CHARLOTTE, N.C., Feb. 10,
2025 /PRNewswire/ -- 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 2025 third quarter, which
ended December 31, 2024.
Third Quarter 2025 Highlights
(compared with prior-year period, except where otherwise
noted)
- Net sales of $234.1 million
with 7.6% operating margin or 10.9% on an adjusted
basis1
- Orders decreased 4% driven by a 6% decrease in short-cycle
orders
- EMEA orders increased 1% offset by a 5% decline in the
Americas
- Strength in Precision conveyance and linear motion orders,
up 16% and 8% respectively
- Backlog of $296.5 million
remains healthy and continues to normalize with improved service
levels
- GAAP EPS of $0.14 and Adjusted
EPS1 of $0.56 include
$0.08 per share impact of unfavorable
FX movements in the quarter and $0.11
per share versus the prior year
- Repaid $15 million of debt in
Q3 FY25; Anticipate FY25 debt repayment of $60 million
"The second half of our third quarter saw a slowing of industry
demand. This was driven by delayed customer decision-making
related to U.S. policy uncertainty, including tariffs as well as
continued weakening in the European economies," said David J. Wilson, President and Chief Executive
Officer. "Our results reflect lower than expected short-cycle
demand which we expect will also impact the fourth quarter. The
strengthening of the U.S. dollar negatively impacted earnings per
share by $0.11 versus the prior year
as well. As the quarter evolved, we executed actions to
reduce costs and align capacity with demand, which will remain a
focus the fourth quarter."
"While our optimism about the business remains unchanged, in the
near-term our revised guidance contemplates a cautious approach to
the evolving policy environment and subdued demand in Europe," continued Wilson. "We remain focused
on what we can control, with strong operational execution while
making progress on our long-term strategic plan, including
executing of our footprint simplification initiatives. Last
week we initiated a consolidation of two additional factories into
existing manufacturing capacity as part of our ongoing 80/20
footprint simplification plan. We are delivering impactful
improvements across the business and remain in early innings in
terms of the value these initiatives will deliver."
Third Quarter Fiscal 2025 Sales
|
($ in
millions)
|
Q3 FY25
|
|
Q3 FY24
|
|
Change
|
|
%
Change
|
|
Net sales
|
$
234.1
|
|
$
254.1
|
|
$
(20.0)
|
|
(7.9) %
|
|
U.S. sales
|
$
129.5
|
|
$
138.5
|
|
$
(9.0)
|
|
(6.5) %
|
|
% of total
|
55 %
|
|
55 %
|
|
|
|
|
|
Non-U.S.
sales
|
$
104.6
|
|
$
115.6
|
|
$
(11.0)
|
|
(9.5) %
|
|
% of total
|
45 %
|
|
45 %
|
|
|
|
|
For the quarter, net sales decreased $20.0 million, or 7.9%. In the U.S., sales were
down $9.0 million, or 6.5%, driven by
lower volume. Sales outside the U.S. decreased $11.0 million, or 9.5%. Price improvement of
$2.3 million partially offset
$12.3 million of lower volume and
unfavorable foreign currency translation of $1.0 million.
Third Quarter Fiscal 2025 Operating Results
|
($ in
millions)
|
Q3
FY25
|
|
Q3
FY24
|
|
Change
|
|
%
Change
|
|
Gross profit
|
$
82.1
|
|
$
93.9
|
|
$
(11.8)
|
|
(12.6) %
|
|
Gross margin
|
35.1 %
|
|
36.9 %
|
|
(180) bps
|
|
|
|
Adjusted Gross
Profit1
|
$
86.2
|
|
$
94.5
|
|
$
(8.3)
|
|
(8.7) %
|
|
Adjusted Gross
Margin1
|
36.8 %
|
|
37.2 %
|
|
(40) bps
|
|
|
|
Income from
operations
|
$
17.7
|
|
$
26.9
|
|
$
(9.2)
|
|
(34.3) %
|
|
Operating
margin
|
7.6 %
|
|
10.6 %
|
|
(300) bps
|
|
|
|
Adjusted Operating
Income1
|
$
25.6
|
|
$
29.7
|
|
$
(4.2)
|
|
(14.0) %
|
|
Adjusted Operating
Margin1
|
10.9 %
|
|
11.7 %
|
|
(80) bps
|
|
|
|
Net income
(loss)
|
$
4.0
|
|
$
9.7
|
|
$
(5.8)
|
|
(59.3) %
|
|
Net income (loss)
margin
|
1.7 %
|
|
3.8 %
|
|
(210) bps
|
|
|
|
GAAP EPS
|
$
0.14
|
|
$
0.34
|
|
$
(0.20)
|
|
(58.8) %
|
|
Adjusted
EPS1
|
$
0.56
|
|
$
0.74
|
|
$
(0.18)
|
|
(24.3) %
|
|
Adjusted
EBITDA1
|
$
37.8
|
|
$
41.3
|
|
$
(3.5)
|
|
(8.6) %
|
|
Adjusted EBITDA
Margin1
|
16.1 %
|
|
16.3 %
|
|
(20) bps
|
|
|
Adjusted EPS1 excludes, among other adjustments,
amortization of intangible assets. The Company believes this
better represents its inherent earnings power and cash generation
capability.
