Modine Manufacturing Co 8-K, filed Aug 2, 2023
Modine Manufacturing Co (MOD)
8-K
2023-08-02
For: 2023-08-02
View Original
Added on
April 11, 2026
About this 8-K
Modine Manufacturing Co filed this 8-K on August 2, 2023.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
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
Date of Report (Date of earliest event reported): August 2, 2023
(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 (§230.405 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. ☐
Information to be Included in the Report
| Item 2.02 |
Results of Operations and Financial Condition
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On August 2, 2023, Modine Manufacturing Company (the “Company”) issued a press release announcing the results of operations and financial condition for the first quarter
ended June 30, 2023.
During a conference call scheduled to be held at 10:00 a.m. Eastern Time on August 3, 2023, the Company’s President and Chief Executive Officer, Neil D. Brinker, and
Executive Vice President, Chief Financial Officer, Michael B. Lucareli, will discuss the Company’s results for the first quarter ended June 30, 2023.
Attached to this Current Report on Form 8-K as Exhibit 99.1 is a copy of the Company’s press release in connection with the announcement. The information in this Item
2.02, including Exhibit 99.1, is furnished pursuant to Item 2.02 and 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.
| Item 9.01 |
Financial Statements and Exhibits
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| (d) |
Exhibits
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The following exhibits are being furnished herewith:
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Press Release dated August 2, 2023 announcing the results of operations and financial condition for the first quarter ended June 30, 2023.
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104
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Cover Page Interactive Data File (formatted as Inline XBRL)
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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:
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/s/ Neil D. Brinker | ||
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Neil D. Brinker
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President and Chief Executive Officer
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Date: August 2, 2023
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2
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Modine Reports Another Record Quarter, Raises Full-Year Earnings Guidance
Accelerating benefits from 80/20 actions support transformation and progress towards long-term targets; strong Q1 results lead to upward revision to
full-year earnings outlook
Racine, WI – August 2, 2023 – Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended June 30, 2023.
First Quarter Highlights:
| • |
Net sales of $622.4 million increased 15 percent from the prior year
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| • |
Operating income of $66.5 million increased $40.9 million, or 160 percent, from the prior year
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| • |
Adjusted EBITDA of $80.4 million increased $38.2 million, or 91 percent, from the prior year
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Earnings per share of $0.85 compared to $0.27 in the prior year
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| • |
Adjusted earnings per share of $0.85 compared to $0.32 in the prior year
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Revised Fiscal 2024 Outlook:
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Net sales up 6% to 11%
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| • |
Adjusted EBITDA of $280 million to $295 million, an increase of 32% to 39% over the prior year
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“This was an incredible quarter for Modine, with record revenue and significant margin expansion, as both segments exceeded expectations by driving strong growth and
operational improvements,” said Modine President and Chief Executive Officer, Neil D. Brinker. “The benefits of the 80/20 activities taken to transform our business are coming earlier than we originally planned, leading to our first quarter results
being stronger than expected. In particular, I am extremely proud of the Performance Technologies team, who are embracing 80/20 principles to improve commercial terms while continuing to deliver value to our customers. The Data Center vertical also
had a strong quarter, with orders materializing earlier than expected. We are still in the early stages of our transformation journey, with further opportunities for margin improvement while we invest for future growth in our most attractive
markets.”
Financial Results
Net sales increased 15 percent in the first quarter to $622.4 million, compared with $541.0 million in the prior year. The increase was driven by sales volume
improvements in both the Climate Solutions and Performance Technologies segments and favorable commercial pricing.
Gross profit increased 53 percent in the first quarter to $127.9 million and gross margin improved by 520 basis points to 20.6 percent, primarily due to the favorable
impact of higher sales.
Selling, general and administrative (“SG&A”) expenses increased $5.1 million to $61.4 million in the first quarter, yet decreased by 50 basis points as a percentage
of sales. The increase in SG&A expenses was primarily driven by higher compensation-related expenses, including higher incentive compensation driven by improved financial results.
