-----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, T3Y78Ifw9xiCBOBuc0h+tF0iKXrGWgmlaEgK3ndBBSrP48xaBDgXXFe7ARrQPIgq uYM/arhjPdI8amtsAAPqoA== 0001005229-08-000002.txt : 20080124 0001005229-08-000002.hdr.sgml : 20080124 20080124152102 ACCESSION NUMBER: 0001005229-08-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080124 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080124 DATE AS OF CHANGE: 20080124 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: 08547443 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: 08547444 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: 08547445 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: 08547446 BUSINESS ADDRESS: STREET 1: 140 JOHN JAMES AUDUBON PARKWAY CITY: AMHERST STATE: NY ZIP: 19228-1197 BUSINESS PHONE: 7166895400 8-K 1 q308er.txt THIRD QUARTER FISCAL 2008 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): JANUARY 24, 2008 ---------------- 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 OPERATIONS AND FINANCIAL CONDITION On January 24, 2008, the registrant issued a press release announcing financial results for the third quarter of fiscal 2008. 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. (d) Exhibits. EXHIBIT NUMBER DESCRIPTION - -------------- ----------- 99.1 Press Release dated January 24, 2008 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 Chief Financial Officer (Principal Financial Officer) Dated: JANUARY 24, 2008 ---------------- EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION - -------------- ----------- 99.1 Press Release dated January 24, 2008 EX-99 2 q308pr.txt PRESS RELEASE Contact: Karen L. Howard Vice President - Finance and Chief Financial Officer Columbus McKinnon Corporation 716-689-5550 karen.howard@cmworks.com ------------------------ COLUMBUS MCKINNON REPORTS FISCAL 2008 THIRD QUARTER EPS OF $0.52 REFLECTING CONTINUED MARGIN EXPANSION AND STRONG REVENUE GROWTH o THIRD QUARTER REVENUE INCREASED 9.3% TO $155.2 MILLION ON STRONG GLOBAL PERFORMANCE; PRODUCTS SEGMENT SALES INCREASED 10.7% TO $140.5 MILLION o GROSS MARGIN IMPROVED 290 BASIS POINTS COMPARED WITH THE YEAR-AGO QUARTER TO 30.1%; OPERATING MARGIN UP 180 BASIS POINTS TO 12.3% o QUARTERLY DILUTED EPS OF $0.52, UP 8.3% FROM LAST YEAR AND 39.5% HIGHER ON A PRO FORMA BASIS o DEBT, NET OF CASH, REDUCED 11.8% IN QUARTER TO $88.8 MILLION, 24.1% OF TOTAL CAPITALIZATION AMHERST, N.Y., January 24, 2008 - Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer, manufacturer and marketer of material handling products, today announced financial results for its fiscal 2008 third quarter that ended on December 30, 2007. Net sales for the period were $155.2 million, up 9.3% over the same period in the prior year. International sales were $55.8 million, or 36% of total net sales, up $6.4 million, or 13% from the third quarter of fiscal 2007. Products segment sales, which represented 90.5% of total revenue, increased $13.6 million, or 10.7%, to $140.5 million on strong sales reported by CMCO Europe's operations as well as the Company's domestic hoists, cranes and rigging products. The Solutions segment reported a revenue decline of $0.4 million to $14.7 million, due to planned revenue reduction in the Company's Univeyor business. Columbus McKinnon announced earlier this month that it is pursuing strategic alternatives for Univeyor, including the possible sale of the business. Timothy T. Tevens, President and Chief Executive Officer, commented, "Strong performance in the quarter, particularly from domestic hoists, cranes, rigging products and Columbus McKinnon Europe, resulted in robust growth in revenue, margins and core earnings. Demand from our target markets continues, both by industry and geography. Also, our continued focus on debt reduction, combined with our strong operating performance, resulted in a further upgrade in our debt rating from Moody's during the quarter." Net income of $10.0 million for the fiscal 2008 third quarter increased 9.5% from fiscal 2007 third quarter net income of $9.1 million. On a per diluted share basis, fiscal 2008 third quarter net income was $0.52, $0.04 or 8.3% higher than $0.48 in the same period last year. Excluding the net-of-tax effect of $2.2 million of investment income from an asset reallocation in the fiscal 2007 third quarter and bond redemption costs from both periods, fiscal 2008 third quarter pro forma net income per diluted share of $0.53 represents a 39.5% increase from fiscal 2007 pro forma net income per diluted share of $0.38.
