-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DU66oCUAa1F4MIlf5cD//H5Nc8+Jqt7OXCjSKY/x3NJbngtxd0b+XJW8r8G3c/um FOjG3YB3gAVCzvY3Wm8adA== 0001005229-05-000018.txt : 20050726 0001005229-05-000018.hdr.sgml : 20050726 20050726160324 ACCESSION NUMBER: 0001005229-05-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050726 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050726 DATE AS OF CHANGE: 20050726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBUS MCKINNON CORP CENTRAL INDEX KEY: 0001005229 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION MACHINERY & EQUIP [3531] IRS NUMBER: 160547600 STATE OF INCORPORATION: NY FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27618 FILM NUMBER: 05974295 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PKWY CITY: AMHERST STATE: NY ZIP: 14228-1197 BUSINESS PHONE: 7166895400 MAIL ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 14228-1197 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AUDUBON EUROPE S A R L CENTRAL INDEX KEY: 0001263401 IRS NUMBER: 421542436 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-109730-04 FILM NUMBER: 05974296 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 14428 BUSINESS PHONE: 7166895405 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRANE EQUIPMENT & SERVICE INC CENTRAL INDEX KEY: 0001263400 IRS NUMBER: 731515437 STATE OF INCORPORATION: OK FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-109730-02 FILM NUMBER: 05974297 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 14428 BUSINESS PHONE: 7166895405 FILER: COMPANY DATA: COMPANY CONFORMED NAME: YALE INDUSTRIAL PRODUCTS INC CENTRAL INDEX KEY: 0001062624 IRS NUMBER: 710585582 STATE OF INCORPORATION: MO FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-53759-06 FILM NUMBER: 05974298 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 19228-1197 BUSINESS PHONE: 7166895400 8-K 1 q106er.txt FIRST QUARTER FISCAL 2006 EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): JULY 26, 2005 ------------- COLUMBUS MCKINNON CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) NEW YORK - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-27618 16-0547600 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 140 JOHN JAMES AUDUBON PARKWAY, AMHERST, NEW YORK 14228-1197 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code: (716) 689-5400 -------------- - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 2.02. RESULTS OF OPERATION AND FINANCIAL CONDITION On July 26, 2005, the registrant issued a press release announcing financial results for the first quarter of fiscal 2006. The press release is annexed as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Form 8-K and the Exhibit annexed hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such filing. Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. EXHIBIT NUMBER DESCRIPTION 99.1 Press Release dated July 26, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. COLUMBUS MCKINNON CORPORATION By: /S/ TIMOTHY T. TEVENS ---------------------------- Name: Timothy T. Tevens Title: President and Chief Executive Officer Dated: JULY 26, 2005 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION - -------------- ----------- 99.1 Press Release dated July 26, 2005 EX-99 2 q106pr.txt PRESS RELEASE NEWS RELEASE CONTACT: Robert R. Friedl, Vice President - Finance and Chief Financial Officer 716.689.5479 bob.friedl@cmworks.com COLUMBUS MCKINNON NET INCOME MORE THAN DOUBLES ON 15.8% INCREASE IN SALES FOR FIRST QUARTER FY 2006 o EARNINGS PER SHARE OF $0.49, UP $0.26 FROM PRIOR YEAR o OPERATING MARGIN IMPROVES 120 BASIS POINTS TO 10.4% o NET DEBT REDUCED BY $8.5 MILLION IN THE QUARTER AMHERST, N.Y., July 26, 2005-- Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer, manufacturer and marketer of material handling products, today announced first quarter fiscal 2006 net income increased 118%, or $3.9 million, to $7.3 million compared with fiscal 2005's first quarter net income of $3.4 million. On a diluted per share basis, first quarter 2006 earnings were $0.49 compared with $0.23 in the same period last year. Net sales for the fiscal 2006 first quarter were $140.9 million, an increase of $19.2 million, or 15.8%, over last year's first quarter. Demand from end user markets of Columbus McKinnon products was driven by