CHARLOTTE, NC, Oct. 30, 2024 /PRNewswire/ --
Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading
designer, manufacturer and marketer of intelligent motion solutions
for material handling, today announced financial results for its
fiscal year 2025 second quarter, which ended September 30,
2024.
Second Quarter 2025 Highlights
(compared with prior-year period, except where otherwise
noted)
- Orders increased 16% with a book-to-bill ratio of 1.08x;
Precision conveyance up 42%
- Net sales decreased 6% to $242.3
million reflecting impacts related to Hurricane Helene, the
ramp up of linear motion production in Monterrey, MX and project timing
- Results included $17.5
million2 of non-cash pension settlement expense
and $11.8 million2 for
factory closure and start-up costs as we transitioned manufacturing
to our Monterrey, MX
facility
- GAAP EPS of ($0.52) and
Adjusted EPS1 of $0.70
- Repaid $10 million of debt in
Q2 FY25; Anticipate FY25 debt repayment of $60 million
- Executed $4.9 million of share
repurchases in Q2 FY25 and $5.0
million in early Q3 FY25
"Our commercial and operational initiatives are delivering wins
with new and existing customers in attractive vertical markets and
we delivered one of our highest order quarters in history with 16%
order growth and a book-to-bill ratio of 1.08x in Q2." said
David J. Wilson, President and Chief Executive Officer. "Order
growth, with particular strength in precision conveyance, and an
encouraging funnel of promising opportunities supports our fiscal
2025 guidance and positions us well for fiscal 2026."
"But for the impact of Hurricane Helene, we delivered on our
guidance for the second quarter while transitioning our linear
motion manufacturing activity to Monterrey," continued Wilson. "We remain
confident in our long-term financial objectives and are advancing
the strategic initiatives that will both grow our business and
deliver targeted margin expansion over time."
Second Quarter Fiscal 2025 Sales
|
($ in
millions)
|
Q2 FY25
|
|
Q2 FY24
|
|
Change
|
|
%
Change
|
|
Net sales
|
$
242.3
|
|
$
258.4
|
|
$
(16.1)
|
|
(6.2) %
|
|
U.S. sales
|
$
132.3
|
|
$
145.2
|
|
$
(12.9)
|
|
(8.9) %
|
|
% of total
|
55 %
|
|
56 %
|
|
|
|
|
|
Non-U.S.
sales
|
$
110.0
|
|
$
113.2
|
|
$
(3.2)
|
|
(2.8) %
|
|
% of total
|
45 %
|
|
44 %
|
|
|
|
|
For the quarter, net sales decreased $16.1 million, or 6.2%. In the U.S., sales were
down $12.9 million, or 8.9%. Price
improvement of $1.3 million helped to
offset $14.2 million in lower volume.
Sales outside the U.S. decreased $3.2
million, or 2.8%. Price improvement of $2.5 million helped to offset $6.0 million of lower volume. Favorable foreign
currency translation was $0.3
million.
Second Quarter Fiscal 2025 Operating Results
|
($ in
millions)
|
Q2
FY25
|
|
Q2
FY24
|
|
Change
|
|
%
Change
|
|
Gross profit
|
$ 74.7
|
|
$
100.0
|
|
$
(25.2)
|
|
(25.2) %
|
|
Gross margin
|
30.9 %
|
|
38.7 %
|
|
(780) bps
|
|
|
|
Adjusted Gross
Profit1
|
$ 87.9
|
|
$
100.0
|
|
$
(12.0)
|
|
(12.0) %
|
|
Adjusted Gross
Margin1
|
36.3 %
|
|
38.7 %
|
|
(240) bps
|
|
|
|
Income from
operations
|
$ 10.8
|
|
$ 33.4
|
|
$
(22.5)
|
|
(67.6) %
|
|
Operating
margin
|
4.5 %
|
|
12.9 %
|
|
(840) bps
|
|
|
|
Adjusted Operating
Income1
|
$ 27.0
|
|
$ 34.1
|
|
$
(7.2)
|
|
(21.0) %
|
|
Adjusted Operating
Margin1
|
11.1 %
|
|
13.2 %
|
|
(210) bps
|
|
|
|
Net income
(loss)
|
$ (15.0)
|
|
$ 15.8
|
|
$
(30.9)
|
|
NM
|
|
Net income (loss)
margin
|
(6.2) %
|
|
6.1 %
|
|
(1,230) bps
|
|
|
|
GAAP EPS
|
$ (0.52)
|
|
$ 0.55
|
|
$
(1.07)
|
|
NM
|
|
Adjusted
EPS1
|
$ 0.70
|
|
$ 0.76
|
|
$
(0.06)
|
|
(7.9) %
|
|
Adjusted
EBITDA1
|
$ 39.2
|
|
$ 45.7
|
|
$
(6.6)
|
|
(14.4) %
|
|
Adjusted EBITDA
Margin1
|
16.2 %
|
|
17.7 %
|
|
(150) bps
|
|
|
Adjusted EPS1 excludes, among other adjustments,
amortization of intangible assets. The Company believes this
better represents its inherent earnings power and cash generation
capability.
