COLUMBUS MCKINNON CORP
For the period ended Dec 31, 2024. Filed Feb 10, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 10, 2025
CMCO$17.62+6.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001005229-24-000284
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-10.
0001005229-25-000016
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 56 current paragraphs.
26 unchanged; 28 reworded; 2 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Nine Months Ended December 31, 2024 and December 31, 2023
Current report
General and administrative expenses were $74,043,000 and $79,407,000, or 10.3% and 10.6% of net sales, in the nine months ended December 31, 2024 and 2023, respectively. The decrease is related to lower employee related costs of $3,202,000 including lower incentive-based compensation. Additionally, the Company had lower stock based compensation costs of $1,501,000 compared to the prior year and lower net headquarter relocation expenses of $1,562,000. This was offset by $1,299,000 of expense to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025. Foreign currency translation had a $504,000 favorable impact on general and administrative expenses in the nine months ended December 31, 2024.
Removed paragraphs (2)
Previous report
Six Months Ended September 30, 2024 and September 30, 2023
Previous report
General and administrative expenses were $49,810,000 and $53,152,000, or 10.3% and 10.8% of net sales, in the six months ended September 30, 2024 and 2023, respectively. General and administrative expenses decreased by $3,095,000 related to prior year acquisition deal related costs which did not recur and $1,227,000 of lower net headquarter relocation costs compared to the prior year. Additionally, the Company had lower stock based compensation costs of $842,000 compared to the prior year. These cost decreases were offset by $3,314,000 of start-up costs related to the Monterrey, Mexico facility, $694,000 from the montratec acquisition and $222,000 of current year factory and warehouse consolidation costs. The remaining decrease is due to lower employee related costs during the six months ended September 30, 2024. Foreign currency translation had a $62,000 favorable impact on general and administrative expenses in the six months ended September 30, 2024.
Reworded paragraphs (28)
Previous wording
Our revenue base is geographically diverse with approximately 45% of net sales derived from customers outside the U.S. for the six months ended September 30, 2024. We believe this diversity balances the impact of changes that occur in local economies, as well as benefits the Company by providing access to growing emerging markets. We monitor both U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM Production Index as indicators of anticipated demand for our products. In addition, we continue to monitor the potential impact of other global and U.S. trends including, industrial production, trade tariffs, raw material cost inflation, interest rates, foreign currency exchange rates, and activity of end-user markets around the globe.
Current wording
Our revenue base is geographically diverse with approximately 44% of net sales derived from customers outside the U.S. for the nine months ended December 31, 2024. We believe this diversity balances the impact of changes that occur in local economies, as well as benefits the Company by providing access to growing emerging markets. We monitor both U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM Production Index as indicators of anticipated demand for our products. In addition, we continue to monitor the potential impact of other global and U.S. trends including, industrial production, trade tariffs, raw material cost inflation, interest rates, foreign currency exchange rates, and activity of end-user markets around the globe.
Previous wording
Net sales in the three months ended September 30, 2024 were $242,274,000, a decrease of $16,126,000 or 6.2% from the three months ended September 30, 2023 net sales of $258,400,000. Net sales were positively impacted by $3,796,000 due to price increases, offset by $20,169,000 of unfavorable sales volume. Foreign currency translation favorably impacted sales by $247,000 for the three months ended September 30, 2024.
Current wording
Net sales in the three months ended December 31, 2024 were $234,138,000, a decrease of $20,005,000 or 7.9% from the three months ended December 31, 2023 net sales of $254,143,000. Net sales were positively impacted by $2,333,000 due to price increases, offset by $21,295,000 of unfavorable sales volume. Foreign currency translation unfavorably impacted sales by $1,043,000 for the three months ended December 31, 2024.
Previous wording
Gross profit in the three months ended September 30, 2024 was $74,743,000, a decrease of $25,233,000 or 25.2% from the three months ended September 30, 2023 gross profit of $99,976,000. Gross profit margin was 30.9% in the fiscal 2025 second quarter compared to 38.7% in the fiscal 2024 second quarter. The decrease in gross profit was due to start-up costs totaling $2,185,000 related to the Monterrey, Mexico facility, $10,763,000 of asset impairment and other costs related to the closure of our Charlotte Manufacturing Operations and $12,302,000 of lower gross profit due to lower sales volumes. In addition, we incurred $171,000 of additional costs due to Hurricane Helene's impact on one of our facilities and $76,000 of net business realignment costs. These were offset by $97,000 of price increases net of material inflation and other manufacturing costs changes. The translation of foreign currencies had a $167,000 favorable impact on gross profit in the three months ended September 30, 2024.
