Exhibit 99.1
Modine Manufacturing Company
Segment operating results
Recast for segment realignment (unaudited)
| | | 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)
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. |
