-----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, EWkt8jInICcQ9ghj2fSRSnzQxPPj9gNIcVkYzFf1cT2ll36Wz5UE3QmT80P+R9oh bC3eOV80yPyl5npKca4gIw== 0001005229-05-000036.txt : 20051025 0001005229-05-000036.hdr.sgml : 20051025 20051025160101 ACCESSION NUMBER: 0001005229-05-000036 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051025 DATE AS OF CHANGE: 20051025 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: 051154504 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 19228-1197 BUSINESS PHONE: 7166895400 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: 051154502 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 14428 BUSINESS PHONE: 7166895405 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: 051154501 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 14428 BUSINESS PHONE: 7166895405 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: 051154503 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 8-K 1 q206er.txt SECOND 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): OCTOBER 25, 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. RESULTS OF OPERATION AND FINANCIAL CONDITION On October 25, 2005, the registrant issued a press release announcing financial results for the second 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 October 25, 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/ KAREN L. HOWARD -------------------------------------------- Name: Karen L. Howard Title: Vice President and Treasurer and Interim Chief Financial Officer Dated: OCTOBER 25, 2005 ---------------- EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION - -------------- ----------- 99.1 Press Release dated October 25, 2005 EX-99 2 q206pr.txt PRESS RELEASE NEWS RELEASE CONTACT: Karen L. Howard Vice President, Treasurer and Interim Chief Financial Officer Columbus McKinnon Corporation Phone: 716-689-5550 karen.howard@cmworks.com COLUMBUS MCKINNON REPORTS 10% SALES GROWTH FOR SECOND QUARTER FISCAL 2006 o SECOND QUARTER GROSS PROFIT MARGIN INCREASED 170 BASIS POINTS FROM PRIOR YEAR TO 26.1% o NET DEBT REDUCED $14.8 MILLION IN QUARTER o OPERATING INCOME FOR THE QUARTER UP 34.1%; NET INCOME RISES 25.8% o NET INCOME AFFECTED BY $3.5 MILLION ($0.23 PER SHARE) IN PREVIOUSLY ANNOUNCED COSTS ASSOCIATED WITH RECENT DEBT REFINANCING AMHERST, N.Y, October 25, 2005-- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of material handling products, today announced net sales of $134.7 million for the second quarter fiscal 2006, which ended October 2, 2005. This quarter's sales represent a 9.8% increase over sales of $122.7 million in the second quarter of fiscal 2005. Net income for the second quarter of fiscal 2006 was $3.3 million, or $0.21 per share, a $0.7 million or 25.8% increase from $2.6 million, or $0.18 per share, in the prior fiscal year second quarter. Second quarter fiscal 2006 results include the negative impact of the previously announced charges of $3.5 million associated with the Company's recent subordinated debt refinancing. Excluding these charges, net income for the fiscal 2006 second quarter would have been $6.8 million or $0.44 per diluted share, respective increases of 160.7% and 144.4% over reported U.S. GAAP net income and diluted net income per share in the year-ago quarter. SECOND QUARTER REVIEW - --------------------- Demand from Columbus McKinnon's end user markets was driven by continued strength in the U.S. and international industrial economies as well as a continuation of the Company's successful global growth strategy. Volume accounted for approximately 5 percentage points of the increase in sales while price changes accounted for 4 percentage points, and currency translation for about 1 percentage point. Timothy Tevens, President and Chief Executive Officer of Columbus McKinnon, commented, "We continue to realize the operating leverage from higher sales enhanced by stronger margins resulting from our lean manufacturing improvements and product and facility rationalization initiatives. In the fiscal 2006 second quarter, operating leverage contributed $0.28 to income from operations for each incremental sales dollar over the fiscal 2005 second quarter. We are especially pleased to achieve a 25.8% increase in net income even with the $3.5 million charge for debt refinancing, and that excluding this charge, net income would have increased 160.7%. Further, our recent successful bond offering and the refinancing of our subordinated debt effectively position us to reduce our more restrictive and costly debt, and also increase the level of