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Columbus McKinnon Sales Increased 7% for First Quarter Fiscal Year 2024

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Columbus McKinnon Corporation (Nasdaq: CMCO) Announces Strong First Quarter Fiscal 2024 Results and Acquisition of montratec. The company reported strong orders of $257.0 million, a record backlog of $355.3 million, and sales of $235.5 million, with a 7% increase compared to the prior-year period. Gross margin expanded 90 basis points to 36.8%, and $10 million in debt was paid down. The company expects to surpass $1 billion in revenue in fiscal 2024 and is on track to achieve fiscal 2027 targets.
Positive
  • Strong orders and record backlog indicate positive market demand and growth potential
  • Sales increased by 7% compared to the prior-year period, driven by strength in EMEA and APAC, and strong automation and linear motion sales in the Americas
  • Gross margin expansion demonstrates improved operational efficiency and cost management
  • Debt reduction and plans to pay down additional debt in fiscal 2024 show financial discipline and stability
  • Positive outlook with expectations to surpass $1 billion in revenue in fiscal 2024 and achieve fiscal 2027 targets
Negative
  • None.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- 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 first quarter, which ended June 30, 2023. Results include the addition of montratec®, which was acquired on May 31, 2023 (“the acquisition”).

First Quarter Highlights (compared with prior-year period, except where otherwise noted)

  • Strong orders in quarter of $257.0 million with book-to-bill ratio of 1.1x
  • Record backlog of $355.3 million includes $23.4 million from the acquisition
  • Sales of $235.5 million for first quarter fiscal 2024 increased 7%
  • Gross margin expanded 90 basis points sequentially to 36.8%
  • Paid down $10 million in debt; net debt leverage ratio at 2.9x1; plan to pay down
    $40 million in debt in fiscal 2024
  • Expect to surpass $1 billion in revenue in fiscal 2024; on track to achieve fiscal 2027 targets

David J. Wilson, President and CEO, commented, “Our first quarter results further demonstrate the progress we are making with the transformation of Columbus McKinnon into a higher growth, stronger margin business. Sales grew 7%, driven by strength in EMEA and APAC, and strong automation and linear motion sales in the Americas. This growth more than offset year-over-year shifts in e-commerce demand. We are encouraged by our end market activity and the progress we are making as an organization. We are focusing resources on end markets and opportunities with strong secular tailwinds such as life sciences, EVs, and industrial automation. Within this framework, we are driving to increase market share and capitalize on these favorable megatrends. Additionally, our continued efforts to simplify the business, manage costs and drive efficiencies underpin our sequential gross margin improvement.”

He added, “In our first month of ownership, the montratec acquisition contributed $2.7 million in sales. We are excited about the technology and opportunities that montratec adds to our precision conveying portfolio. We expect strong growth out of the business and look to further its potential, especially as we broaden exposure in the U.S. market. It is important to note that we successfully completed the refinancing of our debt related to the acquisition. This effort resulted in lower cost debt and eliminated the need for testing compliance with our financial covenant. Notably, with our debt reduction plans and growth for the year, we expect to reduce our net debt leverage ratio to under 2.5x1 by the end of the fiscal year.”

_____________________________
1 On a financial covenant basis per Amended and Restated Credit Agreement

First Quarter Fiscal 2024 Sales

($ in millions)

Q1 FY 24

 

Q1 FY 23

 

Change

 

% Change

Net sales

$

235.5

 

 

$

220.3

 

 

$

15.2

 

 

6.9

%

U.S. sales

$

136.1

 

 

$

138.7

 

 

$

(2.6

)

 

(1.9

)%

% of total

 

58

%

 

 

63

%

 

 

 

 

Non-U.S. sales

$

99.4

 

 

$

81.6

 

 

$

17.8

 

 

21.8

%

% of total

 

42

%

 

 

37

%

 

 

 

 

For the quarter, sales increased $15.2 million, or 6.9%. The acquisition contributed $2.7 million, or 1.2%, in sales. Sales outside the U.S. were driven by increased volume of $13.5 million, or 16.5%, price improvement of $1.4 million, or 1.7%, $2.6 million of sales related to the acquisition, as well as favorable foreign currency translation of $0.3M. In the U.S., price improved $7.1 million, or 5.1%, while volume decreased $9.8 million, or 7.1%.

