EX-99.1 2 d289463dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

IMMEDIATE    

Dana Incorporated Reports 2021 Financial Results,

Issues Guidance for 2022

Company Announces Strong Three-year Sales Backlog of $800 Million,

Half from Electrified-vehicle Programs

Full-year Results

 

  •  

Sales of $8.9 billion, an increase of $1.8 billion

 

  •  

Net income attributable to Dana of $197 million, an increase of $228 million

 

  •  

Diluted EPS of $1.35, an increase of $1.56

 

  •  

Adjusted EBITDA of $795 million; margin of 8.9 percent of sales

 

  •  

Diluted adjusted EPS of $1.66, an improvement of $1.27

 

  •  

Operating cash flow of $158 million

MAUMEE, Ohio, Feb. 23, 2022 – Dana Incorporated (NYSE: DAN) today announced financial results for the fourth quarter and full-year 2021.

“Despite a year of unprecedented challenges impacting the global mobility industry, including substantial supply-chain constraints and cost inflation, Dana had significantly stronger sales, Adjusted EBITDA, and Adjusted EPS in 2021,” said James Kamsickas, Dana chairman and CEO. “As we look forward to 2022, we expect to see some easing later this year of the challenges that have hindered our customers’ ability to produce vehicles, and we are well positioned to benefit from simultaneous recovery in all three of our end markets. In addition to this market recovery and cyclical growth, about half of our $800 million of new business sales backlog is coming online this year, representing above-market growth, with half of our backlog coming from electrification.”

Fourth-quarter 2021 Financial Results

Sales for the fourth quarter of 2021 totaled $2.27 billion, compared with $2.11 billion in the same period of 2020, representing a $165 million increase driven by strong customer demand in our heavy-vehicle markets and the recovery of commodity cost inflation.

Net income attributable to Dana was $25 million for the fourth quarter of 2021, compared with $40 million in the same period of 2020. The year-over-year decline was due to higher input costs for commodities, transportation, labor, and energy combined with production inefficiencies driven by inconsistent customer order patterns. The impact of the period cost related to our new U.S. labor agreement was offset by lower restructuring charges. The fourth quarter of 2021 benefited from a $51 million gain resulting from a facility sale-leaseback transaction.

Reported diluted earnings per share were $0.18, compared with diluted earnings per share of $0.27 in the fourth quarter of 2020.

Adjusted EBITDA for the fourth quarter of 2021 was $118 million, compared with $192 million for the same period in 2020. Profit margin compression in the fourth quarter of 2021 was primarily driven by higher input costs, including higher commodity costs, and the $17 million of period cost related to our new U.S. labor agreement.

Diluted adjusted earnings per share, which do not include the benefit of the sale-leaseback transaction, were negligible in the fourth quarter of 2021, compared with $0.24 in the same period of the prior year. The lower year-over-year comparison was primarily due to lower earnings resulting from higher input costs and the period cost related to a new U.S. labor agreement.

 

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Operating cash flow in the fourth quarter of 2021 was $139 million, compared with $191 million in the same period of 2020. Free cash flow was a use of $2 million, compared with free cash flow of $46 million in the fourth quarter of 2020. Cash flow use in this year’s fourth quarter was driven by higher working capital requirements, primarily inventory, resulting from customer schedule disruptions and supply-chain challenges.

Full-year 2021 Financial Results

Sales for 2021 were $8.9 billion, compared with $7.1 billion in 2020. The increase of $1.8 billion is primarily attributable to stronger demand across all mobility markets.

The net income attributable to Dana was $197 million, compared with a net loss of $31 million in 2020.

Reported diluted earnings per share were a gain of $1.35, compared with a net loss of $0.21 in 2020.

Adjusted EBITDA for 2021 was $795 million or 8.9 percent of sales, compared with $593 million or 8.3 percent of sales in 2020. Margin headwinds were driven by higher commodity costs, production inefficiencies caused by OEM supply chain disruptions, and cost inflation in transportation, energy, and labor.

