Columbus McKinnon Reports Record Sales of $253.8 Million
and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
BUFFALO, N.Y.–(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 2023 fourth quarter, which ended March 31, 2023.
Fiscal Year and Fourth Quarter 2023 Highlights (compared with prior year periods)
- Set records in fiscal 2023 for sales, gross margin and operating income
- Strong execution resulted in record fiscal 2023 sales of $936.2 million and record fourth quarter sales of $253.8 million; FX negatively impacted revenue by $30.6 million for the year
- Achieved record annual gross margin of 36.5%, a 170 basis point improvement; fourth quarter gross margin expanded 220 basis points to 35.9%
- Operational leverage drove operating income records of $97.8 million for the year and
$27.5 million for the quarter - Generated $83.6 million in cash from operations for the year; delivered $66.7 million in cash from operations in the quarter, strongest quarter on record
- Reduced net debt leverage ratio to 2.2x1 providing ample flexibility for montratec® acquisition expected to close by May 31st
- Continue to expect low-to-mid single digit revenue growth in fiscal 2024 plus additional benefits of montratec acquisition
David J. Wilson, President and CEO, commented, “We delivered record sales, gross margin, and operating income for fiscal 2023 as the team successfully executes our strategy to transform Columbus McKinnon into a higher growth, less cyclical business with stronger earnings power. We are driving improvements through the discipline of CMBS which includes our 80/20 process and investments in robust digital tools and processes to improve our customers’ experience. Our fiscal year and fourth quarter results demonstrate another proof point along our path toward our fiscal 2027 financial goals of $1.5 billion in revenue with adjusted EBITDA margin of approximately 21%.”
He continued, “We are thrilled to add montratec® to the portfolio as we enter fiscal 2024. montratec brings advanced automation technology to our precision conveying platform. With its rapid growth and attractive margin profile, montratec further propels our transformation. Importantly, our strong cash generation provides the financial flexibility to complete the acquisition and advance our strategy. We expect to close the deal in the next week.
“We are making substantial progress advancing our strategy and are executing to plan. I am excited about where we are headed as an enterprise.”
_____________________________
1 On a financial covenant basis per Amended and Restated Credit Agreement
Fourth Quarter Fiscal 2023 Sales
|
($ in millions) |
Q4 FY 23 |
|
Q4 FY 22 |
|
Change |
|
% Change |
||||||
|
Net sales |
$ |
253.8 |
|
|
$ |
253.4 |
|
|
$ |
0.4 |
|
0.2 |
% |
|
U.S. sales |
$ |
149.4 |
|
|
$ |
149.0 |
|
|
$ |
0.4 |
|
0.3 |
% |
|
% of total |
|
59 |
% |
|
|
59 |
% |
|
|
|
|
||
|
Non-U.S. sales |
$ |
104.4 |
|
|
$ |
104.4 |
|
|
$ |
— |
|
— |
% |
|
% of total |
|
41 |
% |
|
|
41 |
% |
|
|
|
|
||
For the quarter, sales increased $0.4 million, or 0.2%. Excluding a $4.2 million, or 1.7%, impact of foreign currency exchange, sales on a constant currency basis increased 1.8%. In the U.S., price improved $9.3 million, or 6.3%, which was partially offset by declining volume of $8.9 million, or 6.0%. Outside the U.S., price improved $5.1 million, or 4.9%, partially offset by declining volume of $0.9 million, or 0.8%.
