Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
BUFFALO, NY, January 27, 2022 - Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2022 third quarter, which ended December 31, 2021. Results include the additions of Dorner Manufacturing Corporation and Garvey Corporation, which were acquired on April 7, 2021 and December 1, 2021, respectively.
Third Quarter Highlights (compared with prior year period)
•Advancing Columbus McKinnon’s transformation to intelligent motion solutions for material handling
•Garvey acquisition enhances precision conveyance platform with leading accumulation systems
•Sales grew 30% from acquisitions, strong organic volume and improved pricing
•Orders up 14% year-over-year excluding acquisitions; strong demand across end markets; Backlog at quarter end was record $295 million
•Gross margin was 34.7%; adjusted gross margin of 36.7% matched record set in second quarter
•Solid cash generation while building inventory to address strong demand amidst supply chain constraints
David Wilson, President and CEO of Columbus McKinnon, commented, “We believe our strong results in the quarter reflect our successful execution of the Blueprint for Growth 2.0 strategy as we advance the transformation of Columbus McKinnon. The acquisition of Garvey Corporation completed in December 2021 was an excellent example of an ideal bolt-on acquisition that expands our precision conveyance capabilities and deepens our reach into the fast growing and less cyclical food & beverage and pharmaceutical industries. In addition, strong volume and productivity, combined with pricing that more than offset material inflation, delivered record third quarter gross margin. We are successfully navigating a dynamic and challenging environment and delivering solid results while experiencing strong demand across the business. As a result, we are entering our fiscal fourth quarter with record backlog.”
He added, “As a global expert in floor-to-ceiling intelligent motion solutions for material handling, we see our solutions as uniquely positioned to drive value in this global economy. Our solutions are enabling our customers in e-commerce, food & beverage, life sciences, aerospace and automotive to address some of the most pressing issues that they are facing today. We are providing critical support for vaccine deliveries, e-commerce expansion, supply chain rebalancing, labor shortages, capacity expansion and modernization.”
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 2 of 13
January 27, 2022
Third Quarter Fiscal 2022 Sales
($ in millions)
Q3 FY 22
Q3 FY 21
Change
% Change
Net sales
$
216.1
$
166.5
$
49.5
29.7
%
U.S. sales
$
128.7
$
87.6
$
41.1
46.9
%
% of total
60
%
53
%
Non-U.S. sales
$
87.4
$
78.9
$
8.5
10.8
%
% of total
40
%
47
%
For the quarter, sales increased $49.5 million, or 29.7%. Acquisitions added $36.4 million in sales. In the U.S., volume improved $6.5 million, or 7.5%, and price improved $3.2 million, or 3.6%. U.S. sales related to acquisitions were $31.4 million. Outside the U.S., volume improved $2.4 million, or 3.1%, and price improved $2.5 million, or 3.1%. This more than offset unfavorable foreign currency translation of $1.5 million, or 0.9% of total sales. Acquisitions added $5.0 million of sales outside the U.S.
Third Quarter Fiscal 2022 Operating Results
($ in millions)
Q3 FY 22
Q3 FY 21
Change
% Change
Gross profit
$
75.1
$
55.3
$
19.7
35.7
%
Gross margin
34.7
%
33.2
%
150 bps
Income from operations
$
15.3
$
10.4
$
4.9
46.6
%
Operating margin
7.1
%
6.3
%
80 bps
Adjusted income from operations*
$
20.5
$
11.2
$
9.3
83.5
%
Adjusted operating margin*
9.5
%
6.7
%
280 bps
Net income (loss)
$
9.9
$
6.6
$
3.3
50.0
%
Net income (loss) margin
4.6
%
4.0
%
60 bps
Diluted EPS
$
0.34
$
0.27
$
0.07
25.9
%
Adjusted EPS*
$
0.60
$
0.36
$
0.24
66.7
%
Adjusted EBITDA*
$
30.7
$
18.1
$
12.6
69.4
%
Adjusted EBITDA margin*
14.2
%
10.9
%
330 bps
*Adjusted operating income, adjusted operating margin, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding adjusted operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.
Acquisitions added $6.8 million in adjusted operating income. Adjusted earnings per diluted share were $0.60 in the fiscal 2022 third quarter compared with $0.36 in the prior year. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.
