EXHIBIT 99.1
News Release
Getzville, NY 14068
Immediate Release
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
AMHERST, NY, January 26, 2017 - Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer, manufacturer and marketer of material handling products, technologies and services, today announced financial results for its fiscal year 2017 third quarter, which ended December 31, 2016.
Third Quarter Summary (compared with prior-year period, unless otherwise noted)
| |
| • | Revenue was $152.5 million; excluding unfavorable FX, revenue was $153.9 million |
| |
| • | Gross profit of $44.8 million was negatively impacted by $1.3 million of atypical items; excluding those items, gross margin was 30.2% |
| |
| • | STAHL CraneSystems acquisition scheduled to close on January 31, 2017; based on improved debt financing terms, acquisition is expected to be accretive to EPS by $0.34 in Fiscal 18 (before purchase accounting and charges) |
| |
| • | Common equity offering to close with acquisition: net proceeds of $47.2 million reduce borrowing requirements for acquisition resulting in lower cost of debt at LIBOR plus 3.0%; also secured a $100 million revolver facility |
| |
| • | Income from operations of $5.3 million included $3.1 million of expenses related to STAHL acquisition; adjusted income from operations was $8.5 million, or 5.5% of sales; atypical items had a 1.2% negative impact to margin |
| |
| • | Repaid $5.7 million of debt in the quarter; net debt to net total capitalization down 1.0 percentage point from trailing quarter to 38.4% |
Timothy T. Tevens, President and Chief Executive Officer, commented, “The quarter was weaker than we had anticipated, especially in the U.S. and EMEA, but our optimism for the longer term is not deterred. Our belief is that new product development combined with the Magnetek and STAHL acquisitions expand our competitive advantages and provides a stronger global market position as industrial economies strengthen.”
He continued, “We will be launching our ‘drive in every hoist’ strategic initiative with our Lodestar and Global King product lines in early Fiscal 2018. In addition, STAHL will measurably augment our reach into Europe with powered wire rope and electric chain hoists, as well as broaden our explosion-proof line of products globally. We have positioned the Company for future growth and profitably and are excited to leverage the breadth of our brands and product offerings to build a bigger business.”
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 2 of 12
Third Quarter Review
Sales
|
| | | | | | | | | | | | | | |
| ($ in millions) | Q3 FY 17 | | Q3 FY 16 | | Change | | % Change |
| Net sales | $ | 152.5 |
| | $ | 159.7 |
| | $ | (7.2 | ) | | (4.5 | )% |
| FX impact | $ | 1.4 |
| | | | | | |
| Net sales excluding FX | $ | 153.9 |
| | | | $ | (5.8 | ) | | (3.7 | )% |
| U.S. sales | $ | 98.1 |
| | $ | 102.6 |
| | $ | (4.5 | ) | | (4.4 | )% |
| % of total | 64 | % | | 64 | % | | | | |
| Non-U.S. sales | $ | 54.4 |
| | $ | 57.1 |
| | $ | (2.7 | ) | | (4.7 | )% |
| % of total | 36 | % | | 36 | % | | | | |
| FX impact | $ | 1.4 |
| | | | | | |
| Non-U.S. sales excluding FX | $ | 55.8 |
| | | | $ | (1.3 | ) | | (2.3 | )% |
Sales to the U.S. were impacted by lower volume when compared with the prior-year period. Non-U.S. sales were impacted by lower volume, partially offset by price increases.
Operating Results
|
| | | | | | | | | | | | | | |
| ($ in millions) | Q3 FY 17 | | Q3 FY 16 | | Change | | % Change |
| Gross profit | $ | 44.8 |
| | $ | 48.3 |
| | $ | (3.5 | ) | | (7.3 | )% |
| Gross margin | 29.4 | % | | 30.3 | % | | (90) bps | | |
| Income from operations | $ | 5.3 |
| | $ | 11.0 |
| | $ | (5.6 | ) | | (51.5 | )% |
| Operating margin | 3.5 | % | | 6.9 | % | | (340) bps | | |
| Net income | $ | 0.5 |
| | $ | 7.2 |
| | $ | (6.7 | ) | | (93.0 | )% |
| Diluted EPS | $ | 0.02 |
| | $ | 0.36 |
| | $ | (0.34 | ) | | (94.4 | )% |
Gross profit was primarily down on lower sales volume, which had a $2.0 million negative impact. Atypical items in the quarter included higher product liability expense of $1.0 million, that includes a $0.5 million legal settlement, and severance expenses related to cost-saving initiatives. For more information on changes in gross profit, please see the attached tables.
