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Jun 30, 2020
Modine Q1 2021 Earnings Report
Modine's financial performance declined due to the impact of the COVID-19 pandemic, but benefited from cost-saving actions.
Key Takeaways
Modine Manufacturing Company reported a decrease in net sales by 34% to $347.8 million compared to the prior year, largely due to the impact of the COVID-19 pandemic. The company experienced an operating loss of $3.2 million and a net loss of $8.4 million. However, cash flow improved significantly year-over-year, with $12.3 million in cash flow from operating activities and $3.2 million in free cash flow.
Net sales decreased 34 percent year-over-year to $347.8 million due to COVID-19 impacts.
Operating loss was $3.2 million and net loss was $8.4 million.
Adjusted EBITDA was $20.5 million.
Free cash flow was $3.2 million, showing significant year-over-year improvement.
Modine
Modine
Forward Guidance
Modine expects that the first quarter sales will serve as the trough of their quarterly performance this year and expects to see incremental revenue and earnings improvements each quarter throughout fiscal 2021.
Positive Outlook
- Strong financial position
- Disciplined approach to cost management
- Global teams remain in frequent communication with customers
- Growing more confident in short-term customer order book
- Expect to see incremental revenue and earnings improvements each quarter throughout fiscal 2021
Challenges Ahead
- Medium- and long-term outlooks remain highly unpredictable
- Impact of the COVID-19 pandemic on the national and global economy
- Overall health and price-down focus of Modine’s customers
- Ability to successfully exit the automotive business
- Volatility and negative impacts to the financial markets resulting from COVID-19