10/30/2024 | Press release | Distributed by Public on 10/30/2024 04:42
($ in millions) |
Q2 FY25
|
Q2 FY24
|
Change | % Change | ||||
Net sales | $ | 242.3 | $ | 258.4 | $ | (16.1) | (6.2) | % |
U.S. sales | $ | 132.3 | $ | 145.2 | $ | (12.9) | (8.9) | % |
% of total | 55 | % | 56 | % | ||||
Non-U.S. sales | $ | 110.0 | $ | 113.2 | $ | (3.2) | (2.8) | % |
% of total | 45 | % | 44 | % |
($ in millions)
|
Q2 FY25 | Q2 FY24 | Change | % Change | ||||
Gross profit | $ | 74.7 | $ | 100.0 | $ | (25.2) | (25.2) | % |
Gross margin | 30.9 | % | 38.7 | % | (780) bps | |||
Adjusted Gross Profit1
|
$ | 87.9 | $ | 100.0 | $ | (12.0) | (12.0) | % |
Adjusted Gross Margin1
|
36.3 | % | 38.7 | % | (240) bps | |||
Income from operations | $ | 10.8 | $ | 33.4 | $ | (22.5) | (67.6) | % |
Operating margin | 4.5 | % | 12.9 | % | (840) bps | |||
Adjusted Operating Income1
|
$ | 27.0 | $ | 34.1 | $ | (7.2) | (21.0) | % |
Adjusted Operating Margin1
|
11.1 | % | 13.2 | % | (210) bps | |||
Net income (loss) | $ | (15.0) | $ | 15.8 | $ | (30.9) | NM | |
Net income (loss) margin | (6.2) | % | 6.1 | % | (1,230) bps | |||
GAAP EPS | $ | (0.52) | $ | 0.55 | $ | (1.07) | NM | |
Adjusted EPS1
|
$ | 0.70 | $ | 0.76 | $ | (0.06) | (7.9) | % |
Adjusted EBITDA1
|
$ | 39.2 | $ | 45.7 | $ | (6.6) | (14.4) | % |
Adjusted EBITDA Margin1
|
16.2 | % | 17.7 | % | (150) bps |
Metric | Q3 FY25 |
Net sales | Flat year-over-year |
Adjusted EPS3
|
Flat year-over-year |
Metric
|
FY25
|
Net sales
|
Flat to low-single digit growth year-over-year
|
Adjusted EPS3
|
Mid-single digit growth year-over-year
|
Capital Expenditures
|
$20 million to $25 million
|
Net Leverage Ratio3
|
~2.3x
|
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 |
[email protected] | [email protected] |
Three Months Ended | ||||||
September 30, 2024 |
September 30, 2023 |
Change | ||||
Net sales | $ | 242,274 | $ | 258,400 | (6.2) | % |
Cost of products sold | 167,531 | 158,424 | 5.7 | % | ||
Gross profit | 74,743 | 99,976 | (25.2) | % | ||
Gross profit margin | 30.9 | % | 38.7 | % | ||
Selling expenses | 26,926 | 26,867 | 0.2 | % | ||
% of net sales | 11.1 | % | 10.4 | % | ||
General and administrative expenses | 23,363 | 25,709 | (9.1) | % | ||
% of net sales | 9.6 | % | 9.9 | % | ||
Research and development expenses | 6,102 | 6,541 | (6.7) | % | ||
% of net sales | 2.5 | % | 2.5 | % | ||
Amortization of intangibles | 7,547 | 7,508 | 0.5 | % | ||
Income from operations | 10,805 | 33,351 | (67.6) | % | ||
Operating margin | 4.5 | % | 12.9 | % | ||
Interest and debt expense | 8,352 | 10,211 | (18.2) | % | ||
Investment (income) loss | (610) | 88 | NM | |||
Foreign currency exchange (gain) loss | (792) | 1,746 | NM | |||
Other (income) expense, net | 23,806 | 393 | 5,957.5 | % | ||
Income (loss) before income tax expense (benefit) | (19,951) | 20,913 | NM | |||
Income tax expense (benefit) | (4,908) | 5,100 | NM | |||
Net income (loss) | $ | (15,043) | $ | 15,813 | NM | |
Average basic shares outstanding | 28,869 | 28,725 | 0.5 | % | ||
Basic income (loss) per share | $ | (0.52) | $ | 0.55 | NM | |
Average diluted shares outstanding | 28,869 | 29,001 | (0.5) | % | ||
Diluted income (loss) per share | $ | (0.52) | $ | 0.55 | NM | |
Dividends declared per common share | $ | 0.07 | $ | 0.07 |
Six Months Ended | ||||||
September 30, 2024 |
September 30, 2023 |
Change | ||||
Net sales | $ | 482,000 | $ | 493,892 | (2.4) | % |