1
Operating income in the first quarter was $66.5 million, compared to $25.6 million in the prior year. The increase was driven by higher gross profit as compared to the
prior year. During the first quarter of fiscal 2024, the Company recorded $0.2 million of environmental charges. During the first quarter of fiscal 2023, the Company recorded $1.5 million of restructuring expenses and $1.2 million of environmental
charges. Excluding restructuring expenses, environmental charges, and depreciation and amortization expense, adjusted EBITDA of $80.4 million increased $38.2 million, or 91 percent, compared with $42.2 million in the prior year.
Earnings per share was $0.85 in the first quarter, compared with $0.27 in the first quarter
last year. Adjusted earnings per share was $0.85 in the first quarter, compared with adjusted earnings per share of $0.32 in the first quarter of the prior year. These improvements were primarily driven by higher gross profit on higher sales
volume.
First Quarter Segment Review
| • |
Climate Solutions segment sales were $271.8 million, compared with $244.4 million one year ago, an increase of 11 percent. This increase was driven by higher sales of data center cooling products,
partially offset by lower sales of heat transfer products and HVAC and refrigeration products. The segment reported gross margin of 25.4 percent, which was 480 basis points higher than the prior year, primarily due to higher sales volume.
The segment reported operating income of $44.3 million, a 64 percent increase from the prior year. Adjusted EBITDA was $49.7 million, an increase of $17.3 million, or 53 percent, from the prior year.
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| • |
Performance Technologies segment sales were $358.9 million, compared with $304.3 million one year ago, an increase of 18 percent. This increase primarily resulted from higher sales across all
product groups as well as favorable commercial pricing, including favorable retroactive adjustments. The segment reported gross margin of 16.3 percent, up 550 basis points from the prior year. The margin improvement was primarily driven by
the favorable impact of higher sales. The segment reported operating income of $32.0 million, a $24.6 million improvement compared to the prior year, primarily due to higher gross profit. Adjusted EBITDA was $40.1 million, an increase of
$23.0 million, or 135 percent, from the prior year.
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Balance Sheet & Liquidity
Net cash provided by operating activities for the quarter ended June 30, 2023 was $41.7 million, an increase of $27.2 million compared to the prior year. Free cash flow
for the quarter ended June 30, 2023 was $26.6 million, an increase of $22.5 million from the prior year. This increase was primarily due to the favorable impact of higher earnings, partially offset by unfavorable net changes in working capital,
including higher payments for incentive compensation, as compared with the prior year. Cash payments for restructuring activities, environmental costs, and certain other items during the quarter ended June 30, 2023 totaled $2.7 million.
Total debt was $357.7 million as of June 30, 2023. Cash and cash equivalents at June 30, 2023 were $92.5 million. Net debt was $265.2 million as of June 30, 2023, a
decrease of $20.4 million from the end of fiscal 2023.
Outlook
“Our performance in the first quarter exceeded our expectations, leading to a stronger outlook for the full fiscal year,” added Brinker. “In Performance Technologies, we
have focused on improving commercial terms and have recaptured margin lost to material, labor, and overhead inflation over the past several years. In Climate Solutions, we have invested for growth in key markets such as data centers, which
continues to drive significant value. We are maintaining a cautious stance on the second half of the year due to continued softness in certain end markets, but remain confident in our ability to execute on our strategic initiatives and deliver on
our financial commitments as we build further momentum towards our transformation.”
2
Based on current exchange rates and market outlook, Modine provides its revised outlook for fiscal 2024:
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Fiscal 2024
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Current Outlook
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Net Sales
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+6% to 11%
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Adjusted EBITDA
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$280 to $295 million
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Conference Call and Webcast
Modine will conduct a conference call and live webcast, with a slide presentation, on Thursday, August 3, 2023 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to
discuss its first quarter fiscal year 2024 financial results. The webcast and accompanying slides will be available on the Investor Relations section of the Modine website at www.modine.com. Participants are encouraged to log on to the webcast and
conference call about ten minutes prior to the start of the event. A replay of the audio and slides will be available on the Investor Relations section of the Modine website at www.modine.com on or after August 3, 2023. A call-in replay will be
available through midnight on August 10, 2023 at 877-660-6853, (international replay 201-612-7415); Conference ID# 13739421. The Company will post a transcript of the call on its website on or after August 8, 2023.
