Business Wire | May 26, 2021 06:30AM EDT

Columbus McKinnon Reports Financial Results for Fourth Quarter Fiscal Year 2021

May 26, 2021

BUFFALO, N.Y.--(BUSINESS WIRE)--May 26, 2021--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 2021 fourth quarter, which ended March 31, 2021.

Fourth Quarter and Fiscal Year 2021 Highlights

* Executed on Blueprint for Growth 2.0 strategy to deliver solid results in challenging year while building momentum for fiscal 2022 * Ended year with much improved order volume in fourth quarter; orders up 24% over trailing third quarter and up 6% over prior-year period * Delivered $186.2 million in revenue in the quarter, up 12% sequentially * Generated strong cash from operations in fiscal year of $98.9 million * Entered fiscal 2022 with backlog of $171.7 million, up 31% over prior-year period and 13% over trailing quarter * Advanced strategy with the acquisition of new platform of high-precision conveying systems for intelligent motion in material handling * Successfully completed equity and debt financing transactions

David Wilson, President and CEO of Columbus McKinnon, commented, "We ended fiscal 2021 on a high note with orders growing in both our project and short cycle businesses. While the year was challenged with the impact of the global pandemic and resulting recession, we employed the tools of the Columbus McKinnon Business System to keep our momentum building and make our Company stronger. We delivered improved decremental leverage over previous downturns, generated robust cash flow, reduced our working capital requirements, and introduced several new products including our line of Intelli-Crane(tm) solutions. In addition, we identified and announced the Dorner acquisition which establishes a new platform for growth. It provides a catalyst for faster growth in attractive markets with strong tailwinds and presents strategic opportunities in a fragmented market. Since entering fiscal 2022, we have successfully issued equity, restructured our debt and are well positioned to quickly de-lever our balance sheet."

Fourth Quarter Fiscal 2021 Sales

($ in millions) Q4 FY 21 Q4 FY 20 Change % Change

Net sales $ 186.2 $ 189.5 $ (3.3) (1.7) %



U.S. sales $ 94.8 $ 104.1 $ (9.3) (8.9) %

% of total 51 % 55 %

Non-U.S. sales $ 91.4 $ 85.4 $ 6.0 7.0 %

% of total 49 % 45 %

Revenue recovered sequentially throughout fiscal 2021 almost approaching levels recorded in the fourth quarter of fiscal 2020 when the COVID-19 global pandemic had an approximate $10 million impact on revenue. A 0.8% price improvement in the U.S. partially offset approximately $10.1 million in lower volume. Outside the U.S., a $5.9 million, or 6.9%, positive impact from foreign currency translation and price improvement of 1.2% more than offset $0.9 million of lower volume.

Compared with the trailing third quarter, sales improved 11.8% with short cycle sales up 11.7% and project sales up 11.9%.

Fourth Quarter Fiscal 2021 Operating Results

($ in millions) Q4 FY 21 Q4 FY 20 Change % Change

Gross profit $ 64.1 $ 66.2 $ (2.1) (3.2) %

Gross margin 34.4 % 34.9 % (50) bps

Income from operations $ 14.2 $ 16.7 $ (2.5) (14.8) %

Operating margin 7.6 % 8.8 % (120) bps

Adjusted income from operations* $ 18.9 $ 20.2 $ (1.3) (6.5) %

Adjusted operating margin* 10.1 % 10.7 % (60) bps

Net income $ 9.6 $ 9.2 $ 0.3 3.7 %

Diluted EPS $ 0.39 $ 0.39 $ - - %

Net income margin 5.1 % 4.9 % 20 bps

Adjusted EBITDA* $ 25.8 $ 27.3 $ (1.5) (5.5) %

Adjusted EBITDA margin* 13.9 % 14.4 % (50) bps

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

First Quarter Fiscal 2022 Outlook

The Company expects first quarter fiscal 2022 sales to be within a range of approximately $212 million to $217 million at current exchange rates and including the Dorner acquisition.

Mr. Wilson concluded, "We are encouraged with growing demand for our lifting solutions as customers release projects and short cycle order trends improve. We are also excited about the addition of Dorner to our relevant portfolio of intelligent motion solutions and are seeing strong demand for high-precision conveying solutions. In fact, the business ended April with a record backlog, further confirming our conviction in the value of this acquisition."

