美國
證券交易委員會
華盛頓，D.C. 20549
表格
截至2024年6月30日季度結束
或
過渡期間為從＿＿＿＿＿至＿＿＿＿＿
委員會文件編號
（依憑章程所載的完整登記名稱）
| ||
(成立地或組織其他管轄區) | （聯邦稅號） | |
(總部辦公地址) | （郵政編碼） |
註冊人的電話號碼，包括區號 (
根據法案第12(b)條註冊的證券：
每種類別的名稱 |
| 交易標的（s） |
| 每個註冊交易所的名稱 |
標記勾選符號，表示登記人：(1)在上述 12 個月期間 (或登記人須提交此類報告的較短期間) 已提交Securities Exchange Act 1934年第13或15(d)條的所有應提交報告；(2)在過去 90 天內已受到此類提交要求。
標記勾選符號，表示登記人已在過去 12 個月 (或登記人須提交此類文件的較短期間) 使用Rule 405 RegS-T (本章第232.405節)向交易所提交了每一份交互式資料文件。
請以勾選表示，公司是否為大型快速申報者、加速申報者、非加速申報者、較小的報告公司或新興成長公司。請參閱《交易法》第2條2條對「大型快速申報者」、「加速申報者」、「較小的報告公司」和「新興成長公司」的定義。
| 加速歸檔人 ☐ | ||
非加速檔案者 ☐ | 較小的報告公司 | ||
新興成長公司 |
如果一家新興成長型企業，請勾選“是”表示註冊人選擇不使用根據證券交易所法第13(a)條所提供的任何新的或修改後的財務會計準則的延長過渡期來遵守。 ☐
在Check Mark中指示註冊公司是否為空殼公司（根據交易所法規第120億2條的定義）。
是
摩丁製造普通股$0.625面值的流通股份數，
第一部分 財務信息
項目1：財務報表。
摩丁製造公司
綜合損益表
截至2024年9月30日和2023年的三個和六個月
（以百萬爲單位，每股數據除外）
(未經審計)
截至2023年9月30日的三個月 | 截至9月30日的六個月 | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
淨銷售額 | $ | | $ | | $ | | $ | | ||||
銷售成本 |
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毛利潤 |
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銷售，總務及管理費用 |
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重組費用 |
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營業利潤 |
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利息支出 |
| ( |
| ( |
| ( |
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其他（支出）收入 - 淨額 |
| ( |
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| ( |
| ( | ||||
所得稅前利潤 |
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所得稅費用 |
| ( |
| ( |
| ( |
| ( | ||||
淨收益 |
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歸屬於非控股利益的淨收益 |
| ( |
| ( |
| ( |
| ( | ||||
歸屬於摩丁的淨收益 | $ | | $ | | $ | | $ | | ||||
歸屬於摩丁股東的每股淨收益: |
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基本 | $ | | $ | | $ | | $ | | ||||
稀釋的 | $ | | $ | | $ | | $ | | ||||
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基本 |
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稀釋的 |
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簡明彙編財務報表的附註是這些報表的組成部分。
1
摩丁製造公司
綜合收益綜合表
截至2024年9月30日和2023年的三個和六個月
（以百萬計）
(未經審計)
截至2023年9月30日的三個月 | 截至9月30日的六個月 | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
淨收益 | $ | | $ | | $ | | $ | | ||||
其他全面收益（損失），淨額，扣除所得稅： |
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外幣翻譯 |
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| ( |
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Defined benefit plans, net of income taxes of $ |
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經營性套期工具，扣除所得稅後 $ |
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| ( |
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其他綜合收益（損失）總額 |
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| ( |
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| ( | ||||
綜合收益 |
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歸屬於非控股股東的綜合收益 |
| ( |
| ( |
| ( |
| ( | ||||
歸屬於摩丁的綜合收益 | $ | | $ | | $ | | $ | | ||||
簡明彙編財務報表的附註是這些報表的組成部分。
2
摩丁製造公司
基本報表
2024年9月30日和2024年3月31日
（以百萬爲單位，每股數據除外）
(未經審計)
2024年9月30日 |
| 2024年3月31日 | ||||
資產 |
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現金及現金等價物 | $ | | $ | | ||
交易應收賬款 - 淨額 |
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存貨 |
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其他資產 |
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總流動資產 |
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產業、工廠和設備淨值 |
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無形資產淨值 |
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商譽 |
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延遲所得稅 |
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其他非流動資產 |
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總資產 | $ | | $ | | ||
負債及股東權益 |
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短期債務 | $ | | $ | | ||
流動負債--長期債務 |
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應付賬款 |
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應計的薪酬和員工福利費用 |
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其他流動負債 |
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流動負債合計 |
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長期債務 |
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延遲所得稅 |
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養老金 |
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其他非流動負債 |
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負債合計 |
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承諾和或有事項（見注18） |
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股東權益： |
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優先股，$ |
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普通股，$ |
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額外實收資本 |
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保留盈餘 |
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累計其他綜合損失 |
| ( |
| ( | ||
截至2024年3月31日和2023年12月31日，公司的庫藏股票分別有2,279,784股和2,693,653股。 |
| ( |
| ( | ||
摩丁製造股東權益總額 |
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非控股權益 |
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股東權益總計 |
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負債和所有者權益總額 | $ | | $ | | ||
簡明彙編財務報表的附註是這些報表的組成部分。
3
摩丁製造公司
現金流量表簡明綜合報表
截至2024年9月30日和2023年的前六個月
（以百萬計）
(未經審計)
截至9月30日的六個月 | ||||||
| 2024 |
| 2023 | |||
經營活動現金流量： |
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淨收益 | $ | | $ | | ||
調整以按應計利息法計算的淨收益至經營性現金流量的調整項： |
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折舊和攤銷 |
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股票補償費用 |
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延遲所得稅 |
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Amortization |
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經營性資產和負債變動: |
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交易應收款項 |
| ( |
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存貨 |
| ( |
| ( | ||
應付賬款 |
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| ( | ||
其他資產和負債 | ( | | ||||
經營活動產生的現金流量淨額 |
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投資活動現金流量： |
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物業、廠房及設備支出 |
| ( |
| ( | ||
業務收購的付款 |
| ( |
| ( | ||
資產處置收益 |
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Amortization |
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| ( | ||
投資活動產生的淨現金流出 |
| ( |
| ( | ||
籌集資金的現金流量： |
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債務借款 |
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還款債務 |
| ( |
| ( | ||
銀行透支額度的償還 - 淨額 |
| ( |
| ( | ||
購買公司股票 |
| ( |
| ( | ||
支付給非控股利息的股息 |
| ( |
| ( | ||
Amortization |
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籌集淨現金流量 |
| ( |
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匯率變動對現金的影響 |
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現金，現金等價物和受限制現金的淨增加額 |
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期初的現金、現金等價物和受限制的現金 |
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現金、現金等價物和受限制資金-期末餘額 | $ | | $ | | ||
簡明彙編財務報表的附註是這些報表的組成部分。
4
摩丁製造公司
股東權益合併報表
截至2024年9月30日的三個月和六個月
(以百萬計)
(未經審計)
累計 |
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額外的 | 其他 | 國庫 | 非- |
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| 普通股 | 實繳 | 保留 | 綜合 | stock, at | 控股 |
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| 股份 |
| 金額 |
| 資本 |
| 收益 |
| 損失 |
| 成本 |
| 利息 |
| 總計 | ||||||||
2024年3月31日的餘額 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | |||||||
淨收益 |
| — |
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其他綜合損失 |
| — |
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期權和獎勵 |
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購買庫存 |
| — |
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| ( |