Current wording
Gross profit in the three months ended December 31, 2024 was $82,097,000, a decrease of $11,800,000 or 12.6% from the three months ended December 31, 2023 gross profit of $93,897,000. Gross profit margin was 35.1% in the fiscal 2025 third quarter compared to 36.9% in the fiscal 2024 third quarter. The decrease in gross profit was due to start-up costs totaling $2,603,000 related to the Monterrey, Mexico facility, $9,863,000 of lower gross profit due to lower sales volumes, and $1,999,000 due to higher product liability expenses. In addition, we incurred costs of $556,000 related to factory and warehouse consolidation activities and $376,000 of net business realignment costs. These were offset by $3,937,000 of price increases net of material inflation and other manufacturing costs changes. The translation of foreign currencies had an unfavorable impact on gross profit of $340,000 during in the three months ended December 31, 2024.
Previous wording
Selling expenses were $26,926,000 and $26,867,000, or 11.1% and 10.4% of net sales, in the fiscal 2025 and 2024 second quarters, respectively. Foreign currency translation had an $18,000 unfavorable impact on selling expenses in the three months ended September 30, 2024.
Current wording
Selling expenses were $27,348,000 and $26,552,000, or 11.7% and 10.4% of net sales, in the fiscal 2025 and 2024 third quarters, respectively. The increase in selling expenses is primarily due to an increase in employee related costs of $728,000. Foreign currency translation had a $95,000 favorable impact on selling expenses in the three months ended December 31, 2024.
Previous wording
General and administrative expenses were $23,363,000 and $25,709,000, or 9.6% and 9.9% of net sales, in the three months ended September 30, 2024 and 2023, respectively. General and administrative expenses decreased due to lower employee related costs of $3,706,000 compared to the prior year and $508,000 of acquisition deal and integration costs, which did not recur in the three months ended September 30, 2024. These cost decreases were offset by $1,462,000 of start-up costs related to the Monterrey, Mexico facility and $222,000 of current year factory and warehouse consolidation costs. Foreign currency translation had a $22,000 favorable impact on general and administrative expenses in the three months ended September 30, 2024.
Current wording
General and administrative expenses were $24,233,000 and $26,255,000, or 10.3% of net sales, in both the three months ended December 31, 2024 and 2023, respectively. General and administrative expenses decreased due to lower incentive-based compensation of $2,178,000 and stock based compensation of $660,000 compared to the prior year. This was offset by $1,299,000 of expense to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025. Foreign currency translation had a favorable impact of $442,000 on general and administrative expenses in the three months ended December 31, 2024.
Previous wording
Research and development expenses were $6,102,000 and $6,541,000, or 2.5% of net sales, in both the fiscal 2025 and 2024 second quarters.
Current wording
Research and development expenses were $5,325,000 and $6,692,000, or 2.3% of net sales, in both the fiscal 2025 and 2024 third quarters.
Previous wording
Amortization of intangibles was $7,547,000 and $7,508,000 in the fiscal 2025 and 2024 second quarters, respectively, with the fluctuations related to foreign currency during the respective periods.
Current wording
Amortization of intangibles was $7,501,000 and $7,486,000 in the fiscal 2025 and 2024 third quarters, respectively, with the fluctuations related to foreign currency during the respective periods.
Previous wording
Interest and debt expense was $8,352,000 in the second quarter ended September 30, 2024 compared to $10,211,000 in the second quarter ended September 30, 2023. The decrease is a result of a reduction of the Company's long term debt as a result of accelerated principal payments.
Current wording
Interest and debt expense was $7,698,000 in the third quarter ended December 31, 2024 compared to $9,952,000 in the third quarter ended December 31, 2023. The decrease is a result of a reduction of the Company's long term debt as a result of accelerated principal payments and declining interest rates.
Previous wording
Investment income of $610,000 compared to an investment loss of $88,000 in the second quarter ended September 30, 2024 and September 30, 2023. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.
