Columbus McKinnon Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023

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BUFFALO, N.Y., May 25, 2023--(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 2023 fourth quarter, which ended March 31, 2023.

Fiscal Year and Fourth Quarter 2023 Highlights (compared with prior year periods)

  • Set records in fiscal 2023 for sales, gross margin and operating income

  • Strong execution resulted in record fiscal 2023 sales of $936.2 million and record fourth quarter sales of $253.8 million; FX negatively impacted revenue by $30.6 million for the year

  • Achieved record annual gross margin of 36.5%, a 170 basis point improvement; fourth quarter gross margin expanded 220 basis points to 35.9%

  • Operational leverage drove operating income records of $97.8 million for the year and
    $27.5 million for the quarter

  • Generated $83.6 million in cash from operations for the year; delivered $66.7 million in cash from operations in the quarter, strongest quarter on record

  • Reduced net debt leverage ratio to 2.2x1 providing ample flexibility for montratec® acquisition expected to close by May 31st

  • Continue to expect low-to-mid single digit revenue growth in fiscal 2024 plus additional benefits of montratec acquisition

David J. Wilson, President and CEO, commented, "We delivered record sales, gross margin, and operating income for fiscal 2023 as the team successfully executes our strategy to transform Columbus McKinnon into a higher growth, less cyclical business with stronger earnings power. We are driving improvements through the discipline of CMBS which includes our 80/20 process and investments in robust digital tools and processes to improve our customers’ experience. Our fiscal year and fourth quarter results demonstrate another proof point along our path toward our fiscal 2027 financial goals of $1.5 billion in revenue with adjusted EBITDA margin of approximately 21%."

He continued, "We are thrilled to add montratec® to the portfolio as we enter fiscal 2024. montratec brings advanced automation technology to our precision conveying platform. With its rapid growth and attractive margin profile, montratec further propels our transformation. Importantly, our strong cash generation provides the financial flexibility to complete the acquisition and advance our strategy. We expect to close the deal in the next week.

"We are making substantial progress advancing our strategy and are executing to plan. I am excited about where we are headed as an enterprise."

_____________________________
1 On a financial covenant basis per Amended and Restated Credit Agreement

Fourth Quarter Fiscal 2023 Sales

($ in millions)

Q4 FY 23

Q4 FY 22

Change

% Change

Net sales

$

253.8

$

253.4

$

0.4

0.2

%

U.S. sales

$

149.4

$

149.0

$

0.4

0.3

%

% of total

59

%

59

%

Non-U.S. sales

$

104.4

$

104.4

$

—

—

%

% of total

41

%

41

%

For the quarter, sales increased $0.4 million, or 0.2%. Excluding a $4.2 million, or 1.7%, impact of foreign currency exchange, sales on a constant currency basis increased 1.8%. In the U.S., price improved $9.3 million, or 6.3%, which was partially offset by declining volume of $8.9 million, or 6.0%. Outside the U.S., price improved $5.1 million, or 4.9%, partially offset by declining volume of $0.9 million, or 0.8%.

Fourth Quarter Fiscal 2023 Operating Results

($ in millions)

Q4 FY 23

Q4 FY 22

Change

% Change

Gross profit

$

91.2

$

85.5

$

5.7

6.7

%

Gross margin

35.9

%

33.7

%

220 bps

Adjusted gross profit*

$

91.2

$

88.7

$

2.5

2.8

%

Adjusted gross margin*

35.9

%

34.8

%

110 bps

Income from operations

$

27.5

$

24.1

$

3.4

14.2

%

Operating margin

10.8

%

9.5

%

130 bps

Adjusted income from operations*

$

29.2

$

28.6

$

0.6

2.1

%

Adjusted operating margin*

11.5

%

11.2

%

30 bps

Net income (loss)

$

13.9

$

11.8

$

2.1

17.5

%

Net income (loss) margin

5.5

%

4.7

%

80 bps

Diluted EPS

$

0.48

$

0.41

$

0.07

17.1

%

Adjusted EPS*

$

0.80

$

0.79

$

0.01

1.3

%

Adjusted EBITDA*

$

39.7

$

39.3

$

0.4

1.0

%

Adjusted EBITDA margin*

15.7

%

15.4

%

30 bps

*Adjusted gross profit, adjusted gross margin, adjusted income from operations, 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.

