Strong orders in the quarter led by
precision conveyance platform
Columbus McKinnon Corporation (Nasdaq: CMCO) (“Columbus
McKinnon” or the “Company”), a leading designer, manufacturer and
marketer of intelligent motion solutions for material handling,
today announced financial results for its fiscal year 2024 third
quarter, which ended December 31, 2023. Results include the
addition of montratec®, which was acquired on May 31, 2023 ("the
acquisition").
Third Quarter Highlights (compared with prior-year
period, except where otherwise noted)
- Orders increased 8% demonstrating continued progress with
growth initiatives and included a 23% increase in precision
conveyance orders
- Net sales increased 10% to $254.1 million primarily driven
by strength across all product platforms led by precision
conveyance
- Gross margin expanded 130 basis points to 36.9%; Adjusted
Gross Margin1 expanded 160 basis points to 37.2%
- Operating income increased 33% to $26.9 million, or 10.6% of
net sales; Adjusted Operating Income1 was $29.7 million, or 11.7%
of net sales
- Net cash provided by operating activities was $28.6 million
in the first nine months of fiscal 2024, up 69% from the prior year
period; continued accelerated debt repayment in the
quarter
- Completed construction and took occupancy of a
state-of-the-art manufacturing center of excellence in Mexico,
which will provide significant growth capacity and cost savings
over time
“We are pleased with the strong orders, sales, operating income,
and cash flow generation we delivered in the quarter. Our team
continued to execute commercial and operational initiatives,
improving productivity, reducing lead times, and enhancing our
customer experience. Our top-line growth translated to expanded
operating margin demonstrating the incremental leverage of our
business as we continue to drive year-over-year improvements
leveraging CMBS and the 80/20 process,” said David J. Wilson,
President and Chief Executive Officer. “We have an encouraging
funnel for both short cycle and large projects as we continue to
execute on our strategy to become a leader in intelligent motion
solutions. Our progress gives us confidence in our near- and
long-term financial objectives, which we believe will drive
meaningful shareholder value.”
___________________________
1 Adjusted Gross Profit, Adjusted Gross
Margin, Adjusted Operating Income and Adjusted Operating Margin are
non-GAAP financial measures. See accompanying discussion and
reconciliation tables provided in this release for reconciliations
of these non-GAAP financial measures to the closest corresponding
GAAP financial measures.
Third Quarter Fiscal 2024
Sales
($ in millions)
Q3 FY 24
Q3 FY 23
Change
% Change
Net sales
$
254.1
$
230.4
$
23.7
10.3
%
U.S. sales
$
138.5
$
141.4
$
(2.9
)
(2.1
) %
% of total
55
%
61
%
Non-U.S. sales
$
115.6
$
89.0
$
26.6
29.9
%
% of total
45
%
39
%
For the quarter, net sales increased $23.7 million, or 10.3%.
The acquisition contributed $15.5 million, or 6.7%, of the
increase. In the U.S., sales were down $2.9 million, or 2.1%. Price
improvement of $2.2 million and $0.2 million of contribution from
the acquisition helped to offset $5.4 million in lower volume.
Sales outside the U.S. increased $26.6 million, or 29.9%, driven by
$15.3 million of sales related to the acquisition, $4.3 million of
price improvement and $3.0 million of higher volume. Favorable
foreign currency translation was $4.1 million.
Third Quarter Fiscal 2024 Operating
Results
($ in millions)
Q3 FY 24
Q3 FY 23
Change
% Change
Gross profit
$
93.9
$
82.0
$
11.9
14.4
%
Gross margin
36.9
%
35.6 % %
130 bps
Adjusted Gross Profit1
$
94.5
$
82.0
$
12.4
15.2
%
Adjusted Gross Margin1
37.2
%
35.6
%
160 bps
Income from operations
$
26.9
$
20.2
$
6.7
33.4
%
Operating margin
10.6
%
8.8
%
180 bps
Adjusted Operating Income1
$
29.7
$
23.5
$
6.3
26.8
%
Adjusted Operating Margin1
11.7
%
10.2
%
150 bps
Net income
$
9.7
$
12.0
$
(2.3
)
(19.1
) %
Net income margin
3.8
%
5.2
%
(140) bps
Diluted EPS
$
0.34
$
0.42
$
(0.08
)
(19.0
) %
Adjusted Diluted EPS1
$
0.74
$
0.72
$
0.02
2.8
%
Adjusted EBITDA1
$
41.3
$
34.0
$
7.4
21.7
%
Adjusted EBITDA Margin2
16.3
%
14.7
%
160 bps
Adjusted Diluted EPS1 of $0.74 excludes amortization of
intangible assets related to acquisitions. The Company believes
this better represents its inherent earnings power and cash
generation capability.
