CMCO - Earnings call transcript Q4 2018 | Columbus McKinnon Corporation

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Operator

Greeting and welcome to the Columbus McKinnon Corporation Fourth Quarter and Full Fiscal Year 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. for Relations Investor Pawlowski, Columbus McKinnon. Deborah you. Thank

may You begin.

Deborah K. Pawlowski

our We Michelle, in time your Chief good Financial Mark Columbus Rustowicz, and everyone. and morning certainly Morelli, today today me I Officer. here appreciate and our have CEO, Greg Thanks, McKinnon. with President and your interest

conversation fiscal will those this at You if morning. today should quarter not, have accompany and which results you of copy financial a access the And that slides were our fourth can cmworks.com. Web-site, our XXXX released our earlier

you'll to I Harbor If turn the Slide slide will statement. X deck, of Safe review the

here As risks you as during during with may is uncertainties other as sec.gov. earnings in risks and that apply could some differ found well the filed session. Q&A documents well forward-looking events stated These statements uncertainties from Web-site as actual as well are statements These Commission. aware, on that results we provided to release today. materially are the our other to at factors the can as to or documents and formal Securities cause Exchange subject discussions These be and other future factors with make what and as are

some discuss these our financial performance. During we will useful in today's call, also measures. believe be We non-GAAP will evaluating

prepared should consider accordance GAAP. in results as with of the substitute this presentation a additional You for not or information in isolation

measures for that in We have your tables GAAP provided the reconciliation the comparable non-GAAP of today's to information. release the accompany measures and slides

Mark? please Slide to it turn to X, to I with begin. turn So, over if you will Mark would that,

Mark D. Morelli

finishing a strong Thank you, fiscal great quarter, Deb. XXXX. We a had

first all right Blueprint path of team and We are cylinders. is XXXX phase firing the implemented the having the on on

hold. and well to sales due taking our STAHL operating of which nearly for the as foreign exchange, fourth finished X% Acceleration is last focus as System, system, X% the was with E-PAS, quarter. the momentum currency Organic performance new key than of up culture and excludes growing on year's over XX% quarter or We and million, QX Earnings more Power initiatives positive benefit year. $XXX growth, of the our Our deployment for

favorable and margins mix up performance on the earnings fiscal $X.XX, margin new a XXXX and $X.XX the achieved year helped gross expansion for per This quarter share as basis. records. drive execution year's Solid further from project our drove GAAP diluted last to

revenue. year QX approach STAHL December. XX% to backlog new of acquired benefit has favorable business end since now grew Our the acquisition one the our STAHL STAHL's The was an accretive and only they per month to and $X.XX from of full the behind the us than fiscal was a of is markets year, more itself up acquisition. total share strong margins. and provide this December quarter the for backlog continue XX% proving to end of earnings past and $X.XX excellent

Importantly, to delivering than that our in of generating strong million free a to ratio we continue demonstrate cash XXX%. business, capability was operations nearly the providing from cash income greater cash and net excellent $XX

strategy as team XXXX I'd and Our XXXX transform our industrial to company increase work Blueprint fiscal quarter technology we the XXXX like I validates Blueprint Phase Columbus thank and in their dedication. results solid power. fourth a the the year into of and performance and hard McKinnon drove our high-performing earnings for

priorities. top the you walk through quickly progress made me we Let on our

$XX We and to new go-to-market our synergies million, million reduced lead platform we technology $XX and goal its achieve include by several the to and Magnetek Our and we achieve up synergies, million $XX goal around implement of of further first leveraged availability now smart sales, original expect X.X% a acquisition to the the models Lodestar product sales STAHL in our with We was gains. $X million. VS. value first to times creation strategy Prostar STAHL full-featured annually. drive of to year $X initiative total we adjusted drive surpassed quarter, million surpass attaining further operating leveraged for core, our or strengthening VS speed income effectively improved By ShopStar XX%. launched the and to variable launch and the the And hoist, share of VS market of

a XXX to basis just adjusted for over the operating points the XX.X% by EBITDA the year. XXX to For increase. improved Margins year, X.X%. income XX% year basis was points $XX in expanded Adjusted million, margin

