Modine Reports Third Quarter Fiscal 2021 Results
Modine Manufacturing Company (NYSE: MOD) reported its Q3 financial results for the quarter ending December 31, 2020. Net sales reached $484.3 million, marking a 2% year-over-year increase, driven by favorable currency impacts. However, the company faced a GAAP operating loss of $108.7 million due to $134.4 million in impairment charges within the automotive segment. Adjusted earnings per share improved to $0.41, up from $0.37 in the prior year. The company maintains its fiscal 2021 outlook, expecting sales to decline between 7% and 12%.
- Net sales increased by 2% to $484.3 million, driven by favorable currency impacts and higher sales volume in Heavy Duty Equipment.
- Adjusted EBITDA rose by 7% to $46.7 million, indicating improved gross margin performance.
- Free cash flow improved to $122.8 million for the first nine months, reflecting better working capital management.
- GAAP operating loss of $108.7 million primarily due to $134.4 million impairment charges in the automotive segment.
- CIS segment sales decreased by 13%, causing a significant gross margin decline of 560 basis points.
- Maintained guidance indicates potential full-year sales decline of 7 to 12% due to tariffs and rising material costs.
RACINE, Wis., Feb. 4, 2021 /PRNewswire/ -- Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended December 31, 2020.
Third Quarter Highlights:
- Net sales of
$484.3 million increased 2 percent from the prior year, primarily due to favorable currency impacts - Impairment charges related to assets in the automotive segment and income tax valuation allowance charges resulted in a GAAP operating loss of
$108.7 million and net loss per share of$3.81 - Adjusted EBITDA of
$46.7 million , up 7 percent from prior year on a 160 basis point improvement in gross margin - Adjusted earnings per share of
$0.41 , up$0.04 from prior year - Strong cash flow, with
$146.5 million of cash flow from operating activities and$122.8 million of free cash flow on a year-to-date basis
"I appreciate our employees, suppliers and customers who continue to drive performance during this difficult and uncertain time, while remaining equally focused on workplace safety," said Modine President and Chief Executive Officer, Neil D. Brinker. "The improvements this quarter were driven by the ongoing rebound in our heavy duty markets and another excellent quarter in our Building HVAC segment, resulting from share gains in both heating and data center markets. We remain focused on accelerating our transformation to a diversified industrial company, which includes finalizing the exit of our automotive business. Cash flow remains strong on lower capital spending and working capital control. After my first several weeks with Modine, I see great potential for us to leverage our technical leadership and innovation in thermal management to drive long-term growth and earnings improvements."
Financial Results
Net sales increased 2 percent in the third quarter to
Gross profit increased 13 percent in the third quarter to
Selling, general and administrative ("SG&A") expenses were
The operating loss in the third quarter was
GAAP loss per share was
Third Quarter Segment Review
- CIS segment sales were
$129.0 million , compared with$147.5 million one year ago, a decrease of 13 percent. The decrease was driven by an anticipated sales decrease to the company's largest data center customer and was partially offset by a favorable currency impact. The segment reported gross margin of 9.8 percent, down 560 basis points compared with the prior year, primarily due to lower sales volume, unfavorable sales mix and, to a lesser extent, temporary operating inefficiencies associated with the consolidation of manufacturing operations in China. The segment reported an operating loss of$1.7 million , representing a$10.0 million decline, primarily due to lower gross profit on lower sales. Adjusted EBITDA for the CIS segment was$5.0 million , a decrease of$10.1 million from the prior year. - Building HVAC Systems ("BHVAC") segment sales were
$68.7 million , compared with$64.9 million one year ago, an increase of 6 percent. This increase was driven primarily by higher sales of heating products in North America and data center products in the U.K. The segment reported gross margin of 37.3 percent, which was 180 basis points higher than the prior year, primarily due to higher sales volume, favorable customer pricing and sales mix. The segment reported operating income of$15.8 million , an increase of 17 percent, primarily due to higher gross profit. Adjusted EBITDA for the BHVAC segment was$16.6 million , an increase of$2.2 million , or 15 percent, from the prior year. - HDE segment sales were
