Strategic transformation well underway,
unlocking value through 80/20 initiatives and driving growth and
margin expansion
RACINE,
Wis., Aug. 3, 2022 /PRNewswire/ -- Modine
Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, today reported
financial results for the quarter ended June
30, 2022.
First Quarter Highlights:
- Net sales of $541.0 million
increased 9 percent from the prior year
- Operating income of $25.6 million
increased $16.9 million from the
prior year
- Adjusted EBITDA of $42.2 million
increased $8.9 million, or 27
percent, from the prior year
- Earnings per share of $0.27
compared to $0.04 in the prior
year
- Adjusted earnings per share of $0.32 compared to $0.20 in the prior year
"We generated strong revenue and earnings growth, led by our
Climate Solutions segment this quarter as we continue to reallocate
resources and capital towards the portions of our business that
have the greatest long-term growth potential," said Modine President and Chief Executive Officer,
Neil D. Brinker. "We continue to
take actions to combat supply-chain-related headwinds, particularly
in our Performance Technologies segment, and expect margins to
improve as the year progresses. Overall, we are pleased with
a strong start to our fiscal year, with expanded profitability
further validating our strategic direction and 80/20 focus as
outlined at our recent Investor and Analyst Day."
Financial Results
Net sales increased 9 percent in the first quarter to
$541.0 million, compared with
$494.6 million in the prior year. On
a constant currency basis, sales increased 15 percent. The increase
was driven by market-related volume improvements and favorable
pricing adjustments in both the Climate Solutions and Performance
Technologies segments.
Gross profit increased 14 percent in the first quarter to
$83.4 million and gross margin
improved by 60 basis points to 15.4 percent. These increases were
primarily driven by the higher sales volume and commercial pricing
in the Climate Solutions segment, partially offset by the ongoing
impact of higher material prices and other inflationary pressures
in the Performance Technologies segment.
Selling, general and administrative ("SG&A") expenses were
$56.3 million in the first quarter,
which was 5 percent lower than the prior year. This decrease was
primarily driven by lower environmental charges and lower costs
associated with our strategic reorganization and automotive exit
strategy, as compared with the prior year. These decreases
were partially offset by higher compensation-related expenses,
including higher commissions.
Operating income in the first quarter was $25.6 million, compared to $8.7 million in the prior year, an improvement of
$16.9 million. This improvement
was driven primarily by higher gross profit, the absence of a
$6.6 million loss on sale recorded in
the prior year related to the sale of our air-cooled automotive
business in Austria, and lower
SG&A expenses. During the first quarter of fiscal 2023,
the Company recorded $1.5 million of
restructuring expenses, primarily related to targeted headcount
reductions, and $1.2 million of
environmental charges. Excluding these items, as well as
depreciation and amortization expense, adjusted EBITDA of
$42.2 million increased $8.9 million, or 27 percent, compared with
$33.3 million in the prior
year.
Earnings per share was $0.27 in
the first quarter, compared with $0.04 in the first quarter last year. This
improvement was primarily due to higher operating earnings.
Adjusted earnings per share was $0.32
in the first quarter, compared with adjusted earnings per share of
$0.20 in the first quarter of the
prior year.
First Quarter Segment Review
- Climate Solutions segment sales were $244.4 million, compared with $206.5 million one year ago, an increase of 18
percent. On a constant currency basis, sales increased 25 percent
from the prior year. This increase was driven by higher sales of
heat transfer, HVAC and refrigeration, and data center cooling
products. The segment reported gross margin of 20.6 percent, which
was 480 basis points higher than the prior year, primarily due to
higher sales volume, favorable pricing and improved operating
efficiencies. The segment reported operating income of $27.0 million, a 152 percent increase from the
prior year. Adjusted EBITDA was $32.4
million, an increase of $15.4
million, or 91 percent, from the prior year.
- Performance Technologies segment sales were $304.3 million, compared with $297.1 million one year ago, an increase of 2
percent. On a constant currency basis, sales increased 7 percent.
This increase primarily resulted from favorable pricing, including
adjustments in response to raw material price increases and higher
sales volume. Compared with the prior year, sales of air-cooled and
advanced solution products increased and were partially offset by
lower sales of liquid-cooled products and the absence of sales from
the Austrian air-cooled automotive business, which we sold during
the first quarter last year. The segment reported gross margin of
10.8 percent, down 270 basis points from the prior year. This
decrease was primarily driven by ongoing inflationary pressures,
including significantly higher material prices as compared to the
prior year. Margins continue to be temporarily impacted by the lag
in our contract provisions for raw material price adjustments and
other ongoing pricing negotiations. The segment reported operating
income of $7.4 million, an
$8.3 million decrease compared to the
prior year. Adjusted EBITDA was $17.1
million, a decrease of $3.8
million from the prior year.