First Quarter Fiscal 2024 Operating Results

($ in millions)

Q1 FY 24

 

Q1 FY 23

 

Change

 

% Change

Gross profit

$

86.6

 

 

$

82.5

 

 

$

4.1

 

 

5.0

%

Gross margin

 

36.8

%

 

 

37.5

%

 

(70) bps

 

 

Adjusted gross profit*

$

86.8

 

 

$

82.5

 

 

$

4.3

 

 

5.2

%

Adjusted gross margin*

 

36.9

%

 

 

37.5

%

 

(60) bps

 

 

Income from operations

$

21.4

 

 

$

22.8

 

 

$

(1.4

)

 

(6.0

)%

Operating margin

 

9.1

%

 

 

10.4

%

 

(130 bps)

 

 

Adjusted income from operations*

$

25.8

 

 

$

24.6

 

 

$

1.2

 

 

4.9

%

Adjusted operating margin*

 

10.9

%

 

 

11.1

%

 

(20) bps

 

 

Net income (loss)

$

9.3

 

 

$

8.4

 

 

$

0.9

 

 

10.5

%

Net income (loss) margin

 

3.9

%

 

 

3.8

%

 

10 bps

 

 

Diluted EPS

$

0.32

 

 

$

0.29

 

 

$

0.03

 

 

10.3

%

Adjusted EPS*

$

0.62

 

 

$

0.69

 

 

$

(0.07

)

 

(10.1

)%

Adjusted EBITDA*

$

36.6

 

 

$

35.0

 

 

$

1.6

 

 

4.6

%

Adjusted EBITDA margin*

 

15.6

%

 

 

15.9

%

 

(30) 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 operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.

Adjusted earnings per diluted share of $0.62 excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.

Second Quarter Fiscal 2024 Outlook

Columbus McKinnon expects second quarter fiscal 2024 sales of approximately $250 million to $260 million at current exchange rates.

Mr. Wilson concluded, “We had a solid start to the year with 5% sequential order growth, 7% year-over-year sales growth and sequential gross margin improvement that supports our objective to expand gross margin by 50 to 100 basis points for the year. Demand for our products and solutions combined with progress we are making to improve our customers’ experience are reflected in the over $500 million of new business we have booked in the last six months. This, along with the addition of montratec, drove record backlog of $355 million, further reinforcing our expectation to exceed $1 billion in revenue in fiscal 2024. Fundamentally, we are gaining more traction with our strategy to be the global leader of intelligent motion solutions for material handling and believe our results demonstrate this progress.”

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 412-317-6026. 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, August 9, 2023. To listen to the archived call, dial 412-317-6671 and enter the conference ID number 10180167. 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 EBITDA margins, 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 certain goals. 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 revenue and adjusted EBITDA 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. 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

 

 

 

 

June 30,
2023

 

June 30,
2022

 

Change

Net sales

 

$

235,492

 

 

$

220,287

 

 

6.9

%

Cost of products sold

 

 

148,843

 

 

 

137,768

 

 

8.0

%

Gross profit

 

 

86,649

 

 

 

82,519

 

 

5.0

%

Gross profit margin

 

 

36.8

%

 

 

37.5

%

 

 

Selling expenses

 

 

24,981

 

 

 

26,156

 

 

(4.5

)%

% of net sales

 

 

10.6

%

 

 

11.9

%

 

 

General and administrative expenses

 

 

27,443

 

 

 

21,881

 

 

25.4

%

% of net sales

 

