Technology

Columbus McKinnon Reports 16% Order Growth in Q2 FY25

Published

2 years ago

October 30, 2024

CHARLOTTE, NC, Oct. 30, 2024 /PRNewswire/ — Columbus McKinnon Corporation (Nasdaq: CMCO) (“Columbus McKinnon” or the “Company”), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2025 second quarter, which ended September 30, 2024.

Second Quarter 2025 Highlights (compared with prior-year period, except where otherwise noted)

Orders increased 16% with a book-to-bill ratio of 1.08x; Precision conveyance up 42%Net sales decreased 6% to $242.3 million reflecting impacts related to Hurricane Helene, the ramp up of linear motion production in Monterrey, MX and project timingResults included $17.5 million2 of non-cash pension settlement expense and $11.8 million2 for factory closure and start-up costs as we transitioned manufacturing to our Monterrey, MX facilityGAAP EPS of ($0.52) and Adjusted EPS1 of $0.70Repaid $10 million of debt in Q2 FY25; Anticipate FY25 debt repayment of $60 million Executed $4.9 million of share repurchases in Q2 FY25 and $5.0 million in early Q3 FY25

“Our commercial and operational initiatives are delivering wins with new and existing customers in attractive vertical markets and we delivered one of our highest order quarters in history with 16% order growth and a book-to-bill ratio of 1.08x in Q2.” said David J. Wilson, President and Chief Executive Officer. “Order growth, with particular strength in precision conveyance, and an encouraging funnel of promising opportunities supports our fiscal 2025 guidance and positions us well for fiscal 2026.”

“But for the impact of Hurricane Helene, we delivered on our guidance for the second quarter while transitioning our linear motion manufacturing activity to Monterrey,” continued Wilson. “We remain confident in our long-term financial objectives and are advancing the strategic initiatives that will both grow our business and deliver targeted margin expansion over time.”

Second Quarter Fiscal 2025 Sales

($ in millions)

Q2 FY25

Q2 FY24

Change

% Change

Net sales

$ 242.3

$ 258.4

$ (16.1)

(6.2) %

U.S. sales

$ 132.3

$ 145.2

$ (12.9)

(8.9) %

% of total

55 %

56 %

Non-U.S. sales

$ 110.0

$ 113.2

$ (3.2)

(2.8) %

% of total

45 %

44 %

For the quarter, net sales decreased $16.1 million, or 6.2%. In the U.S., sales were down $12.9 million, or 8.9%. Price improvement of $1.3 million helped to offset $14.2 million in lower volume. Sales outside the U.S. decreased $3.2 million, or 2.8%. Price improvement of $2.5 million helped to offset $6.0 million of lower volume. Favorable foreign currency translation was $0.3 million.

Second Quarter Fiscal 2025 Operating Results

($ in millions)

Q2 FY25

Q2 FY24

Change

% Change

Gross profit

$ 74.7

$ 100.0

$ (25.2)

(25.2) %

Gross margin

30.9 %

38.7 %

(780) bps

Adjusted Gross Profit1

$ 87.9

$ 100.0

$ (12.0)

(12.0) %

Adjusted Gross Margin1

36.3 %

38.7 %

(240) bps

Income from operations

$ 10.8

$ 33.4

$ (22.5)

(67.6) %

Operating margin

4.5 %

12.9 %

(840) bps

Adjusted Operating Income1

$ 27.0

$ 34.1

$ (7.2)

(21.0) %

Adjusted Operating Margin1

11.1 %

13.2 %

(210) bps

Net income (loss)

$ (15.0)

$ 15.8

$ (30.9)

Net income (loss) margin

(6.2) %

6.1 %

(1,230) bps

GAAP EPS

$ (0.52)

$ 0.55

$ (1.07)

Adjusted EPS1

$ 0.70

$ 0.76

$ (0.06)

(7.9) %

Adjusted EBITDA1

$ 39.2

$ 45.7

$ (6.6)

(14.4) %

Adjusted EBITDA Margin1

16.2 %

17.7 %

(150) bps

Adjusted EPS1 excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability.

Third Quarter Fiscal 2025 Guidance

The Company is issuing the following guidance for the third quarter of fiscal 2025, ending December 31, 2024:

Metric

Q3 FY25

Net sales

Flat year-over-year

Adjusted EPS3

Flat year-over-year

Third quarter 2025 guidance assumes approximately $8 million of interest expense, $8 million of amortization, an effective tax rate of 25% and 28.9 million diluted average shares outstanding.

The Company is issuing the following guidance for the fiscal year 2025, ending March 31, 2025:

Metric

FY25

Net sales

Flat to low-single digit growth year-over-year

Adjusted EPS3

Mid-single digit growth year-over-year

Capital Expenditures

$20 million to $25 million

Net Leverage Ratio3

~2.3x

Fiscal 2025 guidance assumes approximately $32 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding.

