Dana Incorporated Reports 2023 Third-quarter Financial Results, Achieves Robust Sales and Profit Growth, Maintains Full-year Sales and Profit Guidance
Key Highlights
- Sales of $2.7 billion, an increase of $134 million or 5 percent over last year
- Net income attributable to Dana of $19 million, an increase of $107 million over last year
- Diluted EPS of $0.13; diluted adjusted EPS of $0.30, an increase of $0.06 per share over last year
- Adjusted EBITDA of $242 million, an increase of $50 million or 26 percent over last year
- Adjusted EBITDA margin of 9.1 percent, a 150 basis points improvement compared with last year
MAUMEE, Ohio, Oct. 27, 2023 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) today announced financial results for the third quarter of 2023.
"Dana had strong sales of $2.7 billion, and we improved our margin by 150 basis points in the third quarter despite the impact of the UAW strike on two of our key customers in our North American Light Vehicle business late in the quarter. The Dana team continues to execute well across our operations as customer recoveries and more consistent build patterns have helped to offset inflation pressure, said James Kamsickas, Dana chairman and chief executive officer.
"The business continues to strengthen due to our broad global customer base and cross-mobility market balance as we successfully execute numerous new-program launches and win new business."
Third-quarter 2023 Financial Results
Sales for the third quarter of 2023 totaled $2.67 billion, compared with $2.54 billion in the same period of 2022, representing a $134 million increase driven by higher market demand, cost-recovery actions, and conversion of our sales backlog partially offset by the lower demand due to the UAW strike at two of our key customers.
Adjusted EBITDA for the third quarter of 2023 was $242 million, compared with $192 million for the same period in 2022. The 150 basis points of margin improvement in the third quarter of 2023 was primarily driven by higher sales volume and beneficial mix, net customer pricing and recovery actions, improved customer order patterns driving higher manufacturing efficiency, and lower net commodity costs. These improvements were partially offset by continued inflationary cost pressures.
Net income attributable to Dana was $19 million, or $0.13 per share, compared with a net loss of $88 million, or $0.61 per share, in the third quarter of 2022. Last year's third-quarter loss was driven by a $191 million non-cash goodwill impairment charge.
Adjusted net income attributable to Dana was $43 million, and diluted adjusted earnings per share were $0.30 for the third quarter of 2023, compared with adjusted net income of $34 million and $0.24 per share in 2022.
Cash flow from operations in the third quarter of 2023 was $112 million, compared with $171 million in the same period of 2022. Free cash flow was a use of $5 million, compared with free cash flow of $77 million in the third quarter of 2022. The use of cash in this year's third quarter was driven by higher working capital requirements related to program launches and higher capital spending for new business backlog.
Dana Provides Update on Outlook
"The UAW strike is significantly impacting a number of our operations in North America while our heavy-vehicle business and operations in the rest of the world are largely unaffected," said Timothy Kraus, Dana's senior vice president and chief financial officer.
"Dana remains fundamentally strong due to the strength of our balance sheet and capital structure. If all the UAW strikes are resolved by the end of October, Dana expects sales and profit to be maintained at the midpoint of our previous guidance range. If no resolution is reached by year's end at all our Detroit 3 customers, including Ford, we anticipate our sales to be approximately $500 million lower."
Updated 2023 Financial Targets1, 2
- Sales of $10.7 billion assuming UAW strike through Oct. 31; $10.2 billion with strike through Dec. 31;
- Adjusted EBITDA of $850 million with strike through Oct. 31; $760 million with strike through Dec. 31 for an implied adjusted EBITDA margin of approximately 8 percent at the high end of the range;
- Diluted adjusted EPS of $0.80 with strike through Oct.31; $0.30 with strike through Dec. 31;
- Operating cash flow of approximately, $490 with strike through Oct. 31; $375 million with strike through Dec. 31; and
- Free cash flow use of $20 million with strike through Oct. 31; $135 million use with strike through Dec. 31.
