DANA INCORPORATED

Quarterly Financial Information and Reconciliations of Non-GAAP Financial Measures

Non-GAAP Financial Measures

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

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

The accompanying financial information provides reconciliations of adjusted EBITDA 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 outlook to the most comparable GAAP measure of net income (loss). Providing net income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income (loss), including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliation of adjusted EBITDA to net income (loss) for the historical periods presented are indicative of the reconciliation that will be prepared upon completion of the periods covered by the non-GAAP guidance.

Page 1

DANA INCORPORATED

Consolidated Statement of Operations (Unaudited)

For the Three Months Ended March 31, 2024 and 2023

Three Months Ended

(In millions, except per share amounts)

March 31,

2024

2023

Net sales

$

2,735

$

2,644

Costs and expenses

Cost of sales

2,491

2,415

Selling, general and administrative expenses

139

140

Amortization of intangibles

3

3

Restructuring charges, net

5

1

Loss on disposal group held for sale

(29)

Other income (expense), net

2

5

Earnings before interest and income taxes

70

90

Interest income

4

4

Interest expense

39

34

Earnings before income taxes

35

60

Income tax expense

37

30

Equity in earnings of affiliates

2

1

Net income

-

31

Less: Noncontrolling interests net income

5

4

Less: Redeemable noncontrolling interests net loss

(8)

(1)

Net income attributable to the parent company

$

3

$

28

Net income per share available to common stockholders

Basic

$

0.02

$

0.19

Diluted

$

0.02

$

0.19

Weighted-average shares outstanding - Basic

144.8

143.9

Weighted-average shares outstanding - Diluted

144.8

144.3

Page 2

DANA INCORPORATED

Consolidated Statement of Comprehensive Income (Unaudited)

For the Three Months Ended March 31, 2024 and 2023

Three Months Ended

(In millions)

March 31,

2024

2023

Net income

$

-

$

31

Other comprehensive income (loss), net of tax:

Currency translation adjustments

(20)

25

Hedging gains and losses

(2)

15

Defined benefit plans

1

1

Other comprehensive income (loss)

(21)

41

Total comprehensive income (loss)

(21)

72

Less: Comprehensive income attributable to noncontrolling interests

(4)

(4)

Less: Comprehensive loss attributable to redeemable noncontrolling interests

11

Comprehensive income (loss) attributable to the parent company

$

(14)

$

68

Page 3

DANA INCORPORATED

Consolidated Balance Sheet (Unaudited)

As of March 31, 2024 and December 31, 2023

(In millions, except share and per share amounts)

March 31,

December 31,

2024

2023

Assets

Current assets

Cash and cash equivalents

$

351

$

529

Accounts receivable

Trade, less allowance for doubtful accounts of $14 in 2024 and $16 in 2023

1,526

1,371

Other

251

280

Inventories

1,625

1,676

Other current assets

287

247

Current assets of disposal group held for sale

62

Total current assets

4,102

4,103

Goodwill

257

263

Intangibles

169

182

Deferred tax assets

507

516

Other noncurrent assets

158

140

Investments in affiliates

123

123

Operating lease assets

315

327

Property, plant and equipment, net

2,226

2,311

Total assets

$

7,857

$

7,965

Liabilities, redeemable noncontrolling interests and equity

Current liabilities

Short-term debt

$

39

$

22

Current portion of long-term debt

8

35

Accounts payable

1,697

1,756

Accrued payroll and employee benefits

316

288

Taxes on income

90

86

Current portion of operating lease liabilities

41

42

Other accrued liabilities

352

373

Current liabilities of disposal group held for sale

22

Total current liabilities

2,565

2,602

Long-term debt, less debt issuance costs of $23 in 2024 and $24 in 2023

2,580

2,598

Noncurrent operating lease liabilities

271

284

Pension and postretirement obligations

318

334

Other noncurrent liabilities

318

319

Noncurrent liabilities of disposal group held for sale

4

Total liabilities

6,056

6,137

Commitments and contingencies

Redeemable noncontrolling interests

197

191

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,

144,954,645 and 144,386,484 shares outstanding

2

2

Additional paid-in capital

2,260

2,255

Retained earnings

297

317

Treasury stock, at cost (821,207 and 474,981 shares)