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基於股票的薪酬費用 |
| — |
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支付給非控股利息的股息 |
| — |
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| ( |
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2024年6月30日的餘額 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | |||||||
淨收益 |
| — |
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其他綜合收益 |
| — |
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期權和獎勵 |
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購買庫存 |
| — |
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| ( |
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基於股票的薪酬費用 |
| — |
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2024年9月30日餘額 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | |||||||
簡明彙編財務報表的附註是這些報表的組成部分。
5
摩丁製造公司
股東權益合併報表
截至2023年9月30日的三個月和六個月
(以百萬計)
(未經審計)
累計 | |||||||||||||||||||||||
額外的 | 其他 | 財政部 | 非- | ||||||||||||||||||||
普通股票 | 實收 | 保留 | 綜合 | stock, at | controlling | ||||||||||||||||||
| 股份 |
| 金額 |
| 資本 |
| 收益 |
| 損失 |
| 成本 |
| 利息 |
| 總計 | ||||||||
2023年3月31日的餘額爲 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | |||||||
淨收益 |
| — |
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其他綜合損失 |
| — |
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| ( |
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期權和獎勵 |
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購買庫存 |
| — |
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| ( |
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基於股票的薪酬費用 |
| — |
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支付給非控股利息的股息 |
| — |
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| ( |
| ( | |||||||
2023年6月期末資產負債表 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | |||||||
淨收益 |
| — |
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其他綜合損失 |
| — |
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期權和獎勵 |
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購買庫存 |
| — |
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| ( |
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基於股票的薪酬費用 |
| — |
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2023年9月30日餘額 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | |||||||
簡明彙編財務報表的附註是這些報表的組成部分。
6
注意1：一般
摩丁製造公司（「摩丁」或「公司」）的未經審計的簡明合併基本報表與美國普遍接受的會計原則（「GAAP」）一致，適用於臨時財務信息，並遵循10-Q表格和S-X規章第10-01條的指示。因此，它們不包括GAAP完整的基本報表所需的全面的財務狀況、經營成果和現金流的所有信息和附註。基本報表包括所有正常的經常性調整，管理層認爲這些調整對於臨時期間結果的公正表述是必要的。2025財政年度前六個月的結果不一定能指示全年預期的結果。基本報表包括所有正常的經常性調整，管理層認爲這些調整對於臨時期間結果的公正表述是必要的。本年度的基本報表應與摩丁製造公司截至2024年3月31日的10-K表格年報中的合併基本報表及相關說明一起閱讀。
供應商融資計劃
公司通過一家金融機構爲自願供應商融資計劃提供便利，使美國和歐洲的部分供應商可以請求提前支付發票，以折扣方式從金融機構獲取款項。公司或金融機構可以在
新的會計指導
部門報告披露
在11月2023年，財務會計準則委員會發布了關於可報告部門的新披露指導。新指導要求披露重要的部門費用，這些費用是 (i) 對部門重要，(ii) 定期提供給首席運營決策者（「CODM」），並且 (iii)包括在報告的部門利潤或虧損度量中。此外，新指導要求公司披露其CODM的職稱和職位，並擴大中期披露，以包括大多數年度部門披露。可報告部門的定義和確定方法沒有變化。新的披露要求將在公司2025財政年的基本報表中生效。公司正在評估新的披露，但預計該指導對其合併基本報表不會產生重大影響。
7
附註2：收購和處置
收購斯科特斯普林菲爾德製造股份有限公司
2024年3月1日，公司收購了斯科特斯普林菲爾德製造公司（「斯科特斯普林菲爾德製造」）發行和未發行股份的全部股份，總計對價爲$
Based in Calgary, Canada, Scott Springfield Manufacturing is a leading manufacturer of air handling units to customers in the data center, telecommunications, healthcare, and aerospace markets. This acquisition expanded the Company’s product offerings and customer base in the high-growth data center and indoor air quality markets in the U.S. and Canada. Since the date of the acquisition, the Company has reported the financial results of the Scott Springfield Manufacturing business within the Climate Solutions segment. For the three and six months ended September 30, 2024, the Company included $
The Company has completed the purchase price allocation for its acquisition of Scott Springfield Manufacturing. During the first quarter of fiscal 2025, the Company completed its market and trade name analyses and recorded a measurement period adjustment to reduce the fair value of the trade name intangible asset by $
公司對收購Scott Springfield Manufacturing的購買價格分配如下：
現金及現金等價物 |
| $ | |
交易應收款項 |
| | |
存貨 |
| | |
資產：固定資產 |
| | |
無形資產 |
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商譽 |
| | |
其他 |
| | |
應付賬款 |
| ( | |
應計的薪酬和員工福利費用 |
| ( | |
延遲所得稅 |
| ( | |
其他負債 |
| ( | |
購買價格 | $ | |
以下未經審計的補充資料以形式上的方式呈現了公司合併經營業績數據，假設斯科特斯普林菲爾德製造公司在2023財年初被收購。這份形式上的財務信息僅供參考，不代表若收購在指定日期完成後將實現的經營業績或未來可能獲得的經營結果。
| 三個月的結束時間 |
| 六個月截至 4月30日 | |||
| 2023年9月30日 |
| 2023年9月30日 | |||
淨銷售額 | $ | | $ | | ||
Net earnings attributable to Modine |
| |
| | ||
8
上述補充預計財務信息基於公司的歷史業績和斯科特·斯普林菲爾德製造公司的歷史業績，這些業績是使用歷史平均外匯匯率從加元折算成美元的。預計信息包括對以下各項的調整：i) 攤銷和折舊費用的總額約爲 $
收購納普斯科技公司
2023年7月1日，公司收購了總部位於德克薩斯州的空氣和水冷製冷機、冷凝機組和熱泵製造商納普斯科技公司（「Napps」）的幾乎所有淨運營資產，對價總額爲美元
德國汽車業務的處置
2023 年 10 月，該公司出售了
9
注意 3: 營業收入確認
營收分解
下表展示了公司各個業務板塊的營業收入。每個板塊的營業收入按產品組、按地理位置和基於營業收入確認的時間進行分解。
自2024年4月1日起，公司將其塗料業務從績效技術部門移至氣候解決方案部門管理。請參見注釋20以獲取其他部門的基本報表信息。下表中呈現的2024財年的分解營業收入信息已重新編排，與2025財年的展示相比較。
2024年9月30日結束的三個月 | 2023年9月30日結束的三個月 | |||||||||||||||||
| 氣候 |
| 表現 |
| 板塊 |
| 氣候 |
| 表現 |
| 板塊 | |||||||
解決方案 | Technologies | 總計 | 解決方案 | Technologies | 總計 | |||||||||||||
產品組： |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
idc概念冷卻 | $ | | $ | — | $ | | $ | | $ | — | $ | | ||||||
熱傳遞 |
| |
| — |
| |
| |
| — |
| | ||||||
暖通空調與製冷 |
| |
| — |
| |
| |
| — |
| | ||||||
空氣冷卻 |
| — |
| |
| |
| — |
| |
| | ||||||
液冷 |
| — |
| |
| |
| — |
| |
| | ||||||
愛文思控股解決方案 |
| — |
| |
| |
| — |
| |
| | ||||||
部門內銷售額 |
| — |
| |
| |
| — |
| |
| | ||||||
淨銷售額 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
地理位置： |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
美洲 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
歐洲 |
| |
| |
| |
| |
| |
| | ||||||
亞洲 |
| |
| |
| |
| |
| |
| | ||||||
淨銷售額 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
營業收入確認時間： |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
在一定時間點轉移的產品 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
隨着時間推移轉移的產品 |
| |
| |
| |
| |
| |
| | ||||||
淨銷售額 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
10
2024年9月30日結束的六個月 | 2023年9月30日結束的六個月 | |||||||||||||||||
| 氣候 |
| 表現 |
| 板塊 |
| 氣候 |
| 表現 |
| 板塊 | |||||||
解決方案 | Technologies | 總計 | 解決方案 | Technologies | 總計 | |||||||||||||
產品組: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
idc概念製冷 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
熱傳遞 |
| |
| |
| |
| |
| |
| | ||||||
HVAC&R |
| |
| |
| |
| |
| |
| | ||||||
空冷 |
| |
| |
| |
| |
| |
| | ||||||
Liquid-cooled |
| |
| |
| |
| |
| |
| | ||||||
愛文思控股解決方案 |
| |
| |
| |
| |
| |
| | ||||||
部門內銷售額 |
| |
| |
| |
| |
| |
| | ||||||
淨銷售額 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
地理位置： |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
美洲 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
歐洲 |
| |
| |
| |
| |
| |
| | ||||||
亞洲 |
| |
| |
| |
| |
| |
| | ||||||
淨銷售額 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
營業收入確認時間： |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
在一定時間點轉移的產品 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
Products transferred over time |
| |
| |
| |
| |
| |
| | ||||||
淨銷售額 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
合同餘額
與客戶簽訂的合同中的合同資產和合同負債如下：
| 2024年9月30日 |
| 2024年3月31日 | |||
合同資產 | $ | | $ | | ||
合同責任 |
| |
| | ||
合同資產，主要包括註冊資本結構中的其他流動資產，主要包括客戶擁有的工裝合同相關的資本化成本，客戶已擔保償還，以及註冊資本結構中已確認的隨時間分攤收入的資產，這些資產代表公司對完成的但尚未開具賬單的工作應收的權利。 $
合同負債，主要包括註冊資本結構中的其他流動負債，包括客戶合同中滿足履行義務之前收到的付款，包括數據中心冷卻產品和客戶的工裝合同。在2025財政年度前六個月，合同負債減少了xx百萬，主要是由於公司履行了要求預付款的合同的履行義務，這些合同與長期庫存交貨時間有很大關係。 $
11
註釋 4：公允價值計量
公允價值被定義爲在市場參與者之間的有序交易中，資產或負債在主要或最有利的市場中，能夠獲得的資產價格或轉移負債所需支付的價格。公允價值計量分爲以下等級：
| ● | 級別 1 – 活躍市場中相同工具的報價價格。 |