Third Quarter Fiscal 2025 Guidance
The Company is issuing the following guidance for the third
quarter of fiscal 2025, ending December 31, 2024:
|
Metric
|
Q3
FY25
|
|
Net sales
|
Flat
year-over-year
|
|
Adjusted
EPS3
|
Flat
year-over-year
|
Third quarter 2025 guidance assumes approximately
$8 million of interest expense,
$8 million of amortization, an
effective tax rate of 25% and 28.9 million diluted average shares
outstanding.
The Company is issuing the following guidance for the fiscal
year 2025, ending March 31, 2025:
|
Metric
|
FY25
|
|
Net sales
|
Flat to low-single
digit growth year-over-year
|
|
Adjusted
EPS3
|
Mid-single digit growth
year-over-year
|
|
Capital
Expenditures
|
$20 million to $25
million
|
|
Net Leverage
Ratio3
|
~2.3x
|
Fiscal 2025 guidance assumes approximately $32 million of interest expense, $30 million of amortization, an effective tax
rate of 25% and 29.0 million diluted average shares
outstanding.
Teleconference/Webcast
Columbus McKinnon will host a
conference call today at 10:00 AM Eastern
Time to discuss the Company's financial results and
strategy. The conference call will be accessible through live
webcast and via phone by dialing 1-800-836-8184. The webcast,
earnings release and earnings presentation will be available at the
Company's investor relations website at investors.cmco.com. A
replay of the webcast will also be archived on the Company's
investor relations website and available via phone by dialing
1-888-660-6345 and enter the conference ID number 93312# through
Wednesday, November 6, 2024.
______________________
|
1
|
Adjusted Gross Profit,
Adjusted Gross Margin, Adjusted Operating Income, Adjusted
Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and
Adjusted EPS are non-GAAP financial measures. See
accompanying discussion and reconciliation tables provided in this
release for reconciliations of these non-GAAP financial measures to
the closest corresponding GAAP financial measures.
|
|
2
|
Represents $23.2
million of non-cash pension settlement costs, $11.9 million of
expense related to the closure of our Charlotte, NC factory and
$3.8 million of Monterrey MX start-up costs, which are taxed
at a 24.6% tax rate.
|
|
3
|
The Company has not
reconciled the Adjusted EPS and Net Leverage Ratio guidance to the
most comparable GAAP financial measure outlook because it is not
possible to do so without unreasonable efforts due to the
uncertainty and potential variability of reconciling items, which
are dependent on future events and often outside of management's
control and which could be significant. Because such items cannot
be reasonably predicted with the level of precision required, we
are unable to provide guidance for the comparable GAAP financial
measures. Forward-looking guidance regarding Adjusted EPS and Net
Leverage Ratio is made in a manner consistent with the relevant
definitions and assumptions noted herein and in alignment with the
Company's financial covenants per the Company's Amended and
Restated Credit Agreement.
|
About Columbus
McKinnon
Columbus McKinnon is a leading
worldwide designer, manufacturer and marketer of intelligent motion
solutions that move the world forward and improve lives by
efficiently and ergonomically moving, lifting, positioning, and
securing materials. Key products include hoists, crane components,
precision conveyor systems, rigging tools, light rail workstations,
and digital power and motion control systems. The Company is
focused on commercial and industrial applications that require the
safety and quality provided by its superior design and engineering
know-how. Comprehensive information on Columbus McKinnon is available at
www.cmco.com.
Safe Harbor Statement
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are generally
identified by the use of forward-looking terminology, including the
terms "anticipate," "believe," "continue," "could," "estimate,"
"expect," "illustrative," "intend," "likely," "may," "opportunity,"
"plan," "possible," "potential," "predict," "project," "shall,"
"should," "target," "will," "would" and, in each case, their
negative or other various or comparable terminology. All statements
other than statements of historical facts contained in this
document, including, but are not limited to, statements relating
to: (i) our strategy, outlook and growth prospects, including our
third quarter and fiscal year 2025 net sales and Adjusted EPS, and
our fiscal year 2025 net leverage ratio and capital expenditure
guidance; (ii) our operational and financial targets and capital
allocation policy; (iii) general economic trend and trends in the
industry and markets; (iv) the amount of debt to be paid down by
the Company during fiscal year 2025; (v) the estimated costs and
benefits related to the consolidation of the Company's North
American linear motion operations in Charlotte, North Carolina to its manufacturing
facility in Monterrey, Mexico (vi)
the proper application of generally accepted accounting principles,
which are highly complex and involve many subjective assumptions,
estimates and judgements; and (vii) the competitive environment in
which we operate; are forward looking statements.
Forward-looking statements are not based on historical facts, but
instead represent our current expectations and assumptions
regarding our business, the economy and other future conditions,
and involve known and unknown risks, uncertainties and other
factors that could cause the actual results, performance or
achievements of the Company to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. It is not possible to predict or
identify all such risks. These risks include, but are not limited
to, the risk factors that are described under the section titled
"Risk Factors" in our Annual Report on Form 10-K for the fiscal
year ended March 31, 2024 as well as
in our other filings with the Securities and Exchange Commission,
which are available on its website at www.sec.gov. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Forward-looking statements speak only
as of the date they are made. Columbus
McKinnon undertakes no duty to update publicly any such
forward-looking statement, whether as a result of new information,
future events or otherwise, except as may be required by applicable
law, regulation or other competent legal authority.
|
Contacts:
|
|
|
|
Gregory P.
