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Columbus McKinnon repays $65 million of debt, to pay $65 million more
By Devika Patel
Knoxville, Tenn., May 29 – Columbus McKinnon Corp. used $80 million of cash from operations to pay down $65 million of debt in the last fiscal year, with $50 million of that debt repaid in the last quarter.
The company intends to keep de-levering with free cash flow, reducing debt by a further $65 million in fiscal 2020.
“We generated nearly $80 million in cash from operations in fiscal 2019,” president and chief executive officer Mark D. Morelli said on the company’s fourth quarter and year ended March 31 earnings conference call on Wednesday.
“This enabled us to pay down another $65 million in debt,” Morelli said.
“We repaid $50 million of debt in the fourth quarter and have reduced our term loan debt by nearly $135 million,” vice president of finance and chief financial officer Gregory P. Rustowicz said on the call.
“We made excellent progress de-levering and have achieved a net debt to adjusted EBITDA ratio of 1.7x, which is below our targeted net leverage ratio of 2x,” he said.
The company plans to keep paying down debt, with $65 million slated to be repaid in 2020.
“From a capital allocation perspective, our plan is to use free cash flow to continue to de-lever our balance sheet,” Rustowicz said.
“We expect to repay an additional $65 million in fiscal 2020,” Rustowicz said.
Total debt was approximately $300 million and net debt was approximately $229 million as of March 31.
Cash and cash equivalents were $71,093,000 as of March 31, 2019, compared to $63,021,000 as of March 31, 2018.
Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of material handling products, technologies and services.
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