MAUMEE, Ohio, July 30, 2021 /PRNewswire/ --
Key Highlights
- Sales of $2.2 billion, an
increase of $1.1 billion
- Net income attributable to Dana of $53 million, an increase of $227 million
- Diluted EPS of $0.36, an
increase of $1.56
- Adjusted EBITDA of $233
million, an increase of $238
million; margin of 10.6 percent of sales
- Diluted adjusted EPS of $0.59,
an increase of $1.28
- Operating cash flow of $67
million, an increase of $142
million
- Continues environmental leadership with the adoption of
science-based targets
Dana Incorporated (NYSE: DAN) today announced financial results
for the second quarter of 2021.
"Dana delivered strong performance in the second quarter as a
result of ongoing strong demand across all three of our end
markets," said James Kamsickas, Dana
chairman and CEO. "We continue to actively manage through a
challenging supply-chain environment, and our team has done an
excellent job proactively responding to the regional impacts of
COVID-19. Like everyone, we remain cautious about the second
half of the year, but our balanced business model positions us well
to navigate through external pressures as we remain focused on
launching our new business backlog and expanding our vehicle
electrification business."
Second-quarter 2021 Financial Results
Sales for the
second quarter of 2021 totaled $2.21 billion, compared with $1.08 billion in the same period of 2020,
representing a $1.13 billion
improvement driven by strong customer demand and the conversion of
our sales backlog.
Adjusted EBITDA for the second quarter of 2021 was
$233 million, compared with a loss of $5 million for the
same period in 2020. Profit conversion on higher sales in the
second quarter of 2021 continued to be tempered by higher raw
material costs and supply-chain constraints.
Adjusted net income attributable to Dana was $86 million
and diluted adjusted earnings per share was $0.59 for the second quarter of 2021,
compared with an adjusted net loss of $99 million and
$0.69 per share in 2020.
Operating cash flow in the second quarter of 2021 was
$67 million, compared with a use of $75 million in the
same period of 2020.
Adjusted free cash flow was a use of $13 million, compared
with a use of $133 million in the second quarter of
2020. Adjusted free cash flow in this year's second quarter
was driven by higher earnings compared with last year's
pandemic-impacted results.
"We are maintaining our full-year guidance ranges but indicating
that sales will likely be at the higher end due to the strong
market demand in the first half of this year and our outlook for
the remainder of the year," said Jonathan
Collins, executive vice president and chief financial
officer of Dana. "Our solid performance and encouraging demand
fundamentals keep us locked on a trajectory toward our long-term
financial goals."
2021 Financial Target Ranges 1
- Sales of $8.5 to $9.0 billion;
- Adjusted EBITDA of $920 million
to $1.0 billion, an implied adjusted
EBITDA margin of range of approximately 10.5 to 11 percent;
- Diluted adjusted EPS of $2.10 to
$2.60;
- Operating cash flow of approximately 7 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.
Dana to Host Conference Call at 9 a.m. Friday, July 30
Dana will discuss its
second-quarter results in a conference call at 9 a.m. EDT on Friday, July 30. 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. 6842746 and ask
for "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 July 30 by dialing 1-855-859-2056 (U.S. or
Canada) or 1-404-537-3406
(international) and entering conference I.D. 6842746. 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
Adjusted EBITDA is a
non-GAAP financial measure which we have defined as net income
(loss) 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 earnings (loss)
before income taxes, net income (loss) or other results reported in
accordance with GAAP. Adjusted EBITDA may not be comparable to
similarly titled measures reported by other companies.
Adjusted net income (loss) attributable to the parent company is
a non-GAAP financial measure which we have defined as net income
(loss) attributable to the parent company, excluding any discrete
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. 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 net
income attributable to the parent company reported by other
companies. Adjusted net income (loss) attributable to the parent
company is neither intended to represent nor be an alternative
measure to net income (loss) attributable to the parent company
reported in accordance with GAAP.