Fourth Quarter Fiscal 2023 Operating Results
|
($ in millions) |
Q4 FY 23 |
|
Q4 FY 22 |
|
Change |
|
% Change |
||||||
|
Gross profit |
$ |
91.2 |
|
|
$ |
85.5 |
|
|
$ |
5.7 |
|
6.7 |
% |
|
Gross margin |
|
35.9 |
% |
|
|
33.7 |
% |
|
220 bps |
|
|
||
|
Adjusted gross profit* |
$ |
91.2 |
|
|
$ |
88.7 |
|
|
$ |
2.5 |
|
2.8 |
% |
|
Adjusted gross margin* |
|
35.9 |
% |
|
|
34.8 |
% |
|
110 bps |
|
|
||
|
Income from operations |
$ |
27.5 |
|
|
$ |
24.1 |
|
|
$ |
3.4 |
|
14.2 |
% |
|
Operating margin |
|
10.8 |
% |
|
|
9.5 |
% |
|
130 bps |
|
|
||
|
Adjusted income from operations* |
$ |
29.2 |
|
|
$ |
28.6 |
|
|
$ |
0.6 |
|
2.1 |
% |
|
Adjusted operating margin* |
|
11.5 |
% |
|
|
11.2 |
% |
|
30 bps |
|
|
||
|
Net income (loss) |
$ |
13.9 |
|
|
$ |
11.8 |
|
|
$ |
2.1 |
|
17.5 |
% |
|
Net income (loss) margin |
|
5.5 |
% |
|
|
4.7 |
% |
|
80 bps |
|
|
||
|
Diluted EPS |
$ |
0.48 |
|
|
$ |
0.41 |
|
|
$ |
0.07 |
|
17.1 |
% |
|
Adjusted EPS* |
$ |
0.80 |
|
|
$ |
0.79 |
|
|
$ |
0.01 |
|
1.3 |
% |
|
Adjusted EBITDA* |
$ |
39.7 |
|
|
$ |
39.3 |
|
|
$ |
0.4 |
|
1.0 |
% |
|
Adjusted EBITDA margin* |
|
15.7 |
% |
|
|
15.4 |
% |
|
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 were $0.80 in the fiscal 2023 fourth quarter compared with $0.79 in the prior year. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.
First Quarter Fiscal 2024 Outlook
Columbus McKinnon expects first quarter fiscal 2024 sales at current exchange rates to be in the range of
$235 million to $240 million including the first month of montratec, implying high-single digit growth at the mid-point of the range.
Mr. Wilson concluded, “We are encouraged by the opportunities we are identifying to grow our business at better than market rates. We are utilizing direct customer feedback to inform our actions, enhance customer experience and unlock the potential to earn greater market share. We are deepening our reach in more secular markets with enduring tailwinds and advancing our capabilities to sustain our leadership position in intelligent motion for material handling. We believe we are on track to deliver low-to-mid single digit revenue growth and further margin expansion in fiscal 2024.”
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.columbusmckinnon.com. A question-and-answer session will follow the formal discussion.
The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13738230. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, June 1, 2023. Alternatively, an archived webcast of the call can be found on the Company’s website. In addition, a transcript of the call will be posted to the website 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.columbusmckinnon.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 |
|
|
|||||||
|
|
|
March 31, 2023 |
|
March 31, 2022 |
|
Change |
|||||
|
Net sales |
|
$ |
253,843 |
|
|
$ |
253,368 |
|
|
0.2 |
% |
|
Cost of products sold |
|
|
162,625 |
|
|
|
167,893 |
|
|