About Modine
At Modine, we are Engineering a Cleaner, Healthier World™. Building on more than 100 years of excellence in thermal
management, we provide trusted systems and solutions that improve air quality and conserve natural resources. More than 11,000 employees are at work in every corner of the globe, delivering the solutions our customers need, where they need them.
Our Climate Solutions and Performance Technologies segments support our purpose by improving air quality, reducing energy and water consumption, lowering harmful emissions and enabling cleaner running vehicles and environmentally friendly
refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe and Asia. For more information about Modine, visit www.modine.com.
Forward-Looking Statements
This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as “believes,”
“estimates,” “expects,” “plans,” “anticipates,” “intends,” “projects,” and other similar “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may
differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under “Risk Factors” in Item 1A of Part I of the Company's Annual Report on Form 10-K
for the year ended March 31, 2023 and under Forward-Looking Statements in Item 7 of Part II of that same report. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or
disruptions in the global economy and financial markets, including impacts related to inflation, rising energy costs, along with supply chain challenges or supplier constraints, tariffs, sanctions and other trade issues or cross-border trade
restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, increases in interest rates or tightening of the
credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we
serve, from regulatory and/or policy changes, including those related to tax and trade, climate change, COVID-19 or future public health threats, the military conflict in Ukraine and other matters, that have been or may be implemented in the U.S.
or abroad; the overall health and pricing focus of our customers; our ability to successfully realize further anticipated benefits, including improved profit margins and cash flow, from our strategic initiatives and our application of 80/20
principles across our businesses; our ability to accelerate growth organically and through acquisitions and successfully integrate acquired businesses; our ability to effectively and efficiently manage our operations in response to sales volume
changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring activities and realizing benefits thereof; our ability to fund our global liquidity requirements efficiently
and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of product or program launches, unexpected volume increases or decreases, and product transfers; the impact on Modine of any significant
increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; our ability to recruit
and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any
substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation and the increasing emphasis on environmental, social and corporate governance
matters; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any
forward-looking statements.
3
Non-GAAP Financial Disclosures
Adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, net debt, and free cash flow (which are defined below) as used in this press release are not
measures that are defined in generally accepted accounting principles (GAAP). These non-GAAP measures are used by management as performance measures to evaluate the Company’s overall financial performance and liquidity. These measures are not, and
should not be viewed as, substitutes for the applicable GAAP measures, and may be different from similarly-titled measures used by other companies.
Definition – Adjusted EBITDA and adjusted EBITDA margin
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 and certain other gains or charges. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of net sales. The Company believes that adjusted EBITDA and adjusted EBITDA margin
provide relevant measures of profitability and earnings power. The Company views these financial metrics as being useful in assessing operating performance from period to period by excluding certain items that it believes are not representative of
its core business. 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.
Definition – Adjusted earnings per share
Diluted earnings per share plus restructuring expenses, impairment charges, and excluding changes in income tax valuation allowances and certain other gains or charges.
Adjusted earnings per share is an overall performance measure, not including non-cash impairment charges, costs associated with restructuring activities and certain other gains or charges.
Definition – Net debt
The sum of debt due within one year and long-term debt, less cash and cash equivalents. Net debt is an indicator of the Company's debt position after considering on-hand
cash balances.
Definition – Free cash flow
Free cash flow represents net cash provided by operating activities less expenditures for property, plant and equipment. Free cash flow presents cash generated from
operations during the period that is available for strategic capital decisions.
