AMHERST, N.Y.--(BUSINESS WIRE)--
Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer,
manufacturer and marketer of material handling products, technologies
and services, today announced financial results for its fiscal year 2018
second quarter, which ended September 30, 2017. Fiscal year 2018 second
quarter and year to date results include the January 31, 2017
acquisition of STAHL CraneSystems ("STAHL").
Second Quarter Highlights (compared with prior-year period)
-
Sales for the quarter were up 40% to $212.8 million, including
$45.8 million from STAHL; after adjusting for FX impact, organic sales
increased 8.5%
-
Net income increased 84% to $12.5 million, or $0.54 per diluted
share; adjusted net income per diluted share grew 28% to $0.51
-
Cash flow from operating activities was $20.3 million; paid down
$16.3 million in borrowings in quarter
-
Debt repayment ahead of schedule: $30 million paid down in first
half FY2018; Raising debt repayment expectation to $55 million from
original goal of $45 million to $50 million
Mark D. Morelli, President and CEO of Columbus McKinnon commented, "We
had another solid quarter demonstrated by strong sales and net income.
The success of deploying our operating system was evident in the
quarter. It provided the necessary roadmaps to achieve our results. In
fact, organic sales growth for the quarter of 8.5% outpaced our
expectations. The year-over-year growth was the result of robust demand
in the U.S. and Latin America driven by healthy end markets,
particularly entertainment, construction and government. The rebound in
the mining industry is beginning to drive demand for our products,
especially our Magnetek digital power and motion control technologies.
We also had solid volume expansion in EMEA as the industrial environment
has been improving. Notably, STAHL continues to prove its value with
strong sales, profit margins and cash generation. We believe the demand
for STAHL crane technologies is the result of the value they provide
through custom-engineered products for engineering firms."
Sales
|
|
|
($ in millions)
|
|
|
|
Q2 FY 18
|
|
Q2 FY 17
|
|
Change
|
|
% Change
|
|
|
Net sales
|
|
|
|
$
|
212.8
|
|
|
$
|
151.9
|
|
|
$
|
60.9
|
|
|
40.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. sales
|
|
|
|
$
|
112.7
|
|
|
$
|
98.3
|
|
|
$
|
14.4
|
|
|
14.6
|
%
|
|
|
% of total
|
|
|
|
53
|
%
|
|
65
|
%
|
|
|
|
|
|
|
Non-U.S. sales
|
|
|
|
$
|
100.1
|
|
|
$
|
53.6
|
|
|
$
|
46.5
|
|
|
86.8
|
%
|
|
|
% of total
|
|
|
|
47
|
%
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STAHL's U.S. and non-U.S. sales were $5.0 million and $40.8 million,
respectively. Volume improvement was realized in the U.S., Canada, EMEA,
and Latin America. Sales in Europe, excluding STAHL, were up $3.8
million, including a $1.8 million benefit from foreign currency
translation.
|
|
|
($ in millions)
|
|
|
|
Q2 FY 18
|
|
Q2 FY 17
|
|
Change
|
|
% Change
|
|
|
Gross profit
|
|
|
|
$
|
71.6
|
|
|
$
|
49.7
|
|
|
$
|
21.9
|
|
44.0
|
%
|
|
|
Gross margin
|
|
|
|
33.7
|
%
|
|
32.7
|
%
|
|
100 bps
|
|
|
|
|
Income from operations
|
|
|
|
$
|
19.6
|
|
|
$
|
12.6
|
|
|
$
|
7.0
|
|
55.2
|
%
|
|
|
Operating margin
|
|
|
|
9.2
|
%
|
|
8.3
|
%
|
|
90 bps
|
|
|
|
|
Net income
|
|
|
|
$
|
12.5
|
|
|
$
|
6.8
|
|
|
$
|
5.7
|
|
83.5
|
%
|
|
|
Diluted EPS
|
|
|
|
$
|
0.54
|
|
|
$
|
0.33
|
|
|
$
|
0.21
|
|
63.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STAHL contributed $16.8 million to gross profit, which was 36.7% of
STAHL sales. For more information on changes in gross profit, please
see the attached tables.