Cost of products sold | 318,227 | 307,266 | 3.6 | % | ||
Gross profit | 163,773 | 186,626 | (12.2) | % | ||
Gross profit margin | 34.0 | % | 37.8 | % | ||
Selling expenses | 54,696 | 51,848 | 5.5 | % | ||
% of net sales | 11.3 | % | 10.5 | % | ||
General and administrative expenses | 49,810 | 53,152 | (6.3) | % | ||
% of net sales | 10.3 | % | 10.8 | % | ||
Research and development expenses | 12,268 | 12,442 | (1.4) | % | ||
% of net sales | 2.5 | % | 2.5 | % | ||
Amortization of intangibles | 15,047 | 14,385 | 4.6 | % | ||
Income from operations | 31,952 | 54,799 | (41.7) | % | ||
Operating margin | 6.6 | % | 11.1 | % | ||
Interest and debt expense | 16,587 | 18,836 | (11.9) | % | ||
Investment (income) loss | (819) | (454) | 80.4 | % | ||
Foreign currency exchange (gain) loss | (398) | 2,230 | NM | |||
Other (income) expense, net | 24,484 | 605 | 3,946.9 | % | ||
Income (loss) before income tax expense (benefit) | (7,902) | 33,582 | NM | |||
Income tax expense (benefit) | (1,488) | 8,494 | NM | |||
Net income (loss) | $ | (6,414) | $ | 25,088 | NM | |
Average basic shares outstanding | 28,852 | 28,694 | 0.6 | % | ||
Basic income (loss) per share | $ | (0.22) | $ | 0.87 | NM | |
Average diluted shares outstanding | 28,852 | 28,962 | (0.4) | % | ||
Diluted income (loss) per share | $ | (0.22) | $ | 0.87 | NM | |
Dividends declared per common share | $ | 0.07 | $ | 0.07 |
September 30, 2024 |
March 31, 2024 | |||
(Unaudited) | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 55,683 | $ | 114,126 |
Trade accounts receivable | 170,669 | 171,186 | ||
Inventories | 201,036 | 186,091 | ||
Prepaid expenses and other | 40,357 | 42,752 | ||
Total current assets | 467,745 | 514,155 | ||
Property, plant, and equipment, net | 107,258 | 106,395 | ||
Goodwill | 717,982 | 710,334 | ||
Other intangibles, net | 375,598 | 385,634 | ||
Marketable securities | 10,579 | 11,447 | ||
Deferred taxes on income | 1,367 | 1,797 | ||
Other assets | 96,355 | 96,183 | ||
Total assets | $ | 1,776,884 | $ | 1,825,945 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Trade accounts payable | $ | 72,106 | $ | 83,118 |
Accrued liabilities | 106,847 | 127,973 | ||
Current portion of long-term debt and finance lease obligations | 50,704 | 50,670 | ||
Total current liabilities | 229,657 | 261,761 | ||
Term loan, AR securitization facility and finance lease obligations | 449,910 | 479,566 | ||
Other non current liabilities | 201,187 | 202,555 | ||
Total liabilities | $ | 880,754 | $ | 943,882 |
Shareholders' equity: | ||||
Common stock | 287 | 288 | ||
Treasury stock | (5,946) | (1,001) | ||
Additional paid in capital | 529,599 | 527,125 | ||
Retained earnings | 386,892 | 395,328 | ||
Accumulated other comprehensive loss | (14,702) | (39,677) | ||
Total shareholders' equity | $ | 896,130 | $ | 882,063 |
Total liabilities and shareholders' equity | $ | 1,776,884 | $ | 1,825,945 |
Six Months Ended | ||||
September 30, 2024 |
September 30, 2023 |
|||
Operating activities: | ||||
Net income (loss) | $ | (6,414) | $ | 25,088 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||||
Depreciation and amortization | 24,028 | 22,482 | ||
Deferred income taxes and related valuation allowance | (13,662) | (6,097) | ||
Net loss (gain) on sale of real estate, investments and other | (650) | (302) | ||
Non-cash pension settlement | 23,201 | - | ||
Stock-based compensation | 4,175 | 5,264 | ||
