Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the Columbus McKinnon Corporation First Quarter Fiscal Year 2024 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note today's event is being recorded.

I'd now like to turn the conference over to Deborah Pawlowski, Head of Investor Relations for Columbus McKinnon. ma'am. ahead, go Please

Deborah Pawlowski

and and everyone. McKinnon. your Keith, your certainly time today interest good you, We morning, appreciate Thank in Columbus

me and financial Wilson, our Officer. here call Joining David are results President Rustowicz, Greg conference CEO; Chief Financial and for

copy have first the which a financial quarter this released earlier You morning. XXXX results, of should fiscal we

and to have as well our today. their and slides the available After slides will that on conversation which going We open for release at website Greg formal remarks. David the investors.cmco.com. Both provide questions. will accompany are are we our line

But right review X the will turn will in statement. Harbor to now Slide if you Safe I the deck, just

to risks the as stated well to may uncertainties, with differ the These earnings is that release, documents materially be You well what and that as some future should the cause Exchange and as Securities we provided make with the statements are as are well by filed uncertainties actual Q&A could and events session. factors other risks statements and subject to results in during that from apply forward-looking These company as factors aware today. other during as Commission. here the other discussion, formal

on website sec.gov. You can find these documents our or at

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

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

non-GAAP release slides. in tables today's the reconciliation and We measures have that provided measures with of GAAP comparable a accompany

call over and X David? So, the to turn to with begin. that, Slide advance will please David to I

David Wilson

expected for growth million Sales with conveyance We everyone. on that low platform, $X.X the XXXX Montratec, to off Deb, rate contributed the our addition growth upper and own year. a the our the organic strong X% month good in increased for note. to we Thanks, them. nearly of quarter the latest precision at fiscal mid-single-digit end and started X% one of morning,

of this really automation We are systems thrilled McKinnon. Columbus for growth technology to business. bring as that advanced asynchronous we serve platform They important this for modular accelerator transport with as part them expect to a have highly

precision basis a expanded This an line expand recorded points another gross on further year and adjusted discuss our XXX by quarter XXX with for in this slide. next resulting to orders basis. book-to-bill plan on margin with is up basis the bookings sequentially XX.X% margin X% in XX will to we Gross the points to strong and and We sequentially, area the important lead will to sequential X.X we are share business platform of customer there opportunity times market that here are We experience gains. more is growth XX% believe we our conveyance improvements order achieved ahead. in strides more earned in making central and ratio period. and doing to The all is this

automation transformation in is and our have demand addition, that opportunity factory impacting tailwind across underway is with from that Columbus provided benefit McKinnon greater favorable A several efforts current investment less cyclical vertical significant verticals. the In megatrends. markets in are a set

manufacturing spending is efforts. all-time is the fact, by In amplified an US being re-shoring to capacity in at capital support made high investments which

debt productivity debt the solutions more financial the solutions Columbus material cover detail the applied factory improvements. where will are and Greg cost and was end this reduction the labor the of in result are heart global automation at shortages successfully in handling address testing. covenant in of We Intelligent automated a of McKinnon to elimination our quarter. and being but refinanced

year. end with of We the expect leverage to ratio times the be under net our fiscal X.X by

margin to in of the ground yet to making cover more and keep the expansion. I'd that Slide front gross us X. we we're like to have of all Shifting with importantly, progress respect to

is XXXX Our improvement of XXXX. the our our margin in in This in start margin XX% gross with fiscal performance to EBITDA to to for with is XX year. XXX deliver fiscal points basis consistent expectations line expectation to deliver

the initiatives and of factory remainder focused a additional includes the line, for also transformation with process, higher-margin product XX/XX year on progress simplification. our advancing plan business. Our to We're

Our higher fact, platform margins commands conveyance in XX%. our margins most addition, gross approximating has precision and recent montratec, annualized

call let With results. that, to the of cover the Greg our me turn over financial to details

