Key Highlights
- Sales of $2.59 billion, an
increase of $381 million
- Net income attributable to Dana of $8
million
- Diluted EPS of $0.06
- Adjusted EBITDA of $162
million
- Diluted adjusted EPS of $0.08
- Free cash flow of $167 million,
an increase of $180 million
MAUMEE,
Ohio, August 3, 2022 /PRNewswire/ -- Dana
Incorporated (NYSE: DAN) today announced financial results for the
second quarter of 2022.
"While strong demand, the launching of our new business backlog,
and the recovery of commodity costs continued to fuel sales growth
for Dana in the second quarter, margins were impacted as a result
of record inflation and rising material costs, ongoing supply-chain
disruptions, and volatile customer demand schedules that are
affecting the entire mobility industry," said James Kamsickas, Dana chairman and chief
executive officer.
"Despite these challenges, Dana generated significant cash flow
in the second quarter as we continued our successful transformation
into a leading e-Propulsion supplier. We are focused on
launching our new products for both traditional and EV programs,
and we are well-positioned to capitalize on the strengthening of
our businesses when the global environment begins to
stabilize."
Second-quarter 2022 Financial
Results
Sales for the second quarter of 2022 totaled $2.59 billion, compared with $2.21 billion in the same period of 2021, a
$381 million improvement driven by
strong customer demand across all of our end markets and the
recovery of commodity costs, partially offset by foreign currency
translation.
Adjusted EBITDA for the second quarter of 2022 was $162 million, compared with $233 million for the same period in
2021. Profit conversion on higher sales in the second
quarter of 2022 continued to be tempered by higher raw material
costs and non-material inflation, as well as production
inefficiencies driven by supply-chain constraints and volatile
customer demand schedules across the mobility industry.
Adjusted net income attributable to Dana was $12 million
and diluted adjusted earnings per share were $0.08 for the second quarter of 2022,
compared with an adjusted net income of $86 million and
$0.59 per share in 2021.
Operating cash flow in the second quarter of 2022 was
$257 million, compared with $67 million in the same
period of 2021.
Free cash flow was $167 million,
compared with a use of $13 million in the second quarter of
2021. The improvement was driven by lower working capital
requirements largely attributable to focused management of
inventories and receivables.
"Our adjusted profit targets reflect the difficult environment
that continues to impact the entire mobility industry as a result
of global supply-chain disruptions and record cost inflation," said
Timothy Kraus, Dana senior vice
president and chief financial officer.
"We continue to aggressively work to mitigate the impact of
these challenges. As they begin to subside, we anticipate a
sustained recovery period as a more stable production and supply
environment, combined with strong end-consumer demand and
low-vehicle inventories should drive profitable growth."
2022 Financial Targets1
- Sales of $10 to $10.2 billion;
- Adjusted EBITDA of $700 to
$740 million, an implied adjusted
EBITDA margin of approximately 7.1 percent at the midpoint of the
range;
- Diluted adjusted EPS of $0.60 to
$0.90;
- Operating cash flow of approximately 6.2 to 6.5 percent of
sales; and
- Free cash flow of approximately 1.8 to 2.2 percent of
sales.
1
|
Net income and diluted
EPS guidance are not provided, as discussed below in Non-GAAP
Financial Information.
|
Dana to Host Conference Call at 10
a.m. Wednesday, August 3
Dana will discuss its second-quarter results in a conference
call at 10 a.m. EDT on Wednesday,
August 3. 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 888-440-5873 and international locations should call
646-960-0319. Please enter conference I.D. 9943139 and ask
for "Dana Incorporated's Financial Webcast and Conference
Call." Phone registration will be available beginning at
9:30 a.m. EDT.
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 that power
vehicles and machines in all mobility markets across the globe. The
company is shaping sustainable progress through its conventional
and clean-energy solutions that 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 $8.9
billion in 2021 with 40,000 people in 31 countries across
six continents. Founded in 1904, Dana was named one of "America's
Most Responsible Companies 2022" by Newsweek for its emphasis on
sustainability and social responsibility. The company is driven by
a high-performance culture that focuses on valuing others,
inspiring innovation, growing responsibly, and winning together,
earning it global recognition as a top employer. Learn more at
dana.com.