Amortization of deferred financing costs | 1,244 | 1,106 | ||
Impairment of operating lease | 3,268 | - | ||
Loss (gain) on hedging instruments | (2) | 554 | ||
Loss (gain) on disposal of Fixed Assets | 418 | - | ||
Non-cash lease expense | 5,202 | 4,684 | ||
Changes in operating assets and liabilities, net of effects of business acquisitions: | ||||
Trade accounts receivable | 2,384 | (11,409) | ||
Inventories | (12,277) | (22,415) | ||
Prepaid expenses and other | (11,714) | (5,868) | ||
Other assets | 183 | 357 | ||
Trade accounts payable | (10,711) | (5,996) | ||
Accrued liabilities | (6,154) | (3,085) | ||
Non-current liabilities | (3,889) | (4,921) | ||
Net cash provided by (used for) operating activities | (1,370) | (558) | ||
Investing activities: | ||||
Proceeds from sales of marketable securities | 3,153 | 1,100 | ||
Purchases of marketable securities | (1,993) | (1,809) | ||
Capital expenditures | (10,068) | (10,319) | ||
Purchase of businesses, net of cash acquired | - | (108,145) | ||
Dividend received from equity method investment | - | 144 | ||
Net cash provided by (used for) investing activities | (8,908) | (119,029) | ||
Financing activities: | ||||
Proceeds from the issuance of common stock | 86 | 492 | ||
Purchases of treasury stock | (4,945) | - | ||
Repayment of debt | (30,326) | (25,294) | ||
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 | 11,862 | 12,084 | ||
Cash outflows from hedging activities | (11,809) | (12,660) | ||
Payment of dividends | (4,038) | (4,015) | ||
Other | (1,789) | (1,954) | ||
Net cash provided by (used for) financing activities | (47,839) | 85,794 | ||
Effect of exchange rate changes on cash | (326) | (325) | ||
Net change in cash and cash equivalents | (58,443) | (34,118) | ||
Cash, cash equivalents, and restricted cash at beginning of year | $ | 114,376 | $ | 133,426 |
Cash, cash equivalents, and restricted cash at end of period | $ | 55,933 | $ | 99,308 |
Quarter | Year To Date | |||||||
($ in millions) | $ Change | % Change | $ Change | % Change | ||||
Fiscal 2024 Net Sales
|
$ | 258.4 | $ | 493.9 | ||||
Acquisition | - | - | % | 2.7 | 0.5 | % | ||
Pricing | 3.8 | 1.5 | % | 7.3 | 1.5 | % | ||
Volume | (20.2) | (7.8) | % | (21.6) | (4.4) | % | ||
Foreign currency translation | 0.3 | 0.1 | % | (0.3) | - | % | ||
Total change | $ | (16.1) | (6.2) | % | $ | (11.9) | (2.4) | % |
Fiscal 2025 Net Sales
|
$ | 242.3 |
|
$ | 482.0 |
($ in millions) | Quarter | Year To Date | ||
Fiscal 2024 Gross Profit
|
$ | 100.0 | $ | 186.6 |
Acquisition | - | 0.8 | ||
Price, net of manufacturing costs changes (incl. inflation) | 0.1 | 3.5 | ||
Monterrey, MX new factory start-up costs | (2.2) | (3.8) | ||
Factory and warehouse consolidation costs | (10.8) | (10.8) | ||
Sales volume and mix | (12.3) | (12.1) | ||
Other | (0.3) | (0.5) | ||
Foreign currency translation | 0.2 | 0.1 | ||
Total change | (25.3) | (22.8) | ||
Fiscal 2025 Gross Profit
|
$ | 74.7 | $ | 163.8 |
U.S. Shipping Days by Quarter | |||||
Q1 | Q2 | Q3 | Q4 | Total | |
FY25 | 64 | 63 | 60 | 62 | 249 |
FY24 | 63 | 62 | 61 | 62 | 248 |
Period Ended | ||||||||||
September 30, 2024 | June 30, 2024 | March 31, 2024 | September 30, 2023 | |||||||
($ in millions) | ||||||||||
Backlog | $ | 317.6 | $ | 292.8 | $ | 280.8 | $ | 317.7 | ||
Long-term backlog | ||||||||||
Expected to ship beyond 3 months | $ | 172.5 | $ | 156.0 | $ | 144.6 | $ | 148.3 | ||
Long-term backlog as % of total backlog | 54.3 | % | 53.3 | % | 51.5 | % | 46.7 | % | ||