Fourth Quarter Fiscal 2022 Outlook
Columbus McKinnon expects fourth quarter fiscal 2022 sales of approximately $235 million at current exchange rates. Mr. Wilson commented, “We have had great momentum throughout fiscal 2022 and expect to end on a strong note. As we look beyond this fiscal year, we are greatly encouraged with the progress we are making as an organization as we focus on faster growing markets, enhance our capabilities with new technologies and build a world-class organization that will be central to the automation of material handling around the world.”
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 3 of 13
January 27, 2022
Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which management will review the Company’s financial results and strategy. The review will be accompanied by a slide presentation, which will be available on Columbus McKinnon’s website at investors.columbusmckinnon.com. A question-and-answer session will follow the formal discussion.
The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13725924. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, February 3. Alternatively, an archived webcast of the call can be found on the Company’s website. In addition, a transcript of the call will be posted to the website once available.
About Columbus McKinnon
Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company’s ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the forward-looking information contained in this release.
Contacts:
Gregory P. Rustowicz
Investor Relations:
Senior Vice President - Finance and Chief Financial Officer
Deborah K. Pawlowski
Columbus McKinnon Corporation
Kei Advisors LLC
716-689-5442
716-843-3908
greg.rustowicz@cmworks.com
dpawlowski@keiadvisors.com
Financial tables follow.
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 4 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Three Months Ended
December 31, 2021
December 31, 2020
Change
Net sales
$
216,088
$
166,547
29.7
%
Cost of products sold
141,031
111,232
26.8
%
Gross profit
75,057
55,315
35.7
%
Gross profit margin
34.7
%
33.2
%
Selling expenses
24,468
18,829
29.9
%
% of net sales
11.3
%
11.3
%
General and administrative expenses
25,144
19,859
26.6
%
% of net sales
11.6
%
11.9
%
Research and development expenses
3,875
3,038
27.6
%
% of net sales
1.8
%
1.8
%
Amortization of intangibles
6,254
3,142
99.0
%
Income from operations
15,316
10,447
46.6
%
Operating margin
7.1
%
6.3
%
Interest and debt expense
4,375
2,986
46.5
%
Investment (income) loss
(76)
(495)
(84.6)
%
Foreign currency exchange (gain) loss
512
602
(15.0)
%
Other (income) expense, net
(455)
144
NM
Income (loss) before income tax expense (benefit)
10,960
7,210
52.0
%
Income tax expense (benefit)
1,066
616
73.1
%
Net income (loss)
$
9,894
$
6,594
50.0
%
Average basic shares outstanding
28,469
23,928
19.0
%
Basic income (loss) per share
$
0.35
$
0.28
25.0
%
Average diluted shares outstanding
28,840
24,201
19.2
%
Diluted income (loss) per share
$
0.34
$
0.27
25.9
%
Dividends declared per common share
$
0.06
$
0.06
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 5 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Nine Months Ended
December 31, 2021
December 31, 2020
Change
Net sales
$
653,187
$
463,407
41.0
%
Cost of products sold
422,932
307,270
37.6
%
Gross profit
230,255
156,137
47.5
%
Gross profit margin
35.3
%
33.7
%
Selling expenses
72,107
56,087
28.6
%
% of net sales
11.0
%
12.1
%
General and administrative expenses
78,495
53,842
45.8
%
% of net sales
12.0
%
11.6
%
Research and development expenses
11,283
8,703
29.6
%
% of net sales
1.7
%
1.9
%
Amortization of intangibles
18,648
9,449
97.4
%
Income from operations
49,722
28,056
77.2
%
Operating margin
7.6
%
6.1
%
Interest and debt expense
14,774
9,192
60.7
%
Cost of debt refinancing
14,803
—
NM
Investment (income) loss
(624)
(1,429)
(56.3)
%
Foreign currency exchange (gain) loss
1,047
1,083
(3.3)
%
Other (income) expense, net
(744)
20,081
NM
Income (loss) before income tax expense (benefit)
20,466
(871)
NM
Income tax expense (benefit)
2,632
(392)
NM
Net income (loss)
$