pre-payable debt that can be reduced in the future with cash generated from operations. These are important steps in our continuing initiative to further improve Columbus McKinnon's financial flexibility by strategically restructuring our balance sheet to address our high cost debt, improve our debt-to-equity ratio, and financially support our global growth initiatives." The Company's effective tax rate for the fiscal 2006 second quarter was 36.1%, compared with 29.2% in the fiscal 2005 second quarter. The higher effective income tax rate in fiscal 2006 reflects the debt refinancing charges of $3.5 million, which reduced U.S. taxable income in the fiscal 2006 second quarter resulting in no associated tax benefit being recorded in the quarter. The Company has approximately $93 million of fully reserved U.S. federal net operating loss carry forwards available to offset future U.S. taxable income, allowing more of its U.S.-based margin expansion to be directly reflected in net income. Debt, net of cash at October 2, 2005, was $238.2 million, a $23.3 million reduction from $261.5 million at March 31, 2005, and a $46.3 million reduction from $284.5 million a year ago. Included in subordinated debt at the end of the second quarter this fiscal year was $25.6 million of the refinanced notes that were settled on October 14, 2005, effectively reducing subordinated debt by that amount in the fiscal 2006 third quarter. The percentage of debt to total capitalization improved to 75.0% or 180 basis points compared with 76.8% at March 31, 2005, and improved 590 basis points compared with 80.9% at the end of last year's second quarter. Net cash provided by operations was $24.2 million year-to-date through the fiscal 2006 second quarter, compared with $2.8 million in cash used by operations for the prior year period. The improvement in operating cash flow was driven by earnings growth and improved working capital management. Working capital as a percent of the latest twelve month's revenues through the fiscal 2006 second quarter improved to 18.1%, compared with 19.4% and 23.1% at the end of the first quarter of fiscal 2006 and last year's second quarter, respectively. PRODUCTS SEGMENT - ---------------- Products segment sales for the second quarter of fiscal 2006 represented 89.6% of consolidated net sales, increasing 10.7% from last year to $120.7 million. Gross margin for this segment was 27.1%, a 160 basis point improvement from 25.5% in last year's second quarter. Income from operations, as a percent of sales, was 10.5% for this period, up from 8.7% in the fiscal 2005 second quarter. Backlog stood at $40.2 million at the end of the quarter, down from $42.8 million and $47.2 million at the end of the first quarter of fiscal 2006 and last year's second quarter, respectively. The changes in backlog reflect normal business fluctuations. The time to convert Products segment backlog to sales can range 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 $14.0 million in the fiscal 2006 second quarter, up $0.3 million, or 2.2%, from sales of $13.7 million in the same period last year. Gross margin was 17.8%, a 220 basis point improvement from 15.6% last year. Income from operations as a percent of sales was 4.1% for this period compared with 3.4% in last year's second quarter. Backlog for the Solutions segment at October 2, 2005 was $17.4 million, virtually even with $17.3 million at the end of the fiscal 2006 first quarter and slightly down from backlog of $20.6 million at the end of the fiscal 2005 second quarter. The change in backlog reflects the timing of projects awarded for this segment. The average cycle time for backlog to convert to sales for the Solutions segment can range from one to six months. SIX-MONTH REVIEW - ---------------- Net sales for the first half of fiscal 2006 were $275.6 million, up 12.8%, or $31.2 million, compared with the first half of fiscal 2005. Gross profit of $71.7 million was 16.8% higher for this fiscal year's first six months, resulting in a 90 basis point improvement in gross profit margin to 26.0%. The improved margin was the result of continued operating leverage. Selling, general and administrative expenses as a percent of sales improved to 15.8%, compared with 16.3% in the prior year. Net income for the first half of fiscal 2006 was $10.6 million, up $4.6 million, or 77.7%. On a per share basis, net income was 2 $0.70 ($0.93 excluding the $0.23 charge for subordinated debt refinancing) for the first half of fiscal 2006, a 70.7% increase from $0.41 for the same period in