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MODINE Always Innovating . Always Improving . NEWS RELEASE FOR IMMEDIATE RELEASE Modine Reports Third Quarter Fiscal 2021 Results Continued market recovery and disciplined cost controls drive higher margins and cash flow Racine , WI - February 4 , 2021 - Modine Manufacturing Company ( NYSE : MOD ) , a diversified global leader in thermal management technology and solutions , today reported financial results for the quarter ended December 31 , 2020 . Third Quarter Highlights : • • • • • Net sales of $ 484.3 million increased 2 percent from the prior year , primarily due to favorable currency impacts Impairment charges related to assets in the automotive segment and income tax valuation allowance charges resulted in a GAAP operating loss of $ 108.7 million and net loss per share of $ 3.81 Adjusted EBITDA of $ 46.7 million , up 7 percent from prior year on a 160 basis point improvement in gross margin Adjusted earnings per share of $ 0.41 , up $ 0.04 from prior year Strong cash flow , with $ 146.5 million of cash flow from operating activities and $ 122.8 million of free cash flow on a year - to - date basis " I appreciate our employees , suppliers and customers who continue to drive performance during this difficult and uncertain time , while remaining equally focused on workplace safety , " said Modine President and Chief Executive Officer , Neil D. Brinker . " The improvements this quarter were driven by the ongoing rebound in our heavy duty markets and another excellent quarter in our Building HVAC segment , resulting from share gains in both heating and data center markets . We remain focused on accelerating our transformation to a diversified industrial company , which includes finalizing the exit of our automotive business . Cash flow remains strong on lower capital spending and working capital control . After my first several weeks with Modine , I see great potential for us to leverage our technical leadership and innovation in thermal management to drive long - term growth and earnings improvements . " Financial Results Net sales increased 2 percent in the third quarter to $ 484.3 million , compared with $ 473.4 million in the prior year . The increase was primarily driven by favorable currency impacts , which totaled approximately $ 11.0 million , and higher sales volume in our Heavy Duty Equipment ( " HDE ” ) segment . These favorable drivers were partially offset by lower sales volume in the Commercial and Industrial Solutions ( " CIS " ) segment . 1