Current wording
Investment income was $54,000 in the third quarter ended December 31, 2024 compared to $758,000 in the third quarter ended and December 31, 2023. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.
Previous wording
Other (income) expense, net was $23,806,000 in the second quarter ended September 30, 2024 compared to $393,000 in the second quarter ended September 30, 2023. The increase relates to the non-cash settlement charge of $23,201,000 associated with the termination of one of the Company's U.S. pension plans in the three months ended September 30, 2024, as described in Note 10.
Current wording
Other expense was $1,029,000 in the third quarter ended December 31, 2024 compared to $5,234,000 in the third quarter ended December 31, 2023. The decrease was due to a lump sum settlement charge of $4,599,000 incurred in the third quarter of fiscal 2024 associated with the process to terminate one of the Company's U.S. pension plans. The plan termination was completed in the second quarter of fiscal 2025. The Company incurred an additional non-cash settlement charge of $433,000 in the three months ended December 31, 2024, as described in Note 10 related to the termination of this same plan.
Previous wording
Income tax as a percentage of the pre-tax loss was 25% and income tax as a percentage of the pre-tax income was 24% in the second quarters ended September 30, 2024 and September 30, 2023, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.
Current wording
Income tax as a percentage of the pre-tax loss was 33% and income tax as a percentage of the pre-tax income was 29% in the third quarters ended December 31, 2024 and December 31, 2023, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.
Previous wording
Net sales in the six months ended September 30, 2024 were $482,000,000, a decrease of $11,892,000 or 2.4% from the six months ended September 30, 2023 net sales of $493,892,000. Net sales were positively impacted by $7,341,000 due to price increases, $2,655,000 of revenue from the montratec acquisition, offset by $21,542,000 of unfavorable sales volume. Foreign currency translation unfavorably impacted sales by $346,000 for the six months ended September 30, 2024.
Current wording
Net sales in the nine months ended December 31, 2024 were $716,138,000, a decrease of $31,898,000 or 4.3% from the nine months ended December 31, 2023 net sales of $748,036,000. Net sales were positively impacted by $9,674,000 due to price increases, $2,655,000 of revenue from the montratec acquisition, offset by $42,838,000 of unfavorable sales volume. Foreign currency translation unfavorably impacted sales by $1,389,000 for the nine months ended December 31, 2024.
Previous wording
Gross profit in the six months ended September 30, 2024 was $163,773,000, a decrease of $22,853,000 or 12.2% from the six months ended September 30, 2023 gross profit of $186,626,000. Gross profit margin was 34.0% compared to 37.8% in the six months ended September 30, 2024 and 2023. The decrease in gross profit was due to start-up costs totaling $3,810,000 related to the Monterrey, Mexico facility, $10,763,000 of asset impairment and other costs related to the closure of our Charlotte Manufacturing Operations, $12,105,000 due to lower sales volume, $272,000 of net business realignment costs, and we incurred $171,000 of additional costs due to Hurricane Helene's impact on one of our facilities. These decreases were offset by $3,539,000 of price increases net of material inflation and other manufacturing costs changes and $799,000 as a result of the acquisition of montratec. The translation of foreign currencies had a $70,000 unfavorable impact on gross profit in the six months ended September 30, 2024.
Current wording
Gross profit in the nine months ended December 31, 2024 was $245,870,000, a decrease of $34,653,000 or 12.4% from the nine months ended December 31, 2023 gross profit of $280,523,000. Gross profit margin was 34.3% compared to 37.5% in the nine months ended December 31, 2024 and 2023. The decrease in gross profit was due to start-up costs totaling $6,413,000 related to the Monterrey, Mexico facility, $11,319,000 of asset impairment and other costs primarily related to the closure of our Charlotte Manufacturing Operations, $21,968,000 due to lower sales volume, $1,999,000 due to higher product liability expenses, $648,000 of net business realignment costs, and $171,000 of additional costs due to Hurricane Helene's impact on one of our facilities. These decreases were offset by $7,475,000 of price increases net of material inflation and other manufacturing costs changes and $799,000 as a result of the acquisition of montratec. The translation of foreign currencies had a $409,000 unfavorable impact on gross profit in the nine months ended December 31, 2024.
