Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q4 2020 Earnings Presentation
16 slides from Modine Manufacturing's earnings presentation, May 29, 2020
Slide 1: Fourth Quarter Fiscal 2020
Fourth Quarter Fiscal 2020 May 29, 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: COVID-19 Response
COVID-19 Response • Focused on protecting Modine employees, customers and shareholders – Amended credit agreement to proactively provide covenant flexibility – Implemented numerous processes to protect people and facilities – Temporarily reduced employee and executive salaries by 10 to 20 percent an
Slide 4: Q4 Highlights
Q4 Highlights • Q4 earnings exceeded expectations, despite early COVID-19 impacts • Q4 sales down 15 percent from the prior year; full year FY2020 sales down 11 percent – Ongoing weakness in VTS end markets – Lower data center sales in CIS segment – Strong performance by Building HVAC segment • Q4 a
Slide 5: BHVAC Summary
BHVAC Summary Net Sales Operating Income Sales by End Market -2% +49% 1% $8.8 22% Commercial HVAC&R +6% $52.5 $51.2 $5.9 Data Center -5% 77% 11.2% 17.2% Other Q4 19 Q4 20 Q4 19 Q4 20 (in millions) Sales by Product Sales by Region +7% 18% Heating +5% -12% 38% Air Conditioning -10% $29 15% $23 Ventila
Slide 6: CIS Summary
CIS Summary Net Sales Adjusted Operating Income Sales by End Market -15% -40% 8% $14.2 $178.5 Commercial HVAC&R -13% 18% $8.5 Data Center -25% $150.9 8.0% 5.6% 74% Industrial (Power & Other) -13% Q4 19 Q4 20 Q4 19 Q4 20 (in millions) Sales by Product Sales by Region -23% 8% -14% Coils +2% 24% Cooler
Slide 7: VTS Summary
VTS Summary Net Sales Adjusted Operating Income Sales by End Market -18% -43% 8% $340.0 Automotive -10% $19.9 23% $279.5 42% Commercial Vehicle -25% $11.4 Off-Highway -18% 5.9% 4.1% 27% Other Q4 19 Q4 20 Q4 19 Q4 20 (in millions) Sales by Product Sales by Region -13% 5% -21% Power Train Cooling -23%
Slide 8: Income Statement Metrics
Income Statement Metrics • Sales decreased $83.8M or 15% due to revenue declines in (In millions) Q4 2020 Q4 2019 VTS and CIS Net Sales $472.9 $556.7 – Both segments impacted by weakening end markets and negative COVID-19 impacts Gross Profit 74.9 91.6 – CIS impacted by lower sales to large data cen
Slide 9: Cash Flow & Net Debt
Cash Flow & Net Debt • Full-year free cash flow down on lower earnings and (In millions) Q4 YTD 2020 Q4 YTD 2019 significant expenses related to the automotive separation Operating cash flow $57.9 $103.3 – Strategic investments in the automotive exit largely complete – These actions enabled the crea
Slide 10: Fiscal 2021 Outlook
Fiscal 2021 Outlook • Anticipating that most markets will be down in FY21, CIS and HVAC Q1 FY2021 FY2021 with some recovery later in the fiscal year Commercial Vent & AC -10% to -20% 0% to -10% – Anticipating that 1Q21 will be the hardest quarter in terms of Heating 0% to -10% 0% to -10% earnings an
Slide 11: Appendix
Appendix
Slide 12: Q4 GAAP Income Statement
Q4 GAAP Income Statement (In millions, except per share amounts) Q4 Q4 Better 2020 2019 (Worse) Net sales $ 472.9 $ 556.7 $ (83.8) Cost of sales 398.0 465.1 67.1 Gross profit 74.9 91.6 (16.7) Selling, general & administrative expenses 55.2 64.2 9.0 Restructuring expenses 5.5 8.9 3.4 Impairment charg
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) During fiscal 2020 and 2019, the Company recorded $39.2 million and $7.1 million, respectiv ely , of costs at Corporate directly associated with its rev iew of strategic alternativ es for the Vehicular Thermal Solutions ("VTS") segment's automotiv e business, including c
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Segment adjusted operating income and margin (In millions) Three months ended March 31, Vehicular Thermal Solutions 2020 2019 Operating (loss) income $ (1.4) $ 9.7 Restructuring expenses (a) 4.7 8.9 (a) Impairment charge 8.0 - Environmental charges (a) 0.1 1.3 Adjusted opera
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted tax rate (In millions) Three months ended March 31, 2020 2019 (Loss) earnings before income taxes $ (2.3) $ 10.6 (a) Restructuring expenses 5.5 8.9 Impairment charge (a) 8.6 - (a) Automotive separation and strategy costs 5.0 5.9 (a) Environmental charges 0.1 1.3 Adj
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free cash flow (In millions) Three months ended March 31, Twelve months ended March 31, 2020 2019 2020 2019 Net cash provided by operating activities $ 12.0 $ 35.9 $ 57.9 $ 103.3 Expenditures for property, plant and equipment (13.1) (15.2) (71.3) (73.9) Free cash flow $ (1.1
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