Columbus McKinnon Reports Continued Sales Growth and Gross Margin Expansion in Q1 FY25; Reaffirms FY25 Guidance
Columbus McKinnon (Nasdaq: CMCO) reported financial results for Q1 FY25, ending June 30, 2024. Highlights include:
- Net sales increased 2% to $239.7 million
- Gross margin expanded 30 bps to 37.1%
- Adjusted EBITDA grew 2% to $37.5 million
- Net income of $8.6 million or 3.6% of sales
- Backlog increased 4% from prior quarter
- Debt repayment of $20 million in Q1
The company reaffirmed FY25 guidance, projecting low-single digit sales growth and mid to high-single digit Adjusted EPS growth. Q2 FY25 guidance anticipates a slight decline in sales and Adjusted EPS due to manufacturing consolidation efforts.
Columbus McKinnon (Nasdaq: CMCO) ha riportato i risultati finanziari per il primo trimestre dell'anno fiscale 25, conclusosi il 30 giugno 2024. I punti salienti includono:
- Le vendite nette sono aumentate del 2% a 239,7 milioni di dollari
- Il margine lordo è aumentato di 30 punti base al 37,1%
- L'EBITDA rettificato è cresciuto del 2% a 37,5 milioni di dollari
- Reddito netto di 8,6 milioni di dollari, pari al 3,6% delle vendite
- L'inventario è aumentato del 4% rispetto al trimestre precedente
- Rimborso del debito di 20 milioni di dollari nel primo trimestre
L'azienda ha confermato la guida per l'anno fiscale 25, prevedendo una crescita delle vendite a una cifra bassa e una crescita dell'Adjusted EPS a una cifra media o alta. La guida per il secondo trimestre dell'anno fiscale 25 prevede un leggero calo delle vendite e dell'Adjusted EPS a causa degli sforzi di consolidamento produttivo.
Columbus McKinnon (Nasdaq: CMCO) informó los resultados financieros del primer trimestre del año fiscal 25, que finalizó el 30 de junio de 2024. Los aspectos más destacados incluyen:
- Las ventas netas aumentaron un 2% a 239,7 millones de dólares
- El margen bruto se expandió 30 puntos básicos al 37,1%
- El EBITDA ajustado creció un 2% a 37,5 millones de dólares
- Ingreso neto de 8,6 millones de dólares, o el 3,6% de las ventas
- La cartera de pedidos aumentó un 4% con respecto al trimestre anterior
- Reembolso de deuda de 20 millones de dólares en el primer trimestre
La empresa confirmó la guía para el año fiscal 25, proyectando un crecimiento de ventas de un solo dígito bajo y un crecimiento del EPS ajustado de un solo dígito medio a alto. La guía para el segundo trimestre del año fiscal 25 anticipa un ligero descenso en las ventas y el EPS ajustado debido a los esfuerzos de consolidación de la fabricación.
콜럼버스 맥키넌 (Nasdaq: CMCO)이 2024년 6월 30일 종료된 FY25 1분기 재무 결과를 보고했습니다. 주요 내용은 다음과 같습니다:
- 순매출이 2% 증가하여 2억 3970만 달러에 달함
- 총 마진이 30bps 증가하여 37.1%에 도달함
- 조정 EBITDA가 2% 증가하여 3750만 달러에 달함
- 순이익이 860만 달러로 매출의 3.6% 차지함
- 수주잔고가 이전 분기 대비 4% 증가함
- 1분기 동안 2000만 달러의 부채 상환이 이루어짐
회사는 FY25 가이던스를 재확인하며, 저숙련 단일 디지털 매출 성장 및 중고급 단일 디지털 조정 EPS 성장을 예상하고 있습니다. FY25 2분기 가이던스는 제조 통합 노력으로 인해 매출 및 조정 EPS가 약간 감소할 것으로 예상하고 있습니다.
Columbus McKinnon (Nasdaq: CMCO) a publié ses résultats financiers pour le premier trimestre de l'exercice 25, se terminant le 30 juin 2024. Les points forts incluent :
- Les ventes nettes ont augmenté de 2 % pour atteindre 239,7 millions de dollars
- La marge brute a augmenté de 30 points de base pour atteindre 37,1 %
- L'EBITDA ajusté a progressé de 2 % pour atteindre 37,5 millions de dollars
- Le bénéfice net s'est élevé à 8,6 millions de dollars, soit 3,6 % des ventes
- Le carnet de commandes a augmenté de 4 % par rapport au trimestre précédent
- Remboursement de la dette de 20 millions de dollars au premier trimestre
La société a confirmé ses prévisions pour l'exercice 25, projetant une croissance des ventes à un chiffre bas et une croissance de l'EPS ajusté à un chiffre moyen à élevé. Les prévisions pour le deuxième trimestre de l'exercice 25 anticipent une légère baisse des ventes et de l'EPS ajusté en raison des efforts de consolidation de la production.
