Dana Incorporated Reports 2021 Financial Results, Issues Guidance for 2022

Rhea-AI Summary

Dana Incorporated (NYSE: DAN) reported a strong financial performance for 2021, with sales reaching $8.9 billion, up $1.8 billion from 2020. The net income attributable to Dana improved to $197 million, translating to diluted EPS of $1.35. Adjusted EBITDA was $795 million, marking an 8.9 percent margin. For Q4 2021, sales totaled $2.27 billion, but net income decreased to $25 million due to rising input costs. Looking ahead, Dana anticipates a sales range of $9.6 to $10.1 billion for 2022, with expected adjusted EBITDA of $900 million to $1 billion.

Positive

• Sales increased by $1.8 billion, reaching $8.9 billion in 2021.
• Net income improved significantly from a loss of $31 million in 2020 to a profit of $197 million.
• Diluted adjusted EPS rose to $1.66 from $0.39 year-over-year.
• A new sales backlog of $800 million is expected to drive growth, especially in electrification.
• 2022 guidance suggests sales of $9.6 to $10.1 billion, indicating continued growth.

Negative

• Q4 2021 net income decreased to $25 million from $40 million in Q4 2020 due to higher input costs.
• Operating cash flow fell to $139 million, down from $191 million year-over-year.
• Free cash flow usage of $2 million in Q4 2021 contrasts with $46 million in the previous year, indicating cash flow pressure.

MAUMEE, Ohio, Feb. 23, 2022 /PRNewswire/ --

Full-year Results

• Sales of $8.9 billion, an increase of $1.8 billion
• Net income attributable to Dana of $197 million, an increase of $228 million
• Diluted EPS of $1.35, an increase of $1.56
• Adjusted EBITDA of $795 million; margin of 8.9 percent of sales
• Diluted adjusted EPS of $1.66, an improvement of $1.27
• Operating cash flow of $158 million

Dana Incorporated (NYSE: DAN) today announced financial results for the fourth quarter and full-year 2021.

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

Fourth-quarter 2021 Financial Results

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

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

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

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

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

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

Full-year 2021 Financial Results

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

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

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

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

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

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

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

2022 Financial Targets¹

• Sales of $9.6 to $10.1 billion;
• Adjusted EBITDA of $900 million to $1.0 billion, an implied adjusted EBITDA margin of approximately 9.6 percent at the midpoint of the range;
• Diluted adjusted EPS of $2.05 to $2.55;
• Operating cash flow of approximately 6.5 to 7.5 percent of sales; and
• Free cash flow of approximately 2.5 to 3.5 percent of sales.

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, Feb. 23

Dana will discuss its fourth-quarter and full-year results in a conference call at 9 a.m. EST on Wednesday, Feb. 23.  Participants may listen to the audio portion of the conference call either through audio streaming online or by telephone.  Slide viewing is available online via a link provided on the Dana investor website: www.dana.com/investors.  U.S. and Canadian locations should dial 1-888-311-4590 and international locations should call 1-706-758-0054.  Please enter conference I.D. 2493396 ask for the "Dana Incorporated's Financial Webcast and Conference Call."  Phone registration will be available beginning at 8:30 a.m. EST.An audio recording of the webcast will be available after 5 p.m. EST on Feb. 23 by dialing 1-855-859-2056 (U.S. or Canada) or 1-404-537-3406 (international) and entering conference I.D. 2493396.  A webcast replay will also be available after 5 p.m. EST and may be accessed via Dana's investor website.

Non-GAAP Financial Information

This release refers to adjusted EBITDA, a non-GAAP financial measure which we have defined as net income before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs, and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors, and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for income before income taxes, net income or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Diluted adjusted EPS is a non-GAAP financial measure, which we have defined as adjusted net income divided by adjusted diluted shares.  We define adjusted net income as net income (loss) attributable to the parent company, excluding any nonrecurring income tax items, restructuring charges, amortization expense, and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects.  We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income.  This measure is considered useful for purposes of providing investors, analysts, and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies.  Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported under GAAP.