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 13718341. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Wednesday, June 2, 2021. 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 efficiently and ergonomically move, lift, position and secure 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 Covid-19, the ability of the Company to integrate Dorner and achieve cost and revenue synergies and the amount of such synergies, the level of earnings per share accretion expectations; the ability of the Company to achieve its Blueprint for Growth 2.0 strategy; and the amount of integration costs and the Company's efforts to reduce costs, maintain liquidity and generate cash in the current pandemic, the effectiveness of the Company's 80/20 Process to simplify operations, the ability of the Company's Operational Excellence initiatives to drive profitability, the Company's ability to grow market share, the 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 CORPORATIONCondensed Consolidated Income Statements - UNAUDITED(In thousands, except per share and percentage data)

Three Months Ended

March 31, March 31, Change 2021 2020

Net sales $ 186,235 $ 189,486 (1.7) %

Cost of products sold 122,147 123,277 (0.9) %

Gross profit 64,088 66,209 (3.2) %

Gross profit margin 34.4 % 34.9 %

Selling expenses 20,820 22,253 (6.4) %

% of net sales 11.2 % 11.7 %

General and administrative expenses 22,193 21,167 4.8 %

% of net sales 11.9 % 11.2 %

Research and development expenses 3,702 2,891 28.1 %

% of net sales 2.0 % 1.5 %

Amortization of intangibles 3,174 3,234 (1.9) %

Income from operations 14,199 16,664 (14.8) %

Operating margin 7.6 % 8.8 %

Interest and debt expense 2,889 3,200 (9.7) %

Investment (income) loss (264) 48 NM

Foreign currency exchange (gain) loss (142) (996) (85.7) %

Other (income) expense, net 769 221 248.0 %

Income (loss) before income tax expense 10,947 14,191 (22.9) %(benefit)

Income tax expense (benefit) 1,362 4,947 (72.5) %

Net income $ 9,585 $ 9,244 3.7 %



Average basic shares outstanding 23,977 23,735 1.0 %

Basic income per share $ 0.40 $ 0.39 2.6 %



Average diluted shares outstanding 24,384 23,938 1.9 %

Diluted income per share $ 0.39 $ 0.39 - %



Dividends declared per common share $ 0.12 $ 0.12

COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED(In thousands, except per share and percentage data)

Year Ended

March 31, 2021

March 31, 2020

Change

Net sales

$

649,642

$

809,162

(19.7)

%

Cost of products sold

429,417

525,976

(18.4)

%

Gross profit

220,225

283,186

(22.2)

%

Gross profit margin

33.9

%

35.0

%

Selling expenses

76,907

91,054

(15.5)

%

% of net sales

11.8

%

11.3

%

General and administrative expenses

76,035

77,880

(2.4)

%

% of net sales

11.7

%

9.6

%

Research and development expenses

12,405

11,310

9.7

%

% of net sales

1.9

%

1.4

%

Loss on sales of businesses

-

176

NM

Amortization of intangibles

12,623

12,942

(2.5)

%

Income from operations

42,255

89,824

(53.0)

%

Operating margin

6.5

%

11.1

%

Interest and debt expense

12,081

14,234

(15.1)

%

Investment (income) loss

(1,693)

(891)

90.0

%

Foreign currency exchange (gain) loss

941

(1,514)

NM

Other (income) expense, net

20,850

839

2,385.1

%

Income (loss) before income tax expense (benefit)

10,076

77,156

(86.9)

%

Income tax expense (benefit)

970

17,484

(94.5)

%

Net income

$

9,106

$

59,672

(84.7)

%

Average basic shares outstanding

23,897

23,619

1.2

%

Basic income per share

$

0.38

$

2.53

(85.0)

Average diluted shares outstanding

24,173

23,855

1.3

%

Diluted income per share

$

0.38

$

2.50

(84.8)

Dividends declared per common share

$

0.24

$

0.24

COLUMBUS McKINNON CORPORATIONCondensed Consolidated Income Statements - UNAUDITED(In thousands, except per share and percentage data)

