Modine Reports Fourth Quarter Fiscal 2022 Results
Modine Manufacturing Company (NYSE: MOD) reported strong financial results for the fourth quarter and fiscal year ended March 31, 2022. Net sales rose 12% to $574.4 million, with operating income turning positive at $20.6 million. Full-year net sales reached $2.1 billion, a 13% increase. Earnings per share improved significantly to $1.62 from a prior loss of $4.11. While challenges remain, including inflation and supply chain issues, Modine anticipates growth in fiscal 2023 with projected sales increases of 6-12% and adjusted EBITDA of $180-$195 million.
- Net sales increased 12% to $574.4 million in Q4 and 13% to $2.1 billion for the fiscal year.
- Operating income recovered to $20.6 million in Q4 compared to a loss the previous year.
- Earnings per share improved to $1.62 from a loss of $4.11 in the prior year.
- Adjusted EBITDA for Q4 decreased by $6 million from the previous year.
- Free cash flow was a use of $28.8 million, down $145.9 million year-over-year.
Strong earnings growth driven by higher revenues in key end markets and early benefits from the implementation of 80/20 actions
RACINE, Wis., May 25, 2022 /PRNewswire/ -- Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter and fiscal year ended March 31, 2022.
Fourth Quarter Highlights:
- Net sales of
$574.4 million increased 12 percent from the prior year - Operating income of
$20.6 million increased$34.9 million from the prior year operating loss - Adjusted EBITDA of
$56.7 million increased$14.5 million , or 34 percent, from the prior year - Earnings per share of
$0.16 compared to a loss per share of$0.29 in the prior year - Adjusted earnings per share of
$0.57 compared to$0.51 in the prior year - Investor and Analyst Day planned for June 22, 2022 at the NYSE
Full Year Highlights:
- Net sales of
$2.1 billion increased 13 percent from the prior year - Operating income of
$119.2 million increased$216.9 million from the prior year, primarily due to impairment charges related to the Automotive segment recorded in the prior year and the reversal of a portion of those charges in the current year - Adjusted EBITDA of
$158.8 million decreased$6.0 million from the prior year - Earnings per share of
$1.62 compared to a loss per share of$4.11 in the prior year - Adjusted earnings per share of
$1.23 compared to$1.14 in the prior year
"We generated strong growth in our Building HVAC ("BHVAC") and Commercial and Industrial Solutions ("CIS") segments this quarter, and are starting to see the early benefits of the 80/20 actions taken in fiscal 2022 to simplify our business and improve profitability," said Modine President and Chief Executive Officer, Neil D. Brinker. "We continue to work diligently to offset inflationary pressures, particularly the impact of higher material costs. We have focused on improving our commercial processes, including instituting multiple pricing adjustments throughout the year. This was particulary evident in our CIS segment, which benefited from early execution of 80/20 actions by our leadership team. Finally, we continue to focus on taking actions to improve margins, including moving forward with the restructuring plans announced last quarter to reprioritize resources and capital. Overall, we are pleased with a strong finish to our fiscal year and the realization of early benefits from our deliberate, strategic actions."