$185.6 million , compared with$164.9 million one year ago, an increase of 13 percent. This increase was primarily driven by higher sales to off-highway and truck customers globally. The segment reported gross margin of 14.0 percent, 380 basis points higher than the prior year. This increase was primarily due to higher sales volume and savings from procurement and other cost-reduction initiatives. The segment reported operating income of$12.8 million , an increase of$10.0 million , primarily due to higher gross profit on the higher sales volume. Adjusted EBITDA for the HDE segment was$19.7 million , an increase of$9.1 million , or 86 percent, from the prior year. - Automotive segment sales were
$113.9 million , compared with$110.5 million one year ago, an increase of$3.4 million , or 3 percent. The increase was primarily driven by favorable currency impacts, which totaled$6.7 million , and higher sales volume in Asia, partially offset by lower sales volume in Europe and North America. The segment reported gross margin of 16.1 percent, up 510 basis points compared with the prior year, primarily due to lower depreciation expense and improved operating performance. The Company ceased depreciation of the long-lived assets within the liquid-cooled automotive business when it was classified as held for sale in November 2020. The segment reported an operating loss of$124.9 million , including$134.4 million of impairment charges related to the assets held for sale. Adjusted EBITDA for the Automotive segment was$12.3 million , an increase of$5.6 million , or 84 percent, from the prior year, primarily due to higher gross profit and lower SG&A expenses.
Balance Sheet & Liquidity
Net cash provided by operating activities for the nine months ended December 31, 2020 was
Total debt was
Outlook
"We are maintaining our fiscal 2021 outlook," concluded Brinker. "We anticipate the ongoing recovery in certain end markets, partially offset by new tariffs and rising raw material costs, along with the reversal of temporary COVID-related cost reduction measures."
Based on current exchange rates, market outlook and business forecast, Modine confirms the following guidance ranges for fiscal 2021:
- Full fiscal year-over-year sales down 7 to 12 percent;
- Adjusted EBITDA of
$155 million to$165 million .
Conference Call and Webcast
Modine will conduct a conference call and live webcast, with a slide presentation, on Friday, February 5, 2021 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its third quarter fiscal 2021 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 February 5, 2021. A call-in replay will be available through midnight on February 9, 2021, at 800-585-8367, (international replay 416-621-4642); Conference ID# 7790646. The Company will post a transcript of the call on its website, on February 9, 2021.
About Modine
Modine, with fiscal 2020 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, 2020 and under Forward-Looking Statements in Item 7 of Part II of that same report and in the Company's Quarterly Reports on Form 10-Q for the quarters ended June 30, 2020 and September 30, 2020. 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 price-down focus of Modine's customers; our ability to successfully execute our strategic and operational plans, including our ability to successfully complete the pending sale of our liquid-cooled automotive business, including the receipt of governmental and third-party approvals and satisfaction of other closing conditions, and our ability to successfully exit our other automotive businesses; our ability to effectively and efficiently reduce our cost structure in response to sales volume declines 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, product transfers, and delays or inefficiencies resulting from restrictions imposed in response to the COVID-19 pandemic; economic, social and political conditions, changes and challenges in the markets where Modine operates and competes, including foreign currency exchange rate fluctuations, tariffs (and potential trade war impacts resulting from tariffs or retaliatory actions), inflation, 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 and other matters, that have been or may be implemented in the U.S. or abroad, and continuing uncertainty regarding the impacts of "Brexit"; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components, 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; the concentration of sales within our CIS segment attributed to one customer; Modine's ability to recruit and maintain talent in managerial, leadership, 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, 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, and certain other gains or charges.
