RACINE, Wis., Nov. 7, 2019 /PRNewswire/ -- Modine Manufacturing
Company (NYSE: MOD), a diversified global leader in thermal
management technology and solutions, today reported financial
results for the quarter ended September 30,
2019.
Second Quarter Highlights:
- Net sales of $500.2 million
decreased 9 percent from the prior year
- Operating income declined to $6.0
million and adjusted operating income to $20.2 million
- Loss per share of $0.09 and
adjusted earnings per share of $0.13
- Company adjusts outlook to reflect further weakening of market
conditions
"Our second quarter results were well below our expectations as
market conditions deteriorated more significantly than we
expected," said Modine President and
Chief Executive Officer, Thomas A.
Burke. "While we did see double-digit top-line growth
in our BHVAC business, our VTS and CIS segments both experienced
larger than expected declines in customer orders that will
negatively impact our revenues and earnings in the second half of
the year. In response to this challenging environment, we are
focusing on things that we can control. We are implementing a
comprehensive cost reduction plan including immediate operational
and SG&A expense reductions that we expect to yield between
$25 million to $30 million in annual savings over the next 18
months. In addition, we expect that the recent changes made
to our CIS business leadership structure will have a positive
impact on that segment, and we continue to invest in growth in our
BHVAC segment, particularly with regard to expanding our data
center market offerings."
Net sales decreased 9 percent in the second quarter to
$500.2 million, compared with
$548.9 million in the prior
year. This decrease was primarily driven by lower sales in
the VTS and CIS segments, and unfavorable currency impacts,
partially offset by higher sales in the Building HVAC
segment.
Gross profit decreased 14 percent in the second quarter to
$75.7 million, primarily driven by
volume declines in the VTS and CIS segments. This was
partially offset by higher gross profit in the Building HVAC
segment, which increased 18 percent on higher sales volumes.
Overall gross margin decreased 90 basis points during the quarter
to 15.1 percent, primarily due to lower margins in the VTS and CIS
segments as a result of lower sales volumes, higher labor costs and
unfavorable sales mix, partially offset by lower commodity metal
costs.
Selling, general and administrative ("SG&A") expenses were
$67.4 million in the second quarter,
$4.0 million higher than the
prior year. This increase was primarily due to $11.9 million of costs associated with the
potential sale of the VTS segment's automotive business, which
consisted primarily of third-party professional services and costs
incurred to prepare the business for sale. The net decrease in
other SG&A expenses was $7.9
million, due primarily to lower compensation-related
expenses and environmental charges.
Operating income was $6.0 million
in the second quarter, compared to $22.8
million in the prior year, a decrease of 74 percent.
This decrease was driven primarily by lower gross profit and higher
SG&A expenses, as compared to the prior year. During the second
quarter of fiscal 2020, the Company recorded $11.9 million of costs related to the potential
sale of the automotive business and $2.3
million of restructuring expenses primarily related to
employee severance expenses. In the prior year, environmental
expenses and certain other items totaled $3.7 million. Excluding these items,
adjusted operating income of $20.2
million was down 24 percent compared with $26.5 million in the prior year.
Loss per share was $0.09, compared
with earnings per share of $0.75 in
the prior year. This decrease was primarily due to lower
operating income compared to the prior year, including the impact
of lower sales volume and higher strategy costs and a $0.47 income tax benefit in the prior year
related to the accounting for U.S. tax reform. Adjusted
earnings per share decreased $0.22 in
the second quarter to $0.13, compared
with $0.35 in the prior year.
This decrease was primarily due to lower adjusted operating income
and higher income taxes as compared to the prior year.
Second Quarter Segment Review
- VTS segment sales were $299.3
million, compared with $335.6
million one year ago, a decrease of 11 percent. This
decrease was driven by lower sales to global off-highway and
commercial vehicle customers and unfavorable currency impacts. The
segment reported gross margin of 11.8 percent, down 150 basis
points from the prior year. This decrease was primarily due to
lower sales volume and higher labor costs, partially offset by
lower commodity metal costs. Operating income of $7.4 million decreased $6.7 million compared to the prior year. This
decrease was due to lower gross profit and higher restructuring
expenses, partially offset by lower SG&A expense as compared to
the prior year.
- CIS segment sales were $156.7
million, compared with $178.2
million one year ago, a decrease of 12 percent. This
decrease was driven by lower sales to commercial HVAC&R and
data center customers and unfavorable currency impacts. The segment
reported gross margin of 14.6 percent, down 130 basis points
compared with the prior year, primarily due to lower sales volumes
and unfavorable sales mix. Operating income of $8.5 million was down $4.4
million, primarily due to lower gross profit, partially
offset by lower SG&A expense as compared to the prior
year.
