COLUMBUS MCKINNON CORPORATION

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Columbus McKinnon : Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022 - Form 8-K

01/27/2022 | 04:38pm EDT
Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022

BUFFALO, NY, January 27, 2022 - Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2022 third quarter, which ended December 31, 2021. Results include the additions of Dorner Manufacturing Corporation and Garvey Corporation, which were acquired on April 7, 2021 and December 1, 2021, respectively.
Third Quarter Highlights (compared with prior year period)
•Advancing Columbus McKinnon's transformation to intelligent motion solutions for material handling
•Garvey acquisition enhances precision conveyance platform with leading accumulation systems
•Sales grew 30% from acquisitions, strong organic volume and improved pricing
•Orders up 14% year-over-year excluding acquisitions; strong demand across end markets; Backlog at quarter end was record $295 million
•Gross margin was 34.7%; adjusted gross margin of 36.7% matched record set in second quarter
•Solid cash generation while building inventory to address strong demand amidst supply chain constraints
David Wilson, President and CEO of Columbus McKinnon, commented, "We believe our strong results in the quarter reflect our successful execution of the Blueprint for Growth 2.0 strategy as we advance the transformation of Columbus McKinnon. The acquisition of Garvey Corporation completed in December 2021 was an excellent example of an ideal bolt-on acquisition that expands our precision conveyance capabilities and deepens our reach into the fast growing and less cyclical food & beverage and pharmaceutical industries. In addition, strong volume and productivity, combined with pricing that more than offset material inflation, delivered record third quarter gross margin. We are successfully navigating a dynamic and challenging environment and delivering solid results while experiencing strong demand across the business. As a result, we are entering our fiscal fourth quarter with record backlog."
He added, "As a global expert in floor-to-ceiling intelligent motion solutions for material handling, we see our solutions as uniquely positioned to drive value in this global economy. Our solutions are enabling our customers in e-commerce, food & beverage, life sciences, aerospace and automotive to address some of the most pressing issues that they are facing today. We are providing critical support for vaccine deliveries, e-commerce expansion, supply chain rebalancing, labor shortages, capacity expansion and modernization."

Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 2 of 13
January 27, 2022
Third Quarter Fiscal 2022 Sales
($ in millions) Q3 FY 22 Q3 FY 21 Change % Change
Net sales $ 216.1 $ 166.5 $ 49.5 29.7 %
U.S. sales $ 128.7 $ 87.6 $ 41.1 46.9 %
% of total 60 % 53 %
Non-U.S. sales $ 87.4 $ 78.9 $ 8.5 10.8 %
% of total 40 % 47 %
For the quarter, sales increased $49.5 million, or 29.7%. Acquisitions added $36.4 million in sales. In the U.S., volume improved $6.5 million, or 7.5%, and price improved $3.2 million, or 3.6%. U.S. sales related to acquisitions were $31.4 million. Outside the U.S., volume improved $2.4 million, or 3.1%, and price improved $2.5 million, or 3.1%. This more than offset unfavorable foreign currency translation of $1.5 million, or 0.9% of total sales. Acquisitions added $5.0 million of sales outside the U.S.

Third Quarter Fiscal 2022 Operating Results
($ in millions)
Q3 FY 22 Q3 FY 21 Change % Change
Gross profit $ 75.1 $ 55.3 $ 19.7 35.7 %
Gross margin 34.7 % 33.2 % 150 bps
Income from operations $ 15.3 $ 10.4 $ 4.9 46.6 %
Operating margin 7.1 % 6.3 % 80 bps
Adjusted income from operations* $ 20.5 $ 11.2 $ 9.3 83.5 %
Adjusted operating margin* 9.5 % 6.7 % 280 bps
Net income (loss) $ 9.9 $ 6.6 $ 3.3 50.0 %
Net income (loss) margin 4.6 % 4.0 % 60 bps
Diluted EPS $ 0.34 $ 0.27 $ 0.07 25.9 %
Adjusted EPS* $ 0.60 $ 0.36 $ 0.24 66.7 %
Adjusted EBITDA* $ 30.7 $ 18.1 $ 12.6 69.4 %
Adjusted EBITDA margin* 14.2 % 10.9 % 330 bps
*Adjusted operating income, adjusted operating margin, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding adjusted operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.
Acquisitions added $6.8 million in adjusted operating income. Adjusted earnings per diluted share were $0.60 in the fiscal 2022 third quarter compared with $0.36 in the prior year. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.

