Columbus McKinnon Corporation

01/27/2022 | Press release | Distributed by Public on 01/27/2022 05:35

Columbus McKinnon Reports Revenue Growth of 30% for Third Quarter Fiscal Year 2022

BUFFALO, N.Y.--(BUSINESS WIRE)-- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2022 third quarter, which ended December 31, 2021. Results include the additions of Dorner Manufacturing Corporation and Garvey Corporation, which were acquired on April 7, 2021 and December 1, 2021, respectively.

Third Quarter Highlights (compared with prior-year period)

  • Advancing Columbus McKinnon's transformation to intelligent motion solutions for material handling
  • Garvey acquisition enhances precision conveyance platform with leading accumulation systems
  • Sales grew 30% from acquisitions, strong organic volume and improved pricing
  • Orders up 14% year-over-year excluding acquisitions; strong demand across end markets; Backlog at quarter end was record $295 million
  • Gross margin was 34.7%; adjusted gross margin of 36.7% matched record set in second quarter
  • Solid cash generation while building inventory to address strong demand amidst supply chain constraints

David Wilson, President and CEO of Columbus McKinnon, commented, "We believe our strong results in the quarter reflect our successful execution of the Blueprint for Growth 2.0 strategy as we advance the transformation of Columbus McKinnon. The acquisition of Garvey Corporation completed in December 2021 was an excellent example of an ideal bolt-on acquisition that expands our precision conveyance capabilities and deepens our reach into the fast growing and less cyclical food & beverage and pharmaceutical industries. In addition, strong volume and productivity, combined with pricing that more than offset material inflation, delivered record third quarter gross margin. We are successfully navigating a dynamic and challenging environment and delivering solid results while experiencing strong demand across the business. As a result, we are entering our fiscal fourth quarter with record backlog."

He added, "As a global expert in floor-to-ceiling intelligent motion solutions for material handling, we see our solutions as uniquely positioned to drive value in this global economy. Our solutions are enabling our customers in e-commerce, food & beverage, life sciences, aerospace and automotive to address some of the most pressing issues that they are facing today. We are providing critical support for vaccine deliveries, e-commerce expansion, supply chain rebalancing, labor shortages, capacity expansion and modernization."

Third Quarter Fiscal 2022 Sales

($ in millions)

Q3 FY 22

Q3 FY 21

Change

% Change

Net sales

$

216.1

$

166.5

$

49.5

29.7

%

U.S. sales

$

128.7

$

87.6

$

41.1

46.9

%

% of total

60

%

53

%

Non-U.S. sales

$

87.4

$

78.9

$

8.5

10.8

%

% of total

40

%

47

%

For the quarter, sales increased $49.5 million, or 29.7%. Acquisitions added $36.4 million in sales. In the U.S., volume improved $6.5 million, or 7.5%, and price improved $3.2 million, or 3.6%. U.S. sales related to acquisitions were $31.4 million. Outside the U.S., volume improved $2.4 million, or 3.1%, and price improved $2.5 million, or 3.1%. This more than offset unfavorable foreign currency translation of

$1.5 million, or 0.9% of total sales. Acquisitions added $5.0 million of sales outside the U.S.

Third Quarter Fiscal 2022 Operating Results

($ in millions)

Q3 FY 22

Q3 FY 21

Change

% Change

Gross profit

$

75.1

$

55.3

$

19.7

35.7%

Gross margin

34.7

%

33.2

%

150 bps

Income from operations

$

15.3

$

10.4

$

4.9

46.6%

Operating margin

7.1

%

6.3

%

80 bps

Adjusted income from operations*

$

20.5

$

11.2

$

9.3

83.5%

Adjusted operating margin*

9.5

%

6.7

%

280 bps

Net income (loss)

$

9.9

$

6.6

$

3.3

50.0%

Net income (loss) margin

4.6

%

4.0

%

60 bps

Diluted EPS

$

0.34

$

0.27

$

0.07

25.9%

Adjusted EPS*

$

0.60

$

0.36

$

0.24

66.7%

Adjusted EBITDA*

$

30.7

$

18.1

$

12.6

69.4%

Adjusted EBITDA margin*

14.2

%

10.9

%

330 bps

*Adjusted operating income, adjusted operating margin, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding adjusted operating income, adjusted operating margin, adjusted EPS, and the reconciliation of GAAP net income (loss) to adjusted EBITDA.