Year Ended

March 31, March 31, Change 2021 2020

Net sales $ 649,642 $ 809,162 (19.7) %

Cost of products sold 429,417 525,976 (18.4) %

Gross profit 220,225 283,186 (22.2) %

Gross profit margin 33.9 % 35.0 %

Selling expenses 76,907 91,054 (15.5) %

% of net sales 11.8 % 11.3 %

General and administrative expenses 76,035 77,880 (2.4) %

% of net sales 11.7 % 9.6 %

Research and development expenses 12,405 11,310 9.7 %

% of net sales 1.9 % 1.4 %

Loss on sales of businesses - 176 NM

Amortization of intangibles 12,623 12,942 (2.5) %

Income from operations 42,255 89,824 (53.0) %

Operating margin 6.5 % 11.1 %

Interest and debt expense 12,081 14,234 (15.1) %

Investment (income) loss (1,693) (891) 90.0 %

Foreign currency exchange (gain) loss 941 (1,514) NM

Other (income) expense, net 20,850 839 2,385.1 %

Income (loss) before income tax 10,076 77,156 (86.9) %expense (benefit)

Income tax expense (benefit) 970 17,484 (94.5) %

Net income $ 9,106 $ 59,672 (84.7) %



Average basic shares outstanding 23,897 23,619 1.2 %

Basic income per share $ 0.38 $ 2.53 (85.0)



Average diluted shares outstanding 24,173 23,855 1.3 %

Diluted income per share $ 0.38 $ 2.50 (84.8)



Dividends declared per common share $ 0.24 $ 0.24

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

March 31, 2021

March 31, 2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

202,127

$

114,450

Trade accounts receivable

105,464

123,743

Inventories

111,488

127,373

Prepaid expenses and other

22,763

17,180

Total current assets

441,842

382,746

Property, plant, and equipment, net

74,753

79,473

Goodwill

331,176

319,679

Other intangibles, net

213,362

217,962

Marketable securities

7,968

7,322

Deferred taxes on income

20,080

26,281

Other assets

61,251

59,809

Total assets

$

1,150,432

$

1,093,272

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade accounts payable

$

68,593

$

57,289

Accrued liabilities

110,816

93,585

Current portion of long-term debt

4,450

4,450

Total current liabilities

183,859

155,324

Term loan and revolving credit facility

244,504

246,856

Other non-current liabilities

191,920

227,507

Total liabilities

620,283

629,687

Shareholders' equity:

Common stock

240

238

Additional paid-in capital

296,093

287,256

Retained earnings

293,802

290,441

Accumulated other comprehensive loss

(59,986)

(114,350)

Total shareholders' equity

530,149

463,585

Total liabilities and shareholders' equity

$

1,150,432

$

1,093,272

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

March 31, 2021 March 31, 2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 202,127 $ 114,450

Trade accounts receivable 105,464 123,743

Inventories 111,488 127,373

Prepaid expenses and other 22,763 17,180

Total current assets 441,842 382,746



Property, plant, and equipment, net 74,753 79,473

Goodwill 331,176 319,679

Other intangibles, net 213,362 217,962

Marketable securities 7,968 7,322

Deferred taxes on income 20,080 26,281

Other assets 61,251 59,809

Total assets $ 1,150,432 $ 1,093,272



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade accounts payable $ 68,593 $ 57,289

Accrued liabilities 110,816 93,585

Current portion of long-term debt 4,450 4,450

Total current liabilities 183,859 155,324



Term loan and revolving credit facility 244,504 246,856

Other non-current liabilities 191,920 227,507

Total liabilities 620,283 629,687



Shareholders' equity:

Common stock 240 238

Additional paid-in capital 296,093 287,256

Retained earnings 293,802 290,441

Accumulated other comprehensive loss (59,986) (114,350)

Total shareholders' equity 530,149 463,585

Total liabilities and shareholders' equity $ 1,150,432 $ 1,093,272

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

Year Ended

March 31, 2021

March 31, 2020

Operating activities:

Net income

$

9,106

$

59,672

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

Depreciation and amortization

28,153

29,126

Deferred income taxes and related valuation allowance

(8,704)

7,364

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

(1,594)

(563)

Stock based compensation

8,022

4,507

Amortization of deferred financing costs

2,646

2,655

Loss on sales of businesses

-

176

Non-cash pension settlement expense

19,038

-

Gain on sale of building

(2,638)

-

Non-cash lease expense

7,447

7,923

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

Trade accounts receivable

21,472

2,899

Inventories

20,659

15,752

Prepaid expenses and other

(5,128)

(3,857)

Other assets

874

724

Trade accounts payable

10,343

8,110

Accrued liabilities

(3,174)

