Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Q1 FY2025 Earnings Presentation
25 slides from Columbus Mckinnon's earnings presentation, Jul 31, 2024
Slide 1: Q1 Fiscal 2025 Financial Results Conference Call
Q1 Fiscal 2025 Financial Results Conference Call Vice President, Investor Relations & Treasurer Kristine Moser Executive Vice President Finance & Chief Financial Officer Gregory P. Rustowicz July 31, 2024 President & Chief Executive Officer David J. Wilson
Slide 2: Forward-Looking Statements
© 2024 COLUMBUS MCKINNON CORPORATION These slides, and the accompanying oral discussion (together, this “presentation”), contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the u
Slide 3: Q1 FY25 Quarterly Review
© 2024 COLUMBUS MCKINNON CORPORATION 3 Q1 FY25 Quarterly Review • Net Sales up 2% Y/Y driven by growth in precision conveyance and lifting • Gross margin expanded 30 bps Y/Y and 110 bps on an adjusted basis1 • Net income of $8.6 million or 3.6% of sales included $2.6 million2 of costs for factory si
Slide 4: Orders and Backlog
© 2024 COLUMBUS MCKINNON CORPORATION 4 Orders and Backlog 1Long term backlog is expected to ship beyond three months $177.3 $148.3 $151.3 $144.6 $156.0 $178.0 $169.4 $147.1 $136.2 $136.8 $355.3 $317.7 $298.4 $280.8 $292.8 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Healthy pipeline of opportunities • Pr
Slide 5: Priority Initiatives in FY25
© 2024 COLUMBUS MCKINNON CORPORATION 5 Priority Initiatives in FY25 Focused on Delivering Profitable Growth and Margin Expansion Execute footprint simplification plan • Generate cost savings and operational improvement through Americas Manufacturing Center of Excellence in Monterrey, Mexico • Delive
Slide 6: Net Sales Delivered 2% Growth in Q1 FY25
© 2024 COLUMBUS MCKINNON CORPORATION 6 Net Sales Delivered 2% Growth in Q1 FY25 driven by precision conveyance and lifting Q1 FY25 net sales increased 2% Y/Y • montratec® acquired growth of 1%1 • Organic growth of 1% • Precision conveyance, up 10% • Project-related business, up 4% • Short-cycle, dow
Slide 7: Gross Profit & Margin
© 2024 COLUMBUS MCKINNON CORPORATION 7 Gross Profit & Margin Adjusted Gross Margin1 Expanded 110 bps Y/Y... On Track Toward Long-Term Objective 1 Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation. $86.6 $89.0 $0.8 $3.4 $0.2 ($0.2) ($1.6) ($0.2) Q1 FY24 Acq
Slide 8: RSG&A
© 2024 COLUMBUS MCKINNON CORPORATION 8 RSG&A $25.0 $26.9 $26.6 $26.9 $27.8 $27.4 $25.7 $26.3 $27.4 $26.4 $5.9 $6.5 $6.7 $7.1 $6.2 $58.3 $59.1 $59.5 $61.4 $60.4 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY25 RSG&A increased $2.1M Y/Y • $1.7M from montratec acquisition1 • G&A includes $1.9M of Monter
Slide 9: Operating Income
© 2024 COLUMBUS MCKINNON CORPORATION 9 Operating Income Q1 FY25 operating income decreased 1% Y/Y • Operating income included: o $3.6M of Monterrey Mexico start-up costs o $1.2M of costs related to our strategic partner conferences • Operating margin of 8.8% down 30 bps Q1 FY25 Adjusted Operating In
Slide 10: Earnings Per Share
© 2024 COLUMBUS MCKINNON CORPORATION 10 Earnings Per Share Delivered Adjusted EPS1 of $0.62 in Q1 FY25 Quarterly Diluted EPS $0.32 $0.55 $0.34 $0.41 $0.30 $0.62 $0.76 $0.74 $0.75 $0.62 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 net income of $8.6M decreased $0.6M Y/Y • $0.3M higher other expense (pe
Slide 11: Adjusted EBITDA
© 2024 COLUMBUS MCKINNON CORPORATION 11 Adjusted EBITDA Q1 FY25 Adjusted EBITDA1 increased 2% Y/Y • Flat Adjusted Operating Income1 • Increased depreciation and amortization of $1.0M Q1 FY25 Adjusted EBITDA Margin1 of 15.6% • Targeting ~21% Adjusted EBITDA Margin1 in FY27 • Expect 80/20 initiatives,
Slide 12: Free Cash Flow & FCF Conversion
