DANA INCORPORATED
Quarterly Financial Information and Reconciliations of Non-GAAP Financial Measures
Non-GAAP Financial Measures
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.
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. We believe free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Free cash flow is 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 may not be comparable to similarly titled measures reported by other companies.
The accompanying financial information provides reconciliations of adjusted EBITDA and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA outlook to the most comparable GAAP measure of net income (loss). Providing net income (loss) 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 (loss), including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliation of adjusted EBITDA to net income (loss) for the historical periods presented are indicative of the reconciliation that will be prepared upon completion of the periods covered by the non-GAAP guidance.
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DANA INCORPORATED
Consolidated Statement of Operations (Unaudited)
For the Three Months Ended March 31, 2024 and 2023
Three Months Ended | |||||
(In millions, except per share amounts) | March 31, | ||||
2024 | 2023 | ||||
Net sales | $ | 2,735 | $ | 2,644 | |
Costs and expenses | |||||
Cost of sales | 2,491 | 2,415 | |||
Selling, general and administrative expenses | 139 | 140 | |||
Amortization of intangibles | 3 | 3 | |||
Restructuring charges, net | 5 | 1 | |||
Loss on disposal group held for sale | (29) | ||||
Other income (expense), net | 2 | 5 | |||
Earnings before interest and income taxes | 70 | 90 | |||
Interest income | 4 | 4 | |||
Interest expense | 39 | 34 | |||
Earnings before income taxes | 35 | 60 | |||
Income tax expense | 37 | 30 | |||
Equity in earnings of affiliates | 2 | 1 | |||
Net income | - | 31 | |||
Less: Noncontrolling interests net income | 5 | 4 | |||
Less: Redeemable noncontrolling interests net loss | (8) | (1) | |||
Net income attributable to the parent company | $ | 3 | $ | 28 | |
Net income per share available to common stockholders | |||||
Basic | $ | 0.02 | $ | 0.19 | |
Diluted | $ | 0.02 | $ | 0.19 | |
Weighted-average shares outstanding - Basic | 144.8 | 143.9 | |||
Weighted-average shares outstanding - Diluted | 144.8 | 144.3 |
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DANA INCORPORATED
Consolidated Statement of Comprehensive Income (Unaudited)
For the Three Months Ended March 31, 2024 and 2023
Three Months Ended | |||||
(In millions) | March 31, | ||||
2024 | 2023 | ||||
Net income | $ | - | $ | 31 | |
Other comprehensive income (loss), net of tax: | |||||
Currency translation adjustments | (20) | 25 | |||
Hedging gains and losses | (2) | 15 | |||
Defined benefit plans | 1 | 1 | |||
Other comprehensive income (loss) | (21) | 41 | |||
Total comprehensive income (loss) | (21) | 72 | |||
Less: Comprehensive income attributable to noncontrolling interests | (4) | (4) | |||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | 11 | ||||
Comprehensive income (loss) attributable to the parent company | $ | (14) | $ | 68 | |
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DANA INCORPORATED
Consolidated Balance Sheet (Unaudited)
As of March 31, 2024 and December 31, 2023
(In millions, except share and per share amounts) | March 31, | December 31, | |||
2024 | 2023 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 351 | $ | 529 | |
Accounts receivable | |||||
Trade, less allowance for doubtful accounts of $14 in 2024 and $16 in 2023 | 1,526 | 1,371 | |||
Other | 251 | 280 | |||
Inventories | 1,625 | 1,676 | |||
Other current assets | 287 | 247 | |||
Current assets of disposal group held for sale | 62 | ||||
Total current assets | 4,102 | 4,103 | |||
Goodwill | 257 | 263 | |||
Intangibles | 169 | 182 | |||
Deferred tax assets | 507 | 516 | |||
Other noncurrent assets | 158 | 140 | |||
Investments in affiliates | 123 | 123 | |||
Operating lease assets | 315 | 327 | |||
Property, plant and equipment, net | 2,226 | 2,311 | |||
Total assets | $ | 7,857 | $ | 7,965 | |
Liabilities, redeemable noncontrolling interests and equity | |||||
Current liabilities | |||||
Short-term debt | $ | 39 | $ | 22 | |
Current portion of long-term debt | 8 | 35 | |||
Accounts payable | 1,697 | 1,756 | |||
Accrued payroll and employee benefits | 316 | 288 | |||
Taxes on income | 90 | 86 | |||
Current portion of operating lease liabilities | 41 | 42 | |||
Other accrued liabilities | 352 | 373 | |||
Current liabilities of disposal group held for sale | 22 | ||||
Total current liabilities | 2,565 | 2,602 | |||
Long-term debt, less debt issuance costs of $23 in 2024 and $24 in 2023 | 2,580 | 2,598 | |||
Noncurrent operating lease liabilities | 271 | 284 | |||
Pension and postretirement obligations | 318 | 334 | |||
Other noncurrent liabilities | 318 | 319 | |||