Acquisitions added $6.8 million in adjusted operating income. Adjusted earnings per diluted share were $0.60 in the fiscal 2022 third quarter compared with $0.36 in the prior year. Adjusted EPS excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.

Fourth Quarter Fiscal 2022 Outlook

Columbus McKinnon expects fourth quarter fiscal 2022 sales of approximately $235 million at current exchange rates. Mr. Wilson commented, "We have had great momentum throughout fiscal 2022 and expect to end on a strong note. As we look beyond this fiscal year, we are greatly encouraged with the progress we are making as an organization as we focus on faster growing markets, enhance our capabilities with new technologies and build a world-class organization that will be central to the automation of material handling around the world."

Teleconference/webcast

Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which management will review the Company's financial results and strategy. The review will be accompanied by a slide presentation, which will be available on Columbus McKinnon's website at investors.columbusmckinnon.com. A question-and-answer session will follow the formal discussion.

The conference call can be accessed by dialing 201-493-6780. The listen-only audio webcast can be monitored at investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13725924. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, February 3. Alternatively, an archived webcast of the call can be found on the Company's website. In addition, a transcript of the call will be posted to the website once available.

About Columbus McKinnon

Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.

Safe Harbor Statement

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company's ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the forward-looking information contained in this release.

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Three Months Ended

December 31,
2021

December 31,
2020

Change

Net sales

$

216,088

$

166,547

29.7%

Cost of products sold

141,031

111,232

26.8%

Gross profit

75,057

55,315

35.7%

Gross profit margin

34.7

%

33.2

%

Selling expenses

24,468

18,829

29.9%

% of net sales

11.3

%

11.3

%

General and administrative expenses

25,144

19,859

26.6%

% of net sales

11.6

%

11.9

%

Research and development expenses

3,875

3,038

27.6%

% of net sales

1.8

%

1.8

%

Amortization of intangibles

6,254

3,142

99.0%

Income from operations

15,316

10,447

46.6%

Operating margin

7.1

%

6.3

%

Interest and debt expense

4,375

2,986

46.5%

Investment (income) loss

(76)

(495)

(84.6)%

Foreign currency exchange (gain) loss

512

602

(15.0)%

Other (income) expense, net

(455)

144

NM

Income (loss) before income tax expense (benefit)

10,960

7,210

52.0%

Income tax expense (benefit)

1,066

616

73.1%

Net income (loss)

$

9,894

$

6,594

50.0%

Average basic shares outstanding

28,469

23,928

19.0%

Basic income (loss) per share

$

0.35

$

0.28

25.0%

Average diluted shares outstanding

28,840

24,201

19.2%

Diluted income (loss) per share

$

0.34

$

0.27

25.9%

Dividends declared per common share

$

0.06

$

0.06

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Nine Months Ended

December 31,
2021

December 31,
2020

Change

Net sales

$

653,187

$

463,407

41.0%

Cost of products sold

422,932

307,270

37.6%

Gross profit

230,255

156,137

47.5%

Gross profit margin

35.3

%

33.7

%

Selling expenses

72,107

56,087

28.6%

% of net sales

11.0

%

12.1

%

General and administrative expenses

78,495

53,842

45.8%

% of net sales

12.0

%

11.6

%

Research and development expenses

11,283

8,703

29.6%

% of net sales

1.7

%

1.9

%

Amortization of intangibles

18,648

9,449

97.4%

Income from operations

49,722

28,056

77.2%

Operating margin

7.6

%

6.1

%

Interest and debt expense

14,774

9,192

60.7%

Cost of debt refinancing

14,803

-

NM

Investment (income) loss

(624)

(1,429)

(56.3)%

Foreign currency exchange (gain) loss

1,047

1,083

(3.3)%

Other (income) expense, net

(744)

20,081

NM

Income (loss) before income tax expense (benefit)

20,466

(871)

NM

Income tax expense (benefit)

2,632

(392)

NM

Net income (loss)

$

17,834

$

(479)

NM

Average basic shares outstanding

27,887

23,871

16.8%

Basic income (loss) per share

$

0.64

$

(0.02)

NM

Average diluted shares outstanding

28,255

23,871

18.4%

Diluted income (loss) per share

$

0.63

$

(0.02)