17,834
$
(479)
NM
Average basic shares outstanding
27,887
23,871
16.8
%
Basic income (loss) per share
$
0.64
$
(0.02)
NM
Average diluted shares outstanding
28,255
23,871
18.4
%
Diluted income (loss) per share
$
0.63
$
(0.02)
NM
Dividends declared per common share
$
0.12
$
0.12
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 6 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
December 31, 2021
March 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
106,699
$
202,127
Trade accounts receivable
125,879
105,464
Inventories
175,099
111,488
Prepaid expenses and other
33,449
22,763
Total current assets
441,126
441,842
Property, plant, and equipment, net
98,219
74,753
Goodwill
657,084
331,176
Other intangibles, net
400,560
213,362
Marketable securities
11,099
7,968
Deferred taxes on income
2,138
20,080
Other assets
61,247
61,251
Total assets
$
1,671,473
$
1,150,432
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable
$
74,061
$
68,593
Accrued liabilities
116,410
110,816
Current portion of long-term debt and finance lease obligations
40,530
4,450
Total current liabilities
231,001
183,859
Term loan and finance lease obligations
480,589
244,504
Other non-current liabilities
214,248
191,920
Total liabilities
925,838
620,283
Shareholders’ equity:
Common stock
285
240
Additional paid-in capital
503,701
296,093
Retained earnings
308,223
293,802
Accumulated other comprehensive loss
(66,574)
(59,986)
Total shareholders’ equity
745,635
530,149
Total liabilities and shareholders’ equity
$
1,671,473
$
1,150,432
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 7 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
Nine Months Ended
December 31, 2021
December 31, 2020
Operating activities:
Net income (loss)
$
17,834
$
(479)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization
31,245
21,203
Deferred income taxes and related valuation allowance
(1,940)
(7,344)
Net loss (gain) on sale of real estate, investments, and other
(390)
(1,262)
Stock based compensation
8,485
5,840
Amortization of deferred financing costs
1,274
1,986
Cost of debt refinancing
14,803
—
Loss (gain) on hedging instruments
682
—
Non-cash pension settlement expense
—
18,933
Gain on sale of building
(375)
(2,638)
Non-cash lease expense
5,936
5,721
Changes in operating assets and liabilities, net of effects of business acquisitions:
Trade accounts receivable
3,931
34,254
Inventories
(42,215)
20,786
Prepaid expenses and other
(5,544)
(1,564)
Other assets
(298)
545
Trade accounts payable
(4,229)
(8,764)
Accrued liabilities
2,608
(9,922)
Non-current liabilities
(8,080)
(5,347)
Net cash provided by (used for) operating activities
23,727
71,948
Investing activities:
Proceeds from sales of marketable securities
3,441
4,231
Purchases of marketable securities
(6,357)
(4,067)
Capital expenditures
(9,506)
(5,904)
Proceeds from sale of building, net of transaction costs
461
5,453
Proceeds from insurance reimbursement
482
100
Purchases of businesses, net of cash acquired
(539,778)
—
Dividend received from equity method investment
324
587
Proceeds from sale of fixed assets
—
446
Net cash provided by (used for) investing activities
(550,933)
846
Financing activities:
Proceeds from issuance of common stock
2,520
1,828
Borrowings under line-of-credit agreements
—
25,000
Payments under line-of-credit agreements
—
(25,000)
Repayment of debt
(467,725)
(3,338)
Proceeds from issuance of long-term debt
725,000
—
Proceeds from equity offering
207,000
—
Fees related to debt and equity offering
(26,184)
—
Cash inflows from hedging activities
13,234
—
Cash outflows from hedging activities
(13,687)
—
Fees paid for revolver extension
—
(826)
Payment of dividends
(4,852)
(4,294)
Other
(2,054)
(1,050)
Net cash provided by (used for) financing activities
433,252
(7,680)
Effect of exchange rate changes on cash
(1,474)
8,062
Net change in cash and cash equivalents
(95,428)
73,176
Cash, cash equivalents, and restricted cash at beginning of year
202,377
114,700
Cash, cash equivalents, and restricted cash at end of period
$
106,949
$
187,876
