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Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021

05/26/2021

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 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.”

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.”

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.

Financial tables follow.

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 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 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 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 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 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 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 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 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 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.

Gregory P. Rustowicz
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

Source: Columbus McKinnon Corporation

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