Columbus McKinnon Reports Q3 FY25 Results

, /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2025 third quarter, which ended December 31, 2024. Third Quarter 2025 Highlights (compared with prior-year period, except where otherwise noted) Net sales of $234.1 million with 7.6% operating margin or 10.9% on an adjusted basis1 Orders decreased 4% driven by a 6% decrease in short-cycle orders EMEA orders increased 1% offset by a 5% decline in the Americas Strength in Precision conveyance and linear motion orders, up 16% and 8% respectively Backlog of $296.5 million remains healthy and continues to normalize with improved service levels GAAP EPS of $0.14 and Adjusted EPS1 of $0.56 include $0.08 per share impact of unfavorable FX movements in the quarter and $0.11 per share versus the prior year Repaid $15 million of debt in Q3 FY25; Anticipate FY25 debt repayment of $60 million "The second half of our third quarter saw a slowing of industry demand. This was driven by delayed customer decision-making related to U.S. policy uncertainty, including tariffs as well as continued weakening in the European economies," said David J. Wilson, President and Chief Executive Officer. "Our results reflect lower than expected short-cycle demand which we expect will also impact the fourth quarter. The strengthening of the U.S. dollar negatively impacted earnings per share by $0.11 versus the prior year as well. As the quarter evolved, we executed actions to reduce costs and align capacity with demand, which will remain a focus the fourth quarter." "While our optimism about the business remains unchanged, in the near-term our revised guidance contemplates a cautious approach to the evolving policy environment and subdued demand in Europe," continued Wilson. "We remain focused on what we can control, with strong operational execution while making progress on our long-term strategic plan, including executing of our footprint simplification initiatives. Last week we initiated a consolidation of two additional factories into existing manufacturing capacity as part of our ongoing 80/20 footprint simplification plan. We are delivering impactful improvements across the business and remain in early innings in terms of the value these initiatives will deliver." Third Quarter Fiscal 2025 Sales ($ in millions) Q3 FY25 Q3 FY24 Change % Change Net sales $ 234.1 $ 254.1 $ (20.0) (7.9) % U.S. sales $ 129.5 $ 138.5 $ (9.0) (6.5) % % of total 55 % 55 % Non-U.S. sales $ 104.6 $ 115.6 $ (11.0) (9.5) % % of total 45 % 45 % For the quarter, net sales decreased $20.0 million, or 7.9%. In the U.S., sales were down $9.0 million, or 6.5%, driven by lower volume. Sales outside the U.S. decreased $11.0 million, or 9.5%. Price improvement of $2.3 million partially offset $12.3 million of lower volume and unfavorable foreign currency translation of $1.0 million. Third Quarter Fiscal 2025 Operating Results ($ in millions) Q3 FY25 Q3 FY24 Change % Change Gross profit $ 82.1 $ 93.9 $ (11.8) (12.6) % Gross margin 35.1 % 36.9 % (180) bps Adjusted Gross Profit1 $ 86.2 $ 94.5 $ (8.3) (8.7) % Adjusted Gross Margin1 36.8 % 37.2 % (40) bps Income from operations $ 17.7 $ 26.9 $ (9.2) (34.3) % Operating margin 7.6 % 10.6 % (300) bps Adjusted Operating Income1 $ 25.6 $ 29.7 $ (4.2) (14.0) % Adjusted Operating Margin1 10.9 % 11.7 % (80) bps Net income (loss) $ 4.0 $ 9.7 $ (5.8) (59.3) % Net income (loss) margin 1.7 % 3.8 % (210) bps GAAP EPS $ 0.14 $ 0.34 $ (0.20) (58.8) % Adjusted EPS1 $ 0.56 $ 0.74 $ (0.18) (24.3) % Adjusted EBITDA1 $ 37.8 $ 41.3 $ (3.5) (8.6) % Adjusted EBITDA Margin1 16.1 % 16.3 % (20) bps Adjusted EPS1 excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability. Fiscal 2025 Guidance The Company is issuing the following guidance for the fiscal year 2025, ending March 31, 2025: Metric FY25 Net sales