Rustowicz
|
|
Kristine
Moser
|
|
EVP Finance and
CFO
|
|
VP IR and
Treasurer
|
|
Columbus McKinnon
Corporation
|
|
Columbus McKinnon
Corporation
|
|
716-689-5442
|
|
704-322-2488
|
|
greg.rustowicz@cmco.com
|
|
kristy.moser@cmco.com
|
Financial tables follow.
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Income Statements - UNAUDITED
(In thousands,
except per share and percentage data)
|
|
|
Three Months
Ended
|
|
|
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Change
|
|
Net sales
|
|
$
242,274
|
|
$
258,400
|
|
(6.2) %
|
|
Cost of products
sold
|
|
167,531
|
|
158,424
|
|
5.7 %
|
|
Gross profit
|
|
74,743
|
|
99,976
|
|
(25.2) %
|
|
Gross profit
margin
|
|
30.9 %
|
|
38.7 %
|
|
|
|
Selling
expenses
|
|
26,926
|
|
26,867
|
|
0.2 %
|
|
% of net
sales
|
|
11.1 %
|
|
10.4 %
|
|
|
|
General and
administrative expenses
|
|
23,363
|
|
25,709
|
|
(9.1) %
|
|
% of net
sales
|
|
9.6 %
|
|
9.9 %
|
|
|
|
Research and
development expenses
|
|
6,102
|
|
6,541
|
|
(6.7) %
|
|
% of net
sales
|
|
2.5 %
|
|
2.5 %
|
|
|
|
Amortization of
intangibles
|
|
7,547
|
|
7,508
|
|
0.5 %
|
|
Income from
operations
|
|
10,805
|
|
33,351
|
|
(67.6) %
|
|
Operating
margin
|
|
4.5 %
|
|
12.9 %
|
|
|
|
Interest and debt
expense
|
|
8,352
|
|
10,211
|
|
(18.2) %
|
|
Investment (income)
loss
|
|
(610)
|
|
88
|
|
NM
|
|
Foreign currency
exchange (gain) loss
|
|
(792)
|
|
1,746
|
|
NM
|
|
Other (income) expense,
net
|
|
23,806
|
|
393
|
|
5,957.5 %
|
|
Income (loss) before
income tax expense (benefit)
|
|
(19,951)
|
|
20,913
|
|
NM
|
|
Income tax expense
(benefit)
|
|
(4,908)
|
|
5,100
|
|
NM
|
|
Net income
(loss)
|
|
$
(15,043)
|
|
$
15,813
|
|
NM
|
|
|
|
|
|
|
|
|
Average basic shares
outstanding
|
|
28,869
|
|
28,725
|
|
0.5 %
|
|
Basic income (loss)
per share
|
|
$
(0.52)
|
|
$
0.55
|
|
NM
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding
|
|
28,869
|
|
29,001
|
|
(0.5) %
|
|
Diluted income (loss)
per share
|
|
$
(0.52)
|
|
$
0.55
|
|
NM
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
|
$
0.07
|
|
$
0.07
|
|
|
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Income Statements - UNAUDITED
(In thousands,
except per share and percentage data)
|
|
|
Six Months
Ended
|
|
|
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Change
|
|
Net sales
|
|
$
482,000
|
|
$
493,892
|
|
(2.4) %
|
|
Cost of products
sold
|
|
318,227
|
|
307,266
|
|
3.6 %
|
|
Gross profit
|
|
163,773
|
|
186,626
|
|
(12.2) %
|
|
Gross profit
margin
|
|
34.0 %
|
|
37.8 %
|
|
|
|
Selling
expenses
|
|
54,696
|
|
51,848
|
|
5.5 %
|
|
% of net
sales
|
|
11.3 %
|
|
10.5 %
|
|
|
|
General and
administrative expenses
|
|
49,810
|
|
53,152
|
|
(6.3) %
|
|
% of net
sales
|
|
10.3 %
|
|
10.8 %
|
|
|
|
Research and
development expenses
|
|
12,268
|
|
12,442
|
|
(1.4) %
|
|
% of net
sales
|
|
2.5 %
|
|
2.5 %
|
|
|
|
Amortization of
intangibles
|
|
15,047
|
|
14,385
|
|
4.6 %
|
|
Income from
operations
|
|
31,952
|
|
54,799
|
|
(41.7) %
|
|
Operating
margin
|
|
6.6 %
|
|
11.1 %
|
|
|
|
Interest and debt
expense
|
|
16,587
|
|
18,836
|
|
(11.9) %
|
|
Investment (income)
loss
|
|
(819)
|
|
(454)
|
|
80.4 %
|
|
Foreign currency
exchange (gain) loss
|
|
(398)
|
|
2,230
|
|
NM
|
|
Other (income) expense,
net
|
|
24,484
|
|
605
|
|
3,946.9 %
|
|
Income (loss) before
income tax expense (benefit)
|
|
(7,902)
|
|
33,582
|
|
NM
|
|
Income tax expense
(benefit)
|
|
(1,488)
|
|
8,494
|
|
NM
|
|
Net income
(loss)
|
|
$
(6,414)
|
|
$
25,088
|
|
NM
|
|
|
|
|
|
|
|
|
Average basic shares
outstanding
|
|
28,852
|
|
28,694
|
|
0.6 %
|
|
Basic income (loss)
per share
|
|
$
(0.22)
|
|
$
0.87
|
|
NM
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding
|
|
28,852
|
|
28,962
|
|
(0.4) %
|
|
Diluted income (loss)
per share
|
|
$
(0.22)
|
|
$
0.87
|
|
NM
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
|
$
0.07
|
|
$
0.07
|
|
|
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
September
30,
2024
|
|
March 31,
2024
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