Fiscal 2025 Guidance
The Company is issuing the following guidance for the fiscal
year 2025, ending March 31, 2025:
|
Metric
|
FY25
|
|
Net sales
growth
|
Mid-single digit
decrease year-over-year
|
|
Adjusted
EPS2
|
Low-teens decrease
year-over-year
|
|
Capital
Expenditures
|
$18 million to $22
million
|
|
Net Leverage
Ratio2
|
~3.0x
|
Fiscal 2025 guidance assumes approximately $32 million of interest expense, $30 million of amortization, an effective tax
rate of 25% and 29.0 million diluted average shares
outstanding.
Teleconference/Webcast
Columbus McKinnon will host a
conference call today at 5:00 PM Eastern
Time to discuss the Company's financial results and
strategy. The conference call, earnings release and earnings
presentation will be accessible through live webcast on 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 through Monday,
February 24, 2025.
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.
|
______________________
|
|
1
|
Adjusted Gross Profit,
Adjusted Gross Margin, Adjusted Operating Income, Adjusted
Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and
Adjusted EPS 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
|
The Company has not
reconciled the Adjusted EPS and Net Leverage Ratio guidance to the
most comparable GAAP financial measure 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 is made in a manner consistent with the relevant
definitions and assumptions noted herein and in alignment with the
Company's financial covenants per the Company's Amended and
Restated Credit Agreement.
|
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, including
fiscal year 2025 net sales growth and Adjusted EPS guidance, and
our fiscal year 2025 net leverage ratio and capital expenditure
guidance; (ii) our operational and financial targets and capital
allocation policy; (iii) general economic trends and trends in our
industry and markets; (iv) the amount of debt to be paid down by
the Company during fiscal year 2025; and (v) 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, 2024 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.
Contacts:
|
Gregory P.
Rustowicz
|
|
Kristine
Moser
|
|
EVP Finance and
CFO
|
|
VP IR and
Treasurer
|
|
Columbus McKinnon
Corporation
|
|
Columbus McKinnon
Corporation
|
|
716-689-5442
|
|
704-322-2488
|
|
greg.rustowicz@cmco.com
|
|
kristy.moser@cmco.com
|
Financial tables follow.
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Income Statements - UNAUDITED
(In thousands,
except per share and percentage data)
|
|
|
Three Months
Ended
|
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Change
|
|
Net sales
|
|
$
234,138
|
|
$
254,143
|
|
(7.9) %
|
|
Cost of products
sold
|
|
152,041
|
|
160,246
|
|
(5.1) %
|
|
Gross profit
|
|
82,097
|
|
93,897
|
|
(12.6) %
|
|
Gross profit
margin
|
|
35.1 %
|
|
36.9 %
|
|
|
|
Selling
expenses
|
|
27,348
|
|
26,552
|
|
3.0 %
|
|
% of net
sales
|
|
11.7 %
|
|
10.4 %
|
|
|
|
General and
administrative expenses
|
|
24,233
|
|
26,255
|
|
(7.7) %
|
|
% of net
sales
|
|
10.3 %
|
|
10.3 %
|
|
|
|
Research and
development expenses
|
|
5,325
|
|
6,692
|
|
(20.4) %
|
|
% of net
sales
|
|
2.3 %
|
|
2.6 %
|
|
|
|
Amortization of
intangibles
|
|
7,501
|
|
7,486
|
|
0.2 %
|
|
Income from
operations
|
|
17,690
|
|
26,912
|
|
(34.3) %
|
|
Operating
margin
|
|
7.6 %
|
|
10.6 %
|
|
|
|
Interest and debt
expense
|
|
7,698
|
|
9,952
|
|
(22.6) %
|
|
Investment (income)
loss
|
|
(54)
|
|
(758)
|
|
(92.9) %
|
|
Foreign currency
exchange (gain) loss
|
|
3,128
|
|
(1,155)
|
|
NM
|
|
Other (income) expense,
net
|
|
1,029
|
|
5,234
|
|
(80.3) %
|
|