Fourth Quarter Fiscal 2022 Outlook
Columbus McKinnon expects fourth quarter fiscal 2022 sales of approximately $235 million at current exchange rates. Mr. Wilson commented, "We have had great momentum throughout fiscal 2022 and expect to end on a strong note. As we look beyond this fiscal year, we are greatly encouraged with the progress we are making as an organization as we focus on faster growing markets, enhance our capabilities with new technologies and build a world-class organization that will be central to the automation of material handling around the world."


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 3 of 13
January 27, 2022
Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which management will review the Company's financial results and strategy. The review will be accompanied by a slide presentation, which will be available on Columbus McKinnon's website at investors.columbusmckinnon.com. A question-and-answer session will follow the formal discussion.
The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13725924. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, February 3. Alternatively, an archived webcast of the call can be found on the Company's website. In addition, a transcript of the call will be posted to the website once available.

About Columbus McKinnon
Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.

Safe Harbor Statement
This news release contains "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 sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company's ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the forward-looking information contained in this release.

Contacts:
Gregory P. Rustowicz Investor Relations:
Senior Vice President - Finance and Chief Financial Officer Deborah K. Pawlowski
Columbus McKinnon Corporation Kei Advisors LLC
716-689-5442 716-843-3908
greg.rustowicz@cmworks.com dpawlowski@keiadvisors.com
Financial tables follow.

Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 4 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Three Months Ended
December 31, 2021 December 31, 2020 Change
Net sales $ 216,088 $ 166,547 29.7 %
Cost of products sold 141,031 111,232 26.8 %
Gross profit 75,057 55,315 35.7 %
Gross profit margin 34.7 % 33.2 %
Selling expenses 24,468 18,829 29.9 %
% of net sales 11.3 % 11.3 %
General and administrative expenses 25,144 19,859 26.6 %
% of net sales 11.6 % 11.9 %
Research and development expenses 3,875 3,038 27.6 %
% of net sales 1.8 % 1.8 %
Amortization of intangibles 6,254 3,142 99.0 %
Income from operations 15,316 10,447 46.6 %
Operating margin 7.1 % 6.3 %
Interest and debt expense 4,375 2,986 46.5 %
Investment (income) loss (76) (495) (84.6) %
Foreign currency exchange (gain) loss 512 602 (15.0) %
Other (income) expense, net (455) 144 NM
Income (loss) before income tax expense (benefit) 10,960 7,210 52.0 %
Income tax expense (benefit) 1,066 616 73.1 %
Net income (loss) $ 9,894 $ 6,594 50.0 %
Average basic shares outstanding 28,469 23,928 19.0 %
Basic income (loss) per share $ 0.35 $ 0.28 25.0 %
Average diluted shares outstanding 28,840 24,201 19.2 %
Diluted income (loss) per share $ 0.34 $ 0.27 25.9 %
Dividends declared per common share $ 0.06 $ 0.06