55,683
|
|
$
114,126
|
|
Trade accounts
receivable
|
|
170,669
|
|
171,186
|
|
Inventories
|
|
201,036
|
|
186,091
|
|
Prepaid expenses and
other
|
|
40,357
|
|
42,752
|
|
Total current
assets
|
|
467,745
|
|
514,155
|
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
107,258
|
|
106,395
|
|
Goodwill
|
|
717,982
|
|
710,334
|
|
Other intangibles,
net
|
|
375,598
|
|
385,634
|
|
Marketable
securities
|
|
10,579
|
|
11,447
|
|
Deferred taxes on
income
|
|
1,367
|
|
1,797
|
|
Other assets
|
|
96,355
|
|
96,183
|
|
Total
assets
|
|
$
1,776,884
|
|
$
1,825,945
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade accounts
payable
|
|
$
72,106
|
|
$
83,118
|
|
Accrued
liabilities
|
|
106,847
|
|
127,973
|
|
Current portion of
long-term debt and finance lease obligations
|
|
50,704
|
|
50,670
|
|
Total current
liabilities
|
|
229,657
|
|
261,761
|
|
|
|
|
|
|
Term loan, AR
securitization facility and finance lease obligations
|
|
449,910
|
|
479,566
|
|
Other non current
liabilities
|
|
201,187
|
|
202,555
|
|
Total
liabilities
|
|
$
880,754
|
|
$
943,882
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
287
|
|
288
|
|
Treasury
stock
|
|
(5,946)
|
|
(1,001)
|
|
Additional paid in
capital
|
|
529,599
|
|
527,125
|
|
Retained
earnings
|
|
386,892
|
|
395,328
|
|
Accumulated other
comprehensive loss
|
|
(14,702)
|
|
(39,677)
|
|
Total shareholders'
equity
|
|
$
896,130
|
|
$
882,063
|
|
Total liabilities
and shareholders' equity
|
|
$
1,776,884
|
|
$
1,825,945
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Statements of Cash Flows - UNAUDITED
(In
thousands)
|
|
|
Six Months
Ended
|
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Operating
activities:
|
|
|
|
|
|
Net income
(loss)
|
|
$
(6,414)
|
|
$
25,088
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used for)
operating activities:
|
|
Depreciation and
amortization
|
|
24,028
|
|
22,482
|
|
Deferred income taxes
and related valuation allowance
|
|
(13,662)
|
|
(6,097)
|
|
Net loss (gain) on
sale of real estate, investments and other
|
|
(650)
|
|
(302)
|
|
Non-cash pension
settlement
|
|
23,201
|
|
—
|
|
Stock-based
compensation
|
|
4,175
|
|
5,264
|
|
Amortization of
deferred financing costs
|
|
1,244
|
|
1,106
|
|
Impairment of
operating lease
|
|
3,268
|
|
—
|
|
Loss (gain) on hedging
instruments
|
|
(2)
|
|
554
|
|
Loss (gain) on
disposal of Fixed Assets
|
|
418
|
|
—
|
|
Non-cash lease
expense
|
|
5,202
|
|
4,684
|
|
Changes in
operating assets and liabilities, net of effects of business
acquisitions:
|
|
Trade accounts
receivable
|
|
2,384
|
|
(11,409)
|
|
Inventories
|
|
(12,277)
|
|
(22,415)
|
|
Prepaid expenses and
other
|
|
(11,714)
|
|
(5,868)
|
|
Other
assets
|
|
183
|
|
357
|
|
Trade accounts
payable
|
|
(10,711)
|
|
(5,996)
|
|
Accrued
liabilities
|
|
(6,154)
|
|
(3,085)
|
|
Non-current
liabilities
|
|
(3,889)
|
|
(4,921)
|
|
Net cash provided by
(used for) operating activities
|
|
(1,370)
|
|
(558)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from sales of
marketable securities
|
|
3,153
|
|
1,100
|
|
Purchases of marketable
securities
|
|
(1,993)
|
|
(1,809)
|
|
Capital
expenditures
|
|
(10,068)
|
|
(10,319)
|
|
Purchase of businesses,
net of cash acquired
|
|
—
|
|
(108,145)
|
|
Dividend received from
equity method investment
|
|
—
|
|
144
|
|
Net cash provided by
(used for) investing activities
|
|
(8,908)
|
|
(119,029)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from the
issuance of common stock
|
|
86
|
|
492
|
|
Purchases of treasury
stock
|
|
(4,945)
|
|
—
|
|
Repayment of
debt
|
|
(30,326)
|
|
(25,294)
|
|
Proceeds from issuance
of long-term debt
|
|
—
|
|
120,000
|
|
Fees paid for
borrowings on long-term debt
|
|
—
|
|
(2,859)
|
|
Payment to former
owners of montratec
|
|
(6,711)
|
|
—
|
|
Fees paid for debt
repricing
|
|
(169)
|
|
—
|
|
Cash inflows from
hedging activities
|
|
11,862
|
|
12,084
|
|
Cash outflows from
hedging activities
|
|
(11,809)
|
|
(12,660)