Income from operations was $5.3 million. Adjusted income from operations of $8.5 million was down $4.0 million on weaker gross profit. Please see the attached tables for a reconciliation of GAAP income from operations to adjusted income from operations.
The effective tax rate of 67% was impacted by $3.1 million of non-deductible STAHL acquisition related costs. This also impacts the effective tax rate for the full year of fiscal 2017. It is now expected to be between 31% and 36%.
Net income was $0.5 million. Adjusted net income was $4.5 million, which excludes the STAHL acquisition related costs, a $1.8 million loss on the revaluation of the euro call option to hedge the STAHL purchase price, and a tax rate normalization adjustment. Adjusted net income reflects the impact of lower sales volume, lower gross profit margin due to atypical items as well as lower productivity and other cost changes. Please see the attached tables for a reconciliation of GAAP net income and earnings per share to adjusted net income and earnings per share.
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 3 of 12
Equity Financing Improves Acquisition Accretion; Strong Cash Generation Reduces Debt
During the quarter, the Company entered into a definitive agreement to sell 2,273,000 shares of its common stock in a private placement, which is expected to result in gross proceeds of $50.0 million and net proceeds of $47.2 million (after deducting transaction fees and expenses). The offering and related debt financing are expected to close in conjunction with the closing of the STAHL acquisition, which is planned for January 31, 2017.
Gregory P. Rustowicz, Vice President - Finance and Chief Financial Officer, noted, “The sale of common equity demonstrably improved the overall financing of the STAHL acquisition by reducing required borrowings and measurably lowering the interest rate on the debt. The debt financing is now expected to be an all first lien, $445 million term loan at a rate of LIBOR plus 3.0%. In addition, we have finalized a $100 million revolver which will provide additional liquidity for the Company. As a result, the STAHL acquisition is now expected to be $0.34 accretive to earnings in fiscal 2018 and $0.51 accretive to earnings in fiscal 2019 (before purchase accounting and charges). Our plan is to pay down $45 million to $50 million of debt in Fiscal 2018 and ramp the rate of debt reduction to $50 million to $55 million in Fiscal 2019 and beyond.”
Cash generated from operating activities in the third quarter was $22.9 million. Gross debt was $234.1 million at December 31, 2016 after $5.7 million of repayments during the quarter. The Company has repaid a total of $33.3 million of debt during the nine-month period ended December 31, 2016. Net debt to net total capitalization, which was 38.4% as of December 31, 2016, is down 4.6 percentage points since the beginning of the fiscal year.
Capital expenditures for the nine months ended December 31, 2016 were $11.3 million and are expected to be $16 million for fiscal 2017, unchanged from previous guidance.
Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which Timothy T. Tevens, President and Chief Executive Officer, and Gregory P. Rustowicz, Vice President - Finance and Chief Financial Officer, 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 www.cmworks.com/investors. A question and answer session will follow the formal discussion.
Columbus McKinnon’s conference call can be accessed by calling 201-493-6780 and asking for the “Columbus McKinnon conference call.” The webcast can be monitored on Columbus McKinnon’s website at www.cmworks.com/investors. An audio recording of the call will be available two hours after its completion through Thursday, February 2, 2017 by dialing 412-317-6671 and entering the passcode 13652416. 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 material handling products, technologies, systems and services, which efficiently and ergonomically move, lift, position and secure materials and people. Key products include hoists, cranes, actuators, rigging tools, light rail work stations 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 on its website at http://www.cmworks.com.