 

11.7

%

 

 

9.9

%

 

 

Research and development expenses

 

 

5,900

 

 

 

5,130

 

 

15.0

%

% of net sales

 

 

2.5

%

 

 

2.3

%

 

 

Amortization of intangibles

 

 

6,877

 

 

 

6,535

 

 

5.2

%

Income from operations

 

$

21,448

 

 

$

22,817

 

 

(6.0

)%

Operating margin

 

 

9.1

%

 

 

10.4

%

 

 

Interest and debt expense

 

 

8,625

 

 

 

6,203

 

 

39.0

%

Investment (income) loss

 

 

(543

)

 

 

430

 

 

NM

 

Foreign currency exchange (gain) loss

 

 

483

 

 

 

1,203

 

 

(59.9

)%

Other (income) expense, net

 

 

214

 

 

 

(2,303

)

 

NM

 

Income (loss) before income tax expense (benefit)

 

$

12,669

 

 

 

17,284

 

 

(26.7

)%

Income tax expense (benefit)

 

 

3,394

 

 

 

8,893

 

 

(61.8

)%

Net income (loss)

 

$

9,275

 

 

$

8,391

 

 

10.5

%

 

 

 

 

 

 

 

Average basic shares outstanding

 

 

28,662

 

 

 

28,544

 

 

0.4

%

Basic income (loss) per share

 

$

0.32

 

 

$

0.29

 

 

10.3

%

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

28,906

 

 

 

28,699

 

 

0.7

%

Diluted income (loss) per share

 

$

0.32

 

 

$

0.29

 

 

10.3

%

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

June 30,
2023

 

March 31, 2023

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

106,994

 

 

$

133,176

 

Trade accounts receivable

 

$

165,050

 

 

$

151,451

 

Inventories

 

$

204,747

 

 

$

179,359

 

Prepaid expenses and other

 

$

37,435

 

 

$

32,254

 

Total current assets

 

$

514,226

 

 

$

496,240

 

 

 

 

 

 

Property, plant, and equipment, net

 

$

98,372

 

 

$

94,360

 

Goodwill

 

$

731,953

 

 

$

644,629

 

Other intangibles, net

 

$

409,541

 

 

$

362,537

 

Marketable securities

 

$

10,253

 

 

$

10,368

 

Deferred taxes on income

 

$

2,145

 

 

$

2,035

 

Other assets

 

$

93,019

 

 

$

88,286

 

Total assets

 

$

1,859,509

 

 

$

1,698,455

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Trade accounts payable

 

$

77,378

 

 

$

76,736

 

Accrued liabilities

 

$

145,927

 

 

$

124,317

 

Current portion of long-term debt and finance lease obligations

 

$

40,619

 

 

$

40,604

 

Total current liabilities

 

$

263,924

 

 

$

241,657

 

 

 

 

 

 

Term loan, AR securitization facility and finance lease obligations

 

$

539,150

 

 

$

430,988

 

Other non current liabilities

 

$

209,478

 

 

$

192,013

 

Total liabilities

 

$

1,012,552

 

 

$

864,658

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Common stock

 

$

287

 

 

$

286

 

Treasury stock

 

$

(1,001

)

 

$

(1,001

)

Additional paid in capital

 

$

516,197

 

 

$

515,797

 

Retained earnings

 

$

366,033

 

 

$

356,758

 

Accumulated other comprehensive loss

 

$

(34,559

)

 

$

(38,043

)

Total shareholders’ equity

 

$

846,957

 

 

$

833,797

 

Total liabilities and shareholders’ equity

 

$

1,859,509

 

 

$

1,698,455

 

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

 

 

 

Three Months Ended

 

 

June 30,
2023

 

June 30,
2022

Operating activities:

 

 

 

 

Net income (loss)

 

$

9,275

 

 

$

8,391

 

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

 

 

 

 

Depreciation and amortization

 

