Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q3 FY2018 Earnings Presentation
18 slides from Columbus Mckinnon's earnings presentation, Feb 6, 2018
Slide 1: Q3 Fiscal Year 2018 Financial Results Conference Call
Sept 2017 Investor Presentation Mark D. Morelli President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer February 6, 2018 Q3 Fiscal Year 2018 Financial Results Conference Call
Slide 2: Safe Harbor Statement
2© 2018 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: Solid Growth & Strengthening Balance Sheet
3© 2018 Columbus McKinnon Corporation Solid Growth & Strengthening Balance Sheet Sales rose 36.9% to $208.7 million Organic growth 6.6% (FX adjusted), slightly ahead of expectations: U.S. organic growth +8.0% Non-U.S. organic growth +3.9% Strength in end markets both U.S. and Europe STAHL prov
Slide 4: Net Sales and Sales Bridge
4© 2018 Columbus McKinnon Corporation $152.5 $183.7 $203.7 $212.8 $208.7 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Net Sales ($ in millions) Growth driven by organic volume and STAHL acquisition 6.6% organic growth (FX adjusted) Strong organic growth in U.S.: 8% • Construction, utilities, steel & en
Slide 5: Gross Profit & Adjusted Gross Margin
5© 2018 Columbus McKinnon Corporation $44.8 $50.3 $69.3 $71.6 $69.0 ($1.7) $0.1 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 $59.2 $69.5 $69.9 $8.9 $69.1 $0.2 34.1%*29.4% 32.9%* 32.2%* 33.1%* Gross Profit & Adjusted Gross Margin(1) Non-GAAP AdjustmentsGross Profit * Adjusted gross profit as % of sales Gr
Slide 6: RSG&A
6© 2018 Columbus McKinnon Corporation RSG&A $18.0 $21.5 $23.8 $25.0 $25.5 $51.0 $19.4 $2.5 $3.7$2.9 $2.9 $3.3 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 $49.5 $37.7 $48.1$45.6 (1) $22.2$18.9 $17.2 $25.1 Incremental $8.5 million RSG&A with STAHL Pro-forma items: $3.0 million in integration costs $1.
Slide 7: Operating Income & Non-GAAP Margin
7© 2018 Columbus McKinnon Corporation $5.3 ($3.2) $20.0 $19.6 $14.2 $18.2 $20.1 $1.4 $0.7 $4.0 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 ($3.2) Operating Income & Non-GAAP Margin(1) Non-GAAP AdjustmentsIncome from Operations * Non-GAAP operating income as % of sales. (1) Adjusted operating income is a
Slide 8: Quarterly Earnings Per Share
8© 2018 Columbus McKinnon Corporation ($ in millions) $0.02 ($0.22) $0.51 $0.54 ($0.46) Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 $0.25 $0.45 $0.55 $0.51 $0.44 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Quarterly Earnings Per Share GAAP Diluted EPS Non-GAAP Adjusted EPS(1) (1) Adjusted net income and dil
Slide 9: Working Capital
9© 2018 Columbus McKinnon Corporation Working Capital 3.9x 4.1x 4.0x 4.1x 3.9x 12/31/16 3/31/17 6/30/17 9/30/17 12/31/2017 Working Capital as a Percent of Sales Inventory Turns (1) Excludes the impact of STAHL which was acquired on January 31, 2017 Working capital decreased 250 bps from the prior ye
Slide 10: Cash Flow
10© 2018 Columbus McKinnon Corporation Strong operating free cash flow YTD operating free cash flow of $41.9 million utilized to pay down debt Managing CapEx: working to improve return on invested capital and pay down debt FY 2018 expected CapEx: ~ $15 million(1) Cash Flow Note: Components may
Slide 11: Capitalization: De-levering Balance Sheet
11© 2018 Columbus McKinnon Corporation CAPITALIZATION December 31, 2017 March 31, 2017 Cash and cash equivalents $ 64.6 $ 77.6 Total debt 377.9 421.3 Total net debt 313.3 343.7 Shareholders’ equity 384.0 341.4 Total capitalization $ 761.9 $ 762.7 Debt/total capitalization 49.6% 55.2% Net debt/net to
Slide 12: Q4 FY2018 Outlook
12© 2018 Columbus McKinnon Corporation Q4 FY2018 Outlook Orders and backlog Q3 order growth: 16% organic year/year • NA up low double digits; EMEA up ~30% Organic backlog up 12% over prior year; down 6% sequentially to $152.3 million • STAHL backlog lower as a result of project shipment timing
Slide 13: Supplemental Information
13© 2018 Columbus McKinnon Corporation Supplemental Information
Slide 14: Conference Call Playback Info
14© 2018 Columbus McKinnon Corporation Replay Number: 412-317-6671 passcode: 13675058 Telephone replay available through February 13, 2018 Webcast / PowerPoint / Replay available at www.cmworks.com/investors Transcript, when available, at www.cmworks.com/investors Conference Call Playback Info
Slide 15: Adjusted Gross Profit Reconciliation
15© 2018 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 16: Adjusted Income from Operations Reconciliation
16© 2018 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 17: Adjusted Diluted EPS Reconciliation
17© 2018 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
Slide 18: Adjusted EBITDA Reconciliation
18© 2018 Columbus McKinnon Corporation Adjusted EBITDA Reconciliation Period Q4 FY17 Q3 FY18YTD Q3 FY18 TTM Income from Operations - GAAP $(3,164) $53,775 $50,611 Non-GAAP Adjustments: Acquisition inventory step-up expense and real estate transfer taxes 8,852 — 8,852 Acquisition deal, integration, a