Columbus McKinnon Corp. (CMCO, Financial) filed Quarterly Report for the period ended 2009-11-06.
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 $334.1 million; its shares were traded at around $17.51 with a P/E ratio of 19.9 and P/S ratio of 0.5. Columbus Mckinnon Corp. had an annual average earning growth of 16.4% over the past 5 years.
Gross profit in the fiscal 2010 quarter ended September 30, 2009 was $28,051, down $17,521 or 38.4% from the fiscal 2009 quarter ended September 28, 2008 gross profit of $45,572. Gross profit margin decreased to 24.3% in the fiscal 2010 second quarter from 29.5% compared to the same period in fiscal 2009. Gross profit in the six month period ended September 30, 2009 was $57,481, down $36,616 or 38.9% from the six month period ended September 28, 2008 gross profit of $94,097. Gross profit margin decreased to 24.5% in the six month period ended September 30, 2009 from 30.8% in the six month period ended September 28, 2008. The decline in gross profit margin was due mostly to lower volume in all markets as well as $500 related to the consolidation of our North American hoist and rigging operations and $2,900 for an atypical product liability reserve. The translation of foreign currencies had a $500 and $1,300 negative impact on gross profit for the quarter and six month period, respectively.
General and administrative expenses were $8,731, $9,446, $17,192 and $19,347 in the fiscal 2010 and 2009 quarters and the six-month periods then ended, respectively. An additional $1,100 and $1,700 of expenses for the current quarter and the six months ended, respectively; associated with the Pfaff business and continuation of investments in new product development were more than offset by benefits from aggressive cost reduction activities. During the current quarter general and administrative expenses were favorably impacted by a $600 reduction in bad debt expenses. Additionally, foreign currency translation had a $100 favorable impact on general and administrative expense in the quarter and $400 favorable impact on the six months ended September 30, 2009. As a percentage of consolidated net sales, general and administrative expenses were 7.6%, 6.1%, 7.3% and 6.3% in the fiscal 2010 and 2009 quarters and the six-month periods, respectively.
Restructuring charges were $2,694, $155, $8,532, and $155 in the fiscal 2010 and 2009 quarters and the six-month periods then ended, respectively. The fiscal 2010 restructuring costs for the three-month period include $950 of non-cash fixed asset impairment charges, $1,181 in expense for severance costs related to salaried and union workforce reductions, $418 of pension plan curtailment charges and $145 of other costs related to our reorganization plan. Costs for the six-month period of fiscal 2010 include the above items, as well as both voluntary ($5,404) and involuntary ($434) termination benefits related to workforce reductions in our North American sales force reorganization and other salaried workforce reductions. The fiscal 2009 restructuring costs were related to the consolidation of a U.S. crane manufacturing facility into another existing crane manufacturing facility.
restructuring, product liability and pension accruals. The positive effect on cash from non-cash charges of $6,142 for depreciation and amortization, $1,209 for stock-based compensation, and $950 for restructuring, were largely offset by a net loss of $5,129 and a $2,098 negative effect on cash from a non-cash benefit from deferred income taxes. The net cash provided by operating activities for the six months ended September 28, 2008 is primarily the result of $22,273 of income from continuing operations plus non-cash charges for depreciation and amortization of $4,512, deferred income taxes of $8,016, and $591 of other non-cash charges. These amounts were partially offset by $4,149 of cash used for changes in operating assets and liabilities, primarily the result of a $5,301 increase in inventory. The increase in inventory resulted from support for penetration of new European 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 $2,214 for the six months ended September 28, 2008.
Net cash used by financing activities was $3,004 for the six months ended September 30, 2009 compared with $13,924 for the six months ended September 28, 2008. The net cash used by financing activities for the six months ended September 30, 2009 consisted primarily of $3,224 of net debt payments and $188 of deferred financing fees, partially offset by $177 of proceeds from stock options exercised and $231 from the change in ESOP debt guarantee. The net cash provided by financing activities from continuing operations for six months ended September 28, 2008 consisted primarily of $391 of proceeds from stock options exercised, $187 of tax benefit from exercise of stock options and $254 from the change in ESOP debt guarantee, partially offset by $144 of net debt repayments. Net cash used by financing activities from discontinued operations, primarily attributable to the repayment of amounts outstanding on lines of credit and fixed term bank debt of our former Univeyor A/S business, was $14,612 for the six months ended September 28, 2008.