Income (loss) before
income tax expense (benefit)
|
|
5,889
|
|
13,639
|
|
(56.8) %
|
|
Income tax expense
(benefit)
|
|
1,929
|
|
3,911
|
|
(50.7) %
|
|
Net income
(loss)
|
|
$
3,960
|
|
$
9,728
|
|
(59.3) %
|
|
|
|
|
|
|
|
|
Average basic shares
outstanding
|
|
28,631
|
|
28,744
|
|
(0.4) %
|
|
Basic income (loss)
per share
|
|
$
0.14
|
|
$
0.34
|
|
(58.8) %
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding
|
|
28,888
|
|
28,991
|
|
(0.4) %
|
|
Diluted income (loss)
per share
|
|
$
0.14
|
|
$
0.34
|
|
(58.8) %
|
|
|
|
|
|
|
|
|
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,
2024
|
|
December 31,
2023
|
|
Change
|
|
Net sales
|
|
$
716,138
|
|
$
748,036
|
|
(4.3) %
|
|
Cost of products
sold
|
|
470,268
|
|
467,513
|
|
0.6 %
|
|
Gross profit
|
|
245,870
|
|
280,523
|
|
(12.4) %
|
|
Gross profit
margin
|
|
34.3 %
|
|
37.5 %
|
|
|
|
Selling
expenses
|
|
82,044
|
|
78,400
|
|
4.6 %
|
|
% of net
sales
|
|
11.5 %
|
|
10.5 %
|
|
|
|
General and
administrative expenses
|
|
74,043
|
|
79,407
|
|
(6.8) %
|
|
% of net
sales
|
|
10.3 %
|
|
10.6 %
|
|
|
|
Research and
development expenses
|
|
17,593
|
|
19,134
|
|
(8.1) %
|
|
% of net
sales
|
|
2.5 %
|
|
2.6 %
|
|
|
|
Amortization of
intangibles
|
|
22,548
|
|
21,871
|
|
3.1 %
|
|
Income from
operations
|
|
49,642
|
|
81,711
|
|
(39.2) %
|
|
Operating
margin
|
|
6.9 %
|
|
10.9 %
|
|
|
|
Interest and debt
expense
|
|
24,285
|
|
28,788
|
|
(15.6) %
|
|
Investment (income)
loss
|
|
(873)
|
|
(1,212)
|
|
(28.0) %
|
|
Foreign currency
exchange (gain) loss
|
|
2,730
|
|
1,074
|
|
154.2 %
|
|
Other (income) expense,
net
|
|
25,512
|
|
5,840
|
|
336.8 %
|
|
Income (loss) before
income tax expense (benefit)
|
|
(2,012)
|
|
47,221
|
|
NM
|
|
Income tax expense
(benefit)
|
|
442
|
|
12,405
|
|
(96.4) %
|
|
Net income
(loss)
|
|
$
(2,454)
|
|
$
34,816
|
|
NM
|
|
|
|
|
|
|
|
|
Average basic shares
outstanding
|
|
28,778
|
|
28,711
|
|
0.2 %
|
|
Basic income (loss)
per share
|
|
$
(0.09)
|
|
$
1.21
|
|
NM
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding
|
|
28,778
|
|
28,979
|
|
(0.7) %
|
|
Diluted income (loss)
per share
|
|
$
(0.09)
|
|
$
1.20
|
|
NM
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
|
$
0.14
|
|
$
0.14
|
|
|
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
December 31,
2024
|
|
March 31,
2024
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
41,224
|
|
$
114,126
|
|
Trade accounts
receivable
|
|
157,038
|
|
171,186
|
|
Inventories
|
|
200,687
|
|
186,091
|
|
Prepaid expenses and
other
|
|
41,486
|
|
42,752
|
|
Total current
assets
|
|
440,435
|
|
514,155
|
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
105,637
|
|
106,395
|
|
Goodwill
|
|
700,550
|
|
710,334
|
|
Other intangibles,
net
|
|
358,150
|
|
385,634
|
|
Marketable
securities
|
|
10,565
|
|
11,447
|
|
Deferred taxes on
income
|
|
1,515
|
|
1,797
|
|
Other assets
|
|
94,048
|
|
96,183
|
|
Total
assets
|
|
$
1,710,900
|
|
$
1,825,945
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade accounts
payable
|
|
$
73,019
|
|
$
83,118
|
|
Accrued
liabilities
|
|
93,595
|
|
127,973
|
|
Current portion of
long-term debt and finance lease obligations
|
|
50,722
|
|
50,670
|
|
Total current
liabilities
|
|
217,336
|
|
261,761
|
|
|
|
|
|
|
Term loan, AR
securitization facility and finance lease obligations
|
|
435,075
|
|
479,566
|
|
Other non current
liabilities
|
|
186,909
|
|
202,555
|
|
Total
liabilities
|
|
$
839,320
|
|
$
943,882
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
286
|
|
288
|
|
Treasury
stock
|
|
(10,945)
|
|
(1,001)
|
|
Additional paid in
capital
|
|
532,271
|
|
527,125
