BUFFALO, N.Y.--(BUSINESS WIRE)--
Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer,
manufacturer and marketer of motion control products, technologies and
services for material handling, today announced financial results for
its fiscal year 2019 first quarter, which ended June 30, 2018.
First Quarter Highlights (compared with prior-year period)
-
Delivered strong results demonstrating progress with Blueprint
2021 strategy to improve earnings power
-
Achieved record gross margin of 35.4% driven by volume and
productivity
-
Operating margin was 6.0%; Adjusted operating margin expanded
150 basis points to 11.8%, excluding $11.1 million held for sale
impairment charge and $1.9 million of integration costs
-
Net income was $7.7 million; adjusted net income increased 39%
to $17.5 million; earnings per diluted share was $0.33, or $0.74 on an
adjusted basis
-
Achieved record quarterly sales of $225.0 million; excluding
foreign currency impact, sales increased 7.8%
Mark Morelli, President and CEO of Columbus McKinnon, commented, “We
delivered another strong quarter which we believe demonstrates that we
are on the right path with our Blueprint 2021 strategy. We are
successfully driving margin expansion and improving earnings power. We
are still in the early stages of Phase II of our strategy, and we are
encouraged that the enhancements we are making will be sustainable
throughout economic cycles.”
He added, “In line with our strategy to simplify our business, we have
initiated the divestiture of three businesses. This includes our Tire
Shredder business, our crane builder business, Crane Equipment and
Service Inc., and Stahlhammer Bommern GmbH, which was acquired in 2014.”
The Company recorded a held for sale impairment charge of $11.1 million
as it considers strategic alternatives for these businesses. These
businesses contributed approximately $38 million of sales and $1 million
of operating income in Fiscal 2018.
Mr. Morelli concluded, “Markets remain strong and our bidding pipeline
is robust. In fact, project orders are being pushed out as customers
address schedules and staffing challenges. We are also advancing our
Phase II efforts to focus on profitable revenue. As a result, we plan to
shed an estimated 1% of revenue in the second quarter that will provide
gross margin expansion. Given our focus on quality revenue and the
timing of projects, we believe second quarter revenue will grow about 2%
to 3%. And, while research, selling, and general and administrative
expenses are expected to be approximately $48 to $49 million in the
quarter, we believe the impact of our Phase II efforts will drive
year-over-year margin expansion.”
First Quarter Fiscal 2019 Sales
|
($ in millions)
|
|
|
|
Q1 FY 19
|
|
Q1 FY 18
|
|
Change
|
|
% Change
|
|
Net sales
|
|
|
|
$
|
225.0
|
|
|
$
|
203.7
|
|
|
$
|
21.3
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. sales
|
|
|
|
$
|
119.8
|
|
|
$
|
110.7
|
|
|
$
|
9.1
|
|
|
8.2
|
%
|
|
% of total
|
|
|
|
53
|
%
|
|
54
|
%
|
|
|
|
|
|
Non-U.S. sales
|
|
|
|
$
|
105.2
|
|
|
$
|
93.0
|
|
|
$
|
12.2
|
|
|
13.1
|
%
|
|
% of total
|
|
|
|
47
|
%
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume drove growth in the U.S. and EMEA. Excluding the effect of
foreign currency translation, non-U.S. sales were up 7.5%.
First Quarter Fiscal 2019 Operating Results
|
($ in millions)
|
|
|
|
Q1 FY 19
|
|
Q1 FY 18
|
|
Change
|
|
% Change
|
|
Gross profit
|
|
|
|
$
|
79.6
|
|
|
$
|
69.0
|
|
|
$
|
10.7
|
|
|
15.4
|
%
|
|
Gross margin
|
|
|
|
35.4
|
%
|
|
33.9
|
%
|
|
150 bps
|
|
|
|
Income from operations
|
|
|
|
$
|
13.5
|
|
|
$
|
19.6
|
|
|
$
|
(6.1
|
)
|
|
(31.1
|
)%
|
|
Operating margin
|
|
|
|
6.0
|
%
|
|
9.6
|
%
|
|
(360) bps
|
|
|
|
Net income
|
|
|
|
$
|
7.7
|
|
|
$
|
11.7
|
|
|
$
|
(4.0
|
)
|
|
(33.9
|
)%
|
|
Diluted EPS
|
|
|
|
$
|
0.33
|
|
|
$
|
0.51
|
|
|
$
|
(0.18
|
)
|
|
(35.3
|
)%
|
|
Adjusted EBITDA *
|
|
|
|
$
|
35.3
|
|
|
$
|
29.7
|
|
|
$
|
5.7
|
|
|
19.2
|
%
|
|
Adjusted EBITDA margin
|
|
|
|
15.7
|
%
|
|
14.6
|
%
|
|
110 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*A non-GAAP measure, Adjusted EBITDA is defined as adjusted operating
income plus depreciation and amortization. Please see the attached
tables for a reconciliation of Adjusted EBITDA to GAAP net income.