Gregory Rustowicz

morning, you, everyone. Good David. Thank

million, the after Slide basis, which our year to sales QX quarter. sales first is prior with in seasonally strongest a in up last within X. Turning quarter. $XXX.X from on The was the what the constant quarter We decline currency sequential we in consistent provided delivered of X.X% expect guidance we

of or at million of revenue pricing ownership. for with million X.X%, realized line a increased which were by anticipating. million gains The had we or what Looking our was montratec one month X.X%. $X.X represented month in sales we June, $X.X $X.X acquisition which of of Volume bridge, the

Foreign this small benefit currency a was quarter. translation

color on by a little provide sales me Let region.

first the of sales in For X.X% year. saw with we compared quarter, prior the decline US the

of This was canceled weaker While a large as backlog. with quarter, sales to we down pricing orders well X.X%, up volumes was business in discussed the to was last due our due as the X.X%. our volume precision e-commerce conveyance phasing customer

sales by increased of X.X% strong Outside improved volume a the pricing US, XX.X%. and

from saw in in recorded montratec X.X% our We and benefited the largest regions. implemented XX% Asia including general utilities and US. the in global of gains Within EMEA, XX% Lifting of region in in in Canada, gains America, in our outside continues XX% to APAC, volume Germany we infrastructure, manufacturing Latin EMEA, several We from volume increases in all approximately added acquisition verticals, Solutions our strong manufacturing, construction last Pacific. volume In growth productivity addition, plant ERP X% as benefited sales business year. and largest system transportation. which a new in advance

implementation. Last a revaluation, XXX was first expanded we by one-time On gross adjusted German to inventory million higher basis added the margin margins points. of year's part Normalized have gross XXX X, benefited year-over-year in basis sequentially gross XX to That basis would XX.X%. from basis, year revaluation, an Slide XX ERP prior about sequentially $X or inventory was which points. points approximately for On expanded the gross adjusted quarter about margin basis points. by profit one-time this

second last Let that remind this benefited about year also points. also inventory you quarter the basis from me revaluation by XX

million profit of gross the quarter prior net table. increased million inflation which driven profit. of the factors versus added several gross First $X.X you see Pricing, by in can material $X.X year,

material We decelerate which from is year, as the quarter. good second trend last are a into we progress seeing inflation

GAAP, quarter-to-quarter. the XXX first $X.X we With was our Offsetting expand for this other sequential margins is and be contribution gross not well June's was on expect The that XX which largely million believe month variability $X to of the had we gross will as project-based for impacted mix We contributed margin approximately $XXX,XXX disruptions cost profit. profit margin by that by to productivity performance these changes year an gross full as and points. lumpy, generate are year, basis conformed sales an the to of expected some of The typical and montratec, will by montratec items acquisition see to unfavorable gross occur US margins business unfavorable million. of was their gross acquisition. which XX% reduced business financials and XX%. and in track can in margin margins we we

SG&A quarter our XX.X% of forma in X, relocation, Slide to included $X.X sales. of a or adjustments the was This pro expense $XX.X business acquisition, the warehouse consolidation costs. million for and million headquarters Moving realignment

prior Results by our also year, to was costs these XX%. forma selling forma increase in compensation which SG&A expenses. by were a was expenses percent was as million. pro X% include of expense. increase montratec. in pro adjustments, our our as sales of higher even of these higher X% a Excluding revenue. with we with was our G&A, Helping for $X.X lowered the restructuring SG&A by This Most offset the by in costs a and elevated selling Compared $XXX,XXX was our efforts the driven stock items reduction SG&A costs

in $XXX,XXX. also increased investment We our by R&D

million. quarter at SG&A approximately $XX comparable For the we to be expense our second for expect quarter, this

Turning was income million income as by non-operating million operating basis, $X.X grew Adjusted income X.X% slide. adjustments XX.X% we the or on compared outlined million an prior or $X.X sales. of with operating of generated in the or of X%. operating impacted was $XX.X to of sales, this net year income million operating adjusted Slide X, $XX.X quarter GAAP On

per up As can of earnings you see the on X, recorded diluted we GAAP quarter share the year. prior $X.XX versus Slide for $X.XX,

