Modine Manufacturing Company

26/07/2024 | Press release | Distributed by Public on 26/07/2024 12:11

Recast for segment realignment (unaudited) Form 8 K

Recast for segment realignment (unaudited)
(In millions)

Three months ended
Twelve months ended

June 30, 2023
September 30, 2023
December 31, 2023
March 31, 2024
March 31, 2024
Net sales:
Climate Solutions
$
286.7
$
289.2
$
254.0
$
278.2
$
1,108.1
Performance Technologies
343.1
337.3
310.9
330.0
1,321.3
Segment total
629.8
626.5
564.9
608.2
2,429.4
Corporate and eliminations
(7.4
)
(6.0
)
(3.5
)
(4.7
)
(21.6
)
Net sales
$
622.4
$
620.5
$
561.4
$
603.5
$
2,407.8


Three months ended
Twelve months ended

June 30, 2023
September 30, 2023
December 31, 2023
March 31, 2024
March 31, 2024

Gross profit:
$'s
% of sales

$'s
% of sales

$'s
% of sales

$'s
% of sales
$'s
% of sales
Climate Solutions
$
75.8
26.4
%
$
76.9
26.6
%
$
70.1
27.6
%
$
74.1
26.6
%
$
296.9
26.8
%
Performance Technologies
51.9
15.1
%
57.6
17.1
%
57.0
18.3
%
63.1
19.1
%
$
229.6
17.4
%
Segment total
127.7
20.3
%
134.5
21.5
%
127.1
22.5
%
137.2
22.6
%
526.5
21.7
%
Corporate and eliminations
0.2
-
0.6
-
0.2
-
(1.9
)
-
(0.9
)
-
Gross profit
$
127.9
20.6
%
$
135.1
21.8
%
$
127.3
22.7
%
$
135.3
22.4
%
$
525.6
21.8
%


Three months ended
Twelve months ended

June 30, 2023
September 30, 2023
December 31, 2023
March 31, 2024
March 31, 2024
Operating income:
Climate Solutions
$
48.6
$
47.1
$
40.4
$
42.5
$
178.6
Performance Technologies
27.6
31.2
29.5
23.4
111.7
Segment total
76.2
78.3
69.9
65.9
290.3
Corporate and eliminations
(9.7
)
(12.6
)
(8.2
)
(19.1
)
(49.6
)
Operating income
$
66.5
$
65.7
$
61.7
$
46.8
$
240.7

1
Modine Manufacturing Company
(In millions)


Three months ended June 30, 2023

Climate Solutions
Performance Technologies
Corporate and eliminations
Total
Operating income
$
48.6
$
27.6
$
(9.7
)
$
66.5
Depreciation and amortization expense
6.1
7.4
0.2
13.7
Environmental charges (d)
-
-
0.2
0.2
Adjusted EBITDA
$
54.7
$
35.0
$
(9.3
)
$
80.4

Net sales
$
286.7
$
343.1
$
(7.4
)
$
622.4
Adjusted EBITDA margin
19.1
%
10.2
%
12.9
%


Three months ended September 30, 2023

Climate Solutions
Performance Technologies
Corporate and eliminations
Total
Operating income
$
47.1
$
31.2
$
(12.6
)
$
65.7
Depreciation and amortization expense
6.2
7.5
0.3
14.0
Restructuring expenses (a)
0.3
0.2
-
0.5
Environmental charges (d)
-
-
1.0
1.0
Adjusted EBITDA
$
53.6
$
38.9
$
(11.3
)
$
81.2

Net sales
$
289.2
$
337.3
$
(6.0
)
$
620.5
Adjusted EBITDA margin
18.5
%
11.5
%
13.1
%


Three months ended December 31, 2023

Climate Solutions
Performance Technologies
Corporate and eliminations
Total
Operating income
$
40.4
$
29.5
$
(8.2
)
$
61.7
Depreciation and amortization expense
6.4
6.7
0.3
13.4
Restructuring expenses (a)
1.4
0.2
-
1.6
Gain of sale of assets (b)
-
-
(4.0
)
(4.0
)
Environmental charges (d)
-
-
1.2
1.2
Adjusted EBITDA
$
48.2
$
36.4
$
(10.7
)
$
73.9

Net sales
$
254.0
$
310.9
$
(3.5
)
$
561.4
Adjusted EBITDA margin
19.0
%
11.7
%
13.2
%

See the next page for information on restructuring expenses and other adjustments.

2
Modine Manufacturing Company
Segment adjusted financial results (continued)
Recast for segment realignment (unaudited)
(In millions)


Three months ended March 31, 2024

Climate Solutions
Performance Technologies
Corporate and eliminations
Total
Operating income
$
42.5
$
23.4
$
(19.1
)
$
46.8
Depreciation and amortization expense
7.8
7.1
0.1
15.0
Restructuring expenses (a)
1.3
11.6
-
12.9
Acquisition and integration costs (c)
-
-
4.1
4.1
Adjusted EBITDA
$
51.6
$
42.1
$
(14.9
)
$
78.8

Net sales
$
278.2
$
330.0
$
(4.7
)
$
603.5
Adjusted EBITDA margin
18.5
%
12.8
%
13.1
%


Twelve months ended March 31, 2024

Climate Solutions
Performance Technologies
Corporate and eliminations
Total
Operating income
$
178.6
$
111.7
$
(49.6
)
$
240.7
Depreciation and amortization expense
26.5
28.7
0.9
56.1
Restructuring expenses (a)
3.0
12.0
-
15.0
Gain of sale of assets (b)
-
-
(4.0
)
(4.0
)
Acquisition and integration costs (c)
-
-
4.1
4.1
Environmental charges (d)
-
-
2.4
2.4
Adjusted EBITDA
$
208.1
$
152.4
$
(46.2
)
$
314.3

Net sales
$
1,108.1
$
1,321.3
$
(21.6
)
$
2,407.8
Adjusted EBITDA margin
18.8
%
11.5
%
13.1
%

(a)
Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions and equipment transfer costs.

(b)
The Company's sale of three automotive businesses based in Germany closed on October 31, 2023. As a result of the sale, the Company recorded a $4.0 million gain on sale at Corporate during the third quarter of fiscal 2024.

(c)
On March 1, 2024, the Company acquired Scott Springfield Manufacturing, a leading provider of air handling units for the data center, telecommunications, healthcare, and aerospace markets. In addition, the Company purchased liquid immersion cooling technology from TMGcore, Inc. in January 2024. Acquisition and integration costs in fiscal 2024, recorded as SG&A expenses at Corporate, primarily include fees for i) transaction advisors, ii) legal, accounting, and other professional services, and iii) incremental costs directly associated with integration activities. In addition, the adjustment includes $1.6 million, also recorded at Corporate, for the impact of an inventory purchase accounting adjustment. The Company wrote up acquired inventory to its estimated fair value and is charging the write-up to cost of sales as the underlying inventory is sold.

(d)
Environmental charges, including related legal costs, relate to a previously-owned U.S. manufacturing facility.


3