001-34362 | 16-0547600 | |||||||
(Commission File Number) | (IRS Employer Identification No.) |
205 Crosspoint Parkway | Buffalo | NY | 14068 | ||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value per share | CMCO | Nasdaq Global Select Market |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
☐ | Emerging Growth Company |
If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Item 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
Item 7.01 | REGULATION FD DISCLOSURE. |
Item 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
EXHIBIT NUMBER |
DESCRIPTION | |||||||
Press Release dated July 28, 2022 |
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Earnings call slides dated July 28, 2022 |
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104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
COLUMBUS McKINNON CORPORATION | |||||
By: | /s/ Gregory P. Rustowicz | ||||
Name: | Gregory P. Rustowicz | ||||
Title: | Executive Vice President - Finance and Chief Financial Officer | ||||
(Principal Financial Officer) |
($ in millions) | Q1 FY 23 | Q1 FY 22 | Change | % Change | |||||||||||||||||||
Net sales | $ | 220.3 | $ | 213.5 | $ | 6.8 | 3.2 | % | |||||||||||||||
U.S. sales | $ | 138.7 | $ | 124.5 | $ | 14.2 | 11.4 | % | |||||||||||||||
% of total | 63 | % | 58 | % | |||||||||||||||||||
Non-U.S. sales | $ | 81.6 | $ | 89.0 | $ | (7.4) | (8.3) | % | |||||||||||||||
% of total | 37 | % | 42 | % |
($ in millions) |
Q1 FY 23 | Q1 FY 22 | Change | % Change | |||||||||||||||||||
Gross profit | $ | 82.5 | $ | 74.1 | $ | 8.5 | 11.4 | % | |||||||||||||||
Gross margin | 37.5 | % | 34.7 | % | 280 bps | ||||||||||||||||||
Adjusted gross profit* | $ | 82.5 | $ | 77.6 | $ | 5.0 | 6.4 | % | |||||||||||||||
Adjusted gross margin* | 37.5 | % | 36.3 | % | 120 bps | ||||||||||||||||||
Income from operations | $ | 22.8 | $ | 10.7 | $ | 12.1 | 112.3 | % | |||||||||||||||
Operating margin | 10.4 | % | 5.0 | % | 540 bps | ||||||||||||||||||
Adjusted income from operations* | $ | 24.6 | $ | 23.6 | $ | 1.0 | 4.1 | % | |||||||||||||||
Adjusted operating margin* | 11.1 | % | 11.1 | % | 0 bps | ||||||||||||||||||
Net income (loss) | $ | 8.4 | $ | (7.3) | $ | 15.7 | NM | ||||||||||||||||
Net income (loss) margin | 3.8 | % | (3.4) | % | 720 bps | ||||||||||||||||||
Diluted EPS | $ | 0.29 | $ | (0.27) | $ | 0.56 | NM | ||||||||||||||||
Adjusted EPS* | $ | 0.69 | $ | 0.69 | $ | — | — | % | |||||||||||||||
Adjusted EBITDA* | $ | 35.0 | $ | 34.1 | $ | 1.0 | 2.8 | % | |||||||||||||||
Adjusted EBITDA margin* | 15.9 | % | 16.0 | % | (10) bps |
Gregory P. Rustowicz | Investor Relations: | ||||
Executive 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 |
Three Months Ended | ||||||||||||||||||||
June 30, 2022 | June 30, 2021 | Change | ||||||||||||||||||
Net sales | $ | 220,287 | $ | 213,464 | 3.2 | % | ||||||||||||||
Cost of products sold | 137,768 | 139,401 | (1.2) | % | ||||||||||||||||
Gross profit | 82,519 | 74,063 | 11.4 | % | ||||||||||||||||
Gross profit margin | 37.5 | % | 34.7 | % | ||||||||||||||||
Selling expenses | 26,156 | 23,482 | 11.4 | % | ||||||||||||||||
% of net sales | 11.9 | % | 11.0 | % | ||||||||||||||||
General and administrative expenses | 21,881 | 30,143 | (27.4) | % | ||||||||||||||||
% of net sales | 9.9 | % | 14.1 | % | ||||||||||||||||
Research and development expenses | 5,130 | 3,583 | 43.2 | % | ||||||||||||||||
% of net sales | 2.3 | % | 1.7 | % | ||||||||||||||||
Amortization of intangibles | 6,535 | 6,109 | 7.0 | % | ||||||||||||||||
Income from operations | 22,817 | 10,746 | 112.3 | % | ||||||||||||||||