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. Friday, Oct. 27
Dana will discuss its third-quarter results in a conference call at 9 a.m. EDT on Friday, Oct. 27. The conference call can be accessed by telephone from both domestic and international locations using the information provided below:
Conference ID: 9943139
Participant Toll-Free Dial-In Number: 1 (888) 440-5873
Participant Toll Dial-In Number: 1 (646) 960-0319
Audio streaming and slides will be available online via a link provided on the Dana investor website: www.dana.com/investors.
A webcast replay can be accessed via Dana's investor website following the call.
Non-GAAP Financial Information
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.
Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.
Free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. 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, diluted adjusted EPS 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 and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) 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 (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.
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 $10.2 billion in 2022 with 42,000 people in 31 countries across six continents. With a history dating to 1904, Dana was named among the "World's Most Ethical Companies" for 2023 by Ethisphere and as one of "America's Most Responsible Companies 2023" by Newsweek. 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 September 30, 2023 and 2022 | |||||
Three Months Ended | |||||
(In millions, except per share amounts) | September 30, | ||||
2023 | 2022 | ||||
Net sales | $ 2,669 | $ 2,535 | |||
Costs and expenses | |||||
Cost of sales | 2,433 | 2,332 | |||
Selling, general and administrative expenses | 126 | 114 | |||
Amortization of intangibles | 3 | 3 | |||
Restructuring charges, net | 17 | (1) | |||
Impairment of goodwill | (191) | ||||
Other income (expense), net | 1 | 3 | |||
Earnings (loss) before interest and income taxes | 91 | (101) | |||
Interest income | 5 | 2 | |||
Interest expense | 41 | 32 | |||
Earnings (loss) before income taxes | 55 | (131) | |||
Income tax expense | 33 | 31 | |||
Equity in earnings (loss) of affiliates | 3 | (1) | |||
Net income (loss) | 25 | (163) | |||
Less: Noncontrolling interests net income | 8 | 4 | |||
Less: Redeemable noncontrolling interests net loss | (2) | (79) | |||
Net income (loss) attributable to the parent company | $ 19 | $ (88) | |||
Net income (loss) per share available to common stockholders | |||||
Basic | $ 0.13 | $ (0.61) | |||
Diluted | $ 0.13 | $ (0.61) | |||
Weighted-average shares outstanding - Basic | 144.3 | 143.4 | |||
Weighted-average shares outstanding - Diluted | 144.7 | 143.4 | |||
DANA INCORPORATED | |||||
Consolidated Statement of Operations (Unaudited) | |||||
For the Nine Months Ended September 30, 2023 and 2022 | |||||
Nine Months Ended | |||||
(In millions, except per share amounts) | September 30, | ||||
2023 | 2022 | ||||
Net sales | $ 8,061 | $ 7,601 | |||
Costs and expenses | |||||
Cost of sales | 7,325 | 7,018 | |||
Selling, general and administrative expenses | 410 | 374 | |||
Amortization of intangibles | 10 | 10 | |||
Restructuring charges, net | 21 | (1) | |||
Impairment of goodwill | (191) | ||||
Other income (expense), net | 10 | 15 | |||
Earnings before interest and income taxes | 305 | 24 | |||
Loss on extinguishment of debt | (1) | ||||
Interest income | 14 | 6 | |||
Interest expense | 114 | 95 | |||
Earnings (loss) before income taxes | 204 | (65) | |||
Income tax expense | 118 | 67 | |||
Equity in earnings (loss) of affiliates | 6 | (1) | |||