Debt to total capitalization percentage | 35.8 | % | 36.6 | % | 37.5 | % | 39.8 | % | ||
Debt, net of cash, to net total capitalization | 33.2 | % | 33.3 | % | 32.0 | % | 35.3 | % | ||
Working capital as a % of sales 2
|
23.3 | % | 22.5 | % | 19.1 | % | 21.8 | % |
Three Months Ended | ||||||||
September 30, 2024 | June 30, 2024 | March 31, 2024 | September 30, 2023 | |||||
($ in millions) | ||||||||
Trade accounts receivable | ||||||||
Days sales outstanding | 64.1 | days | 63.3 | days | 58.7 | days | 58.6 | days |
Inventory turns per year | ||||||||
(based on cost of products sold) | 3.3 | turns | 3.0 | turns | 3.7 | turns | 3.1 | turns |
Days' inventory | 110.6 | days | 121.7 | days | 98.6 | days | 117.7 | days |
Trade accounts payable | ||||||||
Days payables outstanding | 46.3 | days | 50.6 | days | 50.9 | days | 48.3 | days |
Net cash provided by (used for) operating activities | $ | 9.4 | $ | (10.8) | $ | 38.6 | $ | 16.7 |
Capital expenditures | $ | 5.4 | $ | 4.6 | $ | 8.5 | $ | 5.0 |
Free Cash Flow 3
|
$ | 4.0 | $ | (15.4) | $ | 30.1 | $ | 11.7 |
Three Months Ended | Six Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
Gross profit | $ | 74,743 | $ | 99,976 | $ | 163,773 | $ | 186,626 |
Add back (deduct): | ||||||||
Business realignment costs | 76 | - | 468 | 196 | ||||
Hurricane Helene cost impact | 171 | - | 171 | - | ||||
Factory and warehouse consolidation costs | 10,763 | - | 10,763 | - | ||||
Monterrey, MX new factory start-up costs | 2,185 | - | 3,810 | - | ||||
Adjusted Gross Profit | $ | 87,938 | $ | 99,976 | $ | 178,985 | $ | 186,822 |
Net sales | $ | 242,274 | $ | 258,400 | $ | 482,000 | $ | 493,892 |
Gross margin | 30.9 | % | 38.7 | % | 34.0 | % | 37.8 | % |
Adjusted Gross Margin | 36.3 | % | 38.7 | % | 37.1 | % | 37.8 | % |
Three Months Ended | Six Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
Income from operations | $ | 10,805 | $ | 33,351 | $ | 31,952 | $ | 54,799 |
Add back (deduct): | ||||||||
Acquisition deal and integration costs | - | 508 | - | 3,095 | ||||
Business realignment costs | 281 | 40 | 1,131 | 415 | ||||
Factory and warehouse consolidation costs | 11,904 | 82 | 11,904 | 199 | ||||
Headquarter relocation costs | 51 | 146 | 147 | 1,374 | ||||
Hurricane Helene cost impact | 171 | - | 171 | - | ||||
Monterrey, MX new factory start-up costs | 3,751 | - | 7,317 | - | ||||
Adjusted Operating Income | $ | 26,963 | $ | 34,127 | $ | 52,622 | $ | 59,882 |
Net sales | $ | 242,274 | $ | 258,400 | $ | 482,000 | $ | 493,892 |
Operating margin | 4.5 | % | 12.9 | % | 6.6 | % | 11.1 | % |
Adjusted Operating Margin | 11.1 | % | 13.2 | % | 10.9 | % | 12.1 | % |
Three Months Ended | Six Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
Net income (loss) | $ | (15,043) | $ | 15,813 | $ | (6,414) | $ | 25,088 |
Add back (deduct): | ||||||||
Amortization of intangibles | 7,547 | 7,508 | 15,047 | 14,385 | ||||
Acquisition deal and integration costs | - | 508 | - | 3,095 | ||||
Business realignment costs | 281 | 40 | 1,131 | 415 | ||||
Factory and warehouse consolidation costs | 11,904 | 82 | 11,904 | 199 | ||||
Headquarter relocation costs | 51 | 146 | 147 | 1,374 | ||||
Hurricane Helene cost impact | 171 | - | 171 | - | ||||
Monterrey, MX new factory start-up costs | 3,751 | - | 7,317 | - | ||||
Non-cash pension settlement expense | 23,201 | - | 23,201 | - | ||||
Normalize tax rate 1
|