Previous wording
Selling expenses were $54,696,000 and $51,848,000, or 11.3% and 10.5% of net sales, in the six months ended September 30, 2024 and 2023, respectively. Selling expenses increased by $909,000 related to the montratec acquisition, $802,000 primarily related to trade show and travel costs including the Company's strategic partner conference that was not held in the prior year and $635,000 of net factory and warehouse consolidation costs. The remaining increase is due to higher employee related costs during the six months ended September 30, 2024. Foreign currency translation had a $80,000 favorable impact on selling expenses in the six months ended September 30, 2024.
Current wording
Selling expenses were $82,044,000 and $78,400,000, or 11.5% and 10.5% of net sales, in the nine months ended December 31, 2024 and 2023, respectively. Selling expenses increased by $909,000 related to the montratec acquisition, $802,000 primarily related to trade show and travel costs including the Company's strategic partner conference that was not held in the prior year and $732,000 of net factory and warehouse consolidation costs. The remaining increase is due to higher employee related costs during the nine months ended December 31, 2024. Foreign currency translation had a $175,000 unfavorable impact on selling expenses in the nine months ended December 31, 2024.
Previous wording
Research and development expenses were $12,268,000 and $12,442,000, or 2.5% of net sales, in the six months ended September 30, 2024 and 2023, respectively.
Current wording
Research and development expenses were $17,593,000 and $19,134,000, or 2.5% of net sales, in the nine months ended December 31, 2024 and 2023, respectively.
Previous wording
Amortization of intangibles was $15,047,000 and $14,385,000 in the six months ended September 30, 2024 and 2023, respectively, with fluctuation attributable to foreign currency translation.
Current wording
Amortization of intangibles was $22,548,000 and $21,871,000 in the nine months ended December 31, 2024 and 2023, respectively, with fluctuation attributable to foreign currency translation.
Previous wording
Interest and debt expense was $16,587,000 in the six months ended September 30, 2024 compared to $18,836,000 in the six months ended September 30, 2023. The decrease is a result of a reduction in the Company's long term debt as a result of accelerated principal payments.
Current wording
Interest and debt expense was $24,285,000 in the nine months ended December 31, 2024 compared to $28,788,000 in the nine months ended December 31, 2023. The decrease is a result of a reduction in the Company's long term debt as a result of accelerated principal payments and lower interest rates.
Previous wording
Investment income of $819,000 compared to $454,000 in the six months ended September 30, 2024 and six months ended September 30, 2023. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.
Current wording
Investment income of $873,000 compared to $1,212,000 in the nine months ended December 31, 2024 and nine months ended December 31, 2023. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.
Previous wording
Other (income) expense, net was $24,484,000 compared to $605,000 in the six months ended September 30, 2024 and six months ended September 30, 2023. The increase primarily relates to the non-cash settlement charge of $23,201,000 associated with the termination of one of the Company's U.S. pension plans in six months ended September 30, 2024, described in Note 10 of the financial statements
Current wording
Other expense was $25,512,000 compared to $5,840,000 in the nine months ended December 31, 2024 and nine months ended December 31, 2023. The increase primarily relates to the non-cash settlement charge of $23,634,000 associated with the termination of one of the Company's U.S. pension plans in nine months ended December 31, 2024, described in Note 10 of the financial statements.
Previous wording
Income tax as a percentage of the pre-tax loss was 19% and income tax as a percentage of the pre-tax income was 25% in the six months ended September 30, 2024 and September 30, 2023, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.
Current wording
Income tax as a percentage of the pre-tax loss was (22)% and income tax as a percentage of the pre-tax income was 26% in the nine months ended December 31, 2024 and December 31, 2023, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.
Previous wording
Cash, cash equivalents, and restricted cash totaled $55,933,000 at September 30, 2024, a decrease of $58,443,000 from the March 31, 2024 balance of $114,376,000.
Current wording
Cash, cash equivalents, and restricted cash totaled $41,474,000 at December 31, 2024, a decrease of $72,902,000 from the March 31, 2024 balance of $114,376,000.