Net income (loss) | 92 | (133) | |||
Less: Noncontrolling interests net income | 17 | 11 | |||
Less: Redeemable noncontrolling interests net loss | (2) | (81) | |||
Net income (loss) attributable to the parent company | $ 77 | $ (63) | |||
Net income (loss) per share available to common stockholders | |||||
Basic | $ 0.53 | $ (0.44) | |||
Diluted | $ 0.53 | $ (0.44) | |||
Weighted-average shares outstanding - Basic | 144.2 | 143.6 | |||
Weighted-average shares outstanding - Diluted | 144.5 | 143.6 | |||
DANA INCORPORATED | |||||||
Consolidated Statement of Comprehensive Income (Unaudited) | |||||||
For the Three Months Ended September 30, 2023 and 2022 | |||||||
Three Months Ended | |||||||
(In millions) | September 30, | ||||||
2023 | 2022 | ||||||
Net income (loss) | $ 25 | $ (163) | |||||
Other comprehensive income (loss), net of tax: | |||||||
Currency translation adjustments | (24) | (82) | |||||
Hedging gains and losses | (21) | 1 | |||||
Defined benefit plans | (1) | 1 | |||||
Other comprehensive loss | (46) | (80) | |||||
Total comprehensive loss | (21) | (243) | |||||
Less: Comprehensive income attributable to noncontrolling interests | (7) | (1) | |||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | 4 | 89 | |||||
Comprehensive loss attributable to the parent company | $ (24) | $ (155) | |||||
DANA INCORPORATED | |||||||
Consolidated Statement of Comprehensive Income (Unaudited) | |||||||
For the Nine Months Ended September 30, 2023 and 2022 | |||||||
Nine Months Ended | |||||||
(In millions) | September 30, | ||||||
2023 | 2022 | ||||||
Net income (loss) | $ 92 | $ (133) | |||||
Other comprehensive income (loss), net of tax: | |||||||
Currency translation adjustments | (6) | (134) | |||||
Hedging gains and losses | (3) | (2) | |||||
Defined benefit plans | 5 | ||||||
Other comprehensive income (loss) | (9) | (131) | |||||
Total comprehensive income (loss) | 83 | (264) | |||||
Less: Comprehensive income attributable to noncontrolling interests | (16) | (6) | |||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | 4 | 97 | |||||
Comprehensive income (loss) attributable to the parent company | $ 71 | $ (173) | |||||
DANA INCORPORATED | ||||||
Consolidated Balance Sheet (Unaudited) | ||||||
As of September 30, 2023 and December 31, 2022 | ||||||
(In millions, except share and per share amounts) | September 30, | December 31, | ||||
2023 | 2022 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ 421 | $ 425 | ||||
Accounts receivable | ||||||
Trade, less allowance for doubtful accounts of $11 in 2023 and $11 in 2022 | 1,562 | 1,374 | ||||
Other | 292 | 202 | ||||
Inventories | 1,713 | 1,609 | ||||
Other current assets | 232 | 219 | ||||
Total current assets | 4,220 | 3,829 | ||||
Goodwill | 256 | 259 | ||||
Intangibles | 184 | 201 | ||||
Deferred tax assets | 437 | 397 | ||||
Other noncurrent assets | 128 | 123 | ||||
Investments in affiliates | 135 | 136 | ||||
Operating lease assets | 327 | 311 | ||||
Property, plant and equipment, net | 2,250 | 2,193 | ||||
Total assets | $ 7,937 | $ 7,449 | ||||
Liabilities, redeemable noncontrolling interests and equity | ||||||
Current liabilities | ||||||
Short-term debt | $ 37 | $ 52 | ||||
Current portion of long-term debt | 31 | 8 | ||||
Accounts payable | 1,883 | 1,838 | ||||
Accrued payroll and employee benefits | 273 | 214 | ||||
Taxes on income | 85 | 54 | ||||
Current portion of operating lease liabilities | 38 | 36 | ||||
Other accrued liabilities | 323 | 277 | ||||
Total current liabilities | 2,670 | 2,479 | ||||
Long-term debt, less debt issuance costs of $25 in 2023 and $22 in 2022 | 2,563 | 2,348 | ||||
