Dana First-Quarter 2015 Results Reflect Continued Strong Operating Performance, Raises Margin Guidance for Full-Year 2015
First-Quarter Highlights
- Sales of
$1.61 billion , 4 percent higher than last year after adjusting for currency and the divestiture ofVenezuela operations - Net income attributable to Dana of
$63 million , up 85 percent over last year - Diluted adjusted earnings per share of
$0.50 , an increase of$0.18 , or 56 percent, compared with last year - Adjusted EBITDA of
$176 million , providing a margin of 10.9 percent, 110 basis points higher than last year - Repurchased
$63 million of common stock - Earns 2015
Automotive News PACEInnovative Partnership Award
Sales for the quarter were
Net income for the quarter improved to
Adjusted EBITDA for the quarter was
Free cash flow was a use of
"Dana's first-quarter results continue to show improving performance despite ongoing currency headwinds and volume challenges in
Share Repurchase Program
During the first quarter of 2015, Dana repurchased an additional
Business Unit Results for the First Quarter
Light Vehicle Driveline Technologies
Sales were
Segment EBITDA for the quarter was
Commercial Vehicle Driveline Technologies
Sales were
Segment EBITDA for the first quarter of 2015 was
Off-Highway Driveline Technologies
Sales were
Power Technologies
Sales were
Company Adjusts 2015 Guidance for Currency Translation, Raises Adjusted EBITDA Margin
In response to the continued strengthening of the U.S. dollar against foreign currencies in regions where the company maintains significant operations, Dana is adjusting its expectation for full-year 2015 sales. While demand in both the light-vehicle and commercial-vehicle markets in
- Sales of
$6.3 to 6.4 billion ; - Adjusted EBITDA of
$740 to $750 million ; - Adjusted EBITDA as a percent of sales of approximately 11.7 percent;
- Diluted adjusted EPS of approximately
$2.05 to $2.15 (excluding the impact of share repurchases afterMar. 31, 2015 ); - Capital spending of
$300 to $320 million ; and - Free cash flow of
$190 to $220 million .
Dana Earns 2015
This week, Dana was honored with the 2015
In
The company's Off-Highway Driveline facility in Como,
In addition, Dana's Power Technology facility in
Company Showcases New Technologies for Commercial Vehicles
Last month at the 2015 Mid-America Trucking Show (MATS), Dana displayed its comprehensive lineup of driveline technologies optimized for engine downspeeding, along with additional innovations engineered to increase efficiency and fuel economy. Most notably, the company's new Spicer® AdvanTEK® Dual Range Disconnect™ technologies for tandem axles used in Class 8 linehaul applications enables further engine downspeeding and improves powertrain efficiency from 2 to 5 percent over conventional tandem axles on the market today offering significant fuel savings without sacrificing performance.
The company also introduced a new family of single-reduction drive axles for North American commercial vehicles that leverages its industry-leading AdvanTEK technology, a common head-assembly architecture, and other proven Spicer® axle technologies to reduce weight, improve efficiency, and enhance durability. Lighter weight than competing axles on the market today, these axles are designed with numerous innovations, including increased power density and efficiency in a smaller package; smooth interior surfaces that decrease churning losses; superior machining and castings for extended durability; and an efficient lubrication system that requires 10 percent less lube.
