Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — D.A. Davidson 23rd Annual Diversified Industrials & Services Conference (September 2024)
26 slides from Columbus Mckinnon's conference presentation, September 2024
Slide 1: D.A. Davidson 23rd Annual Diversified Industrials & Services Conference
D.A. Davidson 23rd Annual Diversified Industrials & Services Conference David Wilson President & Chief Executive Officer Gregory P. Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations and Treasurer SEPTEMBER 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: Global Leader in Intelligent Motion Solutions for Material Handling
Global Leader in Intelligent Motion Solutions for Material Handling • Leading global lifting and automation company providing professional-grade Product Mix solutions for solving customers’ critical material handling requirements 10% o World’s 2nd Largest Hoist Company; #1 in the United States Linea
Slide 4: © 2024 COLUMBUS MCKINNON CORPORATION
© 2024 COLUMBUS MCKINNON CORPORATION
Slide 5: Intelligent Motion Solutions
Intelligent Motion Solutions Four Categories of Solutions to Address Customers’ Unique Motion Control Needs Lifting Precision Conveyance Automation Linear Motion ~$8.0B TAM1 ~$5.2B TAM1 ~$4.5B TAM1 ~$2.3B TAM1 • Leading global position in lifting • Develops and manufactures complex • Design and deve
Slide 6: Growing Secular Market Presence
Growing Secular Market Presence Conveying Solutions Serves Less Cyclical Industries FY 2024 Focus on Secular Growth Markets Construction 6% Custom designed Food, Food, sanitary and easy to Aerospace & Government Beverage & 5% Beverage & clean conveyors Energy & Consumer Oil & Gas Consumer engineered
Slide 7: CMCO Transformation Strategy
CMCO Transformation Strategy EVOLVES THE ENTERPRISE FROM CYCLICAL INDUSTRIAL TO A TOP-TIER, SECULAR GROWTH, INTELLIGENT MOTION SOLUTIONS BUSINESS ADVANCES CMCO TO ~$1.5 BILLION IN REVENUE AND 21% ADJUSTED EBITDA TARGETS MID-SINGLE DIGIT ORGANIC GROWTH AND $220 MILLION OF M&A GROWTH INCREASES DIGITAL
Slide 8: Advancing Along our Transformation Path
Advancing Along our Transformation Path Targeting $1.5 Billion In Revenue and ~21% EBITDA Margin in FY2027, with a Diversified Revenue & Business Mix FUTURE REVENUE GROWTH RATE FY24 Specialty Conveying Linear Motion Linear Automation Motion 14% 10% FY21 Specialty Automation Conveying 16% Lifting Lin
Slide 9: Unlocking CMCO's Potential
Unlocking CMCO’s Potential Business System and Core Growth Framework to Transform CMCO CMBS GROWTH FRAMEWORK TRANSFORMATION Framework To Deliver Differentiated Growth, Financial Performance And Shareholder Value 9 © 2024 COLUMBUS MCKINNON CORPORATION
Slide 10: Strong Track Record Creating Value Through M&A
Strong Track Record Creating Value Through M&A September 2015 January 2017 April 2021 December 2021 May 2023 Acquisition of STAHL Acquisition of Dorner for Acquisition of Magnetek, CraneSystems from $485M advances Intelligent Acquisition of Garvey for Acquisition of montratec® for Inc. for ~$182M ad
Slide 11: Expanding Precision Conveyance Platform with montratec
Expanding Precision Conveyance Platform with montratec® Acquired montratec® on May 31, 2023 • Develops and manufactures complex intralogistics solutions connecting robots and workspaces • Acquired $30M of sales with high 40% gross margin; Expect to double business in 3 years • Attractive markets wit
Slide 12: FY2027 Financial Targets
FY2027 Financial Targets Key Assumptions Growing Sales by >10% CAGR • Organic growth of ~5% driven by go-to-market structure and strategic initiatives SALES • Inorganic growth of ~6% from programmatic M&A inclusive of market growth • No material changes to current market conditions Expanding Gross M
Slide 13: Executing Plan and Delivering Results
Executing Plan and Delivering Results On track for FY27 Goals 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 FY21 FY22 FY23 FY24 FY27E GROWTH DRIVERS
Slide 14: Q1 FY25 Financial Results
Q1 FY25 Financial Results Net Sales Gross Profit and Margin $100.0 $93.9 $258.4 $254.1 $86.6 $86.6 $89.0 $235.5 $235.5 $239.7 36.8% 38.7% 36.9% 36.8% 37.1% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Operating Income & Margin Adjusted EBITDA2 and Margin2 $33.4 $45
Slide 15: Cash Flow
Cash Flow ($ in millions, $M) Net cash used for operating activities improved by Free Cash Flow1 & FCF Conversion 1 $6.5M Y/Y • Seasonal cash outflow in Q1 FY25 ahead of prior year $86.6 Capital expenditures decreased $0.6M Y/Y $71.0 • CapEx investment for our North American manufacturing center of
Slide 16: Historical Net Leverage – per Credit Agreement
Historical Net Leverage – per Credit Agreement Net Leverage Ratio1,2 montratec Paid down Targeting FY25 debt Acquisition $60M of debt paydown of >$60M (all funds raised to support montratec acquisition) 2.9x 2.7x 2.6x 2.6x 2.4x 2.6x 2.2x ~2.0x Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
Slide 17: Priority Initiatives in FY25
Priority Initiatives in FY25 Deliver on commercial initiatives and drive margin expansion Profitable • Grow share of wallet through improved customer experience Growth • Execute commercial, geographic expansion and product innovation initiatives • Focus on margin expansion through 80/20 actions Impr
Slide 18: Supplemental Information
OO Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION
Slide 19: Corporate Sustainability Report
Corporate Sustainability Report SOCIAL RESPONSIBILITY PRODUCT QUALITY & INNOVATION CUSTOMER INTIMACY EMPLOYEE HEALTH AND SAFETY DIVERSITY, EQUITY, AND INCLUSION TALENT MANAGEMENT COMMUNITY INVOLVEMENT GOVERNANCE & ETHICS ENTERPRISE RISK MANAGEMENT ETHICS & COMPLIANCE Strategic Initiatives BOARD GOVE
Slide 20: Non-GAAP Measures
Non-GAAP Measures The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The C
Slide 21: Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion
Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion ($ 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 22: 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 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 total debt plus standby letters of credit, net of Net income $ 46,360 $ 48,429 $ 49,313 $ 51,012 $ 48,711 $
Slide 23: 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 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 2021 2022 2023 2024 Gross profit $ 86,649 $ 99,976 $ 93,897 $ 94,315 $ 89,030 $ 220,225 $ 315,730 $ 342,099 $ 374,838 Add back (deduct): Product liability s
Slide 24: 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 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 2021 2022 2023 2024 Income from operations $ 21,448 $ 33,351 $ 26,912 $ 25,437 $ 21,147 $ 42,255 $ 73,781 $ 97,841 $ 107,148 Add back (deduct): Acqu
Slide 25: 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 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY25 2021 2022 2023 2024 Net income $ 9,275 $ 15,813 $ 9,728 $ 11,809 $ 8,629 $ 9,106 $ 29,660 $ 48,429 $ 46,625 Add back (deduct): Amortizat
Slide 26: Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin ($ in thousands) Quarter Fiscal Year Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 2021 2022 2023 2024 Net income $ 9,275 $ 15,813 $ 9,728 $ 11,809 $ 8,629 $ 9,106 $ 29,660 $ 48,429 $ 46,625 Add back (deduct): Income tax expense (benefit) 3,394