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Columbus McKinnon Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023

BUFFALO, N.Y.–(BUSINESS WIRE)–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 2023 fourth quarter, which ended March 31, 2023.

Fiscal Year and Fourth Quarter 2023 Highlights (compared with prior year periods)

  • Set records in fiscal 2023 for sales, gross margin and operating income
  • Strong execution resulted in record fiscal 2023 sales of $936.2 million and record fourth quarter sales of $253.8 million; FX negatively impacted revenue by $30.6 million for the year
  • Achieved record annual gross margin of 36.5%, a 170 basis point improvement; fourth quarter gross margin expanded 220 basis points to 35.9%
  • Operational leverage drove operating income records of $97.8 million for the year and

    $27.5 million for the quarter
  • Generated $83.6 million in cash from operations for the year; delivered $66.7 million in cash from operations in the quarter, strongest quarter on record
  • Reduced net debt leverage ratio to 2.2x1 providing ample flexibility for montratec® acquisition expected to close by May 31st
  • Continue to expect low-to-mid single digit revenue growth in fiscal 2024 plus additional benefits of montratec acquisition

David J. Wilson, President and CEO, commented, “We delivered record sales, gross margin, and operating income for fiscal 2023 as the team successfully executes our strategy to transform Columbus McKinnon into a higher growth, less cyclical business with stronger earnings power. We are driving improvements through the discipline of CMBS which includes our 80/20 process and investments in robust digital tools and processes to improve our customers’ experience. Our fiscal year and fourth quarter results demonstrate another proof point along our path toward our fiscal 2027 financial goals of $1.5 billion in revenue with adjusted EBITDA margin of approximately 21%.”

He continued, “We are thrilled to add montratec® to the portfolio as we enter fiscal 2024. montratec brings advanced automation technology to our precision conveying platform. With its rapid growth and attractive margin profile, montratec further propels our transformation. Importantly, our strong cash generation provides the financial flexibility to complete the acquisition and advance our strategy. We expect to close the deal in the next week.

We are making substantial progress advancing our strategy and are executing to plan. I am excited about where we are headed as an enterprise.”

_____________________________

1 On a financial covenant basis per Amended and Restated Credit Agreement

Fourth Quarter Fiscal 2023 Sales

($ in millions)

Q4 FY 23

 

Q4 FY 22

 

Change

 

% Change

Net sales

$

253.8

 

 

$

253.4

 

 

$

0.4

 

0.2

%

U.S. sales

$

149.4

 

 

$

149.0

 

 

$

0.4

 

0.3

%

% of total

 

59

%

 

 

59

%

 

 

 

 

Non-U.S. sales

$

104.4

 

 

$

104.4

 

 

$

 

%

% of total

 

41

%

 

 

41

%

 

 

 

 

For the quarter, sales increased $0.4 million, or 0.2%. Excluding a $4.2 million, or 1.7%, impact of foreign currency exchange, sales on a constant currency basis increased 1.8%. In the U.S., price improved $9.3 million, or 6.3%, which was partially offset by declining volume of $8.9 million, or 6.0%. Outside the U.S., price improved $5.1 million, or 4.9%, partially offset by declining volume of $0.9 million, or 0.8%.

Fourth Quarter Fiscal 2023 Operating Results

($ in millions)

Q4 FY 23

 

Q4 FY 22

 

Change

 

% Change

Gross profit

$

91.2

 

 

$

85.5

 

 

$

5.7

 

6.7

%

Gross margin

 

35.9

%

 

 

33.7

%

 

220 bps

 

 

Adjusted gross profit*

$

91.2

 

 

$

88.7

 

 

$

2.5

 

2.8

%

Adjusted gross margin*

 

35.9

%

 

 

34.8

%

 

110 bps

 

 

Income from operations

$

27.5

 

 

$

24.1

 

 

$

3.4

 

14.2

%

Operating margin

 

10.8

%

 

 

9.5

%

 

130 bps

 

 

Adjusted income from operations*

$

29.2

 

 

$

28.6

 

 

$

0.6

 

2.1

%

Adjusted operating margin*

 

11.5

%

 

 

11.2

%

 

30 bps

 

 

Net income (loss)

$

13.9

 

 

$

11.8

 

 

$

2.1

 

17.5

%

Net income (loss) margin

 

5.5

%

 

 

4.7

%

 

80 bps

 

 

Diluted EPS

$

0.48

 

 

$

0.41

 

 

$

0.07

 

17.1

%

Adjusted EPS*

$

0.80

 

 

$

0.79

 

 

$

0.01

 

1.3

%

Adjusted EBITDA*

$

39.7

 

 

$

39.3

 

 

$

0.4

 

1.0

%

Adjusted EBITDA margin*

 

15.7

%

 

 

15.4

%

 

30 bps

 

 

*Adjusted gross profit, adjusted gross margin, adjusted income from operations, adjusted operating margin, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding adjusted operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.

