Dana Holding Corporation Reports Strong Results for Full-Year 2013

- Sales of $6.8 billion

- Net income attributable to Dana of $244 million

- Adjusted EBITDA of $745 million provides record margin of 11.0 percent, fifth consecutive year of margin expansion

- Record free cash flow of $368 million driven by strong operating results and focused business investment

- Significant execution under $1 billion share repurchase program; since inception, $829 million of cash returned to shareholders through share repurchases and redemptions

- Dana technologies continue to be prominently featured on award-winning vehicles, engines

Feb 20, 2014, 07:00 ET from Dana Holding Corporation

MAUMEE, Ohio, Feb. 20, 2014 /PRNewswire/ -- Dana Holding Corporation (NYSE: DAN) today announced its fourth-quarter and full-year results for 2013.

Full-Year 2013 Financial Results Sales for the year totaled $6.8 billion, compared with $7.2 billion for 2012. Currency, scheduled light-vehicle program roll-offs, and a divestiture lowered sales by $377 million.  Dana benefited from stronger global light-vehicle production demand in 2013 which increased sales by about $80 million.  This benefit was offset by softer demand principally in the North America heavy-truck market and global off-highway markets which lowered sales by about $220 million compared with a year ago. 

Dana posted net income of $244 million for 2013, compared with $300 million in the previous year that included a nonrecurring tax benefit of $54 million for the release of tax valuation allowances in certain foreign jurisdictions.  Adjusting for this nonrecurring benefit, Dana's 2013 net income was slightly lower than a year ago.  Lower restructuring charges, higher earnings from equity affiliates, and other income was offset by higher interest expense attributable to the company's successful 2013 capital market activities and a higher effective tax rate.

For financial reporting purposes, net income attributable to common stockholders includes adjustments related to preferred stock dividends and redemptions.  During the third quarter of 2013, Dana redeemed all of its outstanding Series A preferred stock and the difference between the amount paid and the historic carrying value of this security was $232 million, which was included as an adjustment to net income attributable to common stockholders.

Diluted adjusted earnings per share, which excludes restructuring-related charges, amortization expense, and other nonrecurring items, totaled $1.77 for the full-year 2013. This includes the benefit from a reduced diluted share count as a result of the company's share repurchase and redemption activities during the course of 2013. Diluted adjusted earnings per share for 2012 totaled $1.75.

Dana reported adjusted EBITDA of $745 million for the full-year 2013, compared with $781 a year ago.  The company's continued focus and execution of cost-reduction and recovery actions in light of unfavorable currency movements and lower demand in a number of served end-markets increased adjusted EBITDA margin to 11.0 percent in 2013, compared with 10.8 percent in 2012, marking the fifth consecutive year of margin expansion. 

Dana generated record free cash flow of $368 million for the full-year 2013.  Strong operating earnings and working capital execution offset increased capital investment and higher cash taxes. Compared with a year ago, and adjusting for a voluntary cash contribution to the company's U.S. pension plans of $150 million in 2012, free cash flow was higher by $43 million.

The company ended the year with cash and marketable securities totaling approximately $1.37 billion.  During 2013, Dana increased its existing share repurchase program from $250 million to $1 billion and accessed the credit markets on favorable terms to raise additional unsecured debt of $750 million.  With the second-half 2013 redemption of all outstanding Series A convertible preferred stock, completion of a $200 million accelerated common share-repurchase program, and other open-market common share repurchases, as of the end of 2013, Dana has returned $829 million to shareholders under its share-repurchase program.

Fourth-Quarter 2013 Financial Results Sales for the fourth-quarter of 2013 totaled $1.62 billion, compared with $1.61 billion for the same period a year ago.  While currency movements lowered sales by $45 million when compared with a year ago, stronger demand across light- and commercial-vehicle end markets and recovery actions increased sales by about $60 million

Net income for the fourth quarter of 2013 was $42 million, compared with $88 million in 2012, which included the aforementioned $54 million benefit from the release of certain tax valuation allowances.  Adjusted diluted earnings per share in the fourth quarter of 2013 rose to $0.49, compared with $0.38 for the same period a year ago, reflecting both improved adjusted net income as defined and a reduced diluted share count as a result of the company's share redemption and repurchase activities during the course of 2013.

