Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Columbus McKinnon Corporation (CMCO) reported strong financial results for Q2 FY 2022, ending September 30, 2021, with revenues of $223.6 million, a 41.7% increase compared to the previous year. This growth was driven by robust demand and the acquisition of Dorner Manufacturing, contributing $33.5 million in sales. The gross margin reached a record 36.3%, up 80 basis points, while net income saw a turnaround to $15.2 million from a loss of $4.1 million in the prior year. The company anticipates Q3 sales of approximately $215 million amidst ongoing supply chain constraints.
- 42% revenue growth driven by strong volume and strategic pricing.
- Record gross margin of 36.3%, up 80 basis points.
- Net income improved to $15.2 million compared to a loss last year.
- Adjusted EBITDA increased to $36.0 million, representing 16.1% of revenue.
- Ongoing supply chain constraints anticipated to affect Q3 sales.
Second Quarter Highlights (compared with prior year period)
-
42% revenue growth driven by strong volume, contribution of acquisition and strategic pricing -
CMBS enables continued margin expansion resulting in record gross margin of
36.3% , up 80 basis points; record adjusted gross margin of36.7% expanded 230 basis points - Strategic pricing more than offset material cost inflation pressure
-
Achieved net income of
$15.2 million $0.53 $0.74 -
Adjusted EBITDA was
$36.0 million 16.1% of revenue up 270 basis points -
Generated
$25.3 million $22.2 million
1 Free cash flow is a non-GAAP measure defined as cash from operations less capital expenditures. See the accompanying discussion and reconciliation found in the Additional Data table in this release.
Second Quarter Fiscal 2022 Sales
($ in millions) |
Q2 FY 22 |
|
Q2 FY 21 |
|
Change |
|
% Change |
|||||||
Net sales |
$ |
223.6 |
|
|
$ |
157.8 |
|
|
$ |
65.8 |
|
|
41.7 |
% |
|
$ |
130.7 |
|
|
$ |
84.7 |
|
|
$ |
46.0 |
|
|
54.3 |
% |
% of total |
58 |
% |
|
54 |
% |
|
|
|
|
|||||
Non- |
$ |
92.9 |
|
|
$ |
73.1 |
|
|
$ |
19.8 |
|
|
27.1 |
% |
% of total |
42 |
% |
|
46 |
% |
|
|
|
|
|||||
For the quarter, sales increased
Second Quarter Fiscal 2022 Operating Results
($ in millions) |
Q2 FY 22 |
|
Q2 FY 21 |
|
Change |
|
% Change |
|||||||
Gross profit |
$ |
81.1 |
|
|
$ |
56.0 |
|
|
$ |
25.1 |
|
|
44.8 |
% |
Gross margin |
36.3 |
% |
|
35.5 |
% |
|
80 bps |
|
|
|||||
Income from operations |
$ |
23.7 |
|
|
$ |
15.8 |
|
|
$ |
7.8 |
|
|
49.6 |
% |
Operating margin |
10.6 |
% |
|
10.0 |
% |
|
60 bps |
|
|
|||||
Adjusted income from operations* |
$ |
25.5 |
|
|
$ |
14.0 |
|
|
$ |
11.5 |
|
|
81.9 |
% |
Adjusted operating margin* |
11.4 |
% |
|
8.9 |
% |
|
250 bps |
|
|
|||||
Net income (loss) |
$ |
15.2 |
|
|
$ |
(4.1) |
|
|
$ |
19.3 |
|
|
NM |
|
Net income (loss) margin |
6.8 |
% |
|
(2.6) |
% |
|
940 bps |
|
|
|||||
Diluted EPS |
$ |
0.53 |
|
|
$ |
(0.17) |
|
|
$ |
0.70 |
|
|
NM |
|
Adjusted EPS* |
$ |
0.74 |
|
|
$ |
0.44 |
|
|
$ |
0.30 |
|
|
68.2 |
% |
Adjusted EBITDA* |
$ |
36.0 |
|
|
$ |
21.1 |
|
|
$ |
14.8 |
|
|
70.2 |
% |
Adjusted EBITDA margin* |
16.1 |
% |
|
13.4 |
% |
|
270 bps |
|
|
|||||
*Adjusted operating income, 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 operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.
