Columbus McKinnon Corp (CMCO) Reports Record Sales and Operating Income for Q2 Fiscal Year 2024
Record operating income of $33.4 million, up 22% over prior year
Net sales increased by 11.5% to $258.4 million
Company expects to surpass $1 billion in revenue in fiscal 2024
On November 1, 2023, Columbus McKinnon Corp (NASDAQ:CMCO) announced its financial results for the second quarter of the fiscal year 2024, which ended on September 30, 2023. The results include the addition of montratec, which was acquired on May 31, 2023.
Financial Highlights
Columbus McKinnon Corp (NASDAQ:CMCO) reported record sales of $258.4 million, a 12% increase over the same period in the prior year. The company's operating income also reached a record high of $33.4 million, up 22% over the prior year. The company's growth strategy and the Columbus McKinnon Business System (CMBS) have been instrumental in achieving these milestones.
Income Statement Summary
Net sales for the quarter increased by $26.7 million, or 11.5%. The acquisition of montratec contributed $9.5 million, or 4.1%, of the increase in sales. Gross profit increased by 15.8% to $100 million, with a gross margin of 38.7%. The company reported a net income of $15.8 million, with diluted earnings per share (EPS) of $0.55.
Balance Sheet and Cash Flow Statement Summary
The company has been successful in expanding its financial flexibility while reducing debt. It paid down $15 million in debt and plans to increase debt pay down by $10 million to $50 million in fiscal 2024.
Company's Performance and Future Outlook
David J. Wilson, President and CEO of Columbus McKinnon Corp (NASDAQ:CMCO), commented on the company's performance, stating,
Our second quarter results reflect the meaningful progress we are making as our team executes toward our fiscal 2027 targets."
He further added that the company expects to surpass $1 billion in revenue in fiscal 2024.
The company expects third quarter fiscal 2024 sales to be approximately $245 million to $255 million at current exchange rates, representing 9% growth year-over-year at the midpoint of the range.
Despite the complexity of financial topics, this report aims to provide a clear and accurate summary of Columbus McKinnon Corp (NASDAQ:CMCO)'s earnings report. The company's strong performance and positive future outlook make it a potential interest for value investors and potential GuruFocus.com members.
Explore the complete 8-K earnings release (here) from Columbus McKinnon Corp for further details.
This article first appeared on GuruFocus.