Income from operations was $19.6 million. Adjusted income from
operations was $20.2 million, which was up $7.6 million from the prior
year. Excluding integration costs, STAHL contributed $5.5 million to
income from operations, which was 11.9% of STAHL sales. Please see
the attached tables for a reconciliation of GAAP income from operations
to adjusted income from operations.
The effective tax rate for the quarter was 14% and was lower than the
Company's previous guidance as a result of a new U.S. GAAP accounting
standard impacting the tax accounting treatment of equity compensation.
Given this change and subject to the variances of income by taxable
jurisdiction, the Company now expects the effective tax rate for fiscal
2018 to be in the 18% to 22% range, excluding any additional changes to
current tax regulations.
Net income was $12.5 million. Adjusted net income was $11.9 million,
which excludes STAHL integration costs, costs for a legal action against
prior product liability insurance carriers, an insurance settlement and
litigation costs for a former subsidiary of Magnetek. Please see the
attached tables for a reconciliation of GAAP net income and earnings per
share to adjusted net income and earnings per share.
Generating Cash and Reducing Debt
Cash generated from operating activities in the second quarter was $20.3
million. Working capital as a percentage of sales was down to 18.5%
compared with 21.2% one year earlier. Please see the attached
additional data table for further details.
Total debt was $392.3 million at September 30, 2017 compared with $421.3
million at March 31, 2017. Net debt to net total capitalization at
September 30, 2017 was 45.5%, compared with 48.5% at June 30, 2017 and
50.2% at March 31, 2017. The Company expects to reduce debt by
approximately $55 million in fiscal 2018 and achieve a net debt to
EBITDA ratio below 3x by the end of the fiscal year.
Gregory P. Rustowicz, Vice President - Finance and Chief Financial
Officer, commented, "We had good operating profits and margin, although
mix and higher annual incentive costs dampened our typical operating
leverage potential. Importantly, we are generating excellent levels of
cash and are reducing our debt more quickly than originally planned.
De-levering our balance sheet provides us greater flexibility to move
forward our strategy of becoming an industrial technology company."
Capital expenditures for the quarter ended September 30, 2017 were $4.2
million and were $6.1 million for the first half of fiscal 2018. The
Company expects capital expenditures for fiscal 2018 to be in the range
of $15 million to 20 million, lower than previous expectations as
Columbus McKinnon evaluates the priorities for its use of capital.
Fiscal Year 2018 Outlook
Backlog was $162.7 million as of September 30, 2017, a decrease of $10.6
million compared with June 30, 2017. The decline was primarily related
to seasonally slower order intake and the timing of shipments by STAHL.
Mr. Morelli concluded, "While our third quarter tends to be seasonally
soft, we still expect organic growth of approximately 3% to 5%. Stahl is
expected to have weaker sales sequentially due to seasonality and fewer
shipping days. The trajectory for the business remains strong and we
continue to expect fiscal 2018 to be a very good year. We are
aggressively working on identifying action plans for reallocating
spending from general & administrative expenses to growth initiatives
such as research & development to further our efforts to evolve into a
high-performing industrial technology company."
Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at
10:00 AM Eastern Time, at which Mark D. Morelli, President and Chief
Executive Officer, and Gregory P. Rustowicz, Vice President - Finance
and Chief Financial Officer, 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 www.cmworks.com/investors.
A question and answer session will follow the formal discussion.
The conference call can be accessed by dialing 201-493-6780 and asking
for the "Columbus McKinnon conference call." The webcast can be
monitored at www.cmworks.com/investors.
