Columbus McKinnon Reports Record Sales and Operating Income for Second Quarter Fiscal Year 2024
Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2024 second quarter, which ended September 30, 2023.
Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2024 second quarter, which ended September 30, 2023. Results include the addition of montratec®, which was acquired on May 31, 2023 ("the acquisition").
Second Quarter Highlights (compared with prior-year period, except where otherwise noted)
- Growth strategy drives record sales of $258.4 million, up 12% over same period in the prior year
- CMBS enables record gross margin of 38.7%; 190 basis point margin expansion sequentially
- Record operating income of $33.4 million, up 22% over prior year
- Expanded financial flexibility while reducing debt; paid down $15 million in debt and increasing debt pay down plans by $10 million to $50 million in fiscal 2024
- Expect to surpass $1 billion in revenue in fiscal 2024; advancing toward fiscal 2027 targets
David J. Wilson, President and CEO, commented, “Our second quarter results reflect the meaningful progress we are making as our team executes toward our fiscal 2027 targets. We achieved several new milestones this quarter including record revenue, gross margin and operating income. Being customer led is a foundational component of the Columbus McKinnon Business System (“CMBS”) which drives continuous improvement, discipline, communication and accountability. We remain laser focused on improving our customers’ experience and our progress has been validated by recent improvements in our net promoter score. The 80/20 process is another key focus area of CMBS with our current priority being product line simplification. Beyond optimizing financial performance, this will lead to improved product offerings, stronger market positioning and the ability to simplify our factory footprint.”
Mr. Wilson noted, “We are clearly building momentum within the organization and expect to surpass $1 billion in revenue in fiscal 2024. We also expect to deliver approximately 150 basis points of year-over-year gross margin expansion, exceeding our previous guidance. We are excited about the prospects for our precision conveyance platform including the recent addition of the montratec business. This, in combination with our organic growth initiatives, is driving the transformation of Columbus McKinnon to a less cyclical, higher growth and more profitable enterprise.”
Second Quarter Fiscal 2024 Sales
|
($ in millions) |
Q2 FY 24 |
|
Q2 FY 23 |
|
Change |
|
% Change |
|||||||
|
Net sales |
$ |
258.4 |
|
|
$ |
231.7 |
|
|
$ |
26.7 |
|
11.5 |
% |
|
|
U.S. sales |
$ |
145.2 |
|
|
$ |
139.7 |
|
|
$ |
5.5 |
|
3.9 |
% |
|
|
% of total |
|
56 |
% |
|
|
60 |
% |
|
|
|
|
|||
|
Non-U.S. sales |
$ |
113.2 |
|
|
$ |
92.0 |
|
|
$ |
21.2 |
|
23.0 |
% |
|
|
% of total |
|
44 |
% |
|
|
40 |
% |
|
|
|
|
|||
For the quarter, net sales increased $26.7 million, or 11.5%. The acquisition contributed $9.5 million, or 4.1%, of the increase in sales. In the U.S., sales were up $5.5 million, or 3.9%, as a result of $4.9 million of price improvement, $0.4 million contribution from the acquisition and $0.2 million of higher volume. Sales outside the U.S. increased $21.2 million, or 23.0%, driven by $9.1 million of sales related to the acquisition, $5.7 million of price improvement and $0.8 million of higher volume. Favorable foreign currency translation was $5.6 million.