Diluted adjusted earnings per share for 2021 were $1.66, compared with $0.39 in 2020.

The company reported operating cash flow of $158 million in 2021. Free cash flow was a use of $211 million, compared with free cash flow of $60 million in 2020. Cash flow use in this year was driven by higher inventory requirements resulting from customer schedule disruptions and supply-chain challenges, compared with lower inventory levels in 2020 due primarily to actions taken to reduce inventory levels, preserving working capital, in response to the COVID pandemic.

“Global supply-chain disruptions, high commodity costs, and labor and semiconductor shortages have continued to disrupt our customers’ production patterns that, in turn, have pressured our margins and limited free cash flow over the past year,” said Timothy Kraus, Dana senior vice president and chief financial officer. “We carried higher levels of inventory in 2021 to protect our ability to supply our customers and mitigate ongoing global supply-chain disruptions and labor shortages. As these challenges begin to subside, we anticipate a sustained recovery period as low end-market inventory levels, combined with strong end-consumer demand, drive higher sales and a more stable production environment, allowing us to drastically reduce our inventory as well as improve margins.”

2022 Financial Targets1

 

  •  

Sales of $9.6 to $10.1 billion;

 

  •  

Adjusted EBITDA of $900 million to $1.0 billion, an implied adjusted EBITDA margin of approximately 9.6 percent at the midpoint of the range;

 

  •  

Diluted adjusted EPS of $2.05 to $2.55;

 

  •  

Operating cash flow of approximately 6.5 to 7.5 percent of sales; and

 

  •  

Free cash flow of approximately 2.5 to 3.5 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 9 a.m. Wednesday, Feb. 23

Dana will discuss its fourth-quarter and full-year results in a conference call at 9 a.m. EST on Wednesday, Feb. 23. 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. 2493396 ask for the “Dana Incorporated’s Financial Webcast and Conference Call.” Phone registration will be available beginning at 8:30 a.m. EST.

 

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An audio recording of the webcast will be available after 5 p.m. EST on Feb. 23 by dialing 1-855-859-2056 (U.S. or Canada) or 1-404-537-3406 (international) and entering conference I.D. 2493396. 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,”

 

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“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 associates in 32 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.

###

Media Contact:          Jeff Cole

+1-419-887-3535

jeff.cole@dana.com

Investor Contact:        Craig Barber

+1-419-887-5166

craig.barber@dana.com

 

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DANA INCORPORATED     

Consolidated Statement of Operations (Unaudited)     

For the Three Months Ended December 31, 2021 and 2020     

 

(In millions, except per share amounts)    Three Months Ended
December 31,		  
     2021     2020  

Net sales

    $ 2,273     $ 2,108  

Costs and expenses

     

Cost of sales

      2,145       1,897  

Selling, general and administrative expenses

      112       122  

Amortization of intangibles

      3       3  

Restructuring charges, net

      (2 )      13  

Other income (expense), net

      65       27  
  

 

 

    

 

 

  

Earnings before interest and income taxes

      80       100  

Loss on extinguishment of debt

      (5 )      (3 ) 

Interest income

      3       2  

Interest expense

      32       39  
  

 

 

    

 

 

  

Earnings before income taxes

      46       60  

Income tax expense

      16       24  

Equity in earnings of affiliates

      (1 )      3  
  

 

 

    

 

 

  

Net income

      29       39  

Less: Noncontrolling interests net income

      5       4  

Less: Redeemable noncontrolling interests net loss

      (1 )      (5 ) 
  

 

 

    

 

 

  

Net income attributable to the parent company

    $ 25     $ 40  
  

 

 

    

 

 

  

Net income per share available to common stockholders

     

Basic

    $ 0.18     $ 0.28  

Diluted

    $ 0.18     $ 0.27  

Weighted-average shares outstanding - Basic

      144.3       144.6  

Weighted-average shares outstanding - Diluted

      145.8       145.7  

DANA INCORPORATED     

Consolidated Statement of Operations     

For the Year Ended December 31, 2021 and 2020     

 

