Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022

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BUFFALO, N.Y., May 25, 2022--(BUSINESS WIRE)--Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2022 fourth quarter, which ended March 31, 2022. Results include the additions of Dorner Manufacturing Corporation and Garvey Corporation, which were acquired on April 7, 2021, and December 1, 2021, respectively.

Fourth Quarter and Fiscal Year 2022 Highlights (compared with prior-year periods)

  • Achieved record sales in the quarter with better than expected revenue growth of $67.1 million driven by strong demand in all markets; organic growth was 17% and acquisitions contributed $40.5 million

  • Record quarterly orders of $269.8 million; ended year with record backlog of $309.1 million

  • Net income in the quarter grew 23% to $11.8 million; adjusted EBITDA* expanded 52% to $39.3 million, or 15.4% of revenue

  • Fiscal year 2022 revenue grew 40% to a record $906.6 million and net income more than tripled to $29.7 million, or $1.04 per diluted share; achieved adjusted EPS* of $2.83

  • Significantly transformed business in fiscal 2022 with addition of precision conveying platform, which contributed $144.6 million in sales for the year

  • Continued to demonstrate strong cash generation capabilities with $25.2 million in cash from operations in the quarter and $48.9 million for the fiscal year

David Wilson, President and CEO of Columbus McKinnon, commented, "We delivered exceptional growth as demand for our intelligent motion solutions strengthened throughout the quarter across our end markets. We outpaced our internal growth expectations with innovation, the acceleration of our growth initiatives, and the expansion of our precision conveying platform. In fact, we achieved record sales for both the quarter and the fiscal year."

He added, "We are being deliberate, flexible and creative as we address the persistent macro challenges that the industrial world is facing. While we were successful in outpacing raw material inflation in the quarter and for the fiscal year, gross margin this quarter was heavily impacted by rising freight costs. We are being diligent about addressing inflationary pressures while executing to deliver on growing demand."

*Adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding the reconciliation of GAAP financials to non-GAAP measures.

Fourth Quarter Fiscal 2022 Sales

($ in millions)

Q4 FY 22

Q4 FY 21

Change

% Change

Net sales

$

253.4

$

186.2

$

67.1

36.0

%

U.S. sales

$

149.0

$

94.8

$

54.2

57.2

%

% of total

59

%

51

%

Non-U.S. sales

$

104.4

$

91.4

$

13.0

14.2

%

% of total

41

%

49

%

For the quarter, sales increased $67.1 million, or 36.0%. Acquisitions added $40.5 million in sales, while foreign currency translation had an unfavorable foreign currency translation of $5.0 million, or 2.7% of total sales. In the U.S., volume improved $15.1 million, or 15.9%, and price improved $4.4 million, or 4.7%. U.S. sales related to acquisitions were $34.6 million. Outside the U.S., volume improved $8.1 million, or 8.9%, and price improved $3.9 million, or 4.3%. Acquisitions added $5.9 million of sales outside the U.S.

Fourth Quarter Fiscal 2022 Operating Results

($ in millions)

Q4 FY 22

Q4 FY 21

Change

% Change

Gross profit

$

85.5

$

64.1

$

21.4

33.4

%

Gross margin

33.7

%

34.4

%

(70) bps

Adjusted gross profit*

$

88.7

$

64.4

$

24.3

37.8

%

Adjusted gross margin*

34.8

%

34.6

%

20 bps

Income from operations

$

24.1

$

14.2

$

9.9

69.4

%

Operating margin

9.5

%

7.6

%

190 bps

Adjusted income from operations*

$

28.6

$

18.9

$

9.7

51.6

%

Adjusted operating margin*

11.2

%

10.1

%

110 bps

Net income (loss)

$

11.8

$

9.6

$

2.2

23.4

%

Net income (loss) margin

4.7

%

5.1

%

(40) bps

Diluted EPS

$

0.41

$

0.39

$

0.02

5.1

%

Adjusted EPS*

$

0.79

$

0.60

$

0.19

31.7

%

Adjusted EBITDA*

$

39.3

$

25.8

$

13.5

52.1

%

Adjusted EBITDA margin*

15.4

%

13.9

%

150 bps

*Adjusted gross profit, adjusted gross margin, adjusted income from operations, adjusted operating margin, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding adjusted operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.