NM

Dividends declared per common share

$

0.12

$

0.12

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

December 31,
2021

March 31, 2021

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

106,699

$

202,127

Trade accounts receivable

125,879

105,464

Inventories

175,099

111,488

Prepaid expenses and other

33,449

22,763

Total current assets

441,126

441,842

Property, plant, and equipment, net

98,219

74,753

Goodwill

657,084

331,176

Other intangibles, net

400,560

213,362

Marketable securities

11,099

7,968

Deferred taxes on income

2,138

20,080

Other assets

61,247

61,251

Total assets

$

1,671,473

$

1,150,432

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade accounts payable

$

74,061

$

68,593

Accrued liabilities

116,410

110,816

Current portion of long-term debt and finance lease obligations

40,530

4,450

Total current liabilities

231,001

183,859

Term loan and finance lease obligations

480,589

244,504

Other non-current liabilities

214,248

191,920

Total liabilities

925,838

620,283

Shareholders' equity:

Common stock

285

240

Additional paid-in capital

503,701

296,093

Retained earnings

308,223

293,802

Accumulated other comprehensive loss

(66,574)

(59,986)

Total shareholders' equity

745,635

530,149

Total liabilities and shareholders' equity

$

1,671,473

$

1,150,432

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

Nine Months Ended

December 31,
2021

December 31,
2020

Operating activities:

Net income (loss)

$

17,834

$

(479)

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization

31,245

21,203

Deferred income taxes and related valuation allowance

(1,940)

(7,344)

Net loss (gain) on sale of real estate, investments, and other

(390)

(1,262)

Stock based compensation

8,485

5,840

Amortization of deferred financing costs

1,274

1,986

Cost of debt refinancing

14,803

-

Loss (gain) on hedging instruments

682

-

Non-cash pension settlement expense

-

18,933

Gain on sale of building

(375)

(2,638)

Non-cash lease expense

5,936

5,721

Changes in operating assets and liabilities, net of effects of business acquisitions:

Trade accounts receivable

3,931

34,254

Inventories

(42,215)

20,786

Prepaid expenses and other

(5,544)

(1,564)

Other assets

(298)

545

Trade accounts payable

(4,229)

(8,764)

Accrued liabilities

2,608

(9,922)

Non-current liabilities

(8,080)

(5,347)

Net cash provided by (used for) operating activities

23,727

71,948

Investing activities:

Proceeds from sales of marketable securities

3,441

4,231

Purchases of marketable securities

(6,357)

(4,067)

Capital expenditures

(9,506)

(5,904)

Proceeds from sale of building, net of transaction costs

461

5,453

Proceeds from insurance reimbursement

482

100

Purchases of businesses, net of cash acquired

(539,778)

-

Dividend received from equity method investment

324

587

Proceeds from sale of fixed assets

-

446

Net cash provided by (used for) investing activities

(550,933)

846

Financing activities:

Proceeds from issuance of common stock

2,520

1,828

Borrowings under line-of-credit agreements

-

25,000

Payments under line-of-credit agreements

-

(25,000)

Repayment of debt

(467,725)

(3,338)

Proceeds from issuance of long-term debt

725,000

-

Proceeds from equity offering

207,000

-

Fees related to debt and equity offering

(26,184)

-

Cash inflows from hedging activities

13,234

-

Cash outflows from hedging activities

(13,687)

-

Fees paid for revolver extension

-

(826)

Payment of dividends

(4,852)

(4,294)

Other

(2,054)

(1,050)

Net cash provided by (used for) financing activities

433,252

(7,680)

Effect of exchange rate changes on cash

(1,474)

8,062

Net change in cash and cash equivalents

(95,428)

73,176

Cash, cash equivalents, and restricted cash at beginning of year

202,377

114,700

Cash, cash equivalents, and restricted cash at end of period

$

106,949

$

187,876

COLUMBUS McKINNON CORPORATION

Q3 FY 2022 Sales Bridge

Quarter

Year To Date

($ in millions)

$ Change

% Change

$ Change

% Change

Fiscal 2021 Sales

$

166.5

$

463.4

Acquisitions

36.4

21.8%

104.1

22.5%

Volume

9.1

5.4%

66.7

14.4%

Pricing

5.6

3.4%

11.6

2.5%

Foreign currency translation

(1.5)

(0.9)%

7.4

1.6%

Total change

$

49.6

29.7%

$

189.8

41.0%

Fiscal 2022 Sales

$

216.1

$

653.2

COLUMBUS McKINNON CORPORATION

Q3 FY 2022 Gross Profit Bridge

($ in millions)

