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Columbus McKinnon Reports Record Net Sales, Gross Margin and Operating Income in Fiscal 2024

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.

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