|
|
Payment of
dividends
|
|
(4,038)
|
|
(4,015)
|
|
Other
|
|
(1,789)
|
|
(1,954)
|
|
Net cash provided by
(used for) financing activities
|
|
(47,839)
|
|
85,794
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(326)
|
|
(325)
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
|
(58,443)
|
|
(34,118)
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
$
114,376
|
|
$
133,426
|
|
Cash, cash equivalents,
and restricted cash at end of period
|
|
$
55,933
|
|
$
99,308
|
|
COLUMBUS McKINNON
CORPORATION
Q2 FY
2025 Net Sales Bridge
|
|
|
Quarter
|
|
Year To
Date
|
|
($ in
millions)
|
|
$
Change
|
|
%
Change
|
|
$
Change
|
|
%
Change
|
|
Fiscal 2024 Net
Sales
|
|
$
258.4
|
|
|
|
$
493.9
|
|
|
|
Acquisition
|
|
—
|
|
— %
|
|
2.7
|
|
0.5 %
|
|
Pricing
|
|
3.8
|
|
1.5 %
|
|
7.3
|
|
1.5 %
|
|
Volume
|
|
(20.2)
|
|
(7.8) %
|
|
(21.6)
|
|
(4.4) %
|
|
Foreign currency
translation
|
|
0.3
|
|
0.1 %
|
|
(0.3)
|
|
— %
|
|
Total
change
|
|
$
(16.1)
|
|
(6.2) %
|
|
$
(11.9)
|
|
(2.4) %
|
|
Fiscal 2025 Net
Sales
|
|
$
242.3
|
|
|
|
$
482.0
|
|
|
|
COLUMBUS McKINNON
CORPORATION
Q2 FY
2025 Gross Profit Bridge
|
|
($ in
millions)
|
Quarter
|
|
Year To
Date
|
|
Fiscal 2024 Gross
Profit
|
$
100.0
|
|
$
186.6
|
|
Acquisition
|
—
|
|
0.8
|
|
Price, net of
manufacturing costs changes (incl. inflation)
|
0.1
|
|
3.5
|
|
Monterrey, MX new
factory start-up costs
|
(2.2)
|
|
(3.8)
|
|
Factory and warehouse
consolidation costs
|
(10.8)
|
|
(10.8)
|
|
Sales volume and
mix
|
(12.3)
|
|
(12.1)
|
|
Other
|
(0.3)
|
|
(0.5)
|
|
Foreign currency
translation
|
0.2
|
|
0.1
|
|
Total
change
|
(25.3)
|
|
(22.8)
|
|
Fiscal 2025 Gross
Profit
|
$
74.7
|
|
$
163.8
|
|
U.S. Shipping Days
by Quarter
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
FY25
|
|
64
|
|
63
|
|
60
|
|
62
|
|
249
|
|
|
|
|
|
|
|
|
|
|
|
|
FY24
|
|
63
|
|
62
|
|
61
|
|
62
|
|
248
|
|
COLUMBUS McKINNON
CORPORATION
Additional
Data1
(Unaudited)
|
|
|
Period
Ended
|
|
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
September
30,
2023
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
$
317.6
|
|
|
$
292.8
|
|
|
$
280.8
|
|
|
$
317.7
|
|
|
Long-term
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected to ship
beyond 3 months
|
|
$
172.5
|
|
|
$
156.0
|
|
|
$
144.6
|
|
|
$
148.3
|
|
|
Long-term backlog as
% of total backlog
|
|
54.3
|
%
|
|
53.3
|
%
|
|
51.5
|
%
|
|
46.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt to total
capitalization percentage
|
|
35.8
|
%
|
|
36.6
|
%
|
|
37.5
|
%
|
|
39.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net of cash,
to net total capitalization
|
|
33.2
|
%
|
|
33.3
|
%
|
|
32.0
|
%
|
|
35.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital as a
% of sales 2
|
|
23.3
|
%
|
|
22.5
|
%
|
|
19.1
|
%
|
|
21.8
|
%
|
|
|
Three Months
Ended
|
|
|
September
30,
2024
|
|
June 30,
2024
|
|
March 31,
2024
|
|
September
30,
2023
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales
outstanding
|
|
64.1
|
days
|
|
63.3
|
days
|
|
58.7
|
days
|
|
58.6
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns per
year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(based on cost of
products sold)
|
|
3.3
|
turns
|
|
3.0
|
turns
|
|
3.7
|
turns
|
|
3.1
|
turns
|
|
Days'
inventory
|
|
110.6
|
days
|
|
121.7
|
days
|
|
98.6
|
days
|
|
117.7
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days payables
outstanding
|
|
46.3
|
days
|
|
50.6
|
days
|
|
50.9
|
days
|
|
48.3
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used for) operating activities
|
|
$
9.4
|
|
|
$ (10.8)
|
|
|
$ 38.6
|
|
|
$ 16.7
|
|
|
Capital
expenditures
|
|
$
5.4
|
|
|
$
4.6
|
|
|
$
8.5
|
|
|
$
5.0
|
|
|
Free Cash Flow
3
|
|
$
4.0
|
|
|
$ (15.4)
|
|
|
$ 30.1
|
|
|
$ 11.7
|
|
______________________
|
|
|
1
|
Additional Data:
This data is provided to help investors understand financial and
operational metrics that management uses to measure the Company's
financial performance and identify trends affecting the business.
