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Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022

Published: 2022-05-25 10:55:00 ET

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 fourth quarter, which ended March 31, 2022. Results include the additions of Dorner Manufacturing Corporation and Garvey Corporation, which were acquired on April 7, 2021, and December 1, 2021, respectively.

Fourth Quarter and Fiscal Year 2022 Highlights (compared with prior-year periods)

Achieved record sales in the quarter with better than expected revenue growth of $67.1 million driven by strong demand in all markets; organic growth was 17% and acquisitions contributed $40.5 million
Record quarterly orders of $269.8 million; ended year with record backlog of $309.1 million
Net income in the quarter grew 23% to $11.8 million; adjusted EBITDA* expanded 52% to $39.3 million, or 15.4% of revenue
Fiscal year 2022 revenue grew 40% to a record $906.6 million and net income more than tripled to $29.7 million, or $1.04 per diluted share; achieved adjusted EPS* of $2.83
Significantly transformed business in fiscal 2022 with addition of precision conveying platform, which contributed $144.6 million in sales for the year
Continued to demonstrate strong cash generation capabilities with $25.2 million in cash from operations in the quarter and $48.9 million for the fiscal year

David Wilson, President and CEO of Columbus McKinnon, commented, “We delivered exceptional growth as demand for our intelligent motion solutions strengthened throughout the quarter across our end markets. We outpaced our internal growth expectations with innovation, the acceleration of our growth initiatives, and the expansion of our precision conveying platform. In fact, we achieved record sales for both the quarter and the fiscal year.”

He added, “We are being deliberate, flexible and creative as we address the persistent macro challenges that the industrial world is facing. While we were successful in outpacing raw material inflation in the quarter and for the fiscal year, gross margin this quarter was heavily impacted by rising freight costs. We are being diligent about addressing inflationary pressures while executing to deliver on growing demand.”

*Adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS are non-GAAP measures. See accompanying discussion and reconciliation tables in this release regarding the reconciliation of GAAP financials to non-GAAP measures.

Fourth Quarter Fiscal 2022 Sales


($ in millions)	Q4 FY 22			Q4 FY 21			Change		% Change
Net sales	$	253.4		$	186.2		$	67.1	36.0	%
U.S. sales	$	149.0		$	94.8		$	54.2	57.2	%
% of total		59	%		51	%
Non-U.S. sales	$	104.4		$	91.4		$	13.0	14.2	%
% of total		41	%		49	%

For the quarter, sales increased $67.1 million, or 36.0%. Acquisitions added $40.5 million in sales, while foreign currency translation had an unfavorable foreign currency translation of $5.0 million, or 2.7% of total sales. In the U.S., volume improved $15.1 million, or 15.9%, and price improved $4.4 million, or 4.7%. U.S. sales related to acquisitions were $34.6 million. Outside the U.S., volume improved $8.1 million, or 8.9%, and price improved $3.9 million, or 4.3%. Acquisitions added $5.9 million of sales outside the U.S.

Fourth Quarter Fiscal 2022 Operating Results


($ in millions)	Q4 FY 22			Q4 FY 21			Change		% Change
Gross profit	$	85.5		$	64.1		$	21.4	33.4	%
Gross margin		33.7	%		34.4	%	(70) bps
Adjusted gross profit*	$	88.7		$	64.4		$	24.3	37.8	%
Adjusted gross margin*		34.8	%		34.6	%	20 bps
Income from operations	$	24.1		$	14.2		$	9.9	69.4	%
Operating margin		9.5	%		7.6	%	190 bps
Adjusted income from operations*	$	28.6		$	18.9		$	9.7	51.6	%
Adjusted operating margin*		11.2	%		10.1	%	110 bps
Net income (loss)	$	11.8		$	9.6		$	2.2	23.4	%
Net income (loss) margin		4.7	%		5.1	%	(40) bps
Diluted EPS	$	0.41		$	0.39		$	0.02	5.1	%
Adjusted EPS*	$	0.79		$	0.60		$	0.19	31.7	%
Adjusted EBITDA*	$	39.3		$	25.8		$	13.5	52.1	%
Adjusted EBITDA margin*		15.4	%		13.9	%	150 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.

