Columbus Mckinnon Corp 8-K, filed May 26, 2021

Columbus Mckinnon Corp (CMCO)

8-K 2021-05-26 For: 2021-05-26

Added on April 08, 2026

About this 8-K

Columbus Mckinnon Corp filed this 8-K on May 26, 2021.


001-34362						16-0547600
(Commission File Number)						(IRS Employer Identification No.)


205 Crosspoint Parkway	Buffalo	NY	14068
(Address of principal executive offices)			(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	CMCO	Nasdaq Global Select Market


EXHIBIT NUMBER						DESCRIPTION

99.1						Press Release dated May 26, 2021
99.2						Earnings call slides dated May 26, 2021
104						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


COLUMBUS McKINNON CORPORATION

By:			/s/ Gregory P. Rustowicz
Name:			Gregory P. Rustowicz
Title:			Vice President Finance and Chief Financial Officer
			(Principal Financial Officer)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


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


	Three Months Ended
	March 31, 2021			March 31, 2020			Change
Net sales	$	186,235		$	189,486		(1.7)	%
Cost of products sold	122,147			123,277			(0.9)	%
Gross profit	64,088			66,209			(3.2)	%
Gross profit margin	34.4		%	34.9		%
Selling expenses	20,820			22,253			(6.4)	%
% of net sales	11.2		%	11.7		%
General and administrative expenses	22,193			21,167			4.8	%
% of net sales	11.9		%	11.2		%
Research and development expenses	3,702			2,891			28.1	%
% of net sales	2.0		%	1.5		%
Amortization of intangibles	3,174			3,234			(1.9)	%
Income from operations	14,199			16,664			(14.8)	%
Operating margin	7.6		%	8.8		%
Interest and debt expense	2,889			3,200			(9.7)	%
Investment (income) loss	(264)			48			NM
Foreign currency exchange (gain) loss	(142)			(996)			(85.7)	%
Other (income) expense, net	769			221			248.0	%
Income (loss) before income tax expense (benefit)	10,947			14,191			(22.9)	%
Income tax expense (benefit)	1,362			4,947			(72.5)	%
Net income	$	9,585		$	9,244		3.7	%

Average basic shares outstanding	23,977			23,735			1.0	%
Basic income per share	$	0.40		$	0.39		2.6	%

Average diluted shares outstanding	24,384			23,938			1.9	%
Diluted income per share	$	0.39		$	0.39		—	%

Dividends declared per common share	$	0.12		$	0.12


	Year Ended
	March 31, 2021			March 31, 2020			Change
Net sales	$	649,642		$	809,162		(19.7)	%
Cost of products sold	429,417			525,976			(18.4)	%
Gross profit	220,225			283,186			(22.2)	%
Gross profit margin	33.9		%	35.0		%
Selling expenses	76,907			91,054			(15.5)	%
% of net sales	11.8		%	11.3		%
General and administrative expenses	76,035			77,880			(2.4)	%
% of net sales	11.7		%	9.6		%
Research and development expenses	12,405			11,310			9.7	%
% of net sales	1.9		%	1.4		%
Loss on sales of businesses	—			176			NM
Amortization of intangibles	12,623			12,942			(2.5)	%
Income from operations	42,255			89,824			(53.0)	%
Operating margin	6.5		%	11.1		%
Interest and debt expense	12,081			14,234			(15.1)	%
Investment (income) loss	(1,693)			(891)			90.0	%
Foreign currency exchange (gain) loss	941			(1,514)			NM
Other (income) expense, net	20,850			839			2,385.1	%
Income (loss) before income tax expense (benefit)	10,076			77,156			(86.9)	%
Income tax expense (benefit)	970			17,484			(94.5)	%
Net income	$	9,106		$	59,672		(84.7)	%

Average basic shares outstanding	23,897			23,619			1.2	%
Basic income per share	$	0.38		$	2.53		(85.0)

Average diluted shares outstanding	24,173			23,855			1.3	%
Diluted income per share	$	0.38		$	2.50		(84.8)

Dividends declared per common share	$	0.24		$	0.24


	March 31, 2021		March 31, 2020
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	202,127	$	114,450
Trade accounts receivable	105,464		123,743
Inventories	111,488		127,373
Prepaid expenses and other	22,763		17,180
Total current assets	441,842		382,746