Free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant, and equipment.  Adjusted free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities excluding voluntary pension contributions less purchases of property, plant, and equipment.  We believe these measures are useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations.  Free cash flow and adjusted free cash flow are not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported under GAAP.  Free cash flow and adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

We have not provided reconciliations of preliminary and projected adjusted EBITDA and diluted adjusted EPS to the most comparable GAAP measures of net income and diluted EPS. Providing net income and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in net income and diluted EPS, including restructuring actions, asset impairments, and income tax valuation adjustments. Reconciliations of these non-GAAP measures with the most comparable GAAP measures for historical periods are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance. Please reference the "Non-GAAP Financial Information" accompanying our quarterly earnings conference call presentations on our website at www.dana.com/investors for our GAAP results and the reconciliations of these measures, were used, to the comparable GAAP measures.

Forward-Looking Statements

Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on our current expectations, estimates, and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change.  Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," and similar expressions, and variations or negatives of these words.  These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. 

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition.  The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Incorporated

Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe.  The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.

Based in Maumee, Ohio, USA, the company reported sales of $8.9 billion in 2021 with 40,000 associates in 32 countries across six continents.  Founded in 1904, Dana was named one of "America's Most Responsible Companies 2022" by Newsweek for its emphasis on sustainability and social responsibility.  The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer.  Learn more at dana.com.

 

 

DANA INCORPORATED
Consolidated Statement of Operations (Unaudited)
For the Three Months Ended December 31, 2021 and 2020
		Three Months Ended
(In millions, except per share amounts)		December 31,
		2021		2020
Net sales		$      2,273		$      2,108
Costs and expenses
Cost of sales		2,145		1,897
Selling, general and administrative expenses		112		122
Amortization of intangibles		3		3
Restructuring charges, net		(2)		13
Other income (expense), net		65		27
Earnings before interest and income taxes		80		100
Loss on extinguishment of debt		(5)		(3)
Interest income		3		2
Interest expense		32		39
Earnings before income taxes		46		60
Income tax expense		16		24
Equity in earnings of affiliates		(1)		3
Net income		29		39
Less: Noncontrolling interests net income		5		4
Less: Redeemable noncontrolling interests net loss		(1)		(5)
Net income attributable to the parent company		$            25		$            40
Net income per share available to common stockholders
Basic		$        0.18		$        0.28
Diluted		$        0.18		$        0.27
Weighted-average shares outstanding - Basic		144.3		144.6
Weighted-average shares outstanding - Diluted		145.8		145.7

 

DANA INCORPORATED
Consolidated Statement of Operations
For the Year Ended December 31, 2021 and 2020
		Year Ended
(In millions, except per share amounts)		December 31,
		2021		2020
Net sales		$      8,945		$      7,106
Costs and expenses
Cost of sales		8,108		6,485
Selling, general and administrative expenses		460		421
Amortization of intangibles		14		13
Restructuring charges, net				34
Impairment of goodwill				(51)
Other income (expense), net		32		22
Earnings before interest and income taxes		395		124
Loss on extinguishment of debt		(29)		(8)
Interest income		9		9
Interest expense		131		138
Earnings (loss) before income taxes		244		(13)
Income tax expense		72		58
Equity in earnings of affiliates		28		20
Net income (loss)		200		(51)
Less: Noncontrolling interests net income		14		10
Less: Redeemable noncontrolling interests net loss		(11)		(30)
Net income (loss) attributable to the parent company		$         197		$          (31)
Net income (loss) per share available to common stockholders
Basic		$        1.36		$       (0.21)
Diluted		$        1.35		$       (0.21)
Weighted-average shares outstanding - Basic		144.8		144.5
Weighted-average shares outstanding - Diluted		146.2		144.5

 