Financial Results
Net sales increased 12 percent in the fourth quarter to
Gross profit increased 14 percent in the fourth quarter to
Selling, general and administrative ("SG&A") expenses were
Operating income in the fourth quarter was
Earnings per share was
Fourth Quarter Segment Review
- BHVAC segment sales were
$101.9 million , compared with$66.9 million one year ago, an increase of 52 percent. This increase was driven by higher sales to data center and commercial HVAC customers. The higher commercial HVAC sales were driven by higher sales of heating and school ventilation products. The segment reported gross margin of 27.9 percent, which was 310 basis points lower than the prior year, primarily due to higher inflationary costs, including freight charges, and unfavorable sales mix. The segment reported operating income of$15.6 million , a 63 percent increase from the prior year. Adjusted EBITDA for the BHVAC segment was$17.4 million , an increase of$6.4 million , or 58 percent, from the prior year. - CIS segment sales were
$171.3 million , compared with$142.8 million one year ago, an increase of 20 percent. This increase was driven by higher sales to commercial HVAC and refrigeration customers and favorable pricing adjustments in response to raw material price increases. The segment reported gross margin of 18.5 percent, up 490 basis points compared with the prior year, primarily due to the positive impact of increased sales volume, favorable sales mix, pricing, and operational efficiencies. The segment reported operating income of$18.6 million , a$12.8 million improvement from the prior year, primarily due to higher gross profit on increased sales. Adjusted EBITDA for the CIS segment was$24.1 million , an increase of$11.9 million , or 98 percent, from the prior year. - HDE segment sales were
$226.1 million , compared with$207.4 million one year ago, an increase of 9 percent. This increase was driven by higher sales to off-highway, bus and specialty vehicle customers, and includes a significant impact from material pass through price increases. The segment reported gross margin of 10.7 percent, down 250 basis points from the prior year. This decrease was primarily driven by higher material prices in excess of contractual pricing adjustments along with higher freight, packaging and surcharges. The segment reported operating income of$9.6 million , a$3.6 million decrease compared to the prior year. This decrease was primarily due to lower gross profit. Adjusted EBITDA for the HDE segment was$15.6 million , a decrease of$5.2 million from the prior year. - Automotive segment sales were
$89.3 million , compared with$112.4 million one year ago, a decrease of 21 percent. This decrease was primarily driven by the sale of the air-cooled automotive business earlier this fiscal year and, to a lesser extent, the impact of the ongoing semiconductor shortage on automotive production volumes. The segment reported gross margin of 12.8 percent, down 160 basis points compared with the prior year, primarily due to lower sales volume. The segment reported an operating loss of$18.2 million , an improvement of$12.0 million from the prior year. The operating loss in the current year was negatively impacted by$20.1 million of restructuring expenses, primarily related to targeted headcount reductions in Europe. The operating loss in the prior year was negatively impacted by$32.4 million of impairment charges, which were primarily related to the air-cooled automotive business that was sold earlier in fiscal 2022. Adjusted EBITDA for the Automotive segment was$3.6 million , compared with adjusted EBITDA of$5.9 million in the prior year.
Full-Year Fiscal 2022 Overview
In fiscal 2022, net sales increased 13 percent to
The Company reported operating income of
Balance Sheet & Liquidity
Net cash provided by operating activities for the year ended March 31, 2022 was
Total debt was
Outlook
"Although we currently expect our key markets to remain strong, we continue to monitor and assess the uncertainty created by inflationary risks, the lockdowns in China and the war in the Ukraine," said Brinker. "We are aggressively addressing these risks along with the ongoing volatility created by the supply chain challenges around the globe, and are working to strengthen our customer and supplier relationships. Similarly, we remain diligent in addressing inflationary pressures with further commercial actions as well as executing on our previously announced cost reduction initiatives. Our key focus remains on growth in our target verticals, while simultaneously taking actions to reduce complexity and improve margins where we see opportunities for efficiencies. This is an inflection point for Modine as we anticipate that the actions taken this year will unlock the inherent value in the underlying business and provide benefits in fiscal 2023 and beyond. We look forward to providing an overview of our strategies and expectations during our Investor and Analyst Day next month."
Based on current exchange rates and market outlook, Modine provides its outlook for fiscal 2023:
- Full fiscal year-over-year sales up 6 to 12 percent;
- Adjusted EBITDA of
$180 million to$195 million .
Conference Call and Webcast
Modine will conduct a conference call and live webcast, with a slide presentation, on Thursday, May 26, 2022 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its fourth quarter fiscal 2022 financial results. The webcast and accompanying slides will be available on the Investor Relations section of the Modine website at www.modine.com. Participants are encouraged to log on to the webcast and conference call about ten minutes prior to the start of the event. A replay of the audio and slides will be available on the Investor Relations section of the Modine website at www.modine.com on or after May 26, 2022. A call-in replay will be available through midnight on May 31, 2022 at 800-770-2030, (international replay 647-362-9199); Conference ID# 79220. The Company will post a transcript of the call on its website on or after May 31, 2022.
