NEWS RELEASE
For Immediate Release
Investor Contact: Dave Prichard 262-636-8434 d.a.prichard@na.modine.com
Media Contact: Lori Stafford 262-636-1001 l.stafford@na.modine.com
Modine Provides Minor Changes to Unaudited, Pro Forma Historical Earnings Statements for Classification of Former Aftermarket Business as a Discontinued Operation and Announces Updated Charge to Discontinued Operations for Fiscal 2006 Second Quarter Financial Statements
Racine, WI, November 7, 2005 - Modine Manufacturing Company (NYSE: MOD), a diversified world leader in thermal management technology and solutions, today issued minor changes to portions of unaudited, pro forma historical earnings statements recently issued when the Company announced the classification of its former Aftermarket business, which was spun off on July 22 and merged with Transpro, Inc. (now known as Proliance International, Inc.), as a discontinued operation.
These unaudited, pro forma historical financial statements, as well as expanded operating segment financial information, have been provided for the first quarter of fiscal 2006, by quarter for fiscal 2005, and annually for fiscal years 2005, 2004 and 2003.
All unaudited, pro forma earnings statements have been labeled with dollar and per share headings, and the quarterly earnings statements for fiscal 2005 and the first quarter of fiscal 2006 have been updated with the correct quarterly period dates.
The complete unaudited, pro forma historical earnings statements and expanded operating segment financial information containing these changes are provided with this press release. They may also be accessed by visiting Modine’s Web site at www.modine.com.
Modine also confirmed that it recorded a charge to discontinued operations of $54.1 million, or $(1.56) per fully diluted share in the Company’s fiscal 2006 second quarter, in line with prior guidance. The charge was comprised of a $50.4 million non-cash charge to reflect the difference between the value that Modine shareholders received in Proliance International, Inc. of $51.3 million, a function of the price of Transpro, Inc. stock at the time of the closing, and the $101.7 million in asset carrying value of Modine’s Aftermarket business; a $3.2 million non-cash foreign currency translation loss recognized upon disposition; and $0.5 million in unreimbursed expenses incurred as part of the transaction. This charge was reported in the Company’s fiscal 2006 second quarter earnings release on October 19 as $50.8 million but had been reported in an earlier release that same day as $48.2 million.
In addition, Modine said it made other minor classification and labeling changes to its income statement and statement of cash flows issued with its fiscal 2006 second quarter earnings release on October 19, 2005. The revised income statement and statement of cash flows reflecting the $54.1 million charge to discontinued operations and classification changes are also provided with this press release.
Founded in 1916, Modine specializes in thermal management systems and components, bringing heating and cooling technology and solutions to diversified global markets. The Company’s products are used in light, medium, and heavy-duty vehicles, HVAC equipment, industrial equipment, refrigeration systems, fuel cells and electronics. Modine has more than 8,200 employees and 35 facilities in 15 countries worldwide. More information can be found at www.modine.com.
Modine Manufacturing Company | |||||||||||||
Consolidated statements of earnings (unaudited)* | |||||||||||||
(In thousands, except per-share amounts) | |||||||||||||
Three months ended September 26, | Six months ended September 26, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Net sales | $ | 404,152 | $ | 306,717 | $ | 800,990 | $ | 597,946 | |||||
