Dana Incorporated Announces Revenue and Profit Growth in Third Quarter, Affirms Full-year Guidance Ranges
Highlights
- Sales of
$1.98 billion , an 8 percent increase of$147 million - Net income attributable to Dana of
$95 million ; diluted EPS of$0.65 - Adjusted EBITDA of
$240 million , providing a margin of 12.1 percent - Profit increase of
$24 million over third quarter last year - Margin increase of 30 basis points over third quarter last year
- Diluted adjusted EPS of
$0.77 , an improvement of 31 percent over third quarter last year - Operating cash flow of
$124 million ; free cash flow of$34 million - Announced strategic acquisition of Oerlikon Drive Systems, enhancing electrification capabilities and off-highway portfolio
- Significant new business wins and key production launches
- Nominated eighth consecutive year for
Automotive News PACE Award
"In the third quarter, Dana continued its strong revenue growth, a result of improved end-market demand, market share gains, and the launch of our strong sales backlog, including our class-leading Spicer SmartConnect™ all-wheel drive system featuring Spicer® AdvanTEK® axle technology, which was recently named a finalist for the prestigious PACE Award," said
Third-quarter 2018 Financial Results
Sales for the third quarter of 2018 totaled
Dana reported net income of
Diluted earnings per share were
Adjusted EBITDA for the third quarter of 2018 was
Diluted adjusted earnings per share were
Operating cash flow in the third quarter of 2018 was
Company Affirms 2018 Guidance Ranges
Sales for this year are expected to be at the high end of the company's guidance range, resulting in 12 percent growth over last year. The year-over-year improvement is due principally to continued strong end-market demand and conversion of its new-business backlog. With the increased level of commodity cost inflation, associated recoveries are expected to comprise approximately
Adjusted EBITDA in 2018 is now expected to improve by approximately
Free cash flow is expected to be approximately 3 percent of sales due to slightly lower adjusted EBITDA and a higher level of working capital required by accelerating customer demand and the timing of new business ramp-up.
"As we finish strong this year, we are positioning our operations for continued profitable growth," said
2018 Full-year Financial Targets
- Sales of
$7,750 to $8,050 million ; - Adjusted EBITDA of
$950 to $1,010 million , an implied adjusted EBITDA margin of approximately 12.0 percent; - Diluted adjusted EPS1 of
$2.75 to $3.05 ; - Operating cash flow of approximately 7.0 percent of sales;
- Capital spending of approximately 4.0 percent of sales; and
- Free cash flow of approximately 3.0 percent of sales.
1 Net income and diluted EPS guidance are not provided, as discussed below in Non-GAAP Financial Information.
Dana to Host Conference Call at
Dana will discuss its third-quarter results 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 net income before interest, 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 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. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook 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. 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.
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 is a world leader in highly engineered solutions for improving the efficiency, performance, and sustainability of powered vehicles and machinery. Dana supports the passenger vehicle, commercial truck, and off-highway markets, as well as industrial and stationary equipment applications. Founded in 1904, Dana employs more than 30,000 people in 33 countries on six continents who are committed to delivering long-term value to customers. Based in
