Financial Performance - Net sales for Q3 FY25 were $234.1 million, a decrease of $20.0 million or 7.9% compared to Q3 FY24[3] - GAAP EPS for Q3 FY25 was $0.14, a decrease of 58.8% from $0.34 in Q3 FY24[5] - Net sales for the nine months ended December 31, 2024, were $716.1 million, a decrease of 4.3% compared to $748.0 million for the same period in 2023[18] - Gross profit for the nine months ended December 31, 2024, was $245.9 million, down 12.4% from $280.5 million in 2023, resulting in a gross profit margin of 34.3%[18] - Income from operations decreased by 39.2% to $49.6 million for the nine months ended December 31, 2024, compared to $81.7 million in 2023[18] - Net loss for the nine months ended December 31, 2024, was $2.5 million, a significant decline from a net income of $34.8 million in 2023[18] - Net income for the three months ended December 31, 2024, is $4.0 million, compared to $9.7 million in the same period last year[40] - Net income for the three months ended December 31, 2024, was $3.96 million, compared to $9.73 million for the same period in 2023, reflecting a decrease of 59.3%[42] Operating Metrics - Operating margin for Q3 FY25 was 7.6%, down from 10.6% in the prior year, reflecting a decline of 300 basis points[5] - Orders decreased by 4%, driven by a 6% decrease in short-cycle orders, while EMEA orders increased by 1%[3] - The backlog remains healthy at $296.5 million, indicating continued demand normalization[3] - Total backlog as of December 31, 2024, is $296.5 million, a decrease of 6.9% from $317.6 million on September 30, 2024[29] - Long-term backlog represents 56.0% of total backlog, up from 54.3% in the previous quarter[29] Cash Flow and Debt - The company repaid $15 million of debt in Q3 FY25 and anticipates total debt repayment of $60 million for FY25[3] - Cash and cash equivalents decreased significantly to $41.2 million as of December 31, 2024, from $114.1 million at the beginning of the year[20] - The company reported a net cash used for operating activities of $10.0 million for the nine months ended December 31, 2024, down from $28.6 million in 2023[22] - Net cash provided by operating activities for the three months ended December 31, 2024, is $11.4 million, compared to $9.4 million in the prior quarter[29] - Free Cash Flow for the three months ended December 31, 2024, is $6.2 million, an increase from $4.0 million in the previous quarter[29] - Total debt as of December 31, 2024, was $485.80 million, down from $550.04 million in 2023[44] - The net leverage ratio increased to 3.00x as of December 31, 2024, compared to 2.58x in the previous year[44] Research and Development - Research and development expenses decreased by 20.4% to $5.3 million, representing 2.3% of net sales[15] - Research and development expenses for the nine months ended December 31, 2024, were $17.6 million, representing 2.5% of net sales, down from $19.1 million or 2.6% in 2023[18] Factory and Operational Changes - A consolidation of two additional factories was initiated as part of the ongoing 80/20 footprint simplification plan[2] - The company incurred $14.32 million in new factory start-up costs in Monterrey, Mexico, during the twelve months ended December 31, 2024[44] Dividends and Shareholder Returns - The company declared dividends of $0.14 per common share, consistent with the previous year[18]

February 10, 2025 Q3 Fiscal 2025 Earnings & Kito Crosby Deal Announcement David Wilson President & Chief Executive Officer Gregory Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer Safe Harbor Statement This presentation and the accompanying oral discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements are generally identified b ...

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $0.56 on sales of $234 million, reflecting an $0.08 impact from unfavorable foreign exchange movements [10][24] - Net sales decreased by 8% year-over-year, primarily due to a 9% decline in short-cycle sales [19][20] - Gross profit decreased by $11.8 million, with a GAAP gross margin of 35.1% and an adjusted gross margin of 36.8% [21][22] - Adjusted EBITDA was $37.8 million with an adjusted EBITDA margin of 16.1% [25] - Free cash flow was $6.2 million, a decrease of $16.9 million compared to the prior year [25][26] Business Line Data and Key Metrics Changes - Short-cycle orders were down 6% year-over-year, while project-related orders remained flat [16] - Precision conveyance grew by 16% and linear motion was up 8% from the prior year [17] - Project-related backlog increased by 3%, driven by strength in precision conveyance and linear motion [18] Market Data and Key Metrics Changes - U.S. customers exhibited cautious behavior due to evolving policy environments, particularly regarding tariffs [11] - Demand in Europe, especially in Germany and France, was subdued [11] Company Strategy and Development Direction - The company is consolidating two smaller precision conveyance factories into its largest U.S. facility as part of its footprint simplification plan [13][14] - The acquisition of Kito Crosby is expected to enhance scale, market position, and financial performance, creating a combined entity with over $2 billion in sales [31][32] - The strategic combination aims to leverage industry megatrends such as nearshoring and labor scarcity [41][42] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about medium to long-term business prospects despite short-term challenges [12][20] - The company anticipates a mid-single-digit sales decrease year-over-year for fiscal 2025, resulting in a low teens decline in adjusted EPS [28][29] - Management is confident in generating over $200 million of free cash flow annually post-acquisition [68] Other Important Information - The company expects to achieve $70 million in net cost synergies by the end of year 3 post-acquisition [32][45] - The acquisition is expected to be accretive to adjusted earnings per share in the first year [34] Q&A Session Summary Question: Early prioritizations for the $70 million in cost savings - Management outlined categories including supply chain optimization and operational efficiency as primary focus areas for cost savings [56] Question: Longer-term margin profile differences between the two businesses - Kito Crosby's portfolio includes critical lifting and securement consumables, which have a more resilient revenue profile [60][62] Question: Concerns about leveraging up in a global uncertainty environment - Management expressed confidence in the free cash flow generation of the combined businesses and expects EBITDA to grow [68][70] Question: Overview of Kito's facilities and tariff implications - Kito's facilities are generally regionally located, with Japan supplying products to the U.S., which poses a moderate risk regarding tariffs [73] Question: Impact of the acquisition on current consolidation efforts - The acquisition fits well within the company's existing growth framework and will not pause current consolidation plans [78][84] Question: Confidence in synergy numbers amid trade war uncertainties - Management believes the synergy targets are achievable and has conducted thorough assessments to validate these numbers [86] Question: Price multiple for Kito Crosby - The acquisition price multiple is 8 times post-synergy leverage and just over 10 pre-synergy [96][98] Question: Kito Crosby's sales and gross margin - Kito Crosby reported $1.1 billion in sales with a gross margin in the high 30s to 40% range [100][102]