Definition – Adjusted earnings per share
Diluted earnings per share plus restructuring expenses, impairment charges, costs associated with the review of strategic alternatives for the Automotive segment's business operations, 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 2021 guidance includes Adjusted EBITDA, as defined above, which is a non-GAAP financial measure. The full-year fiscal 2021 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 December 31, | Nine months ended December 31, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Net sales | $ | 484.3 | $ | 473.4 | $ | 1,293.5 | $ | 1,502.6 | |||
Cost of sales | 401.6 | 399.9 | 1,083.9 | 1,270.0 | |||||||
Gross profit | 82.7 | 73.5 | 209.6 | 232.6 | |||||||
Selling, general & administrative expenses | 56.1 | 63.5 | 151.6 | 194.4 | |||||||
Restructuring expenses | 0.9 | 2.6 | 7.0 | 6.7 | |||||||
Impairment charges | 134.4 | - | 134.4 | - | |||||||
Gain on sale of assets | - | (0.8) | - | (0.8) | |||||||
Operating (loss) income | (108.7) | 8.2 | (83.4) | 32.3 | |||||||
Interest expense | (4.6) | (5.6) | (15.2) | (17.3) | |||||||
Other (expense) income- net | (0.5) | 0.1 | (1.0) | (2.3) | |||||||
(Loss) earnings before income taxes | (113.8) | 2.7 | (99.6) | 12.7 | |||||||
Provision for income taxes | (81.6) | (1.7) | (95.3) | (8.3) | |||||||
Net (loss) earnings | (195.4) | 1.0 | (194.9) | 4.4 | |||||||
Net (earnings) loss attributable to noncontrolling interest | (0.3) | 0.2 | (0.8) | 0.1 | |||||||
Net (loss) earnings attributable to Modine | $ | (195.7) | $ | 1.2 | $ | (195.7) | $ | 4.5 | |||
Net (loss) earnings per share attributable to Modine shareholders - diluted | $ | (3.81) | $ | 0.02 | $ | (3.82) | $ | 0.09 | |||
Weighted-average shares outstanding - diluted | 51.3 | 51.1 | 51.2 | 51.1 | |||||||
Condensed consolidated balance sheets (unaudited) | |||||||||||
(In millions) | |||||||||||
December 31, 2020 | March 31, 2020 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 72.9 | $ | 70.9 | |||||||
Trade receivables | 233.5 | 292.5 | |||||||||
Inventories | 190.6 | 207.4 | |||||||||
Assets held for sale | 92.9 | - | |||||||||
Other current assets | 39.5 | 62.5 | |||||||||
Total current assets | 629.4 | 633.3 | |||||||||
Property, plant and equipment - net | 305.2 | 448.0 | |||||||||
Intangible assets - net | 104.5 | 106.3 | |||||||||
Goodwill | 172.4 | 166.1 | |||||||||
Deferred income taxes | 25.2 | 104.8 | |||||||||
Other noncurrent assets | 70.0 | 77.6 | |||||||||
Total assets | $ | 1,306.7 | $ | 1,536.1 | |||||||
Liabilities and shareholders' equity | |||||||||||
Debt due within one year | $ | 22.6 | $ | 30.4 | |||||||
Accounts payable | 200.6 | 227.4 | |||||||||
Liabilities held for sale | 83.2 | - | |||||||||
Other current liabilities | 114.6 | 114.2 | |||||||||
Total current liabilities | 421.0 | 372.0 | |||||||||
Long-term debt | 342.0 | 452.0 | |||||||||
Other noncurrent liabilities | 195.1 | 218.5 | |||||||||
Total liabilities | 958.1 | 1,042.5 | |||||||||
Total equity | 348.6 | 493.6 | |||||||||
Total liabilities & equity | $ | 1,306.7 | $ | 1,536.1 | |||||||
Modine Manufacturing Company | |||||||||||
Condensed consolidated statements of cash flows (unaudited) | |||||||||||
(In millions) | |||||||||||
Nine months ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) earnings | $ | (194.9) | $ | 4.4 | |||||||
Adjustments to reconcile net (loss) earnings to net cash provided by | |||||||||||