DANA INCORPORATED
Consolidated Statement of Comprehensive Income (Unaudited)
For the Three Months Ended December 31, 2021 and 2020
			Three Months Ended
(In millions)			December 31,
			2021		2020
Net income			$            29		$            39
Other comprehensive income (loss), net of tax:
	Currency translation adjustments		2		56
	Hedging gains and losses		5		(1)
	Defined benefit plans		42		(2)
	Other comprehensive income		49		53
Total comprehensive income			78		92
	Less: Comprehensive income attributable to noncontrolling interests		(4)		(20)
	Less: Comprehensive loss attributable to redeemable noncontrolling interests		1		11
Comprehensive income attributable to the parent company			$            75		$            83

 

DANA INCORPORATED
Consolidated Statement of Comprehensive Income
For the Year Ended December 31, 2021 and 2020
			Year Ended
(In millions)			December 31,
			2021		2020
Net income (loss)			$         200		$          (51)
Other comprehensive income (loss), net of tax:
	Currency translation adjustments		(9)		(77)
	Hedging gains and losses		(5)		39
	Defined benefit plans		53		9
	Other comprehensive income (loss)		39		(29)
Total comprehensive income (loss)			239		(80)
	Less: Comprehensive income attributable to noncontrolling interests		(2)		(27)
	Less: Comprehensive loss attributable to redeemable noncontrolling interests		1		36
Comprehensive income (loss) attributable to the parent company			$         238		$          (71)

 

DANA INCORPORATED
Consolidated Balance Sheet
As of December 31, 2021 and December 31, 2020
(In millions, except share and per share amounts)				December 31,		December 31,
				2021		2020
Assets
Current assets
Cash and cash equivalents				$                268		$                559
Marketable securities				17		21
Accounts receivable
	Trade, less allowance for doubtful accounts of $7 in 2021 and $7 in 2020			1,321		1,201
	Other			220		231
Inventories				1,564		1,149
Other current assets				196		127
		Total current assets		3,586		3,288
Goodwill				482		479
Intangibles				233		236
Deferred tax assets				580		611
Other noncurrent assets				131		169
Investments in affiliates				174		152
Operating lease assets				247		190
Property, plant and equipment, net				2,199		2,251
		Total assets		$             7,632		$             7,376
Liabilities and equity
Current liabilities
Short-term debt				$                  23		$                   26
Current portion of long-term debt				8		8
Accounts payable				1,571		1,331
Accrued payroll and employee benefits				184		190
Taxes on income				41		35
Current portion of operating lease liabilities				43		43
Other accrued liabilities				304		308
		Total current liabilities		2,174		1,941
Long-term debt, less debt issuance costs of $26 in 2021 and $27 in 2020				2,386		2,420
Noncurrent operating lease liabilities				209		154
Pension and postretirement obligations				398		479
Other noncurrent liabilities				292		368
		Total liabilities		5,459		5,362
Commitments and contingencies
Redeemable noncontrolling interests				198		180
Parent company stockholders' equity
	Preferred stock, 50,000,000 shares authorized, $0.01 par value,
		no shares outstanding		-		-
	Common stock, 450,000,000 shares authorized, $0.01 par value,
		144,238,660 and 144,515,658 shares outstanding		2		2
	Additional paid-in capital			2,427		2,408
	Retained earnings			662		530
	Treasury stock, at cost (11,661,591 and 10,442,582 shares)			(184)		(156)
	Accumulated other comprehensive loss			(985)		(1,026)
		Total parent company stockholders' equity		1,922		1,758
Noncontrolling interests				53		76
		Total equity		1,975		1,834
		Total liabilities, redeemable noncontrolling interests and equity		$             7,632		$             7,376

 