An audio recording will be available from 1:00 PM Eastern Time on the
day of the call through Tuesday, November 7, 2017 by dialing
412-317-6671 and entering the passcode 13671705. 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 material handling products, technologies, systems and
services, which efficiently and ergonomically move, lift, position and
secure materials. Key products include hoists, cranes, actuators,
rigging tools, light rail work stations 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 http://www.cmworks.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
revenue 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 general 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 effect
of operating leverage, the pace of bookings relative to shipments, the
ability to expand into new markets and geographic regions, the success
in acquiring new business, the speed at which shipments improve, the
effectiveness of new products 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
|
|
|
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
Change
|
| Net sales
|
|
|
$
|
212,828
|
|
|
$
|
151,925
|
|
|
40.1
|
%
|
| Cost of products sold
|
|
|
141,209
|
|
|
102,196
|
|
|
38.2
|
%
|
| Gross profit
|
|
|
71,619
|
|
|
49,729
|
|
|
44.0
|
%
|
|
Gross profit margin
|
|
|
33.7
|
%
|
|
32.7
|
%
|
|
|
| Selling expenses
|
|
|
25,042
|
|
|
19,032
|
|
|
31.6
|
%
|
|
% of net sales
|
|
|
11.8
|
%
|
|
12.5
|
%
|
|
|
| General and administrative expenses
|
|
|
19,347
|
|
|
13,831
|
|
|
39.9
|
%
|
|
% of net sales
|
|
|
9.1
|
%
|
|
9.1
|
%
|
|
|
| Research and development expenses
|
|
|
3,723
|
|
|
2,482
|
|
|
50.0
|
%
|
|
% of net sales
|
|
|
1.7
|
%
|
|
1.6
|
%
|
|
|
| Amortization of intangibles
|
|
|
3,920
|
|
|
1,765
|
|
|
122.1
|
%
|
| Income from operations
|
|
|
19,587
|
|
|
12,619
|
|
|
55.2
|
%
|
|
Operating margin
|
|
|
9.2
|
%
|
|
8.3
|
%
|
|
|
| Interest and debt expense
|
|
|
5,067
|
|
|
2,525
|
|
|
100.7
|
%
|
| Investment (income) loss
|
|
|
(46
|
)
|
|
(88
|
)
|
|
(47.7
|
)%
|
| Foreign currency exchange loss (gain)
|
|
|
69
|
|
|
(220
|
)
|
|
NM
|
| Other (income) expense, net
|
|
|
(61
|
)
|
|
(48
|
)
|
|
27.1
|
%
|
| Income before income tax expense
|
|
|
14,558
|
|
|
10,450
|
|
|
39.3
|
%
|
| Income tax expense
|
|
|
2,050
|
|
|
3,634
|
|
|
(43.6
|
)%
|
| Net income
|
|
|
$
|
12,508
|
|
|
$
|
6,816
|
|
|
83.5
|
%
|
|
|
|
|
|
|
|
|
| Average basic shares outstanding
|
|
|
22,746
|
|
|
20,202
|
|
|
12.6
|
%
|
| Basic income per share
|
|
|
$
|
0.55
|
|
|
$
|
0.34
|
|
|
61.8
|
%
|
|
|
|
|
|
|
|
|
| Average diluted shares outstanding
|
|
|
23,142
|
|
|
20,368
|
|
|
13.6
|
%
|
| Diluted income per share
|
|
|
$
|
0.54
|
|
|
$
|
0.33
|
|
|
63.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
Change
|
| Net sales
|
|
|
$
|
416,554
|
|
|
$
|
300,938
|
|
|
38.4
|
%
|
| Cost of products sold
|
|
|
275,627
|
|
|
203,162
|
|
|
35.7
|
%
|
| Gross profit
|
|
|
140,927
|
|
|
97,776
|
|