DANA INCORPORATED |
||||||
Consolidated Statement of Operations (Unaudited) |
||||||
For the Three Months Ended September 30, 2018 and 2017 |
||||||
Three Months Ended |
||||||
(In millions, except per share amounts) |
September 30, |
|||||
2018 |
2017 |
|||||
Net sales |
$ 1,978 |
$ 1,831 |
||||
Costs and expenses |
||||||
Cost of sales |
1,692 |
1,562 |
||||
Selling, general and administrative expenses |
119 |
124 |
||||
Amortization of intangibles |
2 |
4 |
||||
Restructuring charges, net |
9 |
2 |
||||
Other expense, net |
(9) |
|||||
Earnings before interest and income taxes |
147 |
139 |
||||
Loss on extinguishment of debt |
(13) |
|||||
Interest income |
3 |
3 |
||||
Interest expense |
24 |
25 |
||||
Earnings before income taxes |
126 |
104 |
||||
Income tax expense |
31 |
33 |
||||
Equity in earnings of affiliates |
1 |
2 |
||||
Net income |
96 |
73 |
||||
Less: Noncontrolling interests net income |
1 |
3 |
||||
Less: Redeemable noncontrolling interests net income |
1 |
|||||
Net income attributable to the parent company |
$ 95 |
$ 69 |
||||
Net income per share available to common stockholders |
||||||
Basic |
$ 0.66 |
$ 0.47 |
||||
Diluted |
$ 0.65 |
$ 0.46 |
||||
Weighted-average shares outstanding - Basic |
144.7 |
145.0 |
||||
Weighted-average shares outstanding - Diluted |
145.9 |
146.9 |
||||
Cash dividends declared per share |
$ 0.10 |
$ 0.06 |
DANA INCORPORATED |
||||||
Consolidated Statement of Operations (Unaudited) |
||||||
For the Nine Months Ended September 30, 2018 and 2017 |
||||||
Nine Months Ended |
||||||
(In millions, except per share amounts) |
September 30, |
|||||
2018 |
2017 |
|||||
Net sales |
$ 6,170 |
$ 5,372 |
||||
Costs and expenses |
||||||
Cost of sales |
5,269 |
4,562 |
||||
Selling, general and administrative expenses |
383 |
377 |
||||
Amortization of intangibles |
6 |
9 |
||||
Restructuring charges, net |
17 |
14 |
||||
Impairment of indefinite-lived intangible asset |
(20) |
|||||
Adjustment in fair value of disposal group held for sale |
3 |
|||||
Other expense, net |
(19) |
(12) |
||||
Earnings before interest and income taxes |
459 |
398 |
||||
Loss on extinguishment of debt |
(19) |
|||||
Interest income |
8 |
8 |
||||
Interest expense |
71 |
79 |
||||
Earnings before income taxes |
396 |
308 |
||||
Income tax expense |
75 |
94 |
||||
Equity in earnings of affiliates |
13 |
12 |
||||
Net income |
334 |
226 |
||||
Less: Noncontrolling interests net income |
6 |
13 |
||||
Less: Redeemable noncontrolling interests net income (loss) |
1 |
(2) |
||||
Net income attributable to the parent company |
$ 327 |
$ 215 |
||||
Net income per share available to common stockholders |
||||||
Basic |
$ 2.25 |
$ 1.46 |
||||
Diluted |
$ 2.23 |
$ 1.45 |
||||
Weighted-average shares outstanding - Basic |
145.1 |
144.8 |
||||
Weighted-average shares outstanding - Diluted |
146.6 |
146.5 |
||||
Cash dividends declared per share |
$ 0.30 |
$ 0.18 |
DANA INCORPORATED |
|||||||
Consolidated Statement of Comprehensive Income (Unaudited) |
|||||||
For the Three Months Ended September 30, 2018 and 2017 |
|||||||
Three Months Ended |
|||||||
(In millions) |
September 30, |
||||||
2018 |
2017 |
||||||
Net income |
$ 96 |
$ 73 |
|||||
Other comprehensive income (loss), net of tax: |
|||||||
Currency translation adjustments |
(19) |
(1) |
|||||
Hedging gains and losses |
3 |
(14) |
|||||
Defined benefit plans |
21 |
19 |
|||||
Other comprehensive income |
5 |
4 |
|||||
Total comprehensive income |
101 |
77 |
|||||
Less: Comprehensive income attributable to noncontrolling interests |