(In millions, except per share amounts)    Year Ended
December 31,		  
     2021     2020  

Net sales

    $ 8,945     $ 7,106  

Costs and expenses

     

Cost of sales

      8,108       6,485  

Selling, general and administrative expenses

      460       421  

Amortization of intangibles

      14       13  

Restructuring charges, net

        34  

Impairment of goodwill

        (51 ) 

Other income (expense), net

      32       22  
  

 

 

    

 

 

  

Earnings before interest and income taxes

      395       124  

Loss on extinguishment of debt

      (29 )      (8 ) 

Interest income

      9       9  

Interest expense

      131       138  
  

 

 

    

 

 

  

Earnings (loss) before income taxes

      244       (13 ) 

Income tax expense

      72       58  

Equity in earnings of affiliates

      28       20  
  

 

 

    

 

 

  

Net income (loss)

      200       (51 ) 

Less: Noncontrolling interests net income

      14       10  

Less: Redeemable noncontrolling interests net loss

      (11 )      (30 ) 
  

 

 

    

 

 

  

Net income (loss) attributable to the parent company

    $ 197     $ (31 ) 
  

 

 

    

 

 

  

Net income (loss) per share available to common stockholders

     

Basic

    $ 1.36     $ (0.21 ) 

Diluted

    $ 1.35     $ (0.21 ) 

Weighted-average shares outstanding - Basic

      144.8       144.5  

Weighted-average shares outstanding - Diluted

      146.2       144.5  

DANA INCORPORATED     

Consolidated Statement of Comprehensive Income (Unaudited)     

For the Three Months Ended December 31, 2021 and 2020     

 

(In millions)    Three Months Ended
December 31,		  
     2021     2020  

Net income

    $ 29     $ 39  

Other comprehensive income (loss), net of tax:

     

Currency translation adjustments

      2       56  

Hedging gains and losses

      5       (1 ) 

Defined benefit plans

      42       (2 ) 
  

 

 

    

 

 

  

Other comprehensive income

      49       53  
  

 

 

    

 

 

  

Total comprehensive income

      78       92  

Less: Comprehensive income attributable to noncontrolling interests

      (4 )      (20 ) 

Less: Comprehensive loss attributable to redeemable noncontrolling interests

      1       11  
  

 

 

    

 

 

  

Comprehensive income attributable to the parent company

    $ 75     $ 83  
  

 

 

    

 

 

  

DANA INCORPORATED     

Consolidated Statement of Comprehensive Income     

For the Year Ended December 31, 2021 and 2020     

 

(In millions)    Year Ended
December 31,		  
     2021     2020  

Net income (loss)

    $ 200     $ (51 ) 

Other comprehensive income (loss), net of tax:

     

Currency translation adjustments

      (9 )      (77 ) 

Hedging gains and losses

      (5 )      39  

Defined benefit plans

      53       9  
  

 

 

    

 

 

  

Other comprehensive income (loss)

      39       (29 ) 
  

 

 

    

 

 

  

Total comprehensive income (loss)

      239       (80 ) 

Less: Comprehensive income attributable to noncontrolling interests

      (2 )      (27 ) 

Less: Comprehensive loss attributable to redeemable noncontrolling interests

      1       36  
  

 

 

    

 

 

  

Comprehensive income (loss) attributable to the parent company

    $ 238     $ (71 ) 
  

 

 

    

 

 

  

DANA INCORPORATED     

Consolidated Balance Sheet     

As of December 31, 2021 and December 31, 2020     

 

(In millions, except share and per share amounts)    December 31,
2021		     December 31,
2020		  

Assets

     

Current assets

     

Cash and cash equivalents

    $ 268     $ 559  

Marketable securities

      17       21  

Accounts receivable

     

Trade, less allowance for doubtful accounts of $7 in 2021 and $7 in 2020

      1,321       1,201  

Other

      220       231  

Inventories

      1,564       1,149  

Other current assets

      196       127  
  

 

 

    

 

 

  

