Columbus McKinnon Corporation (Nasdaq: CMCO), a leading
designer, manufacturer and marketer of intelligent motion solutions
for material handling, today announced financial results for its
full year and fourth quarter fiscal 2024, which ended March 31,
2024. Results include the addition of montratec®, which was
acquired on May 31, 2023 ("the acquisition").
Fiscal Year 2024 Highlights (compared with prior year
period)
- Record net sales of $1.0 billion, up 8% driven by growth
across all geographies including the acquisition of
montratec
- Gross margin up 50 basis points to 37.0%; Adjusted Gross
Margin1 up 80 basis points to 37.3%
- Net income of $46.6 million with a net margin of 4.6%;
Adjusted EBITDA1 of $166.7 million, up 13% with Adjusted EBITDA
Margin1 of 16.4%, up 60 basis points
- Generated net cash provided by operating activities of $67.2
million and Free Cash Flow1 of $42.4 million with Free Cash Flow
Conversion1 of 91%
- Net Leverage Ratio1,2 decreased to 2.4x; Expect Net Leverage
Ratio1,2 of ~2.0x target by end of year Fiscal 2025
Fourth Quarter 2024 Highlights (compared with prior year
period)
- Delivered $265.5 million of net sales demonstrating
continued momentum, up 5% driven by growth across all geographies
with strength in precision conveyance, up 23%
- Orders increased 5% led by precision conveyance, up
25%
- Net income of $11.8 million with a net margin of 4.4%;
Adjusted EBITDA1 of $43.0 million, up 8% with Adjusted EBITDA
Margin1 of 16.2%, up 50 basis points
“Our team delivered another record year of sales, gross margin,
operating income, and Adjusted EBITDA Margin1 reflecting the solid
progress we are making with our transformation. These results
provide another proof point on the path to achieving our long-term
financial objectives. Our team continues to execute on commercial
and operational initiatives to improve productivity, reduce lead
times, and enhance customer experience, which position us to scale
our business and deliver top-tier financial results,” said David J.
Wilson, President and Chief Executive Officer. “While we are taking
a prudent view of our outlook for fiscal 2025, we remain cautiously
optimistic given the solid momentum exiting fiscal 2024 and our
encouraging pipeline of opportunities. We are focused on execution
as we thoughtfully navigate this uncertain environment.”
Fourth Quarter Fiscal 2024
Sales
($ in millions)
Q4 FY 24
Q4 FY 23
Change
% Change
Net sales
$
265.5
$
253.8
$
11.7
4.6
%
U.S. sales
$
155.0
$
149.4
$
5.6
3.7
%
% of total
58
%
59
%
Non-U.S. sales
$
110.5
$
104.4
$
6.1
5.8
%
% of total
42
%
41
%
For the quarter, sales increased $11.7 million, or 4.6%. The
acquisition contributed $4.9 million, or 1.9%. In the U.S., sales
were up $5.6 million, or 3.7%, driven by favorable sales volume of
$3.1 million, price improvement of $2.1 million and $0.4 million of
contribution from the acquisition. Sales outside the U.S. increased
$6.1 million, or 5.8%, driven by $4.5 million of sales related to
the acquisition and $3.6 million of price improvement offset by
$3.3 million of lower sales volume. Favorable foreign currency
translation was $1.3 million.
Fourth Quarter Fiscal 2024 Operating
Results
($ in millions)
Q4 FY 24
Q4 FY 23
Change
% Change
Gross profit
$
94.3
$
91.2
$
3.1
3.4
%
Gross margin
35.5
%
35.9
%
(40) bps
Adjusted Gross Profit1
$
97.1
$
91.2
$
5.9
6.5
%
Adjusted Gross Margin1
36.6
%
35.9
%
70 bps
Income from operations
$
25.4
$
27.5
$
(2.0
)
(7.4
)%
Operating margin
9.6
%
10.8
%
(120) bps
Adjusted Operating Income1
$
31.1
$
29.2
$
1.9
6.6
%
Adjusted Operating Margin1
11.7
%
11.5
%
20 bps
Net income
$
11.8
$
13.9
$
(2.1
)
(15.0
)%
Net income margin
4.4
%
5.5
%
(110) bps
Diluted EPS
$
0.41
$
0.48
$
(0.07
)
(14.6
)%
Adjusted EPS1
$
0.75
$
0.80
$
(0.05
)
(6.3
)%
Adjusted EBITDA1
$
43.0
$
39.7
$
3.2
8.2
%
Adjusted EBITDA margin1
16.2
%
15.7
%
50 bps
Adjusted EPS1 excludes amortization of intangible assets related
to acquisitions. The Company believes this better represents its
inherent earnings power and cash generation capability.