Teleconference/Webcast

Columbus McKinnon will host a conference call today at 10:00 AM Eastern Time to discuss the Company’s financial results and strategy. The conference call will be accessible through live webcast and via phone by dialing 1-800-836-8184. The webcast, earnings release and earnings presentation will be available at the Company’s investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company’s investor relations website and available via phone by dialing 1-888-660-6345 and enter the conference ID number 93312# through Wednesday, November 6, 2024.

______________________

Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.

Represents $23.2 million of non-cash pension settlement costs, $11.9 million of expense related to the closure of our Charlotte, NC factory and $3.8 million of Monterrey MX start-up costs, which are taxed at a 24.6% tax rate.

The Company has not reconciled the Adjusted EPS and Net Leverage Ratio guidance to the most comparable GAAP financial measure outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measures. Forward-looking guidance regarding Adjusted EPS and Net Leverage Ratio is made in a manner consistent with the relevant definitions and assumptions noted herein and in alignment with the Company’s financial covenants per the Company’s Amended and Restated Credit Agreement.

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.cmco.com.

Safe Harbor Statement

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “illustrative,” “intend,” “likely,” “may,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including our third quarter and fiscal year 2025 net sales and Adjusted EPS, and our fiscal year 2025 net leverage ratio and capital expenditure guidance; (ii) our operational and financial targets and capital allocation policy; (iii) general economic trend and trends in the industry and markets; (iv) the amount of debt to be paid down by the Company during fiscal year 2025; (v) the estimated costs and benefits related to the consolidation of the Company’s North American linear motion operations in Charlotte, North Carolina to its manufacturing facility in Monterrey, Mexico (vi) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates and judgements; and (vii) the competitive environment in which we operate; are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Contacts:

Gregory P. Rustowicz

Kristine Moser

EVP Finance and CFO

VP IR and Treasurer

Columbus McKinnon Corporation

716-689-5442

704-322-2488

greg.rustowicz@cmco.com

kristy.moser@cmco.com

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements – UNAUDITED

(In thousands, except per share and percentage data)

Three Months Ended

September 30,
2024

September 30,
2023

Change

Net sales

$ 242,274

$ 258,400

(6.2) %

Cost of products sold

167,531

158,424

5.7 %

Gross profit

74,743

99,976

(25.2) %

Gross profit margin

30.9 %

38.7 %

Selling expenses

26,926

26,867

0.2 %

% of net sales

11.1 %

10.4 %

General and administrative expenses

23,363

25,709

(9.1) %

% of net sales

9.6 %

9.9 %

Research and development expenses

6,102

6,541

(6.7) %

% of net sales

2.5 %

Amortization of intangibles

7,547

7,508

0.5 %

Income from operations

10,805

33,351

(67.6) %

Operating margin

4.5 %

12.9 %

Interest and debt expense

8,352

10,211

(18.2) %

Investment (income) loss

(610)

Foreign currency exchange (gain) loss

(792)

1,746

Other (income) expense, net

23,806

393

5,957.5 %

Income (loss) before income tax expense (benefit)

(19,951)

20,913

Income tax expense (benefit)

(4,908)

5,100

Net income (loss)

$ (15,043)

$ 15,813

Average basic shares outstanding

28,869

28,725

0.5 %

Basic income (loss) per share

$ (0.52)

$ 0.55

Average diluted shares outstanding

28,869

29,001

(0.5) %

Diluted income (loss) per share

$ (0.52)

$ 0.55

Dividends declared per common share

$ 0.07

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements – UNAUDITED

(In thousands, except per share and percentage data)

Six Months Ended

September 30,
2024

September 30,
2023

Change

Net sales

$ 482,000

$ 493,892

(2.4) %

Cost of products sold

318,227

307,266

3.6 %

Gross profit

163,773

186,626

(12.2) %

Gross profit margin

34.0 %

37.8 %

Selling expenses

54,696

51,848

5.5 %

% of net sales

11.3 %

10.5 %

General and administrative expenses

49,810

53,152

(6.3) %

% of net sales

10.3 %

10.8 %

Research and development expenses

12,268

12,442

(1.4) %

% of net sales

2.5 %

Amortization of intangibles

15,047

14,385

4.6 %

Income from operations

31,952

54,799

(41.7) %

Operating margin

6.6 %

11.1 %

Interest and debt expense

16,587

18,836

(11.9) %

Investment (income) loss

(819)

(454)

80.4 %

Foreign currency exchange (gain) loss

(398)

2,230

Other (income) expense, net

24,484

605

3,946.9 %

Income (loss) before income tax expense (benefit)

(7,902)

33,582

Income tax expense (benefit)

(1,488)

8,494

Net income (loss)

$ (6,414)

$ 25,088

Average basic shares outstanding

28,852

28,694

0.6 %

Basic income (loss) per share

$ (0.22)