FY 2008/2007 Q3 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP PRO FORMA NET INCOME (IN THOUSANDS EXCEPT PER SHARE DATA) - ----------------------------------------------------------------- ---------------------------------- -------------------------- FY 2008 Q3 FY 2007 Q3 - ----------------------------------------------------------------- ---------------------------------- -------------------------- GAAP net income $9,994 +9.5% $9,126 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Financing costs - Notes repurchases 177 359 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Captive insurance gains from asset reallocation -- (3,410) - ----------------------------------------------------------------- ---------------------------------- -------------------------- Income tax (expense)/benefit (62) 1,068 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Non-GAAP pro forma net income $10,109 +41.5% $7,143 - ----------------------------------------------------------------- ---------------------------------- -------------------------- GAAP net income per diluted share* $0.52 +8.3% $0.48 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Non-GAAP pro forma net income per diluted share* $0.53 +39.5% $0.38 - ----------------------------------------------------------------- ---------------------------------- -------------------------- * SHARES IN THOUSANDS USED IN Q3 PER DILUTED SHARE CALCULATIONS -- FY08: 19,200; FY07: 18,954
THIRD QUARTER FISCAL 2008 REVIEW - -------------------------------- Gross margin improved 290 basis points to 30.1% compared with 27.2% in the third quarter of fiscal 2007, resulting in a 20.8% increase in gross profit on the 9.3% increase in sales. Operating income of $19.2 million for the fiscal 2008 third quarter was up from $14.9 million for the fiscal 2007 third quarter, generating 32.4% operating leverage on the incremental sales, surpassing the Company's long-term sustainable operating leverage target of 20%-30%. As a percent of sales, operating income produced a 12.3% margin in the fiscal 2008 third quarter, up 180 basis points from the same period last year. The Products segment's volume growth and the Univeyor stabilization, as well as strength in the remainder of the Solutions segment, primarily the Shredder business, contributed to the improvement. The Company's continued strategic investments in selling and marketing expenses drove a $2.0 million increase in those expenses, with currency translation contributing an additional $0.8 million increase, both compared with the third quarter of fiscal 2007. As a percent of revenue, selling and marketing expenses were 11.5% for this year's quarter, compared with 10.6% last year. A $1.0 million increase in general and administrative expenses also reflects continued investments to support the Company's global expansion, including increases in staffing for new product engineering and development and also $0.3 million of currency translation. Lower debt in this year's third quarter resulted in a $0.6 million, or 14.6%, decrease in interest and debt expense for the current quarter and reflects the Company's activities to strengthen its capital structure by eliminating or efficiently refinancing higher cost debt. During the quarter, the Company redeemed $3.0 million of its 8 7/8% notes, incurring a one-time cost of $0.2 million to save $0.3 million of interest expense annually. Similarly during last year's quarter, the Company redeemed $3.7 million of its 10% notes, incurring a one-time cost of $0.4 million to save $0.4 million in annual interest expense. Investment income in the fiscal 2008 third quarter was $0.3 million, down from $3.8 million in the fiscal 2007 third quarter. Last year's quarter reflected $3.4 million in one-time pre-tax gains in the Company's captive insurance company portfolio due to an asset reallocation. The Company realized $0.8 million of other income in this year's quarter compared with $0.2 million last year, primarily from interest on invested cash. Working capital as a percent of sales was 19.7% at the end of the fiscal 2008 third quarter compared with 19.6% at the end of the prior year's third quarter and 21.2% at the