Adjusted earnings per diluted share were $0.80 in the fiscal 2023 fourth quarter compared with $0.79 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.

First Quarter Fiscal 2024 Outlook

Columbus McKinnon expects first quarter fiscal 2024 sales at current exchange rates to be in the range of

$235 million to $240 million including the first month of montratec, implying high-single digit growth at the mid-point of the range.

Mr. Wilson concluded, "We are encouraged by the opportunities we are identifying to grow our business at better than market rates. We are utilizing direct customer feedback to inform our actions, enhance customer experience and unlock the potential to earn greater market share. We are deepening our reach in more secular markets with enduring tailwinds and advancing our capabilities to sustain our leadership position in intelligent motion for material handling. We believe we are on track to deliver low-to-mid single digit revenue growth and further margin expansion in fiscal 2024."

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 13738230. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, June 1, 2023. 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 expected growth, future sales and EBITDA margins, and future potential to deliver results; the execution of its strategy and further transformation of the Company with stronger growth, less cyclicality and higher margins, and achievement of certain goals. These statements 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 financial targets including revenue and adjusted EBITDA margin, and to execute CMBS and the Core Growth Framework; global economic and business conditions affecting the industries served by the Company and its subsidiaries including COVID-19; 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. Consequently, such forward-looking statements should be regarded as current plans, estimates and beliefs. 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

March 31, 2023

March 31, 2022

Change

Net sales

$

253,843

$

253,368

0.2

%

Cost of products sold

162,625

167,893

(3.1

)%

Gross profit

91,218

85,475

6.7

%

Gross profit margin

35.9

%

33.7

%

Selling expenses

25,331

27,080

(6.5

)%

% of net sales

10.0

%

10.7

%

General and administrative expenses

26,353

23,633

11.5

%

% of net sales

10.4

%

9.3

%

Research and development expenses

5,506

4,068

35.3

%

% of net sales

2.2

%

1.6

%

Amortization of intangibles

6,559

6,635

(1.1

)%

Income from operations

27,469

24,059

14.2

%

Operating margin

10.8

%

9.5

%

Interest and debt expense

7,668

5,352

43.3

%

Investment (income) loss, net

(483

)

578

NM

Foreign currency exchange loss (gain), net

(1,037

)

527

NM

Other (income) expense, net

(73

)

(378

)

NM

Income before income tax expense

21,394

17,980

19.0

%

Income tax expense

7,499

6,154

21.9

%

Net income

$

13,895

$

11,826

17.5

%

Average basic shares outstanding

28,609

28,507

0.4

%

Basic income per share

$

0.49

$

0.41

19.5

%

Average diluted shares outstanding

28,869

28,845

0.1

%

Diluted income per share

$

0.48

$

0.41

17.1

%

Dividends declared per common share

$

0.14

$

0.13

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Year Ended

March 31, 2023

March 31, 2022

Change

Net sales

$

936,240

$

906,555

3.3

%

Cost of products sold

594,141

590,825

0.6

%

Gross profit

342,099

315,730

8.4

%

Gross profit margin

36.5

%

34.8

%

Selling expenses

102,528

99,187

3.4

%

% of net sales

11.0

%

10.9

%

General and administrative expenses

94,794

102,128

(7.2

)%

% of net sales

10.1

%

11.3

%

Research and development expenses

20,935

15,351

36.4

%

% of net sales

2.2

%

1.7

%

Amortization of intangibles

26,001

25,283

2.8

%

Income from operations

97,841

73,781

32.6

%

Operating margin

10.5

%

8.1

%

Interest and debt expense

27,942

20,126

38.8

%

Cost of debt refinancing

—

14,803

NM

Investment (income) loss, net

(315

)

(46

)

NM

Foreign currency exchange loss (gain), net

(2,189

)

1,574

NM

Other (income) expense, net

(2,072

)

(1,122

)

NM

Income before income tax expense

74,475

38,446

93.7

%

Income tax expense

26,046

8,786

196.4

%

Net income

$

48,429

...