Total current assets

      3,586       3,288  

Goodwill

      482       479  

Intangibles

      233       236  

Deferred tax assets

      580       611  

Other noncurrent assets

      131       169  

Investments in affiliates

      174       152  

Operating lease assets

      247       190  

Property, plant and equipment, net

      2,199       2,251  
  

 

 

    

 

 

  

Total assets

    $ 7,632     $ 7,376  
  

 

 

    

 

 

  

Liabilities and equity

     

Current liabilities

     

Short-term debt

    $ 23     $ 26  

Current portion of long-term debt

      8       8  

Accounts payable

      1,571       1,331  

Accrued payroll and employee benefits

      184       190  

Taxes on income

      41       35  

Current portion of operating lease liabilities

      43       43  

Other accrued liabilities

      304       308  
  

 

 

    

 

 

  

Total current liabilities

      2,174       1,941  

Long-term debt, less debt issuance costs of $26 in 2021 and $27 in 2020

      2,386       2,420  

Noncurrent operating lease liabilities

      209       154  

Pension and postretirement obligations

      398       479  

Other noncurrent liabilities

      292       368  
  

 

 

    

 

 

  

Total liabilities

      5,459       5,362  
  

 

 

    

 

 

  

Commitments and contingencies

     

Redeemable noncontrolling interests

      198       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, 144,238,660 and 144,515,658 shares outstanding

      2       2  

Additional paid-in capital

      2,427       2,408  

Retained earnings

      662       530  

Treasury stock, at cost (11,661,591 and 10,442,582 shares)

      (184 )      (156 ) 

Accumulated other comprehensive loss

      (985 )      (1,026 ) 
  

 

 

    

 

 

  

Total parent company stockholders’ equity

      1,922       1,758  

Noncontrolling interests

      53       76  
  

 

 

    

 

 

  

Total equity

      1,975       1,834  
  

 

 

    

 

 

  

Total liabilities, redeemable noncontrolling interests and equity

    $ 7,632     $ 7,376  
  

 

 

    

 

 

  

DANA INCORPORATED     

Consolidated Statement of Cash Flows (Unaudited)     

For the Three Months Ended December 31, 2021 and 2020

 

(In millions)    Three Months
Ended
December 31,		  
     2021     2020  

Operating activities

     

Net income

    $ 29     $ 39  

Depreciation

      93       88  

Amortization

      6       5  

Amortization of deferred financing charges

      1       2  

Write-off of deferred financing costs

      5       3  

Earnings of affiliates, net of dividends received

      1       2  

Stock compensation expense

      2       9  

Deferred income taxes

      (9 )      (7 ) 

Pension expense, net

      (1 )   

Gain on sale leaseback

      (66 )   

Change in working capital

      46       97  

Change in other noncurrent assets and liabilities

      (1 )      (22 ) 

Other, net

      33       (25 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

      139       191  
  

 

 

    

 

 

  

Investing activities

     

Purchases of property, plant and equipment

      (141 )      (145 ) 

Proceeds from sale of property, plant and equipment

      81       1  

Investments in affiliates

        (17 ) 

Purchases of marketable securities

      (7 )      (8 ) 

Proceeds from maturities of marketable securities

      8       9  

Proceeds from sale of equity affiliate

      29       21  

Settlements of undesignated derivatives

      (2 )   

Other, net

      (1 )      5  
  

 

 

    

 

 

  

Net cash used in investing activities

      (33 )      (134 ) 
  

 

 

    

 

 

  

Financing activities

     

Net change in short-term debt

      (46 )      11  

Proceeds from long-term debt

      355       (4 ) 

Repayment of long-term debt

      (351 )      (468 ) 

Deferred financing payments

      (5 )   

Dividends paid to common stockholders

      (14 )   

Distributions to noncontrolling interests

      (5 )      (1 ) 

Sale of interest to noncontrolling shareholder

        2  

Contributions from noncontrolling interests

      8       1  

Deconsolidation of non-wholly owned subsidiary

        (14 ) 

Payments to acquire noncontrolling interests

        (6 ) 

