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BUFFALO, N.Y.--(BUSINESS WIRE)-- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion control products, technologies and services for material handling, today announced financial results for its fiscal year 2021 third quarter, which ended December 31, 2020.
Third Quarter Highlights
David Wilson, President and CEO of Columbus McKinnon, commented, “We delivered solid results in adverse conditions with revenue exceeding our expectations. Of note, our ability to generate cash was demonstrated with free cash flow2 of $22 million. We are excited about what the future holds even as we continue to operate in a less than ideal external environment. We are optimistic that growth will accelerate in fiscal 2022 as demand improves and channel partners replenish inventories. Given current macroeconomic forecasts, we expect to return to more normalized revenue levels by this time next year. In the meantime, we are consistently strengthening our earnings power by driving operational excellence with tools such as 80/20. In fact, we have realized $9 million in contributions to operating income from these efforts this fiscal year.”
He continued, “Even as we have been navigating this complex environment, we are evolving our strategy, now defined as Blueprint for Growth 2.0. The Core Growth Framework we are creating is underpinned by the advancement of CMBS, which develops core competencies and enables us to scale. Our organic growth initiatives, which include improvements in customer experience, new product development, and channel expansion, are centered on our customers’ requirements for continuous improvement in productivity, safety and uptime. We are realizing success with our product launches and believe we are enhancing our competitive position in our markets. We are also actively working our acquisition pipeline and see the potential to expand our reach into growth markets by building on our expertise in intelligent motion for material handling.”
1 Adjusted operating income is a non-GAAP measure. See the accompanying discussion and reconciliation table in this release regarding adjusted operating income. 2 Free cash flow is a non-GAAP measure defined as cash from operations less capital expenditures. See the accompanying discussion and reconciliation found in the Additional Data table in this release.
Third Quarter Fiscal 2021 Sales
($ in millions) | Q3 FY 21 |
| Q3 FY 20 |
| Change |
| % Change | |||||||
Net sales | $ | 166.5 |
|
| $ | 199.4 |
|
| $ | (32.9) |
|
| (16.5) | % |
U.S. sales | $ | 87.6 |
|
| $ | 108.4 |
|
| $ | (20.8) |
|
| (19.2) | % |
% of total | 53 | % |
| 54 | % |
|
|
|
| |||||
Non-U.S. sales | $ | 78.9 |
|
| $ | 91.0 |
|
| $ | (12.1) |
|
| (13.3) | % |
% of total | 47 | % |
| 46 | % |
|
|
|
| |||||
Compared with the prior-year period, lower volume reflects the global economic impact of the COVID-19 pandemic. A 0.8% price improvement in the U.S. modestly helped to offset volume declines. Outside the U.S., a $3.0 million, or 3.3%, positive impact from foreign currency translation and price improvement of 1.1% partially offset lower volumes.
Compared with the trailing second quarter, sales improved 5.5% with short cycle sales up 5.6% and project sales up 5.5%.
Third Quarter Fiscal 2021 Operating Results
($ in millions) | Q3 FY 21 |
| Q3 FY 20 |
| Change |
| % Change | |||||||
Gross profit | $ | 55.3 |
|
| $ | 67.9 |
|
| $ | (12.6) |
|
| (18.5) | % |
Gross margin | 33.2 | % |
| 34.0 | % |
| (80) bps |
|
| |||||
Income from operations | $ | 10.4 |
|
| $ | 20.9 |
|
| $ | (10.4) |
|
| (50.0) | % |
Operating margin | 6.3 | % |
| 10.5 | % |
| (420) bps |
|
| |||||
Adjusted income from operations* | $ | 11.2 |
|
| $ | 23.1 |
|
| $ | (12.0) |
|
| (51.8) | % |
Adjusted operating margin* | 6.7 | % |
| 11.6 | % |
| (490) bps |
|
| |||||
Net income (loss) | $ | 6.6 |
|
| $ | 15.3 |
|
| $ | (8.7) |
|
| (56.8) | % |
Diluted EPS | $ | 0.27 |
|
| $ | 0.63 |
|
| $ | (0.36) |
|
| (57.1) | % |
Net income margin | 4.0 | % |
| 7.6 | % |
| (360) bps |
|
| |||||
Adjusted EBITDA* | $ | 18.1 |
|
| $ | 30.4 |
|
| $ | (12.2) |
|
| (40.3) | % |
Adjusted EBITDA margin* | 10.9 | % |
| 15.2 | % |
| (430) bps |
|
| |||||
*Adjusted operating income, adjusted operating margin as well as adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization. See accompanying discussion and reconciliation tables in this release regarding adjusted operating income and adjusted operating margin as well as a reconciliation of adjusted EBITDA to GAAP net income (loss).