(3.1 |
)% |
|
Gross profit |
|
|
91,218 |
|
|
|
85,475 |
|
|
6.7 |
% |
|
Gross profit margin |
|
|
35.9 |
% |
|
|
33.7 |
% |
|
|
|
|
Selling expenses |
|
|
25,331 |
|
|
|
27,080 |
|
|
(6.5 |
)% |
|
% of net sales |
|
|
10.0 |
% |
|
|
10.7 |
% |
|
|
|
|
General and administrative expenses |
|
|
26,353 |
|
|
|
23,633 |
|
|
11.5 |
% |
|
% of net sales |
|
|
10.4 |
% |
|
|
9.3 |
% |
|
|
|
|
Research and development expenses |
|
|
5,506 |
|
|
|
4,068 |
|
|
35.3 |
% |
|
% of net sales |
|
|
2.2 |
% |
|
|
1.6 |
% |
|
|
|
|
Amortization of intangibles |
|
|
6,559 |
|
|
|
6,635 |
|
|
(1.1 |
)% |
|
Income from operations |
|
|
27,469 |
|
|
|
24,059 |
|
|
14.2 |
% |
|
Operating margin |
|
|
10.8 |
% |
|
|
9.5 |
% |
|
|
|
|
Interest and debt expense |
|
|
7,668 |
|
|
|
5,352 |
|
|
43.3 |
% |
|
Investment (income) loss, net |
|
|
(483 |
) |
|
|
578 |
|
|
NM |
|
|
Foreign currency exchange loss (gain), net |
|
|
(1,037 |
) |
|
|
527 |
|
|
NM |
|
|
Other (income) expense, net |
|
|
(73 |
) |
|
|
(378 |
) |
|
NM |
|
|
Income before income tax expense |
|
|
21,394 |
|
|
|
17,980 |
|
|
19.0 |
% |
|
Income tax expense |
|
|
7,499 |
|
|
|
6,154 |
|
|
21.9 |
% |
|
Net income |
|
$ |
13,895 |
|
|
$ |
11,826 |
|
|
17.5 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average basic shares outstanding |
|
|
28,609 |
|
|
|
28,507 |
|
|
0.4 |
% |
|
Basic income per share |
|
$ |
0.49 |
|
|
$ |
0.41 |
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average diluted shares outstanding |
|
|
28,869 |
|
|
|
28,845 |
|
|
0.1 |
% |
|
Diluted income per share |
|
$ |
0.48 |
|
|
$ |
0.41 |
|
|
17.1 |
% |
|
|
|
|
|
|
|
|
|||||
|
Dividends declared per common share |
|
$ |
0.14 |
|
|
$ |
0.13 |
|
|
|
|
|
COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements – UNAUDITED (In thousands, except per share and percentage data) |
|||||||||||
|
|
|
Year Ended |
|
|
|||||||
|
|
|
March 31, 2023 |
|
March 31, 2022 |
|
Change |
|||||
|
Net sales |
|
$ |
936,240 |
|
|
$ |
906,555 |
|
|
3.3 |
% |
|
Cost of products sold |
|
|
594,141 |
|
|
|
590,825 |
|
|
0.6 |
% |
|
Gross profit |
|
|
342,099 |
|
|
|
315,730 |
|
|
8.4 |
% |
|
Gross profit margin |
|
|
36.5 |
% |
|
|
34.8 |
% |
|
|
|
|
Selling expenses |
|
|
102,528 |
|
|
|
99,187 |
|
|
3.4 |
% |
|
% of net sales |
|
|
11.0 |
% |
|
|
10.9 |
% |
|
|
|
|
General and administrative expenses |
|
|
94,794 |
|
|
|
102,128 |
|
|
(7.2 |
)% |
|
% of net sales |
|
|
10.1 |
% |
|
|
11.3 |
% |
|
|
|
|
Research and development expenses |
|
|
20,935 |
|
|
|
15,351 |
|
|
36.4 |
% |
|
% of net sales |
|
|
2.2 |
% |
|
|
1.7 |
% |
|
|
|
|
Amortization of intangibles |
|
|
26,001 |
|
|
|
25,283 |
|
|
2.8 |
% |
|
Income from operations |
|
|
97,841 |
|
|
|
73,781 |
|
|
32.6 |
% |
|
Operating margin |
|
|
10.5 |
% |
|
|
8.1 |
% |
|
|
|
|
Interest and debt expense |
|
|
27,942 |
|
|
|
20,126 |
|
|
38.8 |
% |
|
Cost of debt refinancing |
|
|
— |
|
|
|
14,803 |
|
|
NM |
|
|
Investment (income) loss, net |