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 5 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Nine Months Ended
December 31, 2021 December 31, 2020 Change
Net sales $ 653,187 $ 463,407 41.0 %
Cost of products sold 422,932 307,270 37.6 %
Gross profit 230,255 156,137 47.5 %
Gross profit margin 35.3 % 33.7 %
Selling expenses 72,107 56,087 28.6 %
% of net sales 11.0 % 12.1 %
General and administrative expenses 78,495 53,842 45.8 %
% of net sales 12.0 % 11.6 %
Research and development expenses 11,283 8,703 29.6 %
% of net sales 1.7 % 1.9 %
Amortization of intangibles 18,648 9,449 97.4 %
Income from operations 49,722 28,056 77.2 %
Operating margin 7.6 % 6.1 %
Interest and debt expense 14,774 9,192 60.7 %
Cost of debt refinancing 14,803 - NM
Investment (income) loss (624) (1,429) (56.3) %
Foreign currency exchange (gain) loss 1,047 1,083 (3.3) %
Other (income) expense, net (744) 20,081 NM
Income (loss) before income tax expense (benefit) 20,466 (871) NM
Income tax expense (benefit) 2,632 (392) NM
Net income (loss) $ 17,834 $ (479) NM
Average basic shares outstanding 27,887 23,871 16.8 %
Basic income (loss) per share $ 0.64 $ (0.02) NM
Average diluted shares outstanding 28,255 23,871 18.4 %
Diluted income (loss) per share $ 0.63 $ (0.02) NM
Dividends declared per common share $ 0.12 $ 0.12

Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 6 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
December 31, 2021 March 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 106,699 $ 202,127
Trade accounts receivable 125,879 105,464
Inventories 175,099 111,488
Prepaid expenses and other 33,449 22,763
Total current assets 441,126 441,842
Property, plant, and equipment, net 98,219 74,753
Goodwill 657,084 331,176
Other intangibles, net 400,560 213,362
Marketable securities 11,099 7,968
Deferred taxes on income 2,138 20,080
Other assets 61,247 61,251
Total assets $ 1,671,473 $ 1,150,432
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 74,061 $ 68,593
Accrued liabilities 116,410 110,816
Current portion of long-term debt and finance lease obligations 40,530 4,450
Total current liabilities 231,001 183,859
Term loan and finance lease obligations 480,589 244,504
Other non-current liabilities 214,248 191,920
Total liabilities 925,838 620,283
Shareholders' equity:
Common stock 285 240
Additional paid-in capital 503,701 296,093
Retained earnings 308,223 293,802
Accumulated other comprehensive loss (66,574) (59,986)
Total shareholders' equity 745,635 530,149
Total liabilities and shareholders' equity $ 1,671,473 $ 1,150,432


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 7 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
Nine Months Ended
December 31, 2021 December 31, 2020
Operating activities:
Net income (loss) $ 17,834 $ (479)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization 31,245 21,203
Deferred income taxes and related valuation allowance (1,940) (7,344)
Net loss (gain) on sale of real estate, investments, and other (390) (1,262)
Stock based compensation 8,485 5,840
Amortization of deferred financing costs 1,274 1,986
Cost of debt refinancing 14,803 -
Loss (gain) on hedging instruments 682 -
Non-cash pension settlement expense - 18,933
Gain on sale of building (375) (2,638)
Non-cash lease expense 5,936 5,721
Changes in operating assets and liabilities, net of effects of business acquisitions:
Trade accounts receivable 3,931 34,254
Inventories (42,215) 20,786
Prepaid expenses and other (5,544) (1,564)
Other assets (298) 545
Trade accounts payable (4,229) (8,764)
Accrued liabilities 2,608 (9,922)
Non-current liabilities (8,080) (5,347)
Net cash provided by (used for) operating activities 23,727 71,948
Investing activities:
Proceeds from sales of marketable securities 3,441 4,231
Purchases of marketable securities (6,357) (4,067)
Capital expenditures (9,506) (5,904)
Proceeds from sale of building, net of transaction costs 461 5,453
Proceeds from insurance reimbursement 482 100
Purchases of businesses, net of cash acquired (539,778) -
Dividend received from equity method investment 324 587
Proceeds from sale of fixed assets - 446
Net cash provided by (used for) investing activities (550,933) 846
Financing activities:
Proceeds from issuance of common stock 2,520 1,828
Borrowings under line-of-credit agreements - 25,000
Payments under line-of-credit agreements - (25,000)
Repayment of debt (467,725) (3,338)
Proceeds from issuance of long-term debt 725,000 -
Proceeds from equity offering 207,000 -
Fees related to debt and equity offering (26,184) -
Cash inflows from hedging activities 13,234 -
Cash outflows from hedging activities (13,687) -
Fees paid for revolver extension - (826)
Payment of dividends (4,852) (4,294)
Other (2,054) (1,050)
Net cash provided by (used for) financing activities 433,252 (7,680)
Effect of exchange rate changes on cash (1,474) 8,062
Net change in cash and cash equivalents (95,428) 73,176
Cash, cash equivalents, and restricted cash at beginning of year 202,377 114,700
Cash, cash equivalents, and restricted cash at end of period $ 106,949 $ 187,876