end of the fiscal 2008 second quarter. CMCO's long term objective is to reduce working capital as a percent of sales to 15%. Page 2 of 12 Debt, net of cash, at December 30, 2007, was $88.8 million, or 24.1% of total capitalization, a reduction of $52.3 million from $141.1 million, or 37.7% of total capitalization, a year ago. At fiscal 2008 third quarter end, gross debt was $149.9 million, or 34.9% of total capitalization, a reduction of $23.3 million from $173.2 million, or 42.7% of total capitalization a year ago. The Company's availability on its $75 million line of credit with its bank group at December 30, 2007 was $63.6 million. The Company continues to realize the cash flow benefits of its U.S. net operating loss (NOL) carryforward, of which $6.2 million, representing approximately $2.2 million of cash tax savings, remained available as of December 30, 2007 and is expected to be fully utilized in the fiscal fourth quarter. The effective tax rate for the quarter was 40.8% compared with 38.2% for the prior year's quarter. The increase was primarily due to the recording of a valuation allowance against deferred tax assets of the Company's Univeyor business. The Company expects the rate to be in the 38% to 39% range for normal ongoing operations. Capital expenditures for the third quarter of fiscal 2008 were $2.4 million, relatively consistent with last year's $2.5 million. Capital spending is focused on new product development, the purchase of productivity-enhancing equipment and capital maintenance items at various manufacturing facilities. The Company anticipates capital spending to total approximately $11 to $12 million in fiscal 2008. PRODUCTS SEGMENT - ---------------- Products segment net sales for the third quarter of fiscal 2008 increased 10.7% compared with last year's third quarter and represented 90.5% of consolidated net sales. The fluctuation compared with last year's quarter is summarized as follows, in millions: Increased volume $ 8.5 6.7% Additional shipping day 2.1 1.7% Improved pricing 1.6 1.3% Foreign currency translation 3.7 2.9% Divested business * (2.3) (1.9%) --------- ------ Total $ 13.6 10.7% ========= ====== * Divested business is Larco Industrial Services, Ltd.; sale announced March 5, 2007 Products segment sales growth included significant contributions from Columbus McKinnon Europe operations as well as solid demand from the domestic hoist, crane and rigging businesses. Gross margin for the segment improved 180 basis points to 31.5% compared with 29.7% in last year's third quarter. Income from operations, as a percent of sales, was 13.5% for this period, an 80 basis point improvement over 12.7% in the fiscal 2007 third quarter. Despite increased selling and marketing investments, the Company continues to penetrate new markets and launch new products, driving revenue that more than offsets the effect of higher spending. Backlog stood at $54.9 million at the end of the quarter compared with backlog of $58.4 million and $63.0 million at the end of the fiscal 2008 second and first quarters, respectively. The decrease is primarily due to the fulfillment of large crane orders received in the fiscal first quarter. The time to convert the majority of Products segment backlog to sales averages from one day to a few weeks, and backlog for this segment normally represents four to five weeks of shipments, with backlog at December 30 representing approximately five weeks of shipments. SOLUTIONS SEGMENT - ----------------- Net sales for the Solutions segment were $14.7 million in the fiscal 2008 third quarter, slightly below last year's $15.2 million, driven primarily by the Company's tire shredder operation offsetting the decline in the Univeyor Page 3 of 12 business. Gross margin improved 1040 basis points to 16.8% compared with 6.4% last year. Further, operating income improved 1000 basis points to 1.8% compared with last year's negative 8.2% operating loss. Improved profitability was significantly affected by the results of operational restructuring at the Company's Univeyor business. Backlog for the Solutions segment at December 30, 2007 was $17.0 million, an increase from backlog of $15.7 million and $8.5 million at the end of the fiscal 2008 second and first quarters, respectively. The increase was driven primarily by strong demand within the segment's tire shredder business. For this segment, the average cycle time for backlog to convert to sales generally ranges from one to six months. Mr. Tevens stated, "The Solutions segment has been steadily improving over the last three quarters with our restructuring of the Univeyor business. However, because Univeyor's customer base and channels to market differ from our Products segment, we have concluded that Univeyor no longer strategically aligns with the rest of our business and recently announced that we are pursuing the possible sale of this business. We are pleased that the remainder of our Solutions business, specifically the tire shredder operation which sells a product that addresses tire waste regulatory requirements, is performing well." NINE-MONTH FISCAL 2008 REVIEW - ----------------------------- Net sales for the first nine months of fiscal 2008 were $454.7 million, up 5.0%, or $21.7 million compared with the first nine months of fiscal 2007. Gross profit of $136.6 million was 13.9% higher for this fiscal year's first nine months resulting in a 230 basis point improvement in gross profit margin to 30.0%. Selling, general and administrative (SG&A) expenses combined were $79.0 million in the first nine months of fiscal 2008 compared with $71.3 million in the prior fiscal year. As a percent of sales, SG&A was 17.4% and 16.5% for the fiscal 2008 and 2007 nine-month periods, respectively. As previously noted, the increase was primarily due to investments made to support the Company's strategic growth initiatives. Operating margin for the first nine months of fiscal 2008 was 12.4% compared with 11.3% for the first nine months of fiscal 2007, representing 35.8% operating leverage. Interest expense in the first nine months of fiscal 2008 was down $1.5 million, or 11.6%, to $11.2 million reflecting a $16.7 million year-over-year reduction in average debt outstanding. Net income was $29.0 million for the first nine months of fiscal 2008 compared with net income of $23.0 million for the first nine months of fiscal 2007. On a per diluted share basis, first nine months fiscal 2008 net income was $1.51 compared with $1.22 in the same period last year. During the fiscal 2008 period, the Company recorded net after-tax charges of $1.1 million, or $0.06 per diluted share, in financing costs. Similarly, during the first nine months of fiscal 2007, the Company recorded net after-tax charges of $3.2 million, or $0.17 per diluted share, in financing costs. Additionally, during fiscal 2007 the Company recorded a $3.4 million pre-tax investment gain, or a net after-tax gain of $2.2 million, representing $0.12 per diluted share, upon an asset reallocation. Excluding the effect of these unusual items, fiscal 2008 year-to-date pro forma net income per diluted share was $1.57, a 23.6% increase from fiscal 2007 year-to-date pro forma net income per diluted share of $1.27. Page 4 of 12
FY 2008/2007 YTD RECONCILIATION OF GAAP NET INCOME TO NON-GAAP PRO FORMA NET INCOME (IN THOUSANDS EXCEPT PER SHARE DATA) - ----------------------------------------------------------------- ---------------------------------- -------------------------- FY 2008 YTD FY 2007 YTD - ----------------------------------------------------------------- ---------------------------------- -------------------------- GAAP net income $28,967 +25.9% $23,012 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Financing costs - Notes repurchases 1,620 4,942 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Captive insurance gains from asset reallocation -- (3,410) - ----------------------------------------------------------------- ---------------------------------- -------------------------- Income tax (expense)/benefit (567) (536) - ----------------------------------------------------------------- ---------------------------------- -------------------------- Non-GAAP pro forma net income $30,020 +25.0% $24,008 - ----------------------------------------------------------------- ---------------------------------- -------------------------- GAAP net income per diluted share* $1.51 +23.8% $1.22 - ----------------------------------------------------------------- ---------------------------------- -------------------------- Non-GAAP pro forma net income per diluted share* $1.57 +23.6% $1.27 - ----------------------------------------------------------------- ---------------------------------- -------------------------- * SHARES IN THOUSANDS USED IN YTD PER DILUTED SHARE CALCULATIONS -- FY08: 19,144; FY07: 18,929
