Technology
Columbus McKinnon Reports 16% Order Growth in Q2 FY25
Published
2 months agoon
By
CHARLOTTE, NC, Oct. 30, 2024 /PRNewswire/ — Columbus McKinnon Corporation (Nasdaq: CMCO) (“Columbus McKinnon” or the “Company”), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2025 second quarter, which ended September 30, 2024.
Second Quarter 2025 Highlights (compared with prior-year period, except where otherwise noted)
Orders increased 16% with a book-to-bill ratio of 1.08x; Precision conveyance up 42%Net sales decreased 6% to $242.3 million reflecting impacts related to Hurricane Helene, the ramp up of linear motion production in Monterrey, MX and project timingResults included $17.5 million2 of non-cash pension settlement expense and $11.8 million2 for factory closure and start-up costs as we transitioned manufacturing to our Monterrey, MX facilityGAAP EPS of ($0.52) and Adjusted EPS1 of $0.70Repaid $10 million of debt in Q2 FY25; Anticipate FY25 debt repayment of $60 million Executed $4.9 million of share repurchases in Q2 FY25 and $5.0 million in early Q3 FY25
“Our commercial and operational initiatives are delivering wins with new and existing customers in attractive vertical markets and we delivered one of our highest order quarters in history with 16% order growth and a book-to-bill ratio of 1.08x in Q2.” said David J. Wilson, President and Chief Executive Officer. “Order growth, with particular strength in precision conveyance, and an encouraging funnel of promising opportunities supports our fiscal 2025 guidance and positions us well for fiscal 2026.”
“But for the impact of Hurricane Helene, we delivered on our guidance for the second quarter while transitioning our linear motion manufacturing activity to Monterrey,” continued Wilson. “We remain confident in our long-term financial objectives and are advancing the strategic initiatives that will both grow our business and deliver targeted margin expansion over time.”
Second Quarter Fiscal 2025 Sales
($ in millions)
Q2 FY25
Q2 FY24
Change
% Change
Net sales
$ 242.3
$ 258.4
$ (16.1)
(6.2) %
U.S. sales
$ 132.3
$ 145.2
$ (12.9)
(8.9) %
% of total
55 %
56 %
Non-U.S. sales
$ 110.0
$ 113.2
$ (3.2)
(2.8) %
% of total
45 %
44 %
For the quarter, net sales decreased $16.1 million, or 6.2%. In the U.S., sales were down $12.9 million, or 8.9%. Price improvement of $1.3 million helped to offset $14.2 million in lower volume. Sales outside the U.S. decreased $3.2 million, or 2.8%. Price improvement of $2.5 million helped to offset $6.0 million of lower volume. Favorable foreign currency translation was $0.3 million.
Second Quarter Fiscal 2025 Operating Results
($ in millions)
Q2 FY25
Q2 FY24
Change
% Change
Gross profit
$ 74.7
$ 100.0
$ (25.2)
(25.2) %
Gross margin
30.9 %
38.7 %
(780) bps
Adjusted Gross Profit1
$ 87.9
$ 100.0
$ (12.0)
(12.0) %
Adjusted Gross Margin1
36.3 %
38.7 %
(240) bps
Income from operations
$ 10.8
$ 33.4
$ (22.5)
(67.6) %
Operating margin
4.5 %
12.9 %
(840) bps
Adjusted Operating Income1
$ 27.0
$ 34.1
$ (7.2)
(21.0) %
Adjusted Operating Margin1
11.1 %
13.2 %
(210) bps
Net income (loss)
$ (15.0)
$ 15.8
$ (30.9)
NM
Net income (loss) margin
(6.2) %
6.1 %
(1,230) bps
GAAP EPS
$ (0.52)
$ 0.55
$ (1.07)
NM
Adjusted EPS1
$ 0.70
$ 0.76
$ (0.06)
(7.9) %
Adjusted EBITDA1
$ 39.2
$ 45.7
$ (6.6)
(14.4) %
Adjusted EBITDA Margin1
16.2 %
17.7 %
(150) bps
Adjusted EPS1 excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability.
Third Quarter Fiscal 2025 Guidance
The Company is issuing the following guidance for the third quarter of fiscal 2025, ending December 31, 2024:
Metric
Q3 FY25
Net sales
Flat year-over-year
Adjusted EPS3
Flat year-over-year
Third quarter 2025 guidance assumes approximately $8 million of interest expense, $8 million of amortization, an effective tax rate of 25% and 28.9 million diluted average shares outstanding.