Other, net

      2       1  
  

 

 

    

 

 

  

Net cash used in financing activities

      (56 )      (478 ) 
  

 

 

    

 

 

  

Net increase (decrease) in cash, cash equivalents and restricted cash

      50       (421 ) 

Cash, cash equivalents and restricted cash – beginning of period

      239       966  

Effect of exchange rate changes on cash balances

      (2 )      22  
  

 

 

    

 

 

  

Cash, cash equivalents and restricted cash – end of period

    $ 287     $ 567  
  

 

 

    

 

 

  

DANA INCORPORATED

Consolidated Statement of Cash Flows

For the Year Ended December 31, 2021 and 2020

 

(In millions)    Year Ended
December 31,		  
     2021     2020  

Operating activities

     

Net income (loss)

    $ 200     $ (51 ) 

Depreciation

      365       345  

Amortization

      24       20  

Amortization of deferred financing charges

      6       8  

Redemption premium on debt

      21    

Write-off of deferred financing costs

      8       8  

Earnings of affiliates, net of dividends received

      (10 )      7  

Stock compensation expense

      17       14  

Deferred income taxes

      (1 )      (35 ) 

Pension expense, net

      (1 )      3  

Gain on sale leaseback

      (66 )   

Impairment of goodwill

        51  

Change in working capital

      (455 )      47  

Change in other noncurrent assets and liabilities

      (3 )      (20 ) 

Other, net

      53       (11 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

      158       386  
  

 

 

    

 

 

  

Investing activities

     

Purchases of property, plant and equipment

      (369 )      (326 ) 

Proceeds from sale of property, plant and equipment

      85       11  

Acquisition of businesses, net of cash acquired

      (18 )      (6 ) 

Investments in affiliates

      (23 )      (21 ) 

Proceeds from sale of subsidiary, net of cash disposed

      (4 )   

Purchases of marketable securities

      (32 )      (44 ) 

Proceeds from sales of marketable securities

      30       5  

Proceeds from maturities of marketable securities

      35       36  

Proceeds from sale of equity affiliate

      29       21  

Settlement of terminated fixed-to-fixed cross currency swap

      (22 )   

Settlements of undesignated derivatives

      (4 )      (5 ) 

Other, net

        2  
  

 

 

    

 

 

  

Net cash used in investing activities

      (293 )      (327 ) 
  

 

 

    

 

 

  

Financing activities

     

Net change in short-term debt

      (3 )      9  

Proceeds from long-term debt

      1,157       508  

Repayment of long-term debt

      (1,156 )      (480 ) 

Redemption premium on debt

      (21 )   

Deferred financing payments

      (18 )      (13 ) 

Dividends paid to common stockholders

      (58 )      (15 ) 

Distributions to noncontrolling interests

      (15 )      (11 ) 

Sale of interest to noncontrolling shareholder

        9  

Contributions from noncontrolling interests

      14       4  

Deconsolidation of non-wholly owned subsidiary

      (6 )      (14 ) 

Payments to acquire noncontrolling interests

        (7 ) 

Repurchases of common stock

      (23 )   

Other, net

      2       (2 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (127 )      (12 ) 
  

 

 

    

 

 

  

Net increase (decrease) in cash, cash equivalents and restricted cash

      (262 )      47  

Cash, cash equivalents and restricted cash - beginning of period

      567       518  

Effect of exchange rate changes on cash balances

      (18 )      2  
  

 

 

    

 

 

  

Cash, cash equivalents and restricted cash - end of period

    $ 287     $ 567  
  

 

 

    

 

 

  

DANA INCORPORATED

Reconciliation of Net Cash Provided By (Used In) Operating Activities to

Free Cash Flow and Adjusted Free Cash Flow (Unaudited)

 

(In millions)    Three Months Ended
December 31,		  
     2021     2020  

Net cash provided by (used in) operating activities

    $ 139     $ 191  

Purchase of property, plant and equipment

      (141 )      (145 ) 
  

 

 

    

 

 

  

