Core Insights - Columbus McKinnon Corporation reported a decrease in net sales for both the fourth quarter and the full fiscal year 2025, with a net loss attributed to various non-cash costs and operational challenges [1][5][10]. Fiscal Year 2025 Highlights - Net sales for fiscal year 2025 were $963.0 million, down 5% from $1,013.5 million in fiscal year 2024 [5][16]. - The company experienced a net loss of $5.1 million for the year, which included significant non-cash pension settlement costs and factory consolidation costs [5][16]. - Adjusted EBITDA for the year was $150.5 million, with an adjusted EBITDA margin of 15.6% [5]. Fourth Quarter 2025 Highlights - Fourth quarter net sales were $246.9 million, a decrease of 7% compared to $265.5 million in the same quarter of the previous year [3][17]. - U.S. sales fell by 10.1%, while non-U.S. sales decreased by 2.7% [3][4]. - Gross profit for the fourth quarter was $79.8 million, down 15.4% from $94.3 million in the prior year, resulting in a gross margin of 32.3% [4][17]. Orders and Backlog - The company reported record orders of $1.0 billion, up 3%, driven by growth in project-related business and precision conveyance [5][26]. - The backlog increased to $322.5 million, reflecting a 15% rise compared to the previous year [5][26]. Kito Crosby Acquisition - Columbus McKinnon is progressing towards the acquisition of Kito Crosby, which is expected to enhance its product offerings and geographic reach [7][8]. - The acquisition is subject to regulatory clearance and is anticipated to close later in the calendar year [8]. Fiscal Year 2026 Guidance - The company expects net sales and adjusted EPS to be flat to slightly up for fiscal 2026, not accounting for the Kito Crosby acquisition [10][11]. - The guidance reflects ongoing challenges from tariff policies impacting supply chain costs [10][11]. Capital Allocation - Columbus McKinnon plans to prioritize debt repayment to strengthen its balance sheet while maintaining consistent dividend payments [9].

Group 1 - Columbus McKinnon Corporation will release its fourth quarter and full year fiscal 2025 results on May 28, 2025, before the market opens [1] - A conference call will be held on the same day at 10:00 a.m. Eastern Time to discuss the financial and operating results, as well as corporate strategy and outlook [2] - The conference call will be available via live webcast and a replay will be accessible for two weeks after the call [2] Group 2 - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions for material handling, focusing on commercial and industrial applications [3] - Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems [3] - The company emphasizes safety and quality through superior design and engineering know-how [3]

Core Insights - Columbus McKinnon Corporation has been selected as the preferred supplier for stacking and intralogistics technology for PowerCo, a subsidiary of Volkswagen Group, to support its gigafactory projects in Canada and Spain [1][2] - The company will provide its advanced montrac® precision conveyance technology for battery cell stacking and transportation within the new gigafactories, indicating a significant growth opportunity with over $100 million in potential orders in the coming years [2][4] Company Overview - Columbus McKinnon is a leading designer and manufacturer of intelligent motion solutions, focusing on efficient material handling technologies [3] - The company’s product offerings include hoists, crane components, precision conveyor systems, and digital power and motion control systems, emphasizing safety and quality through superior design [3] Technology and Innovation - The montrac® system, acquired from montratec GmbH, is designed for fully automated and energy-efficient material flow, suitable for various industrial applications including cleanroom production [4][5] - The technology features a standardized IO-Link control interface, enhancing its adaptability to customer-specific applications and process expansions [4] Market Position - Columbus McKinnon is reinforcing its leadership in the rapidly growing electrification and battery production sectors, evidenced by a fourth consecutive quarter of significant orders related to battery production [7]

Group 1 - Columbus McKinnon Corporation will present at the Sidoti Small Cap Virtual Investor Conference on March 20, 2025, at approximately 1:45 p.m. Eastern Time [1] - A live audio webcast of the presentation will be available on the Columbus McKinnon Investor Relations webpage, with a replay accessible until April 3, 2025 [2] - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions, focusing on commercial and industrial applications [3] Group 2 - Key products of Columbus McKinnon include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems [3] - The company emphasizes safety and quality through superior design and engineering know-how [3]

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].