Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q1 FY2022 Earnings Presentation
27 slides from Columbus Mckinnon's earnings presentation, Jul 29, 2021
Slide 1: Q1 Fiscal Year 2022 Financial Results Conference Call
Q1 Fiscal Year 2022 Financial Results Conference Call July 29, 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: Solid Start to Fiscal 2022
Solid Start to Fiscal 2022 Dorner acquisition exceeding expectations Strong growth, expanding margins and record backlog • Sales of $213.5 million increased 53.5% including 23.9% organic growth • Gross margin of 34.7%; record 36.3% adjusted gross margin including 80 basis points contribution from Do
Slide 4: Launched Inaugural CSR Report
Launched Inaugural CSR Report ENVIRONMENTAL STEWARDSHIP CLIMATE CHANGE & ENERGY MANAGEMENT WASTE MANAGEMENT & RECYCLING SOCIAL RESPONSIBILITY EMPLOYEE HEALTH & SAFETY TALENT MANAGEMENT DEI PRODUCT QUALITY & INNOVATION PURPOSE, MISSION, VISION, VALUES COMMUNITY INVOLVEMENT Strategic Initiatives CUSTO
Slide 5: Intelli-Connect Mobile+
Intelli-Connect™ Mobile+ Advanced intelligence capabilities for data-driven decision making • Enhances safety by not requiring physical access to overhead • Expands remote hoist and crane monitoring capabilities and crane controls enables predictive maintenance • Real time monitoring of usage, opera
Slide 6: Net Sales
Net Sales ($ in millions) Q1 sales up 53.5% from prior-year period due to Q1 FY22 Sales Bridge strong demand and Dorner acquisition • U.S. (excl. Dorner): 27.8% volume and 0.9% pricing Quarter increase • Non-U.S (excl. Dorner): 16.4% volume and 2.0% pricing Q1 FY21 Sales $ 139.1 increase Acquisition
Slide 7: Gross Profit & Margin
Gross Profit & Margin ($ in millions) Quarter Gross Profit Bridge $74.1 Quarter Q1 FY21 Gross Profit $ 44.8 $64.1 Acquisition 14.0 $56.0 $55.3 Sales volume and mix 11.6 Productivity, net of other cost changes 2.9 $44.8 Foreign currency translation 2.4 Prior year factory closure costs 1.9 Pricing, ne
Slide 8: RSG&A
RSG&A ($ in millions) Q1 FY22 RSG&A of $57.2 million includes RSG&A as $8.7 million of acquisition related costs and % of sales: 28.7% 23.5% 25.1% 25.1% 26.8% $0.6 million of business realignment costs—largely in G&A (~$8.9M) $57.2 • RSG&A of $47.9 million excluding these one-time costs $46.7 $3.6 $
Slide 9: Operating Income
Operating Income ($ in millions) Operating Income & Margin Q1 FY22 operating income of $10.7 million • Adjusted operating income of $23.6 million $15.8 $14.2 $10.4 $10.7 Operating margin of 5.0%; Adjusted operating margin of 11.1% $1.8 1.3% 10.0% 6.3% 7.6% 5.0% • Margin expansion driven by operating
Slide 10: Earnings Per Share
Earnings Per Share GAAP Diluted EPS Q1 FY22 net loss of $7.3 million $0.39 $0.27 Adj. net income of $18.7 million in the quarter • $14.8 million of debt refinancing costs • $9.2 million of acquisition deal and integration costs ($0.12) related to Dorner ($0.17) ($0.27) • $3.0 million of inventory st
Slide 11: Adjusted EBITDA & ROIC
Adjusted EBITDA & ROIC Adjusted EBITDA Margin Adjusted EBITDA margin continues to recover from FY21 15.7% • Q1 FY22 Adjusted EBITDA margin of 16.0% up 730 basis 13.7% points from prior year 11.9% • 190 basis points contribution from the addition of Dorner • Targeting 19% Adjusted EBITDA margin in FY
Slide 12: Cash Flow
Cash Flow ($ in millions) (2) Three Months Ended Free Cash Flow 6/30/21 6/30/20 Net cash provided by $97.4 $ (7.4) $ 9.5 operating activities $86.6 CapEx (3.6) (1.1) $67.2 $67.1 (2) Free cash flow (FCF) $ (11.0) $ 8.4 Note: Components may not add to totals due to rounding • Q1 FY22 cash outflow of $
Slide 13: Capital Structure
