Columbus McKinnon (CMCO) Tops Q3 EPS by 11c, Revenues Beat; Offers 4Q Revenue Guidance Above Consensus

Columbus McKinnon (NASDAQ: CMCO) reported Q3 EPS of $0.27, $0.11 better than the analyst estimate of $0.16. Revenue for the quarter came in at $166.5 million versus the consensus estimate of $156.73 million.

Third Quarter Highlights

• Evolution of strategy and Columbus McKinnon Business System (CMBS) delivered solid operating results
• Revenue of $166.5 million was up 5.5% compared with the trailing second quarter
• Operating income was $10.4 million with adjusted operating income1 of $11.2 million
• Strong cash generation of $25.0 million provided by operating activities; Free cash flow of $21.9 million2
• Backlog grew to $152.4 million, up 22% over prior-year period and 4% sequentially
• Pivoting to growth with focus on organic initiatives and acquisition pipeline

David Wilson, President and CEO of Columbus McKinnon, commented, “We delivered solid results in adverse conditions with revenue exceeding our expectations. Of note, our ability to generate cash was demonstrated with free cash flow2 of $22 million. We are excited about what the future holds even as we continue to operate in a less than ideal external environment. We are optimistic that growth will accelerate in fiscal 2022 as demand improves and channel partners replenish inventories. Given current macroeconomic forecasts, we expect to return to more normalized revenue levels by this time next year. In the meantime, we are consistently strengthening our earnings power by driving operational excellence with tools such as 80/20. In fact, we have realized $9 million in contributions to operating income from these efforts this fiscal year.”

He continued, “Even as we have been navigating this complex environment, we are evolving our strategy, now defined as Blueprint for Growth 2.0. The Core Growth Framework we are creating is underpinned by the advancement of CMBS, which develops core competencies and enables us to scale. Our organic growth initiatives, which include improvements in customer experience, new product development, and channel expansion, are centered on our customers’ requirements for continuous improvement in productivity, safety and uptime. We are realizing success with our product launches and believe we are enhancing our competitive position in our markets. We are also actively working our acquisition pipeline and see the potential to expand our reach into growth markets by building on our expertise in intelligent motion for material handling.”

GUIDANCE:

Columbus McKinnon sees Q4 2021 revenue of $175-180 million, versus the consensus of $165.77 million.

The Company expects fourth quarter fiscal 2021 sales to be within a range of approximately $175 million to $180 million at current exchange rates.

Mr. Wilson concluded, “We are encouraged by early indications of an improving landscape and energized with the evolution of our strategy. We have many strengths to leverage as we shift our strategic lens to be more outside-in focused. Importantly, we have identified that there is significant potential to strengthen, grow, expand and even to reimagine our core. We look forward to providing an update on Blueprint for Growth 2.0 in the first quarter of fiscal 2022.”

For earnings history and earnings-related data on Columbus McKinnon (CMCO) click here.

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