© 2024 COLUMBUS MCKINNON CORPORATION 12 $86.6 $35.8 $71.0 $42.4 $49.5 951% 121% 147% 91% 108% FY21 FY22 FY23 FY24 TTM Q1 FY25 Free Cash Flow1 & FCF Conversion 1 Cash Flow Note: Components may not sum due to rounding Three Months Ended 6/30/24 6/30/23 Net cash provided by (used for) operating activit
Slide 13: Capital Structure
© 2024 COLUMBUS MCKINNON CORPORATION 13 Capital Structure Repaid $20M of debt in Q1 FY25 • Total debt down 4% YTD Repriced Term Loan B debt in Mar 2024 resulting in ~$2.5M of annual interest expense savings • Repriced TLB in March 2024 reducing applicable margin by 25 bps to 250 bps and eliminated 2
Slide 14: FY2025 Guidance
© 2024 COLUMBUS MCKINNON CORPORATION 14 FY2025 Guidance 1 Adjusted EPS and Net Leverage Ratio are non-GAAP financial measures. See supplemental information for additional information on non-GAAP financial measures. Forward-looking estimates of Adjusted EPS and Net Leverage Ratio are made in a manner
Slide 15: Q1 Fiscal 2025 Financial Results Conference Call
Q1 Fiscal 2025 Financial Results Conference Call Vice President, Investor Relations & Treasurer Kristine Moser Executive Vice President Finance & Chief Financial Officer Gregory P. Rustowicz July 31, 2024 President & Chief Executive Officer David J. Wilson
Slide 16: Supplemental Information
OND Supplemental Information INTELLIGENT MOTION PURPOSE IN MOTION
Slide 17: Conference Call Playback Info
© 2024 COLUMBUS MCKINNON CORPORATION 17 Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13747096 Telephone replay available through August 7, 2024 Webcast / PowerPoint / Replay available at investors.cmco.com Transcript, when available, at investors.cmco.com
Slide 18: Non-GAAP Financial Measures Definitions and Reconciliations
© 2024 COLUMBUS MCKINNON CORPORATION 18 The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting pr
Slide 19: Adjusted Gross Profit Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 19 ($ in thousands) Quarter Q1 FY24 Q1 FY25 Gross profit $ 86,649 $ 89,030 Add back (deduct): Business realignment costs 196 392 Monterrey, MX new factory start-up costs — 1,625 Adjusted Gross Profit $ 86,845 $ 91,047 Net sales $ 235,492 $ 239,726 Gross margin 36
Slide 20: Adjusted Operating Income Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 20 Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not meas
Slide 21: Adjusted Net Income and Adjusted EPS Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 21 Adjusted Net Income and Adjusted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted EPS are not measures de
Slide 22: Adjusted EBITDA Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 22 Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not mea
Slide 23: Free Cash Flow Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION Free Cash Flow is defined as net cash provided by (used for) operating activities less capital expenditures. Free Cash Flow Conversion is defined as Free Cash Flow divided by net income. Free Cash Flow and Free Cash Flow Conversion are not measures determined in
Slide 24: ROIC Reconciliation
© 2024 COLUMBUS MCKINNON CORPORATION 24 ROIC is defined as Adjusted Operating Income, net of taxes at a 25% normalized rate (fiscal 2021, 2022 and 2023 restated with a 25% normalized tax rate versus the 22% tax rate previously reported), for the trailing twelve months divided by the average of total
Slide 25: Net Debt and Net Leverage Ratio
© 2024 COLUMBUS MCKINNON CORPORATION 25 Net Debt is defined in the credit agreement as total debt plus standby letters of credit, net of cash and cash equivalents. Net Leverage Ratio is defined as Net Debt divided by the Credit Agreement Trailing Twelve Month (“TTM”) Adjusted EBITDA. Credit Agreemen