Dorner added
Third Quarter Fiscal 2022 Outlook
Teleconference/webcast
The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13723730. The telephonic replay will be available from
About
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 future sales and earnings, 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 Blueprint for Growth 2.0 strategy and execute CMBS; and the Company’s ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, 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
Financial tables follow.
Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data) |
|||||||||||
|
|
Three Months Ended |
|
|
|||||||
|
|
|
|
|
|
Change |
|||||
Net sales |
|
$ |
223,635 |
|
|
$ |
157,790 |
|
|
41.7 |
% |
Cost of products sold |
|
142,500 |
|
|
101,765 |
|
|
40.0 |
% |
||
Gross profit |
|
81,135 |
|
|
56,025 |
|
|
44.8 |
% |
||
Gross profit margin |
|
36.3 |
% |
|
35.5 |
% |
|
|
|||
Selling expenses |
|
24,157 |
|
|
18,563 |
|
|
30.1 |
% |
||
% of net sales |
|
10.8 |
% |
|
11.8 |
% |
|
|
|||
General and administrative expenses |
|
23,208 |
|
|
15,554 |
|
|
49.2 |
% |
||
% of net sales |
|
10.4 |
% |
|
9.9 |
% |
|
|
|||
Research and development expenses |
|
3,825 |
|
|
2,896 |
|
|
32.1 |
% |
||
% of net sales |
|
1.7 |
% |
|
1.8 |
% |
|
|
|||
Amortization of intangibles |
|
6,285 |
|
|
3,192 |
|
|
96.9 |
% |
||
Income from operations |
|
23,660 |
|
|
15,820 |
|
|
49.6 |
% |
||
Operating margin |
|
10.6 |
% |
|
10.0 |
% |
|
|
|||
Interest and debt expense |
|
4,587 |
|
|
3,018 |
|
|
52.0 |
% |
||
Investment (income) loss |
|
(115) |
|
|
(357) |
|
|
(67.8) |
% |
||
Foreign currency exchange (gain) loss |
|
441 |
|
|
397 |
|
|
11.1 |
% |
||
Other (income) expense, net |
|
(539) |
|
|
16,911 |
|
|
NM |
|||
Income (loss) before income tax expense (benefit) |
|
19,286 |
|
|
(4,149) |
|
|
NM |
|||
Income tax expense (benefit) |
|
4,083 |
|
|
(45) |
|
|
NM |
|||
Net income (loss) |
|
$ |
15,203 |
|
|
$ |
(4,104) |
|
|
NM |
|
|
|
|
|
|
|
|
|||||
Average basic shares outstanding |
|
28,418 |
|
|
23,883 |
|
|
19.0 |
% |
||
Basic income (loss) per share |
|
$ |
0.53 |
|
|
$ |
(0.17) |
|
|
NM |
|
|
|
|
|
|
|
|
|||||
Average diluted shares outstanding |
|
28,756 |
|
|
23,883 |
|
|
20.4 |
% |
||
Diluted income (loss) per share |
|
$ |
0.53 |
|
|
$ |
(0.17) |
|
|
NM |
|
|
|
|
|
|
|
|
|||||
Dividends declared per common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
|
|
Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data) |
|||||||||||
|
|
Six Months Ended |
|
|
|||||||
|
|
|
|
|
|
Change |
|||||
Net sales |
|
$ |
437,099 |
|
|
$ |
296,860 |
|
|
47.2 |
% |
Cost of products sold |
|
281,901 |
|
|
196,038 |
|
|
43.8 |
% |
||
Gross profit |
|
155,198 |
|
|
100,822 |
|
|
53.9 |
% |
||
Gross profit margin |
|
35.5 |
% |
|
34.0 |
% |
|
|
|||
Selling expenses |
|
47,639 |
|
|
37,258 |
|
|
27.9 |
% |
||
% of net sales |
|
10.9 |
% |
|
12.6 |
% |
|
|
|||
General and administrative expenses |
|
53,351 |
|
|
33,983 |
|
|
57.0 |
% |
||
% of net sales |
|
12.2 |
% |
|
11.4 |
% |
|
|
|||
Research and development expenses |
|
7,408 |
|
|
5,665 |
|
|
30.8 |
% |
||
% of net sales |
|
1.7 |
% |
|
1.9 |
% |
|
|
|||
Amortization of intangibles |
|
12,394 |
|
|
6,307 |
|
|
