Columbus McKinnon Corp. (CMCO, Financial) filed Quarterly Report for the period ended 2009-08-05.
Columbus McKinnon is a broad-line designer manufacturer and supplier of sophisticated material handling products and integrated material handling solutions that are widely distributed to industrial and consumer markets worldwide. The Company\'s material handling products are sold omestically and internationally principally to third party distributors and to a lesser extent directly to manufacturers and other end-users. The Company\'s integrated material handling solutions businesses deal directly with end-users. Columbus McKinnon Corp. has a market cap of $263.7 million; its shares were traded at around $13.85 with a P/E ratio of 10.6 and P/S ratio of 0.4. Columbus McKinnon Corp. had an annual average earning growth of 16.4% over the past 5 years.
Selling expenses were $16,477 and $18,202 in the fiscal 2010 and 2009 quarters, respectively. This decrease reflects aggressive efforts to reduce or eliminate costs, as well as $500 lower commissions on lower sales volume, despite the addition of $3,000 of expenses associated with the Pfaff business and continued investments in emerging markets. Additionally, foreign currency translation had an $800 favorable impact on selling expenses. As a percentage of consolidated net sales, selling expenses were 13.8% and 12.0% in the fiscal 2010 and 2009 quarters, respectively.
Net cash provided by operating activities was $4,871 for the quarter ended June 30, 2009 compared with $9,831 for the quarter ended June 29, 2008. The net cash provided by operating activities for the quarter ended June 30, 2009 was primarily the result of $5,277 of cash provided by changes in operating assets and liabilities driven by a $7,163 decrease in accounts receivable and a $6,434 decrease in inventory, which were partially offset by an $8,069 decrease in accounts payable. The changes in operating assets and liabilities were the result of the decline in net sales due to the continued weakness in the global economy. A net loss of $2,398 and a $1,534 negative effect on cash from deferred income taxes were offset by non-cash charges for depreciation and amortization of $3,059 and stock-based compensation of $501. The net cash provided by operating activities for the quarter ended June 29, 2008 was primarily the result of $11,766 of income from continuing operations plus non-cash charges of depreciation and amortization of $2,172 and deferred income taxes of $1,180, which were partially offset by $3,562 of cash used for changes in operating assets and liabilities, primarily driven by a $4,613 increase in inventory to support penetration of new markets, upcoming new product launches, longer-duration projects and timing of offshore purchases. Net cash used by operating activities from discontinued operations, attributable to our former Univeyor A/S business, was $2,218 for the quarter ended June 29, 2008.
Net cash used by investing activities was $2,104 for the quarter ended June 30, 2009 compared with $2,476 for the quarter ended June 29, 2008. The net cash used by investing activities for the quarter ended June 30, 2009 was primarily the result of $1,250 for capital expenditures and $987 for the net purchases of marketable securities. The net cash used by investing activities for the quarter ended June 29, 2008 was primarily the result of $2,118 for capital expenditures and $497 for the net purchases of marketable securities. Net cash provided by investing activities from discontinued operations, primarily attributable to payments received on our note receivable related to our 2002 sale of Automatic Systems, Inc, was $133 and $139 for the quarters ended June 30, 2009 and June 29, 2008, respectively.
Net cash provided by financing activities was $1,656 for the quarter ended June 30, 2009 compared with $1,035 for the quarter ended June 29, 2008. The net cash used by financing activities for the quarter ended June 30, 2009 consisted primarily of $1,552 of net debt borrowings and $176 of proceeds from stock options exercised. The net cash provided by financing activities for quarter ended June 29, 2008 consisted primarily of $221 of proceeds from stock options exercised, $187 of tax benefit from exercise of stock options and $130 from the change in ESOP debt guarantee, partially offset by $82 of net debt repayments. Net cash provided by financing activities from discontinued operations, attributable to our former Univeyor A/S business, was $579 for the quarter ended June 29, 2008.
In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing, and upgrading our property, plant, and equipment to support new product development, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety, and promote ergonomically correct work stations. Consolidated capital expenditures for the three months ended June 30, 2009 and June 29, 2008 were $1,250 and $2,118, respectively. We expect capital spending for fiscal 2010 to be approximately $10,000 to $12,000 compared with $12,245 in fiscal 2009. Capital expenditures for fiscal 2010 include investments required to accommodate facility consolidation activities as well as new product development and productivity improvement.
