Columbus McKinnon Corporation Announces Third Quarter
Results
Third Quarter Results are in the Expected Range;
Nine Month Results are 14.5% Better Than the Same Period Last Year
AMHERST, N.Y., Jan. 23 Columbus McKinnon Corporation
, today announced financial results for the third quarter and
first nine months of fiscal 2001 which ended on December 31, 2000.
"Despite current general market conditions, our results for the quarter
are within the range that we announced last month and results for the nine
months represent a significant improvement over the same period of last year,"
said Timothy T. Tevens, President and Chief Executive Officer.
Third quarter consolidated net sales were $175.1 million, compared to
$174.2 million a year ago. Income from operations was $13.7 million for the
current quarter and $16.2 million last year. Net income for the third quarter
of fiscal 2001 was $1.3 million or $0.09 per diluted share, compared with
$3.3 million or $0.23 per diluted share a year ago.
"This quarter's results reflect a shift in our sales mix with higher
volumes in our lower margin Solutions - Automotive segment and lower volumes
in our more profitable Products segment," said Tevens. "The decline in sales
in our Products and Solutions - Industrial segments is due to the current
general economic conditions that broadly impacted capital spending and reduced
demand for industrial products. Sales for our Solutions - Automotive segment
were up nearly 32 percent for the quarter, although gross profit margins
narrowed for both Solutions segments due to greater competitive pressures."
Consolidated net sales for the first nine months of fiscal 2001 were
$552.5 million, an increase of $14.7 million or 2.7 percent over the
comparable period last year. Net income for the first nine months of fiscal
2001 was $11.6 million, or $0.81 per diluted share, an increase of
14.5 percent and 13.7 percent, respectively, compared to $10.2 million, or
$0.71 per diluted share, for the comparable period of fiscal 2000.
In commenting on expected fourth quarter results Tevens said: "Our fourth
quarter is typically a strong one for our Products segment, so we expect a
significant improvement in our financial results over the third quarter.
However, as previously announced, due to general economic conditions, we
anticipate fourth quarter diluted earnings per share will be 25% to 35% below
last year's $0.49 and that earnings per share for this fiscal year will range
between $1.13 and $1.18 per diluted share, compared with last year's $1.20 per
diluted share."
Tevens concluded: "We expect a near-term continuation of current economic
conditions, and look for some improvement if interest rates decline further
which would have a favorable effect on our interest costs and customer capital
expenditures and general industrial spending. We also continue to have a
solid project backlog in both Solutions segments and remain focused on making
further productivity improvements in our operations. With our fundamentally
strong core business, leading market share in key product lines and reputation
for quality products, we are positioned to resume revenue and income growth
when the current economic cycle changes."
Columbus McKinnon's Board of Directors declared a regular quarterly
dividend of $.07 per common share, payable on April 5, 2001 to shareholders of
record on March 22, 2001.
The Company's previously announced evaluation of strategic alternatives to
maximize shareholder value remains in process with Bear, Stearns & Co. Inc.
acting as CM's financial advisor.
Columbus McKinnon Corporation
Consolidated Income Statements
Three Months Ended
12/31/00 1/2/00
(In thousands, except per share and percentage data)
Net sales $175,078 $174,173
Cost of products sold 135,544 130,768
Gross profit 39,534 43,405
Gross profit margin 22.6% 24.9%
Selling, general and administrative expense 21,848 23,167
Income from operations before amortization 17,686 20,238
Amortization 4,014 4,062
Income from operations 13,672 16,176
Interest and other expense, net 9,291 8,299
Income before income taxes 4,381 7,877
Income tax expense 3,085 4,623
Net income $1,296 $3,254
Average basic shares outstanding 14,326 14,209
Basic income per share $0.09 $0.23
Average diluted shares outstanding 14,326 14,221
Diluted income per share $0.09 $0.23
Columbus McKinnon Corporation
Consolidated Income Statements
Nine Months Ended
12/31/00 1/2/00
(In thousands, except per share and percentage data)
Net sales $552,450 $537,782
Cost of products sold 420,712 407,532
Gross profit 131,738 130,250
Gross profit margin 23.8% 24.2%
Selling, general and administrative expense 66,963 68,606
Proxy contest related expenses -- 965
Income from operations before amortization 64,775 60,679
Amortization 12,045 12,064
Income from operations 52,730 48,615
Interest and other expense, net 26,670 24,319
Income before income taxes 26,060 24,296
Income tax expense 14,430 14,136
Net income $11,630 $10,160
Average basic shares outstanding 14,307 14,109
Basic income per share $0.81 $0.72
Average diluted shares outstanding 14,307 14,214
Diluted income per share $0.81 $0.71
COLUMBUS McKINNON CORPORATION
CONSOLIDATED BALANCE SHEET
(In Thousands)
December 31, January 2,
2000 2000
ASSETS
Current assets:
Cash and cash equivalents $6,630 $14,128
Trade accounts receivable 143,442 134,818
Unbilled revenues 40,158 17,620
Inventories 118,538 115,020
Net assets held for sale 7,765 9,270
Prepaid expenses 6,656 8,852
Total current assets 323,189 299,708
Net property, plant, and equipment 87,090 87,736
Goodwill and other intangibles, net 326,939 349,208
Marketable securities 23,424 22,078
Deferred taxes on income 4,659 5,131
Other assets 6,992 7,871
Total assets $772,293 $771,732
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks $3,870 $2,212
Trade accounts payable 40,854 50,557
Excess billings 4,890 6,247
Accrued liabilities 49,335 44,707
Current portion of long-term debt 798 1,712
Total current liabilities 99,747 105,435
Senior debt, less current portion 225,148 229,871
Subordinated debt 199,614 199,561
Other non-current liabilities 37,804 37,515
Total liabilities 562,313 572,382
Shareholders' equity:
Common stock 149 149
Additional paid-in capital 107,071 107,271
Retained earnings 122,208 107,642
ESOP debt guarantee (8,078) (9,240)
Unearned restricted stock (2,173) (3,613)
Accumulated other comprehensive loss (9,197) (2,859)
Total shareholders' equity 209,980 199,350
Total liabilities and shareholders'
equity $772,293 $771,732
COLUMBUS McKINNON CORPORATION - BUSINESS SEGMENTS
(In thousands, except for percentages)
Solutions- Solutions-
Products Industrial Automotive Consolidated
Quarter ended 12/31/00
Net sales $112,242 $16,422 $46,414 $175,078
Gross profit 31,697 3,287 4,550 39,534
Margin 28.2% 20.0% 9.8% 22.6%
Income from operations
before amortization 14,458 935 2,293 17,686
Margin 12.9% 5.7% 4.9% 10.1%
Quarter ended 1/2/00
Net sales 121,074 17,911 35,188 174,173
Gross profit 34,936 4,433 4,036 43,405
Margin 28.9% 24.8% 11.5% 24.9%
Income from operations
before amortization 16,418 2,161 1,659 20,238
Margin 13.6% 12.1% 4.7% 11.6%
Nine months ended 12/31/00
Net sales 359,408 51,348 141,694 552,450
Gross profit 106,629 10,909 14,200 131,738
Margin 29.7% 21.2% 10.0% 23.8%
Income from operations
before amortization 53,084 4,070 7,621 64,775
Margin 14.8% 7.9% 5.4% 11.7%
Nine months ended 1/2/00
Net sales 376,946 49,327 111,509 537,782
Gross profit 112,898 11,951 5,401 130,250
Margin 30.0% 24.2% 4.8% 24.2%
Income from operations
before amortization 56,258 5,391 (970) 60,679
Margin 14.9% 10.9% (0.9%) 11.3%