Noncurrent operating lease liabilities | 287 | 277 | ||||
Pension and postretirement obligations | 297 | 298 | ||||
Other noncurrent liabilities | 263 | 249 | ||||
Total liabilities | 6,080 | 5,651 | ||||
Commitments and contingencies | ||||||
Redeemable noncontrolling interests | 210 | 195 | ||||
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, | ||||||
144,337,917 and 143,366,482 shares outstanding | 2 | 2 | ||||
Additional paid-in capital | 2,249 | 2,229 | ||||
Retained earnings | 353 | 321 | ||||
Treasury stock, at cost (450,729 and zero shares) | (8) | - | ||||
Accumulated other comprehensive loss | (1,007) | (1,001) | ||||
Total parent company stockholders' equity | 1,589 | 1,551 | ||||
Noncontrolling interests | 58 | 52 | ||||
Total equity | 1,647 | 1,603 | ||||
Total liabilities, redeemable noncontrolling interests and equity | $ 7,937 | $ 7,449 | ||||
DANA INCORPORATED | |||||
Consolidated Statement of Cash Flows (Unaudited) | |||||
For the Three Months Ended September 30, 2023 and 2022 | |||||
Three Months Ended | |||||
(In millions) | September 30, | ||||
2023 | 2022 | ||||
Operating activities | |||||
Net income (loss) | $ 25 | $ (163) | |||
Depreciation | 101 | 88 | |||
Amortization | 6 | 6 | |||
Amortization of deferred financing charges | 1 | 1 | |||
Earnings of affiliates, net of dividends received | (1) | ||||
Stock compensation expense | 5 | 5 | |||
Deferred income taxes | (16) | (14) | |||
Pension expense, net | 2 | ||||
Impairment of goodwill | 191 | ||||
Change in working capital | 3 | 63 | |||
Other, net | (14) | (6) | |||
Net cash provided by operating activities | 112 | 171 | |||
Investing activities | |||||
Purchases of property, plant and equipment | (117) | (94) | |||
Purchases of marketable securities | (2) | ||||
Proceeds from sales of marketable securities | 8 | ||||
Settlements of undesignated derivatives | (6) | 1 | |||
Other, net | (15) | 5 | |||
Net cash used in investing activities | (138) | (82) | |||
Financing activities | |||||
Net change in short-term debt | 2 | (2) | |||
Repayment of long-term debt | (3) | (14) | |||
Dividends paid to common stockholders | (14) | (14) | |||
Distributions to noncontrolling interests | (7) | (6) | |||
Contributions from redeemable noncontrolling interests | 1 | 23 | |||
Other, net | 1 | (1) | |||
Net cash used in financing activities | (20) | (14) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | (46) | 75 | |||
Cash, cash equivalents and restricted cash − beginning of period | 503 | 340 | |||
Effect of exchange rate changes on cash balances | (17) | (25) | |||
Cash, cash equivalents and restricted cash − end of period | $ 440 | $ 390 | |||
DANA INCORPORATED | |||||
Consolidated Statement of Cash Flows (Unaudited) | |||||
For the Nine Months Ended September 30, 2023 and 2022 | |||||
Nine Months Ended | |||||
(In millions) | September 30, | ||||
2023 | 2022 | ||||
Operating activities | |||||
Net income (loss) | $ 92 | $ (133) | |||
Depreciation | 287 | 270 | |||
Amortization | 17 | 17 | |||
Amortization of deferred financing charges | 4 | 4 | |||
Write-off of deferred financing costs | 1 | ||||
Earnings of affiliates, net of dividends received | (4) | 29 | |||
Stock compensation expense | 19 | 13 | |||
Deferred income taxes | (46) | (56) | |||
Pension expense, net | 4 | ||||
Impairment of goodwill | 191 | ||||
Change in working capital | (169) | (21) | |||
Other, net | (7) | (7) | |||
Net cash provided by operating activities | 198 | 307 | |||
Investing activities | |||||
Purchases of property, plant and equipment | (359) | (300) | |||
Acquisition of business, net of cash acquired | (1) | ||||
