Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q4 2024 Earnings Presentation
19 slides from Modine Manufacturing's earnings presentation, May 22, 2024
Slide 1: Fourth Quarter Fiscal 2024
Fourth Quarter Fiscal 2024 May 22, 2024
Slide 2: Presenters
NEIL BRINKER President and Chief Executive Officer MICK LUCARELI Executive Vice President and Chief Financial Officer KATHY POWERS Vice President, Treasurer, and Investor Relations
Slide 3: 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,” “projects,” and other similar “forward-looking” stat
Slide 4: Opening Comments
Opening Comments ▪ Strong fourth quarter performance closed out another record year ▪ Full year sales increased 5% to $2.4 billion and adjusted EBITDA increased 48% to $314 million ▪ Earnings growth driven by shifting business mix to targeted markets with strong growth drivers ▪ Completed strategic
Slide 5: Climate Solutions
Climate Solutions ▪ Outstanding year, adjusted EBITDA increased 31% on a 4% sales increase ▪ Data Center sales increased 69% to $294 million ▪ Scott Springfield acquisition ▪ Acquired two facilities, one dedicated to data center products, the other supporting custom air handling units for other end
Slide 6: Performance Technologies
Performance Technologies ▪ Fantastic year, adjusted EBITDA increased 67% on a 5% sales increase ▪ Advancing 80/20 throughout the organization, from commercial activities to the factory floor ▪ Improved sales mix by focusing resources on strategic product lines and de- emphasizing lower margin busine
Slide 7: Climate Solutions
Climate Solutions 40% Data Centers (In millions) Net Sales ▪ Growth driven by hyperscale and colocation market $263.0 $264.5 demand plus acquisition 1% HVAC&R ▪ Increase in IAQ product sales related to acquisitions along with a slight increase in the Heating market -20% Heat Transfer Products ▪ Lowe
Slide 8: Performance Technologies
Performance Technologies (In millions) 15% Advanced Solutions Net Sales ▪ Growth driven by EVantage product sales and other $364.1 electric vehicles, along with higher coatings sales $344.4 -13% Liquid-Cooled Applications ▪ Mainly driven by German divestitures and market softness in Europe and Asia
Slide 9: Financial Review
Financial Review (In millions) Net Sales Adjusted EBITDA & (In millions) Q4 FY24 Q4 FY23 EBITDA Margin* $78.8 Net Sales $603.5 $618.1 $618.1 $603.5 $65.5 Gross Profit 135.3 112.2 13.1% % of net sales 22.4% 18.2% 10.6% SG&A expenses 75.6 60.9 % of net sales 12.5% 9.9% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24
Slide 10: Cash Flow and Metrics
Cash Flow and Metrics Cash Flow and Metrics Free Cash Flow $127 million Net Debt (as of March 31) $372 million Leverage Ratio (as of March 31) 1.2x Capital Expenditures $88 million Modine Maintains Strong Balance Sheet & Liquidity ▪ Free cash flow improved $70M over the prior year; negative ($4M) du
Slide 11: Fiscal 2025 Outlook
Fiscal 2025 Outlook Metrics Guidance Comments FY25 Modine Global Sales Outlook Net Sales +5% to +10% $2.50B to $2.65B Climate Solutions Adjusted EBITDA* $365M to $385M +16% to +22% Data Centers +60% – 70% Adjusted EPS* $3.55 to $3.85 +9% to +18% HVAC & Refrigeration +20% – 25% Heat Transfer Products
Slide 12: Appendix
APPENDIX
Slide 13: GAAP Income Statement
GAAP Income Statement Modine Manufacturing Company Consolidated statements of operations (unaudited) (In millions, except per share amounts) Three months ended March 31, Twelve months ended March 31, 2024 2023 2024 2023 Net sales $ 603.5 $ 618.1 $ 2,407.8 $ 2,297.9 Cost of sales 468.2 505.9 1,882.2
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Adjusted financial results (unaudited) (In millions, except per share amounts) Three months ended March 31, Twelve months ended March 31, 2024 2023 2024 2023 Net earnings $ 26.1 $ 90.3 $ 163.4 $ 153.6 Interest expense 6.3 6.0 24.1 20.7 Provision (benefit) for income taxes 1
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions and equipment transfer costs. The restructuring expenses recorded during the fourth quarter of fiscal 2024 primarily relate to severance expenses associated w
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Segment adjusted financial results (unaudited) (In millions) Three months ended March 31, 2024 Three months ended March 31, 2023 Climate Performance Corporate and Climate Performance Corporate and Solutions Technologies eliminations Total Solutio
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Free cash flow (unaudited) (In millions) Three months ended March 31, Twelve months ended March 31, 2024 2023 2024 2023 Net cash provided by operating activities $ 39.6 $ 39.6 $ 214.6 $ 107.5 Expenditures for property, plant and equipment (43.9)
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Organic sales and organic sales growth (unaudited) (In millions) Three months ended March 31, 2024 Three months ended March 31, 2023 Effect of Sales External Exchange Rate Effect of Organic External Effect of Excluding Organic Sales Sales Changes
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations The Company’s fiscal 2025 guidance includes adjusted EBITDA and adjusted earnings per share, which are non-GAAP financial measures. The full-year fiscal 2025 guidance includes the Company’s estimates for interest expense of approximately $28 to $30 million, a provision for i
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