fiscal 2005. Capital expenditures for the first half of fiscal 2006 were $3.8 million, up from $1.9 million in the prior year period. Columbus McKinnon expects capital spending for fiscal 2006 to be in the range of $6.0 to $7.0 million. Higher capital expenditures in the first half of fiscal 2006 included a concentration of new product development and productivity improvement spending. OUTLOOK - ------- Mr. Tevens noted, "Sales trends in our markets continue to be favorable and while the pace of revenue growth is moderating, we continue to expect future benefits in profitability from operating leverage and our productivity and debt reduction initiatives. We have seen improvements in our working capital utilization and will continue to focus on further opportunities. We are making strides in reducing our debt and improving our financial position and flexibility to support our planned growth. Our strategic objectives remain to: o Increase our domestic organic sales growth by introducing new and cross-branded products to maximize market coverage, o Increase our global sales volumes and share by expanding our global presence to pursue growth opportunities in emerging industrial markets and leverage our multi-brands in other markets, o Improve our operations to increase our profitability through lean manufacturing and facility rationalization, and o Pay down debt to reduce interest expense and enhance our strategic flexibility." 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 October 25, 2005 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. 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 December 23, 2005 by dialing 1-800-570-8791. Alternatively, you may access an archive of the call until December 23, 2005 on Columbus McKinnon's web site at: http://www.cmworks.com/invrel/presentation.asp. 3 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. 4
COLUMBUS MCKINNON CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA) THREE MONTHS ENDED ------------------ 10/2/05 10/3/04 CHANGE ---------------------- -------- Net sales ...................................... $ 134,712 $ 122,711 9.8% Cost of products sold .......................... 99,554 92,768 7.3% ---------------------- Gross profit ................................... 35,158 29,943 17.4% Gross profit margin ......................... 26.1% 24.4% Selling expense ................................ 13,080 12,270 6.6% General and administrative expense ............. 8,539 7,517 13.6% Restructuring charges .......................... 211 184 14.7% Amortization ................................... 61 76 -19.7% ---------------------- Income from operations ......................... 13,267 9,896 34.1% ---------------------- Interest and debt expense ...................... 6,633 7,141 -7.1% Interest and other expense (income) ............ 1,864 (607) -407.1% ---------------------- Income from cont. ops. before income tax expense 4,770 3,362 41.9% Income tax expense ............................. 1,721 982 75.3% ---------------------- Income from cont. ops .......................... 3,049 2,380 28.1% Income from disc. ops .......................... 214 214 ---------------------- Net income ..................................... $ 3,263 $ 2,594 25.8% ====================== Average basic shares outstanding . 14,845 14,585 1.8% Basic net income per share: Continuing operations ....................... $ 0.21 $ 0.17 17.6% Discontinued operations ..................... 0.01 0.01 ---------------------- Net income .................................. $ 0.22 $ 0.18 16.7% ====================== Average diluted shares outstanding 15,431 14,800 4.3% Diluted net income per share: Continuing operations ....................... $ 0.20 $ 0.17 17.6% Discontinued operations ..................... 0.01 0.01 ---------------------- Net income .................................. $ 0.21 $ 0.18 16.7% ======================
5