|
44.1
|
%
|
|
Gross profit margin
|
|
|
33.8
|
%
|
|
32.5
|
%
|
|
|
| Selling expenses
|
|
|
48,842
|
|
|
37,846
|
|
|
29.1
|
%
|
|
% of net sales
|
|
|
11.7
|
%
|
|
12.6
|
%
|
|
|
| General and administrative expenses
|
|
|
38,199
|
|
|
27,614
|
|
|
38.3
|
%
|
|
% of net sales
|
|
|
9.2
|
%
|
|
9.2
|
%
|
|
|
| Research and development expenses
|
|
|
6,645
|
|
|
4,981
|
|
|
33.4
|
%
|
|
% of net sales
|
|
|
1.6
|
%
|
|
1.7
|
%
|
|
|
| Amortization of intangibles
|
|
|
7,639
|
|
|
3,515
|
|
|
117.3
|
%
|
| Income from operations
|
|
|
39,602
|
|
|
23,820
|
|
|
66.3
|
%
|
|
Operating margin
|
|
|
9.5
|
%
|
|
7.9
|
%
|
|
|
| Interest and debt expense
|
|
|
10,208
|
|
|
5,099
|
|
|
100.2
|
%
|
| Investment (income) loss
|
|
|
(108
|
)
|
|
(305
|
)
|
|
(64.6
|
)%
|
| Foreign currency exchange loss (gain)
|
|
|
393
|
|
|
(783
|
)
|
|
NM
|
| Other (income) expense, net
|
|
|
(200
|
)
|
|
(128
|
)
|
|
56.3
|
%
|
| Income before income tax expense
|
|
|
29,309
|
|
|
19,937
|
|
|
47.0
|
%
|
| Income tax expense
|
|
|
5,145
|
|
|
6,720
|
|
|
(23.4
|
)%
|
| Net income
|
|
|
$
|
24,164
|
|
|
$
|
13,217
|
|
|
82.8
|
%
|
|
|
|
|
|
|
|
|
| Average basic shares outstanding
|
|
|
22,663
|
|
|
20,169
|
|
|
12.4
|
%
|
| Basic income per share
|
|
|
$
|
1.07
|
|
|
$
|
0.66
|
|
|
62.1
|
%
|
|
|
|
|
|
|
|
|
| Average diluted shares outstanding
|
|
|
23,013
|
|
|
20,325
|
|
|
13.2
|
%
|
| Diluted income per share
|
|
|
$
|
1.05
|
|
|
$
|
0.65
|
|
|
61.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
March 31,
2017
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
| Current assets:
|
|
|
|
|
|
| Cash and cash equivalents
|
|
|
$
|
69,455
|
|
|
$
|
77,591
|
|
| Trade accounts receivable
|
|
|
126,408
|
|
|
111,569
|
|
| Inventories
|
|
|
139,332
|
|
|
130,643
|
|
| Prepaid expenses and other
|
|
|
16,766
|
|
|
21,147
|
|
| Total current assets
|
|
|
351,961
|
|
|
340,950
|
|
|
|
|
|
|
|
| Property, plant, and equipment, net
|
|
|
113,104
|
|
|
113,028
|
|
| Goodwill
|
|
|
338,238
|
|
|
319,299
|
|
| Other intangibles, net
|
|
|
264,748
|
|
|
256,183
|
|
| Marketable securities
|
|
|
8,064
|
|
|
7,686
|
|
| Deferred taxes on income
|
|
|
57,120
|
|
|
61,857
|
|
| Other assets
|
|
|
12,436
|
|
|
14,840
|
|
|
Total assets
|
|
|
$
|
1,145,671
|
|
|
$
|
1,113,843
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
| Current liabilities:
|
|
|
|
|
|
| Trade accounts payable
|
|
|
$
|
41,954
|
|
|
$
|
40,994
|
|
| Accrued liabilities
|
|
|
88,117
|
|
|
97,397
|
|
| Current portion of long-term debt
|
|
|
49,710
|
|
|
52,568
|
|
| Total current liabilities
|
|
|
179,781
|
|
|
190,959
|
|
|
|
|
|
|
|
| Senior debt, less current portion
|
|
|
22
|
|
|
41
|
|
| Term loan and revolving credit facility
|
|
|
342,518
|
|
|
368,710
|
|
| Other non-current liabilities
|
|
|
236,551
|
|
|
212,783
|
|
| Total liabilities
|
|
|
758,872
|
|
|
772,493
|
|
|
|
|
|
|
|
| Shareholders' equity:
|
|
|
|
|
|
| Common stock
|
|
|
230
|
|
|
