Modine Manufacturing Co 8-K, filed Oct 29, 2021
Modine Manufacturing Co (MOD)
8-K
2021-10-29
For: 2021-10-29
View Original
Added on
April 11, 2026
About this 8-K
Modine Manufacturing Co filed this 8-K on October 29, 2021.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code:
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(
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(Former name or former address, if changed since last report.)
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N/A
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230 .40 5 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 7.01
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Regulation FD Disclosure
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Effective July 1, 2021, Modine Manufacturing Company (the “Company”) aligned the data center businesses previously managed by and reported within its Commercial and
Industrial Solutions (“CIS”) segment under its Building HVAC Systems (“BHVAC”) segment. As part of this segment realignment, the BHVAC segment assumed management of the Company’s business in Guadalajara, Spain and a portion of its business in
Grenada, Mississippi. The Company is strategically aligning its data center businesses under the BHVAC leadership team in order to accelerate commercial excellence, operational improvements, and organizational efficiencies. The Company is focused
on expanding its presence in the North American and European data center markets.
Beginning with its reporting for the second quarter of fiscal 2022, the Company will report the financial results of its business in Spain and the data center portion of
its business in Mississippi as part of the BHVAC segment. The Company’s revised reporting segments are consistent with how the Company’s chief operating decision maker is assessing operating performance and allocating capital resources following the
realignment of its segment structure. The segment realignment had no impact on the Heavy Duty Equipment (“HDE”) and Automotive segments or on the Company’s consolidated financial position, results of operations, and cash flows.
The Company is furnishing this Form 8-K to provide investors with unaudited historical segment operating and adjusted financial results consistent with its new reporting
structure. The schedules in Exhibit 99.1 to this Current Report on Form 8-K provide unaudited financial information on the basis of the Company’s new reporting segments for the previously-reported quarters in fiscal 2021 and the first quarter of
fiscal 2022.
The segment realignment discussed above and presented in Exhibit 99.1 hereto does not represent a restatement of previously issued financial statements. The information in
this Item 7.01, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in
any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.
Non-GAAP Financial Disclosures
Adjusted EBITDA, as used in Exhibit 99.1 hereto, is not a measure defined in generally accepted accounting principles (GAAP). This non-GAAP measure is used by management
as a performance measure to evaluate the Company’s overall financial performance. The Company believes this measure provides a more consistent view of performance than the closest GAAP equivalent for management and investors. Management compensates
for this by using this measure in combination with the GAAP measures. However, this measure is not, and should not be viewed as, a substitute for the applicable GAAP measures, and may be different from similarly-titled measures used by other
companies. The Company defines Adjusted EBITDA as net earnings excluding interest expense, the provision or benefit for income taxes, depreciation and amortization expenses, other income and expense, restructuring expenses, impairment charges, costs
associated with the review of strategic alternatives for the Automotive segment’s business operations, and certain other gains or charges. Adjusted EBITDA, when calculated for the business segments, is defined as GAAP operating income excluding
depreciation and amortization expenses, restructuring expenses, impairment charges, and certain other gains or charges.
2
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits
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The following exhibits are being furnished herewith:
| 99.1 |
Recast unaudited financial information – for the quarter ended June 30, 2020; the quarter ended September 30, 2020; the quarter ended December 31, 2020; the quarter and fiscal year
ended March 31, 2021; and the quarter ended June 30, 2021.