Fourth Quarter Fiscal 2024
Guidance
Columbus McKinnon expects net sales of approximately $260
million to $270 million at current exchange rates. This represents
4% growth year-over-year at the midpoint of the range.
______________________________
1 Adjusted Gross Profit, Adjusted Gross
Margin, Adjusted Operating Income, Adjusted Operating Margin,
Adjusted Diluted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin
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.
Teleconference/webcast
Columbus McKinnon will host a conference call today at 10:00 AM
Eastern Time to discuss the Company’s financial results and
strategy. The conference call will be accessible through live
webcast and via phone by dialing 201-493-6780. The webcast,
earnings release and earnings presentation will be available at the
Company’s investor relations website at investors.cmco.com. A
replay of the webcast will also be archived on the Company’s
investor relations website and available via phone by dialing
412-317-6671 and enter the conference ID number 13743372 through
Wednesday, February 7, 2024.
About Columbus McKinnon
Columbus McKinnon is a leading worldwide designer, manufacturer
and marketer of intelligent motion solutions that move the world
forward and improve lives by efficiently and ergonomically moving,
lifting, positioning, and securing materials. Key products include
hoists, crane components, precision conveyor systems, rigging
tools, light rail workstations, and digital power and motion
control systems. The Company is focused on commercial and
industrial applications that require the safety and quality
provided by its superior design and engineering know-how.
Comprehensive information on Columbus McKinnon is available at
www.cmco.com.
Safe Harbor Statement
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are generally identified by
the use of forward-looking terminology, including the terms
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“illustrative,” “intend,” “likely,” “may,” “opportunity,” “plan,”
“possible,” “potential,” “predict,” “project,” “shall,” “should,”
“target,” “will,” “would” and, in each case, their negative or
other various or comparable terminology. All statements other than
statements of historical facts contained in this document,
including, but are not limited to, statements relating to: (i) our
strategy, outlook and growth prospects and our fourth quarter
fiscal 2024 net sales; (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 proper
application of generally accepted accounting principles, which are
highly complex and involve many subjective assumptions, estimates
and judgements; (vi) the effectiveness of our new facility in
Monterrey, Mexico to provide cost savings and margin improvement
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
December 31,
2023
December 31,
2022
Change
Net sales
$
254,143
$
230,370
10.3
%
Cost of products sold
160,246
148,326
8.0
%
Gross profit
93,897
82,044
14.4
%
Gross profit margin
36.9
%
35.6
%
Selling expenses
26,552
25,424
4.4
%
% of net sales
10.4
%
11.0
%
General and administrative expenses
26,255
25,143
4.4
%
% of net sales
10.3
%
10.9
%
Research and development expenses
6,692
4,839
38.3
%
% of net sales
2.6
%
2.1
%
Amortization of intangibles
7,486
6,459
15.9
%
Income from operations
26,912
20,179
33.4
%
Operating margin
10.6
%
8.8
%
Interest and debt expense
9,952
7,303
36.3
%
Investment (income) loss
(758
)
(574
)
32.1
%
Foreign currency exchange (gain) loss
(1,155
)
(3,359
)
(65.6
) %
Other (income) expense, net
5,234
79
6,525.3
%
Income (loss) before income tax expense
(benefit)
13,639
16,730
(18.5
) %
Income tax expense (benefit)
3,911
4,701
(16.8
) %
Net income (loss)
$
9,728
$
12,029
