Earnings Call Excerpt
Columbus McKinnon Corp. (CMCO)
F3Q08 Earnings Call
January 24, 2008 10:00 am ET
Executives
Timothy T. Tevens - President, Chief Executive Officer and Director
Karen L. Howard - Chief Financial Officer
Derwin Gilbreath - Chief Operating Officer
Joseph J. Owen – Vice President and Hoist Group Leader
Analysts
Analyst for Peter Lisnic - Robert W. Baird & Co., Inc.
Amit Daryanani - RBC Capital Markets
Joe Giamichael - Rodman & Renshaw LLC
Theodor Kundtz - Needham & Company
James Bank – Sidoti and Company
Dori Koenig - Lehman Brothers
Holden Lewis - BB&T Capital Markets
Presentation
Operator
Welcome to the Columbus McKinnon’s fiscal 2008 third quarter earnings conference call. At this time, all participants are in a listen only my mode. Following the presentation we will conduct a question and answers session. (Operator Instructions) Now, I’ll turn the meeting over to Mr. Timothy Tevens, President and CEO. Sir, you may begin.
Timothy T. Tevens
Good morning everyone and welcome to the Columbus McKinnon conference call to review the results of our fiscal 2008 third quarter. Earlier this morning, we did issue a press release with corresponding financials, hopefully you all have. With me today here in our headquarters is Karen Howard, our Chief Financial Officer, Derwin Gilbreath our Chief Operating Officer, and Joe Owen, Vice-President and Hoist Group Leader. We do want to remind you that the press release and this conference call may contain some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements contain known and unknown risks and other factors that could cause the actual results to vary. You should in fact read the periodic reports that Columbus McKinnon files with the SEC to be sure you understand these risks.
Overall, our revenue for the second quarter exceeded the same quarter last year by a healthy 9.3%. This was led by our products segment, which was up 10.7% and negatively impacted by our focus on profitable revenue at Univeyor in our solutions segment, which was down about 3% as well as the divestiture of Larco, which occurred in the fourth quarter of our fiscal 2007 year.
As we have been saying for a while now, we continue to experience a strong global industrial economy. Our gross profit was up almost 21% and income from operations increased almost 29%, leading to a solid operating leverage of 32%. Our actual net income was up about 9.5% over last year and as you can see this was a very solid quarter for Columbus McKinnon. Revenue for the products segment in the third quarter was up 10.7% as I mentioned. This was compared to the same quarter last year and flat with our second quarter of fiscal ?08, which has actually improved because this quarter is normally the weakest quarter as Karen will review with you in the moment. The increase from the same quarter of last year is primarily driven from addition of volume which is about 8.4% of it. And this is a result of increased demand from end users as well foreign currency translation 2.9%, a price increase of 1.3% offset by the Larco divestiture of 1.9%.
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