Dana to Host Conference Call at
Dana will discuss its first quarter in a conference call at
An audio recording of the webcast will be available after
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, equity grant expense, restructuring expense and other nonrecurring items (gain/loss on debt extinguishment, pension settlements 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 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 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 net 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
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
DANA HOLDING CORPORATION |
||||||
Consolidated Statement of Operations (Unaudited) |
||||||
For the Three Months Ended March 31, 2015 and 2014 |
||||||
Three Months Ended |
||||||
(In millions except per share amounts) |
March 31, |
|||||
2015 |
2014 |
|||||
Net sales |
$ 1,608 |
$ 1,688 |
||||
Costs and expenses |
||||||
Cost of sales |
1,380 |
1,454 |
||||
Selling, general and administrative expenses |
100 |
105 |
||||
Amortization of intangibles |
5 |
13 |
||||
Restructuring charges, net |
1 |
9 |
||||
Loss on extinguishment of debt |
(2) |
|||||
Other income (expense), net |
12 |
(6) |
||||
Income from continuing operations before |
||||||
interest expense and income taxes |
132 |
101 |
||||
Interest expense |
28 |
30 |
||||
Income from continuing operations before |
||||||
income taxes |
104 |
71 |
||||
Income tax expense |
31 |
34 |
||||
Equity in earnings of affiliates |
1 |
1 |
||||
Income from continuing operations |
74 |
38 |
||||
Loss from discontinued operations |
(1) |
|||||
Net income |
74 |
37 |
||||
Less: Noncontrolling interests net income |
11 |
3 |
||||
Net income attributable to the parent company |
63 |
34 |
||||
Preferred stock dividend requirements |
3 |
|||||
Net income available to common stockholders |
$ 63 |
$ 31 |
||||
Net income per share available to parent |
||||||
company common stockholders: |
||||||
Basic: |
||||||
Income from continuing operations |
$ 0.38 |
$ 0.21 |
||||
Loss from discontinued operations |
$ - |
$ - |
||||
Net income |
$ 0.38 |
$ 0.21 |
||||
Diluted: |
||||||
Income from continuing operations |
$ 0.38 |
$ 0.19 |
||||
Loss from discontinued operations |
$ - |
$ - |
||||
Net income |
$ 0.38 |
$ 0.19 |
||||
Weighted-average common shares outstanding |
||||||
Basic |
164.7 |
150.7 |
||||
Diluted |
166.0 |
177.0 |
||||
Dividends declared per common share |
$ 0.05 |
$ 0.05 |
DANA HOLDING CORPORATION |
||||||||
Consolidated Statement of Comprehensive Income (Unaudited) |
||||||||
For the Three Months Ended March 31, 2015 and 2014 |
||||||||
Three Months Ended |
||||||||
(In millions) |
March 31, |
|||||||
2015 |
2014 |
|||||||
Net income |
$ 74 |
$ 37 |
||||||
Less: Noncontrolling interests net income |
11 |
3 |
||||||
Net income attributable to the parent company |
63 |
34 |
||||||
Other comprehensive income (loss) attributable to |
||||||||
the parent company, net of tax: |
||||||||
Currency translation adjustments |
(99) |
(12) |
||||||
Hedging gains and losses |
(1) |
|||||||
Investment and other gains and losses |
1 |
|||||||
Defined benefit plans |
16 |
7 |
||||||
Other comprehensive loss attributable |
||||||||
to the parent company |
(83) |
(5) |
||||||
Other comprehensive income (loss) attributable to |
||||||||
noncontrolling interests, net of tax: |
||||||||
Currency translation adjustments |
(1) |
|||||||
Defined benefit plans |
1 |
|||||||
Other comprehensive income (loss) attributable to |
||||||||
noncontrolling interests |
1 |
(1) |
||||||
Total comprehensive income (loss) attributable |
||||||||
to the parent company |
(20) |
29 |
||||||
Total comprehensive income attributable |
||||||||