- Building HVAC segment sales were $56.0
million, compared with $50.7
million one year ago, an increase of 10 percent. This
increase was driven primarily by higher sales of ventilation and
heating products in the U.S. The segment reported gross margin of
31.7 percent, 220 basis points higher than the prior year. This
improvement was primarily due to higher sales volume and favorable
sales mix. The segment reported operating income of $8.8 million, an increase of $4.0 million, primarily due to higher gross
profit on higher sales volume compared with the prior year.
Balance Sheet & Liquidity
Total debt was $465.2 million as
of September 30, 2019. Cash and cash
equivalents at the end of the second quarter were $32.3 million. Net debt was $432.9 million as of September 30, 2019, an increase of $24.9 million from the end of fiscal 2019.
Net cash provided by operating activities for the six months
ended September 30, 2019 was
$17.5 million, compared with
$36.7 million one year ago. Free cash
flow for the six month period was a use of $23.9 million. Free cash flow was
negatively impacted by $19.6 million
of cash payments related to the potential sale of the automotive
business and for restructuring activities. In addition, the
Company maintained higher inventory levels as of September 30, 2019, as compared with the prior
year end, primarily resulting from the need to increase stock of
raw materials prior to resourcing purchases from overseas and in
advance of the potential sale of Modine's automotive
business.
Outlook
"Although we are lowering our revenue and earnings guidance to
reflect the current weak market conditions, we are taking
aggressive actions to improve our profitability and cash
flows," commented Burke. "In addition, while the
process has taken longer than anticipated due to the challenging
economic environment, we are continuing to work diligently towards
the divestiture of our automotive business. We remain
committed to our strategy of becoming a more diversified industrial
company, as we believe it will maximize value for our shareholders,
both now and in the future."
Modine provides the following updated guidance ranges for fiscal
2020, which are based on our current outlook and forecast and are
inclusive of the automotive business in our VTS segment:
- Full year year-over-year sales down 7 to 12 percent;
- Adjusted operation income of $85
million to $95 million;
and
- Adjusted earnings per share of $0.75 to $0.90.
Conference Call and Webcast
Modine will conduct a conference call and live webcast, with a
slide presentation, on Friday, November 8,
2019 at 8:00 a.m. Central Time
(9:00 a.m. Eastern Time) to discuss
its second quarter fiscal 2020 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 November 8, 2019. A call-in replay will be
available through midnight on November 12,
2019, at 800-585-8367, (international replay 416-621-4642);
Conference ID# 6072147. The company will post a transcript of the
call it on its website, on November 12,
2019.
About Modine
Modine, with fiscal 2019 revenues of $2.2
billion, specializes in thermal management systems and
components, bringing highly engineered heating and cooling
components, original equipment products, and systems to diversified
global markets through its three complementary segments: Vehicular
Thermal Solutions (VTS); Commercial & Industrial Solutions
(CIS); and Building HVAC Systems (Building HVAC). Modine is a
global company headquartered in Racine,
Wisconsin (USA), with operations in North America, South
America, Europe and
Asia. For more information about
Modine, visit www.modine.com.
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,
2019 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 quarter ended June 30,
2019. Other risks and uncertainties include, but are not
limited to, the following: 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 separate and sell our automotive business within the
VTS segment; our ability to effectively and efficiently reduce our
cost structure in response to sales volume declines and complete
restructuring activities and realize benefits thereon; operational
inefficiencies as a result of program launches, unexpected volume
increases 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, tariffs (and potential trade war impacts resulting
from tariffs or retaliatory actions), inflation, changes in
interest rates, recession, restrictions associated with importing
and exporting and foreign ownership, and the general uncertainties
about the impact of regulatory and/or policy changes, including
those related to tax and trade, that have been or may be
implemented in the U.S. or by its trade partners, and continuing
uncertainty regarding "Brexit"; the impact on Modine of any
significant increases in commodity prices, particularly aluminum,
copper, steel and stainless steel (nickel) and other purchased
component inventory, 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 operating income, 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. We believe
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 operating income and earnings per
share
Operating income or diluted earnings per share plus impairment
charges, restructuring expenses, and acquisition and integration
costs, and excluding certain other gains or charges. These
are measures of overall performance not including non-cash
impairment charges, costs associated with restructuring and
acquisitions, 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 measures
Our fiscal 2020 guidance includes adjusted operating income and
adjusted earnings per share. These are non-GAAP measures,
which exclude certain cash and non-cash expenses or gains. These
expenses and gains may be significant and include items such as
restructuring expenses (including severance costs and plant
consolidation and relocation expenses), costs associated with the
review of strategic alternatives for and potential sale of the
automotive business in our VTS segment, acquisition and integration
costs, impairment charges and certain other items. These
expenses or gains for the first six months of fiscal 2020 are
presented on page 7. Estimates of these expenses and gains
for the remainder of fiscal 2020 are not available due to the low
visibility and unpredictability of these items.