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 4 of 12
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 revenue 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 general 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 effect of operating leverage, the pace of bookings relative to shipments, the ability to expand into new markets and geographic regions, the success in acquiring new business, the speed at which shipments improve, the effectiveness of new products 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: |
| 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 Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 5 of 12
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
|
| | | | | | | | | | | |
|
| Three Months Ended |
|
|
| |
| December 31, 2016 |
| December 31, 2015 |
| Change |
| Net sales |
| $ | 152,497 |
|
| $ | 159,738 |
|
| (4.5 | )% |
| Cost of products sold |
| 107,676 |
|
| 111,397 |
|
| (3.3 | )% |
| Gross profit |
| 44,821 |
|
| 48,341 |
|
| (7.3 | )% |
| Gross profit margin |
| 29.4 | % |
| 30.3 | % |
| |
|
| Selling expenses |
| 17,988 |
|
| 19,295 |
|
| (6.8 | )% |
| % of net sales | | 11.8 | % | | 12.1 | % | | |
| General and administrative expenses |
| 19,751 |
|
| 16,399 |
|
| 20.4 | % |
| % of net sales | | 13.0 | % | | 10.3 | % | | |
| Amortization of intangibles |
| 1,765 |
|
| 1,689 |
|
| 4.5 | % |
| Income from operations |
| 5,317 |
|
| 10,958 |
|
| (51.5 | )% |
| Operating margin |
| 3.5 | % |
| 6.9 | % |
| |
|
| Interest and debt expense |
| 2,299 |
|
| 2,425 |
|
| (5.2 | )% |
| Investment (income) loss |
| (61 | ) |
| (164 | ) |
| (62.8 | )% |
| Foreign currency exchange (gain) loss |
| 1,673 |
|
| 476 |
|
| 251.5 | % |
| Other (income) expense, net |
| (110 | ) |
| (189 | ) |
| (41.8 | )% |
| Income before income tax expense |
| 1,516 |
|
| 8,410 |
|
| (82.0 | )% |
| Income tax expense |
| 1,011 |
|
| 1,183 |
|
| (14.5 | )% |
| Net income |
| $ | 505 |
|
| $ | 7,227 |
|
| (93.0 | )% |
|
|
|
|
|
|
|
|
|
|
| Average basic shares outstanding |
| 20,239 |
|
| 20,104 |
|
| 0.7 | % |
| Basic income per share |
| $ | 0.02 |
|
| $ | 0.36 |
|
| (94.4 | )% |
|
|
|
|
|
|
|
|
|
|
| Average diluted shares outstanding |
| 20,490 |
|
| 20,295 |
|
| 1.0 | % |
| Diluted income per share |
| $ | 0.02 |
|
| $ | 0.36 |
|
| (94.4 | )% |
| | | | | | | |
| Dividends declared per common share | | $ | 0.04 |
| | $ | 0.04 |
| | |
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 6 of 12
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
|
| | | | | | | | | | | |
| | | Nine Months Ended | | |
| | | December 31, 2016 | | December 31, 2015 | | Change |
| Net sales | | $ | 453,435 |
| | $ | 442,015 |
| | 2.6 | % |
| Cost of products sold | | 310,838 |
| | 303,145 |
| | 2.5 | % |
| Gross profit | | 142,597 |
| | 138,870 |
| | 2.7 | % |
| Gross profit margin | | 31.4 | % | | 31.4 | % | | |
|
| Selling expenses | | 55,834 |
| | 53,292 |
| | 4.8 | % |
| % of net sales | | 12.3 | % | | 12.1 | % | | |
| General and administrative expenses | | 52,346 |
| | 53,541 |
| | (2.2 | )% |
| % of net sales | | 11.5 | % | | 12.1 | % | | |
| Amortization of intangibles | | 5,280 |
| | 3,276 |
| | 61.2 | % |
| Income from operations | | 29,137 |
| | 28,761 |
| | 1.3 | % |
| Operating margin | | 6.4 | % | | 6.5 | % | | |
|
| Interest and debt expense | | 7,398 |
| | 5,213 |
| | 41.9 | % |
| Investment (income) loss | | (366 | ) | | (668 | ) | | (45.2 | )% |
| Foreign currency exchange (gain) loss | | 890 |
| | 1,750 |
| | (49.1 | )% |
| Other (income) expense, net | | (238 | ) | | (302 | ) | | (21.2 | )% |
| Income before income tax expense | | 21,453 |
| | 22,768 |
| | (5.8 | )% |
| Income tax expense | | 7,731 |
| | 9,078 |
| | (14.8 | )% |
| Net income | | $ | 13,722 |
| | $ | 13,690 |
| | 0.2 | % |
| | | | | | | |