Cost of sales | 324,366 | 242,924 | 640,932 | 471,800 | |||||||||
Gross profit | 79,786 | 63,793 | 160,058 | 126,146 | |||||||||
Selling, general, & administrative expenses | 56,651 | 42,206 | 107,204 | 81,906 | |||||||||
Restructuring | - | (600 | ) | - | 922 | ||||||||
Income from operations | 23,135 | 22,187 | 52,854 | 43,318 | |||||||||
Interest (expense) | (1,837 | ) | (1,498 | ) | (3,381 | ) | (2,764 | ) | |||||
Other income - net | 607 | 1,558 | 3,278 | 2,531 | |||||||||
Earnings from continuing operations before income taxes | 21,905 | 22,247 | 52,751 | 43,085 | |||||||||
Provision for income taxes | 7,583 | 8,327 | 17,731 | 16,653 | |||||||||
Earnings from continuing operations | 14,322 | 13,920 | 35,020 | 26,432 | |||||||||
Earnings from discontinued operations (net of income taxes) | 404 | 132 | 457 | 1,429 | |||||||||
Loss on spin off of discontinued operations | (54,068 | ) | - | (54,068 | ) | - | |||||||
Net (loss)/earnings | ($39,342 | ) | $ | 14,052 | ($18,591 | ) | $ | 27,861 | |||||
Earnings from continuing operations as a percent of net sales | 3.5 | % | 4.5 | % | 4.4 | % | 4.4 | % | |||||
Earnings per share from continuing operations: | |||||||||||||
Basic | $ | 0.42 | $ | 0.41 | $ | 1.02 | $ | 0.78 | |||||
Diluted | $ | 0.41 | $ | 0.40 | $ | 1.01 | $ | 0.77 | |||||
Net (loss)/earnings per share: | |||||||||||||
Basic | ($1.14 | ) | $ | 0.41 | ($0.54 | ) | $ | 0.82 | |||||
Diluted | ($1.14 | ) | $ | 0.41 | ($0.54 | ) | $ | 0.81 | |||||
Weighted average shares outstanding: | |||||||||||||
Basic | 34,185 | 34,018 | 34,257 | 33,975 | |||||||||
Diluted | 34,779 | 34,415 | 34,705 | 34,339 | |||||||||
Net cash provided by operating activities | $ | 27,739 | $ | 28,976 | $ | 49,992 | $ | 31,676 | |||||
Dividends paid per share | $ | 0.1750 | $ | 0.1525 | $ | 0.3500 | $ | 0.3050 | |||||
Comprehensive (loss)/earnings, which represent net earnings adjusted by the change in foreign-currency translation, | |||||||||||||
minimum pension liability, and a cashflow hedge of a benchmark interest rate for a forecasted debt borrowing, recorded in shareholders' equity,for the periods ended September 26, 2005 and 2004, respectively, were ($37,211) and $15,624 for 3 months, and ($34,885) and $23,713 for 6 months. | |||||||||||||
Consolidated condensed balance sheets (unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Sept. 26, 2005 | March 31, 2005 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 66,464 | $ | 55,091 | |||||||||
Trade receivables - net | 240,570 | 251,734 | |||||||||||
Inventories | 91,900 | 149,781 | |||||||||||
Other current assets | 45,984 | 52,724 | |||||||||||
Total current assets | 444,918 | 509,330 | |||||||||||
Property, plant, and equipment - net | 460,208 | 496,180 | |||||||||||
Other noncurrent assets | 170,914 | 146,645 | |||||||||||
Total assets | $ | 1,076,040 | $ | 1,152,155 | |||||||||
Liabilities | |||||||||||||
Debt due within one year | $ | 108 | $ | 64,912 | |||||||||
Accounts payable | 148,670 | 159,876 | |||||||||||
Other current liabilities | 113,889 | 120,306 | |||||||||||
Total current liabilities | 262,667 | 345,094 | |||||||||||
Long-term debt | 160,961 | 40,724 | |||||||||||
Deferred income taxes | 42,593 | 44,072 | |||||||||||
Other noncurrent liabilities | 61,156 | 62,485 | |||||||||||
Total liabilities | 527,377 | 492,375 | |||||||||||
Shareholders' equity | 548,663 | 659,780 | |||||||||||
Total liabilities & shareholders' equity | $ | 1,076,040 | $ | 1,152,155 | |||||||||
*Certain prior-year amounts have been reclassified in the consolidated financial statements to conform with the | |||||||||||||
current year presentation. These include a reclassification of certain other income & expense items to sales, | |||||||||||||