(13)

(9)

Accumulated other comprehensive loss

(1,007)

(990)

Total parent company stockholders' equity

1,539

1,575

Noncontrolling interests

65

62

Total equity

1,604

1,637

Total liabilities, redeemable noncontrolling interests and equity

$

7,857

$

7,965

Page 4

DANA INCORPORATED

Consolidated Statement of Cash Flows (Unaudited)

For the Three Months Ended March 31, 2024 and 2023

Three Months Ended

(In millions)

March 31,

2024

2023

Operating activities

Net income

$

-

$

31

Depreciation

101

92

Amortization

5

5

Amortization of deferred financing charges

1

1

Earnings of affiliates, net of dividends received

(2)

(1)

Stock compensation expense

6

6

Deferred income taxes

2

(8)

Pension expense, net

(7)

Change in working capital

(251)

(304)

Loss on disposal group held for sale

29

Other, net

14

8

Net cash used in operating activities

(102)

(170)

Investing activities

Purchases of property, plant and equipment

(70)

(120)

Proceeds from sale of property, plant and equipment

4

2

Settlements of undesignated derivatives

(1)

Other, net

4

Net cash used in investing activities

(63)

(118)

Financing activities

Net change in short-term debt

17

269

Repayment of long-term debt

(27)

(2)

Deferred financing payments

(2)

Dividends paid to common stockholders

(15)

(15)

Distributions to noncontrolling interests

(3)

(1)

Contributions from redeemable noncontrolling interests

9

10

Deferred purchase price proceeds

11

Other, net

9

(4)

Net cash provided by financing activities

1

255

Net decrease in cash, cash equivalents and restricted cash

(164)

(33)

Cash, cash equivalents and restricted cash − beginning of period

563

442

Effect of exchange rate changes on cash balances

(12)

10

Cash, cash equivalents and restricted cash − end of period

$

387

$

419

Page 5

DANA INCORPORATED

Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow (Unaudited)

Three Months Ended

(In millions)

March 31,

2024

2023

Net cash used in operating activities

$

(102)

$

(170)

Purchase of property, plant and equipment

(70)

(120)

Free cash flow

$

(172)

$

(290)

Page 6

DANA INCORPORATED

Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended March 31, 2024 and 2023

Three Months Ended

(In millions)

March 31,

2024

2023

Sales

Light Vehicle

$

1,098

$

962

Commercial Vehicle

524

522

Off-Highway

781

842

Power Technologies

332

318

Total Sales

$

2,735

$

2,644

Segment EBITDA

Light Vehicle

$

67

$

49

Commercial Vehicle

17

17

Off-Highway

115

118

Power Technologies

27

23

Total Segment EBITDA

226

207

Corporate expense and other items, net

(3)

(3)

Adjusted EBITDA

$

223

$

204

Page 7

DANA INCORPORATED

Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) For the Three Months Ended March 31, 2024 and 2023

Three Months Ended

(In millions)

March 31,

2024

2023

Segment EBITDA

$

226

$

207

Corporate expense and other items, net

(3)

(3)

Adjusted EBITDA

223

204

Depreciation

(101)

(92)

Amortization

(5)

(5)

Non-service cost components of pension and OPEB costs

(4)

(3)

Restructuring charges, net

(5)

(1)

Stock compensation expense

(6)

(6)

Strategic transaction expenses

(2)

(1)

Distressed supplier costs

(8)

Loss on disposal group held for sale

(29)

Other items

(1)

2

Earnings before interest and income taxes

70

90

Interest income

4

4

Interest expense

39

34

Earnings before income taxes

35

60

Income tax expense

37

30

Equity in earnings of affiliates

2

1

Net income

$

-

$

31

Page 8

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DANA Incorporated published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 11:03:40 UTC.