Modine Manufacturing (MOD) Tops Q4 EPS by 24c, Revenues Beat

Modine Manufacturing (NYSE: MOD) reported Q4 EPS of $0.51, $0.24 better than the analyst estimate of $0.27. Revenue for the quarter came in at $514.9 million versus the consensus estimate of $493.03 million.

Fourth Quarter Highlights:

• Net sales of $514.9 million increased 9 percent from the prior year
• 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 of $42.2 million, down $1.9 million from the prior year
• Adjusted earnings per share of $0.51, up $0.27 from $0.24 in the prior year

"Our fiscal fourth quarter performance was in line with expectations as our markets continue to recover," said Modine President and Chief Executive Officer, Neil D. Brinker. "The Building HVAC segment delivered another impressive quarter with significant increases in heating and data center sales. This, along with market-driven improvements in our Heavy Duty Equipment segment, resulted in solid top-line performance. Our disciplined cost controls and working capital management helped to drive strong cash flow this year, which greatly improved our financial flexibility. Overall, we are pleased with our fiscal 2021 results given the impact of the pandemic and the numerous challenges faced this year. We expect our markets to continue to improve and to carry this positive momentum into fiscal 2022."

Outlook

"We anticipate good sales and earnings growth in fiscal 2022 as our markets continue to improve and as we strategically refocus our business," concluded Brinker. "We have a number of strategic priorities this year, including capturing more of the school ventilation market, expanding our presence in data center cooling solutions and continuing development with our electric truck and bus customers. We recently completed the sale of the Austrian automotive business and are continuing to work though the regulatory process for the sale of the liquid-cooled business."

Based on current exchange rates and market outlook, Modine provides the following guidance ranges for fiscal 2022:

• Full fiscal year-over-year sales up 12 to 18 percent;
• Adjusted EBITDA of $170 million to $185 million.

The guidance ranges include the remaining portion of the Automotive segment, including the liquid-cooled business subject to the pending sale transaction. This business will be included in guidance until the sale has closed.

For earnings history and earnings-related data on Modine Manufacturing (MOD) click here.

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