S.G.&A. and manufacturing overhead, along with additional allocations of certain centralized services expenses | |||||||||||||
from corporate and administrative expenses to the attributable individual segments and their divisions in order | |||||||||||||
to more accurately reflect their operating results. |
Modine Manufacturing Company | ||||||||||||||||
Condensed consolidated statements of cash flows (unaudited)* | ||||||||||||||||
(In thousands) | ||||||||||||||||
Six months ended September 26, | 2005 | 2004 | ||||||||||||||
Net (loss) / earnings | ($18,591 | ) | $ | 27,861 | ||||||||||||
Adjustments to reconcile net (loss)/earnings with cash provided | ||||||||||||||||
by operating activities: | ||||||||||||||||
Depreciation and amortization | 36,145 | 32,857 | ||||||||||||||
Loss on spin-off of aftermarket business | 53,611 | - | ||||||||||||||
Other - net | 1,980 | 1,388 | ||||||||||||||
73,145 | 62,106 | |||||||||||||||
Net changes in operating assets and liabilities | (23,153 | ) | (30,430 | ) | ||||||||||||
Cash flows provided by operating activities | 49,992 | 31,676 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Expenditures for plant, property, & equipment | (30,136 | ) | (29,770 | ) | ||||||||||||
Acquisitions, net of cash | (37,491 | ) | (82,605 | ) | ||||||||||||
Spin-off of aftermarket business (cash transferred) | (3,725 | ) | - | |||||||||||||
Proceeds for dispositions of assets | - | 1,125 | ||||||||||||||
Other- net | 198 | (546 | ) | |||||||||||||
Net cash (used for) investing activities | (71,154 | ) | (111,796 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Net increase/(decrease) in debt | 60,000 | 52,166 | ||||||||||||||
Settlement of derivative contract | (1,794 | ) | - | |||||||||||||
Cash proceeds from exercise of stock options | 8,597 | 3,816 | ||||||||||||||
Repurchase of common stock, treasury & retirement | (24,261 | ) | (483 | ) | ||||||||||||
Cash dividends paid | (12,140 | ) | (10,424 | ) | ||||||||||||
Other - net | 4,526 | 5,165 | ||||||||||||||
Net cash provided by financing activities | 34,928 | 50,240 | ||||||||||||||
Effect of exchange rate changes on cash | (2,393 | ) | (596 | ) | ||||||||||||
Net increase / (decrease) in cash and cash equivalents | 11,373 | (30,476 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | 55,091 | 69,758 | ||||||||||||||
Cash and cash equivalents at end of the period | $ | 66,464 | $ | 39,282 | ||||||||||||
Condensed segment operating results (unaudited)** | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three months ended September 26, | Six months ended September 26, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Sales: | ||||||||||||||||
Original Equipment - Americas | $ | 172,607 | $ | 142,855 | $ | 337,537 | $ | 284,378 | ||||||||
Original Equipment - Asia | 49,722 | 14,215 | 107,549 | 14,215 | ||||||||||||
Original Equipment - Europe | 128,740 | 116,783 | 268,733 | 238,633 | ||||||||||||
Commercial HVAC&R | 46,093 | 24,498 | 74,549 | 43,497 | ||||||||||||
Other | 8,201 | 8,030 | 14,989 | 16,432 | ||||||||||||
Segment sales | 405,363 | 306,381 | 803,357 | 597,155 | ||||||||||||
Corporate and Administrative | 774 | 1,271 | 1,567 | 2,424 | ||||||||||||
Eliminations | (1,985 | ) | (935 | ) | (3,934 | ) | (1,633 | ) | ||||||||
Net sales | $ | 404,152 | $ | 306,717 | $ | 800,990 | $ | 597,946 | ||||||||
Operating earnings/(loss): | ||||||||||||||||
Original Equipment - Americas | $ | 22,919 | $ | 19,672 | $ | 43,845 | $ | 40,966 | ||||||||
Original Equipment - Asia | (687 | ) | 626 | 1,874 | 626 | |||||||||||
Original Equipment - Europe | 16,954 | 13,920 | 37,969 | 28,096 | ||||||||||||
Commercial HVAC&R | 4,207 | 2,808 | 6,430 | 4,745 | ||||||||||||
Other | (3,232 | ) | (3,104 | ) | (7,284 | ) | (7,631 | ) | ||||||||