Second Quarter Fiscal 2024 Operating Results
|
($ in millions) |
Q2 FY 24 |
|
Q2 FY 23 |
|
Change |
|
% Change |
|||||||
|
Gross profit |
$ |
100.0 |
|
|
$ |
86.3 |
|
|
$ |
13.7 |
|
15.8 |
% |
|
|
Gross margin |
|
38.7 |
% |
|
|
37.2 |
% |
|
150 bps |
|
|
|||
|
Adjusted gross profit* |
$ |
100.0 |
|
|
$ |
86.3 |
|
|
$ |
13.7 |
|
15.8 |
% |
|
|
Adjusted gross margin* |
|
38.7 |
% |
|
|
37.2 |
% |
|
150 bps |
|
|
|||
|
Income from operations |
$ |
33.4 |
|
|
$ |
27.4 |
|
|
$ |
6.0 |
|
21.8 |
% |
|
|
Operating margin |
|
12.9 |
% |
|
|
11.8 |
% |
|
110 bps |
|
|
|||
|
Adjusted income from operations* |
$ |
34.1 |
|
|
$ |
28.6 |
|
|
$ |
5.5 |
|
19.2 |
% |
|
|
Adjusted operating margin* |
|
13.2 |
% |
|
|
12.4 |
% |
|
80 bps |
|
|
|||
|
Net income |
$ |
15.8 |
|
|
$ |
14.1 |
|
|
$ |
1.7 |
|
12.0 |
% |
|
|
Net income margin |
|
6.1 |
% |
|
|
6.1 |
% |
|
0 bps |
|
|
|||
|
Diluted EPS |
$ |
0.55 |
|
|
$ |
0.49 |
|
|
$ |
0.06 |
|
12.2 |
% |
|
|
Adjusted EPS* |
$ |
0.76 |
|
|
$ |
0.73 |
|
|
$ |
0.03 |
|
4.1 |
% |
|
|
Adjusted EBITDA* |
$ |
45.7 |
|
|
$ |
39.0 |
|
|
$ |
6.7 |
|
17.1 |
% |
|
|
Adjusted EBITDA margin* |
|
17.7 |
% |
|
|
16.8 |
% |
|
90 bps |
|
|
|||
|
*Adjusted gross profit, adjusted gross margin, adjusted income from operations, adjusted operating margin, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding adjusted income from operations, adjusted operating margin, and adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA. |
Adjusted earnings per diluted share of $0.76 excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.
Third Quarter Fiscal 2024 Outlook
Columbus McKinnon expects third quarter fiscal 2024 sales of approximately $245 million to $255 million at current exchange rates. This represents 9% growth year-over-year at the midpoint of the range.
Mr. Wilson concluded, “This quarter’s record financial performance provides additional proof points that demonstrate progress toward our fiscal 2027 targets. Given these results, we are accelerating debt repayment even as we invest in improving productivity and simplifying our footprint. We now expect our net leverage ratio to be approximately 2.3x1 by the end of fiscal 2024. As we execute our strategy, we are building an enterprise that can deliver stronger growth and increased profitability as we advance the transformation of Columbus McKinnon.”
|
1On a financial covenant basis per Amended and Restated Credit Agreement |
Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which management will review the Company’s financial results and strategy. The review will be accompanied by a slide presentation, which will be available on Columbus McKinnon’s website at investors.cmco.com/. A question-and-answer session will follow the formal discussion.
The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.cmco.com/. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Wednesday, November 8, 2023. To listen to the archived call, dial 412-317-6671 and enter the conference ID number 13741338. Alternatively, an archived webcast of the call can be found on the Company’s website and a transcript of the call will be posted there once available.
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 statements include, but are not limited to, statements concerning expected growth, future sales and future gross margin expansion, and future potential to deliver results; the execution of its strategy and further transformation of the Company with stronger growth, less cyclicality and higher margins, and achievement of the Company’s fiscal 2027 goals and certain other goals; and the amount and timing of future debt repayments by the Company. These statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its financial targets including as to revenue and gross margin, and to execute CMBS and the Core Growth Framework; global economic and business conditions affecting the industries served by the Company and its subsidiaries including COVID-19; the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. Consequently, such forward-looking statements should be regarded as current plans, estimates and beliefs. Except as required by applicable law, the Company assumes no obligation to update the forward-looking information contained in this release.
Financial tables follow.
