Key Highlights
- Sales of $2.48 billion, an
increase of $217 million
- Net income attributable to Dana of $17
million
- Diluted EPS of $0.12
- Adjusted net income attributable to Dana of $23 million
- Adjusted EBITDA of $170
million
- Diluted adjusted EPS of $0.16
- Repurchased approximately 1.5 million shares of common stock
during the first quarter of 2022
MAUMEE,
Ohio, April 27, 2022 /PRNewswire/ -- Dana
Incorporated (NYSE: DAN) today announced financial results for the
first quarter of 2022.
"Dana saw continued sales growth in the first quarter despite
record inflation, rising commodity costs, and ongoing global
supply-chain disruptions," said James
Kamsickas, Dana chairman and CEO. "As the entire
mobility industry navigates soaring costs and geopolitical unrest
that is greatly impacting the energy and transportation sectors,
Dana continues to actively manage through these cost pressures as
well as navigate through erratic and short notice customer demand
changes. We continue to innovate and launch new products and
deliver on our $400 million of new
business sales backlog that is coming online this year."
First-quarter 2022 Financial
Results
Sales for the first quarter of 2022 totaled $2.48 billion, compared with $2.26 billion in the same period of 2021,
representing a $217 million
improvement driven by strong customer demand in our heavy-vehicle
markets and the recovery of commodity costs and inflation.
Adjusted EBITDA for the first quarter of 2022 was
$170 million, compared with $234 million for the same
period in 2021. Profit conversion on higher sales in the
first quarter of 2022 was tempered by increased input costs and
operational inefficiencies, primarily attributable to continued
global supply-chain disruptions.
Adjusted net income attributable to Dana and diluted adjusted
earnings per share were $23 million
and $0.16 for the first quarter of
2022, compared with $97 million and
$0.66 in the prior year.
Operating cash flow in the first quarter of 2022 was a use of
$121 million, compared with operating
cash flow of $27 million in the same
period of 2021.
Free cash flow was a use of $237
million, compared with a use of $26 million in the
first quarter of 2021. The higher free cash flow use in this
year's first quarter was driven by lower earnings, higher working
capital requirements, and elevated capital investment in support of
awarded new business.
"External factors continue to pressure our margins and free cash
flow as rapid inflation of energy, services, and labor are further
driving up costs," said Timothy
Kraus, Dana senior vice president and chief financial
officer. "While we see some improvement late this year, we
anticipate these factors will remain a profit headwind. We
have adjusted our financial targets to better reflect the
conditions across the mobility markets and continue to aggressively
work to mitigate the impact of these challenges and position
ourselves to capitalize on strong end-market demand and low vehicle
inventories once the global environment stabilizes."
2022 Revised Financial
Targets1
- Sales of $9.850 to $10.350 billion;
- Adjusted EBITDA of $770 to
$870 million, an implied adjusted
EBITDA margin of approximately
8.1 percent at the midpoint of the range;
- Diluted adjusted EPS of $1.05 to
$1.55;
- Operating cash flow of approximately 5.9 to 6.5 percent of
sales; and
- Free cash flow of approximately 1.9 to 2.3 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. Wednesday, April 27
Dana will discuss its first-quarter results in a conference call
at 9 a.m. EDT on Wednesday, April
27. 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. 2565879 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 April 27 by dialing 1-855-859-2056 (U.S. or
Canada) or 1-404-537-3406
(international) and entering conference I.D. 2565879. 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
This release refers to adjusted EBITDA, a non-GAAP financial
measure which we have defined as net income before interest, income
taxes, depreciation, amortization, equity grant expense,
restructuring expense, non-service cost components of pension and
other postretirement benefit costs, and other adjustments not
related to our core operations (gain/loss on debt extinguishment,
pension settlements, divestitures, impairment, etc.). Adjusted
EBITDA is a measure of our ability to maintain and continue to
invest in our operations and provide shareholder returns. We use
adjusted EBITDA in assessing the effectiveness of our business
strategies, evaluating and pricing potential acquisitions and as a
factor in making incentive compensation decisions. In addition to
its use by management, we also believe adjusted EBITDA is a measure
widely used by securities analysts, investors, and others to
evaluate financial performance of our company relative to other
Tier 1 automotive suppliers. Adjusted EBITDA should not be
considered a substitute for income before income taxes, net income
or other results reported in accordance with GAAP. Adjusted EBITDA
may not be comparable to similarly titled measures reported by
other companies.
Diluted adjusted EPS is a non-GAAP financial measure, which we
have defined as adjusted net income divided by adjusted diluted
shares. We define adjusted net income as net income (loss)
attributable to the parent company, excluding any nonrecurring
income tax items, restructuring charges, amortization expense, and
other adjustments not related to our core operations (as used in
adjusted EBITDA), net of any associated income tax effects.