Purchases of marketable securities | (15) | ||||
Proceeds from sales of marketable securities | 18 | ||||
Settlements of undesignated derivatives | (10) | (6) | |||
Other, net | (14) | 7 | |||
Net cash used in investing activities | (383) | (297) | |||
Financing activities | |||||
Net change in short-term debt | (15) | 212 | |||
Proceeds from long-term debt | 458 | 2 | |||
Repayment of long-term debt | (207) | (19) | |||
Deferred financing payments | (9) | ||||
Dividends paid to common stockholders | (43) | (43) | |||
Repurchases of common stock | (25) | ||||
Distributions to noncontrolling interests | (10) | (8) | |||
Contributions from redeemable noncontrolling interests | 18 | 30 | |||
Payments to acquire noncontrolling interests | (4) | ||||
Other, net | (3) | (7) | |||
Net cash provided by financing activities | 189 | 138 | |||
Net increase in cash, cash equivalents and restricted cash | 4 | 148 | |||
Cash, cash equivalents and restricted cash − beginning of period | 442 | 287 | |||
Effect of exchange rate changes on cash balances | (6) | (45) | |||
Cash, cash equivalents and restricted cash − end of period | $ 440 | $ 390 | |||
DANA INCORPORATED | |||||
Reconciliation of Net Cash Provided By Operating Activities to | |||||
Free Cash Flow (Unaudited) | |||||
Three Months Ended | |||||
(In millions) | September 30, | ||||
2023 | 2022 | ||||
Net cash provided by operating activities | $ 112 | $ 171 | |||
Purchases of property, plant and equipment | (117) | (94) | |||
Free cash flow | $ (5) | $ 77 | |||
Nine Months Ended | |||||
(In millions) | September 30, | ||||
2023 | 2022 | ||||
Net cash provided by operating activities | $ 198 | $ 307 | |||
Purchases of property, plant and equipment | (359) | (300) | |||
Free cash flow | $ (161) | $ 7 | |||
DANA INCORPORATED | ||||
Segment Sales and Segment EBITDA (Unaudited) | ||||
For the Three Months Ended September 30, 2023 and 2022 | ||||
Three Months Ended | ||||
(In millions) | September 30, | |||
2023 | 2022 | |||
Sales | ||||
Light Vehicle | $ 1,084 | $ 1,047 | ||
Commercial Vehicle | 535 | 505 | ||
Off-Highway | 739 | 694 | ||
Power Technologies | 311 | 289 | ||
Total Sales | $ 2,669 | $ 2,535 | ||
Segment EBITDA | ||||
Light Vehicle | $ 75 | $ 60 | ||
Commercial Vehicle | 29 | 18 | ||
Off-Highway | 110 | 91 | ||
Power Technologies | 28 | 21 | ||
Total Segment EBITDA | 242 | 190 | ||
Corporate expense and other items, net | 2 | |||
Adjusted EBITDA | $ 242 | $ 192 | ||
DANA INCORPORATED | ||||
Segment Sales and Segment EBITDA (Unaudited) | ||||
For the Nine Months Ended September 30, 2023 and 2022 | ||||
Nine Months Ended | ||||
(In millions) | September 30, | |||
2023 | 2022 | |||
Sales | ||||
Light Vehicle | $ 3,112 | $ 3,060 | ||
Commercial Vehicle | 1,583 | 1,475 | ||
Off-Highway | 2,423 | 2,206 | ||
Power Technologies | 943 | 860 | ||
Total Sales | $ 8,061 | $ 7,601 | ||
Segment EBITDA | ||||
Light Vehicle | $ 190 | $ 124 | ||
Commercial Vehicle | 74 | 38 | ||
Off-Highway | 359 | 291 | ||
Power Technologies | 70 | 71 | ||
Total Segment EBITDA | 693 | 524 | ||
Corporate expense and other items, net | (4) | |||
Adjusted EBITDA | $ 689 | $ 524 | ||
DANA INCORPORATED | ||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Loss) (Unaudited) | ||||
For the Three Months Ended September 30, 2023 and 2022 | ||||
Three Months Ended | ||||
(In millions) | September 30, | |||
2023 | 2022 | |||
Segment EBITDA | $ 242 | $ 190 | ||
Corporate expense and other items, net | 2 | |||
Adjusted EBITDA | 242 | 192 | ||
Depreciation | (101) | (88) | ||
Amortization | (6) | (6) | ||
Non-service cost components of pension and OPEB costs | (4) | |||