Segment earnings | 40,161 | 33,922 | 82,834 | 66,802 | ||||||||||||
Corporate and Administrative Expenses | (17,443 | ) | (11,771 | ) | (30,427 | ) | (23,522 | ) | ||||||||
Eliminations | 27 | 39 | 57 | 36 | ||||||||||||
Other Items Not Allocated to a Segment | (840 | ) | 57 | 287 | (231 | ) | ||||||||||
Earnings from continuing operations before income taxes | $ | 21,905 | $ | 22,247 | $ | 52,751 | $ | 43,085 | ||||||||
** Prior year segment results have been reclassified to conform to the current year presentation. | ||||||||||||||||
In the current year, six months of the Korean and Chinese acquisitions results are included in Original Equipment - Asia segment and | ||||||||||||||||
six months of the Jackson, Mississippi acquisition results are included in the Original Equipment - Americas segment, while four | ||||||||||||||||
months of the Airedale acquisition results are included in the Commercial HVAC&R segment. The Korean acquisition was included | ||||||||||||||||
for one month in the prior year while the Chinese, Jackson, and Airedale acquisitions were not included in the prior periods | ||||||||||||||||
as they were acquired later in fiscal 2005 and fiscal 2006. | ||||||||||||||||
** Definition - Return from continuing operations on average capital employed (ROACE) | |||||||
The sum of, earnings from continuing operations and adding back after-tax interest (interest expense less the tax benefit at the | |||||||
total company effective tax rate), divided by the average, total debt plus shareholders' equity: this is a financial measure of the profit | |||||||
generated on the total capital invested in the company before any interest expenses payable to lenders, net of any tax effect. | |||||||
Management discussion concerning the use of the financial measure - Return from continuing operations on average capital employed | |||||||
Return from continuing operations on average capital employed is not a measure derived under generally accepted accounting principles | |||||||
(GAAP) and should not be considered as a substitute for any measure derived in accordance with GAAP. Management believes that | |||||||
return from continuing operations on capital employed provides investors with helpful supplemental information about the Company's | |||||||
performance, ability to provide an acceptable return on all the capital utilized by the Company, and ability to fund growth. This measure | |||||||
may not be consistent with similar measures presented by other companies. | |||||||
Modine Manufacturing Company | |||||||
Return from continuing operations on average capital employed (unaudited) | |||||||
(In thousands) | |||||||
Trailing four quarters ended September 26, | 2005 | ||||||
Earnings from continuing operations | $70,276 | ||||||
Plus interest expense from continuing operations net of tax benefit at total company effective tax rate | 4,536 | ||||||
Net return | $74,812 | ||||||
Divided by: | |||||||
Average capital (debt + equity, last five quarter ends / divided by 5) | $675,736 | ||||||
Return from continuing operations on average capital employed | 11.1% | ||||||
Interest expense from continuing operations | $6,946 | ||||||
Total company effective tax rate | 34.7% | ||||||
Tax benefit | 2,410 | ||||||
Interest expense, net of tax benefit | $4,536 | ||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the year ended March 31, 2003 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 1,092,075 | $ | 2,653 | $ | 1,094,728 | ($231,739 | ) | $ | 862,989 | ||||||
Cost of sales | 826,417 | 6,876 | 833,293 | (155,217 | ) | 678,076 | ||||||||||
Gross profit | 265,658 | (4,223 | ) | 261,435 | (76,522 | ) | 184,913 | |||||||||
Selling, general, and administrative expenses | 214,121 | (9,984 | ) | 204,137 | (70,795 | ) | 133,342 | |||||||||