96.5 |
% |
||
Income from operations |
|
34,406 |
|
|
17,609 |
|
|
95.4 |
% |
||
Operating margin |
|
7.9 |
% |
|
5.9 |
% |
|
|
|||
Interest and debt expense |
|
10,399 |
|
|
6,206 |
|
|
67.6 |
% |
||
Cost of debt refinancing |
|
14,803 |
|
|
— |
|
|
NM |
|||
Investment (income) loss |
|
(548) |
|
|
(934) |
|
|
(41.3) |
% |
||
Foreign currency exchange (gain) loss |
|
535 |
|
|
481 |
|
|
11.2 |
% |
||
Other (income) expense, net |
|
(289) |
|
|
19,937 |
|
|
NM |
|||
Income (loss) before income tax expense (benefit) |
|
9,506 |
|
|
(8,081) |
|
|
NM |
|||
Income tax expense (benefit) |
|
1,566 |
|
|
(1,008) |
|
|
NM |
|||
Net income (loss) |
|
$ |
7,940 |
|
|
$ |
(7,073) |
|
|
NM |
|
|
|
|
|
|
|
|
|||||
Average basic shares outstanding |
|
27,594 |
|
|
23,843 |
|
|
15.7 |
% |
||
Basic income (loss) per share |
|
$ |
0.29 |
|
|
$ |
(0.30) |
|
|
NM |
|
|
|
|
|
|
|
|
|||||
Average diluted shares outstanding |
|
27,957 |
|
|
23,843 |
|
|
17.3 |
% |
||
Diluted income (loss) per share |
|
$ |
0.28 |
|
|
$ |
(0.30) |
|
|
NM |
|
|
|
|
|
|
|
|
|||||
Dividends declared per common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
|
|
Condensed Consolidated Balance Sheets (In thousands) |
||||||||
|
|
|
|
|
||||
|
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
105,311 |
|
|
$ |
202,127 |
|
Trade accounts receivable |
|
125,451 |
|
|
105,464 |
|
||
Inventories |
|
147,925 |
|
|
111,488 |
|
||
Prepaid expenses and other |
|
28,926 |
|
|
22,763 |
|
||
Total current assets |
|
407,613 |
|
|
441,842 |
|
||
|
|
|
|
|
||||
Property, plant, and equipment, net |
|
97,117 |
|
|
74,753 |
|
||
|
|
615,329 |
|
|
331,176 |
|
||
Other intangibles, net |
|
392,700 |
|
|
213,362 |
|
||
Marketable securities |
|
10,072 |
|
|
7,968 |
|
||
Deferred taxes on income |
|
1,960 |
|
|
20,080 |
|
||
Other assets |
|
61,184 |
|
|
61,251 |
|
||
Total assets |
|
$ |
1,585,975 |
|
|
$ |
1,150,432 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Trade accounts payable |
|
$ |
71,458 |
|
|
$ |
68,593 |
|
Accrued liabilities |
|
104,924 |
|
|
110,816 |
|
||
Current portion of long-term debt and finance lease obligations |
|
60,515 |
|
|
4,450 |
|
||
Total current liabilities |
|
236,897 |
|
|
183,859 |
|
||
|
|
|
|
|
||||
Term loan and finance lease obligations |
|
392,728 |
|
|
244,504 |
|
||
Other non-current liabilities |
|
221,192 |
|
|
191,920 |
|
||
Total liabilities |
|
850,817 |
|
|
620,283 |
|
||
|
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
|
||||
Common stock |
|
284 |
|
|
240 |
|
||
Additional paid-in capital |
|
499,758 |
|
|
296,093 |
|
||
Retained earnings |
|
300,036 |
|
|
293,802 |
|
||
Accumulated other comprehensive loss |
|
(64,920) |
|
|
(59,986) |
|
||
Total shareholders’ equity |
|
735,158 |
|
|
530,149 |
|
||
Total liabilities and shareholders’ equity |
|
$ |
1,585,975 |
|
|
$ |
1,150,432 |
|
Condensed Consolidated Statements of Cash Flows - UNAUDITED (In thousands) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
|
|
||||
Operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
7,940 |
|
|
$ |
(7,073) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
20,969 |
|
|
14,210 |
|
||
Deferred income taxes and related valuation allowance |
|
(1,235) |
|
|
