EX-99 2 exh99.htm PRESS RELEASE Press Release

Modine Logo
 
 
NEWS RELEASE

For Immediate Release
Investor Contact: Dave Prichard 262-636-8434 d.a.prichard@na.modine.com
Media Contact: Lori Stafford 262-636-1001 l.stafford@na.modine.com
 
Modine Provides Minor Changes to Unaudited, Pro Forma Historical Earnings Statements for Classification of Former Aftermarket Business as a Discontinued Operation and Announces Updated Charge to Discontinued Operations for Fiscal 2006 Second Quarter Financial Statements

Racine, WI, November 7, 2005 - Modine Manufacturing Company (NYSE: MOD), a diversified world leader in thermal management technology and solutions, today issued minor changes to portions of unaudited, pro forma historical earnings statements recently issued when the Company announced the classification of its former Aftermarket business, which was spun off on July 22 and merged with Transpro, Inc. (now known as Proliance International, Inc.), as a discontinued operation.
 
These unaudited, pro forma historical financial statements, as well as expanded operating segment financial information, have been provided for the first quarter of fiscal 2006, by quarter for fiscal 2005, and annually for fiscal years 2005, 2004 and 2003.
 
All unaudited, pro forma earnings statements have been labeled with dollar and per share headings, and the quarterly earnings statements for fiscal 2005 and the first quarter of fiscal 2006 have been updated with the correct quarterly period dates.
 
The complete unaudited, pro forma historical earnings statements and expanded operating segment financial information containing these changes are provided with this press release. They may also be accessed by visiting Modine’s Web site at www.modine.com.
 
Modine also confirmed that it recorded a charge to discontinued operations of $54.1 million, or $(1.56) per fully diluted share in the Company’s fiscal 2006 second quarter, in line with prior guidance. The charge was comprised of a $50.4 million non-cash charge to reflect the difference between the value that Modine shareholders received in Proliance International, Inc. of $51.3 million, a function of the price of Transpro, Inc. stock at the time of the closing, and the $101.7 million in asset carrying value of Modine’s Aftermarket business; a $3.2 million non-cash foreign currency translation loss recognized upon disposition; and $0.5 million in unreimbursed expenses incurred as part of the transaction. This charge was reported in the Company’s fiscal 2006 second quarter earnings release on October 19 as $50.8 million but had been reported in an earlier release that same day as $48.2 million.
 
In addition, Modine said it made other minor classification and labeling changes to its income statement and statement of cash flows issued with its fiscal 2006 second quarter earnings release on October 19, 2005. The revised income statement and statement of cash flows reflecting the $54.1 million charge to discontinued operations and classification changes are also provided with this press release.
 
Founded in 1916, Modine specializes in thermal management systems and components, bringing heating and cooling technology and solutions to diversified global markets. The Company’s products are used in light, medium, and heavy-duty vehicles, HVAC equipment, industrial equipment, refrigeration systems, fuel cells and electronics. Modine has more than 8,200 employees and 35 facilities in 15 countries worldwide. More information can be found at www.modine.com. 
       
 
 

 
Modine Manufacturing Company
                  
Consolidated statements of earnings (unaudited)*
                  
     
  (In thousands, except per-share amounts)
                   
   
Three months ended September 26,
      
Six months ended September 26,
      
     
2005
    
2004
    
2005
    
2004
  
Net sales
  
$
404,152
  
$
306,717
  
$
800,990
  
$
597,946
  
Cost of sales
    
324,366
   
242,924
   
640,932
   
471,800
 
Gross profit
    
79,786
   
63,793
   
160,058
   
126,146
 
Selling, general, & administrative expenses
    
56,651
   
42,206
   
107,204
   
81,906
 
Restructuring
   
-
    
(600
)
  
-
    
922
 
Income from operations
    
23,135
   
22,187
   
52,854
   
43,318
 
Interest (expense)
    
(1,837
)
  
(1,498
)
  
(3,381
)
  
(2,764
)
Other income - net
    
607
   
1,558
   
3,278
   
2,531
 
Earnings from continuing operations before income taxes
    
21,905
   
22,247
   
52,751
   
43,085
 
Provision for income taxes
    
7,583
   
8,327
   
17,731
   
16,653
 
Earnings from continuing operations
    
14,322
   
13,920
   
35,020
   
26,432
 
                           
Earnings from discontinued operations (net of income taxes)
    
404
   
132
   
457
   
1,429
 
Loss on spin off of discontinued operations
    
(54,068
)
  