| ● | 級別 2 – 活躍市場中類似工具的報價價格；在不活躍市場中相同或類似工具的報價價格；以及模型衍生的估值，其中所有重要輸入在活躍市場中均可觀察到。 |
| ● | 級別 3 – 模型衍生的估值，其中一個或多個重要輸入不可觀察。 |
在可用時，公司使用報價市場價格來判斷公允價值，並將此類測量歸類爲級別 1。在某些情況下，當市場價格不可用時，公司使用可觀察的基於市場的輸入來計算公允價值，此時測量歸類爲級別 2。如果報價或可觀察的市場價格不可用，公司基於估值模型判斷公允價值，該模型在可能的情況下使用如利率、收益率曲線或貨幣匯率等基於市場的數據。這些測量被分類爲級別 3。
由於這些工具的短期特性，現金、現金等價物、限制現金、貿易應收賬款、應付賬款和短期債務的賬面價值接近公允價值。公司的長期債務公允價值在附註 17 中披露。
附註 5：養老金
養老金成本包括以下元件：
截至2023年9月30日的三個月 | 截至9月30日的六個月 | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
服務成本 | $ | | $ | | $ | | $ | | ||||
利息成本 |
| |
| |
| |
| | ||||
計劃資產預期回報 |
| ( |
| ( |
| ( |
| ( | ||||
未認可淨損失的攤銷 |
| |
| |
| |
| | ||||
淨週期福利成本 | $ | | $ | | $ | | $ | | ||||
截至2024年9月30日的六個月期間，公司貢獻了$
在六月2024年，公司批准終止其美國養老金計劃，需經國稅局和養老金福利保障公司批准。公司打算向某些參與者提供選擇，在購買年金合同以轉移其在計劃下的剩餘義務之前，以一次性分配的形式接收他們的養老金福利。關於計劃終止，公司預計將在區間內額外現金注入 $
12
注6：股權激勵
公司的股權激勵計劃包括以下內容：(i) 針對高管和其他管理人員的長期激勵計劃（「LTIP」），授權授予股票獎勵、期權和基於業績的保留和績效獎勵，(ii) 針對其他管理層和關鍵員工的自願股權計劃，以及(iii) 針對非員工董事的股票獎勵。
公司根據授予時獎勵的公允價值計算補償費用，並隨後在股權獎勵的各自歸屬期間內按比例確認費用。公司確認的股權激勵費用爲 $
在2025財年的前六個月，公司的表現爲基礎的股票獎勵和限制股票獎勵。表現基礎股票獎勵的績效指標基於目標 -年平均投資資本現金流回報率和目標 -年平均增長淨收益（未計利息、稅項、折舊、攤銷及其他調整（「調整後的EBITDA」））截至2027年3月31日的績效期末。
截至2024年和2023年9月30日的六個月間授予的股權激勵獎勵的加權平均公允價值如下：
| 截至9月30日的六個月 | |||||||||
2024 | 2023 | |||||||||
公允價值 | 公允價值 | |||||||||
股份 |
| 每個獎勵 |
| 股份 |
| 每個獎勵 | ||||
績效股票獎勵 |
| | $ | |
| | $ | | ||
受限股票獎勵 |
| | $ | |
| | $ | | ||
截至2024年9月30日，未經確認的與尚未歸屬的股權激勵獎勵相關的補償費用將會在剩餘的服務期內確認，具體如下：
無法識別 | 加權平均 | ||||
補償 | 剩餘服務 | ||||
| 費用 |
| 年限 | ||
績效股獎勵 | $ | |
| ||
受限股票獎勵 |
| |
| ||
股票期權 |
| |
| ||
總計 | $ | |
| ||
註釋7：重組活動
在2025財年的前六個月，重組和重新定位費用主要是與績效技術部門記錄的遣散費用。這些遣散費用主要是在歐洲記錄的，包括與關閉技術服務中心和其他目標員工裁減相關的遣散費用。此外，作爲其在80/20原則支持下的轉型舉措的一部分，公司正在採取措施優化其供應鏈和製造業-半導體流程的效率，以提高氣候解決方案和績效技術部門的利潤率。這些重組活動包括在其設施之間轉移某些產品線的生產和倉儲。
13
在2024財年的頭六個月，重組和重新定位費用主要包括氣候解決方案和性能技術部門的設備轉移成本。
重組和重新定位費用如下：
| 截至2023年9月30日的三個月 |
| 截至9月30日的六個月 | |||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
其他費用 | $ | | $ | | $ | | $ | | ||||
其他重組和調整費用 |
| |
| |
| |
| | ||||
總計 | $ | | $ | | $ | | $ | | ||||
其他重組和重新定位費用主要包括與產品線轉移相關的成本。
公司根據其書面計劃、程序和相關法律要求計提遣散費。計提遣散費的變動如下：
| 截至2023年9月30日的三個月 | |||||
| 2024 |
| 2023 | |||
開始餘額 | $ | | $ | | ||
新增 |
| |
| | ||
支付 |
| ( |
| ( | ||
重新分類爲待售（a） | | ( | ||||
匯率變動的影響 |
| |
| ( | ||
結束餘額 | $ | | $ | | ||
| 截至9月30日的六個月 | |||||
| 2024 |
| 2023 | |||
開始餘額 | $ | | $ | | ||
新增 |
| |
| | ||
支付 |
| ( |
| ( | ||
重新分類爲待出售（a） | | ( | ||||
匯率變動的影響 |
| |
| ( | ||
結束餘額 | $ | | $ | | ||
____ | ||||||
| (a) | 公司將位於德國的三家業務的資產和負債在2023年9月30日的資產負債表上重新分類爲待售。這些業務隨後在2023年10月被出售。有關出售的更多信息，請參見第2條。 |
14
備註 8： 其他收入與支出
其他收入與支出包括以下內容：
| 截至2023年9月30日的三個月 |
| 截至9月30日的六個月 | |||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
利息收入 | $ | | $ | | $ | | $ | | ||||
外幣交易（a） |
| ( |
| ( |
| ( |
| ( | ||||
淨週期性福利成本 (b) |
| ( |
| ( |
| ( |
| ( | ||||
其他總費用-淨額 | $ | ( | $ | | $ | ( | $ | ( | ||||
____ | ||||||||||||
| (a) |
| (b) |
注9：所得稅
公司2024年9月30日和2023年同期三個月的實際稅率分別爲
公司根據其判斷對淨遞延稅資產設立減值準備，以便確定未來不太可能實現這些資產。每個季度，公司評估其遞延稅資產將會實現的概率，並決定是否需要設立減值準備或調整。這一決定涉及判斷和使用大量的估計和假設，包括對未來應納稅收入和稅務策略的預期。此外，公司考慮法定結轉期限和歷史財務結果的持續時間。
截至2024年9月30日，在美國和某些外國司法管轄區，遞延稅資產的減值準備總計爲$
中期報告的會計政策要求公司每個季度調整其有效稅率，以與其估計的年度有效稅率保持一致。根據這種方法，公司將其估計的年度所得稅率應用於截至當期的普通收益，以計算每個季度的所得稅負債。公司記錄特定重大、飛凡或罕見發生的項目的稅收影響，這些影響發生的時期。此外，公司將預計將在整個財政年度產生淨營運虧損的業務的影響排除在整體有效稅率計算之外，而是根據截至當期的結果進行離散記錄。公司預計在2025財政年度剩餘期間未識別的稅收利益不會發生重大變化。
15
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 10: Earnings Per Share
The components of basic and diluted earnings per share were as follows:
Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Net earnings attributable to Modine | $ | | $ | | $ | | $ | | ||||
Weighted-average shares outstanding – basic |
| |
| |
| |
| | ||||
Effect of dilutive securities |
| |
| |
| |
| | ||||
Weighted-average shares outstanding – diluted |
| |
| |
| |
| | ||||
Earnings per share: | ||||||||||||
Net earnings per share – basic | $ | | $ | | $ | | $ | | ||||
Net earnings per share – diluted | $ | | $ | | $ | | $ | | ||||
There were
Note 11: Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash consisted of the following:
| September 30, 2024 |
| March 31, 2024 | |||
Cash and cash equivalents | $ | | $ | | ||
Restricted cash |
| |
| | ||
Total cash, cash equivalents and restricted cash | $ | | $ | | ||
Restricted cash, which is reported within other current assets and other noncurrent assets in the consolidated balance sheets, consists primarily of deposits for contractual guarantees or commitments required for rents, import and export duties, and commercial agreements.
Note 12: Inventories
Inventories consisted of the following:
| September 30, 2024 |
| March 31, 2024 | |||
Raw materials | $ | | $ | | ||
Work in process |
| |
| | ||
Finished goods |
| |
| | ||
Total inventories | $ | | $ | | ||
16
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 13: Property, Plant and Equipment
Property, plant and equipment, including depreciable lives, consisted of the following:
| September 30, 2024 |
| March 31, 2024 | |||
Land | $ | | $ | | ||
Buildings and improvements ( |
| |
| | ||
Machinery and equipment ( |
| |
| | ||
Office equipment ( |
| |
| | ||
Construction in progress |
| |
| | ||
| |
| | |||
Less: accumulated depreciation |
| ( |
| ( | ||
Net property, plant and equipment | $ | | $ | | ||
Note 14: Goodwill and Intangible Assets
During the first quarter of fiscal 2025, the Company recorded a measurement period adjustment to reduce the fair value of the acquired Scott Springfield Manufacturing trade name by $
As a result of the segment realignment during the first quarter of fiscal 2025, the Company’s goodwill now resides entirely within the Climate Solutions segment. The following table presents a roll forward of the carrying value of goodwill from March 31, 2024 to September 30, 2024.
| Climate Solutions | ||
Goodwill, March 31, 2024 | $ | | |
Acquisition adjustment |
| | |
Effect of exchange rate changes |
| | |
Goodwill, September 30, 2024 | $ | | |
Intangible assets consisted of the following:
September 30, 2024 | March 31, 2024 | |||||||||||||||||
| Gross |
|
| Net |
| Gross |
|
|
| Net | ||||||||
Carrying | Accumulated | Intangible | Carrying | Accumulated | Intangible | |||||||||||||
Value | Amortization | Assets | Value | Amortization | Assets | |||||||||||||
Customer relationships | $ | | $ | ( | $ | | $ | | $ | ( | $ | | ||||||
Trade names |
| |
| ( |
| |
| |
| ( |
| | ||||||
Acquired technology |
| |
| ( |
| |
| |
| ( |
| | ||||||
Total intangible assets | $ | | $ | ( | $ | | $ | | $ | ( | $ | | ||||||
The Company recorded amortization expense of $
17
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 15: Product Warranties
Changes in accrued warranty costs were as follows:
Three months ended September 30, | ||||||
| 2024 |
| 2023 | |||
Beginning balance | $ | | $ | | ||
Warranties recorded at time of sale |
| |
| | ||
Adjustments to pre-existing warranties |
| ( |
| | ||
Settlements |
| ( |
| ( | ||
Reclassified as held for sale (a) | — | ( | ||||
Effect of exchange rate changes |
| |
| ( | ||
Ending balance | $ | | $ | | ||
Six months ended September 30, | ||||||
| 2024 |
| 2023 | |||
Beginning balance | $ | | $ | | ||
Warranties recorded at time of sale |
| |
| | ||
Adjustments to pre-existing warranties |
| ( |
| | ||
Settlements |
| ( |
| ( | ||
Reclassified as held for sale (a) | — | ( | ||||
Effect of exchange rate changes |
| |
| ( | ||
Ending balance | $ | | $ | | ||
____ | ||||||
| (a) |
18
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 16: Leases
Lease assets and liabilities
The following table provides a summary of leases recorded on the consolidated balance sheets.
