Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q1 2024 Earnings Presentation
18 slides from Modine Manufacturing's earnings presentation, Aug 3, 2023
Slide 1: First Quarter Fiscal 2024
First Quarter Fiscal 2024 August 3, 2023
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: Outstanding Quarter, Record Revenues
Outstanding Quarter, Record Revenues ▪ Sales up 15%, Adjusted EBITDA up 91% to $80.4 million, Adjusted EBITDA margin of 12.9% ▪ Completed acquisition of Napps Technology, Jetson brand in early July ▪ Small chiller range complements Modine’s indoor air quality product line ▪ In line with growth strat
Slide 5: Climate Solutions
Climate Solutions ▪ Revenue up 11% and Adjusted EBITDA margin of 18.3% ▪ Data center sales of $68 million, more than double prior year ▪ Raising outlook to growth of 60-70% this fiscal year ▪ Expect global data center revenue of over $270 million ▪ Strong backlog and pipeline including both colocati
Slide 6: Performance Technologies
Performance Technologies ▪ Revenue up 18% and Adjusted EBITDA margin of 11.2% ▪ Top and bottom line benefiting from improving commercial terms ▪ Recapturing margin lost to inflation over past several years ▪ Winning incremental business in targeted markets with accretive margins ▪ Benefiting from ea
Slide 7: Climate Solutions
Climate Solutions 124% Data Centers (In millions) Net Sales $271.8 ▪ Strong growth across customer base in NA, the UK and Western Europe, including US chiller production $244.4 -2% HVAC&R ▪ Mostly driven by lower heating sales due to market softness; offset by a strong quarter for IAQ sales -7% Heat
Slide 8: Performance Technologies
Performance Technologies 31% Advanced Solutions (In millions) Net Sales ▪ Higher sales for EV systems and components $358.9 21% Liquid-Cooled Applications $304.3 ▪ Strong demand from automotive, commercial vehicle and off-highway customers 13% Air-Cooled Applications ▪ Improved sales to off-highway
Slide 9: Financial Review
Financial Review (In millions) Net Sales Adjusted EBITDA & (In millions) Q1 FY24 Q1 FY23 EBITDA Margin* $622.4 $80.4 Net Sales $622.4 $541.0 $541.0 Gross Profit 127.9 83.4 12.9% $42.2 % of net sales 20.6% 15.4% 7.8% SG&A expenses 61.4 56.3 % of net sales 9.9% 10.4% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Op
Slide 10: Cash Flow and Metrics
Cash Flow and Metrics Cash Flow and Metrics Free Cash Flow $27 million Net Debt (as of June 30) $265 million Leverage Ratio (as of June 30) 1.1x Capital Expenditures $15 million Modine Maintains Strong Balance Sheet & Liquidity ▪ Strong free cash flow in the quarter; $27M, primarily due to higher ea
Slide 11: Fiscal 2024 Outlook
Fiscal 2024 Outlook Metrics Guidance Comments FY24 Modine Global Sales Outlook Net Sales +6% to +11% $2.4B to $2.6B Adjusted EBITDA* $280M to $295M +32% to +39% Climate Solutions1 Data Centers +60% – 70% Raising Revenue and Adjusted EBITDA Outlook After a Strong First Quarter HVAC & Refrigeration +2
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 June 30, 2023 2022 Net sales $ 622.4 $ 541.0 Cost of sales 494.5 457.6 Gross profit 127.9 83.4 Selling, general & administrative expenses 61
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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.
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Segment adjusted financial results (unaudited) (In millions) Three months ended June 30, 2023 Three months ended June 30, 2022 Climate Performance Corporate and Climate Performance Corporate and Solutions Technologies eliminations Total Solutions
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company 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 Net debt (unaudited) (
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations The Company’s fiscal 2024 guidance includes Adjusted EBITDA, 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 t
Slide 18: Climate Solutions Sales Recast
Climate Solutions Sales Recast Climate Solutions Recast net sales by product group (unaudited) (a) (In millions) Three months ended Twelve months ended June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 March 31, 2023 Product groups: Heat transfer $ 134.7 $ 126.3 $ 113.7 $ 122.0 $ 496
Modine Manufacturing Company — Q1 2024 Earnings Presentation on 6ix