The Company is issuing the following guidance for the fiscal year 2025, ending March 31, 2025:
Metric
FY25
Net sales
Flat to low-single digit growth year-over-year
Adjusted EPS3
Mid-single digit growth year-over-year
Capital Expenditures
$20 million to $25 million
Net Leverage Ratio3
~2.3x
Fiscal 2025 guidance assumes approximately $32 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding.
Teleconference/Webcast
Columbus McKinnon will host a conference call today at 10:00 AM Eastern Time to discuss the Company’s financial results and strategy. The conference call will be accessible through live webcast and via phone by dialing 1-800-836-8184. The webcast, earnings release and earnings presentation will be available at the Company’s investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company’s investor relations website and available via phone by dialing 1-888-660-6345 and enter the conference ID number 93312# through Wednesday, November 6, 2024.
______________________
1
Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.
2
Represents $23.2 million of non-cash pension settlement costs, $11.9 million of expense related to the closure of our Charlotte, NC factory and $3.8 million of Monterrey MX start-up costs, which are taxed at a 24.6% tax rate.
3
The Company has not reconciled the Adjusted EPS and Net Leverage Ratio guidance to the most comparable GAAP financial measure outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measures. Forward-looking guidance regarding Adjusted EPS and Net Leverage Ratio is made in a manner consistent with the relevant definitions and assumptions noted herein and in alignment with the Company’s financial covenants per the Company’s Amended and Restated Credit Agreement.
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.cmco.com.
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “illustrative,” “intend,” “likely,” “may,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including our third quarter and fiscal year 2025 net sales and Adjusted EPS, and our fiscal year 2025 net leverage ratio and capital expenditure guidance; (ii) our operational and financial targets and capital allocation policy; (iii) general economic trend and trends in the industry and markets; (iv) the amount of debt to be paid down by the Company during fiscal year 2025; (v) the estimated costs and benefits related to the consolidation of the Company’s North American linear motion operations in Charlotte, North Carolina to its manufacturing facility in Monterrey, Mexico (vi) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates and judgements; and (vii) the competitive environment in which we operate; are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
Contacts:
Gregory P. Rustowicz
Kristine Moser
EVP Finance and CFO
VP IR and Treasurer
Columbus McKinnon Corporation
Columbus McKinnon Corporation
716-689-5442
704-322-2488
Financial tables follow.
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements – UNAUDITED
(In thousands, except per share and percentage data)
Three Months Ended
September 30,
2024
September 30,
2023
Change
Net sales
$ 242,274
$ 258,400
(6.2) %
Cost of products sold
167,531
158,424
5.7 %
Gross profit
74,743
99,976
(25.2) %
Gross profit margin
30.9 %
38.7 %
Selling expenses
26,926
26,867
0.2 %
% of net sales
11.1 %
10.4 %
General and administrative expenses
23,363
25,709
(9.1) %
% of net sales
9.6 %
9.9 %
Research and development expenses
6,102
6,541
(6.7) %
% of net sales
2.5 %
2.5 %
Amortization of intangibles
7,547
7,508
0.5 %
Income from operations
10,805
33,351
(67.6) %
Operating margin
4.5 %
12.9 %
Interest and debt expense
8,352
10,211
(18.2) %
Investment (income) loss
(610)
88
NM
Foreign currency exchange (gain) loss
(792)
1,746
NM
Other (income) expense, net
23,806
393
5,957.5 %
Income (loss) before income tax expense (benefit)
(19,951)
20,913
NM
