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Dana Incorporated Announces Strong 2017 Financial Results, Affirms Significant 2018 Guidance Increase

MAUMEE, Ohio, Feb. 13, 2018 /PRNewswire/ --

Dana Incorporated logo. (PRNewsFoto/Dana Incorporated)

Full-Year Highlights

  • Sales of $7.2 billion, an increase of $1.4 billion, growth of 24 percent
  • Net income attributable to Dana of $111 million; diluted EPS of $0.71, inclusive of $186 million one-time, non-cash charge due to U.S. tax reform
  • Adjusted EBITDA of $835 million, providing a margin of 11.6 percent, an expansion of 30 basis points 
  • Diluted adjusted EPS of $2.52, improvement of 30 percent over 2016
  • Operating cash flow of $554 million
  • Free cash flow of $161 million, 160 percent improvement over 2016, including $393 million of capital investment to support new business growth
  • Strong sales backlog of $800 million, an increase of $50 million or 7 percent over prior three-year backlog
  • Two-year total shareholder return of 137 percent 

Dana Incorporated (NYSE: DAN) today announced strong financial results for 2017 and affirmed 2018 guidance.

"Due to the talents, dedication, and hard work of the more than 30,000 Dana associates, 2017 proved to be a fantastic year as we delivered both organic and inorganic growth," said James Kamsickas, Dana president and chief executive officer. "Every year since 2015, we increased adjusted EBITDA, and with appreciation and dividends, our shareholders have realized total returns of more than 130 percent during that time.  By leveraging the key principles of our enterprise strategy, beginning with a keen focus on our great customers, we have established a strong foundation for our future success."

Fourth-Quarter 2017 Financial Results
Sales for the fourth quarter of 2017 totaled $1.84 billion, compared with $1.45 billion in the same period of 2016, representing a 27 percent increase.  The increase was largely attributable to higher end-market demand in all business units, conversion of sales backlog, and favorable currency.

Dana reported a net loss of $104 million for the fourth quarter of 2017, compared with net income of $485 million in the same period of 2016.  Nonrecurring tax effects and divestitures of businesses impacted both periods.  The fourth quarter of 2017 included a one-time, non-cash charge of $186 million due to enactment of the U.S. tax reform legislation on Dec. 22, 2017. This was partially offset by $27 million of state income tax valuation allowance release.  A charge of $27 million for the disposition of a suspension parts business in Brazil also impacted fourth-quarter 2017 results.  In the fourth quarter of 2016, a tax benefit of $501 million from the release of income tax valuation allowances against U.S. deferred tax assets was recognized. This benefit was offset in part by a $23 million net addition to income tax valuation allowances provided in other countries and an after-tax charge of $52 million for divestitures of businesses.  Excluding these one-time income tax and divestiture impacts, fourth-quarter net income was $82 million in 2017 and $59 million in 2016, reflecting, in part, the increased operating earnings associated with higher sales. 

Reported diluted earnings per share were a loss of $0.74 in the fourth quarter of 2017, inclusive of the charge for U.S. tax reform, compared with earnings per share of $3.34 in 2016 that included the benefit of the release of income tax valuation allowances.

Adjusted EBITDA for the fourth quarter of 2017 was $197 million, a $31 million increase over the same period last year.  Last year's fourth quarter benefited from $8 million of gains in the Dana Companies subsidiary that was divested at the end of 2016.  Profit in 2017 benefited from higher end-market demand and conversion of the sales backlog as well as earnings from acquisitions completed in the first quarter of 2017.

Diluted adjusted earnings per share, which excludes the above-mentioned nonrecurring income tax and divestiture effects along with other items, were $0.62 in the fourth quarter of 2017, compared with $0.59 in the same period last year.  

Operating cash flow in the fourth quarter of 2017 was $193 million, compared with $202 million in the same period of 2016.  Inclusive of capital spending of $142 million in the fourth quarter of 2017, free cash flow was $51 million, $27 million lower, compared with the fourth quarter of 2016, due to the timing of interest payments, higher transaction costs associated with recent acquisitions, higher working capital requirements, and an increased level of capital spending to support new business.