a continued strength in the U.S. and international economies. Volume accounted for approximately 8% of the increase in sales while price changes accounted for 6%, and currency translation for about 2%. Timothy Tevens, President and Chief Executive Officer of Columbus McKinnon, commented, "Our first quarter results clearly demonstrate the earnings power we have gained through our lean manufacturing and product and facility rationalization initiatives. As we look forward, we anticipate more moderate rates of revenue growth as bookings, when compared with prior periods, have tempered to growth in the mid-single digit range. Importantly, in spite of more moderate levels of revenue growth, we do expect material costs and employee benefits costs to stabilize this year allowing more of our productivity improvement to drop to the bottom line. This improvement, along with an expected 50% reduction in Sarbanes Oxley compliance documentation and testing costs, will help to boost operating margins." Debt, net of cash at July 3, 2005, was $253.0 million, an $8.5 million reduction from $261.5 million at March 31, 2005, and a $28.5 million reduction from $281.5 million a year ago. The percentage of debt to total capitalization has improved 120 basis points and 600 basis points when compared with March 31, 2005, and the end of last year's first quarter, respectively. Net cash provided by operations was $10.6 million for the fiscal 2006 first quarter compared with $1.1 million in the fiscal 2005 first quarter, driven by earnings growth and improved working capital management. PRODUCTS SEGMENT - ---------------- Products segment sales for the first quarter of fiscal 2006 represented 87.9% of consolidated net sales, increasing 14.1% to $123.9 million. Gross margin for this segment was 27.6% compared with 26.9% in last year's first quarter. Income from operations, as a percent of sales, was 11.4% for this period, up from 10.0% in the fiscal 2005 first quarter. Backlog stood at $42.8 million at the end of the quarter. The time to convert Products segment backlog to sales can average from a few days to a few weeks, and backlog for this segment on average represents four to five weeks of shipments. SOLUTIONS SEGMENT - ----------------- Net sales for the Solutions segment were $17.0 million in the fiscal 2006 first quarter, up $3.9 million, or 29.7%, from sales of $13.1 million in the same period last year. Gross margin was 13.7% compared with 16.8% last year, down due to a less favorable sales mix, yet income from operations as a percent of sales was 2.9% for this period compared with 2.5% in last year's first quarter as a result of lower selling, general and administrative costs. Backlog for the Solutions segment at July 3, 2005 was $17.3 million, slightly down from backlog of $18.2 million at the end of the fiscal 2005 first quarter and up from $9.6 million at the end of the fiscal 2005 fourth quarter. For this segment, the average cycle time for backlog to convert to sales can range from one to six months. OUTLOOK - ------- Mr. Tevens noted, "We are making great strides in reducing our debt and strengthening our balance sheet. Our objective remains to use cash from operations to pay down debt in order to reduce interest expense and to enhance our strategic flexibility. "For example, one of our key strategies is to grow international sales at a rate significantly higher than the growth rate of sales in the U.S. market. We are capturing opportunities to selectively penetrate international markets where our share today is significantly lower than the leadership position we have earned in the U.S. market. I'm proud to report that international sales for the fiscal 2006 first quarter were $50.7 million compared with $40.2 million last year, a 26% increase." The Company has approximately $90 million dollars of fully reserved U.S. federal net operating loss carry forwards available to offset future U.S. taxable income, allowing more of our U.S.-based margin expansion to drop directly to the bottom line. Additionally, Columbus McKinnon estimates capital expenditures for fiscal 2006 will be in the range of $5 to $7 million. ABOUT COLUMBUS MCKINNON - ----------------------- Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of material handling products, systems and services, which efficiently and ergonomically move, lift, position or secure material. Key products include hoists, cranes, chain and forged attachments. 