growth Mid-single digit decrease year-over-year Adjusted EPS2 Low-teens decrease year-over-year Capital Expenditures $18 million to $22 million Net Leverage Ratio2 ~3.0x Fiscal 2025 guidance assumes approximately $32 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding. Teleconference/Webcast Columbus McKinnon will host a conference call today at 5:00 PM Eastern Time to discuss the Company's financial results and strategy. The conference call, earnings release and earnings presentation will be accessible through live webcast on the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website through Monday, February 24, 2025. 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.cmco.com. ______________________ 1 Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures. 2 The Company has not reconciled the Adjusted EPS and Net Leverage Ratio guidance to the most comparable GAAP financial measure outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measures. Forward-looking guidance regarding Adjusted EPS and Net Leverage Ratio is made in a manner consistent with the relevant definitions and assumptions noted herein and in alignment with the Company's financial covenants per the Company's Amended and Restated Credit Agreement. Safe Harbor Statement This news release 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 use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including fiscal year 2025 net sales growth and Adjusted EPS guidance, and our fiscal year 2025 net leverage ratio and capital expenditure guidance; (ii) our operational and financial targets and capital allocation policy; (iii) general economic trends and trends in our industry and markets; (iv) the amount of debt to be paid down by the Company during fiscal year 2025; and (v) the competitive environment in which we operate; are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority. Contacts: Gregory P. Rustowicz Kristine Moser EVP Finance and CFO VP IR and Treasurer Columbus McKinnon Corporation Columbus McKinnon Corporation 716-689-5442 704-322-2488 [email protected] [email protected] Financial tables follow. COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data) Three Months Ended December 31,2024 December 31,2023 Change Net sales $ 234,138 $ 254,143 (7.9) % Cost of products sold 152,041 160,246 (5.1) % Gross profit 82,097 93,897 (12.6) % Gross profit margin 35.1 % 36.9 % Selling expenses 27,348 26,552 3.0 % % of net sales 11.7 % 10.4 % General and administrative expenses 24,233 26,255 (7.7) % % of net sales 10.3 % 10.3 % Research and development expenses 5,325 6,692 (20.4) % % of net sales 2.3 % 2.6 % Amortization of intangibles 7,501 7,486 0.2 % Income from operations 17,690 26,912 (34.3) % Operating margin 7.6 % 10.6 % Interest and debt expense 7,698 9,952 (22.6) % Investment (income) loss (54) (758) (92.9) % Foreign currency exchange (gain) loss 3,128 (1,155) NM Other (income) expense, net 1,029 5,234 (80.3) % Income (loss) before income tax expense (benefit) 5,889 13,639 (56.8) % Income tax expense (benefit) 1,929 3,911 (50.7) % Net income (loss) $ 3,960 $ 9,728 (59.3) % Average basic shares outstanding 28,631 28,744 (0.4) % Basic income (loss) per share $ 0.14 $ 0.34 (58.8) % Average diluted shares outstanding 28,888 28,991 (0.4) % Diluted income (loss) per share $ 0.14 $ 0.34 (58.8) % Dividends declared per common share $ 0.07 $ 0.07 COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data) Nine Months Ended December 31,2024 December 31,2023 Change Net sales $ 716,138 $ 748,036 (4.3) % Cost of products sold 470,268 467,513 0.6 % Gross profit 245,870 280,523 (12.4) % Gross profit margin 34.3 % 37.5 % Selling expenses 82,044 78,400 4.6 % % of net sales 11.5 % 10.5 % General and administrative expenses 74,043 79,407 (6.8) % % of net sales 10.3 % 10.6 % Research and