Full-Year 2017 Financial Results
Sales for 2017 were $7.21 billion, $1.38 billion higher compared with 2016.  Strong market demand and conversion of new business wins provided a combined organic increase in sales of approximately $800 million.  Recent acquisitions increased sales by an additional $500 million

Net income in 2017 was $111 million, compared with net income of $640 million in 2016.  Excluding the fourth-quarter nonrecurring tax and divestiture items referenced above, net income was $297 million in 2017 and $214 million in 2016.  The increase, exclusive of fourth-quarter nonrecurring items, is primarily attributable to increased operating earnings associated with higher sales.  Year-over-year net income also benefited from lower restructuring and interest expense.  Partially offsetting these impacts were a higher level of acquisition-related transaction and integration costs in 2017, as well as one-time gains in 2016 realized by a divested business.

Adjusted EBITDA for 2017 was $835 million, or 11.6 percent of sales, 30 basis points higher than 2016.  Higher sales volume in all product groups and recent acquisitions added $143 million and $52 million respectively to the comparison, with an offset for $15 million of gains in 2016 associated with the divested Dana Companies subsidiary.

Diluted earnings per share were $0.71 for 2017, compared with $4.36 in 2016, primarily reflecting the nonrecurring tax expense in 2017, and nonrecurring tax benefit in 2016 discussed above.  Diluted adjusted earnings per share for 2017 were $2.52, compared with $1.94 in 2016, a 30 percent increase, primarily reflecting the higher year-over-year earnings improvement.

The company reported operating cash flow of $554 million in 2017, an improvement of $170 million compared with 2016, driven by higher earnings.  Investment requirements for new customer programs resulted in increased capital spending, with capital expenditures of $393 million in 2017, compared with $322 million in 2016.  Resulting free cash flow was $161 million in 2017, compared with $62 million in 2016.  

Company Affirms 2018 Guidance
Strong end-market demand and the new-business backlog are driving an expected 6 percent sales growth in 2018.  Continued strong demand for key light-truck programs is expected into 2018, as is higher end-market demand for off-highway equipment and commercial vehicles.  Increased sales from the new-business backlog are expected to add approximately $300 million, and improved end-market demand is expected to accrete $100 million.

Adjusted EBITDA in 2018 is expected to improve by approximately $100 million, or 70 basis points of margin improvement.  This improvement is driven primarily by higher sales levels, ongoing efficiency improvements, and acquisition synergies.

"Our outstanding financial performance in 2017 – driven by organic and inorganic sales growth of 24 percent combined with strong profit margin, cash flow generation, and progressively higher 2018 expectations – has solidified our trajectory toward achieving our long-term targets," said Jonathan Collins, executive vice president and chief financial officer of Dana."

2018 Full-Year Financial Targets

  • Sales of $7.5 to $7.7 billion;
  • Adjusted EBITDA of $910 to $960 million, an implied adjusted EBITDA margin of approximately 12.3 percent;
  • Diluted adjusted EPS1 of $2.60 to $2.90;
  • Operating cash flow of approximately 7.5 percent of sales;
  • Capital spending of approximately 4.0 percent of sales; and
  • Free cash flow of approximately 3.5 percent of sales.

1Net income and diluted EPS guidance are not provided, as discussed below in Non-GAAP Financial Information.

Share Repurchase Program
Dana previously announced that its board of directors approved a new share repurchase program, authorizing the purchase of up to $100 million of common shares over the next two years.  The company expects any shares repurchased to be in the open market or through privately negotiated transactions and expects to have sufficient free cash flow and liquidity during this period to support this initiative.  Execution under this program is subject to prevailing market conditions, available growth opportunities, and other considerations.

Dana to Host Conference Call at 9 a.m. Today
Dana will discuss its full-year and fourth-quarter results in a conference call at 9 a.m. EST today.  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. 1385579 and ask for the "Dana Incorporated's Financial Webcast and Conference Call."  Phone registration will be available starting at 8:30 a.m. EST

An audio recording of the webcast will be available after 5 p.m. EST on Feb. 13 by dialing 1-855-859-2056 (U.S. or Canada) or 1-404-537-3406 (international) and entering conference I.D. 1385579.  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, taxes, depreciation, amortization, equity grant expense, restructuring expense 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 and impairment expense, 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 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 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 Maumee, Ohio, USA, the company reported sales of $7.2 billion in 2017. Dana is ranked among the Drucker Institute's listing of the 250 most effectively managed companies.   For more information, please visit dana.com.