| Balance Sheet Location |
| September 30, 2024 |
| March 31, 2024 | |||
Lease Assets |
|
|
|
|
|
| ||
Operating lease ROU assets |
| $ | | $ | | |||
Finance lease ROU assets (a) |
|
| |
| | |||
Lease Liabilities |
|
|
|
|
|
| ||
Operating lease liabilities |
| $ | | $ | | |||
Operating lease liabilities |
|
| |
| | |||
Finance lease liabilities |
|
| |
| | |||
Finance lease liabilities |
|
| |
| | |||
____ | ||||||||
| (a) |
The increases in operating lease ROU assets and liabilities from March 31, 2024 to September 30, 2024 primarily resulted from the commencement of a
Components of lease expense
The components of lease expense were as follows:
Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Operating lease expense (a) | $ | | $ | | $ | | $ | | ||||
Finance lease expense: |
|
|
|
|
|
|
|
| ||||
Depreciation of ROU assets |
| |
| |
| |
| | ||||
Interest on lease liabilities |
| |
| |
| |
| | ||||
Total lease expense | $ | | $ | | $ | | $ | | ||||
____ | ||||||||||||
| (a) |
During July 2024, the Company signed a operating lease of a manufacturing facility with future lease payments totaling approximately $
19
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 17: Indebtedness
Long-term debt consisted of the following:
| Fiscal year |
|
| ||||||
of maturity | September 30, 2024 | March 31, 2024 | |||||||
Term loans |
| $ | | $ | | ||||
|
| |
| | |||||
Revolving credit facility |
|
| |
| | ||||
|
| |
| | |||||
Finance lease obligations |
| |
| | |||||
| |
| | ||||||
Less: current portion |
| ( |
| ( | |||||
Less: unamortized debt issuance costs |
| ( |
| ( | |||||
Total long-term debt | $ | | $ | | |||||
Long-term debt, including the current portion of long-term debt, matures as follows:
Fiscal Year |
|
| |
Remainder of 2025 | $ | | |
2026 |
| | |
2027 |
| | |
2028 |
| | |
2029 |
| | |
2030 & beyond | | ||
Total | $ | |
The Company maintains a credit agreement with a syndicate of banks that provides for a multi-currency $
Based upon the terms of the credit agreement, the Company classifies borrowings under its revolving credit and swingline facilities as long-term and short-term debt, respectively, on its consolidated balance sheets. At September 30, 2024, the Company’s borrowings under its revolving credit and swingline facilities totaled $
The Company also maintains credit agreements for its foreign subsidiaries. The outstanding short-term borrowings related to these foreign credit agreements totaled $
20
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Indebtedness under the Company’s credit agreement and Senior Note agreements is secured by liens on substantially all domestic assets. These agreements further require compliance with various covenants that may limit the Company’s ability to incur additional indebtedness; grant liens; make investments, loans, or guarantees; engage in certain transactions with affiliates; and make restricted payments, including dividends. In addition, the agreements may require prepayment in the event of certain asset sales.
Financial covenants within its credit agreements include a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a portion of its cash balances, both as defined by the credit agreements, to no more than times consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”). The Company must also maintain a ratio of Adjusted EBITDA of at least
The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. As of September 30, 2024 and March 31, 2024, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of $
Note 18: Risks, Uncertainties, Contingencies and Litigation
Environmental
The Company has recorded environmental monitoring and remediation accruals related to manufacturing facilities in the U.S., one of which the Company currently owns and operates, and at its former manufacturing facility in the Netherlands. These accruals primarily relate to soil and groundwater contamination at facilities where past operations followed practices and procedures that were considered acceptable under then-existing regulations, or where the Company is a successor to the obligations of prior owners, and current laws and regulations require investigative and/or remedial work to ensure sufficient environmental compliance. In instances where a range of loss can be reasonably estimated for a probable environmental liability, but no amount within the range is a better estimate than any other amount, the Company accrues the minimum of the range. The Company’s accruals for environmental matters totaled $
Other litigation
In the normal course of business, the Company and its subsidiaries are named as defendants in various lawsuits and enforcement proceedings by private parties, governmental agencies and/or others in which claims are asserted against Modine. The Company believes that any additional loss in excess of amounts already accrued would not have a material effect on the Company’s consolidated balance sheet, results of operations, and cash flows. In addition, management expects that the liabilities which may ultimately result from such lawsuits or proceedings, if any, would not have a material adverse effect on the Company’s financial position.
21
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 19: Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss were as follows:
Three months ended September 30, 2024 | Six months ended September 30, 2024 | |||||||||||||||||||||||
| Foreign |
|
|
|
| Foreign |
|
|
| |||||||||||||||
Currency | Defined | Cash Flow |
| Currency | Defined | Cash Flow |
| |||||||||||||||||
Translation | Benefit Plans | Hedges | Total | Translation | Benefit Plans | Hedges | Total | |||||||||||||||||
Beginning balance |
| $ | ( |
| $ | ( |
| $ | |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | |
| $ | ( |
Other comprehensive income before reclassifications |
| |
| |
| |
| |
| |
| |
| |
| | ||||||||
Reclassifications: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Amortization of unrecognized net loss (a) |
| — |
| |
| — |
| |
| — |
| |
| — |
| | ||||||||
Realized gains - net (b) |
| — |
| — |
| ( |
| ( |
| — |
| — |
| ( |
| ( | ||||||||
Income taxes |
| |
| ( |
| ( |
| ( |
| |
| ( |
| ( |
| ( | ||||||||
Total other comprehensive income |
| |
| |
| |
| |
| |
| |
| |
| | ||||||||
Ending balance | $ | ( | $ | ( | $ | | $ | ( | $ | ( | $ | ( | $ | | $ | ( | ||||||||
Three months ended September 30, 2023 | Six months ended September 30, 2023 | |||||||||||||||||||||||
Foreign | Foreign | |||||||||||||||||||||||
Currency | Defined | Cash Flow |
| Currency | Defined | Cash Flow |
| |||||||||||||||||
| Translation |
| Benefit Plans |
| Hedges |
| Total |
| Translation |
| Benefit Plans |
| Hedges |
| Total | |||||||||
Beginning balance | $ | ( | $ | ( | $ | | $ | ( | $ | ( | $ | ( | $ | | $ | ( | ||||||||
Other comprehensive income (loss) before reclassifications |
| ( |
| |
| |
| ( |
| ( |
| |
| ( |
| ( | ||||||||
Reclassifications: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Amortization of unrecognized net loss (a) |
| — |
| |
| — |
| |
| — |
| |
| — |
| | ||||||||
Realized gains - net (b) |
| — |
| — |
| ( |
| ( |
| — |
| — |
| ( |
| ( | ||||||||
Income taxes |
| |
| ( |
| |
| ( |
| |
| ( |
| |
| ( | ||||||||
Total other comprehensive income (loss) |
| ( |
| |
| ( |
| ( |
| ( |
| |
| ( |
| ( | ||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||
____ | ||||||||||||||||||||||||
| (a) | Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 5 for additional information about the Company’s pension plans. |
| (b) | Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
22
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 20: Segment Information
Effective April 1, 2024, the Company moved its Coatings business, which was previously managed by and reported within the Performance Technologies segment, under the leadership of the Climate Solutions segment. Under this refined organizational structure, the Coatings business is better aligned with the Climate Solution’s Heat Transfer Products business, which serves similar heating, ventilating, air conditioning, and refrigeration markets and customers. The Company believes that unifying these complementary businesses is allowing it to better focus resources on targeted growth opportunities and more efficiently apply 80/20 principles to optimize profit margins and cash flow. Segment financial information for the prior periods has been recast to conform to the current presentation.
The following is a summary of net sales, gross profit and operating income by segment:
| Three months ended September 30, | |||||||||||||||||
2024 | 2023 | |||||||||||||||||
External | Inter-segment | External | Inter-segment | |||||||||||||||
Sales |
| Sales |
| Total |
| Sales |
| Sales |
| Total | ||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Climate Solutions | $ | | $ | — | $ | | $ | | $ | — | $ | | ||||||
Performance Technologies |
| |
| |
| |
| |
| |
| | ||||||
Segment total |
| |
| |
| |
| |
| |
| | ||||||
Corporate and eliminations |
| — |
| ( |
| ( |
| — |
| ( |
| ( | ||||||
Net sales | $ | | $ | — | $ | | $ | | $ | — | $ | | ||||||
| Six months ended September 30, | |||||||||||||||||
2024 | 2023 | |||||||||||||||||
External | Inter-segment | External | Inter-segment | |||||||||||||||
Sales |
| Sales |
| Total |
| Sales |
| Sales |
| Total | ||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Climate Solutions | $ | | $ | | $ | | $ | | $ | — | $ | | ||||||
Performance Technologies |
| |
| |
| |
| |
| |
| | ||||||
Segment total |
| |
| |
| |
| |
| |
| | ||||||
Corporate and eliminations |
| — |
| ( |
| ( |
| — |
| ( |
| ( | ||||||
Net sales | $ | | $ | — | $ | | $ | | $ | — | $ | | ||||||
| Three months ended September 30, |
|
| Six months ended September 30, | ||||||||||||||||||
| 2024 | 2023 |
|
| 2024 | 2023 |
| |||||||||||||||
% of | % of | % of | % of | |||||||||||||||||||
| $’s |
| sales |
| $’s |
| sales |
|
| $’s |
| sales |
| $’s |
| sales |
| |||||
Gross profit: | ||||||||||||||||||||||
Climate Solutions | $ | | | % | $ | | | % | $ | | | % | $ | | | % | ||||||
Performance Technologies |
| | | % |
| | | % |
| | | % |
| | | % | ||||||
Segment total |
| | % |
| | | % |
| | % |
| | | % | ||||||||
Corporate and eliminations |
| ( | |
| | |
| ( | |
| | | ||||||||||
Gross profit | $ | | % | $ | | | % | $ | | % | $ | | | % | ||||||||
23
MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Three months ended September 30, | Six months ended September 30, | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Operating income: | ||||||||||||
Climate Solutions | $ | | $ | | $ | | $ | | ||||
Performance Technologies |
| |
| |
| |
| | ||||
Segment total |
| |
| |
| |
| | ||||
Corporate and eliminations |
| ( |
| ( |
| ( |
| ( | ||||
Operating income | $ | | $ | | $ | | $ | | ||||
The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets:
| September 30, 2024 |
| March 31, 2024 | |||
Assets: |
|
| ||||
Climate Solutions | $ | | $ | | ||
Performance Technologies |
| |
| | ||
Other (a) |
| |
| | ||
Total assets | $ | | $ | | ||
____ | ||||||
| (a) | Represents cash and cash equivalents, other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate. |
24
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
When we use the terms “Modine,” “we,” “us,” the “Company,” or “our” in this report, we are referring to Modine Manufacturing Company. Our fiscal year ends on March 31 and, accordingly, all references to quarters refer to our fiscal quarters. The quarter ended September 30, 2024 was the second quarter of fiscal 2025.
