Columbus Mckinnon Corp (NASDAQ:CMCO) Q2 2020 Earnings Conference Call Transcript
Nov 07, 2019 • 10:00 am ET
Greetings, and welcome to the Columbus McKinnon Corporation Second Quarter Fiscal Year 2020 Financial Results Call. [Operator Instructions].
I would now like to turn the conference over to your host Ms. Deb Pawlowski, Investor Relations for Columbus McKinnon. Thank you. You may begin.
Ms. Deb Pawlowski
Thanks, Melissa, and good morning, everyone. We certainly appreciate your time today and your interest in Columbus McKinnon. Joining me on the call are Mark Morelli, our President and CEO and Greg Rustowicz, our Chief Financial Officer. You should have a copy of the second quarter fiscal 2020 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 cmworks.com.
If you'll turn to slide two in the deck, I will first review the safe harbor statement. You should be aware that we may make some forward-looking statements during the formal discussions, 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 here 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 www.sec.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe those will be useful in evaluating our performance. You should not consider the presentation of additional information in isolation or the substitute for results prepared in accordance with GAAP. We have provided reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and the slides for your information.
So with that, if you would turn to slide three, I will turn it over to Mark to begin. Mark?
Mark D. Morelli
Thank you, Deb. We deployed our blueprint for growth strategy over two-and-a-half years now, and we continue to demonstrate its effectiveness with our results this quarter. We're improving our margin and earnings even in the face of significant industrial market headwinds. After adjusting for divested businesses and foreign currency exchange rates, revenue in our second quarter of fiscal 2020 was up 2%. The impact of our the 80:20 process provided more than $3 million in revenue, driven by strategic pricing and our priority customer account program. We saw strong growth in our Projects business, which overcame the decline in demand from our short cycle business. In total our 80:20 process contributed $5.2 million in operating margin, including incremental revenue and 2.1 million in savings from overhead cost reduction.
This benefit is more than offsetting industry market headwinds, as well as enabling us to invest in growth initiatives. As a result, net income grew 4% year-over-year and outpaced revenue growth. Adjusted net income was up over 8%. Our strategy and execution is keeping us on track, as we continue to achieve our target. Adjusted EBITDA