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 on its web site at HTTP://WWW.CMWORKS.COM. TELECONFERENCE/WEBCAST - ---------------------- A teleconference and webcast have been scheduled for July 26 at 10:00 AM Eastern Time at which the management of Columbus McKinnon will discuss the Company's financial results and strategy. Interested parties in the United States and Canada can participate in the teleconference by dialing 1-888-459-1579, and asking to be placed in the "Columbus McKinnon Quarterly Conference Call" and providing the password "Columbus McKinnon" and identifying conference leader, "Tim Tevens" when asked. The toll number for parties outside the United States and Canada is 1-210-234-7695. 2 The webcast will be accessible at Columbus McKinnon's web site: http://www.cmworks.com. An audio recording of the call will be available two hours after its completion and until September 26, 2005 by dialing 1-866-442-1602. Alternatively, you may access an archive of the call until September 26, 2005 on Columbus McKinnon's web site at: http://www.cmworks.com/invrel/presentation.asp. SAFE HARBOR STATEMENT - --------------------- THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS CONCERNING FUTURE REVENUE AND EARNINGS, INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO DIFFER MATERIALLY FROM THE RESULTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS, INCLUDING GENERAL ECONOMIC AND BUSINESS CONDITIONS, CONDITIONS AFFECTING THE INDUSTRIES SERVED BY THE COMPANY AND ITS SUBSIDIARIES, CONDITIONS AFFECTING THE COMPANY'S CUSTOMERS AND SUPPLIERS, COMPETITOR RESPONSES TO THE COMPANY'S PRODUCTS AND SERVICES, THE OVERALL MARKET ACCEPTANCE OF SUCH PRODUCTS AND SERVICES, THE LIKELIHOOD THAT THE COMPANY CAN UTILIZE ITS NOLS, THE EFFECT OF OPERATING LEVERAGE, THE PACE OF BOOKINGS RELATIVE TO SHIPMENTS, AND OTHER FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS RELEASE. TABLES FOLLOW. 3
COLUMBUS MCKINNON CORPORATION CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) THREE MONTHS ENDED ------------------ JULY 3, 2005 JULY 4, 2004 CHANGE ------------ ------------ ------ NET SALES $ 140,877 $ 121,658 15.8% Cost of products sold 104,334 90,207 15.7% ------------------------------------ Gross profit 36,543 31,451 16.2% Gross profit margin 25.9% 25.9% Selling expense 13,658 12,700 7.5% General and administrative expense 8,175 7,485 9.2% Restructuring charges 26 33 -21.2% Amortization 62 77 -19.5% ------------------------------------ INCOME FROM OPERATIONS 14,622 11,156 31.1% ------------------------------------ Interest and debt expense 6,716 7,048 -4.7% Other (789) 18 -4483.3% ------------------------------------ Income from cont. ops. before income tax expense 8,695 4,090 112.6% Income tax expense 1,587 728 118.0% ------------------------------------ Income from cont. ops. 7,108 3,362 111.4% Income from disc. ops. 214 - ------------------------------------ NET INCOME $ 7,322 $ 3,362 117.8% ==================================== Average basic shares outstanding 14,672 14,576 0.7% Basic income per share: Continuing operations $ 0.49 $ 0.23 113.0% Discontinued operations 0.01 - ------------------------------------ Net Income $ 0.50 $ 0.23 117.4% ==================================== Average diluted shares outstanding 15,029 14,600 2.9% Diluted income per share: Continuing operations $ 0.48 $ 0.23 108.7% Discontinued operations 0.01 - ------------------------------------ Net Income $ 0.49 $ 0.23 113.0% ====================================
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COLUMBUS MCKINNON CORPORATION CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) JULY 3, 2005 MARCH 31, 2005 ------------ -------------- ASSETS Current assets: Cash and cash equivalents $ 13,627 $ 9,479 Trade accounts receivable 89,881 88,974 Unbilled revenues 9,871 8,848 Inventories 79,646 77,626 Prepaid expenses 14,047 14,198 ---------------------------------- Total current assets 207,072 199,125 ---------------------------------- Net property, plant, and equipment 55,946 57,237 Goodwill and other intangibles, net 186,741 187,285 Marketable securities 25,674 24,615 Deferred taxes on income 4,398 6,122 