Restructuring charges | (1,555 | ) | 0 | (1,555 | ) | (178 | ) | (1,733 | ) | |||||||
Income from operations | 53,092 | 5,761 | 58,853 | (5,549 | ) | 53,304 | ||||||||||
Interest expense | (6,026 | ) | 0 | (6,026 | ) | 631 | (5,395 | ) | ||||||||
Other income--net | 7,961 | (5,761 | ) | 2,200 | 1,789 | 3,989 | ||||||||||
Earnings before income taxes from continuing operations | 55,027 | 0 | 55,027 | (3,129 | ) | 51,898 | ||||||||||
Provision for income taxes | 20,669 | 0 | 20,669 | (2,159 | ) | 18,510 | ||||||||||
Earnings before cumulative effect of accounting change (continuing ops) | 34,358 | 0 | 34,358 | (970 | ) | 33,388 | ||||||||||
Cumulative effect of change in accounting for: | ||||||||||||||||
Goodwill impairment (net of 1,136 income tax benefit) | (21,692 | ) | -- | (21,692 | ) | 21,692 | 0 | |||||||||
Net earnings | $ | 12,666 | $ | 0 | $ | 12,666 | $ | 20,722 | $ | 33,388 | ||||||
Net earnings per share (before cumulative effect of accounting change): | ||||||||||||||||
Basic | $ | 1.03 | $ | 1.03 | $ | 1.00 | ||||||||||
Diluted | $ | 1.02 | $ | 1.02 | $ | 0.99 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 33,652 | 33,652 | 33,652 | |||||||||||||
Diluted | 33,758 | 33,758 | 33,758 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the year ended March 31, 2004 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 1,199,799 | $ | 6,086 | $ | 1,205,885 | ($225,210 | ) | $ | 980,675 | ||||||
Cost of sales | 914,569 | 6,197 | 920,766 | (151,608 | ) | 769,158 | ||||||||||
Gross profit | 285,230 | (111 | ) | 285,119 | (73,602 | ) | 211,517 | |||||||||
Selling, general, and administrative expenses | 235,283 | (13,979 | ) | 221,304 | (67,106 | ) | 154,198 | |||||||||
Restructuring charges | (119 | ) | 0 | (119 | ) | 49 | (70 | ) | ||||||||
Income from operations | 50,066 | 13,868 | 63,934 | (6,545 | ) | 57,389 | ||||||||||
Interest expense | (5,429 | ) | 0 | (5,429 | ) | 405 | (5,024 | ) | ||||||||
Other income--net | 19,074 | (13,868 | ) | 5,206 | (104 | ) | 5,102 | |||||||||
Earnings before income taxes from continuing operations | 63,711 | 0 | 63,711 | (6,244 | ) | 57,467 | ||||||||||
Provision for income taxes | 23,274 | 0 | 23,274 | (1,300 | ) | 21,974 | ||||||||||
Net earnings | $ | 40,437 | $ | 0 | $ | 40,437 | ($4,944 | ) | $ | 35,493 | ||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 1.19 | $ | 1.19 | $ | 1.05 | ||||||||||
Diluted | $ | 1.19 | $ | 1.19 | $ | 1.04 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 33,922 | 33,922 | 33,922 | |||||||||||||
Diluted | 34,073 | 34,073 | 34,073 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the year ended March 31, 2005 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 1,543,930 | $ | 4,085 | $ | 1,548,015 | ($205,599 | ) | $ | 1,342,416 | ||||||
Cost of sales | 1,193,821 | 8,517 | 1,202,338 | (139,762 | ) | 1,062,576 | ||||||||||
Gross profit | 350,109 | (4,432 | ) | 345,677 | (65,837 | ) | 279,840 | |||||||||
Selling, general, and administrative expenses | 264,088 | (13,499 | ) | 250,589 | (67,198 | ) | 183,391 | |||||||||
Restructuring charges | 1,031 | 0 | 1,031 | 0 | 1,031 | |||||||||||
Income from operations | 84,990 | 9,067 | 94,057 | 1,361 | 95,418 | |||||||||||
Interest expense | (6,365 | ) | 0 | (6,365 | ) | 36 | (6,329 | ) | ||||||||
Other income--net | 18,251 | (9,067 | ) | 9,184 | (356 | ) | 8,828 | |||||||||
Earnings before income taxes from continuing operations | 96,876 | 0 | 96,876 | 1,041 | 97,917 | |||||||||||
Provision for income taxes | 35,214 | 0 | 35,214 | 1,017 | 36,231 | |||||||||||
Net earnings | $ | 61,662 | $ | 0 | $ | 61,662 | $ | 24 | $ | 61,686 | ||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 1.81 | $ | 1.81 | $ | 1.81 | ||||||||||