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 8 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Q3 FY 2022 Sales Bridge
Quarter Year To Date
($ in millions) $ Change % Change $ Change % Change
Fiscal 2021 Sales $ 166.5 $ 463.4
Acquisitions 36.4 21.8 % 104.1 22.5 %
Volume 9.1 5.4 % 66.7 14.4 %
Pricing 5.6 3.4 % 11.6 2.5 %
Foreign currency translation (1.5) (0.9) % 7.4 1.6 %
Total change $ 49.6 29.7 % $ 189.8 41.0 %
Fiscal 2022 Sales $ 216.1

$ 653.2

COLUMBUS McKINNON CORPORATION
Q3 FY 2022 Gross Profit Bridge
($ in millions) Quarter Year To Date
Fiscal 2021 Gross Profit $ 55.3 $ 156.1
Acquisitions 16.7 44.0
Sales volume and mix 3.2 23.1
Productivity, net of other cost changes 3.6 11.9
Price, net of material cost inflation 1.4 3.0
Prior year factory closure costs 0.3 2.7
Foreign currency translation (0.5) 2.4
Prior year business realignment costs 0.2 0.6
Acquisition integration costs - (0.5)
Acquisition amortization of backlog (0.5) (0.5)
Business realignment costs (0.7) (1.6)
Prior year gain on sale of building - (2.2)
Tariffs (0.4) (2.2)
Product liability (3.0) (3.0)
Acquisition inventory step-up expense (0.5) (3.5)
Total change 19.8 74.2
Fiscal 2022 Gross Profit $ 75.1 $ 230.3

U.S. Shipping Days by Quarter
Q1 Q2 Q3 Q4 Total
FY 22 63 64 61 63 251
FY 21 63 64 61 63 251


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 9 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
December 31, 2021 September 30, 2021 March 31, 2021 December 31, 2020
($ in millions)
Backlog $ 294.7 $ 255.6 $ 171.7 $ 152.4
Long-term backlog
Expected to ship beyond 3 months $ 116.3 $ 110.5 $ 68.0 $ 62.1
Long-term backlog as % of total backlog 39.5 % 43.2 % 39.6 % 40.7 %
Trade accounts receivable
Days sales outstanding (3)
50.6 days 51.0 days 51.5 days 51.5 days
Inventory turns per year (3)
(based on cost of products sold) 3.3 turns 3.9 turns 4.4 turns 3.9 turns
Days' inventory (3)
111.4 days 94.7 days 83.3 days 93.1 days
Trade accounts payable
Days payables outstanding (3)
56.9 days 54.3 days 58.7 days 46.6 days
Working capital as a % of sales (2)
15.2 % 14.4 % 9.3 % 13.3 %
Net cash provided by (used for) operating activities $ 5.8 $ 25.3 $ 26.9 $ 25.0
Capital expenditures $ 2.8 $ 3.1 $ 6.4 $ 3.1
Free cash flow (1)
$ 3.0 $ 22.2 $ 20.5 $ 21.9
Debt to total capitalization percentage 41.1 % 38.1 % 32.0 % 33.4 %
Debt, net of cash, to net total capitalization 35.7 % 32.1 % 8.1 % 11.1 %
(1) Free cash flow is defined as cash from operations less capital expenditures. Free cash flow is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as free cash flow, is important for investors and other readers of the Company's financial statements.
Components may not add due to rounding.
(2) December 31, 2021 and September 30, 2021 figures exclude the impact of the acquisitions of Dorner and Garvey.
(3) December 31, 2021 figures exclude the impact of the acquisition of Garvey.

Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 10 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
Three Months Ended December 31, Nine Months Ended December 31,
2021 2020 2021 2020
GAAP gross profit $ 75,057 $ 55,315 $ 230,255 $ 156,137
Add back (deduct):
Acquisition inventory step-up expense 515 - 3,496 -
Product liability settlement 2,850 - 2,850 -
Business realignment costs 692 237 1,606 566
Acquisition integration costs - - 521 -
Acquisition amortization of backlog 450 - 450 -
Factory closures - 250 - 2,671
Gain on sale of building - - - (2,189)
Non-GAAP adjusted gross profit $ 79,564 $ 55,802 $ 239,178 $ 157,185
Sales $ 216,088 $ 166,547 $ 653,187 $ 463,407
Add back:
Acquisition amortization of backlog 450 - 450 -
Non-GAAP sales $ 216,538 $ 166,547 $ 653,637 $ 463,407
Gross margin - GAAP 34.7 % 33.2 % 35.3 % 33.7 %
Adjusted gross margin - Non-GAAP 36.7 % 33.5 % 36.6 % 33.9 %

Adjusted gross profit is defined as gross profit as reported, adjusted for certain 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 be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted gross profit, is important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's gross profit to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit to that of other companies.


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 11 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations
($ in thousands, except per share data)
Three Months Ended December 31, Nine Months Ended December 31,
2021 2020 2021 2020
GAAP income from operations $ 15,316 $ 10,447 $ 49,722 $ 28,056
Add back (deduct):
Acquisition deal and integration costs 370 - 10,244 -
Acquisition inventory step-up expense 515 - 3,496 -
Product liability settlement 2,850 - 2,850 -
Business realignment costs 964 237 2,787 1,058
Acquisition amortization of backlog 450 - 450 -
Factory closures - 469 - 3,472
Insurance recovery legal costs - - - 229
Gain on sale of building - - - (2,638)
Non-GAAP adjusted income from operations $ 20,465 $ 11,153 $ 69,549 $ 30,177
Sales $ 216,088 $ 166,547 $ 653,187 $ 463,407
Add back:
Acquisition amortization of backlog 450 - 450 -
Non-GAAP sales $ 216,538 $ 166,547 $ 653,637 $ 463,407
Operating margin - GAAP 7.1 % 6.3 % 7.6 % 6.1 %
Adjusted operating margin - Non-GAAP 9.5 % 6.7 % 10.6 % 6.5 %

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 accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted income from operations, is important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's income from operations to the historical periods' income from operations, as well as facilitates a more meaningful comparison of the Company's income from operations to that of other companies.


Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 12 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Diluted Earnings per Share
($ in thousands, except per share data)
Three Months Ended December 31, Nine Months Ended December 31,
2021 2020 2021 2020
GAAP net income (loss) $ 9,894 $ 6,594 $ 17,834 $ (479)
Add back (deduct):
Amortization of intangibles 6,254 3,142 18,648 9,449
Cost of debt refinancing - - 14,803 -
Acquisition deal and integration costs 370 - 10,244 -
Acquisition inventory step-up expense 515 - 3,496 -
Product liability settlement 2,850 - 2,850 -
Business realignment costs 964 237 2,787 1,058
Acquisition amortization of backlog 450 - 450 -
Non-cash pension settlement expense - - - 19,046
Factory closures - 469 - 3,472
Insurance recovery legal costs - - - 229
Gain on sale of building - - - (2,638)
Normalize tax rate to 22% (1)
(3,854) (1,817) (13,592) (6,936)
Non-GAAP adjusted net income $ 17,443 $ 8,625 $ 57,520 $ 23,201
Average diluted shares outstanding 28,840 24,201 28,255 24,088
Diluted income (loss) per share - GAAP $ 0.34 $ 0.27 $ 0.63 $ (0.02)
Diluted income per share - Non-GAAP $ 0.60 $ 0.36 $ 2.04 $ 0.96
(1) Applies a normalized tax rate of 22% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangible assets, and also adjusted for a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted net income and diluted EPS, is important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's net income and diluted EPS to the historical periods' net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company's net income and diluted EPS to that of other companies. The Company believes that representing adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically.

Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022
Page 13 of 13
January 27, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
Three Months Ended December 31, Nine Months Ended December 31,
2021 2020 2021 2020
GAAP net income (loss) $ 9,894 $ 6,594 $ 17,834 $ (479)
Add back (deduct):
Income tax expense (benefit) 1,066 616 2,632 (392)
Interest and debt expense 4,375 2,986 14,774 9,192
Investment (income) loss (76) (495) (624) (1,429)
Foreign currency exchange (gain) loss 512 602 1,047 1,083
Other (income) expense, net (455) 144 (744) 20,081
Depreciation and amortization expense 10,276 6,993 31,245 21,203
Cost of debt refinancing - - 14,803 -
Acquisition deal and integration costs 370 - 10,244 -
Acquisition inventory step-up expense 515 - 3,496 -
Product liability settlement 2,850 - 2,850 -
Business realignment costs 964 237 2,787 1,058
Acquisition amortization of backlog 450 - 450 -
Factory closures - 469 - 3,472
Insurance recovery legal costs - - - 229
Gain on sale of building - - - (2,638)
Non-GAAP adjusted EBITDA $ 30,741 $ 18,146 $ 100,794 $ 51,380
Sales $ 216,088 $ 166,547 $ 653,187 $ 463,407
Add back:
Acquisition amortization of backlog 450 - 450 -
Non-GAAP sales $ 216,538 $ 166,547 $ 653,637 $ 463,407
Net income (loss) margin - GAAP 4.6 % 4.0 % 2.7 % (0.1) %
Adjusted EBITDA margin - Non-GAAP 14.2 % 10.9 % 15.4 % 11.1 %

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted EBITDA, is important for investors and other readers of the Company's financial statements.

Disclaimer

Columbus McKinnon Corporation published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 21:34:58 UTC.


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05/26DA Davidson Adjusts Columbus McKinnon's Price Target to $50 from $62, Keeps Buy Rating
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05/26Wells Fargo Adjusts Columbus McKinnon's Price Target to $40 from $55, Keeps Overweight ..
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05/26Barrington Reduces Columbus McKinnon's Price Target to $57 From $66, Outperform Rating ..
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05/26COLUMBUS MCKINNON : Q4 Fiscal Year 2022 Financial Results Conference Call
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05/26JPMorgan Downgrades Columbus McKinnon to Neutral From Overweight, Adjusts Price Target ..
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05/26Craig-Hallum Downgrades Columbus McKinnon to Hold From Buy, Adjusts Price Target to $35..
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05/26COLUMBUS MCKINNON : Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fisc..
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Analyst Recommendations on COLUMBUS MCKINNON CORPORATION
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Financials (USD)
Sales 2023 968 M - -
Net income 2023 63,4 M - -
Net Debt 2023 318 M - -
P/E ratio 2023 15,4x
Yield 2023 -
Capitalization 961 M 961 M -
EV / Sales 2023 1,32x
EV / Sales 2024 1,15x
Nbr of Employees 3 224
Free-Float 97,3%
Chart COLUMBUS MCKINNON CORPORATION
Duration : Period :
Columbus McKinnon Corporation Technical Analysis Chart | CMCO | US1993331057 | MarketScreener
Technical analysis trends COLUMBUS MCKINNON CORPORATION
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 7
Last Close Price 33,67 $
Average target price 45,75 $
Spread / Average Target 35,9%
EPS Revisions
Managers and Directors
David J. Wilson President, Chief Executive Officer & Director
Gregory P. Rustowicz Chief Financial Officer, Treasurer & SVP-Finance
Richard H. Fleming Chairman
Nicholas T. Pinchuk Independent Director
Liam G. McCarthy Independent Director
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