-
   
(54,068
)
  
-
 
Net (loss)/earnings
    
($39,342
)
$
14,052
    
($18,591
)
$
27,861
  
                           
Earnings from continuing operations as a percent of net sales
   
3.5
%
  
4.5
%
  
4.4
%
  
4.4
%
                           
Earnings per share from continuing operations:
                          
Basic
  
$
0.42
  
$
0.41
  
$
1.02
  
$
0.78
  
Diluted
  
$
0.41
  
$
0.40
  
$
1.01
  
$
0.77
  
Net (loss)/earnings per share:
                          
Basic
    
($1.14
)
$
0.41
    
($0.54
)
$
0.82
  
Diluted
    
($1.14
)
$
0.41
    
($0.54
)
$
0.81
  
Weighted average shares outstanding:
                          
Basic
    
34,185
   
34,018
   
34,257
   
33,975
 
Diluted
    
34,779
   
34,415
   
34,705
   
34,339
 
                           
Net cash provided by operating activities
  
$
27,739
  
$
28,976
  
$
49,992
  
$
31,676
  
Dividends paid per share
  
$
0.1750
  
$
0.1525
  
$
0.3500
  
$
0.3050
  
                           
Comprehensive (loss)/earnings, which represent net earnings adjusted by the change in foreign-currency translation,
minimum pension liability, and a cashflow hedge of a benchmark interest rate for a forecasted debt borrowing, recorded in shareholders' equity,for the periods ended September 26, 2005 and 2004, respectively, were ($37,211) and $15,624 for 3 months, and ($34,885) and $23,713 for 6 months.
                           
                           
Consolidated condensed balance sheets (unaudited)
                          
(In thousands)
                          
Sept. 26, 2005
          
March 31, 2005
              
Assets
                          
Cash and cash equivalents
  
$
66,464
  
$
55,091
              
Trade receivables - net
    
240,570
   
251,734
             
Inventories
    
91,900
   
149,781
             
Other current assets
    
45,984
   
52,724
             
Total current assets
    
444,918
   
509,330
             
Property, plant, and equipment - net
    
460,208
   
496,180
             
Other noncurrent assets
    
170,914
   
146,645
             
Total assets
  
$
1,076,040
  
$
1,152,155
              
Liabilities
                          
Debt due within one year
  
$
108
  
$
64,912
              
Accounts payable
    
148,670
   
159,876
             
Other current liabilities
    
113,889
   
120,306
             
Total current liabilities
    
262,667
   
345,094
             
Long-term debt
    
160,961
   
40,724
             
Deferred income taxes
    
42,593
   
44,072
             
Other noncurrent liabilities
    
61,156
   
62,485
             
Total liabilities
    
527,377
   
492,375
             
Shareholders' equity
    
548,663
   
659,780
             
Total liabilities & shareholders' equity
  
$
1,076,040
  
$
1,152,155
              
                           
                           
                           
*Certain prior-year amounts have been reclassified in the consolidated financial statements to conform with the
current year presentation. These include a reclassification of certain other income & expense items to sales,
S.G.&A. and manufacturing overhead, along with additional allocations of certain centralized services expenses
from corporate and administrative expenses to the attributable individual segments and their divisions in order
to more accurately reflect their operating results.
                          
 
 

Modine Manufacturing Company
  
 
  
 
  
 
  
 
  
 
  
Condensed consolidated statements of cash flows (unaudited)*
                  
     
 (In thousands)
        
Six months ended September 26,
      
2005
  
2004
          
                                 
Net (loss) / earnings
          
($18,591
)
$
27,861
              
Adjustments to reconcile net (loss)/earnings with cash provided
                                
by operating activities:
                                
Depreciation and amortization
          
36,145
   
32,857
             
Loss on spin-off of aftermarket business
          
53,611
   
-
             
Other - net
         
1,980
   
1,388
             
           
73,145
   
62,106
             
                                 
Net changes in operating assets and liabilities
          
(23,153
)
  
(30,430
)
            
                                 
Cash flows provided by operating activities
          
49,992
   
31,676
             
                                 
Cash flows from investing activities:
                                
Expenditures for plant, property, & equipment
          
(30,136
)
  
(29,770
)
            
Acquisitions, net of cash
          
(37,491
)
  
(82,605
)
            
Spin-off of aftermarket business (cash transferred)
          
(3,725
)
  
