Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q1 FY2018 Earnings Presentation
19 slides from Columbus Mckinnon's earnings presentation, Aug 1, 2017
Slide 1: Q1 Fiscal Year 2018 Financial Results Conference Call
11 Q1 Fiscal Year 2018 Financial Results Conference Call August 1, 2017 Mark D. Morelli President & Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 2: Safe Harbor Statement
22 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 of
Slide 3: Making Progress – Building Momentum
33 Making Progress – Building Momentum Operating system adding value New cadence; driving discipline and accountability Targeted focus; clarity of purpose with better prioritization Managing opportunities and risks Enhanced collaboration and teamwork Business model evolving to industrial tec
Slide 4: Q1 Highlights
44 Q1 Highlights Sales rose 36.7% to $203.7 million; Organic growth 8% U.S. up 14% organically: distributors stepping up inventory on strong demand Latin America and APAC strength on improving economies Record gross profit margin of 34% Net income of $11.7 million, or $0.51 diluted eps STAHL add
Slide 5: Net Sales and Sales Bridge
55 $149.0 $151.9 $152.5 $183.7 $203.7 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Net Sales ($ in millions) Growth driven by organic volume and acquisition STAHL up from trailing quarter; driven by oil & gas projects being released and extra month 8% organic growth Strong volume in U.S.: +14% • Cons
Slide 6: Gross Profit & Adjusted Gross Margin
66 $48.0 $49.7 $44.8 $50.3 $69.3 $8.9 $0.2 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 $59.2 $69.5 34.1%*29.4%*32.7%* 32.2%*32.2%* Gross Profit & Adjusted Gross Margin1 Non-GAAP AdjustmentsGross Profit * Adjusted gross profit as % of sales Quarter Gross Margin Bridge (1) Adjusted gross profit is a non-G
Slide 7: RSG&A
77 RSG&A $18.8 $19.0 $18.0 $21.5 $23.8 $2.5 $2.5 $2.5 $2.8 $2.9 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 $49.5 $37.7 $35.3$35.1 $45.6 (1) $13.8 $13.8 $18.9 $17.2 $25.2 Incremental $8.5 million RSG&A with STAHL $1.0 million in integration costs $0.2 legal costs for insurance recovery Received $1.7 m
Slide 8: Operating Income & Non-GAAP Margin
88 $11.2 $12.6 $5.3 $20.0 $0.2 $3.1 $20.1 $1.4 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 $0.2 $5.3 ($3.2) Operating Income & Non-GAAP Margin(1) Non-GAAP AdjustmentsIncome from Operations * Non-GAAP operating income as % of sales. (1) Adjusted operating income is a non-GAAP financial measures. Please s
Slide 9: Quarterly Earnings Per Share
99 ($ in millions) $0.32 $0.33 $0.02 ($0.22) $0.51 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 $0.37 $0.40 $0.25 $0.45 $0.55 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Quarterly Earnings Per Share GAAP Diluted EPS Non-GAAP Adjusted EPS(1) (1) Adjusted net income and diluted earnings per share (EPS) are non
Slide 10: Working Capital and Inventory Turns
1010 22.4% 21.2% 19.9% 18.6% 19.0% 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 Working Capital 3.4x 3.5x 3.9x 4.1x 4.0x 6/30/16 9/30/16 12/31/16 3/31/17 6/30/2017 Working Capital as a Percent of Sales Inventory Turns (1) Excludes the impact of Magnetek, which was acquired on September 2, 2015 (2) Exclu
Slide 11: Cash Flow
1111 Strong operating cash flow doubled over prior year Managing CapEx: working to improve return on invested capital FY 2018 expected CapEx: ~$20 million(1) Cash Flow Note: Components may not add to totals due to rounding Three Months Ended June 30, 2017 2016 Net cash provided by operating activiti
Slide 12: Capitalization: De-levering Balance Sheet
1212 Capitalization June 30, 2017 March 31, 2017 Cash and cash equivalents $ 64.6 $ 77.6 Total debt 408.0 421.3 Total net debt 343.4 343.7 Shareholders’ equity 364.0 341.4 Total capitalization $ 772.0 $ 762.7 Debt/total capitalization 52.9% 55.2% Net debt/net total capitalization 48.5% 50.2% De-leve
Slide 13: FY 2018 Outlook
1313 FY 2018 Outlook Orders and backlog Strong order growth: 14.3% organic year/year Sequential order growth more moderate at 4.5% Down in U.S., improved in EMEA Backlog increased 12.2% to $173.3 million STAHL backlog up on seasonal customer order and pent up Middle East Oil & Gas demand Outlook
Slide 14: Near-term Priorities
1414 Near-term Priorities Integrate STAHL On target for $5 million of synergies in FY2018 Restructuring U.S. operations – separate from Kone Standardize on wire rope hoist design – more cost effective and broader range Capitalize on growth opportunities Leverage Magnetek technology Approxi
Slide 15: Supplemental Information
1515 Supplemental Information
Slide 16: Conference Call Playback Info
1616 Replay Number: 412-317-6671 passcode: 13665310 Telephone replay available through August 8, 2017 Webcast / PowerPoint / Replay available at www.cmworks.com/investors Transcript, when available, at www.cmworks.com/investors Conference Call Playback Info
Slide 17: Adjusted Gross Profit Reconciliation
1717 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 18: Adjusted Income from Operations Reconciliation
1818 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 accou
Slide 19: Adjusted Diluted EPS Reconciliation
1919 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 acc