Free cash flow

      (2 )      46  

Discretionary pension contributions

     
  

 

 

    

 

 

  

Adjusted free cash flow

    $ (2 )    $ 46  
  

 

 

    

 

 

  

 

(In millions)    Year Ended
December 31,		  
     2021     2020  

Net cash provided by operating activities

    $ 158     $ 386  

Purchase of property, plant and equipment

      (369 )      (326 ) 
  

 

 

    

 

 

  

Free cash flow

      (211 )      60  

Discretionary pension contributions

     
  

 

 

    

 

 

  

Adjusted free cash flow

    $ (211 )    $ 60  
  

 

 

    

 

 

  

DANA INCORPORATED

Segment Sales and Segment EBITDA (Unaudited)

For the Three Months Ended December 31, 2021 and 2020

 

(In millions)    Three Months Ended
December 31,		  
     2021     2020  

Sales

     

Light Vehicle

    $ 974     $ 980  

Commercial Vehicle

      400       333  

Off-Highway

      662       531  

Power Technologies

      237       264  
  

 

 

    

 

 

  

Total Sales

    $ 2,273     $ 2,108  
  

 

 

    

 

 

  

Segment EBITDA

     

Light Vehicle

    $ 33     $ 99  

Commercial Vehicle

      (5 )      8  

Off-Highway

      77       58  

Power Technologies

      12       31  
  

 

 

    

 

 

  

Total Segment EBITDA

      117       196  

Corporate expense and other items, net

      1       (4 ) 
  

 

 

    

 

 

  

Adjusted EBITDA

    $ 118     $ 192  
  

 

 

    

 

 

  

DANA INCORPORATED

Segment Sales and Segment EBITDA

For the Year Ended December 31, 2021 and 2020

 

(In millions)    Year Ended
December 31,		  
     2021     2020  

Sales

     

Light Vehicle

    $ 3,773     $ 3,038  

Commercial Vehicle

      1,532       1,185  

Off-Highway

      2,593       1,966  

Power Technologies

      1,047       917  
  

 

 

    

 

 

  

Total Sales

    $ 8,945     $ 7,106  
  

 

 

    

 

 

  

Segment EBITDA

     

Light Vehicle

    $ 274     $ 239  

Commercial Vehicle

      48       40  

Off-Highway

      353       230  

Power Technologies

      123       94  
  

 

 

    

 

 

  

Total Segment EBITDA

      798       603  

Corporate expense and other items, net

      (3 )      (10 ) 
  

 

 

    

 

 

  

Adjusted EBITDA

    $ 795     $ 593  
  

 

 

    

 

 

  

DANA INCORPORATED     

Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited)

For the Three Months Ended December 31, 2021 and 2020     

 

(In millions)    Three Months Ended
December 31,		  
     2021     2020  

Segment EBITDA

    $  117     $  196  

Corporate expense and other items, net

      1       (4 ) 
  

 

 

    

 

 

  

Adjusted EBITDA

      118       192  

Depreciation

      (93 )      (88 ) 

Amortization

      (6 )      (5 ) 

Non-service cost components of pension and OPEB costs

      (3 )      (2 ) 

Restructuring charges, net

      2       (13 ) 

Stock compensation expense

      (2 )      (9 ) 

Strategic transaction expenses

      (2 )      (5 ) 

Amounts attributable to previously divested/closed operations

      (1 )      (1 ) 

Gain on investment in Hyliion

        33  

Gain on sale leaseback

      66    

Other items

      1       (2 ) 
  

 

 

    

 

 

  

Earnings before interest and income taxes

      80       100  

Loss on extinguishment of debt

      (5 )      (3 ) 

Interest income

      3       2  

Interest expense

      32       39  
  

 

 

    

 

 

  

Earnings before income taxes

      46       60  

Income tax expense

      16       24  

Equity in earnings of affiliates

      (1 )      3  
  

 

 

    

 

 

  

Net income

    $ 29     $ 39  
  

 

 

    

 

 

  

