Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — FY2024 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 Vice President, Investor Relations & Treasurer Kristine Moser Executive Vice President Finance & Chief Financial Officer Gregory P. Rustowicz May 29, 2024 President & Chief Executive Officer David J. Wilson
Slide 2: Forward-Looking Statements
© 2024 COLUMBUS MCKINNON CORPORATION 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 u
Slide 3: FY24 Year End Review
© 2024 COLUMBUS MCKINNON CORPORATION 3 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
Slide 4: Orders and Backlog
© 2024 COLUMBUS MCKINNON CORPORATION 4 Orders and Backlog 1Long term backlog is expected to ship beyond three months $142.0 $177.3 $148.3 $151.3 $144.6 $166.7 $178.0 $169.4 $147.1 $136.2 $308.7 $355.3 $317.7 $298.4 $280.8 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Continued Orders Growth and Encouragin
Slide 5: Unlocking CMCO's Potential
© 2024 COLUMBUS MCKINNON CORPORATION 5 Unlocking CMCO’s Potential Framework to Deliver Differentiated Growth, Financial Performance and Shareholder Value GROWTH FRAMEWORKCMBS TRANSFORMATION
Slide 6: Execution of Strategy Delivers Record Performance on Key Metrics in FY24
© 2024 COLUMBUS MCKINNON CORPORATION 6Execution of Strategy Delivers Record Performance on Key Metrics in FY24 1 Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation 2 Adjusted Gross Margin and Adjusted EBITDA Margin are non-GAAP financial measures. See suppl
Slide 7: Key Operational Initiatives in FY25
© 2024 COLUMBUS MCKINNON CORPORATION 7 Key Operational Initiatives in FY25 Focused on Delivering Profitable Growth and Margin Expansion Execute footprint simplification plan • Generate cost savings and operational improvement through Americas Manufacturing Center of Excellence in Monterrey, Mexico •
Slide 8: Net Sales
© 2024 COLUMBUS MCKINNON CORPORATION 8 Net Sales Delivered Record Sales in Q4 FY24 and FY24 with 5% and 8% Growth Y/Y, Respectively FY24 sales, up 8% Y/Y or 7% excluding FX • Sales in U.S. increased 1% • Sales outside of the U.S. increased 20% or 17% excluding FX o montratec contributed 9% to growth
Slide 9: Gross Profit & Margin
© 2024 COLUMBUS MCKINNON CORPORATION 9 Gross Profit & Margin Full Year Adjusted Gross Margin1 of 37.3%... On Track Toward Long-Term Objective 1 Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation. Q4 FY24 Gross Margin of 35.5% and Adjusted Gross Margin1 of 3
Slide 10: RSG&A
© 2024 COLUMBUS MCKINNON CORPORATION 10 RSG&A $25.3 $25.0 $26.9 $26.6 $26.9 $26.4 $27.4 $25.7 $26.3 $27.4 $5.5 $5.9 $6.5 $6.7 $7.1 $57.2 $58.3 $59.1 $59.5 $61.4 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Quarterly RSG&A Q4 FY24 RSG&A increased $4.2M Y/Y • $2.9M from montratec acquisition • $1.3M of hig
Slide 11: Operating Income
© 2024 COLUMBUS MCKINNON CORPORATION 11 Operating Income Q4 FY24 Operating income decreased 7% Y/Y • Operating income decreased $2.0M driven by $3.7M of Monterrey Mexico start-up costs and $1.2M of fees and expenses for the Term Loan B repricing Q4 FY24 Adjusted Operating Income1 increased 7% Y/Y •
Slide 12: Earnings Per Share
© 2024 COLUMBUS MCKINNON CORPORATION 12 Earnings Per Share Delivered Adjusted EPS1 of $2.86 in FY24 Quarterly Diluted EPS $0.48 $0.32 $0.55 $0.34 $0.41 $0.80 $0.62 $0.76 $0.74 $0.75 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 1 Non-GAAP financial measure; see definition and reconciliation at the end of
Slide 13: Adjusted EBITDA
© 2024 COLUMBUS MCKINNON CORPORATION 13 Adjusted EBITDA Adjusted EBITDA1 increased 8% in Q4 FY24 Y/Y • Grew Adjusted Operating Income1 $1.9M or 7%, driven by top-line growth and Adjusted Gross Margin expansion • Increased depreciation and amortization $1.3M Q4 FY24 Adjusted EBITDA Margin1 increased
