Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q1 2021 Earnings Presentation
17 slides from Modine Manufacturing's earnings presentation, Aug 9, 2020
Slide 1: First Quarter Fiscal 2021
First Quarter Fiscal 2021 August 5, 2020 8:00 am CDT
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as “believes,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” and other similar “forward-looking” statements, as d
Slide 3: Business Update
Business Update • Strong cash flow; revenue and earnings in line with expectations • Operations update – All plants open since late May, but most running at reduced capacity – All locations following strict health and safety protocols – Consolidating CIS manufacturing operations in China – Tightly c
Slide 4: CIS Summary
CIS Summary Net Sales Adjusted EBITDA Market Outlook FY2021 $15.1 $168.8 Commercial HVAC&R -10% to -20% $8.6 Data Centers 0% and above $122.5 8.9% 7.0% Industrial 0% to -10% Q1 20 Q1 21 Q1 20 Q1 21 (in millions) * Year over year market estimates Q1 Revenue Swing • Decrease in sales due to COVID rela
Slide 5: BHVAC Summary
BHVAC Summary Net Sales Adjusted EBITDA Market Outlook $7.9 FY2021 $49.0 Ventilation & AC 0% to -10% $47.6 $6.1 Data Centers 0% and above 12.4% 16.6% Heating 0% to -10% Q1 20 Q1 21 Q1 20 Q1 21 (in millions) * Year over year market estimates Q1 Revenue Swing • Strong earnings improvement on improved
Slide 6: HDE Summary
HDE Summary Net Sales Adjusted EBITDA Market Outlook FY2021 $216.4 Medium/Heavy Truck -20% to -30% $24.2 Bus/Specialty Vehicle -20% to -30% $5.5 $123.5 Agriculture -10% to -20% 11.2% 4.5% Q1 20 Q1 21 Q1 20 Q1 21 Construction -10% to -20% (in millions) * Year over year market estimates Q1 Revenue Swi
Slide 7: AUTO Summary
AUTO Summary Net Sales Adjusted EBITDA Region Outlook FY2021 $113.6 $6.5 North America -10% to -20% $62.1 Europe -10% to -20% $1.4 5.7% 2.3% Asia 0% and above Q1 20 Q1 21 Q1 20 Q1 21 (in millions) * Year over year market estimates Q1 Revenue Swing • Segment margins and cash flow remain challenged; (
Slide 8: Financial Information
Financial Information (In millions) Q1 2021 Q1 2020 (in millions) Adjusted EBITDA Net Sales $347.8 $529.0 Gross Profit 46.1 83.4 % of net sales 13.3% 15.8% SG&A expenses 44.7 63.5 % of net sales 12.9% 12.0% Adjusted Op Income* 1.9 28.4 % of net sales 0.5% 5.4% • Sales declined $181.2M or 34% primari
Slide 9: Cash Flow & Net Debt
Cash Flow & Net Debt (In millions) Q1 2021 • Positive free cash flow and $23 million better than the prior year Operating cash flow $12.3 – Lower spending on automotive exit strategy – Good working capital management Capital expenditures (9.1) – Lower capital spending Free cash flow $3.2 • Net debt
Slide 10: Fiscal 2021 Outlook
Fiscal 2021 Outlook • Based on the uncertainty surrounding the current global economic environment, we are not issuing guidance for fiscal 2021 at this time • Planning for difficult market conditions, especially in vehicular markets, throughout FY21 with slow recovery in second half of fiscal year –
Slide 11: Appendix
Appendix
Slide 12: Q1 GAAP Income Statement
Q1 GAAP Income Statement (In millions, except per share amounts) Q1 Q1 2021 2020 Change Net sales $ 347.8 $ 529.0 $ (181.2) Cost of sales 301.7 445.6 (143.9) Gross profit 46.1 83.4 (37.3) Selling, general & administrative expenses 44.7 63.5 (18.8) Restructuring expenses 4.6 1.8 2.8 Operating (loss)
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted financial results (In millions, except per share amounts) Three months ended June 30, 2020 2019 Net (loss) earnings $ (8.4) $ 8.2 Interest expense 5.4 5.9 (Benefit) provision for income taxes (0.2) 2.9 Depreciation and amortization expense 18.6 18.9 Other expense -
Slide 14: Non-GAAP Reconciliations: Adjusted operating income
Non-GAAP Reconciliations Adjusted operating income (In millions) Three months ended June 30, 2020 2019 Operating (loss) income $ (3.2) $ 18.1 Restructuring expenses (a) 4.6 1.8 Automotive separation and strategy costs (a) 0.5 8.4 (a) Environmental charges - 0.1 Adjusted operating income $ 1.9 $ 28.4
Slide 15: Non-GAAP Reconciliations: Segment adjusted EBITDA
Non-GAAP Reconciliations Segment adjusted EBITDA and margin (In millions) Three months ended June 30, Three months ended June 30, Building HVAC Systems 2021 2020 Commercial and Industrial Solutions 2021 2020 Operating income $ 7.1 $ 5.3 Operating income $ - $ 9.0 Depreciation and amortization expens
Slide 16: Non-GAAP Reconciliations: Adjusted tax rate
Non-GAAP Reconciliations Adjusted tax rate (In millions) Three months ended June 30, 2021 2020 (Loss) earnings before income taxes $ (8.6) $ 11.1 (a) Restructuring expenses 4.6 1.8 Automotive separation and strategy costs (a) 0.5 8.4 Environmental charges (a) - 0.1 Adjusted (loss) earnings before in
Slide 17: Non-GAAP Reconciliations: Free cash flow
Non-GAAP Reconciliations Free cash flow and adjusted free cash flow (In millions) Three months ended June 30, 2020 2019 Net cash provided by operating activities $ 12.3 $ 0.5 Expenditures for property, plant and equipment (9.1) (20.3) Free cash flow $ 3.2 $ (19.8) Payments for restructuring activiti
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