Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - COLUMBUS MCKINNON CORP | a20210526cmcoq4fy21telec.htm |
| 8-K - 8-K - COLUMBUS MCKINNON CORP | cmco-20210526.htm |
EXHIBIT 99.1
News Release
205 Crosspoint Parkway
Buffalo, NY 14068
Immediate Release
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
BUFFALO, NY, May 26, 2021 - 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 2021 fourth quarter, which ended March 31, 2021.
Fourth Quarter and Fiscal Year 2021 Highlights
•Executed on Blueprint for Growth 2.0 strategy to deliver solid results in challenging year while building momentum for fiscal 2022
•Ended year with much improved order volume in fourth quarter; orders up 24% over trailing third quarter and up 6% over prior-year period
•Delivered $186.2 million in revenue in the quarter, up 12% sequentially
•Generated strong cash from operations in fiscal year of $98.9 million
•Entered fiscal 2022 with backlog of $171.7 million, up 31% over prior-year period and 13% over trailing quarter
•Advanced strategy with the acquisition of new platform of high-precision conveying systems for intelligent motion in material handling
•Successfully completed equity and debt financing transactions
David Wilson, President and CEO of Columbus McKinnon, commented, “We ended fiscal 2021 on a high note with orders growing in both our project and short cycle businesses. While the year was challenged with the impact of the global pandemic and resulting recession, we employed the tools of the Columbus McKinnon Business System to keep our momentum building and make our Company stronger. We delivered improved decremental leverage over previous downturns, generated robust cash flow, reduced our working capital requirements, and introduced several new products including our line of Intelli-Crane™ solutions. In addition, we identified and announced the Dorner acquisition which establishes a new platform for growth. It provides a catalyst for faster growth in attractive markets with strong tailwinds and presents strategic opportunities in a fragmented market. Since entering fiscal 2022, we have successfully issued equity, restructured our debt and are well positioned to quickly de-lever our balance sheet.”
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 2 of 13
May 26, 2021
Fourth Quarter Fiscal 2021 Sales
| ($ in millions) | Q4 FY 21 | Q4 FY 20 | Change | % Change | |||||||||||||||||||
| Net sales | $ | 186.2 | $ | 189.5 | $ | (3.3) | (1.7) | % | |||||||||||||||
| U.S. sales | $ | 94.8 | $ | 104.1 | $ | (9.3) | (8.9) | % | |||||||||||||||
| % of total | 51 | % | 55 | % | |||||||||||||||||||
| Non-U.S. sales | $ | 91.4 | $ | 85.4 | $ | 6.0 | 7.0 | % | |||||||||||||||
| % of total | 49 | % | 45 | % | |||||||||||||||||||
Revenue recovered sequentially throughout fiscal 2021 almost approaching levels recorded in the fourth quarter of fiscal 2020 when the COVID-19 global pandemic had an approximate $10 million impact on revenue. A 0.8% price improvement in the U.S. partially offset approximately $10.1 million in lower volume. Outside the U.S., a $5.9 million, or 6.9%, positive impact from foreign currency translation and price improvement of 1.2% more than offset $0.9 million of lower volume.
Compared with the trailing third quarter, sales improved 11.8% with short cycle sales up 11.7% and project sales up 11.9%.
Fourth Quarter Fiscal 2021 Operating Results
($ in millions) | Q4 FY 21 | Q4 FY 20 | Change | % Change | |||||||||||||||||||
| Gross profit | $ | 64.1 | $ | 66.2 | $ | (2.1) | (3.2) | % | |||||||||||||||
| Gross margin | 34.4 | % | 34.9 | % | (50) bps | ||||||||||||||||||
| Income from operations | $ | 14.2 | $ | 16.7 | $ | (2.5) | (14.8) | % | |||||||||||||||
| Operating margin | 7.6 | % | 8.8 | % | (120) bps | ||||||||||||||||||
| Adjusted income from operations* | $ | 18.9 | $ | 20.2 | $ | (1.3) | (6.5) | % | |||||||||||||||
| Adjusted operating margin* | 10.1 | % | 10.7 | % | (60) bps | ||||||||||||||||||
| Net income | $ | 9.6 | $ | 9.2 | $ | 0.3 | 3.7 | % | |||||||||||||||
| Diluted EPS | $ | 0.39 | $ | 0.39 | $ | — | — | % | |||||||||||||||
| Net income margin | 5.1 | % | 4.9 | % | 20 bps | ||||||||||||||||||
| Adjusted EBITDA* | $ | 25.8 | $ | 27.3 | $ | (1.5) | (5.5) | % | |||||||||||||||
| Adjusted EBITDA margin* | 13.9 | % | 14.4 | % | (50) bps | ||||||||||||||||||
*Adjusted operating income, adjusted operating margin as well as adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. 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).