Diluted adjusted EPS is a non-GAAP financial measure which we
have defined as adjusted net income (loss) attributable to the
parent company divided by adjusted diluted shares. We define
adjusted diluted shares as diluted shares as determined in
accordance with GAAP based on adjusted net income (loss)
attributable to the parent company. 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 in
accordance with 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
discretionary 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 in
accordance with 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 our adjusted EBITDA and
diluted adjusted EPS outlook 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 June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
Net
sales
|
|
|
$
2,205
|
|
$
1,078
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
1,953
|
|
1,088
|
Selling, general and
administrative expenses
|
|
126
|
|
82
|
Amortization of
intangibles
|
|
3
|
|
3
|
Restructuring charges,
net
|
|
|
|
16
|
Other income
(expense), net
|
|
(10)
|
|
(1)
|
Earnings (loss)
before interest and income taxes
|
|
113
|
|
(112)
|
Loss on
extinguishment of debt
|
|
(24)
|
|
(5)
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
34
|
|
32
|
Earnings (loss)
before income taxes
|
|
57
|
|
(147)
|
Income tax
expense
|
|
14
|
|
34
|
Equity in
earnings of affiliates
|
|
10
|
|
8
|
Net income
(loss)
|
|
53
|
|
(173)
|
Less: Noncontrolling
interests net income
|
|
4
|
|
|
Less: Redeemable
noncontrolling interests net income (loss)
|
|
(4)
|
|
1
|
Net income
(loss) attributable to the parent company
|
|
$
53
|
|
$
(174)
|
|
|
|
|
|
|
Net income
(loss) per share available to common
stockholders
|
|
|
|
|
Basic
|
|
|
$
0.37
|
|
$
(1.20)
|
Diluted
|
|
|
$
0.36
|
|
$
(1.20)
|
|
|
|
|
|
|
Weighted-average shares outstanding -
Basic
|
|
145.2
|
|
144.5
|
Weighted-average shares outstanding -
Diluted
|
|
146.7
|
|
144.5
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
|
|
|
|
For the Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In millions,
except per share amounts)
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
Net
sales
|
|
|
$
4,468
|
|
$
3,004
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
3,965
|
|
2,808
|
Selling, general and
administrative expenses
|
|
245
|
|
188
|
Amortization of
intangibles
|
|
7
|
|
6
|
Restructuring charges,
net
|
|
1
|
|
19
|
Impairment of
goodwill
|
|
|
|
(51)
|
Other income
(expense), net
|
|
(29)
|
|
3
|
Earnings (loss)
before interest and income taxes
|
|
221
|
|
(65)
|
Loss on
extinguishment of debt
|
|
(24)
|
|
(5)
|
Interest
income
|
|
4
|
|
4
|
Interest
expense
|
|
68
|
|
61
|
Earnings (loss)
before income taxes
|
|
133
|
|
(127)
|
Income tax
expense
|
|
36
|
|
18
|
Equity in
earnings of affiliates
|
|
24
|
|
10
|
Net income
(loss)
|
|
121
|
|
(135)
|
Less: Noncontrolling
interests net income
|
|
5
|
|
2
|
Less: Redeemable
noncontrolling interests net loss
|
|
(8)
|
|
(21)
|
Net income
(loss) attributable to the parent company
|
|
$
124
|
|
$
(116)
|
|
|
|
|
|
|
Net income
(loss) per share available to common
stockholders
|
|
|
|
|
Basic
|
|
|
$
0.85
|
|
$
(0.80)
|
Diluted
|
|
|
$
0.85
|
|
$
(0.80)
|
|
|
|
|
|
|
Weighted-average shares outstanding -
Basic
|
|
145.1
|
|
144.4
|
Weighted-average shares outstanding -
Diluted
|
|
146.5
|
|
144.4
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the
Three Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
|
|
2021
|
|
2020
|
Net income
(loss)
|
|
$
53
|
|
$
(173)
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
Currency
translation adjustments
|
|
19
|
|
7
|
Hedging
gains and losses
|
|
16
|