Fourth Quarter Fiscal 2021 Outlook
The Company expects fourth quarter fiscal 2021 sales to be within a range of approximately $175 million to $180 million at current exchange rates.
Mr. Wilson concluded, “We are encouraged by early indications of an improving landscape and energized with the evolution of our strategy. We have many strengths to leverage as we shift our strategic lens to be more outside-in focused. Importantly, we have identified that there is significant potential to strengthen, grow, expand and even to reimagine our core. We look forward to providing an update on Blueprint for Growth 2.0 in the first quarter of fiscal 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 https://investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13714791. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, February 4, 2021. 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 control products, technologies, systems and services that efficiently and ergonomically move, lift, position and secure materials. Key products include hoists, actuators, 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 Covid-19 and the Company’s efforts to reduce costs, maintain liquidity and generate cash in the current pandemic, the effectiveness of the Company’s 80/20 Process to simplify operations, the ability of the Company’s Operational Excellence initiatives to drive profitability, the Company’s ability to grow market share, the ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting 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.
Financial tables follow.
COLUMBUS McKINNON CORPORATION | |||||||||||
Condensed Consolidated Income Statements - UNAUDITED | |||||||||||
(In thousands, except per share and percentage data) | |||||||||||
|
| Three Months Ended |
|
| |||||||
|
| December 31, 2020 |
| December 31, 2019 |
| Change | |||||
Net sales |
| $ | 166,547 |
|
| $ | 199,355 |
|
| (16.5) | % |
Cost of products sold |
| 111,232 |
|
| 131,483 |
|
| (15.4) | % | ||
Gross profit |
| 55,315 |
|
| 67,872 |
|
| (18.5) | % | ||
Gross profit margin |
| 33.2 | % |
| 34.0 | % |
|
| |||
Selling expenses |
| 18,829 |
|
| 23,169 |
|
| (18.7) | % | ||
% of net sales |
| 11.3 | % |
| 11.6 | % |
|
| |||
General and administrative expenses |
| 19,859 |
|
| 17,960 |
|
| 10.6 | % | ||
% of net sales |
| 11.9 | % |
| 9.0 | % |
|
| |||
Research and development expenses |
| 3,038 |
|
| 2,628 |
|
| 15.6 | % | ||
% of net sales |
| 1.8 | % |
| 1.3 | % |
|
| |||
Amortization of intangibles |
| 3,142 |
|
| 3,229 |
|
| (2.7) | % | ||
Income from operations |
| 10,447 |
|
| 20,886 |
|
| (50.0) | % | ||
Operating margin |
| 6.3 | % |
| 10.5 | % |
|
| |||
Interest and debt expense |
| 2,986 |
|
| 3,423 |
|
| (12.8) | % | ||
Investment (income) loss |
| (495) |
|
| (408) |
|
| 21.3 | % | ||
Foreign currency exchange (gain) loss |
| 602 |
|
| 188 |
|
| 220.2 | % | ||
Other (income) expense, net |
| 144 |
|
| 199 |
|
| (27.6) | % | ||
Income (loss) before income tax expense (benefit) |
| 7,210 |
|
| 17,484 |
|
| (58.8) | % | ||
Income tax expense (benefit) |
| 616 |
|
| 2,234 |
|
| (72.4) | % | ||
Net income (loss) |
| $ | 6,594 |
|
| $ | 15,250 |
|
| (56.8) | % |
|
|
|
|
|
|
| |||||
Average basic shares outstanding |
| 23,928 |
|
| 23,679 |
|
| 1.1 | % | ||
Basic income (loss) per share |
| $ | 0.28 |
|
| $ | 0.64 |
|
| (56.3) | % |
|
|
|
|
|
|
| |||||
Average diluted shares outstanding |
| 24,201 |
|
| 24,031 |
|
| 0.7 | % | ||
Diluted income (loss) per share |
| $ | 0.27 |
|
| $ | 0.63 |
|
| (57.1) | % |
|
|
|
|
|
|
| |||||
Dividends declared per common share |
| $ | 0.06 |
|
| $ | 0.06 |
|
|
| |
COLUMBUS McKINNON CORPORATION | |||||||||||
Condensed Consolidated Income Statements - UNAUDITED | |||||||||||
(In thousands, except per share and percentage data) | |||||||||||
|
| Nine Months Ended |
|
| |||||||
|
| December 31, 2020 |
| December 31, 2019 |
| Change | |||||
Net sales |
| $ | 463,407 |
|
| $ | 619,676 |
|
| (25.2) | % |
Cost of products sold |
| 307,270 |
|
| 402,699 |
|
| (23.7) | % | ||
Gross profit |
| 156,137 |
|
| 216,977 |
|
| (28.0) | % | ||
Gross profit margin |
| 33.7 | % |