|
|
Retained
earnings
|
|
388,851
|
|
395,328
|
|
Accumulated other
comprehensive loss
|
|
(38,883)
|
|
(39,677)
|
|
Total shareholders'
equity
|
|
$
871,580
|
|
$
882,063
|
|
Total liabilities
and shareholders' equity
|
|
$
1,710,900
|
|
$
1,825,945
|
|
COLUMBUS McKINNON
CORPORATION
Condensed
Consolidated Statements of Cash Flows - UNAUDITED
(In
thousands)
|
|
|
Nine Months
Ended
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Operating
activities:
|
|
|
|
|
|
Net income
(loss)
|
|
$
(2,454)
|
|
$
34,816
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used for)
operating activities:
|
|
Depreciation and
amortization
|
|
36,230
|
|
34,052
|
|
Deferred income taxes
and related valuation allowance
|
|
(15,089)
|
|
(6,495)
|
|
Net loss (gain) on
sale of real estate, investments and other
|
|
(617)
|
|
(967)
|
|
Non-cash pension
settlement
|
|
23,634
|
|
4,599
|
|
Stock-based
compensation
|
|
6,677
|
|
8,473
|
|
Amortization of
deferred financing costs
|
|
1,865
|
|
1,728
|
|
Impairment of
operating lease
|
|
3,268
|
|
—
|
|
Loss (gain) on hedging
instruments
|
|
(321)
|
|
1,193
|
|
Loss (gain) on
disposal of Fixed Assets
|
|
394
|
|
—
|
|
Non-cash lease
expense
|
|
7,657
|
|
7,080
|
|
Changes in
operating assets and liabilities, net of effects of business
acquisitions:
|
|
Trade accounts
receivable
|
|
10,255
|
|
(14,911)
|
|
Inventories
|
|
(18,894)
|
|
(17,764)
|
|
Prepaid expenses and
other
|
|
(14,565)
|
|
(2,897)
|
|
Other
assets
|
|
486
|
|
(859)
|
|
Trade accounts
payable
|
|
(8,061)
|
|
(1,387)
|
|
Accrued
liabilities
|
|
(15,240)
|
|
(7,236)
|
|
Non-current
liabilities
|
|
(5,225)
|
|
(10,834)
|
|
Net cash provided by
(used for) operating activities
|
|
10,000
|
|
28,591
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Proceeds from sales of
marketable securities
|
|
4,301
|
|
1,101
|
|
Purchases of marketable
securities
|
|
(3,257)
|
|
(2,731)
|
|
Capital
expenditures
|
|
(15,266)
|
|
(16,334)
|
|
Purchase of businesses,
net of cash acquired
|
|
—
|
|
(108,145)
|
|
Dividend received from
equity method investment
|
|
—
|
|
144
|
|
Net cash provided by
(used for) investing activities
|
|
(14,222)
|
|
(125,965)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from the
issuance of common stock
|
|
364
|
|
556
|
|
Purchases of treasury
stock
|
|
(9,945)
|
|
—
|
|
Repayment of
debt
|
|
(45,495)
|
|
(40,447)
|
|
Proceeds from issuance
of long-term debt
|
|
—
|
|
120,000
|
|
Fees paid for
borrowings on long-term debt
|
|
—
|
|
(2,859)
|
|
Payment to former
owners of montratec
|
|
(6,711)
|
|
—
|
|
Fees paid for debt
repricing
|
|
(169)
|
|
—
|
|
Cash inflows from
hedging activities
|
|
17,753
|
|
18,088
|
|
Cash outflows from
hedging activities
|
|
(17,360)
|
|
(19,303)
|
|
Payment of
dividends
|
|
(6,039)
|
|
(6,027)
|
|
Other
|
|
(1,897)
|
|
(2,237)
|
|
Net cash provided by
(used for) financing activities
|
|
(69,499)
|
|
67,771
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
819
|
|
(628)
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
|
(72,902)
|
|
(30,231)
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
$
114,376
|
|
$
133,426
|
|
Cash, cash equivalents,
and restricted cash at end of period
|
|
$
41,474
|
|
$
103,195
|
|
COLUMBUS McKINNON
CORPORATION
Q3 FY
2025 Net Sales Bridge
|
|
|
Quarter
|
|
Year To
Date
|
|
($ in
millions)
|
|
$
Change
|
|
%
Change
|
|
$
Change
|
|
%
Change
|
|
Fiscal 2024 Net
Sales
|
|
$
254.1
|
|
|
|
$
748.0
|
|
|
|
Acquisition
|
|
—
|
|
— %
|
|
2.7
|
|
0.3 %
|
|
Pricing
|
|
2.3
|
|
0.9 %
|
|
9.6
|
|
1.3 %
|
|
Volume
|
|
(21.3)
|
|
(8.4) %
|
|
(42.9)
|
|
(5.7) %
|
