Vice President - Finance & Chief Financial Officer
Safe Harbor Statement
These slides, and the accompanying oral discussion, contain "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 Covid-19 and the Company's efforts to reduce costs, maintain liquidity and generate cash in the current pandemic, the effectiveness of the Company's 80/20 Process to simplify operations, the ability of the Company's Operational
Excellence initiatives to drive profitability, the Company's ability to grow market share, the ability to achieve revenue
expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting 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.
Non-GAAP Financial Measures
This presentation will discuss some non-GAAP ("adjusted") financial measures which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results compared in accordance with GAAP. The non-GAAP ("adjusted") measures are noted and reconciliations of comparable GAAP with non-GAAP measures can be found in tables included in the Supplemental Information portion of this presentation.
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Building Momentum
Solid recovery from trailing first quarter; effect of Blueprint for Growth strategy demonstrated in margin improvement
Sales were $157.8 million, at upper end of expected range
Strong gross margin of 35.5% positively impacted by the $2.2 million gain on sale of a facility in China; adjusted gross margin was 34.4%
Operating income of $15.8 million; adjusted operating income of $14.0 million and adjusted operating margin of 8.9%
Diluted net loss per share of $(0.17) due to a non-cash pension settlement charge of $16.3 million; adjusted earnings per share of $0.34
Strengthening business system: Significant cash from operations and free cash flow
Generated $37.4 million in cash from operations; $46.9 million YTD
Free cash flow of $35.7 million in the quarter and $44.2 million YTD
Strong capital structure with net debt leverage ratio(1) below 1.0x
Liquidity of $245 million at end of quarter
Improved profitability and strong cash generation reflect a strengthening
Columbus McKinnon Business System (CMBS)
(1)Net debt leverage ratio is defined as Net Debt / TTM Adjusted EBITDA
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Sequential Improvement
Q2 FY2021 vs Q1 FY2021: Results demonstrate improvement from Q1 FY2021 trough
($ in millions)
Net Sales
Adjusted Operating Income & Margin
$157.8
$14.0
$139.1
$15.8
$5.0
3.6%
8.9%
$1.8
Q1 FY21
Q2 FY21
Q1 FY21
Q2 FY21
Positive sequential improvement
Income from Operations
Non-GAAP Adjustments
• Net sales increased $18.7 million, or 13.5%
Adjusted EBITDA & Margin
• Strong rebound in short cycle business
$21.1
Adjusted operating income increased $9 million to $14 million
Adjusted operating leverage of 48%
Sequentially 80/20 tools contributed $1.3 million
$12.1
8.7%13.4%
Adjusted EBITDA margin expanded 470 bps to 13.4%
Q1 FY21
Q2 FY21
Actions taken deliver improved performance as volume returns
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Columbus McKinnon Corporation published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 10:59:02 UTC
Columbus McKinnon Corporation designs, manufactures and distributes a broad range of material-handling products for various applications. The Company's products include a wide variety of electric, air-powered, lever, and hand hoists, hoist trolleys, explosion-protected hoists, winches, and aluminum work stations; alloy and carbon steel chains; forged attachments, such as hooks, shackles, textile slings, clamps, and load binders; mechanical and electromechanical actuators and rotary unions; below-the-hook special purpose lifters; and power and motion control systems, such as alternate current (AC) and direct current (DC) drive systems, radio remote controls, push button pendant stations, brakes, and collision avoidance and power delivery subsystems. The Companyâs brands include Budgit, Chester, CM, Coffing, Little Mule, Pfaff, Shaw-Box, STAHL, Magnetek, Herc-Alloy, and Yale. The Company is focused on commercial and industrial applications.