(11,647) | (2,199) | (14,242) | (4,768) | ||||
Adjusted Net Income | $ | 20,216 | $ | 21,898 | $ | 38,262 | $ | 39,788 |
GAAP average diluted shares outstanding | 28,869 | 29,001 | 28,852 | 28,962 | ||||
Add back: | ||||||||
Effect of dilutive share-based awards | 205 | - | 253 | - | ||||
Adjusted Diluted Shares Outstanding | $ | 29,074 | $ | 29,001 | $ | 29,105 | $ | 28,962 |
GAAP EPS | $ | (0.52) | $ | 0.55 | $ | (0.22) | $ | 0.87 |
Adjusted EPS | $ | 0.70 | $ | 0.76 | $ | 1.31 | $ | 1.37 |
Three Months Ended | Six Months Ended | |||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
Net income (loss) | $ | (15,043) | $ | 15,813 | $ | (6,414) | $ | 25,088 |
Add back (deduct): | ||||||||
Income tax expense (benefit) | (4,908) | 5,100 | (1,488) | 8,494 | ||||
Interest and debt expense | 8,352 | 10,211 | 16,587 | 18,836 | ||||
Investment (income) loss | (610) | 88 | (819) | (454) | ||||
Foreign currency exchange (gain) loss | (792) | 1,746 | (398) | 2,230 | ||||
Other (income) expense, net
|
23,806 | 393 | 24,484 | 605 | ||||
Depreciation and amortization expense
|
12,188 | 11,592 | 24,028 | 22,482 | ||||
Acquisition deal and integration costs | - | 508 | - | 3,095 | ||||
Business realignment costs | 281 | 40 | 1,131 | 415 | ||||
Factory and warehouse consolidation costs | 11,904 | 82 | 11,904 | 199 | ||||
Headquarter relocation costs | 51 | 146 | 147 | 1,374 | ||||
Hurricane Helene cost impact | 171 | - | 171 | - | ||||
Monterrey, MX new factory start-up costs | 3,751 | - | 7,317 | - | ||||
Adjusted EBITDA | $ | 39,151 | $ | 45,719 | $ | 76,650 | $ | 82,364 |
Net sales | $ | 242,274 | $ | 258,400 | $ | 482,000 | $ | 493,892 |
Net income margin | (6.2) | % | 6.1 | % | (1.3) | % | 5.1 | % |
Adjusted EBITDA Margin | 16.2 | % | 17.7 | % | 15.9 | % | 16.7 | % |
Twelve Months Ended | ||||
September 30, 2024 | September 30, 2023 | |||
Net income (loss) | $ | 15,123 | $ | 51,012 |
Add back (deduct): | ||||
Annualize EBITDA for the montratec acquisition1
|
- | 5,410 | ||
Annualize synergies for the montratec acquisition1
|
- | 293 | ||
Income tax expense (benefit) | 4,920 | 20,694 | ||
Interest and debt expense | 35,708 | 33,807 | ||
Non-cash pension settlement | 28,185 | - | ||
Amortization of deferred financing costs | 2,487 | 1,967 | ||
Stock Compensation Expense | 10,950 | 12,060 | ||
Depreciation and amortization expense | 47,491 | 43,536 | ||
Cost of debt refinancing | 1,190 | - | ||
Acquisition deal and integration costs | 116 | 3,606 | ||
Excluded acquisition deal and integration costs2
|
- | (510) | ||
Business realignment costs | 2,583 | 2,664 | ||
Excluded business realignment costs2
|
- | (2,249) | ||
Factory and warehouse consolidation costs | 12,449 | 199 | ||
Garvey contingent consideration | - | 1,230 | ||
Headquarter relocation costs | 832 | 2,370 | ||
Monterrey, MX new factory start-up costs | 11,806 | - | ||
Excluded Monterrey, MX new factory start-up costs3
|
(3,664) | - | ||
Credit Agreement Trailing Twelve Month Adjusted EBITDA | $ | 170,176 | $ | 176,089 |
Current portion of long-term debt and finance lease obligations | $ | 50,704 | $ | 50,636 |
Term loan, AR securitization facility and finance lease obligations | 449,910 | 514,205 | ||
Total debt | $ | 500,614 | $ | 564,841 |
Standby Letters of Credit | 15,692 | 15,525 | ||
Cash and cash equivalents | (55,683) | (99,058) | ||
Net Debt | $ | 460,623 | $ | 481,308 |
Net Leverage Ratio | 2.71x | 2.73x |