These measures may not be comparable with or defined in the same
manner as other companies. Components may not add due to
rounding.
|
|
2
|
March 31, 2024 and
September 30, 2023 exclude the impact of the acquisition
of montratec®.
|
|
3
|
Free Cash Flow is a
non-GAAP financial measure. Free Cash Flow is defined as GAAP
net cash provided by (used for) operating activities less capital
expenditures included in the investing activities section of the
consolidated statement of cash flows. See the table above for
the calculation of Free Cash Flow.
|
NON-GAAP FINANCIAL MEASURES
The following information provides definitions and
reconciliations of the non-GAAP financial measures presented in
this earnings release to the most directly comparable financial
measures calculated and presented in accordance with generally
accepted accounting principles (GAAP). The Company has provided
this non-GAAP financial information, which is not calculated or
presented in accordance with GAAP, as information supplemental and
in addition to the financial measures presented in this earnings
release that are calculated and presented in accordance with GAAP.
Such non-GAAP financial measures should not be considered superior
to, as a substitute for or alternative to, and should be considered
in conjunction with, the GAAP financial measures presented in this
earnings release. The non-GAAP financial measures in this earnings
release may differ from similarly titled measures used by other
companies.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Gross Profit to Adjusted Gross Profit
($ in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
2024
|
|
September
30,
2023
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Gross profit
|
$
74,743
|
|
$
99,976
|
|
$ 163,773
|
|
$ 186,626
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Business realignment
costs
|
76
|
|
—
|
|
468
|
|
196
|
|
Hurricane Helene cost
impact
|
171
|
|
—
|
|
171
|
|
—
|
|
Factory and warehouse
consolidation costs
|
10,763
|
|
—
|
|
10,763
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
2,185
|
|
—
|
|
3,810
|
|
—
|
|
Adjusted Gross
Profit
|
$
87,938
|
|
$
99,976
|
|
$ 178,985
|
|
$ 186,822
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 242,274
|
|
$ 258,400
|
|
$ 482,000
|
|
$ 493,892
|
|
|
|
|
|
|
|
|
|
Gross margin
|
30.9 %
|
|
38.7 %
|
|
34.0 %
|
|
37.8 %
|
|
Adjusted Gross
Margin
|
36.3 %
|
|
38.7 %
|
|
37.1 %
|
|
37.8 %
|
Adjusted Gross Profit is defined as gross profit as reported,
adjusted for certain items. Adjusted Gross Margin is defined
as Adjusted Gross Profit divided by net sales. Adjusted Gross
Profit and Adjusted Gross Margin are not measures determined in
accordance with GAAP and may not be comparable with Adjusted Gross
Profit and Adjusted Gross Margin as used by other companies.
Nevertheless, Columbus McKinnon
believes that providing non-GAAP financial measures, such as
Adjusted Gross Profit and Adjusted Gross Margin, are important for
investors and other readers of the Company's financial statements
and assists in understanding the comparison of the current
quarter's gross profit and gross margin to the historical periods'
gross profit, as well as facilitates a more meaningful comparison
of the Company's gross profit and gross margin to that of other
companies.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Income from Operations to Adjusted Operating Income
($ in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
2024
|
|
September
30,
2023
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Income from
operations
|
$ 10,805
|
|
$ 33,351
|
|
$ 31,952
|
|
$ 54,799
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Acquisition deal and
integration costs
|
—
|
|
508
|
|
—
|
|
3,095
|
|
Business realignment
costs
|
281
|
|
40
|
|
1,131
|
|
415
|
|
Factory and warehouse
consolidation costs
|
11,904
|
|
82
|
|
11,904
|
|
199
|
|
Headquarter relocation
costs
|
51
|
|
146
|
|
147
|
|
1,374
|
|
Hurricane Helene cost
impact
|
171
|
|
—
|
|
171
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,751
|
|
—
|
|
7,317
|
|
—
|
|
Adjusted Operating
Income
|
$ 26,963
|
|
$ 34,127
|
|
$ 52,622
|
|
$ 59,882
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
242,274
|
|
$
258,400
|
|
$
482,000
|
|
$
493,892
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
4.5 %
|
|
12.9 %
|
|
6.6 %
|
|
11.1 %
|
|
Adjusted Operating
Margin
|
11.1 %
|
|
13.2 %
|
|
10.9 %
|
|
12.1 %
|
Adjusted Operating Income is defined as income from operations
as reported, adjusted for certain items. Adjusted Operating
Margin is defined as Adjusted Operating Income divided by net