Columbus McKinnon (Nasdaq: CMCO) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 25, das am 30. Juni 2024 endete, veröffentlicht. Die Highlights umfassen:
- Der Nettoumsatz stieg um 2% auf 239,7 Millionen USD
- Die Bruttomarge erhöhte sich um 30 Basispunkte auf 37,1%
- Das bereinigte EBITDA wuchs um 2% auf 37,5 Millionen USD
- Der Nettogewinn betrug 8,6 Millionen USD oder 3,6% des Umsatzes
- Der Auftragsbestand stieg um 4% gegenüber dem vorherigen Quartal
- Rückzahlung von Schulden in Höhe von 20 Millionen USD im ersten Quartal
Das Unternehmen bestätigte die Prognose für das Geschäftsjahr 25 und rechnet mit einem Wachstum der Umsätze im niedrigen einstelligen Bereich sowie einem Wachstum des bereinigten EPS im mittleren bis hohen einstelligen Bereich. Die Prognose für das zweite Quartal des Geschäftsjahres 25 geht von einem leichten Rückgang der Umsätze und des bereinigten EPS aus, was auf Bemühungen zur Konsolidierung der Produktion zurückzuführen ist.
- Net sales increased 2% to $239.7 million
- Gross margin expanded 30 bps to 37.1%
- Adjusted EBITDA grew 2% to $37.5 million
- Backlog increased 4% from prior quarter with book-to-bill ratio of 1.05x
- Debt repayment of $20 million in Q1, with $60 million expected for FY25
- Net income decreased 7% to $8.6 million
- Q2 FY25 guidance projects decline in sales and Adjusted EPS due to manufacturing consolidation
Insights
Columbus McKinnon's Q1 FY25 results demonstrate resilience in a challenging economic environment. The company reported a 2% increase in net sales to
However, the slight decline in operating margin to
The company's focus on debt reduction, with
Investors should closely monitor the execution of the footprint simplification plan and its impact on margins in the coming quarters. While the short-term disruptions may create some volatility, the long-term potential for improved operational efficiency and margin expansion could provide significant upside for patient investors.
Columbus McKinnon's strategic move to consolidate production facilities into the Monterrey manufacturing center of excellence is a significant development that warrants attention. This initiative, part of the company's footprint simplification plan, aligns with industry trends towards operational optimization and cost reduction.
The short-term impact of this consolidation is evident in the projected sales and margin pressure for Q2 FY25. However, the long-term benefits could be substantial. By centralizing operations in Mexico, the company stands to benefit from:
- Lower labor costs
- Improved supply chain efficiency
- Enhanced production flexibility
- Potential tax advantages
The 4% increase in backlog and a book-to-bill ratio of 1.05x suggest healthy demand, which could help offset some of the transitional challenges. The company's ability to maintain a positive book-to-bill ratio during this period of operational change is particularly encouraging.
Investors should pay close attention to the execution of this consolidation. Key metrics to watch in the coming quarters include:
- Speed of transition and any potential production disruptions
- Realized cost savings compared to initial projections
- Impact on product quality and delivery times
- Employee retention and knowledge transfer
If executed successfully, this strategic move could significantly enhance Columbus McKinnon's competitive position in the intelligent motion solutions market.
First Quarter 2025 Highlights (compared with prior-year period, except where otherwise noted)
-
Net sales increased
2% to with strength in precision conveyance$239.7 million -
Backlog increased
4% from the prior quarter with book-to-bill ratio of 1.05x -
Gross margin increased 30 bps to
37.1% ; Adjusted Gross Margin1 increased 110 bps to38.0% -
Net income of
or$8.6 million 3.6% of sales including 2 of costs for factory simplification as we transition manufacturing to our Monterrey, MX facility$2.6 million -
Adjusted EBITDA1 increased
2% to with Adjusted EBITDA Margin1 of$37.5 million 15.6% -
Net cash used for operating activities improved
from the prior year$6.5 million -
Increased financial flexibility with Q1 FY25 debt repayment of
; Expect FY25 debt repayment of$20 million $60 million
“We executed solidly in the first quarter delivering continued sales growth and gross margin expansion while advancing our longer-term strategic objectives,” said David J. Wilson, President and Chief Executive Officer. “Our commercial and operational initiatives are positively impacting the business enabling new customer wins, growth in attractive vertical markets and an encouraging funnel of promising business opportunities.”
