Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q2 2025 Earnings Presentation
24 slides from Columbus Mckinnon's earnings presentation, Oct 30, 2024
Slide 1: Q2 Fiscal 2025 Financial Results Conference Call
Q2 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 October 30, 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: Q2 FY25 Quarterly Review
Q2 FY25 Quarterly Review Orders increased 16% with a book-to-bill ratio of 1.08x with strength in precision conveyance Net sales decreased 6% impacted by disruption from Hurricane Helene, our footprint simplification initiative that transitioned linear motion manufacturing to Monterrey, MX and proje
Slide 4: Orders and Backlog
Orders and Backlog ($ in millions, $M) Orders Healthy pipeline of opportunities $258.1 $252.6 $261.6 • Orders up 16% Y/Y with growth in all geographies and $226.5 $231.2 across all product platforms o Strength in precision conveyance, up 42% Y/Y with 20%+ growth for each of our recent acquisitions o
Slide 5: Net Sales
Net Sales ($ in millions, $M) Q2 FY25 Net Sales Bridge Q2 FY25 net sales decreased Y/Y due to: $258.4 $3.8 • Hurricane Helene $0.3 $242.3 ($20.2) • Linear motion factory consolidation to Monterrey, MX • Timing of Automation order and backlog phasing • Timing of EMEA project phasing Q2 FY24 Pricing V
Slide 6: Gross Profit & Margin
Gross Profit & Margin ($ in millions, $M) Q2 FY25 Gross Profit Q2 FY25 gross margin of 30.9% $100.0 $0.1 $0.2 • Gross profit of $74.7M impacted by: $74.7 ($12.3) o Factory consolidation costs ($2.2) ($10.8) ($0.3) o Sales volume & mix Gross 38.7% 30.9% Margin Q2 FY24 Pricing, Net of Sales FX Impact
Slide 7: RSG&A
RSG&A ($ in millions, $M) Quarterly RSG&A Q2 FY25 RSG&A decreased $2.7M Y/Y • R&D costs decreased $0.4M Y/Y $61.4 $60.4 $59.1 $59.5 $56.4 • G&A cost decreased $2.3M Y/Y driven by cost saving $6.5 $6.7 $7.1 $6.2 R&D $6.1 initiatives and lower incentive-based compensation • Selling costs in-line with
Slide 8: Operating Income
Operating Income ($ in millions, $M) Quarterly Operating Income Q2 FY25 operating income of $10.8M, impacted by factory simplification and $34.1 Monterrey, MX start-up costs $31.1 • Operating margin of 4.5% $33.4 $29.7 $27.0 $25.7 $26.9 $25.4 Adjusted1 Q2 FY25 Adjusted Operating Income1 of $21.1 $27
Slide 9: Earnings Per Share
Earnings Per Share Quarterly Diluted EPS Q2 FY25 net loss of $15.0M impacted by: • $17.5M pension settlement costs • $11.8M of factory simplification and start up costs as we $0.76 $0.74 $0.75 $0.70 $0.62 transition manufacturing to Monterrey, MX • Partially offset by $1.4M lower interest expense an
Slide 10: Adjusted EBITDA
Adjusted EBITDA ($ in millions, $M) Quarterly Adjusted EBITDA1 Q2 FY25 Adjusted EBITDA1 of $39.2M, impacted by: $45.7 • Lower sales volume and mix $43.0 $41.3 $39.2 $37.5 Q2 FY25 Adjusted EBITDA Margin1 of 16.2% • Expect 80/20 initiatives, factory simplification, and operating leverage on increased
Slide 11: Cash Flow
Cash Flow ($ in millions, $M) 1 Free Cash Flow1 & FCF Conversion YTD Net cash used for operating activities and Free Cash Flow1 in-line with prior year $86.6 $71.0 Free Cash Flow Conversion1 of 277% on a $35.8 $42.4 $41.8 trailing twelve-month basis • Reflects impact of noncash pension settlement ex
Slide 12: Capital Structure
Capital Structure ($ in millions, $M) CAPITALIZATION Repaid $10M of debt in Q2 FY25; $30M YTD FY25 September 30, March 31, 2024 2024 Repriced Term Loan B debt in Mar 2024 resulting Term Loan B $ 447.6 $ 477.6 in ~$2.5M of annual interest expense savings AR Securitization Facility 45.0 45.0 • Reprice