226
|
|
| Additional paid-in capital
|
|
|
266,119
|
|
|
258,853
|
|
| Retained earnings
|
|
|
202,989
|
|
|
179,735
|
|
| Accumulated other comprehensive loss
|
|
|
(82,539
|
)
|
|
(97,464
|
)
|
| Total shareholders' equity
|
|
|
386,799
|
|
|
341,350
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
1,145,671
|
|
|
$
|
1,113,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
|
|
|
|
|
|
|
Six Months Ended
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
Operating activities:
|
|
|
|
|
|
| Net income
|
|
$
|
24,164
|
|
|
$
|
13,217
|
|
| Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
| Depreciation and amortization
|
|
17,755
|
|
|
11,928
|
|
| Deferred income taxes and related valuation allowance
|
|
2,635
|
|
|
2,075
|
|
| Net gain on sale of real estate, investments, and other
|
|
(2)
|
|
|
(115
|
)
|
| Stock based compensation
|
|
2,951
|
|
|
2,539
|
|
| Amortization of deferred financing costs and discount on debt
|
|
1,327
|
|
|
344
|
|
| Changes in operating assets and liabilities, net of effects of
business acquisitions:
|
|
|
|
|
|
| Trade accounts receivable
|
|
(10,098
|
)
|
|
3,049
|
|
| Inventories
|
|
(2,230
|
)
|
|
1,152
|
|
| Prepaid expenses and other
|
|
916
|
|
|
5,102
|
|
| Other assets
|
|
2,463
|
|
|
(227
|
)
|
| Trade accounts payable
|
|
(307
|
)
|
|
(3,112
|
)
|
| Accrued liabilities
|
|
3,452
|
|
|
(2,801
|
)
|
| Non-current liabilities
|
|
(8,243
|
)
|
|
(7,502
|
)
|
| Net cash provided by operating activities
|
|
34,783
|
|
|
25,649
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
| Proceeds from sales of marketable securities
|
|
138
|
|
|
9,192
|
|
| Purchases of marketable securities
|
|
(225
|
)
|
|
(207
|
)
|
| Capital expenditures
|
|
(6,082
|
)
|
|
(8,450
|
)
|
| Net payments to former STAHL owner
|
|
(14,750
|
)
|
|
—
|
|
| Purchase of business, net of cash acquired
|
|
—
|
|
|
(587
|
)
|
| Net cash provided by (used for) investing activities
|
|
(20,919
|
)
|
|
(52
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
| Proceeds from exercises of stock options
|
|
5,594
|
|
|
139
|
|
| Net borrowings (repayments) under lines of credit
|
|
—
|
|
|
(21,000
|
)
|
| Repayment of debt
|
|
(30,131
|
)
|
|
(6,550
|
)
|
| Restricted cash related to purchase of business
|
|
—
|
|
|
(588
|
)
|
| Payment of dividends
|
|
(1,814
|
)
|
|
(1,611
|
)
|
| Other
|
|
(1,277
|
)
|
|
(541
|
)
|
| Net cash provided by (used for) financing activities
|
|
(27,628
|
)
|
|
(30,151
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
5,628
|
|
|
(1,344
|
)
|
|
|
|
|
|
|
| Net change in cash and cash equivalents
|
|
(8,136
|
)
|
|
(5,898
|
)
|
| Cash and cash equivalents at beginning of year
|
|
77,591
|
|
|
51,603
|
|
| Cash and cash equivalents at end of period
|
|
$
|
69,455
|
|
|
$
|
45,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Q2 FY 2018 Sales Bridge
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
Year to Date
|
|
($ in millions)
|
