EX-99.1 2 ef20032126_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
Modine Manufacturing Company
Segment operating results
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
Segment adjusted financial results
Recast for segment realignment (unaudited)
(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