Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
BUFFALO, NY, October 28, 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 2022 second quarter, which ended September 30, 2021. Results include the addition of Dorner Manufacturing Corporation, which was acquired on April 7, 2021.
Second Quarter Highlights (compared with prior year period)
•42% revenue growth driven by strong volume, contribution of acquisition and strategic pricing
•CMBS enables continued margin expansion resulting in record gross margin of 36.3%, up 80 basis points; record adjusted gross margin of 36.7% expanded 230 basis points
•Strategic pricing more than offset material cost inflation pressure
•Achieved net income of $15.2 million, or $0.53 per diluted share; adjusted earnings per diluted share was $0.74
•Adjusted EBITDA was $36.0 million, or 16.1% of revenue up 270 basis points
•Generated $25.3 million in cash from operations or $22.2 million in free cash flow1
David Wilson, President and CEO of Columbus McKinnon, commented, “Demand for our products remains strong as we execute our Blueprint for Growth 2.0 strategy. Our team has worked tirelessly to address supply chain challenges with agility and has overcome the impacts of rapid inflation with additional price increases. We believe the Columbus McKinnon Business System (“CMBS”), which provides the framework to scale the organization, is becoming more robust and enabling improved results. Also of note, the Dorner acquisition has provided a foundation to evolve our business model into higher growth, less cyclical industries as we continue to expand in the Life Sciences, E-Commerce and Consumer Packaging markets. We expect to leverage this platform to further transform our Company into a high value, intelligent motion enterprise.”
1 Free cash flow is a non-GAAP measure defined as cash from operations less capital expenditures. See the accompanying discussion and reconciliation found in the Additional Data table in this release.
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 2 of 13
October 28, 2021
Second Quarter Fiscal 2022 Sales
($ in millions)
Q2 FY 22
Q2 FY 21
Change
% Change
Net sales
$
223.6
$
157.8
$
65.8
41.7
%
U.S. sales
$
130.7
$
84.7
$
46.0
54.3
%
% of total
58
%
54
%
Non-U.S. sales
$
92.9
$
73.1
$
19.8
27.1
%
% of total
42
%
46
%
For the quarter, sales increased $65.8 million, or 41.7%. The Dorner acquisition added $33.5 million in sales. In the U.S., volume improved $16.7 million, or 19.7%, and price improved $2.0 million, or 2.4%. U.S. sales related to the acquisition were $27.3 million. Outside the U.S., volume improved $9.7 million, or 13.3%, and price improved $2.0 million, or 2.7%. The Dorner acquisition added $6.3 million of sales outside the U.S. Foreign currency translation was favorable $1.9 million, or 1.2% of total sales.
Second Quarter Fiscal 2022 Operating Results
($ in millions)
Q2 FY 22
Q2 FY 21
Change
% Change
Gross profit
$
81.1
$
56.0
$
25.1
44.8
%
Gross margin
36.3
%
35.5
%
80 bps
Income from operations
$
23.7
$
15.8
$
7.8
49.6
%
Operating margin
10.6
%
10.0
%
60 bps
Adjusted income from operations*
$
25.5
$
14.0
$
11.5
81.9
%
Adjusted operating margin*
11.4
%
8.9
%
250 bps
Net income (loss)
$
15.2
$
(4.1)
$
19.3
NM
Net income (loss) margin
6.8
%
(2.6)
%
940 bps
Diluted EPS
$
0.53
$
(0.17)
$
0.70
NM
Adjusted EPS*
$
0.74
$
0.44
$
0.30
68.2
%
Adjusted EBITDA*
$
36.0
$
21.1
$
14.8
70.2
%
Adjusted EBITDA margin*
16.1
%
13.4
%
270 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.
Dorner added $3.4 million in adjusted operating income. Adjusted earnings per diluted share was $0.74 in the fiscal 2022 second quarter compared with $0.44 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.
Third Quarter Fiscal 2022 Outlook
Columbus McKinnon expects third quarter fiscal 2022 sales of approximately $215 million at current exchange rates. This outlook includes the expectation that supply chain constraints continue and reflects typical seasonality, given holidays and fewer shipping days.
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 3 of 13
October 28, 2021
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 13723730. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, November 4. 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 moves the world forward and improves 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.
Contacts:
Gregory P. Rustowicz
Investor Relations:
Vice President - Finance and Chief Financial Officer
Deborah K. Pawlowski
Columbus McKinnon Corporation
Kei Advisors LLC
716-689-5442
716-843-3908
greg.rustowicz@cmworks.com
dpawlowski@keiadvisors.com
Financial tables follow.
