Q4 2024 Columbus McKinnon Corp Earnings Call Transcript
Key Points
- Columbus McKinnon Corp (CMCO) achieved record sales of over $1 billion for the first time in its history, with an 8% growth in fiscal 2024.
- The company expanded its adjusted EBITDA margins by 60 basis points to 16.4%, the highest level ever.
- Significant improvements in supply chain dynamics and operating performance led to a 12% improvement in on-time delivery and a 73% reduction in past due backlog.
- Precision conveyance orders grew by 25% year-over-year, demonstrating strong demand in this segment.
- The company successfully integrated its Santiago facility into Monterrey, Mexico, and its Jülich facility into Wuppertal, Germany, as part of its footprint simplification plan.
- Despite record performance, the company remains cautious about the near-term macroeconomic environment, citing uncertainties such as sustained higher interest rates and geopolitical risks.
- Gross margin was impacted by lower-than-expected revenue recognition at montratec and higher purchase component costs that could not be passed through.
- SG&A expenses increased by $4.2 million due to the montratec acquisition and increased R&D investments.
- Adjusted earnings per diluted share were down $0.05 from the prior year, impacted by higher interest expense and a swing in foreign exchange.
- The company anticipates a transition year with potential duplicative costs related to the Monterrey, Mexico facility, which may affect near-term financial performance.
Good morning. Welcome to Columbus McKinnon's full year and fourth quarter fiscal 2024 earnings conference call. My name is Sherry, I will be your conference operator today. As a reminder, this call is being recorded.
I would now like to turn the conference over to Kristine Moser, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, and welcome, everyone, to Columbus McKinnon's fourth quarter and full year fiscal 2024 earnings conference call. The earnings release and presentation are available for download on our Investor Relations website at investors.cmco.com.
On the call with me today are David Wilson, our President and Chief Executive Officer; and Greg Rustowicz, our Chief Financial Officer. In a moment, David and Greg will walk you through the financial and operating performance for the quarter.
Before we begin our remarks, please let me remind you that we have our safe harbor statement on slide 2. During the course of this
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