As XXXX. $XX our in about the debt Greg performance plan. million in down will strong $XX well generation. repayment surpassed our drove nearly fiscal Improved million address, and quarter original We cash paid

net get under result, surpassing to the adjusted the by was X.Xx goal at fiscal a debt year-end, Xx EBITDA year. our to of the As leverage end net at

the implemented the better adoption better our to also new system with making enables engagement good of team We and bottom faster E-PAS line. to and operating wide decision than the with penetration. conversion market grow

results year intended will we Our momentum. put the our place and processes past this from achieved accomplishments in have positive and build

me here, Before over I walk turn go where and you through to our Greg. call let the Greg? we outlook from

Gregory P. Rustowicz

Thank consolidated or in STAHL you, were $XX.X acquisition of prior of Mark. million the sales up million XX.X% Good fourth morning X.X%. added quarter $XXX.X sales year. everyone. On the from Slide X,

acquisition passed occurred and going have revenue the which we show XXst We STAHL will STAHL now XXXX no longer January acquisition, of forward. for anniversary of the one-year

X.X%. December. XX% had than $XXX,XXX XX was and basis by also we remained fact, X.X% volume or organic year $X Overall, sales up that the points. growth pricing was and million markets our of from or backlog $X.X Excluding Sales up was previous higher vertical million strong or

Foreign the result increased weaker dollar. the stronger a in U.S. quarter a of currency sales and euro largely to X%, and tailwind translation by be continued

year. showed organic to business $X.X revenue million quarter and $X.X adjusted X.X%. Canada growth growth million solid quarter, million X, U.S. in strength regions remained EMEA sales. as of revenue gross On single-digit of from benefit quarter project margin $XX.X for sales. saw not or as due quarter were international record quarter, which environment the acquisition gross or to repeated XX.X%, acquisition STAHL did the out in this U.S. an mix. U.S. we up an strong. the $X.X high achieved FX. contributed the We our Slide change STAHL improved. is the were our of with up strong of the as exceptionally the likely of outside XX.X% saw XX.X% sales strong contributed be Sales margin of the organic For million million STAHL reflected we U.S. to EMEA $XX.X and and unusually in it to Overall,

XX.X%. increase of $XX.X $XX.X XX by $XX or was this an for Adjusted year. gross quarter fourth increased found XX.X% profit million Page of reconciliation million, profit profit gross Our of can gross on the million adjusted be presentation. prior million versus $XX.X or The

XXXX. review the gross mix bridge. The January the month gross of added gross profit now profit. contributed sales million quarter's STAHL volume $X.X represents acquisition STAHL's adjusted and for Let's $X.X million profit of This Higher gross profit. of

saw productivity changes positive increased this other million, plants We our of $X.X which quarter cost in gross of net also profit.

gross of million include which year on claim STAHL pro profit positively than impact forma insurance partial positively million raw recovery prior our a are $XXX,XXX Foreign profit. and which in items currency $X.X items The translation inflation, more material gross of inventory which offset an gross gross expense affecting $XXX,XXX. Other $X.X by higher profit of the pricing incurred added step-up impacted of profit. added

X, costs in costs pro Slide recovery $XX.X the This shown forma debt insurance litigation. integration, million As SG&A $X.X cost legal repricing includes to on our fees, million for quarter. were the related of STAHL and

$XX.X million SG&A our items, guidance $XX versus was these of million. Excluding our previous

throughout Compared closure SG&A bad debt bankruptcy to fiscal to to recorded well Foreign expense our Unfavorable increased in currency the was remainder acquisition we guidance the as year, certain as translation of fourth higher due of as the to cost million. timing due foreign and SG&A the partially of related STAHL quarter. million warehouse the the by sales quarter, volume to additional who The $X.X strengthened added customer impacted higher the currency $X.X for costs translation by the prior filed our costs. euro fourth variance also $XXX,XXX costs provision subleasing. selling a

of We versus last incentive $X.X SG&A costs. this were our million by These affecting offset compensation also pro items $X.X costs year. year lower incurred in million higher partially forma

is Our $XX excluding expected first to pro run rate approximate quarter, million forma quarterly in the items. RSG&A forecasted