(6,745) |
|
||
Net loss (gain) on sale of real estate, investments, and other |
|
(462) |
|
|
(557) |
|
||
Stock based compensation |
|
5,504 |
|
|
3,989 |
|
||
Amortization of deferred financing costs |
|
867 |
|
|
1,327 |
|
||
Cost of debt refinancing |
|
14,803 |
|
|
— |
|
||
Loss (gain) on hedging instruments |
|
672 |
|
|
— |
|
||
Non-cash pension settlement expense |
|
— |
|
|
19,046 |
|
||
Gain on sale of building |
|
(375) |
|
|
(2,638) |
|
||
Non-cash lease expense |
|
3,939 |
|
|
3,785 |
|
||
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures: |
|
|
|
|
||||
Trade accounts receivable |
|
(1,709) |
|
|
33,594 |
|
||
Inventories |
|
(21,959) |
|
|
18,987 |
|
||
Prepaid expenses and other |
|
(2,779) |
|
|
(1,627) |
|
||
Other assets |
|
42 |
|
|
570 |
|
||
Trade accounts payable |
|
(6,274) |
|
|
(20,078) |
|
||
Accrued liabilities |
|
1,908 |
|
|
(7,895) |
|
||
Non-current liabilities |
|
(3,909) |
|
|
(1,952) |
|
||
Net cash provided by (used for) operating activities |
|
17,942 |
|
|
46,943 |
|
||
|
|
|
|
|
||||
Investing activities: |
|
|
|
|
||||
Proceeds from sales of marketable securities |
|
2,734 |
|
|
1,034 |
|
||
Purchases of marketable securities |
|
(4,768) |
|
|
(1,759) |
|
||
Capital expenditures |
|
(6,752) |
|
|
(2,779) |
|
||
Proceeds from sale of building, net of transaction costs |
|
461 |
|
|
5,453 |
|
||
Proceeds from insurance reimbursement |
|
482 |
|
|
— |
|
||
Purchase of business, net of cash acquired |
|
(472,954) |
|
|
— |
|
||
Dividend received from equity method investment |
|
— |
|
|
587 |
|
||
Net cash provided by (used for) investing activities |
|
(480,797) |
|
|
2,536 |
|
||
|
|
|
|
|
||||
Financing activities: |
|
|
|
|
||||
Proceeds from issuance of common stock |
|
1,412 |
|
|
429 |
|
||
Borrowings under line-of-credit agreements |
|
— |
|
|
25,000 |
|
||
Repayment of debt |
|
(461,286) |
|
|
(2,225) |
|
||
Proceeds from issuance of long-term debt |
|
650,000 |
|
|
— |
|
||
Proceeds from equity offering |
|
207,000 |
|
|
— |
|
||
Fees related to debt and equity offering |
|
(25,292) |
|
|
(826) |
|
||
Cash inflows from hedging activities |
|
7,007 |
|
|
— |
|
||
Cash outflows from hedging activities |
|
(6,927) |
|
|
— |
|
||
Payment of dividends |
|
(3,145) |
|
|
(2,860) |
|
||
Other |
|
(1,909) |
|
|
(982) |
|
||
Net cash provided by (used for) financing activities |
|
366,860 |
|
|
18,536 |
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(821) |
|
|
4,091 |
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
(96,816) |
|
|
72,106 |
|
||
Cash, cash equivalents, and restricted cash at beginning of year |
|
202,377 |
|
|
114,700 |
|
||
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
105,561 |
|
|
$ |
186,806 |
|
Q2 FY 2022 |
||||||||||||||
|
|
Quarter |
|
Year To Date |
||||||||||
($ in millions) |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
||||||
Fiscal 2021 Sales |
|
$ |
157.8 |
|
|
|
|
$ |
296.9 |
|
|
|
||
Acquisitions |
|
33.5 |
|
|
21.3 |
% |
|
67.7 |
|
|
22.8 |
% |
||
Volume |
|
26.4 |
|
|
16.7 |
% |
|
57.7 |
|
|
19.4 |
% |
||
Pricing |
|
4.0 |
|
|
2.5 |
% |
|
6.0 |
|
|
2.0 |
% |
||
Foreign currency translation |
|
1.9 |
|
|
1.2 |
% |
|
8.8 |
|
|
3.0 |
% |
||
Total change |
|
$ |