Full Year and First Quarter Fiscal 2025
Guidance
The Company is issuing the following guidance for the first
quarter of fiscal 2025, ending June 30, 2024:
Metric
Q1 FY25
Net sales
Low-single digit growth year-over-year
Adjusted EPS3
Flat to slightly down year-over-year
First quarter 2025 guidance assumes approximately $9 million of
interest expense, $8 million of amortization, an effective tax rate
of 25% and 29.2 million diluted average shares outstanding.
The Company is issuing the following guidance for fiscal 2025,
ending March 31, 2025:
Metric
FY25
Net sales
Low-single digit growth year-over-year
Adjusted EPS3
Mid to high-single digit growth
year-over-year
Capital Expenditures
$20 million to $30 million
Net Leverage Ratio3
~2.0x
Fiscal 2025 guidance assumes approximately $33 million of
interest expense, $30 million of amortization, an effective tax
rate of 25% and 29.4 million diluted average shares
outstanding.
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 conference ID number 13746170 through June
5, 2024.
______________________ 1 Adjusted Gross Profit, Adjusted Gross
Margin, Adjusted Operating Income, Adjusted Operating Margin,
Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash
Flow, Free Cash Flow Conversion and Net Leverage Ratio 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 On a financial covenant basis per the
Company’s Amended and Restated Credit Agreement 3 The Company has
not reconciled the Adjusted EPS and Net Leverage Ratio guidance to
the most comparable GAAP 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 are made in a manner consistent with the relevant definitions
and assumptions noted herein.
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 release,
including, but are not limited to, statements relating to: (i) our
strategy, outlook and growth prospects and our full year and first
quarter fiscal 2025 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
effectiveness of our new facility in Monterrey, Mexico to provide
cost savings and margin improvement (vi) the amount of debt to be
paid down by the Company during fiscal 2025; and (vii) the
competitive environment in which we operate are forward looking
statements. Forward-looking statements are not based on historical
facts, but instead represent our current expectations and
assumptions regarding our business, the economy and other future
conditions, and involve known and unknown risks, uncertainties and
other factors that could cause the actual results, performance or
achievements of the Company to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. It is not possible to predict or
identify all such risks. These risks include, but are not limited
to, the risk factors that are described under the section titled
“Risk Factors” in our Annual Report on Form 10-K for the fiscal
year ended March 31, 2023 as well as in our other filings with the
Securities and Exchange Commission, which are available on its
website at www.sec.gov. Given these uncertainties, you should not
place undue reliance on these forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Columbus McKinnon undertakes no duty to update publicly any such
forward-looking statement, whether as a result of new information,
future events or otherwise, except as may be required by applicable
law, regulation or other competent legal authority.
Financial tables follow.