Adjusted EBITDA for the fourth quarter of 2013 was $174 million, $20 million higher than the previous year.  Adjusted EBITDA margin of 10.7 percent in the fourth quarter of 2013 increased 110 basis points when compared with the same period a year ago, reflecting the favorable impact of higher volume and net performance from cost reductions and recovery actions.  Free cash flow for the fourth quarter totaled $198 million, $31 million higher than 2012.  Improved earnings, positive working capital performance, and lower pension and restructuring cash outlays more than offset increased capital spending in support of future business growth.

"Dana performed very well in 2013 in nearly every region of the world," said company President and Chief Executive Officer Roger J. Wood.  "Our adjusted EBITDA margin performance in 2013 set another record and provided the fifth straight year of margin expansion.  Dana also posted record free cash flow in the year and, coupled with strong capital market activities, we have returned $829 million to our shareholders in the form of share redemptions and repurchases since the inception of our share repurchase program in late 2012.

"As we move into 2014 and beyond, we continue to remain focused on launching our new technologies, improving the operating and financial performance of Dana, and capitalizing on our long-term growth momentum as we further innovate and differentiate our products to meet the needs of our customers."

2014 Financial Targets For 2014, the company expects primarily stable end-market demand across most regions, with continued strength in full-frame light trucks and improving North American commercial-vehicle demand.  Worldwide mining and construction-equipment markets are expected to remain sluggish during the course of this year, while currency and economic challenges in emerging markets such as South America and India are expected to continue.

Financial targets for 2014 include:

  • Sales of approximately $6.8 to $6.9 billion;
  • Adjusted EBITDA of approximately $760 to $770 million;
  • Adjusted EBITDA as a percent of sales of approximately 11.2 percent;
  • Diluted adjusted EPS of approximately $1.82 to $1.86 (excluding the impact of share repurchases after Dec. 31, 2013);
  • Capital spending of approximately $210 to $230 million; and
  • Free cash flow of $275 to $295 million.

Recognition of Dana Innovation and Technology Dana products continue to power award-winning vehicles, including the 2014 Motor Trend Car and Truck of the Year, North American Car and Truck of the Year, Green Car of the Year, Commercial Trucks of the Year, and Tractor of the Year, as well as six of this year's Ward's 10 Best Engines.

Dana technology is featured on the Motor Trend Car of the Year, the Cadillac CTS.  On the HFV6 3.0L and HFV6 3.6L LY7 engines, the technology includes Dana's Victor Reinz® cylinder-head gaskets, exhaust and secondary gaskets, intake manifold gasket, heat shields, and valve seals, while the Gen IV 6.0L - LSA engine includes Dana's heat shields and exhaust manifold gaskets.  These technologies reduce oil consumption, improve noise, vibration, and harshness, and help protect engine components from extreme temperatures, while ensuring the highest durability.

This year's Motor Trend Truck of the Year, the 2014 Ram 1500 EcoDiesel, features a Spicer® rear driveshaft, Victor Reinz exhaust gaskets, and Long® active warm-up technology, which significantly lowers fuel consumption and emissions by enabling engines to quickly reach optimum operating temperatures.

The Chevrolet Corvette Stingray, the 2014 North American Car of the Year, includes a variety of Dana technologies, such as Victor Reinz exhaust gaskets, secondary gaskets, and heat shields that suppress noise and protect from extreme heat with improved durability.  Additionally, the vehicle includes Dana's Long brand transmission oil cooler, differential oil cooler, and engine oil cooler, which help to effectively manage heat to ensure optimum operating conditions and long-term durability.

Dana also is featured on the 2014 North American Truck of the Year, the Chevrolet Silverado.  The newly redesigned truck includes Dana's Victor Reinz heat shields, which provide a three-layer construction to protect against extreme temperatures and suppress noise.  On the heavy-duty versions of the Silverado, Dana's Long transmission oil cooler helps to manage heat and ensures long-term durability for the pickup.

In addition, Dana's Victor Reinz cylinder-head cover module is featured on the Green Car Journal Green Car of the Year, the 2014 Honda Accord.

Spicer axles and driveshafts are also available in OEM data books for the 2014 American Truck Dealer's Commercial Trucks of the Year, the medium-duty International TerraStar 4X4 and the heavy-duty International ProStar with Cummins ISX15.

Finally, a Spicer front drive axle is integrated into the CLAAS AXION 800, named the 2014 Tractor of the Year and 2014 Machine of the Year at Automechanica.