(5) |
||||||
Less: Comprehensive income attributable to redeemable noncontrolling interests |
(1) |
||||||
Comprehensive income attributable to the parent company |
$ 101 |
$ 71 |
DANA INCORPORATED |
|||||||
Consolidated Statement of Comprehensive Income (Unaudited) |
|||||||
For the Nine Months Ended September 30, 2018 and 2017 |
|||||||
Nine Months Ended |
|||||||
(In millions) |
September 30, |
||||||
2018 |
2017 |
||||||
Net income |
$ 334 |
$ 226 |
|||||
Other comprehensive income (loss), net of tax: |
|||||||
Currency translation adjustments |
(65) |
(2) |
|||||
Hedging gains and losses |
(11) |
(13) |
|||||
Defined benefit plans |
34 |
29 |
|||||
Other comprehensive income (loss) |
(42) |
14 |
|||||
Total comprehensive income |
292 |
240 |
|||||
Less: Comprehensive income attributable to noncontrolling interests |
(18) |
||||||
Less: Comprehensive income attributable to redeemable noncontrolling interests |
|||||||
Comprehensive income attributable to the parent company |
$ 292 |
$ 222 |
DANA INCORPORATED |
|||||
Consolidated Balance Sheet (Unaudited) |
|||||
As of September 30, 2018 and December 31, 2017 |
|||||
(In millions, except share and per share amounts) |
September 30, |
December 31, |
|||
2018 |
2017 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ 322 |
$ 603 |
|||
Marketable securities |
36 |
40 |
|||
Accounts receivable |
|||||
Trade, less allowance for doubtful accounts of $8 in 2018 and 2017 |
1,228 |
994 |
|||
Other |
173 |
172 |
|||
Inventories |
1,100 |
969 |
|||
Other current assets |
103 |
97 |
|||
Current assets of disposal group held for sale |
7 |
||||
Total current assets |
2,962 |
2,882 |
|||
Goodwill |
249 |
127 |
|||
Intangibles |
173 |
174 |
|||
Deferred tax assets |
443 |
420 |
|||
Other noncurrent assets |
76 |
71 |
|||
Investments in affiliates |
216 |
163 |
|||
Property, plant and equipment, net |
1,828 |
1,807 |
|||
Total assets |
$ 5,947 |
$ 5,644 |
|||
Liabilities and equity |
|||||
Current liabilities |
|||||
Short-term debt and current portion of long-term debt |
$ 36 |
$ 40 |
|||
Accounts payable |
1,246 |
1,165 |
|||
Accrued payroll and employee benefits |
196 |
219 |
|||
Taxes on income |
67 |
53 |
|||
Other accrued liabilities |
254 |
220 |
|||
Current liabilities of disposal group held for sale |
5 |
||||
Total current liabilities |
1,799 |
1,702 |
|||
Long-term debt, less debt issuance costs of $19 in 2018 and $22 in 2017 |
1,760 |
1,759 |
|||
Pension and postretirement obligations |
553 |
607 |
|||
Other noncurrent liabilities |
368 |
413 |
|||
Noncurrent liabilities of disposal group held for sale |
2 |
||||
Total liabilities |
4,480 |
4,483 |
|||
Commitments and contingencies |
|||||
Redeemable noncontrolling interests |
103 |
47 |
|||
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, |
|||||
144,662,794 and 144,984,050 shares outstanding |
2 |
2 |
|||
Additional paid-in capital |
2,364 |
2,354 |
|||
Retained earnings |
371 |
86 |
|||
Treasury stock, at cost (8,341,922 and 7,001,017 shares) |
(119) |
(87) |
|||
Accumulated other comprehensive loss |
(1,379) |
(1,342) |
|||
Total parent company stockholders' equity |
1,239 |
1,013 |
|||
Noncontrolling interests |
125 |
101 |
|||
Total equity |
1,364 |
1,114 |
|||
Total liabilities and equity |
$ 5,947 |
$ 5,644 |
DANA INCORPORATED |
|||||
Consolidated Statement of Cash Flows (Unaudited) |
|||||
For the Three Months Ended September 30, 2018 and 2017 |
|||||
Three Months Ended |
|||||
(In millions) |
September 30, |
||||
2018 |
2017 |
||||
Operating activities |
|||||
Net income |
$ 96 |
$ 73 |
|||
Depreciation |
63 |
58 |
|||
Amortization of intangibles |
