Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Columbus McKinnon Reports Record Gross Margin of 37.5% for First Quarter Fiscal Year 2023


Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2023 first quarter, which ended June 30, 2022. Results include the addition of Garvey Corporation, which was acquired on December 1, 2021.

First Quarter Highlights (compared with prior year period)

  • Delivered revenue of $220 million, up 6.5% on a constant currency basis
  • Achieved record gross margin of 37.5% as Columbus McKinnon Business System (CMBS) enabled strong execution
  • Realized first quarter fiscal 2023 earnings per diluted share of $0.29 compared with a loss of $0.27 in prior-year; adjusted EPS* was $0.69, unchanged from prior-year period
  • Continued strength in demand with orders up 11% on a constant currency basis driven by 10% growth in North America and 12% growth in EMEA
  • Maintained strong balance sheet; reduced debt an additional $10 million in quarter

David Wilson, President and CEO of Columbus McKinnon, commented, “We had a strong start to the year with our first quarter results. I am proud of how our team executed to deliver growth and record gross margin while improving the business. The realignment of Columbus McKinnon’s structure is enabling cost synergies and improved collaboration across the organization. In fact, our new regional leadership structure has created greater cross-functional engagement and is unlocking even more potential to deliver results in the face of current supply chain challenges, labor constraints and high inflation. Encouragingly, we continue to see strong demand for our intelligent motion solutions across a breadth of markets. We are also well positioned financially to execute our strategy and further transform Columbus McKinnon into a higher growth, less cyclical enterprise with expanded margins.”

*Adjusted EPS is a non-GAAP measure.  See accompanying discussion and reconciliation tables in this release regarding the reconciliation of GAAP financials to non-GAAP measures.

First Quarter Fiscal 2023 Sales

   

($ in millions)

 

Q1 FY 23

 

Q1 FY 22

 

Change

 

% Change

Net sales

 

$

220.3

 

 

$

213.5

 

 

$

6.8

 

 

3.2

%

 

 

 

 

 

 

 

 

 

U.S. sales

 

$

138.7

 

 

$

124.5

 

 

$

14.2

 

 

11.4

%

% of total

 

 

63

%

 

 

58

%

 

 

 

 

Non-U.S. sales

 

$

81.6

 

 

$

89.0

 

 

$

(7.4

)

 

(8.3

)%

% of total

 

 

37

%

 

 

42

%

 

 

 

 

For the quarter, sales increased $6.8 million, or 3.2%. The acquisition added $8.5 million in sales which helped to offset unfavorable foreign currency translation of $7.0 million, or 3.3% of total sales. In the U.S., volume improved $0.1 million, or 0.1%, and price improved $6.4 million, or 5.1%. U.S. sales related to the acquisition were

$7.8 million. Outside the U.S., price improvement of $3.2 million, or 3.6% helped to offset the $4.4 million, or 4.9%, decline in volume. The acquisition added $0.7 million of sales outside the U.S.

First Quarter Fiscal 2023 Operating Results

   

($ in millions)

 

Q1 FY 23

 

Q1 FY 22

 

Change

 

% Change

Gross profit

 

$

82.5

 

 

$

74.1

 

 

$

8.5

 

11.4

%

Gross margin

 

 

37.5

%

 

 

34.7

%

 

280 bps

 

 

Adjusted gross profit*

 

$

82.5

 

 

$

77.6

 

 

$

5.0

 

6.4

%

Adjusted gross margin*

 

 

37.5

%

 

 

36.3

%

 

120 bps

 

 

Income from operations

 

$

22.8

 

 

$

10.7

 

 

$

12.1

 

112.3

%

Operating margin

 

 

10.4

%

 

 

5.0

%

 

540 bps

 

 

Adjusted income from operations*

 

$

24.6

 

 

$

23.6

 

 

$

1.0

 

4.1

%

Adjusted operating margin*

 

 

11.1

%

 

 

11.1

%

 

0 bps

 

 

Net income (loss)

 

$

8.4

 

 

$

(7.3

)

 

$

15.7

 

NM

 

Net income (loss) margin

 

 

3.8

%

 

 

(3.4

)%

 

720 bps

 

 

Diluted EPS

 

$

0.29

 

 

$

(0.27

)

 

$

0.56

 

NM

 

Adjusted EPS*

 

$

0.69

 

 

$

0.69

 

 

$

 

%

Adjusted EBITDA*

 

$

35.0

 

 

$

34.1

 

 

$

1.0

 

2.8

%

Adjusted EBITDA margin*

 

 

15.9

%

 

 

16.0

%

 

(10) bps

 

 

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

Adjusted earnings per diluted share were $0.69 in the fiscal 2023 first quarter unchanged from the prior-year period. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.