Operating margin | 10.4 | % | 5.0 | % | ||||||||||||||||
Interest and debt expense | 6,203 | 5,812 | 6.7 | % | ||||||||||||||||
Cost of debt refinancing | — | 14,803 | (100.0) | % | ||||||||||||||||
Investment (income) loss | 430 | (433) | NM | |||||||||||||||||
Foreign currency exchange (gain) loss | 1,203 | 94 | 1,179.8 | % | ||||||||||||||||
Other (income) expense, net | (2,303) | 250 | NM | |||||||||||||||||
Income (loss) before income tax expense (benefit) | 17,284 | (9,780) | NM | |||||||||||||||||
Income tax expense (benefit) | 8,893 | (2,517) | NM | |||||||||||||||||
Net income (loss) | $ | 8,391 | $ | (7,263) | NM | |||||||||||||||
Average basic shares outstanding | 28,544 | 26,762 | 6.7 | % | ||||||||||||||||
Basic income (loss) per share | $ | 0.29 | $ | (0.27) | NM | |||||||||||||||
Average diluted shares outstanding | 28,699 | 26,762 | 7.2 | % | ||||||||||||||||
Diluted income (loss) per share | $ | 0.29 | $ | (0.27) | NM | |||||||||||||||
June 30, 2022 | March 31, 2022 | |||||||||||||
(unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 85,660 | $ | 115,390 | ||||||||||
Trade accounts receivable | 133,006 | 147,515 | ||||||||||||
Inventories | 189,324 | 172,139 | ||||||||||||
Prepaid expenses and other | 34,649 | 31,545 | ||||||||||||
Total current assets | 442,639 | 466,589 | ||||||||||||
Property, plant, and equipment, net | 95,651 | 97,926 | ||||||||||||
Goodwill | 640,970 | 648,849 | ||||||||||||
Other intangibles, net | 378,398 | 390,788 | ||||||||||||
Marketable securities | 10,322 | 10,294 | ||||||||||||
Deferred taxes on income | 2,147 | 2,313 | ||||||||||||
Other assets | 64,602 | 68,948 | ||||||||||||
Total assets | $ | 1,634,729 | $ | 1,685,707 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Trade accounts payable | $ | 73,867 | $ | 90,881 | ||||||||||
Accrued liabilities | 104,820 | 118,187 | ||||||||||||
Current portion of long-term debt and finance lease obligations | 40,565 | 40,551 | ||||||||||||
Total current liabilities | 219,252 | 249,619 | ||||||||||||
Term loan and finance lease obligations | 460,762 | 470,675 | ||||||||||||
Other non-current liabilities | 179,534 | 192,610 | ||||||||||||
Total liabilities | 859,548 | 912,904 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock | 286 | 285 | ||||||||||||
Additional paid-in capital | 505,926 | 506,074 | ||||||||||||
Retained earnings | 324,734 | 316,343 | ||||||||||||
Accumulated other comprehensive loss | (55,765) | (49,899) | ||||||||||||
Total shareholders’ equity | 775,181 | 772,803 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,634,729 | $ | 1,685,707 |
Three Months Ended | ||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||
Operating activities: | ||||||||||||||
Net income (loss) | $ | 8,391 | $ | (7,263) | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 10,469 | 10,467 | ||||||||||||
Deferred income taxes and related valuation allowance | 1,272 | (245) | ||||||||||||
Net loss (gain) on sale of real estate, investments, and other | 485 | (391) | ||||||||||||
Stock-based compensation | 751 | 2,262 | ||||||||||||
Amortization of deferred financing costs | 430 | 471 | ||||||||||||
Cost of debt refinancing | — | 14,803 | ||||||||||||
Loss (gain) on hedging instruments | (192) | — | ||||||||||||
Loss on retirement of fixed asset | 173 | — | ||||||||||||
Non-cash lease expense | 2,139 | 1,989 | ||||||||||||
Changes in operating assets and liabilities, net of effects of business acquisitions: | ||||||||||||||
Trade accounts receivable | 11,265 | 2,043 | ||||||||||||
Inventories | (21,467) | (10,802) | ||||||||||||