Quarter

Year To Date

Fiscal 2021 Gross Profit

$

55.3

$

156.1

Acquisitions

16.7

44.0

Sales volume and mix

3.2

23.1

Productivity, net of other cost changes

3.6

11.9

Price, net of material cost inflation

1.4

3.0

Prior year factory closure costs

0.3

2.7

Foreign currency translation

(0.5)

2.4

Prior year business realignment costs

0.2

0.6

Acquisition integration costs

-

(0.5)

Acquisition amortization of backlog

(0.5)

(0.5)

Business realignment costs

(0.7)

(1.6)

Prior year gain on sale of building

-

(2.2)

Tariffs

(0.4)

(2.2)

Product liability

(3.0)

(3.0)

Acquisition inventory step-up expense

(0.5)

(3.5)

Total change

19.8

74.2

Fiscal 2022 Gross Profit

$

75.1

$

230.3

U.S. Shipping Days by Quarter

Q1

Q2

Q3

Q4

Total

FY 22

63

64

61

63

251

FY 21

63

64

61

63

251

COLUMBUS McKINNON CORPORATION

Additional Data - UNAUDITED

December 31,
2021

September 30,
2021

March 31, 2021

December 31,
2020

($ in millions)

Backlog

$

294.7

$

255.6

$

171.7

$

152.4

Long-term backlog

Expected to ship beyond 3 months

$

116.3

$

110.5

$

68.0

$

62.1

Long-term backlog as % of total backlog

39.5

%

43.2

%

39.6

%

40.7

%

Trade accounts receivable

Days sales outstanding (3)

50.6

days

51.0

days

51.5

days

51.5

days

Inventory turns per year (3)

(based on cost of products sold)

3.3

turns

3.9

turns

4.4

turns

3.9

turns

Days' inventory (3)

111.4

days

94.7

days

83.3

days

93.1

days

Trade accounts payable

Days payables outstanding (3)

56.9

days

54.3

days

58.7

days

46.6

days

Working capital as a % of sales (2)

15.2

%

14.4

%

9.3

%

13.3

%

Net cash provided by (used for) operating activities

$

5.8

$

25.3

$

26.9

$

25.0

Capital expenditures

$

(2.8)

$

3.1

$

6.4

$

3.1

Free cash flow (1)

$

3.0

$

22.2

$

20.5

$

21.9

Debt to total capitalization percentage

41.1

%

38.1

%

32.0

%

33.4

%

Debt, net of cash, to net total capitalization

35.7

%

32.1

%

8.1

%

11.1

%

(1) Free cash flow is defined as cash from operations less capital expenditures. Free cash flow is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as free cash flow, is important for investors and other readers of the Company's financial statements.
Components may not add due to rounding.
(2) December 31, 2021 and September 30, 2021 figures exclude the impact of the acquisitions of Dorner and Garvey.
(3) December 31, 2021 figures exclude the impact of the acquisition of Garvey.

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit

($ in thousands, except per share data)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2021

2020

2021

2020

GAAP gross profit

$

75,057

$

55,315

$

230,255

$

156,137

Add back (deduct):

Acquisition inventory step-up expense

515

-

3,496

-

Product liability settlement

2,850

-

2,850

-

Business realignment costs

692

237

1,606

566

Acquisition integration costs

-

-

521

-

Acquisition amortization of backlog

450

-

450

-

Factory closures

-

250

-

2,671

Gain on sale of building

-

-

-

(2,189)

Non-GAAP adjusted gross profit

$

79,564

$

55,802

$

239,178

$

157,185

Sales

$

216,088

$

166,547

$

653,187

$

463,407

Add back:

Acquisition amortization of backlog

450

-

450

-

Non-GAAP sales

$

216,538

$

166,547

$

653,637

$

463,407

Gross margin - GAAP

34.7

%

33.2

%

35.3

%

33.7

%

Adjusted gross margin - Non-GAAP

36.7

%

33.5

%

36.6

%

33.9

%

Adjusted gross profit is defined as gross profit as reported, adjusted for certain items. Adjusted gross profit is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted gross profit, is important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's gross profit to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations

($ in thousands, except per share data)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2021

2020

2021

2020

GAAP income from operations

$

15,316

$

10,447

$

49,722

$

28,056

Add back (deduct):

Acquisition deal and integration costs

370

-

10,244

-

Acquisition inventory step-up expense

515

-

3,496

-

Product liability settlement

2,850

-

2,850

-

Business realignment costs

964

237

2,787

1,058

Acquisition amortization of backlog

450

-

450

-

Factory closures

-

469

-

3,472

Insurance recovery legal costs

-

-

-

229

Gain on sale of building

-

-

-

(2,638)