Group 1: Earnings Performance - Columbus McKinnon reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.74 per share, and down from $0.74 per share a year ago [1] - The earnings surprise was -24.32%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] - The company posted revenues of $234.14 million for the quarter, missing the Zacks Consensus Estimate by 6.52%, and down from $254.14 million year-over-year [3] Group 2: Stock Performance and Outlook - Columbus McKinnon shares have declined approximately 8% since the beginning of the year, while the S&P 500 has gained 2.5% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates for the coming quarter at $0.93 on revenues of $278.66 million, and $2.98 on revenues of $1.01 billion for the current fiscal year [8] Group 3: Industry Context - The Manufacturing - Material Handling industry, to which Columbus McKinnon belongs, is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [9]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-34362 For the quarterly period ended December 31, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Columbus McKinnon Corporation (Exact name of registrant as specified in its charter) New York 16-0547600 (St ...

Core Viewpoint - Columbus McKinnon Corporation has announced a definitive agreement to acquire Kito Crosby Limited for $2.7 billion in an all-cash transaction, aimed at enhancing its position as a leading provider of intelligent motion solutions in material handling [1][2][4]. Company Overview - Columbus McKinnon is a designer, manufacturer, and marketer of intelligent motion solutions, focusing on material handling applications [15]. - Kito Crosby is a global leader in lifting solutions, with a strong portfolio and nearly 4,000 employees serving over 50 countries [2][16]. Transaction Details - The acquisition is valued at approximately $2.7 billion, with an expected closing later in the year, subject to regulatory approvals [1][4]. - The transaction is expected to create around $70 million in annual net cost synergies, improving Adjusted EBITDA margins to over 23% [4][8]. - The combined company is projected to have annual revenue of $2.1 billion and Adjusted EBITDA of $486 million on a pro-forma basis [8][9]. Strategic Rationale - The acquisition is seen as a strategic move to strengthen Columbus McKinnon's market position, leveraging favorable trends such as reshoring, infrastructure investment, and rising automation needs [2][4]. - The combination is expected to enhance the product portfolio and expand into attractive verticals and geographies, delivering exceptional innovation to customers [2][4]. Financial Implications - The transaction will be funded through $2.6 billion in committed debt financing and $0.8 billion in perpetual convertible preferred equity from CD&R [4][10]. - The combined cash flow generation is anticipated to enable a reduction in the Net Leverage Ratio from approximately 4.8x to about 3.0x within two years post-closing [9][10]. Management and Governance - CD&R's investment will lead to the addition of new members to Columbus McKinnon's Board of Directors, enhancing governance and operational expertise [6][7]. - The management teams of both companies share values of safety, quality, and customer focus, which are expected to create value for all stakeholders [3][5].

CHARLOTTE, N.C., Feb. 10, 2025 /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 third quarter, which ended December 31, 2024. Third Quarter 2025 Highlights (compared with prior-year period, except where otherwise noted) Net sales of $234.1 million with 7.6% operating margin or 10.9% on an adjusted b ...

CHARLOTTE, N.C., Jan. 28, 2025 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, will release its third quarter fiscal 2025 results after the markets close on Monday, February 10, 2025.Following the release, management will host a conference call at 5:00 p.m. Eastern Time to review the financial and operating results for the period and discuss its corporate strategy and outlook.  The conference c ...

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Third Year of Donations to the Organization Continues Company's Commitment to Improving People's Lives and Bettering the Communities Where it OperatesCHARLOTTE, N.C., Dec. 12, 2024 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company), a leading designer and manufacturer of intelligent motion solutions, products and technologies for material handling, donated $15,000 to Habitat for Humanity of the Charlotte Region through its CMCO Cares program. This contribution ...