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Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022

05/25/2022

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 2022 fourth quarter, which ended March 31, 2022. Results include the additions of Dorner Manufacturing Corporation and Garvey Corporation, which were acquired on April 7, 2021, and December 1, 2021, respectively.

Fourth Quarter and Fiscal Year 2022 Highlights (compared with prior-year periods)

  • Achieved record sales in the quarter with better than expected revenue growth of $67.1 million driven by strong demand in all markets; organic growth was 17% and acquisitions contributed $40.5 million
  • Record quarterly orders of $269.8 million; ended year with record backlog of $309.1 million
  • Net income in the quarter grew 23% to $11.8 million; adjusted EBITDA* expanded 52% to $39.3 million, or 15.4% of revenue
  • Fiscal year 2022 revenue grew 40% to a record $906.6 million and net income more than tripled to $29.7 million, or $1.04 per diluted share; achieved adjusted EPS* of $2.83
  • Significantly transformed business in fiscal 2022 with addition of precision conveying platform, which contributed $144.6 million in sales for the year
  • Continued to demonstrate strong cash generation capabilities with $25.2 million in cash from operations in the quarter and $48.9 million for the fiscal year

David Wilson, President and CEO of Columbus McKinnon, commented, “We delivered exceptional growth as demand for our intelligent motion solutions strengthened throughout the quarter across our end markets. We outpaced our internal growth expectations with innovation, the acceleration of our growth initiatives, and the expansion of our precision conveying platform. In fact, we achieved record sales for both the quarter and the fiscal year.”

He added, “We are being deliberate, flexible and creative as we address the persistent macro challenges that the industrial world is facing. While we were successful in outpacing raw material inflation in the quarter and for the fiscal year, gross margin this quarter was heavily impacted by rising freight costs. We are being diligent about addressing inflationary pressures while executing to deliver on growing demand.”

*Adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS are non-GAAP measures.  See accompanying discussion and reconciliation tables in this release regarding the reconciliation of GAAP financials to non-GAAP measures.

 Fourth Quarter Fiscal 2022 Sales
 

($ in millions)

Q4 FY 22

 

Q4 FY 21

 

Change

 

% Change

Net sales

$

253.4

 

 

$

186.2

 

 

$

67.1

 

36.0

%

U.S. sales

$

149.0

 

 

$

94.8

 

 

$

54.2

 

57.2

%

% of total

 

59

%

 

 

51

%

 

 

 

 

Non-U.S. sales

$

104.4

 

 

$

91.4

 

 

$

13.0

 

14.2

%

% of total

 

41

%

 

 

49

%

 

 

 

 

 
 

For the quarter, sales increased $67.1 million, or 36.0%. Acquisitions added $40.5 million in sales, while foreign currency translation had an unfavorable foreign currency translation of $5.0 million, or 2.7% of total sales. In the U.S., volume improved $15.1 million, or 15.9%, and price improved $4.4 million, or 4.7%. U.S. sales related to acquisitions were $34.6 million. Outside the U.S., volume improved $8.1 million, or 8.9%, and price improved $3.9 million, or 4.3%. Acquisitions added $5.9 million of sales outside the U.S.

 Fourth Quarter Fiscal 2022 Operating Results
 

($ in millions)

Q4 FY 22

 

Q4 FY 21

 

Change

 

% Change

Gross profit

$

85.5

 

 

$

64.1

 

 

$

21.4

 

33.4

%

Gross margin

 

33.7

%

 

 

34.4

%

 

(70) bps

 

 

Adjusted gross profit*

$

88.7

 

 

$

64.4

 

 

$

24.3

 

37.8

%

Adjusted gross margin*

 

34.8

%

 

 

34.6

%

 

20 bps

 

 

Income from operations

$

24.1

 

 

$

14.2

 

 

$

9.9

 

69.4

%

Operating margin

 

9.5

%

 

 

7.6

%

 

190 bps

 

 

Adjusted income from operations*

$

28.6

 

 

$

18.9

 

 

$

9.7

 

51.6

%

Adjusted operating margin*

 