Income tax expense (benefit)
(4,908)
5,100
NM
Net income (loss)
$ (15,043)
$ 15,813
NM
Average basic shares outstanding
28,869
28,725
0.5 %
Basic income (loss) per share
$ (0.52)
$ 0.55
NM
Average diluted shares outstanding
28,869
29,001
(0.5) %
Diluted income (loss) per share
$ (0.52)
$ 0.55
NM
Dividends declared per common share
$ 0.07
$ 0.07
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements – UNAUDITED
(In thousands, except per share and percentage data)
Six Months Ended
September 30,
2024
September 30,
2023
Change
Net sales
$ 482,000
$ 493,892
(2.4) %
Cost of products sold
318,227
307,266
3.6 %
Gross profit
163,773
186,626
(12.2) %
Gross profit margin
34.0 %
37.8 %
Selling expenses
54,696
51,848
5.5 %
% of net sales
11.3 %
10.5 %
General and administrative expenses
49,810
53,152
(6.3) %
% of net sales
10.3 %
10.8 %
Research and development expenses
12,268
12,442
(1.4) %
% of net sales
2.5 %
2.5 %
Amortization of intangibles
15,047
14,385
4.6 %
Income from operations
31,952
54,799
(41.7) %
Operating margin
6.6 %
11.1 %
Interest and debt expense
16,587
18,836
(11.9) %
Investment (income) loss
(819)
(454)
80.4 %
Foreign currency exchange (gain) loss
(398)
2,230
NM
Other (income) expense, net
24,484
605
3,946.9 %
Income (loss) before income tax expense (benefit)
(7,902)
33,582
NM
Income tax expense (benefit)
(1,488)
8,494
NM
Net income (loss)
$ (6,414)
$ 25,088
NM
Average basic shares outstanding
28,852
28,694
0.6 %
Basic income (loss) per share
$ (0.22)
$ 0.87
NM
Average diluted shares outstanding
28,852
28,962
(0.4) %
Diluted income (loss) per share
$ (0.22)
$ 0.87
NM
Dividends declared per common share
$ 0.07
$ 0.07
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
September 30,
2024
March 31, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 55,683
$ 114,126
Trade accounts receivable
170,669
171,186
Inventories
201,036
186,091
Prepaid expenses and other
40,357
42,752
Total current assets
467,745
514,155
Property, plant, and equipment, net
107,258
106,395
Goodwill
717,982
710,334
Other intangibles, net
375,598
385,634
Marketable securities
10,579
11,447
Deferred taxes on income
1,367
1,797
Other assets
96,355
96,183
Total assets
$ 1,776,884
$ 1,825,945
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable
$ 72,106
$ 83,118
Accrued liabilities
106,847
127,973
Current portion of long-term debt and finance lease obligations
50,704
50,670
Total current liabilities
229,657
261,761
Term loan, AR securitization facility and finance lease obligations
449,910
479,566
Other non current liabilities
201,187
202,555
Total liabilities
$ 880,754
$ 943,882
Shareholders’ equity:
Common stock
287
288
Treasury stock
(5,946)
(1,001)
Additional paid in capital
529,599
527,125
Retained earnings
386,892
395,328
Accumulated other comprehensive loss
(14,702)
(39,677)
Total shareholders’ equity
$ 896,130
$ 882,063
Total liabilities and shareholders’ equity
$ 1,776,884
$ 1,825,945
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows – UNAUDITED
(In thousands)
Six Months Ended
September 30,
2024
September 30,
2023
Operating activities:
Net income (loss)
$ (6,414)
$ 25,088
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization
24,028
22,482
Deferred income taxes and related valuation allowance
(13,662)
(6,097)
Net loss (gain) on sale of real estate, investments and other
(650)
(302)
Non-cash pension settlement
23,201
—
Stock-based compensation
4,175
5,264
Amortization of deferred financing costs
1,244
1,106
Impairment of operating lease
3,268
—
Loss (gain) on hedging instruments
(2)
554
Loss (gain) on disposal of Fixed Assets
418
—
Non-cash lease expense
5,202
4,684
Changes in operating assets and liabilities, net of effects of business acquisitions:
Trade accounts receivable
2,384
(11,409)
Inventories
(12,277)
(22,415)
Prepaid expenses and other
(11,714)
(5,868)
Other assets
183
357
Trade accounts payable
(10,711)
(5,996)