| 35.0 | % |
|
| |||
Selling expenses |
| 56,087 |
|
| 68,801 |
|
| (18.5) | % | ||
% of net sales |
| 12.1 | % |
| 11.1 | % |
|
| |||
General and administrative expenses |
| 53,842 |
|
| 56,713 |
|
| (5.1) | % | ||
% of net sales |
| 11.6 | % |
| 9.2 | % |
|
| |||
Research and development expenses |
| 8,703 |
|
| 8,419 |
|
| 3.4 | % | ||
% of net sales |
| 1.9 | % |
| 1.4 | % |
|
| |||
Loss on sales of businesses |
| — |
|
| 176 |
|
| NM | |||
Amortization of intangibles |
| 9,449 |
|
| 9,708 |
|
| (2.7) | % | ||
Income from operations |
| 28,056 |
|
| 73,160 |
|
| (61.7) | % | ||
Operating margin |
| 6.1 | % |
| 11.8 | % |
|
| |||
Interest and debt expense |
| 9,192 |
|
| 11,034 |
|
| (16.7) | % | ||
Investment (income) loss |
| (1,429) |
|
| (939) |
|
| 52.2 | % | ||
Foreign currency exchange (gain) loss |
| 1,083 |
|
| (518) |
|
| NM | |||
Other (income) expense, net |
| 20,081 |
|
| 618 |
|
| 3,149.4 | % | ||
Income (loss) before income tax expense (benefit) |
| (871) |
|
| 62,965 |
|
| NM | |||
Income tax expense (benefit) |
| (392) |
|
| 12,537 |
|
| NM | |||
Net income (loss) |
| $ | (479) |
|
| $ | 50,428 |
|
| NM | |
|
|
|
|
|
|
| |||||
Average basic shares outstanding |
| 23,871 |
|
| 23,581 |
|
| 1.2 | % | ||
Basic income (loss) per share |
| $ | (0.02) |
|
| $ | 2.14 |
|
| NM | |
|
|
|
|
|
|
| |||||
Average diluted shares outstanding |
| 23,871 |
|
| 23,925 |
|
| (0.2) | % | ||
Diluted income (loss) per share |
| $ | (0.02) |
|
| $ | 2.11 |
|
| NM | |
|
|
|
|
|
|
| |||||
Dividends declared per common share |
| $ | 0.12 |
|
| $ | 0.12 |
|
|
| |
COLUMBUS McKINNON CORPORATION | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
|
| December 31, 2020 |
| March 31, 2020 | ||||
|
| (unaudited) |
|
| ||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 187,626 |
|
| $ | 114,450 |
|
Trade accounts receivable |
| 94,177 |
|
| 123,743 |
| ||
Inventories |
| 113,446 |
|
| 127,373 |
| ||
Prepaid expenses and other |
| 18,850 |
|
| 17,180 |
| ||
Total current assets |
| 414,099 |
|
| 382,746 |
| ||
|
|
|
|
| ||||
Property, plant, and equipment, net |
| 72,304 |
|
| 79,473 |
| ||
Goodwill |
| 338,995 |
|
| 319,679 |
| ||
Other intangibles, net |
| 221,741 |
|
| 217,962 |
| ||
Marketable securities |
| 7,925 |
|
| 7,322 |
| ||
Deferred taxes on income |
| 27,777 |
|
| 26,281 |
| ||
Other assets |
| 64,545 |
|
| 59,809 |
| ||
Total assets |
| $ | 1,147,386 |
|
| $ | 1,093,272 |
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Trade accounts payable |
| $ | 49,576 |
|
| $ | 57,289 |
|
Accrued liabilities |
| 90,086 |
|
| 93,585 |
| ||
Current portion of long-term debt |
| 4,450 |
|
| 4,450 |
| ||
Total current liabilities |
| 144,112 |
|
| 155,324 |
| ||
|
|
|
|
| ||||
Term loan and revolving credit facility |
| 245,092 |
|
| 246,856 |
| ||
Other non-current liabilities |
| 260,858 |
|
| 227,507 |
| ||
Total liabilities |
| 650,062 |
|
| 629,687 |
| ||
|
|
|
|
| ||||
Shareholders’ equity: |
|
|
|
| ||||
Common stock |
| 240 |
|
| 238 |
| ||
Additional paid-in capital |
| 293,869 |
|
| 287,256 |
| ||
Retained earnings |
| 287,095 |
|
| 290,441 |
| ||
Accumulated other comprehensive loss |
| (83,880) |
|
| (114,350) |
| ||
Total shareholders’ equity |
| 497,324 |
|
| 463,585 |
| ||
Total liabilities and shareholders’ equity |
| $ | 1,147,386 |
|
| $ | 1,093,272 |
|
COLUMBUS McKINNON CORPORATION | ||||||||
Condensed Consolidated Statements of Cash Flows – UNAUDITED | ||||||||
(In thousands) | ||||||||
|
| Nine Months Ended | ||||||
|
| December 31, 2020 |
| December 31, 2019 | ||||
Operating activities: |
|
|
|
| ||||
Net income (loss) |
| $ | (479) |
|
| $ | 50,428 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
| ||||
Depreciation and amortization |
| 21,203 |
|
| 21,991 |
| ||
Deferred income taxes and related valuation allowance |
| (7,344) |
|
| 1,247 |
| ||
Net loss (gain) on sale of real estate, investments, and other |
| (1,262) |
|
| (602) |
| ||
Stock based compensation |
| 5,840 |
|
| 3,510 |
| ||
Amortization of deferred financing costs |
| 1,986 |
|
| 1,782 |
| ||
Loss on sales of businesses |
| — |
|
| 176 |
| ||
Non-cash pension settlement expense |