-
             
Proceeds for dispositions of assets
          
-
   
1,125
             
Other- net
          
198
   
(546
)
            
Net cash (used for) investing activities
          
(71,154
)
  
(111,796
)
            
                                 
Cash flows from financing activities:
                                
Net increase/(decrease) in debt
          
60,000
   
52,166
             
Settlement of derivative contract
          
(1,794
)
  
-
             
Cash proceeds from exercise of stock options
          
8,597
   
3,816
             
Repurchase of common stock, treasury & retirement
          
(24,261
)
  
(483
)
            
Cash dividends paid
          
(12,140
)
  
(10,424
)
            
Other - net
         
4,526
   
5,165
             
Net cash provided by financing activities
          
34,928
   
50,240
             
                                 
Effect of exchange rate changes on cash
          
(2,393
)
  
(596
)
            
                                 
Net increase / (decrease) in cash and cash equivalents
          
11,373
   
(30,476
)
            
                                 
Cash and cash equivalents at beginning of the period
          
55,091
   
69,758
             
                                 
Cash and cash equivalents at end of the period
        
$
66,464
  
$
39,282
              
                                 
                                 
                                 
                                 
                                 
Condensed segment operating results (unaudited)**
                                
(In thousands)
                                
                                 
   
Three months ended September 26,
  Six months ended September 26,
     
2005
    
2004
          
2005
    
2004
  
Sales:
                                
Original Equipment - Americas
  
$
172,607
  
$
142,855
        
$
337,537
  
$
284,378
  
Original Equipment - Asia
    
49,722
   
14,215
         
107,549
   
14,215
 
Original Equipment - Europe
    
128,740
   
116,783
         
268,733
   
238,633
 
Commercial HVAC&R
    
46,093
   
24,498
         
74,549
   
43,497
 
Other
    
8,201
   
8,030
         
14,989
   
16,432
 
Segment sales
    
405,363
   
306,381
         
803,357
   
597,155
 
Corporate and Administrative
    
774
   
1,271
         
1,567
   
2,424
 
Eliminations
    
(1,985
)
  
(935
)
        
(3,934
)
  
(1,633
)
Net sales
  
$
404,152
  
$
306,717
        
$
800,990
  
$
597,946
  
                                 
Operating earnings/(loss):
                                
Original Equipment - Americas
  
$
22,919
  
$
19,672
        
$
43,845
  
$
40,966
  
Original Equipment - Asia
    
(687
)
  
626
         
1,874
   
626
 
Original Equipment - Europe
    
16,954
   
13,920
         
37,969
   
28,096
 
Commercial HVAC&R
    
4,207
   
2,808
         
6,430
   
4,745
 
Other
    
(3,232
)
  
(3,104
)
        
(7,284
)
  
(7,631
)
Segment earnings
    
40,161
   
33,922
         
82,834
   
66,802
 
Corporate and Administrative Expenses
    
(17,443
)
  
(11,771
)
        
(30,427
)
  
(23,522
)
Eliminations
    
27
   
39
         
57
   
36
 
Other Items Not Allocated to a Segment
    
(840
)
  
57
         
287
   
(231
)
Earnings from continuing operations
before income taxes
  
$
21,905
  
$
22,247
        
$
52,751
  
$
43,085
  
                                 
** Prior year segment results have been reclassified to conform to the current year presentation.
In the current year, six months of the Korean and Chinese acquisitions results are included in Original Equipment - Asia segment and
six months of the Jackson, Mississippi acquisition results are included in the Original Equipment - Americas segment, while four
months of the Airedale acquisition results are included in the Commercial HVAC&R segment. The Korean acquisition was included
 
for one month in the prior year while the Chinese, Jackson, and Airedale acquisitions were not included in the prior periods
as they were acquired later in fiscal 2005 and fiscal 2006.
                                
                                 
 

** Definition - Return from continuing operations on average capital employed (ROACE)
The sum of, earnings from continuing operations and adding back after-tax interest (interest expense less the tax benefit at the
total company effective tax rate), divided by the average, total debt plus shareholders' equity: this is a financial measure of the profit
generated on the total capital invested in the company before any interest expenses payable to lenders, net of any tax effect.
               
Management discussion concerning the use of the financial measure - Return from continuing operations on average capital employed
Return from continuing operations on average capital employed is not a measure derived under generally accepted accounting principles
(GAAP) and should not be considered as a substitute for any measure derived in accordance with GAAP. Management believes that
return from continuing operations on capital employed provides investors with helpful supplemental information about the Company's
performance, ability to provide an acceptable return on all the capital utilized by the Company, and ability to fund growth. This measure
may not be consistent with similar measures presented by other companies.
               