$ 0.87

Average diluted shares outstanding

28,852

28,962

(0.4) %

Diluted income (loss) per share

$ (0.22)

$ 0.87

Dividends declared per common share

$ 0.07

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

September 30,
2024

March 31, 2024

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 55,683

$ 114,126

Trade accounts receivable

170,669

171,186

Inventories

201,036

186,091

Prepaid expenses and other

40,357

42,752

Total current assets

467,745

514,155

Property, plant, and equipment, net

107,258

106,395

Goodwill

717,982

710,334

Other intangibles, net

375,598

385,634

Marketable securities

10,579

11,447

Deferred taxes on income

1,367

1,797

Other assets

96,355

96,183

Total assets

$ 1,776,884

$ 1,825,945

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Trade accounts payable

$ 72,106

$ 83,118

Accrued liabilities

106,847

127,973

Current portion of long-term debt and finance lease obligations

50,704

50,670

Total current liabilities

229,657

261,761

Term loan, AR securitization facility and finance lease obligations

449,910

479,566

Other non current liabilities

201,187

202,555

Total liabilities

$ 880,754

$ 943,882

Shareholders’ equity:

Common stock

287

288

Treasury stock

(5,946)

(1,001)

Additional paid in capital

529,599

527,125

Retained earnings

386,892

395,328

Accumulated other comprehensive loss

(14,702)

(39,677)

Total shareholders’ equity

$ 896,130

$ 882,063

Total liabilities and shareholders’ equity

$ 1,776,884

$ 1,825,945

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows – UNAUDITED

(In thousands)

Six Months Ended

September 30,
2024

September 30,
2023

Operating activities:

Net income (loss)

$ (6,414)

$ 25,088

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization

24,028

22,482

Deferred income taxes and related valuation allowance

(13,662)

(6,097)

Net loss (gain) on sale of real estate, investments and other

(650)

(302)

Non-cash pension settlement

23,201

—

Stock-based compensation

4,175

5,264

Amortization of deferred financing costs

1,244

1,106

Impairment of operating lease

3,268

—

Loss (gain) on hedging instruments

(2)

554

Loss (gain) on disposal of Fixed Assets

418

—

Non-cash lease expense

5,202

4,684

Changes in operating assets and liabilities, net of effects of business acquisitions:

Trade accounts receivable

2,384

(11,409)

Inventories

(12,277)

(22,415)

Prepaid expenses and other

(11,714)

(5,868)

Other assets

183

357

Trade accounts payable

(10,711)

(5,996)

Accrued liabilities

(6,154)

(3,085)

Non-current liabilities

(3,889)

(4,921)

Net cash provided by (used for) operating activities

(1,370)

(558)

Investing activities:

Proceeds from sales of marketable securities

3,153

1,100

Purchases of marketable securities

(1,993)

(1,809)

Capital expenditures

(10,068)

(10,319)

Purchase of businesses, net of cash acquired

—

(108,145)

Dividend received from equity method investment

—

144

Net cash provided by (used for) investing activities

(8,908)

(119,029)

Financing activities:

Proceeds from the issuance of common stock

492

Purchases of treasury stock

(4,945)

—

Repayment of debt

(30,326)

(25,294)

Proceeds from issuance of long-term debt

—

120,000

Fees paid for borrowings on long-term debt

—

(2,859)

Payment to former owners of montratec

(6,711)

—

Fees paid for debt repricing

(169)

—

Cash inflows from hedging activities

11,862

12,084

Cash outflows from hedging activities

(11,809)

(12,660)

Payment of dividends

(4,038)

(4,015)

Other

(1,789)

(1,954)

Net cash provided by (used for) financing activities

(47,839)

85,794

Effect of exchange rate changes on cash

(326)

(325)

Net change in cash and cash equivalents

(58,443)

(34,118)

Cash, cash equivalents, and restricted cash at beginning of year

$ 114,376

$ 133,426

Cash, cash equivalents, and restricted cash at end of period

$ 55,933

$ 99,308

COLUMBUS McKINNON CORPORATION

Q2 FY 2025 Net Sales Bridge

Quarter

Year To Date

($ in millions)

$ Change

% Change

$ Change

% Change

Fiscal 2024 Net Sales

$ 258.4

$ 493.9

Acquisition

—

— %

2.7

0.5 %

Pricing

3.8

1.5 %

7.3

1.5 %

Volume

(20.2)

(7.8) %

(21.6)

(4.4) %

Foreign currency translation

0.3

0.1 %

(0.3)

— %

Total change

$ (16.1)

(6.2) %

$ (11.9)

(2.4) %

Fiscal 2025 Net Sales

$ 242.3

$ 482.0

COLUMBUS McKINNON CORPORATION

Q2 FY 2025 Gross Profit Bridge

($ in millions)