Adjusted earnings per diluted share were $0.80 in the fiscal 2023 fourth quarter compared with $0.79 in the prior year. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.

First Quarter Fiscal 2024 Outlook

Columbus McKinnon expects first quarter fiscal 2024 sales at current exchange rates to be in the range of

$235 million to $240 million including the first month of montratec, implying high-single digit growth at the mid-point of the range.

Mr. Wilson concluded, “We are encouraged by the opportunities we are identifying to grow our business at better than market rates. We are utilizing direct customer feedback to inform our actions, enhance customer experience and unlock the potential to earn greater market share. We are deepening our reach in more secular markets with enduring tailwinds and advancing our capabilities to sustain our leadership position in intelligent motion for material handling. We believe we are on track to deliver low-to-mid single digit revenue growth and further margin expansion in fiscal 2024.”

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 13738230. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, June 1, 2023. 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 move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning, and securing 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 expected growth, future sales and EBITDA margins, and future potential to deliver results; the execution of its strategy and further transformation of the Company with stronger growth, less cyclicality and higher margins, and achievement of certain goals. These statements 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 supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its financial targets including revenue and adjusted EBITDA margin, and to execute CMBS and the Core Growth Framework; global economic and business conditions affecting the industries served by the Company and its subsidiaries including COVID-19; 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. Consequently, such forward-looking statements should be regarded as current plans, estimates and beliefs. 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

 

 

 

 

March 31, 2023

 

March 31, 2022

 

Change

Net sales

 

$

253,843

 

 

$

253,368

 

 

0.2

%

Cost of products sold

 

 

162,625

 

 

 

167,893

 

 

(3.1

)%

Gross profit

 

 

91,218

 

 

 

85,475

 

 

6.7

%

Gross profit margin

 

 

35.9

%

 

 

33.7

%

 

 

Selling expenses

 

 

25,331

 

 

 

27,080

 

 

(6.5

)%

% of net sales

 

 

10.0

%

 

 

10.7

%

 

 

General and administrative expenses

 

 

26,353

 

 

 

23,633

 

 

11.5

%

% of net sales

 

 

10.4

%

 

 

9.3

%

 

 

Research and development expenses

 

 

5,506

 

 

 

4,068

 

 

35.3

%

% of net sales

 

 

2.2

%

 

 

1.6

%

 

 

Amortization of intangibles

 

 

6,559

 

 

 

6,635

 

 

(1.1

)%

Income from operations

 

 

27,469

 

 

 

24,059

 

 

14.2

%

Operating margin

 

 

10.8

%

 

 

9.5

%

 

 

Interest and debt expense

 

 

7,668

 

 

 

5,352

 

 

43.3

%

Investment (income) loss, net

 

 

(483

)

 

 

578

 

 

NM

 

Foreign currency exchange loss (gain), net

 

 

(1,037

)

 

 

527

 

 

NM

 

Other (income) expense, net

 

 

(73

)

 

 

(378

)

 

NM

 

Income before income tax expense

 

 

21,394

 

 

 

17,980

 

 

19.0

%

Income tax expense

 

 

7,499

 

 

 

6,154

 

 

21.9

%

Net income

 

$

13,895

 

 

$

11,826

 

 

17.5

%

 

 

 

 

 

 

 

Average basic shares outstanding

 

 

28,609

 

 

 

28,507

 

 

0.4

%

Basic income per share

 

$

0.49

 

 

$

0.41

 

 

19.5

%

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

28,869

 

 

 

28,845

 

 

0.1

%

Diluted income per share

 

$

0.48

 

 

$

0.41

 

 

17.1

%

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.14

 

 

$

0.13

 

 

 

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements – UNAUDITED

(In thousands, except per share and percentage data)

 

 

 

Year Ended

 

 

 

 

March 31, 2023

 

March 31, 2022

 

Change

Net sales

 

$

936,240

 

 

$

906,555

 

 

3.3

%

Cost of products sold

 

 