Non-GAAP adjusted income from operations

$

20,465

$

11,153

$

69,549

$

30,177

Sales

$

216,088

$

166,547

$

653,187

$

463,407

Add back:

Acquisition amortization of backlog

450

-

450

-

Non-GAAP sales

$

216,538

$

166,547

$

653,637

$

463,407

Operating margin - GAAP

7.1

%

6.3

%

7.6

%

6.1

%

Adjusted operating margin - Non-GAAP

9.5

%

6.7

%

10.6

%

6.5

%

Adjusted income from operations is defined as income from operations as reported, adjusted for certain items. Adjusted income from operations is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted income from operations, is important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's income from operations to the historical periods' income from operations, as well as facilitates a more meaningful comparison of the Company's income from operations to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Net Income and Diluted Earnings per Share to

Non-GAAP Adjusted Net Income and Diluted Earnings per Share

($ in thousands, except per share data)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2021

2020

2021

2020

GAAP net income (loss)

$

9,894

$

6,594

$

17,834

$

(479)

Add back (deduct):

Amortization of intangibles

6,254

3,142

18,648

9,449

Cost of debt refinancing

-

-

14,803

-

Acquisition deal and integration costs

370

-

10,244

-

Acquisition inventory step-up expense

515

-

3,496

-

Product liability settlement

2,850

-

2,850

-

Business realignment costs

964

237

2,787

1,058

Acquisition amortization of backlog

450

-

450

-

Non-cash pension settlement expense

-

-

-

19,046

Factory closures

-

469

-

3,472

Insurance recovery legal costs

-

-

-

229

Gain on sale of building

-

-

-

(2,638)

Normalize tax rate to 22% (1)

(3,854)

(1,817)

(13,592)

(6,936)

Non-GAAP adjusted net income

$

17,443

$

8,625

$

57,520

$

23,201

Average diluted shares outstanding

28,840

24,201

28,255

24,088

Diluted income (loss) per share - GAAP

$

0.34

$

0.27

$

0.63

$

(0.02)

Diluted income per share - Non-GAAP

$

0.60

$

0.36

$

2.04

$

0.96

(1) Applies a normalized tax rate of 22% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangible assets, and also adjusted for a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted net income and diluted EPS, is important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's net income and diluted EPS to the historical periods' net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company's net income and diluted EPS to that of other companies. The Company believes that representing adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically.

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA

($ in thousands)

Three Months Ended
December 31,

Nine Months Ended
December 31,

2021

2020

2021

2020

GAAP net income (loss)

$

9,894

$

6,594

$

17,834

$

(479)

Add back (deduct):

Income tax expense (benefit)

1,066

616

2,632

(392)

Interest and debt expense

4,375

2,986

14,774

9,192

Investment (income) loss

(76)

(495)

(624)

(1,429)

Foreign currency exchange (gain) loss

512

602

1,047

1,083

Other (income) expense, net

(455)

144

(744)

20,081

Depreciation and amortization expense

10,276

6,993

31,245

21,203

Cost of debt refinancing

-

-

14,803

-

Acquisition deal and integration costs

370

-

10,244

-

Acquisition inventory step-up expense

515

-

3,496

-

Product liability settlement

2,850

-

2,850

-

Business realignment costs

964

237

2,787

1,058

Acquisition amortization of backlog

450

-

450

-

Factory closures

-

469

-

3,472

Insurance recovery legal costs

-

-

-

229

Gain on sale of building

-

-

-

(2,638)

Non-GAAP adjusted EBITDA

$

30,741

$

18,146

$

100,794

$

51,380

Sales

$

216,088

$

166,547

$

653,187

$

463,407

Add back:

Acquisition amortization of backlog

450

-

450

-

Non-GAAP sales

$

216,538

$

166,547

$

653,637

$

463,407

Net income (loss) margin - GAAP

4.6

%

4.0

%

2.7

%

(0.1)

%

Adjusted EBITDA margin - Non-GAAP

14.2

%

10.9

%

15.4

%

11.1

%

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted EBITDA, is important for investors and other readers of the Company's financial statements.

Gregory P. Rustowicz
Senior Vice President - Finance and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5442
[email protected]

Investor Relations:
Deborah K. Pawlowski
Kei Advisors LLC
716-843-3908
[email protected]

Source: Columbus McKinnon Corporation