Quarter

Year To Date

Fiscal 2024 Gross Profit

$ 100.0

$ 186.6

Acquisition

—

0.8

Price, net of manufacturing costs changes (incl. inflation)

0.1

3.5

Monterrey, MX new factory start-up costs

(2.2)

(3.8)

Factory and warehouse consolidation costs

(10.8)

Sales volume and mix

(12.3)

(12.1)

Other

(0.3)

(0.5)

Foreign currency translation

0.2

0.1

Total change

(25.3)

(22.8)

Fiscal 2025 Gross Profit

$ 74.7

$ 163.8

U.S. Shipping Days by Quarter

Total

FY25

249

FY24

248

COLUMBUS McKINNON CORPORATION

Additional Data1

(Unaudited)

Period Ended

September 30,

2024

June 30,
2024

March 31,
2024

September 30,

2023

($ in millions)

Backlog

$ 317.6

$ 292.8

$ 280.8

$ 317.7

Long-term backlog

Expected to ship beyond 3 months

$ 172.5

$ 156.0

$ 144.6

$ 148.3

Long-term backlog as % of total backlog

54.3

53.3

51.5

46.7

Debt to total capitalization percentage

35.8

36.6

37.5

39.8

Debt, net of cash, to net total capitalization

33.2

33.3

32.0

35.3

Working capital as a % of sales 2

23.3

22.5

19.1

21.8

Three Months Ended

September 30,

2024

June 30,
2024

March 31,
2024

September 30,

2023

($ in millions)

Trade accounts receivable

Days sales outstanding

64.1

days

63.3

days

58.7

days

58.6

days

Inventory turns per year

(based on cost of products sold)

3.3

turns

3.0

turns

3.7

turns

3.1

turns

Days’ inventory

110.6

days

121.7

days

98.6

days

117.7

days

Trade accounts payable

Days payables outstanding

46.3

days

50.6

days

50.9

days

48.3

days

Net cash provided by (used for) operating activities

$ 9.4

$ (10.8)

$ 38.6

$ 16.7

Capital expenditures

$ 5.4

$ 4.6

$ 8.5

$ 5.0

Free Cash Flow 3

$ 4.0

$ (15.4)

$ 30.1

$ 11.7

______________________

Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company’s financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding.

March 31, 2024 and September 30, 2023 exclude the impact of the acquisition of montratec®.

Free Cash Flow is a non-GAAP financial measure. Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. See the table above for the calculation of Free Cash Flow.

NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Gross Profit to Adjusted Gross Profit

($ in thousands)

Three Months Ended

Six Months Ended

September 30,

2024

September 30,

2023

September 30,

2024

September 30,

2023

Gross profit

$ 74,743

$ 99,976

$ 163,773

$ 186,626

Add back (deduct):

Business realignment costs

—

468

196

Hurricane Helene cost impact

171

—

171

—

Factory and warehouse consolidation costs

10,763

—

10,763

—

Monterrey, MX new factory start-up costs

2,185

—

3,810

—

Adjusted Gross Profit

$ 87,938

$ 99,976

$ 178,985

$ 186,822

Net sales

$ 242,274

$ 258,400

$ 482,000

$ 493,892

Gross margin

30.9 %

38.7 %

34.0 %

37.8 %

Adjusted Gross Margin

36.3 %

38.7 %

37.1 %

37.8 %

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s gross profit and gross margin to the historical periods’ gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit and gross margin to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Income from Operations to Adjusted Operating Income

($ in thousands)

Three Months Ended

Six Months Ended

September 30,

2024

September 30,

2023

September 30,

2024

September 30,

2023

Income from operations

$ 10,805

$ 33,351

$ 31,952

$ 54,799

Add back (deduct):

Acquisition deal and integration costs

—

508

—

3,095

Business realignment costs

281

1,131

415

Factory and warehouse consolidation costs

11,904

199

Headquarter relocation costs

146

147

1,374

Hurricane Helene cost impact

171

—

171

—

Monterrey, MX new factory start-up costs

3,751

—

7,317

—

Adjusted Operating Income

$ 26,963

$ 34,127

$ 52,622

$ 59,882

Net sales

$ 242,274

$ 258,400

$ 482,000

$ 493,892

Operating margin

4.5 %

12.9 %

6.6 %

11.1 %

Adjusted Operating Margin

11.1 %

13.2 %

10.9 %

12.1 %

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Income and Diluted Earnings per Share to

Adjusted Net Income and Adjusted Earnings per Share

($ in thousands, except per share data)

Three Months Ended

Six Months Ended

September 30,

2024

September 30,

2023

September 30,

2024

September 30,

2023

Net income (loss)

$ (15,043)

$ 15,813

$ (6,414)

$ 25,088

Add back (deduct):