“Earlier this month, we initiated the next phase of our footprint simplification plan and began consolidating an additional production facility into our Monterrey manufacturing center of excellence,” continued Wilson. “While the restructuring actions associated with this plan are expected to impact sales and margin in the second quarter, the impacts were contemplated in the full-year guidance we provided last quarter. Importantly, these actions will advance our operational and margin expansion efforts and enhance shareholder value over time.”
First Quarter Fiscal 2025 Sales
($ in millions) |
Q1 FY25 |
|
Q1 FY24 |
|
Change |
|
% Change |
|||||||
Net sales |
$ |
239.7 |
|
|
$ |
235.5 |
|
|
$ |
4.2 |
|
1.8 |
% |
|
|
$ |
136.3 |
|
|
$ |
136.1 |
|
|
$ |
0.2 |
|
0.1 |
% |
|
% of total |
|
57 |
% |
|
|
58 |
% |
|
|
|
|
|||
Non- |
$ |
103.4 |
|
|
$ |
99.4 |
|
|
$ |
4.0 |
|
4.0 |
% |
|
% of total |
|
43 |
% |
|
|
42 |
% |
|
|
|
|
For the quarter, net sales increased
First Quarter Fiscal 2025 Operating Results
($ in millions) |
Q1 FY25 |
|
Q1 FY24 |
|
Change |
|
% Change |
|||||||
Gross profit |
$ |
89.0 |
|
|
$ |
86.6 |
|
|
$ |
2.4 |
|
|
2.7 |
% |
Gross margin |
|
37.1 |
% |
|
|
36.8 |
% |
|
30 bps |
|
|
|||
Adjusted Gross Profit1 |
$ |
91.0 |
|
|
$ |
86.8 |
|
|
$ |
4.2 |
|
|
4.8 |
% |
Adjusted Gross Margin1 |
|
38.0 |
% |
|
|
36.9 |
% |
|
110 bps |
|
|
|||
Income from operations |
$ |
21.1 |
|
|
$ |
21.4 |
|
|
$ |
(0.3 |
) |
|
(1.4 |
)% |
Operating margin |
|
8.8 |
% |
|
|
9.1 |
% |
|
(30) bps |
|
|
|||
Adjusted Operating Income1 |
$ |
25.7 |
|
|
$ |
25.8 |
|
|
$ |
(0.1 |
) |
|
(0.4 |
)% |
Adjusted Operating Margin1 |
|
10.7 |
% |
|
|
10.9 |
% |
|
(20) bps |
|
|
|||
Net income |
$ |
8.6 |
|
|
$ |
9.3 |
|
|
$ |
(0.6 |
) |
|
(7.0 |
)% |
Net income margin |
|
3.6 |
% |
|
|
3.9 |
% |
|
(30) bps |
|
|
|||
Diluted EPS |
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
(0.02 |
) |
|
(6.3 |
)% |
Adjusted EPS1 |
$ |
0.62 |
|
|
$ |
0.62 |
|
|
$ |
— |
|
|
— |
% |
Adjusted EBITDA1 |
$ |
37.5 |
|
|
$ |
36.6 |
|
|
$ |
0.9 |
|
|
2.3 |
% |
Adjusted EBITDA Margin1 |
|
15.6 |
% |
|
|
15.6 |
% |
|
— bps |
|
|
Adjusted EPS1 excludes, among other adjustments, amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.
