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Columbus McKinnon Reports 16% Order Growth in Q2 FY25

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2 years ago

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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)

NM

     Net income (loss) margin

(6.2) %

6.1 %

(1,230) bps

GAAP EPS

$     (0.52)

$      0.55

$        (1.07)

NM

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.

______________________

1 

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.

2

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.

3 

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

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 %

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)

88

NM

Foreign currency exchange (gain) loss

(792)

1,746

NM

Other (income) expense, net

23,806

393

5,957.5 %

Income (loss) before income tax expense (benefit)

(19,951)

20,913

NM

Income tax expense (benefit)

(4,908)

5,100

NM

Net income (loss)

$           (15,043)

$            15,813

NM

Average basic shares outstanding

28,869

28,725

0.5 %

Basic income (loss) per share

$              (0.52)

$                0.55

NM

Average diluted shares outstanding

28,869

29,001

(0.5) %

Diluted income (loss) per share

$              (0.52)

$                0.55

NM

Dividends declared per common share

$                0.07

$                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 %

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

NM

Other (income) expense, net

24,484

605

3,946.9 %

Income (loss) before income tax expense (benefit)

(7,902)

33,582

NM

Income tax expense (benefit)

(1,488)

8,494

NM

Net income (loss)

$            (6,414)

$            25,088

NM

Average basic shares outstanding

28,852

28,694

0.6 %

Basic income (loss) per share

$              (0.22)

$                0.87

NM

Average diluted shares outstanding

28,852

28,962

(0.4) %

Diluted income (loss) per share

$              (0.22)

$                0.87

NM

Dividends declared per common share

$                0.07

$                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

86

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)

(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 

     Q1     

     Q2     

     Q3     

     Q4     

     Total     

FY25               

64

63

60

62

249

FY24

63

62

61

62

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

______________________

1

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.

2 

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

3 

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

76

—

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

40

1,131

415

Factory and warehouse consolidation costs

11,904

82

11,904

199

Headquarter relocation costs

51

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

40

1,131

415

Factory and warehouse consolidation costs

11,904

82

11,904

199

Headquarter relocation costs

51

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

1

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)

88

(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

40

1,131

415

Factory and warehouse consolidation costs

11,904

82

11,904

199

Headquarter relocation costs

51

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 

1 

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

2 

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.

3 

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.

 

 

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Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event

Published

24 minutes ago

on

October 24, 2026

By

RIYADH, Saudi Arabia, Oct. 24, 2026 /PRNewswire/ — The Organizing Committee of the Global Security & Technology Summit (GSTS) held an introductory session today at the Ministry of Interior’s headquarters in Riyadh, bringing together representatives from the government, private, and nonprofit sectors to introduce the program of activities leading up to the summit. The upcoming summit will be held in Riyadh under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, under the supervision of HRH Prince Abdulaziz bin Saud bin Naif bin Abdulaziz Al Saud, Minister of Interior, and organized by the Ministry of Interior in cooperation with Tuwaiq Academy.

During the session, the Organizing Committee presented the comprehensive GSTS program, comprising three key components: GSTS Month, running from November 1 to 30, 2026; the Global Security & Innovation Fair (SAIF), taking place from November 24 to 26, 2026; and the main Summit, scheduled for December 18 to 20, 2026, in Riyadh. Together, these events form an integrated program designed to advance security and technology innovation, strengthen national capabilities, and foster international cooperation.

GSTS Month will feature working groups, boot camps, training programs, knowledge-sharing sessions, and technical workshops across Saudi Arabia’s 13 administrative regions, delivered both in person and remotely in collaboration with specialized entities. The month-long program aims to develop national capabilities, identify emerging talent, enrich knowledge-sharing opportunities, and equip professionals with the knowledge and skills needed to develop innovative solutions to future security and technology challenges.

The main Summit will bring together global leaders, decision-makers, experts, and innovators to explore the future of security and technology, promote the integration of advanced technologies within the security sector, strengthen national capabilities, support innovation, and foster international cooperation, further positioning the Kingdom as a global hub for security and technology.

Showcasing the latest technological breakthroughs and security solutions, the summit will bring together government entities, private sector organizations, academic institutions, and research centers to facilitate knowledge exchange and collaboration across key fields, including cybersecurity, artificial intelligence (AI), the Internet of Things (IoT), smart security solutions, emerging technologies, and crisis management. The program will also feature main sessions, specialized discussions, and interactive exhibitions. Registration is available at gsts.sa.

Advisor to HRH the Minister of Interior and Chairman of the GSTS Organizing Committee, Ahmed Altowayan, stated that the summit builds on Saudi Arabia’s efforts to establish an advanced security and technology ecosystem focused on knowledge and innovation, keeping pace with rapid developments and future challenges.

Mr. Altowayan noted that the summit is a global platform for strengthening cooperation and exchanging expertise, anticipating future developments in security and technology, and developing strategic partnerships and innovative solutions that enhance the efficiency and readiness of security systems.