Second Quarter Fiscal 2023 Outlook

Columbus McKinnon expects second quarter fiscal 2023 sales of approximately $230 million to $240 million at current exchange rates, a sequential increase in the mid-to-high single digits.

Mr. Wilson concluded, “We are confident in our ability to deliver our plan as we continue to advance Columbus McKinnon’s transformation. We are executing to meet our commitments and to achieve our goals of $1.5 billion in revenue and 21% adjusted EBITDA margin in fiscal 2027.”

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 13730934. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, August 4, 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 expected growth, future sales and EBITDA margins, and future potential to deliver results; the execution of its strategy and further transformation of the Company with stronger growth, less cyclicality and higher margins, and achievement of certain goals. These statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its financial targets including revenue and adjusted EBITDA margin, and to execute CMBS and the Core Growth Framework; global economic and business conditions affecting the industries served by the Company and its subsidiaries including COVID-19; the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. Consequently, such forward-looking statements should be regarded as current plans, estimates and beliefs. The Company assumes no obligation to update the forward-looking information contained in this release.

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

 

 

 

Three Months Ended

 

 

 

 

June 30, 2022

 

June 30, 2021

 

Change

Net sales

 

$

220,287

 

 

$

213,464

 

 

3.2

%

Cost of products sold

 

 

137,768

 

 

 

139,401

 

 

(1.2

)%

Gross profit

 

 

82,519

 

 

 

74,063

 

 

11.4

%

Gross profit margin

 

 

37.5

%

 

 

34.7

%

 

 

Selling expenses

 

 

26,156

 

 

 

23,482

 

 

11.4

%

% of net sales

 

 

11.9

%

 

 

11.0

%

 

 

General and administrative expenses

 

 

21,881

 

 

 

30,143

 

 

(27.4

)%

% of net sales

 

 

9.9

%

 

 

14.1

%

 

 

Research and development expenses

 

 

5,130

 

 

 

3,583

 

 

43.2

%

% of net sales

 

 

2.3

%

 

 

1.7

%

 

 

Amortization of intangibles

 

 

6,535

 

 

 

6,109

 

 

7.0

%

Income from operations

 

 

22,817

 

 

 

10,746

 

 

112.3

%

Operating margin

 

 

10.4

%

 

 

5.0

%

 

 

Interest and debt expense

 

 

6,203

 

 

 

5,812

 

 

6.7

%

Cost of debt refinancing

 

 

 

 

 

14,803

 

 

(100.0

)%

Investment (income) loss

 

 

430

 

 

 

(433

)

 

NM

 

Foreign currency exchange (gain) loss

 

 

1,203

 

 

 

94

 

 

1,179.8

%

Other (income) expense, net

 

 

(2,303

)

 

 

250

 

 

NM

 

Income (loss) before income tax expense (benefit)

 

 

17,284

 

 

 

(9,780

)

 

NM

 

Income tax expense (benefit)

 

 

8,893

 

 

 

(2,517

)

 

NM

 

Net income (loss)

 

$

8,391

 

 

$

(7,263

)

 

NM

 

 

 

 

 

 

 

 

Average basic shares outstanding

 

 

28,544

 

 

 

26,762

 

 

6.7

%

Basic income (loss) per share

 

$

0.29

 

 

$

(0.27

)

 

NM

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

28,699

 

 

 

26,762

 

 

7.2

%

Diluted income (loss) per share

 

$

0.29

 

 

$

(0.27

)

 

NM

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

June 30, 2022

 