First Quarter Fiscal 2022 Outlook
The Company expects first quarter fiscal 2022 sales to be within a range of approximately $212 million to $217 million at current exchange rates and including the Dorner acquisition.
Mr. Wilson concluded, “We are encouraged with growing demand for our lifting solutions as customers release projects and short cycle order trends improve. We are also excited about the addition of Dorner to our relevant portfolio of intelligent motion solutions and are seeing strong demand for high-precision conveying solutions. In fact, the business ended April with a record backlog, further confirming our conviction in the value of this acquisition.”
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 3 of 13
May 26, 2021
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 13718341. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Wednesday, June 2, 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 solutions that efficiently and ergonomically move, lift, position and secure 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 Covid-19, the ability of the Company to integrate Dorner and achieve cost and revenue synergies and the amount of such synergies, the level of earnings per share accretion expectations; the ability of the Company to achieve its Blueprint for Growth 2.0 strategy; and the amount of integration costs 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, 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: | ||||
| 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 Financial Results for Fourth Quarter Fiscal Year 2021
Page 4 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2021 | March 31, 2020 | Change | ||||||||||||||||||
| Net sales | $ | 186,235 | $ | 189,486 | (1.7) | % | ||||||||||||||
| Cost of products sold | 122,147 | 123,277 | (0.9) | % | ||||||||||||||||
| Gross profit | 64,088 | 66,209 | (3.2) | % | ||||||||||||||||
| Gross profit margin | 34.4 | % | 34.9 | % | ||||||||||||||||
| Selling expenses | 20,820 | 22,253 | (6.4) | % | ||||||||||||||||
| % of net sales | 11.2 | % | 11.7 | % | ||||||||||||||||
| General and administrative expenses | 22,193 | 21,167 | 4.8 | % | ||||||||||||||||
| % of net sales | 11.9 | % | 11.2 | % | ||||||||||||||||
| Research and development expenses | 3,702 | 2,891 | 28.1 | % | ||||||||||||||||
| % of net sales | 2.0 | % | 1.5 | % | ||||||||||||||||
| Amortization of intangibles | 3,174 | 3,234 | (1.9) | % | ||||||||||||||||
| Income from operations | 14,199 | 16,664 | (14.8) | % | ||||||||||||||||
| Operating margin | 7.6 | % | 8.8 | % | ||||||||||||||||
| Interest and debt expense | 2,889 | 3,200 | (9.7) | % | ||||||||||||||||
| Investment (income) loss | (264) | 48 | NM | |||||||||||||||||
| Foreign currency exchange (gain) loss | (142) | (996) | (85.7) | % | ||||||||||||||||
| Other (income) expense, net | 769 | 221 | 248.0 | % | ||||||||||||||||
| Income (loss) before income tax expense (benefit) | 10,947 | 14,191 | (22.9) | % | ||||||||||||||||
| Income tax expense (benefit) | 1,362 | 4,947 | (72.5) | % | ||||||||||||||||
| Net income | $ | 9,585 | $ | 9,244 | 3.7 | % | ||||||||||||||
| Average basic shares outstanding | 23,977 | 23,735 | 1.0 | % | ||||||||||||||||
| Basic income per share | $ | 0.40 | $ | 0.39 | 2.6 | % | ||||||||||||||
| Average diluted shares outstanding | 24,384 | 23,938 | 1.9 | % | ||||||||||||||||
| Diluted income per share | $ | 0.39 | $ | 0.39 | — | % | ||||||||||||||
| Dividends declared per common share | $ | 0.12 | $ | 0.12 | ||||||||||||||||
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 5 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
| Year Ended | ||||||||||||||||||||
| March 31, 2021 | March 31, 2020 | Change | ||||||||||||||||||
| Net sales | $ | 649,642 | $ | 809,162 | (19.7) | % | ||||||||||||||