               
Modine Manufacturing Company
Return from continuing operations on average capital employed (unaudited)
     
 (In thousands)
    
Trailing four quarters ended September 26,
    
2005
    
               
Earnings from continuing operations
    
$70,276
   
Plus interest expense from continuing operations net of tax benefit at total company effective tax rate
    
4,536
   
Net return
        
$74,812
   
               
Divided by:
            
Average capital (debt + equity, last five quarter ends / divided by 5)
$675,736
   
               
Return from continuing operations on average capital employed
11.1%
    
               
Interest expense from continuing operations
$6,946
   
Total company effective tax rate
      
34.7%
    
Tax benefit
        
2,410
   
Interest expense, net of tax benefit
      
$4,536
   
               
 

Modine Manufacturing Company
      
Unaudited proforma consolidated statements of earnings
      
(In thousands, except per share amounts)
  
                                 
    Historical Modine           
Adjusted
    
Discontinued
    
Continuing
  
For the year ended March 31, 2003
    
as reported
    
Reclassifications
    
Historical Modine
    
Operations
    
Operations
  
                                 
Net sales
 
$
1,092,075
  
$
2,653
  
$
1,094,728
    
($231,739
)
$
862,989
  
Cost of sales
    
826,417
   
6,876
   
833,293
   
(155,217
)
  
678,076
 
                                 
Gross profit
    
265,658
   
(4,223
)
  
261,435
   
(76,522
)
  
184,913
 
Selling, general, and administrative expenses
    
214,121
   
(9,984
)
  
204,137
   
(70,795
)
  
133,342
 
Restructuring charges
    
(1,555
)
  
0
   
(1,555
)
  
(178
)
  
(1,733
)
                                 
Income from operations
    
53,092
   
5,761
   
58,853
   
(5,549
)
  
53,304
 
Interest expense
    
(6,026
)
  
0
   
(6,026
)
  
631
   
(5,395
)
Other income--net
    
7,961
   
(5,761
)
  
2,200
   
1,789
   
3,989
 
                                 
Earnings before income taxes from continuing operations
    
55,027
   
0
   
55,027
   
(3,129
)
  
51,898
 
Provision for income taxes
    
20,669
   
0
   
20,669
   
(2,159
)
  
18,510
 
                                 
Earnings before cumulative effect of accounting change (continuing ops)
    
34,358
   
0
   
34,358
   
(970
)
  
33,388
 
                                 
Cumulative effect of change in accounting for:
                                
Goodwill impairment (net of 1,136 income tax benefit)
    
(21,692
)
  
--
   
(21,692
)
  
21,692
   
0
 
                                 
Net earnings
  
$
12,666
  
$
0
  
$
12,666
  
$
20,722
  
$
33,388
  
                                 
                                 
                                 
Net earnings per share (before cumulative effect of accounting change):
                        
                                 
Basic
  
$
1.03
        
$
1.03
        
$
1.00
  
Diluted
  
$
1.02
        
$
1.02
        
$
0.99
  
                                 
Weighted average shares outstanding:
                                
Basic
    
33,652
         
33,652
         
33,652
 
Diluted
    
33,758
         
33,758
         
33,758
 
                                 
                                 
 

Modine Manufacturing Company
Unaudited proforma consolidated statements of earnings
(In thousands, except per share amounts)
                       
   
Historical Modine
      
Adjusted
  
Discontinued
  
Continuing
  
For the year ended March 31, 2004
  
as reported
  
Reclassifications
  
Historical Modine
  
Operations
  
Operations
  
                                 
Net sales
 
$
1,199,799
  
$
6,086
  
$
1,205,885
    
($225,210
)
$
980,675
  
Cost of sales
    
914,569
   
6,197
   
920,766
   
(151,608
)
  
769,158
 
                                 
Gross profit
    
285,230
   
(111
)
  
285,119
   
(73,602
)
  
211,517
 
Selling, general, and administrative expenses
    
235,283
   
(13,979
)
  
221,304
   
(67,106
)
  
154,198
 
Restructuring charges
    
(119
)
  
0
   
(119
)
  
49
   
(70
)
                                 
Income from operations
    
50,066
   
13,868
   
63,934
   
(6,545
)
  
