Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q4 FY2021 Earnings Presentation
26 slides from Columbus Mckinnon's earnings presentation, May 26, 2021
Slide 1: Q4 Fiscal Year 2021 Financial Results Conference Call
Q4 Fiscal Year 2021 Financial Results Conference Call May 26, 2021 David J. Wilson President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides, and the accompanying oral discussion (together, this “presentation”), contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning: future sa
Slide 3: Successful Finish to Unprecedented Year
Successful Finish to Unprecedented Year Execution of strategy delivered solid quarterly results nearing pre-pandemic levels • Responsiveness to customer requirements and continued sequential recovery delivered sales of $186.2 million • Operating income of $14.2 million and operating margin of 7.6% d
Slide 4: Executing Blueprint for Growth 2.0 Strategy
Executing Blueprint for Growth 2.0 Strategy Successfully closed acquisition and completed refinancing • Added specialty conveying to intelligent motion solutions offerings • Pro forma net leverage ratio of 3.4x(1); financial flexibility to drive strategic growth framework Enhanced growth profile in
Slide 5: Net Sales
Net Sales ($ in millions) $189.5 $186.2 Q4 FY21 Sales Bridge $157.8 $166.5 $139.1 Quarter Q4 FY20 Sales $ 189.5 Volume (11.1) (5.8)% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Pricing 1.9 1.0% Foreign currency translation 5.9 3.1% $809.2 $649.6 Total change $ (3.3) (1.7)% Q4 FY21 Sales $ 186.2 Note: Co
Slide 6: Gross Profit & Margin
Gross Profit & Margin ($ in millions) Quarter Gross Profit Bridge $66.2 $64.1 $56.0 Quarter $55.3 $44.8 Q4 FY20 Gross Profit $ 66.2 Foreign currency translation 2.1 Pricing, net of material cost inflation 1.7 34.9% 32.2% 35.5% 33.2% 34.4% Factory closures 1.3 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21
Slide 7: RSG&A
RSG&A ($ in millions) $46.3 $46.7 Quarterly RSG&A in line with guidance $39.9 $41.7 $37.0 $2.9 $3.7 $2.8 $3.0 • Q4 FY21 includes $4 million of Dorner acquisition costs $2.9 $21.2 $22.2 $18.4 $15.6 $19.9 • Incentive compensation up $2.3 million year/year $22.3 $18.7 $18.6 $18.8 $20.8 Fiscal year redu
Slide 8: Operating Income
Operating Income ($ in millions) Operating Income & Margin Q4 FY21 operating income of $14.2 million • Adjusted operating income nearing pre-pandemic levels $16.7 $15.8 $14.2 Solid FY21 operating income despite pandemic $10.4 • Volume decline of 21.9% due to COVID-19 $1.8 8.8% 1.3% 10.0% 6.3% 7.6% A
Slide 9: Earnings Per Share
Earnings Per Share GAAP Diluted EPS Q4 FY21 net income of $9.6 million $0.39 $0.39 Adj. net income of $12.2 million in the quarter $0.27 • Adjusted for $4.0 million of Dorner acquisition deal costs FY22 non-GAAP adjusted tax rate: 22%(1) ($0.12) Q1 FY22 interest expense of $7.5 million(1) ($0.17) Q4
Slide 10: Adjusted EBITDA & ROIC
Adjusted EBITDA & ROIC Adjusted EBITDA Margin Solid adjusted EBITDA margin in challenging environment 15.7% 15.1% • Q4 FY2021 Adjusted EBITDA margin of 13.9% down 50 basis points from prior year on 6% lower volume 11.9% • Continuing to target 19% Adjusted EBITDA margin post COVID-19 recession FY19 F
Slide 11: Cash Flow
Cash Flow ($ in millions) Three Months Ended Year Ended Free Cash Flow(2) 3/31/21 3/31/20 3/31/21 3/31/20 Net cash provided by $97.4 $26.9 $36.5 $98.9 $106.8 operating activities $86.6 CapEx (6.4) (2.7) (12.3) (9.4) $67.2 Free cash flow (FCF)2 $20.5 $33.9 $86.6 $97.4 $55.1 Note: Components may not a
Slide 12: Capital Structure
Capital Structure ($ in millions) CAPITALIZATION Successfully financed acquisition with equity and debt Pro forma March 31, March 31, • Initial bridge loan of $650 million to fund acquisition March 31, 2021 2020 2021 • Issued equity to de-lever balance sheet Cash and cash $ 202.1 $ 114.5 $ 89.6 • Up