|
Foreign currency
translation
|
|
(1.0)
|
|
(0.4) %
|
|
(1.3)
|
|
(0.2) %
|
|
Total
change
|
|
$
(20.0)
|
|
(7.9) %
|
|
$
(31.9)
|
|
(4.3) %
|
|
Fiscal 2025 Net
Sales
|
|
$
234.1
|
|
|
|
$
716.1
|
|
|
|
COLUMBUS McKINNON
CORPORATION
Q3 FY
2025 Gross Profit Bridge
|
|
($ in
millions)
|
Quarter
|
|
Year To
Date
|
|
Fiscal 2024 Gross
Profit
|
$
93.9
|
|
$
280.5
|
|
Acquisition
|
—
|
|
0.8
|
|
Price, net of
manufacturing costs changes (incl. inflation)
|
3.9
|
|
7.5
|
|
Product
liability1
|
(2.0)
|
|
(2.0)
|
|
Monterrey, MX new
factory start-up costs
|
(2.6)
|
|
(6.4)
|
|
Factory and warehouse
consolidation costs
|
(0.5)
|
|
(11.3)
|
|
Sales volume and
mix
|
(9.9)
|
|
(22.0)
|
|
Other
|
(0.4)
|
|
(0.8)
|
|
Foreign currency
translation
|
(0.3)
|
|
(0.4)
|
|
Total
change
|
(11.8)
|
|
(34.6)
|
|
Fiscal 2025 Gross
Profit
|
$
82.1
|
|
$
245.9
|
|
U.S. Shipping Days
by Quarter
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
FY25
|
|
64
|
|
63
|
|
62
|
|
62
|
|
251
|
|
|
|
|
|
|
|
|
|
|
|
|
FY24
|
|
63
|
|
62
|
|
61
|
|
62
|
|
248
|
|
______________________
|
|
1
|
Product liability
represents a year-over-year difference between the current year
adjustment increasing the Company's product liability reserve and
the prior year's adjustment decreasing the Company's product
liability reserve. For more details please see the Company's 10-Q
filed with the Securities and Exchange Commission
|
|
COLUMBUS McKINNON
CORPORATION
Additional
Data1
(Unaudited)
|
|
|
Period
Ended
|
|
|
December 31,
2024
|
|
September 30,
2024
|
|
March
31, 2024
|
|
December 31,
2023
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
$ 296.5
|
|
|
$ 317.6
|
|
|
$ 280.8
|
|
|
$ 298.4
|
|
|
|
Long-term
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected to ship
beyond 3 months
|
|
$ 166.1
|
|
|
$ 172.5
|
|
|
$ 144.6
|
|
|
$ 151.3
|
|
|
|
Long-term backlog as
% of total backlog
|
|
56.0
|
%
|
|
54.3
|
%
|
|
51.5
|
%
|
|
50.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt to total
capitalization percentage
|
|
35.8
|
%
|
|
35.8
|
%
|
|
37.5
|
%
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net of cash,
to net total capitalization
|
|
33.8
|
%
|
|
33.2
|
%
|
|
32.0
|
%
|
|
33.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital as a
% of sales 2
|
|
23.7
|
%
|
|
23.3
|
%
|
|
19.1
|
%
|
|
20.6
|
%
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2024
|
|
September 30,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales
outstanding
|
|
61.0
|
days
|
|
64.1
|
days
|
|
58.7
|
days
|
|
62.1
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns per
year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(based on cost of
products sold)
|
|
3.0
|
turns
|
|
3.3
|
turns
|
|
3.7
|
turns
|
|
3.1
|
turns
|
|
|
Days'
inventory
|
|
121.7
|
days
|
|
110.6
|
days
|
|
98.6
|
days
|
|
117.7
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days payables
outstanding
|
|
50.5
|
days
|
|
46.3
|
days
|
|
50.9
|
days
|
|
50.1
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used for) operating activities
|
|
$ 11.4
|
|
|
$ 9.4
|
|
|
$ 38.6
|
|
|
$ 29.1
|
|
|
|
Capital
expenditures
|
|
$ 5.2
|
|
|
$ 5.4
|
|
|
$ 8.5
|
|
|
$ 6.0
|
|
|
|
Free Cash Flow
3
|
|
$ 6.2
|
|
|
$ 4.0
|
|
|
$ 30.1
|
|
|
$ 23.1
|
|
|
|
______________________
|
|
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 measure. Free Cash Flow is defined as GAAP
net cash provided by (used for) operating activities less capital
expenditures included in the investing activities section of the
consolidated statement of cash flows. See the table above for
the calculation of Free Cash Flow.
