Modine Manufacturing Company (MOD, Financial) filed Quarterly Report for the period ended 2010-12-31.
Modine Manufacturing Co has a market cap of $746.6 million; its shares were traded at around $15.99 with and P/S ratio of 0.6. Hedge Fund Gurus that owns MOD: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns MOD: Mario Gabelli of GAMCO Investors.
Earnings from continuing operations of $6.0 million in the third quarter of fiscal 2011 was an improvement of $3.9 million from the earnings from continuing operations of $2.1 million in the third quarter of fiscal 2010. In addition, diluted earnings per share from continuing operations of $0.13 for the third quarter of fiscal 2011 was an improvement from diluted earnings per share from continuing operations of $0.05 in the third quarter of fiscal 2010. These improvements are primarily related to the higher sales volumes.
Fiscal 2011 year-to-date net sales of $1,051.1 million were $212.8 million higher than the $838.3 million reported in the same period last year driven by overall sales volume improvements. Commercial vehicle and off-highway sales increased approximately 24 percent and 65 percent, respectively, compared to the first nine months of fiscal 2010. This was partially offset by an unfavorable impact of foreign currency exchange rate changes of $27.2 million.
During the first nine months of fiscal 2011, we recorded a $10.2 million provision for income taxes, which represents an effective tax rate of 103.3 percent. This compares to a $2.1 million provision for income taxes recorded during the first nine months of fiscal 2010, which represented an effective tax rate of 33.8 percent. The increase in the provision for income taxes is primarily related to growth in pre-tax earnings in our foreign jurisdictions. During the first nine months of fiscal 2011, we recorded an increase to the valuation allowance of $10.7 million predominantly against the net deferred tax assets in the U.S. as we continue to assess that it is more likely than not that these assets will not be realized in the future. During the first nine months of fiscal 2010, we recorded valuation allowance charges of $6.2 million primarily against the net deferred tax assets in the U.S.
During the second quarter of fiscal 2011, we identified a $3.3 million postretirement curtailment gain related to the closure of the Harrodsburg, Kentucky manufacturing facility, of which $2.9 million related to prior periods and $0.4 million related to the second quarter. We recorded $1.2 million in the Original Equipment – North America segment during the second quarter for the portion of the postretirement curtailment gain that should have been recorded in the fourth quarter of fiscal 2010. We performed a quantitative analysis of the impact of this adjustment on previously issued financial statements, and further considered qualitative factors including the impact of this adjustment on recent and historical earnings trends and that there was no impact on compensation or covenant compliance. After considering both qualitative and quantitative factors, we determined this adjustment was not material to the fiscal 2010 financial statements or the second quarter fiscal 2011 financial statements. As a result of these adjustments, cost of sales decreased $1.2 million, pre-tax and post-tax results increased $1.2 million and diluted loss per share from continuing operations decreased $0.03 for the first nine months of fiscal 2011.
In addition, we determined that $1.7 million of the previously mentioned postretirement curtailment gain should have been recorded in the first quarter of fiscal 2011 and identified a $1.0 million gain from a commercial settlement in the Original Equipment – Europe segment that should have been recorded in the first quarter of fiscal 2011 as well. After considering similar qualitative and quantitative factors to those previously discussed, we determined these first quarter adjustments totaling $2.7 million were not material to the previously issued first quarter fiscal 2011 financial statements. Accordingly, we revised our year-to-date results in the quarterly report for the second quarter of fiscal 2011 and will revise the first quarter fiscal 2011 results prospectively in future filings. The revised first quarter fiscal 2011 results (which are reflected in the fiscal 2011 year to date results) reflect decreased cost of sales of $2.7 million, increased provision for income taxes of $0.4 million, increased income from continuing operations of $2.3 million and increased diluted earnings per share from continuing operations of $0.05.