|
COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data) |
|||||||||||
|
|
|
Three Months Ended |
|
|
|||||||
|
|
|
September 30, |
|
September 30, |
|
Change |
|||||
|
Net sales |
|
$ |
258,400 |
|
|
$ |
231,740 |
|
|
11.5 |
% |
|
Cost of products sold |
|
|
158,424 |
|
|
|
145,430 |
|
|
8.9 |
% |
|
Gross profit |
|
|
99,976 |
|
|
|
86,310 |
|
|
15.8 |
% |
|
Gross profit margin |
|
|
38.7 |
% |
|
|
37.2 |
% |
|
|
|
|
Selling expenses |
|
|
26,867 |
|
|
|
25,617 |
|
|
4.9 |
% |
|
% of net sales |
|
|
10.4 |
% |
|
|
11.1 |
% |
|
|
|
|
General and administrative expenses |
|
|
25,709 |
|
|
|
21,413 |
|
|
20.1 |
% |
|
% of net sales |
|
|
9.9 |
% |
|
|
9.2 |
% |
|
|
|
|
Research and development expenses |
|
|
6,541 |
|
|
|
5,461 |
|
|
19.8 |
% |
|
% of net sales |
|
|
2.5 |
% |
|
|
2.4 |
% |
|
|
|
|
Amortization of intangibles |
|
|
7,508 |
|
|
|
6,447 |
|
|
16.5 |
% |
|
Income from operations |
|
$ |
33,351 |
|
|
$ |
27,372 |
|
|
21.8 |
% |
|
Operating margin |
|
|
12.9 |
% |
|
|
11.8 |
% |
|
|
|
|
Interest and debt expense |
|
|
10,211 |
|
|
|
6,768 |
|
|
50.9 |
% |
|
Investment (income) loss |
|
|
88 |
|
|
|
312 |
|
|
(71.8 |
)% |
|
Foreign currency exchange (gain) loss |
|
|
1,746 |
|
|
|
1,003 |
|
|
74.1 |
% |
|
Other (income) expense, net |
|
|
393 |
|
|
|
222 |
|
|
77.0 |
% |
|
Income (loss) before income tax expense (benefit) |
|
$ |
20,913 |
|
|
|
19,067 |
|
|
9.7 |
% |
|
Income tax expense (benefit) |
|
|
5,100 |
|
|
|
4,953 |
|
|
3.0 |
% |
|
Net income (loss) |
|
$ |
15,813 |
|
|
$ |
14,114 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average basic shares outstanding |
|
|
28,725 |
|
|
|
28,619 |
|
|
0.4 |
% |
|
Basic income (loss) per share |
|
$ |
0.55 |
|
|
$ |
0.49 |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average diluted shares outstanding |
|
|
29,001 |
|
|
|
28,748 |
|
|
0.9 |
% |
|
Diluted income (loss) per share |
|
$ |
0.55 |
|
|
$ |
0.49 |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|||||
|
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, |
|
September 30, |
|
Change |
|||||
|
Net sales |
|
$ |
493,892 |
|
|
$ |
452,027 |
|
|
9.3 |
% |
|
Cost of products sold |
|
|
307,266 |
|
|
|
283,191 |
|
|
8.5 |
% |
|
Gross profit |
|
|
186,626 |
|
|
|
168,836 |
|
|
10.5 |
% |
|
Gross profit margin |
|
|
37.8 |
% |
|
|
37.4 |
% |
|
|
|
|
Selling expenses |
|
|
51,848 |
|
|
|
51,773 |
|
|
0.1 |
% |
|
% of net sales |
|
|
10.5 |
% |
|
|
11.5 |
% |
|
|
|
|
General and administrative expenses |
|
|
53,152 |
|
|
|
43,299 |
|
|
22.8 |
% |
|
% of net sales |
|
|
10.8 |
% |
|
|
9.6 |
% |
|
|
|
|
Research and development expenses |
|
|
12,442 |
|
|
|
10,591 |
|
|
17.5 |
% |
|
% of net sales |
|
|
2.5 |
% |
|
|
2.3 |
% |
|
|
|
|
Amortization of intangibles |
|
|
14,385 |
|
|
|
12,982 |
|
|
10.8 |
% |
|
Income from operations |
|
|
54,799 |
|
|
|
50,191 |
|
|
9.2 |
% |
|
Operating margin |
|
|
11.1 |
% |
|
|
11.1 |
% |
|
|
|
|
Interest and debt expense |
|
|
18,836 |
|
|
|
12,971 |
|
|
45.2 |
% |
|
Investment (income) loss |
|
|
(454 |
) |
|
|
742 |
|
|
NM |
|
|
Foreign currency exchange (gain) loss |
|
|
2,230 |
|
|
|
2,206 |
|
|
1.1 |
% |
|
Other (income) expense, net |
|
|
605 |
|
|
|
(2,079 |
) |
|
NM |
|
|
Income (loss) before income tax expense (benefit) |
|
