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. |