 

 DANA INCORPORATED 







 Consolidated Statement of Operations (Unaudited) 







 For the Three Months Ended December 31, 2017 and 2016 


















Three Months Ended

 (In millions, except per share amounts) 



December 31,





2017


2016

 Net sales 




$      1,837


$      1,447

 Costs and expenses 






     Cost of sales 



1,583


1,243

     Selling, general and administrative expenses 



132


103

     Amortization of intangibles 



2


2

     Restructuring charges, net 





13

 Loss on disposal group held for sale 



(27)



 Loss on sale of subsidiaries 





(80)

 Other income (expense), net 



(1)


9

 Earnings before interest and income taxes 



92


15

 Interest income 



3


5

 Interest expense 



23


29

 Earnings (loss) before income taxes 



72


(9)

 Income tax expense (benefit) 



189


(490)

 Equity in earnings of affiliates 



7


8

 Net income (loss) 



(110)


489

     Less: Noncontrolling interests net loss 



(3)


4

     Less: Redeemable noncontrolling interests net loss 


(3)



 Net income (loss) attributable to the parent company 


$        (104)


$         485








 Net income (loss) per share available to common stockholders 





    Basic 




$       (0.74)


$        3.37

    Diluted 




$       (0.74)


$        3.34








 Weighted-average shares outstanding - Basic 



145.4


144.1

 Weighted-average shares outstanding - Diluted 



145.4


145.3








 Cash dividends declared per share 



$        0.06


$        0.06








 

 

 DANA INCORPORATED 







 Consolidated Statement of Operations 







 For the Year Ended December 31, 2017 and 2016 


















Year Ended

 (In millions, except per share amounts) 



December 31,





2017


2016

 Net sales 




$      7,209


$      5,826

 Costs and expenses 






     Cost of sales 



6,147


4,982

     Selling, general and administrative expenses 



511


406

     Amortization of intangibles 



11


8

     Restructuring charges, net 



14


36

 Loss on disposal group held for sale 



(27)



 Loss on sale of subsidiaries 





(80)

 Other income (expense), net 



(9)


18

 Earnings before interest and income taxes 



490


332

 Loss on extinguishment of debt 



(19)


(17)

 Interest income 



11


13

 Interest expense 



102


113

 Earnings before income taxes 



380


215

 Income tax expense (benefit) 



283


(424)

 Equity in earnings of affiliates 



19


14

 Net income 



116


653

     Less: Noncontrolling interests net income 



10


13

     Less: Redeemable noncontrolling interests net loss 


(5)



 Net income attributable to the parent company 



$         111


$         640








 Net income per share available to common stockholders 





    Basic 




$        0.72


$        4.38

    Diluted 




$        0.71


$        4.36








 Weighted-average shares outstanding - Basic 



145.1


146.0

 Weighted-average shares outstanding - Diluted 



146.9


146.8








 Cash dividends declared per share 



$        0.24


$        0.24








 

 

 DANA INCORPORATED 






 Consolidated Statement of Comprehensive Income (Unaudited) 





 For the Three Months Ended December 31, 2017 and 2016 


















Three Months Ended

 (In millions) 


December 31,






2017


2016

Net income 


$        (110)


$         489

Other comprehensive income (loss), net of tax: 





     Currency translation adjustments


(12)


(39)

     Hedging gains and losses


(17)


(9)

     Investment and other gains and losses


2



     Defined benefit plans


(35)


(52)

     Other comprehensive loss


(62)


(100)

Total comprehensive income (loss)


(172)


389

     Less: Comprehensive (income) loss attributable to noncontrolling interests


1


(1)

     Less: Comprehensive loss attributable to redeemable noncontrolling interests


2



Comprehensive income (loss) attributable to the parent company


$        (169)


$         388









 

 

 DANA INCORPORATED 






 Consolidated Statement of Comprehensive Income 






 For the Year Ended December 31, 2017 and 2016 



















Year Ended

 (In millions) 


December 31,






2017


2016

Net income 


$         116


$         653

Other comprehensive income (loss), net of tax: 





     Currency translation adjustments


(14)


(41)

     Hedging gains and losses


(30)


(30)

     Investment and other gains and losses


2


(2)

     Defined benefit plans


(6)


(39)