$

10,890

 

 

$

10,469

 

Deferred income taxes and related valuation allowance

 

$

(1,825

)

 

$

1,272

 

Net loss (gain) on sale of real estate, investments and other

 

$

(467

)

 

$

485

 

Stock-based compensation

 

$

1,981

 

 

$

751

 

Amortization of deferred financing costs

 

$

483

 

 

$

430

 

Loss (gain) on hedging instruments

 

$

231

 

 

$

(192

)

Loss on retirement of fixed asset

 

$

 

 

$

173

 

Non-cash lease expense

 

$

2,389

 

 

$

2,139

 

Changes in operating assets and liabilities, net of effects of business acquisitions:

 

 

 

 

Trade accounts receivable

 

$

(7,649

)

 

$

11,265

 

Inventories

 

$

(19,214

)

 

$

(21,467

)

Prepaid expenses and other

 

$

(2,800

)

 

$

359

 

Other assets

 

$

(636

)

 

$

(143

)

Trade accounts payable

 

$

1,718

 

 

$

(15,720

)

Accrued liabilities

 

$

(8,668

)

 

$

(6,938

)

Non-current liabilities

 

$

(2,955

)

 

$

(2,451

)

Net cash provided by (used for) operating activities

 

$

(17,247

)

 

$

(11,177

)

 

 

 

 

 

Investing activities:

 

 

 

 

Proceeds from sales of marketable securities

 

$

1,100

 

 

$

650

 

Purchases of marketable securities

 

$

(906

)

 

$

(1,226

)

Capital expenditures

 

$

(5,273

)

 

$

(2,953

)

Purchases of businesses, net of cash acquired

 

$

(107,605

)

 

$

(1,616

)

Dividend received from equity method investment

 

$

 

 

$

313

 

Net cash provided by (used for) investing activities

 

$

(112,684

)

 

$

(4,832

)

 

 

 

 

 

Financing activities:

 

 

 

 

Proceeds from the issuance of common stock

 

$

225

 

 

$

415

 

Repayment of debt

 

$

(10,143

)

 

$

(10,128

)

Proceeds from issuance of long-term debt

 

$

120,000

 

 

$

 

Fees paid for borrowings on long-term debt

 

$

(2,046

)

 

$

 

Cash inflows from hedging activities

 

$

6,053

 

 

$

6,163

 

Cash outflows from hedging activities

 

$

(6,298

)

 

$

(6,022

)

Payment of dividends

 

$

(2,004

)

 

$

(1,996

)

Other

 

$

(1,802

)

 

$

(1,313

)

Net cash provided by (used for) financing activities

 

$

103,985

 

 

$

(12,881

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

$

(236

)

 

$

(840

)

 

 

 

 

 

Net change in cash and cash equivalents

 

$

(26,182

)

 

$

(29,730

)

Cash, cash equivalents, and restricted cash at beginning of year

 

$

133,426

 

 

$

115,640

 

Cash, cash equivalents, and restricted cash at end of period

 

$

107,244

 

 

$

85,910

 

 

COLUMBUS McKINNON CORPORATION

Q1 FY 2024 Sales Bridge

 

 

 

Quarter

($ in millions)

 

$ Change

 

% Change

Fiscal 2023 Sales

 

$

220.3

 

 

Acquisition

 

 

2.7

 

1.2

%

Volume

 

 

3.7

 

1.7

%

Pricing

 

 

8.5

 

3.9

%

Foreign currency translation

 

 

0.3

 

0.1

%

Total change

 

$

15.2

 

6.9

%

Fiscal 2024 Sales

 

$

235.5

 

 

 

COLUMBUS McKINNON CORPORATION

Q1 FY 2024 Gross Profit Bridge

 

($ in millions)

Quarter

Fiscal 2023 Gross Profit

$

82.5

 

Price, net of material cost inflation

 

6.5

 

Sales volume and mix

 

