Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q4 2024 Earnings Presentation
27 slides from Columbus Mckinnon's earnings presentation, May 29, 2024
Slide 1: Q4 and Fiscal Year 2024 Financial Results Conference Call
Q4 and Fiscal Year 2024 Financial Results Conference Call David J. Wilson President & Chief Executive Officer Gregory P. Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer May 29, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides, and the accompanying oral discussion (together, this “presentation”), 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-l
Slide 3: FY24 Year End Review
FY24 Year End Review • Record sales exceeded $1.0B, up 8% Y/Y driven by growth across all geographies including the addition of montratec® • Gross margin expanded 50 bps Y/Y and 80 bps on an adjusted basis1, the third consecutive year of Adjusted Gross Margin1 expansion totaling 320 bps • Operating
Slide 4: Orders and Backlog
Orders and Backlog ($ in millions, $M) Orders Continued Orders Growth and Encouraging Pipeline $246.0 $254.1 $258.1 • Orders up 5% Y/Y and 12% sequentially $226.5 $231.2 • Demand grew across the Americas and EMEA & APAC • Precision conveying up 25% Y/Y and 13% excluding montratec • Lifting up 6% Y/Y
Slide 5: Unlocking CMCO's Potential
Unlocking CMCO’s Potential CMBS GROWTH FRAMEWORK TRANSFORMATION Framework to Deliver Differentiated Growth, Financial Performance and Shareholder Value 5 © 2024 COLUMBUS MCKINNON CORPORATION
Slide 6: Executing Plan and Delivering Results
Executing Plan and Delivering Results ($ in millions, $M) Net Sales Adjusted Gross Margin1 Adjusted EBITDA Margin1 ~$1,500 ~40% ~21% 37.3% 15.4% 15.8% 16.4% $1,014 36.5% $907 $936 36.1% 11.9% $650 34.1% FY21 FY22 FY23 FY24 FY27E FY21 FY22 FY23 FY24 FY27E 2 FY21 FY22 FY23 FY24 FY27E 2 GROWTH DRIVERS
Slide 7: Key Operational Initiatives in FY25
Key Operational Initiatives in FY25 Deliver on commercial initiatives and drive margin expansion Profitable • Grow share of wallet through improved customer experience Growth • Execute commercial, geographic expansion and product innovation initiatives • Focus on margin expansion through 80/20 actio
Slide 8: Net Sales
Net Sales ($ in millions, $M) Q4 FY24 sales, up 5% Y/Y or 4% excluding FX • Sales in U.S. increased 4% driven by volume and price • Sales outside of the U.S. increased 6% or 5% excluding FX o montratec contributed 4% of growth Delivered Q4 FY24 double-digit growth Y/Y in precision conveyance • Sales
Slide 9: Gross Profit & Margin
Gross Profit & Margin ($ in millions, $M) Q4 FY24 Gross Profit Q4 FY24 Gross Margin of 35.5% and Adjusted Gross Margin1 of 36.6% $91.2 $0.8 $1.0 $3.7 $0.4 $94.3 • Gross profit increased 3% driven by sales volume & mix, ($2.8) partially offset by $2.8M of Monterrey, Mexico start-up and factory consol
Slide 10: RSG&A
RSG&A ($ in millions, $M) Quarterly RSG&A Q4 FY24 RSG&A increased $4.2M Y/Y • $2.9M from montratec acquisition $58.3 $59.1 $59.5 $61.4 $57.2 $6.7 $7.1 R&D • $1.3M of higher R&D, as we continue advancing our product $5.5 $5.9 $6.5 innovation and product line simplification initiatives $26.4 $27.4 $25
Slide 11: Operating Income
Operating Income ($ in millions, $M) Quarterly Operating Income Q4 FY24 Operating income decreased 7% Y/Y $34.1 • Operating income decreased $2.0M driven by $3.7M of $29.7 $31.1 $29.2 $25.8 Monterrey Mexico start-up costs and $1.2M of fees and $33.4 Adjusted $27.5 $26.9 expenses for the Term Loan B
Slide 12: Earnings Per Share
Earnings Per Share Quarterly Diluted EPS Net income of $11.8M decreased $2.1M in Q4 FY24 • $2.0M decrease in operating income $0.80 $0.76 $0.75 • $1.8M unfavorable change in FX $0.74 $0.62 • $1.5M higher interest expense Adjusted • Partially offset by a lower tax rate $0.55 $0.48 $0.41 $0.32 $0.34 G
Slide 13: Adjusted EBITDA
Adjusted EBITDA ($ in millions, $M) Quarterly Adjusted EBITDA1 Adjusted EBITDA1 increased 8% in Q4 FY24 Y/Y • Grew Adjusted Operating Income1 $1.9M or 7%, driven by $45.7 $41.3 $43.0 $39.7 $36.6 top-line growth and Adjusted Gross Margin expansion • Increased depreciation and amortization $1.3M Q4 FY
Slide 14: Cash Flow