3 |
4 |
|||
Amortization of deferred financing charges |
1 |
1 |
|||
Call premium on debt |
10 |
||||
Write-off of deferred financing costs |
3 |
||||
Earnings of affiliates, net of dividends received |
4 |
||||
Stock compensation expense |
4 |
7 |
|||
Deferred income taxes |
(2) |
5 |
|||
Pension contributions, net |
1 |
(1) |
|||
Change in working capital |
(37) |
24 |
|||
Other, net |
(5) |
(7) |
|||
Net cash provided by operating activities (1) |
124 |
181 |
|||
Investing activities |
|||||
Purchases of property, plant and equipment (1) |
(90) |
(82) |
|||
Proceeds from sale of subsidiary, net of cash disposed |
(6) |
||||
Purchases of marketable securities |
(7) |
(6) |
|||
Proceeds from maturities of marketable securities |
7 |
3 |
|||
Other, net |
(2) |
||||
Net cash used in investing activities |
(98) |
(85) |
|||
Financing activities |
|||||
Net change in short-term debt |
(8) |
(17) |
|||
Proceeds from long-term debt |
276 |
||||
Repayment of long-term debt |
(6) |
(352) |
|||
Call premium on debt |
(10) |
||||
Deferred financing payments |
(3) |
||||
Dividends paid to common stockholders |
(14) |
(9) |
|||
Distributions to noncontrolling interests |
(3) |
(4) |
|||
Contributions from noncontrolling interests |
22 |
||||
Payments to acquire redeemable noncontrolling interests |
(43) |
||||
Other, net |
3 |
||||
Net cash used in financing activities |
(52) |
(116) |
|||
Net decrease in cash, cash equivalents and restricted cash |
(26) |
(20) |
|||
Cash, cash equivalents and restricted cash − beginning of period (2) |
343 |
577 |
|||
Effect of exchange rate changes on cash balances |
11 |
||||
Less: Cash contributed to disposal group held for sale |
10 |
||||
Cash, cash equivalents and restricted cash − end of period (2) |
$ 327 |
$ 568 |
|||
(1) |
Free cash flow of $34 in 2018 and $99 in 2017 is the sum of net cash provided by |
||||
operating activities reduced by the purchases of property, plant and equipment. |
|||||
(2) |
Includes restricted cash of $5 at September 30, 2018, $4 at June 30, 2018, |
||||
$10 at September 30, 2017 and $9 at June 30, 2017. |
DANA INCORPORATED |
|||||
Consolidated Statement of Cash Flows (Unaudited) |
|||||
For the Nine Months Ended September 30, 2018 and 2017 |
|||||
Nine Months Ended |
|||||
(In millions) |
September 30, |
||||
2018 |
2017 |
||||
Operating activities |
|||||
Net income |
$ 334 |
$ 226 |
|||
Depreciation |
187 |
162 |
|||
Amortization of intangibles |
8 |
10 |
|||
Amortization of deferred financing charges |
3 |
4 |
|||
Call premium on debt |
15 |
||||
Write-off of deferred financing costs |
4 |
||||
Earnings of affiliates, net of dividends received |
5 |
2 |
|||
Stock compensation expense |
13 |
17 |
|||
Deferred income taxes |
(47) |
10 |
|||
Pension contributions, net |
2 |
(4) |
|||
Impairment of indefinite-lived intangible asset |
20 |
||||
Gain on sale of subsidiary |
(3) |
||||
Adjustment in fair value of disposal group held for sale |
(2) |
||||
Change in working capital |
(269) |
(80) |
|||
Other, net |
(17) |
(2) |
|||
Net cash provided by operating activities (1) |
237 |
361 |
|||
Investing activities |
|||||
Purchases of property, plant and equipment (1) |
(235) |
(251) |
|||
Acquisition of businesses, net of cash acquired |
(151) |
(182) |
|||
Proceeds from previous acquisition |
9 |
||||
Proceeds from sale of subsidiary, net of cash disposed |
(6) |
3 |
|||
Purchases of marketable securities |
(36) |
(23) |
|||
Proceeds from sales of marketable securities |
6 |
1 |
|||
Proceeds from maturities of marketable securities |
30 |
16 |
|||
Other, net |
(2) |
(1) |
|||
Net cash used in investing activities |
