
|
|
17
|
|
Restructuring
charges, net
|
|
33
|
|
29
|
|
Strategic
transaction expenses
|
|
21
|
|
41
|
|
Amounts
attributable to previously divested/closed
operations
|
|
1
|
|
5
|
|
Impairment of
goodwill
|
|
31
|
|
6
|
|
Gain on
investment in Hyliion
|
|
(33)
|
|
|
|
Acquisition
related inventory adjustments
|
|
|
|
13
|
|
Non-income tax
legal judgment
|
|
|
|
(6)
|
|
Pension
settlement charges
|
|
|
|
259
|
|
Gain on
liquidation of foreign subsidiary
|
|
|
|
(12)
|
|
Loss on
extinguishment of debt
|
|
8
|
|
9
|
|
Loss on deal
contingent forward
|
|
|
|
13
|
|
Other
items
|
|
(1)
|
|
(2)
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(7)
|
|
(27)
|
|
Tax expense
(benefit) attributable to various discrete tax
matters
|
|
18
|
|
(127)
|
Adjusted net
income
|
|
$
57
|
|
$
444
|
|
|
|
|
|
|
Diluted shares
- as reported
|
|
144.5
|
|
145.1
|
Adjusted
diluted shares
|
|
145.1
|
|
145.1
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.39
|
|
$
3.06
|
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SOURCE Dana Incorporated