Balance Sheet & Liquidity
Net cash provided by operating activities for the quarter ended
June 30, 2022 was $14.5 million, an increase of $24.6 million compared to the prior year.
Free cash flow for the quarter ended June 30, 2022 was $4.1
million, an increase of $25.6
million from the prior year, primarily resulting from higher
operating earnings and lower incentive compensation payments and
pension plan contributions as compared to the prior year.
Cash payments for restructuring activities, strategic
reorganization costs, environmental costs and certain other items
during the quarter totaled $4.9
million.
Total debt was $388.2 million as
of June 30, 2022. Cash and cash
equivalents at June 30, 2022 were
$58.7 million. Net debt was
$329.5 million as of June 30, 2022, a decrease of $3.1 million from the end of fiscal
2022.
Outlook
"We expect our end markets to remain robust and supported by
strong secular tailwinds despite the uncertainty created by
geopolitical and economic risks," said Brinker. "Our results this
quarter demonstrate the resiliency of our operations and are
clearly benefiting from the actions taken to simplify our business,
focus the organization and improve profitability. These efforts are
supporting our strategic transformation, and we expect further
progress against our targeted initiatives, which will support a
strong fiscal 2023 and beyond."
Based on current exchange rates and market outlook, Modine is
reiterating 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, August 4,
2022 at 11:00 a.m. Central
Time (12:00 p.m. Eastern Time)
to discuss its first quarter fiscal 2023 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
August 4, 2022. A call-in replay will
be available through midnight on August 9,
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 August 9,
2022.
About Modine
At Modine, we are engineering a cleaner, healthier world.
Building on more than 100 years of excellence in thermal
management, we provide trusted systems and solutions that improve
air quality and conserve natural resources. More than 11,000
employees are at work in every corner of the globe, delivering the
solutions our customers need, where they need them. Our
Climate Solutions and Performance Technologies segments support our
purpose by improving air quality, reducing energy and water
consumption, lowering harmful emissions and enabling cleaner
running vehicles and environmentally-friendly refrigerants.
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," "projects," 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,
2022 and under Forward-Looking Statements in Item 7 of Part
II of that same report. 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 our 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 we operate and compete,
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; our ability to recruit and maintain talent
in managerial, leadership, operational and administrative functions
and to mitigate increased labor costs; our ability to protect our
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 in our public filings with the
U.S. Securities and Exchange Commission. Forward-looking
statements are as of the date of this press release, and we do not
assume any obligation to update any forward-looking statements.
Non-GAAP Financial Disclosures
Adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per
share, net debt, free cash flow, and constant currency (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. 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 and adjusted EBITDA
margin
The Company defines adjusted EBITDA as net earnings excluding
interest expense, the provision or benefit for income taxes,
depreciation and amortization expenses, other income and expense,
restructuring expenses, impairment charges or reversals, costs
associated with the review of strategic alternatives for the
Company's automotive businesses, strategic reorganization costs and
certain other gains or charges. Adjusted EBITDA margin
represents adjusted EBITDA as a percentage of net sales. The
Company believes that adjusted EBITDA and adjusted EBITDA margin
provide relevant measures of profitability and earnings power.
The Company views these financial metrics as being useful in
assessing 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 Company's automotive businesses,
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. Net debt 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.
Free cash flow presents cash generated from operations during the
period that is available for strategic capital decisions.
Definition – Constant currency
Constant currency translates financial data from foreign
operations for a period into U.S. dollars using the same foreign
currency exchange rates as those used to translate financial data
for the prior period. This measure provides a more consistent
indication of our performance, without the effects of foreign
currency exchange rate fluctuations.
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
$18 to $19
million, a provision for income taxes of approximately
$24 to $28
million, and depreciation and amortization expense of
approximately $58 to $62 million. Adjusted EBITDA also excludes
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), impairment charges and certain other items.