|
10
|
Defined
benefit plans
|
|
4
|
|
4
|
Other comprehensive
income
|
|
39
|
|
21
|
Total
comprehensive income (loss)
|
|
92
|
|
(152)
|
Less:
Comprehensive (income) loss attributable to noncontrolling
interests
|
|
5
|
|
(9)
|
Less:
Comprehensive (income) loss attributable to redeemable
noncontrolling interests
|
|
(7)
|
|
3
|
Comprehensive
income (loss) attributable to the parent company
|
|
$
90
|
|
$
(158)
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
|
|
2021
|
|
2020
|
Net income
(loss)
|
|
$
121
|
|
$
(135)
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
Currency
translation adjustments
|
|
14
|
|
(147)
|
Hedging
gains and losses
|
|
(1)
|
|
39
|
Defined
benefit plans
|
|
7
|
|
7
|
Other
comprehensive income (loss)
|
|
20
|
|
(101)
|
Total
comprehensive income (loss)
|
|
141
|
|
(236)
|
Less:
Comprehensive loss attributable to noncontrolling
interests
|
|
6
|
|
8
|
Less:
Comprehensive (income) loss attributable to redeemable
noncontrolling interests
|
|
(4)
|
|
17
|
Comprehensive
income (loss) attributable to the parent company
|
|
$
143
|
|
$
(211)
|
DANA
INCORPORATED
|
|
|
|
|
|
|
Consolidated
Balance Sheet (Unaudited)
|
|
|
|
|
|
|
As of June
30, 2021 and December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except share and per share amounts)
|
|
June 30,
|
|
December
31,
|
|
|
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
384
|
|
$
559
|
Marketable
securities
|
|
59
|
|
21
|
Accounts
receivable
|
|
|
|
|
Trade, less
allowance for doubtful accounts of $6 in 2021 and $7 in
2020
|
|
1,353
|
|
1,201
|
Other
|
|
270
|
|
231
|
Inventories
|
|
|
|
1,435
|
|
1,149
|
Other current
assets
|
|
149
|
|
127
|
Total
current assets
|
|
3,650
|
|
3,288
|
Goodwill
|
|
|
|
490
|
|
479
|
Intangibles
|
|
|
248
|
|
236
|
Deferred tax
assets
|
|
628
|
|
611
|
Other
noncurrent assets
|
|
128
|
|
169
|
Investments in
affiliates
|
|
144
|
|
152
|
Operating lease
assets
|
|
194
|
|
190
|
Property, plant
and equipment, net
|
|
2,197
|
|
2,251
|
Total
assets
|
|
$
7,679
|
|
$
7,376
|
|
|
|
|
|
|
|
Liabilities
and equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
21
|
|
$
26
|
Current portion
of long-term debt
|
|
8
|
|
8
|
Accounts
payable
|
|
1,568
|
|
1,331
|
Accrued payroll
and employee benefits
|
|
228
|
|
190
|
Taxes on
income
|
|
48
|
|
35
|
Current portion
of operating lease liabilities
|
|
40
|
|
43
|
Other accrued
liabilities
|
|
287
|
|
308
|
Total
current liabilities
|
|
2,200
|
|
1,941
|
Long-term debt,
less debt issuance costs of $29 in 2021 and $27 in
2020
|
|
2,400
|
|
2,420
|
Noncurrent
operating lease liabilities
|
|
160
|
|
154
|
Pension and
postretirement obligations
|
|
466
|
|
479
|
Other
noncurrent liabilities
|
|
320
|
|
368
|
Total
liabilities
|
|
5,546
|
|
5,362
|
Commitments and contingencies
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
194
|
|
180
|
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,
|
|
|
|
|
145,227,689
and 144,515,658 shares outstanding
|
|
2
|
|
2
|
Additional paid-in
capital
|
|
2,420
|
|
2,408
|
Retained
earnings
|
|
617
|
|
530
|
Treasury stock, at
cost (10,658,640 and 10,442,582 shares)
|
|
(161)
|
|
(156)
|
Accumulated other
comprehensive loss
|
|
(1,007)
|
|
(1,026)
|
Total parent
company stockholders' equity
|
|
1,871
|
|
1,758
|
Noncontrolling
interests
|
|
68
|
|
76
|
Total
equity
|
|
1,939
|
|
1,834
|
Total
liabilities and equity
|
|
$
7,679
|
|
$
7,376
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the
Three Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
53
|
|
$
(173)
|
Depreciation
|
|
92
|
|
84
|
Amortization
|
|
5
|
|
5
|
Amortization of
deferred financing charges
|
|
1
|
|
2
|
