Business
Columbus McKinnon Blueprint for Growth Strategy Drove Margin Expansion, Earnings Growth and Strong Cash Generation in Third Quarter Fiscal Year 2020
BUFFALO, N.Y.--(BUSINESS WIRE)-- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of motion control products,
About this update from Columbus Mckinnon Corporation
[{"type":"text","content":" BUFFALO, N.Y.--(BUSINESS WIRE)--\nColumbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of motion control products, technologies and services for material handling, today announced financial results for its fiscal year 2020 third quarter, which ended December 31, 2019.\n\n\nThird Quarter Highlights (compared with prior-year period)\n\n\n\nBlueprint for Growth strategy delivers strong operating results overcoming weaker industrial environment\n\n\nGross margin expanded 20 basis points to 34.0%; Achieved 11th consecutive quarter of year-over-year expansion\n\n\nDiluted earnings per share was $0.63; adjusted diluted earnings per share increased $0.03 to $0.64\n\n\nCash from operations increased 24% to $32.4 million for the quarter and was up 31% year-to-date to $70.3 million\n\n\n\nRichard Fleming, Chairman and Interim CEO of Columbus McKinnon, commented, “The successful execution of our Blueprint for Growth strategy continues to deliver solid financial results. The Company demonstrated strengthened earnings power and cash generation during a weaker industrial environment. In fact, the 80/20 Process contributed approximately $5.7 million in operating income in the quarter and EBTIDA margin expanded by 100 basis points to 15.2%, even as revenue declined. This was our 12th consecutive quarter of EBTIDA margin expansion, keeping us on course to achieve our 19% EBTIDA margin goal in fiscal 2022. We also generated over $30 million in free cash flow in the quarter.”\n\n\nThe implementation of our business operating system E-PAS™ (“Earnings Power Acceleration System”) provides the tools needed during tougher markets to compete effectively and operate efficiently. We completed the closure of the facility in China ahead of schedule and are on track for the second facility closure in Ohio to be completed in the first quarter of fiscal 2021. Importantly, we continue to make focused investments in innovation and expand our engineering capabilities.”\n\n\nThird Quarter Fiscal 2020 Sales\n\n\n\n\n($ in millions)\n\n\n\nQ3 FY 20\n\n\n\n \n\n\n\nQ3 FY 19\n\n\n\n \n\n\n\nChange\n\n\n\n \n\n\n\n% Change\n\n\n\n\n\nNet sales\n\n\n\n$\n\n\n\n \n\n\n\n199.4\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n \n\n\n\n217.4\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n \n\n\n\n(18.1\n\n\n\n)\n\n\n\n \n\n\n\n(8.3\n\n\n\n)%\n\n\n\n\n\n \n\n\n\n ...