operating activities: | |||||||||||
Depreciation and amortization | 54.2 | 57.8 | |||||||||
Impairment charges | 134.4 | - | |||||||||
Gain on sale of assets | - | (0.8) | |||||||||
Stock-based compensation expense | 4.2 | 5.2 | |||||||||
Deferred income taxes | 77.5 | 0.2 | |||||||||
Other - net | 4.7 | 3.5 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts receivable | 24.5 | 52.6 | |||||||||
Inventories | 9.9 | (23.6) | |||||||||
Accounts payable | 1.1 | (32.4) | |||||||||
Other assets and liabilities | 30.9 | (21.0) | |||||||||
Net cash provided by operating activities | 146.5 | 45.9 | |||||||||
Cash flows from investing activities: | |||||||||||
Expenditures for property, plant and equipment | (23.7) | (58.2) | |||||||||
Proceeds from disposition of assets | 0.7 | 6.5 | |||||||||
Other - net | 0.6 | 4.6 | |||||||||
Net cash used for investing activities | (22.4) | (47.1) | |||||||||
Cash flows from financing activities: | |||||||||||
Net (decrease) increase in debt | (119.0) | 3.8 | |||||||||
Other - net | (1.6) | (7.7) | |||||||||
Net cash used for financing activities | (120.6) | (3.9) | |||||||||
Effect of exchange rate changes on cash | 3.6 | (0.5) | |||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and cash held for sale | 7.1 | (5.6) | |||||||||
Cash, cash equivalents, restricted cash and cash held for sale - beginning of period | 71.3 | 42.2 | |||||||||
Cash, cash equivalents, restricted cash and cash held for sale - end of period | $ | 78.4 | $ | 36.6 | |||||||
Modine Manufacturing Company | |||||||||||
Segment operating results (unaudited) | |||||||||||
(In millions) | |||||||||||
Three months ended December 31, | Nine months ended December 31, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Net sales: | |||||||||||
Commercial and Industrial Solutions | $ | 129.0 | $ | 147.5 | $ | 385.6 | $ | 473.0 | |||
Building HVAC Systems | 68.7 | 64.9 | 178.2 | 169.9 | |||||||
Heavy Duty Equipment | 185.6 | 164.9 | 474.7 | 568.5 | |||||||
Automotive | 113.9 | 110.5 | 285.9 | 339.8 | |||||||
Segment total | 497.2 | 487.8 | 1,324.4 | 1,551.2 | |||||||
Corporate and eliminations | (12.9) | (14.4) | (30.9) | (48.6) | |||||||
Net sales | $ | 484.3 | $ | 473.4 | $ | 1,293.5 | $ | 1,502.6 | |||
Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | $'s | % of sales | $'s | % of sales | |||||||
Commercial and Industrial Solutions | $ | 12.6 | $ | 22.7 | $ | 47.4 | $ | 69.9 | |||||||
Building HVAC Systems | 25.7 | 23.1 | 61.9 | 54.5 | |||||||||||
Heavy Duty Equipment | 26.0 | 16.8 | 60.9 | 71.7 | |||||||||||
Automotive | 18.4 | 12.2 | 39.8 | 37.7 | |||||||||||
Segment total | 82.7 | 74.8 | 210.0 | 233.8 | |||||||||||
Corporate and eliminations | - | - | (1.3) | - | (0.4) | - | (1.2) | - | |||||||
Gross profit | $ | 82.7 | $ | 73.5 | $ | 209.6 | $ | 232.6 | |||||||
Three months ended December 31, | Nine months ended December 31, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Operating income: | |||||||||||
Commercial and Industrial Solutions | $ | (1.7) | $ | 8.3 | $ | 3.9 | $ | 25.8 | |||
Building HVAC Systems | 15.8 | 13.5 | 36.0 | 27.6 | |||||||
Heavy Duty Equipment | 12.8 | 2.8 | 23.6 | 27.2 | |||||||
Automotive | (124.9) | 1.6 | (120.7) | 2.0 | |||||||
Segment total | (98.0) | 26.2 | (57.2) | 82.6 | |||||||
Corporate and eliminations | (10.7) | (18.0) | (26.2) | (50.3) | |||||||