$XX beginning with approximately million for to per integration spend quarter. savings All an RSG&A fiscal $XX.X of with XXXX. incur $X annual fiscal coming quarter, yield million total will $X to we for of XXXX. million $X $XX spend in estimate This Of the savings in in half a SG&A. in, million actions integration. will million STAHL expect the additional lower with We This approximately of $X restructuring approximately these million, will as in our approximately fiscal part affect our STAHL savings, XXXX additional realized million of second

This margin of effective for will is operations an moving operating improved X.X% annual We of to from income million Slide accounting or income X.X% XXXX. XX% is is I income the schedule. do EPS. of impact can pension to found prior net statement. out from operating operating STAHL in $X on for over Turning income in million million million standard $XX.X adjusted of pension operating grew or income of income fiscal Page have to income There that X, $X new achieved year. a basis to XX will basis the the us that $XX.X the want sales. be no presentation. this on income/expense prior compares other ahead XX adjusted This be on Adjusted to there impact reconciliation year. points synergies, which to of The point or of adjusted

diluted of XX $X.XX increase GAAP All loss adjusted in this On per see $X.XX can on earnings XX.X%. share $X.XX STAHL period. are per on versus tax-effected you were to normalized As this $X.XX to tax earnings the per an compared earnings diluted share $X.XX a of share current presentation. or GAAP in and XX%. Adjusted per outstanding a of for added year tax This rate per rate our Page be GAAP for quarter share of to of our per $X.XX share XXXX adjusted of EPS reconciliation XX%. is fiscal prior effective was earnings adjustments found at The the accretion the the $X.XX full share were accretion previous an result. year, Slide contributed diluted can quarter quarter the of basis, year. in of fourth X,

per share diluted XX, $X.XX per XX%. to share per the with presentation. on by The be adjusted year, to the fiscal GAAP earnings earnings for versus XXXX $X.XX share were share the reform. $X.XX share Turning $X.XX earnings an to GAAP year found reconciliation XXXX, Adjusted in earnings XX increase per impacted negatively Slide full-year current $X.XX fiscal can compared or per of of last the Page tax share of this year, per full for diluted of diluted were effect

full-year the expect fiscal XX%. for We XX% to effective XXXX be tax between rate and

on We are XXXX making goals. financial progress our significant Blueprint

EBITDA adjusted in XX.X%, improved from prior XX.X% the was year. margin significantly Our

We our improve on also saw capital X.X% to X.X% in from return XXXX. fiscal invested

in Turning XX.X% from a our from compares reflecting prior quarter. lower down a XXXX year percent to XX, points X.X basis December DPOs accruals. the slightly Inventory than as higher higher capital incentive XX.X% working to XX due higher XX.X% a decreased liabilities was XX, fiscal levels. sales of at and and Working XX, fourth Slide turns XXXX. quarter, accrued year and were compensation ago largely December the turns, of at sales capital to as March percent This

improve favorably are than substantially. in We are higher carrying our which Slide fiscal million, our impact higher on-time markets initiative operating XXXX. of is line product cash activities up backlog from $XX.X $XX.X delivery simplification net that the later We to currently and the On for believe were levels prior amount as inventory year strong was will our year XX, turns million. the

$XX.X was year, the flow cash For free million.

for fiscal million. million XXXX to $XX Our $XX expenditures guidance is for capital

Turning to as was $XXX.X debt our and was Slide net $XXX.X our of XX, million total March debt million XXXX. XX,

$XX to Our the million progress repaid this initial XX.X%. debt-to-adjusted and target We of set surpassing $XX beginning total have of EBITDA to We a $XX excellent debt net year, net made debt was total million of capital year. at of achieved ratio of the a delevering net million our X.Xx.