(14,304)

Non-current liabilities

(7,632)

(13,389)

Net cash provided by (used for) operating activities

98,890

106,795

Investing activities:

Proceeds from sales of marketable securities

5,111

5,380

Purchases of marketable securities

(4,945)

(5,747)

Capital expenditures

(12,300)

(9,432)

Proceeds from sale of building, net of transaction costs

5,453

-

Proceeds from insurance reimbursement

100

-

Dividend received from equity method investment

587

-

Proceeds from sale of fixed assets

446

51

Net (payments) proceeds from sales of businesses

-

(214)

Net cash provided by (used for) investing activities

(5,548)

(9,962)

Financing activities:

Proceeds from issuance of common stock

1,973

6,000

Borrowings under line-of-credit agreements

25,000

-

Payments under line-of-credit agreements

(25,000)

-

Repayment of debt

(4,450)

(51,113)

Fees paid for revolver extension

(826)

-

Payment of dividends

(5,733)

(5,670)

Other

(1,153)

(768)

Net cash provided by (used for) financing activities

(10,189)

(51,551)

Effect of exchange rate changes on cash

4,524

(1,925)

Net change in cash and cash equivalents

87,677

43,357

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

114,700

71,343

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

$

202,377

$

114,700

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

Year Ended

March 31, March 31, 2021 2020

Operating activities:

Net income $ 9,106 $ 59,672

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

Depreciation and amortization 28,153 29,126

Deferred income taxes and related valuation (8,704) 7,364 allowance

Net loss (gain) on sale of real estate, (1,594) (563) investments, and other

Stock based compensation 8,022 4,507

Amortization of deferred financing costs 2,646 2,655

Loss on sales of businesses - 176

Non-cash pension settlement expense 19,038 -

Gain on sale of building (2,638) -

Non-cash lease expense 7,447 7,923

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

Trade accounts receivable 21,472 2,899

Inventories 20,659 15,752

Prepaid expenses and other (5,128) (3,857)

Other assets 874 724

Trade accounts payable 10,343 8,110

Accrued liabilities (3,174) (14,304)

Non-current liabilities (7,632) (13,389)

Net cash provided by (used for) operating 98,890 106,795 activities



Investing activities:

Proceeds from sales of marketable securities 5,111 5,380

Purchases of marketable securities (4,945) (5,747)

Capital expenditures (12,300) (9,432)

Proceeds from sale of building, net of transaction 5,453 - costs

Proceeds from insurance reimbursement 100 -

Dividend received from equity method investment 587 -

Proceeds from sale of fixed assets 446 51

Net (payments) proceeds from sales of businesses - (214)

Net cash provided by (used for) investing (5,548) (9,962) activities



Financing activities:

Proceeds from issuance of common stock 1,973 6,000

Borrowings under line-of-credit agreements 25,000 -

Payments under line-of-credit agreements (25,000) -

Repayment of debt (4,450) (51,113)

Fees paid for revolver extension (826) -

Payment of dividends (5,733) (5,670)

Other (1,153) (768)

Net cash provided by (used for) financing (10,189) (51,551) activities



Effect of exchange rate changes on cash 4,524 (1,925)



Net change in cash and cash equivalents 87,677 43,357

Cash, cash equivalents, and restricted cash at 114,700 71,343 beginning of year

Cash, cash equivalents, and restricted cash at end $ 202,377 $ 114,700 of period

COLUMBUS McKINNON CORPORATION

Q4 FY 2021 Sales Bridge

Quarter

Year To Date

($ in millions)

$ Change

% Change

$ Change

% Change

Fiscal 2020 Sales

$

189.5

$

809.2

Volume

(11.1)

(5.8)

%

(177.3)

(21.9)

%

Pricing

1.9

1.0

%

8.6

1.1

%

Foreign currency translation

5.9

3.1

%

9.1

1.1

%

Total change

$

(3.3)

(1.7)

%

$

(159.6)

(19.7)