(385) |
(437) |
|||
Financing activities |
|||||
Net change in short-term debt |
(13) |
(96) |
|||
Proceeds from long-term debt |
676 |
||||
Repayment of long-term debt |
(8) |
(640) |
|||
Call premium on debt |
(15) |
||||
Deferred financing payments |
(9) |
||||
Dividends paid to common stockholders |
(43) |
(26) |
|||
Distributions to noncontrolling interests |
(7) |
(7) |
|||
Repurchases of common stock |
(25) |
||||
Contributions from noncontrolling interests |
22 |
||||
Payments to acquire redeemable noncontrolling interests |
(43) |
||||
Other, net |
(5) |
4 |
|||
Net cash used in financing activities |
(122) |
(113) |
|||
Net decrease in cash, cash equivalents and restricted cash |
(270) |
(189) |
|||
Cash, cash equivalents and restricted cash − beginning of period (2) |
610 |
716 |
|||
Effect of exchange rate changes on cash balances |
(13) |
41 |
|||
Cash, cash equivalents and restricted cash − end of period (2) |
$ 327 |
$ 568 |
|||
(1) |
Free cash flow of $2 in 2018 and $110 in 2017 is the sum of net cash provided by |
||||
operating activities reduced by the purchases of property, plant and equipment. |
|||||
(2) |
Includes restricted cash of $5 at September 30, 2018, $7 at December 31, 2017, |
||||
$10 at September 30, 2017 and $9 at December 31, 2016. |
DANA INCORPORATED |
|||||
Segment Sales and Segment EBITDA (Unaudited) |
|||||
For the Three Months Ended September 30, 2018 and 2017 |
|||||
Three Months Ended |
|||||
(In millions) |
September 30, |
||||
2018 |
2017 |
||||
Sales |
|||||
Light Vehicle |
$ 879 |
$ 805 |
|||
Commercial Vehicle |
406 |
371 |
|||
Off-Highway |
425 |
384 |
|||
Power Technologies |
268 |
271 |
|||
Total Sales |
$ 1,978 |
$ 1,831 |
|||
Segment EBITDA |
|||||
Light Vehicle |
$ 102 |
$ 91 |
|||
Commercial Vehicle |
39 |
33 |
|||
Off-Highway |
69 |
55 |
|||
Power Technologies |
33 |
41 |
|||
Total Segment EBITDA |
243 |
220 |
|||
Corporate expense and other items, net |
(3) |
(4) |
|||
Adjusted EBITDA |
$ 240 |
$ 216 |
DANA INCORPORATED |
|||||
Segment Sales and Segment EBITDA (Unaudited) |
|||||
For the Nine Months Ended September 30, 2018 and 2017 |
|||||
Nine Months Ended |
|||||
(In millions) |
September 30, |
||||
2018 |
2017 |
||||
Sales |
|||||
Light Vehicle |
$ 2,702 |
$ 2,369 |
|||
Commercial Vehicle |
1,217 |
1,057 |
|||
Off-Highway |
1,402 |
1,107 |
|||
Power Technologies |
849 |
839 |
|||
Total Sales |
$ 6,170 |
$ 5,372 |
|||
Segment EBITDA |
|||||
Light Vehicle |
$ 297 |
$ 273 |
|||
Commercial Vehicle |
114 |
91 |
|||
Off-Highway |
220 |
157 |
|||
Power Technologies |
117 |
132 |
|||
Total Segment EBITDA |
748 |
653 |
|||
Corporate expense and other items, net |
(14) |
(15) |
|||
Adjusted EBITDA |
$ 734 |
$ 638 |
DANA INCORPORATED |
||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) |
||||
For the Three Months Ended September 30, 2018 and 2017 |
||||
Three Months Ended |
||||
(In millions) |
September 30, |
|||
2018 |
2017 |
|||
Segment EBITDA |
$ 243 |
$ 220 |
||
Corporate expense and other items, net |
(3) |
(4) |
||
Adjusted EBITDA |
240 |
216 |
||
Depreciation |
(63) |
(58) |
||
Amortization of intangibles |
(3) |
(4) |
||
Non-service cost components of pension and OPEB costs |
(3) |
|||
Restructuring |
(9) |
(2) |
||
Stock compensation expense |
(4) |
(7) |
||
Strategic transaction expenses |
(6) |
(3) |
||
Amounts attributable to previously divested/closed operations |
(1) |
|||
Other items |
(5) |
(2) |
||
Earnings before interest and income taxes |
147 |
139 |
||
Loss on extinguishment of debt |
(13) |
|||
Interest expense |
(24) |
(25) |
||
Interest income |
3 |
3 |
||
Earnings before income taxes |
126 |
104 |
||