|
33,582 |
|
|
|
36,351 |
|
|
(7.6 |
)% |
|
Income tax expense (benefit) |
|
|
8,494 |
|
|
|
13,846 |
|
|
(38.7 |
)% |
|
Net income (loss) |
|
|
25,088 |
|
|
|
22,505 |
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average basic shares outstanding |
|
|
28,694 |
|
|
|
28,581 |
|
|
0.4 |
% |
|
Basic income (loss) per share |
|
$ |
0.87 |
|
|
$ |
0.79 |
|
|
10.1 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average diluted shares outstanding |
|
|
28,962 |
|
|
|
28,733 |
|
|
0.8 |
% |
|
Diluted income (loss) per share |
|
$ |
0.87 |
|
|
$ |
0.78 |
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|||||
|
Dividends declared per common share |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
|
|
|
COLUMBUS McKINNON CORPORATION Condensed Consolidated Balance Sheets (In thousands) |
||||||||
|
|
|
September 30, |
|
March 31, |
||||
|
|
|
(Unaudited) |
|
|
||||
|
ASSETS |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
99,058 |
|
|
$ |
133,176 |
|
|
Trade accounts receivable |
|
$ |
166,390 |
|
|
$ |
151,451 |
|
|
Inventories |
|
$ |
204,997 |
|
|
$ |
179,359 |
|
|
Prepaid expenses and other |
|
$ |
40,749 |
|
|
$ |
32,254 |
|
|
Total current assets |
|
$ |
511,194 |
|
|
$ |
496,240 |
|
|
|
|
|
|
|
||||
|
Property, plant, and equipment, net |
|
$ |
100,602 |
|
|
$ |
94,360 |
|
|
Goodwill |
|
$ |
717,572 |
|
|
$ |
644,629 |
|
|
Other intangibles, net |
|
$ |
397,388 |
|
|
$ |
362,537 |
|
|
Marketable securities |
|
$ |
10,807 |
|
|
$ |
10,368 |
|
|
Deferred taxes on income |
|
$ |
2,206 |
|
|
$ |
2,035 |
|
|
Other assets |
|
$ |
87,632 |
|
|
$ |
88,286 |
|
|
Total assets |
|
$ |
1,827,401 |
|
|
$ |
1,698,455 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Trade accounts payable |
|
$ |
71,446 |
|
|
$ |
76,736 |
|
|
Accrued liabilities |
|
$ |
141,532 |
|
|
$ |
124,317 |
|
|
Current portion of long-term debt and finance lease obligations |
|
$ |
50,636 |
|
|
$ |
40,604 |
|
|
Total current liabilities |
|
$ |
263,614 |
|
|
$ |
241,657 |
|
|
|
|
|
|
|
||||
|
Term loan, AR securitization facility and finance lease obligations |
|
$ |
514,205 |
|
|
$ |
430,988 |
|
|
Other non current liabilities |
|
$ |
195,584 |
|
|
$ |
192,013 |
|
|
Total liabilities |
|
$ |
973,403 |
|
|
$ |
864,658 |
|
|
|
|
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
|
||||
|
Common stock |
|
$ |
287 |
|
|
$ |
286 |
|
|
Treasury stock |
|
$ |
(1,001 |
) |
|
$ |
(1,001 |
) |
|
Additional paid in capital |
|
$ |
519,593 |
|
|
$ |
515,797 |
|
|
Retained earnings |
|
$ |
379,834 |
|
|
$ |
356,758 |
|
|
Accumulated other comprehensive loss |
|
$ |
(44,715 |
) |
|
$ |
(38,043 |
) |
|
Total shareholders’ equity |
|
$ |
853,998 |
|
|
$ |
833,797 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,827,401 |
|
|
$ |
1,698,455 |
|
|
COLUMBUS McKINNON CORPORATION Condensed Consolidated Statements of Cash Flows - UNAUDITED (In thousands) |
||||||||
|
|
|
Six Months Ended |
||||||
|
|
|
September 30, |
|
September 30, |
||||
|
Operating activities: |
|
|
|
|
||||
|
Net income (loss) |
|
$ |
25,088 |
|
|
$ |
22,505 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
$ |
22,482 |
|
|
$ |
20,893 |
|
|
Deferred income taxes and related valuation allowance |
|
$ |
(6,097 |
) |
|
$ |
(698 |
) |
|