Fiscal 2024 acquisitions and dispositions
On March 1, 2024, we acquired Scott Springfield Mfg. Inc. (“Scott Springfield Manufacturing”), a Canadian-based manufacturer of air handling units, for consideration totaling $184.1 million. On July 1, 2023, we acquired Napps Technology Corporation (“Napps”), a Texas-based manufacturer of air- and water-cooled chillers, condensing units and heat pumps, for consideration totaling $5.8 million. These acquisitions expanded our data center and indoor air quality product portfolios and support our growth strategy and mission of improving indoor air quality. We have reported the financial results of these businesses within the Climate Solutions segment since the acquisition dates.
In October 2023, we sold three automotive businesses based in Germany. The sale of these businesses, which produce air- and liquid-cooled products for internal combustion, diesel and gasoline engines for the European automotive market, supports our strategic prioritization of resources towards higher-margin technologies.
See Note 2 of the Notes to Consolidated Financial Statements for further information.
Second quarter highlights
Net sales in the second quarter of fiscal 2025 increased $37.5 million, or 6 percent, from the second quarter of fiscal 2024, primarily due to higher sales in our Climate Solutions segment, partially offset by lower sales in our Performance Technologies segment. The higher Climate Solutions segment sales included $53.4 million of incremental sales from the acquired Scott Springfield Manufacturing business. The lower Performance Technologies segment sales included a $21.9 million impact of the disposition of three automotive businesses in Germany during the third quarter of fiscal 2024. Cost of sales increased $7.0 million, or 1 percent. Gross profit increased $30.5 million and gross margin improved 340 basis points to 25.2 percent. Selling, general and administrative (“SG&A”) expenses increased $16.9 million and included higher compensation-related expenses and incremental expenses from Scott Springfield Manufacturing, including amortization expense for acquired intangible assets. Operating income of $75.3 million during the second quarter of fiscal 2025 increased $9.6 million from the prior year, primarily due to higher earnings in our operating segments, partially offset by higher SG&A and restructuring expenses.
Year-to-date highlights
Net sales in the first six months of fiscal 2025 increased $76.6 million, or 6 percent, from the same period last year, primarily due to higher sales in our Climate Solutions segment, partially offset by lower sales in our Performance Technologies segment. The higher Climate Solutions segment sales included $94.5 million of incremental sales from the acquired Scott Springfield Manufacturing and Napps businesses. The lower Performance Technologies segment sales were largely driven by the $46.2 million impact of the disposition of three automotive businesses in Germany during the third quarter of fiscal 2024. Cost of sales increased $11.4 million, or 1 percent, from the same period last year. Gross profit increased $65.2 million and gross margin improved 370 basis points to 24.9 percent. SG&A expenses increased $38.3 million and included higher compensation-related expenses and incremental expenses from Scott Springfield Manufacturing, including amortization expense for acquired intangible assets. Operating income of $149.7 million during the first six months of fiscal 2025 increased $17.5 million from the prior year, primarily due to higher earnings in our operating segments, partially offset by higher SG&A and restructuring expenses.
25
CONSOLIDATED RESULTS OF OPERATIONS
The following table presents our consolidated financial results on a comparative basis for the three and six months ended September 30, 2024 and 2023:
| Three months ended September 30, | Six months ended September 30, | ||||||||||||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| ||||||||||||||
(in millions) | $’s |
| % of sales | $’s |
| % of sales | $’s |
| % of sales | $’s |
| % of sales | ||||||||||
Net sales | $ | 658.0 |
| 100.0 | % | $ | 620.5 |
| 100.0 | % | $ | 1,319.5 |
| 100.0 | % | $ | 1,242.9 |
| 100.0 | % | ||
Cost of sales |
| 492.4 |
| 74.8 | % |
| 485.4 |
| 78.2 | % |
| 991.3 |
| 75.1 | % |
| 979.9 |
| 78.8 | % | ||
Gross profit |
| 165.6 |
| 25.2 | % |
| 135.1 |
| 21.8 | % |
| 328.2 |
| 24.9 | % |
| 263.0 |
| 21.2 | % | ||
Selling, general and administrative expenses |
| 85.8 |
| 13.0 | % |
| 68.9 |
| 11.1 | % |
| 168.6 |
| 12.8 | % |
| 130.3 |
| 10.5 | % | ||
Restructuring expenses |
| 4.5 |
| 0.7 | % |
| 0.5 |
| 0.1 | % |
| 9.9 |
| 0.8 | % |
| 0.5 |
| — | |||
Operating income |
| 75.3 |
| 11.4 | % |
| 65.7 |
| 10.6 | % |
| 149.7 |
| 11.3 | % |
| 132.2 |
| 10.6 | % | ||
Interest expense |
| (7.4) |
| (1.1) | % |
| (6.1) |
| (1.0) | % |
| (14.9) |
| (1.1) | % |
| (12.0) |
| (1.0) | % | ||
Other (expense) income – net |
| (1.5) |
| (0.2) | % |
| 0.1 |
| — |
| (1.8) |
| (0.1) | % |
| (0.5) |
| — | ||||
Earnings before income taxes |
| 66.4 |
| 10.1 | % |
| 59.7 |
| 9.6 | % |
| 133.0 |
| 10.1 | % |
| 119.7 |
| 9.6 | % | ||
Provision for income taxes |
| (20.0) |
| (3.0) | % |
| (12.8) |
| (2.1) | % |
| (38.8) |
| (2.9) | % |
| (27.5) |
| (2.2) | % | ||
Net earnings | $ | 46.4 |
| 7.1 | % | $ | 46.9 |
| 7.6 | % | $ | 94.2 |
| 7.1 | % | $ | 92.2 |
| 7.4 | % | ||
Comparison of the three months ended September 30, 2024 and 2023
Second quarter net sales of $658.0 million were $37.5 million, or 6 percent, higher than the second quarter of the prior year, primarily due to $77.2 million of higher sales in our Climate Solutions segment, driven by $53.4 million of incremental sales from the acquired Scott Springfield Manufacturing business and organic sales growth to hyperscale and colocation data center customers. The higher sales in Climate Solutions were partially offset by lower sales in our Performance Technologies segment, which decreased $39.8 million, including a $21.9 million impact from the disposition of three automotive businesses in Germany during the third quarter of fiscal 2024.
Second quarter cost of sales increased $7.0 million, or 1 percent, primarily due to higher labor and inflationary costs, higher sales volume, and higher raw material costs, which increased approximately $3.0 million, partially offset by improved operating efficiencies. As a percentage of sales, cost of sales decreased 340 basis points to 74.8 percent, primarily due to favorable sales mix, higher average selling prices, and the favorable impact of commercial pricing settlements and the recognition of sales tax credits in Brazil within the Climate Solutions and Performance Technologies segments, respectively.
As a result of higher sales and lower cost of sales as a percentage of sales, second quarter gross profit increased $30.5 million and gross margin improved 340 basis points to 25.2 percent.
Second quarter SG&A expenses increased $16.9 million, or 25 percent. As a percentage of sales, SG&A expenses increased by 190 basis points. The increase in SG&A expenses includes higher compensation-related expenses, which increased approximately $13.0 million and included incremental expenses from the acquired Scott Springfield Manufacturing business and increased incentive compensation resulting from improved financial results. In addition, SG&A expenses in the second quarter of fiscal 2025 included $4.7 million of incremental amortization expense for acquired intangible assets. These increases were partially offset by lower environmental charges related to previously-owned facilities in the U.S., which decreased $1.0 million.
Restructuring expenses increased $4.0 million compared with the second quarter of fiscal 2024, primarily due to higher severance expenses and product line transfer costs in the Performance Technologies and Climate Solutions segments, respectively.
Operating income of $75.3 million in the second quarter of fiscal 2025 increased $9.6 million compared with the second quarter of fiscal 2024, primarily due to higher gross profit, partially offset by higher SG&A and restructuring expenses.
26
Interest expense during the second quarter of fiscal 2025 increased $1.3 million compared with the second quarter of fiscal 2024, primarily due to higher borrowings on our revolving credit facility, which we used to fund a portion of the purchase price for the acquisition of Scott Springfield Manufacturing.
The provision for income taxes was $20.0 million and $12.8 million in the second quarter of fiscal 2025 and 2024, respectively. The $7.2 million increase was primarily due to higher earnings and changes in the mix and amount of foreign and U.S. earnings in the current year, as compared with the same period in the prior year. In addition, the provision for income taxes in the prior year was favorably impacted by the release of a $1.8 million unrecognized tax benefit during the second quarter of fiscal 2024.
Comparison of six months ended September 30, 2024 and 2023
Fiscal 2025 year-to-date net sales of $1,319.5 million were $76.6 million, or 6 percent, higher than the same period last year, primarily due to $147.8 million of higher sales in our Climate Solutions segment, including $94.5 million of incremental sales from the acquired Scott Springfield Manufacturing and Napps businesses, partially offset by $73.9 million of lower sales in our Performance Technologies segment, including a $46.2 million impact from the disposition of three automotive businesses in Germany during the third quarter of fiscal 2024. From a product group perspective, compared with the same period last year, sales of data center cooling products increased $174.5 million, while sales of liquid-cooled and heat transfer products decreased $58.0 million and $44.8 million, respectively.
Fiscal 2025 year-to-date cost of sales of $991.3 million increased $11.4 million, or 1 percent, primarily due to higher sales volume, higher labor and inflationary costs, partially offset by lower raw material costs, which decreased approximately $6.0 million, and improved operating efficiencies. In addition, we recorded $1.6 million of cost of sales at Corporate during the first quarter of fiscal 2025 related to an inventory purchase accounting adjustment for the acquisition of Scott Springfield Manufacturing. As a percentage of sales, cost of sales decreased 370 basis points to 75.1 percent, primarily due to favorable sales mix, higher average selling prices, improved operating efficiencies, and the favorable impact of commercial pricing settlements and the recognition of sales tax credits in Brazil within the Climate Solutions and Performance Technologies segments, respectively.
As a result of higher sales and lower cost of sales as a percentage of sales, gross profit increased $65.2 million and gross margin improved 370 basis points to 24.9 percent.