Income tax expense |
31 |
33 |
||
Equity in earnings of affiliates |
1 |
2 |
||
Net income |
$ 96 |
$ 73 |
DANA INCORPORATED |
||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) |
||||
For the Nine Months Ended September 30, 2018 and 2017 |
||||
Nine Month Ended |
||||
(In millions) |
September 30, |
|||
2018 |
2017 |
|||
Segment EBITDA |
$ 748 |
$ 653 |
||
Corporate expense and other items, net |
(14) |
(15) |
||
Adjusted EBITDA |
734 |
638 |
||
Depreciation |
(187) |
(162) |
||
Amortization of intangibles |
(8) |
(10) |
||
Non-service cost components of pension and OPEB costs |
(10) |
|||
Restructuring |
(17) |
(14) |
||
Stock compensation expense |
(13) |
(17) |
||
Strategic transaction expenses, net of transaction breakup fee income |
(13) |
(20) |
||
Acquisition related inventory adjustments |
(14) |
|||
Impairment of indefinite-lived intangible asset |
(20) |
|||
Adjustment in fair value of disposal group held for sale |
3 |
|||
Amounts attributable to previously divested/closed operations |
2 |
|||
Other items |
(10) |
(5) |
||
Earnings before interest and income taxes |
459 |
398 |
||
Loss on extinguishment of debt |
(19) |
|||
Interest expense |
(71) |
(79) |
||
Interest income |
8 |
8 |
||
Earnings before income taxes |
396 |
308 |
||
Income tax expense |
75 |
94 |
||
Equity in earnings of affiliates |
13 |
12 |
||
Net income |
$ 334 |
$ 226 |
DANA INCORPORATED |
|||||
Diluted Adjusted EPS (Unaudited) |
|||||
For the Three Months Ended September 30, 2018 and 2017 |
|||||
(In millions, except per share amounts) |
|||||
Three Months Ended |
|||||
September 30, |
|||||
2018 |
2017 |
||||
Net income attributable to parent company |
$ 95 |
$ 69 |
|||
Items impacting income before income taxes: |
|||||
Restructuring charges |
9 |
2 |
|||
Amortization of intangibles |
3 |
4 |
|||
Strategic transaction expenses |
6 |
3 |
|||
Loss on extinguishment of debt |
13 |
||||
Other items |
5 |
3 |
|||
Items impacting income taxes: |
|||||
Net income tax expense on items above |
(5) |
(8) |
|||
Adjusted net income |
$ 113 |
$ 86 |
|||
Diluted shares - as reported |
145.9 |
146.9 |
|||
Adjusted diluted shares |
145.9 |
146.9 |
|||
Diluted adjusted EPS |
$ 0.77 |
$ 0.59 |
DANA INCORPORATED |
|||||
Diluted Adjusted EPS (Unaudited) |
|||||
For the Nine Months Ended September 30, 2018 and 2017 |
|||||
(In millions, except per share amounts) |
|||||
Nine Months Ended |
|||||
September 30, |
|||||
2018 |
2017 |
||||
Net income attributable to parent company |
$ 327 |
$ 215 |
|||
Items impacting income before income taxes: |
|||||
Restructuring charges |
17 |
14 |
|||
Amortization of intangibles |
8 |
10 |
|||
Strategic transaction expenses |
13 |
20 |
|||
Impairment of indefinite-lived intangible asset |
20 |
||||
Loss on extinguishment of debt |
19 |
||||
Acquisition related inventory adjustments |
14 |
||||
Other items |
3 |
3 |
|||
Items impacting income taxes: |
|||||
Net income tax expense on items above |
(15) |
(17) |
|||
Tax benefit attributable to utilization of federal tax credits, state tax |
|||||
law changes and associated valuation allowance release |
(46) |
||||
Tax expense attributable to international legal entity reorganization |
|||||
and retroactive application of new tax authority adminstrative policy |
5 |
||||
Adjusted net income |
$ 332 |
$ 278 |
|||
Diluted shares - as reported |
146.6 |
146.5 |
|||
Adjusted diluted shares |
146.6 |
146.5 |
|||
Diluted adjusted EPS |
$ 2.26 |
$ 1.90 |
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SOURCE
Media Contact: Jeff Cole, +1-419-887-3535, jeff.cole@dana.com; Investor Contact: Craig Barber, +1-419-887-5166, craig.barber@dana.com