GAAP was a basis XX%. rate tax on Our

impacted the rate tax tax X by that compensation percentage this quarter. was item affected unfavorably rate a equity for discrete points Our by small

tax rate to be year, XX% we our the and For expect XX%. between

increased the from $X.XX due share expense $X.XX year diluted and tax interest of down per to earnings rate. Adjusted the higher prior was

operating As to we on result our these offset increase leverage initiatives, expected and volume the is XX/XX headwinds. execute in

interest rate to we the purposes, even interest modeling For exposure, with from in montratec million expense interest are is hedged though expected incremental acquisition. increase second XX% the quarter the expense $XX to

On adjusted Slide an EBITDA margin $XXX.X which in XX, XX-month of our EBITDA trailing resulted was million, adjusted XX.X%.

end increase invested X.X%. to rate was XX%. shown, all QX effective XX% and return in of after-tax from on tax Our the our capital of periods for reflects an at impact ROIC earnings the to

business double-digit We the XX/XX as over initiatives. an expect ROIC time execute achieve transform to we and

of CapEx consumed XX, from of million. includes cash million, quarterly free cash flow was $X.X $XX.X Moving to negative Slide million. activities This operating $XX.X

in resulting increases capital, namely growth in increased between our a as timing lower-cost and year First record simplify will accounts making as and the $XX quarter range the productivity footprint of million increase affected we strong an well factory are capacity generation that levels by related anticipate quarter improvements. of to higher the working a fiscal at to of end in investments excellence to cash our to support was receivable as order backlog. $XX in shipments million center We CapEx in inventory XXXX

conversion expect between flow we XXXX, fiscal free cash XX% XXX%. For and range will

an financing we montratec the Slide our we end to no increased the agreement, borrowed With $XX activities our to and Proceeds financial to is million covenant securitization our from on at program $XX million. fund discussed loan used were light XX, covenant acquisition. We borrowings pay revolver which quarter tested. revolver receivable May by fully added credit our off used call. term B we that and earnings Turning accounts completed not the

X.X% move against the We rate as to yield also months at and swap executed take the three range SOFR, of hedged our inverted of we policy rate approximately are upper advantage towards a another curve. end XX% swap now of interest

to financial XXXX. leverage $XX debt down was net fiscal in our expect $XX on basis. ratio X.X down paid Our debt and in We of a pay million debt of times quarter the covenant of total million

to of fiscal end leverage the times ratio We to expect our drop XXXX. by than X.X net less

XX advance Please over to it Slide to and will turn back I David.

David Wilson

Thanks, Greg.

intelligent X.X was and by strong North quarter I mentioned automation metals production, Industrial in America. was upgrades. food motion from automotive industries, where verticals the times solutions technology of grain earlier, assembly, book-to-bill are As rail demand our several in processing, coming ratio for benefits wins our a printing, sequential for and are order material driven handling across inspection in battery packages, variety to handling, system enabling even

Our markets aerospace defense quite are busy. also and

pre-announced highly potential the Our for encouraged were the orders orders business within further QX. XX% increased our price growth a from team sequentially, in quarter, the by and Year-over-year, excluding of distributor the orders pipeline difference modestly experienced seasonal last demand In slowdown advance X% remains transitioning when from June. as QX quality the of significant we from business. QX last year's notable grew montratec increase benefited sequentially. historically conveyance our Precision of to grew a down

billion Orders million to $XX Backlog months plan revenue achieved including year. our were $XXX a this aligned record six of achieve in are and for of $XXX excluding benefit montratec. at of with over the $X montratec last million million the contributed over new excess

projects coverage Our project previously X% XX% pipeline projects mentioned while in has quarter. additions driven for orders. is strong, provides backlog, to up improved Long-term decisions our nearly had and which and expected sales short-term more sequentially indicative slowed. the by new We second sequentially XX% remains backlog release approximately major was of that montratec our the

saw in long-term expansion. our in beginning and Over show improvements is to the customer quarter, we this confidence backlog

turn our outlook Please and will second Slide for quarter. to the XX we discuss

for guidance. of the revenue represents We including are million contribution. montratec's year-over-year this XX% second growth This expecting $XXX between at quarter in million and midpoint $XXX approximately the

of As nature montratec be and such, given business results business, the Greg can as the quarter-to-quarter project indicated, can vary. the lumpy,