Dana also supplies many technologies to the 2014 Ward's 10 Best Engines, including:

  • Audi 3.0L TFSI Supercharged DOHC V-6 – Features Victor Reinz cylinder-head gasket and secondary gaskets that deliver improved reliability and durability while reducing oil consumption and bore distortion.
  • Ram 3.0L Turbodiesel DOHC V-6 – Equipped with Victor Reinz exhaust gasket and Long active warm up that reduce emissions and fuel consumption by enabling engines to quickly reach optimum operating temperatures.
  • Fiat 83-kW Electric Motor – Includes Dana's Long battery chiller that helps minimize temperature variation and improve battery operation. 
  • Chevy 6.2L OHV V-8 – Uses Long engine oil cooler, Victor Reinz secondary gasket and exhaust gasket, and heat shields to lower and control engine oil operating temperature and protect the engine from extreme heat.
  • Honda 3.5L SOHC V-6 – Features Victor Reinz cylinder-head cover modules providing optimal design performance and improved durability.
  • Volkswagen 1.8L Turbocharged DOHC I-4 – Utilizes Long engine oil coolers which lower and control engine oil operating temperature.

Dana to Host Conference Call at 10 a.m. Today Dana will discuss its full-year and fourth-quarter results in a conference call at 10 a.m. EST today.  Participants may listen to the conference call via audio streaming online or telephone.  Slide viewing is available via Dana's investor website: www.dana.com/investorsUnited States and Canadian locations should dial 1-888-311-4590 and international locations should call 1-706-758-0054, and enter 42803164.  Please ask for the "Dana Holding Corporate Financial Webcast and Conference Call."  Phone registration will be available starting at 9:30 a.m. 

An audio recording of the webcast will be available after 5 p.m. today; dial 1-855-859-2056 (U.S. or Canada) or 1-404-537-3406 (international) and enter 42803164.  A webcast replay will be available after 5 p.m. today, 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 earnings from continuing and discontinued operations before interest, taxes, depreciation, amortization, non-cash equity grant expense, restructuring expense and other nonrecurring items (gain/loss on debt extinguishment or divestitures, impairment, etc.). Adjusted EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Adjusted EBITDA should not be considered a substitute for income (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.

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 and impairment expense, amortization expense and other nonrecurring items (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 cash provided by (used in) operating activities, less purchases of property, plant and equipment.  We believe this measure 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 neither 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 may not be comparable to similarly titled measures reported by other companies.

The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP.

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, where 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," 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 Holding Corporation Dana is a global leader in the supply of highly engineered driveline, sealing, and thermal-management technologies that improve the efficiency and performance of vehicles with both conventional and alternative-energy powertrains.  Serving three primary markets – passenger vehicle, commercial truck, and off-highway equipment – Dana provides the world's original-equipment manufacturers and the aftermarket with local product and service support through a network of nearly 100 engineering, manufacturing, and distribution facilities.  Founded in 1904 and based in Maumee, Ohio, the company employs 23,000 people in 26 countries on six continents.  In 2013, Dana generated sales of $6.8 billion.  For more information, please visit dana.com.

 

 DANA HOLDING CORPORATION 

 Consolidated Statement of Operations (Unaudited) 

 For the Three Months Ended December 31, 2013 and 2012 

Three Months Ended

 (In millions except per share amounts) 

December 31, 

2013

2012

 Net sales 

$      1,624

$      1,609

 Costs and expenses 

     Cost of sales 

1,412

1,412

     Selling, general and administrative expenses 

105

102

     Amortization of intangibles 

19

18

     Restructuring charges, net 

10

17

     Other income, net 

17

10

 Income from continuing operations before 

     interest expense and income taxes 

95

70

 Interest expense 

30

21

 Income from continuing operations before 

     income taxes 

65

49

 Income tax expense (benefit) 

23

(46)

 Equity in earnings of affiliates 

2

(2)

 Income from continuing operations 

44

93

 Loss from discontinued operations 

(1)

 Net income 

43

93

     Less: Noncontrolling interests net income 

1

5

 Net income attributable to the parent company 

42

88

 Preferred stock dividend requirements 

4

8

 Net income available to common stockholders 

$            38

$            80

 Net income per share available to parent 

     company common stockholders: 

    Basic: 

         Income from continuing operations 

$        0.27

$        0.54

         Loss from discontinued operations 

$       (0.01)