March 31, 2022

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

85,660

 

 

$

115,390

 

Trade accounts receivable

 

 

133,006

 

 

 

147,515

 

Inventories

 

 

189,324

 

 

 

172,139

 

Prepaid expenses and other

 

 

34,649

 

 

 

31,545

 

Total current assets

 

 

442,639

 

 

 

466,589

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

95,651

 

 

 

97,926

 

Goodwill

 

 

640,970

 

 

 

648,849

 

Other intangibles, net

 

 

378,398

 

 

 

390,788

 

Marketable securities

 

 

10,322

 

 

 

10,294

 

Deferred taxes on income

 

 

2,147

 

 

 

2,313

 

Other assets

 

 

64,602

 

 

 

68,948

 

Total assets

 

$

1,634,729

 

 

$

1,685,707

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Trade accounts payable

 

$

73,867

 

 

$

90,881

 

Accrued liabilities

 

 

104,820

 

 

 

118,187

 

Current portion of long-term debt and finance lease obligations

 

 

40,565

 

 

 

40,551

 

Total current liabilities

 

 

219,252

 

 

 

249,619

 

 

 

 

 

 

Term loan and finance lease obligations

 

 

460,762

 

 

 

470,675

 

Other non-current liabilities

 

 

179,534

 

 

 

192,610

 

Total liabilities

 

 

859,548

 

 

 

912,904

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Common stock

 

 

286

 

 

 

285

 

Additional paid-in capital

 

 

505,926

 

 

 

506,074

 

Retained earnings

 

 

324,734

 

 

 

316,343

 

Accumulated other comprehensive loss

 

 

(55,765

)

 

 

(49,899

)

Total shareholders’ equity

 

 

775,181

 

 

 

772,803

 

Total liabilities and shareholders’ equity

 

$

1,634,729

 

 

$

1,685,707

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

 

 

 

Three Months Ended

 

 

June 30, 2022

 

June 30, 2021

Operating activities:

 

 

 

 

Net income (loss)

 

$

8,391

 

 

$

(7,263

)

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

 

 

 

 

Depreciation and amortization

 

 

10,469

 

 

 

10,467

 

Deferred income taxes and related valuation allowance

 

 

1,272

 

 

 

(245

)

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

 

 

485

 

 

 

(391

)

Stock-based compensation

 

 

751

 

 

 

2,262

 

Amortization of deferred financing costs

 

 

430

 

 

 

471

 

Cost of debt refinancing

 

 

 

 

 

14,803

 

Loss (gain) on hedging instruments

 

 

(192

)

 

 

 

Loss on retirement of fixed asset

 

 

173

 

 

 

 

Non-cash lease expense

 

 

2,139

 

 

 

1,989

 

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

 

 

 

 

Trade accounts receivable

 

 

11,265

 

 

 

2,043

 

Inventories

 

 

(21,467

)

 

 

(10,802

)

Prepaid expenses and other

 

 

359

 

 

 

(5,714

)

Other assets

 

 

(143

)

 

 

35

 

Trade accounts payable

 

 

(15,720

)

 

 

(5,879

)

Accrued liabilities

 

 

(6,938

)

 

 

(5,945

)

Non-current liabilities

 

 

(2,451

)

 

 

(3,227

)

Net cash provided by (used for) operating activities

 

 

(11,177

)

 

 

(7,396

)

 

 

 

 

 

Investing activities:

 

 

 

 

Proceeds from sales of marketable securities

 

 

650

 

 

 

2,181

 

Purchases of marketable securities

 

 

(1,226

)

 

 

(4,137

)

Capital expenditures

 

 

(2,953

)

 

 

(3,648

)

Proceeds from insurance reimbursement

 

 

 

 

 

482

 

Purchases of businesses, net of cash acquired

 

 

(1,616

)

 

 

(475,311

)

Dividend received from equity method investment

 

 

313

 

 

 

 

Net cash provided by (used for) investing activities

 

 

(4,832

)

 

 

(480,433

)

 

 

 

 

 

Financing activities:

 

 

 

 

Proceeds from issuance of common stock

 

 

415

 

 

 

290

 

Repayment of debt

 