montratec's be visibility the our that year, will expect delivery the to We December likely customer given quarter requirements. strongest in current

both is processes, SAM for and Along not portfolio, electric we with only This chain chain great XX/XX and line simultaneously both solutions prices and customer are for wire are will We're center. because the and mid-tier our products, our both with our experience, initiatives simplification for supply it right our at better-suited solving front hoist. making simplifying our rope manufacturing effort markets. expand product headway for premium the the

in We with to lines new hoist rope fiscal wire XXXX to the expect the latter of the portfolio launch additional follow. for half phases

product We execution new positioning. expect offerings customers progress continue to targeted development, about and in that strategy. transformation the improved better our market to remains we with all provide XXXX and including invest enhancements serve to our make Fiscal

are encouraged runway the our improvement addition XX/XX to We montratec growing for that with conveying precision by exists platform. we're the continued of thrilled and

that and this to deliver XXXX year. strategic We will path steady we fiscal to remain objectives on our progress track expect along demonstrate

Keith, we the line open questions. for can now

Operator

D.A. Matt Summerville from [Operator Instructions] And comes the first with question Davidson.

Matt Summerville

morning. Good Thanks.

David Wilson

Matt. Hi,

Matt Summerville

A couple questions. of

had $X you the the context hit put to cost should thinking operating some profit. how forward? Can quarter that about changes. year-on-year First, and million expand in and slide, you pretty around on some gross operating going leverage There was we you were leverage mentioned productivity weak why on maybe be

Gregory Rustowicz

Yes.

was basis to we facility German our the Kunzelsau. from weighted standard costing adjustment SAP costing system in related in moved a to implemented a basis. average So the We when

So that were changed characterized. how costs

point in resulted the that ago. And XXX that impact essentially million so quarter tailwind And year a basis positive $X was year. last in a

typically than leverage, In operating terms acknowledge it of we we was that weaker would see.

that and we a operating go-forward the our bit in at course in would weaker expect range, And XX% overall. XX% quarter over be this leverage we a expect And year, be had look of when on we basis. XX%, you a to mix We so. entire the it of that the would to

David Wilson

an on incremental basis. And that's

Gregory Rustowicz

Yes.

Matt Summerville

a more. around you you talk And a activity. mentioned -- I color you a maybe a on touch little guess, quoting Can that, bit describe you more now mentioned I say a that little regard? put maybe little it. is can in end record And bit Got specificity. healthy market about few, but forward then, you go how would the more mean, quote of at bit you would And level. kind outlook

David Wilson

Yes. and -- Volumes co-volumes. robust remain

it activity, little see. we quotes say bit the On typically a of the than the shorter cycle year. an increasing I of customers confidence very mentioned which quotation incredibly in we on size are robust, prepared my the an compares that active is when smaller confidence and larger as demand the But in increasing, remain was level remarks, I'd as projects, to where we entered seeing

predictable orders seeing And moving at so are of level we're verticals. forward larger some more with customers, larger across and guess, attractive demand progress I really

for So and material activity the I handling. say. of or capacity demand improving has automation and been demand around defense then seeing a by levels really solutions Sciences as automated the in driving with we is increased very think labor robust. shortages on general, demand, front, expansion driven robustness, the US, EV the remains is macro and in high trends for E-commerce We're The level steady positive. Life robust associated mentioned, I'd remains of really

And the so, side cycle larger the we're I of are for the order demand bullish relates is moving And a think pretty they way as forecasting there forward. Germany to second keeping what we're year. to half and it activity close that short the is particularly the on

Matt Summerville

in Got queue. it. you. back get Thank I'll

David Wilson

Matt. Thanks,

Operator

Jon Securities. from comes And the question Tanwanteng Thank next you. with CJS

Lee Jagoda

morning. Lee it's this Jagoda Hi, for morning. actually Jon Good

David Wilson

morning. Good

Lee Jagoda

into order you backlog, and should I both products quoting Could then margins your little talk commented currently activity? that that on about in guess input maybe So your how earlier more and new pricing and for a bit chain. you supply a little translate

David Wilson

for our cost basis talking to are confirm, about Lee, chain. the input Just supply pricing, you

Lee Jagoda

Yes. Yes. Exactly.