These expenses and gains for the first three months of fiscal
2023 are presented on page 9. Estimates of these expenses and
gains for the remainder of fiscal 2023 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
June 30,
|
|
2022
|
|
2021
|
Net sales
|
$
541.0
|
|
$
494.6
|
Cost of
sales
|
457.6
|
|
421.4
|
Gross profit
|
83.4
|
|
73.2
|
Selling, general &
administrative expenses
|
56.3
|
|
59.4
|
Restructuring
expenses
|
1.5
|
|
0.3
|
Impairment charges
(reversals) – net
|
-
|
|
(1.8)
|
Loss on sale of
assets
|
-
|
|
6.6
|
Operating income
|
25.6
|
|
8.7
|
Interest
expense
|
(4.1)
|
|
(4.2)
|
Other (expense) income
– net
|
(2.3)
|
|
0.2
|
Earnings before income taxes
|
19.2
|
|
4.7
|
Provision for income
taxes
|
(4.9)
|
|
(1.9)
|
Net earnings
|
14.3
|
|
2.8
|
Net earnings
attributable to noncontrolling interest
|
-
|
|
(0.5)
|
Net earnings attributable to
Modine
|
$
14.3
|
|
$
2.3
|
|
|
|
|
|
|
|
|
Net earnings per share
attributable to Modine shareholders – diluted
|
$
0.27
|
|
$
0.04
|
|
|
|
|
Weighted-average shares
outstanding – diluted
|
52.4
|
|
52.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated balance sheets
(unaudited)
|
(In
millions)
|
|
|
|
|
June 30, 2022
|
|
March 31,
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
58.7
|
|
$
45.2
|
Trade
receivables
|
353.5
|
|
367.5
|
Inventories
|
310.8
|
|
281.2
|
Other current
assets
|
58.6
|
|
63.7
|
Total current assets
|
781.6
|
|
757.6
|
Property, plant and
equipment – net
|
299.5
|
|
315.4
|
Intangible assets –
net
|
86.3
|
|
90.3
|
Goodwill
|
164.6
|
|
168.1
|
Deferred income
taxes
|
25.7
|
|
27.2
|
Other noncurrent
assets
|
66.9
|
|
68.4
|
Total assets
|
$
1,424.6
|
|
$
1,427.0
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
Debt due within one
year
|
$
28.0
|
|
$
29.4
|
Accounts
payable
|
318.5
|
|
325.8
|
Other current
liabilities
|
149.8
|
|
139.3
|
Total current liabilities
|
496.3
|
|
494.5
|
Long-term
debt
|
360.2
|
|
348.4
|
Other noncurrent
liabilities
|
121.0
|
|
126.0
|
Total liabilities
|
977.5
|
|
968.9
|
Total equity
|
447.1
|
|
458.1
|
Total liabilities & equity
|
$
1,424.6
|
|
$
1,427.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Modine Manufacturing
Company
|
|
|
|
Condensed
consolidated statements of cash flows (unaudited)
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
|
|
|
Net earnings
|
$
14.3
|
|
$
2.8
|
Adjustments to
reconcile net earnings to net cash provided by (used
for)
|
|
|
|
operating
activities:
|
|
|
|
Depreciation and
amortization
|
13.9
|
|
13.5
|
Impairment charges
(reversals) – net
|
-
|
|
(1.8)
|
Loss on sale of
assets
|
-
|
|
6.6
|
Stock-based
compensation expense
|
1.1
|
|
1.2
|
Deferred income
taxes
|
(0.9)
|
|
(3.1)
|
Other –
net
|
0.8
|
|
0.9
|
Changes in operating
assets and liabilities:
|
|
|
|
Trade accounts
receivable
|
0.7
|
|
(4.9)
|
Inventories
|
(38.5)
|
|
(26.7)
|
Accounts
payable
|
6.8
|
|
9.2
|
Other assets and
liabilities
|
16.3
|
|
(7.8)
|
Net cash provided by
(used for) operating activities
|
14.5
|
|
(10.1)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Expenditures for
property, plant and equipment
|
(10.4)
|
|
(11.4)
|
Payments for
disposition of assets
|
-
|
|
(5.7)
|
Other – net
|
-
|
|
1.6
|
Net cash used for
investing activities
|
(10.4)
|
|
(15.5)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Net increase in
debt
|
14.2
|
|
40.7
|
Other –
net
|
(2.2)
|
|
(1.3)
|
Net cash provided by
financing activities
|
12.0
|
|
39.4
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(2.6)
|
|
0.4
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
13.5
|
|
14.2
|
|
|
|
|
Cash, cash equivalents