 

(10,128

)

 

 

(455,040

)

Proceeds from issuance of long-term debt

 

 

 

 

 

650,000

 

Proceeds from equity offering

 

 

 

 

 

207,000

 

Fees related to debt and equity offering

 

 

 

 

 

(25,292

)

Cash inflows from hedging activities

 

 

6,163

 

 

 

 

Cash outflows from hedging activities

 

 

(6,022

)

 

 

 

Payment of dividends

 

 

(1,996

)

 

 

(1,439

)

Other

 

 

(1,313

)

 

 

(1,764

)

Net cash provided by (used for) financing activities

 

 

(12,881

)

 

 

373,755

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(840

)

 

 

601

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(29,730

)

 

 

(113,473

)

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

 

 

115,640

 

 

 

202,377

 

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

 

$

85,910

 

 

$

88,904

 

COLUMBUS McKINNON CORPORATION

Q1 FY 2023 Sales Bridge

 

 

 

Quarter

($ in millions)

 

$ Change

 

% Change

Fiscal 2022 Sales

 

$

213.5

 

 

 

Acquisition

 

 

8.5

 

 

4.0

%

Volume

 

 

(4.3

)

 

(2.0

)%

Pricing

 

 

9.6

 

 

4.5

%

Foreign currency translation

 

 

(7.0

)

 

(3.3

)%

Total change

 

$

6.8

 

 

3.2

%

Fiscal 2023 Sales

 

$

220.3

 

 

 

COLUMBUS McKINNON CORPORATION

Q1 FY 2023 Gross Profit Bridge

   

($ in millions)

 

Quarter

Fiscal 2022 Gross Profit

 

$

74.1

 

Acquisition

 

 

3.1

 

Price, net of material cost inflation

 

 

3.1

 

Prior year acquisition inventory step-up expense

 

 

3.0

 

Sales volume and mix

 

 

1.0

 

Prior year acquisition integration costs

 

 

0.5

 

Tariffs

 

 

0.1

 

Productivity, net of other cost changes

 

 

0.1

 

Foreign currency translation

 

 

(2.5

)

Total change

 

 

8.4

 

Fiscal 2023 Gross Profit

 

$

82.5

 

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

COLUMBUS McKINNON CORPORATION

Additional Data - UNAUDITED

 

 

 

June 30, 2022

 

March 31, 2022

 

June 30, 2021

($ in millions)

 

 

 

 

 

 

 

 

 

Backlog

 

$

351.6

 

 

 

$

309.1

 

 

$

247.4

 

 

Long-term backlog

 

 

 

 

 

 

 

 

 

Expected to ship beyond 3 months

 

$

162.8

 

 

 

$

135.2

 

 

$

107.3

 

 

Long-term backlog as % of total backlog

 

 

46.3

 

%

 

 

43.7

%

 

 

43.4

 

%

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

 

 

 

 

 

 

 

Days sales outstanding

 

 

54.9

 

days

 

 

53.0

days

 

 

52.5

 

days

 

 

 

 

 

 

 

 

 

 

Inventory turns per year

 

 

 

 

 

 

 

 

 

(based on cost of products sold)

 

 

2.9

 

turns

 

 

3.9

turns

 

 

4.0

 

turns

Days' inventory

 

 

125.4

 

days

 

 

93.6

days

 

 

90.8

 

days

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

 

 

 

 

 

 

 

 

Days payables outstanding

 

 

58.6

 

days

 

 

58.7

days

 

 

52.4

 

days

 

 

 

 

 

 

 

 

 

 

Working capital as a % of sales (2)

 

 

19.9

 

%

 

 

15.5

%

 

 

12.5

 

%

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used for) operating activities

 

$

(11.2

)

 

 

$

25.2

 

 

$

(7.4

)

 

Capital expenditures

 

$

3.0

 

 

 

$

3.6

 

 

$

3.6

 

 

Free cash flow (1)

 

$

(14.1

)

 

 

$

21.6

 

 

$

(11.0

)

 

 

 

 

 

 

 

 

 

 

 

Debt to total capitalization percentage

 

 

39.3

 

%

 

 

39.8

%

 

 

38.8

 

%

 

 

 

 

 

 

 

 

 

 

Debt, net of cash, to net total capitalization

 

 

34.9

 

%

 

 

33.9

%

 

 

33.8

 

%

(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.