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|
Fiscal 2017 Sales
|
|
|
$
|
151.9
|
|
|
|
|
$
|
300.9
|
|
|
|
| STAHL acquisition
|
|
|
45.8
|
|
|
30.2
|
%
|
|
88.5
|
|
|
29.4
|
%
|
| Volume
|
|
|
12.2
|
|
|
8.0
|
%
|
|
24.5
|
|
|
8.1
|
%
|
| Pricing
|
|
|
0.7
|
|
|
0.5
|
%
|
|
1.3
|
|
|
0.4
|
%
|
| Foreign currency translation
|
|
|
2.2
|
|
|
1.4
|
%
|
|
1.4
|
|
|
0.5
|
%
|
|
Total change
|
|
|
$
|
60.9
|
|
|
40.1
|
%
|
|
$
|
115.7
|
|
|
38.4
|
%
|
|
Fiscal 2018 Sales
|
|
|
$
|
212.8
|
|
|
|
|
$
|
416.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Q2 FY 2018 Gross Profit Bridge
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
Second Quarter
|
|
Year to Date
|
|
Fiscal 2017 Gross Profit
|
|
|
|
$
|
49.7
|
|
|
$
|
97.8
|
|
| STAHL acquisition
|
|
|
|
16.8
|
|
|
32.5
|
|
| Sales volume and mix
|
|
|
|
3.7
|
|
|
7.4
|
|
| Insurance settlement
|
|
|
|
1.7
|
|
|
1.7
|
|
| Foreign currency translation
|
|
|
|
0.6
|
|
|
0.4
|
|
| Pricing, net of material cost inflation
|
|
|
|
0.5
|
|
|
0.9
|
|
| Product liability
|
|
|
|
0.4
|
|
|
0.9
|
|
| STAHL integration costs
|
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
| Productivity, net of other cost changes
|
|
|
|
(1.7
|
)
|
|
(0.5
|
)
|
|
Total change
|
|
|
|
$
|
21.9
|
|
|
$
|
43.1
|
|
|
Fiscal 2018 Gross Profit
|
|
|
|
$
|
71.6
|
|
|
$
|
140.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
March 31,
2017
|
|
September 30,
2016
|
| ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
$
|
162.7
|
|
|
|
$
|
154.5
|
|
|
|
$
|
107.1
|
|
|
|
Backlog (excluding STAHL)
|
|
$
|
112.6
|
|
|
|
$
|
107.7
|
|
|
|
$
|
107.1
|
|
|
|
Long-term backlog (expected to ship beyond 3 months)
|
|
$
|
64.8
|
|
|
|
$
|
53.5
|
|
|
|
$
|
46.3
|
|
|
|
Long-term backlog as % of total backlog
|
|
39.8
|
|
%
|
|
34.6
|
|
%
|
|
43.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable (2)
|
|
|
|
|
|
|
|
|
|
| Days sales outstanding
|
|
54.0
|
|
days
|
|
46.2
|
|
days
|
|
48.1
|
|
days
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns per year (2)
|
|
|
|
|
|
|
|
|
|
| (based on cost of products sold)
|
|
4.1
|
|
turns
|
|
4.1
|
|
turns
|
|
3.5
|
|
turns
|
|
Days' inventory (2)
|
|
89.0
|
|
days
|
|
89.0
|
|
days
|
|
103.7
|
|
days
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
|
|
|
|
|
|
|
| Days payables outstanding (2)
|
|
27.0
|
|
days
|
|
28.3
|
|
days
|
|
27.7
|
|
days
|
|
|
|
|
|
|
|
|
|
|
|
Working capital as a % of sales (1) (2)
|
|
18.5
|
|
%
|
|
18.6
|
|
%
|
|
21.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Debt to total capitalization percentage
|
|
50.3
|
|
%
|
|
55.2
|
|
%
|
|
44.5
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net of cash, to net total capitalization
|
|
45.5
|
|
%
|
|
50.2
|
|
%
|
|
39.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) September 30, 2017 and March 31, 2017 figures exclude the impact
of the acquisition of STAHL.
|
| (2) March 31, 2017 figures exclude the impact of the acquisition of
STAHL.