| Cost of products sold | 429,417 | 525,976 | (18.4) | % | ||||||||||||||||
| Gross profit | 220,225 | 283,186 | (22.2) | % | ||||||||||||||||
| Gross profit margin | 33.9 | % | 35.0 | % | ||||||||||||||||
| Selling expenses | 76,907 | 91,054 | (15.5) | % | ||||||||||||||||
| % of net sales | 11.8 | % | 11.3 | % | ||||||||||||||||
| General and administrative expenses | 76,035 | 77,880 | (2.4) | % | ||||||||||||||||
| % of net sales | 11.7 | % | 9.6 | % | ||||||||||||||||
| Research and development expenses | 12,405 | 11,310 | 9.7 | % | ||||||||||||||||
| % of net sales | 1.9 | % | 1.4 | % | ||||||||||||||||
| Loss on sales of businesses | — | 176 | NM | |||||||||||||||||
| Amortization of intangibles | 12,623 | 12,942 | (2.5) | % | ||||||||||||||||
| Income from operations | 42,255 | 89,824 | (53.0) | % | ||||||||||||||||
| Operating margin | 6.5 | % | 11.1 | % | ||||||||||||||||
| Interest and debt expense | 12,081 | 14,234 | (15.1) | % | ||||||||||||||||
| Investment (income) loss | (1,693) | (891) | 90.0 | % | ||||||||||||||||
| Foreign currency exchange (gain) loss | 941 | (1,514) | NM | |||||||||||||||||
| Other (income) expense, net | 20,850 | 839 | 2,385.1 | % | ||||||||||||||||
| Income (loss) before income tax expense (benefit) | 10,076 | 77,156 | (86.9) | % | ||||||||||||||||
| Income tax expense (benefit) | 970 | 17,484 | (94.5) | % | ||||||||||||||||
| Net income | $ | 9,106 | $ | 59,672 | (84.7) | % | ||||||||||||||
| Average basic shares outstanding | 23,897 | 23,619 | 1.2 | % | ||||||||||||||||
| Basic income per share | $ | 0.38 | $ | 2.53 | (85.0) | |||||||||||||||
| Average diluted shares outstanding | 24,173 | 23,855 | 1.3 | % | ||||||||||||||||
| Diluted income per share | $ | 0.38 | $ | 2.50 | (84.8) | |||||||||||||||
| Dividends declared per common share | $ | 0.24 | $ | 0.24 | ||||||||||||||||
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 6 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
| March 31, 2021 | March 31, 2020 | |||||||||||||
| (unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 202,127 | $ | 114,450 | ||||||||||
| Trade accounts receivable | 105,464 | 123,743 | ||||||||||||
| Inventories | 111,488 | 127,373 | ||||||||||||
| Prepaid expenses and other | 22,763 | 17,180 | ||||||||||||
| Total current assets | 441,842 | 382,746 | ||||||||||||
| Property, plant, and equipment, net | 74,753 | 79,473 | ||||||||||||
| Goodwill | 331,176 | 319,679 | ||||||||||||
| Other intangibles, net | 213,362 | 217,962 | ||||||||||||
| Marketable securities | 7,968 | 7,322 | ||||||||||||
| Deferred taxes on income | 20,080 | 26,281 | ||||||||||||
| Other assets | 61,251 | 59,809 | ||||||||||||
| Total assets | $ | 1,150,432 | $ | 1,093,272 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Trade accounts payable | $ | 68,593 | $ | 57,289 | ||||||||||
| Accrued liabilities | 110,816 | 93,585 | ||||||||||||
| Current portion of long-term debt | 4,450 | 4,450 | ||||||||||||
| Total current liabilities | 183,859 | 155,324 | ||||||||||||
| Term loan and revolving credit facility | 244,504 | 246,856 | ||||||||||||
| Other non-current liabilities | 191,920 | 227,507 | ||||||||||||
| Total liabilities | 620,283 | 629,687 | ||||||||||||
| Shareholders’ equity: | ||||||||||||||
| Common stock | 240 | 238 | ||||||||||||
| Additional paid-in capital | 296,093 | 287,256 | ||||||||||||
| Retained earnings | 293,802 | 290,441 | ||||||||||||
| Accumulated other comprehensive loss | (59,986) | (114,350) | ||||||||||||
| Total shareholders’ equity | 530,149 | 463,585 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,150,432 | $ | 1,093,272 | ||||||||||
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 7 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