Prepaid expenses and other | 359 | (5,714) | ||||||||||||
Other assets | (143) | 35 | ||||||||||||
Trade accounts payable | (15,720) | (5,879) | ||||||||||||
Accrued liabilities | (6,938) | (5,945) | ||||||||||||
Non-current liabilities | (2,451) | (3,227) | ||||||||||||
Net cash provided by (used for) operating activities | (11,177) | (7,396) | ||||||||||||
Investing activities: | ||||||||||||||
Proceeds from sales of marketable securities | 650 | 2,181 | ||||||||||||
Purchases of marketable securities | (1,226) | (4,137) | ||||||||||||
Capital expenditures | (2,953) | (3,648) | ||||||||||||
Proceeds from insurance reimbursement | — | 482 | ||||||||||||
Purchases of businesses, net of cash acquired | (1,616) | (475,311) | ||||||||||||
Dividend received from equity method investment | 313 | — | ||||||||||||
Net cash provided by (used for) investing activities | (4,832) | (480,433) | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from issuance of common stock | 415 | 290 | ||||||||||||
Repayment of debt | (10,128) | (455,040) | ||||||||||||
Proceeds from issuance of long-term debt | — | 650,000 | ||||||||||||
Proceeds from equity offering | — | 207,000 | ||||||||||||
Fees related to debt and equity offering | — | (25,292) | ||||||||||||
Cash inflows from hedging activities | 6,163 | — | ||||||||||||
Cash outflows from hedging activities | (6,022) | — | ||||||||||||
Payment of dividends | (1,996) | (1,439) | ||||||||||||
Other | (1,313) | (1,764) | ||||||||||||
Net cash provided by (used for) financing activities | (12,881) | 373,755 | ||||||||||||
Effect of exchange rate changes on cash | (840) | 601 | ||||||||||||
Net change in cash and cash equivalents | (29,730) | (113,473) | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 115,640 | 202,377 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 85,910 | $ | 88,904 |
Quarter | ||||||||||||||
($ in millions) | $ Change | % Change | ||||||||||||
Fiscal 2022 Sales | $ | 213.5 | ||||||||||||
Acquisition | 8.5 | 4.0 | % | |||||||||||
Volume | (4.3) | (2.0) | % | |||||||||||
Pricing | 9.6 | 4.5 | % | |||||||||||
Foreign currency translation | (7.0) | (3.3) | % | |||||||||||
Total change | $ | 6.8 | 3.2 | % | ||||||||||
Fiscal 2023 Sales | $ | 220.3 |
($ in millions) | Quarter | ||||
Fiscal 2022 Gross Profit | $ | 74.1 | |||
Acquisition | 3.1 | ||||
Price, net of material cost inflation | 3.1 | ||||
Prior year acquisition inventory step-up expense | 3.0 | ||||
Sales volume and mix | 1.0 | ||||
Prior year acquisition integration costs | 0.5 | ||||
Tariffs | 0.1 | ||||
Productivity, net of other cost changes | 0.1 | ||||
Foreign currency translation | (2.5) | ||||
Total change | 8.4 | ||||
Fiscal 2023 Gross Profit | $ | 82.5 |
U.S. Shipping Days by Quarter | ||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||||||||||||
FY 23 | 63 | 64 | 60 | 63 | 250 | |||||||||||||||||||||||||||
FY 22 | 63 | 64 | 61 | 63 | 251 | |||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | June 30, 2021 | |||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||
Backlog | $ | 351.6 | $ | 309.1 | $ | 247.4 | |||||||||||||||||||||||
Long-term backlog | |||||||||||||||||||||||||||||
Expected to ship beyond 3 months | $ | 162.8 | $ | 135.2 | $ | 107.3 | |||||||||||||||||||||||
Long-term backlog as % of total backlog | 46.3 | % | 43.7 | % | 43.4 | % | |||||||||||||||||||||||
Trade accounts receivable | |||||||||||||||||||||||||||||
Days sales outstanding | 54.9 | days | 53.0 | days | 52.5 | days | |||||||||||||||||||||||
Inventory turns per year | |||||||||||||||||||||||||||||