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 8 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Q3 FY 2022 Sales Bridge
Quarter
Year To Date
($ in millions)
$ Change
% Change
$ Change
% Change
Fiscal 2021 Sales
$
166.5
$
463.4
Acquisitions
36.4
21.8
%
104.1
22.5
%
Volume
9.1
5.4
%
66.7
14.4
%
Pricing
5.6
3.4
%
11.6
2.5
%
Foreign currency translation
(1.5)
(0.9)
%
7.4
1.6
%
Total change
$
49.6
29.7
%
$
189.8
41.0
%
Fiscal 2022 Sales
$
216.1
$
653.2
COLUMBUS McKINNON CORPORATION
Q3 FY 2022 Gross Profit Bridge
($ in millions)
Quarter
Year To Date
Fiscal 2021 Gross Profit
$
55.3
$
156.1
Acquisitions
16.7
44.0
Sales volume and mix
3.2
23.1
Productivity, net of other cost changes
3.6
11.9
Price, net of material cost inflation
1.4
3.0
Prior year factory closure costs
0.3
2.7
Foreign currency translation
(0.5)
2.4
Prior year business realignment costs
0.2
0.6
Acquisition integration costs
—
(0.5)
Acquisition amortization of backlog
(0.5)
(0.5)
Business realignment costs
(0.7)
(1.6)
Prior year gain on sale of building
—
(2.2)
Tariffs
(0.4)
(2.2)
Product liability
(3.0)
(3.0)
Acquisition inventory step-up expense
(0.5)
(3.5)
Total change
19.8
74.2
Fiscal 2022 Gross Profit
$
75.1
$
230.3
U.S. Shipping Days by Quarter
Q1
Q2
Q3
Q4
Total
FY 22
63
64
61
63
251
FY 21
63
64
61
63
251
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 9 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
December 31, 2021
September 30, 2021
March 31, 2021
December 31, 2020
($ in millions)
Backlog
$
294.7
$
255.6
$
171.7
$
152.4
Long-term backlog
Expected to ship beyond 3 months
$
116.3
$
110.5
$
68.0
$
62.1
Long-term backlog as % of total backlog
39.5
%
43.2
%
39.6
%
40.7
%
Trade accounts receivable
Days sales outstanding (3)
50.6
days
51.0
days
51.5
days
51.5
days
Inventory turns per year (3)
(based on cost of products sold)
3.3
turns
3.9
turns
4.4
turns
3.9
turns
Days' inventory (3)
111.4
days
94.7
days
83.3
days
93.1
days
Trade accounts payable
Days payables outstanding (3)
56.9
days
54.3
days
58.7
days
46.6
days
Working capital as a % of sales (2)
15.2
%
14.4
%
9.3
%
13.3
%
Net cash provided by (used for) operating activities
$
5.8
$
25.3
$
26.9
$
25.0
Capital expenditures
$
2.8
$
3.1
$
6.4
$
3.1
Free cash flow (1)
$
3.0
$
22.2
$
20.5
$
21.9
Debt to total capitalization percentage
41.1
%
38.1
%
32.0
%
33.4
%
Debt, net of cash, to net total capitalization
35.7
%
32.1
%
8.1
%
11.1
%
(1) Free cash flow is defined as cash from operations less capital expenditures. Free cash flow is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as free cash flow, is important for investors and other readers of the Company’s financial statements.
Components may not add due to rounding.
(2) December 31, 2021 and September 30, 2021 figures exclude the impact of the acquisitions of Dorner and Garvey.
(3) December 31, 2021 figures exclude the impact of the acquisition of Garvey.
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 10 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
Three Months Ended December 31,
Nine Months Ended December 31,
2021
2020
2021
2020
GAAP gross profit
$
75,057
$
55,315
$
230,255
$
156,137
Add back (deduct):
Acquisition inventory step-up expense
515
—
3,496
—
Product liability settlement
2,850
—
2,850
—
Business realignment costs
692
237
1,606
566
Acquisition integration costs
—
—
521
—
Acquisition amortization of backlog
450
—
450
—
Factory closures
—
250
—
2,671
Gain on sale of building
—
—
—
(2,189)
Non-GAAP adjusted gross profit
$
79,564
$
55,802
$
239,178
$
157,185
Sales
$
216,088
$
166,547
$
653,187
$
463,407
Add back:
Acquisition amortization of backlog
450
—
450
—
Non-GAAP sales
$
216,538
$
166,547
$
653,637
$
463,407
Gross margin - GAAP
34.7
%
33.2
%
35.3
%
33.7
%
Adjusted gross margin - Non-GAAP
36.7
%
33.5
%
36.6
%
33.9
%
Adjusted gross profit is defined as gross profit as reported, adjusted for certain items. Adjusted gross profit is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted gross profit, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's gross profit to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit to that of other companies.