| Year Ended | ||||||||||||||
| March 31, 2021 | March 31, 2020 | |||||||||||||
| Operating activities: | ||||||||||||||
| Net income | $ | 9,106 | $ | 59,672 | ||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||||||||||||||
| Depreciation and amortization | 28,153 | 29,126 | ||||||||||||
| Deferred income taxes and related valuation allowance | (8,704) | 7,364 | ||||||||||||
| Net loss (gain) on sale of real estate, investments, and other | (1,594) | (563) | ||||||||||||
| Stock based compensation | 8,022 | 4,507 | ||||||||||||
| Amortization of deferred financing costs | 2,646 | 2,655 | ||||||||||||
| Loss on sales of businesses | — | 176 | ||||||||||||
| Non-cash pension settlement expense | 19,038 | — | ||||||||||||
| Gain on sale of building | (2,638) | — | ||||||||||||
| Non-cash lease expense | 7,447 | 7,923 | ||||||||||||
| Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures: | ||||||||||||||
| Trade accounts receivable | 21,472 | 2,899 | ||||||||||||
| Inventories | 20,659 | 15,752 | ||||||||||||
| Prepaid expenses and other | (5,128) | (3,857) | ||||||||||||
| Other assets | 874 | 724 | ||||||||||||
| Trade accounts payable | 10,343 | 8,110 | ||||||||||||
| Accrued liabilities | (3,174) | (14,304) | ||||||||||||
| Non-current liabilities | (7,632) | (13,389) | ||||||||||||
| Net cash provided by (used for) operating activities | 98,890 | 106,795 | ||||||||||||
| Investing activities: | ||||||||||||||
| Proceeds from sales of marketable securities | 5,111 | 5,380 | ||||||||||||
| Purchases of marketable securities | (4,945) | (5,747) | ||||||||||||
| Capital expenditures | (12,300) | (9,432) | ||||||||||||
| 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 | (5,548) | (9,962) | ||||||||||||
| Financing activities: | ||||||||||||||
| Proceeds from issuance of common stock | 1,973 | 6,000 | ||||||||||||
| Borrowings under line-of-credit agreements | 25,000 | — | ||||||||||||
| Payments under line-of-credit agreements | (25,000) | — | ||||||||||||
| Repayment of debt | (4,450) | (51,113) | ||||||||||||
| Fees paid for revolver extension | (826) | — | ||||||||||||
| Payment of dividends | (5,733) | (5,670) | ||||||||||||
| Other | (1,153) | (768) | ||||||||||||
| Net cash provided by (used for) financing activities | (10,189) | (51,551) | ||||||||||||
| Effect of exchange rate changes on cash | 4,524 | (1,925) | ||||||||||||
| Net change in cash and cash equivalents | 87,677 | 43,357 | ||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of year | 114,700 | 71,343 | ||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 202,377 | $ | 114,700 | ||||||||||
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 8 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Q4 FY 2021 Sales Bridge
| Quarter | Year To Date | |||||||||||||||||||||||||
| ($ in millions) | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||
| Fiscal 2020 Sales | $ | 189.5 | $ | 809.2 | ||||||||||||||||||||||
| Volume | (11.1) | (5.8) | % | (177.3) | (21.9) | % | ||||||||||||||||||||
| Pricing | 1.9 | 1.0 | % | 8.6 | 1.1 | % | ||||||||||||||||||||
| Foreign currency translation | 5.9 | 3.1 | % | 9.1 | 1.1 | % | ||||||||||||||||||||
| Total change | $ | (3.3) | (1.7) | % | $ | (159.6) | (19.7) | % | ||||||||||||||||||
| Fiscal 2021 Sales | $ | 186.2 | $ | 649.6 | ||||||||||||||||||||||
COLUMBUS McKINNON CORPORATION
Q4 FY 2021 Gross Profit Bridge
| ($ in millions) | Quarter | Year To Date | |||||||||
| Fiscal 2020 Gross Profit | $ | 66.2 | $ | 283.2 | |||||||
| Pricing, net of material cost inflation | 1.7 | 8.3 | |||||||||
| Gain on sale of building | — | 2.2 | |||||||||
| Tariffs | 0.1 | 1.7 | |||||||||
| Foreign currency translation | 2.1 | 3.4 | |||||||||
| Product liability | 0.3 | 0.2 | |||||||||