is approximately are leverage target there. long-term net for we almost so Xx, Our

finally, we dividends sheet, capital another via Blueprint to of funding the be, XXXX. delevered cash priorities expect to and or to acquisitions turn continue returning allocation Once We growth initiatives, fiscal up. consistent organic over share debt repay our $XX balance million back I to to will excess our with XXXX, Mark now will repurchases. in wrap it have shareholders

Mark D. Morelli

our relevance the to for as shows and taking our company. hold, We a of XXXX and great results capability executed passion team's our strong create our culture The Greg. this Thanks represent fiscal Blueprint and performance commitment XXXX well is strategy.

team them our Our achieve efforts. associates global and their to together and thank for are leadership goals I pulling

We that margins XX% and are making deliver than improve great than XX%. EBITDA can strides greater building to a ROIC business consistently model better

We on a accomplish on are the and start strong Phase Phase II Blueprint I. critical have will with competencies XXXX activities. running focus entered this, we fiscal XXXX building To of of from four

the is The to business. first simplify

we product groups Company As our Solutions, Industrial Products. allow and you Engineered Crane are better three know, restructured and the us These more streamline to needs, Products, into address with customers' our act to processes. speed,

rationalization. We are and line simplifying our platform business through product

Proof greater provide customers mind-share. goals. to to well recognized our ROIC features We our as adopting as offerings be will streamline more drive common platforms capture by are reaching the rope wire customer of our EBITDA to hoist our across success better focus business and for

focus be improving critical on productivity. will second Our

We and the in $X savings. in an our of additional exceed synergies acquisition to annual million STAHL expect million $XX objective achieve from

Greg second that fiscal begin As quarter. will mentioned, our in we to see expect results you

have labor material from labor. particularly focus management better, cost of further a productivity, on managing significant indirect also opportunities We our operations in runway and

third will digital If leverage problems. focus good the is provide we'll ramping addressing on do growth customer growth that of business. a we job Future area doing needs, products a solving ease driven for on critical focusing by Our customer platform engine. our tough be

to includes we to productivity, enable with business everything the market, we our interface to market we that We capability of higher better and This customers, technologies incorporate safety. will the how investing develop. capture relevant improved go also our products how with share. technologies This that and yield, has positioning and in do

to a to amount involves implementing, have further are This be Finally, transform commitment with of effective team. of deal by the the culture. we change great we our

we vision set mission, out our defined goals and work have achieve. We that to must

easy, While this to Columbus team Company, our but has our excellent strong change effect and it I products been not may made dedication and appear of professional-grade to McKinnon applaud the effort their simple, the represents. progress. intensity legacy customers, we've that for the to providing to

markets. We our advantage demand. both and We've current of U.S. tailwinds continue favorable in industrial upward verticals are that the taking Europe in several seen target are and utilization trend strong capacity seeing

over business, third first X% about and backlog quarter we we of the first momentum is will last in FX. sales the benefit year's Given a from quarter. increase have our believe the be strong to of About X% the

a be of We expect will solid our performance in fiscal year earnings year now XXXX. call the is focus Phase II for can Michelle, we the our which open And reminder, delivering questions. growth. on as strategy, for about

Operator

Capital from Craig-Hallum [Operator first Our your of Palm comes Group. line question proceed Please with the Instructions] question. Greg with

Greg Palm

out much backlog sort there. I guess congrats results Nice the to mean noise seem results impact continued I doesn't the based tariff-related progress. of be I and in guess on on the any of of there levels, of any

kind from activity thus sort well? and June hearing how trended as just maybe and of in of I'm So, order quarter customers the curious is quoting far you're what

Mark D. Morelli

quarter than Our that March, April had off trend a we promotions lot the in quarter. sort the reason of a being we lighter of June is in that little and March through run the starts bit have

question, that Obviously is quoting there, seem your expect much the continues. but get tariffs. we bit really overall, there due of we on And little have down. pretty remains the a impact strong. to we to bullish to really around lot to noise folks So, seeing see But and not the activity CapEx that a be to are geopolitical concern view some activity

strength. do and continue land that and we'll of some hopefully we'll So, some with good

Greg Palm

anything that call market quarter to end out recently? want activities either upside of expectations you on based order drove sort driving your earlier an the of the sort perspective, or to what's backlog From just