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 11 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations
($ in thousands, except per share data)
Three Months Ended December 31,
Nine Months Ended December 31,
2021
2020
2021
2020
GAAP income from operations
$
15,316
$
10,447
$
49,722
$
28,056
Add back (deduct):
Acquisition deal and integration costs
370
—
10,244
—
Acquisition inventory step-up expense
515
—
3,496
—
Product liability settlement
2,850
—
2,850
—
Business realignment costs
964
237
2,787
1,058
Acquisition amortization of backlog
450
—
450
—
Factory closures
—
469
—
3,472
Insurance recovery legal costs
—
—
—
229
Gain on sale of building
—
—
—
(2,638)
Non-GAAP adjusted income from operations
$
20,465
$
11,153
$
69,549
$
30,177
Sales
$
216,088
$
166,547
$
653,187
$
463,407
Add back:
Acquisition amortization of backlog
450
—
450
—
Non-GAAP sales
$
216,538
$
166,547
$
653,637
$
463,407
Operating margin - GAAP
7.1
%
6.3
%
7.6
%
6.1
%
Adjusted operating margin - Non-GAAP
9.5
%
6.7
%
10.6
%
6.5
%
Adjusted income from operations is defined as income from operations as reported, adjusted for certain items. Adjusted income from operations is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted income from operations, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's income from operations to the historical periods' income from operations, as well as facilitates a more meaningful comparison of the Company’s income from operations to that of other companies.
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 12 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Diluted Earnings per Share
($ in thousands, except per share data)
Three Months Ended December 31,
Nine Months Ended December 31,
2021
2020
2021
2020
GAAP net income (loss)
$
9,894
$
6,594
$
17,834
$
(479)
Add back (deduct):
Amortization of intangibles
6,254
3,142
18,648
9,449
Cost of debt refinancing
—
—
14,803
—
Acquisition deal and integration costs
370
—
10,244
—
Acquisition inventory step-up expense
515
—
3,496
—
Product liability settlement
2,850
—
2,850
—
Business realignment costs
964
237
2,787
1,058
Acquisition amortization of backlog
450
—
450
—
Non-cash pension settlement expense
—
—
—
19,046
Factory closures
—
469
—
3,472
Insurance recovery legal costs
—
—
—
229
Gain on sale of building
—
—
—
(2,638)
Normalize tax rate to 22% (1)
(3,854)
(1,817)
(13,592)
(6,936)
Non-GAAP adjusted net income
$
17,443
$
8,625
$
57,520
$
23,201
Average diluted shares outstanding
28,840
24,201
28,255
24,088
Diluted income (loss) per share - GAAP
$
0.34
$
0.27
$
0.63
$
(0.02)
Diluted income per share - Non-GAAP
$
0.60
$
0.36
$
2.04
$
0.96
(1) Applies a normalized tax rate of 22% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangible assets, and also adjusted for a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted net income and diluted EPS, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's 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 representing 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 Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 13 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
Three Months Ended December 31,
Nine Months Ended December 31,
2021
2020
2021
2020
GAAP net income (loss)
$
9,894
$
6,594
$
17,834
$
(479)
Add back (deduct):
Income tax expense (benefit)
1,066
616
2,632
(392)
Interest and debt expense
4,375
2,986
14,774
9,192
Investment (income) loss
(76)
(495)
(624)
(1,429)
Foreign currency exchange (gain) loss
512
602
1,047
1,083
Other (income) expense, net
(455)
144
(744)
20,081
Depreciation and amortization expense
10,276
6,993
31,245
21,203
Cost of debt refinancing
—
—
14,803
—
Acquisition deal and integration costs
370
—
10,244
—
Acquisition inventory step-up expense
515
—
3,496
—
Product liability settlement
2,850
—
2,850
—
Business realignment costs
964
237
2,787
1,058
Acquisition amortization of backlog
450
—
450
—
Factory closures
—
469
—
3,472
Insurance recovery legal costs
—
—
—
229
Gain on sale of building
—
—
—
(2,638)
Non-GAAP adjusted EBITDA
$
30,741
$
18,146
$
100,794
$
51,380
Sales
$
216,088
$
166,547
$
653,187
$
463,407
Add back:
Acquisition amortization of backlog
450
—
450
—
Non-GAAP sales
$
216,538
$
166,547
$
653,637
$
463,407
Net income (loss) margin - GAAP
4.6
%
4.0
%
2.7
%
(0.1)
%
Adjusted EBITDA margin - Non-GAAP
14.2
%
10.9
%
15.4
%
11.1
%
Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted EBITDA, is important for investors and other readers of the Company’s financial statements.