     Other comprehensive loss


(48)


(112)

Total comprehensive income


68


541

     Less: Comprehensive income attributable to noncontrolling interests


(17)


(11)

     Less: Comprehensive loss attributable to redeemable noncontrolling interests


2



Comprehensive income attributable to the parent company


$            53


$         530









 

 

 DANA INCORPORATED 





 Consolidated Balance Sheet 




 As of December 31, 2017 and December 31, 2016 








 (In millions, except share and per share amounts) 

December 31,


December 31,


2017


2016

 Assets 




 Current assets 




 Cash and cash equivalents 

$                603


$               707

 Marketable securities 

40


30

 Accounts receivable 




      Trade, less allowance for doubtful accounts of $8 in 2017 and $6 in 2016 

994


721

      Other 

172


110

 Inventories 

969


638

 Other current assets 

97


78

 Current assets of disposal group held for sale 

7



                Total current assets 

2,882


2,284

 Goodwill 

127


90

 Intangibles 

174


109

 Deferred tax assets 

420


588

 Other noncurrent assets 

71


226

 Investments in affiliates 

163


150

 Property, plant and equipment, net 

1,807


1,413

                Total assets 

$             5,644


$            4,860





 Liabilities and equity 




 Current liabilities 




 Notes payable, including current portion of long-term debt 

$                  40


$                 69

 Accounts payable 

1,165


819

 Accrued payroll and employee benefits 

219


149

 Taxes on income 

53


15

 Other accrued liabilities 

220


201

 Current liabilities of disposal group held for sale 

5



                Total current liabilities 

1,702


1,253

 Long-term debt, less debt issuance costs of $22 in 2017 and $21 in 2016 

1,759


1,595

 Pension and postretirement obligations 

607


565

 Other noncurrent liabilities 

413


205

 Noncurrent liabilities of disposal group held for sale 

2



                Total liabilities 

4,483


3,618

 Commitments and contingencies 






 Redeemable noncontrolling interest 



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, 




           144,984,050 and 143,938,280 shares outstanding 

2


2

 Additional paid-in capital 

2,354


2,327

 Retained earnings 

86


195

 Treasury stock, at cost (7,001,017 and 6,812,784 shares) 

(87)


(83)

 Accumulated other comprehensive loss 

(1,342)


(1,284)

                Total parent company stockholders' equity 

1,013


1,157

 Noncontrolling interests 

101


85

                Total equity 

1,114


1,242

                Total liabilities and equity 

$             5,644


$            4,860

 

 

 DANA INCORPORATED 






 Consolidated Statement of Cash Flows (Unaudited) 





 For the Three Months Ended December 31, 2017 and 2016 













Three Months Ended

 (In millions) 


December 31,




2017


2016

 Operating activities 





 Net income 


$        (110)


$         489

 Depreciation 


58


44

 Amortization of intangibles 


3


2

 Amortization of deferred financing charges 


1


1

 Earnings of affiliates, net of dividends received 


(5)


(6)

 Stock compensation expense 


6


6

 Deferred income taxes 


169


(481)

 Pension contributions, net 


(2)


(4)

 Loss on sale of subsidiary 




80

 Loss on disposal group held for sale 


27



 Change in working capital 


72


91

 Change in other noncurrent assets and liabilities 


(9)


(1)

 Other, net 


(17)


(19)

 Net cash provided by operating activities (1) 


193


202







 Investing activities 





 Purchases of property, plant and equipment (1) 


(142)


(124)

 Acquisition of businesses, net of cash acquired 


(3)


(60)

 Purchases of marketable securities 


(12)


(52)

 Proceeds from maturities of marketable securities 


11


14

 Proceeds from sale of subsidiary 




34

 Other 


3


10

 Net cash used in investing activities 


(143)


(178)







 Financing activities 





 Net change in short-term debt 


6


(5)

 Repayment of long-term debt 




(4)

 Deferred financing payments 




(1)

 Dividends paid to common stockholders 


(9)


(9)

 Distributions to noncontrolling interests 


(5)


(1)

 Other 


1


4

 Net cash used in financing activities 


(7)


(16)







 Net increase in cash and cash equivalents 


43


8

 Cash and cash equivalents − beginning of period 


558


727

 Effect of exchange rate changes on cash balances 


2


(28)