Operating (loss) income | $ | (108.7) | $ | 8.2 | $ | (83.4) | $ | 32.3 | |||
Modine Manufacturing Company | |||||||||||
Adjusted financial results (unaudited) | |||||||||||
(In millions, except per share amounts) | |||||||||||
Three months ended December 31, | Nine months ended December 31, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Net (loss) earnings | $ | (195.4) | $ | 1.0 | $ | (194.9) | $ | 4.4 | |||
Interest expense | 4.6 | 5.6 | 15.2 | 17.3 | |||||||
Provision for income taxes | 81.6 | 1.7 | 95.3 | 8.3 | |||||||
Depreciation and amortization expense | 16.3 | 19.5 | 54.2 | 57.8 | |||||||
Other expense (income) - net | 0.5 | (0.1) | 1.0 | 2.3 | |||||||
Restructuring expenses (a) | 0.9 | 2.6 | 7.0 | 6.7 | |||||||
Impairment charges (b) | 134.4 | - | 134.4 | - | |||||||
Gain on sale of assets (c) | - | (0.8) | - | (0.8) | |||||||
Automotive separation and strategy costs(d) | 3.0 | 14.0 | 4.1 | 34.3 | |||||||
CEO transition costs (e) | 0.4 | - | 5.9 | - | |||||||
Environmental charges (f) | 0.4 | - | 0.4 | 0.1 | |||||||
Adjusted EBITDA | $ | 46.7 | $ | 43.5 | $ | 122.6 | $ | 130.4 | |||
Net (loss) earnings per share attributable to Modine shareholders - diluted | $ | (3.81) | $ | 0.02 | $ | (3.82) | $ | 0.09 | |||
Restructuring expenses (a) | 0.02 | 0.04 | 0.12 | 0.11 | |||||||
Impairment charges (b) | 1.88 | - | 1.88 | - | |||||||
Gain on sale of assets (c) | - | (0.01) | - | (0.01) | |||||||
Automotive separation and strategy costs(d) | 0.04 | 0.21 | 0.06 | 0.51 | |||||||
CEO transition costs (e) | 0.01 | - | 0.10 | - | |||||||
Environmental charges (f) | 0.01 | - | 0.01 | - | |||||||
Tax valuation allowances (g) | 2.26 | 0.06 | 2.40 | 0.06 | |||||||
Tax from legal entity restructuring(h) | - | 0.05 | - | 0.05 | |||||||
Adjusted earnings per share | $ | 0.41 | $ | 0.37 | $ | 0.75 | $ | 0.81 | |||
(a) | Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions and plant consolidation activities. The tax benefit related to restructuring expenses during the third quarter of fiscal 2021 and fiscal 2020 was |
(b) | On November 2, 2020, the Company signed a definitive agreement to sell its liquid-cooled automotive business to Dana Incorporated. As a result, the Company recorded a non-cash impairment charge of |
(c) | During fiscal 2020, the Automotive segment sold a previously-closed manufacturing facility in Germany and, as a result, recorded a gain of |
(d) | Automotive separation and strategy costs consist of costs directly associated with the Company's review of strategic alternatives for the liquid-cooled automotive business, including costs to separate and prepare the underlying businesses for potential sale. With the exception of |
(e) | In August 2020, Thomas A. Burke stepped down from his position as President and Chief Executive Officer ("CEO"). The Board of Directors subsequently conducted a search for his successor and, effective December 1, 2020, appointed Neil D. Brinker as President and CEO. As a result of Mr. Burke's departure and in connection with the search for his successor, the Company recorded costs totaling |
(f) | Environmental charges, including related legal costs, are recorded as SG&A expenses and relate to a previously-owned U.S. manufacturing facility in the Heavy Duty Equipment segment. |
(g) | During fiscal 2021, the Company increased its valuation allowance on deferred tax assets in the U.S. and abroad. As a result, the Company recorded income tax charges totaling |