About Modine
Modine, with fiscal 2022 revenues of
Forward-Looking Statements
This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2021 and under Forward-Looking Statements in Item 7 of Part II of that same report and in the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2021, September 30, 2021 and December 31, 2021. Other risks and uncertainties include, but are not limited to, the following: the impact of the COVID-19 pandemic on the national and global economy, our business, suppliers, customers, and employees; the overall health and pricing focus of Modine's customers; our ability to successfully execute our strategic and operational plans, including applying 80/20 principles to our business; our ability to effectively and efficiently modify our cost structure in response to sales volume increases or decreases and complete restructuring activities and realize benefits thereon; our ability to comply with the financial covenants in our credit agreements and to fund our global liquidity requirements efficiently; operational inefficiencies as a result of program launches, unexpected volume increases or decreases, and product transfers; economic, social and political conditions, changes and challenges in the markets where Modine operates and competes, including foreign currency exchange rate fluctuations, inflation, tariffs and sanctions (and potential trade war impacts resulting from tariffs, sanctions or retaliatory actions), supply chain disruptions and supplier constraints, including semiconductor shortages and logistic and transportation challenges, changes in interest rates or tightening of the credit markets, recession, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties about the impact of regulatory and/or policy changes, including those related to tax and trade, the COVID-19 pandemic, the military conflict in Ukraine and other matters, that have been or may be implemented in the U.S. or abroad; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; the nature of and Modine's significant exposure to the vehicular industry and the dependence of this industry on the health of the economy; Modine's ability to recruit and maintain talent in managerial, leadership, operational and administrative functions; Modine's ability to protect its proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation; and other risks and uncertainties identified by the Company in public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this release, and the Company does not assume any obligation to update any forward-looking statements.
Non-GAAP Financial Disclosures
Adjusted EBITDA, adjusted earnings per share, net debt, and free cash flow (which are defined below) as used in this press release are not measures that are defined in generally accepted accounting principles (GAAP). These non-GAAP measures are used by management as performance measures to evaluate the Company's overall financial performance and liquidity. The Company believes these measures provide a more consistent view of performance than the closest GAAP equivalent for management and investors. Management compensates for this by using these measures in combination with the GAAP measures. However, these measures are not, and should not be viewed, as substitutes for the applicable GAAP measures, and may be different from similarly-titled measures used by other companies.
Definition – Adjusted EBITDA
Net earnings excluding interest expense, the provision or benefit for income taxes, depreciation and amortization expenses, other income and expense, restructuring expenses, impairment charges, costs associated with the review of strategic alternatives for the Automotive segment's business operations, strategic reorganization costs, and certain other gains or charges. The Company believes that adjusted EBITDA provides a relevant measure of profitability and earnings power. The Company views this financial metric as being useful to assess operating performance from period to period by excluding certain items that it believes are not representative of its core business. Adjusted EBITDA, when calculated for the business segments, is defined as GAAP operating income excluding depreciation and amortization expenses, restructuring expenses, impairment charges or reversals, and certain other gains or charges.
Definition – Adjusted earnings per share
Diluted earnings per share plus restructuring expenses, impairment charges or reversals, costs associated with the review of strategic alternatives for the Automotive segment's business operations, strategic reorganization costs, and excluding changes in income tax valuation allowances and certain other gains or charges. Adjusted earnings per share is an overall performance measure, not including non-cash impairment charges, costs associated with restructuring activities and certain other gains or charges.
Definition – Net debt
The sum of debt due within one year and long-term debt, less cash and cash equivalents. This is an indicator of the Company's debt position after considering on-hand cash balances.
Definition – Free cash flow
Free cash flow represents net cash provided by operating activities less expenditures for property, plant and equipment. This measure presents cash generated from operations during the period that is available for strategic capital decisions.