11.2

%

 

 

10.1

%

 

110 bps

 

 

Net income (loss)

$

11.8

 

 

$

9.6

 

 

$

2.2

 

23.4

%

Net income (loss) margin

 

4.7

%

 

 

5.1

%

 

(40) bps

 

 

Diluted EPS

$

0.41

 

 

$

0.39

 

 

$

0.02

 

5.1

%

Adjusted EPS*

$

0.79

 

 

$

0.60

 

 

$

0.19

 

31.7

%

Adjusted EBITDA*

$

39.3

 

 

$

25.8

 

 

$

13.5

 

52.1

%

Adjusted EBITDA margin*

 

15.4

%

 

 

13.9

%

 

150 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.

Acquisitions added $6.0 million in adjusted operating income. Gross margin for the quarter was dampened by higher inbound freight costs that were incurred to ensure customer requirements were met. Adjusted earnings per diluted share were $0.79 in the fiscal 2022 fourth quarter compared with $0.60 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 2023 Outlook
Columbus McKinnon expects first quarter fiscal 2023 sales of approximately $220 million to $230 million at current exchange rates which year-over-year has an $8 million to $9 million negative impact. Mr. Wilson concluded, “We expect fiscal 2023 to be another great year for Columbus McKinnon. We are transforming the Company into a faster growing, higher margin business that serves secular-driven markets with strong tailwinds. We are heavily focused on execution and remain confident that we are creating a better business model with stronger earnings power.”

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 13728806. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Wednesday, June 1, 2022. 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 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 supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company’s 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, 2022

 

March 31, 2021

 

Change

Net sales

 

$

253,368

 

 

$

186,235

 

 

36.0

%

Cost of products sold

 

 

167,893

 

 

 

122,147

 

 

37.5

%

Gross profit

 

 

85,475

 

 

 

64,088

 

 

33.4

%

Gross profit margin

 

 

33.7

%

 

 

34.4

%

 

 

Selling expenses

 

 

27,080

 

 

 

20,820

 

 

30.1

%

% of net sales

 

 

10.7

%

 

 

11.2

%

 

 

General and administrative expenses

 

 

23,633

 

 

 

22,193

 

 

6.5

%

% of net sales

 

 

9.3

%

 

 

11.9

%

 

 

Research and development expenses

 

 

4,068

 

 

 

3,702

 

 

9.9

%

% of net sales

 

 

1.6

%

 

 

2.0

%

 

 

Amortization of intangibles

 

 

6,635

 

 

 

3,174

 

 

109.0

%

Income from operations

 

 

24,059

 

 

 

14,199

 

 

69.4

%

Operating margin

 

 

9.5

%

 

 

7.6

%

 

 

Interest and debt expense

 

 

5,352

 

 

 

2,889

 

 

85.3

%

Investment (income) loss

 

 

578

 

 

 

(264

)

 

NM

 

Foreign currency exchange (gain) loss

 

 

527

 

 

 

(142

)

 

NM

 

Other (income) expense, net

 

 

(378

)

 

 

769

 

 

NM

 

Income (loss) before income tax expense (benefit)

 

 

17,980

 

 

 

10,947

 

 

64.2

%

Income tax expense (benefit)

 

 

6,154

 

 

 

1,362

 

 

351.8

%

Net income (loss)

 

$

11,826

 

 

$

9,585

 

 

23.4

%

 

 

 

 

 

 

 

Average basic shares outstanding

 

 

28,507

 

 

 

23,977

 

 

18.9

%

Basic income (loss) per share

 

$

0.41

 

 

$

0.40

 

 

2.5

%

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

28,845

 

 

 

24,384

 

 

18.3

%

Diluted income (loss) per share

 

$

0.41

 

 

$

0.39

 

 

5.1

%

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.13

 

 

$

0.12

 

 

 

 
 

 COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

 

 

 

Year Ended

 

 

 

 

March 31, 2022

 

March 31, 2021

 

Change

Net sales

 

$

906,555

 

 

$

649,642

 

 

39.5

%

Cost of products sold

 

 

590,825

 