Accrued liabilities
(6,154)
(3,085)
Non-current liabilities
(3,889)
(4,921)
Net cash provided by (used for) operating activities
(1,370)
(558)
Investing activities:
Proceeds from sales of marketable securities
3,153
1,100
Purchases of marketable securities
(1,993)
(1,809)
Capital expenditures
(10,068)
(10,319)
Purchase of businesses, net of cash acquired
—
(108,145)
Dividend received from equity method investment
—
144
Net cash provided by (used for) investing activities
(8,908)
(119,029)
Financing activities:
Proceeds from the issuance of common stock
86
492
Purchases of treasury stock
(4,945)
—
Repayment of debt
(30,326)
(25,294)
Proceeds from issuance of long-term debt
—
120,000
Fees paid for borrowings on long-term debt
—
(2,859)
Payment to former owners of montratec
(6,711)
—
Fees paid for debt repricing
(169)
—
Cash inflows from hedging activities
11,862
12,084
Cash outflows from hedging activities
(11,809)
(12,660)
Payment of dividends
(4,038)
(4,015)
Other
(1,789)
(1,954)
Net cash provided by (used for) financing activities
(47,839)
85,794
Effect of exchange rate changes on cash
(326)
(325)
Net change in cash and cash equivalents
(58,443)
(34,118)
Cash, cash equivalents, and restricted cash at beginning of year
$ 114,376
$ 133,426
Cash, cash equivalents, and restricted cash at end of period
$ 55,933
$ 99,308
COLUMBUS McKINNON CORPORATION
Q2 FY 2025 Net Sales Bridge
Quarter
Year To Date
($ in millions)
$ Change
% Change
$ Change
% Change
Fiscal 2024 Net Sales
$ 258.4
$ 493.9
Acquisition
—
— %
2.7
0.5 %
Pricing
3.8
1.5 %
7.3
1.5 %
Volume
(20.2)
(7.8) %
(21.6)
(4.4) %
Foreign currency translation
0.3
0.1 %
(0.3)
— %
Total change
$ (16.1)
(6.2) %
$ (11.9)
(2.4) %
Fiscal 2025 Net Sales
$ 242.3
$ 482.0
COLUMBUS McKINNON CORPORATION
Q2 FY 2025 Gross Profit Bridge
($ in millions)
Quarter
Year To Date
Fiscal 2024 Gross Profit
$ 100.0
$ 186.6
Acquisition
—
0.8
Price, net of manufacturing costs changes (incl. inflation)
0.1
3.5
Monterrey, MX new factory start-up costs
(2.2)
(3.8)
Factory and warehouse consolidation costs
(10.8)
(10.8)
Sales volume and mix
(12.3)
(12.1)
Other
(0.3)
(0.5)
Foreign currency translation
0.2
0.1
Total change
(25.3)
(22.8)
Fiscal 2025 Gross Profit
$ 74.7
$ 163.8
U.S. Shipping Days by Quarter
Q1
Q2
Q3
Q4
Total
FY25
64
63
60
62
249
FY24
63
62
61
62
248
COLUMBUS McKINNON CORPORATION
Additional Data1
(Unaudited)
Period Ended
September 30,
2024
June 30,
2024
March 31,
2024
September 30,
2023
($ in millions)
Backlog
$ 317.6
$ 292.8
$ 280.8
$ 317.7
Long-term backlog
Expected to ship beyond 3 months
$ 172.5
$ 156.0
$ 144.6
$ 148.3
Long-term backlog as % of total backlog
54.3
%
53.3
%
51.5
%
46.7
%
Debt to total capitalization percentage
35.8
%
36.6
%
37.5
%
39.8
%
Debt, net of cash, to net total capitalization
33.2
%
33.3
%
32.0
%
35.3
%
Working capital as a % of sales 2
23.3
%
22.5
%
19.1
%
21.8
%
Three Months Ended
September 30,
2024
June 30,
2024
March 31,
2024
September 30,
2023
($ in millions)
Trade accounts receivable
Days sales outstanding
64.1
days
63.3
days
58.7
days
58.6
days
Inventory turns per year
(based on cost of products sold)
3.3
turns
3.0
turns
3.7
turns
3.1
turns
Days’ inventory
110.6
days
121.7
days
98.6
days
117.7
days
Trade accounts payable
Days payables outstanding
46.3
days
50.6
days
50.9
days
48.3
days
Net cash provided by (used for) operating activities
$ 9.4
$ (10.8)
$ 38.6
$ 16.7
Capital expenditures
$ 5.4
$ 4.6
$ 8.5
$ 5.0
Free Cash Flow 3
$ 4.0
$ (15.4)
$ 30.1
$ 11.7
______________________
1
Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company’s financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding.
2
March 31, 2024 and September 30, 2023 exclude the impact of the acquisition of montratec®.
3
Free Cash Flow is a non-GAAP financial measure. Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. See the table above for the calculation of Free Cash Flow.
NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
COLUMBUS McKINNON CORPORATION
Reconciliation of Gross Profit to Adjusted Gross Profit
($ in thousands)
Three Months Ended
Six Months Ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Gross profit
$ 74,743
$ 99,976
$ 163,773
$ 186,626
Add back (deduct):
Business realignment costs
76
—
468
196
Hurricane Helene cost impact
171
—
171
—
Factory and warehouse consolidation costs
10,763
—
10,763
—
Monterrey, MX new factory start-up costs
2,185
—
3,810
—
Adjusted Gross Profit
$ 87,938
$ 99,976
$ 178,985
$ 186,822
Net sales
$ 242,274
$ 258,400
$ 482,000
$ 493,892
Gross margin
30.9 %
38.7 %
34.0 %
37.8 %
Adjusted Gross Margin
36.3 %
38.7 %
37.1 %
37.8 %
Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s gross profit and gross margin to the historical periods’ gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit and gross margin to that of other companies.
COLUMBUS McKINNON CORPORATION
Reconciliation of Income from Operations to Adjusted Operating Income
($ in thousands)
Three Months Ended
Six Months Ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Income from operations
$ 10,805
$ 33,351
$ 31,952
$ 54,799
Add back (deduct):
Acquisition deal and integration costs
—
508
—
3,095
Business realignment costs
281
40
1,131
415
Factory and warehouse consolidation costs
11,904
82
11,904
199
Headquarter relocation costs
51
146
147
1,374
Hurricane Helene cost impact
171
—
171
—
Monterrey, MX new factory start-up costs
3,751
—
7,317
—
Adjusted Operating Income
$ 26,963
$ 34,127
$ 52,622
$ 59,882
Net sales
$ 242,274
$ 258,400
$ 482,000
$ 493,892
Operating margin
4.5 %
12.9 %
6.6 %
11.1 %
Adjusted Operating Margin
11.1 %
13.2 %
10.9 %
12.1 %
Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Income and Diluted Earnings per Share to
Adjusted Net Income and Adjusted Earnings per Share
($ in thousands, except per share data)
Three Months Ended
Six Months Ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Net income (loss)
$ (15,043)
$ 15,813
$ (6,414)
$ 25,088
Add back (deduct):
Amortization of intangibles
7,547
7,508
15,047
14,385
Acquisition deal and integration costs
—
508
—
3,095
Business realignment costs
281
40
1,131
415
Factory and warehouse consolidation costs
11,904
82
11,904
199
Headquarter relocation costs
51
146
147
1,374
Hurricane Helene cost impact
171
—
171
—
Monterrey, MX new factory start-up costs
3,751
—
7,317
—
Non-cash pension settlement expense
23,201
—
23,201
—
Normalize tax rate 1
(11,647)
(2,199)
(14,242)
(4,768)
Adjusted Net Income
$ 20,216
$ 21,898
$ 38,262
$ 39,788
GAAP average diluted shares outstanding
28,869
29,001
28,852
28,962
Add back:
Effect of dilutive share-based awards
205
—
253
—
Adjusted Diluted Shares Outstanding
$ 29,074
$ 29,001
$ 29,105
$ 28,962
GAAP EPS
$ (0.52)
$ 0.55
$ (0.22)
$ 0.87
Adjusted EPS
$ 0.70
$ 0.76
$ 1.31
$ 1.37
1
Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of current periods’ net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods’ net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company’s net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and 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 Net Income to Adjusted EBITDA
($ in thousands)
Three Months Ended
Six Months Ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Net income (loss)
$ (15,043)
$ 15,813
$ (6,414)
$ 25,088
Add back (deduct):
Income tax expense (benefit)
(4,908)
5,100
(1,488)
8,494
Interest and debt expense
8,352
10,211
16,587
18,836
Investment (income) loss
(610)
88
(819)
(454)
Foreign currency exchange (gain) loss
(792)
1,746
(398)
2,230
Other (income) expense, net
23,806
393
24,484
605
Depreciation and amortization expense
12,188
11,592
24,028
22,482
Acquisition deal and integration costs
—
508
—
3,095
Business realignment costs
281
40
1,131
415
Factory and warehouse consolidation costs
11,904
82
11,904
199
Headquarter relocation costs
51
146
147
1,374
Hurricane Helene cost impact
171
—
171
—
Monterrey, MX new factory start-up costs
3,751
—
7,317
—
Adjusted EBITDA
$ 39,151
$ 45,719
$ 76,650
$ 82,364
Net sales
$ 242,274
$ 258,400
$ 482,000
$ 493,892
Net income margin
(6.2) %
6.1 %
(1.3) %
5.1 %
Adjusted EBITDA Margin
16.2 %
17.7 %
15.9 %
16.7 %
Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not a measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Leverage Ratio
($ in thousands)
Twelve Months Ended
September 30,
2024
September 30,
2023
Net income (loss)
$ 15,123
$ 51,012
Add back (deduct):
Annualize EBITDA for the montratec acquisition1
—
5,410
Annualize synergies for the montratec acquisition1
—
293
Income tax expense (benefit)
4,920
20,694
Interest and debt expense
35,708
33,807
Non-cash pension settlement
28,185
—
Amortization of deferred financing costs
2,487
1,967
Stock Compensation Expense
10,950
12,060
Depreciation and amortization expense
47,491
43,536
Cost of debt refinancing
1,190
—
Acquisition deal and integration costs
116
3,606
Excluded acquisition deal and integration costs2
—
(510)
Business realignment costs
2,583
2,664
Excluded business realignment costs2
—
(2,249)
Factory and warehouse consolidation costs
12,449
199
Garvey contingent consideration
—
1,230
Headquarter relocation costs
832
2,370
Monterrey, MX new factory start-up costs
11,806
—
Excluded Monterrey, MX new factory start-up costs3
(3,664)
—
Credit Agreement Trailing Twelve Month Adjusted EBITDA
$ 170,176
$ 176,089
Current portion of long-term debt and finance lease obligations
$ 50,704
$ 50,636
Term loan, AR securitization facility and finance lease obligations
449,910
514,205
Total debt
$ 500,614
$ 564,841
Standby Letters of Credit
15,692
15,525
Cash and cash equivalents
(55,683)
(99,058)
Net Debt
$ 460,623
$ 481,308
Net Leverage Ratio
2.71x
2.73x
1
EBITDA is normalized to include a full year of the acquired entity and assumes all cost synergies are achieved in TTM Q2 FY24.
2
The Company’s credit agreement definition of Adjusted EBITDA excludes certain acquisition deal and integration costs and business realignment costs that are incurred beyond one year after the close of an acquisition.
3
The Company’s credit agreement definition of Adjusted EBITDA excludes certain Monterrey, MX factory start-up costs.
Net Debt is defined in the credit agreement as total debt plus standby letters of credit, net of cash and cash equivalents. Net Leverage Ratio is defined as Net Debt divided by the Credit Agreement Trailing Twelve Month Adjusted EBITDA. Credit Agreement Trailing Twelve Month Adjusted EBITDA is defined as net income adjusted for interest expense, income taxes, depreciation, amortization, and other adjustments. Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are important for investors and other readers of the Company’s financial statements.
View original content to download multimedia:https://www.prnewswire.com/news-releases/columbus-mckinnon-reports-16-order-growth-in-q2-fy25-302291065.html
SOURCE Columbus McKinnon Corporation
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Live Good: A Journey of Courage, Education and Purpose
Published
36 minutes agoon
December 24, 2024By
Live Good is the realization of one individual’s inspiring vision to create something meaningful to share with the world.
IRVINE, Calif., Dec. 24, 2024 /PRNewswire/ — Founded on the principles of time, education and a sense of purpose, Live Good aspires to empower individuals through access to transformative learning opportunities.
“When I finally found the courage to create Live Good, I wanted it to embody the values and principles that I find meaningful,” said Jennifer Chi, founder of Live Good. “To me, the most precious resource in life is time. The time you spend can never be reclaimed. If I was going to spend all this time and energy on something, it had to be something I deeply believed in.”
The second cornerstone of Live Good is education. Drawing from personal experiences, Jennifer emphasizes education as a life-changing force. Books became vital growing up, opening windows to new perspectives and worlds. “My favorite book as a child was Little House on the Prairie by Laura Ingalls Wilder,” Jennifer shared. “It may have been a simple book about a girl living in the 1800s learning how to cook and do chores to help her family, but now I understand how incredible it was that a little girl living back then even knew how to read and write. She had the foresight to understand that writing about her life on the prairie, however simple it seemed, might be of some importance in the future. And she had the courage to publish her own words.”