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 $334.1 million; its shares were traded at around $17.51 with a P/E ratio of 19.9 and P/S ratio of 0.5. 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 September 30, 2009 were $115,234, down $39,446 or 25.5% from the fiscal 2009 quarter ended September 28, 2008 net sales of $154,680. Net sales for the six month period ended September 30, 2009 were $234,242, down $71,602 or 23.4% from the six months ended September 28, 2008 net sales of $305,844. The fiscal 2010 results include sales of Pfaff-silberblau, which was acquired October 1, 2008, of $17,861 and $35,482 in the quarter and six months ended September 30, 2009, respectively. Excluding the sales of Pfaff-silberblau, sales decreased $57,307 or 37% and $107,084 or 35% in the quarter and six month periods, respectively. For the quarterly period, net sales were positively impacted $1,300 by price increases, $2,400 for an additional shipping day and negatively impacted $59,600 by decreased volume due to continued weakness in the global economy. For the six months period sales were positively impacted by $3,575 of price increases, $2,400 for an additional shipping day and negatively impacted by $107,525 of decreased volume due to continued weakness in the global economy. Translation of foreign currencies contributed $1,400 and $5,600 toward the decrease in sales for the quarter and six month period, respectively.Gross profit in the fiscal 2010 quarter ended September 30, 2009 was $28,051, down $17,521 or 38.4% from the fiscal 2009 quarter ended September 28, 2008 gross profit of $45,572. Gross profit margin decreased to 24.3% in the fiscal 2010 second quarter from 29.5% compared to the same period in fiscal 2009. Gross profit in the six month period ended September 30, 2009 was $57,481, down $36,616 or 38.9% from the six month period ended September 28, 2008 gross profit of $94,097. Gross profit margin decreased to 24.5% in the six month period ended September 30, 2009 from 30.8% in the six month period ended September 28, 2008. The decline in gross profit margin was due mostly to lower volume in all markets as well as $500 related to the consolidation of our North American hoist and rigging operations and $2,900 for an atypical product liability reserve. The translation of foreign currencies had a $500 and $1,300 negative impact on gross profit for the quarter and six month period, respectively.
General and administrative expenses were $8,731, $9,446, $17,192 and $19,347 in the fiscal 2010 and 2009 quarters and the six-month periods then ended, respectively. An additional $1,100 and $1,700 of expenses for the current quarter and the six months ended, respectively; associated with the Pfaff business and continuation of investments in new product development were more than offset by benefits from aggressive cost reduction activities. During the current quarter general and administrative expenses were favorably impacted by a $600 reduction in bad debt expenses. Additionally, foreign currency translation had a $100 favorable impact on general and administrative expense in the quarter and $400 favorable impact on the six months ended September 30, 2009. As a percentage of consolidated net sales, general and administrative expenses were 7.6%, 6.1%, 7.3% and 6.3% in the fiscal 2010 and 2009 quarters and the six-month periods, respectively.
Restructuring charges were $2,694, $155, $8,532, and $155 in the fiscal 2010 and 2009 quarters and the six-month periods then ended, respectively. The fiscal 2010 restructuring costs for the three-month period include $950 of non-cash fixed asset impairment charges, $1,181 in expense for severance costs related to salaried and union workforce reductions, $418 of pension plan curtailment charges and $145 of other costs related to our reorganization plan. Costs for the six-month period of fiscal 2010 include the above items, as well as both voluntary ($5,404) and involuntary ($434) termination benefits related to workforce reductions in our North American sales force reorganization and other salaried workforce reductions. The fiscal 2009 restructuring costs were related to the consolidation of a U.S. crane manufacturing facility into another existing crane manufacturing facility.
restructuring, product liability and pension accruals. The positive effect on cash from non-cash charges of $6,142 for depreciation and amortization, $1,209 for stock-based compensation, and $950 for restructuring, were largely offset by a net loss of $5,129 and a $2,098 negative effect on cash from a non-cash benefit from deferred income taxes. The net cash provided by operating activities for the six months ended September 28, 2008 is primarily the result of $22,273 of income from continuing operations plus non-cash charges for depreciation and amortization of $4,512, deferred income taxes of $8,016, and $591 of other non-cash charges. These amounts were partially offset by $4,149 of cash used for changes in operating assets and liabilities, primarily the result of a $5,301 increase in inventory. The increase in inventory resulted from support for penetration of new European 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 $2,214 for the six months ended September 28, 2008.
Net cash used by financing activities was $3,004 for the six months ended September 30, 2009 compared with $13,924 for the six months ended September 28, 2008. The net cash used by financing activities for the six months ended September 30, 2009 consisted primarily of $3,224 of net debt payments and $188 of deferred financing fees, partially offset by $177 of proceeds from stock options exercised and $231 from the change in ESOP debt guarantee. The net cash provided by financing activities from continuing operations for six months ended September 28, 2008 consisted primarily of $391 of proceeds from stock options exercised, $187 of tax benefit from exercise of stock options and $254 from the change in ESOP debt guarantee, partially offset by $144 of net debt repayments. Net cash used by financing activities from discontinued operations, primarily attributable to the repayment of amounts outstanding on lines of credit and fixed term bank debt of our former Univeyor A/S business, was $14,612 for the six months ended September 28, 2008.
Read the The complete ReportCMCO is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