 

 

429,417

 

 

37.6

%

Gross profit

 

 

315,730

 

 

 

220,225

 

 

43.4

%

Gross profit margin

 

 

34.8

%

 

 

33.9

%

 

 

Selling expenses

 

 

99,187

 

 

 

76,907

 

 

29.0

%

% of net sales

 

 

10.9

%

 

 

11.8

%

 

 

General and administrative expenses

 

 

102,128

 

 

 

76,035

 

 

34.3

%

% of net sales

 

 

11.3

%

 

 

11.7

%

 

 

Research and development expenses

 

 

15,351

 

 

 

12,405

 

 

23.7

%

% of net sales

 

 

1.7

%

 

 

1.9

%

 

 

Amortization of intangibles

 

 

25,283

 

 

 

12,623

 

 

100.3

%

Income from operations

 

 

73,781

 

 

 

42,255

 

 

74.6

%

Operating margin

 

 

8.1

%

 

 

6.5

%

 

 

Interest and debt expense

 

 

20,126

 

 

 

12,081

 

 

66.6

%

Cost of debt refinancing

 

 

14,803

 

 

 

 

 

NM

 

Investment (income) loss

 

 

(46

)

 

 

(1,693

)

 

(97.3

) %

Foreign currency exchange (gain) loss

 

 

1,574

 

 

 

941

 

 

67.3

%

Other (income) expense, net

 

 

(1,122

)

 

 

20,850

 

 

NM

 

Income (loss) before income tax expense (benefit)

 

 

38,446

 

 

 

10,076

 

 

281.6

%

Income tax expense (benefit)

 

 

8,786

 

 

 

970

 

 

805.8

%

Net income (loss)

 

$

29,660

 

 

$

9,106

 

 

225.7

%

 

 

 

 

 

 

 

Average basic shares outstanding

 

 

28,040

 

 

 

23,897

 

 

17.3

%

Basic income (loss) per share

 

$

1.06

 

 

$

0.38

 

 

178.9

%

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

28,401

 

 

 

24,173

 

 

17.5

%

Diluted income (loss) per share

 

$

1.04

 

 

$

0.38

 

 

173.7

%

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.25

 

 

$

0.24

 

 

 

 
 

 COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

March 31, 2022

 

March 31, 2021

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

115,390

 

 

$

202,127

 

Trade accounts receivable

 

 

147,515

 

 

 

105,464

 

Inventories

 

 

172,139

 

 

 

111,488

 

Prepaid expenses and other

 

 

31,545

 

 

 

22,763

 

Total current assets

 

 

466,589

 

 

 

441,842

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

97,926

 

 

 

74,753

 

Goodwill

 

 

648,849

 

 

 

331,176

 

Other intangibles, net

 

 

390,788

 

 

 

213,362

 

Marketable securities

 

 

10,294

 

 

 

7,968

 

Deferred taxes on income

 

 

2,313

 

 

 

20,080

 

Other assets

 

 

68,948

 

 

 

61,251

 

Total assets

 

$

1,685,707

 

 

$

1,150,432

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Trade accounts payable

 

$

90,881

 

 

$

68,593

 

Accrued liabilities

 

 

118,187

 

 

 

110,816

 

Current portion of long-term debt and finance lease obligations

 

 

40,551

 

 

 

4,450

 

Total current liabilities

 

 

249,619

 

 

 

183,859

 

 

 

 

 

 

Term loan and finance lease obligations

 

 

470,675

 

 

 

244,504

 

Other non-current liabilities

 

 

192,610

 

 

 

191,920

 

Total liabilities

 

 

912,904

 

 

 

620,283

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Common stock

 

 

285

 

 

 

240

 

Additional paid-in capital

 

 

506,074

 

 

 

296,093

 

Retained earnings

 

 

316,343

 

 

 

293,802

 

Accumulated other comprehensive loss

 

 

(49,899

)

 

 

(59,986

)

Total shareholders’ equity

 

 

772,803

 

 

 

530,149

 

Total liabilities and shareholders’ equity

 

$

1,685,707

 