Net loss (gain) on sale of real estate, investments and other |
|
$ |
(302 |
) |
|
$ |
852 |
|
|
Stock-based compensation |
|
$ |
5,264 |
|
|
$ |
3,629 |
|
|
Amortization of deferred financing costs |
|
$ |
1,106 |
|
|
$ |
860 |
|
|
Loss (gain) on hedging instruments |
|
$ |
554 |
|
|
$ |
(714 |
) |
|
Gain on sale of building |
|
$ |
— |
|
|
$ |
(232 |
) |
|
Loss on retirement of fixed asset |
|
$ |
— |
|
|
$ |
175 |
|
|
Non-cash lease expense |
|
$ |
4,684 |
|
|
$ |
3,843 |
|
|
Changes in operating assets and liabilities, net of effects of business acquisitions: |
|
|
|
|
||||
|
Trade accounts receivable |
|
$ |
(11,409 |
) |
|
$ |
381 |
|
|
Inventories |
|
$ |
(22,415 |
) |
|
$ |
(30,754 |
) |
|
Prepaid expenses and other |
|
$ |
(5,868 |
) |
|
$ |
2,321 |
|
|
Other assets |
|
$ |
357 |
|
|
$ |
24 |
|
|
Trade accounts payable |
|
$ |
(5,996 |
) |
|
$ |
(11,267 |
) |
|
Accrued liabilities |
|
$ |
(3,085 |
) |
|
$ |
(3,124 |
) |
|
Non-current liabilities |
|
$ |
(4,921 |
) |
|
$ |
(2,545 |
) |
|
Net cash provided by (used for) operating activities |
|
$ |
(558 |
) |
|
$ |
6,149 |
|
|
|
|
|
|
|
||||
|
Investing activities: |
|
|
|
|
||||
|
Proceeds from sales of marketable securities |
|
$ |
1,100 |
|
|
$ |
1,900 |
|
|
Purchases of marketable securities |
|
$ |
(1,809 |
) |
|
$ |
(2,709 |
) |
|
Capital expenditures |
|
$ |
(10,319 |
) |
|
$ |
(5,288 |
) |
|
Proceeds from sale of building, net of transaction costs |
|
$ |
— |
|
|
$ |
373 |
|
|
Purchase of businesses, net of cash acquired |
|
$ |
(108,145 |
) |
|
$ |
(1,616 |
) |
|
Dividend received from equity method investment |
|
$ |
144 |
|
|
$ |
313 |
|
|
Net cash provided by (used for) investing activities |
|
$ |
(119,029 |
) |
|
$ |
(7,027 |
) |
|
|
|
|
|
|
||||
|
Financing activities: |
|
|
|
|
||||
|
Proceeds from the issuance of common stock |
|
$ |
492 |
|
|
$ |
621 |
|
|
Repayment of debt |
|
$ |
(25,294 |
) |
|
$ |
(20,264 |
) |
|
Proceeds from issuance of long-term debt |
|
$ |
120,000 |
|
|
$ |
— |
|
|
Fees paid for borrowings on long-term debt |
|
$ |
(2,859 |
) |
|
$ |
— |
|
|
Cash inflows from hedging activities |
|
$ |
12,084 |
|
|
$ |
12,306 |
|
|
Cash outflows from hedging activities |
|
$ |
(12,660 |
) |
|
$ |
(11,689 |
) |
|
Payment of dividends |
|
$ |
(4,015 |
) |
|
$ |
(4,001 |
) |
|
Other |
|
$ |
(1,954 |
) |
|
$ |
(1,375 |
) |
|
Net cash provided by (used for) financing activities |
|
$ |
85,794 |
|
|
$ |
(24,402 |
) |
|
|
|
|
|
|
||||
|
Effect of exchange rate changes on cash |
|
$ |
(325 |
) |
|
$ |
(1,245 |
) |
|
|
|
|
|
|
||||
|
Net change in cash and cash equivalents |
|
$ |
(34,118 |
) |
|
$ |
(26,525 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
$ |
133,426 |
|
|
$ |
115,640 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
99,308 |
|
|
$ |
89,115 |
|
|
COLUMBUS McKINNON CORPORATION Q2 FY 2024 Sales Bridge |
||||||||||||
|
|
|
Quarter |
|
Year To Date |
||||||||
|
($ in millions) |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
||||
|
Fiscal 2023 Sales |
|
$ |
231.7 |
|
|
|
$ |
452.0 |
|
|
||
|
Acquisition |
|
|
9.5 |
|
4.1 |
% |
|
|
12.2 |
|
2.7 |
% |
|
Volume |
|
|
1.0 |
|
0.4 |
% |
|
|
2.2 |
|
0.5 |
% |
|
Pricing |
|
|
10.6 |
|
4.6 |
% |
|
|
21.6 |
|
4.8 |
% |
|
Foreign currency translation |
|
|
5.6 |
|
2.4 |
% |
|