Net cash provided by operations was $38.0 million for the fiscal 2008 first nine months, a 39.5% increase from $27.2 million in the fiscal 2007 period due to increased profits and lower working capital requirements. However, working capital requirements, particularly inventories, continued to utilize cash during fiscal 2008. SUMMARY - ------- Mr. Tevens concluded, "We see sustained strength in global industrial markets, along with our diligent focus on profit generation, continuing to drive our profitable growth for the remainder of fiscal 2008. Products segment bookings for the third quarter were up in the mid-to-high single digit range over last year's third quarter. We are also pleased with the market reception of our various new products designed in accordance with international standards and suitable for global use, including hoists and rigging products. Our efforts in international markets including the eastern European emerging markets over the last two years are resulting in market share gains. In addition, we will continue to search for small, bolt-on acquisitions around the world to complement this organic growth while maintaining a conservative capital structure." 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 January 24, 2008 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 January 31, 2008 by dialing 1-866-395-7239. Alternatively, you may access an archive of the call until May 21, 2008 on Columbus McKinnon's web site at: http://www.cmworks.com/news/presentations.aspx. ---------------------------------------------- Page 5 of 12 SAFE HARBOR STATEMENT - --------------------- THIS NEWS 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 EFFECT OF OPERATING LEVERAGE, THE PACE OF BOOKINGS RELATIVE TO SHIPMENTS, THE ABILITY TO EXPAND INTO NEW MARKETS AND GEOGRAPHIC REGIONS, THE SUCCESS IN ACQUIRING NEW BUSINESS, THE SPEED AT WHICH SHIPMENTS IMPROVE, 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. Page 6 of 12
COLUMBUS MCKINNON CORPORATION CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA) THREE MONTHS ENDED ------------------ DECEMBER 30, 2007 DECEMBER 31, 2006 CHANGE ----------------- ----------------- ------ NET SALES $ 155,196 $ 142,044 9.3% Cost of products sold 108,522 103,421 4.9% ------------------------------------------------------ Gross profit 46,674 38,623 20.8% Gross profit margin 30.1 % 27.2 % Selling expense 17,818 14,989 18.9% General and administrative expense 9,516 8,566 11.1% Restructuring charges 149 128 16.4% Amortization 29 44 -34.1% ------------------------------------------------------ INCOME FROM OPERATIONS 19,162 14,896 28.6% ------------------------------------------------------ Interest and debt expense 3,445 4,034 -14.6% Cost of bond redemptions 177 359 -50.7% Investment income (261) (3,774) -93.1% Other income (835) (151) 453.0% ------------------------------------------------------ Income from continuing operations before income tax expense 16,636 14,428 15.3% Income tax expense 6,781 5,510 23.1% ------------------------------------------------------ Income from continuing operations 9,855 8,918 10.5% Income from discontinued operations 139 208 -33.2% ------------------------------------------------------ NET INCOME $ 9,994 $ 9,126 9.5% ====================================================== Average basic shares outstanding 18,753 18,544 1.1% Basic income per share: Continuing operations $ 0.52 $ 0.48 8.3% Discontinued operations 0.01 0.01 ------------------------------------------------------ Net income $ 0.53 $ 0.49 8.2% ====================================================== Average diluted shares outstanding 19,200 18,954 1.3% Diluted income per share: Continuing operations $ 0.51 $ 0.47 8.5% Discontinued operations 0.01 0.01 ------------------------------------------------------ Net income $ 0.52 $ 0.48 8.3% ======================================================