|
|
(315 |
) |
|
|
(46 |
) |
|
NM |
|
|
Foreign currency exchange loss (gain), net |
|
|
(2,189 |
) |
|
|
1,574 |
|
|
NM |
|
|
Other (income) expense, net |
|
|
(2,072 |
) |
|
|
(1,122 |
) |
|
NM |
|
|
Income before income tax expense |
|
|
74,475 |
|
|
|
38,446 |
|
|
93.7 |
% |
|
Income tax expense |
|
|
26,046 |
|
|
|
8,786 |
|
|
196.4 |
% |
|
Net income |
|
$ |
48,429 |
|
|
$ |
29,660 |
|
|
63.3 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average basic shares outstanding |
|
|
28,600 |
|
|
|
28,040 |
|
|
2.0 |
% |
|
Basic income per share |
|
$ |
1.69 |
|
|
$ |
1.06 |
|
|
59.4 |
% |
|
|
|
|
|
|
|
|
|||||
|
Average diluted shares outstanding |
|
|
28,818 |
|
|
|
28,401 |
|
|
1.5 |
% |
|
Diluted income per share |
|
$ |
1.68 |
|
|
$ |
1.04 |
|
|
61.5 |
% |
|
|
|
|
|
|
|
|
|||||
|
Dividends declared per common share |
|
$ |
0.28 |
|
|
$ |
0.25 |
|
|
|
|
|
COLUMBUS McKINNON CORPORATION Condensed Consolidated Balance Sheets (In thousands) |
||||||||
|
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
|
|
|
(unaudited) |
|
|
||||
|
ASSETS |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
133,176 |
|
|
$ |
115,390 |
|
|
Trade accounts receivable |
|
|
151,451 |
|
|
|
147,515 |
|
|
Inventories |
|
|
179,359 |
|
|
|
172,139 |
|
|
Prepaid expenses and other |
|
|
32,254 |
|
|
|
31,545 |
|
|
Total current assets |
|
|
496,240 |
|
|
|
466,589 |
|
|
|
|
|
|
|
||||
|
Net property, plant, and equipment |
|
|
94,360 |
|
|
|
97,926 |
|
|
Goodwill |
|
|
644,629 |
|
|
|
648,849 |
|
|
Other intangibles, net |
|
|
362,537 |
|
|
|
390,788 |
|
|
Marketable securities |
|
|
10,368 |
|
|
|
10,294 |
|
|
Deferred taxes on income |
|
|
2,035 |
|
|
|
2,313 |
|
|
Other assets |
|
|
88,286 |
|
|
|
68,948 |
|
|
Total assets |
|
$ |
1,698,455 |
|
|
$ |
1,685,707 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Trade accounts payable |
|
$ |
76,736 |
|
|
$ |
90,881 |
|
|
Accrued liabilities |
|
|
124,317 |
|
|
|
118,187 |
|
|
Current portion of long-term debt and finance lease obligations |
|
|
40,604 |
|
|
|
40,551 |
|
|
Total current liabilities |
|
|
241,657 |
|
|
|
249,619 |
|
|
|
|
|
|
|
||||
|
Term loan and finance lease obligations |
|
|
430,988 |
|
|
|
470,675 |
|
|
Other non-current liabilities |
|
|
192,013 |
|
|
|
192,610 |
|
|
Total liabilities |
|
|
864,658 |
|
|
|
912,904 |
|
|
|
|
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
|
||||
|
Common stock |
|
|
286 |
|
|
|
285 |
|
|
Treasury Stock |
|
|
(1,001 |
) |
|
|
— |
|
|
Additional paid-in capital |
|
|
515,797 |
|
|
|
506,074 |
|
|
Retained earnings |
|
|
356,758 |
|
|
|
316,343 |
|
|
Accumulated other comprehensive loss |
|
|
(38,043 |
) |
|
|
(49,899 |
) |
|
Total shareholders’ equity |
|
|
833,797 |
|
|
|
772,803 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,698,455 |
|
|
$ |
1,685,707 |
|
|
COLUMBUS McKINNON CORPORATION Condensed Consolidated Statements of Cash Flows – UNAUDITED (In thousands) |
||||||||
|