Forward-looking non-GAAP financial measure
The Company's fiscal 2023 guidance includes adjusted EBITDA, as defined above, which is a non-GAAP financial measure. The full-year fiscal 2023 guidance for adjusted EBITDA is based upon the Company's estimates for interest expense of approximately
Modine Manufacturing Company | |||||||
Consolidated statements of operations (unaudited) | |||||||
(In millions, except per share amounts) | |||||||
Three months ended March 31, | Twelve months ended March 31, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net sales | $ 574.4 | $ 514.9 | $ 2,050.1 | $ 1,808.4 | |||
Cost of sales | 479.2 | 431.1 | 1,740.8 | 1,515.0 | |||
Gross profit | 95.2 | 83.8 | 309.3 | 293.4 | |||
Selling, general & administrative expenses | 53.5 | 59.3 | 215.1 | 210.9 | |||
Restructuring expenses | 21.1 | 6.4 | 24.1 | 13.4 | |||
Impairment charges (reversals) – net | - | 32.4 | (55.7) | 166.8 | |||
Loss on sale of assets | - | - | 6.6 | - | |||
Operating income (loss) | 20.6 | (14.3) | 119.2 | (97.7) | |||
Interest expense | (3.8) | (4.2) | (15.6) | (19.4) | |||
Other expense – net | (0.5) | (1.2) | (2.1) | (2.2) | |||
Earnings (loss) before income taxes | 16.3 | (19.7) | 101.5 | (119.3) | |||
(Provision) benefit for income taxes | (7.8) | 5.1 | (15.2) | (90.2) | |||
Net earnings (loss) | 8.5 | (14.6) | 86.3 | (209.5) | |||
Net earnings attributable to noncontrolling interest | (0.1) | (0.4) | (1.1) | (1.2) | |||
Net earnings (loss) attributable to Modine | $ 8.4 | $ (15.0) | $ 85.2 | $ (210.7) | |||
Net earnings (loss) per share attributable to Modine shareholders – diluted | $ 0.16 | $ (0.29) | $ 1.62 | $ (4.11) | |||
Weighted-average shares outstanding – diluted | 52.4 | 51.6 | 52.5 | 51.3 | |||
Condensed consolidated balance sheets (unaudited) | |||||||
(In millions) | |||||||
March 31, 2022 | March 31, 2021 | ||||||
Assets | |||||||
Cash and cash equivalents | $ 45.2 | $ 37.8 | |||||
Trade receivables | 367.5 | 267.9 | |||||
Inventories | 281.2 | 195.6 | |||||
Assets held for sale | - | 107.6 | |||||
Other current assets | 63.7 | 35.9 | |||||
Total current assets | 757.6 | 644.8 | |||||
Property, plant and equipment – net | 315.4 | 269.9 | |||||
Intangible assets – net | 90.3 | 100.6 | |||||
Goodwill | 168.1 | 170.7 | |||||
Deferred income taxes | 27.2 | 24.5 | |||||
Other noncurrent assets | 68.4 | 66.2 | |||||
Total assets | $ 1,427.0 | $ 1,276.7 | |||||
Liabilities and shareholders' equity | |||||||
Debt due within one year | $ 29.4 | $ 23.3 | |||||
Accounts payable | 325.8 | 233.9 | |||||
Liabilities held for sale | - | 103.3 | |||||
Other current liabilities | 139.3 | 108.7 | |||||
Total current liabilities | 494.5 | 469.2 | |||||
Long-term debt | 348.4 | 311.2 | |||||
Other noncurrent liabilities | 126.0 | 140.2 | |||||
Total liabilities | 968.9 | 920.6 | |||||
Total equity | 458.1 | 356.1 | |||||
Total liabilities & equity | $ 1,427.0 | $ 1,276.7 | |||||
Modine Manufacturing Company | |||||||
Condensed consolidated statements of cash flows (unaudited) | |||||||
(In millions) | |||||||
Twelve months ended March 31, | |||||||
2022 | 2021 | ||||||
Cash flows from operating activities: | |||||||
Net earnings (loss) | $ 86.3 | ||||||
Adjustments to reconcile net earnings (loss) to net cash provided by | |||||||
operating activities: | |||||||
Depreciation and amortization | 54.8 | 68.6 | |||||
Impairment charges (reversals) – net | (55.7) | 166.8 | |||||
Loss on sale of assets | 6.6 | - | |||||
Stock-based compensation expense | 5.7 | 6.3 | |||||
Deferred income taxes | (3.8) | 67.9 | |||||
Other – net | 3.1 | 6.3 | |||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable | (55.6) | (17.1) | |||||