|
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,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Gross profit
|
$ 82,097
|
|
$ 93,897
|
|
$
245,870
|
|
$
280,523
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Business realignment
costs
|
526
|
|
150
|
|
994
|
|
346
|
|
Hurricane Helene cost
impact
|
—
|
|
—
|
|
171
|
|
—
|
|
Factory and warehouse
consolidation costs
|
556
|
|
—
|
|
11,319
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,038
|
|
435
|
|
6,848
|
|
435
|
|
Adjusted Gross
Profit
|
$ 86,217
|
|
$ 94,482
|
|
$
265,202
|
|
$
281,304
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
234,138
|
|
$
254,143
|
|
$
716,138
|
|
$
748,036
|
|
|
|
|
|
|
|
|
|
Gross margin
|
35.1 %
|
|
36.9 %
|
|
34.3 %
|
|
37.5 %
|
|
Adjusted Gross
Margin
|
36.8 %
|
|
37.2 %
|
|
37.0 %
|
|
37.6 %
|
Adjusted Gross Profit is defined as gross profit as reported,
adjusted for certain items. Adjusted Gross 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 Margin as used by other companies.
Nevertheless, Columbus McKinnon
believes that providing non-GAAP financial measures, such as
Adjusted Gross Profit and Adjusted Gross 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 gross profit and gross margin to the historical periods'
gross profit, as well as facilitates a more meaningful comparison
of the Company's gross profit and gross 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,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Income from
operations
|
$
17,690
|
|
$
26,912
|
|
$
49,642
|
|
$
81,711
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Acquisition deal and
integration costs
|
—
|
|
113
|
|
—
|
|
3,208
|
|
Business realignment
costs
|
987
|
|
1,452
|
|
2,118
|
|
1,867
|
|
Factory and warehouse
consolidation costs
|
653
|
|
—
|
|
12,557
|
|
199
|
|
Headquarter relocation
costs
|
175
|
|
510
|
|
322
|
|
1,884
|
|
Hurricane Helene cost
impact
|
—
|
|
—
|
|
171
|
|
—
|
|
Mexico customs duty
assessment
|
1,500
|
|
—
|
|
1,500
|
|
—
|
|
Customer bad
debt1
|
1,299
|
|
—
|
|
1,299
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,270
|
|
755
|
|
10,587
|
|
755
|
|
Adjusted Operating
Income
|
$
25,574
|
|
$
29,742
|
|
$
78,196
|
|
$
89,624
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 234,138
|
|
$ 254,143
|
|
$ 716,138
|
|
$ 748,036
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
7.6 %
|
|
10.6 %
|
|
6.9 %
|
|
10.9 %
|
|
Adjusted Operating
Margin
|
10.9 %
|
|
11.7 %
|
|
10.9 %
|
|
12.0 %
|
|
|
|
1
|
Customer bad debt
represents a reserve of $1,299,000 against an accounts receivable
balance for a customer who declared bankruptcy in January of
2025
|
Adjusted Operating Income is defined as income from operations
as reported, adjusted for certain items. Adjusted Operating
Margin is defined as Adjusted Operating Income divided by net
sales. Adjusted Operating Income and Adjusted Operating
Margin are not measures determined in accordance with GAAP and may
not be comparable with Adjusted Operating Income and Adjusted
Operating Margin as used by other companies. Nevertheless,
Columbus McKinnon believes that
providing non-GAAP financial measures, such as Adjusted Operating
Income and Adjusted Operating Margin, are important for investors
and other readers of the Company's financial statements and assists
in understanding the comparison of the current quarter's income
from operations to the historical periods' income from operations
and operating margin, as well as facilitates a more meaningful
comparison of the Company's income from operations and operating
margin to that of other companies.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Net Income and Diluted Earnings per Share to
Adjusted Net Income
and Adjusted Earnings per Share
($ in thousands,
except per share data)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net income
(loss)
|
$
3,960
|
|
$
9,728
|
|
$
(2,454)
|
|
$
34,816
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
7,501
|
|
7,486
|
|
22,548
|
|
21,871
|
|
Acquisition deal and
integration costs
|
—
|
|
113
|
|
—
|
|
3,208
|
|
Business realignment
costs
|
987
|
|
1,452
|
|
2,118
|
|
1,867
|
|
Factory and warehouse
consolidation costs
|
653
|
|
—
|
|
12,557
|
|
199
|
|
Headquarter relocation
costs
|
175
|
|
510
|
|
322
|
|
1,884
|
|
Hurricane Helene cost
impact
|
—
|
|
—
|
|
171
|
|
—
|
|
Mexico customs duty
assessment
|
1,500
|
|
—
|
|
1,500
|
|
—
|
|
Customer bad
debt1
|
1,299
|
|
—
|
|
1,299
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,270
|
|
755
|
|
10,587
|
|
755
|
|
Non-cash pension
settlement expense
|
433
|
|
4,599
|
|
23,634
|
|
4,599
|
|
Normalize tax rate
2
|
(3,498)
|
|
(3,227)
|
|
(17,739)
|
|
(7,996)
|
|