57,389
 
Interest expense
    
(5,429
)
  
0
   
(5,429
)
  
405
   
(5,024
)
Other income--net
    
19,074
   
(13,868
)
  
5,206
   
(104
)
  
5,102
 
                                 
Earnings before income taxes from continuing operations
    
63,711
   
0
   
63,711
   
(6,244
)
  
57,467
 
Provision for income taxes
    
23,274
   
0
   
23,274
   
(1,300
)
  
21,974
 
                                 
Net earnings
  
$
40,437
  
$
0
  
$
40,437
    
($4,944
)
$
35,493
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
1.19
        
$
1.19
        
$
1.05
  
Diluted
  
$
1.19
        
$
1.19
        
$
1.04
  
                                 
Weighted average shares outstanding:
                                
Basic
    
33,922
         
33,922
         
33,922
 
Diluted
    
34,073
         
34,073
         
34,073
 
                                 
 

Modine Manufacturing Company
  
Unaudited proforma consolidated statements of earnings
  
(In thousands, except per share amounts)
      
                       
   
Historical Modine
      
Adjusted
  
Discontinued
  
Continuing
  
For the year ended March 31, 2005
  
as reported
  
Reclassifications
  
Historical Modine
  
Operations
  
Operations
  
                                 
Net sales
 
$
1,543,930
  
$
4,085
  
$
1,548,015
    
($205,599
)
$
1,342,416
  
Cost of sales
    
1,193,821
   
8,517
   
1,202,338
   
(139,762
)
  
1,062,576
 
                                 
Gross profit
    
350,109
   
(4,432
)
  
345,677
   
(65,837
)
  
279,840
 
Selling, general, and administrative expenses
    
264,088
   
(13,499
)
  
250,589
   
(67,198
)
  
183,391
 
Restructuring charges
    
1,031
   
0
   
1,031
   
0
   
1,031
 
                                 
Income from operations
    
84,990
   
9,067
   
94,057
   
1,361
   
95,418
 
Interest expense
    
(6,365
)
  
0
   
(6,365
)
  
36
   
(6,329
)
Other income--net
    
18,251
   
(9,067
)
  
9,184
   
(356
)
  
8,828
 
                                 
Earnings before income taxes from continuing operations
    
96,876
   
0
   
96,876
   
1,041
   
97,917
 
Provision for income taxes
    
35,214
   
0
   
35,214
   
1,017
   
36,231
 
                                 
Net earnings
  
$
61,662
  
$
0
  
$
61,662
  
$
24
  
$
61,686
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
1.81
        
$
1.81
        
$
1.81
  
Diluted
  
$
1.79
        
$
1.79
        
$
1.79
  
                                 
Weighted average shares outstanding:
                                
Basic
    
34,092
         
34,092
   
34,092
   
34,092
 
Diluted
    
34,480
         
34,480
   
34,480
   
34,480
 
 

Modine Manufacturing Company
  
Unaudited proforma consolidated statements of earnings
      
(In thousands, except per share amounts)
 
      
   
Historical Modine
      
Adjusted
  
Discontinued
  
Continuing
  
For the quarter ended June 26, 2004
  
as reported
  
Reclassifications
  
Historical Modine
  
Operations
  
Operations
  
                                 
Net sales
 
$
347,362
  
$
1,265
  
$
348,627
    
($57,398
)
$
291,229
  
Cost of sales
    
265,202
   
1,773
   
266,975
   
(38,099
)
  
228,876
 
                                 
Gross profit
    
82,160
   
(508
)
  
81,652
   
(19,299
)
  
62,353
 
Selling, general, and administrative expenses
    
59,485
   
(3,097
)
  
56,388
   
(16,688
)
  
39,700
 
Restructuring charges
    
1,522
   
0
   
1,522
   
0
   
1,522
 
                                 
Income from operations
    
21,153
   
2,589
   
23,742
   
(2,611
)
  
21,131
 
Interest expense
    
(1,277
)
  
0
   
(1,277
)
  
11
   
(1,266
)
Other income--net
    
3,572
   
(2,589
)
  
983
   
(6
)
  
977
 
                                 
Earnings before income taxes from continuing operations
    
23,448
   
0
   
23,448
   
(2,606
)
  
20,842
 
Provision for income taxes
    
9,639
   
0
   
9,639
   
(1,313
)
  