(h) | During fiscal 2020, the Company recorded a net income tax charge totaling |
Modine Manufacturing Company | |||||||||||||||||||||||
Segment adjusted financial results (unaudited) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three months ended December 31, 2020 | Three months ended December 31, 2019 | ||||||||||||||||||||||
Commercial and Industrial Solutions | Building HVAC Systems | Heavy Duty Equipment | Automotive | Commercial and Industrial Solutions | Building HVAC Systems | Heavy Duty Equipment | Automotive | ||||||||||||||||
Operating income (loss) | $ | (1.7) | $ | 15.8 | $ | 12.8 | $ | (124.9) | $ | 8.3 | $ | 13.5 | $ | 2.8 | $ | 1.6 | |||||||
Depreciation and amortization expense | 6.2 | 0.8 | 6.5 | 2.4 | 6.1 | 0.9 | 6.4 | 5.7 | |||||||||||||||
Restructuring expenses (a) | 0.5 | - | - | 0.4 | 0.7 | - | 1.4 | 0.2 | |||||||||||||||
Impairment charges (a) | - | - | - | 134.4 | - | - | - | - | |||||||||||||||
Gain on sale of assets (a) | - | - | - | - | - | - | - | (0.8) | |||||||||||||||
Environmental charges (a) | - | - | 0.4 | - | - | - | - | - | |||||||||||||||
Adjusted EBITDA | $ | 5.0 | $ | 16.6 | $ | 19.7 | $ | 12.3 | $ | 15.1 | $ | 14.4 | $ | 10.6 | $ | 6.7 | |||||||
Nine months ended December 31, 2020 | Nine months ended December 31, 2019 | ||||||||||||||||||||||
Commercial and Industrial Solutions | Building HVAC Systems | Heavy Duty Equipment | Automotive | Commercial and Industrial Solutions | Building HVAC Systems | Heavy Duty Equipment | Automotive | ||||||||||||||||
Operating income (loss) | $ | 3.9 | $ | 36.0 | $ | 23.6 | $ | (120.7) | $ | 25.8 | $ | 27.6 | $ | 27.2 | $ | 2.0 | |||||||
Depreciation and amortization expense | 18.8 | 2.3 | 19.0 | 12.7 | 17.8 | 2.5 | 19.2 | 16.6 | |||||||||||||||
Restructuring expenses (a) | 4.4 | - | 1.9 | 0.6 | 1.3 | - | 2.2 | 2.9 | |||||||||||||||
Impairment charge (a) | - | - | - | 134.4 | - | - | - | - | |||||||||||||||
Gain on sale of assets (a) | - | - | - | - | - | - | - | (0.8) | |||||||||||||||
Environmental charges (a) | - | - | 0.4 | - | - | - | 0.1 | - | |||||||||||||||
Adjusted EBITDA | $ | 27.1 | $ | 38.3 | $ | 44.9 | $ | 27.0 | $ | 44.9 | $ | 30.1 | $ | 48.7 | $ | 20.7 | |||||||
(a) See the Adjusted EBITDA reconciliation on the previous page for information on restructuring expenses and other adjustments. | |||||||||||||||||||||||
Net debt (unaudited) | |||||||||||
(In millions) | |||||||||||
December 31, 2020 | March 31, 2020 | ||||||||||
Debt due within one year | $ | 22.6 | $ | 30.4 | |||||||
Long-term debt | 342.0 | 452.0 | |||||||||
Total debt | 364.6 | 482.4 | |||||||||
Less: cash and cash equivalents | 72.9 | 70.9 | |||||||||
Net debt | $ | 291.7 | $ | 411.5 | |||||||
Free cash flow (unaudited) | |||||||||||
(In millions) | |||||||||||
Three months ended December 31, | Nine months ended December 31, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Net cash provided by operating activities | $ | 59.2 | $ | 28.4 | $ | 146.5 | $ | 45.9 | |||
Expenditures for property, plant and equipment | (9.1) | (16.8) | (23.7) | (58.2) | |||||||
Free cash flow | $ | 50.1 | $ | 11.6 | $ | 122.8 | $ | (12.3) | |||
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com
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SOURCE Modine Manufacturing Company
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