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 4 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Three Months Ended
September 30, 2021
September 30, 2020
Change
Net sales
$
223,635
$
157,790
41.7
%
Cost of products sold
142,500
101,765
40.0
%
Gross profit
81,135
56,025
44.8
%
Gross profit margin
36.3
%
35.5
%
Selling expenses
24,157
18,563
30.1
%
% of net sales
10.8
%
11.8
%
General and administrative expenses
23,208
15,554
49.2
%
% of net sales
10.4
%
9.9
%
Research and development expenses
3,825
2,896
32.1
%
% of net sales
1.7
%
1.8
%
Amortization of intangibles
6,285
3,192
96.9
%
Income from operations
23,660
15,820
49.6
%
Operating margin
10.6
%
10.0
%
Interest and debt expense
4,587
3,018
52.0
%
Investment (income) loss
(115)
(357)
(67.8)
%
Foreign currency exchange (gain) loss
441
397
11.1
%
Other (income) expense, net
(539)
16,911
NM
Income (loss) before income tax expense (benefit)
19,286
(4,149)
NM
Income tax expense (benefit)
4,083
(45)
NM
Net income (loss)
$
15,203
$
(4,104)
NM
Average basic shares outstanding
28,418
23,883
19.0
%
Basic income (loss) per share
$
0.53
$
(0.17)
NM
Average diluted shares outstanding
28,756
23,883
20.4
%
Diluted income (loss) per share
$
0.53
$
(0.17)
NM
Dividends declared per common share
$
0.06
$
0.06
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 5 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Six Months Ended
September 30, 2021
September 30, 2020
Change
Net sales
$
437,099
$
296,860
47.2
%
Cost of products sold
281,901
196,038
43.8
%
Gross profit
155,198
100,822
53.9
%
Gross profit margin
35.5
%
34.0
%
Selling expenses
47,639
37,258
27.9
%
% of net sales
10.9
%
12.6
%
General and administrative expenses
53,351
33,983
57.0
%
% of net sales
12.2
%
11.4
%
Research and development expenses
7,408
5,665
30.8
%
% of net sales
1.7
%
1.9
%
Amortization of intangibles
12,394
6,307
96.5
%
Income from operations
34,406
17,609
95.4
%
Operating margin
7.9
%
5.9
%
Interest and debt expense
10,399
6,206
67.6
%
Cost of debt refinancing
14,803
—
NM
Investment (income) loss
(548)
(934)
(41.3)
%
Foreign currency exchange (gain) loss
535
481
11.2
%
Other (income) expense, net
(289)
19,937
NM
Income (loss) before income tax expense (benefit)
9,506
(8,081)
NM
Income tax expense (benefit)
1,566
(1,008)
NM
Net income (loss)
$
7,940
$
(7,073)
NM
Average basic shares outstanding
27,594
23,843
15.7
%
Basic income (loss) per share
$
0.29
$
(0.30)
NM
Average diluted shares outstanding
27,957
23,843
17.3
%
Diluted income (loss) per share
$
0.28
$
(0.30)
NM
Dividends declared per common share
$
0.06
$
0.06
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 6 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
September 30, 2021
March 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
105,311
$
202,127
Trade accounts receivable
125,451
105,464
Inventories
147,925
111,488
Prepaid expenses and other
28,926
22,763
Total current assets
407,613
441,842
Property, plant, and equipment, net
97,117
74,753
Goodwill
615,329
331,176
Other intangibles, net
392,700
213,362
Marketable securities
10,072
7,968
Deferred taxes on income
1,960
20,080
Other assets
61,184
61,251
Total assets
$
1,585,975
$
1,150,432
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable
$
71,458
$
68,593
Accrued liabilities
104,924
110,816
Current portion of long-term debt and finance lease obligations
60,515
4,450
Total current liabilities
236,897
183,859
Term loan and finance lease obligations
392,728
244,504
Other non-current liabilities
221,192
191,920
Total liabilities
850,817
620,283
Shareholders’ equity:
Common stock
284
240
Additional paid-in capital
499,758
296,093
Retained earnings
300,036
293,802
Accumulated other comprehensive loss
(64,920)
(59,986)
Total shareholders’ equity
735,158
530,149
Total liabilities and shareholders’ equity
$
1,585,975
$
1,150,432
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 7 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
Six Months Ended
September 30, 2021
September 30, 2020
Operating activities:
Net income (loss)
$
7,940
$
(7,073)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization
20,969