Modine
Manufacturing Company
|
Consolidated
statements of operations (unaudited)
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
500.2
|
|
$
548.9
|
|
$
1,029.2
|
|
$
1,115.0
|
Cost of
sales
|
424.5
|
|
461.0
|
|
870.1
|
|
932.8
|
Gross
profit
|
75.7
|
|
87.9
|
|
159.1
|
|
182.2
|
Selling, general
& administrative expenses
|
67.4
|
|
63.4
|
|
130.9
|
|
122.7
|
Restructuring
expenses
|
2.3
|
|
-
|
|
4.1
|
|
0.2
|
Loss on sale of
assets
|
-
|
|
1.7
|
|
-
|
|
1.7
|
Operating
income
|
6.0
|
|
22.8
|
|
24.1
|
|
57.6
|
Interest
expense
|
(5.8)
|
|
(6.5)
|
|
(11.7)
|
|
(12.7)
|
Other expense -
net
|
(1.3)
|
|
(0.5)
|
|
(2.4)
|
|
(1.6)
|
(Loss) earnings
before income taxes
|
(1.1)
|
|
15.8
|
|
10.0
|
|
43.3
|
(Provision) benefit
for income taxes
|
(3.7)
|
|
22.9
|
|
(6.6)
|
|
17.9
|
Net (loss)
earnings
|
(4.8)
|
|
38.7
|
|
3.4
|
|
61.2
|
Net loss (earnings)
attributable to noncontrolling interest
|
0.1
|
|
(0.2)
|
|
(0.1)
|
|
(0.7)
|
Net (loss)
earnings attributable to Modine
|
$
(4.7)
|
|
$
38.5
|
|
$
3.3
|
|
$
60.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
per share attributable to Modine shareholders - diluted:
|
$
(0.09)
|
|
$
0.75
|
|
$
0.06
|
|
$
1.18
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - diluted:
|
50.8
|
|
51.4
|
|
51.1
|
|
51.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
consolidated balance sheets (unaudited)
|
(In
millions)
|
|
September 30,
2019
|
|
March 31,
2019
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
32.3
|
|
$
41.7
|
Trade
receivables
|
310.4
|
|
338.6
|
Inventories
|
222.6
|
|
200.7
|
Other current
assets
|
77.1
|
|
65.8
|
Total current
assets
|
642.4
|
|
646.8
|
Property, plant and
equipment - net
|
465.7
|
|
484.7
|
Intangible assets -
net
|
110.3
|
|
116.2
|
Goodwill
|
166.1
|
|
168.5
|
Deferred income
taxes
|
97.0
|
|
97.1
|
Other noncurrent
assets
|
83.0
|
|
24.7
|
Total
assets
|
$
1,564.5
|
|
$
1,538.0
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Debt due within one
year
|
$
233.0
|
|
$
114.6
|
Accounts
payable
|
260.2
|
|
280.9
|
Other current
liabilities
|
124.6
|
|
121.6
|
Total current
liabilities
|
617.8
|
|
517.1
|
Long-term
debt
|
232.2
|
|
335.1
|
Other noncurrent
liabilities
|
188.9
|
|
144.7
|
Total
liabilities
|
1,038.9
|
|
996.9
|
Total
equity
|
525.6
|
|
541.1
|
Total liabilities
& equity
|
$
1,564.5
|
|
$
1,538.0
|
|
|
|
|
|
|
|
|
Modine
Manufacturing Company
|
Condensed
consolidated statements of cash flows (unaudited)
|
(In
millions)
|
|
|
|
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net
earnings
|
$
3.4
|
|
$
61.2
|
Adjustments to
reconcile net earnings to net cash provided by
|
|
|
|
operating
activities:
|
|
|
|
Depreciation and
amortization
|
38.3
|
|
38.5
|
Loss on sale of
assets
|
-
|
|
1.7
|
Stock-based
compensation expense
|
4.4
|
|
5.2
|
Deferred income
taxes
|
(0.5)
|
|
(6.4)
|
Other -
net
|
2.0
|
|
1.6
|
Changes in operating
assets and liabilities:
|
|
|
|
Trade accounts
receivable
|
19.9
|
|
(13.2)
|
Inventories
|
(26.2)
|
|
(30.4)
|
Accounts
payable
|
(5.6)
|
|
25.5
|
Other assets and
liabilities
|
(18.2)
|
|
(47.0)
|
Net cash provided
by operating activities
|
17.5
|
|
36.7
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Expenditures for
property, plant and equipment
|
(41.4)
|
|
(37.9)
|
Other -
net
|
4.8
|
|
0.9
|
Net cash used for