(1.1

)

Acquisition

 

0.8

 

Current year business realignment costs

 

(0.2

)

Productivity and other cost changes

 

(2.0

)

Foreign currency translation

 

0.1

 

Total change

 

4.1

 

Fiscal 2024 Gross Profit

$

86.6

 

 

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 - UNAUDITED

 

 

 

June 30,
2023

 

March 31,
2023

 

June 30,
2022

($ in millions)

 

 

 

 

 

 

 

 

 

Backlog

 

$

355.3

 

 

 

$

308.7

 

 

$

351.6

 

 

Long-term backlog

 

 

 

 

 

 

 

 

 

Expected to ship beyond 3 months

 

$

177.3

 

 

 

$

142.0

 

 

$

162.8

 

 

Long-term backlog as % of total backlog

 

 

49.9

%

 

 

46.0

%

 

 

46.3

%

 

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

 

 

 

 

 

 

 

 

Days sales outstanding (2)

 

 

62.9

 

days

 

 

54.3

days

 

 

54.9

 

days

 

 

 

 

 

 

 

 

 

 

 

Inventory turns per year (2)

 

 

 

 

 

 

 

 

 

 

(based on cost of products sold)

 

 

2.9

 

turns

 

 

3.6

turns

 

 

2.9

 

turns

Days' inventory

 

 

125.9

 

days

 

 

101.4

days

 

 

125.4

 

days

 

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

 

 

 

 

 

 

 

 

 

Days payables outstanding (2)

 

 

53.3

 

days

 

 

53.3

days

 

 

58.6

 

days

 

 

 

 

 

 

 

 

 

 

 

Working capital as a % of sales (2)(3)

 

 

21.4

%

 

 

17.3

%

 

 

19.9

%

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

(17.2

)

 

 

$

66.7

 

 

$

(11.2

)

 

Capital expenditures

 

$

5.3

 

 

 

$

3.1

 

 

$

3.0

 

 

Free cash flow (1)

 

$

(22.5

)

 

 

$

63.6

 

 

$

(14.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capitalization percentage

 

 

40.6

%

 

 

36.1

%

 

 

39.3

%

 

 

 

 

 

 

 

 

 

 

 

Debt, net of cash, to net total capitalization

 

 

35.8

%

 

 

28.9

%

 

 

34.9

%

(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 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 information, such as free cash flow, is important for investors and other readers of the Company’s financial statements.
Components may not add due to rounding.
(2)June 30, 2023, March 31, 2023, and June 30, 2022 figures exclude the impact of the acquisition of montratec.
(3)June 30, 2022 figure excludes the impact of the acquisition of Garvey.
 

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit

($ in thousands)

 

 

Three Months Ended

 

June 30, 2023

 

June 30, 2022

GAAP gross profit

$

86,649

 

 

$

82,519

 

Add back (deduct):

 

 

 

Business realignment costs

 

196

 

 

 

 

Non-GAAP adjusted gross profit

$

86,845

 

 

$

82,519

 

 

 

 

 

Sales

$

235,492

 

 

$

220,287

 

 

 

 

 

Gross margin - GAAP

 

36.8

%

 

 

37.5

%

Adjusted gross margin - Non-GAAP

 

36.9

%

 

 

37.5

%

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 information, 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

 

June 30, 2023

 

June 30, 2022

GAAP income from operations

$

21,448

 

 

$

22,817

 

Add back (deduct):

 

 

 

Acquisition deal and integration costs

 

2,587

 

 

 

86

 

Business realignment costs

 

375

 

 

 

1,657

 

North American warehouse consolidation

 

117

 

 

 

 

Headquarter relocation costs

 

1,228

 

 

 

 

Non-GAAP adjusted income from operations

$

25,755

 

 

$

24,560

 

 

 

 

 

Sales

$

235,492

 

 

$

220,287

 

 

 

 

 