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
|
|
|
|
For the Three
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
Net
sales
|
|
|
$ 2,586
|
|
$ 2,205
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
2,403
|
|
1,953
|
Selling, general and
administrative expenses
|
|
130
|
|
126
|
Amortization of
intangibles
|
|
3
|
|
3
|
Restructuring charges,
net
|
|
1
|
|
-
|
Other income
(expense), net
|
|
10
|
|
(10)
|
Earnings before
interest and income taxes
|
|
59
|
|
113
|
Loss on
extinguishment of debt
|
|
-
|
|
(24)
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
32
|
|
34
|
Earnings before
income taxes
|
|
29
|
|
57
|
Income tax
expense
|
|
18
|
|
14
|
Equity in
earnings (loss) of affiliates
|
|
(1)
|
|
10
|
Net
income
|
|
10
|
|
53
|
Less: Noncontrolling
interests net income
|
|
3
|
|
4
|
Less: Redeemable
noncontrolling interests net loss
|
|
(1)
|
|
(4)
|
Net income
attributable to the parent company
|
|
$
8
|
|
$
53
|
|
|
|
|
|
|
Net income per
share available to common stockholders
|
|
|
|
|
Basic
|
|
|
$
0.06
|
|
$
0.37
|
Diluted
|
|
|
$
0.06
|
|
$
0.36
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
143.4
|
|
145.2
|
Weighted-average
shares outstanding - Diluted
|
|
143.7
|
|
146.7
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
|
|
|
|
For the Six
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In millions,
except per share amounts)
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
Net
sales
|
|
|
$ 5,066
|
|
$ 4,468
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
4,686
|
|
3,965
|
Selling, general and
administrative expenses
|
|
260
|
|
245
|
Amortization of
intangibles
|
|
7
|
|
7
|
Restructuring charges,
net
|
|
|
|
1
|
Other income
(expense), net
|
|
12
|
|
(29)
|
Earnings before
interest and income taxes
|
|
125
|
|
221
|
Loss on
extinguishment of debt
|
|
|
|
(24)
|
Interest
income
|
|
4
|
|
4
|
Interest
expense
|
|
63
|
|
68
|
Earnings before
income taxes
|
|
66
|
|
133
|
Income tax
expense
|
|
36
|
|
36
|
Equity in
earnings of affiliates
|
|
|
|
24
|
Net
income
|
|
30
|
|
121
|
Less: Noncontrolling
interests net income
|
|
7
|
|
5
|
Less: Redeemable
noncontrolling interests net loss
|
|
(2)
|
|
(8)
|
Net income
attributable to the parent company
|
|
$
25
|
|
$
124
|
|
|
|
|
|
|
Net income per
share available to common stockholders
|
|
|
|
|
Basic
|
|
|
$
0.17
|
|
$
0.85
|
Diluted
|
|
|
$
0.17
|
|
$
0.85
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
143.8
|
|
145.1
|
Weighted-average
shares outstanding - Diluted
|
|
144.6
|
|
146.5
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Three
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
Net
income
|
|
$
10
|
|
$
53
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
Currency translation
adjustments
|
|
(91)
|
|
19
|
|
Hedging gains and
losses
|
|
1
|
|
16
|
|
Defined benefit
plans
|
|
3
|
|
4
|
|
Other comprehensive
income (loss)
|
|
(87)
|
|
39
|
Total comprehensive
income (loss)
|
|
(77)
|
|
92
|
|
Less: Comprehensive
(income) loss attributable to noncontrolling interests
|
|
(1)
|
|
5
|
|
Less: Comprehensive
(income) loss attributable to redeemable noncontrolling
interests
|
|
7
|
|
(7)
|
Comprehensive income
(loss) attributable to the parent company
|
|
$
(71)
|
|
$
90
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Six
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