 

$

1,150,432

 

 
 

 COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

 

 

 

Year Ended

 

 

March 31, 2022

 

March 31, 2021

Operating activities:

 

 

 

 

Net income (loss)

 

$

29,660

 

 

$

9,106

 

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

 

 

 

 

Depreciation and amortization

 

 

41,924

 

 

 

28,153

 

Deferred income taxes and related valuation allowance

 

 

(1,969

)

 

 

(8,704

)

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

 

 

136

 

 

 

(1,594

)

Stock based compensation

 

 

11,246

 

 

 

8,022

 

Amortization of deferred financing costs

 

 

1,703

 

 

 

2,646

 

Cost of debt refinancing

 

 

14,803

 

 

 

 

Loss (gain) on hedging instruments

 

 

853

 

 

 

 

Non-cash pension settlement expense

 

 

 

 

 

19,038

 

Gain on sale of building

 

 

(375

)

 

 

(2,638

)

Non-cash lease expense

 

 

7,945

 

 

 

7,447

 

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

 

 

 

 

Trade accounts receivable

 

 

(18,988

)

 

 

21,472

 

Inventories

 

 

(40,201

)

 

 

20,659

 

Prepaid expenses and other

 

 

(47

)

 

 

(5,128

)

Other assets

 

 

25

 

 

 

874

 

Trade accounts payable

 

 

12,681

 

 

 

10,343

 

Accrued liabilities

 

 

696

 

 

 

(3,174

)

Non-current liabilities

 

 

(11,211

)

 

 

(7,632

)

Net cash provided by (used for) operating activities

 

 

48,881

 

 

 

98,890

 

 

 

 

 

 

Investing activities:

 

 

 

 

Proceeds from sales of marketable securities

 

 

4,434

 

 

 

5,111

 

Purchases of marketable securities

 

 

(7,130

)

 

 

(4,945

)

Capital expenditures

 

 

(13,104

)

 

 

(12,300

)

Proceeds from sale of building, net of transaction costs

 

 

461

 

 

 

5,453

 

Proceeds from insurance reimbursement

 

 

482

 

 

 

100

 

Purchases of businesses, net of cash acquired

 

 

(539,778

)

 

 

 

Dividend received from equity method investment

 

 

324

 

 

 

587

 

Proceeds from sale of fixed assets

 

 

 

 

 

446

 

Net cash provided by (used for) investing activities

 

 

(554,311

)

 

 

(5,548

)

 

 

 

 

 

Financing activities:

 

 

 

 

Proceeds from issuance of common stock

 

 

2,655

 

 

 

1,973

 

Borrowings under line-of-credit agreements

 

 

 

 

 

25,000

 

Payments under line-of-credit agreements

 

 

 

 

 

(25,000

)

Repayment of debt

 

 

(477,846

)

 

 

(4,450

)

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

 

 

19,417

 

 

 

 

Cash outflows from hedging activities

 

 

(20,206

)

 

 

 

Fees paid for revolver extension

 

 

 

 

 

(826

)

Payment of dividends

 

 

(6,562

)

 

 

(5,733

)

Other

 

 

(2,574

)

 

 

(1,153

)

Net cash provided by (used for) financing activities

 

 

420,700

 

 

 

(10,189

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(2,007

)

 

 

4,524

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(86,737

)

 

 

87,677

 

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

 

 

202,377

 

 

 

114,700

 

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

 

$

115,640

 

 

$

202,377

 

 
 

 COLUMBUS McKINNON CORPORATION

Q4 FY 2022 Sales Bridge

 

 

 

Quarter

 

Year To Date

($ in millions)

 

$ Change

 

% Change

 

$ Change

 

% Change

Fiscal 2021 Sales

 

$

186.2

 

 

 

 

$

649.6

 

 

Acquisitions

 

 

40.5

 

 

21.7

%

 

 

144.6

 

22.3

%

Volume

 

 

23.3

 

 

12.5

%

 

 

90.0

 

13.7

%

Pricing

 

 

8.4

 

 

4.5

%

 

 

20.0

 