Inventories | (70.7) | (5.0) | |||||
Accounts payable | 55.1 | 44.0 | |||||
Accrued compensation and employee benefits | 9.8 | 15.7 | |||||
Other assets | (2.4) | 27.5 | |||||
Other liabilities | (21.7) | (21.7) | |||||
Net cash provided by operating activities | 11.5 | 149.8 | |||||
Cash flows from investing activities: | |||||||
Expenditures for property, plant and equipment | (40.3) | (32.7) | |||||
Proceeds from (payments for) disposition of assets | (7.6) | 0.7 | |||||
Other – net | (3.1) | 0.7 | |||||
Net cash used for investing activities | (51.0) | (31.3) | |||||
Cash flows from financing activities: | |||||||
Net increase (decrease) in debt | 40.8 | (147.3) | |||||
Other – net | (1.6) | 2.2 | |||||
Net cash provided by (used for) financing activities | 39.2 | (145.1) | |||||
Effect of exchange rate changes on cash | (0.4) | 1.4 | |||||
Net decrease in cash, cash equivalents, restricted cash and cash held for sale | (0.7) | (25.2) | |||||
Cash, cash equivalents, restricted cash and cash held for sale - beginning of period | 46.1 | 71.3 | |||||
Cash, cash equivalents, restricted cash and cash held for sale - end of period | $ 45.4 | $ 46.1 | |||||
Modine Manufacturing Company | |||||||
Segment operating results (unaudited) | |||||||
(In millions) | |||||||
Three months ended March 31, | Twelve months ended March 31, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net sales: | |||||||
Building HVAC Systems | $ 66.9 | $ 336.6 | $ 263.2 | ||||
Commercial and Industrial Solutions | 171.3 | 142.8 | 627.5 | 512.4 | |||
Heavy Duty Equipment | 226.1 | 207.4 | 824.5 | 682.1 | |||
Automotive | 89.3 | 112.4 | 313.3 | 398.3 | |||
Segment total | 588.6 | 529.5 | 2,101.9 | 1,856.0 | |||
Corporate and eliminations | (14.2) | (14.6) | (51.8) | (47.6) | |||
Net sales | $ 514.9 | ||||||
Three months ended March 31, | Twelve months ended March 31, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | $'s | % of sales | $'s | % of sales | |||
Building HVAC Systems | $ 93.6 | $ 85.3 | |||||||||
Commercial and Industrial Solutions | 31.7 | 19.4 | 88.5 | 64.2 | |||||||
Heavy Duty Equipment | 24.1 | 27.5 | 87.2 | 88.4 | |||||||
Automotive | 11.4 | 16.2 | 39.3 | 56.0 | |||||||
Segment total | 95.6 | 83.9 | 308.6 | 293.9 | |||||||
Corporate and eliminations | (0.4) | - | (0.1) | - | 0.7 | - | (0.5) | - | |||
Gross profit | |||||||||||
Three months ended March 31, | Twelve months ended March 31, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Operating income: | |||||||
Building HVAC Systems | $ 9.6 | $ 45.7 | $ 45.2 | ||||
Commercial and Industrial Solutions | 18.6 | 5.8 | 35.3 | 10.2 | |||
Heavy Duty Equipment | 9.6 | 13.2 | 34.6 | 36.8 | |||
Automotive | (18.2) | (30.2) | 35.4 | (150.9) | |||
Segment total | 25.6 | (1.6) | 151.0 | (58.7) | |||
Corporate and eliminations | (5.0) | (12.7) | (31.8) | (39.0) | |||
Operating income (loss) | |||||||
Modine Manufacturing Company | |||||||
Adjusted financial results (unaudited) | |||||||
(In millions, except per share amounts) | |||||||
Three months ended March 31, | Twelve months ended March 31, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net earnings (loss) | $ 8.5 | $ 86.3 | |||||
Interest expense | 3.8 | 4.2 | 15.6 | 19.4 | |||
Provision (benefit) for income taxes | 7.8 | (5.1) | 15.2 | 90.2 | |||
Depreciation and amortization expense | 14.4 | 14.4 | 54.8 | 68.6 | |||
Other expense – net | 0.5 | 1.2 | 2.1 | 2.2 | |||
Restructuring expenses (a) | 21.1 | 6.4 | 24.1 | 13.4 | |||
Impairment charges (reversals) – net (b) | - | 32.4 | (55.7) | 166.8 | |||
