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Dec 31, 2019

Modine Q3 2020 Earnings Report

Modine's third quarter fiscal 2020 results were reported, with adjusted EPS guidance raised due to a lower expected tax rate and continued progress on automotive separation and exit.

Key Takeaways

Modine Manufacturing Company reported a decrease in net sales by 12% to $473.4 million compared to the prior year, driven by market-related volume declines in the VTS segment and lower data center and refrigeration sales in the CIS segment. Earnings per share was $0.02, while adjusted earnings per share was $0.37. The company raised its adjusted EPS guidance range for fiscal 2020 due to a lower expected tax rate and confirmed sales and adjusted operating income guidance.

Net sales decreased 12 percent from the prior year to $473.4 million.

Operating income declined to $8.2 million, with adjusted operating income at $24.0 million.

Earnings per share was $0.02, and adjusted earnings per share was $0.37.

Adjusted EPS guidance range for fiscal 2020 was raised due to lower expected tax rate, while sales and adjusted operating income guidance were confirmed.

Total Revenue
$473M
Previous year: $541M
-12.5%
EPS
$0.37
Previous year: $0.42
-11.9%
Gross Profit
$73.5M
Previous year: $91.7M
-19.8%
Cash and Equivalents
$36.2M
Previous year: $30.7M
+17.9%
Free Cash Flow
$11.6M
Previous year: $9.9M
+17.2%
Total Assets
$1.54B
Previous year: $1.51B
+1.5%

Modine

Modine

Forward Guidance

Modine provided its updated forecasted outlook for fiscal 2020, which remains inclusive of the automotive business in its VTS segment, with full year year-over-year sales down 7 to 12 percent; adjusted operating income of $85 million to $95 million; and adjusted earnings per share of $0.85 to $1.00.