DANA INCORPORATED
Consolidated Statement of Cash Flows (Unaudited)
For the Three Months Ended December 31, 2021 and 2020
		Three Months Ended
(In millions)		December 31,
		2021		2020
Operating activities
Net income		$            29		$            39
Depreciation		93		88
Amortization		6		5
Amortization of deferred financing charges		1		2
Write-off of deferred financing costs		5		3
Earnings of affiliates, net of dividends received		1		2
Stock compensation expense		2		9
Deferred income taxes		(9)		(7)
Pension expense, net		(1)
Gain on sale leaseback		(66)
Change in working capital		46		97
Change in other noncurrent assets and liabilities		(1)		(22)
Other, net		33		(25)
Net cash provided by operating activities		139		191
Investing activities
Purchases of property, plant and equipment		(141)		(145)
Proceeds from sale of property, plant and equipment		81		1
Investments in affiliates				(17)
Purchases of marketable securities		(7)		(8)
Proceeds from maturities of marketable securities		8		9
Proceeds from sale of equity affiliate		29		21
Settlements of undesignated derivatives		(2)
Other, net		(1)		5
Net cash used in investing activities		(33)		(134)
Financing activities
Net change in short-term debt		(46)		11
Proceeds from long-term debt		355		(4)
Repayment of long-term debt		(351)		(468)
Deferred financing payments		(5)
Dividends paid to common stockholders		(14)
Distributions to noncontrolling interests		(5)		(1)
Sale of interest to noncontrolling shareholder				2
Contributions from noncontrolling interests		8		1
Deconsolidation of non-wholly owned subsidiary				(14)
Payments to acquire noncontrolling interests				(6)
Other, net		2		1
Net cash used in financing activities		(56)		(478)
Net increase (decrease) in cash, cash equivalents and restricted cash		50		(421)
Cash, cash equivalents and restricted cash − beginning of period		239		966
Effect of exchange rate changes on cash balances		(2)		22
Cash, cash equivalents and restricted cash − end of period		$         287		$         567

 

DANA INCORPORATED
Consolidated Statement of Cash Flows
For the Year Ended December 31, 2021 and 2020
		Year Ended
(In millions)		December 31,
		2021		2020
Operating activities
Net income (loss)		$         200		$          (51)
Depreciation		365		345
Amortization		24		20
Amortization of deferred financing charges		6		8
Redemption premium on debt		21
Write-off of deferred financing costs		8		8
Earnings of affiliates, net of dividends received		(10)		7
Stock compensation expense		17		14
Deferred income taxes		(1)		(35)
Pension expense, net		(1)		3
Gain on sale leaseback		(66)
Impairment of goodwill				51
Change in working capital		(455)		47
Change in other noncurrent assets and liabilities		(3)		(20)
Other, net		53		(11)
Net cash provided by operating activities		158		386
Investing activities
Purchases of property, plant and equipment		(369)		(326)
Proceeds from sale of property, plant and equipment		85		11
Acquisition of businesses, net of cash acquired		(18)		(6)
Investments in affiliates		(23)		(21)
Proceeds from sale of subsidiary, net of cash disposed		(4)
Purchases of marketable securities		(32)		(44)
Proceeds from sales of marketable securities		30		5
Proceeds from maturities of marketable securities		35		36
Proceeds from sale of equity affiliate		29		21
Settlement of terminated fixed-to-fixed cross currency swap		(22)
Settlements of undesignated derivatives		(4)		(5)
Other, net				2
Net cash used in investing activities		(293)		(327)
Financing activities
Net change in short-term debt		(3)		9
Proceeds from long-term debt		1,157		508
Repayment of long-term debt		(1,156)		(480)
Redemption premium on debt		(21)
Deferred financing payments		(18)		(13)
Dividends paid to common stockholders		(58)		(15)
Distributions to noncontrolling interests		(15)		(11)
Sale of interest to noncontrolling shareholder				9
Contributions from noncontrolling interests		14		4
Deconsolidation of non-wholly owned subsidiary		(6)		(14)
Payments to acquire noncontrolling interests				(7)
Repurchases of common stock		(23)
Other, net		2		(2)
Net cash used in financing activities		(127)		(12)
Net increase (decrease) in cash, cash equivalents and restricted cash		(262)		47
Cash, cash equivalents and restricted cash − beginning of period		567		518
Effect of exchange rate changes on cash balances		(18)		2
Cash, cash equivalents and restricted cash − end of period		$         287		$         567