(based on cost of products sold) | 2.9 | turns | 3.9 | turns | 4.0 | turns | |||||||||||||||||||||||
Days' inventory | 125.4 | days | 93.6 | days | 90.8 | days | |||||||||||||||||||||||
Trade accounts payable | |||||||||||||||||||||||||||||
Days payables outstanding | 58.6 | days | 58.7 | days | 52.4 | days | |||||||||||||||||||||||
Working capital as a % of sales (2) |
19.9 | % | 15.5 | % | 12.5 | % | |||||||||||||||||||||||
Net cash provided by (used for) operating activities | $ | (11.2) | $ | 25.2 | $ | (7.4) | |||||||||||||||||||||||
Capital expenditures | $ | 3.0 | $ | 3.6 | $ | 3.6 | |||||||||||||||||||||||
Free cash flow (1) |
$ | (14.1) | $ | 21.6 | $ | (11.0) | |||||||||||||||||||||||
Debt to total capitalization percentage | 39.3 | % | 39.8 | % | 38.8 | % | |||||||||||||||||||||||
Debt, net of cash, to net total capitalization | 34.9 | % | 33.9 | % | 33.8 | % |
Three Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
GAAP gross profit | $ | 82,519 | $ | 74,063 | |||||||
Add back (deduct): | |||||||||||
Acquisition inventory step-up expense | — | 2,981 | |||||||||
Acquisition integration costs | — | 521 | |||||||||
Non-GAAP adjusted gross profit | $ | 82,519 | $ | 77,565 | |||||||
Sales | $ | 220,287 | $ | 213,464 | |||||||
Gross margin - GAAP | 37.5 | % | 34.7 | % | |||||||
Adjusted gross margin - Non-GAAP | 37.5 | % | 36.3 | % |
Three Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
GAAP income from operations | $ | 22,817 | $ | 10,746 | |||||||
Add back (deduct): | |||||||||||
Business realignment costs | 1,657 | 623 | |||||||||
Acquisition deal and integration costs | 86 | 9,242 | |||||||||
Acquisition inventory step-up expense | — | 2,981 | |||||||||
Non-GAAP adjusted income from operations | $ | 24,560 | $ | 23,592 | |||||||
Sales | $ | 220,287 | $ | 213,464 | |||||||
Operating margin - GAAP | 10.4 | % | 5.0 | % | |||||||
Adjusted operating margin - Non-GAAP | 11.1 | % | 11.1 | % |
Three Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
GAAP net income (loss) | $ | 8,391 | $ | (7,263) | |||||||
Add back (deduct): | |||||||||||
Amortization of intangibles | 6,535 | 6,109 | |||||||||
Business realignment costs | 1,657 | 623 | |||||||||
Acquisition deal and integration costs | 86 | 9,242 | |||||||||
Cost of debt refinancing | — | 14,803 | |||||||||
Acquisition inventory step-up expense | — | 2,981 | |||||||||
Normalize tax rate to 22% (1) |
3,269 | (7,792) | |||||||||
Non-GAAP adjusted net income | $ | 19,938 | $ | 18,703 | |||||||
Average diluted shares outstanding | 28,699 | 27,159 | |||||||||
Diluted income (loss) per share - GAAP | $ | 0.29 | $ | (0.27) | |||||||
Diluted income per share - Non-GAAP | $ | 0.69 | $ | 0.69 |
Three Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
GAAP net income (loss) | $ | 8,391 | $ | (7,263) | |||||||
Add back (deduct): | |||||||||||
Income tax expense (benefit) | 8,893 | (2,517) | |||||||||
Interest and debt expense | 6,203 | 5,812 | |||||||||
Investment (income) loss | 430 | (433) | |||||||||
Foreign currency exchange (gain) loss | 1,203 | 94 | |||||||||
Other (income) expense, net | (2,303) | 250 | |||||||||
Depreciation and amortization expense | 10,469 | 10,467 | |||||||||
Business realignment costs | 1,657 | 623 | |||||||||
Acquisition deal and integration costs | 86 | 9,242 | |||||||||
Cost of debt refinancing | — | 14,803 | |||||||||
Acquisition inventory step-up expense | — | 2,981 | |||||||||
Non-GAAP adjusted EBITDA | $ | 35,029 | $ | 34,059 | |||||||
Sales | $ | 220,287 | $ | 213,464 | |||||||
Net income (loss) margin - GAAP | 3.8 | % | (3.4) | % | |||||||
Adjusted EBITDA margin - Non-GAAP | 15.9 | % | 16.0 | % |