Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MODINE MANUFACTURING CO | brhc10013922_8k.htm |
Exhibit 99.1
Modine Manufacturing Company
Segment operating results
Recast for segment realignment (unaudited)
|
(In millions)
|
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Net sales:
|
||||||||||||||||||||
|
Commercial and Industrial Solutions
|
$
|
168.8
|
$
|
156.7
|
$
|
147.5
|
$
|
150.9
|
$
|
623.9
|
||||||||||
|
Building HVAC Systems
|
49.0
|
56.0
|
64.9
|
51.2
|
221.1
|
|||||||||||||||
|
Heavy Duty Equipment
|
216.4
|
187.2
|
164.9
|
177.4
|
745.9
|
|||||||||||||||
|
Automotive
|
113.6
|
115.7
|
110.5
|
105.1
|
444.9
|
|||||||||||||||
|
Segment total
|
547.8
|
515.6
|
487.8
|
484.6
|
2,035.8
|
|||||||||||||||
|
Corporate and eliminations
|
(18.8
|
)
|
(15.4
|
)
|
(14.4
|
)
|
(11.7
|
)
|
(60.3
|
)
|
||||||||||
|
Net sales
|
$
|
529.0
|
$
|
500.2
|
$
|
473.4
|
$
|
472.9
|
$
|
1,975.5
|
||||||||||
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||||||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||||||||||||||||||||||
|
Gross profit:
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
$'s
|
% of sales
|
||||||||||||||||||||||||||||||
|
Commercial and Industrial Solutions
|
$
|
24.3
|
14.4
|
%
|
$
|
22.9
|
14.6
|
%
|
$
|
22.7
|
15.4
|
%
|
$
|
23.0
|
15.3
|
%
|
$
|
92.9
|
14.9
|
%
|
||||||||||||||||||||
|
Building HVAC Systems
|
13.7
|
27.9
|
%
|
17.7
|
31.7
|
%
|
23.1
|
35.5
|
%
|
17.0
|
33.3
|
%
|
71.5
|
32.3
|
%
|
|||||||||||||||||||||||||
|
Heavy Duty Equipment
|
32.5
|
15.0
|
%
|
22.4
|
12.0
|
%
|
16.8
|
10.2
|
%
|
24.9
|
14.0
|
%
|
96.6
|
13.0
|
%
|
|||||||||||||||||||||||||
|
Automotive
|
12.5
|
11.0
|
%
|
13.0
|
11.2
|
%
|
12.2
|
11.0
|
%
|
10.7
|
10.2
|
%
|
48.4
|
10.9
|
%
|
|||||||||||||||||||||||||
|
Segment total
|
83.0
|
15.2
|
%
|
76.0
|
14.7
|
%
|
74.8
|
15.3
|
%
|
75.6
|
15.6
|
%
|
309.4
|
15.2
|
%
|
|||||||||||||||||||||||||
|
Corporate and eliminations
|
0.4
|
-
|
(0.3
|
)
|
-
|
(1.3
|
)
|
-
|
(0.7
|
)
|
-
|
(1.9
|
)
|
-
|
||||||||||||||||||||||||||
|
Gross profit
|
$
|
83.4
|
15.8
|
%
|
$
|
75.7
|
15.1
|
%
|
$
|
73.5
|
15.5
|
%
|
$
|
74.9
|
15.8
|
%
|
$
|
307.5
|
15.6
|
%
|
||||||||||||||||||||
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Operating income:
|
||||||||||||||||||||
|
Commercial and Industrial Solutions
|
$
|
9.0
|
$
|
8.5
|
$
|
8.3
|
$
|
7.1
|
$
|
32.9
|
||||||||||
|
Building HVAC Systems
|
5.3
|
8.8
|
13.5
|
8.8
|
36.4
|
|||||||||||||||
|
Heavy Duty Equipment
|
17.3
|
7.1
|
2.8
|
10.6
|
37.8
|
|||||||||||||||
|
Automotive
|
-
|
0.4
|
1.6
|
(12.0
|
)
|
(10.0
|
)
|
|||||||||||||
|
Segment total
|
31.6
|
24.8
|
26.2
|
14.5
|
97.1
|
|||||||||||||||
|
Corporate and eliminations
|
(13.5
|
)
|
(18.8
|
)
|
(18.0
|
)
|
(8.9
|
)
|
(59.2
|
)
|
||||||||||
|
Operating income
|
$
|
18.1
|
$
|
6.0
|
$
|
8.2
|
$
|
5.6
|
$
|
37.9
|
||||||||||
Exhibit 99.1
Modine Manufacturing Company
Adjusted EBITDA (unaudited)
|
(In millions)
|
||||||||||||||||||||
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Net earnings (loss)
|
$
|
8.2
|
$
|
(4.8
|
)
|
$
|
1.0
|
$
|
(6.4
|
)
|
$
|
(2.0
|
)
|
|||||||
|
Interest expense
|
5.9
|
5.8
|
5.6
|
5.4
|
22.7
|
|||||||||||||||
|
Provision for income taxes
|
2.9
|
3.7
|
1.7
|
4.1
|
12.4
|
|||||||||||||||
|
Depreciation and amortization expense
|
18.9
|
19.4
|
19.5
|
19.3
|
77.1
|
|||||||||||||||
|
Other expense (income) - net
|
1.1
|
1.3
|
(0.1
|
)
|
2.5
|
4.8
|
||||||||||||||
|
Automotive separation and strategy costs (a)
|
8.4
|
11.9
|
14.0
|
5.0
|
39.2
|
|||||||||||||||
|
Restructuring expenses (b)
|
1.8
|
2.3
|
2.6
|
5.5
|
12.2
|
|||||||||||||||
|
Impairment charges (c)
|
-
|
-
|
-
|
8.6
|
8.6
|
|||||||||||||||
|
Gain on sale of assets (d)
|
-
|
-
|
(0.8
|
)
|
-
|
(0.8
|
)
|
|||||||||||||
|
Environmental charges (e)
|
0.1
|
-
|
-
|
0.1
|
0.2
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
47.3
|
$
|
39.6
|
$
|
43.5
|
$
|
44.1
|
$
|
174.4
|
||||||||||
| (a) |
During fiscal 2020, the Company recorded $39.2 million of costs at Corporate directly associated with its review of strategic alternatives for the automotive
business, including costs to separate and prepare the business for a potential sale. With the exception of $3.1 million of costs associated with program and equipment transfers recorded as costs of sales, these costs were recorded as
SG&A expenses and primarily related to accounting, legal, and IT professional services.