Diluted | $ | 1.79 | $ | 1.79 | $ | 1.79 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 34,092 | 34,092 | 34,092 | |||||||||||||
Diluted | 34,480 | 34,480 | 34,480 |
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the quarter ended June 26, 2004 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 347,362 | $ | 1,265 | $ | 348,627 | ($57,398 | ) | $ | 291,229 | ||||||
Cost of sales | 265,202 | 1,773 | 266,975 | (38,099 | ) | 228,876 | ||||||||||
Gross profit | 82,160 | (508 | ) | 81,652 | (19,299 | ) | 62,353 | |||||||||
Selling, general, and administrative expenses | 59,485 | (3,097 | ) | 56,388 | (16,688 | ) | 39,700 | |||||||||
Restructuring charges | 1,522 | 0 | 1,522 | 0 | 1,522 | |||||||||||
Income from operations | 21,153 | 2,589 | 23,742 | (2,611 | ) | 21,131 | ||||||||||
Interest expense | (1,277 | ) | 0 | (1,277 | ) | 11 | (1,266 | ) | ||||||||
Other income--net | 3,572 | (2,589 | ) | 983 | (6 | ) | 977 | |||||||||
Earnings before income taxes from continuing operations | 23,448 | 0 | 23,448 | (2,606 | ) | 20,842 | ||||||||||
Provision for income taxes | 9,639 | 0 | 9,639 | (1,313 | ) | 8,326 | ||||||||||
Net earnings | $ | 13,809 | $ | 0 | $ | 13,809 | ($1,293 | ) | $ | 12,516 | ||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.41 | $ | 0.41 | $ | 0.37 | ||||||||||
Diluted | $ | 0.40 | $ | 0.40 | $ | 0.37 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 33,932 | 33,932 | 33,932 | |||||||||||||
Diluted | 34,264 | 34,264 | 34,264 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the quarter ended September 26, 2004 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 363,620 | $ | 1,273 | $ | 364,893 | ($58,176 | ) | $ | 306,717 | ||||||
Cost of sales | 280,488 | 2,275 | 282,763 | (39,839 | ) | 242,924 | ||||||||||
Gross profit | 83,132 | (1,002 | ) | 82,130 | (18,337 | ) | 63,793 | |||||||||
Selling, general, and administrative expenses | 63,451 | (3,207 | ) | 60,244 | (18,038 | ) | 42,206 | |||||||||
Restructuring charges | (600 | ) | 0 | (600 | ) | 0 | (600 | ) | ||||||||
Income from operations | 20,281 | 2,205 | 22,486 | (299 | ) | 22,187 | ||||||||||
Interest expense | (1,507 | ) | 1 | (1,506 | ) | 8 | (1,498 | ) | ||||||||
Other income--net | 3,766 | (2,205 | ) | 1,561 | (5 | ) | 1,556 | |||||||||
Earnings before income taxes from continuing operations | 22,540 | 1 | 22,541 | (296 | ) | 22,245 | ||||||||||
Provision for income taxes | 8,488 | 1 | 8,489 | (162 | ) | 8,327 | ||||||||||
Net earnings | $ | 14,052 | $0 | $ | 14,052 | ($134 | ) | $ | 13,918 | |||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.41 | $ | 0.41 | $ | 0.41 | ||||||||||
Diluted | $ | 0.41 | $ | 0.41 | $ | 0.40 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 34,018 | 34,018 | 34,018 | |||||||||||||
Diluted | 34,415 | 34,415 | 34,415 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the quarter ended December 26, 2004 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 418,398 | $ | 748 | $ | 419,146 | ($44,112 | ) | $ | 375,034 | ||||||
Cost of sales | 322,713 | 2,421 | 325,134 | (31,092 | ) | 294,042 | ||||||||||
Gross profit | 95,685 | (1,673 | ) | 94,012 | (13,020 | ) | 80,992 | |||||||||
Selling, general, and administrative expenses | 70,428 | (3,743 | ) | 66,685 | (17,119 | ) | 49,566 | |||||||||
Restructuring charges | 109 | 0 | 109 | 0 | 109 | |||||||||||
Income from operations | 25,148 | 2,070 | 27,218 | 4,099 | 31,317 | |||||||||||
Interest expense | (1,641 | ) | 0 | (1,641 | ) | 7 | (1,634 | ) | ||||||||
Other income--net | 6,652 | (2,070 | ) | 4,582 | 2 | 4,584 | ||||||||||
Earnings before income taxes from continuing operations | 30,159 | (0 | ) | 30,159 | 4,108 | 34,267 | ||||||||||
Provision for income taxes | 11,213 | 0 | 11,213 | 1,714 | 12,927 | |||||||||||