|
|
Year Ended |
||||||
|
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
|
Operating activities: |
|
|
|
|
||||
|
Net income |
|
$ |
48,429 |
|
|
$ |
29,660 |
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
41,947 |
|
|
|
41,924 |
|
|
Deferred income taxes and related valuation allowance |
|
|
(300 |
) |
|
|
(1,969 |
) |
|
Net loss (gain) on sale of real estate, investments and other |
|
|
(54 |
) |
|
|
136 |
|
|
Stock-based compensation |
|
|
10,425 |
|
|
|
11,246 |
|
|
Amortization of deferred financing costs |
|
|
1,721 |
|
|
|
1,703 |
|
|
Loss (gain) on hedging instruments |
|
|
(438 |
) |
|
|
853 |
|
|
Cost of debt refinancing |
|
|
— |
|
|
|
14,803 |
|
|
Loss on retirement of fixed asset |
|
|
175 |
|
|
|
— |
|
|
Gain on sale of building |
|
|
(232 |
) |
|
|
(375 |
) |
|
Non-cash lease expense |
|
|
7,867 |
|
|
|
7,945 |
|
|
Changes in operating assets and liabilities, net of effects of business acquisitions: |
|
|
|
|
||||
|
Trade accounts receivable |
|
|
(4,858 |
) |
|
|
(18,988 |
) |
|
Inventories |
|
|
(9,087 |
) |
|
|
(40,201 |
) |
|
Prepaid expenses and other |
|
|
6,667 |
|
|
|
(47 |
) |
|
Other assets |
|
|
(123 |
) |
|
|
25 |
|
|
Trade accounts payable |
|
|
(13,964 |
) |
|
|
12,681 |
|
|
Accrued liabilities |
|
|
9,150 |
|
|
|
696 |
|
|
Non-current liabilities |
|
|
(13,689 |
) |
|
|
(11,211 |
) |
|
Net cash provided by (used for) operating activities |
|
|
83,636 |
|
|
|
48,881 |
|
|
|
|
|
|
|
||||
|
Investing activities: |
|
|
|
|
||||
|
Proceeds from sales of marketable securities |
|
|
3,651 |
|
|
|
4,434 |
|
|
Purchases of marketable securities |
|
|
(4,021 |
) |
|
|
(7,130 |
) |
|
Capital expenditures |
|
|
(12,632 |
) |
|
|
(13,104 |
) |
|
Proceeds from sale of building, net of transaction costs |
|
|
373 |
|
|
|
461 |
|
|
Proceeds from insurance reimbursement |
|
|
— |
|
|
|
482 |
|
|
Purchases of businesses, net of cash acquired |
|
|
(1,616 |
) |
|
|
(539,778 |
) |
|
Dividend received from equity method investment |
|
|
313 |
|
|
|
324 |
|
|
Net cash provided by (used for) investing activities |
|
|
(13,932 |
) |
|
|
(554,311 |
) |
|
|
|
|
|
|
||||
|
Financing activities: |
|
|
|
|
||||
|
Proceeds from issuance of common stock |
|
|
713 |
|
|
|
2,655 |
|
|
Purchases of treasury stock |
|
|
(1,001 |
) |
|
|
— |
|
|
Repayment of debt |
|
|
(40,550 |
) |
|
|
(477,846 |
) |
|
Proceeds from issuance of long-term debt |
|
|
— |
|
|
|
725,000 |
|
|
Proceeds from equity offering |
|
|
— |
|
|
|
207,000 |
|
|
Fees related to debt and equity offering |
|
|
— |
|
|
|
(26,184 |
) |
|
Cash inflows from hedging activities |
|
|
24,495 |
|
|
|
19,417 |
|
|
Cash outflows from hedging activities |
|
|
(24,221 |
) |
|
|
(20,206 |
) |
|
Payment of dividends |
|
|
(8,008 |
) |
|
|
(6,562 |
) |
|
Other |
|
|
(1,415 |
) |
|
|
(2,574 |
) |
|
Net cash provided by (used for) financing activities |
|
|
(49,987 |
) |
|
|
420,700 |
|
|
|
|
|
|
|
||||
|
Effect of exchange rate changes on cash |