Amortization of intangibles

7,547

7,508

15,047

14,385

Acquisition deal and integration costs

—

508

—

3,095

Business realignment costs

281

1,131

415

Factory and warehouse consolidation costs

11,904

199

Headquarter relocation costs

146

147

1,374

Hurricane Helene cost impact

171

—

171

—

Monterrey, MX new factory start-up costs

3,751

—

7,317

—

Non-cash pension settlement expense

23,201

—

23,201

—

Normalize tax rate 1

(11,647)

(2,199)

(14,242)

(4,768)

Adjusted Net Income

$ 20,216

$ 21,898

$ 38,262

$ 39,788

GAAP average diluted shares outstanding

28,869

29,001

28,852

28,962

Add back:

Effect of dilutive share-based awards

205

—

253

—

Adjusted Diluted Shares Outstanding

$ 29,074

$ 29,001

$ 29,105

$ 28,962

GAAP EPS

$ (0.52)

$ 0.55

$ (0.22)

$ 0.87

Adjusted EPS

$ 0.70

$ 0.76

$ 1.31

$ 1.37

Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of current periods’ net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods’ net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company’s net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Income to Adjusted EBITDA

($ in thousands)

Three Months Ended

Six Months Ended

September 30,

2024

September 30,

2023

September 30,

2024

September 30,

2023

Net income (loss)

$ (15,043)

$ 15,813

$ (6,414)

$ 25,088

Add back (deduct):

Income tax expense (benefit)

(4,908)

5,100

(1,488)

8,494

Interest and debt expense

8,352

10,211

16,587

18,836

Investment (income) loss

(610)

(819)

(454)

Foreign currency exchange (gain) loss

(792)

1,746

(398)

2,230

Other (income) expense, net

23,806

393

24,484

605

Depreciation and amortization expense

12,188

11,592

24,028

22,482

Acquisition deal and integration costs

—

508

—

3,095

Business realignment costs

281

1,131

415

Factory and warehouse consolidation costs

11,904

199

Headquarter relocation costs

146

147

1,374

Hurricane Helene cost impact

171

—

171

—

Monterrey, MX new factory start-up costs

3,751

—

7,317

—

Adjusted EBITDA

$ 39,151

$ 45,719

$ 76,650

$ 82,364

Net sales

$ 242,274

$ 258,400

$ 482,000

$ 493,892

Net income margin

(6.2) %

6.1 %

(1.3) %

5.1 %

Adjusted EBITDA Margin

16.2 %

17.7 %

15.9 %

16.7 %

Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not a measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Leverage Ratio

($ in thousands)

Twelve Months Ended

September 30,

2024

September 30,

2023

Net income (loss)

$ 15,123

$ 51,012

Add back (deduct):

Annualize EBITDA for the montratec acquisition1

—

5,410

Annualize synergies for the montratec acquisition1

—

293

Income tax expense (benefit)

4,920

20,694

Interest and debt expense

35,708

33,807

Non-cash pension settlement

28,185

—

Amortization of deferred financing costs

2,487

1,967

Stock Compensation Expense

10,950

12,060

Depreciation and amortization expense

47,491

43,536

Cost of debt refinancing

1,190

—

Acquisition deal and integration costs

116

3,606

Excluded acquisition deal and integration costs2

—

(510)

Business realignment costs

2,583

2,664

Excluded business realignment costs2

—

(2,249)

Factory and warehouse consolidation costs

12,449

199

Garvey contingent consideration

—

1,230

Headquarter relocation costs

832

2,370

Monterrey, MX new factory start-up costs

11,806

—

Excluded Monterrey, MX new factory start-up costs3

(3,664)

—

Credit Agreement Trailing Twelve Month Adjusted EBITDA

$ 170,176

$ 176,089

Current portion of long-term debt and finance lease obligations

$ 50,704

$ 50,636

Term loan, AR securitization facility and finance lease obligations

449,910

514,205

Total debt

$ 500,614

$ 564,841

Standby Letters of Credit

15,692

15,525

Cash and cash equivalents

(55,683)

(99,058)

Net Debt

$ 460,623

$ 481,308

Net Leverage Ratio

2.71x

2.73x

EBITDA is normalized to include a full year of the acquired entity and assumes all cost synergies are achieved in TTM Q2 FY24.

The Company’s credit agreement definition of Adjusted EBITDA excludes certain acquisition deal and integration costs and business realignment costs that are incurred beyond one year after the close of an acquisition.

The Company’s credit agreement definition of Adjusted EBITDA excludes certain Monterrey, MX factory start-up costs.

Net Debt is defined in the credit agreement as total debt plus standby letters of credit, net of cash and cash equivalents. Net Leverage Ratio is defined as Net Debt divided by the Credit Agreement Trailing Twelve Month Adjusted EBITDA. Credit Agreement Trailing Twelve Month Adjusted EBITDA is defined as net income adjusted for interest expense, income taxes, depreciation, amortization, and other adjustments. Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are important for investors and other readers of the Company’s financial statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/columbus-mckinnon-reports-16-order-growth-in-q2-fy25-302291065.html

SOURCE Columbus McKinnon Corporation

Technology

New Datingsmatch Survey: 1 in 5 Users Say a Wink Led to a Conversation

Published

32 minutes ago

July 19, 2026

New findings from a Datingsmatch.com user survey show that the smallest gestures are doing more of the communication work than most people realize.