Net earnings | $ | 18,946 | ($0 | ) | $ | 18,946 | $ | 2,394 | $ | 21,340 | ||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.56 | $ | 0.56 | $ | 0.63 | ||||||||||
Diluted | $ | 0.55 | $ | 0.55 | $ | 0.62 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 34,142 | 34,142 | 34,142 | |||||||||||||
Diluted | 34,550 | 34,550 | 34,550 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the quarter ended March 31, 2005 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 414,550 | $ | 799 | $ | 415,349 | ($45,912 | ) | $ | 369,437 | ||||||
Cost of sales | 325,418 | 2,042 | 327,460 | (30,733 | ) | 296,727 | ||||||||||
Gross profit | 89,132 | (1,243 | ) | 87,889 | (15,179 | ) | 72,710 | |||||||||
Selling, general, and administrative expenses | 70,722 | (3,449 | ) | 67,273 | (15,352 | ) | 51,921 | |||||||||
Restructuring charges | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income from operations | 18,410 | 2,206 | 20,616 | 173 | 20,789 | |||||||||||
Interest expense | (1,941 | ) | 0 | (1,941 | ) | 10 | (1,931 | ) | ||||||||
Other income--net | 4,263 | (2,206 | ) | 2,057 | (345 | ) | 1,712 | |||||||||
Earnings before income taxes from continuing operations | 20,732 | 0 | 20,732 | (162 | ) | 20,570 | ||||||||||
Provision for income taxes | 5,877 | 0 | 5,877 | 778 | 6,655 | |||||||||||
Net earnings | $ | 14,855 | $ | 0 | $ | 14,855 | ($940 | ) | $ | 13,915 | ||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.43 | $ | 0.43 | $ | 0.40 | ||||||||||
Diluted | $ | 0.43 | $ | 0.43 | $ | 0.40 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 34,276 | 34,276 | 34,276 | |||||||||||||
Diluted | 34,690 | 34,690 | 34,690 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma consolidated statements of earnings | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Historical Modine | Adjusted | Discontinued | Continuing | |||||||||||||
For the quarter ended June 26, 2005 | as reported | Reclassifications | Historical Modine | Operations | Operations | |||||||||||
Net sales | $ | 450,930 | $ | 0 | $ | 450,930 | ($54,094 | ) | $ | 396,836 | ||||||
Cost of sales | 353,778 | 0 | 353,778 | (37,213 | ) | 316,565 | ||||||||||
Gross profit | 97,152 | 0 | 97,152 | (16,881 | ) | 80,271 | ||||||||||
Selling, general, and administrative expenses | 67,333 | 0 | 67,333 | (16,780 | ) | 50,553 | ||||||||||
Restructuring charges | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income from operations | 29,819 | 0 | 29,819 | (101 | ) | 29,718 | ||||||||||
Interest expense | (1,551 | ) | 0 | (1,551 | ) | 7 | (1,544 | ) | ||||||||
Other income--net | 2,712 | 0 | 2,712 | (41 | ) | 2,671 | ||||||||||
Earnings before income taxes from continuing operations | 30,980 | 0 | 30,980 | (135 | ) | 30,845 | ||||||||||
Provision for income taxes | 10,229 | 0 | 10,229 | (81 | ) | 10,148 | ||||||||||
Net earnings | $ | 20,751 | $ | 0 | $ | 20,751 | ($54 | ) | $ | 20,697 | ||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.60 | $ | 0.60 | ||||||||||
Diluted | $ | 0.60 | $ | 0.60 | $ | 0.60 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 34,329 | 34,329 | 34,329 | |||||||||||||
Diluted | 34,631 | 34,631 | 34,631 | |||||||||||||
Modine Manufacturing Company | ||||||||||||||||
Unaudited proforma segment operating results | ||||||||||||||||
(In thousands) | ||||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||
FY2006 | FY2005 | FY2005 | FY2005 | FY2005 | ||||||||||||
Sales | ||||||||||||||||
Original Equipment - Americas | $ | 164,930 | $ | 159,238 | $ | 146,413 | $ | 142,855 | $ | 141,523 | ||||||
Original Equipment - Asia | 57,827 | 49,811 | 52,405 | 14,215 | - | |||||||||||
Original Equipment - Europe | 139,993 | 123,029 | 133,919 | 116,783 | 121,850 | |||||||||||
Commercial HVAC&R | 28,456 | 27,407 | 31,904 | 24,498 | 18,999 | |||||||||||