to noncontrolling interests |
12 |
2 |
||||||
Total comprehensive income (loss) |
$ (8) |
$ 31 |
DANA HOLDING CORPORATION |
|||||
Consolidated Balance Sheet (Unaudited) |
|||||
As of March 31, 2015 and December 31, 2014 |
|||||
(In millions except share and per share amounts) |
March 31, |
December 31, |
|||
2015 |
2014 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ 885 |
$ 1,121 |
|||
Marketable securities |
165 |
169 |
|||
Accounts receivable |
|||||
Trade, less allowance for doubtful accounts of $6 in both 2015 and 2014 |
880 |
755 |
|||
Other |
119 |
117 |
|||
Inventories |
686 |
654 |
|||
Other current assets |
125 |
111 |
|||
Current assets of disposal group held for sale |
27 |
||||
Total current assets |
2,860 |
2,954 |
|||
Goodwill |
79 |
90 |
|||
Intangibles |
152 |
169 |
|||
Other noncurrent assets |
313 |
337 |
|||
Investments in affiliates |
203 |
204 |
|||
Property, plant and equipment, net |
1,131 |
1,176 |
|||
Total assets |
$ 4,738 |
$ 4,930 |
|||
Liabilities and equity |
|||||
Current liabilities |
|||||
Notes payable, including current portion of long-term debt |
$ 53 |
$ 65 |
|||
Accounts payable |
866 |
791 |
|||
Accrued payroll and employee benefits |
127 |
158 |
|||
Taxes on income |
40 |
32 |
|||
Other accrued liabilities |
182 |
194 |
|||
Current liabilities of disposal group held for sale |
21 |
||||
Total current liabilities |
1,268 |
1,261 |
|||
Long-term debt |
1,572 |
1,613 |
|||
Pension and postretirement obligations |
532 |
580 |
|||
Other noncurrent liabilities |
269 |
279 |
|||
Noncurrent liabilities of disposal group held for sale |
17 |
||||
Total liabilities |
3,641 |
3,750 |
|||
Commitments and contingencies |
|||||
Parent company stockholders' equity |
|||||
Preferred stock, 50,000,000 shares authorized, $0.01 par value, |
|||||
zero shares outstanding |
- |
- |
|||
Common stock, 450,000,000 shares authorized, $0.01 par value, |
|||||
163,458,091 and 166,070,057 shares outstanding |
2 |
2 |
|||
Additional paid-in capital |
2,644 |
2,640 |
|||
Accumulated deficit |
(477) |
(532) |
|||
Treasury stock, at cost (4,622,370 and 1,588,990 shares) |
(98) |
(33) |
|||
Accumulated other comprehensive loss |
(1,080) |
(997) |
|||
Total parent company stockholders' equity |
991 |
1,080 |
|||
Noncontrolling equity |
106 |
100 |
|||
Total equity |
1,097 |
1,180 |
|||
Total liabilities and equity |
$ 4,738 |
$ 4,930 |
DANA HOLDING CORPORATION |
|||||
Consolidated Statement of Cash Flows (Unaudited) |
|||||
For the Three Months Ended March 31, 2015 and 2014 |
|||||
Three Months Ended |
|||||
(In millions) |
March 31, |
||||
2015 |
2014 |
||||
Operating activities |
|||||
Net income |
$ 74 |
$ 37 |
|||
Depreciation |
39 |
40 |
|||
Amortization of intangibles |
6 |
15 |
|||
Amortization of deferred financing charges |
1 |
1 |
|||
Call premium on senior notes |
2 |
||||
Unremitted earnings of affiliates |
1 |
1 |
|||
Stock compensation expense |
3 |
4 |
|||
Deferred income taxes |
5 |
(1) |
|||
Pension contributions, net |
(5) |
(2) |
|||
Interest payment received on payment-in-kind note receivable |
40 |
||||
Change in working capital |
(141) |
(114) |
|||
Other, net |
(5) |
10 |
|||
Net cash provided by (used in) operating activities (1) |
(20) |
31 |
|||
Investing activities |
|||||
Purchases of property, plant and equipment (1) |
(62) |
(67) |
|||
Principal payment received on payment-in-kind note receivable |
35 |
||||
Purchases of marketable securities |
(11) |
(35) |
|||
Proceeds from sales of marketable securities |
10 |
||||
Proceeds from maturities of marketable securities |
6 |
2 |
|||
Other |
(2) |
4 |
|||
Net cash used in investing activities |
(59) |
(61) |
|||
Financing activities |
|||||
Net change in short-term debt |
6 |