investing activities
|
(36.6)
|
|
(37.0)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Net increase in
debt
|
24.3
|
|
4.5
|
Other -
net
|
(7.8)
|
|
(5.4)
|
Net cash provided
by (used for) financing activities
|
16.5
|
|
(0.9)
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(0.9)
|
|
(2.5)
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
(3.5)
|
|
(3.7)
|
|
|
|
|
Cash, cash
equivalents and restricted cash - beginning of period
|
42.2
|
|
40.3
|
|
|
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
38.7
|
|
$
36.6
|
|
|
|
|
Modine
Manufacturing Company
|
Segment operating
results (unaudited)
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales:
|
|
|
|
|
|
|
|
Vehicular Thermal
Solutions
|
$
299.3
|
|
$
335.6
|
|
$
625.8
|
|
$
688.4
|
Commercial and
Industrial Solutions
|
156.7
|
|
178.2
|
|
325.5
|
|
362.1
|
Building HVAC
Systems
|
56.0
|
|
50.7
|
|
105.0
|
|
95.7
|
Segment
total
|
512.0
|
|
564.5
|
|
1,056.3
|
|
1,146.2
|
Corporate and
eliminations
|
(11.8)
|
|
(15.6)
|
|
(27.1)
|
|
(31.2)
|
Net
sales
|
$
500.2
|
|
$
548.9
|
|
$
1,029.2
|
|
$
1,115.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Gross
profit:
|
$'s
|
% of
sales
|
|
$'s
|
% of
sales
|
|
$'s
|
% of
sales
|
|
$'s
|
% of
sales
|
Vehicular Thermal
Solutions
|
$
35.3
|
11.8%
|
|
$
44.6
|
13.3%
|
|
$
80.3
|
12.8%
|
|
$
98.6
|
14.3%
|
Commercial and
Industrial Solutions
|
22.9
|
14.6%
|
|
28.3
|
15.9%
|
|
47.2
|
14.5%
|
|
56.9
|
15.7%
|
Building HVAC
Systems
|
17.7
|
31.7%
|
|
15.0
|
29.5%
|
|
31.4
|
29.9%
|
|
26.6
|
27.8%
|
Segment
total
|
75.9
|
14.8%
|
|
87.9
|
15.6%
|
|
158.9
|
15.0%
|
|
182.1
|
15.9%
|
Corporate and
eliminations
|
(0.2)
|
-
|
|
-
|
-
|
|
0.2
|
-
|
|
0.1
|
-
|
Gross
profit
|
$
75.7
|
15.1%
|
|
$
87.9
|
16.0%
|
|
$
159.1
|
15.5%
|
|
$
182.2
|
16.3%
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
income:
|
|
|
|
|
|
|
|
Vehicular Thermal
Solutions
|
$
7.4
|
|
$
14.1
|
|
$
24.7
|
|
$
39.6
|
Commercial and
Industrial Solutions
|
8.5
|
|
12.9
|
|
17.5
|
|
26.1
|
Building HVAC
Systems
|
8.8
|
|
4.8
|
|
14.1
|
|
8.0
|
Segment
total
|
24.7
|
|
31.8
|
|
56.3
|
|
73.7
|
Corporate and
eliminations
|
(18.7)
|
|
(9.0)
|
|
(32.2)
|
|
(16.1)
|
Operating income
(a)
|
$
6.0
|
|
$
22.8
|
|
$
24.1
|
|
$
57.6
|
|
|
|
|
|
|
|
|
(a) See
the adjusted operating income reconciliation on the next page for
information on restructuring expenses and other
adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modine
Manufacturing Company
|
Adjusted financial
results (unaudited)
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
income
|
$
6.0
|
|
$
22.8
|
|
$
24.1
|
|
$
57.6
|
Automotive business
strategy costs(a)
|
11.9
|
|
-
|
|
20.2
|
|
-
|
Restructuring
expenses (b)
|
2.3
|
|
-
|
|
4.1
|
|
0.2
|
Environmental charges
(c)
|
-
|
|
1.9
|
|
0.1
|
|
2.8
|
Loss on sale of
assets(d)
|
-
|
|
1.7
|
|
-
|
|
1.7
|
Acquisition
integration costs (e)
|
-
|
|
0.1
|
|
-
|
|
0.2
|
Adjusted operating
income
|
$
20.2
|
|
$
26.5
|
|
$
48.5
|
|
$
62.5
|
|
|
|
|
|
|
|
|
Net (loss) earnings
per share attributable to Modine shareholders - diluted
|
$
(0.09)
|
|
$
0.75
|
|
$
0.06
|
|
$
1.18
|
Automotive business
strategy costs(a)
|
0.18
|
|
-
|
|
0.30
|
|
-
|
Restructuring
expenses (b)
|
0.04
|
|
-
|
|
0.08
|
|
-
|
Environmental charges
(c)
|
-
|
|
0.03
|
|
-
|
|
0.04
|
Loss on sale of
assets(d)
|
-
|
|
