Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q4 FY2017 Earnings Presentation
20 slides from Columbus Mckinnon's earnings presentation, May 31, 2017
Slide 1: Q4 Fiscal Year 2017 Financial Results Conference Call
1 1 Q4 Fiscal Year 2017 Financial Results Conference Call May 31, 2017 Mark D. Morelli President & Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 2: Safe Harbor Statement
2 2 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 the actual results o
Slide 3: Q4 and FY 2017 Highlights
3 3 Q4 and FY 2017 Highlights Reason for joining CMCO Solid business, strong market positions with a history of cash generation Opportunities for growth and earnings power – lots of runway Solid end to year STAHL acquisition Volume uptick in U.S., APAC and Latin America $21 million of adjust
Slide 4: Adjustments in Q4 FY17
4 4 Adjustments in Q4 FY17 ($ in millions) Total: $21.2 million Significant non-operating items in the quarter COGS G&A G&A G&A
Slide 5: Net Sales
5 5 Net Sales ($ in millions) Quarter STAHL added $24.7 million Organic growth: $3.9 million, or 2.5% Year Acquired revenue of $65.0 million Q4 FY17 FY 2017 Acquisitions $ 24.7 15.9% $ 65.0 10.8% Pricing (0.1) (0.1)% 0.7 0.1% Volume 4.9 3.2% (20.6) (3.3)% Foreign currency translation (0.9) (0.6)% (5
Slide 6: Gross Profit & Adjusted Gross Margin
6 6 Gross Profit & Adjusted Gross Margin1 Non-GAAP Adjustments Gross Profit * Adjusted gross profit as % of sales Quarter and Fiscal Year Bridge (1) Adjusted gross profit is a non-GAAP financial measures. Please see supplemental slides for a reconciliation from GAAP gross profit to non-GAAP gross pr
Slide 7: SG&A Expense
7 7 SG&A Expense $15.3 $16.3 $16.3 $16.6 $18.0 Selling G&A Unusual Costs Quarter Selling expense: STAHL added $2.9 million G&A expense: $10.1 million of unusual costs STAHL added $1.5 million Year Selling expense: Acquisitions added $7.9 million $0.2 million of unusual costs G&A expense: $
Slide 8: Operating Income & Non-GAAP Margin
8 8 Operating Income & Non-GAAP Margin(1) Non-GAAP Adjustments Income from Operations Quarter STAHL: $2.8 million incremental operating income 11.5% adjusted operating margin Year $23.5 million of unusual costs STAHL amortization estimated to be $6.7 million per year * Non-GAAP operating income
Slide 9: Quarterly Earnings Per Share
9 9 Quarterly Earnings Per Share GAAP Diluted EPS Non-GAAP Adjusted EPS(1) (1) Adjusted net income and diluted earnings per share (EPS) are non-GAAP financial measures. Please see supplemental slides for a reconciliation from GAAP net income and diluted EPS to non-GAAP adjusted net income and dilute
Slide 10: Annual Earnings Per Share
10 10 Annual Earnings Per Share (1) Adjusted net income and diluted earnings per share (EPS) are non-GAAP financial measures. Please see supplemental slides for a reconciliation from GAAP net income and diluted EPS to non-GAAP adjusted net income and diluted EPS and other important disclosures regar
Slide 11: Working Capital
11 11 Working Capital Working Capital as a Percent of Sales Inventory Turns (1) Excludes the impact of Magnetek, which was acquired on September 2, 2015 (2) Excludes the impact of STAHL which was acquired on January 31, 2017 (1) (1) Working capital as a percent of sales was 18.6% Best performance
Slide 12: Cash Flow
12 12 Strong operating cash flow despite ~$8 million of cash consumed for unusual items Managing CapEx: working to improve return on invested capital FY 2018 expected CapEx: ~$20 to $24 million(1) Cash Flow Note: Components may not add to totals due to rounding Three Months Ended March 31, Year Ende
Slide 13: Capitalization
13 13 Capitalization March 31, 2017 March 31, 2016 Cash and cash equivalents $ 77.6 $ 51.6 Total debt 421.3 267.6 Total net debt 343.7 216.0 Shareholders’ equity 341.4 286.3 Total capitalization $ 762.7 $ 553.9 Debt/total capitalization 55.2% 48.3% Net debt/net total capitalization 50.2% 43.0% De-le
Slide 14: Perspectives – Day Review
14 14 Perspectives – 90 Day Review People Strength Operating system & metrics Implementing STAHL acquisition On track Magnetek technology Opportunity Operations Opportunity Financial performance Opportunity Culture of accountability Implementing
Slide 15: Near-term Priorities and Outlook
15 15 Near-term Priorities and Outlook Integrate STAHL Expect $5 million in synergies in FY2018 Realizing growth opportunities Leverage Magnetek technology Cost effectively embedding digital controls in hoists Products will include information intelligence Strengthen the core Identifying a
Slide 16: Supplemental Information
16 16 Supplemental Information
Slide 17: Conference Call Playback Info
17 17 Replay Number: 412-317-6671 passcode: 13659715 Telephone replay available through June 7, 2017 Webcast / PowerPoint / Replay available at www.cmworks.com/investors Transcript, when available, at www.cmworks.com/investors Conference Call Playback Info
Slide 18: Adjusted Gross Profit Reconciliation
18 18 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, commonly known as GAAP, and may not
Slide 19: Adjusted Income from Operations Reconciliation
19 19 Adjusted Income from Operations Reconciliation Adjusted income from operations is defined as income from operations as reported, adjusted for certain items and to apply a normalized tax rate. Adjusted income from operations is not a measure determined in accordance with generally accepted acco
Slide 20: Adjusted Diluted EPS Reconciliation
20 20 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 accordance with generally accepted ac