Sep 30, 2022

Columbus McKinnon Q2 2023 Earnings Report

Columbus McKinnon achieved record operating income due to regional realignment and improved collaboration, despite challenges from supply chain shortages.

Key Takeaways

Columbus McKinnon reported a solid second quarter with revenue up 3.6% and record operating income. The company benefited from its regional realignment initiative, which lowered costs and improved collaboration. Strong cash generation enabled debt reduction and increased financial flexibility.

Revenue increased by 8.5% on a constant currency basis.

Operating income reached a record of $27.4 million.

Earnings per diluted share were $0.49, with adjusted EPS at $0.73.

Adjusted EBITDA margin reached a record of 16.8%.

Total Revenue
$232M
Previous year: $224M
+3.6%
EPS
$0.73
Previous year: $0.74
-1.4%
Adjusted EBITDA margin
16.8%
Previous year: 16.1%
+4.3%
Days sales outstanding
55.1
Inventory turns per year
3
Gross Profit
$86.3M
Previous year: $81.1M
+6.4%
Cash and Equivalents
$88.9M
Previous year: $105M
-15.6%
Free Cash Flow
$15M
Previous year: $22.2M
-32.5%
Total Assets
$1.63B
Previous year: $1.59B
+2.7%

Columbus McKinnon

Columbus McKinnon

Columbus McKinnon Revenue by Geographic Location

Forward Guidance

Columbus McKinnon expects third quarter fiscal 2023 sales of approximately $225 million to $235 million at current exchange rates.

Positive Outlook

  • Better earnings profile
  • Improved product and market mix
  • Streamlined team
  • Intensely focused on execution
  • Deliberate in actions to create value for customers

Challenges Ahead

  • Macro environment is unsettling
  • Supply chain challenges
  • Inflation
  • Global economic and business conditions
  • Competitor responses to the Company's products and services

Revenue & Expenses

Visualization of income flow from segment revenue to net income