 Cash and cash equivalents − end of period 


$         603


$         707







(1) Free cash flow of $51 in 2017 and $78 in 2016 is the sum of net cash provided by

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

 

 

 DANA INCORPORATED 






 Consolidated Statement of Cash Flows 





 For the Year Ended December 31, 2017 and 2016 














Year Ended

 (In millions) 


December 31,




2017


2016

 Operating activities 





 Net income 


$         116


$         653

 Depreciation 


220


173

 Amortization of intangibles 


13


9

 Amortization of deferred financing charges 


5


5

 Call premium on debt 


15


12

 Write-off of deferred financing costs 


4


5

 Earnings of affiliates, net of dividends received 


(3)


(3)

 Stock compensation expense 


23


17

 Deferred income taxes 


179


(480)

 Pension contributions, net 


(6)


(16)

 (Gain) loss on sale of subsidiary 


(3)


80

 Loss on disposal group held for sale 


27



 Change in working capital 


(8)


(51)

 Change in other noncurrent assets and liabilities 


(9)


(1)

 Other, net 


(19)


(19)

 Net cash provided by operating activities (1) 


554


384







 Investing activities 





 Purchases of property, plant and equipment (1) 


(393)


(322)

 Acquisition of businesses, net of cash acquired 


(187)


(78)

 Purchases of marketable securities 


(35)


(93)

 Proceeds from sales of marketable securities 


1


47

 Proceeds from maturities of marketable securities 


27


47

 Proceeds from sale of subsidiary 


3


34

 Other 


3



 Net cash used in investing activities 


(581)


(365)







 Financing activities 





 Net change in short-term debt 


(90)


9

 Proceeds from long-term debt 


676


441

 Repayment of long-term debt 


(640)


(382)

 Call premium on debt 


(15)


(12)

 Deferred financing payments 


(9)


(11)

 Dividends paid to common stockholders 


(35)


(35)

 Distributions to noncontrolling interests 


(12)


(17)

 Repurchases of common stock 




(81)

 Other 


5



 Net cash used in financing activities 


(120)


(88)







 Net decrease in cash and cash equivalents 


(147)


(69)

 Cash and cash equivalents − beginning of period 


707


791

 Effect of exchange rate changes on cash balances 


43


(15)

 Cash and cash equivalents − end of period 


$         603


$         707







(1) Free cash flow of $161 in 2017 and $62 in 2016 is the sum of net cash provided by

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







 

 

 DANA INCORPORATED 






 Segment Sales and Segment EBITDA (Unaudited) 



 For the Three Months Ended December 31, 2017 and 2016 















Three Months Ended

 (In millions) 



December 31,




2017


2016

 Sales 






Light Vehicle



$           803


$           694

Commercial Vehicle



355


278

Off-Highway



414


217

Power Technologies



265


258

 Total Sales 



$        1,837


$        1,447







 Segment EBITDA 






Light Vehicle



$             86


$             77

Commercial Vehicle



25


15

Off-Highway



55


32

Power Technologies



36


38

 Total Segment EBITDA 



202


162

 Corporate expense and other items, net 



(5)


4

 Adjusted EBITDA 



$           197


$           166







 

 

 DANA INCORPORATED 






 Segment Sales and Segment EBITDA 





 For the Year Ended December 31, 2017 and 2016 















Year Ended

 (In millions) 



December 31,




2017


2016

 Sales 






Light Vehicle



$        3,172


$        2,607

Commercial Vehicle



1,412


1,254

Off-Highway



1,521


909

Power Technologies



1,104


1,056

 Total Sales 



$        7,209


$        5,826







 Segment EBITDA 






Light Vehicle



$           359


$           279

Commercial Vehicle



116


96

Off-Highway



212


129

Power Technologies



168


158

 Total Segment EBITDA 



855


662

 Corporate expense and other items, net 



(20)


(2)

 Adjusted EBITDA 



$           835


$           660







 

 

 DANA INCORPORATED 





 Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) 

 For the Three Months Ended December 31, 2017 and 2016 












Three Months Ended

 (In millions) 


December 31,



2017


2016

 Segment EBITDA 


$           202


$           162

Corporate expense and other items, net


(5)


4

 Adjusted EBITDA 


197


166

Depreciation


(58)


(44)