Second Quarter Fiscal 2025 Guidance
The Company is issuing the following guidance for the second quarter of fiscal 2025, ending September 30, 2024:
Metric |
Q2 FY25 |
Net sales |
Down low to mid-single digits year-over-year |
Adjusted EPS4 |
Down mid-single digits year-over-year |
Second quarter 2025 guidance assumes approximately
The Company is reaffirming the following guidance for the fiscal year 2025, ending March 31, 2025:
Metric |
FY25 |
Net sales |
Low-single digit growth year-over-year |
Adjusted EPS4 |
Mid to high-single digit growth year-over-year |
Capital Expenditures |
|
Net Leverage Ratio4 |
~2.0x |
Fiscal 2025 guidance assumes approximately
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 201-493-6780. 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 412-317-6671 and enter the conference ID number 13747096 through Wednesday, August 7, 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 |
|
3 |
montratec was acquired May 31, 2023. |
|
4 |
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 second 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 distribution policy; (iii) general economic trend and trends in the industry and markets; (iv) the risk and costs associated with the integration of, and our ability to integrate acquisitions successfully to achieve synergies; (v) the amount of debt to be paid down by the Company during fiscal 2025 and the expected amount of interest expense savings from the March 2024 Term Loan B repricing; (vi) the estimated costs and benefits related to the consolidation of the Company’s North American linear motion operations in
Financial tables follow.
COLUMBUS McKINNON CORPORATION |
|||||||||||
Condensed Consolidated Income Statements - UNAUDITED |
|||||||||||
(In thousands, except per share and percentage data) |
|||||||||||
|
|
Three Months Ended |
|
|
|||||||
|
|
June 30,
|
|
June 30,
|
|
Change |
|||||
Net sales |
|
$ |
239,726 |
|
|
$ |
235,492 |
|
|
1.8 |
% |
Cost of products sold |
|
|
150,696 |
|
|
|
148,843 |
|
|
1.2 |
% |
Gross profit |
|
|
89,030 |
|
|
|
86,649 |
|
|
2.7 |
% |
Gross profit margin |
|
|
37.1 |
% |
|
|
36.8 |
% |
|
|
|
Selling expenses |
|
|
27,770 |
|
|
|
24,981 |
|
|
11.2 |
% |
% of net sales |
|
|
11.6 |
% |
|
|
10.6 |
% |
|
|
|
General and administrative expenses |
|
|
26,447 |
|
|
|
27,443 |
|
|
(3.6 |
)% |
% of net sales |
|
|
11.0 |
% |
|
|
11.7 |
% |
|
|
|
Research and development expenses |
|
|
6,166 |
|
|
|
5,900 |
|
|
4.5 |
% |
% of net sales |
|
|
2.6 |
% |
|
|
2.5 |
% |
|
|
|
Amortization of intangibles |
|
|
7,500 |
|
|
|
6,877 |
|
|
9.1 |
% |
Income from operations |
|
|
21,147 |
|
|
|
21,448 |
|
|
(1.4 |
)% |
Operating margin |
|
|
8.8 |
% |
|
|
9.1 |
% |
|
|
|
Interest and debt expense |
|
|
8,235 |
|
|
|
8,625 |
|
|
(4.5 |
)% |
Investment (income) loss |
|
|
(209 |
) |
|
|
(543 |
) |
|
(61.5 |
)% |
Foreign currency exchange (gain) loss |
|
|
395 |
|
|
|
483 |
|
|
(18.2 |
)% |
Other (income) expense, net |
|
|
676 |
|
|
|
214 |
|
|
215.9 |
% |
Income (loss) before income tax expense (benefit) |
|
|
12,050 |
|
|
|
12,669 |
|
|
(4.9 |
)% |
Income tax expense (benefit) |
|
|
3,421 |
|
|
|
3,394 |
|
|
0.8 |
% |
Net income (loss) |
|
$ |
8,629 |
|
|
$ |
9,275 |
|
|
(7.0 |
)% |
|
|
|
|
|
|
|
|||||
Average basic shares outstanding |
|
|
28,834 |
|
|
|
28,662 |
|
|
0.6 |
% |
Basic income (loss) per share |
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
(6.3 |
)% |
|
|
|
|
|
|
|
|||||
Average diluted shares outstanding |
|
|
29,127 |
|
|
|
28,906 |
|
|
0.8 |
% |
Diluted income (loss) per share |