Record gross profit and margin were largely the result of higher volume
and improved productivity. For more information on changes in gross
profit, please see the table on page 7 of this release. Excluding an
$11.1 million impairment charge and $1.9 million in STAHL integration
costs, adjusted income from operations was $26.5 million, a $5.5
million, or 26% increase. Adjusted operating margin was 11.8% compared
with 10.3% in the first quarter of fiscal 2018. Please see the
reconciliation of GAAP income from operations to adjusted income from
operations on page 9 of this release.
Adjusted net income for the quarter was $17.5 million, or $0.74 per
diluted share, compared with $12.6 million, or $0.55 per diluted share,
in the prior-year period. Adjusted EBITDA margin achieved a record level
of 15.7%. Please see the reconciliation of GAAP net income and
earnings per share to adjusted net income and earnings per share on page
10 of this release.
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 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, August 7, 2018 by dialing 412-317-6671
and entering the passcode 13680955. 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 motion control products, technologies, systems and services
that 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
|
|
|
|
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
Change
|
|
Net sales
|
|
|
|
$
|
224,992
|
|
|
$
|
203,726
|
|
|
10.4
|
%
|
|
Cost of products sold
|
|
|
|
145,345
|
|
|
134,737
|
|
|
7.9
|
%
|
|
Gross profit
|
|
|
|
79,647
|
|
|
68,989
|
|
|
15.4
|
%
|
|
Gross profit margin
|
|
|
|
35.4
|
%
|
|
33.9
|
%
|
|
|
|
Selling expenses
|
|
|
|
25,567
|
|
|
23,800
|
|
|
7.4
|
%
|
|
% of net sales
|
|
|
|
11.4
|
%
|
|
11.7
|
%
|
|
|
|
General and administrative expenses
|
|
|
|
21,826
|
|
|
18,953
|
|
|
15.2
|
%
|
|
% of net sales
|
|
|
|
9.7
|
%
|
|
9.3
|
%
|
|
|
|
Research and development expenses
|
|
|
|
3,748
|
|
|
2,922
|
|
|
28.3
|
%
|
|
% of net sales
|
|
|
|
1.7
|
%
|
|
1.4
|
%
|
|
|
|
Held for sale impairment
|
|
|
|
11,100
|
|
|
—
|
|
|
NM
|
|
Amortization of intangibles
|
|
|
|
3,903
|
|
|
3,719
|
|
|
4.9
|
%
|
|
Income from operations
|
|
|
|
13,503
|
|
|
19,595
|
|
|
(31.1
|
)%
|
|
Operating margin
|
|
|
|
6.0
|
%
|
|
9.6
|
%
|
|
|
|
Interest and debt expense
|
|
|
|
4,607
|
|
|
5,141
|
|
|
(10.4
|
)%
|
|
Investment (income) loss, net
|
|
|
|
(268
|
)
|
|
(62
|
)
|
|
332.3
|
%
|
|
Foreign currency exchange (gain) loss
|
|
|
|
(276
|
)
|
|
324
|
|
|
NM
|
|
Other (income) expense, net
|
|
|
|
(40
|
)
|
|
(559
|
)
|
|
(92.8
|
)%
|
|
Income before income tax expense
|
|
|
|
9,480
|
|
|
14,751
|
|
|
(35.7
|
)%
|
|
Income tax expense
|
|
|
|
1,774
|
|
|
3,095
|
|
|
(42.7
|
)%
|
|
Net income
|
|
|
|
$
|
7,706
|
|
|
$
|
11,656
|
|
|
(33.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Average basic shares outstanding
|
|
|
|
23,115
|
|
|
22,580
|
|
|
2.4
|
%
|
|
Basic income per share
|
|
|
|
$
|
0.33
|
|
|
$
|
0.52
|
|
|
(36.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding
|
|
|
|
23,610
|
|
|
23,028
|
|
|
2.5
|
%
|
|
Diluted income per share
|
|
|
|
$
|
0.33
|
|
|
$
|
0.51
|
|
|