Vice Chairman of the GSTS Organizing Committee, Eng. Abdulaziz Alhammadi, said that the summit will offer a range of integrated programs and activities focused on enhancing national skills, encouraging innovation, and supporting international cooperation.

He added that GSTS Month will help build national capabilities, discover talent, and develop skills, with SAIF providing a platform for innovators and researchers from around the world to showcase leading technological solutions, while the main Summit will bring together leaders and experts to discuss the future of security and technology and explore new strategic partnership opportunities.

SAIF will take place at the Riyadh International Convention & Exhibition Center, bringing together innovators, researchers, technology talents, and industry experts from around the world to showcase promising innovations and projects across 14 fields of technology and innovation. The fair will provide opportunities to engage with project owners, including students, graduates, and entrepreneurs, and explore the different stages of innovation development through interactive zones, panel discussions on emerging security and innovation trends, and knowledge-sharing workshops led by specialists. Visitor registration is open to participants from within and outside the Kingdom through saifair.sa.

The introductory session also featured contributions from representatives of government, private, and nonprofit sector entities, alongside members of the media. Discussions focused on developing national capabilities in security and technology, strengthening students’ technical expertise, translating scientific research into practical solutions, and supporting Saudi companies in developing security and technology solutions and advancing digital transformation.

Organized by the Ministry of Interior in cooperation with Tuwaiq Academy, GSTS is produced by Tahaluf, with the Ministry of Education serving as Strategic Scientific Partner, Tahakom as Founding Partner, and Elm as Principal Partner.

Registration for participants from within and outside the Kingdom is available at gsts.sa.

Click here to view the media kit. 

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Axon Announces Body 5: Next-Generation Camera Built for the AI Era

Published

5 hours ago

on

October 24, 2026

By

Axon Body 5 delivers 25x the AI processing power of earlier-generation cameras, with upgraded connectivity, audio and battery life to support real-time situational awareness in the field

SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.

For years, Axon body cameras have helped agencies capture critical evidence and create greater transparency. Body 5 is built to help officers during the call, with information, assistance and backup on the spot.

“Officers shouldn’t have to choose between getting information and watching the scene. With Axon Body 5, they don’t,” said Rick Smith, Axon Founder and CEO. “They capture a license or document with the camera, keep their hands free and eyes up, and get information faster than writing it down and calling it in by radio. An officer fully engaged with the person in front of them, not down at a notepad, is a safer officer and a better-served community.”

Axon Body 5: Built for the AI Era

Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day. 

For the first time, Axon is also introducing two versions of its latest flagship camera: Axon Body 5 and Axon Body 5 Pro.

Both models feature several key advancements, including:

25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.

The Axon Body 5 Pro will continue to gain new AI capabilities as they become available, growing along with the AI Era Plan. Additionally, new hardware features include:

A near-focus camera: An additional dedicated camera lens lets officers scan driver’s licenses to check status and search for wants or warrants in seconds, without returning to the patrol vehicle, with relevant information sent to Axon Fusus to support real-time operations.Front-facing speakers: Four additional speakers project even more powerful audio toward the person an officer is speaking with, helping real-time translations from Axon Assistant carry more clearly over heavy traffic or crowd noise. Additional memory: Extra space lets the camera run several AI tools at once, helping officers stay better informed and work faster.

Bringing More of Axon’s AI Era Into the Field

Axon Body 5 helps officers get more out of the Axon AI Era Plan by bringing smart tools right to the scene. Axon’s portfolio already supports public safety professionals across a growing range of tasks. For example, Draft One helps officers turn body-camera audio into high-quality report drafts and Axon Assistant provides voice-based information access and real-time translation.

Increasingly, Axon is also bringing AI into real-time operations.

Axon Guardian is a new category of AI features within the AI Era Plan that was specifically created to work with an officer’s field-based devices – starting with body cameras and in-car cameras – to improve safety. Guardian is designed to flag potential risks as situations unfold and create alerts when additional attention may be needed. Two of the first features include:

Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.

Combined, Axon Body 5 and the expanding AI Era portfolio demonstrate the importance of AI as a critical resource to assist public safety professionals before, during and after an incident — reducing administrative burden, improving situational awareness and helping protect more lives.

Innovating Responsibly

Axon’s Responsible Innovation framework guides the development of all of its products. Designed with this in mind, Axon Body 5 and Guardian prioritize human oversight and maintain agency control over data. As a key part of the responsible innovation process, Axon’s independent Ethics and Equity Advisory Council was created to help responsibly develop and deploy new technologies with transparency, while aligning with community expectations.

General availability dates for Axon Body 5 and Axon Guardian will be announced soon. Product features and capabilities vary by configuration. For more information on Axon’s current products and services: Axon Product Catalog – Axon.com.

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility. 

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
press@axon.com

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In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design

Published

6 hours ago

on

October 24, 2026

By

The article explains why smart geometry, not thicker walls, creates stronger, more efficient aluminum components.

ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.

The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.

The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.

Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.

The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.

Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.

Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.

Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.

The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.

As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.

A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.

About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

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