Previous wording
Net cash used for operating activities was $1,370,000 for the six months ended September 30, 2024 compared to $558,000 for the six months ended September 30, 2023. Net loss of $6,414,000 along with non-cash adjustments to net loss of $47,222,000 contributed to cash used for operations. The non-cash adjustments included $24,028,000 of depreciation and amortization, $23,201,000 related to the settlement of one of the Company's pension plans, $5,202,000 of non-cash lease expense, $4,175,000 of stock-based compensation, and $3,268,000 related to the impairment of Charlotte Manufacturing Operation's lease. Changes in working capital reduced cash from operations by $38,472,000 as a result of an increase of $12,277,000 in inventories, an increase in prepaid expenses and other current assets of $11,714,000, a decrease of $10,711,000 in trade payables and a decrease in accrued expenses of $6,154,000, offset by a decrease in trade accounts receivable of $2,384,000. The increase in inventories relates to purchases required for expected future customer demand. Cash used for operations also included a decrease of $3,889,000 in other non-current liabilities primarily due to lease payments for the six months ended September 30, 2024.
Current wording
Net cash provided by operating activities was $10,000,000 for the nine months ended December 31, 2024 compared to $28,591,000 for the nine months ended December 31, 2023. Net loss of $2,454,000 along with non-cash adjustments of $63,698,000 contributed to cash provided by operations. The non-cash adjustments included $36,230,000 of depreciation and amortization, $23,634,000 related to the settlement of one of the Company's pension plans, $7,657,000 of non-cash lease expense, $6,677,000 of stock-based compensation, and $3,268,000 related to the impairment of Charlotte Manufacturing Operation's lease. Changes in working capital reduced cash from operations by $46,505,000 as a result of an increase of $18,894,000 in inventories, an increase in prepaid expenses and other current assets of $14,565,000, a decrease in accrued expenses of $15,240,000, and a decrease of $8,061,000 in trade payables, offset by a decrease in trade accounts receivable of $10,255,000. The increase in inventories relates to purchases required for expected future customer demand. Cash provided by operations also included a decrease of $5,225,000 in other non-current liabilities primarily due to lease payments for the nine months ended December 31, 2024.
Previous wording
Net cash used for investing activities was $8,908,000 for the six months ended September 30, 2024 compared to $119,029,000 for the six months ended September 30, 2023. The use of cash for the six months ended September 30, 2024 primarily consisted of $10,068,000 in capital expenditures. In the six months ended September 30, 2023, the most significant use of cash in the period related to the Company's purchase of montratec for $108,145,000.
Current wording
Net cash used for investing activities was $14,222,000 for the nine months ended December 31, 2024 compared to $125,965,000 for the nine months ended December 31, 2023. The use of cash for the nine months ended December 31, 2024 primarily consisted of $15,266,000 in capital expenditures. In the nine months ended December 31, 2023, the most significant use of cash in the period related to the Company's purchase of montratec for $108,145,000.
Previous wording
Net cash used for financing activities was $47,839,000 for the six months ended September 30, 2024 and net cash provided by financing activities was $85,794,000 for the six months ended September 30, 2023. The most significant uses of cash were for $30,326,000 in debt repayments, a $6,711,000 payment to the former owners of montratec for the contingent consideration agreement (refer to Note 2 for additional information), $4,945,000 of shares repurchased as treasury stock during the quarter and a $4,038,000 dividend payment in the quarter. Cash flows from hedging activities related to the Company's cross currency swap are classified as financing activities in the Statement of Cash Flows which resulted in a net cash inflow of $53,000 during the six months ended September 30, 2024. In the six months ended September 30, 2023, the significant source of cash was $120,000,000 in gross proceeds from the issuance of long-term debt, which was used to fund the montratec acquisition.
Current wording
Net cash used for financing activities was $69,499,000 for the nine months ended December 31, 2024 and net cash provided by financing activities was $67,771,000 for the nine months ended December 31, 2023. The most significant uses of cash were for $45,495,000 in debt repayments, $9,945,000 of shares repurchased as treasury stock during the year, a $6,711,000 payment to the former owners of montratec for the contingent consideration agreement (refer to Note 2 for additional information) and $6,039,000 in dividend payments. Cash flows from hedging activities related to the Company's cross currency swap are classified as financing activities in the Statement of Cash Flows which resulted in a net cash inflow of $393,000 during the nine months ended December 31, 2024. In the nine months ended December 31, 2023, the significant source of cash was $120,000,000 in gross proceeds from the issuance of long-term debt, which was used to fund the montratec acquisition (refer to Note 2 for additional information).
