Columbus McKinnon Corp. (CMCO, Financial) filed Annual Report for the period ended 2010-03-31.
Columbus Mckinnon Corp. has a market cap of $329.3 million; its shares were traded at around $17.23 with a P/E ratio of 42 and P/S ratio of 0.5. CMCO is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, Chuck Royce of Royce& Associates.
Expanding International Markets - We have significantly grown our international sales since becoming a public company in 1996. Our international sales have grown from $34.3 million (representing 16% of total sales) in fiscal 1996 to $210.7 million (representing 44% of our total sales) during the year ended March 31, 2010. This growth has occurred primarily in Europe, Latin America and Asia-Pacific. The Pfaff acquisition in October 2008 has enhanced our international revenue growth, particularly in Europe. Additionally, we have recently opened two sales offices in Shanghai and Guangzhou, China to sell into this growing industrial market, with more planned in the coming year. Our international business has provided us, and we believe will continue to provide us, with significant growth opportunities and new markets for our products.
Long History of Free Cash Flow Generation and Significant Debt Reduction - We have consistently generated positive free cash flow (which we define as net cash provided by operating activities less capital expenditures) by continually controlling our costs, improving our working capital management, and reducing the capital intensity of our manufacturing operations. In the past five years, we have reduced total net debt by $89.9 million, from $158.7 million to $68.8 million and continue to improve our cash balance.
Continue to Grow in International Markets - Our international sales of $210.7 million comprised 44% of our net sales for the year ended March 31, 2010, as compared with $228.8 million, or 38% in fiscal 2009 compared to $34.3 million, or 16% of our net sales, in fiscal 1996, the year we became a public company. We sell to distributors in over 50 countries and have our primary international manufacturing facilities in China, France, Germany, Hungary, Mexico and the United Kingdom. In addition to new product introductions, we continue to expand our sales and service presence in the major and developing market areas of Europe, Asia-Pacific and Latin America including through our sales offices and warehouse facilities in Canada, various countries in Western and Eastern Europe, China, Thailand, Brazil, Uruguay, Panama and Mexico. We intend to increase our sales by manufacturing and exporting a broader array of high quality, low-cost products and components from our facilities in China and Hungary for distribution in North America, Europe, Latin America and Asia-Pacific. We have developed and are continuing to expand upon new hoist and other products in compliance with global standards and international designs to enhance our global distribution.
In excess of 75% of our net sales are derived from the sale of products that we sell at a unit price of less than $5,000. Of our 2010 sales, $265.5 million, or 56% were U.S. and $210.7 million, or 44% were international. The following table sets forth certain sales data for our products, expressed as a percentage of net sales for fiscal 2010 and 2009:
Read the The complete Report
Columbus Mckinnon Corp. has a market cap of $329.3 million; its shares were traded at around $17.23 with a P/E ratio of 42 and P/S ratio of 0.5. CMCO is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
In response to the negative economic climate we experienced in Fiscal 2010 and consistent with our manufacturing strategy, we initiated a plan to rationalize our North American hoist and rigging operations to improve efficiency, control costs and facilitate future growth. During fiscal 2010, we closed one of our forge facilities in the U.S. and significantly stopped welded chain production in our Mexico facility. Continuing into early fiscal 2011, one of our hoist facilities will be closed, with this entire facility consolidation initiative resulting in a reduction of 500,000 square feet of manufacturing space and generating annual savings estimated at approximately $13-$15 million. After completion, we will have sufficient capacity to produce peak demands. The cost of the restructuring is expected to be approximately $25-$27 million with 80% of the total charges having been incurred in fiscal year 2010. This strategy, together with steps to integrate our sales force will provide increased operating leverage when the global economy returns to more normalized levels.Expanding International Markets - We have significantly grown our international sales since becoming a public company in 1996. Our international sales have grown from $34.3 million (representing 16% of total sales) in fiscal 1996 to $210.7 million (representing 44% of our total sales) during the year ended March 31, 2010. This growth has occurred primarily in Europe, Latin America and Asia-Pacific. The Pfaff acquisition in October 2008 has enhanced our international revenue growth, particularly in Europe. Additionally, we have recently opened two sales offices in Shanghai and Guangzhou, China to sell into this growing industrial market, with more planned in the coming year. Our international business has provided us, and we believe will continue to provide us, with significant growth opportunities and new markets for our products.
Long History of Free Cash Flow Generation and Significant Debt Reduction - We have consistently generated positive free cash flow (which we define as net cash provided by operating activities less capital expenditures) by continually controlling our costs, improving our working capital management, and reducing the capital intensity of our manufacturing operations. In the past five years, we have reduced total net debt by $89.9 million, from $158.7 million to $68.8 million and continue to improve our cash balance.
Continue to Grow in International Markets - Our international sales of $210.7 million comprised 44% of our net sales for the year ended March 31, 2010, as compared with $228.8 million, or 38% in fiscal 2009 compared to $34.3 million, or 16% of our net sales, in fiscal 1996, the year we became a public company. We sell to distributors in over 50 countries and have our primary international manufacturing facilities in China, France, Germany, Hungary, Mexico and the United Kingdom. In addition to new product introductions, we continue to expand our sales and service presence in the major and developing market areas of Europe, Asia-Pacific and Latin America including through our sales offices and warehouse facilities in Canada, various countries in Western and Eastern Europe, China, Thailand, Brazil, Uruguay, Panama and Mexico. We intend to increase our sales by manufacturing and exporting a broader array of high quality, low-cost products and components from our facilities in China and Hungary for distribution in North America, Europe, Latin America and Asia-Pacific. We have developed and are continuing to expand upon new hoist and other products in compliance with global standards and international designs to enhance our global distribution.
In excess of 75% of our net sales are derived from the sale of products that we sell at a unit price of less than $5,000. Of our 2010 sales, $265.5 million, or 56% were U.S. and $210.7 million, or 44% were international. The following table sets forth certain sales data for our products, expressed as a percentage of net sales for fiscal 2010 and 2009:
Read the The complete Report