and restricted cash - beginning of period
|
45.4
|
|
46.1
|
|
|
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
58.9
|
|
$
60.3
|
|
|
|
|
|
|
|
|
Modine Manufacturing
Company
|
|
|
|
Segment operating
results (unaudited)
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
2022
|
|
2021
|
Net sales:
|
|
|
|
Climate
Solutions
|
$
244.4
|
|
$
206.5
|
Performance
Technologies
|
304.3
|
|
297.1
|
Segment
total
|
548.7
|
|
503.6
|
Corporate and
eliminations
|
(7.7)
|
|
(9.0)
|
Net
sales
|
$
541.0
|
|
$
494.6
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
2022
|
|
2021
|
Gross
profit:
|
$'s
|
% of
sales
|
|
$'s
|
% of
sales
|
Climate
Solutions
|
$
50.4
|
20.6 %
|
|
$
32.6
|
15.8 %
|
Performance
Technologies
|
33.0
|
10.8 %
|
|
40.2
|
13.5 %
|
Segment
total
|
83.4
|
15.2 %
|
|
72.8
|
14.5 %
|
Corporate and
eliminations
|
-
|
-
|
|
0.4
|
-
|
Gross
profit
|
$
83.4
|
15.4 %
|
|
$
73.2
|
14.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
2022
|
|
2021
|
Operating
income:
|
|
|
|
Climate
Solutions
|
$
27.0
|
|
$
10.7
|
Performance
Technologies
|
7.4
|
|
15.7
|
Segment
total
|
34.4
|
|
26.4
|
Corporate and
eliminations
|
(8.8)
|
|
(17.7)
|
Operating
income
|
$
25.6
|
|
$
8.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modine Manufacturing
Company
|
|
|
|
Adjusted financial
results (unaudited)
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
2022
|
|
2021
|
Net earnings
|
$
14.3
|
|
$
2.8
|
Interest
expense
|
4.1
|
|
4.2
|
Provision for income
taxes
|
4.9
|
|
1.9
|
Depreciation and
amortization expense
|
13.9
|
|
13.5
|
Other expense (income)
– net
|
2.3
|
|
(0.2)
|
Restructuring expenses
(a)
|
1.5
|
|
0.3
|
Impairment charges
(reversals) – net (b)
|
-
|
|
(1.8)
|
Loss on sale of assets
(c)
|
-
|
|
6.6
|
Environmental charges
(d)
|
1.2
|
|
3.5
|
Strategic
reorganization and automotive exit costs (e)
|
-
|
|
2.5
|
Adjusted
EBITDA
|
$
42.2
|
|
$
33.3
|
|
|
|
|
Net earnings per share
attributable to Modine shareholders - diluted
|
$
0.27
|
|
$
0.04
|
Restructuring expenses
(a)
|
0.03
|
|
-
|
Loss on sale of assets
(c)
|
-
|
|
0.13
|
Environmental charges
(d)
|
0.02
|
|
0.07
|
Strategic
reorganization and automotive exit costs (e)
|
-
|
|
0.05
|
Tax valuation allowance
(f)
|
-
|
|
(0.09)
|
Adjusted earnings
per share
|
$
0.32
|
|
$
0.20
|
|
|
|
|
|
|
(a)
|
Restructuring expenses
primarily consist of employee severance expenses related to
targeted headcount reductions. There was no tax benefit associated
with the restructuring expenses.
|
(b)
|
The net impairment
reversal primarily relates to the Company's liquid-cooled
automotive business. During the first quarter of fiscal 2022, the
Company and the prospective buyer modified the transaction
perimeter to exclude certain manufacturing operations. As a
result, the Company evaluated the long-lived assets of these
businesses and reversed $7.4 million of previously-recorded
impairment charges. This impairment reversal was partially
offset by $5.6 million of impairment charges recorded during the
first quarter of fiscal 2022 related to other assets held for
sale. The tax charge related to the net impairment reversal
was $1.8 million.
|
(c)
|
The Company's sale of
its air-cooled automotive business in Austria closed on April 30,
2021. As a result of the sale, the Company recorded a $6.6 million
loss on sale at Corporate during the first quarter of fiscal
2022. There was no tax impact associated with this
transaction.
|
(d)
|
Environmental charges,
including related legal costs, are recorded as SG&A expenses at
Corporate and relate to a previously-owned U.S. manufacturing
facility.