|
|
|
|
|
|
U.S. Shipping Days by Quarter
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
|
FY 18
|
|
|
63
|
|
62
|
|
60
|
|
63
|
|
248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 17
|
|
|
64
|
|
63
|
|
60
|
|
64
|
|
251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross
Profit and Margin
($ in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Year to Date
September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Gross profit
|
|
$
|
71,619
|
|
|
$
|
49,729
|
|
|
$
|
140,927
|
|
|
$
|
97,776
|
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
|
|
Insurance settlement
|
|
(1,741
|
)
|
|
—
|
|
|
(1,741
|
)
|
|
—
|
|
|
STAHL integration costs
|
|
52
|
|
|
—
|
|
|
221
|
|
|
—
|
|
|
Non-GAAP adjusted gross profit
|
|
$
|
69,930
|
|
|
$
|
49,729
|
|
|
$
|
139,407
|
|
|
$
|
97,776
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
212,828
|
|
|
$
|
151,925
|
|
|
$
|
416,554
|
|
|
$
|
300,938
|
|
|
Adjusted gross margin
|
|
32.9
|
%
|
|
32.7
|
%
|
|
33.5
|
%
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 to the measure
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 gross profit to the historical period's gross profit, 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 Income from Operations to
Non-GAAP Adjusted Income from Operations and Operating Margin
($ in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Year to Date
September 30, 2017
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Income from operations
|
|
$
|
19,587
|
|
|
$
|
12,619
|
|
|
$
|
39,602
|
|
|
$
|
23,820
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
STAHL integration costs
|
|
669
|
|
|
—
|
|
|
1,840
|
|
|
—
|
|
|
Insurance recovery legal costs
|
|
1,323
|
|
|
—
|
|
|
1,552
|
|
|
—
|
|
|
Magnetek litigation
|
|
400
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|
Insurance settlement
|
|
(1,741
|
)
|
|
—
|
|
|
(1,741
|
)
|
|
—
|
|
|
Canadian pension lump sum settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247
|
|
|
Non-GAAP adjusted income from operations
|
|
$
|
20,238
|
|
|
$
|
12,619
|
|
|
$
|
41,653
|
|
|
$
|
24,067
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
212,828
|
|
|
$
|
151,925
|
|
|
$
|
416,554
|
|
|
$
|
300,938
|
|
|
Adjusted operating margin
|
|
9.5
|
%
|
|
8.3
|
%
|
|
10.0
|
%
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations is defined as income from operations as
reported, adjusted for certain items and to apply a normalized tax rate.
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 to 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 net income and
diluted EPS 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)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Year to Date
September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
|
|
$
|
12,508
|
|
|
$
|
6,816
|
|
|
$
|
24,164
|
|
|
$
|
13,217
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
STAHL integration costs
|
|
669
|
|
|
—
|
|
|
1,840
|
|
|
—
|
|
Insurance recovery legal costs
|
|
1,323
|
|
|
—
|
|
|
1,552
|
|
|
—
|
|
Magnetek litigation
|
|
400
|
|
|
—
|
|
|
400
|
|
|
—
|
|
Insurance settlement
|
|
(1,741
|
)
|
|
—
|
|
|
(1,741
|
)
|
|
—
|
|
Canadian pension lump sum settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247
|
|
Normalize tax rate to 22% (1)
|
|
(1,296
|
)
|
|
1,335
|
|
|
(1,754
|
)
|
|
2,280
|
|
Non-GAAP adjusted net income
|
|
$
|
11,863
|
|
|
$
|
8,151
|
|
|
$
|
24,461
|
|
|
$
|
15,744
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding
|
|
23,142
|
|
|
20,368
|
|
|
23,013
|
|
|
20,325
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share - GAAP
|
|
$
|
0.54
|
|
|
$
|
0.33
|
|
|
$
|
1.05
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share - Non-GAAP
|
|
$
|
0.51
|
|
|
$
|
0.40
|
|
|
$
|
1.06
|
|
|
$
|
0.77
|
|
(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 to apply 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.