Slide 14: Cash Flow
© 2024 COLUMBUS MCKINNON CORPORATION 14 $86.6 $35.8 $71.0 $42.4 951% 121% 147% 91% FY21 FY22 FY23 FY24 Free Cash Flow1 & FCF Conversion 1 Cash Flow Note: Components may not sum due to rounding Year EndedThree Months Ended 3/31/233/31/243/31/233/31/24 $ 83.6$ 67.2$ 66.7$ 38.6 Net cash provided by (us
Slide 15: Capital Structure
© 2024 COLUMBUS MCKINNON CORPORATION 15 Capital Structure Net Leverage Ratio1 of 2.4x as of year end FY24 • Borrowed $120M to fund montratec acquisition, paid down $60M in FY24 • Expect additional $50M paydown in FY25, with $10M in Q1 FY25 Repriced Term Loan B debt resulting in $2.5M of interest exp
Slide 16: FY2025 Guidance
© 2024 COLUMBUS MCKINNON CORPORATION 16 FY2025 Guidance 1 Adjusted EPS and Net Leverage Ratio are non-GAAP financial measures. See supplemental information for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP financial measures. Forward-looking e
Slide 17: Q4 and Fiscal Year 2024 Financial Results Conference Call
Q4 and Fiscal Year 2024 Financial Results Conference Call Vice President, Investor Relations & Treasurer Kristine Moser Executive Vice President Finance & Chief Financial Officer Gregory P. Rustowicz May 29, 2024 President & Chief Executive Officer David J. Wilson
Slide 18: Supplemental Information
OND Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION
Slide 19: Conference Call Playback Info
© 2024 COLUMBUS MCKINNON CORPORATION 19 Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13746170 Telephone replay available through June 5, 2024 Webcast / PowerPoint / Replay available at investors.cmco.com Transcript, when available, at investors.cmco.com
Slide 20: Non-GAAP Financial Measures Definitions and Reconciliations
© 2024 COLUMBUS MCKINNON CORPORATION 20 The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting pr
Slide 21: Adjusted Gross Profit Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 21 Fiscal YearQuarter($ in thousands) 2024202320222021Q4 FY24Q3 FY24Q2 FY24Q1 FY24Q4 FY23 $ 374,838 $ 342,099 $ 315,730 $ 220,225 $ 94,315 $ 93,897 $ 99,976 $ 86,649 $ 91,218 Gross profit Add back (deduct): ——2,850 ——————Product liability settlement ——2,100 —————
Slide 22: Adjusted Operating Income Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 22 Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not meas
Slide 23: Adjusted Net Income and Adjusted Diluted EPS
© 2024 COLUMBUS MCKINNON CORPORATION 23 1 Applies a normalized tax rate of 25% in fiscal 2024 and 22% in fiscal 2022 and fiscal 2023 to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax. Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS a
Slide 24: Adjusted EBITDA Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 24 Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not mea
Slide 25: ROIC Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 25 ROIC is defined as Adjusted Operating Income, net of taxes at a 25% normalized rate (fiscal 2021, 2022 and 2023 restated with a 25% normalized tax rate versus the 22% tax rate previously reported), for the trailing twelve months divided by the average of total
Slide 26: Free Cash Flow Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION Free Cash Flow is defined as net cash provided by (used for) operating activities less capital expenditures. Free Cash Flow Conversion is defined as Free Cash Flow divided by net income. Free Cash Flow and Free Cash Flow Conversion are not measures determined in
Slide 27: Net Debt and Net Leverage Ratio
© 2024 COLUMBUS MCKINNON CORPORATION 27 Net Debt is defined in the credit agreement as total debt plus standby letters of credit, net of cash and cash equivalents. Net Leverage Ratio is defined as Net Debt divided by the Credit Agreement Trailing Twelve Month Adjusted (“TTM”) EBITDA. Credit Agreemen