 

DANA INCORPORATED
Reconciliation of Net Cash Provided By (Used In) Operating Activities to
Free Cash Flow and Adjusted Free Cash Flow (Unaudited)
		Three Months Ended
(In millions)		December 31,
		2021			2020
Net cash provided by (used in) operating activities		$         139			$       191
Purchase of property, plant and equipment		(141)			(145)
Free cash flow		(2)			46
Discretionary pension contributions
Adjusted free cash flow		$            (2)			$         46
		Year Ended
(In millions)		December 31,
		2021			2020
Net cash provided by operating activities		$         158			$       386
Purchase of property, plant and equipment		(369)			(326)
Free cash flow		(211)			60
Discretionary pension contributions
Adjusted free cash flow		$       (211)			$         60

 

DANA INCORPORATED
Segment Sales and Segment EBITDA (Unaudited)
For the Three Months Ended December 31, 2021 and 2020
		Three Months Ended
(In millions)		December 31,
		2021		2020
Sales
Light Vehicle		$           974		$           980
Commercial Vehicle		400		333
Off-Highway		662		531
Power Technologies		237		264
Total Sales		$        2,273		$        2,108
Segment EBITDA
Light Vehicle		$             33		$             99
Commercial Vehicle		(5)		8
Off-Highway		77		58
Power Technologies		12		31
Total Segment EBITDA		117		196
Corporate expense and other items, net		1		(4)
Adjusted EBITDA		$           118		$           192

 

DANA INCORPORATED
Segment Sales and Segment EBITDA
For the Year Ended December 31, 2021 and 2020
		Year Ended
(In millions)		December 31,
		2021		2020
Sales
Light Vehicle		$        3,773		$        3,038
Commercial Vehicle		1,532		1,185
Off-Highway		2,593		1,966
Power Technologies		1,047		917
Total Sales		$        8,945		$        7,106
Segment EBITDA
Light Vehicle		$           274		$           239
Commercial Vehicle		48		40
Off-Highway		353		230
Power Technologies		123		94
Total Segment EBITDA		798		603
Corporate expense and other items, net		(3)		(10)
Adjusted EBITDA		$           795		$           593

 

DANA INCORPORATED
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited)
For the Three Months Ended December 31, 2021 and 2020
		Three Months Ended
(In millions)		December 31,
		2021		2020
Segment EBITDA		$           117		$           196
Corporate expense and other items, net		1		(4)
Adjusted EBITDA		118		192
Depreciation		(93)		(88)
Amortization		(6)		(5)
Non-service cost components of pension and OPEB costs		(3)		(2)
Restructuring charges, net		2		(13)
Stock compensation expense		(2)		(9)
Strategic transaction expenses		(2)		(5)
Amounts attributable to previously divested/closed operations		(1)		(1)
Gain on investment in Hyliion				33
Gain on sale leaseback		66
Other items		1		(2)
Earnings before interest and income taxes		80		100
Loss on extinguishment of debt		(5)		(3)
Interest income		3		2
Interest expense		32		39
Earnings before income taxes		46		60
Income tax expense		16		24
Equity in earnings of affiliates		(1)		3
Net income		$             29		$             39

 