| Average basic shares outstanding | | 20,192 |
| | 20,071 |
| | 0.6 | % |
| Basic income per share | | $ | 0.68 |
| | $ | 0.68 |
| | — | % |
| | | | | | | |
| Average diluted shares outstanding | | 20,400 |
| | 20,299 |
| | 0.5 | % |
| Diluted income per share | | $ | 0.67 |
| | $ | 0.67 |
| | — | % |
| | | | | | | |
| Dividends declared per common share | | $ | 0.08 |
| | $ | 0.08 |
| | |
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 7 of 12
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
|
| | | | | | | | |
| | | December 31, 2016 | | March 31,
2016 |
| | | (unaudited) | | |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 51,538 |
| | $ | 51,603 |
|
| Trade accounts receivable | | 74,853 |
| | 83,812 |
|
| Inventories | | 109,131 |
| | 118,049 |
|
| Prepaid expenses and other | | 16,293 |
| | 19,265 |
|
| Total current assets | | 251,815 |
| | 272,729 |
|
| | | | | |
| Property, plant, and equipment, net | | 99,163 |
| | 104,790 |
|
| Goodwill | | 168,513 |
| | 170,716 |
|
| Other intangibles, net | | 117,002 |
| | 122,129 |
|
| Marketable securities | | 8,147 |
| | 18,186 |
|
| Deferred taxes on income | | 69,608 |
| | 73,158 |
|
| Other assets | | 11,364 |
| | 11,143 |
|
| Total assets | | $ | 725,612 |
| | $ | 772,851 |
|
| | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | |
| | |
|
| Current liabilities: | | |
| | |
|
| Trade accounts payable | | $ | 28,209 |
| | $ | 36,061 |
|
| Accrued liabilities | | 51,212 |
| | 53,210 |
|
| Current portion of long-term debt | | 13,051 |
| | 43,246 |
|
| Total current liabilities | | 92,472 |
| | 132,517 |
|
| | | | | |
| Senior debt, less current portion | | 136 |
| | 844 |
|
| Term loan and revolving credit facility | | 220,946 |
| | 223,542 |
|
| Other non-current liabilities | | 119,735 |
| | 129,639 |
|
| Total liabilities | | 433,289 |
| | 486,542 |
|
| | | | | |
| Shareholders’ equity: | | |
| | |
|
| Common stock | | 202 |
| | 201 |
|
| Additional paid-in capital | | 210,502 |
| | 206,682 |
|
| Retained earnings | | 186,277 |
| | 174,173 |
|
| Accumulated other comprehensive loss | | (104,658 | ) | | (94,747 | ) |
| Total shareholders’ equity | | 292,323 |
| | 286,309 |
|
| Total liabilities and shareholders’ equity | | $ | 725,612 |
| | $ | 772,851 |
|
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 8 of 12
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
|
| | | | | | | | |
| | | Nine Months Ended |
| | | December 31, 2016 | | December 31, 2015 |
| Operating activities: | | | | |
| Net income | | $ | 13,722 |
| | $ | 13,690 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| | |
|
| Depreciation and amortization | | 17,695 |
| | 13,872 |
|
| Deferred income taxes and related valuation allowance | | 2,627 |
| | 290 |
|
| Net gain on sale of real estate, investments, and other | | (116 | ) | | (379 | ) |
| Stock based compensation | | 4,027 |
| | 3,368 |
|
| Amortization of deferred financing costs and discount on debt | | 515 |
| | 428 |
|
| Loss on revaluation of foreign exchange option | | 1,826 |
| | — |
|
| Changes in operating assets and liabilities, net of effects of business acquisitions: | | |
| | |
|
| Trade accounts receivable | | 6,909 |
| | 13,451 |
|
| Inventories | | 5,267 |
| | (790 | ) |
| Prepaid expenses and other | | 8,153 |
| | 2,100 |
|
| Other assets | | (483 | ) | | 3,249 |
|
| Trade accounts payable | | (5,465 | ) | | (9,713 | ) |
| Accrued liabilities | | 2,082 |
| | 2,856 |
|
| Non-current liabilities | | (8,239 | ) | | (9,520 | ) |
| Net cash provided by (used for) operating activities | | 48,520 |
| | 32,902 |
|
| | | | | |
| Investing activities: | | |
| | |
|
| Proceeds from sale of marketable securities | | 10,336 |
| | 5,732 |
|
| Purchases of marketable securities | | (242 | ) | | (4,239 | ) |