594,141

 

 

 

590,825

 

 

0.6

%

Gross profit

 

 

342,099

 

 

 

315,730

 

 

8.4

%

Gross profit margin

 

 

36.5

%

 

 

34.8

%

 

 

Selling expenses

 

 

102,528

 

 

 

99,187

 

 

3.4

%

% of net sales

 

 

11.0

%

 

 

10.9

%

 

 

General and administrative expenses

 

 

94,794

 

 

 

102,128

 

 

(7.2

)%

% of net sales

 

 

10.1

%

 

 

11.3

%

 

 

Research and development expenses

 

 

20,935

 

 

 

15,351

 

 

36.4

%

% of net sales

 

 

2.2

%

 

 

1.7

%

 

 

Amortization of intangibles

 

 

26,001

 

 

 

25,283

 

 

2.8

%

Income from operations

 

 

97,841

 

 

 

73,781

 

 

32.6

%

Operating margin

 

 

10.5

%

 

 

8.1

%

 

 

Interest and debt expense

 

 

27,942

 

 

 

20,126

 

 

38.8

%

Cost of debt refinancing

 

 

 

 

 

14,803

 

 

NM

 

Investment (income) loss, net

 

 

(315

)

 

 

(46

)

 

NM

 

Foreign currency exchange loss (gain), net

 

 

(2,189

)

 

 

1,574

 

 

NM

 

Other (income) expense, net

 

 

(2,072

)

 

 

(1,122

)

 

NM

 

Income before income tax expense

 

 

74,475

 

 

 

38,446

 

 

93.7

%

Income tax expense

 

 

26,046

 

 

 

8,786

 

 

196.4

%

Net income

 

$

48,429

 

 

$

29,660

 

 

63.3

%

 

 

 

 

 

 

 

Average basic shares outstanding

 

 

28,600

 

 

 

28,040

 

 

2.0

%

Basic income per share

 

$

1.69

 

 

$

1.06

 

 

59.4

%

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

28,818

 

 

 

28,401

 

 

1.5

%

Diluted income per share

 

$

1.68

 

 

$

1.04

 

 

61.5

%

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.28

 

 

$

0.25

 

 

 

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

March 31, 2023

 

March 31, 2022

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

133,176

 

 

$

115,390

 

Trade accounts receivable

 

 

151,451

 

 

 

147,515

 

Inventories

 

 

179,359

 

 

 

172,139

 

Prepaid expenses and other

 

 

32,254

 

 

 

31,545

 

Total current assets

 

 

496,240

 

 

 

466,589

 

 

 

 

 

 

Net property, plant, and equipment

 

 

94,360

 

 

 

97,926

 

Goodwill

 

 

644,629

 

 

 

648,849

 

Other intangibles, net

 

 

362,537

 

 

 

390,788

 

Marketable securities

 

 

10,368

 

 

 

10,294

 

Deferred taxes on income

 

 

2,035

 

 

 

2,313

 

Other assets

 

 

88,286

 

 

 

68,948

 

Total assets

 

$

1,698,455

 

 

$

1,685,707

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Trade accounts payable

 

$

76,736

 

 

$

90,881

 

Accrued liabilities

 

 

124,317

 

 

 

118,187

 

Current portion of long-term debt and finance lease obligations

 

 

40,604

 

 

 

40,551

 

Total current liabilities

 

 

241,657

 

 

 

249,619

 

 

 

 

 

 

Term loan and finance lease obligations

 

 

430,988

 

 

 

470,675

 

Other non-current liabilities

 

 

192,013

 

 

 

192,610

 

Total liabilities

 

 

864,658

 

 

 

912,904

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Common stock

 

 

286

 

 

 

285

 

Treasury Stock

 

 

(1,001

)

 

 

 

Additional paid-in capital

 

 

515,797

 

 

 

506,074

 

Retained earnings

 

 

356,758

 

 

 

316,343

 

Accumulated other comprehensive loss

 

 

(38,043

)

 

 

(49,899

)

Total shareholders’ equity

 

 

833,797

 

 

 

772,803

 

Total liabilities and shareholders’ equity

 

$

1,698,455

 

 

$

1,685,707

 

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows – UNAUDITED

(In thousands)

 

 

 

Year Ended

 

 

March 31, 2023

 

March 31, 2022

Operating activities:

 

 

 

 

Net income

 

$

48,429

 

 

$

29,660

 

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

 

 

 

 

Depreciation and amortization

 