65.8 |
|
|
41.7 |
% |
|
$ |
140.2 |
|
|
47.2 |
% |
Fiscal 2022 Sales |
|
$ |
223.6 |
|
|
|
|
$ |
437.1 |
|
|
|
||
Q2 FY 2022 |
|||||||
($ in millions) |
Quarter |
|
Year To Date |
||||
Fiscal 2021 Gross Profit |
$ |
56.0 |
|
|
$ |
100.8 |
|
Acquisition |
13.3 |
|
|
27.3 |
|
||
Sales volume and mix |
8.2 |
|
|
19.9 |
|
||
Productivity, net of other cost changes |
5.5 |
|
|
8.2 |
|
||
Foreign currency translation |
0.6 |
|
|
3.0 |
|
||
Prior year factory closure costs |
0.5 |
|
|
2.4 |
|
||
Pricing, net of material cost inflation |
0.9 |
|
|
1.6 |
|
||
Prior year business realignment costs |
— |
|
|
0.3 |
|
||
Acquisition integration costs |
— |
|
|
(0.5) |
|
||
Business realignment costs |
(0.9) |
|
|
(0.9) |
|
||
Tariffs |
(0.8) |
|
|
(1.7) |
|
||
Prior year gain on sale of building |
(2.2) |
|
|
(2.2) |
|
||
Acquisition inventory step-up expense |
— |
|
|
(3.0) |
|
||
Total change |
25.1 |
|
|
54.4 |
|
||
Fiscal 2022 Gross Profit |
$ |
81.1 |
|
|
$ |
155.2 |
|
|
||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
FY 22 |
|
63 |
|
64 |
|
61 |
|
63 |
|
251 |
|
|
|
|
|
|
|
|
|
|
|
FY 21 |
|
63 |
|
64 |
|
61 |
|
63 |
|
251 |
Additional Data - UNAUDITED |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Backlog |
|
$ |
255.6 |
|
|
|
$ |
247.4 |
|
|
|
$ |
171.7 |
|
|
|
$ |
146.6 |
|
|
Long-term backlog |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expected to ship beyond 3 months |
|
$ |
110.5 |
|
|
|
$ |
107.3 |
|
|
|
$ |
68.0 |
|
|
|
$ |
60.8 |
|
|
Long-term backlog as % of total backlog |
|
43.2 |
|
% |
|
43.4 |
|
% |
|
39.6 |
|
% |
|
41.5 |
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Days sales outstanding |
|
51.0 |
|
days |
|
52.5 |
|
days |
|
51.5 |
|
days |
|
53.4 |
|
days |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Inventory turns per year |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(based on cost of products sold) |
|
3.9 |
|
turns |
|
4.0 |
|
turns |
|
4.4 |
|
turns |
|
3.6 |
|
turns |
||||
Days' inventory |
|
94.7 |
|
days |
|
90.8 |
|
days |
|
83.3 |
|
days |
|
100.5 |
|
days |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Days payables outstanding |
|
54.3 |
|
days |
|
52.4 |
|
days |
|
58.7 |
|
days |
|
41.0 |
|
days |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Working capital as a % of sales |
|
14.4 |
|
% |
|
12.5 |
|
% |
|
9.3 |
|
% |
|
14.1 |
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used for) operating activities |
|
$ |
25.3 |
|
|
|
$ |
(7.4) |
|
|
|
$ |
26.9 |
|
|
|
$ |
37.4 |
|
|
Capital expenditures |
|
$ |
3.1 |
|
|
|
$ |
3.6 |
|
|
|
$ |
6.4 |
|
|
|
$ |
1.7 |
|
|
Free cash flow (1) |
|
$ |
22.2 |
|
|
|
$ |
(11.0) |
|
|
|
$ |
20.5 |
|
|
|
$ |
35.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt to total capitalization percentage |
|
38.1 |
|
% |
|
38.8 |
|
% |
|
32.0 |
|
% |
|
36.4 |
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt, net of cash, to net total capitalization |
|
32.1 |
|
% |
|
33.8 |
|
% |
|
8.1 |
|
% |
|
15.6 |
|
% |
||||
(1) Free cash flow is defined as cash from operations less capital expenditures. Free cash flow is not a measure determined in accordance with generally accepted accounting principles in
Components may not add due to rounding.