Slide 13: FY2025 Guidance
FY2025 Guidance FY25 Q3 FY25 Flat to low-single digit Net Sales ($M) growth Y/Y Flat Y/Y Adjusted EPS1 Mid-single digit growth Y/Y Flat Y/Y Capital Expenditures $20 to $25 million Net Leverage Ratio1 ~2.3x Guidance Assumptions: • FY25: ~$32M of interest expense, ~$30M of amortization, an effective t
Slide 14: Q2 Fiscal 2025 Financial Results Conference Call
Q2 Fiscal 2025 Financial Results Conference Call David J. Wilson President & Chief Executive Officer Gregory P. Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer October 30, 2024
Slide 15: Supplemental Information
OO Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION
Slide 16: Conference Call Playback Info
Conference Call Playback Info Replay Number: 1-888-660-6345 passcode: 93312# Telephone replay available through November 6, 2024 Webcast / PowerPoint / Replay available at investors.cmco.com Transcript, when available, at investors.cmco.com 16 © 2024 COLUMBUS MCKINNON CORPORATION
Slide 17: Non-GAAP Measures
Non-GAAP Measures The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The C
Slide 18: Non-GAAP Measures: Adjusted Gross Profit and Adjusted Gross Margin
Non-GAAP Measures: Adjusted Gross Profit and Adjusted Gross Margin ($ in thousands) Quarter Q2 FY24 Q2 FY25 Gross profit $ 99,976 $ 74,743 Add back (deduct): Business realignment costs — 76 Hurricane Helene cost impact — 171 Factory and warehouse consolidation costs — 10,763 Monterrey, MX new factor
Slide 19: Non-GAAP Measures: Adjusted Operating Income and Adjusted Operating Margin
Non-GAAP Measures: Adjusted Operating Income and Adjusted Operating Margin ($ in thousands) Quarter Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Income from operations $ 33,351 $ 26,912 $ 25,437 $ 21,147 $ 10,805 Add back (deduct): Acquisition deal and integration costs 508 113 3 — — Business realignment
Slide 20: 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 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Net income $ 15,813 $ 9,728 $ 11,809 $ 8,629 $ (15,043) Add back (deduct): Amortization of intangibles 7,508 7,486 7,525 7,500 7,547 Acquisition deal and in
Slide 21: Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin ($ in thousands) Quarter Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Net income $ 15,813 $ 9,728 $ 11,809 $ 8,629 $ (15,043) Add back (deduct): Income tax expense (benefit) 5,100 3,911 2,497 3,421 (4,908) Interest and debt expense 10,211 9,95
Slide 22: Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion
Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion ($ in thousands) Year-to-Date Quarter Fiscal Year TTM Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 2021 2022 2023 2024 Q2 FY25 Net cash provided by (used $ (558) $ (1,370) $ 16,689 $ 9,387 $ 98,890 $ 48,881 $ 83,636 $ 67,198 $ 66,386 for) operating activ
Slide 23: Non-GAAP Measures: ROIC
Non-GAAP Measures: ROIC ($ in thousands) Fiscal Year 2021 2022 2023 2024 TTM Q2 2025 Income from operations $ 42,255 $ 73,781 $ 97,841 $ 107,148 $ 84,301 Add back (deduct): Acquisition deal and integration costs 3,951 10,473 616 3,211 116 Business realignment costs 1,470 3,902 5,140 1,867 2,583 Fact
Slide 24: 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 Q2 FY24 Q2 FY25 standby letters of credit, net of cash and cash equivalents. Net Net income $ 51,012 $ 15,123 Leverage Ratio is defined as Net Debt