Other assets 6,430 6,487 ---------------------------------- TOTAL ASSETS $ 486,261 $ 480,871 ================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable to banks $ 4,728 $ 4,839 Trade accounts payable 35,019 33,688 Accrued liabilities 54,696 51,962 Restructuring reserve 122 144 Current portion of long-term debt 194 5,819 ---------------------------------- Total current liabilities 94,759 96,452 ---------------------------------- Senior debt, less current portion 119,441 115,735 Subordinated debt 142,259 144,548 Other non-current liabilities 43,609 42,369 ---------------------------------- Total liabilities 400,068 399,104 ---------------------------------- Shareholders' equity: Common stock 150 149 Additional paid-in capital 104,283 104,078 Accumulated deficit (1,322) (8,644) ESOP debt guarantee (4,409) (4,554) Unearned restricted stock (29) (6) Accumulated other comprehensive loss (12,480) (9,256) ---------------------------------- Total shareholders' equity 86,193 81,767 ---------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 486,261 $ 480,871 ==================================
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COLUMBUS MCKINNON CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) THREE MONTHS ENDED ------------------ JULY 3, 2005 JULY 4, 2004 ------------ ------------ OPERATING ACTIVITIES: Income from continuing operations $ 7,108 $ 3,362 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 2,332 2,325 Deferred income taxes 1,724 1,455 Gain on sale of investments (481) - Gain on early retirement of 2008 bonds (11) - Amortization/Write-off of deferred financing costs 320 369 Changes in operating assets and liabilities: Trade accounts receivable (2,096) 2,582 Unbilled revenues and excess billing (1,823) 92 Inventories (2,620) (2,080) Prepaid expenses 130 (1,118) Other assets (202) (129) Trade accounts payable 2,095 (5,207) Accrued and non-current liabilities 4,161 (519) ---------------------------------- Net cash provided by operating activities 10,637 1,132 ---------------------------------- INVESTING ACTIVITIES: Purchase (sale) of marketable securities, net (688) 208 Capital expenditures (1,674) (838) Proceeds from net assets held for sale - 220 ---------------------------------- Net cash used in investing activities (2,362) (410) ---------------------------------- FINANCING ACTIVITIES: Proceeds from issuance of stock 1 - Net borrowings under revolving line-of-credit agreements 4,205 1,175 Repayment of debt (8,186) (1,078) Deferred financing costs incurred (98) (11) Other 145 143 ---------------------------------- Net cash (used in) provided by financing activities (3,933) 229 ---------------------------------- EFFECT OF EXCHANGE RATE CHANGES ON CASH (408) 12 ---------------------------------- Net cash provided by continuing operations 3,934 963 NET CASH PROVIDED BY DISCONTINUED OPERATIONS 214 - Net change in cash and cash equivalents 4,148 963 Cash and cash equivalents at beginning of year 9,479 11,101 ---------------------------------- Cash and cash equivalents at end of period $ 13,627 $ 12,064 ==================================
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COLUMBUS MCKINNON CORPORATION BUSINESS SEGMENT DATA ($ IN THOUSANDS) PRODUCTS SOLUTIONS CONSOLIDATED -------- --------- ------------ QUARTER ENDED JULY 3, 2005 Net sales $ 123,881 $ 16,996 $ 140,877 Gross profit 34,220 2,323 36,543 Margin 27.6% 13.7% 25.9% Income from operations 14,128 494 14,622 Margin 11.4% 2.9% 10.4% QUARTER ENDED JULY 4, 2004 Net sales $ 108,557 $ 13,101 $ 121,658 Gross profit 29,245 2,206 31,451 Margin 26.9% 16.8% 25.9% Income from operations 10,824 332 11,156 Margin 10.0% 2.5% 9.2%
ADDITIONAL DATA JULY 3, 2005 JULY 4, 2004 ------------ ------------ BACKLOG (IN MILLIONS) Products segment $ 42,845 $ 45,363 Solutions segment $ 17,276 $ 18,230 TRADE ACCOUNTS RECEIVABLE days sales outstanding 57.4 days 60.5 days INVENTORY TURNS PER YEAR (based on cost of products sold) 5.2 turns 5.1 turns DAYS' INVENTORY 70.2 days 71.6 days TRADE ACCOUNTS PAYABLE days payables outstanding 30.2 days 24.9 days WORKING CAPITAL AS A % OF SALES 19.4% 22.1% DEBT TO TOTAL CAPITALIZATION PERCENTAGE 75.6% 81.6%
SHIPPING DAYS BY QUARTER Q1 Q2 Q3 Q4 -- -- -- -- FY06 65 63 58 65 FY05 65 63 58 63 7 -----END PRIVACY-ENHANCED MESSAGE-----