Acquisitions added $6.0 million in adjusted operating income. Gross margin for the quarter was dampened by higher inbound freight costs that were incurred to ensure customer requirements were met. Adjusted earnings per diluted share were $0.79 in the fiscal 2022 fourth quarter compared with $0.60 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 2023 Outlook Columbus McKinnon expects first quarter fiscal 2023 sales of approximately $220 million to $230 million at current exchange rates which year-over-year has an $8 million to $9 million negative impact. Mr. Wilson concluded, “We expect fiscal 2023 to be another great year for Columbus McKinnon. We are transforming the Company into a faster growing, higher margin business that serves secular-driven markets with strong tailwinds. We are heavily focused on execution and remain confident that we are creating a better business model with stronger earnings power.”

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 13728806. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Wednesday, June 1, 2022. 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 McKinnonColumbus 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
	March 31, 2022			March 31, 2021			Change
Net sales	$	253,368		$	186,235		36.0	%
Cost of products sold		167,893			122,147		37.5	%
Gross profit		85,475			64,088		33.4	%
Gross profit margin		33.7	%		34.4	%
Selling expenses		27,080			20,820		30.1	%
% of net sales		10.7	%		11.2	%
General and administrative expenses		23,633			22,193		6.5	%
% of net sales		9.3	%		11.9	%
Research and development expenses		4,068			3,702		9.9	%
% of net sales		1.6	%		2.0	%
Amortization of intangibles		6,635			3,174		109.0	%
Income from operations		24,059			14,199		69.4	%
Operating margin		9.5	%		7.6	%
Interest and debt expense		5,352			2,889		85.3	%
Investment (income) loss		578			(264	)	NM
Foreign currency exchange (gain) loss		527			(142	)	NM
Other (income) expense, net		(378	)		769		NM
Income (loss) before income tax expense (benefit)		17,980			10,947		64.2	%
Income tax expense (benefit)		6,154			1,362		351.8	%
Net income (loss)	$	11,826		$	9,585		23.4	%

Average basic shares outstanding		28,507			23,977		18.9	%
Basic income (loss) per share	$	0.41		$	0.40		2.5	%

Average diluted shares outstanding		28,845			24,384		18.3	%
Diluted income (loss) per share	$	0.41		$	0.39		5.1	%

Dividends declared per common share	$	0.13		$	0.12

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


	Year Ended
	March 31, 2022			March 31, 2021			Change
Net sales	$	906,555		$	649,642		39.5	%
Cost of products sold		590,825			429,417		37.6	%
Gross profit		315,730			220,225		43.4	%
Gross profit margin		34.8	%		33.9	%
Selling expenses		99,187			76,907		29.0	%
% of net sales		10.9	%		11.8	%
General and administrative expenses		102,128			76,035		34.3	%
% of net sales		11.3	%		11.7	%
Research and development expenses		15,351			12,405		23.7	%
% of net sales		1.7	%		1.9	%
Amortization of intangibles		25,283			12,623		100.3	%
Income from operations		73,781			42,255		74.6	%
Operating margin		8.1	%		6.5	%
Interest and debt expense		20,126			12,081		66.6	%
Cost of debt refinancing		14,803			—		NM
Investment (income) loss		(46	)		(1,693	)	(97.3	) %
Foreign currency exchange (gain) loss		1,574			941		67.3	%
Other (income) expense, net		(1,122	)		20,850		NM
Income (loss) before income tax expense (benefit)		38,446			10,076		281.6	%
Income tax expense (benefit)		8,786			970		805.8	%
Net income (loss)	$	29,660		$	9,106		225.7	%

