6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Columbus McKinnon's fiscal 2003 fourth quarter consolidated net sales from continuing operations were $118.8 million, compared with $114.5 million a year ago, an increase of 3.8%. Income from operations before amortization and restructuring charges was $6.1 million for the fiscal 2003 fourth quarter, compared with $5.8 million in the fourth quarter last year. Fourth quarter fiscal 2003 loss from continuing operations was $8.1 million, or $0.55 per diluted share, compared with a loss from continuing operations of $4.7 million, or $0.33 per diluted share, in the fiscal 2002 fourth quarter. Columbus McKinnon's fiscal 2003 fourth quarter net loss was $8.1 million, or $0.55 per diluted share, compared with a net loss of $129.3 million, or $8.96 per diluted share, for the fiscal 2002 fourth quarter.
''We dramatically accelerated our efforts in the latter half of the year to generate cash through divestitures, facility rationalization and reduced working capital. As a result, in the fourth quarter, debt was reduced by $20.5 million. Strategically, we believe the Products Segment is clearly the area in which we have a leading, sustainable competitive advantage in the material handling industry,'' said Timothy T. Tevens, president and CEO.
At Mar. 31, 2003, Columbus McKinnon's long-term debt was $314.1 million, a $20.5 million reduction from $334.6 million at Dec. 29, 2002 and a reduction of $33.8 million from $347.9 million at Mar. 31, 2002. The Company was in compliance with its senior bank debt covenants at Mar. 31, 2003. It is likely, however, that one of the financial covenants will not be met early in fiscal 2004.
Accordingly, the company has reached an agreement in principle with its senior lenders to amend such covenant for fiscal 2004.
The fourth quarter of fiscal 2003 was impacted by a $1.3 million loss on the sale of LICO Steel, a steel erection business that was included in the Solutions Segment. The reported quarter also included a $4.0 million non-cash impairment charge related to goodwill of businesses acquired in prior years, restructuring charges of $2.9 million, and a mark-to-market loss in the investment portfolio of the company's captive insurance subsidiary of $0.5 million. The fourth quarter of fiscal 2002 reflected goodwill amortization of $2.7 million, the loss from discontinued operations of $3.1 million, a mark-to-market loss in the investment portfolio of the company's captive insurance subsidiary of $2.8 million and a loss on disposition of discontinued operations of $121.5 million.
Net sales from continuing operations for fiscal 2003 were $453.3 million, compared with $480.0 million in fiscal 2002, a decrease of 5.6%. Operating income before restructuring charges and amortization was $33.3 million for fiscal 2003, compared with $48.7 million in fiscal 2002. The fiscal 2003 loss from continuing operations before cumulative effect of accounting change was $6.0 million, or $0.42 per diluted share, compared with a loss from continuing operations for fiscal 2002 of $6.0 million, or $0.41 per diluted share, including pre-tax restructuring charges of $9.6 million. The net loss for fiscal 2003 was reduced to $14.0 million, or $0.97 per diluted share, from a net loss of $135.4 million, or $9.39 per diluted share, for fiscal 2002.
Fiscal 2003 results reflected a cumulative effect of accounting change of $8.0 million related to its initial adoption of Statement of Financial Accounting Standard (SFAS) No. 142, 'Goodwill and Other Intangible Assets' as of April 1, 2002 and a further write-down of goodwill of $4.0 million included in write-off/amortization of intangible assets in the fourth quarter and year, restructuring charges of $3.7 million and the early write-off of deferred finance charges associated with the