Operating margin - GAAP

 

9.1

%

 

 

10.4

%

Adjusted operating margin - Non-GAAP

 

10.9

%

 

 

11.1

%

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 information, 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

 

June 30, 2023

 

June 30, 2022

GAAP net income (loss)

 

9,275

 

 

 

8,391

Add back (deduct):

 

 

 

Amortization of intangibles

 

6,877

 

 

 

6,535

Acquisition deal and integration costs

 

2,587

 

 

 

86

Business realignment costs

 

375

 

 

 

1,657

North American warehouse consolidation

 

117

 

 

 

Headquarter relocation costs

 

1,228

 

 

 

Normalize tax rate (1)

 

(2,569

)

 

 

3,269

Non-GAAP adjusted net income

 

17,890

 

 

 

19,938

 

 

 

 

Average diluted shares outstanding

 

28,906

 

 

 

28,699

 

 

 

 

Diluted income (loss) per share - GAAP

$

0.32

 

 

$

0.29

 

 

 

 

Diluted income per share - Non-GAAP

$

0.62

 

 

$

0.69

(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 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 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 information, such as adjusted net income and 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 representing 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 GAAP Net Income to Non-GAAP Adjusted EBITDA

($ in thousands)

 

 

Three Months Ended

 

June 30, 2023

 

June 30, 2022

GAAP net income (loss)

$

9,275

 

 

$

8,391

 

Add back (deduct):

 

 

 

Income tax expense (benefit)

 

3,394

 

 

 

8,893

 

Interest and debt expense

 

8,625

 

 

 

6,203

 

Investment (income) loss

 

(543

)

 

 

430

 

Foreign currency exchange (gain) loss

 

483

 

 

 

1,203

 

Other (income) expense, net

 

214

 

 

 

(2,303

)

Depreciation and amortization expense

 

10,890

 

 

 

10,469

 

Acquisition deal and integration costs

 

2,587

 

 

 

86

 

Business realignment costs

 

375

 

 

 

1,657

 

North American warehouse consolidation

 

117

 

 

 

 

Headquarter relocation costs

 

1,228

 

 

 

 

Non-GAAP adjusted EBITDA

$

36,645

 

 

$

35,029

 

 

 

 

 

Sales

$

235,492

 

 

$

220,287

 

 

 

 

 

Net income (loss) margin - GAAP

 

3.9

%

 

 

3.8

%

Adjusted EBITDA margin - Non-GAAP

 

15.6

%

 

 

15.9

%

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 information, such as adjusted EBITDA, is important for investors and other readers of the Company’s financial statements.

Gregory P. Rustowicz

Executive Vice President - Finance and CFO

Columbus McKinnon Corporation

716-689-5442

greg.rustowicz@cmworks.com



Investor Relations:

Deborah K. Pawlowski

Kei Advisors LLC

716-843-3908

dpawlowski@keiadvisors.com

Source: Columbus McKinnon Corporation

FAQ

What are Columbus McKinnon Corporation's first quarter fiscal 2024 results?

The company reported strong orders of $257.0 million, a record backlog of $355.3 million, and sales of $235.5 million, with a 7% increase compared to the prior-year period.

What is the gross margin for the first quarter fiscal 2024?

The gross margin expanded 90 basis points sequentially to 36.8%.

What are the company's debt reduction plans?

The company paid down $10 million in debt and plans to pay down an additional $40 million in debt in fiscal 2024.

What are the company's revenue expectations for fiscal 2024?

The company expects to surpass $1 billion in revenue in fiscal 2024 and is on track to achieve fiscal 2027 targets.

What acquisition did Columbus McKinnon Corporation make?

The company acquired montratec, which contributed $2.7 million in sales in the first month of ownership.

Columbus McKinnon Corp/NY

NASDAQ:CMCO

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1.03B
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Farm & Heavy Construction Machinery
Construction Machinery & Equip
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United States of America
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