Mark D. Morelli

Sure, to. I'm happy

of We construction. are lot based activity used type are markets. steel, of hand the a markets. uptake products construction side seeing mostly we're good there, hoist a strength on in really lot really acceptance in that our products, on seeing in broad chain manufacturing, general Obviously seeing including of in the lot electric Entertainment steel In controls some and capacity. tool We're construction into of in We're strong. are they adding that's refurbishment mills as older really of Magnetek business good been kind those are a new capacity, is as of a Folks for retrofits, their for of refurbing are season they summertime. the selling getting festival ready us. the

on inventory more road. So, they are before up loading their the out on folks go

I in the EPC those well. as of are greater are going try refinery bullish be That's as becoming pretty attract to extravagant crowds. looking work that's the both particularly gas, that we year changeover, levelled out which with and we think and a money for that venues, folks feeling so couple venues got there kind getting to of downstream, We're spending to us as LNG. continued entertainment see and U.S. concerned to well. a that build And little somewhat pretty see for to to think entertainment And our Oil like but really next continuing trying more seem markets maybe pipeline contractors that's the good as and and over things quotes drives midstream sort of well the I as model years. that's we've in product then out, folks automotive really line so have that continue been have there, been this and the goes comfortable far

have product has aerospace as think been think aircraft Also I and there So, orders up I well. somewhat we strong a as line it's pretty for broad-based. very

pretty we're seeing I good vertical we're and think targeted with growth. on markets So, some some we're what comfortable getting

Greg Palm

XXXX, one in initiatives a phases or of handful success get I more you last me, on areas just guess date? are Blueprint seeing there's different the of progress sort but in to the to each Yes, improvements of and phase, overall that's know I wanted three great. color some for Then what most there. I terms

Mark D. Morelli

sure. Yes,

Phase I I, positive seeing I of a you're think lot think on momentum.

Our operating XX focus much to businesses. We system enabled definitely down deployed to distinct has us better. that

really and and to and how spending on penetration been time well we need So in Company focus results. clarity has it enables it's be with the our deliver the we what deployed to deep on us

Company. and carried just as we of opportunity the been embedded from deliver strengthening build particularly that actually to that. Company, into think we What going to we're that on off from go that our And these into of positive four And process some the II, market, runway Because indirect year, there's three for Phase really quoting it's initiatives there, as we now that that real the think imperative out to you go line confusing doing that's unnecessary into a time there. have your and key it's a organized get we think great we salespeople we I value activity categories, have we customers and area that of to is serving is product the costs simplification we've product real this first and complexity our as on had we we now momentum, share, further to of the it's added carry have we to built area, last availability, customers. so, market forward has then into a our some from traction are core we on product is supply, and while what lot up to beginning particularly really can a on how which gain hallmark tighten in deep where

out So, of up, traction to we're as that. lot a think going we clean get I of that

as what benefit. quarter, more Operations getting and we'll mine XXXX, of We as of think there really think long deliver. runway operational phase we're then that new Head focused in VP had opportunity of the perhaps team Development ramping the know, announcement, opportunity, there. there some we good II a later you is a in a past and to us Blueprint recently are going that of Hopefully saw plant we you then have is on that So, the on And I that Product on join have a but search And to of color. just Phase we growth. into that the And of will we're hopefully years. this that, feel the some innings out I but this early going get soon, path for and out that new gives he's will we think and dug into make this later future that the we growth seeds really you very get can about for we really is that we continue announcements

Greg Palm

helpful. good forward. it I'll again that's going leave luck there. Yes, and Congrats

Operator

with Global. Please Our proceed from with Shlisky comes next your question question. Seaport Michael

Ryan Amberger

Ryan Amberger is Mike. on This for

a gross could Just give you from I mentioned you a year few whether in benefit think know this show quick and that are quarter we STAHL. of sense ones. ahead? you record XXXX margins fiscal the you a Could beat us repeatable? And you do saw