We define adjusted diluted shares as diluted shares as determined
in accordance with GAAP based on adjusted net income. This
measure is considered useful for purposes of providing investors,
analysts, and other interested parties with an indicator of ongoing
financial performance that provides enhanced comparability to EPS
reported by other companies. Diluted adjusted EPS is neither
intended to represent nor be an alternative measure to diluted EPS
reported under GAAP.
Free cash flow is a non-GAAP financial measure which we have
defined as net cash provided by (used in) operating activities less
purchases of property, plant, and equipment. Adjusted free
cash flow is a non-GAAP financial measure which we have defined as
net cash provided by (used in) operating activities excluding
voluntary pension contributions less purchases of property, plant,
and equipment. We believe these measures are useful to
investors in evaluating the operational cash flow of the company
inclusive of the spending required to maintain the
operations. Free cash flow and adjusted free cash flow are
not intended to represent nor be an alternative to the measure of
net cash provided by (used in) operating activities reported under
GAAP. Free cash flow and adjusted free cash flow may not be
comparable to similarly titled measures reported by other
companies.
We have not provided reconciliations of preliminary and
projected adjusted EBITDA and diluted adjusted EPS to the most
comparable GAAP measures of net income and diluted EPS. Providing
net income and diluted EPS guidance is potentially misleading and
not practical given the difficulty of projecting event-driven
transactional and other non-core operating items that are included
in net income and diluted EPS, including restructuring actions,
asset impairments, and income tax valuation adjustments.
Reconciliations of these non-GAAP measures with the most comparable
GAAP measures for historical periods are indicative of the
reconciliations that will be prepared upon completion of the
periods covered by the non-GAAP guidance. Please reference the
"Non-GAAP Financial Information" accompanying our quarterly
earnings conference call presentations on our website at
www.dana.com/investors for our GAAP results and the reconciliations
of these measures, were used, to the comparable GAAP measures.
Forward-Looking Statements
Certain statements and projections contained in this news
release are, by their nature, forward-looking within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on our current expectations,
estimates, and projections about our industry and business,
management's beliefs, and certain assumptions made by us, all of
which are subject to change. Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "could," "potential," "continue,"
"ongoing," and similar expressions, and variations or negatives of
these words. These forward-looking statements are not
guarantees of future results and are subject to risks,
uncertainties, and assumptions that could cause our actual results
to differ materially and adversely from those expressed in any
forward-looking statement.
Dana's Annual Report on Form 10-K, subsequent Quarterly Reports
on Form 10-Q, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings discuss important risk
factors that could affect our business, results of operations and
financial condition. The forward-looking statements in this
news release speak only as of this date. Dana does not undertake
any obligation to revise or update publicly any forward-looking
statement for any reason.
About Dana Incorporated
Dana is a leader in the design and manufacture of highly
efficient propulsion and energy-management solutions 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 March 31, 2022 and 2021
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
|
March 31,
|
|
|
|
2022
|
|
2021
|
Net
sales
|
|
|
$ 2,480
|
|
$ 2,263
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
2,283
|
|
2,012
|
Selling, general and
administrative expenses
|
|
130
|
|
119
|
Amortization of
intangibles
|
|
4
|
|
4
|
Restructuring charges,
net
|
|
(1)
|
|
1
|
Other income
(expense), net
|
|
2
|
|
(19)
|
Earnings before
interest and income taxes
|
|
66
|
|
108
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
31
|
|
34
|
Earnings before
income taxes
|
|
37
|
|
76
|
Income tax
