Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q1 2025 Earnings Presentation
25 slides from Columbus Mckinnon's earnings presentation, Jul 31, 2024
Slide 1: Q1 Fiscal 2025 Financial Results Conference Call
Q1 Fiscal 2025 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 July 31, 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: Q1 FY25 Quarterly Review
Q1 FY25 Quarterly Review • Net Sales up 2% Y/Y driven by growth in precision conveyance and lifting • Gross margin expanded 30 bps Y/Y and 110 bps on an adjusted basis1 • Net income of $8.6 million or 3.6% of sales included $2.6 million2 of costs for factory simplification; announced consolidation o
Slide 4: Orders and Backlog
Orders and Backlog ($ in millions, $M) Orders Healthy pipeline of opportunities $254.1 $258.1 $252.6 • Precision conveying, lifting and linear motion orders up $226.5 $231.2 mid-single digits Y/Y • Orders down 1% Y/Y driven by timing shift of an $9M order into Q2 FY25 • Strength in EMEA & APAC 1.08x
Slide 5: Priority Initiatives in FY25
Priority Initiatives in FY25 Deliver on commercial initiatives and drive margin expansion Profitable • Grow share of wallet through improved customer experience Growth • Execute commercial, geographic expansion and product innovation initiatives • Focus on margin expansion through 80/20 actions Impr
Slide 6: Net Sales
Net Sales ($ in millions, $M) Q1 FY25 net sales increased 2% Y/Y • montratec® acquired growth of 1%1 • Organic growth of 1% • Precision conveyance, up 10% • Project-related business, up 4% • Short-cycle, down 2% Regional Performance: • Sales outside of the U.S. increased 5% excluding FX • U.S. sales
Slide 7: Gross Profit & Margin
Gross Profit & Margin ($ in millions, $M) Q1 FY25 Gross Profit Q1 FY25 gross margin of 37.1% $3.4 $0.2 $89.0 • Increased 30 bps Y/Y $86.6 $0.8 ($0.2) ($1.6) ($0.2) • Gross profit increased 3% driven by: o montratec acquisition 36.8% 37.1% Gross Margin o Pricing net of material inflation, moderating
Slide 8: RSG&A
RSG&A ($ in millions, $M) Quarterly RSG&A Q1 FY25 RSG&A increased $2.1M Y/Y • $1.7M from montratec acquisition1 $61.4 $60.4 $58.3 $59.1 $59.5 • G&A includes $1.9M of Monterrey Mexico start-up costs $6.5 $6.7 $7.1 $6.2 R&D $5.9 • Selling includes $1.2M of costs for our strategic partner conferences a
Slide 9: Operating Income
Operating Income ($ in millions, $M) Quarterly Operating Income Q1 FY25 operating income decreased 1% Y/Y • Operating income included: $34.1 $31.1 o $3.6M of Monterrey Mexico start-up costs $33.4 $29.7 o $1.2M of costs related to our strategic partner conferences $25.8 $25.7 $26.9 • Operating margin
Slide 10: Earnings Per Share
Earnings Per Share Q1 net income of $8.6M decreased $0.6M Y/Y Quarterly Diluted EPS • $0.3M higher other expense (pension costs) • $0.2M decrease in operating income $0.76 $0.74 $0.75 • $0.2M lower investment income $0.62 $0.62 • Partially offset $0.3M lower interest expense $0.55 Adjusted1 Q1 FY25
Slide 11: Adjusted EBITDA
Adjusted EBITDA ($ in millions, $M) Quarterly Adjusted EBITDA1 Q1 FY25 Adjusted EBITDA1 increased 2% Y/Y • Flat Adjusted Operating Income1 $45.7 $43.0 • Increased depreciation and amortization of $1.0M $41.3 $36.6 $37.5 Q1 FY25 Adjusted EBITDA Margin1 of 15.6% • Targeting ~21% Adjusted EBITDA Margin
Slide 12: Cash Flow
Cash Flow ($ in millions, $M) 1 Free Cash Flow1 & FCF Conversion Net cash used for operating activities improved $86.6 by $6.5M Y/Y $71.0 • Seasonal cash outflow in Q1 FY25 ahead of prior year $49.5 $42.4 $35.8 Capital expenditures decreased $0.6M Y/Y 951% 121% 147% 91% 108% • CapEx investment for o
Slide 13: Capital Structure