Redemption
premium on debt
|
|
21
|
|
|
Write-off of
deferred financing costs
|
|
3
|
|
5
|
Earnings of
affiliates, net of dividends received
|
|
7
|
|
13
|
Stock
compensation expense
|
|
4
|
|
(1)
|
Deferred income
taxes
|
|
(22)
|
|
27
|
Pension
expense, net
|
|
|
|
1
|
Change in
working capital
|
|
(106)
|
|
(45)
|
Other,
net
|
|
9
|
|
7
|
Net cash
provided by (used in) operating activities
|
|
67
|
|
(75)
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(80)
|
|
(58)
|
Acquisition of
businesses, net of cash acquired
|
|
(1)
|
|
2
|
Proceeds from
sale of subsidiary, net of cash disposed
|
|
(4)
|
|
|
Purchases of
marketable securities
|
|
(5)
|
|
(3)
|
Proceeds from
sales and maturities of marketable securities
|
|
7
|
|
7
|
Settlement of
terminated fixed-to-fixed cross currency swap
|
|
(22)
|
|
|
Settlements of
undesignated derivatives
|
|
(4)
|
|
(2)
|
Other,
net
|
|
2
|
|
(2)
|
Net cash
used in investing activities
|
|
(107)
|
|
(56)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
(5)
|
|
(306)
|
Proceeds from
long-term debt
|
|
798
|
|
506
|
Repayment of
long-term debt
|
|
(802)
|
|
(2)
|
Redemption
premium on debt
|
|
(21)
|
|
|
Deferred
financing payments
|
|
(11)
|
|
(11)
|
Dividends paid
to common stockholders
|
|
(15)
|
|
|
Distributions
to noncontrolling interests
|
|
(2)
|
|
(2)
|
Sale of
interest to noncontrolling shareholder
|
|
|
|
7
|
Contributions
from noncontrolling interests
|
|
2
|
|
|
Payments to
acquire noncontrolling interests
|
|
|
|
(1)
|
Other,
net
|
|
1
|
|
2
|
Net cash
provided by (used in) financing activities
|
|
(55)
|
|
193
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
(95)
|
|
62
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
493
|
|
636
|
Effect of
exchange rate changes on cash balances
|
|
5
|
|
4
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
403
|
|
$
702
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
121
|
|
$
(135)
|
Depreciation
|
|
180
|
|
169
|
Amortization
|
|
12
|
|
9
|
Amortization of
deferred financing charges
|
|
3
|
|
4
|
Redemption
premium on debt
|
|
21
|
|
|
Write-off of
deferred financing costs
|
|
3
|
|
5
|
Earnings of
affiliates, net of dividends received
|
|
(7)
|
|
11
|
Stock
compensation expense
|
|
9
|
|
3
|
Deferred income
taxes
|
|
(28)
|
|
(8)
|
Pension
expense, net
|
|
|
|
2
|
Impairment of
goodwill
|
|
|
|
51
|
Change in
working capital
|
|
(239)
|
|
(228)
|
Other,
net
|
|
19
|
|
(9)
|
Net cash
provided by (used in) operating activities
|
|
94
|
|
(126)
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(133)
|
|
(121)
|
Acquisition of
businesses, net of cash acquired
|
|
(18)
|
|
(6)
|
Proceeds from
sale of subsidiary, net of cash disposed
|
|
(4)
|
|
|
Purchases of
marketable securities
|
|
(16)
|
|
(15)
|
Proceeds from
sales and maturities of marketable securities
|
|
13
|
|
13
|
Settlement of
terminated fixed-to-fixed cross currency swap
|
|
(22)
|
|
|
Settlements of
undesignated derivatives
|
|
(4)
|
|
(5)
|
Other,
net
|
|
4
|
|
(7)
|
Net cash
used in investing activities
|
|
(180)
|
|
(141)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
(6)
|
|
(8)
|
Proceeds from
long-term debt
|
|
800
|
|
510
|
Repayment of
long-term debt
|
|
(803)
|
|
(3)
|
Redemption
premium on debt
|
|
(21)
|
|
|
Deferred
financing payments
|
|
(13)
|
|
(11)
|
Dividends paid
to common stockholders
|
|
(29)
|
|
(15)
|
Distributions
to noncontrolling interests
|
|
(2)
|
|
(3)
|
Sale of
interest to noncontrolling shareholder
|
|
|
|
7
|
Contributions
from noncontrolling interests
|
|
3
|
|
2
|
Payments to
acquire noncontrolling interests
|
|
|
|
(1)
|
Other,
net
|
|
|
|
(2)
|
Net cash
provided by (used in) financing activities