| 18,933 |
|
| — |
| ||
Gain on sale of building |
| (2,638) |
|
| — |
| ||
Non-cash lease expense |
| 5,721 |
|
| 6,136 |
| ||
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures: |
|
|
|
| ||||
Trade accounts receivable |
| 34,254 |
|
| 3,989 |
| ||
Inventories |
| 20,786 |
|
| 10,870 |
| ||
Prepaid expenses and other |
| (1,564) |
|
| (3,224) |
| ||
Other assets |
| 545 |
|
| 726 |
| ||
Trade accounts payable |
| (8,764) |
|
| (3,013) |
| ||
Accrued liabilities |
| (9,922) |
|
| (11,458) |
| ||
Non-current liabilities |
| (5,347) |
|
| (12,306) |
| ||
Net cash provided by (used for) operating activities |
| 71,948 |
|
| 70,252 |
| ||
|
|
|
|
| ||||
Investing activities: |
|
|
|
| ||||
Proceeds from sales of marketable securities |
| 4,231 |
|
| 4,908 |
| ||
Purchases of marketable securities |
| (4,067) |
|
| (4,961) |
| ||
Capital expenditures |
| (5,904) |
|
| (6,761) |
| ||
Proceeds from sale of building, net of transaction costs |
| 5,453 |
|
| — |
| ||
Proceeds from insurance reimbursement |
| 100 |
|
| — |
| ||
Dividend received from equity method investment |
| 587 |
|
| — |
| ||
Proceeds from sale of fixed assets |
| 446 |
|
| 51 |
| ||
Net (payments) proceeds from sales of businesses |
| — |
|
| (214) |
| ||
Net cash provided by (used for) investing activities |
| 846 |
|
| (6,977) |
| ||
|
|
|
|
| ||||
Financing activities: |
|
|
|
| ||||
Proceeds from issuance of common stock |
| 1,828 |
|
| 4,457 |
| ||
Borrowings under line-of-credit agreements |
| 25,000 |
|
| — |
| ||
Payments under line-of-credit agreements |
| (25,000) |
|
| — |
| ||
Repayment of debt |
| (3,338) |
|
| (50,000) |
| ||
Fees paid for revolver extension |
| (826) |
|
| — |
| ||
Payment of dividends |
| (4,294) |
|
| (4,245) |
| ||
Other |
| (1,050) |
|
| (643) |
| ||
Net cash provided by (used for) financing activities |
| (7,680) |
|
| (50,431) |
| ||
|
|
|
|
| ||||
Effect of exchange rate changes on cash |
| 8,062 |
|
| 77 |
| ||
|
|
|
|
| ||||
Net change in cash and cash equivalents |
| 73,176 |
|
| 12,921 |
| ||
Cash, cash equivalents, and restricted cash at beginning of year |
| 114,700 |
|
| 71,343 |
| ||
Cash, cash equivalents, and restricted cash at end of period |
| $ | 187,876 |
|
| $ | 84,264 |
|
COLUMBUS McKINNON CORPORATION | ||||||||||||||
Q3 FY 2021 Sales Bridge | ||||||||||||||
|
| Quarter |
| Year To Date | ||||||||||
($ in millions) |
| $ Change |
| % Change |
| $ Change |
| % Change | ||||||
Fiscal 2020 Sales |
| $ | 199.4 |
|
|
|
| $ | 619.7 |
|
|
| ||
Volume |
| (37.8) |
|
| (19.0) | % |
| (166.3) |
|
| (26.8) | % | ||
Pricing |
| 1.9 |
|
| 1.0 | % |
| 6.7 |
|
| 1.1 | % | ||
Foreign currency translation |
| 3.0 |
|
| 1.5 | % |
| 3.3 |
|
| 0.5 | % | ||
Total change |
| $ | (32.9) |
|
| (16.5) | % |
| $ | (156.3) |
|
| (25.2) | % |
Fiscal 2021 Sales |
| $ | 166.5 |
|
|
|
| $ | 463.4 |
|
|
| ||
COLUMBUS McKINNON CORPORATION | ||||||||
Q3 FY 2021 Gross Profit Bridge | ||||||||
($ in millions) | Quarter |
| Year To Date | |||||
Fiscal 2020 Gross Profit | $ | 67.9 |
|
| $ | 217.0 |
| |
Pricing, net of material cost inflation | 1.9 |
|
| 6.6 |
| |||
Gain on sale of building | — |
|
| 2.2 |
| |||
Tariffs | 0.2 |
|
| 1.6 |
| |||
Foreign currency translation | 1.1 |
|
| 1.3 |
| |||
Product liability | (0.1) |
|
| (0.1) |
| |||
Business realignment costs | (0.1) |
|
| (0.3) |
| |||
Insurance settlement | (0.1) |
|
| (0.4) |
| |||
Factory closures | 0.4 |
|
| (1.2) |
| |||
Productivity, net of other cost changes | (3.1) |
|
| (11.4) |
| |||
Sales volume and mix | (12.8) |
|
| (59.2) |
| |||
Total change | $ | (12.6) |
|
| $ | (60.9) |
| |
Fiscal 2021 Gross Profit | $ | 55.3 |
|
| $ | 156.1 |
| |
U.S. Shipping Days by Quarter | ||||||||||||||||||||||||
|
| Q1 |
|
|
| Q2 |
|
|
| Q3 |
|
|
| Q4 |
|
|
| Total | ||||||
FY 21 | 63 |
|
|
| 64 |
|
|
| 61 |
|
|
| 63 |
|
|
| 251 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
FY 20 | 63 |
|
|
| 63 |
|
|
| 61 |
|
|
| 64 |
|
|
| 251 | |||||||
COLUMBUS McKINNON CORPORATION | ||||||||||||||||||||
Additional Data – UNAUDITED | ||||||||||||||||||||
|
| December 31, 2020 |
| September 30, 2020 |
| March 31, 2020 |