sales. Adjusted Operating Income and Adjusted Operating
Margin are not measures determined in accordance with GAAP and may
not be comparable with Adjusted Operating Income and Adjusted
Operating Margin as used by other companies. Nevertheless,
Columbus McKinnon believes that
providing non-GAAP financial measures, such as Adjusted Operating
Income and Adjusted Operating Margin, are important for investors
and other readers of the Company's financial statements and assists
in understanding the comparison of the current quarter's income
from operations to the historical periods' income from operations
and operating margin, as well as facilitates a more meaningful
comparison of the Company's income from operations and operating
margin to that of other companies.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Net Income and Diluted Earnings per Share to
Adjusted Net Income
and Adjusted Earnings per Share
($ in thousands,
except per share data)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
2024
|
|
September
30,
2023
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Net income
(loss)
|
$
(15,043)
|
|
$ 15,813
|
|
$ (6,414)
|
|
$ 25,088
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
7,547
|
|
7,508
|
|
15,047
|
|
14,385
|
|
Acquisition deal and
integration costs
|
—
|
|
508
|
|
—
|
|
3,095
|
|
Business realignment
costs
|
281
|
|
40
|
|
1,131
|
|
415
|
|
Factory and warehouse
consolidation costs
|
11,904
|
|
82
|
|
11,904
|
|
199
|
|
Headquarter relocation
costs
|
51
|
|
146
|
|
147
|
|
1,374
|
|
Hurricane Helene cost
impact
|
171
|
|
—
|
|
171
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,751
|
|
—
|
|
7,317
|
|
—
|
|
Non-cash pension
settlement expense
|
23,201
|
|
—
|
|
23,201
|
|
—
|
|
Normalize tax rate
1
|
(11,647)
|
|
(2,199)
|
|
(14,242)
|
|
(4,768)
|
|
Adjusted Net
Income
|
$ 20,216
|
|
$ 21,898
|
|
$ 38,262
|
|
$ 39,788
|
|
|
|
|
|
|
|
|
|
GAAP average diluted
shares outstanding
|
28,869
|
|
29,001
|
|
28,852
|
|
28,962
|
|
Add back:
|
|
|
|
|
|
|
|
|
Effect of dilutive
share-based awards
|
205
|
|
—
|
|
253
|
|
—
|
|
Adjusted Diluted Shares
Outstanding
|
$ 29,074
|
|
$ 29,001
|
|
$ 29,105
|
|
$ 28,962
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
$
(0.52)
|
|
$
0.55
|
|
$
(0.22)
|
|
$
0.87
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
$
0.70
|
|
$
0.76
|
|
$
1.31
|
|
$
1.37
|
|
|
|
1
|
Applies a normalized
tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments
above, which are each pre-tax.
|
Adjusted Net Income, Adjusted Diluted Shares Outstanding and
Adjusted EPS are defined as net income (loss) and GAAP EPS as
reported, adjusted for certain items, including amortization of
intangibles, and also adjusted for a normalized tax rate. Adjusted
Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS
are not measures determined in accordance with GAAP and may not be
comparable with the measures used by other companies. Nevertheless,
Columbus McKinnon believes that
providing non-GAAP financial measures, such as Adjusted Net Income,
Adjusted Diluted Shares Outstanding and Adjusted EPS, are important
for investors and other readers of the Company's financial
statements and assists in understanding the comparison of current
periods' net income (loss), average diluted shares outstanding and
GAAP EPS to the historical periods' net income (loss), average
diluted shares outstanding and GAAP EPS, as well as facilitates a
more meaningful comparison of the Company's net income (loss) and
GAAP EPS to that of other companies. The Company believes
that presenting Adjusted Net Income, Adjusted Diluted Shares
Outstanding and Adjusted EPS provides a better understanding of its
earnings power inclusive of adjusting for the non-cash amortization
of intangible assets, reflecting the Company's strategy to grow
through acquisitions as well as organically.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Net Income to Adjusted EBITDA
($ in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
2024
|
|
September
30,
2023
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Net income
(loss)
|
$
(15,043)
|
|
$ 15,813
|
|
$ (6,414)
|
|
$
25,088
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(4,908)
|
|
5,100
|
|
(1,488)
|
|
8,494
|
|
Interest and debt
expense
|
8,352
|
|
10,211
|
|
16,587
|
|
18,836
|
|
Investment (income)
loss
|
(610)
|
|
88
|
|
(819)
|
|
(454)
|
|
Foreign currency
exchange (gain) loss
|
(792)
|
|
1,746
|
|
(398)
|
|
2,230
|
|
Other (income)
expense, net
|
23,806
|
|
393
|
|
24,484
|
|
605
|
|
Depreciation and
amortization expense
|
12,188
|
|
11,592
|
|
24,028
|
|
22,482
|
|