Forward-looking non-GAAP financial measure
The Company’s fiscal 2024 guidance includes adjusted EBITDA, as defined above, which is a non-GAAP financial measure. The full-year fiscal 2024 guidance for adjusted
EBITDA is based upon the Company’s estimates for interest expense of approximately $23 to $25 million, a provision for income taxes of approximately $49 to $55 million, and depreciation and amortization expense of approximately $56 to $60 million.
Adjusted EBITDA also excludes certain cash and non-cash expenses or gains. These expenses and gains may be significant and include items such as restructuring expenses (including severance costs and plant consolidation and relocation expenses),
impairment charges and certain other items. These expenses for the first three months of fiscal 2024 are presented on page 8. Estimates of these expenses and gains for the remainder of fiscal 2024 are not available due to the low visibility and
unpredictability of these items.
4
Modine Manufacturing Company
Consolidated statements of operations (unaudited)
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(In millions, except per share amounts)
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||||||||
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Three months ended June 30,
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||||||||
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2023
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2022
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|||||||
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Net sales
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$
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622.4
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$
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541.0
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||||
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Cost of sales
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494.5
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457.6
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||||||
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Gross profit
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127.9
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83.4
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||||||
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Selling, general & administrative expenses
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61.4
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56.3
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||||||
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Restructuring expenses
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-
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1.5
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||||||
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Operating income
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66.5
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25.6
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||||||
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Interest expense
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(5.9
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)
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(4.1
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)
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Other expense – net
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(0.6
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)
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(2.3
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)
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Earnings before income taxes
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60.0
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19.2
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||||||
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Provision for income taxes
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(14.7
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)
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(4.9
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)
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Net earnings
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45.3
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14.3
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Net earnings attributable to noncontrolling interest
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(0.5
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)
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-
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|||||
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Net earnings attributable to Modine
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$
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44.8
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$
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14.3
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Net earnings per share attributable to Modine shareholders – diluted
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$
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0.85
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$
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0.27
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Weighted-average shares outstanding – diluted
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53.0
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52.4
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Condensed consolidated balance sheets (unaudited)
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(In millions)
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June 30, 2023
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March 31, 2023
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Assets
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Cash and cash equivalents
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$
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92.5
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$
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67.1
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||||
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Trade receivables
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399.8
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398.0
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Inventories
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333.5
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324.9
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Other current assets
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68.3
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56.4
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Total current assets
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894.1
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846.4
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Property, plant and equipment – net
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310.3
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314.5
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||||||
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Intangible assets – net
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79.1
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81.1
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||||||
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Goodwill
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165.6
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165.6
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Deferred income taxes
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81.2
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83.7
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||||||
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Other noncurrent assets
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77.6
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74.6
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||||||
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Total assets
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$
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1,607.9
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$
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1,565.9
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Liabilities and shareholders' equity
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||||||||
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Debt due within one year
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$
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27.7
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$
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23.4
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||||
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Accounts payable
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317.5
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332.8
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Other current liabilities
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161.5
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150.9
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Total current liabilities
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506.7
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507.1
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Long-term debt
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330.0
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329.3
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||||||
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Other noncurrent liabilities
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126.7
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129.9
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Total liabilities
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963.4
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966.3
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Total equity
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644.5
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599.6
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Total liabilities & equity
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$
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1,607.9
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$
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1,565.9
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5
Modine Manufacturing Company