(35.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
March 31,
2018
|
|
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
57,131
|
|
|
$
|
63,021
|
|
|
Trade accounts receivable
|
|
|
|
129,815
|
|
|
127,806
|
|
|
Inventories
|
|
|
|
155,662
|
|
|
152,886
|
|
|
Prepaid expenses and other
|
|
|
|
16,805
|
|
|
16,582
|
|
|
Total current assets
|
|
|
|
359,413
|
|
|
360,295
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
|
|
104,456
|
|
|
113,079
|
|
|
Goodwill
|
|
|
|
330,368
|
|
|
347,434
|
|
|
Other intangibles, net
|
|
|
|
249,659
|
|
|
263,764
|
|
|
Marketable securities
|
|
|
|
7,565
|
|
|
7,673
|
|
|
Deferred taxes on income
|
|
|
|
33,585
|
|
|
32,442
|
|
|
Other assets
|
|
|
|
22,505
|
|
|
17,759
|
|
|
Total assets
|
|
|
|
$
|
1,107,551
|
|
|
$
|
1,142,446
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
|
$
|
43,416
|
|
|
$
|
46,970
|
|
|
Accrued liabilities
|
|
|
|
92,300
|
|
|
99,963
|
|
|
Current portion of long-term debt
|
|
|
|
60,046
|
|
|
60,064
|
|
|
Total current liabilities
|
|
|
|
195,762
|
|
|
206,997
|
|
|
|
|
|
|
|
|
|
|
Senior debt, less current portion
|
|
|
|
43
|
|
|
33
|
|
|
Term loan and revolving credit facility
|
|
|
|
293,746
|
|
|
303,221
|
|
|
Other non-current liabilities
|
|
|
|
208,432
|
|
|
223,966
|
|
|
Total liabilities
|
|
|
|
697,983
|
|
|
734,217
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
232
|
|
|
230
|
|
|
Additional paid-in capital
|
|
|
|
273,789
|
|
|
269,360
|
|
|
Retained earnings
|
|
|
|
206,491
|
|
|
197,897
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(70,944
|
)
|
|
(59,258
|
)
|
|
Total shareholders’ equity
|
|
|
|
409,568
|
|
|
408,229
|
|
|
Total liabilities and shareholders’ equity
|
|
|
|
$
|
1,107,551
|
|
|
$
|
1,142,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
7,706
|
|
|
$
|
11,656
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
8,832
|
|
|
8,660
|
|
|
Deferred income taxes and related valuation allowance
|
|
|
|
(2,084
|
)
|
|
1,856
|
|
|
Net (gain) loss on sale of real estate, investments, and other
|
|
|
|
(16
|
)
|
|
—
|
|
|
Stock based compensation
|
|
|
|
1,335
|
|
|
1,069
|
|
|
Amortization of deferred financing costs and discount on debt
|
|
|
|
665
|
|
|
664
|
|
|
Impairment of business classified as held for sale
|
|
|
|
11,100
|
|
|
—
|
|
|
Changes in operating assets and liabilities, net of effects of
business acquisitions:
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
|
|
(5,553
|
)
|
|
(5,092
|
)
|
|
Inventories
|
|
|
|
(8,088
|
)
|
|
(506
|
)
|
|
Prepaid expenses and other
|
|
|
|
(296
|
)
|
|
(1,977
|
)
|
|
Other assets
|
|
|
|
374
|
|
|
2,271
|
|
|
Trade accounts payable
|
|
|
|
(2,488
|
)
|
|
(1,298
|
)
|
|
Accrued liabilities
|
|
|
|
(2,684
|
)
|
|
2,644
|
|
|
Non-current liabilities
|
|
|
|
(685
|
)
|
|
(5,507
|
)
|
|
Net cash provided by operating activities
|
|
|
|
8,118
|
|
|
14,440
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Proceeds from sales of marketable securities
|
|
|
|
260
|
|
|
138
|
|
|
Purchases of marketable securities
|
|
|
|
(150
|
)
|
|
(47
|
)
|
|
Capital expenditures
|
|
|
|
(2,338
|
)
|
|
(1,928
|
)
|
|
Proceeds from sale of real estate
|