Loss on sale of assets (c) | - | - | 6.6 | - | |||
Automotive separation and exit strategy costs (d) | 0.1 | 2.5 | 2.6 | 6.6 | |||
Strategic reorganization costs (e) | 0.3 | 0.8 | 3.4 | 6.7 | |||
Environmental charges (f) | 0.2 | - | 3.8 | 0.4 | |||
Adjusted EBITDA | |||||||
Net earnings (loss) per share attributable to Modine shareholders - diluted | $ 1.62 | $ (4.11) | |||||
Restructuring expenses (a) | 0.40 | 0.12 | 0.45 | 0.24 | |||
Impairment charges (reversals) – net (b) | - | 0.62 | (0.94) | 2.51 | |||
Loss on sale of assets (c) | - | - | 0.13 | - | |||
Automotive separation and exit strategy costs (d) | - | 0.05 | 0.05 | 0.11 | |||
Strategic reorganization costs (e) | 0.01 | 0.01 | 0.07 | 0.11 | |||
Environmental charges (f) | - | - | 0.07 | 0.01 | |||
Tax valuation allowances (g) | - | - | (0.22) | 2.27 | |||
Adjusted earnings per share | $ 1.23 | $ 1.14 | |||||
(a) | Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions and plant consolidation activities and equipment transfer costs. The restructuring expenses recorded in the fourth quarter of fiscal 2022 primarily relate to targeted headcount reductions in Europe within the Automotive segment. The tax benefit related to restructuring expenses during the fourth quarter of fiscal 2022 and fiscal 2021 was |
(b) | The net impairment reversals during fiscal 2022 primarily relate to the Company's liquid-cooled automotive business within the Automotive segment. During the third quarter of fiscal 2022, the Company agreed with Dana Incorporated to terminate an agreement for the sale of the liquid-cooled automotive business. The Company remeasured the previously impaired long-lived assets of the liquid-cooled automotive business to the lower of (i) carrying value, had held for sale classification never been met, or (ii) fair value. As a result, the Company recorded a |
(c) | The Company's sale of its air-cooled automotive business closed on April 30, 2021. As a result of the sale, the Company recorded a |
(d) | Automotive separation and exit strategy costs consist of costs directly associated with the Company's review of strategic alternatives for the liquid-cooled and air-cooled automotive businesses, including costs to separate and prepare the underlying businesses for sale. With the exception of |
(e) | Strategic reorganization costs, recorded as SG&A expenses at Corporate, primarily consist of severance-related expenses and professional service fees for recruiting key senior management positions and the Company's implementation of its 80/20 strategy. The fiscal 2022 costs include recruiting fees for new segment vice presidents and business unit general managers and severance-related expenses for the outgoing executives as part of the transition. The fiscal 2021 costs include severance and benefit-related expenses associated with Thomas A. Burke's separation agreement and costs directly associated with the search for his successor. There was no tax benefit related to the fiscal 2022 costs. The tax benefit related to these costs in fiscal 2021 was |
(f) | Environmental charges, including related legal costs, are recorded as SG&A expenses and relate to a previously-owned U.S. manufacturing facility. |
(g) | During fiscal 2022, the Company reversed valuation allowances on deferred tax assets in Italy, China, and the Netherlands. These reversals were partially offset by a valuation allowance established on other deferred tax assets in China. As a result, the Company recorded net income tax benefits totaling |
Modine Manufacturing Company | |||||||||||||||||||||||
