Exhibit 99.1
Modine Manufacturing Company Segment operating results Recast for segment realignment (unaudited) (In millions) |
Three months ended | Twelve months ended | Three months ended | ||||||||||||||||||||||
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | March 31, 2021 | June 30, 2021 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
BHVAC | $ | 54.1 | $ | 68.5 | $ | 73.7 | $ | 66.9 | $ | 263.2 | $ | 66.6 | ||||||||||||
CIS | 116.5 | 128.2 | 124.9 | 142.8 | 512.4 | 154.1 | ||||||||||||||||||
HDE | 123.5 | 165.6 | 185.6 | 207.4 | 682.1 | 201.8 | ||||||||||||||||||
Automotive | 62.1 | 109.9 | 113.9 | 112.4 | 398.3 | 86.2 | ||||||||||||||||||
Segment total | 356.2 | 472.2 | 498.1 | 529.5 | 1,856.0 | 508.7 | ||||||||||||||||||
Corporate and eliminations | (8.4 | ) | (10.8 | ) | (13.8 | ) | (14.6 | ) | (47.6 | ) | (14.1 | ) | ||||||||||||
Net sales | $ | 347.8 | $ | 461.4 | $ | 484.3 | $ | 514.9 | $ | 1,808.4 | $ | 494.6 |
Three months ended | Twelve months ended | Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | March 31, 2021 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | $'s | % of sales | $'s | % of sales | $'s | % of sales | $'s | % of sales | ||||||||||||||||||||||||||||||||||||
BHVAC | $ | 15.8 | 29.1 | % | $ | 23.3 | 34.1 | % | $ | 25.4 | 34.5 | % | $ | 20.8 | 31.0 | % | $ | 85.3 | 32.4 | % | $ | 16.2 | 24.4 | % | ||||||||||||||||||||||||
CIS | 14.2 | 12.2 | % | 17.7 | 13.8 | % | 12.9 | 10.3 | % | 19.4 | 13.6 | % | 64.2 | 12.5 | % | 20.8 | 13.5 | % | ||||||||||||||||||||||||||||||
HDE | 11.3 | 9.2 | % | 23.6 | 14.2 | % | 26.0 | 14.0 | % | 27.5 | 13.2 | % | 88.4 | 13.0 | % | 22.6 | 11.2 | % | ||||||||||||||||||||||||||||||
Automotive | 4.8 | 7.7 | % | 16.6 | 15.2 | % | 18.4 | 16.1 | % | 16.2 | 14.4 | % | 56.0 | 14.1 | % | 13.2 | 15.3 | % | ||||||||||||||||||||||||||||||
Segment total | 46.1 | 12.9 | % | 81.2 | 17.2 | % | 82.7 | 16.6 | % | 83.9 | 15.8 | % | 293.9 | 15.8 | % | 72.8 | 14.3 | % | ||||||||||||||||||||||||||||||
Corporate and eliminations | - | - | (0.4 | ) | - | - | - | (0.1 | ) | - | (0.5 | ) | - | 0.4 | - | |||||||||||||||||||||||||||||||||
Gross profit | $ | 46.1 | 13.3 | % | $ | 80.8 | 17.5 | % | $ | 82.7 | 17.1 | % | $ | 83.8 | 16.3 | % | $ | 293.4 | 16.2 | % | $ | 73.2 | 14.8 | % |
Three months ended | Twelve months ended | Three months ended | ||||||||||||||||||||||
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | March 31, 2021 | June 30, 2021 | |||||||||||||||||||
Operating income: | ||||||||||||||||||||||||
BHVAC | $ | 7.2 | $ | 13.5 | $ | 14.9 | $ | 9.6 | $ | 45.2 | $ | 5.7 | ||||||||||||
CIS | (0.1 | ) | 5.2 | (0.7 | ) | 5.8 | 10.2 | 7.5 | ||||||||||||||||
HDE | (2.5 | ) | 13.3 | 12.8 | 13.2 | 36.8 | 8.9 | |||||||||||||||||
Automotive | (3.8 | ) | 8.0 | (124.9 | ) | (30.2 | ) | (150.9 | ) | 4.2 | ||||||||||||||
Segment total | 0.8 | 40.0 | (97.9 | ) | (1.6 | ) | (58.7 | ) | 26.3 | |||||||||||||||
Corporate and eliminations | (4.0 | ) | (11.5 | ) | (10.8 | ) | (12.7 | ) | (39.0 | ) | (17.6 | ) | ||||||||||||
Operating (loss) income | $ | (3.2 | ) | $ | 28.5 | $ | (108.7 | ) | $ | (14.3 | ) | $ | (97.7 | ) | $ | 8.7 |
Exhibit 99.1