|
|
|
176
|
|
|
—
|
|
|
Net payments to former STAHL owner
|
|
|
|
—
|
|
|
(14,750
|
)
|
|
Net cash used for investing activities
|
|
|
|
(2,052
|
)
|
|
(16,587
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
|
|
|
3,641
|
|
|
29
|
|
|
Repayment of debt
|
|
|
|
(10,000
|
)
|
|
(13,874
|
)
|
|
Payment of dividends
|
|
|
|
(1,153
|
)
|
|
(902
|
)
|
|
Other
|
|
|
|
(550
|
)
|
|
(255
|
)
|
|
Net cash used for financing activities
|
|
|
|
(8,062
|
)
|
|
(15,002
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(3,894
|
)
|
|
4,171
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
(5,890
|
)
|
|
(12,978
|
)
|
|
Cash, cash equivalents, and restricted cash at beginning of year
|
|
|
|
63,565
|
|
|
78,428
|
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
|
|
$
|
57,675
|
|
|
$
|
65,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Q1 FY 2019 Sales Bridge
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
($ in millions)
|
|
|
|
$ Change
|
|
% Change
|
|
Fiscal 2018 Sales
|
|
|
|
$
|
203.7
|
|
|
|
|
Volume
|
|
|
|
14.0
|
|
|
6.8
|
%
|
|
Pricing
|
|
|
|
2.0
|
|
|
1.0
|
%
|
|
Foreign currency translation
|
|
|
|
5.3
|
|
|
2.6
|
%
|
|
Total change
|
|
|
|
$
|
21.3
|
|
|
10.4
|
%
|
|
Fiscal 2019 Sales
|
|
|
|
$
|
225.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Q1 FY 2019 Gross Profit Bridge
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
First Quarter
|
|
Fiscal 2018 Gross Profit
|
|
|
|
$
|
69.0
|
|
|
Sales volume and mix
|
|
|
|
4.0
|
|
|
Productivity, net of other cost changes
|
|
|
|
3.7
|
|
|
Foreign currency translation
|
|
|
|
1.6
|
|
|
Pricing, net of material cost inflation
|
|
|
|
1.5
|
|
|
Product liability
|
|
|
|
(0.1
|
)
|
|
STAHL integration costs
|
|
|
|
(0.1
|
)
|
|
Total change
|
|
|
|
$
|
10.6
|
|
|
Fiscal 2019 Gross Profit
|
|
|
|
$
|
79.6
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
June 30, 2017
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
|
$
|
163.9
|
|
|
|
$
|
177.4
|
|
|
|
$
|
173.3
|
|
|
|
Long-term backlog (expected to ship beyond 3 months)
|
|
|
|
$
|
54.2
|
|
|
|
$
|
59.5
|
|
|
|
$
|
60.4
|
|
|
|
Long-term backlog as % of total backlog
|
|
|
|
33.1
|
|
%
|
|
33.5
|
|
%
|
|
34.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding
|
|
|
|
52.5
|
|
days
|
|
54.3
|
|
days
|
|
53.5
|
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns per year
|
|
|
|
|
|
|
|
|
|
|
|
|
(based on cost of products sold)
|
|
|
|
3.7
|
|
turns
|
|
3.7
|
|
turns
|
|
4.0
|
|
turns
|
|
Days' inventory
|
|
|
|
98.6
|
|
days
|
|
100.0
|
|
days
|
|
91.3
|
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
|
Days payables outstanding
|
|
|
|
27.2
|
|
days
|
|
30.6
|
|
days
|
|
27.4
|
|
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital as a % of sales (1)
|
|
|
|
19.4
|
|
%
|
|
17.9
|
|
%
|
|
19.0
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt to total capitalization percentage
|
|
|
|
46.3
|
|
%
|
|
47.1
|
|
%
|
|
52.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net of cash, to net total capitalization
|
|
|
|
42.0
|
|
%
|
|
42.4
|
|
%
|
|
48.5
|
|
%
|
(1) June 30, 2017 figure excludes the impact of the acquisition of STAHL.