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
(6.3 |
)% |
|
|
|
|
|
|
|
|||||
Dividends declared per common share |
|
$ |
— |
|
|
$ |
— |
|
|
|
COLUMBUS McKINNON CORPORATION |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(In thousands) |
||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
||||
|
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
68,373 |
|
|
$ |
114,126 |
|
Trade accounts receivable |
|
|
166,844 |
|
|
|
171,186 |
|
Inventories |
|
|
200,894 |
|
|
|
186,091 |
|
Prepaid expenses and other |
|
|
42,200 |
|
|
|
42,752 |
|
Total current assets |
|
|
478,311 |
|
|
|
514,155 |
|
|
|
|
|
|
||||
Property, plant, and equipment, net |
|
|
105,868 |
|
|
|
106,395 |
|
Goodwill |
|
|
708,571 |
|
|
|
710,334 |
|
Other intangibles, net |
|
|
377,551 |
|
|
|
385,634 |
|
Marketable securities |
|
|
10,860 |
|
|
|
11,447 |
|
Deferred taxes on income |
|
|
1,595 |
|
|
|
1,797 |
|
Other assets |
|
|
98,901 |
|
|
|
96,183 |
|
Total assets |
|
$ |
1,781,657 |
|
|
$ |
1,825,945 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Trade accounts payable |
|
$ |
73,224 |
|
|
$ |
83,118 |
|
Accrued liabilities |
|
|
107,594 |
|
|
|
127,973 |
|
Current portion of long-term debt and finance lease obligations |
|
|
50,687 |
|
|
|
50,670 |
|
Total current liabilities |
|
|
231,505 |
|
|
|
261,761 |
|
|
|
|
|
|
||||
Term loan, AR securitization facility and finance lease obligations |
|
|
459,743 |
|
|
|
479,566 |
|
Other non current liabilities |
|
|
204,603 |
|
|
|
202,555 |
|
Total liabilities |
|
|
895,851 |
|
|
|
943,882 |
|
|
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
289 |
|
|
|
288 |
|
Treasury stock |
|
|
(1,001 |
) |
|
|
(1,001 |
) |
Additional paid in capital |
|
|
526,574 |
|
|
|
527,125 |
|
Retained earnings |
|
|
403,957 |
|
|
|
395,328 |
|
Accumulated other comprehensive loss |
|
|
(44,013 |
) |
|
|
(39,677 |
) |
Total shareholders’ equity |
|
$ |
885,806 |
|
|
$ |
882,063 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,781,657 |
|
|
$ |
1,825,945 |
|
COLUMBUS McKINNON CORPORATION |
||||||||
Condensed Consolidated Statements of Cash Flows - UNAUDITED |
||||||||
(In thousands) |
||||||||
|
|
Three Months Ended |
||||||
|
|
June 30,
|
|
June 30,
|
||||
Operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
8,629 |
|
|
$ |
9,275 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
||||||||
Depreciation and amortization |
|
|
11,840 |
|
|
|
10,890 |
|
Deferred income taxes and related valuation allowance |
|
|
942 |
|
|
|
(1,825 |
) |
Net loss (gain) on sale of real estate, investments and other |
|
|
(124 |
) |
|
|
(467 |
) |
Stock-based compensation |
|
|
1,101 |
|
|
|
1,981 |
|
Amortization of deferred financing costs |
|
|
622 |
|
|
|
483 |
|
Loss (gain) on hedging instruments |
|
|
(97 |
) |
|
|
231 |
|
Non-cash lease expense |
|
|
2,584 |
|
|
|
2,389 |
|
Changes in operating assets and liabilities, net of effects of business acquisitions: |
||||||||
Trade accounts receivable |
|
|
3,346 |
|
|
|
(7,649 |
) |
Inventories |
|
|
(15,613 |
) |
|
|
(19,214 |
) |
Prepaid expenses and other |
|
|
(2,222 |
) |
|
|
(2,800 |
) |
Other assets |
|
|
(127 |
) |
|
|
(636 |
) |
Trade accounts payable |
|
|
(8,640 |
) |
|
|
1,718 |
|
Accrued liabilities |
|
|
(11,600 |
) |
|
|
(8,668 |
) |
Non-current liabilities |
|
|
(1,399 |
) |
|
|
(2,955 |
) |
Net cash provided by (used for) operating activities |
|
|
(10,758 |
) |
|
|
(17,247 |
) |
|
|
|
|
|
||||
Investing activities: |
|
|
|
|
||||
Proceeds from sales of marketable securities |
|
|
1,500 |
|
|
|
1,100 |