$             -

         Net income 

$        0.26

$        0.54

    Diluted: 

         Income from continuing operations 

$        0.24

$        0.41

         Loss from discontinued operations 

$       (0.01)

$             -

         Net income 

$        0.23

$        0.41

 Weighted-average common shares outstanding 

    Basic 

146.0

148.5

    Diluted 

181.2

214.8

Dividends declared per common share

$        0.05

$        0.05

 

 DANA HOLDING CORPORATION 

 Consolidated Statement of Operations 

 For the Year Ended December 31, 2013 and 2012 

Year Ended

 (In millions except per share amounts) 

December 31, 

2013

2012

 Net sales 

$      6,769

$      7,224

 Costs and expenses 

     Cost of sales 

5,849

6,250

     Selling, general and administrative expenses 

410

424

     Amortization of intangibles 

74

74

     Restructuring charges, net 

24

47

     Other income, net 

55

19

 Income from continuing operations before 

     interest expense and income taxes 

467

448

 Interest expense 

99

84

 Income from continuing operations before 

     income taxes 

368

364

 Income tax expense 

119

51

 Equity in earnings of affiliates 

12

2

 Income from continuing operations 

261

315

 Loss from discontinued operations 

(1)

 Net income 

260

315

     Less: Noncontrolling interests net income 

16

15

 Net income attributable to the parent company 

244

300

 Preferred stock dividend requirements 

25

31

 Preferred stock redemption premium 

232

 Net income (loss) available to common stockholders 

$          (13)

$         269

 Net income (loss) per share available to parent 

     company common stockholders: 

    Basic: 

         Income (loss) from continuing operations 

$       (0.08)

$        1.82

         Loss from discontinued operations 

$       (0.01)

$             -

         Net income (loss) 

$       (0.09)

$        1.82

    Diluted: 

         Income (loss) from continuing operations 

$       (0.08)

$        1.40

         Loss from discontinued operations 

$       (0.01)

$             -

         Net income (loss) 

$       (0.09)

$        1.40

 Weighted-average common shares outstanding 

    Basic 

146.4

148.0

    Diluted 

146.4

214.7

Dividends declared per common share

$        0.20

$        0.20

 

 DANA HOLDING CORPORATION 

 Consolidated Statement of Comprehensive Income (Unaudited) 

 For the Three Months Ended December 31, 2013 and 2012 

Three Months Ended

 (In millions) 

December 31, 

2013

2012

 Net income 

$            43

$            93

 Less: Noncontrolling interests net income 

1

5

 Net income attributable to the parent company 

42

88

 Other comprehensive income (loss) attributable to  

   the parent company, net of tax: 

Currency translation adjustments

(6)

4

Hedging gains and losses

1

Investment and other gains and losses

(3)

1

Defined benefit plans

102

(156)

Other comprehensive income (loss) attributable to the

parent company

93

(150)

 Other comprehensive income (loss) attributable to 

   noncontrolling interests, net of tax: 

Currency translation adjustments

(1)

(1)

Hedging gains and losses

1

Defined benefit plans

(1)

(1)

Other comprehensive loss attributable to 

noncontrolling interests

(1)

(2)

Total comprehensive income (loss) attributable

to the parent company

135

(62)

Total comprehensive income attributable

to noncontrolling interests

-

3

Total comprehensive income (loss)

$         135

$          (59)

 

 DANA HOLDING CORPORATION 

 Consolidated Statement of Comprehensive Income 

 For the Year Ended December 31, 2013 and 2012 

Year Ended

 (In millions) 

December 31, 

2013

2012

 Net income 

$         260

$         315

 Less: Noncontrolling interests net income 

16

15

 Net income attributable to the parent company 

244

300

 Other comprehensive income (loss) attributable to  

   the parent company, net of tax: 

Currency translation adjustments

(40)

(6)

Hedging gains and losses

(4)

13

Investment and other gains and losses

(9)

2

Defined benefit plans

122

(152)

Other comprehensive income (loss) attributable to the

parent company

69

(143)

 Other comprehensive income (loss) attributable to 

   noncontrolling interests, net of tax: 

Currency translation adjustments

(5)

1

Hedging gains and losses

1

Defined benefit plans

(1)

Other comprehensive loss attributable to 

noncontrolling interests

(4)