| December 31, 2019 | ||||||||||||
($ in millions) |
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Backlog |
| $ | 152.4 |
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| $ | 146.6 |
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| $ | 131.0 |
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| $ | 125.3 |
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Long-term backlog |
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Expected to ship beyond 3 months |
| $ | 62.1 |
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| $ | 60.8 |
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| $ | 49.1 |
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| $ | 51.3 |
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Long-term backlog as % of total backlog |
| 40.7 |
| % |
| 41.5 |
| % |
| 37.5 |
| % |
| 40.9 |
| % | ||||
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Trade accounts receivable |
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Days sales outstanding |
| 51.5 |
| days |
| 53.4 |
| days |
| 59.4 |
| days |
| 57.2 |
| days | ||||
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Inventory turns per year |
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(based on cost of products sold) |
| 3.9 |
| turns |
| 3.6 |
| turns |
| 3.9 |
| turns |
| 3.9 |
| turns | ||||
Days' inventory |
| 93.1 |
| days |
| 100.5 |
| days |
| 94.3 |
| days |
| 94.0 |
| days | ||||
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Trade accounts payable |
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Days payables outstanding |
| 40.6 |
| days |
| 33.7 |
| days |
| 42.3 |
| days |
| 32.1 |
| days | ||||
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Working capital as a % of sales (1) |
| 13.3 |
| % |
| 14.1 |
| % |
| 14.5 |
| % |
| 16.5 |
| % | ||||
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Net cash provided by (used for) operating activities |
| $ | 25.0 |
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| $ | 37.4 |
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| $ | 36.5 |
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| $ | 32.4 |
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Capital expenditures |
| $ | 3.1 |
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| $ | 1.7 |
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| $ | 2.7 |
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| $ | 1.9 |
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Free cash flow (2) |
| $ | 21.9 |
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| $ | 35.7 |
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| $ | 33.9 |
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| $ | 30.5 |
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Debt to total capitalization percentage |
| 33.4 |
| % |
| 36.4 |
| % |
| 35.2 |
| % |
| 34.2 |
| % | ||||
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Debt, net of cash, to net total capitalization |
| 11.1 |
| % |
| 15.6 |
| % |
| 22.8 |
| % |
| 25.7 |
| % | ||||
(1) December 31, 2019 figure excludes Crane Equipment & Service, Inc. (CES) and Stahlhammer Bommern GmbH (STB), each of which were divested on February 28, 2019.
(2) 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.
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, | ||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||||
GAAP gross profit | $ | 55,315 |
|
| $ | 67,872 |
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| $ | 156,137 |
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| $ | 216,977 |
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Add back (deduct): |
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Factory closures | 250 |
|
| 696 |
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| 2,671 |
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| 1,451 |
| ||||
Business realignment costs | 237 |
|
| 123 |
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| 566 |
|
| 263 |
| ||||
Insurance settlement | — |
|
| (77) |
|
| — |
|
| (367) |
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Gain on sale of building | — |