|
|
(1,931 |
) |
|
|
(2,007 |
) |
|
|
|
|
|
|
||||
|
Net change in cash and cash equivalents |
|
|
17,786 |
|
|
|
(86,737 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
|
115,640 |
|
|
|
202,377 |
|
|
Cash, cash equivalents, and restricted cash at end of year |
|
$ |
133,426 |
|
|
$ |
115,640 |
|
|
COLUMBUS McKINNON CORPORATION Q4 FY 2023 Sales Bridge |
||||||||||||||
|
|
|
Quarter |
|
Year To Date |
||||||||||
|
($ in millions) |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
||||||
|
Fiscal 2022 Sales |
|
$ |
253.4 |
|
|
|
|
$ |
906.6 |
|
|
|
||
|
Acquisitions |
|
|
— |
|
|
— |
% |
|
|
22.4 |
|
|
2.5 |
% |
|
Volume |
|
|
(9.9 |
) |
|
(3.9 |
)% |
|
|
(9.2 |
) |
|
(1.0 |
)% |
|
Pricing |
|
|
14.5 |
|
|
5.7 |
% |
|
|
47.0 |
|
|
5.2 |
% |
|
Foreign currency translation |
|
|
(4.2 |
) |
|
(1.7 |
)% |
|
|
(30.6 |
) |
|
(3.4 |
)% |
|
Total change |
|
$ |
0.4 |
|
|
0.2 |
% |
|
$ |
29.6 |
|
|
3.3 |
% |
|
Fiscal 2023 Sales |
|
$ |
253.8 |
|
|
|
|
$ |
936.2 |
|
|
|
||
|
COLUMBUS McKINNON CORPORATION Q4 FY 2023 Gross Profit Bridge |
|||||||
|
($ in millions) |
Quarter |
|
Year To Date |
||||
|
Fiscal 2022 Gross Profit |
$ |
85.5 |
|
|
$ |
315.7 |
|
|
Acquisitions |
|
— |
|
|
|
9.5 |
|
|
Price, net of material cost inflation |
|
9.2 |
|
|
|
22.6 |
|
|
Prior year acquisition amortization of backlog |
|
1.7 |
|
|
|
2.2 |
|
|
Prior year acquisition inventory step-up expense |
|
1.5 |
|
|
|
5.0 |
|
|
Tariffs |
|
0.5 |
|
|
|
0.6 |
|
|
Productivity, net of other cost changes |
|
(0.5 |
) |
|
|
(5.0 |
) |
|
Foreign currency translation |
|
(1.3 |
) |
|
|
(10.8 |
) |
|
Sales volume and mix |
|
(5.4 |
) |
|
|
(3.4 |
) |
|
Business realignment costs |
|
— |
|
|
|
1.6 |
|
|
Acquisition integration costs |
|
— |
|
|
|
0.5 |
|
|
Product liability |
|
— |
|
|
|
0.7 |
|
|
Prior year product liability settlement |
|
— |
|
|
|
2.9 |
|
|
Total change |
|
5.7 |
|
|
|
26.4 |
|
|
Fiscal 2023 Gross Profit |
$ |
91.2 |
|
|
$ |
342.1 |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 22 |
|
63 |
|
64 |
|
61 |
|
63 |
|
251 |
|
COLUMBUS McKINNON CORPORATION Additional Data – UNAUDITED |
||||||||||||
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
||||||
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|||
|
Backlog |
|
$ |
308.7 |
|
|
$ |
329.1 |
|
|
$ |
309.1 |
|
|
Long-term backlog |
|
|
|
|
|
|
|
|
|
|||
|
Expected to ship beyond 3 months |
|
$ |
142.0 |
|
|
$ |
164.7 |
|
|
$ |
135.2 |
|
|
Long-term backlog as % of total backlog |
|
|
46.0 |
% |
|
|
50.0 |
% |
|
|
43.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
|||
|
Days sales outstanding |
|
|
54.3 |
days |
|
|
58.0 |
days |
|
|
53.0 |
days |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Inventory turns per year |
|
|
|
|
|
|
|
|
|
|||
|
(based on cost of products sold) |
|
|
3.6 |
turns |
|
|
3.0 |
turns |
|
|
3.9 |
turns |
|
Days’ inventory |
|
|
101.4 |
days |
|
|
121.0 |
days |
|
|
93.6 |