COLUMBUS McKINNON
CORPORATION
Condensed Consolidated Income
Statements - Unaudited
(In thousands, except per share
and percentage data)
Three Months Ended
March 31, 2024
March 31, 2023
Change
Net sales
$
265,504
$
253,843
4.6
%
Cost of products sold
171,189
162,625
5.3
%
Gross profit
94,315
91,218
3.4
%
Gross profit margin
35.5
%
35.9
%
Selling expenses
26,941
25,331
6.4
%
% of net sales
10.1
%
10.0
%
General and administrative expenses
27,353
26,353
3.8
%
% of net sales
10.3
%
10.4
%
Research and development expenses
7,059
5,506
28.2
%
% of net sales
2.7
%
2.2
%
Amortization of intangibles
7,525
6,559
14.7
%
Income from operations
25,437
27,469
(7.4
)%
Operating margin
9.6
%
10.8
%
Interest and debt expense
9,169
7,668
19.6
%
Investment (income) loss, net
(547
)
(483
)
13.3
%
Foreign currency exchange loss (gain),
net
752
(1,037
)
NM
Other (income) expense, net
1,757
(73
)
NM
Income before income tax expense
14,306
21,394
(33.1
)%
Income tax expense
2,497
7,499
(66.7
)%
Net income
$
11,809
$
13,895
(15.0
)%
Average basic shares outstanding
28,780
28,609
0.6
%
Basic income per share
$
0.41
$
0.49
(16.3
)%
Average diluted shares outstanding
29,129
28,869
0.9
%
Diluted income per share
$
0.41
$
0.48
(14.6
)%
Dividends declared per common share
$
0.14
$
0.14
COLUMBUS McKINNON
CORPORATION
Condensed Consolidated Income
Statements - Unaudited
(In thousands, except per share
and percentage data)
Year Ended
March 31, 2024
March 31, 2023
Change
Net sales
$
1,013,540
$
936,240
8.3
%
Cost of products sold
638,702
594,141
7.5
%
Gross profit
374,838
342,099
9.6
%
Gross profit margin
37.0
%
36.5
%
Selling expenses
105,341
102,528
2.7
%
% of net sales
10.4
%
11.0
%
General and administrative expenses
106,760
94,794
12.6
%
% of net sales
10.5
%
10.1
%
Research and development expenses
26,193
20,935
25.1
%
% of net sales
2.6
%
2.2
%
Amortization of intangibles
29,396
26,001
13.1
%
Income from operations
107,148
97,841
9.5
%
Operating margin
10.6
%
10.5
%
Interest and debt expense
37,957
27,942
35.8
%
Investment (income) loss, net
(1,759
)
(315
)
458.4
%
Foreign currency exchange loss (gain),
net
1,826
(2,189
)
NM
Other (income) expense, net
7,597
(2,072
)
NM
Income before income tax expense
61,527
74,475
(17.4
)%
Income tax expense
14,902
26,046
(42.8
)%
Net income
$
46,625
$
48,429
(3.7
)%
Average basic shares outstanding
28,728
28,600
0.4
%
Basic income per share
$
1.62
$
1.69
(4.1
)%
Average diluted shares outstanding
29,026
28,818
0.7
%
Diluted income per share
$
1.61
$
1.68
(4.2
)%
Dividends declared per common share
$
0.28
$
0.28
COLUMBUS McKINNON
CORPORATION
Condensed Consolidated Balance
Sheets - Unaudited
(In thousands)
March 31, 2024
March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
114,126
$
133,176
Trade accounts receivable
171,186
151,451
Inventories
186,091
179,359
Prepaid expenses and other
42,752
32,254
Total current assets
514,155
496,240
Net property, plant, and equipment
106,395
94,360
Goodwill
710,334
644,629
Other intangibles, net
385,634
362,537
Marketable securities
11,447
10,368
Deferred taxes on income
1,797
2,035
Other assets
96,183
88,286
Total assets
$
1,825,945
$
1,698,455
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Trade accounts payable
$
83,118
$
76,736
Accrued liabilities
127,973
124,317
Current portion of long-term debt and
finance lease obligations
50,670
40,604
Total current liabilities
261,761
241,657
Term loan, AR securitization facility and
finance lease obligations
479,566
430,988
Other non-current liabilities
202,555
192,013
Total liabilities
943,882
864,658
Shareholders’ equity:
Common stock
288
286
Treasury Stock
(1,001
)
(1,001
)
Additional paid-in capital
527,125
515,797
Retained earnings
395,328
356,758
Accumulated other comprehensive loss
(39,677
)
(38,043
)
Total shareholders’ equity
882,063
833,797
Total liabilities and shareholders’
equity
$
1,825,945
$
1,698,455
COLUMBUS McKINNON
CORPORATION
Condensed Consolidated
Statements of Cash Flows - Unaudited
(In thousands)
Year Ended
March 31, 2024
March 31, 2023
Operating activities:
Net income
$
46,625
$
48,429
Adjustments to reconcile net income to net
cash provided by (used for) operating activities:
Depreciation and amortization
45,945
41,947
Deferred income taxes and related
valuation allowance