Net
income
|
|
$
30
|
|
$
121
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
Currency translation
adjustments
|
|
(52)
|
|
14
|
|
Hedging gains and
losses
|
|
(3)
|
|
(1)
|
|
Defined benefit
plans
|
|
4
|
|
7
|
|
Other comprehensive
income (loss)
|
|
(51)
|
|
20
|
Total comprehensive
income (loss)
|
|
(21)
|
|
141
|
|
Less: Comprehensive
(income) loss attributable to noncontrolling interests
|
|
(5)
|
|
6
|
|
Less: Comprehensive
(income) loss attributable to redeemable noncontrolling
interests
|
|
8
|
|
(4)
|
Comprehensive income
(loss) attributable to the parent company
|
|
$
(18)
|
|
$
143
|
DANA
INCORPORATED
|
|
|
|
|
|
|
Consolidated
Balance Sheet (Unaudited)
|
|
|
|
|
|
|
As of June 30,
2022 and December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except share and per share amounts)
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
321
|
|
$
268
|
Marketable
securities
|
|
19
|
|
17
|
Accounts
receivable
|
|
|
|
|
|
Trade, less
allowance for doubtful accounts of $8 in 2022 and $7 in
2021
|
|
1,555
|
|
1,321
|
|
Other
|
|
247
|
|
220
|
Inventories
|
|
1,594
|
|
1,564
|
Other current
assets
|
|
217
|
|
196
|
|
|
Total current
assets
|
|
3,953
|
|
3,586
|
Goodwill
|
|
458
|
|
482
|
Intangibles
|
|
213
|
|
233
|
Deferred tax
assets
|
|
608
|
|
580
|
Other noncurrent
assets
|
|
142
|
|
131
|
Investments in
affiliates
|
|
137
|
|
174
|
Operating lease
assets
|
|
272
|
|
247
|
Property, plant
and equipment, net
|
|
2,136
|
|
2,199
|
|
|
Total
assets
|
|
$
7,919
|
|
$
7,632
|
|
|
|
|
|
|
|
Liabilities
and equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
235
|
|
$
23
|
Current portion
of long-term debt
|
|
8
|
|
8
|
Accounts
payable
|
|
1,766
|
|
1,571
|
Accrued payroll
and employee benefits
|
|
220
|
|
184
|
Taxes on
income
|
|
64
|
|
41
|
Current portion
of operating lease liabilities
|
|
43
|
|
43
|
Other accrued
liabilities
|
|
269
|
|
304
|
|
|
Total current
liabilities
|
|
2,605
|
|
2,174
|
Long-term debt,
less debt issuance costs of $24 in 2022 and $26 in
2021
|
|
2,352
|
|
2,386
|
Noncurrent
operating lease liabilities
|
|
236
|
|
209
|
Pension and
postretirement obligations
|
|
372
|
|
398
|
Other noncurrent
liabilities
|
|
252
|
|
292
|
|
|
Total
liabilities
|
|
5,817
|
|
5,459
|
Commitments and contingencies
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
|
199
|
|
198
|
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,
|
|
|
|
|
|
|
143,351,443 and
144,238,660 shares outstanding
|
|
2
|
|
2
|
|
Additional
paid-in capital
|
|
2,435
|
|
2,427
|
|
Retained
earnings
|
|
656
|
|
662
|
|
Treasury stock,
at cost (13,469,074 and 11,661,591 shares)
|
|
(216)
|
|
(184)
|
|
Accumulated other
comprehensive loss
|
|
(1,028)
|
|
(985)
|
|
|
Total parent
company stockholders' equity
|
|
1,849
|
|
1,922
|
Noncontrolling
interests
|
|
54
|
|
53
|
|
|
Total
equity
|
|
1,903
|
|
1,975
|
|
|
Total
liabilities, redeemable noncontrolling interests and
equity
|
|
$
7,919
|
|
$
7,632
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the Three
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
10
|
|
$
53
|
Depreciation
|
|
91
|
|
92
|
Amortization
|
|
5
|
|
5
|
Amortization of
deferred financing charges
|
|
2
|
|
1
|
Redemption
premium on debt
|
|
|
|
21
|
Write-off of
deferred financing costs
|
|
|
|
3
|
Earnings of
affiliates, net of dividends received
|
|
30
|
|
7
|