| Capital expenditures | | (11,274 | ) | | (15,518 | ) |
| Purchase of business, net of cash acquired | | (588 | ) | | (182,467 | ) |
| Purchase of foreign exchange option | | (6,370 | ) | | — |
|
| Net cash provided by (used for) investing activities | | (8,138 | ) | | (196,492 | ) |
| | | | | |
| Financing activities: | | |
| | |
|
| Proceeds from exercises of stock options | | 353 |
| | 242 |
|
| Net borrowings (repayments) under line-of-credit agreements | | (23,500 | ) | | 164,057 |
|
| Repayment of debt | | (9,792 | ) | | (9,854 | ) |
| Restricted cash related to purchase of business | | (588 | ) | | — |
|
| Dividends paid | | (2,421 | ) | | (2,408 | ) |
| Other | | (558 | ) | | (890 | ) |
| Net cash provided by (used for) financing activities | | (36,506 | ) | | 151,147 |
|
| | | | | |
| Effect of exchange rate changes on cash | | (3,941 | ) | | 1,268 |
|
| | | | | |
| Net change in cash and cash equivalents | | (65 | ) | | (11,175 | ) |
| Cash and cash equivalents at beginning of year | | 51,603 |
| | 63,056 |
|
| Cash and cash equivalents at end of period | | $ | 51,538 |
| | $ | 51,881 |
|
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 9 of 12
COLUMBUS McKINNON CORPORATION
Q3 FY 2016 to Q3 FY 2017 Sales Bridge
|
| | | | | | | | |
| | | Third Quarter | | Year to Date |
| ($ in millions) | | $ Change | | % Change | | $ Change | | % Change |
| Q3 Fiscal 2016 Sales | | $159.7 | | | | $442.0 | | |
| Magnetek acquisition | | — | | —% | | 40.3 | | 9.1% |
| Pricing | | 0.2 | | 0.1% | | 0.8 | | 0.2% |
| Volume | | (6.0) | | (3.8)% | | (25.6) | | (5.8)% |
| Subtotal of change | | (5.8) | | (3.7)% | | 15.5 | | 3.5% |
| Foreign currency translation | | (1.4) | | (0.8)% | | (4.1) | | (0.9)% |
| Total change | | $(7.2) | | (4.5)% | | $11.4 | | 2.6% |
| Q3 Fiscal 2017 Sales | | $152.5 | |
| | $453.4 | | |
COLUMBUS McKINNON CORPORATION
Q3 FY 2016 to Q3 FY 2017 Gross Profit Bridge
|
| | |
| ($ in millions) | Third Quarter | Year to Date |
| Q3 Fiscal 2016 Gross Profit | $48.3 | $138.9 |
| Magnetek Acquisition | — | 14.2 |
| Productivity, net of other cost changes | (1.2) | 0.8 |
| Prior year purchase accounting & restructuring costs | 1.1 | 2.4 |
| Pricing, net of material cost inflation | — | (0.2) |
| Product liability | (1.0) | (2.3) |
| Sales volume and mix | (2.0) | (10.0) |
| Subtotal of change | (3.1) | 4.9 |
| Foreign currency translation | (0.4) | (1.2) |
| Total change | $(3.5) | $3.7 |
| Q3 Fiscal 2017 Gross Profit | $44.8 | $142.6 |
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 10 of 12
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
|
| | | | | | | | | | | | | | | | | | |
| | | December 31, 2016 | | March 31, 2016 | | December 31,
2015 |
| Backlog (in millions) | | $ | 97.9 |
| | | | $ | 98.6 |
| | | | $ | 97.6 |
| | |
| Project backlog (in millions, expected to ship beyond 3 months) | | $ | 41.3 |
| | | | $ | 41.2 |
| | | | $ | 38.5 |
| | |
| Project backlog as % of total backlog | | 42.2 |
| | % | | 41.8 |
| | % | | 39.4 |
| | % |
| | | | | | | | | | | | | |
| Trade accounts receivable | | |
| | | | |
| | | | |
| | |
| Days sales outstanding | | 44.7 |
| | days | | 49.2 |
| | days | | 46.5 |
| | days |
| | | | | | | | | | | | | |
| Inventory turns per year | | |
| | | | |
| | | | |
| | |
| (based on cost of products sold) | | 3.9 |
| | turns | | 3.6 |
| | turns | | 3.7 |
| | turns |
| Days' inventory | | 93.6 |
| | days | | 101.0 |
| | days | | 98.6 |
| | days |
| | | | | | | | | | | | | |
| Trade accounts payable | | |
| | | | |
| | | | |
| | |
| Days payables outstanding | | 23.8 |
| | days | | 30.8 |
| | days | | 24.3 |
| | days |
| | | | | | | | | | | | | |
| Working capital as a % of sales (1) | | 19.9 |
| | % | | 21.5 |
| | % | | 21.6 |
| | % |
| | | | | | | | | | | | | |
| Debt to total capitalization percentage | | 44.5 |