David Wilson

mean, margin costs, relates some for margin position. we seeing of is metals way points with Yes, in it gross seeing XXX we've the comfortable year, prices XX are that improve the to is as We're costs. that cost of basis at feel improvements we which Okay. I as balance logistics to gross the look expansion freight input and the to modeled we what guided profile forecasted our expansion,

that. you to something sure not add I'm if Greg, there's

Gregory Rustowicz

Yes.

that material up $X we pricing was than which inflation. million, $X.X So, with offset ended of million up more overall

year. is last material decelerating So inflation from

million. If would $X be you about annualize the it million, $X

And of accretive company for pricing, continue our inflation confident so margins. overall to will and a we're that net to be positive will material it be the

Lee Jagoda

Great. should coming onshoring opportunity in sales And drive globally then of for US. on the or montratec, markets big couple growth it the I that integrations you montratec sounds things for Can early well. talk pretty like major particular, like about, are more [Technical how going an Difficulty] to years. is the And in growth guess,

David Wilson

Yes. Sure.

So we feel really business. the good about

last across they participation to life relating There and now market demand end increasing that's their of wave diversified battery to heavy primarily we the continue and is automotive is currently really sciences, level to activity include Over from those healthcare, majority see semiconductor vehicle the the underway. manufacturing, of space, markets. couple a years, and opportunity of electronics pharmaceuticals of production. a electric That

certifications their in We can that the on do a broader see believe US. cleanroom their with we that in space the array of semiconductor increased shuttles, markets capacity growth and improvements including

feel Germany well so commercial are And Several and US business teams its and really, the potential both fronts. our taken forward. for the growth have technology we go integration place with to activities and about work that in teams their in meetings really and And as underway. good we

Gregory Rustowicz

Lee, on. And Yeah. just to add

about very in in three a don't from of business double those people in they a this They XX% business the within perspective have either to years. presence XX% We two have strong Asia. their expect Today locations. US, of

years platform also we we half leverage we have our as where be of next have in sales the to the growth our precision here and presence. an team is probably think Asia three that that there's as and going a in opportunity conveyance we significant think well So we US the over

David Wilson

Does that Lee? help,

Lee Jagoda

to I was another Yes, trying question it mute actually. does. ask on

No, service when sorry. in knowing montratec systems installed, so, those about that how and get core versus I'm So, sales the we business? think rest equipment should mostly sales, those -- your your once capital are those -- of recurring

David Wilson

Yes. our average are sales broader revenue the business. today aftermarket for Their and above recurring

and initial should today the XX% and the in expanding grows installed base anticipate that on and to range of so those we And they continue see customers something that's expand adding as their are installations. benefits

Lee Jagoda

Great, very queue. Thank helpful. I'll back hop you. in

David Wilson

Lee. Thanks,

Operator

Thank comes Ferazani next Sidoti. with [Operator question from Instructions] the you. Steve And

Steve Ferazani

Good David, the color for the thanks morning, Greg, on call.

guess Just on as But wanted one sense pieces target. from improvement had get -- mix, your one, we about, to I grows and your in weakness e-commerce provider. a level that would know that level in conveyance strong pretty orders. to confidence in you that contributes. two, that, then conveyance meeting general highlighted is target of pricing? just that big think improvement systems I'm Is faster, gross you've that two more sequential margin you systems I thinking reported the it confidence because

sort to you through just walk of pieces can that. If the

David Wilson

Yes. year will of of drive tied that progress we improvements that the of certainly lot that points be mentioned. major improvement, on very expect in to strategic to year The we net our expect We target the are execution as there phase components. confident obviously this through as expanded and the XXX ability basis that goes XX margins. a confident well. see we're productivity level are improved inflation, well this business execution we of benefits our Greg very And beyond outcome price a a to Steve, balance to as and touched remain in to Right. achieving and on we working deliver our in

segment, there of sell products efforts particular that. expand do we will more conveyance in our precision we from that the coming to and mix business our there as benefits of anticipate progress And do that be

as the seeking so the benefit an and contribute expansion contributing And aggregation we're strategic that see continuing this over of the to that it's those we horizon. items year to planning to