Stock
compensation expense
|
|
4
|
|
4
|
Deferred income
taxes
|
|
(17)
|
|
(22)
|
Pension expense,
net
|
|
1
|
|
|
Change in working
capital
|
|
127
|
|
(106)
|
Other,
net
|
|
4
|
|
9
|
Net cash
provided by operating activities
|
|
257
|
|
67
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(90)
|
|
(80)
|
Acquisition of
businesses, net of cash acquired
|
|
(1)
|
|
(1)
|
Proceeds from
sale of subsidiary, net of cash disposed
|
|
|
|
(4)
|
Purchases of
marketable securities
|
|
(8)
|
|
(5)
|
Proceeds from
sales and maturities of marketable securities
|
|
8
|
|
7
|
Settlement of
terminated fixed-to-fixed cross currency swap
|
|
|
|
(22)
|
Settlements of
undesignated derivatives
|
|
(7)
|
|
(4)
|
Other,
net
|
|
|
|
2
|
Net cash used
in investing activities
|
|
(98)
|
|
(107)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
(64)
|
|
(5)
|
Proceeds from
long-term debt
|
|
|
|
798
|
Repayment of
long-term debt
|
|
(2)
|
|
(802)
|
Redemption
premium on debt
|
|
|
|
(21)
|
Deferred
financing payments
|
|
|
|
(11)
|
Dividends paid to
common stockholders
|
|
(15)
|
|
(15)
|
Distributions to
noncontrolling interests
|
|
(1)
|
|
(2)
|
Contributions
from redeemable noncontrolling interests
|
|
5
|
|
2
|
Payments to
acquire noncontrolling interests
|
|
(1)
|
|
|
Other,
net
|
|
1
|
|
1
|
Net cash used
in financing activities
|
|
(77)
|
|
(55)
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
82
|
|
(95)
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
280
|
|
493
|
Effect of
exchange rate changes on cash balances
|
|
(22)
|
|
5
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$ 340
|
|
$ 403
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the Six
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
30
|
|
$ 121
|
Depreciation
|
|
182
|
|
180
|
Amortization
|
|
11
|
|
12
|
Amortization of
deferred financing charges
|
|
3
|
|
3
|
Redemption
premium on debt
|
|
|
|
21
|
Write-off of
deferred financing costs
|
|
|
|
3
|
Earnings of
affiliates, net of dividends received
|
|
29
|
|
(7)
|
Stock
compensation expense
|
|
8
|
|
9
|
Deferred income
taxes
|
|
(42)
|
|
(28)
|
Change in working
capital
|
|
(84)
|
|
(239)
|
Other,
net
|
|
(1)
|
|
19
|
Net cash
provided by operating activities
|
|
136
|
|
94
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(206)
|
|
(133)
|
Acquisition of
businesses, net of cash acquired
|
|
(1)
|
|
(18)
|
Proceeds from
sale of subsidiary, net of cash disposed
|
|
|
|
(4)
|
Purchases of
marketable securities
|
|
(13)
|
|
(16)
|
Proceeds from
sales and maturities of marketable securities
|
|
10
|
|
13
|
Settlement of
terminated fixed-to-fixed cross currency swap
|
|
|
|
(22)
|
Settlements of
undesignated derivatives
|
|
(7)
|
|
(4)
|
Other,
net
|
|
2
|
|
4
|
Net cash used
in investing activities
|
|
(215)
|
|
(180)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
214
|
|
(6)
|
Proceeds from
long-term debt
|
|
2
|
|
800
|
Repayment of
long-term debt
|
|
(5)
|
|
(803)
|
Redemption
premium on debt
|
|
|
|
(21)
|
Deferred
financing payments
|
|
|
|
(13)
|
Dividends paid to
common stockholders
|
|
(29)
|
|
(29)
|
Repurchases of
common stock
|
|
(25)
|
|
|
Distributions to
noncontrolling interests
|
|
(2)
|
|
(2)
|
Contributions
from redeemable noncontrolling interests
|
|
7
|
|
3
|
Payments to
acquire noncontrolling interests
|
|
(4)
|
|
|
Other,
net
|
|
(6)
|
|
|
Net cash