Condensed consolidated statements of cash flows (unaudited)
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(In millions)
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||||||||
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Three months ended June 30,
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2023
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2022
|
|||||||
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Cash flows from operating activities:
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||||||||
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Net earnings
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$
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45.3
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$
|
14.3
|
||||
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Adjustments to reconcile net earnings to net cash provided by operating activities:
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||||||||
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Depreciation and amortization
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13.7
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13.9
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||||||
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Stock-based compensation expense
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1.5
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1.1
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||||||
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Deferred income taxes
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3.1
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(0.9
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)
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|||||
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Other – net
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1.4
|
0.8
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||||||
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Changes in operating assets and liabilities:
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||||||||
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Trade accounts receivable
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(2.7
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)
|
0.7
|
|||||
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Inventories
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(7.9
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)
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(38.5
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)
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||||
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Accounts payable
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(9.5
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)
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6.8
|
|||||
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Other assets and liabilities
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(3.2
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)
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16.3
|
|||||
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Net cash provided by operating activities
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41.7
|
14.5
|
||||||
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Cash flows from investing activities:
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||||||||
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Expenditures for property, plant and equipment
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(15.1
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)
|
(10.4
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)
|
||||
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Other – net
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(3.3
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)
|
-
|
|||||
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Net cash used for investing activities
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(18.4
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)
|
(10.4
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)
|
||||
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Cash flows from financing activities:
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||||||||
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Net increase in debt
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4.5
|
14.2
|
||||||
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Other – net
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(0.8
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)
|
(2.2
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)
|
||||
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Net cash provided by financing activities
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3.7
|
12.0
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||||||
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Effect of exchange rate changes on cash
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(0.2
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)
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(2.6
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)
|
||||
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Net increase in cash, cash equivalents and restricted cash
|
26.8
|
13.5
|
||||||
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Cash, cash equivalents and restricted cash - beginning of period
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67.2
|
45.4
|
||||||
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Cash, cash equivalents and restricted cash - end of period
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$
|
94.0
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$
|
58.9
|
||||
6
Modine Manufacturing Company
Segment operating results (unaudited)
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(In millions)
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||||||||
|
|
||||||||
|
|
Three months ended June 30,
|
|||||||
|
|
2023
|
2022
|
||||||
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Net sales:
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||||||||
|
Climate Solutions
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$
|
271.8
|
$
|
244.4
|
||||
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Performance Technologies
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358.9
|
304.3
|
||||||
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Segment total
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630.7
|
548.7
|
||||||
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Corporate and eliminations
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(8.3
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)
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(7.7
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)
|
||||
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Net sales
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$
|
622.4
|
$
|
541.0
|
||||
|
|
Three months ended June 30,
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|||||||||||||||
|
|
2023
|
2022
|
||||||||||||||
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Gross profit:
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$'s
|
% of sales
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$'s
|
% of sales
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||||||||||||
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Climate Solutions
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$
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69.0
|
25.4
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%
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$
|
50.4
|
20.6
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%
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||||||||
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Performance Technologies
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58.6
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16.3
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%
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33.0
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10.8
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%
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||||||||||
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Segment total
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127.6
|
20.2
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%
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83.4
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15.2
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%
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||||||||||
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Corporate and eliminations
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0.3
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-
|
-
|
-
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||||||||||||
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Gross profit
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$
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127.9
|
20.6
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%
|
$
|
83.4
|
15.4
|
%
|
||||||||
|
|
Three months ended June 30,
|
|||||||
|
|
2023
|
2022
|
||||||
|
Operating income:
|
||||||||
|
Climate Solutions
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$
|
44.3
|
$
|
27.0
|
||||
|
Performance Technologies
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32.0
|
7.4
|
||||||
|
Segment total
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76.3
|
34.4
|
||||||
|
Corporate and eliminations
|
(9.8
|
)
|
(8.8
|
)
|
||||
|
Operating income
|
$
|
66.5
|
$
|
25.6
|
||||
7
Modine Manufacturing Company
Adjusted financial results (unaudited)
|
(In millions, except per share amounts)
|
||||||||
|
|
||||||||
|
|
Three months ended June 30,
|
|||||||
|
|
2023
|
2022
|
||||||
|
Net earnings
|
$
|
45.3
|
$
|
14.3
|
||||
|
Interest expense
|
5.9
|
4.1
|
||||||
|
Provision for income taxes
|
14.7
|
4.9
|
||||||
|
Depreciation and amortization expense
|
13.7
|
13.9
|
||||||
|
Other expense – net
|
0.6
|
2.3
|
||||||
|
Restructuring expenses (a)
|
-
|
1.5
|
||||||
|
Environmental charges (b)
|
0.2
|
1.2
|
||||||
|
Adjusted EBITDA
|
$
|
80.4
|
$
|
42.2
|
||||
|
|
||||||||
|
Net earnings per share attributable to Modine shareholders - diluted
|
$
|
0.85
|
$
|
0.27
|
||||
|
Restructuring expenses (a)
|
-
|
0.03
|
||||||
|
Environmental charges (b)
|
-
|
0.02
|
||||||
|
Adjusted earnings per share
|
$
|
0.85
|
$
|
0.32
|
||||
|
(a)
|
The fiscal 2023 restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions. There was no tax benefit
associated with the restructuring expenses.