(19.1
) %
Average basic shares outstanding
28,744
28,626
0.4
%
Basic income (loss) per share
$
0.34
$
0.42
(19.0
) %
Average diluted shares outstanding
28,991
28,778
0.7
%
Diluted income (loss) per share
$
0.34
$
0.42
(19.0
) %
Dividends declared per common share
$
0.07
$
0.07
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED (In
thousands, except per share and percentage data)
Nine Months Ended
December 31,
2023
December 31,
2022
Change
Net sales
$
748,036
$
682,397
9.6
%
Cost of products sold
467,513
431,516
8.3
%
Gross profit
280,523
250,881
11.8
%
Gross profit margin
37.5
%
36.8
%
Selling expenses
78,400
77,197
1.6
%
% of net sales
10.5
%
11.3
%
General and administrative expenses
79,407
68,441
16.0
%
% of net sales
10.6
%
10.0
%
Research and development expenses
19,134
15,429
24.0
%
% of net sales
2.6
%
2.3
%
Amortization of intangibles
21,871
19,442
12.5
%
Income from operations
81,711
70,372
16.1
%
Operating margin
10.9
%
10.3
%
Interest and debt expense
28,788
20,274
42.0
%
Investment (income) loss
(1,212
)
168
NM
Foreign currency exchange (gain) loss
1,074
(1,152
)
NM
Other (income) expense, net
5,840
(1,999
)
NM
Income (loss) before income tax expense
(benefit)
47,221
53,081
(11.0
) %
Income tax expense (benefit)
12,405
18,547
(33.1
) %
Net income (loss)
$
34,816
$
34,534
0.8
%
Average basic shares outstanding
28,711
28,597
0.4
%
Basic income (loss) per share
$
1.21
$
1.21
—
%
Average diluted shares outstanding
28,979
28,767
0.7
%
Diluted income (loss) per share
$
1.20
$
1.20
—
%
Dividends declared per common share
$
0.14
$
0.14
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets (In thousands)
December 31,
2023
March 31, 2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
102,945
$
133,176
Trade accounts receivable
$
173,411
$
151,451
Inventories
$
204,396
$
179,359
Prepaid expenses and other
$
35,660
$
32,254
Total current assets
$
516,412
$
496,240
Property, plant, and equipment, net
$
102,729
$
94,360
Goodwill
$
728,427
$
644,629
Other intangibles, net
$
396,317
$
362,537
Marketable securities
$
12,388
$
10,368
Deferred taxes on income
$
1,990
$
2,035
Other assets
$
99,047
$
88,286
Total assets
$
1,857,310
$
1,698,455
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Trade accounts payable
$
76,151
$
76,736
Accrued liabilities
$
142,518
$
124,317
Current portion of long-term debt and
finance lease obligations
$
50,652
$
40,604
Total current liabilities
$
269,321
$
241,657
Term loan, AR securitization facility and
finance lease obligations
$
499,388
$
430,988
Other non current liabilities
$
210,164
$
192,013
Total liabilities
$
978,873
$
864,658
Shareholders’ equity:
Common stock
$
288
$
286
Treasury stock
$
(1,001
)
$
(1,001
)
Additional paid in capital
$
522,587
$
515,797
Retained earnings
$
387,550
$
356,758
Accumulated other comprehensive loss
$
(30,987
)
$
(38,043
)
Total shareholders’ equity
$
878,437
$
833,797
Total liabilities and shareholders’
equity
$
1,857,310
$
1,698,455
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
Nine Months Ended
December 31,
2023
December 31,
2022
Operating activities:
Net income (loss)
$
34,816
$
34,534
Adjustments to reconcile net income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization
$
34,052
$
31,380
Deferred income taxes and related
valuation allowance
$
(6,495
)
$
(783
)
Net loss (gain) on sale of real estate,
investments and other
$
(967
)
$
347
Non-cash pension settlement
$
4,599
$
—
Stock-based compensation
$
8,473
$
7,039
Amortization of deferred financing
costs
$
1,728
$
1,291
Loss (gain) on hedging instruments
$
1,193
$
(598
)
Gain on sale of building
$
—
$
(232
)
Loss on retirement of fixed asset
$
—
$
175
Non-cash lease expense
$
7,080
$
5,814
Changes in operating assets and