14,210
Deferred income taxes and related valuation allowance
(1,235)
(6,745)
Net loss (gain) on sale of real estate, investments, and other
(462)
(557)
Stock based compensation
5,504
3,989
Amortization of deferred financing costs
867
1,327
Cost of debt refinancing
14,803
—
Loss (gain) on hedging instruments
672
—
Non-cash pension settlement expense
—
19,046
Gain on sale of building
(375)
(2,638)
Non-cash lease expense
3,939
3,785
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures:
Trade accounts receivable
(1,709)
33,594
Inventories
(21,959)
18,987
Prepaid expenses and other
(2,779)
(1,627)
Other assets
42
570
Trade accounts payable
(6,274)
(20,078)
Accrued liabilities
1,908
(7,895)
Non-current liabilities
(3,909)
(1,952)
Net cash provided by (used for) operating activities
17,942
46,943
Investing activities:
Proceeds from sales of marketable securities
2,734
1,034
Purchases of marketable securities
(4,768)
(1,759)
Capital expenditures
(6,752)
(2,779)
Proceeds from sale of building, net of transaction costs
461
5,453
Proceeds from insurance reimbursement
482
—
Purchase of business, net of cash acquired
(472,954)
—
Dividend received from equity method investment
—
587
Net cash provided by (used for) investing activities
(480,797)
2,536
Financing activities:
Proceeds from issuance of common stock
1,412
429
Borrowings under line-of-credit agreements
—
25,000
Repayment of debt
(461,286)
(2,225)
Proceeds from issuance of long-term debt
650,000
—
Proceeds from equity offering
207,000
—
Fees related to debt and equity offering
(25,292)
(826)
Cash inflows from hedging activities
7,007
—
Cash outflows from hedging activities
(6,927)
—
Payment of dividends
(3,145)
(2,860)
Other
(1,909)
(982)
Net cash provided by (used for) financing activities
366,860
18,536
Effect of exchange rate changes on cash
(821)
4,091
Net change in cash and cash equivalents
(96,816)
72,106
Cash, cash equivalents, and restricted cash at beginning of year
202,377
114,700
Cash, cash equivalents, and restricted cash at end of period
$
105,561
$
186,806
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 8 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Q2 FY 2022 Sales Bridge
Quarter
Year To Date
($ in millions)
$ Change
% Change
$ Change
% Change
Fiscal 2021 Sales
$
157.8
$
296.9
Acquisitions
33.5
21.3
%
67.7
22.8
%
Volume
26.4
16.7
%
57.7
19.4
%
Pricing
4.0
2.5
%
6.0
2.0
%
Foreign currency translation
1.9
1.2
%
8.8
3.0
%
Total change
$
65.8
41.7
%
$
140.2
47.2
%
Fiscal 2022 Sales
$
223.6
$
437.1
COLUMBUS McKINNON CORPORATION
Q2 FY 2022 Gross Profit Bridge
($ in millions)
Quarter
Year To Date
Fiscal 2021 Gross Profit
$
56.0
$
100.8
Acquisition
13.3
27.3
Sales volume and mix
8.2
19.9
Productivity, net of other cost changes
5.5
8.2
Foreign currency translation
0.6
3.0
Prior year factory closure costs
0.5
2.4
Pricing, net of material cost inflation
0.9
1.6
Prior year business realignment costs
—
0.3
Acquisition integration costs
—
(0.5)
Business realignment costs
(0.9)
(0.9)
Tariffs
(0.8)
(1.7)
Prior year gain on sale of building
(2.2)
(2.2)
Acquisition inventory step-up expense
—
(3.0)
Total change
25.1
54.4
Fiscal 2022 Gross Profit
$
81.1
$
155.2
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
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 9 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
September 30, 2021
June 30, 2021
March 31, 2021
September 30, 2020
($ in millions)
Backlog
$
255.6
$
247.4
$
171.7
$
146.6
Long-term backlog
Expected to ship beyond 3 months
$
110.5
$
107.3
$
68.0
$
60.8
Long-term backlog as % of total backlog
43.2
%
43.4
%
39.6
%
41.5
%
Trade accounts receivable
Days sales outstanding
51.0
days
52.5
days
51.5
days
53.4
days
Inventory turns per year
(based on cost of products sold)
3.9
turns
4.0
turns
4.4
turns
3.6
turns
Days' inventory
94.7
days
90.8
days
83.3
days
100.5
days
Trade accounts payable
Days payables outstanding
54.3
days
52.4
days
58.7
days
41.0
days
Working capital as a % of sales
14.4
%
12.5
%
9.3
%
14.1
%
Net cash provided by (used for) operating activities
$
25.3
$
(7.4)
$
26.9
$
37.4
Capital expenditures
$
3.1
$
3.6
$
6.4
$
1.7
