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Mar 31, 2021
Modine Q4 2021 Earnings Report
Modine reported fourth quarter and full year fiscal 2021 results.
Key Takeaways
Modine Manufacturing Company reported a 9 percent increase in net sales for the fourth quarter, reaching $514.9 million. The increase was driven by higher sales volume in the Building HVAC and Heavy Duty Equipment segments, with adjusted earnings per share of $0.51, up from $0.24 in the prior year. The company's performance was in line with expectations as markets continue to recover, with strong cash flow driven by disciplined cost controls and working capital management.
Net sales increased 9 percent from the prior year reaching $514.9 million.
Impairment charges of $32.4 million related to assets in the Automotive segment resulted in operating loss of $14.3 million and net loss per share of $0.29.
Adjusted EBITDA was $42.2 million, down $1.9 million from the prior year.
Adjusted earnings per share increased to $0.51, up from $0.24 in the prior year.
Modine
Modine
Modine Revenue by Segment
Revenue by Segment
Climate Solutions Revenue
CapyFin.comPerformance Technologies Revenue
CapyFin.com Forward Guidance
Modine anticipates good sales and earnings growth in fiscal 2022 as its markets continue to improve and as it strategically refocuses its business. Full fiscal year-over-year sales are expected to be up 12 to 18 percent, with Adjusted EBITDA of $170 million to $185 million.
Positive Outlook
- Anticipates good sales and earnings growth in fiscal 2022.
- Markets continue to improve.
- Strategically refocusing business.
- Capturing more of the school ventilation market.
- Expanding presence in data center cooling solutions.
Challenges Ahead
- Guidance includes the remaining portion of the Automotive segment.
- Includes the liquid-cooled business subject to the pending sale transaction.
- Business will be included in guidance until the sale has closed.
- Estimates of expenses and gains for fiscal 2022 are not available due to the low visibility and unpredictability of these items.
- The full-year fiscal 2022 guidance for Adjusted EBITDA is based upon the Company’s estimates for interest expense of approximately $14 to $15 million, a provision for income taxes of approximately $22 to $26 million, and depreciation and amortization expense of approximately $55 to $60 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income