GIBRALTAR, July 19, 2026 /PRNewswire-PRWeb/ — People tend to think about opening messages as the moment a conversation actually starts online. The carefully worded introduction, the line someone spent time writing and then rewrote. What the data from a recent Datingsmatch survey points to is something different: for a meaningful share of users, none of that is where things began. It began with a wink.

According to the survey, 1 in 5 users of Datingsmatch reported that a wink was what got a conversation going. One-fifth of respondents, spread across different age groups and usage habits, identified that a single small gesture as the moment something actually started between two people.

What the Datingsmatch Survey Found

The survey was conducted among 5,000 users of the Datingsmatch online communication platform in June 2026, with participants asked to voluntarily share their experiences. The aim was to get a clearer picture of how conversations tend to begin, what it is that people hesitate about, and what eventually prompts someone to go ahead and reach out.

The wink finding was among the more consistent findings from the responses. Among users who described a conversation they felt good about, a notable portion were able to trace it back to a wink being sent first, whether they had sent it or received it. The reverse situation, where someone sent a cold message with no prior signal of any kind, was something respondents described as harder on both sides of the exchange.

That tracks with what broader research also points to. A 2023 Pew Research Center survey found that 55% of online daters felt insecure about the number of messages they received, and 36% felt overwhelmed by incoming contact. What that suggests is not that people don’t want to connect — it’s that the way contact gets initiated matters a great deal for how it lands.

Why Small Signals Carry More Weight Than They Seem

The Datingsmatch survey also looked at what stops people from reaching out when they want to. Uncertainty came up repeatedly. Not knowing whether someone is open to hearing from you. Not wanting to guess wrong and feel like you’ve overstepped.

What respondents described is not a lack of interest in connecting. It’s the absence of a clear enough signal that the other person is open to it. A Datingsmatch wink feature provides exactly that. It’s visible, unambiguous, and low-commitment enough that neither person has to feel exposed by it. For those still finding their footing on the platform, the beginner’s guide to the Datingsmatch platform walks through how these features work and how to use them effectively.

This connects to a 2024 study published in the journal Cyberpsychology, Behavior, and Social Networking that examined online rejection: ghosting was the most common form of rejection in digital communication, even after substantial prior exchanges. The fear that a message will simply be ignored — without any acknowledgment — is a real barrier. A lower-stakes signal reduces that barrier because the cost of no response feels smaller.

Datingsmatch notes, based on what survey participants shared, that this kind of low-friction signal seems to work differently than most people expect. It doesn’t just start conversations. It seems to reduce the gap that many users described feeling between “I want to reach out” and “I actually did.”

How People Actually Use the Wink Feature on Datingsmatch

Survey responses offered a more specific picture of the behavior. Winks were not being used randomly or as a form of mass outreach. Respondents described using them deliberately, on users they had spent time looking at, toward people they were genuinely interested in but not yet sure about approaching with a message.

Some users described sending a wink as a way of checking whether there was any openness to further contact, without having to commit to a full message exchange in order to find out. Others who had been on the receiving end of a wink said it was something they found easier to respond to, in part because it did not feel like it was asking too much of them too soon. There were also respondents who noted that when a wink had gone back and forth between two people, the first actual message felt less like an approach out of nowhere and more like a natural continuation of something that had already started.

Datingsmatch customer service regularly hears from users that knowing how to start a conversation is one of the things people think about most when they first join the platform. The survey data puts some numbers to what those conversations have long suggested.

What This Means for How the Platform Thinks About Connection

Datingsmatch highlights that findings like these shape how the platform continues to think about the role of small, low-pressure interactions in the overall experience. A conversation that begins with a wink is not a lesser conversation. Survey respondents who traced their most valued exchanges back to a wink described those conversations in consistently positive terms.

The platform sees value in giving users multiple ways to signal interest at different levels of commitment. A message is a commitment. A wink is an invitation. Both have a place, and the data suggests that for a meaningful portion of users, the invitation comes first and matters more than it might look like from the outside.

About Datingsmatch

Datingsmatch is an online communication platform that gives people a range of ways to connect online. The platform is built around the idea that how a conversation starts shapes everything that follows, and that not every interaction needs to begin with a message. Datingsmatch operates globally and continues to develop its communication tools based on how users actually engage with each other.