expense
|
|
18
|
|
22
|
Equity in
earnings of affiliates
|
|
1
|
|
14
|
Net
income
|
|
20
|
|
68
|
Less: Noncontrolling
interests net income
|
|
4
|
|
1
|
Less: Redeemable
noncontrolling interests net loss
|
|
(1)
|
|
(4)
|
Net income
attributable to the parent company
|
|
$
17
|
|
$
71
|
|
|
|
|
|
|
Net income per
share available to common stockholders
|
|
|
|
|
Basic
|
|
|
$
0.12
|
|
$
0.49
|
Diluted
|
|
|
$
0.12
|
|
$
0.48
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
144.2
|
|
144.9
|
Weighted-average
shares outstanding - Diluted
|
|
145.3
|
|
146.4
|
DANA
INCORPORATED
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
For the Three
Months Ended March 31, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
March 31,
|
|
|
|
|
|
2022
|
|
2021
|
Net
income
|
|
$
20
|
|
$
68
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
Currency translation
adjustments
|
|
39
|
|
(5)
|
|
Hedging gains and
losses
|
|
(4)
|
|
(17)
|
|
Defined benefit
plans
|
|
1
|
|
3
|
|
Other comprehensive
income (loss)
|
|
36
|
|
(19)
|
Total comprehensive
income
|
|
56
|
|
49
|
|
Less: Comprehensive
(income) loss attributable to noncontrolling interests
|
|
(4)
|
|
1
|
|
Less: Comprehensive
loss attributable to redeemable noncontrolling interests
|
|
1
|
|
3
|
Comprehensive income
attributable to the parent company
|
|
$
53
|
|
$
53
|
DANA
INCORPORATED
|
Consolidated
Balance Sheet (Unaudited)
|
As of March
31, 2022 and December 31, 2021
|
|
|
|
|
|
|
|
(In millions,
except share and per share amounts)
|
|
March 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
259
|
|
$
268
|
Marketable
securities
|
|
19
|
|
17
|
Accounts
receivable
|
|
|
|
|
|
Trade, less
allowance for doubtful accounts of $7 in 2022 and $7 in
2021
|
|
1,625
|
|
1,321
|
|
Other
|
|
250
|
|
220
|
Inventories
|
|
1,631
|
|
1,564
|
Other current
assets
|
|
210
|
|
196
|
|
|
Total current
assets
|
|
3,994
|
|
3,586
|
Goodwill
|
|
479
|
|
482
|
Intangibles
|
|
225
|
|
233
|
Deferred tax
assets
|
|
603
|
|
580
|
Other noncurrent
assets
|
|
128
|
|
131
|
Investments in
affiliates
|
|
175
|
|
174
|
Operating lease
assets
|
|
244
|
|
247
|
Property, plant
and equipment, net
|
|
2,205
|
|
2,199
|
|
|
Total
assets
|
|
$
8,053
|
|
$
7,632
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
301
|
|
$
23
|
Current portion
of long-term debt
|
|
8
|
|
8
|
Accounts
payable
|
|
1,717
|
|
1,571
|
Accrued payroll
and employee benefits
|
|
207
|
|
184
|
Taxes on
income
|
|
55
|
|
41
|
Current portion
of operating lease liabilities
|
|
39
|
|
43
|
Other accrued
liabilities
|
|
293
|
|
304
|
|
|
Total current
liabilities
|
|
2,620
|
|
2,174
|
Long-term debt,
less debt issuance costs of $25 in 2022 and $26 in
2021
|
|
2,376
|
|
2,386
|
Noncurrent
operating lease liabilities
|
|
211
|
|
209
|
Pension and
postretirement obligations
|
|
390
|
|
398
|
Other noncurrent
liabilities
|
|
269
|
|
292
|
|
|
Total
liabilities
|
|
5,866
|
|
5,459
|
Commitments and contingencies
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
200
|
|
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,
|
|
|
|
|
|
143,334,271 and
144,238,660 shares outstanding
|
|
2
|
|
2
|
|
Additional
paid-in capital
|
|
2,431
|
|
2,427
|
|
Retained
earnings
|
|
664
|
|
662
|
|
Treasury stock,
at cost (13,466,902 and 11,661,591 shares)
|
|
(216)
|
|
(184)
|
|
Accumulated other
comprehensive loss
|
|
(949)
|
|
(985)
|
|
|
Total parent
company stockholders' equity
|
|
1,932
|
|
1,922
|
Noncontrolling
interests
|
|
55
|
|
53
|
|
|
Total
equity
|
|
1,987
|
|
1,975
|
|
|
Total
liabilities, redeemable noncontrolling interests and
equity
|
|
$
8,053
|
|
$
7,632
|
DANA
INCORPORATED
|
Consolidated
Statement of Cash Flows (Unaudited)
|
For the Three
Months Ended March 31, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
March 31,
|
|
|
|
2022
|
|
2021
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
20
|
|
$
68
|
Depreciation
|
|
91
|
|
88
|
Amortization
|
|
6
|
|
7
|
Amortization of
deferred financing charges
|
|
1
|
|
2
|
Earnings of
affiliates, net of dividends received
|
|
(1)
|
|
(14)
|
Stock
compensation expense
|
|
4
|
|
5
|
Deferred income
taxes
|
|
(25)
|
|
(6)
|
Pension expense,
net
|
|
(1)
|
|
|
Change in working
capital
|
|
(211)
|
|
(133)
|
Other,
net
|
|
(5)
|
|
10
|
Net cash
provided by (used in) operating activities
|
|
(121)
|
|
27