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COLUMBUS MCKINNON CORPORATION CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA) NINE MONTHS ENDED ----------------- DECEMBER 30, 2007 DECEMBER 31, 2006 CHANGE ----------------- ----------------- ------ NET SALES $ 454,716 $ 432,963 5.0% Cost of products sold 318,116 313,040 1.6% ------------------------------------------------------ Gross profit 136,600 119,923 13.9% Gross profit margin 30.0 % 27.7 % Selling expense 51,208 45,095 13.6% General and administrative expense 27,839 26,195 6.3% Restructuring charges 894 (278) -421.6% Amortization 82 131 -37.4% ------------------------------------------------------ INCOME FROM OPERATIONS 56,577 48,780 16.0% ------------------------------------------------------ Interest and debt expense 11,250 12,722 -11.6% Cost of bond redemptions 1,620 4,942 -67.2% Investment income (812) (4,560) -82.2% Other income (2,312) (1,444) 60.1% ------------------------------------------------------ Income from continuing operations before income tax expense 46,831 37,120 26.2% Income tax expense 18,281 14,673 24.6% ------------------------------------------------------ Income from continuing operations 28,550 22,447 27.2% Income from discontinued operations 417 565 -26.2% ------------------------------------------------------ NET INCOME $ 28,967 $ 23,012 25.9% ====================================================== Average basic shares outstanding 18,702 18,491 1.1% Basic income per share: Continuing operations $ 1.53 $ 1.21 26.4% Discontinued operations 0.02 0.03 ------------------------------------------------------ Net income $ 1.55 $ 1.24 25.0% ====================================================== Average diluted shares outstanding 19,144 18,929 1.1% Diluted income per share: Continuing operations $ 1.49 $ 1.19 25.2% Discontinued operations 0.02 0.03 ------------------------------------------------------ Net income $ 1.51 $ 1.22 23.8% ======================================================
Page 8 of 12 COLUMBUS MCKINNON CORPORATION CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) DECEMBER 30, 2007 MARCH 31, 2007 ----------------- -------------- ASSETS Current assets: Cash and cash equivalents $ 61,073 $ 48,655 Trade accounts receivable 93,928 97,269 Unbilled revenues 11,181 15,050 Inventories 91,612 77,179 Prepaid expenses 17,753 18,029 ------------------------------ Total current assets 275,547 256,182 ------------------------------ Net property, plant, and equipment 56,684 55,231 Goodwill and other intangibles, net 186,705 185,903 Marketable securities 30,213 28,920 Deferred taxes on income 20,549 34,460 Other assets 6,595 4,942 ------------------------------ TOTAL ASSETS $ 576,293 $ 565,638 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable to banks $ 10,356 $ 9,598 Trade accounts payable 36,014 35,896 Accrued liabilities 57,698 52,344 Restructuring reserve 15 599 Current portion of long-term debt 460 297 ------------------------------ Total current liabilities 104,543 98,734 ------------------------------ Senior debt, less current portion 6,072 26,168 Subordinated debt 133,000 136,000 Other non-current liabilities 53,019 63,411 ------------------------------ Total liabilities 296,634 324,313 ------------------------------ Shareholders' equity: Common stock 189 188 Additional paid-in capital 177,296 174,654 Retained earnings 114,018 85,237 ESOP debt guarantee (2,995) (3,417) Accumulated other comprehensive loss (8,849) (15,337) ------------------------------ Total shareholders' equity 279,659 241,325 ------------------------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 576,293 $ 565,638 ============================== Page 9 of 12