Capital Structure ($ in millions) CAPITALIZATION Pro-forma net debt leverage ratio of ~3.0x(1) June 30, March 31, • Net debt to net total capital: 33.8% 2021 2021 Cash and cash equivalents $ 88.7 $ 202.1 ~$170 million of liquidity Total debt 459.3 249.0 Financed Dorner acquisition with equity and de
Slide 14: Orders and Backlog
Orders and Backlog ($ in millions) Record orders of $249.8 million Record backlog of $247.4 million • 20% sequential and 82% year-over-year increases • Up 23% in short-cycle business and 19% project, sequentially • Sequential increase driven by short cycle business and Dorner • Dorner added $40.5 mi
Slide 15: Outlook and Perspective
Outlook and Perspective Q2 FY2022 outlook • Expect Q2 FY22 net sales in range of $225 million to $230 million(1) Strong order and backlog levels drive growth • Positive trends across all industries with encouraging trends in heavy industry and offshore oil & gas • Entertainment coming back to life •
Slide 16: Q1 Fiscal Year 2022 Financial Results Conference Call
Q1 Fiscal Year 2022 Financial Results Conference Call July 29, 2021 David J. Wilson President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 17: Supplemental Information
CN Supplemental Information COLUMBUS McKINNON
Slide 18: Blueprint for Growth 2.0
Blueprint for Growth 2.0 Pivot Columbus McKinnon toward growth: Organic and Inorganic Strategy to deliver growth, financial performance and shareholder value 18
Slide 19: Conference Call Playback Info
Conference Call Playback Info Replay Number: 412-317-6671 passcode: 10158268 Telephone replay available through August 5, 2021 Webcast / PowerPoint / Replay available at investors.columbusmckinnon.com Transcript, when available, at investors.columbusmckinnon.com 19
Slide 20: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation ($ in thousands) Quarter Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GAAP gross profit $ 44,797 $ 56,025 $ 55,315 $ 64,088 $ 74,063 Add back (deduct): Acquisition inventory step-up expense — — — — 2,981 Acquisition integration costs — — — — 521 Factory closures 1,928
Slide 21: Adjusted Income from Operations Reconciliation
Adjusted Income from Operations Reconciliation ($ in thousands) Quarter Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GAAP income from operations $ 1,789 $ 15,820 $ 10,447 $ 14,199 $ 10,746 Add back (deduct): Acquisition deal and integration costs — — — 3,951 9,242 Acquisition inventory step-up expense —
Slide 22: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands, except per share data) Quarter Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GAAP net income (loss) $ (2,969) $ (4,104) $ 6,594 $ 9,585 $ (7,263) Add back (deduct): Amortization of intangibles 3,115 3,192 3,142 3,174 6,109 Cost of debt refinancing — — —
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Quarter Fiscal Year Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 2021 2020 GAAP net income (loss) $ (2,969) $ (4,104) $ 6,594 $ 9,585 $ (7,263) $ 9,106 $ 59,672 Add back (deduct): Income tax expense (benefit) (963) (45) 616 1,362 (2,517) 970 17,484 Interest
Slide 24: Return on Invested Capital (ROIC) Reconciliation
Return on Invested Capital (ROIC) Reconciliation ($ in thousands) Fiscal Year TTM 2020 2021 Q1 FY22 GAAP income from operations $ 89,824 $ 42,255 $ 51,212 Add back (deduct): Acquisition deal and integration costs — 3,951 13,193 Acquisition inventory step-up expense — — 2,981 Factory closures 4,709 3
Slide 25: 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% 75.3% (Manufacturing) & 73% 75.4% (Total) June 2021(1) 71% 65% 69% 67% 60% 65% Manufacturing Total (
Slide 26: ISM Production Index
ISM Production Index Source: Institute of Supply Chain Management 70% 65% 60% 55% 60.8% June 2021 50% 45% 40% 35% 30% 25% 26
Slide 27: Q1 Fiscal Year 2022 Financial Results Conference Call
Q1 Fiscal Year 2022 Financial Results Conference Call July 29, 2021