%

Fiscal 2021 Sales

$

186.2

$

649.6

COLUMBUS McKINNON CORPORATION

Q4 FY 2021 Sales Bridge

Quarter Year To Date

($ in millions) $ Change % Change $ Change % Change

Fiscal 2020 Sales $ 189.5 $ 809.2

Volume (11.1) (5.8) % (177.3) (21.9) %

Pricing 1.9 1.0 % 8.6 1.1 %

Foreign currency translation 5.9 3.1 % 9.1 1.1 %

Total change $ (3.3) (1.7) % $ (159.6) (19.7) %

Fiscal 2021 Sales $ 186.2 $ 649.6

COLUMBUS McKINNON CORPORATION

Q4 FY 2021 Gross Profit Bridge

($ in millions)

Quarter

Year To Date

Fiscal 2020 Gross Profit

$

66.2

$

283.2

Pricing, net of material cost inflation

1.7

8.3

Gain on sale of building

-

2.2

Tariffs

0.1

1.7

Foreign currency translation

2.1

3.4

Product liability

0.3

0.2

Business realignment costs

0.5

0.2

Insurance settlement

-

(0.4)

Factory closures

1.3

0.1

Productivity, net of other cost changes

(4.5)

(15.9)

Sales volume and mix

(3.6)

(62.8)

Total change

$

(2.1)

$

(63.0)

Fiscal 2021 Gross Profit

$

64.1

$

220.2

COLUMBUS McKINNON CORPORATION

Q4 FY 2021 Gross Profit Bridge

($ in millions) Quarter Year To Date

Fiscal 2020 Gross Profit $ 66.2 $ 283.2

Pricing, net of material cost inflation 1.7 8.3

Gain on sale of building - 2.2

Tariffs 0.1 1.7

Foreign currency translation 2.1 3.4

Product liability 0.3 0.2

Business realignment costs 0.5 0.2

Insurance settlement - (0.4)

Factory closures 1.3 0.1

Productivity, net of other cost changes (4.5) (15.9)

Sales volume and mix (3.6) (62.8)

Total change $ (2.1) $ (63.0)

Fiscal 2021 Gross Profit $ 64.1 $ 220.2

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

FY 20

63

63

61

64

251

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



FY 20 63 63 61 64 251

COLUMBUS McKINNON CORPORATION

Additional Data - UNAUDITED

March 31, 2021

December 31, 2020

March 31, 2020

($ in millions)

Backlog

$

171.7

$

152.4

$

131.0

Long-term backlog

Expected to ship beyond 3 months

$

68.0

$

62.1

$

49.1

Long-term backlog as % of total backlog

39.6

%

40.7

%

37.5

%

Trade accounts receivable

Days sales outstanding

51.5

days

51.5

days

59.4

days

Inventory turns per year

(based on cost of products sold)

4.4

turns

3.9

turns

3.9

turns

Days' inventory

83.3

days

93.1

days

94.3

days

Trade accounts payable

Days payables outstanding

58.7

days

46.4

days

48.6

days

Working capital as a % of sales

9.3

%

13.3

%

14.5

%

Net cash provided by (used for) operating activities

$

26.9

$

25.0

$

36.5

Capital expenditures

$

6.4

$

3.1

$

2.7

Free cash flow (1)

$

20.5

$

21.9

$

33.9

Debt to total capitalization percentage

32.0

%

33.4

%

35.2

%

Debt, net of cash, to net total capitalization

8.1

%

11.1

%

22.8

%

(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.

COLUMBUS McKINNON CORPORATION

Additional Data - UNAUDITED

March 31, 2021 December 31, March 31, 2020 2020

($ in millions)

Backlog $ 171.7 $ 152.4 $ 131.0

Long-term backlog

Expected to ship beyond 3 $ 68.0 $ 62.1 $ 49.1 months

Long-term backlog as % of 39.6 % 40.7 % 37.5 %total backlog



Trade accounts receivable

Days sales outstanding 51.5 days 51.5 days 59.4 days



Inventory turns per year

(based on cost of 4.4 turns 3.9 turns 3.9 turnsproducts sold)

Days' inventory 83.3 days 93.1 days 94.3 days



Trade accounts payable

Days payables outstanding 58.7 days 46.4 days 48.6 days



Working capital as a % of 9.3 % 13.3 % 14.5 %sales



Net cash provided by(used for) operating $ 26.9 $ 25.0 $ 36.5 activities

Capital expenditures $ 6.4 $ 3.1 $ 2.7

Free cash flow^ (1) $ 20.5 $ 21.9 $ 33.9



Debt to total 32.0 % 33.4 % 35.2 %capitalization percentage



Debt, net of cash, to net 8.1 % 11.1 % 22.8 %total capitalization

(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.