DANA INCORPORATED
Reconciliation of Segment and Adjusted EBITDA to Net Income (Loss)
For the Year Ended December 31, 2021 and 2020
		Year Ended
(In millions)		December 31,
		2021		2020
Segment EBITDA		$           798		$           603
Corporate expense and other items, net		(3)		(10)
Adjusted EBITDA		795		593
Depreciation		(365)		(345)
Amortization		(24)		(20)
Non-service cost components of pension and OPEB costs		(10)		(10)
Restructuring charges, net				(34)
Stock compensation expense		(17)		(14)
Strategic transaction expenses		(13)		(20)
Amounts attributable to previously divested/closed operations		(2)		(1)
Gain (loss) on investment in Hyliion		(20)		33
Loss on disposal group held for sale		(7)
Loss on de-designation of fixed-to-fixed cross currency swaps		(9)
Gain on sale leaseback		66
Impairment of goodwill				(51)
Other items		1		(7)
Earnings before interest and income taxes		395		124
Loss on extinguishment of debt		(29)		(8)
Interest income		9		9
Interest expense		131		138
Earnings (loss) before income taxes		244		(13)
Income tax expense		72		58
Equity in earnings of affiliates		28		20
Net income (loss)		$           200		$            (51)

 

DANA INCORPORATED
Reconciliation of Net Income Attributable to the Parent Company to
Adjusted Net Income Attributable to the Parent Company and
Diluted Adjusted EPS (Unaudited)
For the Three Months Ended December 31, 2021 and 2020
(In millions, except per share amounts)
			Three Months Ended
			December 31,
			2021		2020
Net income attributable to parent company			$             25		$             40
Items impacting income before income taxes:
	Amortization		5		4
	Restructuring charges, net		(2)		12
	Strategic transaction expenses		5		6
	Gain on investment in Hyliion				(33)
	Loss on extinguishment of debt		5		3
	Gain on sale leaseback		(66)
	Other items		(2)
Items impacting income taxes:
	Net income tax expense on items above		14		7
	Income tax expense (benefit) attributable to various discrete tax matters		16		(4)
Adjusted net income attributable to the parent			$               -		$             35
Diluted shares - as reported			145.8		145.7
Adjusted diluted shares			145.8		145.7
Diluted adjusted EPS			$               -		$          0.24

 

DANA INCORPORATED
Reconciliation of Net Income (Loss) Attributable to the Parent Company to
Adjusted Net Income Attributable to the Parent Company and
Diluted Adjusted EPS (Unaudited)
For the Year Ended December 31, 2021 and 2020
(In millions, except per share amounts)
			Year Ended
			December 31,
			2021		2020
Net income (loss) attributable to parent company			$           197		$            (31)
Items impacting income before income taxes:
	Amortization		20		17
	Restructuring charges, net				33
	Strategic transaction expenses		13		21
	(Gain) loss on investment in Hyliion		20		(33)
	Loss on disposal group held for sale		7
	Loss on extinguishment of debt		29		8
	Loss on de-designation of fixed-to-fixed cross currency swaps		9
	Gain on sale leaseback		(66)
	Other items		3
	Impairment of goodwill				31
Items impacting income taxes:
	Net income tax benefit on items above				(7)
	Income tax expense attributable to various discrete tax matters		11		18
Adjusted net income attributable to the parent			$           243		$             57
Diluted shares - as reported			146.2		144.5
Adjusted diluted shares			146.2		145.1
Diluted adjusted EPS			$          1.66		$          0.39

 

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SOURCE Dana Incorporated

FAQ

What were Dana's sales figures for 2021?

Dana reported sales of $8.9 billion for 2021, an increase of $1.8 billion from 2020.

How much was Dana's net income in 2021?

Dana's net income attributable to the company was $197 million in 2021, recovering from a loss of $31 million in 2020.

What are Dana's earnings per share for 2021?

Dana reported diluted EPS of $1.35 for 2021, compared to a net loss per share of $0.21 in 2020.

What is Dana's 2022 sales guidance?

Dana projects sales for 2022 to be between $9.6 billion and $10.1 billion.

How did Dana's free cash flow change in 2021?

Dana reported a free cash flow use of $211 million in 2021, compared to a cash flow of $60 million in 2020.