 

41,947

 

 

 

41,924

 

Deferred income taxes and related valuation allowance

 

 

(300

)

 

 

(1,969

)

Net loss (gain) on sale of real estate, investments and other

 

 

(54

)

 

 

136

 

Stock-based compensation

 

 

10,425

 

 

 

11,246

 

Amortization of deferred financing costs

 

 

1,721

 

 

 

1,703

 

Loss (gain) on hedging instruments

 

 

(438

)

 

 

853

 

Cost of debt refinancing

 

 

 

 

 

14,803

 

Loss on retirement of fixed asset

 

 

175

 

 

 

 

Gain on sale of building

 

 

(232

)

 

 

(375

)

Non-cash lease expense

 

 

7,867

 

 

 

7,945

 

Changes in operating assets and liabilities, net of effects of business acquisitions:

 

 

 

 

Trade accounts receivable

 

 

(4,858

)

 

 

(18,988

)

Inventories

 

 

(9,087

)

 

 

(40,201

)

Prepaid expenses and other

 

 

6,667

 

 

 

(47

)

Other assets

 

 

(123

)

 

 

25

 

Trade accounts payable

 

 

(13,964

)

 

 

12,681

 

Accrued liabilities

 

 

9,150

 

 

 

696

 

Non-current liabilities

 

 

(13,689

)

 

 

(11,211

)

Net cash provided by (used for) operating activities

 

 

83,636

 

 

 

48,881

 

 

 

 

 

 

Investing activities:

 

 

 

 

Proceeds from sales of marketable securities

 

 

3,651

 

 

 

4,434

 

Purchases of marketable securities

 

 

(4,021

)

 

 

(7,130

)

Capital expenditures

 

 

(12,632

)

 

 

(13,104

)

Proceeds from sale of building, net of transaction costs

 

 

373

 

 

 

461

 

Proceeds from insurance reimbursement

 

 

 

 

 

482

 

Purchases of businesses, net of cash acquired

 

 

(1,616

)

 

 

(539,778

)

Dividend received from equity method investment

 

 

313

 

 

 

324

 

Net cash provided by (used for) investing activities

 

 

(13,932

)

 

 

(554,311

)

 

 

 

 

 

Financing activities:

 

 

 

 

Proceeds from issuance of common stock

 

 

713

 

 

 

2,655

 

Purchases of treasury stock

 

 

(1,001

)

 

 

 

Repayment of debt

 

 

(40,550

)

 

 

(477,846

)

Proceeds from issuance of long-term debt

 

 

 

 

 

725,000

 

Proceeds from equity offering

 

 

 

 

 

207,000

 

Fees related to debt and equity offering

 

 

 

 

 

(26,184

)

Cash inflows from hedging activities

 

 

24,495

 

 

 

19,417

 

Cash outflows from hedging activities

 

 

(24,221

)

 

 

(20,206

)

Payment of dividends

 

 

(8,008

)

 

 

(6,562

)

Other

 

 

(1,415

)

 

 

(2,574

)

Net cash provided by (used for) financing activities

 

 

(49,987

)

 

 

420,700

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(1,931

)

 

 

(2,007

)

 

 

 

 

 

Net change in cash and cash equivalents

 

 

17,786

 

 

 

(86,737

)

Cash, cash equivalents, and restricted cash at beginning of year

 

 

115,640

 

 

 

202,377

 

Cash, cash equivalents, and restricted cash at end of year

 

$

133,426

 

 

$

115,640

 

 

COLUMBUS McKINNON CORPORATION

Q4 FY 2023 Sales Bridge

 

 

 

Quarter

 

Year To Date

($ in millions)

 

$ Change

 

% Change

 

$ Change

 

% Change

Fiscal 2022 Sales

 

$

253.4

 

 

 

 

$

906.6

 

 

 

Acquisitions

 

 

 

 

%

 

 

22.4

 

 

2.5

%

Volume

 

 

(9.9

)

 

(3.9

)%

 

 

(9.2

)

 

(1.0

)%

Pricing

 

 

14.5

 

 

5.7

%

 

 

47.0

 

 

5.2

%

Foreign currency translation

 

 

(4.2

)

 

(1.7

)%

 

 

(30.6

)

 

(3.4

)%

Total change

 

$

0.4

 

 

0.2

%

 

$

29.6

 

 

3.3

%

Fiscal 2023 Sales

 

$

253.8

 

 

 

 

$

936.2

 

 

 