| | % | | 48.3 |
| | % | | 50.0 |
| | % |
| | | | | | | | | | | | | |
| Debt, net of cash, to net total capitalization | | 38.4 |
| | % | | 43.0 |
| | % | | 44.9 |
| | % |
(1) March 31, 2016 and December 31, 2015 figures exclude the impact of the acquisition of Magnetek
|
| | | | | | | | | | |
| Shipping Days by Quarter |
| | | Q1 | | Q2 | | Q3 | | Q4 | | Total |
| FY 18 | | 63 | | 62 | | 60 | | 63 | | 248 |
| | | | | | | | | | | |
| FY 17 | | 64 | | 63 | | 60 | | 64 | | 251 |
| | | | | | | | | | | |
| FY 16 | | 63 | | 64 | | 60 | | 63 | | 250 |
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 11 of 12
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations and Operating Margin
($ in thousands, except per share data)
|
| | | | | | | |
| | Three Months Ended December 31, | | Nine Months Ended December 31, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| | $ | | $ | | $ | | $ |
| Income from operations | $5,317 | | $10,958 | | $29,137 | | $28,761 |
| Add back: | | | | | | | |
| Canadian pension lump sum settlements | — | | — | | 247 | | — |
| Acquisition deal costs | 3,140 | | 414 | | 3,140 | | 5,746 |
| Acquisition related severance costs | — | | — | | — | | 2,300 |
| Acquisition inventory step-up expense | — | | 655 | | — | | 1,446 |
| Acquisition amortization of backlog | — | | 447 | | — | | 581 |
| European facility consolidation costs | — | | — | | — | | 585 |
| Non-GAAP adjusted income from operations | $8,457 | | $12,474 | | $32,524 | | $39,419 |
| | | | | | | | |
| Sales | 152,497 | | 159,738 | | 453,435 | | 442,015 |
| Adjusted operating margin | 5.5% | | 7.8% | | 7.2% | | 8.9% |
Adjusted income from operations is defined as income from operations as reported, adjusted for certain items and to apply a normalized tax rate. Adjusted income from operations is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP and may not be comparable to the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted income from operations, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's income from operations to the historical periods' income from operations.
Columbus McKinnon Reports Third Quarter Fiscal Year 2017 Financial Results
January 26, 2017
Page 12 of 12
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income and Diluted Earnings per Share to Non-GAAP Adjusted Net Income and Diluted Earnings per Share
($ in thousands, except per share data)
|
| | | | | | | |
| | Three Months Ended December 31, | | Nine Months Ended December 31, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| | $ | | $ | | $ | | $ |
| Net income | $505 | | $7,227 | | $13,722 | | $13,690 |
| Add back: | | | | | | | |
| Canadian pension lump sum settlements | — | | — | | 247 | | — |
| Acquisition deal costs | 3,140 | | 414 | | 3,140 | | 5,746 |
| Loss on revaluation of foreign exchange option | 1,826 | | — | | 1,826 | | — |
| Acquisition related severance costs | — | | — | | — | | 2,300 |
| Acquisition inventory step-up expense | — | | 655 | | — | | 1,446 |
| Acquisition amortization of backlog | | | 447 | | | | 581 |
| European facility consolidation costs | — | | — | | — | | 585 |
| Normalize tax rate to 30% (1) | (934) | | (1,795) | | (269) | | (950) |
| Non-GAAP adjusted net income | $4,537 | | $6,948 | | $18,666 | | $23,398 |
| | | | | | | | |
| Average diluted shares outstanding | 20,490 | | 20,295 | | 20,400 | | 20,299 |
| | | | | | | | |
| Diluted income per share - GAAP | $0.02 | | $0.36 | | $0.67 | | $0.67 |
| | | | | | | | |
| Diluted income per share - Non-GAAP | $0.22 | | $0.34 | | $0.92 | | $1.15 |
(1) Applies a normalized tax rate of 30% 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 and to apply 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 to the measures as 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.