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(116)
|
|
(53)
|
Acquisition of
businesses, net of cash acquired
|
|
|
|
(17)
|
Purchases of
marketable securities
|
|
(5)
|
|
(11)
|
Proceeds from
sales and maturities of marketable securities
|
|
2
|
|
6
|
Other,
net
|
|
2
|
|
2
|
Net cash used
in investing activities
|
|
(117)
|
|
(73)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
278
|
|
(1)
|
Proceeds from
long-term debt
|
|
2
|
|
2
|
Repayment of
long-term debt
|
|
(3)
|
|
(1)
|
Deferred
financing payments
|
|
|
|
(2)
|
Dividends paid to
common stockholders
|
|
(14)
|
|
(14)
|
Distributions to
noncontrolling interests
|
|
(1)
|
|
|
Contributions
from redeemable noncontrolling interests
|
|
2
|
|
1
|
Payments to
acquire noncontrolling interests
|
|
(3)
|
|
|
Repurchases of
common stock
|
|
(25)
|
|
|
Other,
net
|
|
(7)
|
|
(1)
|
Net cash
provided by (used in) financing activities
|
|
229
|
|
(16)
|
|
|
|
|
|
|
Net decrease
in cash, cash equivalents and restricted cash
|
|
(9)
|
|
(62)
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
287
|
|
567
|
Effect of
exchange rate changes on cash balances
|
|
2
|
|
(12)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
280
|
|
$
493
|
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)
|
|
March 31,
|
|
|
2022
|
|
2021
|
Net cash
provided by (used in) operating activities
|
|
$
(121)
|
|
$
27
|
Purchase of
property, plant and equipment
|
|
(116)
|
|
(53)
|
Free cash
flow
|
|
(237)
|
|
(26)
|
Discretionary
pension contributions
|
|
|
|
|
|
Adjusted free
cash flow
|
|
$
(237)
|
|
$
(26)
|
DANA
INCORPORATED
|
Segment Sales
and Segment EBITDA (Unaudited)
|
For the Three
Months Ended March 31, 2022 and 2021
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
March 31,
|
|
|
2022
|
|
2021
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
985
|
|
$
991
|
Commercial
Vehicle
|
|
463
|
|
349
|
Off-Highway
|
|
744
|
|
635
|
Power
Technologies
|
|
288
|
|
288
|
Total
Sales
|
|
$
2,480
|
|
$
2,263
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
31
|
|
$
100
|
Commercial
Vehicle
|
|
10
|
|
15
|
Off-Highway
|
|
100
|
|
79
|
Power
Technologies
|
|
29
|
|
41
|
Total Segment
EBITDA
|
|
170
|
|
235
|
Corporate expense
and other items, net
|
|
|
|
(1)
|
Adjusted
EBITDA
|
|
$
170
|
|
$
234
|
DANA
INCORPORATED
|
Reconciliation
of Segment and Adjusted EBITDA to Net Income
(Unaudited)
|
For the Three
Months Ended March 31, 2022 and 2021
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
March 31,
|
|
|
2022
|
|
2021
|
Segment
EBITDA
|
|
$
170
|
|
$
235
|
Corporate expense and
other items, net
|
|
|
|
(1)
|
Adjusted
EBITDA
|
|
170
|
|
234
|
Depreciation
|
|
(91)
|
|
(88)
|
Amortization
|
|
(6)
|
|
(7)
|
Non-service cost
components of pension and OPEB costs
|
|
|
|
(2)
|
Restructuring charges,
net
|
|
1
|
|
(1)
|
Stock compensation
expense
|
|
(4)
|
|
(5)
|
Strategic transaction
expenses
|
|
(4)
|
|
(3)
|
Loss on investment in
Hyliion
|
|
|
|
(17)
|
Loss on disposal group
held for sale
|
|
|
|
(7)
|
Other items
|
|
|
|
4
|
Earnings before
interest and income taxes
|
|
66
|
|
108
|
Interest
income
|
|
2
|
|
2
|
Interest
expense
|
|
31
|
|
34
|
Earnings before
income taxes
|
|
37
|
|
76
|
Income tax
expense
|
|
18
|
|
22
|
Equity in
earnings of affiliates
|
|
1
|
|
14
|
Net
income
|
|
$
20
|
|
$
68
|
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 March 31, 2022 and 2021
|
|
(In millions,
except per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2022
|
|
2021
|
Net income
attributable to parent company
|
|
$
17
|
|
$
71
|
Items impacting
income before income taxes:
|
|
|
|
|
|
Amortization
|
|
5
|
|
5
|
|
Restructuring
charges, net
|
|
(1)
|
|
1
|
|
Strategic
transaction expenses
|
|
2
|
|
3
|
|
Loss on
investment in Hyliion
|
|
|
|
17
|
|
Loss on disposal
group held for sale
|
|
|
|
5
|
|
Other
items
|
|
2
|
|
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(2)
|
|
(6)
|
|
Income tax
expense attributable to various discrete tax
matters
|
|
|
|
1
|
Adjusted net
income attributable to the parent
|
|
$
23
|
|
$
97
|
|
|
|
|
|
|
Diluted shares -
as reported
|
|
145.3
|
|
146.4
|
Adjusted diluted
shares
|
|
145.3
|
|
146.4
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.16
|
|
$
0.66
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/dana-incorporated-reports-2022-first-quarter-financial-results-301533859.html
SOURCE Dana Incorporated