|
5.9 |
|
1.3 |
% |
|
Total change |
|
$ |
26.7 |
|
11.5 |
% |
|
$ |
41.9 |
|
9.3 |
% |
|
Fiscal 2024 Sales |
|
$ |
258.4 |
|
|
|
$ |
493.9 |
|
|
||
|
COLUMBUS McKINNON CORPORATION Q2 FY 2024 Gross Profit Bridge |
|||||||
|
($ in millions) |
Quarter |
|
Year To Date |
||||
|
Fiscal 2023 Gross Profit |
$ |
86.3 |
|
$ |
168.8 |
|
|
|
Price, net of manufacturing costs changes (incl. inflation) |
|
5.7 |
|
|
11.2 |
|
|
|
Sales volume and mix |
|
0.6 |
|
|
(1.5 |
) |
|
|
Acquisition |
|
5.5 |
|
|
6.3 |
|
|
|
Current year business realignment costs |
|
— |
|
|
(0.2 |
) |
|
|
Foreign currency translation |
|
1.9 |
|
|
2.0 |
|
|
|
Total change |
|
13.7 |
|
|
17.8 |
|
|
|
Fiscal 2024 Gross Profit |
$ |
100.0 |
|
$ |
186.6 |
|
|
|
U.S. Shipping Days by Quarter |
||||||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
FY 24 |
|
63 |
|
62 |
|
61 |
|
62 |
|
248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 23 |
|
63 |
|
64 |
|
60 |
|
63 |
|
250 |
|
COLUMBUS McKINNON CORPORATION Additional Data(1) (Unaudited) |
|||||||||||||||||
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
September 30, |
|||||||||
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Backlog |
|
$ |
317.7 |
|
|
$ |
355.3 |
|
|
|
$ |
308.7 |
|
|
$ |
327.8 |
|
|
Long-term backlog |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Expected to ship beyond 3 months |
|
$ |
148.3 |
|
|
$ |
177.3 |
|
|
|
$ |
142.0 |
|
|
$ |
161.2 |
|
|
Long-term backlog as % of total backlog |
|
|
46.7 |
% |
|
|
49.9 |
|
% |
|
|
46.0 |
% |
|
|
49.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Days sales outstanding(2) |
|
|
58.6 |
days |
|
|
62.9 |
|
days |
|
|
54.3 |
days |
|
|
55.1 |
days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Inventory turns per year(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(based on cost of products sold) |
|
|
3.1 |
turns |
|
|
2.9 |
|
turns |
|
|
3.6 |
turns |
|
|
3.0 |
turns |
|
Days' inventory |
|
|
117.7 |
days |
|
|
125.9 |
|
days |
|
|
101.4 |
days |
|
|
121.0 |
days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Days payables outstanding(2) |
|
|
48.3 |
days |
|
|
53.3 |
|
days |
|
|
53.3 |
days |
|
|
59.4 |
days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Working capital as a % of sales (3)(4) |
|
|
21.8 |
% |
|
|
21.4 |
|
% |
|
|
17.3 |
% |
|
|
20.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net cash provided by (used for) operating activities |
|
$ |
16.7 |
|
|
$ |
(17.2 |
) |
|
|
$ |
66.7 |
|
|
$ |
17.3 |
|
|
Capital expenditures |
|
$ |
5.0 |
|
|
$ |
5.3 |
|
|
|
$ |
3.1 |
|
|
$ |
2.3 |
|
|
Free cash flow (5) |
|
$ |
11.7 |
|
|
$ |
(22.5 |
) |
|
|
$ |
63.6 |
|
|
$ |
15.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt to total capitalization percentage |
|
|
39.8 |
% |
|
|
40.6 |
|
% |
|
|
36.1 |
% |
|
|
38.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt, net of cash, to net total capitalization |
|
|
35.3 |
% |
|
|
35.8 |
|
% |
|
|
28.9 |
% |
|
|
33.9 |
% |
|
(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. |
|
(2)June 30, 2023 figures exclude the impact of the acquisition. |
|
(3)June 30, 2023 and September 30, 2023 exclude the impact of the acquisition. |
|
(4)September 30, 2022 figure excludes the impact of the acquisition of Garvey Corporation. |