Mark D. Morelli

STAHL excellent to So, that projects margins. we made I mix substantial of due did but margin than see think coming we largely out a general, progress in on richer had gross

high think a to to most of gross improve. continue code low We XXs. able expect year expect forward. Phase that to we Blueprint to we the from as II our further would in been And start to should the for the of going zip XXXX, the I benefits margin we've margins see be of perspective in XXs

Ryan Amberger

thanks a growth to one, fiscal for the there clarification just QX, the the clarity. expectation your quick Great, for other the for pricing And on full X% quick what's what's year? and one assumption pricing X% then

Mark D. Morelli

what of was was for ready expect where with time in with XXXX the at generally a increases quarter this out the pricing we price basis we're it fiscal not year. U.S. go and go our points, we know, XX it would expect see be but you as to in we fourth to higher So, in out yet fiscal the to number in point than

overall price in once once more have XXXX. shakes But and out. clarity higher we'll pricing that stick how all we think fiscal increases what see again, we I expect do

Ryan Amberger

a Okay, I lot. appreciate great. it. Thanks

Operator

proceed with your Securities. from comes Jon Our next question. with Please Tanwanteng CJS question

Jonathan Tanwanteng

freight even recently increased more been freight A and capacity. lot and seeing a of have lack steel companies expenses of

changing you to are to operationally touch the are on you from enough shipping? sure you that, a doing can going exceed pricing you Just what capacity have anything make and there are you offset to perspective for increases

Mark D. Morelli

and bar also and seeing stock prices we Jon, environment link we're go certainly certainly because we're we're by steel make and impacted So seeing steel chain. buy inflationary we up,

not we're impacted of by put builders the have nearly However, as together. that some and crane whole the girder span crane buy our to

able So, I pretty we've material think been the mitigate to inflation well.

new a our have Head Operations. of place with process We in

we we're pretty confident at and And so, we've well. able feel about what passed to done pricing, as really and we're on seeing this we've pricing we've passing far done mitigate, historically, so good obviously on

make work-through some some some comments? So, very so before, side, quite to the customers, comments some to things in but because the as so to logistics transportation well. really to very and careful have us we as want issues, I'll before question nothing had well, are ask turn do, are able year. folks and think think some should really over hurricanes to make around of There's having we've on Greg but been relation minor to Greg, I'm do this monitoring been we he asked I you effectively problems, I I speak of, a the on carefully. been there's this some of our we issues, maybe manage that last

Gregory P. Rustowicz

quarter the So, from release, up raw our inflation $XXX,XXX. material in and press up Jon, sequentially million that's in $X.X to our ticked about

as have cover will a So, to increases our that rise. than know, we announced bit more this we issue a with time. But we seeing see with you and customers that inflation don't any are we at of point in price

other good supply mentioned, place a have. necessary mitigate process would have concerns leverage as we and our base any look we for and to As in inflation that Mark we sources

Jonathan Tanwanteng

in to Thanks there, more activities generation for Greg, to great. million down Okay, also the that any the for [indiscernible] you are out pursue other CapEx million color. $XX have to with target enhancing excess million $XX expecting paying [indiscernible] $XX XXXX One line? after cash

Gregory P. Rustowicz

to repayment ratio. XXXX which million down net $XX debt about fiscal in we us to of get the leverage debt So, the expect Xx right will EBITDA

it's be our level say point question used roughly at be in predominately time So, our for a I'd time and of Xx. for fiscal in point delevering, cash targeted really XXXX. this that at we'll at will more of excess

Jonathan Tanwanteng

great, Okay, it. got

Operator

Our next Matt your Koranda ROTH with Capital with the question comes from Partners. of line question. proceed Please

Matt Koranda

pricing maybe are observed competitive could time what with terms just Just you it observed on you standpoint, sort pricing environment a about color talk following competitors you, touch the what wanted sort from to offset this doing and of others to have any inflation, space or material suit on one they of in more marketplace? in raw you've in of