|
|
|
U.S. Shipping Days by Quarter
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
FY 19
|
|
|
|
|
64
|
|
63
|
|
60
|
|
63
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 18
|
|
|
|
|
63
|
|
62
|
|
60
|
|
63
|
|
248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to
Non-GAAP Adjusted Income from Operations and Adjusted Operating
Margin
($ in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
Income from operations
|
|
|
|
$
|
13,503
|
|
|
$
|
19,595
|
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
Held for sale impairment
|
|
|
|
11,100
|
|
|
—
|
|
|
STAHL integration costs
|
|
|
|
1,906
|
|
|
1,171
|
|
|
Insurance recovery legal costs
|
|
|
|
—
|
|
|
229
|
|
|
Non-GAAP adjusted income from operations
|
|
|
|
$
|
26,509
|
|
|
$
|
20,995
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
$
|
224,992
|
|
|
$
|
203,726
|
|
|
Adjusted operating margin
|
|
|
|
11.8
|
%
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations is defined as income from operations as
reported, adjusted for certain items and at 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 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 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 June 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
Net income
|
|
|
|
$
|
7,706
|
|
|
$
|
11,656
|
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
STAHL integration costs
|
|
|
|
1,906
|
|
|
1,171
|
|
|
Insurance recovery legal costs
|
|
|
|
—
|
|
|
229
|
|
|
Held for sale impairment
|
|
|
|
11,100
|
|
|
—
|
|
|
Normalize tax rate to 22% (1)
|
|
|
|
(3,173
|
)
|
|
(458
|
)
|
|
Non-GAAP adjusted net income
|
|
|
|
$
|
17,539
|
|
|
$
|
12,598
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding
|
|
|
|
23,610
|
|
|
23,028
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share - GAAP
|
|
|
|
$
|
0.33
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share - Non-GAAP
|
|
|
|
$
|
0.74
|
|
|
$
|
0.55
|
|
(1) Applies a normalized tax rate of 22% to
GAAP pre-tax income and non-GAAP adjustments above, which are each
pre-tax.
Adjusted net income and diluted EPS are defined as net income and
diluted EPS as reported, adjusted for certain items and at a normalized
tax rate. Adjusted net income and diluted EPS are not measures
determined in accordance with generally accepted accounting principles
in the United States, commonly known as GAAP and may not be comparable
to the measures as used by other companies. Nevertheless, Columbus
McKinnon believes that providing non-GAAP information, such as adjusted
net income and diluted EPS, is important for investors and other readers
of the Company’s financial statements and assists in understanding the
comparison of the current quarter’s and current year's net income and
diluted EPS to the historical periods' net income and diluted EPS, as
well as facilitates a more meaningful comparison of the Company’s net
income and diluted EPS to that of other companies.
|
|
|
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
Net income
|
|
|
|
$
|
7,706
|
|
|
$
|
11,656
|
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
1,774
|
|
|
3,095
|
|
|
Interest and debt expense
|
|
|
|
4,607
|
|
|
5,141
|
|
|
Investment income
|
|
|
|
(268
|
)
|
|
(62
|
)
|
|
Foreign currency exchange (gain) loss
|
|
|
|
(276
|
)
|
|
324
|
|
|
Other (income) expense, net
|
|
|
|
(40
|
)
|
|
(559
|
)
|
|
Depreciation and amortization expense
|
|
|
|
8,832
|
|
|
8,660
|
|
|
STAHL integration costs
|
|
|
|
1,906
|
|
|
1,171
|
|
|
Insurance recovery legal costs
|
|
|
|
—
|
|
|
229
|
|
|
Held for sale impairment
|
|
|
|
11,100
|
|
|
—
|
|
|
Non-GAAP adjusted EBITDA
|
|
|
|
$
|
35,341
|
|
|
$
|
29,655
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
$
|
224,992
|
|
|
$
|
203,726
|
|
|
Adjusted EBITDA margin
|
|
|
|
15.7
|
%
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is defined as net income before interest expense, income
taxes, depreciation and 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 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.