8,326
 
                                 
Net earnings
  
$
13,809
  
$
0
  
$
13,809
    
($1,293
)
$
12,516
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
0.41
        
$
0.41
        
$
0.37
  
Diluted
  
$
0.40
        
$
0.40
        
$
0.37
  
                                 
Weighted average shares outstanding:
                                
Basic
    
33,932
         
33,932
         
33,932
 
Diluted
    
34,264
         
34,264
         
34,264
 
                                 
 

Modine Manufacturing Company
      
Unaudited proforma consolidated statements of earnings
      
(In thousands, except per share amounts)
      
                       
   
Historical Modine
      
Adjusted
  
Discontinued
  
Continuing
  
For the quarter ended September 26, 2004
  
as reported
  
Reclassifications
  
Historical Modine
  
Operations
  
Operations
  
                                 
Net sales
 
$
363,620
  
$
1,273
  
$
364,893
    
($58,176
)
$
306,717
  
Cost of sales
    
280,488
   
2,275
   
282,763
   
(39,839
)
  
242,924
 
                                 
Gross profit
    
83,132
   
(1,002
)
  
82,130
   
(18,337
)
  
63,793
 
Selling, general, and administrative expenses
    
63,451
   
(3,207
)
  
60,244
   
(18,038
)
  
42,206
 
Restructuring charges
    
(600
)
  
0
   
(600
)
  
0
   
(600
)
                                 
Income from operations
    
20,281
   
2,205
   
22,486
   
(299
)
  
22,187
 
Interest expense
    
(1,507
)
  
1
   
(1,506
)
  
8
   
(1,498
)
Other income--net
    
3,766
   
(2,205
)
  
1,561
   
(5
)
  
1,556
 
                                 
Earnings before income taxes from continuing operations
    
22,540
   
1
   
22,541
   
(296
)
  
22,245
 
Provision for income taxes
    
8,488
   
1
   
8,489
   
(162
)
  
8,327
 
                                 
Net earnings
  
$
14,052
    
($0
)
$
14,052
    
($134
)
$
13,918
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
0.41
        
$
0.41
        
$
0.41
  
Diluted
  
$
0.41
        
$
0.41
        
$
0.40
  
                                 
Weighted average shares outstanding:
                                
Basic
    
34,018
         
34,018
         
34,018
 
Diluted
    
34,415
         
34,415
         
34,415
 
                                 
 

Modine Manufacturing Company
  
Unaudited proforma consolidated statements of earnings
      
(In thousands, except per share amounts)
      
                       
   
Historical Modine
      
Adjusted
  
Discontinued
  
Continuing
  
For the quarter ended December 26, 2004
  
as reported
  
Reclassifications
  
Historical Modine
  
Operations
  
Operations
  
                                 
Net sales
 
$
418,398
  
$
748
  
$
419,146
    
($44,112
)
$
375,034
  
Cost of sales
    
322,713
   
2,421
   
325,134
   
(31,092
)
  
294,042
 
                                 
Gross profit
    
95,685
   
(1,673
)
  
94,012
   
(13,020
)
  
80,992
 
Selling, general, and administrative expenses
    
70,428
   
(3,743
)
  
66,685
   
(17,119
)
  
49,566
 
Restructuring charges
    
109
   
0
   
109
   
0
   
109
 
                                 
Income from operations
    
25,148
   
2,070
   
27,218
   
4,099
   
31,317
 
Interest expense
    
(1,641
)
  
0
   
(1,641
)
  
7
   
(1,634
)
Other income--net
    
6,652
   
(2,070
)
  
4,582
   
2
   
4,584
 
                                 
Earnings before income taxes from continuing operations
    
30,159
   
(0
)
  
30,159
   
4,108
   
34,267
 
Provision for income taxes
    
11,213
   
0
   
11,213
   
1,714
   
12,927
 
                                 
Net earnings
  
$
18,946
    
($0
)
$
18,946
  
$
2,394
  
$
21,340
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
0.56
        
$
0.56
        
$
0.63
  
Diluted
  
$
0.55
        
$
0.55
        
$
0.62
  
                                 
Weighted average shares outstanding:
                                
Basic
    
34,142
         
34,142
         
34,142
 
Diluted
    
34,550
         
34,550
         
34,550
 
                                 

Modine Manufacturing Company
  
Unaudited proforma consolidated statements of earnings
      
(In thousands, except per share amounts)
  
                       
   
Historical Modine
      
Adjusted
  
Discontinued
  
Continuing
  
For the quarter ended March 31, 2005
  
as reported
  
Reclassifications
  
Historical Modine
  
Operations
  
Operations
  
 
                                