Slide 13: Orders and Backlog
Orders and Backlog ($ in millions) Outstanding orders of $208.8 million Backlog of $171.7 million, up 31% • 24% sequential and 6% year-over-year increases • Year-over-year increase of total backlog driven by both • Up 32% in project business and 16% short cycle, sequentially project and short-cycle
Slide 14: Outlook and Perspective
Outlook and Perspective Q1 FY2022 outlook • Expect Q1 FY22 net sales in range of $212 million to $217 million with Dorner Dorner entering fiscal 2022 with strong backlog • Strong bookings trend in e-commerce, life sciences and food processing • Confident in growth and profit potential Addressing inf
Slide 15: Blueprint for Growth 2.0
Blueprint for Growth 2.0 Pivot Columbus McKinnon toward growth: Organic and Inorganic Strategy to deliver growth, financial performance and shareholder value 15
Slide 16: Q4 Fiscal Year 2021 Financial Results Conference Call
Q4 Fiscal Year 2021 Financial Results Conference Call May 26, 2021 David J. Wilson President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 17: Supplemental Information
CN Supplemental Information COLUMBUS McKINNON
Slide 18: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13718341 Telephone replay available through June 2, 2021 Webcast / PowerPoint / Replay available at investors.columbusmckinnon.com Transcript, when available, at investors.columbusmckinnon.com 18
Slide 19: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation ($ in thousands) Quarter Fiscal Year Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 2021 2020 GAAP gross profit $ 66,209 $ 44,797 $ 56,025 $ 55,315 $ 64,088 $ 220,225 $ 283,186 Add back (deduct): Factory closures 1,349 1,928 493 250 — 2,671 2,800 Business realignment co
Slide 20: Adjusted Income from Operations Reconciliation
Adjusted Income from Operations Reconciliation ($ in thousands) Quarter Fiscal Year Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 2021 2020 GAAP income from operations $ 16,664 $ 1,789 $ 15,820 $ 10,447 $ 14,199 $ 42,255 $ 89,824 Add back (deduct): Acquisition deal costs — — — — 3,951 3,951 — Factory clos
Slide 21: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands, except per share data) Quarter Fiscal Year Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 2021 2020 GAAP net income (loss) $ 9,244 $ (2,969) $ (4,104) $ 6,594 $ 9,585 $ 9,106 $ 59,672 Add back (deduct): Acquisition deal costs — — — — 3,951 3,951 — Non-cas
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Quarter Fiscal Year Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 2021 2020 GAAP net income (loss) $ 9,244 $ (2,969) $ (4,104) $ 6,594 $ 9,585 $ 9,106 $ 59,672 Add back (deduct): Income tax expense (benefit) 4,947 (963) (45) 616 1,362 970 17,484 Interest and
Slide 23: Return on Invested Capital (ROIC) Reconciliation
Return on Invested Capital (ROIC) Reconciliation ($ in thousands) Fiscal Year 2020 2021 GAAP income from operations $ 89,824 $ 42,255 Add back (deduct): Acquisition deal costs — 3,951 Factory closures 4,709 3,778 Business realignment costs 2,831 1,470 Insurance recovery legal costs 585 229 Loss on s
Slide 24: Industrial Capacity Utilization
Industrial Capacity Utilization U.S. Capacity Utilization Eurozone Capacity Utilization Source: The Federal Reserve Board Source: European Commission 85% 80% 82.5% 83% Q2 2021 81% 75% 79% 77% 70% 75% 74.1% (Manufacturing) & 73% 74.9% (Total) April 2021(1) 71% 65% 69% 67% 60% 65% Manufacturing Total
Slide 25: ISM Production Index
ISM Production Index Source: Institute of Supply Chain Management 70% 62.5% April 2021 65% 60% 55% 50% 45% 40% 35% 30% 25% 25
Slide 26: Q4 Fiscal Year 2021 Financial Results Conference Call
Q4 Fiscal Year 2021 Financial Results Conference Call May 26, 2021