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| — |
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| (2,189) |
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| — |
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Non-GAAP adjusted gross profit | $ | 55,802 |
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| $ | 68,614 |
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| $ | 157,185 |
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| $ | 218,324 |
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Sales | $ | 166,547 |
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| $ | 199,355 |
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| $ | 463,407 |
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| $ | 619,676 |
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Gross margin - GAAP | 33.2 | % |
| 34.0 | % |
| 33.7 | % |
| 35.0 | % | ||||
Adjusted gross margin - Non-GAAP | 33.5 | % |
| 34.4 | % |
| 33.9 | % |
| 35.2 | % | ||||
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 CORPORATION | |||||||||||||||
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations | |||||||||||||||
($ in thousands, except per share data) | |||||||||||||||
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| Three Months Ended December 31, |
| Nine Months Ended December 31, | ||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||||
GAAP income from operations | $ | 10,447 |
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| $ | 20,886 |
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| $ | 28,056 |
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| $ | 73,160 |
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Add back (deduct): |
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Factory closures | 469 |
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| 1,592 |
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| 3,472 |
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| 3,089 |
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Business realignment costs | 237 |
|
| 662 |
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| 1,058 |
|
| 1,075 |
| ||||
Insurance recovery legal costs | — |
|
| 66 |
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| 229 |
|
| 425 |
| ||||
Loss on sales of businesses | — |
|
| — |
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| — |
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| 176 |
| ||||
Insurance settlement | — |
|
| (77) |
|
| — |
|
| (367) |
| ||||
Gain on sale of building | — |
|
| — |
|
| (2,638) |
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| — |
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Non-GAAP adjusted income from operations | $ | 11,153 |
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| $ | 23,129 |
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| $ | 30,177 |
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| $ | 77,558 |
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Sales | $ | 166,547 |
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| $ | 199,355 |
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| $ | 463,407 |
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| $ | 619,676 |
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Operating margin - GAAP | 6.3 | % |
| 10.5 | % |
| 6.1 | % |
| 11.8 | % | ||||
Adjusted operating margin - Non-GAAP | 6.7 | % |
| 11.6 | % |
| 6.5 | % |
| 12.5 | % | ||||
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 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) | |||||||||||||||
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| Three Months Ended December 31, |
| Nine Months Ended December 31, | ||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||||
GAAP net income (loss) | $ | 6,594 |
|
| $ | 15,250 |
|
| $ | (479) |
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| $ | 50,428 |
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Add back (deduct): |
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Non-cash pension settlement expense | — |
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| — |