$

29,660

63.3

%

Average basic shares outstanding

28,600

28,040

2.0

%

Basic income per share

$

1.69

$

1.06

59.4

%

Average diluted shares outstanding

28,818

28,401

1.5

%

Diluted income per share

$

1.68

$

1.04

61.5

%

Dividends declared per common share

$

0.28

$

0.25

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

March 31, 2023

March 31, 2022

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

133,176

$

115,390

Trade accounts receivable

151,451

147,515

Inventories

179,359

172,139

Prepaid expenses and other

32,254

31,545

Total current assets

496,240

466,589

Net property, plant, and equipment

94,360

97,926

Goodwill

644,629

648,849

Other intangibles, net

362,537

390,788

Marketable securities

10,368

10,294

Deferred taxes on income

2,035

2,313

Other assets

88,286

68,948

Total assets

$

1,698,455

$

1,685,707

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Trade accounts payable

$

76,736

$

90,881

Accrued liabilities

124,317

118,187

Current portion of long-term debt and finance lease obligations

40,604

40,551

Total current liabilities

241,657

249,619

Term loan and finance lease obligations

430,988

470,675

Other non-current liabilities

192,013

192,610

Total liabilities

864,658

912,904

Shareholders’ equity:

Common stock

286

285

Treasury Stock

(1,001

)

—

Additional paid-in capital

515,797

506,074

Retained earnings

356,758

316,343

Accumulated other comprehensive loss

(38,043

)

(49,899

)

Total shareholders’ equity

833,797

772,803

Total liabilities and shareholders’ equity

$

1,698,455

$

1,685,707

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

Year Ended

March 31, 2023

March 31, 2022

Operating activities:

Net income

$

48,429

$

29,660

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

Depreciation and amortization

41,947

41,924

Deferred income taxes and related valuation allowance

(300

)

(1,969

)

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

(54

)

136

Stock-based compensation

10,425

11,246

Amortization of deferred financing costs

1,721

1,703

Loss (gain) on hedging instruments

(438

)

853

Cost of debt refinancing

—

14,803

Loss on retirement of fixed asset

175

—

Gain on sale of building

(232

)

(375

)

Non-cash lease expense

7,867

7,945

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

Trade accounts receivable

(4,858

)

(18,988

)

Inventories

(9,087

)

(40,201

)

Prepaid expenses and other

6,667

(47

)

Other assets

(123

)

25

Trade accounts payable

(13,964

)

12,681

Accrued liabilities

9,150

696

Non-current liabilities

(13,689

)

(11,211

)

Net cash provided by (used for) operating activities

83,636

48,881

Investing activities:

Proceeds from sales of marketable securities

3,651

4,434

Purchases of marketable securities

(4,021

)

(7,130

)

Capital expenditures

(12,632

)

(13,104

)

Proceeds from sale of building, net of transaction costs

373

461

Proceeds from insurance reimbursement

—

482

Purchases of businesses, net of cash acquired

(1,616

)

(539,778

)

Dividend received from equity method investment

313

324

Net cash provided by (used for) investing activities

(13,932

)

(554,311

)

Financing activities:

Proceeds from issuance of common stock

713

2,655

Purchases of treasury stock

(1,001

)

—

Repayment of debt

(40,550

)

(477,846

)

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

24,495

19,417

Cash outflows from hedging activities

(24,221

)

(20,206

)

Payment of dividends

(8,008

)

(6,562

)

Other

(1,415

)

(2,574

)

Net cash provided by (used for) financing activities

(49,987

)

420,700

Effect of exchange rate changes on cash

(1,931

)

(2,007

)

Net change in cash and cash equivalents

17,786

(86,737

)

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

115,640

202,377

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

$

133,426

$

115,640

COLUMBUS McKINNON CORPORATION

Q4 FY 2023 Sales Bridge

Quarter

Year To Date

($ in millions)