|
(5) Free cash flow is defined as net cash provided by (used for) operating activities less capital expenditures. Free cash flow is not a measure determined in accordance with GAAP, and may not be comparable with the measures as defined or used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as free cash flow, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s free cash flow to free cash flow for historical periods. |
|
Components may not add due to rounding. |
|
COLUMBUS McKINNON CORPORATION Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit ($ in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|||||||||
|
GAAP gross profit |
$ |
99,976 |
|
|
$ |
86,310 |
|
|
$ |
186,626 |
|
|
$ |
168,836 |
|
|
|
Add back (deduct): |
|
|
|
|
|
|
|
|||||||||
|
Business realignment costs |
|
— |
|
|
|
— |
|
|
|
196 |
|
|
|
— |
|
|
|
Non-GAAP adjusted gross profit |
$ |
99,976 |
|
|
$ |
86,310 |
|
|
$ |
186,822 |
|
|
$ |
168,836 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net sales |
$ |
258,400 |
|
|
$ |
231,740 |
|
|
$ |
493,892 |
|
|
$ |
452,027 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross margin - GAAP |
|
38.7 |
% |
|
|
37.2 |
% |
|
|
37.8 |
% |
|
|
37.4 |
% |
|
|
Adjusted gross margin - Non-GAAP |
|
38.7 |
% |
|
|
37.2 |
% |
|
|
37.8 |
% |
|
|
37.4 |
% |
|
Adjusted gross profit is defined as gross profit as reported, adjusted for certain items. Adjusted gross profit is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as adjusted gross profit, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's gross profit to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit to that of other companies.
|
COLUMBUS McKINNON CORPORATION Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations ($ in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|||||||||
|
GAAP income from operations |
$ |
33,351 |
|
|
$ |
27,372 |
|
|
$ |
54,799 |
|
|
$ |
50,191 |
|
|
|
Add back (deduct): |
|
|
|
|
|
|
|
|||||||||
|
Acquisition deal and integration costs |
|
508 |
|
|
|
19 |
|
|
|
3,095 |
|
|
|
105 |
|
|
|
Business realignment costs |
|
40 |
|
|
|
1,233 |
|
|
|
415 |
|
|
|
2,890 |
|
|
|
North American warehouse consolidation |
|
82 |
|
|
|
— |
|
|
|
199 |
|
|
|
— |
|
|
|
Headquarter relocation costs |
|
146 |
|
|
|
— |
|
|
|
1,374 |
|
|
|
— |
|
|
|
Non-GAAP adjusted income from operations |
$ |
34,127 |
|
|
$ |
28,624 |
|
|
$ |
59,882 |
|
|
$ |
53,186 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net sales |
$ |
258,400 |
|
|
$ |
231,740 |
|
|
$ |
493,892 |
|
|
$ |
452,027 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Operating margin - GAAP |
|
12.9 |
% |
|
|
11.8 |
% |
|
|
11.1 |
% |
|
|
11.1 |
% |
|
|
Adjusted operating margin - Non-GAAP |
|
13.2 |
% |
|
|
12.4 |
% |
|
|
12.1 |
% |
|
|
11.8 |
% |
|
Adjusted income from operations is defined as income from operations as reported, adjusted for certain items. Adjusted income from operations is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as adjusted income from operations, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's income from operations to the historical periods' income from operations, as well as facilitates a more meaningful comparison of the Company’s income from operations to that of other companies.