-

Total comprehensive income attributable

to the parent company

313

157

Total comprehensive income attributable

to noncontrolling interests

12

15

Total comprehensive income

$         325

$         172

 

 DANA HOLDING CORPORATION 

 Consolidated Balance Sheet 

 As of December 31, 2013 and December 31, 2012 

 (In millions except share and per share amounts) 

December 31, 

December 31, 

 Assets 

2013

2012

 Current assets 

 Cash and cash equivalents 

$             1,256

$          1,059

 Marketable securities 

110

60

 Accounts receivable 

   Trade, less allowance for doubtful accounts of $7 in 2013 and $8 in 2012 

793

818

   Other 

223

170

 Inventories 

670

742

 Other current assets 

113

104

      Total current assets 

3,165

2,953

 Goodwill 

106

101

 Intangibles 

227

325

 Other noncurrent assets 

196

324

 Investments in affiliates 

210

202

 Property, plant and equipment, net 

1,225

1,239

      Total assets 

$             5,129

$          5,144

 Liabilities and equity 

 Current liabilities 

 Notes payable, including current portion of long-term debt 

$                  57

$              101

 Accounts payable 

804

766

 Accrued payroll and employee benefits 

161

160

 Accrued restructuring costs 

14

23

 Taxes on income 

35

63

 Other accrued liabilities 

197

197

      Total current liabilities 

1,268

1,310

 Long-term debt 

1,567

803

 Pension and postretirement obligations 

530

715

 Other noncurrent liabilities 

351

368

      Total liabilities 

3,716

3,196

 Commitments and contingencies 

 Parent company stockholders' equity 

   Preferred stock, 50,000,000 shares authorized 

      Series A, $0.01 par value, zero and 2,500,000 shares outstanding 

-

242

      Series B, $0.01 par value, 3,803,774 and 5,221,199 shares outstanding 

372

511

   Common stock, $0.01 par value, 450,000,000 shares authorized, 

      145,338,342 and 148,264,067 outstanding 

2

2

   Additional paid-in capital 

2,840

2,668

   Accumulated deficit 

(812)

(769)

   Treasury stock, at cost (18,742,288 and 1,797,988 shares) 

(366)

(25)

   Accumulated other comprehensive loss 

(727)

(793)

      Total parent company stockholders' equity 

1,309

1,836

 Noncontrolling equity 

104

112

      Total equity 

1,413

1,948

      Total liabilities and equity 

$             5,129

$          5,144

 

 DANA HOLDING CORPORATION 

 Consolidated Statement of Cash Flows (Unaudited) 

 For the Year Ended December 31, 2013 and 2012 

Three Months Ended

 (In millions) 

December 31, 

2013

2012

 Operating activities 

 Net income 

$            43

$            93

 Depreciation 

52

48

 Amortization of intangibles 

22

21

 Amortization of deferred financing charges 

1

1

 Write off of deferred financing costs 

2

 Unremitted earnings of affiliates 

6

2

 Stock compensation expense 

2

5

 Deferred income taxes 

(15)

(71)

 Pension contributions, net 

(4)

(16)

 Interest payment received on payment-in-kind note receivable 

 Change in working capital 

179

137

 Change in other noncurrent assets and liabilities 

(1)

 Other, net 

(3)

(2)

 Net cash flows provided by operating activities (1) 

284

218

 Investing activities 

 Purchases of property, plant and equipment (1) 

(86)

(51)

 Acquisition of business 

(5)

 Principal payment received on payment-in-kind note receivable 

 Purchases of marketable securities 

(4)

(5)

 Proceeds from sales of marketable securities 

3

 Proceeds from maturities of marketable securities 

1

3

 Proceeds from sale of businesses 

1

 Other 

1

7

 Net cash flows used in investing activities 

(88)

(47)

 Financing activities 

 Net change in short-term debt 

(3)

(22)

 Proceeds from long-term debt 

6

11

 Repayment of long-term debt 

(2)

(18)

 Deferred financing payments 

 Preferred stock redemptions 

 Dividends paid to preferred stockholders 

(5)

(8)

 Dividends paid to common stockholders 

(8)

(8)

 Distributions paid to noncontrolling interests 

(2)

 Repurchases of common stock 

(49)

(15)

 Payments to acquire noncontrolling interests 

 Other 

1

10

 Net cash flows used in financing activities 

(60)

(52)

 Net increase in cash and cash equivalents 

136

119

 Cash and cash equivalents − beginning of period 

1,121

940

 Effect of exchange rate changes on cash balances 

(1)

 Cash and cash equivalents − end of period 

$      1,256

$      1,059

(1)   Free cash flow of $198 in 2013 and $167 in 2012 is the sum of net cash provided by

        operating activities reduced by the purchases of property, plant and equipment.