Property, plant, and equipment, net	74,753		79,473
Goodwill	331,176		319,679
Other intangibles, net	213,362		217,962
Marketable securities	7,968		7,322
Deferred taxes on income	20,080		26,281
Other assets	61,251		59,809
Total assets	$	1,150,432	$	1,093,272

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	68,593	$	57,289
Accrued liabilities	110,816		93,585
Current portion of long-term debt	4,450		4,450
Total current liabilities	183,859		155,324

Term loan and revolving credit facility	244,504		246,856
Other non-current liabilities	191,920		227,507
Total liabilities	620,283		629,687

Shareholders’ equity:
Common stock	240		238
Additional paid-in capital	296,093		287,256
Retained earnings	293,802		290,441
Accumulated other comprehensive loss	(59,986)		(114,350)
Total shareholders’ equity	530,149		463,585
Total liabilities and shareholders’ equity	$	1,150,432	$	1,093,272


	Quarter				Year To Date
($ in millions)	$ Change		% Change		$ Change		% Change
Fiscal 2020 Sales	$	189.5			$	809.2
Volume	(11.1)		(5.8)	%	(177.3)		(21.9)	%
Pricing	1.9		1.0	%	8.6		1.1	%
Foreign currency translation	5.9		3.1	%	9.1		1.1	%
Total change	$	(3.3)	(1.7)	%	$	(159.6)	(19.7)	%
Fiscal 2021 Sales	$	186.2			$	649.6


Item 2.02			RESULTS OF OPERATIONS AND FINANCIAL CONDITION.


Item 7.01			REGULATION FD DISCLOSURE.


Item 9.01			FINANCIAL STATEMENTS AND EXHIBITS.


($ in millions)	Q4 FY 21			Q4 FY 20			Change		% Change
Gross profit	$	64.1		$	66.2		$	(2.1)	(3.2)	%
Gross margin	34.4		%	34.9		%	(50) bps
Income from operations	$	14.2		$	16.7		$	(2.5)	(14.8)	%
Operating margin	7.6		%	8.8		%	(120) bps
Adjusted income from operations*	$	18.9		$	20.2		$	(1.3)	(6.5)	%
Adjusted operating margin*	10.1		%	10.7		%	(60) bps
Net income	$	9.6		$	9.2		$	0.3	3.7	%
Diluted EPS	$	0.39		$	0.39		$	—	—	%
Net income margin	5.1		%	4.9		%	20 bps
Adjusted EBITDA*	$	25.8		$	27.3		$	(1.5)	(5.5)	%
Adjusted EBITDA margin*	13.9		%	14.4		%	(50) bps


	March 31, 2021			December 31, 2020			March 31, 2020
($ in millions)
Backlog	$	171.7		$	152.4		$	131.0
Long-term backlog
Expected to ship beyond 3 months	$	68.0		$	62.1		$	49.1
Long-term backlog as % of total backlog	39.6		%	40.7		%	37.5		%

Trade accounts receivable
Days sales outstanding	51.5		days	51.5		days	59.4		days

Inventory turns per year
(based on cost of products sold)	4.4		turns	3.9		turns	3.9		turns
Days' inventory	83.3		days	93.1		days	94.3		days

Trade accounts payable
Days payables outstanding	58.7		days	46.4		days	48.6		days

Working capital as a % of sales	9.3		%	13.3		%	14.5		%

Net cash provided by (used for) operating activities	$	26.9		$	25.0		$	36.5
Capital expenditures	$	6.4		$	3.1		$	2.7
Free cash flow (1)	$	20.5		$	21.9		$	33.9

Debt to total capitalization percentage	32.0		%	33.4		%	35.2		%

Debt, net of cash, to net total capitalization	8.1		%	11.1		%	22.8		%


	Three Months Ended March 31,						Year Ended March 31,
	2021			2020			2021			2020
GAAP gross profit	$	64,088		$	66,209		$	220,225		$	283,186
Add back (deduct):
Factory closures	—			1,349			2,671			2,800
Business realignment costs	264			774			830			1,037
Insurance settlement	—			(15)			—			(382)
Gain on sale of building	—			—			(2,189)			—
Non-GAAP adjusted gross profit	$	64,352		$	68,317		$	221,537		$	286,641

Sales	$	186,235		$	189,486		$	649,642		$	809,162
Gross margin - GAAP	34.4		%	34.9		%	33.9		%	35.0		%
Adjusted gross margin - Non-GAAP	34.6		%	36.1		%	34.1		%	35.4		%