|
|
(71)
|
|
476
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
(157)
|
|
209
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
567
|
|
518
|
Effect of
exchange rate changes on cash balances
|
|
(7)
|
|
(25)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
403
|
|
$
702
|
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)
|
|
June 30,
|
|
|
2021
|
|
2020
|
Net cash
provided by (used in) operating activities
|
|
$
67
|
|
$
(75)
|
Purchase of
property, plant and equipment
|
|
(80)
|
|
(58)
|
Free cash
flow
|
|
(13)
|
|
(133)
|
Discretionary
pension contributions
|
|
|
|
|
|
Adjusted
free cash flow
|
|
$
(13)
|
|
$
(133)
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2021
|
|
2020
|
Net cash
provided by (used in) operating activities
|
|
$
94
|
|
$
(126)
|
Purchase of
property, plant and equipment
|
|
(133)
|
|
(121)
|
Free cash
flow
|
|
(39)
|
|
(247)
|
Discretionary
pension contributions
|
|
|
|
|
|
Adjusted
free cash flow
|
|
$
(39)
|
|
$
(247)
|
DANA
INCORPORATED
|
|
|
|
|
Segment
Sales and Segment EBITDA (Unaudited)
|
|
|
For the
Three Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2021
|
|
2020
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
890
|
|
$
337
|
Commercial
Vehicle
|
|
387
|
|
203
|
Off-Highway
|
|
669
|
|
398
|
Power
Technologies
|
|
259
|
|
140
|
Total
Sales
|
|
$
2,205
|
|
$
1,078
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
87
|
|
$
(32)
|
Commercial
Vehicle
|
|
18
|
|
(6)
|
Off-Highway
|
|
97
|
|
36
|
Power
Technologies
|
|
32
|
|
(1)
|
Total
Segment EBITDA
|
|
234
|
|
(3)
|
Corporate
expense and other items, net
|
|
(1)
|
|
(2)
|
Adjusted
EBITDA
|
|
$
233
|
|
$
(5)
|
DANA
INCORPORATED
|
|
|
|
|
Segment
Sales and Segment EBITDA (Unaudited)
|
|
|
For the Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2021
|
|
2020
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
1,881
|
|
$
1,145
|
Commercial
Vehicle
|
|
736
|
|
535
|
Off-Highway
|
|
1,304
|
|
931
|
Power
Technologies
|
|
547
|
|
393
|
Total
Sales
|
|
$
4,468
|
|
$
3,004
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
187
|
|
$
51
|
Commercial
Vehicle
|
|
33
|
|
15
|
Off-Highway
|
|
176
|
|
108
|
Power
Technologies
|
|
73
|
|
29
|
Total
Segment EBITDA
|
|
469
|
|
203
|
Corporate
expense and other items, net
|
|
(2)
|
|
(3)
|
Adjusted
EBITDA
|
|
$
467
|
|
$
200
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted
EBITDA to Net Income (Unaudited)
|
|
|
For the
Three Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2021
|
|
2020
|
Segment
EBITDA
|
|
$
234
|
|
$
(3)
|
Corporate expense and
other items, net
|
|
(1)
|
|
(2)
|
Adjusted
EBITDA
|
|
233
|
|
(5)
|
Depreciation
|
|
(92)
|
|
(84)
|
Amortization
|
|
(5)
|
|
(5)
|
Non-service cost
components of pension and OPEB costs
|
|
(3)
|
|
(3)
|
Restructuring
charges, net
|
|
|
|
(16)
|
Stock compensation
expense
|
|
(4)
|
|
1
|
Strategic transaction
expenses
|
|
(5)
|
|
(5)
|
Gain on investment in
Hyliion
|
|
3
|
|
|
Loss on
de-designation of fixed-to-fixed cross currency swaps
|
|
(9)
|
|
|
Other
items
|
|
(5)
|
|
5
|
Earnings (loss)
before interest and income taxes
|
|
113
|
|
(112)
|
Loss on
extinguishment of debt
|
|
(24)
|
|
(5)
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
34
|
|
32
|
Earnings (loss)
before income taxes
|
|
57
|
|
(147)
|
Income tax
expense
|
|
14
|
|
34
|
Equity in
earnings of affiliates
|
|
10
|
|
8
|
Net income
(loss)
|
|
$
53
|
|
$
(173)
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted
EBITDA to Net Income (Unaudited)
|
|
|
For the Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2021
|
|
2020
|
Segment
EBITDA
|
|
$
469
|
|
$
203
|
Corporate expense and
