You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: We have a lot of good news to reward.
So I'll start with a brief summary of the highlights.
Q2 results were significantly ahead of our expectations, including higher earnings, margins and cash flow.
Better market conditions combined with significant cost control resulted in a 40% adjusted EBITDA increase.
In addition, we generated $73 million of year-to-date free cash flow, bringing our leverage ratio back to pre-pandemic levels.
Next, we made significant progress on our strategic initiatives this quarter, including an agreement to sell our liquid-cooled automotive business, which makes up the majority of our automotive segment.
Our Board authorized a $50 million share repurchase program.
This is timely, given our improved liquidity position and provides additional flexibility to manage our future cash flows.
And finally, I'd like to make a quick comment on the CEO search.
The process has been going very well, with very good outside candidates.
We are in the final stages of the search and anticipate completing the process within the coming weeks.
Now before turning to the quarterly results, I would like to provide some more details about our automotive announced on page four.
Earlier this week we announced an agreement to sell the majority of our automotive business, which is a significant step in our strategic transformation.
This transaction provides our company with a number of benefits including reallocating capital and resources, the higher-returning industrial businesses, especially those within our building HVAC segment, eliminating significant liabilities relating to future restructuring along with pension costs and additional cash investments.
And finally, this transaction will lower our future capital spending, improving our cash profile.
The transaction includes seven manufacturing locations around the globe, including several in Western Europe and our headquarters in Germany.
It also includes the assets and liabilities associated with these locations.
While not expecting significant proceeds, we are foregoing significant future cash investments, including ongoing capital spending in future liabilities along with pension and other employee-related costs.
Also I want to highlight that this is a leverage-neutral transaction from a covenant standpoint, consistent with the provisions in our credit agreement.
And last, we expect the transaction to close in the first half of calendar 2021 subject to regulatory approvals and customary closing condition.
I would like to provide some additional details on both the liquid-cooled business that we're selling and the air-cooled business that we're planning to address next as part of our overall auto strategy.
Starting with the liquid-cooled business, it's averaged about $300 million in revenues over the last several years.
And has been recently running below that level due to general economic conditions.
As we've discussed in the past, this has historically been a negative cash flow business with the annual capital spending offsetting cash earnings.
In addition, this business has required significant restructuring and would require additional investments going forward.
Given the a large amount of historical investment the liquid-cooled business carries a significant amount of net asset.
Based on the transaction, we anticipate a large non-cash impairment charge in Q3.
Our view is then that this business is back in the hands of the strategic owner that has the size, scale and desire to make the required investments.
Now, moving onto the air-cooled business, which is the remaining business in our automotive segment and includes a plant in Austria and Germany.
This business represents approximately $100 million of revenue and it's currently running at a lower rate due to the global pandemic.
The majority of this business is comprised of automotive condensers, which are produced in Austria.
Again, as previously discussed, this business runs much closer to breakeven on an adjusted EBITDA basis and will require minimal capital going forward.
We're actively exploring alternatives for portions of this business.
And are currently engaged in discussions with interested strategic buyers.
For the right partner, this business has value due to a relatively new facility, industry leading products and intellectual property along with a solid order book.
We have some more work to do, but much of the heavy lifting is complete with the automotive separation done and the recent sale announcement.
We're optimistic about addressing the small amount of remaining business and further reducing future liabilities and cash needs.
Balance cover and second quarter segment results on page six.
CIS sales were down 14% from the prior year, primarily due to COVID-related declines in our commercial HVAC and refrigeration markets along with lower data center sales.
Approximately half the decline relates to lower sales to our largest data-center customer.
As we have previously discussed, the pullback is due to one customer's reduction in construction and is expected to continue through Q4, after which we will begin to see the recovery.
We're actively working on the testing of a next-generation product and are encouraged by the recent order outlook for next year.
We continue to invest in our coating business, where we're receiving positive feedback from our OEM customers on a new coding process.
Adjusted EBITDA was down 7% on lower sales.
But I'm pleased to report the margin improved 70 basis points despite lower revenue.
Good downside conversion was due to cost-savings initiatives taken earlier in the year.
And a good trend with regards to coils margin improvement.
In fact, if we adjust for the negative effect of lower data center sales, the margin would have improved by approximately 300 basis points versus the prior year and lower sales.
The Building HVAC segment had another great quarter with sales up 11% from the prior year.
This was primarily driven by a significant increase in data center sales due to our aggressive growth plans.
Looking forward, we expect continued growth in our data center sales in the coming quarters and projects.
We'll finish the fiscal year up more than 50%.
In addition, we also had a strong preseason orders of heating products, which was partially offset by lower sales of ventilation and air conditioning products.
On the ventilation side, sales for the hospitality market have been hard hit by COVID-19 causing us to shift focus to both the schools and healthcare markets.
We see future growth opportunities with our valuation products given the growing focus on the benefits of proper ventilation.
I want to highlight that adjusted EBITDA increased 42% from the prior year, primarily due to higher sales volume and favorable product mix.
This resulted in a 500 basis point improvement in EBITDA.
The recent performance of this segment also demonstrates the potential for Modine after we complete the exit of the auto business and continue to reallocate capital.
For example, we're leveraging our success in brand in the UK to produce data center products in mainland Europe.