|
Purchases of marketable securities |
|
|
(912 |
) |
|
|
(906 |
) |
Capital expenditures |
|
|
(4,629 |
) |
|
|
(5,273 |
) |
Purchase of businesses, net of cash acquired |
|
|
— |
|
|
|
(107,605 |
) |
Net cash provided by (used for) investing activities |
|
|
(4,041 |
) |
|
|
(112,684 |
) |
|
|
|
|
|
||||
Financing activities: |
|
|
|
|
||||
Proceeds from the issuance of common stock |
|
|
64 |
|
|
|
225 |
|
Repayment of debt |
|
|
(20,158 |
) |
|
|
(10,143 |
) |
Proceeds from issuance of long-term debt |
|
|
— |
|
|
|
120,000 |
|
Fees paid for borrowings on long-term debt |
|
|
— |
|
|
|
(2,046 |
) |
Payment to former owners of montratec |
|
|
(6,711 |
) |
|
|
— |
|
Fees paid for debt repricing |
|
|
(169 |
) |
|
|
— |
|
Cash inflows from hedging activities |
|
|
5,942 |
|
|
|
6,053 |
|
Cash outflows from hedging activities |
|
|
(5,820 |
) |
|
|
(6,298 |
) |
Payment of dividends |
|
|
(2,016 |
) |
|
|
(2,004 |
) |
Other |
|
|
(1,715 |
) |
|
|
(1,802 |
) |
Net cash provided by (used for) financing activities |
|
|
(30,583 |
) |
|
|
103,985 |
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(371 |
) |
|
|
(236 |
) |
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
|
(45,753 |
) |
|
|
(26,182 |
) |
Cash, cash equivalents, and restricted cash at beginning of year |
|
$ |
114,376 |
|
|
$ |
133,426 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
68,623 |
|
|
$ |
107,244 |
|
COLUMBUS McKINNON CORPORATION |
|||||||
Q1 FY 2025 Net Sales Bridge |
|||||||
|
|
Quarter |
|||||
($ in millions) |
|
$ Change |
|
% Change |
|||
Fiscal 2024 Net Sales |
|
$ |
235.5 |
|
|
|
|
Acquisition |
|
|
2.7 |
|
|
1.1 |
% |
Pricing |
|
|
3.5 |
|
|
1.5 |
% |
Volume |
|
|
(1.4 |
) |
|
(0.6 |
)% |
Foreign currency translation |
|
|
(0.6 |
) |
|
(0.2 |
)% |
Total change |
|
$ |
4.2 |
|
|
1.8 |
% |
Fiscal 2025 Net Sales |
|
$ |
239.7 |
|
|
|
COLUMBUS McKINNON CORPORATION |
|||
Q1 FY 2025 Gross Profit Bridge |
|||
($ in millions) |
Quarter |
||
Fiscal 2024 Gross Profit |
$ |
86.6 |
|
Acquisition |
|
0.8 |
|
Price, net of manufacturing costs changes (incl. inflation) |
|
3.4 |
|
Business realignment costs |
|
(0.2 |
) |
Monterrey, MX new factory start-up costs |
|
(1.6 |
) |
Sales volume and mix |
|
0.2 |
|
Foreign currency translation |
|
(0.2 |
) |
Total change |
|
2.4 |
|
Fiscal 2025 Gross Profit |
$ |
89.0 |
|
|
||||||||||
|
|
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 |
|||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|||
($ in millions) |
|
|
|
|
|
|
|
|
|
Backlog |
|
|
|
|
|
|
|
|
|
Long-term backlog |
|
|
|
|
|
|
|
|
|
Expected to ship beyond 3 months |
|
|
|
|
|
|
|
|
|
Long-term backlog as % of total backlog |
|
53.3 |
% |
|
51.5 |
% |
|
49.9 |
% |
|
|
|
|
|
|
|
|
|
|
Debt to total capitalization percentage |
|
36.6 |
% |
|
37.5 |
% |
|
40.6 |
% |
|
|
|
|
|
|
|
|
|
|
Debt, net of cash, to net total capitalization |
|
33.3 |
% |
|
32.0 |
% |
|
35.8 |
% |
|
|
|
|
|
|
|
|
|
|
Working capital as a % of sales 2 |
|
22.5 |
% |
|
19.1 |
% |
|
21.4 |
% |
|
|
Three Months Ended |
|||||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|||||||||
($ in millions) |
|
|
|
|
|
|
|
|
|
||||||
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
||||||
Days sales outstanding3 |
|
|
63.3 |
|
days |
|
|
58.7 |
days |
|
|
62.9 |
|
days |
|
|
|
|
|
|
|
|
|
|
|
||||||
Inventory turns per year3 |
|
|
|
|
|
|
|
|
|
||||||
(based on cost of products sold) |
|
|
3.0 |
|
turns |
|
|
3.7 |
turns |
|
|
2.9 |
|
turns |
|
Days' inventory3 |
|
|
121.7 |
|
days |
|
|
98.6 |
days |
|
|
125.9 |
|
days |
|
|
|
|
|