other items, net
|
|
(2)
|
|
(3)
|
Adjusted
EBITDA
|
|
467
|
|
200
|
Depreciation
|
|
(180)
|
|
(169)
|
Amortization
|
|
(12)
|
|
(9)
|
Non-service cost
components of pension and OPEB costs
|
|
(5)
|
|
(5)
|
Restructuring
charges, net
|
|
(1)
|
|
(19)
|
Stock compensation
expense
|
|
(9)
|
|
(3)
|
Strategic transaction
expenses
|
|
(8)
|
|
(11)
|
Loss on investment in
Hyliion
|
|
(14)
|
|
|
Loss on disposal
group held for sale
|
|
(7)
|
|
|
Loss on
de-designation of fixed-to-fixed cross currency swaps
|
|
(9)
|
|
|
Impairment of
goodwill
|
|
|
|
(51)
|
Other
items
|
|
(1)
|
|
2
|
Earnings (loss)
before interest and income taxes
|
|
221
|
|
(65)
|
Loss on
extinguishment of debt
|
|
(24)
|
|
(5)
|
Interest
income
|
|
4
|
|
4
|
Interest
expense
|
|
68
|
|
61
|
Earnings (loss)
before income taxes
|
|
133
|
|
(127)
|
Income tax
expense
|
|
36
|
|
18
|
Equity in
earnings of affiliates
|
|
24
|
|
10
|
Net income
(loss)
|
|
$
121
|
|
$
(135)
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Net Income (Loss)
Attributable to the Parent Company to
|
|
Adjusted Net Income (Loss) Attributable to the Parent Company
and
|
|
|
Diluted Adjusted EPS (Unaudited)
|
|
|
|
|
For the
Three Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
Net income
(loss) attributable to parent company
|
|
$
53
|
|
$
(174)
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
5
|
|
4
|
|
Restructuring
charges, net
|
|
|
|
15
|
|
Strategic
transaction expenses
|
|
5
|
|
5
|
|
Gain on
investment in Hyliion
|
|
(3)
|
|
|
|
Loss on
disposal group held for sale
|
|
2
|
|
|
|
Loss on
extinguishment of debt
|
|
24
|
|
5
|
|
Loss on
de-designation of fixed-to-fixed cross currency
swaps
|
|
9
|
|
|
|
Other
items
|
|
2
|
|
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(4)
|
|
(8)
|
|
Income tax
expense (benefit) attributable to various discrete tax
matters
|
|
(7)
|
|
54
|
Adjusted net
income (loss) attributable to the parent
|
|
$
86
|
|
$
(99)
|
|
|
|
|
|
|
Diluted shares
- as reported
|
|
146.7
|
|
144.5
|
Adjusted
diluted shares
|
|
146.7
|
|
144.5
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.59
|
|
$
(0.69)
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation of Net Income (Loss)
Attributable to the Parent Company to
|
|
Adjusted Net Income (Loss) Attributable to the Parent Company
and
|
|
|
Diluted Adjusted EPS (Unaudited)
|
|
|
|
|
For the Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
|
2021
|
|
2020
|
Net income
(loss) attributable to parent company
|
|
$
124
|
|
$
(116)
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
10
|
|
8
|
|
Restructuring
charges, net
|
|
1
|
|
18
|
|
Strategic
transaction expenses
|
|
8
|
|
11
|
|
Loss on
investment in Hyliion
|
|
14
|
|
|
|
Loss on
disposal group held for sale
|
|
7
|
|
|
|
Loss on
extinguishment of debt
|
|
24
|
|
5
|
|
Loss on
de-designation of fixed-to-fixed cross currency
swaps
|
|
9
|
|
|
|
Other
items
|
|
2
|
|
|
|
Impairment of
goodwill
|
|
|
|
31
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(10)
|
|
(11)
|
|
Income tax
expense (benefit) attributable to various discrete tax
matters
|
|
(6)
|
|
23
|
Adjusted net
income (loss) attributable to the parent
|
|
$
183
|
|
$
(31)
|
|
|
|
|
|
|
Diluted shares
- as reported
|
|
146.5
|
|
144.4
|
Adjusted
diluted shares
|
|
146.5
|
|
144.4
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
1.25
|
|
$
(0.21)
|
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multimedia:https://www.prnewswire.com/news-releases/dana-incorporated-reports-robust-2021-second-quarter-financial-results-reiterates-full-year-guidance-ranges-driven-by-strong-demand-301344919.html
SOURCE Dana Incorporated