Restructuring charges, net | (17) | 1 | ||
Stock compensation expense | (5) | (5) | ||
Strategic transaction expenses | (2) | (1) | ||
Distressed supplier costs | (14) | |||
Impairment of goodwill | (191) | |||
Other items | (2) | (3) | ||
Earnings (loss) before interest and income taxes | 91 | (101) | ||
Interest income | 5 | 2 | ||
Interest expense | 41 | 32 | ||
Earnings (loss) before income taxes | 55 | (131) | ||
Income tax expense | 33 | 31 | ||
Equity in earnings (loss) of affiliates | 3 | (1) | ||
Net income (loss) | $ 25 | $ (163) | ||
DANA INCORPORATED | ||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Loss) (Unaudited) | ||||
For the Nine Months Ended September 30, 2023 and 2022 | ||||
Nine Months Ended | ||||
(In millions) | September 30, | |||
2023 | 2022 | |||
Segment EBITDA | $ 693 | $ 524 | ||
Corporate expense and other items, net | (4) | |||
Adjusted EBITDA | 689 | 524 | ||
Depreciation | (287) | (270) | ||
Amortization | (17) | (17) | ||
Non-service cost components of pension and OPEB costs | (10) | (3) | ||
Restructuring charges, net | (21) | 1 | ||
Stock compensation expense | (19) | (13) | ||
Strategic transaction expenses | (4) | (6) | ||
Distressed supplier costs | (26) | |||
Impairment of goodwill | (191) | |||
Other items | (1) | |||
Earnings before interest and income taxes | 305 | 24 | ||
Loss on extinguishment of debt | (1) | |||
Interest income | 14 | 6 | ||
Interest expense | 114 | 95 | ||
Earnings (loss) before income taxes | 204 | (65) | ||
Income tax expense | 118 | 67 | ||
Equity in earnings (loss) of affiliates | 6 | (1) | ||
Net income (loss) | $ 92 | $ (133) | ||
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 Three Months Ended September 30, 2023 and 2022 | |||||
(In millions, except per share amounts) | |||||
Three Months Ended | |||||
September 30, | |||||
2023 | 2022 | ||||
Net income (loss) attributable to the parent company | $ 19 | $ (88) | |||
Items impacting income (loss) before income taxes: | |||||
Amortization | 5 | 5 | |||
Restructuring charges, net | 17 | (1) | |||
Strategic transaction expenses | 2 | 3 | |||
Distressed supplier costs | 14 | ||||
Impairment of goodwill | 118 | ||||
Other items | 2 | ||||
Items impacting income taxes: | |||||
Net income tax expense on items above | (16) | (5) | |||
Income tax expense attributable to various discrete tax matters | 2 | ||||
Adjusted net income attributable to the parent company | $ 43 | $ 34 | |||
Diluted shares - as reported | 144.7 | 143.4 | |||
Adjusted diluted shares | 144.7 | 143.8 | |||
Diluted adjusted EPS | $ 0.30 | $ 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 Nine Months Ended September 30, 2023 and 2022 | |||||
(In millions, except per share amounts) | |||||
Nine Months Ended | |||||
September 30, | |||||
2023 | 2022 | ||||
Net income (loss) attributable to the parent company | $ 77 | $ (63) | |||
Items impacting income (loss) before income taxes: | |||||
Amortization | 15 | 15 | |||
Restructuring charges, net | 21 | (1) | |||
Strategic transaction expenses | 4 | 8 | |||
Distressed supplier costs | 26 | ||||
Impairment of goodwill | 118 | ||||
Other items | 2 | ||||
Items impacting income taxes: | |||||
Net income tax expense on items above | (26) | (10) | |||
Income tax expense attributable to various discrete tax matters | 14 | 2 | |||
Adjusted net income attributable to the parent company | $ 133 | $ 69 | |||
Diluted shares - as reported | 144.5 | 143.6 | |||
Adjusted diluted shares | 144.5 | 144.4 | |||
Diluted adjusted EPS | $ 0.92 | $ 0.48 | |||
SOURCE Dana Incorporated
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