0.03
|
|
-
|
|
0.03
|
U.S. tax
reform(f)
|
-
|
|
(0.47)
|
|
-
|
|
(0.47)
|
Tax valuation
allowances (g)
|
-
|
|
0.02
|
|
-
|
|
(0.02)
|
Adjusted earnings
per share
|
$
0.13
|
|
$
0.35
|
|
$
0.44
|
|
$
0.76
|
|
|
(a)
|
During the first six
months of fiscal 2020, the Company recorded $20.2 million of
SG&A expenses at Corporate related to its review of strategic
alternatives for the automotive business within its Vehicular
Thermal Solutions ("VTS") segment. These expenses primarily
related to third-party professional services and included costs to
prepare for a potential sale of the automotive business.
The tax benefit related to these costs was $5.0 million.
|
|
|
(b)
|
Restructuring
expenses primarily relate to employee severance expenses, largely
resulting from targeted headcount reductions in Europe and the
Americas within the VTS segment, and equipment transfer and
plant consolidation costs. The tax benefit related to these
costs during the first six months of fiscal 2020 was $0.3
million.
|
|
|
(c)
|
Environmental
charges, including related legal costs, are recorded as SG&A
expenses and relate to previously-owned U.S. manufacturing
facilities in the VTS segment.
|
|
|
(d)
|
During fiscal 2019,
the Building HVAC Systems segment sold its operations in South
Africa and, as a result, recorded a loss of $1.7 million. Annual
sales for this disposed business were less than $2.0 million.
There was no tax benefit associated with this transaction based
upon the capital loss tax treatment in the applicable
jurisdiction.
|
|
|
(e)
|
These costs related
to the Company's acquisition and integration of the Luvata Heat
Transfer Solutions business.
|
|
|
(f)
|
During the second
quarter of fiscal 2019, the Company recorded income tax benefits
totaling $24.4 million, which were primarily related to transition
tax obligations associated with tax reform legislation in the U.S.
that was enacted in December 2017 and the recognition of tax assets
for foreign tax credits.
|
|
|
(g)
|
During fiscal 2019,
the Company adjusted its valuation allowances on deferred tax
assets related to two separate subsidiaries in China. As a
result, the Company recorded a $2.0 million income tax benefit in
the first quarter of fiscal 2019 and an income tax charge of $1.0
million in the second quarter of fiscal 2019.
|
|
Modine
Manufacturing Company
|
Net debt
(unaudited)
|
|
|
|
(In
millions)
|
|
|
|
|
|
September 30,
2019
|
|
March 31,
2019
|
Debt due within one
year
|
$
233.0
|
|
$
114.6
|
Long-term
debt
|
232.2
|
|
335.1
|
Total debt
|
465.2
|
|
449.7
|
|
|
|
|
Less: cash and cash
equivalents
|
32.3
|
|
41.7
|
Net
debt
|
$
432.9
|
|
$
408.0
|
Free cash flow
(unaudited)
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net cash provided by
operating activities
|
$
17.0
|
|
$
40.8
|
|
$
17.5
|
|
$
36.7
|
Expenditures for
property, plant and equipment
|
(21.1)
|
|
(15.3)
|
|
(41.4)
|
|
(37.9)
|
Free cash
flow
|
$
(4.1)
|
|
$
25.5
|
|
$
(23.9)
|
|
$
(1.2)
|
|
|
|
|
|
|
|
|
Investors:
Kathleen Powers
(262) 636-1687
k.t.powers@na.modine.com
Media:
Lori Swarthout
(262) 636-1651
l.a.swarthout@na.modine.com
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multimedia:http://www.prnewswire.com/news-releases/modine-reports-second-quarter-fiscal-2020-results-300954276.html
SOURCE Modine Manufacturing Company