development expenses 17,593 19,134 (8.1) % % of net sales 2.5 % 2.6 % Amortization of intangibles 22,548 21,871 3.1 % Income from operations 49,642 81,711 (39.2) % Operating margin 6.9 % 10.9 % Interest and debt expense 24,285 28,788 (15.6) % Investment (income) loss (873) (1,212) (28.0) % Foreign currency exchange (gain) loss 2,730 1,074 154.2 % Other (income) expense, net 25,512 5,840 336.8 % Income (loss) before income tax expense (benefit) (2,012) 47,221 NM Income tax expense (benefit) 442 12,405 (96.4) % Net income (loss) $ (2,454) $ 34,816 NM Average basic shares outstanding 28,778 28,711 0.2 % Basic income (loss) per share $ (0.09) $ 1.21 NM Average diluted shares outstanding 28,778 28,979 (0.7) % Diluted income (loss) per share $ (0.09) $ 1.20 NM Dividends declared per common share $ 0.14 $ 0.14 COLUMBUS McKINNON CORPORATION Condensed Consolidated Balance Sheets (In thousands) December 31,2024 March 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 41,224 $ 114,126 Trade accounts receivable 157,038 171,186 Inventories 200,687 186,091 Prepaid expenses and other 41,486 42,752 Total current assets 440,435 514,155 Property, plant, and equipment, net 105,637 106,395 Goodwill 700,550 710,334 Other intangibles, net 358,150 385,634 Marketable securities 10,565 11,447 Deferred taxes on income 1,515 1,797 Other assets 94,048 96,183 Total assets $ 1,710,900 $ 1,825,945 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 73,019 $ 83,118 Accrued liabilities 93,595 127,973 Current portion of long-term debt and finance lease obligations 50,722 50,670 Total current liabilities 217,336 261,761 Term loan, AR securitization facility and finance lease obligations 435,075 479,566 Other non current liabilities 186,909 202,555 Total liabilities $ 839,320 $ 943,882 Shareholders' equity: Common stock 286 288 Treasury stock (10,945) (1,001) Additional paid in capital 532,271 527,125 Retained earnings 388,851 395,328 Accumulated other comprehensive loss (38,883) (39,677) Total shareholders' equity $ 871,580 $ 882,063 Total liabilities and shareholders' equity $ 1,710,900 $ 1,825,945 COLUMBUS McKINNON CORPORATION Condensed Consolidated Statements of Cash Flows - UNAUDITED (In thousands) Nine Months Ended December 31,2024 December 31,2023 Operating activities: Net income (loss) $ (2,454) $ 34,816 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 36,230 34,052 Deferred income taxes and related valuation allowance (15,089) (6,495) Net loss (gain) on sale of real estate, investments and other (617) (967) Non-cash pension settlement 23,634 4,599 Stock-based compensation 6,677 8,473 Amortization of deferred financing costs 1,865 1,728 Impairment of operating lease 3,268 — Loss (gain) on hedging instruments (321) 1,193 Loss (gain) on disposal of Fixed Assets 394 — Non-cash lease expense 7,657 7,080 Changes in operating assets and liabilities, net of effects of business acquisitions: Trade accounts receivable 10,255 (14,911) Inventories (18,894) (17,764) Prepaid expenses and other (14,565) (2,897) Other assets 486 (859) Trade accounts payable (8,061) (1,387) Accrued liabilities (15,240) (7,236) Non-current liabilities (5,225) (10,834) Net cash provided by (used for) operating activities 10,000 28,591 Investing activities: Proceeds from sales of marketable securities 4,301 1,101 Purchases of marketable securities (3,257) (2,731) Capital expenditures (15,266) (16,334) Purchase of businesses, net of cash acquired — (108,145) Dividend received from equity method investment — 144 Net cash provided by (used for) investing activities (14,222) (125,965) Financing activities: Proceeds from the issuance of common stock 364 556 Purchases of treasury stock (9,945) — Repayment of debt (45,495) (40,447) Proceeds from issuance of long-term debt — 120,000 Fees paid for borrowings on long-term debt — (2,859) Payment to former owners of montratec (6,711) — Fees paid for debt repricing (169) — Cash inflows from hedging activities 17,753 18,088 Cash outflows from hedging activities (17,360) (19,303) Payment of dividends (6,039) (6,027) Other (1,897) (2,237) Net cash provided by (used for) financing activities (69,499) 67,771 Effect of exchange rate changes on cash 819 (628) Net change in cash and cash equivalents (72,902) (30,231) Cash, cash equivalents, and restricted cash at beginning of year $ 114,376 $ 133,426 Cash, cash equivalents, and restricted cash at end of period $ 41,474 $ 103,195 COLUMBUS McKINNON CORPORATION Q3 FY 2025 Net Sales Bridge Quarter Year To Date ($ in millions) $ Change % Change $ Change % Change Fiscal 2024 Net Sales $ 254.1 $ 748.0 Acquisition — — % 2.7 0.3 % Pricing 2.3 0.9 % 9.6 1.3 % Volume (21.3) (8.4) % (42.9) (5.7) % Foreign currency translation (1.0) (0.4) % (1.3) (0.2) % Total change $ (20.0) (7.9) % $ (31.9) (4.3) % Fiscal 2025 Net Sales $ 234.1 $ 716.1 COLUMBUS McKINNON CORPORATION Q3 FY 2025 Gross Profit Bridge ($ in millions) Quarter Year To Date Fiscal 2024 Gross Profit $ 93.9 $ 280.5 Acquisition — 0.8 Price, net of manufacturing costs changes (incl. inflation) 3.9 7.5 Product liability1 (2.0) (2.0) Monterrey, MX new factory start-up costs (2.6) (6.4) Factory and warehouse consolidation costs (0.5) (11.3) Sales volume and mix (9.9) (22.0) Other (0.4) (0.8) Foreign currency translation (0.3) (0.4) Total change (11.8) (34.6) Fiscal 2025 Gross Profit $ 82.1 $ 245.9 U.S. Shipping Days by Quarter Q1 Q2 Q3 Q4 Total FY25 64 63 62 62 251 FY24 63 62 61 62 248 ______________________ 1 Product liability represents a year-over-year difference between the current year adjustment increasing the Company's product liability reserve and the prior year's adjustment decreasing the Company's product liability reserve. For more details please see the Company's 10-Q filed with the Securities and Exchange Commission COLUMBUS McKINNON CORPORATION Additional Data1 (Unaudited) Period Ended December 31, 2024 September 30, 2024 March 31, 2024 December 31, 2023 ($ in millions) Backlog $ 296.5 $ 317.6 $ 280.8 $ 298.4 Long-term backlog Expected to ship beyond 3 months $ 166.1 $ 172.5 $ 144.6 $ 151.3 Long-term backlog as % of total backlog 56.0 % 54.3 % 51.5 % 50.7 % Debt to total capitalization percentage 35.8 % 35.8 % 37.5 % 38.5 % Debt, net of cash, to net total capitalization 33.8 % 33.2 % 32.0 % 33.7 % Working capital as a % of sales 2 23.7 % 23.3 % 19.1 % 20.6 % Three Months Ended December 31, 2024 September 30, 2024 March 31, 2024 December 31, 2023 ($ in millions) Trade accounts receivable Days sales outstanding 61.0 days 64.1 days 58.7 days 62.1 days Inventory turns per year (based on cost of products sold) 3.0 turns 3.3 turns 3.7 turns 3.1 turns Days' inventory 121.7 days 110.6 days 98.6 days 117.7 days Trade accounts payable Days payables outstanding 50.5 days 46.3 days 50.9 days 50.1 days Net cash provided by (used for) operating activities $ 11.4 $ 9.4 $ 38.6 $ 29.1 Capital expenditures $ 5.2 $ 5.4 $ 8.5 $ 6.0 Free Cash Flow 3 $ 6.2 $ 4.0 $ 30.1 $ 23.1 ______________________ 1 Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company's financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding. 2 March 31, 2024 and December 31, 2023 exclude the impact of the acquisition of montratec. 3 Free Cash Flow is a non-GAAP financial measure. Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. See the table above for the calculation of Free Cash Flow. NON-GAAP FINANCIAL MEASURES The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies. COLUMBUS McKINNON CORPORATION Reconciliation of Gross Profit to Adjusted Gross Profit ($ in thousands) Three Months Ended Nine Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Gross profit $ 82,097 $ 93,897 $ 245,870 $ 280,523 Add back (deduct): Business realignment costs 526 150 994 346 Hurricane Helene cost impact — — 171 — Factory and warehouse consolidation costs 556 — 11,319 — Monterrey, MX new factory start-up costs 3,038 435 6,848 435 Adjusted Gross Profit $ 86,217 $ 94,482 $ 265,202 $ 281,304 Net sales $ 234,138 $ 254,143 $ 716,138 $ 748,036 Gross margin 35.1 % 36.9 % 34.3 % 37.5 % Adjusted Gross Margin 36.8 % 37.2 % 37.0 % 37.6 % Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's gross profit and gross margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit and gross margin to that of other companies. COLUMBUS McKINNON CORPORATION Reconciliation of Income from Operations to Adjusted Operating Income ($ in thousands) Three Months Ended Nine Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Income from operations $ 17,690 $ 26,912 $ 49,642 $ 81,711 Add back (deduct): Acquisition deal and integration costs — 113 — 3,208 Business realignment costs 987 1,452 2,118 1,867 Factory and warehouse consolidation costs 653 — 12,557 199 Headquarter relocation costs 175 510 322 1,884 Hurricane Helene cost impact — — 171 — Mexico customs duty assessment 1,500 — 1,500 — Customer bad debt1 1,299 — 1,299 — Monterrey, MX new factory start-up costs 3,270 755 10,587 755 Adjusted Operating Income $ 25,574 $ 29,742 $ 78,196 $ 89,624 Net sales $ 234,138 $ 254,143 $ 716,138 $ 748,036 Operating margin 7.6 % 10.6 % 6.9 % 10.9 % Adjusted Operating Margin 10.9 % 11.7 % 10.9 % 12.0 % 1 Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's income from operations to the historical periods' income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company's income from operations and operating margin to that of other companies. COLUMBUS McKINNON CORPORATION Reconciliation of Net Income and Diluted Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share ($ in thousands, except per share data) Three Months Ended Nine Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income (loss) $ 3,960 $ 9,728 $ (2,454) $ 34,816 Add back (deduct): Amortization of intangibles 7,501 7,486 22,548 21,871 Acquisition deal and integration costs — 113 — 3,208 Business realignment costs 987 1,452 2,118 1,867 Factory and warehouse consolidation costs 653 — 12,557 199 Headquarter relocation costs 175 510 322 1,884 Hurricane Helene cost impact — — 171 — Mexico customs duty assessment 1,500 — 1,500 — Customer bad debt1 1,299 — 1,299 — Monterrey, MX new factory start-up costs 3,270 755 10,587 755 Non-cash pension settlement expense 433 4,599 23,634 4,599 Normalize tax rate 2 (3,498) (3,227) (17,739) (7,996) Adjusted Net Income $ 16,280 $ 21,416 $ 54,543 $ 61,203 GAAP average diluted shares outstanding 28,888 28,991 28,778 28,979 Add back: Effect of dilutive share-based awards — — 268 — Adjusted Diluted Shares Outstanding $ 28,888 $ 28,991 $ 29,046 $ 28,979 GAAP EPS $ 0.14 $ 0.34 $ (0.09) $ 1.20 Adjusted EPS $ 0.56 $ 0.74 $ 1.88 $ 2.11 1 Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 2 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax. Adjusted Net Income is defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Diluted Shares Outstanding is defined as average diluted shares outstanding adjusted for the effect of dilutive share-based awards. Adjusted EPS is defined as Adjusted Net income per Adjusted Diluted Shares Outstanding. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of current periods' net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods' net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company's net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically. COLUMBUS McKINNON CORPORATION Reconciliation of Net Income to Adjusted EBITDA ($ in thousands) Three Months Ended Nine Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income (loss) $ 3,960 $ 9,728 $ (2,454) $ 34,816 Add back (deduct): Income tax expense (benefit) 1,929 3,911 442 12,405 Interest and debt expense 7,698 9,952 24,285 28,788 Investment (income) loss (54) (758) (873) (1,212) Foreign currency exchange (gain) loss 3,128 (1,155) 2,730 1,074 Other (income) expense, net 1,029 5,234 25,512 5,840 Depreciation and amortization expense 12,202 11,570 36,230 34,052 Acquisition deal and integration costs — 113 — 3,208 Business realignment costs 987 1,452 2,118 1,867 Factory and warehouse consolidation costs 653 — 12,557 199 Headquarter relocation costs 175 510 322 1,884 Hurricane Helene cost impact — — 171 — Mexico customs duty assessment 1,500 — 1,500 — Customer bad debt1 1,299 — 1,299 — Monterrey, MX new factory start-up costs 3,270 755 10,587 755 Adjusted EBITDA $ 37,776 $ 41,312 $ 114,426 $ 123,676 Net sales $ 234,138 $ 254,143 $ 716,138 $ 748,036 Net income margin 1.7 % 3.8 % (0.3) % 4.7 % Adjusted EBITDA Margin 16.1 % 16.3 % 16.0 % 16.5 % 1 Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not a measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company's financial statements. COLUMBUS McKINNON CORPORATION Reconciliation of Net Leverage Ratio ($ in thousands) Twelve Months Ended December 31, 2024 December 31, 2023 Net income (loss) $ 9,355 $ 48,711 Add back (deduct): Annualize EBITDA for the montratec acquisition1 — 2,131 Annualize synergies for the montratec acquisition1 — 184 Income tax expense (benefit) 2,939 19,904 Interest and debt expense 33,454 36,456 Non-cash pension settlement 24,019 4,599 Amortization of deferred financing costs 2,486 2,158 Stock Compensation Expense 10,243 11,859 Depreciation and amortization expense 48,124 44,619 Cost of debt refinancing 1,190 — Acquisition deal and integration costs 3 3,381 Excluded acquisition deal and integration costs2 — (172) Acquisition inventory step-up expense — — Business realignment costs 2,118 2,715 Monterrey, MX new factory start up costs 14,321 755 Excluded Monterrey, MX new factory start-up costs3 (7,461) — Factory and warehouse consolidation costs 13,102 199 Headquarter relocation costs 497 2,565 Mexico customs duty assessment 1,500 — Customer bad debt4 1,299 — Hurricane Helene cost impact 171 — Other excluded costs3 (4,257) (848) Credit Agreement Trailing Twelve Month Adjusted EBITDA $ 153,103 $ 179,216 Current portion of long-term debt and finance lease obligations $ 50,722 $ 50,652 Term loan, AR securitization facility and finance lease obligations 435,075 499,388 Total debt $ 485,797 $ 550,040 Standby Letters of Credit 15,440 15,740 Cash and cash equivalents (41,224) (102,945) Net Debt $ 460,013 $ 462,835 Net Leverage Ratio 3.00x 2.58x 1 EBITDA is normalized to include a full year of the acquired entity and assumes all cost synergies are achieved in TTM Q3 FY24. 2 The Company's credit agreement definition of Adjusted EBITDA excludes certain acquisition deal and integration costs and business realignment costs that are incurred beyond one year after the close of an acquisition. 3 The Company's credit agreement definition of Adjusted EBITDA excludes any cash restructuring costs in excess of $10 million per fiscal year 4 Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 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 Adjusted EBITDA. Credit Agreement Trailing Twelve Month Adjusted EBITDA is defined in the Company's credit agreement as net income adjusted for interest expense, income taxes, depreciation, amortization, and other adjustments. Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are important for investors and other readers of the Company's financial statements. SOURCE Columbus McKinnon Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Columbus McKinnon Reports Q3 FY25 Results

FAQ

Why Bearish?

How important is it?

Why Short Term?

Related Companies

Related News