NYSE$MOD

Modine Manufacturing Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported improved margins, earnings, and cash flow due to better market conditions and cost reductions.

Modine Manufacturing Company reported second quarter fiscal 2021 results with net sales of $461.4 million, operating income of $28.5 million, and net earnings of $8.9 million. The company saw improvements in margins, earnings, and cash flow due to improving market conditions and cost reduction measures. They also reached an agreement to sell the majority of their automotive business to Dana Incorporated.

  • Net sales decreased 8 percent from the prior year to $461.4 million.
  • Operating income increased to $28.5 million, up $22.5 million year-over-year, and net earnings increased to $8.9 million, up $13.7 million year-over-year.
  • Adjusted EBITDA increased 40 percent from the prior year to $55.4 million, driven by a 240 basis point improvement in gross margin and lower SG&A expenses.
  • Earnings per share was $0.17, and adjusted earnings per share was $0.43.

Headline financials

Total Revenue

$461M

Previous: $500M-7.8%
EPS (adj)

$0.43

Previous: $0.13+230.8%
SG&A Expenses

$50.8M

Previous: $67.4M-24.6%
Adjusted EBITDA

$55.4M

Previous: $39.6M+39.9%
Capital Expenditures

-$14.6M

Previous: -$41.4M+64.7%
Free Cash Flow

$72.7M

Previous: -$23.9M+404.2%
Net Income

$8.6M

Previous: -$4.7M+283.0%
Operating Income

$28.5M

Previous: $6M+375.0%
Gross Profit

$80.8M

Previous: $75.7M+6.7%
Cash & Equivalents

$62.5M

Previous: $32.3M+93.5%
Total Assets

$1.51B

Previous: $1.56B-3.4%
Stock-Based Comp

$1.4M

Previous: $2.7M-48.1%

Revenue & EPS history

Modine · Revenue · Quarterly

$461M

Q2 2021-7.8%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Modine · $960M total across 2 segments · Q4 2026

  • Climate Solutions
    $666M
  • Performance Technologies
    $294M

Forward guidance

Based on strong second quarter results, the company provided its outlook for the full fiscal year, expecting sequential revenue improvement in the third and fourth quarters.

Tailwinds

  • Expect sequential revenue improvement in the third and fourth quarters.
  • Anticipate some cost increases in the second half of the fiscal year.
  • Expect full fiscal year-over-year sales down 7 to 12 percent.
  • Project adjusted EBITDA of $155 million to $165 million.
  • Seeing slow but steady recovery in most end markets and geographies.

Headwinds

  • Sales and earnings outlook remains highly uncertain.
  • Expect some cost increases related to higher metals prices.
  • Expect some cost increases related to employee compensation expense.
  • Reversing some of the temporary cost control measures taken earlier in the year.
  • Impact of COVID-19 pandemic on the national and global economy

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.8%

Avg return

Earnings day

+4.9%

Avg return

5 days after

+6.5%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+41.1%

Q2 2021

Best reaction

-39.9%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+2.9%+10.1%-6.1%
Q2 2026-4.3%-5.6%+0.1%
Q1 2026+18.7%+23.7%+19.8%
Q4 2025-11.4%-14.9%-8.4%
Q3 2025+7.3%+0.3%-18.0%
Q2 2025-7.8%-14.8%+1.8%
Q1 2025+15.0%-3.4%+13.3%
Q4 2024-5.5%+1.3%-8.3%
Q3 2024+4.7%+6.9%+35.9%
Q2 2024+2.2%+3.1%+31.1%
Q1 2024+13.6%+16.1%+28.6%
Q4 2023+18.3%+32.9%+53.0%
Q3 2023-5.1%-1.0%+11.1%
Q2 2023+3.7%+14.0%+16.7%
Q1 2023+9.8%+18.3%+11.8%
Q4 2022+26.6%+31.4%+29.6%
Q3 2022+14.2%+8.2%-0.3%
Q2 2022-0.7%-0.2%-4.8%
Q1 2022-17.2%-15.5%-26.9%
Q4 2021+0.9%+8.4%+1.0%
Q3 2021+2.7%+7.4%+11.5%
Q2 2021+41.1%+51.8%+77.7%
Q1 2021+19.6%+20.7%+18.7%
Q4 2020-1.7%+0.6%-9.0%
Q3 2020+23.8%+9.8%-14.0%
Q2 2020-39.9%-34.5%-39.3%
Q1 2020-26.4%-21.4%-26.9%
Q4 2019+3.5%+8.0%+5.0%
Q3 2019+9.0%+6.7%+7.4%
Q2 2019+11.2%+17.5%+12.9%
Q1 2019+0.3%+1.4%-3.4%
Q4 2018+4.9%-2.2%+3.3%
Q3 2018+0.4%+4.7%-4.1%
Q2 2018+10.4%+13.8%+10.9%
Q1 2018+3.1%+5.8%-0.6%
Q4 2017+20.9%+19.7%+27.6%
Q3 2017-10.0%-13.0%-14.5%
Q2 2017-12.3%-15.1%+21.0%
Q1 2017-0.7%+2.7%+14.6%
Q4 2016-2.6%-6.8%-18.5%
Q3 2016+16.3%
Q2 2016+1.7%
Q1 2016-2.2%
Q4 2015-6.5%
Q3 2015-0.4%
Q2 2015+3.1%
Q1 2015-2.6%
Q4 2014-3.4%
Q3 2014+11.1%
Q2 2014+1.9%
Q1 2014+25.6%
Q4 2013+8.5%
Q3 2013+2.0%
Q2 2013+0.1%
Q1 2013+0.3%
Q4 2010+6.4%
Q4 2012-11.6%
Q3 2012+1.1%
Q3 2011+1.1%
Q2 2012+5.1%
Q4 2011-5.7%
Q1 2011-5.7%
Q1 2012-5.7%
Q2 2011-5.7%

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