provided by (used in) financing activities
|
|
152
|
|
(71)
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
73
|
|
(157)
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
287
|
|
567
|
Effect of
exchange rate changes on cash balances
|
|
(20)
|
|
(7)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$ 340
|
|
$ 403
|
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)
|
|
June 30,
|
|
|
2022
|
|
2021
|
Net cash
provided by operating activities
|
|
$
257
|
|
$ 67
|
Purchase of
property, plant and equipment
|
|
(90)
|
|
(80)
|
Free cash
flow
|
|
167
|
|
(13)
|
Discretionary
pension contributions
|
|
|
|
|
|
Adjusted free
cash flow
|
|
$
167
|
|
$ (13)
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2022
|
|
2021
|
Net cash
provided by operating activities
|
|
$
136
|
|
$ 94
|
Purchase of
property, plant and equipment
|
|
(206)
|
|
(133)
|
Free cash
flow
|
|
(70)
|
|
(39)
|
Discretionary
pension contributions
|
|
|
|
|
|
Adjusted free
cash flow
|
|
$
(70)
|
|
$ (39)
|
DANA
INCORPORATED
|
|
|
|
|
Segment Sales
and Segment EBITDA (Unaudited)
|
|
|
For the Three
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2022
|
|
2021
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
1,028
|
|
$
890
|
Commercial
Vehicle
|
|
507
|
|
387
|
Off-Highway
|
|
768
|
|
669
|
Power
Technologies
|
|
283
|
|
259
|
Total
Sales
|
|
$
2,586
|
|
$
2,205
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
33
|
|
$
87
|
Commercial
Vehicle
|
|
10
|
|
18
|
Off-Highway
|
|
100
|
|
97
|
Power
Technologies
|
|
21
|
|
32
|
Total Segment
EBITDA
|
|
164
|
|
234
|
Corporate expense
and other items, net
|
|
(2)
|
|
(1)
|
Adjusted
EBITDA
|
|
$
162
|
|
$
233
|
DANA
INCORPORATED
|
|
|
|
|
Segment Sales
and Segment EBITDA (Unaudited)
|
|
|
For the Six
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2022
|
|
2021
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
2,013
|
|
$
1,881
|
Commercial
Vehicle
|
|
970
|
|
736
|
Off-Highway
|
|
1,512
|
|
1,304
|
Power
Technologies
|
|
571
|
|
547
|
Total
Sales
|
|
$
5,066
|
|
$
4,468
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
64
|
|
$
187
|
Commercial
Vehicle
|
|
20
|
|
33
|
Off-Highway
|
|
200
|
|
176
|
Power
Technologies
|
|
50
|
|
73
|
Total Segment
EBITDA
|
|
334
|
|
469
|
Corporate expense
and other items, net
|
|
(2)
|
|
(2)
|
Adjusted
EBITDA
|
|
$
332
|
|
$
467
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Segment and Adjusted EBITDA to Net Income
(Unaudited)
|
|
|
For the Three
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2022
|
|
2021
|
Segment
EBITDA
|
|
$
164
|
|
$
234
|
Corporate expense and
other items, net
|
|
(2)
|
|
(1)
|
Adjusted
EBITDA
|
|
162
|
|
233
|
Depreciation
|
|
(91)
|
|
(92)
|
Amortization
|
|
(5)
|
|
(5)
|
Non-service cost
components of pension and OPEB costs
|
|
(3)
|
|
(3)
|
Restructuring charges,
net
|
|
(1)
|
|
|
Stock compensation
expense
|
|
(4)
|
|
(4)
|
Strategic transaction
expenses
|
|
(1)
|
|
(5)
|
Gain on investment in
Hyliion
|
|
|
|
3
|
Loss on de-designation
of fixed-to-fixed cross currency swaps
|
|
|
|
(9)
|
Other items
|
|
2
|
|
(5)
|
Earnings before
interest and income taxes
|
|
59
|
|
113
|
Loss on extinguishment
of debt
|
|
|
|
(24)
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
32
|
|
34
|
Earnings before
income taxes
|
|
29
|
|
57
|
Income tax
expense
|
|
18
|
|
14
|
Equity in