Read the The complete ReportCMCO is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
Columbus McKinnon is a broad-line designer manufacturer and supplier of sophisticated material handling products and integrated material handling solutions that are widely distributed to industrial and consumer markets worldwide. The Company\'s material handling products are sold omestically and internationally principally to third party distributors and to a lesser extent directly to manufacturers and other end-users. The Company\'s integrated material handling solutions businesses deal directly with end-users. Columbus McKinnon Corp. has a market cap of $263.7 million; its shares were traded at around $13.85 with a P/E ratio of 10.6 and P/S ratio of 0.4. Columbus McKinnon Corp. had an annual average earning growth of 16.4% over the past 5 years.
Highlight of Business Operations:
Net sales in the fiscal 2010 quarter ended June 30, 2009 were $119,008, down $32,156 or 21.3% from the fiscal 2009 quarter ended June 29, 2008 net sales of $151,164. The fiscal 2010 quarter includes $17,600 of sales from Pfaff-silberblau, which was acquired October 1, 2008. Excluding the sales from Pfaff-silberblau, sales decreased $49,800 or 32.9%. Net sales was positively impacted $2,200 by price increases and negatively impacted $47,900 by decreased volume due to continued weakness in the global economy. Foreign currency translation also negatively impacted sales by $4,100 in the fiscal 2010 quarter.Selling expenses were $16,477 and $18,202 in the fiscal 2010 and 2009 quarters, respectively. This decrease reflects aggressive efforts to reduce or eliminate costs, as well as $500 lower commissions on lower sales volume, despite the addition of $3,000 of expenses associated with the Pfaff business and continued investments in emerging markets. Additionally, foreign currency translation had an $800 favorable impact on selling expenses. As a percentage of consolidated net sales, selling expenses were 13.8% and 12.0% in the fiscal 2010 and 2009 quarters, respectively.
Net cash provided by operating activities was $4,871 for the quarter ended June 30, 2009 compared with $9,831 for the quarter ended June 29, 2008. The net cash provided by operating activities for the quarter ended June 30, 2009 was primarily the result of $5,277 of cash provided by changes in operating assets and liabilities driven by a $7,163 decrease in accounts receivable and a $6,434 decrease in inventory, which were partially offset by an $8,069 decrease in accounts payable. The changes in operating assets and liabilities were the result of the decline in net sales due to the continued weakness in the global economy. A net loss of $2,398 and a $1,534 negative effect on cash from deferred income taxes were offset by non-cash charges for depreciation and amortization of $3,059 and stock-based compensation of $501. The net cash provided by operating activities for the quarter ended June 29, 2008 was primarily the result of $11,766 of income from continuing operations plus non-cash charges of depreciation and amortization of $2,172 and deferred income taxes of $1,180, which were partially offset by $3,562 of cash used for changes in operating assets and liabilities, primarily driven by a $4,613 increase in inventory to support penetration of new markets, upcoming new product launches, longer-duration projects and timing of offshore purchases. Net cash used by operating activities from discontinued operations, attributable to our former Univeyor A/S business, was $2,218 for the quarter ended June 29, 2008.
Net cash used by investing activities was $2,104 for the quarter ended June 30, 2009 compared with $2,476 for the quarter ended June 29, 2008. The net cash used by investing activities for the quarter ended June 30, 2009 was primarily the result of $1,250 for capital expenditures and $987 for the net purchases of marketable securities. The net cash used by investing activities for the quarter ended June 29, 2008 was primarily the result of $2,118 for capital expenditures and $497 for the net purchases of marketable securities. Net cash provided by investing activities from discontinued operations, primarily attributable to payments received on our note receivable related to our 2002 sale of Automatic Systems, Inc, was $133 and $139 for the quarters ended June 30, 2009 and June 29, 2008, respectively.
Net cash provided by financing activities was $1,656 for the quarter ended June 30, 2009 compared with $1,035 for the quarter ended June 29, 2008. The net cash used by financing activities for the quarter ended June 30, 2009 consisted primarily of $1,552 of net debt borrowings and $176 of proceeds from stock options exercised. The net cash provided by financing activities for quarter ended June 29, 2008 consisted primarily of $221 of proceeds from stock options exercised, $187 of tax benefit from exercise of stock options and $130 from the change in ESOP debt guarantee, partially offset by $82 of net debt repayments. Net cash provided by financing activities from discontinued operations, attributable to our former Univeyor A/S business, was $579 for the quarter ended June 29, 2008.
In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing, and upgrading our property, plant, and equipment to support new product development, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety, and promote ergonomically correct work stations. Consolidated capital expenditures for the three months ended June 30, 2009 and June 29, 2008 were $1,250 and $2,118, respectively. We expect capital spending for fiscal 2010 to be approximately $10,000 to $12,000 compared with $12,245 in fiscal 2009. Capital expenditures for fiscal 2010 include investments required to accommodate facility consolidation activities as well as new product development and productivity improvement.
Read the The complete ReportCMCO is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