days |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|||
|
Days payables outstanding |
|
|
53.3 |
days |
|
|
52.6 |
days |
|
|
58.7 |
days |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Working capital as a % of sales (2) |
|
|
17.3 |
% |
|
|
22.1 |
% |
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Net cash provided by (used for) operating activities |
|
$ |
66.7 |
|
|
$ |
10.8 |
|
|
$ |
25.2 |
|
|
Capital expenditures |
|
$ |
3.1 |
|
|
$ |
4.2 |
|
|
$ |
3.6 |
|
|
Free cash flow (1) |
|
$ |
63.6 |
|
|
$ |
6.5 |
|
|
$ |
21.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Debt to total capitalization percentage |
|
|
36.1 |
% |
|
|
37.3 |
% |
|
|
39.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Debt, net of cash, to net total capitalization |
|
|
28.9 |
% |
|
|
33.0 |
% |
|
|
33.9 |
% |
| (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) March 31, 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, except per share data) |
|||||||||||||||
|
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
GAAP gross profit |
$ |
91,218 |
|
|
$ |
85,475 |
|
|
$ |
342,099 |
|
|
$ |
315,730 |
|
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
|
Acquisition inventory step-up expense |
|
— |
|
|
|
1,546 |
|
|
|
— |
|
|
|
5,042 |
|
|
Product liability settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,850 |
|
|
Acquisition amortization of backlog |
|
— |
|
|
|
1,650 |
|
|
|
— |
|
|
|
2,100 |
|
|
Business realignment costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,606 |
|
|
Acquisition integration costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
521 |
|
|
Non-GAAP adjusted gross profit |
$ |
91,218 |
|
|
$ |
88,671 |
|
|
$ |
342,099 |
|
|
$ |
327,849 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Sales |
$ |
253,843 |
|
|
$ |
253,368 |
|
|
$ |
936,240 |
|
|
$ |
906,555 |
|
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Acquisition amortization of backlog |
|
— |
|
|
|
1,650 |
|
|
|
— |
|
|
|
2,100 |
|
|
Non-GAAP sales |
$ |
253,843 |
|
|
$ |
255,018 |
|
|
$ |
936,240 |
|
|
$ |
908,655 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin – GAAP |
|
35.9 |
% |
|
|
33.7 |
% |
|
|
36.5 |
% |
|
|
34.8 |
% |
|
Adjusted gross margin – Non-GAAP |
|
35.9 |
% |
|
|
34.8 |
% |
|
|
36.5 |
% |
|
|
36.1 |
% |
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, except per share data) |
|||||||||||||||
|
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
GAAP income from operations |
$ |
27,469 |
|
|
$ |
24,059 |
|
|
$ |
97,841 |
|
|
$ |
73,781 |
|
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||||
|
Acquisition deal and integration costs |
|
173 |
|
|
|
229 |
|
|
|
616 |
|
|
|
10,473 |
|
|
Acquisition inventory step-up expense |
|
— |
|
|
|
1,546 |
|
|
|
— |
|
|
|
5,042 |
|
|
Business realignment costs |
|
848 |
|
|
|
1,115 |
|
|
|
5,140 |
|
|
|
3,902 |
|
|
Product liability settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,850 |
|
|