earnings (loss) of affiliates
|
|
(1)
|
|
10
|
Net
income
|
|
$
10
|
|
$
53
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Segment and Adjusted EBITDA to Net Income
(Unaudited)
|
|
|
For the Six
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
|
|
|
2022
|
|
2021
|
Segment
EBITDA
|
|
$
334
|
|
$
469
|
Corporate expense and
other items, net
|
|
(2)
|
|
(2)
|
Adjusted
EBITDA
|
|
332
|
|
467
|
Depreciation
|
|
(182)
|
|
(180)
|
Amortization
|
|
(11)
|
|
(12)
|
Non-service cost
components of pension and OPEB costs
|
|
(3)
|
|
(5)
|
Restructuring charges,
net
|
|
|
|
(1)
|
Stock compensation
expense
|
|
(8)
|
|
(9)
|
Strategic transaction
expenses
|
|
(5)
|
|
(8)
|
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)
|
Other items
|
|
2
|
|
(1)
|
Earnings before
interest and income taxes
|
|
125
|
|
221
|
Loss on extinguishment
of debt
|
|
|
|
(24)
|
Interest
income
|
|
4
|
|
4
|
Interest
expense
|
|
63
|
|
68
|
Earnings before
income taxes
|
|
66
|
|
133
|
Income tax
expense
|
|
36
|
|
36
|
Equity in
earnings of affiliates
|
|
|
|
24
|
Net
income
|
|
$
30
|
|
$
121
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Net Income Attributable to the Parent Company
to
|
|
|
Adjusted Net Income Attributable to the Parent Company
and
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the Three
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
Net income
attributable to parent company
|
|
$
8
|
|
$
53
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
5
|
|
5
|
|
Restructuring
charges, net
|
|
1
|
|
|
|
Strategic
transaction expenses
|
|
3
|
|
5
|
|
Gain on
investment in Hyliion
|
|
|
|
(3)
|
|
Loss on disposal
group held for sale
|
|
|
|
2
|
|
Loss on
extinguishment of debt
|
|
|
|
24
|
|
Loss on
de-designation of fixed-to-fixed cross currency
swaps
|
|
|
|
9
|
|
Other
items
|
|
(2)
|
|
2
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(3)
|
|
(4)
|
|
Income tax
benefit attributable to various discrete tax
matters
|
|
|
|
(7)
|
Adjusted net
income attributable to the parent
|
|
$
12
|
|
$
86
|
|
|
|
|
|
|
Diluted shares -
as reported
|
|
143.7
|
|
146.7
|
Adjusted diluted
shares
|
|
143.7
|
|
146.7
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.08
|
|
$
0.59
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Net Income Attributable to the Parent Company
to
|
|
|
Adjusted Net Income Attributable to the Parent Company
and
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the Six
Months Ended June 30, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
|
2022
|
|
2021
|
Net income
attributable to parent company
|
|
$
25
|
|
$
124
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
10
|
|
10
|
|
Restructuring
charges, net
|
|
|
|
1
|
|
Strategic
transaction expenses
|
|
5
|
|
8
|
|
Loss on
investment in Hyliion
|
|
|
|
14
|
|
Loss on disposal
group held for sale
|
|
|
|
7
|
|
Loss on
extinguishment of debt
|
|
|
|
24
|
|
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
|
|
(5)
|
|
(10)
|
|
Income tax
benefit attributable to various discrete tax
matters
|
|
|
|
(6)
|
Adjusted net
income attributable to the parent
|
|
$
35
|
|
$
183
|
|
|
|
|
|
|
Diluted shares -
as reported
|
|
144.6
|
|
146.5
|
Adjusted diluted
shares
|
|
144.6
|
|
146.5
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.24
|
|
$
1.25
|
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SOURCE Dana Incorporated