Gregory Rustowicz

we that feel strongest continue leverage the to fact expansion. uptick Yes. quarter seasonal our fact XX basis largest margins XXX perspective, see basis normally that facility make gross with is in pleased and as the the in continues the the -- we Germany the because from a progress quarter fourth business, with a think we And year the we really we good from sequentially through margin were that operating go points our really our and to perspective to point about will productivity XXX expanded

Steve Ferazani

timing this guidance issues And flow if it on mentioned did biggest receivables just, significantly your offered that I impact like sounded for cash related the that But -- flow. you some Perfect. to the which hear Greg, conversion. you could significant looks cash there quarter higher had like you pretty was

two you points. just on those touch could If

Gregory Rustowicz

Yeah.

So you're absolutely right.

So typical sales very June terms, June, We month the not are had our sales and terms. strong XX-day collectible, a of perspective with

so... And

David Wilson

QX. In

Gregory Rustowicz

start also are record Thanks sales but close added expect -- that montratec, and gave or collectible in clarifying. well. are QX system inventory collectible some guidance they record that especially flush I to backlog QX. for we to so of And June our not revenue or on for have to David the we we backlog QX. inventory in with And record guess the as through to would

it's year. have cash for we to last saw first unusual our year So flow negative the for free and not quarter

think ended we conversion. I year strong. was so, very Last flow the And free it year cash XXX%

the more this is the year, than to the because is CapEx benefits think in of perspective. to substantially XX% facilities to million, that's perspective road but like to be have we're and cost guidance so big investments from million ago going a our year which that manufacturing productivity $XX making we our down in XXX% range, higher our will and And it's a $XX us

Steve Ferazani

Great.

other your guiding are Or in of escalate on there Any uses about? you thinking chance $XX good guidance, million repayments. you're based cash still flow, debt pretty for you're but cash that So means pretty, that?

Gregory Rustowicz

No. Yeah.

$XX of US. quarter a we up at that, ended we sitting million that about the quarter of, $XXX -- it ended was had million So the to I we -- say in had was the we cash and want

things on going to levers to we're to it because at So to back down our the cash have where look need is debt. what pay seeing that's pull external we into the one US we of order in

And to marginal I over we'll basis, think today our down further interest extent, rates. rate levers to X.XX%, is I like able will a pay to interest use some excess think that debt, a tax-efficient with we in we're -- the pull cash it's X.XX%. especially

So what return pretty with bank relative the cash world. that's accounts to a we're good having earning in around

Steve Ferazani

Perfect. Thanks, Greg. Thanks, David.

Gregory Rustowicz

Thanks, Steve.

Operator

Walter The Thank Liptak question you. comes next with Seaport from Research.

Walter Liptak

morning, good thanks, guys. Hi,

maybe a Just you're follow be more maybe but shortly on the that there, so? that Is like quarter something here cash last some one. visibility. sounds or of that It expecting the timing repatriation, that next in

Gregory Rustowicz

That's Yes. and cash yes, actively to back expect excess in we us the extent, US. and a can are have key us on. pull would Walt, to -- cash working we for project the I

quarter. it to opportunity use of quarter that's get the the down at absolutely end down to that will pay and debt We an we essentially a pay once

quarters. but interest going not will quarter, it's to the this expense future impact help So in it us

at quarter's This pretty expense million is interest in. $XX well locked

Walter Liptak

Okay. Got it.

they're think much and and you inventory doing of what I distribution Thanks. levels? hearing what okay, -- the go on Okay, of just and I their your a right. all us through -- how but my there channel lot with already channel sales asked, the were distribution but, questions refresh could wonder And from you're if

David Wilson

Thanks, Sure. Yes, Walt. thanks.