|
(e)
|
The fiscal 2022 amounts
include costs recorded at Corporate associated with the Company's
strategic reorganization and automotive exit strategy. During the
first quarter of fiscal 2022, the Company recorded $0.6 million of
costs as SG&A expenses related to recruiting new senior
management and the Company's implementation of 80/20. In
addition, the Company recorded $1.9 million of costs associated
with its review of strategic alternatives for its automotive
businesses, including costs to prepare the businesses for
sale. These costs were primarily recorded as SG&A
expenses and primarily consisted of accounting, legal, and IT
professional services. There were no tax benefits related to
the strategic reorganization or automotive exit strategy costs
during the first quarter of fiscal 2022.
|
(f)
|
As of June 30, 2021,
the Company reversed a valuation allowance on its deferred tax
assets in Italy and, as a result, recorded an income tax benefit of
$4.8 million.
|
Modine Manufacturing
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment adjusted
financial results (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30, 2022
|
|
Three months ended June
30, 2021
|
|
Climate
Solutions
|
|
Performance
Technologies
|
|
Corporate and
eliminations
|
|
Total
|
|
Climate
Solutions
|
|
Performance
Technologies
|
|
Corporate and
eliminations
|
|
Total
|
Operating
income
|
$
27.0
|
|
$
7.4
|
|
$
(8.8)
|
|
$
25.6
|
|
$
10.7
|
|
$
15.7
|
|
$
(17.7)
|
|
$
8.7
|
Depreciation and
amortization expense
|
5.4
|
|
8.2
|
|
0.3
|
|
13.9
|
|
6.0
|
|
7.0
|
|
0.5
|
|
13.5
|
Restructuring expenses
(a)
|
-
|
|
1.5
|
|
-
|
|
1.5
|
|
-
|
|
0.3
|
|
-
|
|
0.3
|
Impairment charges
(reversals) – net (a)
|
-
|
|
-
|
|
-
|
|
-
|
|
0.3
|
|
(2.1)
|
|
-
|
|
(1.8)
|
Loss on sale of assets
(a)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6.6
|
|
6.6
|
Environmental charges
(a)
|
-
|
|
-
|
|
1.2
|
|
1.2
|
|
-
|
|
-
|
|
3.5
|
|
3.5
|
Strategic
reorganization and automotive exit costs (a)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2.5
|
|
2.5
|
Adjusted
EBITDA
|
$
32.4
|
|
$
17.1
|
|
$
(7.3)
|
|
$
42.2
|
|
$
17.0
|
|
$
20.9
|
|
$
(4.6)
|
|
$ 33.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
244.4
|
|
$
304.3
|
|
$
(7.7)
|
|
$ 541.0
|
|
$
206.5
|
|
$
297.1
|
|
$
(9.0)
|
|
$ 494.6
|
Adjusted EBITDA
margin
|
13.3 %
|
|
5.6 %
|
|
|
|
7.8 %
|
|
8.2 %
|
|
7.0 %
|
|
|
|
6.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
See the Adjusted EBITDA reconciliation on
the previous page for information on restructuring expenses and
other adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
(unaudited)
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2022
|
|
March 31,
2022
|
|
|
|
|
Debt due within one
year
|
$
28.0
|
|
$
29.4
|
|
|
|
|
Long-term
debt
|
360.2
|
|
348.4
|
|
|
|
|
Total debt
|
388.2
|
|
377.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: cash and cash
equivalents
|
58.7
|
|
45.2
|
|
|
|
|
Net debt
|
$
329.5
|
|
$
332.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(unaudited)
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
|
|
2022
|
|
2021
|
|
|
|
|
Net cash provided by
(used for) operating activities
|
$
14.5
|
|
$
(10.1)
|
|
|
|
|
Expenditures for
property, plant and equipment
|
(10.4)
|
|
(11.4)
|
|
|
|
|
Free cash
flow
|
$
4.1
|
|
$
(21.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - constant
currency (unaudited)
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30,
|
|
2022
|
|
2021
|
|
Net Sales
|
|
Effect of Exchange
Rate
Changes
|
|
Net Sales -
Constant Currency
|
|
Net Sales
|
Climate
Solutions
|
$
244.4
|
|
$
13.4
|
|
$
257.8
|
|
$
206.5
|
Performance
Technologies
|
304.3
|
|
13.2
|
|
317.5
|
|
297.1
|
Segment
total
|
548.7
|
|
26.6
|
|
575.3
|
|
503.6
|
Corporate and
eliminations
|
(7.7)
|
|
-
|
|
(7.7)
|
|
(9.0)
|
Net
sales
|
$
541.0
|
|
$
26.6
|
|
$
567.6
|
|
$
494.6
|
|
|
|
|
|
|
|
|
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com
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SOURCE Modine Manufacturing Company