Fiscal 2025 year-to-date SG&A expenses increased $38.3 million, or 29 percent. As a percentage of sales, SG&A expenses increased by 230 basis points. The increase in SG&A expenses includes higher compensation-related expenses, which increased approximately $26.0 million and included incremental expenses from the acquired businesses and increased incentive compensation resulting from improved financial results. In addition, SG&A expenses in the first six months of fiscal 2025 included $9.3 million of incremental amortization expense for acquired intangible assets.
Restructuring expenses during the first six months of fiscal 2025 increased $9.4 million compared with the same period last year, primarily due to higher severance expenses and product line transfer costs in the Performance Technologies and Climate Solutions segments, respectively.
Operating income of $149.7 million in the first six months of fiscal 2025 increased $17.5 million compared with the same period last year, primarily due to higher gross profit, partially offset by higher SG&A and restructuring expenses.
Interest expense during the first six months of fiscal 2025 increased $2.9 million compared with the same period last year, primarily due to higher borrowings on our revolving credit facility, which we used to fund a portion of the purchase price for the acquisition of Scott Springfield Manufacturing.
The provision for income taxes was $38.8 million and $27.5 million during the first six months of fiscal 2025 and 2024, respectively. The $11.3 million increase was primarily due to higher earnings and changes in the mix and amount of foreign and U.S. earnings in the current year, as compared with the same period in the prior year. In addition, the provision for income taxes in the prior year was favorably impacted by the release of a $1.8 million unrecognized tax benefit during the second quarter of fiscal 2024.
27
SEGMENT RESULTS OF OPERATIONS
Effective April 1, 2024, we moved our Coatings business, which was previously managed by and reported within the Performance Technologies segment, under the leadership of the Climate Solutions segment. Under this refined organizational structure, the Coatings business is better aligned with the Climate Solution’s Heat Transfer Products business, which serves similar heating, ventilating, air conditioning, and refrigeration (“HVAC&R”) markets and customers. We believe that unifying these complementary businesses is allowing us to better focus resources on targeted growth opportunities and more efficiently apply 80/20 principles to optimize profit margins and cash flow. Segment financial information for fiscal 2024 has been recast to conform to the current presentation.
The following is a discussion of our segment results of operations for the three and six months ended September 30, 2024 and 2023:
Climate Solutions
| Three months ended September 30, |
| Six months ended September 30, | |||||||||||||||||||
| 2024 |
| 2023 |
|
| 2024 |
| 2023 |
| |||||||||||||
(in millions) | $’s |
| % of sales | $’s |
| % of sales | $’s |
| % of sales | $’s |
| % of sales | ||||||||||
Net sales | $ | 366.4 |
| 100.0 | % | $ | 289.2 |
| 100.0 | % | $ | 723.7 |
| 100.0 | % | $ | 575.9 |
| 100.0 | % | ||
Cost of sales |
| 260.1 |
| 71.0 | % |
| 212.3 |
| 73.4 | % |
| 516.6 |
| 71.4 | % |
| 423.2 |
| 73.5 | % | ||
Gross profit |
| 106.3 |
| 29.0 | % |
| 76.9 |
| 26.6 | % |
| 207.1 |
| 28.6 | % |
| 152.7 |
| 26.5 | % | ||
Selling, general and administrative expenses |
| 40.1 |
| 11.0 | % |
| 29.5 |
| 10.2 | % |
| 80.9 |
| 11.2 | % |
| 56.7 |
| 9.8 | % | ||
Restructuring expenses |
| 1.5 |
| 0.4 | % |
| 0.3 |
| 0.1 | % |
| 1.7 |
| 0.2 | % |
| 0.3 |
| 0.1 | % | ||
Operating income | $ | 64.7 |
| 17.6 | % | $ | 47.1 |
| 16.3 | % | $ | 124.5 |
| 17.2 | % | $ | 95.7 |
| 16.6 | % | ||
Comparison of the three months ended September 30, 2024 and 2023
Climate Solutions net sales increased $77.2 million, or 27 percent, from the second quarter of fiscal 2024 to the second quarter of fiscal 2025, primarily due to higher sales volume, and, to a lesser extent, higher average selling prices. The higher sales volume includes $53.4 million of incremental sales from the acquired Scott Springfield Manufacturing business. Compared with the second quarter of the prior year, sales of data center cooling and HVAC&R products increased $80.1 million and $12.9 million, respectively. The increase in sales of data center products includes sales from the acquired Scott Springfield Manufacturing business and organic sales growth to hyperscale and colocation customers. Sales of heat transfer products decreased $15.8 million. The decrease in heat transfer products largely resulted from lower sales of heat transfer coils for heat pumps and other commercial and residential applications, partially offset by commercial pricing settlements with heat pump customers in Europe.
Climate Solutions cost of sales increased $47.8 million, or 23 percent, from the second quarter of fiscal 2024 to the second quarter of fiscal 2025, primarily due to higher sales volume, higher raw material costs, which increased approximately $5.0 million, and, to a lesser extent, higher labor and inflationary costs. These increases were partially offset by lower warranty expense, which decreased approximately $3.0 million. As a percentage of sales, cost of sales decreased 240 basis points to 71.0 percent, primarily due to favorable sales mix and the favorable impact of the commercial pricing settlements during the quarter.
As a result of the higher sales and lower cost of sales as a percentage of sales, gross profit increased $29.4 million and gross margin improved 240 basis points to 29.0 percent.
Climate Solutions SG&A expenses increased $10.6 million compared with the second quarter of the prior year. As a percentage of sales, SG&A expenses increased by 80 basis points. The increase in SG&A expenses includes higher compensation-related expenses, which increased approximately $5.0 million and included expenses from the acquired Scott Springfield Manufacturing business, and $4.7 million of incremental amortization expense related to acquired intangible assets.
28
Restructuring expenses of $1.5 million during the second quarter of fiscal 2025 primarily consisted of costs related to transferring production and warehousing for certain product lines among the Climate Solutions segment’s facilities.
Operating income of $64.7 million increased $17.6 million from the second quarter of fiscal 2024 to the second quarter of fiscal 2025, primarily due to higher gross profit, partially offset by higher SG&A expenses.
Comparison of six months ended September 30, 2024 and 2023
Climate Solutions year-to-date net sales increased $147.8 million, or 26 percent, from the same period last year, primarily due to higher sales volume, including $94.5 million of incremental sales from the acquired Scott Springfield Manufacturing and Napps businesses. Compared with the same period in the prior year, sales of data center cooling and HVAC&R products increased $174.5 million and $18.0 million, respectively. The increase in sales of data center products includes sales from the acquired Scott Springfield Manufacturing business and organic sales growth to hyperscale and colocation customers. Sales of heat transfer products decreased $44.8 million, largely due to lower sales of heat transfer coils for heat pumps and other commercial and residential applications, partially offset by commercial pricing settlements with heat pump customers in Europe.
Climate Solutions year-to-date cost of sales increased $93.4 million, or 22 percent, from the same period last year, primarily due to higher sales volume, and, to a lesser extent, higher raw material costs, which increased approximately $3.0 million and higher labor and inflationary costs. These increases were partially offset by lower warranty expense, which decreased approximately $3.0 million, and improved operating efficiencies. As a percentage of sales, cost of sales decreased 210 basis points to 71.4 percent, primarily due to favorable sales mix and the favorable impact of the commercial pricing settlements during the second quarter.
As a result of the higher sales and lower cost of sales as a percentage of sales, gross profit increased $54.4 million and gross margin improved 210 basis points to 28.6 percent.
Climate Solutions year-to-date SG&A expenses increased $24.2 million and increased 140 basis points as a percentage of sales. The increase in SG&A expenses includes higher compensation-related expenses, which increased approximately $10.0 million, and $9.3 million of incremental amortization expense related to acquired intangibles assets.
Restructuring expenses during the first six months of fiscal 2025 increased $1.4 million compared with the same period last year, primarily due to higher costs related to transferring production and warehousing for certain product lines.
Operating income of $124.5 million during the first six months of fiscal 2025 increased $28.8 million from the same period last year, primarily due to higher gross profit, partially offset by higher SG&A expenses.
Performance Technologies
| Three months ended September 30, |
| Six months ended September 30, | |||||||||||||||||||
2024 |
| 2023 |
| 2024 |
| 2023 |
| |||||||||||||||
(in millions) | $’s |
| % of sales | $’s |
| % of sales | $’s |
| % of sales | $’s |
| % of sales | ||||||||||
Net sales | $ | 297.5 |
| 100.0 | % | $ | 337.3 |
| 100.0 | % | $ | 606.5 |
| 100.0 | % | $ | 680.4 |
| 100.0 | % | ||
Cost of sales |
| 237.4 |
| 79.8 | % |
| 279.7 |
| 82.9 | % |
| 482.9 |
| 79.6 | % |
| 570.9 |
| 83.9 | % | ||
Gross profit |
| 60.1 |
| 20.2 | % |
| 57.6 |
| 17.1 | % |
| 123.6 |
| 20.4 | % |
| 109.5 |
| 16.1 | % | ||
Selling, general and administrative expenses |
| 26.3 |
| 8.8 | % |
| 26.2 |
| 7.8 | % |
| 53.1 |
| 8.7 | % |
| 50.5 |
| 7.4 | % | ||
Restructuring expenses |
| 3.0 |
| 1.0 | % |
| 0.2 |
| 0.1 | % |
| 8.2 |
| 1.4 | % |
| 0.2 |
| — | |||
Operating income | $ | 30.8 |
| 10.4 | % | $ | 31.2 |
| 9.2 | % | $ | 62.3 |
| 10.3 | % | $ | 58.8 |
| 8.6 | % | ||
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Comparison of the three months ended September 30, 2024 and 2023
Performance Technologies net sales decreased $39.8 million, or 12 percent, from the second quarter of fiscal 2024 to the second quarter of fiscal 2025, primarily due to lower sales volume, including $21.9 million of lower sales from three automotive businesses in Germany that we sold during the third quarter of fiscal 2024. These decreases were partially offset by higher average selling prices and, to a lesser extent, the recognition of sales tax credits in Brazil. Compared with the second quarter of the prior year, sales of liquid-cooled and air-cooled products decreased $27.3 million and $18.1 million, respectively. Sales of advanced solutions products increased $5.7 million.