$ Change

% Change

$ Change

% Change

Fiscal 2022 Sales

$

253.4

$

906.6

Acquisitions

—

—

%

22.4

2.5

%

Volume

(9.9

)

(3.9

)%

(9.2

)

(1.0

)%

Pricing

14.5

5.7

%

47.0

5.2

%

Foreign currency translation

(4.2

)

(1.7

)%

(30.6

)

(3.4

)%

Total change

$

0.4

0.2

%

$

29.6

3.3

%

Fiscal 2023 Sales

$

253.8

$

936.2

COLUMBUS McKINNON CORPORATION

Q4 FY 2023 Gross Profit Bridge

($ in millions)

Quarter

Year To Date

Fiscal 2022 Gross Profit

$

85.5

$

315.7

Acquisitions

—

9.5

Price, net of material cost inflation

9.2

22.6

Prior year acquisition amortization of backlog

1.7

2.2

Prior year acquisition inventory step-up expense

1.5

5.0

Tariffs

0.5

0.6

Productivity, net of other cost changes

(0.5

)

(5.0

)

Foreign currency translation

(1.3

)

(10.8

)

Sales volume and mix

(5.4

)

(3.4

)

Business realignment costs

—

1.6

Acquisition integration costs

—

0.5

Product liability

—

0.7

Prior year product liability settlement

—

2.9

Total change

5.7

26.4

Fiscal 2023 Gross Profit

$

91.2

$

342.1

U.S. Shipping Days by Quarter

Q1

Q2

Q3

Q4

Total

FY 24

63

62

61

62

248

FY 23

63

64

60

63

250

FY 22

63

64

61

63

251

COLUMBUS McKINNON CORPORATION

Additional Data - UNAUDITED

March 31, 2023

December 31, 2022

March 31, 2022

($ in millions)

Backlog

$

308.7

$

329.1

$

309.1

Long-term backlog

Expected to ship beyond 3 months

$

142.0

$

164.7

$

135.2

Long-term backlog as % of total backlog

46.0

%

50.0

%

43.7

%

Trade accounts receivable

Days sales outstanding

54.3

days

58.0

days

53.0

days

Inventory turns per year

(based on cost of products sold)

3.6

turns

3.0

turns

3.9

turns

Days' inventory

101.4

days

121.0

days

93.6

days

Trade accounts payable

Days payables outstanding

53.3

days

52.6

days

58.7

days

Working capital as a % of sales (2)

17.3

%

22.1

%

15.5

%

Net cash provided by (used for) operating activities

$

66.7

$

10.8

$

25.2

Capital expenditures

$

3.1

$

4.2

$

3.6

Free cash flow (1)

$

63.6

$

6.5

$

21.6

Debt to total capitalization percentage

36.1

%

37.3

%

39.8

%

Debt, net of cash, to net total capitalization

28.9

%

33.0

%

33.9

%

(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) March 31, 2022 figure excludes 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 March 31,

Year Ended March 31,

2023

2022

2023

2022

GAAP gross profit

$

91,218

$

85,475

$

342,099

$

315,730

Add back (deduct):

Acquisition inventory step-up expense

—

1,546

—

5,042

Product liability settlement

—

—

—

2,850

Acquisition amortization of backlog

—

1,650

—

2,100

Business realignment costs

—

—

—

1,606

Acquisition integration costs

—

—

—

521

Non-GAAP adjusted gross profit

$

91,218

$

88,671

$

342,099

$

327,849

Sales

$

253,843

$

253,368

$

936,240

$

906,555

Add back:

Acquisition amortization of backlog

—

1,650

—

2,100

Non-GAAP sales

$

253,843

$

255,018

$

936,240

$

908,655

Gross margin - GAAP

35.9

%

33.7

%

36.5

%

34.8

%

Adjusted gross margin - Non-GAAP

35.9

%

34.8

%

36.5

%

36.1

%

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 March 31,

Year Ended March 31,

2023

2022

2023

2022

GAAP income from operations

$

27,469

$

24,059

$

97,841

$

73,781

Add back (deduct):