|
| (b) |
Restructuring expenses primarily relate to employee severance expenses, largely resulting from targeted headcount reductions, and equipment transfer and plant
consolidation costs.
|
| (c) |
During the fourth quarter of fiscal 2020, the Company recorded asset impairment charges totaling $8.0 million within the Automotive segment, primarily related to
manufacturing facilities in Austria and Germany. Also in the fourth quarter of fiscal 2020, the Company recorded a $0.6 million impairment charge to reduce the carrying value of a previously-closed CIS manufacturing facility in Austria.
|
| (d) |
During the third quarter of fiscal 2020, the Automotive segment sold a previously-closed manufacturing facility in Germany and, as a result, recorded a gain of
$0.8 million.
|
| (e) |
Environmental charges, including related legal costs, are recorded as SG&A expenses and relate to previously-owned U.S. manufacturing facilities in
the Heavy Duty Equipment segment.
|
Exhibit 99.1
Modine Manufacturing Company
Segment Adjusted EBITDA (unaudited)
|
(In millions)
|
Commercial and Industrial Solutions
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Operating income
|
$
|
9.0
|
$
|
8.5
|
$
|
8.3
|
$
|
7.1
|
$
|
32.9
|
||||||||||
|
Depreciation and amortization expense
|
5.9
|
5.8
|
6.1
|
6.2
|
24.0
|
|||||||||||||||
|
Restructuring expenses (a)
|
0.2
|
0.4
|
0.7
|
0.8
|
2.1
|
|||||||||||||||
|
Impairment charge (a)
|
-
|
-
|
-
|
0.6
|
0.6
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
15.1
|
$
|
14.7
|
$
|
15.1
|
$
|
14.7
|
$
|
59.6
|
||||||||||
Building HVAC Systems
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Operating income
|
$
|
5.3
|
$
|
8.8
|
$
|
13.5
|
$
|
8.8
|
$
|
36.4
|
||||||||||
|
Depreciation and amortization expense
|
0.8
|
0.9
|
0.9
|
0.9
|
3.4
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
6.1
|
$
|
9.7
|
$
|
14.4
|
$
|
9.7
|
$
|
39.8
|
||||||||||
Heavy Duty Equipment
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Operating income
|
$
|
17.3
|
$
|
7.1
|
$
|
2.8
|
$
|
10.6
|
$
|
37.8
|
||||||||||
|
Depreciation and amortization expense
|
6.4
|
6.4
|
6.4
|
6.2
|
25.4
|
|||||||||||||||
|
Restructuring expenses (a)
|
0.4
|
0.4
|
1.4
|
1.1
|
3.3
|
|||||||||||||||
|
Environmental charges (a)
|
0.1
|
-
|
-
|
0.1
|
0.2
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
24.2
|
$
|
13.9
|
$
|
10.6
|
$
|
18.0
|
$
|
66.7
|
||||||||||
Automotive
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
|
June 30, 2019
|
September 30, 2019
|
December 31, 2019
|
March 31, 2020
|
March 31, 2020
|
||||||||||||||||
|
Operating income
|
$
|
-
|
$
|
0.4
|
$
|
1.6
|
$
|
(12.0
|
)
|
$
|
(10.0
|
)
|
||||||||
|
Depreciation and amortization expense
|
5.3
|
5.6
|
5.7
|
5.7
|
22.3
|
|||||||||||||||
|
Restructuring expenses (a)
|
1.2
|
1.5
|
0.2
|
3.6
|
6.5
|
|||||||||||||||
|
Impairment charges (a)
|
-
|
-
|
-
|
8.0
|
8.0
|
|||||||||||||||
|
Gain on sale of assets (a)
|
-
|
-
|
(0.8
|
)
|
-
|
(0.8
|
)
|
|||||||||||||
|
Adjusted EBITDA
|
$
|
6.5
|
$
|
7.5
|
$
|
6.7
|
$
|
5.3
|
$
|
26.0
|
||||||||||
|
(a)
|
See the Adjusted EBITDA reconciliation on the previous page for information on restructuring expenses and other adjustments.
|