Material handling products maker Columbus McKinnon Corp. (CMCO) reported Friday a loss for the second quarter, that reflected a 25.5% decline in net sales, restructuring charges and inclusion lower margin Pfaff business.
The Amherst, New York-based company reported a second-quarter net loss of $2.73 million or $0.14 per share, compared to net income of $10.64 million or $0.55 per share in the same quarter last year. Second quarter results include the company's Pfaff-silberblau, or Pfaff, business which was acquired on October 1, 2008.
On a non-GAAP basis, net income for the quarter declined to $2.3 million or $0.12 per share from $9.7 million or $0.50 per share in the year-ago quarter.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 25.5% to $115.23 million from $154.68 million in the comparable quarter last year. Analysts expected the company to report revenue of $119.22 million for the quarter. Net sales were down 37.0% excluding the Pfaff business.
Gross profit margin was 24.3%, lower than 29.5% in last year's second quarter, reflecting mainly the effects of significantly lower volume in all markets.
Selling expense for the quarter declined 9.1% to $15.61 million from $17.16 million in the year ago quarter. Interest and debt expenses were $3.41 million, up 8.8% from $3.13 million a year ago.
For the quarter, the company recorded restructuring charges, primarily for severance costs and equipment write-offs associated with the previously described consolidation of its North American hoist and rigging manufacturing operations, of $2.69 million compared to $155 thousand a year ago.
Income from operations declined 97.1% to $543 thousand from $18.79 million in the same quarter a year ago. Non-GAAP operating income was $6.7 million compared with $18.9 million in the same period of the prior year, as non-GAAP operating margin declined to 5.8% from 12.2% last year, negatively impacted by the lower global sales volume and the inclusion of lower Pfaff margins.
For the six month period, the company reported a net loss of $5.13 million or $0.27 per share, compared to net income of $20.31 million or $1.06 per share in the comparable period last year. On a non-GAAP basis, net income was $3.1 million or $0.16 per share, down from $21.5 million or $1.12 per share in the prior year period. Net sales for the period declined 23.4% to $234.24 million from $305.84 million in the prior year period.
At the end of the second quarter, backlog was $69.7 million compared to $63.8 million last year, and backlog for Pfaff business was $27 million at the end of the quarter. "The time to convert the majority of backlog to sales averages from one day to a few weeks, and backlog normally represents four to five weeks of shipments," the company said.
CMCO is currently trading at $16.23, up $1.06 or 6.99%, on a volume of 36,948 shares on the Nasdaq.
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