DANA INCORPORATED     

Reconciliation of Segment and Adjusted EBITDA to Net Income (Loss)     

For the Year Ended December 31, 2021 and 2020     

 

(In millions)    Year Ended
December 31,		  
     2021     2020  

Segment EBITDA

    $ 798     $ 603  

Corporate expense and other items, net

      (3 )      (10 ) 
  

 

 

    

 

 

  

Adjusted EBITDA

      795       593  

Depreciation

      (365 )      (345 ) 

Amortization

      (24 )      (20 ) 

Non-service cost components of pension and OPEB costs

      (10 )      (10 ) 

Restructuring charges, net

        (34 ) 

Stock compensation expense

      (17 )      (14 ) 

Strategic transaction expenses

      (13 )      (20 ) 

Amounts attributable to previously divested/closed operations

      (2 )      (1 ) 

Gain (loss) on investment in Hyliion

      (20 )      33  

Loss on disposal group held for sale

      (7 )   

Loss on de-designation of fixed-to-fixed cross currency swaps

      (9 )   

Gain on sale leaseback

      66    

Impairment of goodwill

        (51 ) 

Other items

      1       (7 ) 
  

 

 

    

 

 

  

Earnings before interest and income taxes

      395       124  

Loss on extinguishment of debt

      (29 )      (8 ) 

Interest income

      9       9  

Interest expense

      131       138  
  

 

 

    

 

 

  

Earnings (loss) before income taxes

      244       (13 ) 

Income tax expense

      72       58  

Equity in earnings of affiliates

      28       20  
  

 

 

    

 

 

  

Net income (loss)

    $ 200     $ (51 ) 
  

 

 

    

 

 

  

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 December 31, 2021 and 2020     

 

(In millions, except per share amounts)             
     Three Months Ended
December 31,		  
     2021     2020  

Net income attributable to parent company

    $ 25     $ 40  

Items impacting income before income taxes:

     

Amortization

      5       4  

Restructuring charges, net

      (2 )      12  

Strategic transaction expenses

      5       6  

Gain on investment in Hyliion

        (33 ) 

Loss on extinguishment of debt

      5       3  

Gain on sale leaseback

      (66 )   

Other items

      (2 )   

Items impacting income taxes:

     

Net income tax expense on items above

      14       7  

Income tax expense (benefit) attributable to various discrete tax matters

      16       (4 ) 
  

 

 

    

 

 

  

Adjusted net income attributable to the parent

    $ —       $ 35  
  

 

 

    

 

 

  

Diluted shares - as reported

      145.8       145.7  

Adjusted diluted shares

      145.8       145.7  

Diluted adjusted EPS

    $ —       $ 0.24  

DANA INCORPORATED     

Reconciliation of Net Income (Loss) Attributable to the Parent Company to     

Adjusted Net Income Attributable to the Parent Company and     

Diluted Adjusted EPS (Unaudited)     

For the Year Ended December 31, 2021 and 2020     

 

(In millions, except per share amounts)             
     Year Ended
December 31,		  
     2021     2020  

Net income (loss) attributable to parent company

    $ 197     $ (31 ) 

Items impacting income before income taxes:

     

Amortization

      20       17  

Restructuring charges, net

        33  

Strategic transaction expenses

      13       21  

(Gain) loss on investment in Hyliion

      20       (33 ) 

Loss on disposal group held for sale

      7    

Loss on extinguishment of debt

      29       8  

Loss on de-designation of fixed-to-fixed cross currency swaps

      9    

Gain on sale leaseback

      (66 )   

Other items

      3    

Impairment of goodwill

        31  

Items impacting income taxes:

     

Net income tax benefit on items above

        (7 ) 

Income tax expense attributable to various discrete tax matters

      11       18  
  

 

 

    

 

 

  

Adjusted net income attributable to the parent

    $ 243     $ 57  
  

 

 

    

 

 

  

Diluted shares - as reported

      146.2       144.5  

Adjusted diluted shares

      146.2       145.1  

Diluted adjusted EPS

    $ 1.66     $ 0.39