(15,786
)
(300
)
Net loss (gain) on sale of real estate,
investments and other
(1,431
)
(54
)
Stock-based compensation
12,039
10,425
Amortization of deferred financing
costs
2,349
1,721
Loss (gain) on hedging instruments
(1,366
)
(438
)
Cost of debt repricing
958
—
Loss on retirement of fixed asset
—
175
Non-cash pension settlement
4,984
—
Gain on sale of building
—
(232
)
Non-cash lease expense
9,735
7,867
Changes in operating assets and
liabilities, net of effects of business acquisitions:
Trade accounts receivable
(14,428
)
(4,858
)
Inventories
(1,314
)
(9,087
)
Prepaid expenses and other
(8,555
)
6,667
Other assets
537
(123
)
Trade accounts payable
4,748
(13,964
)
Accrued liabilities
(9,583
)
9,150
Non-current liabilities
(8,259
)
(13,689
)
Net cash provided by (used for) operating
activities
67,198
83,636
Investing activities:
Proceeds from sales of marketable
securities
3,526
3,651
Purchases of marketable securities
(4,076
)
(4,021
)
Capital expenditures
(24,813
)
(12,632
)
Proceeds from sale of building, net of
transaction costs
—
373
Purchases of businesses, net of cash
acquired
(108,145
)
(1,616
)
Dividend received from equity method
investment
144
313
Net cash provided by (used for) investing
activities
(133,364
)
(13,932
)
Financing activities:
Proceeds from issuance of common stock
1,600
713
Purchases of treasury stock
—
(1,001
)
Fees paid for debt repricing
(958
)
—
Repayment of debt
(60,604
)
(40,550
)
Proceeds from issuance of long-term
debt
120,000
—
Cash inflows from hedging activities
24,057
24,495
Cash outflows from hedging activities
(22,687
)
(24,221
)
Fees paid for borrowing on long-term
debt
(2,859
)
—
Payment of dividends
(8,044
)
(8,008
)
Other
(2,304
)
(1,415
)
Net cash provided by (used for) financing
activities
48,201
(49,987
)
Effect of exchange rate changes on
cash
(1,085
)
(1,931
)
Net change in cash and cash
equivalents
(19,050
)
17,786
Cash, cash equivalents, and restricted
cash at beginning of year
133,426
115,640
Cash, cash equivalents, and restricted
cash at end of year
$
114,376
$
133,426
COLUMBUS McKINNON
CORPORATION
Q4 FY 2024 Sales
Bridge
Quarter
Year
($ in millions)
$ Change
% Change
$ Change
% Change
Fiscal 2023 Sales
$
253.8
$
936.2
Acquisition
4.9
1.9
%
32.6
3.5
%
Volume
(0.2
)
(0.1
)%
(0.4
)
—
%
Pricing
5.7
2.3
%
33.8
3.6
%
Foreign currency translation
1.3
0.5
%
11.3
1.2
%
Total change
$
11.7
4.6
%
$
77.3
8.3
%
Fiscal 2024 Sales
$
265.5
$
1,013.5
COLUMBUS McKINNON
CORPORATION
Q4 FY 2024 Gross Profit
Bridge
($ in millions)
Quarter
Year
Fiscal 2023 Gross Profit
$
91.2
$
342.1
Acquisition
0.8
13.8
Price, net of manufacturing cost changes
(incl. inflation)
1.0
16.9
Foreign currency translation
0.4
3.8
Current year business realignment
costs
—
(0.4
)
Monterrey, MX new factory start-up
costs
(2.6
)
(3.0
)
Factory and warehouse consolidation
costs
(0.2
)
(0.2
)
Sales volume & mix
3.7
0.9
Product liability
—
0.9
Total change
3.1
32.7
Fiscal 2024 Gross Profit
$
94.3
$
374.8
U.S. Shipping Days by
Quarter
Q1
Q2
Q3
Q4
Total
FY 25
64
63
60
62
249
FY 24
63
62
61
62
248
FY 23
63
64
60
63
250
COLUMBUS McKINNON
CORPORATION
Additional Data1
(Unaudited)
Period Ended
March 31, 2024
December 31, 2023
March 31, 2023
($ in millions)
Backlog
$
280.8
$
298.4
$
308.7
Long-term backlog
Expected to ship beyond 3 months
$
144.6
$
151.3
$
142.0
Long-term backlog as % of total
backlog
51.5
%
50.7
%
46.0
%
Debt to total capitalization
percentage
37.5
%
38.5
%
36.1
%
Debt, net of cash, to net total
capitalization
32.0
%
33.7
%
28.9
%
Working capital as a % of sales
2
19.1
%
20.6
%
17.3
%
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
($ in millions)
Trade accounts receivable
Days sales outstanding
58.7
days
62.1
days
54.3
days
Inventory turns per year
(based on cost of products sold)
3.7
turns
3.1
turns
3.6
turns
Days' inventory
98.6
days
117.7
days
101.4
days
Trade accounts payable
Days payables outstanding
50.9
days
50.1
days
53.3
days
Net cash provided by (used for)
operating activities
$
38.6
$
29.1
$
66.7
Capital expenditures
$
8.5
$
6.0
$
3.1
Free Cash Flow 3
$
30.1
$
23.1
$
63.6
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 December 31, 2023
exclude the impact of the acquisition of montratec. 3 Free Cash
Flow is a 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.