Modine Manufacturing Company Segment adjusted financial results Recast for segment realignment (unaudited) (In millions) |
Three months ended June 30, 2020 | ||||||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Corporate and eliminations | Total | |||||||||||||||||||
Operating income (loss) | $ | 7.2 | $ | (0.1 | ) | $ | (2.5 | ) | $ | (3.8 | ) | $ | (4.0 | ) | $ | (3.2 | ) | |||||||
Depreciation and amortization expense | 1.4 | 5.6 | 6.1 | 5.0 | 0.5 | 18.6 | ||||||||||||||||||
Restructuring expenses (a) | - | 2.4 | 1.9 | 0.2 | 0.1 | 4.6 | ||||||||||||||||||
Automotive separation and exit strategy costs (b) | - | - | - | - | 0.5 | 0.5 | ||||||||||||||||||
Adjusted EBITDA | $ | 8.6 | $ | 7.9 | $ | 5.5 | $ | 1.4 | $ | (2.9 | ) | $ | 20.5 |
Three months ended September 30, 2020 | ||||||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Corporate and eliminations | Total | |||||||||||||||||||
Operating income (loss) | $ | 13.5 | $ | 5.2 | $ | 13.3 | $ | 8.0 | $ | (11.5 | ) | $ | 28.5 | |||||||||||
Depreciation and amortization expense | 1.4 | 5.8 | 6.5 | 5.2 | 0.4 | 19.3 | ||||||||||||||||||
Restructuring expenses (a) | - | 1.5 | - | - | - | 1.5 | ||||||||||||||||||
Automotive separation and exit strategy costs (b) | - | - | - | - | 0.6 | 0.6 | ||||||||||||||||||
Strategic reorganization costs (c) | - | - | - | - | 5.5 | 5.5 | ||||||||||||||||||
Adjusted EBITDA | $ | 14.9 | $ | 12.5 | $ | 19.8 | $ | 13.2 | $ | (5.0 | ) | $ | 55.4 |
Three months ended December 31, 2020 | ||||||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Corporate and eliminations | Total | |||||||||||||||||||
Operating income (loss) | $ | 14.9 | $ | (0.7 | ) | $ | 12.8 | $ | (124.9 | ) | $ | (10.8 | ) | $ | (108.7 | ) | ||||||||
Depreciation and amortization expense | 1.4 | 5.6 | 6.5 | 2.4 | 0.4 | 16.3 | ||||||||||||||||||
Restructuring expenses (a) | - | 0.5 | - | 0.4 | - | 0.9 | ||||||||||||||||||
Impairment charges (d) | - | - | - | 134.4 | - | 134.4 | ||||||||||||||||||
Automotive separation and exit strategy costs (b) | - | - | - | - | 3.0 | 3.0 | ||||||||||||||||||
Strategic reorganization costs (c) | - | - | - | - | 0.4 | 0.4 | ||||||||||||||||||
Environmental charges (e) | - | - | 0.4 | - | - | 0.4 | ||||||||||||||||||
Adjusted EBITDA | $ | 16.3 | $ | 5.4 | $ | 19.7 | $ | 12.3 | $ | (7.0 | ) | $ | 46.7 |
Three months ended March 31, 2021 | ||||||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Corporate and eliminations | Total | |||||||||||||||||||
Operating income (loss) | $ | 9.6 | $ | 5.8 | $ | 13.2 | $ | (30.2 | ) | $ | (12.7 | ) | $ | (14.3 | ) | |||||||||
Depreciation and amortization expense | 1.4 | 5.6 | 6.5 | 0.5 | 0.4 | 14.4 | ||||||||||||||||||
Restructuring expenses (a) | - | 0.8 | 1.1 | 3.2 | 1.3 | 6.4 | ||||||||||||||||||
Impairment charges (d) | - | - | - | 32.4 | - | 32.4 | ||||||||||||||||||
Automotive separation and exit strategy costs (b) | - | - | - | - | 2.5 | 2.5 | ||||||||||||||||||
Strategic reorganization costs (c) | - | - | - | - | 0.8 | 0.8 | ||||||||||||||||||
Adjusted EBITDA | $ | 11.0 | $ | 12.2 | $ | 20.8 | $ | 5.9 | $ | (7.7 | ) | $ | 42.2 |
See the next page for information on restructuring expenses and other adjustments.