And equally exciting are the increasing opportunities in the US.
We're industrializing computer room air handlers and chillers in our existing US manufacturing sites and are planning to be in production next fiscal year.
Sales in the HDE or heavy duty equipment were down 12% from the prior year but a significant improvement from Q1 as markets continue to stabilize.
Although sales decreased the most of our major end markets, we actually had higher sales to commercial vehicle and off-highway customers in Asia, partially offsetting the declines in North America.
Adjusted EBITDA was up 42% on a 460 basis point margin improvement despite lower sales.
HDE significantly benefited from temporary cost reductions along with permanent actions, including head count reductions taken earlier in the year procurement savings and improved operational performance.
We're cautiously optimistic about further market recoveries in this segment, while balancing the impact of higher material costs and recently announced tariff.
Sales were down 5% from the prior year, which also represents a large sequential improvement from the first quarter.
Auto sales recovered faster than most people anticipated as we saw lower sales in North America and Europe, partially offset by higher sales in Asia.
Adjusted EBITDA improved significantly, up $5.7 million from the prior year, primarily due to cost reductions and other temporary COVID-related savings actions.
Given the large amount of temporary cost reductions, we expect that the auto segment margins will return to more normal levels in the second half of the year.
I want to point out that we do not anticipate that the recent announcement will change how we report our earnings in this segment.
Obviously things can change, but for now, we expect to report segment sales and earnings in a consistent manner until the transaction closes.
As I mentioned at the beginning, our team adjusted to the challenging economic environment earlier in the year by quickly implementing significant cost reductions.
We prepared for the worst case, but we're pleased to see sales rebound and somewhat more quickly than expected.
Second-quarter sales declined by $39 million or 8% compared to the prior year, driven mostly by the global pandemic and associated economic conditions.
Overall, our results benefited from a combination of the markets recovering better than we anticipated and aggressive cost-cutting measures resulting in both temporary and permanent savings.
I'm very pleased to report our gross profit was $81 million, which was higher than the prior year by $5 million on lower sales.
And the gross margin increased by 240 basis points to 17.5%.
SG&A was $17 million or 25% lower than the prior year.
Given the significant uncertainties surrounding the pandemic, we maintain strict cost controls over spending and benefited from previous FTG savings.
Some of the reductions should be viewed as largely temporary, representing about a third of the SG&A savings this quarter.
Another driver of lower SG&A was a significant reduction in auto separation costs.
Adjusted EBITDA of $55 million was better than the prior year by $16 million or 40%.
Please see our appendix for itemized list of adjustments and a full reconciliation to our US GAAP results.
Our second quarter adjustments totaled $7.6 million including $5.5 million from CEO transition costs, mostly related to severance and benefit-related expenses owed to the previous CEO.
Most of these will be paid over multiples.
We also incurred $1.5 million of restructuring expenses related to plant consolidation activities.
And our adjusted earnings per share was $0.43, higher than the prior year by over 200%.
Let's turn to cash flow and debt on slide 11.
I'm pleased to report our free cash flow for the first six months of fiscal '21 was $73 million, which represents a $97 million improvement over the prior year.
The positive cash flow is driven by numerous items including lower spending on the automotive exit strategy, favorable working capital and nominal capital spending.
We used cash in the quarter to repay debt, increasing our available liquidity.
And I'm very pleased to report that our resulting leverage ratio was 2.2, back to pre-pandemic levels and within our target range.
We expect slightly positive cash flow for the remainder of the year, resulting in full year free cash flow of $70 to $80 million.
Anticipated lower second half cash is due to a number of timing factors including the deferral of certain cash items.
For example, we have approximately $20 million in pension contributions along with the phase-out of payroll tax deferral under the care of that.
We also expect higher capital spending in the second half of the fiscal year along with some working capital growth in-line with the recovery.
Overall, the cash-and-debt position is a great story for Modine, especially given the current economic environment.
Like many companies, we're hesitant to provide full-year guidance, especially given the ever-changing dynamics prior of COVID.
Based on the recent results, our full-year outlook is clearly improved.
But we want to be careful not to extrapolate all of the Q2 upside through the balance of the year.
We have a reasonable amount of visibility into our third fiscal quarter ending December 31.
Our Q4 is more uncertain, especially as it expands into calendar 2021.
We expect our net sales to be down between 7% and 12% from the prior year.
And for adjusted EBITDA to be in a range of $155 to $165 million.
While the markets are changing continuously, we expect sequential revenue improvement in the third and fourth quarters.
Positives include good momentum as we enter the heating season and a solid data center order book, plus strong vehicular market trends we also see some higher costs in the second half, particularly related to employee compensation expenses as we reverse some of the temporary cost control measures taken earlier in the year.
As well as higher metals prices, including the negative impact of the newly announced tariffs in the US.
I also want to point out that our outlook includes the automotive business that is subject to the recent sale announcement.
Our full-year results could be different if this or another transaction is completed before fiscal year-end.

user
q2 adjusted earnings per share $0.43.
q2 sales fell 8 percent to $461.4 million.
sees fiscal 2021 year-over-year sales down 7 to 12 percent.
sees fiscal 2021 adjusted ebitda of $155 million to $165 million.
expect some cost increases in second half of our fiscal year.

assistant