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 March
31,
Year Ended March 31,
2024
2023
2024
2023
GAAP gross profit
$
94,315
$
91,218
$
374,838
$
342,099
Add back (deduct):
Business realignment costs
—
—
346
—
Monterrey, MX new factory start-up
costs
2,552
—
2,987
—
Factory and warehouse consolidation
costs
262
—
262
—
Non-GAAP adjusted gross profit
$
97,129
$
91,218
$
378,433
$
342,099
Net Sales
$
265,504
$
253,843
$
1,013,540
$
936,240
Gross margin
35.5
%
35.9
%
37.0
%
36.5
%
Adjusted Gross Margin
36.6
%
35.9
%
37.3
%
36.5
%
Adjusted Gross Profit is defined as gross profit as reported,
adjusted for certain items. Adjusted Gross Profit 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 Profit Margin as used by other companies.
Nevertheless, Columbus McKinnon believes that providing non-GAAP
financial measures, such as Adjusted Gross Profit and Adjusted
Gross Profit 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 and current year'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 March
31,
Year Ended March 31,
2024
2023
2024
2023
Income from operations
$
25,437
$
27,469
$
107,148
$
97,841
Add back (deduct):
Acquisition deal and integration costs
3
173
3,211
616
Business realignment costs
—
848
1,867
5,140
Factory and warehouse consolidation
costs
545
—
744
—
Garvey contingent consideration
—
—
—
1,230
Headquarter relocation costs
175
681
2,059
996
Monterrey, MX new factory start-up
costs
3,734
—
4,489
—
Cost of debt repricing
1,190
—
1,190
—
Adjusted Operating Income
$
31,084
$
29,171
$
120,708
$
105,823
Net Sales
$
265,504
$
253,843
$
1,013,540
$
936,240
Operating margin
9.6
%
10.8
%
10.6
%
10.5
%
Adjusted Operating Margin
11.7
%
11.5
%
11.9
%
11.3
%
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 and current year'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 Diluted Share
($ in thousands, except per share
data)
Three Months Ended March
31,
Year Ended March 31,
2024
2023
2024
2023
Net income
$
11,809
$
13,895
$
46,625
$
48,429
Add back (deduct):
Amortization of intangibles
7,525
6,559
29,396
26,001
Acquisition deal and integration costs
3
173
3,211
616
Business realignment costs
—
848
1,867
5,140
Factory and warehouse consolidation
costs
545
—
744
—
Garvey contingent consideration
—
—
—
1,230
Headquarter relocation costs
175
681
2,059
996
Monterrey, MX new factory start-up
costs
3,734
—
4,489
—
Cost of debt repricing
1,190
—
1,190
—
Non-cash pension settlement expense
385
—
4,984
—
Tax indemnification payment owed1
1,192
—
1,192
—
Normalize tax rate2
(4,767
)
975
(12,763
)
2,185
Adjusted Net Income
$
21,791
$
23,131
$
82,994
$
84,597
Average diluted shares outstanding
29,129
28,869
29,026
28,818
Diluted income per share
$
0.41
$
0.48
$
1.61
$
1.68
Adjusted EPS per diluted share
$
0.75
$
0.80
$
2.86
$
2.94
1 Represents tax indemnification payment owed to the former
owner of STAHL for a tax refund received by CMCO in the quarter
ended March 31, 2024 for periods prior to the acquisition of STAHL
by CMCO. 2 Applies a normalized tax rate of 25% in fiscal 2024 and
22% in fiscal 2023 to GAAP pre-tax income and non-GAAP adjustments
above, which are each pre-tax.