Garvey contingent consideration |
|
— |
|
|
|
— |
|
|
|
1,230 |
|
|
|
— |
|
|
Headquarter relocation costs |
|
681 |
|
|
|
— |
|
|
|
996 |
|
|
|
— |
|
|
Acquisition amortization of backlog |
|
— |
|
|
|
1,650 |
|
|
|
— |
|
|
|
2,100 |
|
|
Non-GAAP adjusted income from operations |
$ |
29,171 |
|
|
$ |
28,599 |
|
|
$ |
105,823 |
|
|
$ |
98,148 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Sales |
$ |
253,843 |
|
|
$ |
253,368 |
|
|
$ |
936,240 |
|
|
$ |
906,555 |
|
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Acquisition amortization of backlog |
|
— |
|
|
|
1,650 |
|
|
|
— |
|
|
|
2,100 |
|
|
Non-GAAP sales |
$ |
253,843 |
|
|
$ |
255,018 |
|
|
$ |
936,240 |
|
|
$ |
908,655 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating margin – GAAP |
|
10.8 |
% |
|
|
9.5 |
% |
|
|
10.5 |
% |
|
|
8.1 |
% |
|
Adjusted operating margin – Non-GAAP |
|
11.5 |
% |
|
|
11.2 |
% |
|
|
11.3 |
% |
|
|
10.8 |
% |
Adjusted income from operations is defined as income from operations as reported, adjusted for certain items. Adjusted income from operations is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP 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 March 31, |
|
Year Ended March 31, |
||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
GAAP net income (loss) |
$ |
13,895 |
|
$ |
11,826 |
|
|
$ |
48,429 |
|
$ |
29,660 |
|
|
Add back (deduct): |
|
|
|
|
|
|
|
||||||
|
Amortization of intangibles |
|
6,559 |
|
|
6,635 |
|
|
|
26,001 |
|
|
25,283 |
|
|
Cost of debt refinancing |
|
— |
|
|
— |
|
|
|
— |
|
|
14,803 |
|
|
Acquisition deal and integration costs |
|
173 |
|
|
229 |
|
|
|
616 |
|
|
10,473 |
|
|
Acquisition inventory step-up expense |
|
— |
|
|
1,546 |
|
|
|
— |
|
|
5,042 |
|
|
Business realignment costs |
|
848 |
|
|
1,115 |
|
|
|
5,140 |
|
|
3,902 |
|
|
Product liability settlement |
|
— |
|
|
— |
|
|
|
— |
|
|
2,850 |
|
|
Acquisition amortization of backlog |
|
— |
|
|
1,650 |
|
|
|
— |
|
|
2,100 |
|
|
Garvey contingent consideration |
|
— |
|
|
— |
|
|
|
1,230 |
|
|
— |
|
|
Headquarter relocation costs |
|
681 |
|
|
— |
|
|
|
996 |
|
|
— |
|
|
Normalize tax rate to 22% (1) |
|
975 |
|
|
(260 |
) |
|
|
2,185 |
|
|
(13,852 |
) |
|
Non-GAAP adjusted net income |
$ |
23,131 |
|
$ |
22,741 |
|
|
$ |
84,597 |
|
$ |
80,261 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Average diluted shares outstanding |
|
28,869 |
|
|
28,845 |
|
|
|
28,818 |
|
|
28,401 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Diluted income (loss) per share – GAAP |
$ |
0.48 |
|
$ |
0.41 |
|
|
$ |
1.68 |
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Diluted income per share – Non-GAAP |
$ |
0.80 |
|
$ |
0.79 |
|
|
$ |
2.94 |
|
$ |
2.83 |
|
Contacts
Gregory P. Rustowicz
Executive Vice President – Finance and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5442
greg.rustowicz@cmworks.com
Investor Relations:
Deborah K. Pawlowski
Kei Advisors LLC
716-843-3908
dpawlowski@keiadvisors.com