|
|
|
|
|
|
||||||
Trade accounts payable |
|
|
|
|
|
|
|
|
|
||||||
Days payables outstanding3 |
|
|
50.6 |
|
days |
|
|
50.9 |
days |
|
|
53.3 |
|
days |
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by (used for) operating activities |
|
$ |
(10.8 |
) |
|
|
$ |
38.6 |
|
|
$ |
(17.2 |
) |
|
|
Capital expenditures |
|
$ |
4.6 |
|
|
|
$ |
8.5 |
|
|
$ |
5.3 |
|
|
|
Free Cash Flow 4 |
|
$ |
(15.4 |
) |
|
|
$ |
30.1 |
|
|
$ |
(22.5 |
) |
|
______________________ | ||
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 June 30, 2023 exclude the impact of the acquisition of montratec. |
|
3 |
Three months ended June 30, 2023 excludes the impact of the acquisition of montratec. |
|
4 |
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 |
||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||
Gross profit |
$ |
89,030 |
|
|
$ |
86,649 |
|
Add back (deduct): |
|
|
|
||||
Business realignment costs |
|
392 |
|
|
|
196 |
|
Monterrey, MX new factory start-up costs |
|
1,625 |
|
|
|
— |
|
Adjusted Gross Profit |
$ |
91,047 |
|
|
$ |
86,845 |
|
|
|
|
|
||||
Net sales |
$ |
239,726 |
|
|
$ |
235,492 |
|
|
|
|
|
||||
Gross margin |
|
37.1 |
% |
|
|
36.8 |
% |
Adjusted Gross Margin |
|
38.0 |
% |
|
|
36.9 |
% |
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 profit margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit and gross profit margin to that of other companies.
COLUMBUS McKINNON CORPORATION |
|||||||
Reconciliation of Income from Operations to Adjusted Operating Income |
|||||||
($ in thousands) |
|||||||
|
Three Months Ended |
||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||
Income from operations |
$ |
21,147 |
|
|
$ |
21,448 |
|
Add back (deduct): |
|
|
|
||||
Acquisition deal and integration costs |
|
— |
|
|
|
2,587 |
|
Business realignment costs |
|
850 |
|
|
|
375 |
|
Factory and warehouse consolidation costs |
|
— |
|
|
|
117 |
|
Headquarter relocation costs |
|
96 |
|
|
|
1,228 |
|
Monterrey, MX new factory start-up costs |
|
3,566 |
|
|
|
— |
|
Adjusted Operating Income |
$ |
25,659 |
|
|
$ |
25,755 |
|
|
|
|
|
||||
Net sales |
$ |
239,726 |
|
|
$ |
235,492 |
|
|
|
|
|
||||
Operating margin |
|
8.8 |
% |
|
|
9.1 |
% |
Adjusted Operating Margin |
|
10.7 |
% |
|
|
10.9 |
% |
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 |
||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||
Net income |
$ |
8,629 |
|
|
$ |
9,275 |
|
Add back (deduct): |
|
|
|
||||
Amortization of intangibles |
|
7,500 |
|
|
|
6,877 |
|
Acquisition deal and integration costs |
|
— |
|
|
|
2,587 |
|
Business realignment costs |
|
850 |
|
|
|
375 |
|
Factory and warehouse consolidation costs |
|
— |
|
|
|
117 |
|
Headquarter relocation costs |
|
96 |
|
|
|
1,228 |
|
Monterrey, MX new factory start-up costs |
|
3,566 |
|
|
|
— |
|
Normalize tax rate 1 |
|
(2,595 |
) |
|
|
(2,569 |
) |
Adjusted Net Income |
$ |
18,046 |
|
|
$ |
17,890 |
|
|
|
|
|
||||
Average diluted shares outstanding |
|
29,127 |
|
|
|
28,906 |
|
|
|
|
|
||||
Diluted income per share |
$ |
0.30 |
|
|
$ |
0.32 |
|
|
|
|
|
||||
Adjusted EPS |
$ |
0.62 |
|
|
$ |
0.62 |
|
1 |
Applies a normalized tax rate of |
|
Adjusted Net Income and Adjusted 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 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 and Adjusted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’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 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 |
||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||
Net income |
$ |
8,629 |
|
|
$ |
9,275 |