Capital Structure ($ in millions, $M) CAPITALIZATION Repaid $20M of debt in Q1 FY25 June 30, 2024 March 31, 2024 • Total debt down 4% YTD Term Loan B $ 462.6 $ 477.6 Repriced Term Loan B debt in Mar 2024 resulting AR Securitization Facility 40.0 45.0 in ~$2.5M of annual interest expense savings Capi
Slide 14: FY2025 Guidance
FY2025 Guidance FY25 Q2 FY25 Down low to mid-single Net Sales ($M) Low-single digit growth Y/Y digits Y/Y Mid to high-single digit Adjusted EPS1 growth Y/Y Down mid-single digits Y/Y Capital Expenditures $20 to $30 million Net Leverage Ratio1 ~2.0x Guidance Assumptions: • FY25: ~$33M of interest exp
Slide 15: Q1 Fiscal 2025 Financial Results Conference Call
Q1 Fiscal 2025 Financial Results Conference Call David J. Wilson President & Chief Executive Officer Gregory P. Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer July 31, 2024
Slide 16: Supplemental Information
OO Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION
Slide 17: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13747096 Telephone replay available through August 7, 2024 Webcast / PowerPoint / Replay available at investors.cmco.com Transcript, when available, at investors.cmco.com 17 © 2024 COLUMBUS MCKINNON CORPORATION
Slide 18: Non-GAAP Measures
Non-GAAP Measures The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The C
Slide 19: Non-GAAP Measures: Adjusted Gross Profit and Adjusted Gross Margin
Non-GAAP Measures: Adjusted Gross Profit and Adjusted Gross Margin ($ in thousands) Quarter Q1 FY24 Q1 FY25 Gross profit $ 86,649 $ 89,030 Add back (deduct): Business realignment costs 196 392 Monterrey, MX new factory start-up costs — 1,625 Adjusted Gross Profit $ 86,845 $ 91,047 Net sales $ 235,49
Slide 20: Non-GAAP Measures: Adjusted Operating Income and Adjusted Operating Margin
Non-GAAP Measures: Adjusted Operating Income and Adjusted Operating Margin ($ in thousands) Quarter Q1 FY24 Q1 FY25 Income from operations $ 21,448 $ 21,147 Add back (deduct): Acquisition deal and integration costs 2,587 — Business realignment costs 375 850 Headquarter relocation costs 1,228 96 Fact
Slide 21: Non-GAAP Measures: Adjusted Net Income and Adjusted EPS
Non-GAAP Measures: Adjusted Net Income and Adjusted EPS ($ in thousands, except per share data) Quarter Q1 FY24 Q1 FY25 Net income $ 9,275 $ 8,629 Add back (deduct): Amortization of intangibles 6,877 7,500 Acquisition deal and integration costs 2,587 — Business realignment costs 375 850 Headquarter
Slide 22: Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin ($ in thousands) Quarter Q1 FY24 Q1 FY25 Net income $ 9,275 $ 8,629 Add back (deduct): Income tax expense (benefit) 3,394 3,421 Interest and debt expense 8,625 8,235 Investment (income) loss (543) (209) Foreign currency exchange (gain) lo
Slide 23: Non-GAAP Measures: Free Cash Flow and FCF Conversion
Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion ($ in thousands) Quarter Fiscal Year TTM Q1 FY24 Q1 FY25 2021 2022 2023 2024 Q1 FY25 Net cash provided by (used for) operating activities $ (17,247) $ (10,758) $ 98,890 $ 48,881 $ 83,636 $ 67,198 $ 73,687 Capital expenditures (5,273) (4,629)
Slide 24: Non-GAAP Measures: ROIC
Non-GAAP Measures: ROIC ($ in thousands) Fiscal Year 2021 2022 2023 2024 TTM Q1 2025 Income from operations $ 42,255 $ 73,781 $ 97,841 $ 107,148 $ 106,847 Add back (deduct): Acquisition deal and integration costs 3,951 10,473 616 3,211 624 Business realignment costs 1,470 3,902 5,140 1,867 2,342 Fac
Slide 25: 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 agreement as total debt plus Q1 FY24 Q1 FY25 standby letters of credit, net of cash and cash equivalents. Net Net income $ 49,313 $ 45,978 Leverage Ratio is defined as Net Debt