Acquisition deal and integration costs

173

229

616

10,473

Acquisition inventory step-up expense

—

1,546

—

5,042

Business realignment costs

848

1,115

5,140

3,902

Product liability settlement

—

—

—

2,850

Garvey contingent consideration

—

—

1,230

—

Headquarter relocation costs

681

—

996

—

Acquisition amortization of backlog

—

1,650

—

2,100

Non-GAAP adjusted income from operations

$

29,171

$

28,599

$

105,823

$

98,148

Sales

$

253,843

$

253,368

$

936,240

$

906,555

Add back:

Acquisition amortization of backlog

—

1,650

—

2,100

Non-GAAP sales

$

253,843

$

255,018

$

936,240

$

908,655

Operating margin - GAAP

10.8

%

9.5

%

10.5

%

8.1

%

Adjusted operating margin - Non-GAAP

11.5

%

11.2

%

11.3

%

10.8

%

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 March 31,

Year Ended March 31,

2023

2022

2023

2022

GAAP net income (loss)

$

13,895

$

11,826

$

48,429

$

29,660

Add back (deduct):

Amortization of intangibles

6,559

6,635

26,001

25,283

Cost of debt refinancing

—

—

—

14,803

Acquisition deal and integration costs

173

229

616

10,473

Acquisition inventory step-up expense

—

1,546

—

5,042

Business realignment costs

848

1,115

5,140

3,902

Product liability settlement

—

—

—

2,850

Acquisition amortization of backlog

—

1,650

—

2,100

Garvey contingent consideration

—

—

1,230

—

Headquarter relocation costs

681

—

996

—

Normalize tax rate to 22% (1)

975

(260

)

2,185

(13,852

)

Non-GAAP adjusted net income

$

23,131

$

22,741

$

84,597

$

80,261

Average diluted shares outstanding

28,869

28,845

28,818

28,401

Diluted income (loss) per share - GAAP

$

0.48

$

0.41

$

1.68

$

1.04

Diluted income per share - Non-GAAP

$

0.80

$

0.79

$

2.94

$

2.83

(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 March 31,

Year Ended March 31,

2023

2022

2023

2022

GAAP net income (loss)

$

13,895

$

11,826

$

48,429

$

29,660

Add back (deduct):

Income tax expense

7,499

6,154

26,046

8,786

Interest and debt expense

7,668

5,352

27,942

20,126

Investment (income) loss, net

(483

)

578

(315

)

(46

)

Foreign currency exchange loss (gain), net

(1,037

)

527

(2,189

)

1,574

Other (income) expense, net

(73

)

(378

)

(2,072

)

(1,122

)

Depreciation and amortization expense

10,567

10,679

41,947

41,924

Cost of debt refinancing

—

—

—

14,803

Acquisition deal and integration costs

173

229

616

10,473

Acquisition inventory step-up expense

—

1,546

—

5,042

Business realignment costs

848

1,115

5,140

3,902

Product liability settlement

—

—

—

2,850

Acquisition amortization of backlog

—

1,650

—

2,100

Garvey contingent consideration

—

—

1,230

—

Headquarter relocation costs

681

—

996

—

Non-GAAP adjusted EBITDA

$

39,738

$

39,278

$

147,770

$

140,072

Sales

$

253,843

$

253,368

$

936,240

$

906,555

Add back:

Acquisition amortization of backlog

—

1,650

—

2,100

Non-GAAP sales

$

253,843

$

255,018

$

936,240

$

908,655

Net income (loss) margin - GAAP

5.5

%

4.7

%

5.2

%

3.3

%

Adjusted EBITDA margin - Non-GAAP

15.7

%

15.4

%

15.8

%

15.4

%

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230525005240/en/

Contacts

Gregory P. Rustowicz
Executive Vice President - Finance and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5442
greg.rustowicz@cmworks.com

Investor Relations:
Deborah K. Pawlowski
Kei Advisors LLC
716-843-3908
dpawlowski@keiadvisors.com

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