Performance Technologies cost of sales decreased $42.3 million, or 15 percent, from the second quarter of fiscal 2024 to the second quarter of fiscal 2025, primarily due to lower sales volume and, to a lesser extent, improved operating efficiencies and lower raw material costs, which decreased approximately $2.0 million. These favorable drivers were partially offset by higher labor and inflationary costs. As a percentage of sales, cost of sales decreased 310 basis points to 79.8 percent, primarily due to higher average selling prices, the favorable impact of the sales tax credits recognized in Brazil, and improved operating efficiencies.
As a result of the lower sales and lower cost of sales as a percentage of sales, gross profit increased $2.5 million and gross margin improved 310 basis points to 20.2 percent.
Performance Technologies SG&A expenses increased $0.1 million compared with the second quarter of the prior year. As a percentage of sales, SG&A expenses increased by 100 basis points. The increase in SG&A expenses was primarily due to higher compensation-related expenses, which increased approximately $2.0 million, partially offset by decreases across other general and administrative expenses.
Restructuring expenses increased $2.8 million compared with the second quarter of the prior year, primarily due to higher severance expenses in Europe.
Operating income of $30.8 million decreased $0.4 million from the second quarter of fiscal 2024 to the second quarter of fiscal 2025, primarily due to higher restructuring expenses, partially offset by higher gross profit.
Comparison of six months ended September 30, 2024 and 2023
Performance Technologies year-to-date net sales decreased $73.9 million, or 11 percent, from the same period last year, primarily due to lower sales volume, including $46.2 million of lower sales from three automotive businesses in Germany that we sold during the third quarter of fiscal 2024. These decreases were partially offset by higher average selling prices and, to a lesser extent, the recognition of sales tax credits in Brazil. Compared with the same period in the prior year, sales of liquid-cooled and air-cooled products decreased $58.0 million and $22.2 million, respectively. Sales of advanced solutions products increased $9.1 million.
Performance Technologies year-to-date cost of sales decreased $88.0 million, or 15 percent, from the same period last year, primarily due to lower sales volume and, to a lesser extent, improved operating efficiencies and lower raw material costs, which decreased approximately $9.0 million. These favorable drivers were partially offset by higher labor and inflationary costs. As a percentage of sales, cost of sales decreased 430 basis points to 79.6 percent, primarily due to higher average selling prices, improved operating efficiencies, lower material costs, and the favorable impact of the sales tax credits recognized in Brazil, partially offset by higher labor and inflationary costs.
As a result of the lower sales and lower cost of sales as a percentage of sales, gross profit increased $14.1 million and gross margin improved 430 basis points to 20.4 percent.
Performance Technologies year-to-date SG&A expenses increased $2.6 million, or 5 percent, compared with the same period last year. As a percentage of sales, year-to-date SG&A expenses increased by 130 basis points. The increase in SG&A expenses was primarily due to higher compensation-related expenses, which increased approximately $5.0 million. This increase was partially offset by decreases across other general and administrative expenses.
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與去年同期相比，2025財年前六個月的重組費用增加了800萬美元，這主要是由於歐洲的遣散費和產品線轉移成本的增加。
2025財年前六個月的營業收入爲6,230萬美元，比去年同期增加了350萬美元，這主要是由於毛利潤的增加，但部分被重組和銷售併購支出的增加所抵消。
流動性和資本資源
我們的主要流動性來源是來自經營活動的現金流，截至9月30日的現金和現金等價物，2024年爲7,860萬美元，循環信貸額度下的可用借款能力爲1.908億美元。鑑於我們廣泛的國際業務，我們的現金和現金等價物中約有7,400萬美元由我們的非美國子公司持有。非美國子公司持有的金額可供一般公司使用；但是，這些資金如果匯回國外，可能需要繳納國外預扣稅。我們相信，我們的流動性來源將提供足夠的現金流，足以滿足我們的短期和長期融資需求。
經營活動提供的淨現金
截至2024年9月30日的六個月中，經營活動提供的淨現金爲9,780萬美元，與前一同期相比減少了1,300萬美元年。運營現金流的減少主要是由於與前一同期相比，營運資金的淨變動不利年度，部分被收益增加的有利影響所抵消。與去年同期相比，營運資金的不利變化包括與庫存交貨週期長的銷售合同相關的客戶存款減少以及激勵性薪酬支付的增加。
資本支出
2025財年前六個月的資本支出爲4,030萬美元，與上一財年同期相比增加了1,410萬美元年。2025財年的資本支出包括支持我們多項戰略增長計劃的投資，包括提高數據中心產品的生產能力。
債務
我們的信貸協議要求我們遵守各種契約，包括槓桿比率契約和利息支出承保比率契約，下文將進一步討論這些條款。我們的信貸協議下的債務由幾乎所有國內資產的留置權擔保。這些協議還要求遵守各種契約，這些契約可能會限制我們承擔額外債務、授予留置權、進行投資、貸款或擔保、與關聯公司進行某些交易或進行限制性付款（包括股息）的能力。此外，如果出售某些資產，信貸協議可能要求預付款。
主要信貸協議中的槓桿率協議要求我們將合併負債減去現金餘額的一部分（均由信貸協議定義）限制在不超過扣除利息、稅項、折舊、攤銷和某些其他調整前的合併淨收益（「調整後息稅折舊攤銷前利潤」）的三倍和四分之一。我們還受利息支出覆蓋率契約的約束，該協議要求我們將調整後的息稅折舊攤銷前利潤維持在合併利息支出的三倍以上。截至9月30日2024年，我們遵守了債務契約。我們預計將在2025財年剩餘時間及以後繼續遵守我們的債務契約。
美國養老金計劃終止
在六月2024年，我們批准終止我們的美國養老金計劃，但須獲得美國國稅局和養老金福利擔保公司的批准。我們打算讓某些參與者選擇以一次性分配的形式領取養老金福利，然後再購買年金合同，轉移我們在計劃下的剩餘債務。在計劃終止方面，我們預計將在計劃終止的基礎上額外提供1,000萬至2,500萬美元的現金捐款，爲該計劃提供全額資金，並在2026財年記錄總額約爲1.20億美元至1.30億美元的非現金養老金結算費用。由於參與者結算的性質和時間、當前的市場和經濟狀況、終止程序的持續時間或其他因素，最終現金捐款和結算費用的時間和金額可能與我們的估計存在重大差異。
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股份回購計劃
在2025財年的前六個月內，我們未在我們的分銷計劃下回購任何普通股。在2024財年的前六個月內，我們在我們的股份回購計劃下回購了900萬美元的普通股。截至2024年9月30日，我們在當前回購計劃下仍剩餘3210萬美元的回購授權，該計劃將於11月到期。2024年。我們是否以及在何種程度上回購額外股份的決定將取決於多種因素，包括業務條件、其他現金優先事項和股票價格。
前瞻性聲明 本新聞稿中包括的關於未來表現和結果、預期、規劃、策略、重點、承諾和其他聲明（包括與我們社會、環境和其他可持續性目標有關的聲明）的非歷史事實的前瞻性聲明，是根據美國聯邦證券法的定義而作出的前瞻性聲明。本新聞稿中關於我們環境和其他可持續性計劃和目標的前瞻性聲明以及其他聲明並不意味着這些聲明對於投資者、我們的業務、運營結果、財務狀況、前景或策略、對我們在可持續發展事項上的影響或其他當事方來說均是重要的，或者必須披露在我們向證券交易委員會（「SEC」）或其他監管機構的備案中。此外，歷史、現有及未來涉及社會、環境和可持續性的相關聲明可能是基於仍在發展的衡量進展的標準、不斷演變的內部控制和流程以及假設，在將來可能會發生變化。前瞻性聲明基於當前的信仰、期望和假設，並受到可能導致實際結果與前瞻性聲明有實質性差異的重大風險、不確定性和情況變化的影響。
本報告包括但不限於第2項管理討論和財務狀況及經營結果分析下的討論，包含了一些附有短語如「認爲」、「估計」、「預期」、「計劃」、「預測」、「意圖」等的關於未來財務表現的陳述，並且伴隨其他類似的「前瞻性」聲明，如1995年《私人證券訴訟改革法案》中定義的那樣。Modine的實際結果、表現或成就可能與這些陳述中所表達或暗示的結果存在實質性差異，這是因爲某些風險和不確定性，包括但不限於公司截至2024年3月31日的年度報告第I部分第1A項「風險因素」中描述的風險。其他風險和不確定性包括但不限於以下內容：
市場風險：
| ● | 潛在的不利發展或全球經濟和金融市場中出現的干擾對影響，其中包括與通貨膨脹、能源成本、供應鏈挑戰、物流中斷（包括海上、陸上或空運相關的中斷）、關稅、制裁和其他貿易問題或跨境貿易限制（以及任何潛在的貿易戰），以及軍事衝突，包括烏克蘭目前的衝突和中東地區的衝突，以及紅海地區緊張局勢可能產生的影響； |
| ● | 其他經濟、社會和政治狀況、變化、挑戰和動盪對我們及我們的客戶經營和競爭的地理、產品和金融市場產生的影響，包括外匯匯率波動；利率變化；經濟衰退及其後的復甦；以及針對稅收和貿易變化的影響的普遍不確定性，包括在美國或國外實施或可能實施的政策和/或稅收變化可能產生的影響； |
| ● | 潛在的與原材料價格上漲有關的影響，包括鋁、銅、鋼鐵和不鏽鋼（鎳）等原材料的價格上漲，以及其他採購組件庫存，包括但不限於，根據London Metal Exchange 提供的基礎材料成本和相關溢價費用的增加。這些價格可能受多種因素影響，包括貿易法律和關稅的變化、我們供應商的行爲以及需求的重大波動。這一風險包括我們成功管理風險的能力以及我們調整產品定價以應對價格上漲的能力，包括通過我們的報價流程或通過合同條款對未來價格調整的規定，以及此類合同規定的時間滯後； |
| ● | 我們在技術創新方面領先以區別於競爭對手，並向客戶提供創新產品和服務的能力，以及我們期望促使銷售增長的技術的變化或採納率對銷售增長的影響，包括與IDC概念和新能源車有關的技術的變化； |
| ● | 我們有能力緩解勞工成本和勞工短缺問題的增加； |
| ● | 公共衛生威脅對國家和全球經濟、我們的業務、供應商（和供應鏈）、客戶和員工的影響； |
32
| ● | The impact of legislation, regulations, and government incentive programs, including those addressing climate change, on demand for our products and the markets we serve, including our ability to take advantage of opportunities to supply alternative new technologies to meet environmental and/or energy standards and objectives. |
Operational risks:
| ● | The impact of problems, including logistic and transportation challenges, associated with suppliers meeting our quantity, quality, price and timing demands, and the overall health of our suppliers, including their ability and willingness to supply our volume demands if their production capacity becomes constrained; |
| ● | The overall health of and pricing pressure from our customers in light of economic and market-specific factors and the potential impact on us from any deterioration in the stability or performance of any of our major customers; |
| ● | Our ability to maintain current customer relationships and compete effectively for new business, including our ability to achieve profit margins acceptable to us by offsetting or otherwise addressing any cost increases associated with supply chain challenges and inflationary market conditions; |
| ● | The impact of product or manufacturing difficulties or operating inefficiencies, including any product or program launches, product transfer challenges and warranty claims; |
| ● | The impact of delays or modifications initiated by major customers with respect to product or program launches, product applications or requirements; |
| ● | Our ability to consistently structure our operations in order to develop and maintain a competitive cost base with appropriately skilled and stable labor, while also positioning ourselves geographically, so that we can continue to support our customers with the technical expertise and market-leading products they demand and expect from Modine; |
| ● | Our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring activities and realizing the anticipated benefits thereof; |
| ● | Costs and other effects of the investigation and remediation of environmental contamination; including when related to the actions or inactions of others and/or facilities over which we have no control; |
| ● | Our ability to recruit and maintain talent, including personnel in managerial, leadership, operational and administrative functions; |
| ● | Our ability to protect our proprietary information and intellectual property from theft or attack by internal or external sources; |
| ● | The impact of a substantial disruption, including any prolonged service outage, or material breach of our information technology (“IT”) systems, and any related delays, problems or costs; |
| ● | The impact of the material weakness identified in our internal control over financial reporting related to IT system access in Europe on our financial reporting process; |
| ● | Increasingly complex and restrictive laws and regulations and the costs associated with compliance therewith, including state and federal labor regulations, laws and regulations associated with being a U.S. public company, and other laws and regulations present in various jurisdictions in which we operate; |
33