Recognizing the transformative power of education and the impact of mentorship, Live Good prioritizes access to education as a central mission. “My love for reading and curiosity for learning became a lifeline,” Jennifer added. “I was blessed with teachers who saw potential in a very quiet and shy little girl. Live Good is my way of giving others the same opportunities that once gave me a little spark inside and a pathway forward.”
Through innovative programs and partnerships, Live Good aims to make education accessible and foster growth and resilience. It’s more than an initiative—it’s a testament to the belief that every moment spent on meaningful endeavors can ripple out to create a brighter future for others.
Live Good proudly aligns with educational models, such as Capstone Programs in the University of California (UC) school system. These programs serve as a bridge between academic learning and real-world application, embodying the mission of Live Good by fostering life-changing learning experiences.
Other educational initiatives focus on collaborating with Women in Information and Computer Sciences within the UC system to create programs that empower women through high-tech training. Additionally, Live Good offers a mentorship program for at-risk youth from schools spanning San Francisco to Southern California to foster college admission and equip students with the skills they need to realize their dreams.
For more information about Live Good Inc, and to sign up for their newsletter, visit Live Good Inc. Follow on Instagram, Facebook and Threads.
Contact:
Adrienne Johnson
***@gmail.com
Photos:
https://www.prlog.org/13053993
Press release distributed by PRLog
View original content:https://www.prnewswire.com/news-releases/live-good-a-journey-of-courage-education-and-purpose-302338750.html
SOURCE Live Good Inc.
Technology
Town of Ault joins the Rocky Mountain E-Purchasing System
Published
36 minutes agoon
December 24, 2024By
The Town of Ault announced it has joined the Rocky Mountain E-Purchasing System and will be publishing and distributing upcoming bid opportunities on the system.
AULT, Colo., Dec. 24, 2024 /PRNewswire-PRWeb/ — The Town of Ault announced it has joined the Rocky Mountain E-Purchasing System and will be publishing and distributing upcoming bid opportunities on the system. Bidnet Direct by SOVRA’s Rocky Mountain E-Purchasing System connects over 450 participating agencies from across Colorado and Wyoming. The purchasing group provides a transparent bid process through which the bid is available to all vendors at the same time. The Town of Ault invites all potential vendors to register online at http://www.bidnetdirect.com/colorado/townofault.
The Town of Ault joined the purchasing group in December 2024. The Town of Ault will utilize the system to streamline their purchasing process including bid distribution, bid management, and vendor relations. The Rocky Mountain E-Purchasing System is a single, online location for managing sourcing information and activities and provides 456 local government agencies the tools needed to have a transparent bid process while minimizing costs and saving time.
“The Rocky Mountain E-Purchasing System allows us to establish and maintain a system of transparency for not only the agency but the vendors who would like to do business with us. All the information we have regarding the bid, addenda, and awards, along with Q&A’s is available to all with just one click of the mouse. By fostering a more transparent environment, it allows for more public participation and collaboration and holds our agency accountable for all that we do during the bid process,” stated Sharon Sullivan, Town Administrator of the Town of Ault.
As a participating agency of the Rocky Mountain E-Purchasing System, it allows the Town of Ault to expand their vendor pool and enhance vendor competition without increasing distribution costs. To be added to the existing list of vendors on the Rocky Mountain E-Purchasing System, any suppliers looking to do business with the Town of Ault can register online: http://www.bidnetdirect.com/colorado/townofault. The Town of Ault encourages all interested bidders to register today.
Registered vendors can access open bids, related documents, and files, additional addendum, and available award information from all participating agencies. In addition, the Rocky Mountain E-Purchasing System offers a value-added service to notify vendors of new bids targeted to their business, including all addenda and advance notification of expiring term contracts.
With one click, the Town of Ault can now see how many vendors match a specific opportunity, how many have downloaded documents, responded and more. The Town of Ault also has its own, branded page on the public side of the Rocky Mountain E-Purchasing System in which taxpayers can view all closed bids and any awarded information.
Vendors may register on the Rocky Mountain E-Purchasing System: http://www.bidnetdirect.com/colorado/townofault. Bidnet Direct’s vendor support team is available to answer any questions regarding the registration process or the bid system at 800-835-4603 option 2.