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Modine Manufacturing Co has a market cap of $746.6 million; its shares were traded at around $15.99 with and P/S ratio of 0.6. Hedge Fund Gurus that owns MOD: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns MOD: Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
During the third quarter of fiscal 2011, we recorded a $1.4 million provision for income taxes, which represents an effective tax rate of 19.2 percent. This compares to a $0.2 million provision for income taxes recorded during the third quarter of fiscal 2010, which represents an effective tax rate of 10.1 percent. We record a provision for income taxes primarily in foreign jurisdictions where we are generating pre-tax profits, such as Brazil, United Kingdom, the Netherlands and Hungary. The provision for income taxes increased from the prior year as we generated more pre-tax profits in these foreign tax jurisdictions. During the third quarter of fiscal 2011, we recorded an increase to the valuation allowance of $0.1 million predominantly against the net deferred tax assets in the U.S. as we continue to assess that it is more likely than not that these assets will not be realized in the future.Earnings from continuing operations of $6.0 million in the third quarter of fiscal 2011 was an improvement of $3.9 million from the earnings from continuing operations of $2.1 million in the third quarter of fiscal 2010. In addition, diluted earnings per share from continuing operations of $0.13 for the third quarter of fiscal 2011 was an improvement from diluted earnings per share from continuing operations of $0.05 in the third quarter of fiscal 2010. These improvements are primarily related to the higher sales volumes.
Fiscal 2011 year-to-date net sales of $1,051.1 million were $212.8 million higher than the $838.3 million reported in the same period last year driven by overall sales volume improvements. Commercial vehicle and off-highway sales increased approximately 24 percent and 65 percent, respectively, compared to the first nine months of fiscal 2010. This was partially offset by an unfavorable impact of foreign currency exchange rate changes of $27.2 million.
During the first nine months of fiscal 2011, we recorded a $10.2 million provision for income taxes, which represents an effective tax rate of 103.3 percent. This compares to a $2.1 million provision for income taxes recorded during the first nine months of fiscal 2010, which represented an effective tax rate of 33.8 percent. The increase in the provision for income taxes is primarily related to growth in pre-tax earnings in our foreign jurisdictions. During the first nine months of fiscal 2011, we recorded an increase to the valuation allowance of $10.7 million predominantly against the net deferred tax assets in the U.S. as we continue to assess that it is more likely than not that these assets will not be realized in the future. During the first nine months of fiscal 2010, we recorded valuation allowance charges of $6.2 million primarily against the net deferred tax assets in the U.S.
During the second quarter of fiscal 2011, we identified a $3.3 million postretirement curtailment gain related to the closure of the Harrodsburg, Kentucky manufacturing facility, of which $2.9 million related to prior periods and $0.4 million related to the second quarter. We recorded $1.2 million in the Original Equipment – North America segment during the second quarter for the portion of the postretirement curtailment gain that should have been recorded in the fourth quarter of fiscal 2010. We performed a quantitative analysis of the impact of this adjustment on previously issued financial statements, and further considered qualitative factors including the impact of this adjustment on recent and historical earnings trends and that there was no impact on compensation or covenant compliance. After considering both qualitative and quantitative factors, we determined this adjustment was not material to the fiscal 2010 financial statements or the second quarter fiscal 2011 financial statements. As a result of these adjustments, cost of sales decreased $1.2 million, pre-tax and post-tax results increased $1.2 million and diluted loss per share from continuing operations decreased $0.03 for the first nine months of fiscal 2011.
In addition, we determined that $1.7 million of the previously mentioned postretirement curtailment gain should have been recorded in the first quarter of fiscal 2011 and identified a $1.0 million gain from a commercial settlement in the Original Equipment – Europe segment that should have been recorded in the first quarter of fiscal 2011 as well. After considering similar qualitative and quantitative factors to those previously discussed, we determined these first quarter adjustments totaling $2.7 million were not material to the previously issued first quarter fiscal 2011 financial statements. Accordingly, we revised our year-to-date results in the quarterly report for the second quarter of fiscal 2011 and will revise the first quarter fiscal 2011 results prospectively in future filings. The revised first quarter fiscal 2011 results (which are reflected in the fiscal 2011 year to date results) reflect decreased cost of sales of $2.7 million, increased provision for income taxes of $0.4 million, increased income from continuing operations of $2.3 million and increased diluted earnings per share from continuing operations of $0.05.
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