Segment adjusted financial results (unaudited) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three months ended March 31, 2022 | Three months ended March 31, 2021 | ||||||||||||||||||||||
Building | Commercial | Heavy | Automotive | Corporate | Total | Building | Commercial | Heavy | Automotive | Corporate | Total | ||||||||||||
Operating income (loss) | $ 15.6 | $ 18.6 | $ 9.6 | $ (18.2) | $ (5.0) | $ 20.6 | $ 9.6 | $ 5.8 | $ 13.2 | $ (30.2) | $ (12.7) | $ (14.3) | |||||||||||
Depreciation and amortization expense | 1.5 | 5.3 | 5.5 | 1.7 | 0.4 | 14.4 | 1.4 | 5.6 | 6.5 | 0.5 | 0.4 | 14.4 | |||||||||||
Restructuring expenses (a) | 0.3 | 0.2 | 0.5 | 20.1 | - | 21.1 | - | 0.8 | 1.1 | 3.2 | 1.3 | 6.4 | |||||||||||
Impairment charges (reversals) – net (a) | - | - | - | - | - | - | - | - | - | 32.4 | - | 32.4 | |||||||||||
Automotive separation and exit strategy costs (a) | - | - | - | - | 0.1 | 0.1 | - | - | - | - | 2.5 | 2.5 | |||||||||||
Strategic reorganization costs (a) | - | - | - | - | 0.3 | 0.3 | - | - | - | - | 0.8 | 0.8 | |||||||||||
Environmental charges (a) | - | - | - | - | 0.2 | 0.2 | - | - | - | - | - | - | |||||||||||
Adjusted EBITDA | $ 17.4 | $ 24.1 | $ 15.6 | $ 3.6 | $ (4.0) | $ 56.7 | $ 11.0 | $ 12.2 | $ 20.8 | $ 5.9 | $ (7.7) | $ 42.2 | |||||||||||
Twelve months ended March 31, 2022 | Twelve months ended March 31, 2021 | ||||||||||||||||||||||
Building | Commercial | Heavy | Automotive | Corporate | Total | Building | Commercial | Heavy | Automotive | Corporate | Total | ||||||||||||
Operating income (loss) | $ 45.7 | $ 35.3 | $ 34.6 | $ 35.4 | $ (31.8) | $ 45.2 | $ 10.2 | $ 36.8 | $ (150.9) | $ (39.0) | $ (97.7) | ||||||||||||
Depreciation and amortization expense | 5.9 | 20.5 | 23.4 | 3.4 | 1.6 | 54.8 | 5.5 | 22.6 | 25.5 | 13.2 | 1.8 | 68.6 | |||||||||||
Restructuring expenses (a) | 0.3 | 2.3 | 1.2 | 20.3 | - | 24.1 | - | 5.2 | 3.0 | 3.8 | 1.4 | 13.4 | |||||||||||
Impairment charges (reversals) – net (a) | - | 0.3 | - | (56.0) | - | (55.7) | - | - | - | 166.8 | - | 166.8 | |||||||||||
Loss on sale of assets (a) | - | - | - | - | 6.6 | 6.6 | - | - | - | - | - | - | |||||||||||
Automotive separation and exit strategy costs (a) | - | - | - | - | 2.6 | 2.6 | - | - | - | - | 6.6 | 6.6 | |||||||||||
Strategic reorganization costs (a) | - | - | - | - | 3.4 | 3.4 | - | - | - | - | 6.7 | 6.7 | |||||||||||
Environmental charges (a) | - | - | - | - | 3.8 | 3.8 | - | - | 0.4 | - | - | 0.4 | |||||||||||
Adjusted EBITDA | $ 51.9 | $ 58.4 | $ 59.2 | $ 3.1 | $ (13.8) | $ 50.7 | $ 38.0 | $ 65.7 | $ 32.9 | $ (22.5) | $ 164.8 | ||||||||||||
(a) See the Adjusted EBITDA reconciliation on the previous page for information on restructuring expenses and other adjustments. | |||||||||||||||||||||||
Net debt (unaudited) | |||||||
(In millions) | |||||||
March 31, 2022 | March 31, 2021 | ||||||
Debt due within one year | $ 29.4 | $ 23.3 | |||||
Long-term debt | 348.4 | 311.2 | |||||
Total debt | 377.8 | 334.5 | |||||
Less: cash and cash equivalents | 45.2 | 37.8 | |||||
Net debt | $ 332.6 | $ 296.7 | |||||
Free cash flow (unaudited) | |||||||
(In millions) | |||||||
Three months ended March 31, | Twelve months ended March 31, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net cash provided by operating activities | $ 4.1 | $ 3.3 | $ 11.5 | $ 149.8 | |||
Expenditures for property, plant and equipment | (9.6) | (9.0) | (40.3) | (32.7) | |||
Free cash flow | $ (5.5) | $ (5.7) | $ (28.8) | $ 117.1 | |||
SOURCE: Modine Manufacturing Company
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com
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SOURCE Modine Manufacturing Company
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