 

COLUMBUS McKINNON CORPORATION

Q4 FY 2023 Gross Profit Bridge

 

($ in millions)

Quarter

 

Year To Date

Fiscal 2022 Gross Profit

$

85.5

 

 

$

315.7

 

Acquisitions

 

 

 

 

9.5

 

Price, net of material cost inflation

 

9.2

 

 

 

22.6

 

Prior year acquisition amortization of backlog

 

1.7

 

 

 

2.2

 

Prior year acquisition inventory step-up expense

 

1.5

 

 

 

5.0

 

Tariffs

 

0.5

 

 

 

0.6

 

Productivity, net of other cost changes

 

(0.5

)

 

 

(5.0

)

Foreign currency translation

 

(1.3

)

 

 

(10.8

)

Sales volume and mix

 

(5.4

)

 

 

(3.4

)

Business realignment costs

 

 

 

 

1.6

 

Acquisition integration costs

 

 

 

 

0.5

 

Product liability

 

 

 

 

0.7

 

Prior year product liability settlement

 

 

 

 

2.9

 

Total change

 

5.7

 

 

 

26.4

 

Fiscal 2023 Gross Profit

$

91.2

 

 

$

342.1

 

 

U.S. Shipping Days by Quarter

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

FY 24

 

63

 

62

 

61

 

62

 

248

 

 

 

 

 

 

 

 

 

 

 

FY 23

 

63

 

64

 

60

 

63

 

250

 

 

 

 

 

 

 

 

 

 

 

FY 22

 

63

 

64

 

61

 

63

 

251

 

COLUMBUS McKINNON CORPORATION

Additional Data – UNAUDITED

 

 

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

($ in millions)

 

 

 

 

 

 

 

 

 

Backlog

 

$

308.7

 

 

$

329.1

 

 

$

309.1

 

Long-term backlog

 

 

 

 

 

 

 

 

 

Expected to ship beyond 3 months

 

$

142.0

 

 

$

164.7

 

 

$

135.2

 

Long-term backlog as % of total backlog

 

 

46.0

%

 

 

50.0

%

 

 

43.7

%

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

 

 

 

 

 

 

 

Days sales outstanding

 

 

54.3

days

 

 

58.0

days

 

 

53.0

days

 

 

 

 

 

 

 

 

 

 

Inventory turns per year

 

 

 

 

 

 

 

 

 

(based on cost of products sold)

 

 

3.6

turns

 

 

3.0

turns

 

 

3.9

turns

Days’ inventory

 

 

101.4

days

 

 

121.0

days

 

 

93.6

days

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

 

 

 

 

 

 

 

 

Days payables outstanding

 

 

53.3

days

 

 

52.6

days

 

 

58.7

days

 

 

 

 

 

 

 

 

 

 

Working capital as a % of sales (2)

 

 

17.3

%

 

 

22.1

%

 

 

15.5

%

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

66.7

 

 

$

10.8

 

 

$

25.2

 

Capital expenditures

 

$

3.1

 

 

$

4.2

 

 

$

3.6

 

Free cash flow (1)

 

$

63.6

 

 

$

6.5

 

 

$

21.6

 

 

 

 

 

 

 

 

 

 

 

Debt to total capitalization percentage

 

 

36.1

%

 

 

37.3

%

 

 

39.8

%

 

 

 

 

 

 

 

 

 

 

Debt, net of cash, to net total capitalization

 

 

28.9

%

 

 

33.0

%

 

 

33.9

%

(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.
(2) March 31, 2022 figure excludes the impact of the acquisition of Garvey.
 

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,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP gross profit

$

91,218

 

 

$

85,475

 

 

$

342,099

 

 

$

315,730

 

Add back (deduct):

 

 

 

 

 

 

 

Acquisition inventory step-up expense

 

 

 

 

1,546

 

 

 

 

 

 

5,042

 

Product liability settlement

 

 

 

 

 

 

 

 

 

 

2,850

 

Acquisition amortization of backlog

 

 

 

 

1,650

 

 

 

 

 

 

2,100

 

Business realignment costs

 

 

 

 

 

 

 

 

 

 

1,606

 

Acquisition integration costs

 

 

 

 

 

 

 

 

 

 

521

 

Non-GAAP adjusted gross profit

$

91,218

 

 

$

88,671

 

 

$

342,099

 

 

$

327,849

 

 

 

 

 

 

 

 

 

Sales

$

253,843

 

 