Net sales
 
$
414,550
  
$
799
  
$
415,349
    
($45,912
)
$
369,437
  
Cost of sales
    
325,418
   
2,042
   
327,460
   
(30,733
)
  
296,727
 
                                 
Gross profit
    
89,132
   
(1,243
)
  
87,889
   
(15,179
)
  
72,710
 
Selling, general, and administrative expenses
    
70,722
   
(3,449
)
  
67,273
   
(15,352
)
  
51,921
 
Restructuring charges
    
0
   
0
   
0
   
0
   
0
 
                                 
Income from operations
    
18,410
   
2,206
   
20,616
   
173
   
20,789
 
Interest expense
    
(1,941
)
  
0
   
(1,941
)
  
10
   
(1,931
)
Other income--net
    
4,263
   
(2,206
)
  
2,057
   
(345
)
  
1,712
 
                                 
Earnings before income taxes from continuing operations
    
20,732
   
0
   
20,732
   
(162
)
  
20,570
 
Provision for income taxes
    
5,877
   
0
   
5,877
   
778
   
6,655
 
                                 
Net earnings
  
$
14,855
  
$
0
  
$
14,855
    
($940
)
$
13,915
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
0.43
        
$
0.43
        
$
0.40
  
Diluted
  
$
0.43
        
$
0.43
        
$
0.40
  
                                 
Weighted average shares outstanding:
                                
Basic
    
34,276
         
34,276
         
34,276
 
Diluted
    
34,690
         
34,690
         
34,690
 
                                 
 

Modine Manufacturing Company
Unaudited proforma consolidated statements of earnings
(In thousands, except per share amounts)
  
                                 
   
Historical Modine 
          
Adjusted
    
Discontinued
    
Continuing
  
For the quarter ended June 26, 2005
    
as reported
    
Reclassifications
    
Historical Modine
    
Operations
    
Operations
  
                                 
Net sales
 
$
450,930
  
$
0
  
$
450,930
    
($54,094
)
$
396,836
  
Cost of sales
    
353,778
   
0
   
353,778
   
(37,213
)
  
316,565
 
                                 
Gross profit
    
97,152
   
0
   
97,152
   
(16,881
)
  
80,271
 
Selling, general, and administrative expenses
    
67,333
   
0
   
67,333
   
(16,780
)
  
50,553
 
Restructuring charges
    
0
   
0
   
0
   
0
   
0
 
                                 
Income from operations
    
29,819
   
0
   
29,819
   
(101
)
  
29,718
 
Interest expense
    
(1,551
)
  
0
   
(1,551
)
  
7
   
(1,544
)
Other income--net
    
2,712
   
0
   
2,712
   
(41
)
  
2,671
 
                                 
Earnings before income taxes from continuing operations
    
30,980
   
0
   
30,980
   
(135
)
  
30,845
 
Provision for income taxes
    
10,229
   
0
   
10,229
   
(81
)
  
10,148
 
                                 
Net earnings
  
$
20,751
  
$
0
  
$
20,751
    
($54
)
$
20,697
  
                                 
                                 
                                 
Net earnings per share:
                                
                                 
Basic
  
$
0.60
        
$
0.60
        
$
0.60
  
Diluted
  
$
0.60
        
$
0.60
        
$
0.60
  
                                 
Weighted average shares outstanding:
                                
Basic
    
34,329
         
34,329
         
34,329
 
Diluted
    
34,631
         
34,631
         
34,631
 
                                 
 
 
 

Modine Manufacturing Company
  
Unaudited proforma segment operating results
  
(In thousands)
  
                       
   
1st Quarter
  
4th Quarter
  
3rd Quarter
  
2nd Quarter
  
1st Quarter
  
   
FY2006
  
FY2005
  
FY2005
  
FY2005
  
FY2005
  
Sales
                                
Original Equipment - Americas
  
$
164,930
  
$
159,238
  
$
146,413
  
$
142,855
  
$
141,523
  
Original Equipment - Asia
    
57,827
   
49,811
   
52,405
   
14,215
   
-
 
Original Equipment - Europe
    
139,993
   
123,029
   
133,919
   
116,783
   
121,850
 
Commercial HVAC&R
    
28,456
   
27,407
   
31,904
   
24,498
   
18,999
 
Other
    
6,788
   
10,652
   
10,551
   
8,029
   
8,401
 
Segment Sales
  
$
397,994
  
$
370,137
  
$
375,192
  
$
306,380
  
$
290,773
  
Corporate and Administrative
    
793
   
667
   
737
   
1,272
   
1,153
 
Eliminations
    
(1,949
)
  