 

 DANA HOLDING CORPORATION 

 Consolidated Statement of Cash Flows 

 For the Year Ended December 31, 2013 and 2012 

Year Ended

 (In millions) 

December 31, 

2013

2012

 Operating activities 

 Net income 

$         260

$         315

 Depreciation 

175

190

 Amortization of intangibles 

87

87

 Amortization of deferred financing charges 

5

5

 Write off of deferred financing costs 

4

 Unremitted earnings of affiliates 

(2)

1

 Stock compensation expense 

16

19

 Deferred income taxes 

(10)

(80)

 Pension contributions, net 

(60)

(220)

 Interest payment received on payment-in-kind note receivable 

26

 Change in working capital 

104

21

 Change in other noncurrent assets and liabilities 

(3)

(3)

 Other, net 

(25)

4

 Net cash flows provided by operating activities (1) 

577

339

 Investing activities 

 Purchases of property, plant and equipment (1) 

(209)

(164)

 Acquisition of business 

(8)

(12)

 Principal payment received on payment-in-kind note receivable 

33

 Purchases of marketable securities 

(84)

(18)

 Proceeds from sales of marketable securities 

28

15

 Proceeds from maturities of marketable securities 

8

6

 Proceeds from sale of businesses 

1

8

 Other 

9

4

 Net cash flows used in investing activities 

(222)

(161)

 Financing activities 

 Net change in short-term debt 

(14)

4

 Proceeds from long-term debt 

817

51

 Repayment of long-term debt 

(57)

(32)

 Deferred financing payments 

(17)

 Preferred stock redemptions 

(474)

 Dividends paid to preferred stockholders 

(28)

(31)

 Dividends paid to common stockholders 

(30)

(30)

 Distributions paid to noncontrolling interests 

(11)

(11)

 Repurchases of common stock 

(337)

(15)

 Payments to acquire noncontrolling interests 

(7)

 Other 

8

9

 Net cash flows used in financing activities 

(150)

(55)

 Net increase in cash and cash equivalents 

205

123

 Cash and cash equivalents − beginning of period 

1,059

931

 Effect of exchange rate changes on cash balances 

(8)

5

 Cash and cash equivalents − end of period 

$      1,256

$      1,059

(1)   Free cash flow of $368 in 2013 and $175 in 2012 is the sum of net cash provided by

        operating activities reduced by the purchases of property, plant and equipment.

 

 DANA HOLDING CORPORATION 

 Segment Sales & Segment EBITDA (Unaudited) 

 For the Three Months Ended December 31, 2013 and 2012 

 (In millions) 

Three Months Ended

December 31, 

Sales 

2013

2012

  Light Vehicle

$           628

$           622

  Commercial Vehicle

439

425

  Off-Highway

305

322

  Power Technologies

252

240

  Total Sales

$        1,624

$        1,609

Segment EBITDA 

  Light Vehicle

$             63

$             56

  Commercial Vehicle

40

36

  Off-Highway

36

36

  Power Technologies

36

31

Total Segment EBITDA 

175

159

Corporate expense and other items, net 

1

(3)

Structures EBITDA 

(2)

(2)

Adjusted EBITDA 

$           174

$           154

 

 DANA HOLDING CORPORATION 

 Segment Sales & Segment EBITDA (Unaudited) 

 For the Year Ended December 31, 2013 and 2012 

 (In millions) 

Year Ended

December 31, 

Sales 

2013

2012

  Light Vehicle

$        2,549

$        2,743

  Commercial Vehicle

1,860

1,960

  Off-Highway

1,330

1,509

  Power Technologies

1,030

1,012

  Total Sales

$        6,769

$        7,224

Segment EBITDA 

  Light Vehicle

$           242

$           263

  Commercial Vehicle

194

199

  Off-Highway

163

189

  Power Technologies

150

137

Total Segment EBITDA 

749

788

Corporate expense and other items, net 

(2)

(11)

Structures EBITDA 

(2)