Cash Flow ($ in millions, $M) Free Cash Flow1 & FCF Conversion 1 Free Cash Flow Conversion1 of 91%, in-line with guidance $86.6 $71.0 Net Cash Provided by Operating Activities decreased $16.4M $42.4 $35.8 • $8.9M higher cash interest • $6.3M higher cash taxes 951% 121% 147% 91% • $1.0M fees and expe
Slide 15: Capital Structure
Capital Structure ($ in millions, $M) CAPITALIZATION Net Leverage Ratio1 of 2.4x as of year end FY24 March 31, March 31, • Borrowed $120M to fund montratec acquisition, paid down 2024 2023 $60M in FY24 Term Loan B $ 477.6 $ 462.6 • Expect additional $50M paydown in FY25, with $10M in Q1 FY25 AR Secu
Slide 16: FY2025 Guidance
FY2025 Guidance FY25 Q1 FY25 Net Sales ($M) Low-single digit growth Y/Y Low-single digit growth Y/Y Mid to high-single digit Adjusted EPS1 growth Y/Y Flat to slightly down Y/Y Capital Expenditures $20 to $30 million Net Leverage Ratio1 ~2.0x Guidance Assumptions: • FY25: ~$33M of interest expense, ~
Slide 17: Q4 and Fiscal Year 2024 Financial Results Conference Call
Q4 and Fiscal Year 2024 Financial Results Conference Call David J. Wilson President & Chief Executive Officer Gregory P. Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer May 29, 2024
Slide 18: Supplemental Information
OO Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION
Slide 19: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13746170 Telephone replay available through June 5, 2024 Webcast / PowerPoint / Replay available at investors.cmco.com Transcript, when available, at investors.cmco.com 19 © 2024 COLUMBUS MCKINNON CORPORATION
Slide 20: Non-GAAP Measures
Non-GAAP Measures The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The C
Slide 21: Non-GAAP Measures: Adjusted Gross Profit and Adjusted Gross Margin
Non-GAAP Measures: Adjusted Gross Profit and Adjusted Gross Margin ($ in thousands) Quarter Fiscal Year Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Gross profit $ 91,218 $ 86,649 $ 99,976 $ 93,897 $ 94,315 $ 220,225 $ 315,730 $ 342,099 $ 374,838 Add back (deduct): Product liability s
Slide 22: Non-GAAP Measures: Adjusted Operating Income and Adjusted Operating Margin
Non-GAAP Measures: Adjusted Operating Income and Adjusted Operating Margin ($ in thousands) Quarter Fiscal Year Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Income from operations $ 27,469 $ 21,448 $ 33,351 $ 26,912 $ 25,437 $ 42,255 $ 73,781 $ 97,841 $ 107,148 Add back (deduct): Acqu
Slide 23: Non-GAAP Measures: Adjusted Net Income and Adjusted Diluted EPS
Non-GAAP Measures: Adjusted Net Income and Adjusted Diluted EPS ($ in thousands, except per share data) Quarter Fiscal Year Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Net income $ 13,895 $ 9,275 $ 15,813 $ 9,728 $ 11,809 $ 9,106 $ 29,660 $ 48,429 $ 46,625 Add back (deduct): Amortiza
Slide 24: Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin ($ in thousands) Quarter Fiscal Year Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Net income $ 13,895 $ 9,275 $ 15,813 $ 9,728 $ 11,809 $ 9,106 $ 29,660 $ 48,429 $ 46,625 Add back (deduct): Income tax expense (benefit) 7,49
Slide 25: Non-GAAP Measures: ROIC
Non-GAAP Measures: ROIC ($ in thousands) Fiscal Year 2021 2022 2023 2024 Income from operations $ 42,255 $ 73,781 $ 97,841 $ 107,148 Add back (deduct): Acquisition deal and integration costs 3,951 10,473 616 3,211 Business realignment costs 1,470 3,902 5,140 1,867 Factory and warehouse consolidation
Slide 26: Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion
Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion ($ in thousands) Fiscal Year 2021 2022 2023 2024 Net cash provided by operating activities $ 98,890 $ 48,881 $ 83,636 $ 67,198 Capital expenditures (12,300) (13,104) (12,632) (24,813) Free Cash Flow (FCF) $ 86,590 $ 35,777 $ 71,004 $ 42,385
Slide 27: Non-GAAP Measures: Net Debt and Net Leverage Ratio
Non-GAAP Measures: Net Debt and Net Leverage Ratio ($ in thousands) Trailing Twelve Month Net Debt is defined in the credit Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 agreement as total debt plus Net income $ 45,314 $ 44,225 $ 46,360 $ 48,429 $ 49,313 $ 51,012 $ 48,711 $ 46,625