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| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
3
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
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Modine Manufacturing Company
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By: /s/ Michael B. Lucareli
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Michael B. Lucareli
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Executive Vice President, Chief Financial Officer
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Date: October 29, 2021
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4
Exhibit 99.1
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Modine Manufacturing Company
Segment operating results
Recast for segment realignment (unaudited)
(In millions)
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Three months ended
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Twelve months
ended
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Three months
ended
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||||||||||||||||||||||
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June 30, 2020
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September 30, 2020
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December 31, 2020
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March 31, 2021
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March 31, 2021
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June 30, 2021
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|||||||||||||||||||
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Net sales:
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||||||||||||||||||||||||
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BHVAC
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$
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54.1
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$
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68.5
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$
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73.7
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$
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66.9
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$
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263.2
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$
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66.6
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||||||||||||
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CIS
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116.5
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128.2
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124.9
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142.8
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512.4
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154.1
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||||||||||||||||||
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HDE
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123.5
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165.6
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185.6
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207.4
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682.1
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201.8
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||||||||||||||||||
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Automotive
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62.1
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109.9
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113.9
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112.4
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398.3
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86.2
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||||||||||||||||||
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Segment total
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356.2
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472.2
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498.1
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529.5
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1,856.0
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508.7
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||||||||||||||||||
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Corporate and eliminations
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(8.4
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)
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(10.8
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)
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(13.8
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)
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(14.6
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)
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(47.6
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)
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(14.1
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)
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||||||||||||
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Net sales
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$
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347.8
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$
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461.4
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$
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484.3
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$
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514.9
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$
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1,808.4
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$
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494.6
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||||||||||||
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Three months ended
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Twelve months
ended
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Three months
ended
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||||||||||||||||||||||||||||||||||||||||||||||
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June 30, 2020
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September 30, 2020
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December 31, 2020
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March 31, 2021
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March 31, 2021
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June 30, 2021
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Gross profit:
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$'s
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% of
sales
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$'s
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% of
sales
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$'s
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% of
sales
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$'s
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% of
sales
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$'s
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% of
sales
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$'s
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% of
sales
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||||||||||||||||||||||||||||||||||||
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BHVAC
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$
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15.8
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29.1
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%
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$
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23.3
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34.1
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%
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$
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25.4
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34.5
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%
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$
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20.8
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31.0
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%
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$
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85.3
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32.4
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%
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$
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16.2
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24.4
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%
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||||||||||||||||||||||||
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CIS
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14.2
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12.2
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%
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17.7
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13.8
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%
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12.9
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10.3
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%
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19.4
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13.6
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%
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64.2
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12.5
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%
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20.8
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13.5
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%
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||||||||||||||||||||||||||||||
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HDE
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11.3
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9.2
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%
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23.6
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14.2
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%
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26.0
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14.0
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%
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27.5
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13.2
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%
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88.4
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13.0
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%
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22.6
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11.2
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%
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Automotive
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4.8
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7.7
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%
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16.6
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15.2
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%
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18.4
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16.1
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%
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16.2
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14.4
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%
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56.0
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14.1
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%
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13.2
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15.3
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%
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||||||||||||||||||||||||||||||
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Segment total
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46.1
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12.9
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%
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81.2
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17.2
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%
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82.7
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16.6
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%
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83.9
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15.8
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%
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293.9
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15.8
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%
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72.8
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14.3
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%
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||||||||||||||||||||||||||||||
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Corporate and eliminations
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-
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-
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(0.4
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)
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-
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-
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-
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(0.1
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)
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-
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(0.5
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)
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-
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0.4
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-
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|||||||||||||||||||||||||||||||||
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Gross profit
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$
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46.1
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13.3
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%
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$
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80.8
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17.5
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%
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$
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82.7
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17.1
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%
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$
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83.8
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16.3
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%
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$
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293.4
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16.2
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%
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$
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73.2
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14.8
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%
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||||||||||||||||||||||||
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Three months ended
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Twelve months
ended
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Three months
ended
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||||||||||||||||||||||
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June 30, 2020
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September 30, 2020
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December 31, 2020
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March 31, 2021
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March 31, 2021
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June 30, 2021
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|||||||||||||||||||
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Operating income:
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||||||||||||||||||||||||
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BHVAC
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$
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7.2
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$
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13.5
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$
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14.9
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$
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9.6
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$
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45.2
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$
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5.7
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||||||||||||
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CIS
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(0.1
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)
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5.2
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(0.7
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)
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5.8
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10.2
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7.5
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||||||||||||||||
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HDE
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(2.5
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)
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13.3
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12.8
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13.2
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36.8
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8.9
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|||||||||||||||||
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Automotive
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(3.8
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)
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8.0
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(124.9
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)
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(30.2
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)
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(150.9
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)
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4.2
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||||||||||||||
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Segment total
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0.8
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40.0
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(97.9
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)
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(1.6
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)
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(58.7
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)
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26.3
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|||||||||||||||
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Corporate and eliminations
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(4.0
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)
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(11.5
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)
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(10.8
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)
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(12.7
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)
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(39.0
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)
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(17.6
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)
|
||||||||||||
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Operating (loss) income
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$
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(3.2
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)
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$
|
28.5
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$
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(108.7
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)
|
$
|
(14.3
|
)
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$
|
(97.7
|
)
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$
|
8.7
|
||||||||
Exhibit 99.1
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Modine Manufacturing Company
Segment adjusted financial results
Recast for segment realignment (unaudited)
(In millions)
|
|
Three months ended June 30, 2020
|
||||||||||||||||||||||||
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BHVAC
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CIS
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HDE
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Automotive
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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
|
||||||||||||||||||||||||
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BHVAC
|
CIS
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HDE
|
Automotive
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Corporate and
eliminations
|
Total
|
|||||||||||||||||||
|
Operating income (loss)
|
$
|
13.5
|
$
|
5.2
|
$
|
13.3
|
$
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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.
|