liabilities, net of effects of business acquisitions:
Trade accounts receivable
$
(14,911
)
$
(1,401
)
Inventories
$
(17,764
)
$
(31,701
)
Prepaid expenses and other
$
(2,897
)
$
4,905
Other assets
$
(859
)
$
(232
)
Trade accounts payable
$
(1,387
)
$
(18,756
)
Accrued liabilities
$
(7,236
)
$
(7,498
)
Non-current liabilities
$
(10,834
)
$
(7,382
)
Net cash provided by (used for) operating
activities
$
28,591
$
16,902
Investing activities:
Proceeds from sales of marketable
securities
$
1,101
$
2,650
Purchases of marketable securities
$
(2,731
)
$
(3,121
)
Capital expenditures
$
(16,334
)
$
(9,511
)
Proceeds from sale of building, net of
transaction costs
$
—
$
373
Purchase 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
$
(125,965
)
$
(10,912
)
Financing activities:
Proceeds from the issuance of common
stock
$
556
$
704
Purchases of treasury stock
$
—
$
(1,001
)
Repayment of debt
$
(40,447
)
$
(30,402
)
Proceeds from issuance of long-term
debt
$
120,000
$
—
Fees paid for borrowings on long-term
debt
$
(2,859
)
$
—
Cash inflows from hedging activities
$
18,088
$
18,422
Cash outflows from hedging activities
$
(19,303
)
$
(17,958
)
Payment of dividends
$
(6,027
)
$
(6,006
)
Other
$
(2,237
)
$
(1,398
)
Net cash provided by (used for) financing
activities
$
67,771
$
(37,639
)
Effect of exchange rate changes on
cash
$
(628
)
$
(2,221
)
Net change in cash and cash
equivalents
$
(30,231
)
$
(33,870
)
Cash, cash equivalents, and restricted
cash at beginning of year
$
133,426
$
115,640
Cash, cash equivalents, and restricted
cash at end of period
$
103,195
$
81,770
COLUMBUS McKINNON CORPORATION Q3 FY
2024 Sales Bridge
Quarter
Year To Date
($ in millions)
$ Change
% Change
$ Change
% Change
Fiscal 2023 Sales
$
230.4
$
682.4
Acquisition
15.5
6.7
%
27.7
4.1
%
Pricing
6.5
2.8
%
28.1
4.1
%
Volume
(2.4
)
(1.0
) %
(0.2
)
—
Foreign currency translation
4.1
1.8
%
10.0
1.4
%
Total change
$
23.7
10.3
%
$
65.6
9.6
%
Fiscal 2024 Sales
$
254.1
$
748.0
COLUMBUS McKINNON CORPORATION Q3 FY
2024 Gross Profit Bridge
($ in millions)
Quarter
Year To Date
Fiscal 2023 Gross Profit
$
82.0
$
250.9
Acquisition
6.7
13.0
Price, net of manufacturing costs changes
(incl. inflation)
4.6
15.8
Product liability
0.9
0.9
Current year business realignment
costs
(0.6
)
(0.8
)
Sales volume and mix
(1.2
)
(2.7
)
Foreign currency translation
1.4
3.4
Total change
11.8
29.6
Fiscal 2024 Gross Profit
$
93.9
$
280.5
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 Data1 (Unaudited)
December 31,
2023
September 30,
2023
March 31, 2023
December 31,
2022
($ in millions)
Backlog
$
298.4
$
317.7
$
308.7
$
329.1
Long-term backlog
Expected to ship beyond 3 months
$
151.3
$
148.3
$
142.0
$
164.7
Long-term backlog as % of total
backlog
50.7
%
46.7
%
46.0
%
50.0
%
Trade accounts receivable
Days sales outstanding
62.1
days
58.6
days
54.3
days
58.0
days
Inventory turns per year
(based on cost of products sold)
3.1
turns
3.1
turns
3.6
turns
3.0
turns
Days' inventory
117.7
days
117.7
days
101.4
days
121.0
days
Trade accounts payable
Days payables outstanding
50.1
days
48.3
days
53.3
days
52.6
days
Working capital as a % of sales
2,3
20.6
%
21.8
%
17.3
%
22.1
%
Net cash provided by (used for)
operating activities
$
29.1
$
16.7
$
66.7
$
10.8
Capital expenditures
$
6.0
$
5.0
$
3.1
$
4.2
Free Cash Flow 4
$
23.1
$
11.7
$
63.6
$
6.5
Debt to total capitalization
percentage
38.5
%
39.8
%
36.1
%
37.3
%
Debt, net of cash, to net total
capitalization
33.7
%
35.3
%
28.9
%
33.0
%
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.
2 December 31, 2023 and September 30, 2023
exclude the impact of the acquisition of montratec GmbH.
3 December 31, 2022 figure excludes the
impact of the acquisition of Garvey Corporation.