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit ($ in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
GAAP gross profit |
$ |
81,135 |
|
|
$ |
56,025 |
|
|
$ |
155,198 |
|
|
$ |
100,822 |
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
Acquisition inventory step-up expense |
— |
|
|
— |
|
|
2,981 |
|
|
— |
|
||||
Business realignment costs |
914 |
|
|
— |
|
|
914 |
|
|
329 |
|
||||
Acquisition integration costs |
— |
|
|
— |
|
|
521 |
|
|
— |
|
||||
Factory closures |
— |
|
|
493 |
|
|
— |
|
|
2,421 |
|
||||
Gain on sale of building |
— |
|
|
(2,189) |
|
|
— |
|
|
(2,189) |
|
||||
Non-GAAP adjusted gross profit |
$ |
82,049 |
|
|
$ |
54,329 |
|
|
$ |
159,614 |
|
|
$ |
101,383 |
|
|
|
|
|
|
|
|
|
||||||||
Sales |
$ |
223,635 |
|
|
$ |
157,790 |
|
|
$ |
437,099 |
|
|
$ |
296,860 |
|
Gross margin - GAAP |
36.3 |
% |
|
35.5 |
% |
|
35.5 |
% |
|
34.0 |
% |
||||
Adjusted gross margin - Non-GAAP |
36.7 |
% |
|
34.4 |
% |
|
36.5 |
% |
|
34.2 |
% |
||||
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
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations ($ in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
GAAP income from operations |
$ |
23,660 |
|
|
$ |
15,820 |
|
|
$ |
34,406 |
|
|
$ |
17,609 |
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
Acquisition deal and integration costs |
632 |
|
|
— |
|
|
9,874 |
|
|
— |
|
||||
Acquisition inventory step-up expense |
— |
|
|
— |
|
|
2,981 |
|
|
— |
|
||||
Business realignment costs |
1,200 |
|
|
— |
|
|
1,823 |
|
|
821 |
|
||||
Factory closures |
— |
|
|
747 |
|
|
— |
|
|
3,003 |
|
||||
Insurance recovery legal costs |
— |
|
|
88 |
|
|
— |
|
|
229 |
|
||||
Gain on sale of building |
— |
|
|
(2,638) |
|
|
— |
|
|
(2,638) |
|
||||
Non-GAAP adjusted income from operations |
$ |
25,492 |
|
|
$ |
14,017 |
|
|
$ |
49,084 |
|
|
$ |
19,024 |
|
|
|
|
|
|
|
|
|
||||||||
Sales |
$ |
223,635 |
|
|
$ |
157,790 |
|
|
$ |
437,099 |
|
|
$ |
296,860 |
|
Operating margin - GAAP |
10.6 |
% |
|
10.0 |
% |
|
7.9 |
% |
|
5.9 |
% |
||||
Adjusted operating margin - Non-GAAP |
11.4 |
% |
|
8.9 |
% |
|
11.2 |
% |
|
6.4 |
% |
||||
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
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 |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
GAAP net income (loss) |
$ |
15,203 |
|
|
$ |
(4,104) |
|
|
$ |
7,940 |
|
|
$ |
(7,073) |
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
6,285 |
|
|
3,192 |
|
|
12,394 |
|
|
6,307 |
|
||||
Cost of debt refinancing |
— |
|
|
— |
|
|
14,803 |
|
|
— |
|
||||
Acquisition deal and integration costs |
632 |
|
|
— |
|
|
9,874 |
|
|
— |
|
||||
Acquisition inventory step-up expense |
— |
|
|
— |
|
|
2,981 |
|
|
— |
|
||||
Business realignment costs |
1,200 |
|
|
— |
|
|
1,823 |
|
|
821 |
|
||||
Non-cash pension settlement expense |
— |
|
|
16,324 |
|
|
— |
|
|
19,046 |
|
||||
Factory closures |
— |
|
|
747 |
|
|
— |
|
|
3,003 |
|
||||
Insurance recovery legal costs |
— |
|
|
88 |
|
|
— |
|
|
229 |
