Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q2 FY2018 Earnings Presentation
18 slides from Columbus Mckinnon's earnings presentation, Oct 31, 2017
Slide 1: Q2 Fiscal Year 2018 Financial Results Conference Call
Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer Jon Adams Treasurer Sept 2017 Investor Presentation Mark D. Morelli President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer October 31, 2017 Q2 Fiscal Year 2018 Financial Res
Slide 2: Safe Harbor Statement
2© 2017 Columbus McKinnon Corporation 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
Slide 3: Strong Organic Growth & Solid EPS Results
3© 2017 Columbus McKinnon Corporation Strong Organic Growth & Solid EPS Results Sales rose 40.1% to $212.8 million Organic growth 8.5% (FX adjusted) – stronger than expected Robust U.S. organic growth +9.5% Market tailwinds: Industrial capacity utilization and GDP growth Product availability and
Slide 4: Net Sales and Sales Bridge
4© 2017 Columbus McKinnon Corporation $151.9 $152.5 $183.7 $203.7 $212.8 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Net Sales ($ in millions) Growth driven by organic volume and STAHL acquisition 8.5% organic growth (FX adjusted) Strong organic growth in U.S.: +10% • Construction, utilities, steel &
Slide 5: Gross Profit & Adjusted Gross Margin
5© 2017 Columbus McKinnon Corporation $49.7 $44.8 $50.3 $69.3 $71.6 $0.2 ($1.7) Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 $59.2 $69.5 $69.9 $8.9 34.1%*29.4%*32.7%* 32.2%* 32.9%* Gross Profit & Adjusted Gross Margin (1) Non-GAAP AdjustmentsGross Profit * Adjusted gross profit as % of sales Gross Profit
Slide 6: RSG&A
6© 2017 Columbus McKinnon Corporation RSG&A $19.0 $18.0 $21.5 $23.8 $25.0 $48.1 $19.4 $2.5 $2.5 $2.9 $2.9 $3.7 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 $49.5 $37.7$35.3 $45.6 (1) $13.8 $18.9 $17.2 $25.1 Incremental $9.2 million RSG&A with STAHL Pro-forma items: $1.3 legal costs for insurance recove
Slide 7: Operating Income & Non-GAAP Margin
7© 2017 Columbus McKinnon Corporation $12.6 $5.3 ($3.2) $19.6 $3.1 $20.1 $1.4 $0.7 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 $20.0 ($3.2) Operating Income & Non-GAAP Margin (1) Non-GAAP AdjustmentsIncome from Operations * Non-GAAP operating income as % of sales. (1) Adjusted operating income is a non-
Slide 8: Quarterly Earnings Per Share
8© 2017 Columbus McKinnon Corporation ($ in millions) $0.33 $0.02 ($0.22) $0.51 $0.54 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 $0.40 $0.25 $0.45 $0.55 $0.51 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Quarterly Earnings Per Share GAAP Diluted EPS Non-GAAP Adjusted EPS(1) (1) Adjusted net income and dilut
Slide 9: Working Capital and Inventory Turns
9© 2017 Columbus McKinnon Corporation 21.2% 19.9% 18.6% 19.0% 18.5% 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 (1) Working Capital 3.5x 3.9x 4.1x 4.0x 4.1x 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 Working Capital as a Percent of Sales Inventory Turns (1) Excludes the impact of STAHL which was acquired
Slide 10: Cash Flow
10© 2017 Columbus McKinnon Corporation Strong operating cash flow Managing CapEx: working to improve return on invested capital and pay down debt FY 2018 expected CapEx: ~ $15 million to $20 million(1) Cash Flow Note: Components may not add to totals due to rounding Three Months Ended September
Slide 11: Capitalization: De-levering Balance Sheet
11© 2017 Columbus McKinnon Corporation CAPITALIZATION Sep 30, 2017 March 31, 2017 Cash and cash equivalents $ 69.5 $ 77.6 Total debt 392.3 421.3 Total net debt 322.8 343.7 Shareholders’ equity 386.8 341.4 Total capitalization $ 779.0 $ 762.7 Debt/total capitalization 50.3% 55.2% Net debt/net total c
Slide 12: FY 2018 Outlook
12© 2017 Columbus McKinnon Corporation FY 2018 Outlook Orders and backlog Q2 order growth: 5.5% organic year/year Backlog decreased $10.6 million sequentially to $162.7 million; up 5% over prior year excluding STAHL • Seasonally slower order intake in Europe • STAHL backlog down $6.8 million seq
Slide 13: Strategic Plan to Increase Earnings Power
13© 2017 Columbus McKinnon Corporation Expect to introduce full plan in early 2018 Earnings Power Acceleration -- “EPAS” Plan to drive stronger earnings power with industrial technology focus Believe potential for margin expansion can translate to multiple expansion Focused on Profitable Growt
Slide 14: Supplemental Information
14© 2017 Columbus McKinnon Corporation Supplemental Information
Slide 15: Conference Call Playback Info
15© 2017 Columbus McKinnon Corporation Replay Number: 412-317-6671 passcode: 13671705 Telephone replay available through November 7, 2017 Webcast / PowerPoint / Replay available at www.cmworks.com/investors Transcript, when available, at www.cmworks.com/investors Conference Call Playback Info
Slide 16: Adjusted Gross Profit Reconciliation
16© 2017 Columbus McKinnon Corporation Adjusted Gross Profit Reconciliation Adjusted gross profit is defined as gross profit as reported, adjusted for unusual items. Adjusted gross profit is not a measure determined in accordance with generally accepted accounting principles in the United States, co
Slide 17: Adjusted Income from Operations Reconciliation
17© 2017 Columbus McKinnon Corporation Adjusted Income from Operations Reconciliation Adjusted income from operations is defined as income from operations as reported, adjusted for certain items. Adjusted income from operations is not a measure determined in accordance with generally accepted accoun
Slide 18: Adjusted Diluted EPS Reconciliation
18© 2017 Columbus McKinnon Corporation Adjusted Diluted EPS Reconciliation Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items and to apply a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in acco