Amortization of intangibles


(3)


(2)

Restructuring charges, net




(13)

Stock compensation expense


(6)


(6)

Strategic transaction expenses


(5)


(7)

Loss on disposal group held for sale


(27)



Loss on sale of subsidiaries




(80)

Other items


(6)


1

Earnings before interest and income taxes


92


15

Interest expense


(23)


(29)

Interest income


3


5

 Earnings (loss) before income taxes 


72


(9)

 Income tax expense (benefit) 


189


(490)

 Equity in earnings of affiliates 


7


8

 Net income (loss) 


$         (110)


$           489






 

 

 DANA INCORPORATED 





 Reconciliation of Segment and Adjusted EBITDA to Net Income 



 For the Year Ended December 31, 2017 and 2016 












Year Ended

 (In millions) 


December 31,



2017


2016

 Segment EBITDA 


$           855


$           662

Corporate expense and other items, net


(20)


(2)

 Adjusted EBITDA 


835


660

Depreciation


(220)


(173)

Amortization of intangibles


(13)


(9)

Restructuring charges, net


(14)


(36)

Stock compensation expense


(23)


(17)

Strategic transaction expenses


(25)


(13)

Acquisition related inventory adjustments


(14)



Loss on disposal group held for sale


(27)



Loss on sale of subsidiaries




(80)

Other items


(9)



Earnings before interest and income taxes


490


332

Loss on extinguishment of debt


(19)


(17)

Interest expense


(102)


(113)

Interest income


11


13

 Earnings before income taxes 


380


215

 Income tax expense (benefit) 


283


(424)

 Equity in earnings of affiliates 


19


14

 Net income 


$           116


$           653






 

 

 DANA INCORPORATED 






 Diluted Adjusted EPS (Unaudited) 





 For the Three Months Ended December 31, 2017 and 2016 










 (In millions, except per share amounts) 







Three Months Ended



December 31,



2017


2016

 Net income attributable to parent company 


$         (104)


$           485

 Items impacting income before income taxes: 





      Restructuring charges 




13

      Amortization of intangibles 


3


2

      Loss on disposal group held for sale 


27



      Loss on sale of subsidiary 




80

      Strategic transaction expenses 


5


7

      Other items 


2



 Items impacting income taxes: 





      Net income tax benefits on items above 


(1)


(33)

      U.S. tax reform legislation 


186



      Release of U.S. federal valuation allowance 




(501)

      Valuation allowance (release) provision, net 


(27)


23

      Other nonrecurring tax adjustments 


8


9

 Items impacting noncontrolling interests 


(7)



 Adjusted net income 


$             92


$             85






 Diluted shares - as reported 


145.4


145.3

      Adjustment - common stock equivalents 


2.2



 Adjusted diluted shares 


147.6


145.3






 Diluted adjusted EPS 


$          0.62


$          0.59


 

 

 DANA INCORPORATED 






 Diluted Adjusted EPS (Unaudited) 





 For the Year Ended December 31, 2017 and 2016 











 (In millions, except per share amounts) 








Year Ended




December 31,




2017


2016

 Net income attributable to parent company 


$           111


$           640

 Items impacting income before income taxes: 





      Restructuring charges 


14


36

      Amortization of intangibles 


13


9

      Loss on extinguishment of debt 


19


17

      Loss on disposal group held for sale 


27



      Loss (income) on sale of subsidiary 


(3)


80

      Strategic transaction expenses 


25


13

      Acquisition related inventory adjustments 


14



      Other items 


8


(4)

 Items impacting income taxes: 





      Net income tax benefits on items above 


(18)


(45)

      U.S. tax reform legislation 


186



      Release of U.S. federal valuation allowance 




(501)

      Valuation allowance (release) provision, net 


(27)


23

      Other nonrecurring tax adjustments 


8


17

 Items impacting noncontrolling interests 


(7)



 Adjusted net income 


$           370


$           285







 Diluted shares - as reported 


146.9


146.8

 Adjusted diluted shares 


146.9


146.8







 Diluted adjusted EPS 


$          2.52


$          1.94







 

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SOURCE Dana Incorporated

Media Contact: Jeff Cole, +1-419-887-3535, jeff.cole@dana.com or Investor Contact: Craig Barber, +1-419-887-5166, craig.barber@dana.com