|
|
(b)
|
Environmental charges, including related legal costs, are recorded as SG&A expenses at Corporate and relate to a previously-owned U.S. manufacturing
facility.
|
Segment adjusted financial results (unaudited)
|
(In millions)
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
Three months ended June 30, 2023
|
Three months ended June 30, 2022
|
||||||||||||||||||||||||||||||
|
|
Climate Solutions
|
Performance Technologies
|
Corporate and
eliminations
|
Total
|
Climate Solutions
|
Performance Technologies
|
Corporate and
eliminations
|
Total
|
||||||||||||||||||||||||
|
Operating income
|
$
|
44.3
|
$
|
32.0
|
$
|
(9.8
|
)
|
$
|
66.5
|
$
|
27.0
|
$
|
7.4
|
$
|
(8.8
|
)
|
$
|
25.6
|
||||||||||||||
|
Depreciation and amortization expense
|
5.4
|
8.1
|
0.2
|
13.7
|
5.4
|
8.2
|
0.3
|
13.9
|
||||||||||||||||||||||||
|
Restructuring expenses (a)
|
-
|
-
|
-
|
-
|
-
|
1.5
|
-
|
1.5
|
||||||||||||||||||||||||
|
Environmental charges (a)
|
-
|
-
|
0.2
|
0.2
|
-
|
-
|
1.2
|
1.2
|
||||||||||||||||||||||||
|
Adjusted EBITDA
|
$
|
49.7
|
$
|
40.1
|
$
|
(9.4
|
)
|
$
|
80.4
|
$
|
32.4
|
$
|
17.1
|
$
|
(7.3
|
)
|
$
|
42.2
|
||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Net sales
|
$
|
271.8
|
$
|
358.9
|
$
|
(8.3
|
)
|
$
|
622.4
|
$
|
244.4
|
$
|
304.3
|
$
|
(7.7
|
)
|
$
|
541.0
|
||||||||||||||
|
Adjusted EBITDA margin
|
18.3
|
%
|
11.2
|
%
|
12.9
|
%
|
13.3
|
%
|
5.6
|
%
|
7.8
|
%
|
||||||||||||||||||||
|
(a)
|
See the adjusted EBITDA reconciliation above for information on restructuring expense and other adjustments.
|
8
|
Net debt (unaudited)
|
||||||||
|
(In millions)
|
||||||||
|
June 30, 2023
|
March 31, 2023
|
|||||||
|
Debt due within one year
|
$
|
27.7
|
$
|
23.4
|
||||
|
Long-term debt
|
330.0
|
329.3
|
||||||
|
Total debt
|
357.7
|
352.7
|
||||||
|
Less: cash and cash equivalents
|
92.5
|
67.1
|
||||||
|
Net debt
|
$
|
265.2
|
$
|
285.6
|
||||
|
|
||||||||
Free cash flow (unaudited)
|
(In millions)
|
||||||||
|
|
||||||||
|
|
Three months ended June 30,
|
|||||||
|
|
2023
|
2022
|
||||||
|
Net cash provided by operating activities
|
$
|
41.7
|
$
|
14.5
|
||||
|
Expenditures for property, plant and equipment
|
(15.1
|
)
|
(10.4
|
)
|
||||
|
Free cash flow
|
$
|
26.6
|
$
|
4.1
|
||||
|
|
||||||||
SOURCE: Modine
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com
9