Exhibit 99.1
Modine Manufacturing Company Segment adjusted financial results (continued) Recast for segment realignment (unaudited) (In millions) |
Twelve months ended March 31, 2021 | ||||||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Corporate and eliminations | Total | |||||||||||||||||||
Operating income (loss) | $ | 45.2 | $ | 10.2 | $ | 36.8 | $ | (150.9 | ) | $ | (39.0 | ) | $ | (97.7 | ) | |||||||||
Depreciation and amortization expense | 5.5 | 22.6 | 25.5 | 13.2 | 1.8 | 68.6 | ||||||||||||||||||
Restructuring expenses (a) | - | 5.2 | 3.0 | 3.8 | 1.4 | 13.4 | ||||||||||||||||||
Impairment charges (d) | - | - | - | 166.8 | - | 166.8 | ||||||||||||||||||
Automotive separation and exit strategy costs (b) | - | - | - | - | 6.6 | 6.6 | ||||||||||||||||||
Strategic reorganization costs (c) | - | - | - | - | 6.7 | 6.7 | ||||||||||||||||||
Environmental charges (e) | - | - | 0.4 | - | - | 0.4 | ||||||||||||||||||
Adjusted EBITDA | $ | 50.7 | $ | 38.0 | $ | 65.7 | $ | 32.9 | $ | (22.5 | ) | $ | 164.8 |
Three months ended June 30, 2021 | ||||||||||||||||||||||||
BHVAC | CIS | HDE | Automotive | Corporate and eliminations | Total | |||||||||||||||||||
Operating income (loss) | $ | 5.7 | $ | 7.5 | $ | 8.9 | $ | 4.2 | $ | (17.6 | ) | $ | 8.7 | |||||||||||
Depreciation and amortization expense | 1.5 | 5.3 | 6.3 | 0.1 | 0.3 | 13.5 | ||||||||||||||||||
Restructuring expenses (a) | - | - | 0.2 | 0.1 | - | 0.3 | ||||||||||||||||||
Impairment charges (reversals) – net (d) | - | 0.3 | - | (2.1 | ) | - | (1.8 | ) | ||||||||||||||||
Loss on sale of assets (f) | - | - | - | - | 6.6 | 6.6 | ||||||||||||||||||
Automotive separation and exit strategy costs (b) | - | - | - | - | 1.9 | 1.9 | ||||||||||||||||||
Strategic reorganization costs (c) | - | - | - | - | 0.6 | 0.6 | ||||||||||||||||||
Environmental charges (e) | - | - | - | - | 3.5 | 3.5 | ||||||||||||||||||
Adjusted EBITDA | $ | 7.2 | $ | 13.1 | $ | 15.4 | $ | 2.3 | $ | (4.7 | ) | $ | 33.3 |
(a) | Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions and plant consolidation activities. |
(b) | Automotive separation and exit strategy costs consist of costs directly associated with the Company's review of strategic alternatives for the liquid- and air-cooled automotive businesses, including costs to separate and prepare the underlying businesses for sale. These costs were primarily recorded as SG&A expenses and primarily related to accounting, legal, and IT professional services. |
(c) | Strategic reorganization costs, recorded as SG&A expenses, primarily relate to costs associated with the Company's transition to a new CEO during fiscal 2021, recruiting of new senior management positions, and implementing the Company's 80/20 strategy. |
(d) | The non-cash impairment charges recorded in fiscal 2021 primarily relate to property, plant and equipment assets within the held for sale liquid- and air-cooled automotive businesses. The net impairment reversal in the first quarter of fiscal 2022 primarily relates to the liquid-cooled automotive business. As a result of a modified transaction perimeter, certain manufacturing operations will no longer convey as part of the pending sale. Accordingly, the Company evaluated the long-lived assets of these businesses and reversed $7.4 million of previously-recorded impairment charges to adjust the asset groups to estimated fair value. This impairment reversal was partially offset by $5.6 million of impairment charges recorded during the first quarter of fiscal 2022 related to other assets held for sale. |
(e) | Environmental charges, including related legal costs, are recorded as SG&A expenses and relate to a previously-owned U.S. manufacturing facility. |
(f) | The Company's sale of its air-cooled automotive business closed on April 30, 2021. As a result of the sale, the Company recorded a $6.6 million loss on sale during the first quarter of fiscal 2022. |