3.1

%

Foreign currency translation

 

 

(5.0

)

 

(2.7

) %

 

 

2.4

 

0.4

%

Total change

 

$

67.2

 

 

36.0

%

 

$

257.0

 

39.5

%

Fiscal 2022 Sales

 

$

253.4

 

 

 

 

$

906.6

 

 

 
 

 COLUMBUS McKINNON CORPORATION

Q4 FY 2022 Gross Profit Bridge

 

($ in millions)

Quarter

 

Year To Date

Fiscal 2021 Gross Profit

$

64.1

 

 

$

220.2

 

Acquisitions

 

17.3

 

 

 

61.3

 

Sales volume and mix

 

7.6

 

 

 

30.7

 

Productivity, net of other cost changes

 

(1.3

)

 

 

10.4

 

Price, net of material cost inflation

 

3.0

 

 

 

6.0

 

Prior year factory closure costs

 

 

 

 

2.7

 

Foreign currency translation

 

(1.8

)

 

 

0.6

 

Acquisition integration costs

 

 

 

 

(0.5

)

Business realignment costs

 

0.3

 

 

 

(0.8

)

Acquisition amortization of backlog

 

(1.7

)

 

 

(2.1

)

Prior year gain on sale of building

 

 

 

 

(2.2

)

Tariffs

 

(0.5

)

 

 

(2.6

)

Product liability

 

 

 

 

(3.0

)

Acquisition inventory step-up expense

 

(1.5

)

 

 

(5.0

)

Total change

 

21.4

 

 

 

95.5

 

Fiscal 2022 Gross Profit

$

85.5

 

 

$

315.7

 

 
 

U.S. Shipping Days by Quarter

 
 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

FY 23

 

63

 

64

 

60

 

63

 

250

 

 

 

 

 

 

 

 

 

 

 

FY 22

 

63

 

64

 

61

 

63

 

251

 

 

 

 

 

 

 

 

 

 

 

FY 21

 

63

 

64

 

61

 

63

 

251

 COLUMBUS McKINNON CORPORATION

Additional Data - UNAUDITED

 

 

 

March 31, 2022

 

December 31,
2021

 

March 31, 2021

($ in millions)

 

 

 

 

 

 

 

 

 

Backlog

 

$

309.1

 

 

$

294.7

 

 

$

171.7

 

Long-term backlog

 

 

 

 

 

 

 

 

 

Expected to ship beyond 3 months

 

$

135.2

 

 

$

116.3

 

 

$

68.0

 

Long-term backlog as % of total backlog

 

 

43.7

%

 

 

39.5

%

 

 

39.6

%

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

 

 

 

 

 

 

 

Days sales outstanding

 

 

53.0

days

 

 

50.6

days

 

 

51.5

days

 

 

 

 

 

 

 

 

 

 

Inventory turns per year

 

 

 

 

 

 

 

 

 

(based on cost of products sold)

 

 

3.9

turns

 

 

3.3

turns

 

 

4.4

turns

Days' inventory

 

 

93.6

days

 

 

111.4

days

 

 

83.3

days

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

 

 

 

 

 

 

 

 

Days payables outstanding

 

 

58.7

days

 

 

56.9

days

 

 

58.7

days

 

 

 

 

 

 

 

 

 

 

Working capital as a % of sales (2)

 

 

15.5

%

 

 

15.2

%

 

 

9.3

%

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

25.2

 

 

$

5.8

 

 

$

26.9

 

Capital expenditures

 

$

3.6

 

 

$

2.8

 

 

$

6.4

 

Free cash flow (1)

 

$

21.6

 

 

$

3.0

 

 

$

20.5

 

 

 

 

 

 

 

 

 

 

 

Debt to total capitalization percentage

 

 

39.8

%

 

 

41.1

%

 

 

32.0

%

 

 

 

 

 

 

 

 

 

 

Debt, net of cash, to net total capitalization

 

 

33.9

%

 

 

35.7

%

 

 

8.1

%

(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.