(1,368
)
  
(895
)
  
(935
)
  
(698
)
Sales from Continuing Operations
  
$
396,838
  
$
369,436
  
$
375,034
  
$
306,717
  
$
291,228
  
Discontinued Operations
    
54,092
   
45,912
   
44,112
   
58,176
   
57,399
 
Total Net Sales
  
$
450,930
  
$
415,348
  
$
419,146
  
$
364,893
  
$
348,627
  
                                 
Operating Income/(Loss)
                                
                                 
Original Equipment - Americas
  
$
20,926
  
$
22,704
  
$
20,339
  
$
19,672
  
$
21,294
  
Original Equipment - Asia
    
2,561
   
(468
)
  
1,778
   
626
   
-
 
Original Equipment - Europe
    
21,015
   
12,837
   
20,990
   
13,920
   
14,176
 
Commercial HVAC&R
    
2,223
   
3,451
   
5,186
   
2,808
   
1,937
 
Other
    
(4,053
)
  
(2,300
)
  
(1,369
)
  
(3,104
)
  
(4,527
)
Segment Income
  
$
42,672
  
$
36,224
  
$
46,924
  
$
33,922
  
$
32,880
  
Corporate and Administrative Expenses
    
(12,984
)
  
(15,494
)
  
(15,654
)
  
(11,771
)
  
(11,751
)
Eliminations
    
29
   
62
   
37
   
38
   
-
 
Other Items Not Allocated to Segments
    
1,128
   
(224
)
  
2,960
   
56
   
(287
)
Segment Income from Continuing Operations
    
30,845
   
20,568
   
34,267
   
22,245
   
20,842
 
Discontinued Operations
    
135
   
162
   
(4,108
)
  
296
   
2,608
 
Discontinued Operations - Cumulative effect of change
                                
in accounting for goodwill impairment
                                
Earnings Before Income Taxes
  
$
30,980
  
$
20,730
  
$
30,159
  
$
22,541
  
$
23,450
  
                                 
                                 
                                 
          Full Year     
Full Year
    
Full Year
        
(In thousands)
          
FY2005
    
FY2004
    
FY2003
        
Sales
                                
Original Equipment - Americas
        
$
590,029
  
$
459,459
  
$
417,317
        
Original Equipment - Asia
          
116,431
   
-
   
-
       
Original Equipment - Europe
          
495,581
   
389,091
   
330,028
       
Commercial HVAC&R
          
102,808
   
88,738
   
85,812
       
Other
          
37,633
   
40,176
   
33,878
       
Segment Sales
        
$
1,342,482
  
$
977,464
  
$
867,035
        
Corporate and Administrative
          
3,829
   
5,874
   
2,423
       
Eliminations
          
(3,895
)
  
(2,663
)
  
(6,469
)
      
Sales from Continuing Operations
        
$
1,342,416
  
$
980,675
  
$
862,989
        
Discontinued Operations
          
205,599
   
225,210
   
231,739
       
Total Net Sales
        
$
1,548,015
  
$
1,205,885
  
$
1,094,728
        
                                 
Operating Income/(Loss)
                                
                                 
Original Equipment - Americas
        
$
84,009
  
$
60,944
  
$
57,919
        
Original Equipment - Asia
          
1,936
   
-
   
-
       
Original Equipment - Europe
          
61,923
   
44,995
   
39,551
       
Commercial HVAC&R
          
13,382
   
11,143
   
11,515
       
Other
          
(11,300
)
  
(12,979
)
  
(11,382
)
      
Segment Income
        
$
149,950
  
$
104,103
  
$
97,603
        
Corporate and Administrative Expenses
          
(54,670
)
  
(46,866
)
  
(44,430
)
      
Eliminations
          
137
   
150
   
131
       
Other Items Not Allocated to Segments
          
2,500
   
80
   
(1,406
)
      
Segment Income from Continuing Operations
          
97,917
   
57,467
   
51,898
       
Discontinued Operations
          
(1,041
)
  
6,244
   
3,129
       
Discontinued Operations - Cumulative effect of change
                                
in accounting for goodwill impairment
                      
(22,830
)
      
Earnings Before Income Taxes
        
$
96,876
  
$
63,711
  
$
32,197