Media Contact

Elizabeth Fielden, Datingsmatch, 1 5869132511, review@datingsmatch.com, https://datingsmatch.com/

View original content:https://www.prweb.com/releases/new-datingsmatch-survey-1-in-5-users-say-a-wink-led-to-a-conversation-302828676.html

SOURCE Datingsmatch

Technology

Pudu Robotics Showcases Full Product Portfolio at WAIC 2026, Winning the “Most Investor-Attractive Enterprise” Award

Published

4 hours ago

July 19, 2026

SHANGHAI, July 19, 2026 /PRNewswire/ — Pudu Robotics, a global leader in commercial service robotics, is showcasing its full portfolio of intelligent robotics solutions at the 2026 World Artificial Intelligence Conference (WAIC), held from July 17–20 in Shanghai. A key highlight of this year’s exhibition is the offline global debut of the PUDU D7, Pudu’s next-generation semi-humanoid robot. In tandem with its exhibition highlights, Pudu Robotics was also honored with the 36Kr “Most Investor-Attractive AI & Embodied Intelligence Enterprise” Award, recognizing the company’s growing influence in the embodied AI sector and continued confidence from the investment community.

Full Product Matrix on Display: Demonstrating Multi-Scenario Capabilities

Pudu’s comprehensive presentation at WAIC 2026 showcased its complete technical and product layout, spanning service delivery, commercial cleaning, industrial delivery, and general embodied intelligence.

The PUDU D5 quadruped robot demonstrates advanced terrain adaptability and autonomous navigation across an on-site obstacle course mimicking sand, gravel, steps, and slopes, simulating autonomous inspections in complex environments such as power substations and industrial parks. Additionally, the D5 performed high-speed “drifting” demonstrations at the booth, reaching peak speeds of up to 5 m/s and showcasing industry-leading mobility and responsiveness.

Making its global offline public debut, the PUDU D7 engaged visitors with several immersive and interactive live experiences. Attendees posed for photos with the D7, instantly receiving unique snapshots taken directly from a “robotics perspective.” The robot also demonstrated advanced multi-robot coordination by autonomously walking and guiding the PUDU D5 quadruped around the booth while seamlessly avoiding pedestrian traffic, vividly illustrating collaborative workflows between different robotic form factors.

Pudu is also exhibiting its mature commercial robotics portfolio, including the BellaBot service delivery robot, the PUDU T300 industrial delivery robot, and the PUDU MT1 Max and PUDU CC1 Pro commercial cleaning robots. Together, these products highlight Pudu’s proven deployments across hospitality, retail, F&B, manufacturing, warehousing, and other industries.

Winning the “Most Investor-Attractive Enterprise” Award Amid Sustained Capital Traction

The “Most Investor-Attractive Enterprise” award from 36Kr arrives alongside sustained backing from major global institutional investors. In April 2026, Pudu Robotics completed a new financing round of nearly USD 150 million, bringing its valuation to more than USD 1.5 billion. This brings Pudu’s cumulative funding to more than USD 300 million.

This strong capital interest is supported by concrete commercial performance. According to the “2025 Global Embodied Intelligence and Commercial Service Robotics Independent Market Research Report” released by Frost & Sullivan, Pudu Robotics accounts for 25% and 23% of the global commercial service robotics market in terms of revenue and shipments respectively, ranking No. 1 worldwide in both categories. Furthermore, Pudu Robotics has maintained a year-over-year revenue growth rate exceeding 100%, with international markets accounting for more than 80% of total revenue for consecutive years. While the broader Embodied AI industry remains in early exploratory phases, Pudu has approached a positive EBITDA, achieving large-scale commercial viability ahead of the market.

From Product Export to Ecosystem Integration: A Blueprint for Global Expansion

According to the Research Report on Chinese Enterprises’ Overseas Expansion from 2025 to 2026 published by the 36Kr Research Institute, Pudu Robotics was featured as a primary benchmark case study for Embodied AI. The report attributes Pudu’s international success to its systematic combination of technological innovation, product capabilities, and localized global operation. Analysts noted that Pudu has successfully transitioned from exporting products to exporting global brand equity and integrated robotics ecosystems, establishing a core reference blueprint for hard-tech global expansion.

By deploying versatile product forms that span specialized, semi-humanoid, and humanoid forms, Pudu Robotics continues to focus on integrating Embodied AI directly into real-world environments—transforming Physical AI from a technical concept into a practical productivity partner.

About Pudu Robotics

Pudu Robotics, a global leader in the commercial service robotics sector, is dedicated to empowering easier work and better lives through AI and robotics, with a vision of building a global intelligent robotics infrastructure that serves 10 billion people worldwide.

Pudu Robotics has developed key core technologies and components, including robotic joint modules and motion controllers, and has filed more than 1,900 patent applications worldwide. Built on three core technologies—Embodied Navigation, Embodied Manipulation, and Embodied Interaction—Pudu Robotics has pioneered a “One Brain, Multiple Embodiments” architecture, establishing a comprehensive product portfolio that includes specialized, semi-humanoid, and humanoid robots.