Acquisitions added $6.0 million in adjusted operating income. Gross margin for the quarter was dampened by higher inbound freight costs that were incurred to ensure customer requirements were met. Adjusted earnings per diluted share were $0.79 in the fiscal 2022 fourth quarter compared with $0.60 in the prior year. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.

First Quarter Fiscal 2023 Outlook
Columbus McKinnon expects first quarter fiscal 2023 sales of approximately $220 million to $230 million at current exchange rates which year-over-year has an $8 million to $9 million negative impact. Mr. Wilson concluded, "We expect fiscal 2023 to be another great year for Columbus McKinnon. We are transforming the Company into a faster growing, higher margin business that serves secular-driven markets with strong tailwinds. We are heavily focused on execution and remain confident that we are creating a better business model with stronger earnings power."

Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which management 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 investors.columbusmckinnon.com. A question-and-answer session will follow the formal discussion.

The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13728806. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Wednesday, June 1, 2022. 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 intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.

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 sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company’s ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the forward-looking information contained in this release.

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Three Months Ended

March 31, 2022

March 31, 2021

Change

Net sales

$

253,368

$

186,235

36.0

%

Cost of products sold

167,893

122,147

37.5

%

Gross profit

85,475

64,088

33.4

%

Gross profit margin

33.7

%

34.4

%

Selling expenses

27,080

20,820

30.1

%

% of net sales

10.7

%

11.2

%

General and administrative expenses

23,633

22,193

6.5

%

% of net sales

9.3

%

11.9

%

Research and development expenses

4,068

3,702

9.9

%

% of net sales

1.6

%

2.0

%

Amortization of intangibles

6,635

3,174

109.0

%

Income from operations

24,059

14,199

69.4

%

Operating margin

9.5

%

7.6

%

Interest and debt expense

5,352

2,889

85.3

%

Investment (income) loss

578

(264

)

NM

Foreign currency exchange (gain) loss

527

(142

)

NM

Other (income) expense, net

(378

)

769

NM

Income (loss) before income tax expense (benefit)

17,980

10,947

64.2

%

Income tax expense (benefit)

6,154

1,362

351.8

%

Net income (loss)

$

11,826

$

9,585

23.4

%

Average basic shares outstanding

28,507

23,977

18.9

%

Basic income (loss) per share

$

0.41

$

0.40

2.5

%

Average diluted shares outstanding

28,845

24,384

18.3

%

Diluted income (loss) per share

$

0.41

$

0.39

5.1

%

Dividends declared per common share

$

0.13

$

0.12

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Year Ended

March 31, 2022

March 31, 2021

Change

Net sales

$

906,555

$

649,642

39.5

%

Cost of products sold

590,825

429,417

37.6

%

Gross profit

315,730

220,225

43.4

%

Gross profit margin

34.8

%

33.9

%

Selling expenses

99,187

76,907

29.0

%

% of net sales

10.9

%

11.8

%

General and administrative expenses

102,128

76,035

34.3

%

% of net sales

11.3

%

11.7

%

Research and development expenses

15,351

12,405

23.7

%

% of net sales

1.7

%

1.9

%

Amortization of intangibles

25,283

12,623

100.3

%

Income from operations

73,781

42,255

74.6

%

Operating margin

8.1

%

6.5

%

Interest and debt expense

20,126

12,081

66.6

%

Cost of debt refinancing

14,803

NM

Investment (income) loss

(46

)

(1,693

)

(97.3

) %

Foreign currency exchange (gain) loss

1,574

941

67.3

%

Other (income) expense, net

(1,122

)

20,850

NM

Income (loss) before income tax expense (benefit)

38,446

10,076

281.6

%

Income tax expense (benefit)

8,786

970

805.8

%

Net income (loss)

$

29,660

$

9,106

225.7

...

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