Previous wording
We believe that our cash on hand, cash flows, and borrowing capacity under our Amended and Restated Credit Revolving Credit Facility will be sufficient to fund our ongoing operations and debt obligations, and capital expenditures for at least the next twelve months. This belief is dependent upon successful execution of our current business plan and effective working capital utilization. No material restrictions exist in accessing cash held by our non-U.S. subsidiaries. We expect to meet our funding needs with cash provided by our U.S. operations, as well as by repatriating non-U.S. cash. We do not expect to incur significant incremental U.S. taxes as we repatriate funds. As of September 30, 2024, $44,387,000 of cash and cash equivalents were held by foreign subsidiaries.
Current wording
We believe that our cash on hand, cash flows, and borrowing capacity under our Amended and Restated Revolving Credit Facility will be sufficient to fund our ongoing operations and debt obligations, and capital expenditures for at least the next twelve months. This belief is dependent upon successful execution of our current business plan and effective working capital utilization. No material restrictions exist in accessing cash held by our non-U.S. subsidiaries. We expect to meet our funding needs with cash provided by our U.S. operations, as well as by repatriating non-U.S. cash. We do not expect to incur significant incremental U.S. taxes as we repatriate funds. As of December 31, 2024, $38,017,000 of cash and cash equivalents were held by foreign subsidiaries.
Previous wording
In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing and upgrading our property, plant and equipment to support new product development, improve productivity and customer responsiveness, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety and promote ergonomically correct work stations. Consolidated capital expenditures for the six months ended September 30, 2024 and September 30, 2023 were $10,068,000 and $10,319,000, respectively. We expect capital expenditure spending in fiscal 2025 to range from $20,000,000 to $25,000,000.
Current wording
In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing and upgrading our property, plant and equipment to support new product development, improve productivity and customer responsiveness, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety and promote ergonomically correct work stations. Consolidated capital expenditures for the nine months ended December 31, 2024 and December 31, 2023 were $15,266,000 and $16,334,000, respectively. We expect capital expenditure spending in fiscal 2025 to range from $18,000,000 to $22,000,000.
Previous wording
We test goodwill at the reporting unit level, which is one level below our operating segment. We identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components. We also aggregate components that have similar economic characteristics into single reporting units (for example, similar products and / or services, similar long-term financial results, product processes, classes of customers, etc.). We have three reporting units: the Linear Motion Products reporting unit, the Rest of Products reporting unit, and the Precision Conveyance reporting unit, which have goodwill totaling $9,699,000, $310,300,000, and $397,983,000, respectively, as of September 30, 2024.
Current wording
We test goodwill at the reporting unit level, which is one level below our operating segment. We identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components. We also aggregate components that have similar economic characteristics into single reporting units (for example, similar products and / or services, similar long-term financial results, product processes, classes of customers, etc.). We have three reporting units: the Linear Motion Products reporting unit, the Rest of Products reporting unit, and the Precision Conveyance reporting unit, which have goodwill totaling $9,699,000, $297,709,000, and $393,142,000, respectively, as of December 31, 2024.
Previous wording
We currently do not believe that it is more likely than not that the fair value of any of our reporting units is less than its applicable carrying value. Additionally, we currently do not believe that we have any significant impairment indicators or that any of our reporting units with goodwill are at risk of failing Step One of the goodwill impairment test. However, if the projected long-term revenue growth rates, profit margins, or terminal growth rates are significantly lower, and/or the estimated weighted-average cost of capital is considerably higher, future testing may indicate impairment of one or more of the Company’s reporting units and, as a result, the related goodwill may be impaired.
Current wording
We currently do not believe that it is more likely than not that the fair value of any of our reporting units is less than its applicable carrying value. Additionally, we currently do not believe that we have any significant impairment indicators or that any of our reporting units with goodwill are at risk of failing Step One of the goodwill impairment test. However, if the projected long-term revenue growth rates, profit margins, or terminal growth rates are significantly lower, and/or the estimated weighted-average cost of capital is higher, future testing may indicate impairment of one or more of the Company’s reporting units and, as a result, the related goodwill may be impaired.