Free cash flow (1)
$
22.2
$
(11.0)
$
20.5
$
35.7
Debt to total capitalization percentage
38.1
%
38.8
%
32.0
%
36.4
%
Debt, net of cash, to net total capitalization
32.1
%
33.8
%
8.1
%
15.6
%
(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 Reports Financial Results for Second Quarter Fiscal Year 2022
Page 10 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
Three Months Ended September 30,
Six Months Ended September 30,
2021
2020
2021
2020
GAAP gross profit
$
81,135
$
56,025
$
155,198
$
100,822
Add back (deduct):
Acquisition inventory step-up expense
—
—
2,981
—
Business realignment costs
914
—
914
329
Acquisition integration costs
—
—
521
—
Factory closures
—
493
—
2,421
Gain on sale of building
—
(2,189)
—
(2,189)
Non-GAAP adjusted gross profit
$
82,049
$
54,329
$
159,614
$
101,383
Sales
$
223,635
$
157,790
$
437,099
$
296,860
Gross margin - GAAP
36.3
%
35.5
%
35.5
%
34.0
%
Adjusted gross margin - Non-GAAP
36.7
%
34.4
%
36.5
%
34.2
%
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 Reports Financial Results for Second Quarter Fiscal Year 2022
Page 11 of 13
October 28, 2021
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 September 30,
Six Months Ended September 30,
2021
2020
2021
2020
GAAP income from operations
$
23,660
$
15,820
$
34,406
$
17,609
Add back (deduct):
Acquisition deal and integration costs
632
—
9,874
—
Acquisition inventory step-up expense
—
—
2,981
—
Business realignment costs
1,200
—
1,823
821
Factory closures
—
747
—
3,003
Insurance recovery legal costs
—
88
—
229
Gain on sale of building
—
(2,638)
—
(2,638)
Non-GAAP adjusted income from operations
$
25,492
$
14,017
$
49,084
$
19,024
Sales
$
223,635
$
157,790
$
437,099
$
296,860
Operating margin - GAAP
10.6
%
10.0
%
7.9
%
5.9
%
Adjusted operating margin - Non-GAAP
11.4
%
8.9
%
11.2
%
6.4
%
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 Reports Financial Results for Second Quarter Fiscal Year 2022
Page 12 of 13
October 28, 2021
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 September 30,
Six Months Ended September 30,
2021
2020
2021
2020
GAAP net income (loss)
$
15,203
$
(4,104)
$
7,940
$
(7,073)
Add back (deduct):
Amortization of intangibles
6,285
3,192
12,394
6,307
Cost of debt refinancing
—
—
14,803
—
Acquisition deal and integration costs
632
—
9,874
—
Acquisition inventory step-up expense
—
—
2,981
—
Business realignment costs
1,200
—
1,823
821
Non-cash pension settlement expense
—
16,324
—
19,046
Factory closures
—
747
—
3,003
Insurance recovery legal costs
—
88
—
229
Gain on sale of building
—
(2,638)
—
(2,638)
Normalize tax rate to 22% (1)
(1,946)
(3,029)
(9,738)
(5,119)
Non-GAAP adjusted net income
$
21,374
$
10,580
$
40,077
$
14,576
Average diluted shares outstanding
28,756
24,123
27,957
24,030
Diluted income (loss) per share - GAAP
$
0.53
$
(0.17)
$
0.28
$
(0.30)
Diluted income per share - Non-GAAP
$
0.74
$
0.44
$
1.43
$
0.61
(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 Reports Financial Results for Second Quarter Fiscal Year 2022
Page 13 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
Three Months Ended September 30,
Six Months Ended September 30,
2021
2020
2021
2020
GAAP net income (loss)
$
15,203
$
(4,104)
$
7,940
$
(7,073)
Add back (deduct):
Income tax expense (benefit)
4,083
(45)
1,566
(1,008)
Interest and debt expense
4,587
3,018
10,399
6,206
Investment (income) loss
(115)
(357)
(548)
(934)
Foreign currency exchange (gain) loss
441
397
535
481
Other (income) expense, net
(539)
16,911
(289)
19,937
Depreciation and amortization expense
10,502
7,129
20,969
14,210
Cost of debt refinancing
—
—
14,803
—
Acquisition deal and integration costs
632
—
9,874
—
Acquisition inventory step-up expense
—
—
2,981
—
Business realignment costs
1,200
—
1,823
821
Factory closures
—
747
—
3,003
Insurance recovery legal costs
—
88
—
229
Gain on sale of building
—
(2,638)
—
(2,638)
Non-GAAP adjusted EBITDA
$
35,994
$
21,146
$
70,053
$
33,234
Sales
$
223,635
$
157,790
$
437,099
$
296,860
Net income (loss) margin - GAAP
6.8
%
(2.6)
%
1.8
%
(2.4)
%
Adjusted EBITDA margin - Non-GAAP
16.1
%
13.4
%
16.0
%
11.2
%
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.
