Modine Manufacturing Company (NYSE:MOD) Q4 2023 Earnings Conference Call May 25, 2023 11:00 AM ET

Company Participants

Kathy Powers - Vice President, Treasurer and Investor Relations

Neil Brinker - President and Chief Executive Officer

Mick Lucareli - Executive Vice President and Chief Financial Officer

Conference Call Participants

Matt Summerville - D.A. Davidson

Brian Sponheimer - Gabelli Funds

Tim Moore - EF Hutton

Steve Ferazani - Sidoti & Company

Florence Dethy - D.C. Capital Advisors

Operator

Good morning, ladies and gentlemen, and welcome to Modine's Fourth Quarter and Full Year Fiscal 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

And I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer and Investor Relations. Thank you, Ms. Powers, you may begin.

Kathy Powers

Good morning, and thank you for joining our conference call to discuss Modine's fourth quarter and full year fiscal 2023 results.

I'm joined on this call by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer.

We will be using slides for today's presentation, which can be accessed either through the webcast link or by accessing the PDF file posted on the Investor Relations section of our website, modine.com.

On Slide 3 is our notice regarding forward-looking statements. This call will contain forward-looking statements as outlined in our earnings release as well as in our company's filings with the Securities and Exchange Commission.

With that, it is my pleasure to turn the call over to Neil.

Neil Brinker

Thank you, Kathy, and good morning, everyone.

We clearly surpassed our expectations this quarter and delivered record results with sales of $618 million, up 8% and up 11% on constant currency basis. We reported adjusted EBITDA of $66 million, up 16% from the prior year. We generated $24 million of free cash flow and $0.67 of adjusted EPS. This strong performance resulted in a record year that saw the highest sales and adjusted EBITDA in our history.

What is especially remarkable is that these gains were not the result of particularly strong economic conditions, but instead were driven by the internal actions that we've taken over the past two years to transform the company. It is a testament to the value we've unlocked across our business, an example of how a sound focused 80/20 approach can drive higher returns and better margins.