Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q1 FY2019 Earnings Presentation
18 slides from Columbus Mckinnon's earnings presentation, Jul 31, 2018
Slide 1: Q1 Fiscal Year 2019 Financial Results Conference Call
Q1 Fiscal Year 2019 JulySept 31, Investor Presentation 20182017 Financial Results Conference Call Mark D. Morelli President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause th
Slide 3: Q1FY19 Results Provide Evidence of Progress
Q1FY19 Results Provide Evidence of Progress Blueprint 2021 strategy is working . Diluted EPS was $0.33; Adjusted Diluted EPS was $0.74, up 35% . Record adjusted EBITDA margin* of 15.7% E-PAS™ (Earnings Power Acceleration System) . Capitalizing on continued operating system deployment Leveraging our
Slide 4: Tracking Blueprint 2021 Phase II Progress
Tracking Blueprint 2021 Phase II Progress Simplify the Business . Streamlining products and focusing on profitable revenue . Wire rope hoist platform simplification • Launched initial offering; savings of $1.5 million in FY19 . Divesting three non-core businesses Improve Productivity . Demonstrated
Slide 5: Quarter Record for Net Sales
Quarter Record for Net Sales ($ in millions) Growth driven by broad based demand in Y/Y the U.S. and Europe + 10.4% 7.8% Q1 organic growth (FX adjusted) $225.0 . Strong organic growth in U.S.: 8.2% . Non-U.S. organic growth of 7.5%: $214.1 $212.8 • EMEA 10.3%, Canada 7.2% $208.7 Pricing increased 10
Slide 6: Record Gross Profit & Gross Margin
(1) Record Gross Profit & Gross Margin ($ in millions) Second consecutive quarter of record gross margin Quarter Gross Margin Bridge Q1 $79.6 FY19 $74.2 $69.0 $71.3 $68.7 Q1 FY2018 Gross Profit $ 69.0 Sales volume and mix 4.0 Productivity, net of other cost changes 3.7 Foreign currency translation 1
Slide 7: RSG&A
(1) RSG&A ($ in millions) RSG&A at 22.0% of sales ex STAHL integration costs . R&D up with ramp of new product engine $54.4 $51.1 $51.1 . $48.2 Selling expenses increased on higher volume, $45.7 $3.8 $3.3 $3.7 FX and STAHL integration costs $3.7 $2.9 . G&A up due to: $23.0 $19.0 $19.5 $22.3 $21.8 •
Slide 8: Operating Income & Non-GAAP Margin
(1)(2) Operating Income & Non-GAAP Margin ($ in millions) Q1 FY19 adjusted operating income grows 26% YOY $26.5 Operating margin of 11.8% reaches $13.0 highest level in 10 years $21.0 $19.9 $20.1 $17.8 . $1.4 $4.3 Excludes $11.1 million asset held for $0.7 $4.0 sale impairment charge and $1.9 millio
Slide 9: Quarterly Earnings Per Share
Quarterly Earnings Per Share ($ in millions) GAAP Diluted EPS Net income: $7.7 million, or $0.33 per diluted share $0.51 $0.54 $0.36 $0.33 . Effective tax rate for quarter was 19% Non-GAAP adjusted net income(1): $17.5 million . ($0.46) 39% increase over Q1’18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19
Slide 10: Working Capital
Working Capital Working Capital Working capital as % of sales increased as a Percent of Sales 40 bps from prior year period to 19.4% . Prior year period excluded STAHL 19.4% 19.0% . 18.5% Accounts receivable increased 130 bps due 17.9% 17.4% to higher DSO’s for STAHL Sequential increase due to decli
Slide 11: Cash Flow
Cash Flow Three Months Ended Note: Components may not add to totals due to rounding June 30, 2018 2017 Net cash provided by operating activities $ 8.1 $ 14.4 Capital expenditures (CapEx) (2.3) (1.9) Operating free cash flow $ 5.8 $ 12.5 Generated $8.1 million in cash from operations . Represents low
Slide 12: De-levering Balance Sheet
De-levering Balance Sheet CAPITALIZATION Debt reduction continues . June 30, March 31, Paid down $10 million in debt 2018 2018 . Net Debt/ Adjusted TTM EBITDA(1) Cash and cash equivalents $ 57.1 $ 63.0 • Further reduced to 2.4x Total debt 353.8 363.3 On track for $60 million debt reduction in FY19 T
Slide 13: Continue to Advance Blueprint 2021
Continue to Advance Blueprint 2021 Committed to delivering higher performance business: . Our strategy is working - changes are sustainable through cycles . Strong start to fiscal 2019: delivering stronger earnings and margins Outlook . Focus on quality revenue; shedding approximately 1% in Q2 FY19
Slide 14: Supplemental Information
Supplemental Information © 2018 Columbus McKinnon Corporation 14
Slide 15: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13680955 Telephone replay available through August 7, 2018 Webcast / PowerPoint / Replay available at www.cmworks.com/investors Transcript, when available, at www.cmworks.com/investors © 2018 Columbus McKinnon Corporation 15
Slide 16: Adjusted Income from Operations Reconciliation
Adjusted Income from Operations Reconciliation ($ in thousands) Quarter Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Income from operations $19,595 $19,219 $13,710 $15,806 $13,503 Add back (deduct): Acquisition deal, integration, and severance costs 1,171 669 3,006 3,917 1,906 Insurance recovery legal co
Slide 17: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands, except per share data) Quarter Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Net income (loss) $ 11,656 $ 12,508 $ (10,565) $ 8,466 $ 7,706 Add back (deduct): Acquisition deal, integration, and severance costs 1,171 669 3,006 3,917 1,906 Insurance recove
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Quarter Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Net income $ 11,656 $ 12,508 $ (10,565) $ 8,466 $ 7,706 Add back (deduct): Income tax expense 3,095 2,050 19,877 2,598 1,774 Interest and debt expense 5,141 5,067 4,864 4,661 4,607 Investment (income) los