Mark D. Morelli

So Matt, we've go definitely competition seen some on up price. of our

projects. I looking are to move CapEx forward think folks with their

order why period Some been time intake. a on this long seeing of these is of we which for their are I some and CapEx projects have books of are they very confident guess forward, moving

think right to increasing to accept is of pricing consequence, the those market obviously and of passing some well. now so, as some their customers on a as And I willing that

of barriers running that we're really I there. lot know into So, don't a whole

we're And going least we far, to able and huge concern. really I we're in for so to carefully, we've what amount environment, but there's far, could so, things an change, so and see things obviously don't what I inflationary of see been watch experience at think so think a

Gregory P. Rustowicz

So whole me point other let pricing one Matt, discussion. on add the

based on pricing, product. calculate it's when standard So we

calculate And on so in for comparable the that instance a hoist previous year. the we change pricing we sold in

quote account highly taking our in current into are costs. and business, on that, engineered we out our go input we when So,

our no it it's the per in price. raw price [indiscernible] our material all but there implicitly because cost that in taking on se, with it's unique been current So, is previous a get project up come process account into sold we're volume, in year, revenue, to bid when that we bidding

Matt Koranda

time products. a of Got on the it, highly engineered real raw sort inflation basis so that material for offsets

Gregory P. Rustowicz

show… doesn't It Yes.

Matt Koranda

[indiscernible] for you remind two the you overall And could for if between guys?

Mark D. Morelli

Sorry, hear didn't Matt, repeat we that? that. Could you

Matt Koranda

mix of overall. Columbus for product this versus the Remind highly standard engineered of McKinnon

Mark D. Morelli

a it can from perspective. answer I STAHL

is of XX% business the about So, engineer-to-order. STAHL

business model. their pretty So, business heavy and that's aspect a to their

well. there's Magnetek, is their also in as majority For of that business probably a

So, two their of more part big acquisitions, business. that's a recent

but type speaks And the So, it, visibility like to react in there are quick don't because moves business quickly, there. feel as able We we are long. up fairly quick see we'll changes it think that they that I on on to the model have whatever and are relatively to shelf you reflect we the turn. market where then be to changes the much product as lead to type not quickly function times as a as is that pretty able well on fairly know, price other

Gregory P. Rustowicz

Just number, legacy revenue. to to as roughly engineer-to-order prior look Columbus Magnetek if ballpark were kind of would our XX% and a be of you Matt, acquisitions, our the STAHL McKinnon at

Matt Koranda

the very just of Okay, guys. you few STAHL, from we've hoist the fact new think the about received talked Shaw-Box of or talk SK guys from call, are a the about specifically if the markets? then rope being YK Yale wire production talking how one here new noticed product I announcements are it spend and or leveraging don't knowhow those another in some on and from weeks on and And the but sort ago. maybe hoist helpful a wondered about I you IP those and in announcement if wire products some introductions, could then rope I'm minute so

Mark D. Morelli

competencies a Thank leverage across how can you this about talk Yale platform. to hoist Magnetek is and we're excited because from of our rope happy We're example for that wire some and the great also we really question.

standard we've essentially the we getting doing to able you're a tonnage and not necessarily what well as And greater consider but type product us and is of to able so, Shaw-Box more into we're offer both brands. of choice expanded been think that our more terms features, the engineer-to-order, we're range what offering, Yale brand and and this as offers customer also an the greater a into gives in and featured leverage I offer

we're we really these obviously so customers. very they on is doing? look So, receptivity But so with we're good far, availability how getting good days are, working ask can availability. carry our good. about Obviously So things really from that through

We have offering there. the launched initial

on working and And of that an that year. range expanded later tonnage Phase that. through So [take be we're we launching and year are also I range] we'll this this [ph]

the as from our excited excited really early speed think on working we're see It's new development great can approach, we going is launches well, for of you to product we're what this activity but our we're that McKinnon. become. about So, on, really a the some variable but stages about things Columbus can be path

Gregory P. Rustowicz

on And XXXX. $X acquisition to part that we to actually and STAHL so this it, the in was going incremental fiscal to part of expected are of million add synergies Matt, also get the from the just we're project