Other local Colorado and Wyoming government agencies looking to switch from a manual bid process, please contact the Rocky Mountain E-Purchasing System for a demonstration of the no-cost sourcing solution.
About the Town of Ault:
Ault is a statutory town located in Weld County, Colorado, United States. The town population was 1,887 at the 2020 United States Census. Ault is a part of the Greeley, CO Metropolitan Statistical Area and the Front Range Urban Corridor.
About SOVRA:
SOVRA is a leading source-to-contract solution that connects regional purchasing groups, including the Rocky Mountain E-Purchasing System, across all 50 states, supporting local governments in streamlining their procurement processes. With a focus on transparency and efficiency, SOVRA empowers government agencies to enhance their purchasing activities. Learn more about how we help build stronger communities and economies by maximizing the value of every dollar spent. Visit https://sovra.com.
Media Contact
Bertrand Guignat, Bidnet Direct, 800-835-4603, bertrand.guignat@mdfcommerce.com, www.bidnetdirect.com
View original content to download multimedia:https://www.prweb.com/releases/town-of-ault-joins-the-rocky-mountain-e-purchasing-system-302337048.html
SOURCE Bidnet Direct
Technology
2025 Will See Increased QR Code Payments but Payment Card IC ASPs Will Not Return to Pre-Covid Levels
Published
2 hours agoon
December 24, 2024By
ABI Research’s 5th annual Trend Report identifies the key Digital Payment Technologies trend that will come to fruition —and the 1 that won’t—in 2025
NEW YORK, Dec. 24, 2024 /PRNewswire/ — As 2025 kicks off, predictions abound on the technology innovations expected in the year ahead. In its new whitepaper, 101 Technology Trends That Will—and Won’t—Shape 2025, analysts from global technology intelligence firm ABI Research. ABI Research analysts identify 54 trends that will shape the technology market and 47 others that, although attracting vast amounts of speculation and commentary, are less likely to move the needle over the next twelve months. In the Digital Payment Technologies space, 2025 will see increased QR code payment acceptance but little growth for payment card IC ASPs.
“2024 has been marked by challenges, from global conflicts and inflationary pressures to political uncertainty. These factors have strained enterprise and consumer spending, leading to market inertia, short-term technology investments, sidelined capital, and the exposure of vulnerable suppliers,” says Stuart Carlaw, Chief Research Officer at ABI Research. “From a technology perspective, many industries and end markets are in that awkward stage of technology adoption where they are formulating implementation strategies, assessing solutions and partners, and trying to see if they have the resources needed to roll out solutions at scale. This is a particularly sensitive time, which tends to suggest 2025 will have tech implementers and end users on the brink of a period of a massive technology shift as they work through these issues.”
What Will Happen in 2025:
QR code payment acceptance will continue to increase with use cases expanding
Although QR code payment acceptance is prevalent in countries such as China and growing in emerging digital payment markets, including in India, use cases and potential growth areas are not limited to these countries. Significant and continued investments by vendors, including PayPal, Stripe, and SumUp, are setting the foundation for increased adoption in other mature and established economies with use cases expanding. Although QR codes are already being used by many Small and Medium Enterprises (SMEs) and pop-up retail businesses, 2025 will mark the year when the technology begins to shift from one niche to partial mainstream.
What Won’t Happen in 2025:
Payment card IC ASPs will not return to pre-COVID-19 levels
Since the COVID-19 pandemic, chipset pricing has been on a continual rise, driven by increased pricing in myriad manufacturing areas, including energy, raw material, transit pricing, and inflation, driving up wages. The chip shortage further compounded this, and according to ABI Research, the Average Selling Price (ASP) for a payment card Integrated Circuit (IC) increased by approximately +30% between 2020 and 2023. However, despite pricing pressures returning, the cost of payment ICs is some years away from matching pre-COVID-19 levels. Although 2025 will mark another year of pricing deprecation, it will not be until around 2028 when pricing is expected to drop to levels similar to those achieved in 2019 steadily.
For more trends that will and won’t happen in 2025, download the whitepaper, 101 Technology Trends That Will—and Won’t—Shape 2025.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Contact Info:
Global
Deborah Petrara
Tel: +1.516.624.2558
pr@abiresearch.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/2025-will-see-increased-qr-code-payments-but-payment-card-ic-asps-will-not-return-to-pre-covid-levels-302338517.html
SOURCE ABI Research
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