COLUMBUS MCKINNON CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA) SIX MONTHS ENDED ---------------- 10/2/05 10/3/04 CHANGE ---------------------- -------- Net sales ...................................... $ 275,589 $ 244,369 12.8% Cost of products sold .......................... 203,888 182,975 11.4% ---------------------- Gross profit ................................... 71,701 61,394 16.8% Gross profit margin ......................... 26.0% 25.1% Selling expense ................................ 26,738 24,970 7.1% General and administrative expense ............. 16,714 15,002 11.4% Restructuring charges .......................... 237 217 9.2% Amortization ................................... 123 153 -19.6% ---------------------- Income from operations ......................... 27,889 21,052 32.5% ---------------------- Interest and debt expense ...................... 13,349 14,189 -5.9% Interest and other expense (income) ............ 1,075 (589) -282.5% ---------------------- Income from cont. ops. before income tax expense 13,465 7,452 80.7% Income tax expense ............................. 3,308 1,710 93.5% ---------------------- Income from cont. ops .......................... 10,157 5,742 76.9% Income from disc. ops .......................... 428 214 ---------------------- Net income ..................................... $ 10,585 $ 5,956 77.7% ====================== Average basic shares outstanding ............. 14,757 14,585 1.2% Basic net income per share: Continuing operations ..................... $ 0.69 $ 0.40 72.5% Discontinued operations ................... 0.03 0.01 ---------------------- Net income ................................ $ 0.72 $ 0.41 75.6% ====================== Average diluted shares outstanding ........... 15,227 14,698 3.6% Diluted net income per share: Continuing operations ..................... $ 0.67 $ 0.40 67.5% Discontinued operations ................... 0.03 0.01 ---------------------- Net income ................................ $ 0.70 $ 0.41 70.7% ======================
6
COLUMBUS MCKINNON CORPORATION CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) 10/2/05 3/31/05 ---------------------- ASSETS Current assets: Cash and cash equivalents .............................. $ 42,535 $ 9,479 Trade accounts receivable .............................. 86,026 88,974 Unbilled revenues ...................................... 10,862 8,848 Inventories ............................................ 77,637 77,626 Prepaid expenses ....................................... 14,317 14,198 ---------------------- Total current assets ........................................ 231,377 199,125 Net property, plant, and equipment .......................... 54,532 57,237 Goodwill and other intangibles, net ......................... 186,732 187,285 Marketable securities ....................................... 25,165 24,615 Deferred taxes on income .................................... 4,327 6,122 Other assets ................................................ 6,635 6,487 ---------------------- Total assets ................................................ $ 508,768 $ 480,871 ====================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable to banks ................................. $ 3,318 $ 4,839 Trade accounts payable ................................. 37,833 33,688 Accrued liabilities .................................... 51,955 51,962 Restructuring reserve .................................. 114 144 Current portion of long-term debt ...................... 195 5,819 ---------------------- Total current liabilities ................................... 93,415 96,452 Senior debt, less current portion ........................... 115,600 115,735 Subordinated debt ........................................... 161,600 144,548 Other non-current liabilities ............................... 44,751 42,369 ---------------------- Total liabilities ........................................... 415,366 399,104 ---------------------- Shareholders' equity: Common stock ........................................... 152 149 Additional paid-in capital ............................. 106,795 104,078 Retained earnings (accumulated deficit) ................ 1,941 (8,644) ESOP debt guarantee .................................... (4,260) (4,554) Unearned restricted stock .............................. (29) (6) Accumulated other comprehensive loss ................... (11,197) (9,256) ---------------------- Total shareholders' equity .................................. 93,402 81,767 ---------------------- Total liabilities and shareholders' equity .................. $ 508,768 $ 480,871 ======================
7