Average basic shares outstanding		28,040			23,897		17.3	%
Basic income (loss) per share	$	1.06		$	0.38		178.9	%

Average diluted shares outstanding		28,401			24,173		17.5	%
Diluted income (loss) per share	$	1.04		$	0.38		173.7	%

Dividends declared per common share	$	0.25		$	0.24

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)


	March 31, 2022			March 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	115,390		$	202,127
Trade accounts receivable		147,515			105,464
Inventories		172,139			111,488
Prepaid expenses and other		31,545			22,763
Total current assets		466,589			441,842

Property, plant, and equipment, net		97,926			74,753
Goodwill		648,849			331,176
Other intangibles, net		390,788			213,362
Marketable securities		10,294			7,968
Deferred taxes on income		2,313			20,080
Other assets		68,948			61,251
Total assets	$	1,685,707		$	1,150,432

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	90,881		$	68,593
Accrued liabilities		118,187			110,816
Current portion of long-term debt and finance lease obligations		40,551			4,450
Total current liabilities		249,619			183,859

Term loan and finance lease obligations		470,675			244,504
Other non-current liabilities		192,610			191,920
Total liabilities		912,904			620,283

Shareholders’ equity:
Common stock		285			240
Additional paid-in capital		506,074			296,093
Retained earnings		316,343			293,802
Accumulated other comprehensive loss		(49,899	)		(59,986	)
Total shareholders’ equity		772,803			530,149
Total liabilities and shareholders’ equity	$	1,685,707		$	1,150,432

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)


	Year Ended
	March 31, 2022			March 31, 2021
Operating activities:
Net income (loss)	$	29,660		$	9,106
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		41,924			28,153
Deferred income taxes and related valuation allowance		(1,969	)		(8,704	)
Net loss (gain) on sale of real estate, investments, and other		136			(1,594	)
Stock based compensation		11,246			8,022
Amortization of deferred financing costs		1,703			2,646
Cost of debt refinancing		14,803			—
Loss (gain) on hedging instruments		853			—
Non-cash pension settlement expense		—			19,038
Gain on sale of building		(375	)		(2,638	)
Non-cash lease expense		7,945			7,447
Changes in operating assets and liabilities, net of effects of business acquisitions:
Trade accounts receivable		(18,988	)		21,472
Inventories		(40,201	)		20,659
Prepaid expenses and other		(47	)		(5,128	)
Other assets		25			874
Trade accounts payable		12,681			10,343
Accrued liabilities		696			(3,174	)
Non-current liabilities		(11,211	)		(7,632	)
Net cash provided by (used for) operating activities		48,881			98,890

Investing activities:
Proceeds from sales of marketable securities		4,434			5,111
Purchases of marketable securities		(7,130	)		(4,945	)
Capital expenditures		(13,104	)		(12,300	)
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		(554,311	)		(5,548	)

Financing activities:
Proceeds from issuance of common stock		2,655			1,973
Borrowings under line-of-credit agreements		—			25,000
Payments under line-of-credit agreements		—			(25,000	)
Repayment of debt		(477,846	)		(4,450	)
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		19,417			—
Cash outflows from hedging activities		(20,206	)		—
Fees paid for revolver extension		—			(826	)
Payment of dividends		(6,562	)		(5,733	)
Other		(2,574	)		(1,153	)
Net cash provided by (used for) financing activities		420,700			(10,189	)

Effect of exchange rate changes on cash		(2,007	)		4,524

Net change in cash and cash equivalents		(86,737	)		87,677
Cash, cash equivalents, and restricted cash at beginning of year		202,377			114,700
Cash, cash equivalents, and restricted cash at end of period	$	115,640		$	202,377