COLUMBUS MCKINNON CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) NINE MONTHS ENDED ----------------- DECEMBER 30, 2007 DECEMBER 31, 2006 ----------------- ----------------- OPERATING ACTIVITIES: Income from continuing operations $ 28,550 $ 22,447 Adjustments to reconcile income from continuing operations to net cash providedby operating activities: Depreciation and amortization 6,378 6,306 Deferred income taxes 13,911 12,526 Gain on sale of investments/real estate (433) (4,745) Loss on early retirement of bonds 1,244 4,069 Stock option expense 944 1,040 Amortization/write-off of deferred financing costs 814 1,385 Changes in operating assets and liabilities: Trade accounts receivable 3,439 5,365 Unbilled revenues and excess billings 4,912 (1,187) Inventories (13,317) (10,890) Prepaid expenses 349 (1,564) Other assets (1,045) (297) Trade accounts payable (502) (2,033) Accrued and non-current liabilities (7,259) (5,192) ------------------------------- Net cash provided by operating activities 37,985 27,230 ------------------------------- INVESTING ACTIVITIES: (Purchase) sale of marketable securities, net (1,397) 2,052 Capital expenditures (7,421) (6,825) Proceeds from sale of property 5,504 2,051 Proceeds from discontinued operations note receivable 417 565 ------------------------------- Net cash used by investing activities (2,897) (2,157) ------------------------------- FINANCING ACTIVITIES: Proceeds from stock options exercised 1,309 2,334 Net (borrowings) payments under revolving line-of-credit agreements (182) 2,294 Repayment of debt (27,728) (43,668) Deferred financing costs incurred (2) (456) Other 422 438 ------------------------------- Net cash used by financing activities (26,181) (39,058) ------------------------------- EFFECT OF EXCHANGE RATE CHANGES ON CASH 3,511 512 ------------------------------- Net change in cash and cash equivalents 12,418 (13,473) Cash and cash equivalents at beginning of year 48,655 45,598 ------------------------------- Cash and cash equivalents at end of period $ 61,073 $ 32,125 ===============================
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COLUMBUS MCKINNON CORPORATION BUSINESS SEGMENT DATA (IN THOUSANDS, EXCEPT PERCENTAGE DATA) QUARTER ENDED QUARTER ENDED DECEMBER 30, 2007 DECEMBER 31, 2006 % CHANGE ---------------------------- ------------------------- ----------- PRODUCTS - -------- Net sales $ 140,478 $ 126,863 10.7% Gross profit 44,199 37,654 17.4% MARGIN 31.5 % 29.7 % Income from operations 18,901 16,143 17.1% MARGIN 13.5 % 12.7 % SOLUTIONS - --------- Net sales $ 14,718 $ 15,181 -3.0% Gross profit 2,475 969 155.4% MARGIN 16.8 % 6.4 % Income from operations 261 (1,247) -120.9% MARGIN 1.8 % (8.2) % CONSOLIDATED - ------------ Net sales $ 155,196 $ 142,044 9.3% Gross profit 46,674 38,623 20.8% MARGIN 30.1 % 27.2 % Income from operations 19,162 14,896 28.6% MARGIN 12.3 % 10.5 % NINE MONTHS ENDED NINE MONTHS ENDED DECEMBER 30, 2007 DECEMBER 31, 2006 % CHANGE ---------------------------- ------------------------- ----------- PRODUCTS - -------- Net sales $ 417,556 $ 384,039 8.7% Gross profit 130,530 114,967 13.5% MARGIN 31.3 % 29.9 % Income from operations 57,380 49,991 14.8% MARGIN 13.7 % 13.0 % SOLUTIONS - --------- Net sales $ 37,160 $ 48,924 -24.0% Gross profit 6,070 4,956 22.5% MARGIN 16.3 % 10.1 % Income from operations (803) (1,211) -33.7% MARGIN (2.2) % (2.5) % CONSOLIDATED - ------------ Net sales $ 454,716 $ 432,963 5.0% Gross profit 136,600 119,923 13.9% MARGIN 30.0 % 27.7 % Income from operations 56,577 48,780 16.0% MARGIN 12.4 % 11.3 %
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COLUMBUS MCKINNON CORPORATION ADDITIONAL DATA DECEMBER 30, 2007 DECEMBER 31, 2006 MARCH 31, 2007 ----------------- ----------------- -------------- BACKLOG (IN MILLIONS) Products segment $ 54.9 $ 54.7 $ 53.2 Solutions segment $ 17.0 $ 9.2 $ 9.6 TRADE ACCOUNTS RECEIVABLE days sales outstanding 55.1 days 58.7 days 56.4 days INVENTORY TURNS PER YEAR (based on cost of products sold) 4.7 turns 4.8 turns 5.8 turns DAYS' INVENTORY 77.0 days 76.2 days 62.8 days TRADE ACCOUNTS PAYABLE days payables outstanding 30.2 days 33.7 days 29.1 days WORKING CAPITAL AS A % OF SALES 19.7 % 19.6 % 20.1 % DEBT TO TOTAL CAPITALIZATION PERCENTAGE 34.9 % 42.7 % 41.6 % DEBT, NET OF CASH, TO TOTAL CAPITALIZATION 24.1 % 37.7 % 33.8 %
SHIPPING DAYS BY QUARTER Q1 Q2 Q3 Q4 TOTAL -- -- -- -- ----- FY09 63 63 60 65 251 FY08 63 63 60 63 249 FY07 63 63 59 64 249 Page 12 of 12 -----END PRIVACY-ENHANCED MESSAGE-----