Acquisition deal and
integration costs
|
—
|
|
508
|
|
—
|
|
3,095
|
|
Business realignment
costs
|
281
|
|
40
|
|
1,131
|
|
415
|
|
Factory and warehouse
consolidation costs
|
11,904
|
|
82
|
|
11,904
|
|
199
|
|
Headquarter relocation
costs
|
51
|
|
146
|
|
147
|
|
1,374
|
|
Hurricane Helene cost
impact
|
171
|
|
—
|
|
171
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,751
|
|
—
|
|
7,317
|
|
—
|
|
Adjusted
EBITDA
|
$ 39,151
|
|
$ 45,719
|
|
$ 76,650
|
|
$
82,364
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
242,274
|
|
$
258,400
|
|
$
482,000
|
|
$ 493,892
|
|
|
|
|
|
|
|
|
|
Net income
margin
|
(6.2) %
|
|
6.1 %
|
|
(1.3) %
|
|
5.1 %
|
|
Adjusted EBITDA
Margin
|
16.2 %
|
|
17.7 %
|
|
15.9 %
|
|
16.7 %
|
Adjusted EBITDA is defined as net income (loss) before interest
expense, income taxes, depreciation, amortization, and other
adjustments. Adjusted EBITDA Margin is defined as Adjusted
EBITDA divided by net sales. Adjusted EBITDA and Adjusted
EBITDA Margin are not a measures determined in accordance with GAAP
and may not be comparable with Adjusted EBITDA and Adjusted EBITDA
Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing
non-GAAP financial measures, such as Adjusted EBITDA and Adjusted
EBITDA Margin, are important for investors and other readers of the
Company's financial statements.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Net Leverage Ratio
($ in
thousands)
|
|
|
Twelve Months
Ended
|
|
|
September
30,
2024
|
|
September
30,
2023
|
|
Net income
(loss)
|
|
$
15,123
|
|
$
51,012
|
|
Add back
(deduct):
|
|
|
|
|
|
Annualize EBITDA for
the montratec acquisition1
|
|
—
|
|
5,410
|
|
Annualize synergies
for the montratec acquisition1
|
|
—
|
|
293
|
|
Income tax expense
(benefit)
|
|
4,920
|
|
20,694
|
|
Interest and debt
expense
|
|
35,708
|
|
33,807
|
|
Non-cash pension
settlement
|
|
28,185
|
|
—
|
|
Amortization of
deferred financing costs
|
|
2,487
|
|
1,967
|
|
Stock Compensation
Expense
|
|
10,950
|
|
12,060
|
|
Depreciation and
amortization expense
|
|
47,491
|
|
43,536
|
|
Cost of debt
refinancing
|
|
1,190
|
|
—
|
|
Acquisition deal and
integration costs
|
|
116
|
|
3,606
|
|
Excluded acquisition
deal and integration costs2
|
|
—
|
|
(510)
|
|
Business realignment
costs
|
|
2,583
|
|
2,664
|
|
Excluded business
realignment costs2
|
|
—
|
|
(2,249)
|
|
Factory and warehouse
consolidation costs
|
|
12,449
|
|
199
|
|
Garvey contingent
consideration
|
|
—
|
|
1,230
|
|
Headquarter relocation
costs
|
|
832
|
|
2,370
|
|
Monterrey, MX new
factory start-up costs
|
|
11,806
|
|
—
|
|
Excluded Monterrey, MX
new factory start-up costs3
|
|
(3,664)
|
|
—
|
|
Credit Agreement
Trailing Twelve Month Adjusted EBITDA
|
|
$
170,176
|
|
$
176,089
|
|
|
|
|
|
|
Current portion of
long-term debt and finance lease obligations
|
|
$
50,704
|
|
$
50,636
|
|
Term loan, AR
securitization facility and finance lease obligations
|
|
449,910
|
|
514,205
|
|
Total debt
|
|
$
500,614
|
|
$
564,841
|
|
Standby Letters of
Credit
|
|
15,692
|
|
15,525
|
|
Cash and cash
equivalents
|
|
(55,683)
|
|
(99,058)
|
|
Net Debt
|
|
$
460,623
|
|
$
481,308
|
|
|
|
|
|
|
Net Leverage
Ratio
|
|
2.71x
|
|
2.73x
|
|
|
|
1
|
EBITDA is normalized to
include a full year of the acquired entity and assumes all cost
synergies are achieved in TTM Q2 FY24.
|
|
2
|
The Company's credit
agreement definition of Adjusted EBITDA excludes certain
acquisition deal and integration costs and business realignment
costs that are incurred beyond one year after the close of an
acquisition.
|
|
3
|
The Company's credit
agreement definition of Adjusted EBITDA excludes certain Monterrey,
MX factory start-up costs.
|
Net Debt is defined in the credit agreement as total debt plus
standby letters of credit, net of cash and cash equivalents.
Net Leverage Ratio is defined as Net Debt divided by the Credit
Agreement Trailing Twelve Month Adjusted EBITDA. Credit Agreement
Trailing Twelve Month Adjusted EBITDA is defined as net income
adjusted for interest expense, income taxes, depreciation,
amortization, and other adjustments. Net Debt, Net Leverage Ratio
and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not
measures determined in accordance with GAAP and may not be
comparable with the measures as used by other companies.
Nevertheless, the Company believes that providing non-GAAP
financial measures, such as Net Debt, Net Leverage Ratio and Credit
Agreement Trailing Twelve Month Adjusted EBITDA are important for
investors and other readers of the Company's financial
statements.
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SOURCE Columbus McKinnon Corporation