| Business realignment costs | 0.5 | 0.2 | |||||||||
| Insurance settlement | — | (0.4) | |||||||||
| Factory closures | 1.3 | 0.1 | |||||||||
| Productivity, net of other cost changes | (4.5) | (15.9) | |||||||||
| Sales volume and mix | (3.6) | (62.8) | |||||||||
| Total change | $ | (2.1) | $ | (63.0) | |||||||
| Fiscal 2021 Gross Profit | $ | 64.1 | $ | 220.2 | |||||||
| 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 | |||||||||||||||||||||||||||
| FY 20 | 63 | 63 | 61 | 64 | 251 | |||||||||||||||||||||||||||
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 9 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||
| Backlog | $ | 171.7 | $ | 152.4 | $ | 131.0 | |||||||||||||||||||||||
| Long-term backlog | |||||||||||||||||||||||||||||
| Expected to ship beyond 3 months | $ | 68.0 | $ | 62.1 | $ | 49.1 | |||||||||||||||||||||||
| Long-term backlog as % of total backlog | 39.6 | % | 40.7 | % | 37.5 | % | |||||||||||||||||||||||
| Trade accounts receivable | |||||||||||||||||||||||||||||
| Days sales outstanding | 51.5 | days | 51.5 | days | 59.4 | days | |||||||||||||||||||||||
| Inventory turns per year | |||||||||||||||||||||||||||||
| (based on cost of products sold) | 4.4 | turns | 3.9 | turns | 3.9 | turns | |||||||||||||||||||||||
| Days' inventory | 83.3 | days | 93.1 | days | 94.3 | days | |||||||||||||||||||||||
| Trade accounts payable | |||||||||||||||||||||||||||||
| Days payables outstanding | 58.7 | days | 46.4 | days | 48.6 | days | |||||||||||||||||||||||
| Working capital as a % of sales | 9.3 | % | 13.3 | % | 14.5 | % | |||||||||||||||||||||||
| Net cash provided by (used for) operating activities | $ | 26.9 | $ | 25.0 | $ | 36.5 | |||||||||||||||||||||||
| Capital expenditures | $ | 6.4 | $ | 3.1 | $ | 2.7 | |||||||||||||||||||||||
Free cash flow (1) | $ | 20.5 | $ | 21.9 | $ | 33.9 | |||||||||||||||||||||||
| Debt to total capitalization percentage | 32.0 | % | 33.4 | % | 35.2 | % | |||||||||||||||||||||||
| Debt, net of cash, to net total capitalization | 8.1 | % | 11.1 | % | 22.8 | % | |||||||||||||||||||||||
(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.
Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 10 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| GAAP gross profit | $ | 64,088 | $ | 66,209 | $ | 220,225 | $ | 283,186 | |||||||||||||||
| Add back (deduct): | |||||||||||||||||||||||
| Factory closures | — | 1,349 | 2,671 | 2,800 | |||||||||||||||||||
| Business realignment costs | 264 | 774 | 830 | 1,037 | |||||||||||||||||||
| Insurance settlement | — | (15) | — | (382) | |||||||||||||||||||
| Gain on sale of building | — | — | (2,189) | — | |||||||||||||||||||
| Non-GAAP adjusted gross profit | $ | 64,352 | $ | 68,317 | $ | 221,537 | $ | 286,641 | |||||||||||||||
| Sales | $ | 186,235 | $ | 189,486 | $ | 649,642 | $ | 809,162 | |||||||||||||||
| Gross margin - GAAP | 34.4 | % | 34.9 | % | 33.9 | % | 35.0 | % | |||||||||||||||
| Adjusted gross margin - Non-GAAP | 34.6 | % | 36.1 | % | 34.1 | % | 35.4 | % | |||||||||||||||
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 Financial Results for Fourth Quarter Fiscal Year 2021
Page 11 of 13
May 26, 2021
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 March 31, | Year Ended March 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| GAAP income from operations | $ | 14,199 | $ | 16,664 | $ | 42,255 | $ | 89,824 | |||||||||||||||
| Add back (deduct): | |||||||||||||||||||||||
| Acquisition deal costs | 3,951 | — | 3,951 | — | |||||||||||||||||||
| Factory closures | 306 | 1,621 | 3,778 | 4,709 | |||||||||||||||||||
| Business realignment costs | 412 | 1,755 | 1,470 | 2,831 | |||||||||||||||||||
| Insurance recovery legal costs | — | 160 | 229 | 585 | |||||||||||||||||||
| Loss on sales of businesses | — | — | — | 176 | |||||||||||||||||||