(2)

 

 

March 31, 2022 figure excludes the impact of the acquisition of Garvey. December 31, 2021 figure excludes the impacts of

the acquisitions of Dorner and 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,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP gross profit

$

85,475

 

 

$

64,088

 

 

$

315,730

 

 

$

220,225

 

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

 

 

 

 

264

 

 

 

1,606

 

 

 

830

 

Acquisition integration costs

 

 

 

 

 

 

 

521

 

 

 

 

Factory closures

 

 

 

 

 

 

 

 

 

 

2,671

 

Gain on sale of building

 

 

 

 

 

 

 

 

 

 

(2,189

)

Non-GAAP adjusted gross profit

$

88,671

 

 

$

64,352

 

 

$

327,849

 

 

$

221,537

 

 

 

 

 

 

 

 

 

Sales

$

253,368

 

 

$

186,235

 

 

$

906,555

 

 

$

649,642

 

Add back:

 

 

 

 

 

 

 

Acquisition amortization of backlog

 

1,650

 

 

 

 

 

 

2,100

 

 

 

 

Non-GAAP sales

$

255,018

 

 

$

186,235

 

 

$

908,655

 

 

$

649,642

 

 

 

 

 

 

 

 

 

Gross margin - GAAP

 

33.7

%

 

 

34.4

%

 

 

34.8

%

 

 

33.9

%

Adjusted gross margin - Non-GAAP

 

34.8

%

 

 

34.6

%

 

 

36.1

%

 

 

34.1

%

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,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP income from operations

$

24,059

 

 

$

14,199

 

 

$

73,781

 

 

$

42,255

 

Add back (deduct):

 

 

 

 

 

 

 

Acquisition deal and integration costs

 

229

 

 

 

3,951

 

 

 

10,473

 

 

 

3,951

 

Acquisition inventory step-up expense

 

1,546

 

 

 

 

 

 

5,042

 

 

 

 

Business realignment costs

 

1,115

 

 

 

412

 

 

 

3,902

 

 

 

1,470

 

Product liability settlement

 

 

 

 

 

 

 

2,850

 

 

 

 

Acquisition amortization of backlog

 

1,650

 

 

 

 

 

 

2,100

 

 

 

 

Factory closures

 

 

 

 

306

 

 

 

 

 

 

3,778

 

Insurance recovery legal costs

 

 

 

 

 

 

 

 

 

 

229

 

Gain on sale of building

 

 

 

 

 

 

 

 

 

 

(2,638

)

Non-GAAP adjusted income from operations

$

28,599

 

 

$

18,868

 

 

$

98,148

 

 

$

49,045

 

 

 

 

 

 

 

 

 

Sales

$

253,368

 

 

$

186,235

 

 

$

906,555

 

 

$

649,642

 

Add back:

 

 

 

 

 

 

 

Acquisition amortization of backlog

 

1,650

 

 

 

 

 

 

2,100

 

 

 

 

Non-GAAP sales

$

255,018

 

 

$

186,235

 

 

$

908,655

 

 

$

649,642

 

 

 

 

 

 

 

 

 

Operating margin - GAAP

 

9.5

%

 

 

7.6

%

 

 

8.1

%

 

 

6.5

%

Adjusted operating margin - Non-GAAP

 

11.2

%

 

 

10.1

%

 

 

10.8

%

 

 

7.5

%

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,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP net income (loss)

$

11,826

 

 

$

9,585

 

 

$

29,660

 

 

$

9,106

 

Add back (deduct):

 

 

 

 

 

 

 

Amortization of intangibles

 

6,635

 

 

 

3,174

 

 

 

25,283

 

 

 

12,623

 

Cost of debt refinancing

 

 

 

 

 

 

 

14,803

 

 

 

 

Acquisition deal and integration costs

 

229

 

 

 

3,951

 

 

 

10,473

 

 

 

3,951

 

Acquisition inventory step-up expense

 

1,546

 

 

 

 

 

 

5,042

 

 

 

 

Business realignment costs

 

1,115

 

 

 

412

 

 

 

3,902

 

 

 

1,470

 

Product liability settlement

 

 

 

 

 

 

 

2,850

 