Noncurrent liabilities of disposal group held for sale | 4 | ||||
Total liabilities | 6,056 | 6,137 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 197 | 191 | |||
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, | |||||
144,954,645 and 144,386,484 shares outstanding | 2 | 2 | |||
Additional paid-in capital | 2,260 | 2,255 | |||
Retained earnings | 297 | 317 | |||
Treasury stock, at cost (821,207 and 474,981 shares) | (13) | (9) | |||
Accumulated other comprehensive loss | (1,007) | (990) | |||
Total parent company stockholders' equity | 1,539 | 1,575 | |||
Noncontrolling interests | 65 | 62 | |||
Total equity | 1,604 | 1,637 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ | 7,857 | $ | 7,965 | |
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DANA INCORPORATED
Consolidated Statement of Cash Flows (Unaudited)
For the Three Months Ended March 31, 2024 and 2023
Three Months Ended | |||||
(In millions) | March 31, | ||||
2024 | 2023 | ||||
Operating activities | |||||
Net income | $ | - | $ | 31 | |
Depreciation | 101 | 92 | |||
Amortization | 5 | 5 | |||
Amortization of deferred financing charges | 1 | 1 | |||
Earnings of affiliates, net of dividends received | (2) | (1) | |||
Stock compensation expense | 6 | 6 | |||
Deferred income taxes | 2 | (8) | |||
Pension expense, net | (7) | ||||
Change in working capital | (251) | (304) | |||
Loss on disposal group held for sale | 29 | ||||
Other, net | 14 | 8 | |||
Net cash used in operating activities | (102) | (170) | |||
Investing activities | |||||
Purchases of property, plant and equipment | (70) | (120) | |||
Proceeds from sale of property, plant and equipment | 4 | 2 | |||
Settlements of undesignated derivatives | (1) | ||||
Other, net | 4 | ||||
Net cash used in investing activities | (63) | (118) | |||
Financing activities | |||||
Net change in short-term debt | 17 | 269 | |||
Repayment of long-term debt | (27) | (2) | |||
Deferred financing payments | (2) | ||||
Dividends paid to common stockholders | (15) | (15) | |||
Distributions to noncontrolling interests | (3) | (1) | |||
Contributions from redeemable noncontrolling interests | 9 | 10 | |||
Deferred purchase price proceeds | 11 | ||||
Other, net | 9 | (4) | |||
Net cash provided by financing activities | 1 | 255 | |||
Net decrease in cash, cash equivalents and restricted cash | (164) | (33) | |||
Cash, cash equivalents and restricted cash − beginning of period | 563 | 442 | |||
Effect of exchange rate changes on cash balances | (12) | 10 | |||
Cash, cash equivalents and restricted cash − end of period | $ | 387 | $ | 419 | |
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DANA INCORPORATED
Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended | |||||
(In millions) | March 31, | ||||
2024 | 2023 | ||||
Net cash used in operating activities | $ | (102) | $ | (170) | |
Purchase of property, plant and equipment | (70) | (120) | |||
Free cash flow | $ | (172) | $ | (290) | |
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DANA INCORPORATED
Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended March 31, 2024 and 2023
Three Months Ended | |||||
(In millions) | March 31, | ||||
2024 | 2023 | ||||
Sales | |||||
Light Vehicle | $ | 1,098 | $ | 962 | |
Commercial Vehicle | 524 | 522 | |||
Off-Highway | 781 | 842 | |||
Power Technologies | 332 | 318 | |||
Total Sales | $ | 2,735 | $ | 2,644 | |
Segment EBITDA | |||||
Light Vehicle | $ | 67 | $ | 49 | |
Commercial Vehicle | 17 | 17 | |||
Off-Highway | 115 | 118 | |||
Power Technologies | 27 | 23 | |||
Total Segment EBITDA | 226 | 207 | |||
Corporate expense and other items, net | (3) | (3) | |||
Adjusted EBITDA | $ | 223 | $ | 204 | |
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DANA INCORPORATED
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) For the Three Months Ended March 31, 2024 and 2023
Three Months Ended | |||||
(In millions) | March 31, | ||||
2024 | 2023 | ||||
Segment EBITDA | $ | 226 | $ | 207 | |
Corporate expense and other items, net | (3) | (3) | |||
Adjusted EBITDA | 223 | 204 | |||
Depreciation | (101) | (92) | |||
Amortization | (5) | (5) | |||
Non-service cost components of pension and OPEB costs | (4) | (3) | |||
Restructuring charges, net | (5) | (1) | |||
Stock compensation expense | (6) | (6) | |||
Strategic transaction expenses | (2) | (1) | |||
Distressed supplier costs | (8) | ||||
Loss on disposal group held for sale | (29) | ||||
Other items | (1) | 2 | |||
Earnings before interest and income taxes | 70 | 90 | |||
Interest income | 4 | 4 | |||
Interest expense | 39 | 34 | |||
Earnings before income taxes | 35 | 60 | |||
Income tax expense | 37 | 30 | |||
Equity in earnings of affiliates | 2 | 1 | |||
Net income | $ | - | $ | 31 | |
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DANA Incorporated published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 11:03:40 UTC.