Matt Koranda

incremental sort my Okay, drivers this are question. actually the project I that call million that of other the perfect. the or was are bulk mean, synergies? of $X you the incremental is out That items that anticipating could particular next of you

Mark D. Morelli

of part a it's So, it.

is new that of more we've part understood customer able ability more as go other to back, it The this we from been this we've effectively, how streamline to to effectively. organize market things

both. think I it's a combination So, of

Gregory P. Rustowicz

savings the for of piece significant sure. a It's

Matt Koranda

guys. helpful Okay, that's

I'll we called but going then basis, to you you've should of three quickly, them on revenue really guys one that know and that? report housekeeping reporting turn before, are remarks, segments mentioned your a in how going on you it about the out to that think start prepared you over, I sort Just on are

Mark D. Morelli

don't Matt. so think at point, I this

the think and misleading path. certainly the these might level we kind now I down categories. go product if be it think are corporate of right that we We run really business at

going we So, to at maintain current right have. reporting least our for now that we're

well. level at as We also that have some difficulty with accounting

us would provide perhaps may a So, I think level misleading. difficulty and be it just of

Matt Koranda

All I'll Okay, all right, it thanks guys, over. that's turn right, understandable.

Operator

the with Roubaix comes Our proceed question your question. Please of with line Hillary Capital. Christopher next from

Christopher Hillary

well. but really think question everyone I had else pricing that a covered on I

more you applying for that. to So would to Maybe thank care just McKinnon? bit a his the talk skill all COO, set, anticipate that about and how you you new Columbus background

Mark D. Morelli

let clarify Sure, that. me

the Vice the joined of is that worked Toyota so lean has Head our Operations he Operations, through the up production in [indiscernible]. he So, of system background, and gentleman And his new started is across President with Company.

kind turnarounds, world-class So model, you're type from with he on very worked has that much And spent training operationally, businesses. he many years of he business on worked of he's has has got and [indiscernible] if that. coming familiar

seen he's we've material at sleeves there's a position he never square consolidated We've but I have on look how long seen got it's the get just warehousing journey, of we he like labor filled lean of And how our of And for us opportunity got get our because feet So, to of got right and but our to world-class, help how but manage think including roughly bit think there. a has there, really X.X go. also whole this million definitely think we're warehousing tremendous how us little a our a can look we think what spectrum. at improve has opportunity up the a runway when I tremendous guy I we we how sort is, really improve focused Columbus what think footprint, I of McKinnon. management there's on cost, his here. our had he's We've operations look runway tremendous supposed of the and I he we've you factories think the productivity, we I roll to and real and way run,

Gregory P. Rustowicz

Yes, have Vice all all. just is Operations charge the he on in does sales is manufacturing facilities. people our you of at line, and to Chris, and He essentially, of any for responsibility not for of President clarify

So, of in is not typically this COO a what responsible be charge would That gentleman businesses. for. is

Christopher Hillary

I'm more, longer, industry, your coming develop more we've out capacity see for strengthening you of that filling is seen of cycle backlog curious a think where one you time, i.e., extend your maybe then in in way, the to CapEx length I you in the if kind a are projects up the larger through? And the see Okay, and clarification. thank backlog maybe of starting mentioned healthy bit you signs

Gregory P. Rustowicz

going Chris, so after backlog a XX% XX% we we consistently XX% within of the press release report in ship to that do quarter. to coming our are to is range that and

say it's pretty would I So, consistent.

roughly June million, of the that million in, current backlog that current our of quarter. $XXX in backlog there's we the of $XXX.X quarter So, is are ship due to

Christopher Hillary

Okay, so great. you Thank much.

Operator

any at call for over questions further closing the remarks. turn no Mark to time. are this would Morelli to I like back There

Mark D. Morelli

in Thank XXXX your as for appreciate I greater we interest creating us Thanks strategy. Columbus through very Blueprint McKinnon for call. execute our joining on much you our folks. path today's value

Operator

today's teleconference. This Thank you. concludes

for disconnect may and time. lines you have You your your participation this at Thank day. a wonderful

Columbus McKinnon (CMCO) 30 May 182018 Q4 Earnings call transcript