Columbus Mckinnon Corporation · NASDAQ:CMCO

Columbus Mckinnon — Wells Fargo 2024 Industrials Conference

29 slides from Columbus Mckinnon's conference presentation, Jun 11, 2024

  1. Slide 1: Wells Fargo 2024 Industrials Conference

    Wells Fargo 2024 Industrials Conference David Wilson President & Chief Executive Officer Gregory Rustowicz Executive Vice President & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer June 11, 2024

  2. 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

  3. 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

  4. Slide 4: © 2024 COLUMBUS MCKINNON CORPORATION

    © 2024 COLUMBUS MCKINNON CORPORATION

  5. 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

  6. 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

  7. 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 ~$1.5B IN REVENUE AND 21% ADJUSTED EBITDA TARGETS MID-SINGLE DIGIT ORGANIC GROWTH AND $220M OF M&A GROWTH INCREASES DIGITAL CAPABILITIES

  8. 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

  9. 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

  10. 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

  11. Slide 11: Executing Plan and Delivering Results

    Executing Plan and Delivering Results 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 Organic growth Operating

  12. Slide 12: Revenue Bridge

    Revenue Bridge REVENUE FY24 TO FY27E $75 $1,500 $217 $194 $1,014 $30M+ of growth from M&A expected $936 $907 from montratec® over 3 years FY22 FY23 FY24 Organic Growth M&A Growth on M&A FY27 Strategy Expected to Deliver >10% Revenue Growth 12 © 2024 COLUMBUS MCKINNON CORPORATION

  13. Slide 13: Adjusted EBITDA Margin Bridge

    Adjusted EBITDA Margin Bridge ($ in millions) ADJUSTED EBITDA MARGIN FY24 to FY27E ~21% Expanding Adjusted EBITDA Margins ~460 bps Driven by Cost Actions & Scale 13 © 2024 COLUMBUS MCKINNON CORPORATION

  14. Slide 14: Q4 FY24 Financial Results

    Q4 FY24 Financial Results Net Sales Adjusted Gross Profit and Margin2 +5% +7% $258.4 $265.5 +3% $253.8 $254.1 $100.0 $94.5 $97.1 organic $91.2 $86.8 $235.5 growth1 35.9% 36.9% 38.7% 37.2% 36.6% +70 bps Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Gross Profit $91.2

  15. Slide 15: Cash Flow

    Cash Flow ($ in millions, $M) Free Cash Flow1 & FCF Conversion 1 Free Cash Flow Conversion1 of 91%, in-line with guidance $86.6 $71.0 Net Cash Provided by Operating Activities decreased $16.4M $42.4 $35.8 • $8.9M higher cash interest • $6.3M higher cash taxes 951% 121% 147% 91% • $1.0M fees and expe

  16. Slide 16: Capital Allocation Priorities

    Capital Allocation Priorities 1 2 3 4 Organic Growth Debt Reduction Dividend M&A (consistent with modest growth over time) Capital Allocation Focused on Supporting Growth and Debt Reduction 16 © 2024 COLUMBUS MCKINNON CORPORATION 1 Non-GAAP financial measure; see definition and reconciliation at the

  17. Slide 17: Historical Net Leverage – per Credit Agreement

    Historical Net Leverage – per Credit Agreement Net Leverage Ratio1,2 montratec® Acquisition May 2023 Paid down $60M Targeting FY25 debt debt in FY24 paydown of >$50M (all funds raised to support montratec acquisition) 2.8x 2.7x 2.9x 2.7x 2.6x 2.6x 2.4x 2.2x ~ 2.0x Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1

  18. Slide 18: Executing to Deliver Strategic Plan Objectives

    Executing to Deliver Strategic Plan Objectives Advancing our strategic transformation and delivering compelling results • Expect to achieve strategic plan objectives with measurable progress in FY25 Improving our operational performance and customer experience: • Increasing on time delivery with imp

  19. Slide 19: Supplemental Information

    OO Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION

  20. Slide 20: CMCO Peer Group Comparison

    CMCO Peer Group Comparison Industrial Peers vs. Motion Control Peers (Based on Peer Group Averages. Financials Represent TTM Ending 3/31/24) 1 YOY SALES GROWTH GROSS MARGIN ADJ. EBITDA LTM EBITDA 2 MARGIN TRADING MULTIPLE Motion Control 14.5% 34.0% 19.3% 12.5x Target: CMCO 8.3% 37.3% 16.4% ~21% 10.4

  21. Slide 21: 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

  22. Slide 22: 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

  23. 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 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Gross profit $ 91,218 $ 86,649 $ 99,976 $ 93,897 $ 94,315 $ 220,225 $ 315,730 $ 342,099 $ 374,838 Add back (deduct): Product liability s

  24. 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 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Income from operations $ 27,469 $ 21,448 $ 33,351 $ 26,912 $ 25,437 $ 42,255 $ 73,781 $ 97,841 $ 107,148 Add back (deduct): Acqu

  25. 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 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Net income $ 13,895 $ 9,275 $ 15,813 $ 9,728 $ 11,809 $ 9,106 $ 29,660 $ 48,429 $ 46,625 Add back (deduct): Amortiza

  26. 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 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 2021 2022 2023 2024 Net income $ 13,895 $ 9,275 $ 15,813 $ 9,728 $ 11,809 $ 9,106 $ 29,660 $ 48,429 $ 46,625 Add back (deduct): Income tax expense (benefit) 7,49

  27. Slide 27: Non-GAAP Measures: ROIC

    Non-GAAP Measures: ROIC ($ in thousands) Fiscal Year 2021 2022 2023 2024 Income from operations $ 42,255 $ 73,781 $ 97,841 $ 107,148 Add back (deduct): Acquisition deal and integration costs 3,951 10,473 616 3,211 Business realignment costs 1,470 3,902 5,140 1,867 Factory and warehouse consolidation

  28. Slide 28: Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion

    Non-GAAP Measures: Free Cash Flow (FCF) and FCF Conversion ($ in thousands) Fiscal Year 2021 2022 2023 2024 Net cash provided by operating activities $ 98,890 $ 48,881 $ 83,636 $ 67,198 Capital expenditures (12,300) (13,104) (12,632) (24,813) Free Cash Flow (FCF) $ 86,590 $ 35,777 $ 71,004 $ 42,385

  29. Slide 29: 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 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 agreement as total debt plus Net income $ 45,314 $ 44,225 $ 46,360 $ 48,429 $ 49,313 $ 51,012 $ 48,711 $ 46,625

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