(2) June 30, 2022 and March 31, 2022 figures exclude the impact of the acquisition of Garvey. June 30, 2021 figure excludes the impact of the acquisition of Dorner.

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit

($ in thousands)

 

 

Three Months Ended June 30,

 

 

2022

 

 

 

2021

 

GAAP gross profit

$

82,519

 

 

$

74,063

 

Add back (deduct):

 

 

 

Acquisition inventory step-up expense

 

 

 

 

2,981

 

Acquisition integration costs

 

 

 

 

521

 

Non-GAAP adjusted gross profit

$

82,519

 

 

$

77,565

 

 

 

 

 

Sales

$

220,287

 

 

$

213,464

 

 

 

 

 

Gross margin - GAAP

 

37.5

%

 

 

34.7

%

Adjusted gross margin - Non-GAAP

 

37.5

%

 

 

36.3

%

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)

 

 

Three Months Ended June 30,

 

 

2022

 

 

 

2021

 

GAAP income from operations

$

22,817

 

 

$

10,746

 

Add back (deduct):

 

 

 

Business realignment costs

 

1,657

 

 

 

623

 

Acquisition deal and integration costs

 

86

 

 

 

9,242

 

Acquisition inventory step-up expense

 

 

 

 

2,981

 

Non-GAAP adjusted income from operations

$

24,560

 

 

$

23,592

 

 

 

 

 

Sales

$

220,287

 

 

$

213,464

 

 

 

 

 

Operating margin - GAAP

 

10.4

%

 

 

5.0

%

Adjusted operating margin - Non-GAAP

 

11.1

%

 

 

11.1

%

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 June 30,

 

2022

 

 

2021

 

GAAP net income (loss)

$

8,391

 

$

(7,263

)

Add back (deduct):

 

 

 

Amortization of intangibles

 

6,535

 

 

6,109

 

Business realignment costs

 

1,657

 

 

623

 

Acquisition deal and integration costs

 

86

 

 

9,242

 

Cost of debt refinancing

 

 

 

14,803

 

Acquisition inventory step-up expense

 

 

 

2,981

 

Normalize tax rate to 22% (1)

 

3,269

 

 

(7,792

)

Non-GAAP adjusted net income

$

19,938

 

$

18,703

 

 

 

 

 

Average diluted shares outstanding

 

28,699

 

 

27,159

 

 

 

 

 

Diluted income (loss) per share - GAAP

$

0.29

 

$

(0.27

)

 

 

 

 

Diluted income per share - Non-GAAP

$

0.69

 

$

0.69

 

(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 June 30,

 

 

2022

 

 

 

2021

 

GAAP net income (loss)

$

8,391

 

 

$

(7,263

)

Add back (deduct):

 

 

 

Income tax expense (benefit)

 

8,893

 

 

 

(2,517

)

Interest and debt expense

 

6,203

 

 

 

5,812

 

Investment (income) loss

 

430

 

 

 

(433

)

Foreign currency exchange (gain) loss

 

1,203

 

 

 

94

 

Other (income) expense, net

 

(2,303

)

 

 

250

 

Depreciation and amortization expense

 

10,469

 

 

 

10,467

 

Business realignment costs

 

1,657

 

 

 

623

 

Acquisition deal and integration costs

 

86

 

 

 

9,242

 

Cost of debt refinancing

 

 

 

 

14,803

 

Acquisition inventory step-up expense

 

 

 

 

2,981

 

Non-GAAP adjusted EBITDA

$

35,029

 

 

$

34,059

 

 

 

 

 

Sales

$

220,287

 

 

$

213,464

 

 

 

 

 

Net income (loss) margin - GAAP

 

3.8

%

 

 

(3.4

)%

Adjusted EBITDA margin - Non-GAAP

 

15.9

%

 

 

16.0

%

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.

Like: 0
Share
Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Investor relations, public relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia.

Comments