(10) |
|||
Repayment of letters of credit |
(4) |
||||
Proceeds from long-term debt |
18 |
1 |
|||
Repayment of long-term debt |
(56) |
(12) |
|||
Call premium on senior notes |
(2) |
||||
Dividends paid to preferred stockholders |
(2) |
||||
Distributions to noncontrolling interests |
(1) |
(1) |
|||
Repurchases of common stock |
(63) |
(64) |
|||
Other |
(2) |
1 |
|||
Net cash used in financing activities |
(104) |
(87) |
|||
Net decrease in cash and cash equivalents |
(183) |
(117) |
|||
Cash and cash equivalents − beginning of period |
1,121 |
1,256 |
|||
Effect of exchange rate changes on cash balances |
(53) |
(23) |
|||
Cash and cash equivalents − end of period |
$ 885 |
$ 1,116 |
|||
(1) |
Free cash flow of ($82) in 2015 and ($36) in 2014 is the sum of net cash provided by (used in) operating activities reduced by the purchases of property, plant and equipment. |
DANA HOLDING CORPORATION |
|||||
Segment Sales & Segment EBITDA (Unaudited) |
|||||
For the Three Months Ended March 31, 2015 and 2014 |
|||||
Three Months Ended |
|||||
(In millions) |
March 31, |
||||
2015 |
2014 |
||||
Sales |
|||||
Light Vehicle |
$ 637 |
$ 618 |
|||
Commercial Vehicle |
433 |
457 |
|||
Off-Highway |
284 |
341 |
|||
Power Technologies |
254 |
272 |
|||
Total Sales |
$ 1,608 |
$ 1,688 |
|||
Segment EBITDA |
|||||
Light Vehicle |
$ 64 |
$ 30 |
|||
Commercial Vehicle |
35 |
44 |
|||
Off-Highway |
39 |
42 |
|||
Power Technologies |
38 |
44 |
|||
Total Segment EBITDA |
176 |
160 |
|||
Corporate expense and other items, net |
5 |
||||
Adjusted EBITDA |
$ 176 |
$ 165 |
DANA HOLDING CORPORATION |
||||
Reconciliation of Segment and Adjusted EBITDA |
||||
to Net Income (Unaudited) |
||||
For the Three Months Ended March 31, 2015 and 2014 |
||||
Three Months Ended |
||||
(In millions) |
March 31, |
|||
2015 |
2014 |
|||
Segment EBITDA |
$ 176 |
$ 160 |
||
Corporate expense and other items, net |
5 |
|||
Adjusted EBITDA |
176 |
165 |
||
Depreciation |
(39) |
(40) |
||
Amortization of intangibles |
(6) |
(15) |
||
Restructuring |
(1) |
(9) |
||
Stock compensation expense |
(3) |
(4) |
||
Strategic transaction expenses and other items |
(1) |
(1) |
||
Gain on derecognition of noncontrolling interest |
5 |
|||
Loss on extinguishment of debt |
(2) |
|||
Recognition of unrealized gain on payment-in-kind note receivable |
2 |
|||
Interest expense, net |
(25) |
(27) |
||
Income from continuing operations before income taxes |
104 |
71 |
||
Income tax expense |
31 |
34 |
||
Equity in earnings of affiliates |
1 |
1 |
||
Income from continuing operations |
74 |
38 |
||
Loss from discontinued operations |
(1) |
|||
Net income |
$ 74 |
$ 37 |
DANA HOLDING CORPORATION |
|||||
Diluted Adjusted EPS (Unaudited) |
|||||
For the Three Months Ended March 31, 2015 and 2014 |
|||||
Three Months Ended |
|||||
(In millions except per share amounts) |
March 31, |
||||
2015 |
2014 |
||||
Net income attributable to parent company |
$ 63 |
$ 34 |
|||
Restructuring charges (1) |
1 |
9 |
|||
Amortization of intangibles (1) |
4 |
11 |
|||
Non-recurring items (1): |
|||||
Noncontrolling interests adjustments |
4 |
||||
Loss on extinguishment of debt |
2 |
||||
Nonrecurring tax expense |
8 |
||||
Other items |
1 |
3 |
|||
Adjusted net income |
$ 83 |
$ 57 |
|||
Diluted shares - as reported |
166 |
177 |
|||
Adjusted diluted shares |
166 |
177 |
|||
Diluted adjusted EPS |
$ 0.50 |
$ 0.32 |
|||
(1) Amounts are net of associated tax effect. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dana-first-quarter-2015-results-reflect-continued-strong-operating-performance-raises-margin-guidance-for-full-year-2015-300070729.html
SOURCE
Investor Contact - Craig Barber: 419.887.5166; Media Contact - Jeff Cole: 419.887.3535