COLUMBUS McKINNON CORPORATION

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

($ in thousands, except per share data)

Three Months Ended Year Ended March 31, March 31,

2021 2020 2021 2020

GAAP gross profit $ 64,088 $ 66,209 $ 220,225 $ 283,186

Add back (deduct):

Factory closures - 1,349 2,671 2,800

Business realignment costs 264 774 830 1,037

Insurance settlement - (15) - (382)

Gain on sale of building - - (2,189) -

Non-GAAP adjusted gross $ 64,352 $ 68,317 $ 221,537 $ 286,641 profit



Sales $ 186,235 $ 189,486 $ 649,642 $ 809,162

Gross margin - GAAP 34.4 % 34.9 % 33.9 % 35.0 %

Adjusted gross margin - 34.6 % 36.1 % 34.1 % 35.4 %Non-GAAP

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 fromOperations

($ in thousands, except per share data)

Three Months Ended Year Ended March 31, March 31,

2021 2020 2021 2020

GAAP income from operations $ 14,199 $ 16,664 $ 42,255 $ 89,824

Add back (deduct):

Acquisition deal costs 3,951 - 3,951 -

Factory closures 306 1,621 3,778 4,709

Business realignment costs 412 1,755 1,470 2,831

Insurance recovery legal costs - 160 229 585

Loss on sales of businesses - - - 176

Insurance settlement - (15) - (382)

Gain on sale of building - - (2,638) -

Non-GAAP adjusted income from $ 18,868 $ 20,185 $ 49,045 $ 97,743 operations



Sales $ 186,235 $ 189,486 $ 649,642 $ 809,162

Operating margin - GAAP 7.6 % 8.8 % 6.5 % 11.1 %

Adjusted operating margin - 10.1 % 10.7 % 7.5 % 12.1 %Non-GAAP

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 Year Ended March 31, March 31,

2021 2020 2021 2020

GAAP net income $ 9,585 $ 9,244 $ 9,106 $ 59,672

Add back (deduct):

Non-cash pension settlement - - 19,046 - expense

Acquisition deal costs 3,951 - 3,951 -

Factory closures 306 1,621 3,778 4,709

Business realignment costs 412 1,755 1,470 2,831

Insurance recovery legal costs - 160 229 585

Loss on sales of businesses - - - 176

Insurance settlement - (15) - (382)

Gain on sale of building - - (2,638) -

Normalize tax rate to 22%^ (1) (2,074) 1,050 (6,931) (1,232)

Non-GAAP adjusted net income $ 12,180 $ 13,815 $ 28,011 $ 66,359



Average diluted shares 24,384 23,938 24,173 23,855 outstanding



Diluted income per share - GAAP $ 0.39 $ 0.39 $ 0.38 $ 2.50



Diluted income per share - $ 0.50 $ 0.58 $ 1.16 $ 2.78 Non-GAAP

(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 and at 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 to the measures as 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.

COLUMBUS McKINNON CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA

($ in thousands)

Three Months Ended Year Ended March 31, March 31,

2021 2020 2021 2020

GAAP net income $ 9,585 $ 9,244 $ 9,106 $ 59,672

Add back (deduct):

Income tax expense (benefit) 1,362 4,947 970 17,484

Interest and debt expense 2,889 3,200 12,081 14,234

Investment (income) loss (264) 48 (1,693) (891)

Foreign currency exchange (142) (996) 941 (1,514) (gain) loss

Other (income) expense, net 769 221 20,850 839

Depreciation and amortization 6,950 7,135 28,153 29,126 expense

Acquisition deal costs 3,951 - 3,951 -

Factory closures 306 1,621 3,778 4,709

Business realignment costs 412 1,755 1,470 2,831

Insurance recovery legal - 160 229 585 costs

Loss on sales of businesses - - - 176

Insurance settlement - (15) - (382)

Gain on sale of building - - (2,638) -

Non-GAAP adjusted EBITDA $ 25,818 $ 27,320 $ 77,198 $ 126,869



Sales $ 186,235 $ 189,486 $ 649,642 $ 809,162

Net income margin - GAAP 5.1 % 4.9 % 1.4 % 7.4 %

Adjusted EBITDA margin - 13.9 % 14.4 % 11.9 % 15.7 %Non-GAAP

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.

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

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