Currently, Pudu offers four major product lines: service delivery, commercial cleaning, industrial delivery and general embodied AI. Its solutions are widely deployed across industries such as retail, hospitality, manufacturing, real estate and property services, healthcare, entertainment and sport, education, and public services.

To date, Pudu Robotics has shipped over 130,000 units globally, with a presence in more than 85 countries and regions.

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SOURCE Pudu Robotics

Technology

Best AI Productivity Tools for Creators (2026): CapCut Recognized for Faster Video and Image Workflows by Software Experts

Published

5 hours ago

July 19, 2026

NEW YORK, July 19, 2026 /PRNewswire/ — Artificial intelligence continues to reshape how digital content is produced, with creators relying on AI tools like CapCut to handle editing, asset generation, and repetitive production tasks that once required several separate applications. As these tools mature, software reviews are placing more weight on workflow efficiency alongside creative output.

Best AI Productivity Tools for Creators

Seedance 2.0 – an AI video generation model that creates videos from text prompts and image inputsPhoto to 3D – an AI tool that transforms 2D photos into images with realistic three-dimensional depth and effects

The use of AI has expanded across independent creators, marketing teams, educators, and small businesses producing content for websites, social media, online stores, and digital campaigns. Rather than using AI for a single task, many creative professionals now incorporate it throughout the production process, from generating concepts and visuals to refining finished content. This has encouraged software reviewers to test how well platforms support complete creative workflows instead of evaluating individual features in isolation.

Software Experts has included CapCut among its 2026 selections for AI productivity tools for creators, citing the platform’s collection of AI-powered features that support faster video and image production. The review examined how integrated AI tools can simplify common creative tasks across video editing, image generation, music creation, and visual enhancement.

What Is Driving Interest in AI Productivity Tools?

Content creators are producing more material than ever across short-form video platforms, social media, online stores, blogs, newsletters, and marketing campaigns. A single project may require multiple image formats, several video versions, captions, background edits, and audio, all within a short production window.

Many creators also repurpose one piece of content into several formats. A long-form video may be edited into short clips for social platforms, paired with custom graphics, accompanied by AI-generated music, and published alongside promotional images. Completing these tasks manually often requires switching between multiple editing applications.

This has encouraged software developers to introduce AI features that reduce manual editing while keeping creators in control of the finished product. Instead of switching between several applications, many creators now prefer platforms that support multiple stages of production within the same workspace.

How Does CapCut Support Video and Image Workflows?

CapCut offers AI tools that assist throughout the creative process, from generating visual assets to preparing finished content for publishing.

Among the tools included are:

Seedance 2.0 for generating AI videos from text promptsGPT Image 2 for creating images from written descriptionsSeedream for AI-generated artwork and creative visualsSeedmusic for producing original music from text promptsAI Image Extender for expanding images while preserving visual consistencyPhoto to 3D for adding depth effects to imagesAI Background Removal for separating subjects from image backgrounds with minimal editing

Together, these features support projects ranging from social media posts and marketing materials to promotional videos, educational content, presentations, and visual concepts, allowing creators to complete more production tasks within a single platform.

Why Are Integrated AI Platforms Receiving More Coverage?

Earlier AI tools often specialized in a single task, such as image generation or video editing. Newer platforms are bringing these functions together to let creators complete more of their work without transferring files between multiple services.

This type of workflow can shorten production time while helping maintain visual consistency across different content formats. It can also reduce the amount of time spent exporting files, reformatting assets, or rebuilding projects in separate applications.

As a result, software evaluations are increasingly examining how efficiently creators can complete everyday production work. Instead of concentrating solely on the number of AI features available, reviewers are also looking at how those tools function together during real-world creative projects.

What Did Software Experts Evaluate?

The review looked at AI tools that support practical creative work across multiple production stages rather than concentrating on a single feature.

Areas included in the evaluation included:

AI-assisted video generationText-to-image creationAI-generated musicBackground removalImage expansionThree-dimensional visual effectsEditing tools that support faster creative workflows

The review also examined how these features work together during typical content production rather than evaluating each tool separately. This reflects the way many creators now build content using interconnected AI tools instead of isolated editing software.

What Does This Mean for Creators?

Creative software continues to incorporate AI across more stages of content production, giving creators additional ways to streamline editing while maintaining creative control. As publishing schedules become more demanding, workflow efficiency has entered software evaluations alongside editing quality and creative flexibility.

Software Experts’ 2026 review places CapCut among AI productivity tools supporting faster video and image workflows through its collection of AI-powered creative features. As AI continues to influence digital content production, reviews are placing emphasis on how effectively platforms help creators complete everyday projects from concept through final publication.

To read the full review, please visit the Software experts website.

About CapCut

CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.

About Software Experts: Software Experts delivers in-depth news on the digital tools shaping today’s consumer experience. As an affiliate, Software Experts may earn commissions from sales generated using links provided.

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SOURCE SoftwareExperts.org