COLUMBUS MCKINNON CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOW SIX MONTHS ENDED ---------------- 10/2/05 10/3/04 ----------------------- (IN THOUSANDS) OPERATING ACTIVITIES: Income from continuing operations .......................................... $ 10,157 $ 5,742 Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities of continuing operations: Depreciation and amortization ......................................... 4,651 4,652 Deferred income taxes ................................................. 1,795 1,275 Gain on sale of real estate/investments ............................... (1,547) -- Loss on early retirement of 2008 bonds ................................ 2,407 -- Amortization/write-off of deferred financing costs .................... 1,563 655 Changes in operating assets and liabilities: Trade accounts receivable ........................................ 2,381 578 Unbilled revenues and excess billings ............................ (2,798) (2,175) Inventories ...................................................... (301) (5,257) Prepaid expenses ................................................. (97) 1,342 Other assets ..................................................... (202) (135) Trade accounts payable ........................................... 4,666 (4,718) Accrued and non-current liabilities .............................. 1,487 (4,781) --------------------- Net cash provided by (used in) operating activities of continuing operations 24,162 (2,822) --------------------- INVESTING ACTIVITIES: Sale of marketable securities, net ......................................... 475 1,991 Capital expenditures ....................................................... (3,761) (1,948) Proceeds from sale of businesses and fixed assets .......................... 2,091 -- Net assets held for sale ................................................... -- 300 --------------------- Net cash (used in) provided by investing activities of continuing operations (1,195) 343 --------------------- FINANCING ACTIVITIES: Proceeds from stock options exercised ...................................... 2,729 -- Net payments under revolving line-of-credit agreements ..................... (1,110) 8,036 Repayment of debt .......................................................... (126,953) (7,173) Payment of deferred financing costs ........................................ (1,566) (11) Proceeds from issuance of long-term debt ................................... 136,000 -- Other ...................................................................... 294 286 --------------------- Net cash provided by financing activities of continuing operations ......... 9,394 1,138 EFFECT OF EXCHANGE RATE CHANGES ON CASH .................................... 267 (91) --------------------- Net cash provided by (used in) continuing operations ....................... 32,628 (1,432) NET CASH PROVIDED BY DISCONTINUED OPERATIONS ............................... 428 214 --------------------- Net change in cash and cash equivalents .................................... 33,056 (1,218) Cash and cash equivalents at beginning of period ........................... 9,479 11,101 --------------------- Cash and cash equivalents at end of period ................................. $ 42,535 $ 9,883 =====================
8 COLUMBUS MCKINNON CORPORATION BUSINESS SEGMENT DATA PRODUCTS SOLUTIONS CONSOLIDATED ------------------------------------------ (IN THOUSANDS, EXCEPT FOR PERCENTAGES) Quarter ended 10/2/05 Net sales ............ $120,674 $ 14,038 $134,712 Gross profit ......... 32,665 2,493 35,158 Margin ........ 27.1% 17.8% 26.1% Income from operations 12,692 575 13,267 Margin ........ 10.5% 4.1% 9.8% Quarter ended 10/3/04 Net sales ............ $108,981 $ 13,730 $122,711 Gross profit ......... 27,805 2,138 29,943 Margin ........ 25.5% 15.6% 24.4% Income from operations 9,435 461 9,896 Margin ........ 8.7% 3.4% 8.1% Six-months ended 10/2/05 Net sales ............ $244,555 $ 31,034 $275,589 Gross profit ......... 66,885 4,816 71,701 Margin ........ 27.3% 15.5% 26.0% Income from operations 26,820 1,069 27,889 Margin ........ 11.0% 3.4% 10.1% Six-months ended 10/3/04 Net sales ............ $217,538 $ 26,831 $244,369 Gross profit ......... 57,050 4,344 61,394 Margin ........ 26.2% 16.2% 25.1% Income from operations 20,259 793 21,052 Margin ........ 9.3% 3.0% 8.6% 9 COLUMBUS MCKINNON CORPORATION ADDITIONAL DATA OCTOBER 2, 2005 OCTOBER 3, 2004 --------------- --------------- Backlog (in thousands) Products segment .................$ 40,235 $ 47,194 Solutions segment ................. 17,402 20,647 Trade accounts receivable - Days sales outstanding ............ 58.1 62.6 Inventory turns per year (based on cost of products sold) ............ 5.1x 5.0x Days per turn ..................... 71.6 73.0 Trade accounts payable - Days payables outstanding ......... 34.6 25.0 Working capital as a % of total sales . 18.1% 23.1% Debt to total capitalization percentage 75.0% 80.9% SHIPPING DAYS BY QUARTER ------------------------ Q1 Q2 Q3 Q4 -- -- -- -- FY06 65 63 58 65 FY05 65 63 58 63 10 -----END PRIVACY-ENHANCED MESSAGE-----