Adjusted Net
Income
|
$
16,280
|
|
$
21,416
|
|
$
54,543
|
|
$
61,203
|
|
|
|
|
|
|
|
|
|
GAAP average diluted
shares outstanding
|
28,888
|
|
28,991
|
|
28,778
|
|
28,979
|
|
Add back:
|
|
|
|
|
|
|
|
|
Effect of dilutive
share-based awards
|
—
|
|
—
|
|
268
|
|
—
|
|
Adjusted Diluted Shares
Outstanding
|
$
28,888
|
|
$
28,991
|
|
$
29,046
|
|
$
28,979
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
$
0.14
|
|
$
0.34
|
|
$
(0.09)
|
|
$
1.20
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
$
0.56
|
|
$
0.74
|
|
$
1.88
|
|
$
2.11
|
|
|
|
1
|
Customer bad debt
represents a reserve of $1,299,000 against an accounts receivable
balance for a customer who declared bankruptcy in January of
2025
|
|
2
|
Applies a normalized
tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments
above, which are each pre-tax.
|
Adjusted Net Income is defined as net income (loss) and GAAP EPS
as reported, adjusted for certain items, including amortization of
intangibles, and also adjusted for a normalized tax rate. Adjusted
Diluted Shares Outstanding is defined as average diluted shares
outstanding adjusted for the effect of dilutive share-based awards.
Adjusted EPS is defined as Adjusted Net income per Adjusted Diluted
Shares Outstanding. Adjusted Net Income, Adjusted Diluted Shares
Outstanding and Adjusted EPS are not measures determined in
accordance with GAAP and may not be comparable with the measures
used by other companies. Nevertheless, Columbus McKinnon believes that providing
non-GAAP financial measures, such as Adjusted Net Income, Adjusted
Diluted Shares Outstanding and Adjusted EPS, are important for
investors and other readers of the Company's financial statements
and assists in understanding the comparison of current periods' net
income (loss), average diluted shares outstanding and GAAP EPS to
the historical periods' net income (loss), average diluted shares
outstanding and GAAP EPS, as well as facilitates a more meaningful
comparison of the Company's net income (loss) and GAAP EPS to that
of other companies. The Company believes that presenting
Adjusted Net Income, Adjusted Diluted Shares Outstanding and
Adjusted EPS provides a better understanding of its earnings power
inclusive of adjusting for the non-cash amortization of intangible
assets, reflecting the Company's strategy to grow through
acquisitions as well as organically.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Net Income to Adjusted EBITDA
($ in
thousands)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net income
(loss)
|
$
3,960
|
|
$
9,728
|
|
$
(2,454)
|
|
$
34,816
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
1,929
|
|
3,911
|
|
442
|
|
12,405
|
|
Interest and debt
expense
|
7,698
|
|
9,952
|
|
24,285
|
|
28,788
|
|
Investment (income)
loss
|
(54)
|
|
(758)
|
|
(873)
|
|
(1,212)
|
|
Foreign currency
exchange (gain) loss
|
3,128
|
|
(1,155)
|
|
2,730
|
|
1,074
|
|
Other (income)
expense, net
|
1,029
|
|
5,234
|
|
25,512
|
|
5,840
|
|
Depreciation and
amortization expense
|
12,202
|
|
11,570
|
|
36,230
|
|
34,052
|
|
Acquisition deal and
integration costs
|
—
|
|
113
|
|
—
|
|
3,208
|
|
Business realignment
costs
|
987
|
|
1,452
|
|
2,118
|
|
1,867
|
|
Factory and warehouse
consolidation costs
|
653
|
|
—
|
|
12,557
|
|
199
|
|
Headquarter relocation
costs
|
175
|
|
510
|
|
322
|
|
1,884
|
|
Hurricane Helene cost
impact
|
—
|
|
—
|
|
171
|
|
—
|
|
Mexico customs duty
assessment
|
1,500
|
|
—
|
|
1,500
|
|
—
|
|
Customer bad
debt1
|
1,299
|
|
—
|
|
1,299
|
|
—
|
|
Monterrey, MX new
factory start-up costs
|
3,270
|
|
755
|
|
10,587
|
|
755
|
|
Adjusted
EBITDA
|
$
37,776
|
|
$
41,312
|
|
$ 114,426
|
|
$ 123,676
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 234,138
|
|
$ 254,143
|
|
$ 716,138
|
|
$ 748,036
|
|
|
|
|
|
|
|
|
|
Net income
margin
|
1.7 %
|
|
3.8 %
|
|
(0.3) %
|
|
4.7 %
|
|
Adjusted EBITDA
Margin
|
16.1 %
|
|
16.3 %
|
|
16.0 %
|
|
16.5 %
|
|
|
|
1
|
Customer bad debt
represents a reserve of $1,299,000 against an accounts receivable
balance for a customer who declared bankruptcy in January of
2025
|
Adjusted EBITDA is defined as net income (loss) before interest
expense, income taxes, depreciation, amortization, and other
adjustments. Adjusted EBITDA Margin is defined as Adjusted
EBITDA divided by net sales. Adjusted EBITDA and Adjusted
EBITDA Margin are not a measures determined in accordance with GAAP
and may not be comparable with Adjusted EBITDA and Adjusted EBITDA
Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing
non-GAAP financial measures, such as Adjusted EBITDA and Adjusted
EBITDA Margin, are important for investors and other readers of the
Company's financial statements.