$

253,368

 

 

$

936,240

 

 

$

906,555

 

Add back:

 

 

 

 

 

 

 

Acquisition amortization of backlog

 

 

 

 

1,650

 

 

 

 

 

 

2,100

 

Non-GAAP sales

$

253,843

 

 

$

255,018

 

 

$

936,240

 

 

$

908,655

 

 

 

 

 

 

 

 

 

Gross margin – GAAP

 

35.9

%

 

 

33.7

%

 

 

36.5

%

 

 

34.8

%

Adjusted gross margin – Non-GAAP

 

35.9

%

 

 

34.8

%

 

 

36.5

%

 

 

36.1

%

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 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,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP income from operations

$

27,469

 

 

$

24,059

 

 

$

97,841

 

 

$

73,781

 

Add back (deduct):

 

 

 

 

 

 

 

Acquisition deal and integration costs

 

173

 

 

 

229

 

 

 

616

 

 

 

10,473

 

Acquisition inventory step-up expense

 

 

 

 

1,546

 

 

 

 

 

 

5,042

 

Business realignment costs

 

848

 

 

 

1,115

 

 

 

5,140

 

 

 

3,902

 

Product liability settlement

 

 

 

 

 

 

 

 

 

 

2,850

 

Garvey contingent consideration

 

 

 

 

 

 

 

1,230

 

 

 

 

Headquarter relocation costs

 

681

 

 

 

 

 

 

996

 

 

 

 

Acquisition amortization of backlog

 

 

 

 

1,650

 

 

 

 

 

 

2,100

 

Non-GAAP adjusted income from operations

$

29,171

 

 

$

28,599

 

 

$

105,823

 

 

$

98,148

 

 

 

 

 

 

 

 

 

Sales

$

253,843

 

 

$

253,368

 

 

$

936,240

 

 

$

906,555

 

Add back:

 

 

 

 

 

 

 

Acquisition amortization of backlog

 

 

 

 

1,650

 

 

 

 

 

 

2,100

 

Non-GAAP sales

$

253,843

 

 

$

255,018

 

 

$

936,240

 

 

$

908,655

 

 

 

 

 

 

 

 

 

Operating margin – GAAP

 

10.8

%

 

 

9.5

%

 

 

10.5

%

 

 

8.1

%

Adjusted operating margin – Non-GAAP

 

11.5

%

 

 

11.2

%

 

 

11.3

%

 

 

10.8

%

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 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,

 

 

2023

 

 

2022

 

 

 

2023

 

 

2022

 

GAAP net income (loss)

$

13,895

 

$

11,826

 

 

$

48,429

 

$

29,660

 

Add back (deduct):

 

 

 

 

 

 

 

Amortization of intangibles

 

6,559

 

 

6,635

 

 

 

26,001

 

 

25,283

 

Cost of debt refinancing

 

 

 

 

 

 

 

 

14,803

 

Acquisition deal and integration costs

 

173

 

 

229

 

 

 

616

 

 

10,473

 

Acquisition inventory step-up expense

 

 

 

1,546

 

 

 

 

 

5,042

 

Business realignment costs

 

848

 

 

1,115

 

 

 

5,140

 

 

3,902

 

Product liability settlement

 

 

 

 

 

 

 

 

2,850

 

Acquisition amortization of backlog

 

 

 

1,650

 

 

 

 

 

2,100

 

Garvey contingent consideration

 

 

 

 

 

 

1,230

 

 

 

Headquarter relocation costs

 

681

 

 

 

 

 

996

 

 

 

Normalize tax rate to 22% (1)

 

975

 

 

(260

)

 

 

2,185

 

 

(13,852

)

Non-GAAP adjusted net income

$

23,131

 

$

22,741

 

 

$

84,597

 

$

80,261

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

28,869

 

 

28,845

 

 

 

28,818

 

 

28,401

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share – GAAP

$

0.48

 

$

0.41

 

 

$

1.68

 

$

1.04

 

 

 

 

 

 

 

 

 

Diluted income per share – Non-GAAP

$

0.80

 

$

0.79

 

 

$

2.94

 

$

2.83

 

Contacts

Gregory P. Rustowicz

Executive Vice President – Finance and Chief Financial Officer

Columbus McKinnon Corporation

716-689-5442

greg.rustowicz@cmworks.com

Investor Relations:
Deborah K. Pawlowski

Kei Advisors LLC

716-843-3908

dpawlowski@keiadvisors.com

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