Adjusted Net Income and Adjusted Diluted EPS are defined as net
income and diluted EPS as reported, adjusted for certain items,
including amortization of intangibles, and also adjusted for a
normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS
are not measures determined in accordance with GAAP and may not be
comparable with the measures used by other companies. Nevertheless,
Columbus McKinnon believes that providing non-GAAP financial
measures, such as Adjusted Net Income and Adjusted Diluted EPS, are
important for investors and other readers of the Company’s
financial statements and assists in understanding the comparison of
the current quarter’s and current year's net income and diluted EPS
to the historical periods' net income and diluted EPS, as well as
facilitates a more meaningful comparison of the Company’s net
income and diluted EPS to that of other companies. The Company
believes that presenting Adjusted Diluted EPS provides a better
understanding of its earnings power inclusive of adjusting for the
non-cash amortization of intangible assets, reflecting the
Company’s strategy to grow through acquisitions as well as
organically.
COLUMBUS McKINNON
CORPORATION
Reconciliation of Net Income
to Adjusted EBITDA
($ in thousands)
Three Months Ended March
31,
Year Ended March 31,
2024
2023
2024
2023
Net income
$
11,809
$
13,895
$
46,625
$
48,429
Add back (deduct):
Income tax expense
2,497
7,499
14,902
26,046
Interest and debt expense
9,169
7,668
37,957
27,942
Investment (income) loss, net
(547
)
(483
)
(1,759
)
(315
)
Foreign currency exchange loss (gain),
net
752
(1,037
)
1,826
(2,189
)
Other (income) expense, net
1,757
(73
)
7,597
(2,072
)
Depreciation and amortization expense
11,893
10,567
45,945
41,947
Acquisition deal and integration costs
3
173
3,211
616
Business realignment costs
—
848
1,867
5,140
Factory and warehouse consolidation
costs
545
—
744
—
Garvey contingent consideration
—
—
—
1,230
Headquarter relocation costs
175
681
2,059
996
Monterrey, MX new factory start-up
costs
3,734
—
4,489
—
Cost of debt repricing
1,190
—
1,190
—
Adjusted EBITDA
$
42,977
$
39,738
$
166,653
$
147,770
Net Sales
$
265,504
$
253,843
$
1,013,540
$
936,240
Net income margin
4.4
%
5.5
%
4.6
%
5.2
%
Adjusted EBITDA Margin
16.2
%
15.7
%
16.4
%
15.8
%
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)
Year Ended March 31,
2024
2023
Net income
$
46,625
$
48,429
Add back (deduct):
Annualize EBITDA for the montratec
acquisition1
1,331
Annualize synergies for the montratec
acquisition1
73
Income tax expense
14,902
26,046
Interest and debt expense
37,957
27,942
Non-Cash Pension Settlement2
4,984
—
Amortization of deferred financing
costs
2,349
1,721
Stock Compensation Expense
12,039
10,425
Depreciation and amortization expense
45,945
41,947
Acquisition deal and integration costs
3,211
616
Business realignment costs
1,867
5,140
Factory and warehouse consolidation
costs
744
—
Garvey contingent consideration
—
1,230
Headquarter relocation costs
2,059
996
Monterrey, MX new factory start-up
costs
4,489
—
Cost of debt repricing
1,190
—
Non-Cash loss related to asset
retirement
—
175
Gain on Sale of Facility
—
(232
)
Credit Agreement Trailing Twelve Month
Adjusted EBITDA
$
179,765
$
164,435
Current portion of long-term debt and
finance lease obligations
$
50,670
$
40,604
Term loan, AR securitization facility and
finance lease obligations
479,566
430,988
Total debt
$
530,236
$
471,592
Standby Letters of Credit
15,368
14,921
Cash and cash equivalents
(114,126
)
(133,176
)
Net Debt
$
431,478
$
353,337
Net Leverage Ratio
2.40x
2.15x
1 EBITDA is normalized to include a full year of the acquired
entity and assuming that deal related synergies are achieved for
montratec in fiscal year 2024 and Dorner and Garvey in fiscal year
2023. 2 During the quarter ending December 31, 2023, certain
employees in one of the Company's U.S. pension plans accepted an
offer to settle their pension obligation with a lump sum payment.
These lump sum settlements are one of the steps the Company is
taking to terminate the plan by transferring the liabilities to a
third-party.
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/20240529085281/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
Columbus McKinnon (NASDAQ:CMCO)
過去 株価チャート
から 5 2024 まで 6 2024
Columbus McKinnon (NASDAQ:CMCO)
過去 株価チャート
から 6 2023 まで 6 2024