|
COLUMBUS McKINNON
CORPORATION
Reconciliation of
Net Leverage Ratio
($ in
thousands)
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net income
(loss)
|
|
$
9,355
|
|
$
48,711
|
|
Add back
(deduct):
|
|
|
|
|
|
Annualize EBITDA for
the montratec acquisition1
|
|
—
|
|
2,131
|
|
Annualize synergies
for the montratec acquisition1
|
|
—
|
|
184
|
|
Income tax expense
(benefit)
|
|
2,939
|
|
19,904
|
|
Interest and debt
expense
|
|
33,454
|
|
36,456
|
|
Non-cash pension
settlement
|
|
24,019
|
|
4,599
|
|
Amortization of
deferred financing costs
|
|
2,486
|
|
2,158
|
|
Stock Compensation
Expense
|
|
10,243
|
|
11,859
|
|
Depreciation and
amortization expense
|
|
48,124
|
|
44,619
|
|
Cost of debt
refinancing
|
|
1,190
|
|
—
|
|
Acquisition deal and
integration costs
|
|
3
|
|
3,381
|
|
Excluded acquisition
deal and integration costs2
|
|
—
|
|
(172)
|
|
Acquisition inventory
step-up expense
|
|
—
|
|
—
|
|
Business realignment
costs
|
|
2,118
|
|
2,715
|
|
Monterrey, MX new
factory start up costs
|
|
14,321
|
|
755
|
|
Excluded Monterrey, MX
new factory start-up costs3
|
|
(7,461)
|
|
—
|
|
Factory and warehouse
consolidation costs
|
|
13,102
|
|
199
|
|
Headquarter relocation
costs
|
|
497
|
|
2,565
|
|
Mexico customs duty
assessment
|
|
1,500
|
|
—
|
|
Customer bad
debt4
|
|
1,299
|
|
—
|
|
Hurricane Helene cost
impact
|
|
171
|
|
—
|
|
Other excluded
costs3
|
|
(4,257)
|
|
(848)
|
|
Credit Agreement
Trailing Twelve Month Adjusted EBITDA
|
|
$
153,103
|
|
$
179,216
|
|
|
|
|
|
|
Current portion of
long-term debt and finance lease obligations
|
|
$
50,722
|
|
$
50,652
|
|
Term loan, AR
securitization facility and finance lease obligations
|
|
435,075
|
|
499,388
|
|
Total debt
|
|
$
485,797
|
|
$
550,040
|
|
Standby Letters of
Credit
|
|
15,440
|
|
15,740
|
|
Cash and cash
equivalents
|
|
(41,224)
|
|
(102,945)
|
|
Net Debt
|
|
$
460,013
|
|
$
462,835
|
|
|
|
|
|
|
Net Leverage
Ratio
|
|
3.00x
|
|
2.58x
|
|
|
|
1
|
EBITDA is normalized to
include a full year of the acquired entity and assumes all cost
synergies are achieved in TTM Q3 FY24.
|
|
2
|
The Company's credit
agreement definition of Adjusted EBITDA excludes certain
acquisition deal and integration costs and business realignment
costs that are incurred beyond one year after the close of an
acquisition.
|
|
3
|
The Company's credit
agreement definition of Adjusted EBITDA excludes any cash
restructuring costs in excess of $10 million per fiscal
year
|
|
4
|
Customer bad debt
represents a reserve of $1,299,000 against an accounts receivable
balance for a customer who declared bankruptcy in January of
2025
|
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 in the Company's
credit agreement 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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SOURCE Columbus McKinnon Corporation