 

 

 

Acquisition amortization of backlog

 

1,650

 

 

 

 

 

 

2,100

 

 

 

 

Non-cash pension settlement expense

 

 

 

 

 

 

 

 

 

 

19,046

 

Factory closures

 

 

 

 

306

 

 

 

 

 

 

3,778

 

Insurance recovery legal costs

 

 

 

 

 

 

 

 

 

 

229

 

Gain on sale of building

 

 

 

 

 

 

 

 

 

 

(2,638

)

Normalize tax rate to 22% (1)

 

(260

)

 

 

(2,772

)

 

 

(13,852

)

 

 

(9,708

)

Non-GAAP adjusted net income

$

22,741

 

 

$

14,656

 

 

$

80,261

 

 

$

37,857

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

28,845

 

 

 

24,384

 

 

 

28,401

 

 

 

24,173

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share - GAAP

$

0.41

 

 

$

0.39

 

 

$

1.04

 

 

$

0.38

 

 

 

 

 

 

 

 

 

Diluted income per share - Non-GAAP

$

0.79

 

 

$

0.60

 

 

$

2.83

 

 

$

1.57

 

(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, including amortization of intangible assets, and also adjusted for 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 with the measures 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. The Company believes that representing adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.

 COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA

($ in thousands)

 

 

Three Months Ended
March 31,

 

Year Ended March 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP net income (loss)

$

11,826

 

 

$

9,585

 

 

$

29,660

 

 

$

9,106

 

Add back (deduct):

 

 

 

 

 

 

 

Income tax expense (benefit)

 

6,154

 

 

 

1,362

 

 

 

8,786

 

 

 

970

 

Interest and debt expense

 

5,352

 

 

 

2,889

 

 

 

20,126

 

 

 

12,081

 

Investment (income) loss

 

578

 

 

 

(264

)

 

 

(46

)

 

 

(1,693

)

Foreign currency exchange (gain) loss

 

527

 

 

 

(142

)

 

 

1,574

 

 

 

941

 

Other (income) expense, net

 

(378

)

 

 

769

 

 

 

(1,122

)

 

 

20,850

 

Depreciation and amortization expense

 

10,679

 

 

 

6,950

 

 

 

41,924

 

 

 

28,153

 

Cost of debt refinancing

 

 

 

 

 

 

 

14,803

 

 

 

 

Acquisition deal and integration costs

 

229

 

 

 

3,951

 

 

 

10,473

 

 

 

3,951

 

Acquisition inventory step-up expense

 

1,546

 

 

 

 

 

 

5,042

 

 

 

 

Business realignment costs

 

1,115

 

 

 

412

 

 

 

3,902

 

 

 

1,470

 

Product liability settlement

 

 

 

 

 

 

 

2,850

 

 

 

 

Acquisition amortization of backlog

 

1,650

 

 

 

 

 

 

2,100

 

 

 

 

Factory closures

 

 

 

 

306

 

 

 

 

 

 

3,778

 

Insurance recovery legal costs

 

 

 

 

 

 

 

 

 

 

229

 

Gain on sale of building

 

 

 

 

 

 

 

 

 

 

(2,638

)

Non-GAAP adjusted EBITDA

$

39,278

 

 

$

25,818

 

 

$

140,072

 

 

$

77,198

 

 

 

 

 

 

 

 

 

Sales

$

253,368

 

 

$

186,235

 

 

$

906,555

 

 

$

649,642

 

Add back:

 

 

 

 

 

 

 

Acquisition amortization of backlog

 

1,650

 

 

 

 

 

 

2,100

 

 

 

 

Non-GAAP sales

$

255,018

 

 

$

186,235

 

 

$

908,655

 

 

$

649,642

 

 

 

 

 

 

 

 

 

Net income (loss) margin - GAAP

 

4.7

%

 

 

5.1

%

 

 

3.3

%

 

 

1.4

%

Adjusted EBITDA margin - Non-GAAP

 

15.4

%

 

 

13.9

%

 

 

15.4

%

 

 

11.9

%

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
Senior 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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