| ● | Increasing emphasis by global regulatory bodies, customers, investors, and employees on environmental, social and corporate governance matters may impose additional costs on us, adversely affect our reputation, or expose us to new risks; |
| ● | Work stoppages or interference at our facilities or those of our major customers and/or suppliers; |
| ● | The constant and increasing pressures associated with healthcare and associated insurance costs; and |
| ● | Costs and other effects of litigation, claims, or other obligations, including those that may be asserted against us in connection with divested businesses. |
Strategic risks:
| ● | Our ability to successfully realize anticipated benefits, including improved profit margins and cash flow, from strategic initiatives and our continued application of 80/20 principles across our businesses; and |
| ● | Our ability to accelerate growth by identifying and executing on organic growth opportunities and acquisitions, and to efficiently and successfully integrate acquired businesses. |
Financial risks:
| ● | Our ability to fund our global liquidity requirements efficiently for our current operations and meet our long-term commitments in the event of disruption in or tightening of the credit markets or extended recessionary conditions in the global economy; |
| ● | The impact of increases in interest rates in relation to our variable-rate debt obligations; |
| ● | The impact of changes in federal, state or local taxes that could have the effect of increasing our income tax expense; |
| ● | Our ability to comply with the financial covenants in our credit agreements, including our leverage ratio (net debt divided by Adjusted EBITDA, as defined in our credit agreements) and our interest coverage ratio (Adjusted EBITDA divided by interest expense, as defined in our credit agreements); |
| ● | The potential unfavorable impact of foreign currency exchange rate fluctuations on our financial results; and |
| ● | Our ability to effectively realize the benefits of deferred tax assets in various jurisdictions in which we operate. |
Forward-looking statements are as of the date of this report; we do not assume any obligation to update any forward-looking statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
The Company’s quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, Item 7A. of the Company’s Annual Report on Form 10-K for the year ended March 31, 2024. The Company’s market risks have not materially changed since the fiscal 2024 Form 10-K was filed.
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Item 4. Controls and Procedures.
Evaluation of disclosure controls and procedures
As of the end of the period covered by this Quarterly Report on Form 10-Q, management of the Company, with the participation of the Company’s President and Chief Executive Officer and Executive Vice President, Chief Financial Officer, and under the oversight of the Audit Committee of the Board of Directors, evaluated the effectiveness of the Company’s disclosure controls and procedures, at a reasonable assurance level, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended. As described below, management previously identified a material weakness in the Company’s internal control over financial reporting. This material weakness will not be considered remediated until the applicable new and enhanced controls operate for a sufficient period of time and management can conclude, through testing, that the controls are designed and operating effectively. As remediation of the material weakness is not yet complete, the President and Chief Executive Officer and Executive Vice President, Chief Financial Officer have concluded that the design and operation of the Company’s disclosure controls and procedures continue to be ineffective as of September 30, 2024.
Notwithstanding the material weakness, management performed additional analysis and other post-closing procedures to ensure that the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q are fairly presented in all material respects in accordance with accounting principles generally accepted in the United States of America.
Previously-identified material weakness
As reported in Part II, Item 9A. “Controls and Procedures” of the Company’s Annual Report on Form 10-K for the year ended March 31, 2024, management identified a material weakness in the Company’s internal control over financial reporting related to IT general controls in Europe for systems supporting the Company’s accounting and financial reporting processes. Specifically, the Company did not appropriately restrict access to certain systems. As a result, automated process-level controls and manual controls that are dependent upon the accuracy and completeness of information derived from those IT systems were also ineffective since they could have been adversely impacted. The material weakness resulted from an insufficient number of trained resources with the IT expertise necessary to appropriately assess and be accountable for IT-related risks or effectively design, implement, and operate controls to monitor and restrict access to systems that support the Company’s accounting and financial reporting processes.
Management’s remediation activities
Management is substantially complete or in the process with the following steps, which it believes will fully address the underlying causes of the material weakness:
| ● | Engaging resources, including current team members, new hires, and external consultants with appropriate expertise to be held accountable for effectively assessing IT-related risks and designing, implementing and operating controls needed to mitigate those risks; and |
| ● | Designing and implementing controls to effectively restrict and monitor access to systems that support the Company’s accounting and financial reporting processes. |
Management believes that these actions and control improvements, when fully implemented and tested, will strengthen the Company’s internal control over financial reporting and remediate the material weakness identified.
Changes in internal control over financial reporting
The Company acquired Scott Springfield Manufacturing during the fourth quarter of fiscal 2024 and is currently integrating the operations, processes and internal controls of the acquired company. See Note 2 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information regarding the acquisition.
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Except for the remediation steps described above and the integration activities for the Scott Springfield Manufacturing acquisition, there have been no changes in internal control over financial reporting during the second quarter of fiscal 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
ISSUER PURCHASES OF EQUITY SECURITIES
The following describes the Company’s purchases of common stock during the second quarter of fiscal 2025:
|
|
|
| Maximum | ||||||
Number (or | ||||||||||
Total Number of | Approximate Dollar | |||||||||
Shares Purchased | Value) of Shares | |||||||||
Average | as Part of Publicly | that May Yet Be | ||||||||
Total Number of | Price Paid | Announced Plans | Purchased Under the | |||||||
Period | Shares Purchased | Per Share | or Programs | Plans or Programs (a) | ||||||
July 1 – July 31, 2024 |
| 2,031 (b) | $ | 106.10 |
| — | $ | 32,063,074 | ||
August 1 – August 31, 2024 |
| 28,643 (b) | $ | 100.80 |
| — | $ | 32,063,074 | ||
September 1 – September 30, 2024 |
| — | — |
| — | $ | 32,063,074 | |||
Total |
| 30,674 | $ | 101.15 |
| — |
|
| ||
____ | ||||||||||
| (a) | Effective November 5, 2022, the Company’s Board of Directors authorized the Company to repurchase up to $50.0 million of Modine common stock at such times and prices that it deems to be appropriate. This authorization expires on November 5, 2024. |
| (b) | Includes shares delivered back to the Company by employees and/or directors to satisfy tax withholding obligations that arise upon the vesting of stock awards. The Company, pursuant to its equity compensation plans, gives participants the opportunity to turn back to the Company the number of shares from the award sufficient to satisfy tax withholding obligations that arise upon the termination of restrictions. These shares are held as treasury shares. |
Item 5. Other Information.
During the three months ended September 30, 2024, no director or “officer” of the Company
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Item 6. Exhibits.
| (a) | Exhibits: |
Exhibit No. |
| Description |
| Incorporated |
| Filed |
|
Rule 13a-14(a)/15d-14(a) Certification of Neil D. Brinker, President and Chief Executive Officer. | X | ||||||
Rule 13a-14(a)/15d-14(a) Certification of Michael B. Lucareli, Executive Vice President, Chief Financial Officer. | X | ||||||
Section 1350 Certification of Neil D. Brinker, President and Chief Executive Officer. | X | ||||||
Section 1350 Certification of Michael B. Lucareli, Executive Vice President, Chief Financial Officer. | X | ||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | X | |||||
101.SCH | Inline XBRL Taxonomy Extension Schema. | X | |||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | X | |||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | X | |||||
10.1.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | X | |||||
10.1.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | X | |||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | X |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MODINE MANUFACTURING COMPANY | ||
(Registrant) | ||
By: | /s/ Michael B. Lucareli | |
Michael B. Lucareli, Executive Vice President, Chief Financial Officer* | ||
Date: October 30, 2024
* Executing as both the principal financial officer and a duly authorized officer of the Company
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