Other | 6,788 | 10,652 | 10,551 | 8,029 | 8,401 | |||||||||||
Segment Sales | $ | 397,994 | $ | 370,137 | $ | 375,192 | $ | 306,380 | $ | 290,773 | ||||||
Corporate and Administrative | 793 | 667 | 737 | 1,272 | 1,153 | |||||||||||
Eliminations | (1,949 | ) | (1,368 | ) | (895 | ) | (935 | ) | (698 | ) | ||||||
Sales from Continuing Operations | $ | 396,838 | $ | 369,436 | $ | 375,034 | $ | 306,717 | $ | 291,228 | ||||||
Discontinued Operations | 54,092 | 45,912 | 44,112 | 58,176 | 57,399 | |||||||||||
Total Net Sales | $ | 450,930 | $ | 415,348 | $ | 419,146 | $ | 364,893 | $ | 348,627 | ||||||
Operating Earnings/(Loss) | ||||||||||||||||
Original Equipment - Americas | $ | 20,926 | $ | 22,704 | $ | 20,339 | $ | 19,672 | $ | 21,294 | ||||||
Original Equipment - Asia | 2,561 | (468 | ) | 1,778 | 626 | - | ||||||||||
Original Equipment - Europe | 21,015 | 12,837 | 20,990 | 13,920 | 14,176 | |||||||||||
Commercial HVAC&R | 2,223 | 3,451 | 5,186 | 2,808 | 1,937 | |||||||||||
Other | (4,053 | ) | (2,300 | ) | (1,369 | ) | (3,104 | ) | (4,527 | ) | ||||||
Segment Earnings | $ | 42,672 | $ | 36,224 | $ | 46,924 | $ | 33,922 | $ | 32,880 | ||||||
Corporate and Administrative Expenses | (12,984 | ) | (15,494 | ) | (15,654 | ) | (11,771 | ) | (11,751 | ) | ||||||
Eliminations | 29 | 62 | 37 | 38 | - | |||||||||||
Other Items Not Allocated to Segments | 1,128 | (224 | ) | 2,960 | 56 | (287 | ) | |||||||||
Segment Earnings from Continuing Operations | 30,845 | 20,568 | 34,267 | 22,245 | 20,842 | |||||||||||
Discontinued Operations | 135 | 162 | (4,108 | ) | 296 | 2,608 | ||||||||||
Discontinued Operations - Cumulative effect of change | ||||||||||||||||
in accounting for goodwill impairment | ||||||||||||||||
Earnings Before Income Taxes | $ | 30,980 | $ | 20,730 | $ | 30,159 | $ | 22,541 | $ | 23,450 | ||||||
Full Year | Full Year | Full Year | ||||||||||||||
(In thousands) | FY2005 | FY2004 | FY2003 | |||||||||||||
Sales | ||||||||||||||||
Original Equipment - Americas | $ | 590,029 | $ | 459,459 | $ | 417,317 | ||||||||||
Original Equipment - Asia | 116,431 | - | - | |||||||||||||
Original Equipment - Europe | 495,581 | 389,091 | 330,028 | |||||||||||||
Commercial HVAC&R | 102,808 | 88,738 | 85,812 | |||||||||||||
Other | 37,633 | 40,176 | 33,878 | |||||||||||||
Segment Sales | $ | 1,342,482 | $ | 977,464 | $ | 867,035 | ||||||||||
Corporate and Administrative | 3,829 | 5,874 | 2,423 | |||||||||||||
Eliminations | (3,895 | ) | (2,663 | ) | (6,469 | ) | ||||||||||
Sales from Continuing Operations | $ | 1,342,416 | $ | 980,675 | $ | 862,989 | ||||||||||
Discontinued Operations | 205,599 | 225,210 | 231,739 | |||||||||||||
Total Net Sales | $ | 1,548,015 | $ | 1,205,885 | $ | 1,094,728 | ||||||||||
Operating Earnings/(Loss) | ||||||||||||||||
Original Equipment - Americas | $ | 84,009 | $ | 60,944 | $ | 57,919 | ||||||||||
Original Equipment - Asia | 1,936 | - | - | |||||||||||||
Original Equipment - Europe | 61,923 | 44,995 | 39,551 | |||||||||||||
Commercial HVAC&R | 13,382 | 11,143 | 11,515 | |||||||||||||
Other | (11,300 | ) | (12,979 | ) | (11,382 | ) | ||||||||||
Segment Earnings | $ | 149,950 | $ | 104,103 | $ | 97,603 | ||||||||||
Corporate and Administrative Expenses | (54,670 | ) | (46,866 | ) | (44,430 | ) | ||||||||||
Eliminations | 137 | 150 | 131 | |||||||||||||
Other Items Not Allocated to Segments | 2,500 | 80 | (1,406 | ) | ||||||||||||
Segment Earnings from Continuing Operations | 97,917 | 57,467 | 51,898 | |||||||||||||
Discontinued Operations | (1,041 | ) | 6,244 | 3,129 | ||||||||||||
Discontinued Operations - Cumulative effect of change | ||||||||||||||||
in accounting for goodwill impairment | (22,830 | ) | ||||||||||||||
Earnings Before Income Taxes | $ | 96,876 | $ | 63,711 | $ | 32,197 | ||||||||||