the been of to in of some at we've demand and relates it roughly the that simply excess the the aggregate that as business carrying elevated XX% and channel our not distribution had been moves has So backlog given through levels, that inventory on demand. we've basis

potential position demand that being And short-cycle as are it our And that slowdown be any partners could so not the the a where feeling we're in I channel think we're heavily responsible at loaded. in to channel to relates that economy. slowdowns tied is

the longer a very So our channel in not relationship real relates partners working our and closely that channel. our demand, as being has it are I as activity that size, average and partners, to are -- book-to-bill think the that demand. Quotation seeing those timing of size say is lot with has current I been on and partners prudent the the inventory of for high. healthy need but is what the would robust. channel cycle there And been excess to we're is demand quotes The down of quotes is our I think some conversion there's of book-to-bill relates it the as

that's also equipment. to tied times think lead related on I

you in think about this of our of that automation equipment robotic might providers solutions the other systems, the tie may So delivery when from space, our that with systems. delivery into interface

waiting a period elements, might there long-dated delivery times you're book-to-ship book-to-bill times you receipts lead readily order would elements, typically equipment than the in cycle me, later other bit are of where within that a as within If on some get that convert not ordering as they excuse is for in of of elements elements. a so may then our them, fall typically you convert some -- lead those little you for more be the that standard or those quoted and times that quote might that

Walter Liptak

great. Okay,

I when How receivable. I increased July? were the was bit June, note accounts ended strong hear mentioned customers. little that looking? Was your the good among quotes to think tone you in about good a confidence a still It's on level and you of Okay. wonder, July talking business the

David Wilson

achieving midpoint guidance so an range. elevated front, performance at Yes, the execution our as of focused year-over-year on for growth position we've the quarter, backlog which that and at we're rates you healthy on the obviously, aggregate executing very are basis, the look targeted on an from

a demand, beginning period relates of to it softer holiday order in given in a start typically US Europe. As and little would out July the the the holiday period

would we them quotation across serve. remain line healthy that particularly where with robust And is to activity in and verticals so larger demand project and activity, I'd around for the we the say, see profiles discussion very typically expect

Walter Liptak

great. Okay,

that color. thanks Okay, for

Operator

follow-up you. Thank Matt question And from is next Summerville Davidson. a with D.A. the

Matt Summerville

Thanks.

Just respect de-booked? one. you order get mentioned to you cancellation. made prepared a With remarks, that e-commerce the quick Does actually comments some in the

because that, the guess put mentioned backlog a I you I phasing X%, you down was then in see And think little a US. to surprised mentioned. on Maybe point also finer volume I

Gregory Rustowicz

on Yes, US side. the

that a talked that cash, the -- if about orders million of revenue. which removed as in At e-commerce that of and May had we XXst, $X.X in which talked we fiscal the XXXX from received is be in that we either it they backlog, large we So product the had buy Matt, deposit, that were call, March because also customer about of we as the the the additional fact took don't. significant we recognized as received out or used year end they it we will orders of sitting gets customer agreement and

second part of preceding take. business the to US revenue in question. quarter. was as or of decrease project related the related orders, -- question was I'll conveyance And timing of the the Matt. it the second to in It phasing in your the volume part And so of basically the the that

XX% with had phasing the As you in think go we're of as we business, a not quarter the in revenue order have lumpiness in going in the associated did how we some we business US, our we our period conveyance saw up as of period where and for about precision quarter. translates as the revenue precision Clearly, you to into were then conveyance -- order in the first forward. bookings anticipated have much activity into the that business,

a how phase timing phase just and of of bit period, booking into in revenue, a phasing but future in And we order orders they so prior or had the related quarter the that to will revenue. issue

Matt Summerville

me. from you. Got it. That's all Thank

Gregory Rustowicz

Matt. Thanks,

Operator

comments. management Thank question-and-answer you. concludes to would And floor like return to session. closing for the I this any the

David Wilson

a our to everyone the terrific added We are becoming with business the to had Great. solid in we're as achieve start solidly way remain platform our QX precision and headway well. We Thank yet And in today. to industrial you joining track fiscal quarter strategic objectives performer. XX/XX us Keith. our and a We another conveyance the technology you, initiatives. we making on thank excellent top-tier year XXXX on to for to

your day. interest McKinnon you. great a wish Columbus appreciate in We Thank you and

Operator

disconnect you and now Thank Thank you. for lines. now The conference has today's concluded. attending you may presentation your

Columbus McKinnon (CMCO) 2 Aug 232024 Q1 Earnings call transcript