Columbus McKinnon Corporation

Greetings. Welcome to the Columbus McKinnon Corporation's second quarter fiscal year 2022 financial results conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Deborah Pawlowski, Investor Relations for Columbus McKinnon. Thank you. You may begin.

Thanks, Alex, and good morning, everyone. Thank you for joining us here today. I have with me David Wilson, our President and CEO, and Greg Rustowitz, our Chief Financial Officer. I hope you have a copy of the second quarter fiscal 2022 financial results, which we released this morning before the market. And if not, you can access the release as well as the slides that will accompany our conversation today at our website, columbusmckinnon.com. After David and Greg's formal discussion, we will then open the line for Q&A. We kindly ask that you ask one question with a follow-up question and then get back in queue to allow for continuous flow and adequate time. If you turn to slide two in the deck, I'll review the Safe Harbor Statement briefly. As you know, we may make some forward-looking statements during the formal discussion as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated today. These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed with Securities and Exchange Commission. These documents can be found on our website or at sec.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in GAP. We have provided reconciliation of non-GAP measures with comparable GAP measures in the table in today's release and the slides for your information. So with that, if you will turn to slide three, I will turn it over to David to begin. David?

Thank you, Deb, and good morning, everyone. We delivered strong results in the quarter even as we navigated the challenges the world is facing with global supply constraints. Despite leaving approximately $15 million of planned Q2 shipments behind due to shortages in the supply chain, we delivered sales growth of 42% year over year with strength in all geographic regions. I should point out as well that the growth was driven by robust demand across all of our targeted markets. Margins also expanded nicely. In fact, we achieved new records for both GAAP and adjusted gross margin of 36.3% and 36.7% respectively. Improved margin in the quarter reflected the benefits of our 80-20 process, operational restructuring, and an improved product portfolio, including the addition of Dorner. The Columbus McKinnon Business System, or CMBS, provides the processes and tools to deliver improved profitability as we execute on our Blueprint for Growth 2.0 strategy. We believe our results continue to demonstrate the evolution of Columbus McKinnon into a high-value, intelligent motion enterprise. Through the core growth framework of our strategy, we are focused on strengthening, growing, and expanding our core as we establish combined offerings, innovate with new products, expand channels, and deepen our presence in a more attractive set of targeted markets. One example of this is the combination of our legacy automation solutions with our conveying solutions, enhancing our value proposition for customers in attractive markets. This is a nice example of our strategy at work. Earlier this year, we reimagined Columbus McKinnon and acquired Dorner. Then, with precision conveying solutions as a new growth platform, we began to focus on growth that could be created through the combination of our competencies and increased product innovation. We are gaining early traction, and the customers that are a part of this conveyor automation pilot program are excited to be working with us. Dorner continues to deliver well. While performance in the quarter was also impacted by supply chain constraints and the timing of inflation and pricing impacts, We are excited about the opportunities this business continues to generate. In fact, orders for our conveyor solutions were a very healthy $34.7 million in the quarter. This contributed to our record backlog of $256 million at the end of September. On slide four, I'd like to talk through how we are evolving Columbus McKinnon. We are rethinking and bringing further clarity to how we look at key elements of our portfolio. Looking at the business through this new lens highlights that our automation and linear motion products made up 27% of our portfolio. This is important because these product lines tend to grow at mid to high single digit rates and serve less cyclical markets. Now with the addition of our precision conveying platform, which is growing in the double digits, we have nearly 40% of our total revenue serving highly attractive growth markets. Today, Columbus McKinnon has a much better mix of business and a higher growth profile than what we had just one year ago. And as you might imagine, we're engaged with an active and growing pipeline of attractive M&A prospects. And we expect to further transform our portfolio mix to serve higher growth, more secularly driven end markets. We are focused on building a higher value Columbus McKinnon. Turning to slide five, I'm happy to share that we will soon be announcing our most recent addition to our series of IntelliMotion product offerings. Our organic growth strategy is focused on driving innovation and growth through new product development. Here, we have applied our automation capabilities to our linear actuator solutions. We have integrated our custom controls and drives directly into our actuator offering. This provides improved fit, form, function, and performance for a variety of variable lifting applications that require precision movement. In addition to advanced control and positioning feedback, the integrated solution reduces installation costs and streamlines the footprint of this equipment. We're excited to be accelerating our new product development and launch processes for automated intelligent motion offerings that are targeting attractive growth opportunities. With that, let me turn it to Greg to review the financials in more detail. Greg?