|
||||
Gain on sale of building |
— |
|
|
(2,638) |
|
|
— |
|
|
(2,638) |
|
||||
Normalize tax rate to |
(1,946) |
|
|
(3,029) |
|
|
(9,738) |
|
|
(5,119) |
|
||||
Non-GAAP adjusted net income |
$ |
21,374 |
|
|
$ |
10,580 |
|
|
$ |
40,077 |
|
|
$ |
14,576 |
|
|
|
|
|
|
|
|
|
||||||||
Average diluted shares outstanding |
28,756 |
|
|
24,123 |
|
|
27,957 |
|
|
24,030 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted income (loss) per share - GAAP |
$ |
0.53 |
|
|
$ |
(0.17) |
|
|
$ |
0.28 |
|
|
$ |
(0.30) |
|
|
|
|
|
|
|
|
|
||||||||
Diluted income per share - Non-GAAP |
$ |
0.74 |
|
|
$ |
0.44 |
|
|
$ |
1.43 |
|
|
$ |
0.61 |
|
(1) Applies a normalized tax rate of
Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangible assets, and also adjusted for a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in accordance with generally accepted accounting principles in
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA ($ in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
GAAP net income (loss) |
$ |
15,203 |
|
|
$ |
(4,104) |
|
|
$ |
7,940 |
|
|
$ |
(7,073) |
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
4,083 |
|
|
(45) |
|
|
1,566 |
|
|
(1,008) |
|
||||
Interest and debt expense |
4,587 |
|
|
3,018 |
|
|
10,399 |
|
|
6,206 |
|
||||
Investment (income) loss |
(115) |
|
|
(357) |
|
|
(548) |
|
|
(934) |
|
||||
Foreign currency exchange (gain) loss |
441 |
|
|
397 |
|
|
535 |
|
|
481 |
|
||||
Other (income) expense, net |
(539) |
|
|
16,911 |
|
|
(289) |
|
|
19,937 |
|
||||
Depreciation and amortization expense |
10,502 |
|
|
7,129 |
|
|
20,969 |
|
|
14,210 |
|
||||
Cost of debt refinancing |
— |
|
|
— |
|
|
14,803 |
|
|
— |
|
||||
Acquisition deal and integration costs |
632 |
|
|
— |
|
|
9,874 |
|
|
— |
|
||||
Acquisition inventory step-up expense |
— |
|
|
— |
|
|
2,981 |
|
|
— |
|
||||
Business realignment costs |
1,200 |
|
|
— |
|
|
1,823 |
|
|
821 |
|
||||
Factory closures |
— |
|
|
747 |
|
|
— |
|
|
3,003 |
|
||||
Insurance recovery legal costs |
— |
|
|
88 |
|
|
— |
|
|
229 |
|
||||
Gain on sale of building |
— |
|
|
(2,638) |
|
|
— |
|
|
(2,638) |
|
||||
Non-GAAP adjusted EBITDA |
$ |
35,994 |
|
|
$ |
21,146 |
|
|
$ |
70,053 |
|
|
$ |
33,234 |
|
|
|
|
|
|
|
|
|
||||||||
Sales |
$ |
223,635 |
|
|
$ |
157,790 |
|
|
$ |
437,099 |
|
|
$ |
296,860 |
|
Net income (loss) margin - GAAP |
6.8 |
% |
|
(2.6) |
% |
|
1.8 |
% |
|
(2.4) |
% |
||||
Adjusted EBITDA margin - Non-GAAP |
16.1 |
% |
|
13.4 |
% |
|
16.0 |
% |
|
11.2 |
% |
||||
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005231/en/
Vice President - Finance and Chief Financial Officer
716-689-5442
greg.rustowicz@cmworks.com
Investor Relations:
716-843-3908
dpawlowski@keiadvisors.com
Source:
FAQ
What were Columbus McKinnon's earnings for Q2 FY 2022?
How did the acquisition of Dorner Manufacturing impact CMCO's financial results?
What is Columbus McKinnon's revenue outlook for Q3 FY 2022?
What factors contributed to CMCO's revenue growth in Q2 FY 2022?