| Insurance settlement | — | (15) | — | (382) | |||||||||||||||||||
| Gain on sale of building | — | — | (2,638) | — | |||||||||||||||||||
| Non-GAAP adjusted income from operations | $ | 18,868 | $ | 20,185 | $ | 49,045 | $ | 97,743 | |||||||||||||||
| Sales | $ | 186,235 | $ | 189,486 | $ | 649,642 | $ | 809,162 | |||||||||||||||
| Operating margin - GAAP | 7.6 | % | 8.8 | % | 6.5 | % | 11.1 | % | |||||||||||||||
| Adjusted operating margin - Non-GAAP | 10.1 | % | 10.7 | % | 7.5 | % | 12.1 | % | |||||||||||||||
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 Financial Results for Fourth Quarter Fiscal Year 2021
Page 12 of 13
May 26, 2021
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 March 31, | Year Ended March 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| GAAP net income | $ | 9,585 | $ | 9,244 | $ | 9,106 | $ | 59,672 | |||||||||||||||
| Add back (deduct): | |||||||||||||||||||||||
| Non-cash pension settlement expense | — | — | 19,046 | — | |||||||||||||||||||
| Acquisition deal costs | 3,951 | — | 3,951 | — | |||||||||||||||||||
| Factory closures | 306 | 1,621 | 3,778 | 4,709 | |||||||||||||||||||
| Business realignment costs | 412 | 1,755 | 1,470 | 2,831 | |||||||||||||||||||
| Insurance recovery legal costs | — | 160 | 229 | 585 | |||||||||||||||||||
| Loss on sales of businesses | — | — | — | 176 | |||||||||||||||||||
| Insurance settlement | — | (15) | — | (382) | |||||||||||||||||||
| Gain on sale of building | — | — | (2,638) | — | |||||||||||||||||||
Normalize tax rate to 22% (1) | (2,074) | 1,050 | (6,931) | (1,232) | |||||||||||||||||||
| Non-GAAP adjusted net income | $ | 12,180 | $ | 13,815 | $ | 28,011 | $ | 66,359 | |||||||||||||||
| Average diluted shares outstanding | 24,384 | 23,938 | 24,173 | 23,855 | |||||||||||||||||||
| Diluted income per share - GAAP | $ | 0.39 | $ | 0.39 | $ | 0.38 | $ | 2.50 | |||||||||||||||
| Diluted income per share - Non-GAAP | $ | 0.50 | $ | 0.58 | $ | 1.16 | $ | 2.78 | |||||||||||||||
(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 Reports Financial Results for Fourth Quarter Fiscal Year 2021
Page 13 of 13
May 26, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| GAAP net income | $ | 9,585 | $ | 9,244 | $ | 9,106 | $ | 59,672 | |||||||||||||||
| Add back (deduct): | |||||||||||||||||||||||
| Income tax expense (benefit) | 1,362 | 4,947 | 970 | 17,484 | |||||||||||||||||||
| Interest and debt expense | 2,889 | 3,200 | 12,081 | 14,234 | |||||||||||||||||||
| Investment (income) loss | (264) | 48 | (1,693) | (891) | |||||||||||||||||||
| Foreign currency exchange (gain) loss | (142) | (996) | 941 | (1,514) | |||||||||||||||||||
| Other (income) expense, net | 769 | 221 | 20,850 | 839 | |||||||||||||||||||
| Depreciation and amortization expense | 6,950 | 7,135 | 28,153 | 29,126 | |||||||||||||||||||
| Acquisition deal costs | 3,951 | — | 3,951 | — | |||||||||||||||||||
| Factory closures | 306 | 1,621 | 3,778 | 4,709 | |||||||||||||||||||
| Business realignment costs | 412 | 1,755 | 1,470 | 2,831 | |||||||||||||||||||
| Insurance recovery legal costs | — | 160 | 229 | 585 | |||||||||||||||||||
| Loss on sales of businesses | — | — | — | 176 | |||||||||||||||||||
| Insurance settlement | — | (15) | — | (382) | |||||||||||||||||||
| Gain on sale of building | — | — | (2,638) | — | |||||||||||||||||||
| Non-GAAP adjusted EBITDA | $ | 25,818 | $ | 27,320 | $ | 77,198 | $ | 126,869 | |||||||||||||||
| Sales | $ | 186,235 | $ | 189,486 | $ | 649,642 | $ | 809,162 | |||||||||||||||
| Net income margin - GAAP | 5.1 | % | 4.9 | % | 1.4 | % | 7.4 | % | |||||||||||||||
| Adjusted EBITDA margin - Non-GAAP | 13.9 | % | 14.4 | % | 11.9 | % | 15.7 | % | |||||||||||||||
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.