|
COLUMBUS McKINNON CORPORATION Reconciliation of GAAP Net Income and Diluted Earnings per Share to Non-GAAP Adjusted Net Income and Diluted Earnings per Share ($ in thousands, except per share data) |
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||
|
GAAP net income |
|
15,813 |
|
|
|
14,114 |
|
|
|
25,088 |
|
|
|
22,505 |
|
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
|
Amortization of intangibles |
|
7,508 |
|
|
|
6,447 |
|
|
|
14,385 |
|
|
|
12,982 |
|
|
Acquisition deal and integration costs |
|
508 |
|
|
|
19 |
|
|
|
3,095 |
|
|
|
105 |
|
|
Business realignment costs |
|
40 |
|
|
|
1,233 |
|
|
|
415 |
|
|
|
2,890 |
|
|
North American warehouse consolidation |
|
82 |
|
|
|
— |
|
|
|
199 |
|
|
|
— |
|
|
Headquarter relocation costs |
|
146 |
|
|
|
— |
|
|
|
1,374 |
|
|
|
— |
|
|
Normalize tax rate (1) |
|
(2,199 |
) |
|
|
(938 |
) |
|
|
(4,768 |
) |
|
|
2,333 |
|
|
Non-GAAP adjusted net income |
|
21,898 |
|
|
|
20,875 |
|
|
|
39,788 |
|
|
|
40,815 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average diluted shares outstanding |
|
29,001 |
|
|
|
28,748 |
|
|
|
28,962 |
|
|
|
28,733 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted income per share - GAAP |
$ |
0.55 |
|
|
$ |
0.49 |
|
|
$ |
0.87 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted diluted income per share - Non-GAAP |
$ |
0.76 |
|
|
$ |
0.73 |
|
|
$ |
1.37 |
|
|
$ |
1.42 |
|
|
(1) Applies a normalized tax rate of 25% in fiscal 2024 and 22% in fiscal 2023 to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax. |
Adjusted net income and adjusted diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted net income and adjusted diluted EPS are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as 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 and adjusted diluted EPS, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's net income and diluted EPS to the historical periods' net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting adjusted diluted 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 GAAP Net Income to Non-GAAP Adjusted EBITDA ($ in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|||||||||
|
GAAP net income |
$ |
15,813 |
|
|
$ |
14,114 |
|
|
$ |
25,088 |
|
|
$ |
22,505 |
|
|
|
Add back (deduct): |
|
|
|
|
|
|
|
|||||||||
|
Income tax expense (benefit) |
|
5,100 |
|
|
|
4,953 |
|
|
|
8,494 |
|
|
|
13,846 |
|
|
|
Interest and debt expense |
|
10,211 |
|
|
|
6,768 |
|
|
|
18,836 |
|
|
|
12,971 |
|
|
|
Investment (income) loss |
|
88 |
|
|
|
312 |
|
|
|
(454 |
) |
|
|
742 |
|
|
|
Foreign currency exchange (gain) loss |
|
1,746 |
|
|
|
1,003 |
|
|
|
2,230 |
|
|
|
2,206 |
|
|
|
Other (income) expense, net |
|
393 |
|
|
|
222 |
|
|
|
605 |
|
|
|
(2,079 |
) |
|
|
Depreciation and amortization expense |
|
11,592 |
|
|
|
10,424 |
|
|
|
22,482 |
|
|
|
20,893 |
|
|
|
Acquisition deal and integration costs |
|
508 |
|
|
|
19 |
|
|
|
3,095 |
|
|
|
105 |
|
|
|
Business realignment costs |
|
40 |
|
|
|
1,233 |
|
|
|
415 |
|
|
|
2,890 |
|
|
|
North American warehouse consolidation |
|
82 |
|
|
|
— |
|
|
|
199 |
|
|
|
— |
|
|
|
Headquarter relocation costs |
|
146 |
|
|
|
— |
|
|
|
1,374 |
|
|
|
— |
|
|
|
Non-GAAP adjusted EBITDA |
$ |
45,719 |
|
|
$ |
39,048 |
|
|
$ |
82,364 |
|
|
$ |
74,079 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net sales |
$ |
258,400 |
|
|
$ |
231,740 |
|
|
$ |
493,892 |
|
|
$ |
452,027 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income margin - GAAP |
|
6.1 |
% |
|
|
6.1 |
% |
|
|
5.1 |
% |
|
|
5.0 |
% |
|
|
Adjusted EBITDA margin - Non-GAAP |
|
17.7 |
% |
|
|
16.8 |
% |
|
|
16.7 |
% |
|
|
16.4 |
% |
|
Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as adjusted EBITDA, is important for investors and other readers of the Company’s financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231101132219/en/