|
Add back (deduct): |
|
|
|
||||
Income tax expense (benefit) |
|
3,421 |
|
|
|
3,394 |
|
Interest and debt expense |
|
8,235 |
|
|
|
8,625 |
|
Investment (income) loss |
|
(209 |
) |
|
|
(543 |
) |
Foreign currency exchange (gain) loss |
|
395 |
|
|
|
483 |
|
Other (income) expense, net |
|
676 |
|
|
|
214 |
|
Depreciation and amortization expense |
|
11,840 |
|
|
|
10,890 |
|
Acquisition deal and integration costs |
|
— |
|
|
|
2,587 |
|
Business realignment costs |
|
850 |
|
|
|
375 |
|
Factory and warehouse consolidation costs |
|
— |
|
|
|
117 |
|
Headquarter relocation costs |
|
96 |
|
|
|
1,228 |
|
Monterrey, MX new factory start-up costs |
|
3,566 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
37,499 |
|
|
$ |
36,645 |
|
|
|
|
|
||||
Net sales |
$ |
239,726 |
|
|
$ |
235,492 |
|
|
|
|
|
||||
Net income margin |
|
3.6 |
% |
|
|
3.9 |
% |
Adjusted EBITDA Margin |
|
15.6 |
% |
|
|
15.6 |
% |
Adjusted EBITDA is defined as net income 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 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 |
||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
||||
Net income (loss) |
|
$ |
45,978 |
|
|
$ |
49,313 |
|
Add back (deduct): |
|
|
|
|
||||
Annualize EBITDA for the montratec acquisition1 |
|
|
— |
|
|
|
7,994 |
|
Annualize synergies for the montratec acquisition1 |
|
|
— |
|
|
|
401 |
|
Income tax expense (benefit) |
|
|
14,929 |
|
|
|
20,547 |
|
Interest and debt expense |
|
|
37,567 |
|
|
|
30,364 |
|
Non-Cash Pension Settlement |
|
|
4,984 |
|
|
|
— |
|
Amortization of deferred financing costs |
|
|
2,488 |
|
|
|
1,774 |
|
Stock Compensation Expense |
|
|
11,159 |
|
|
|
11,655 |
|
Depreciation and amortization expense |
|
|
46,895 |
|
|
|
42,368 |
|
Cost of debt refinancing |
|
|
1,190 |
|
|
|
— |
|
Acquisition deal and integration costs |
|
|
624 |
|
|
|
3,117 |
|
Excluded acquisition deal and integration costs2 |
|
|
— |
|
|
|
(529 |
) |
Business realignment costs |
|
|
2,341 |
|
|
|
3,857 |
|
Excluded business realignment costs2 |
|
|
— |
|
|
|
(3,482 |
) |
Factory and warehouse consolidation costs |
|
|
627 |
|
|
|
117 |
|
Garvey contingent consideration |
|
|
— |
|
|
|
1,230 |
|
Headquarter relocation costs |
|
|
927 |
|
|
|
2,224 |
|
Monterrey, MX new factory start-up costs |
|
|
8,055 |
|
|
|
— |
|
Non-Cash loss related to asset retirement |
|
|
— |
|
|
|
2 |
|
Gain on sale of Facility |
|
|
— |
|
|
|
(232 |
) |
Credit Agreement Trailing Twelve Month Adjusted EBITDA |
|
$ |
177,764 |
|
|
$ |
170,720 |
|
|
|
|
|
|
||||
Current portion of long-term debt and finance lease obligations |
|
$ |
50,687 |
|
|
$ |
40,619 |
|
Term loan, AR securitization facility and finance lease obligations |
|
|
459,743 |
|
|
|
539,150 |
|
Total debt |
|
$ |
510,430 |
|
|
$ |
579,769 |
|
Standby Letters of Credit |
|
|
15,630 |
|
|
|
15,364 |
|
Cash and cash equivalents |
|
|
(68,373 |
) |
|
|
(106,994 |
) |
Net Debt |
|
$ |
457,687 |
|
|
$ |
488,139 |
|
|
|
|
|
|
||||
Net Leverage Ratio |
|
2.57x |
|
2.86x |
1 |
EBITDA is normalized to include a full year of the acquired entity and assumes all cost synergies are achieved in TTM Q1 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. |
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731372041/en/
Gregory P. Rustowicz
EVP Finance and CFO
Columbus McKinnon Corporation
716-689-5442
greg.rustowicz@cmco.com
Kristine Moser
VP IR and Treasurer
Columbus McKinnon Corporation
704-322-2488
kristy.moser@cmco.com
Source: Columbus McKinnon Corporation
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