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| 19,046 |
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| — |
| ||||
Factory closures | 469 |
|
| 1,592 |
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| 3,472 |
|
| 3,089 |
| ||||
Business realignment costs | 237 |
|
| 662 |
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| 1,058 |
|
| 1,075 |
| ||||
Insurance recovery legal costs | — |
|
| 66 |
|
| 229 |
|
| 425 |
| ||||
Loss on sales of businesses | — |
|
| — |
|
| — |
|
| 176 |
| ||||
Insurance settlement | — |
|
| (77) |
|
| — |
|
| (367) |
| ||||
Gain on sale of building | — |
|
| — |
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| (2,638) |
|
| — |
| ||||
Normalize tax rate to 22% (1) | (1,126) |
|
| (2,106) |
|
| (4,857) |
|
| (2,283) |
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Non-GAAP adjusted net income | $ | 6,174 |
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| $ | 15,387 |
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| $ | 15,831 |
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| $ | 52,543 |
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Average diluted shares outstanding | 24,201 |
|
| 24,031 |
|
| 24,088 |
|
| 23,925 |
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Diluted income (loss) per share - GAAP | $ | 0.27 |
|
| $ | 0.63 |
|
| $ | (0.02) |
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| $ | 2.11 |
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Diluted income per share - Non-GAAP | $ | 0.26 |
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| $ | 0.64 |
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| $ | 0.66 |
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| $ | 2.20 |
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(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 and at 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 to the measures as 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.
COLUMBUS McKINNON CORPORATION | |||||||||||||||
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA | |||||||||||||||
($ in thousands) | |||||||||||||||
|
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| Three Months Ended December 31, |
| Nine Months Ended December 31, | ||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||||
GAAP net income (loss) | $ | 6,594 |
|
| $ | 15,250 |
|
| $ | (479) |
|
| $ | 50,428 |
|
Add back (deduct): |
|
|
|
|
|
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Income tax expense (benefit) | 616 |
|
| 2,234 |
|
| (392) |
|
| 12,537 |
| ||||
Interest and debt expense | 2,986 |
|
| 3,423 |
|
| 9,192 |
|
| 11,034 |
| ||||
Investment (income) loss | (495) |
|
| (408) |
|
| (1,429) |
|
| (939) |
| ||||
Foreign currency exchange (gain) loss | 602 |
|
| 188 |
|
| 1,083 |
|
| (518) |
| ||||
Other (income) expense, net | 144 |
|
| 199 |
|
| 20,081 |
|
| 618 |
| ||||
Depreciation and amortization expense | 6,993 |
|
| 7,244 |
|
| 21,203 |
|
| 21,991 |
| ||||
Factory closures | 469 |
|
| 1,592 |
|
| 3,472 |
|
| 3,089 |
| ||||
Business realignment costs | 237 |
|
| 662 |
|
| 1,058 |
|
| 1,075 |
| ||||
Insurance recovery legal costs | — |
|
| 66 |
|
| 229 |
|
| 425 |
| ||||
Loss on sales of businesses | — |
|
| — |
|
| — |
|
| 176 |
| ||||
Insurance settlement | — |
|
| (77) |
|
| — |
|
| (367) |
| ||||
Gain on sale of building | — |
|
| — |
|
| (2,638) |
|
| — |
| ||||
Non-GAAP adjusted EBITDA | $ | 18,146 |
|
| $ | 30,373 |
|
| $ | 51,380 |
|
| $ | 99,549 |
|
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Sales | $ | 166,547 |
|
| $ | 199,355 |
|
| $ | 463,407 |
|
| $ | 619,676 |
|
Net income (loss) margin - GAAP | 4.0 | % |
| 7.6 | % |
| (0.1) | % |
| 8.1 | % | ||||
Adjusted EBITDA margin - Non-GAAP | 10.9 | % |
| 15.2 | % |
| 11.1 | % |
| 16.1 | % | ||||
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210128005160/en/
Gregory P. Rustowicz Vice President - Finance and Chief Financial Officer Columbus McKinnon Corporation 716-689-5442 greg.rustowicz@cmworks.com
Investor Relations: Deborah K. PawlowskiKei Advisors LLC 716-843-3908 dpawlowski@keiadvisors.com
Source: Columbus McKinnon Corporation