4

Adjusted EBITDA 

$           745

$           781

 

 DANA HOLDING CORPORATION 

 Reconciliation of Segment and Adjusted EBITDA 

 to Net Income (Unaudited) 

 For the Three Months Ended December 31, 2013 and 2012 

 (In millions) 

Three Months Ended

December 31, 

2013

2012

Segment EBITDA 

$           175

$           159

  Corporate expense and other items, net

1

(3)

  Structures EBITDA

(2)

(2)

Adjusted EBITDA 

174

154

  Depreciation

(52)

(48)

  Amortization of intangibles

(22)

(21)

  Restructuring

(10)

(17)

  Strategic transaction and other items

2

(2)

  Write off of deferred financing costs

(2)

  Structures EBITDA

2

2

  Stock compensation expense

(2)

(5)

  Interest expense

(30)

(21)

  Interest income

5

7

 Income from continuing operations before 

income taxes

65

49

Income tax expense 

23

(46)

Equity in earnings of affiliates 

2

(2)

Income from continuing operations 

44

93

Loss from discontinued operations 

(1)

Net income 

$             43

$             93

 

 DANA HOLDING CORPORATION 

 Reconciliation of Segment and Adjusted EBITDA 

 to Net Income (Unaudited) 

 For the Year Ended December 31, 2013 and 2012 

 (In millions) 

Year Ended

December 31, 

2013

2012

Segment EBITDA 

$           749

$           788

  Corporate expense and other items, net

(2)

(11)

  Structures EBITDA

(2)

4

Adjusted EBITDA 

745

781

  Depreciation

(175)

(188)

  Amortization of intangibles

(87)

(87)

  Restructuring

(24)

(47)

  Strategic transaction and other items

(4)

(8)

  Write off of deferred financing costs

(4)

  Recognition of unrealized gain on

   payment-in-kind note receivable

5

  Impairment and loss on sale of assets

(6)

  Structures EBITDA

2

(4)

  Stock compensation expense

(16)

(17)

  Interest expense

(99)

(84)

  Interest income

25

24

Income from continuing operations before 

income taxes

368

364

Income tax expense 

119

51

Equity in earnings of affiliates 

12

2

Income from continuing operations 

261

315

Loss from discontinued operations 

(1)

Net income 

$           260

$           315

 

 DANA HOLDING CORPORATION 

 Diluted Adjusted EPS (Unaudited) 

 For the Three Months Ended December 31, 2013 and 2012 

 (In millions except per share amounts) 

Three Months Ended

December 31, 

2013

2012

Net income attributable to parent company 

$             42

$             88

Restructuring charges (1) 

8

18

Amortization of intangibles (1) 

23

25

Non-recurring items (1) (2) 

16

(50)

Adjusted net income 

$             89

$             81

Diluted shares - as reported 

181

215

Adjusted diluted shares 

181

215

Diluted adjusted EPS 

$          0.49

$          0.38

 (1) Amounts are net of associated tax effect. 

 (2) 2013 includes $8 of increased depreciation expense recognized in connection with 

       the winddown of the Argentina foundry and $9 of non-recurring tax charges associated 

       with subsidiary reorganization.  2012 includes a credit of $54 for release of tax valuation

       allowances.

 

 DANA HOLDING CORPORATION 

 Diluted Adjusted EPS (Unaudited) 

 For the Year Ended December 31, 2013 and 2012 

 (In millions except per share amounts) 

Year Ended

December 31, 

2013

2012

 Net income attributable to parent company 

$           244

$           300

 Restructuring charges (1) 

22

45

 Amortization of intangibles (1) 

74

74

 Non-recurring items (1) (2) 

15

(44)

 Adjusted net income 

$           355

$           375

 Diluted shares - as reported 

146

215

 Potentially dilutive shares 

2

 Conversion of preferred stock 

52

 Adjusted diluted shares 

200

215

 Diluted adjusted EPS 

$          1.77

$          1.75

 (1) Amounts are net of associated tax effect. 

 (2) 2013 includes $8 of increased depreciation expense recognized in connection with 

       the winddown of the Argentina foundry and $7 of non-recurring tax charges associated 

       with subsidiary reorganization.  2012 includes a credit of $54 for release of tax valuation

       allowances.

 

 

SOURCE Dana Holding Corporation



RELATED LINKS

http://www.dana.com