4 Free Cash Flow is defined as net cash
provided by (used for) operating activities less capital
expenditures. Free Cash Flow is not a measure determined in
accordance with GAAP and may not be comparable with the measures as
defined or used by other companies. Nevertheless, the Company
believes that providing non-GAAP financial measures, such as Free
Cash Flow, is important for investors and other readers of the
Company’s financial statements and assists in understanding the
comparison of the current quarter’s Free Cash Flow to Free Cash
Flow for historical periods.
Components may not add due to
rounding.
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
Nine Months Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Gross profit
$
93,897
$
82,044
$
280,523
$
250,881
Add back (deduct):
Business realignment costs
150
—
346
—
Monterrey, MX new factory start-up
costs
435
—
435
—
Adjusted Gross Profit
$
94,482
$
82,044
$
281,304
$
250,881
Net sales
$
254,143
$
230,370
$
748,036
$
682,397
Gross margin
36.9
%
35.6
%
37.5
%
36.8
%
Adjusted Gross Margin
37.2
%
35.6
%
37.6
%
36.8
%
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
Nine Months Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Income from operations
$
26,912
$
20,179
$
81,711
$
70,372
Add back (deduct):
Acquisition deal and integration costs
113
338
3,208
443
Business realignment costs
1,452
1,401
1,867
4,292
North American warehouse consolidation
—
—
199
—
Headquarter relocation costs
510
315
1,884
315
Garvey contingent consideration
—
1,230
—
1,230
Monterrey, MX new factory start-up
costs
755
—
755
—
Adjusted Operating Income
$
29,742
$
23,463
$
89,624
$
76,652
Net sales
$
254,143
$
230,370
$
748,036
$
682,397
Operating margin
10.6
%
8.8
%
10.9
%
10.3
%
Adjusted Operating Margin
11.7
%
10.2
%
12.0
%
11.2
%
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 Diluted Earnings per
Share ($ in thousands, except per share data)
Three Months Ended
Nine Months Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net income
$
9,728
$
12,029
$
34,816
$
34,534
Add back (deduct):
Amortization of intangibles
7,486
6,459
21,871
19,442
Acquisition deal and integration costs
113
338
3,208
443
Business realignment costs
1,452
1,401
1,867
4,292
North American warehouse consolidation
—
—
199
—
Headquarter relocation costs
510
315
1,884
315
Garvey contingent consideration
—
1,230
—
1,230
Monterrey, MX new factory start-up
costs
755
—
755
—
Non-cash pension settlement expense
4,599
—
4,599
—
Normalize tax rate 1
(3,227
)
(1,123
)
(7,996
)
1,210
Adjusted Net Income
$
21,416
$
20,649
$
61,203
$
61,466
Average diluted shares outstanding
28,991
28,778
28,979
28,767
Diluted income per share
$
0.34
$
0.42
$
1.20
$
1.20
Adjusted Diluted EPS
$
0.74
$
0.72
$
2.11
$
2.14
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 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
Nine Months Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net income
$
9,728
$
12,029
$
34,816
$
34,534
Add back (deduct):
Income tax expense (benefit)
3,911
4,701
12,405
18,547
Interest and debt expense
9,952
7,303
28,788
20,274
Investment (income) loss
(758
)
(574
)
(1,212
)
168
Foreign currency exchange (gain) loss
(1,155
)
(3,359
)
1,074
(1,152
)
Other (income) expense, net1
5,234
79
5,840
(1,999
)
Depreciation and amortization expense
11,570
10,487
34,052
31,380
Acquisition deal and integration costs
113
338
3,208
443
Business realignment costs
1,452
1,401
1,867
4,292
North American warehouse consolidation
—
—
199
—
Headquarter relocation costs
510
315
1,884
315
Garvey contingent consideration
—
1,230
—
1,230
Monterrey, MX new factory start-up
costs
755
—
755
—
Adjusted EBITDA
$
41,312
$
33,950
$
123,676
$
108,032
Net sales
$
254,143
$
230,370
$
748,036
$
682,397
Net income margin
3.8
%
5.2
%
4.7
%
5.1
%
Adjusted EBITDA Margin
16.3
%
14.7
%
16.5
%
15.8
%
1
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. As a result, the Company recorded a
non-cash settlement charge in the amount $4,599,000.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131450558/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
704-942-3253 kristy.moser@cmco.com
Investor Relations: Deborah K. Pawlowski Kei Advisors LLC
716-843-3908 dpawlowski@keiadvisors.com
Columbus McKinnon (NASDAQ:CMCO)
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