COLUMBUS McKINNON CORPORATION
Q4 FY 2022 Sales Bridge


	Quarter					Year To Date
($ in millions)	$ Change			% Change		$ Change		% Change
Fiscal 2021 Sales	$	186.2				$	649.6
Acquisitions		40.5		21.7	%		144.6	22.3	%
Volume		23.3		12.5	%		90.0	13.7	%
Pricing		8.4		4.5	%		20.0	3.1	%
Foreign currency translation		(5.0	)	(2.7	) %		2.4	0.4	%
Total change	$	67.2		36.0	%	$	257.0	39.5	%
Fiscal 2022 Sales	$	253.4				$	906.6

COLUMBUS McKINNON CORPORATION
Q4 FY 2022 Gross Profit Bridge


($ in millions)	Quarter			Year To Date
Fiscal 2021 Gross Profit	$	64.1		$	220.2
Acquisitions		17.3			61.3
Sales volume and mix		7.6			30.7
Productivity, net of other cost changes		(1.3	)		10.4
Price, net of material cost inflation		3.0			6.0
Prior year factory closure costs		—			2.7
Foreign currency translation		(1.8	)		0.6
Acquisition integration costs		—			(0.5	)
Business realignment costs		0.3			(0.8	)
Acquisition amortization of backlog		(1.7	)		(2.1	)
Prior year gain on sale of building		—			(2.2	)
Tariffs		(0.5	)		(2.6	)
Product liability		—			(3.0	)
Acquisition inventory step-up expense		(1.5	)		(5.0	)
Total change		21.4			95.5
Fiscal 2022 Gross Profit	$	85.5		$	315.7

U.S. Shipping Days by Quarter


	Q1	Q2	Q3	Q4	Total
FY 23	63	64	60	63	250

FY 22	63	64	61	63	251

FY 21	63	64	61	63	251

COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED


	March 31, 2022			December 31, 2021			March 31, 2021
($ in millions)
Backlog	$	309.1		$	294.7		$	171.7
Long-term backlog
Expected to ship beyond 3 months	$	135.2		$	116.3		$	68.0
Long-term backlog as % of total backlog		43.7	%		39.5	%		39.6	%

Trade accounts receivable
Days sales outstanding		53.0	days		50.6	days		51.5	days

Inventory turns per year
(based on cost of products sold)		3.9	turns		3.3	turns		4.4	turns
Days' inventory		93.6	days		111.4	days		83.3	days

Trade accounts payable
Days payables outstanding		58.7	days		56.9	days		58.7	days

Working capital as a % of sales (2)		15.5	%		15.2	%		9.3	%

Net cash provided by (used for) operating activities	$	25.2		$	5.8		$	26.9
Capital expenditures	$	3.6		$	2.8		$	6.4
Free cash flow (1)	$	21.6		$	3.0		$	20.5

Debt to total capitalization percentage		39.8	%		41.1	%		32.0	%

Debt, net of cash, to net total capitalization		33.9	%		35.7	%		8.1	%

(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.

(2)

March 31, 2022 figure excludes the impact of the acquisition of Garvey. December 31, 2021 figure excludes the impacts of

the acquisitions of Dorner and 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,
		2022			2021			2022			2021
GAAP gross profit	$	85,475		$	64,088		$	315,730		$	220,225
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		—			264			1,606			830
Acquisition integration costs		—			—			521			—
Factory closures		—			—			—			2,671
Gain on sale of building		—			—			—			(2,189	)
Non-GAAP adjusted gross profit	$	88,671		$	64,352		$	327,849		$	221,537

Sales	$	253,368		$	186,235		$	906,555		$	649,642
Add back:
Acquisition amortization of backlog		1,650			—			2,100			—
Non-GAAP sales	$	255,018		$	186,235		$	908,655		$	649,642

Gross margin - GAAP		33.7	%		34.4	%		34.8	%		33.9	%
Adjusted gross margin - Non-GAAP		34.8	%		34.6	%		36.1	%		34.1	%

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,
		2022			2021			2022			2021
GAAP income from operations	$	24,059		$	14,199		$	73,781		$	42,255
Add back (deduct):
Acquisition deal and integration costs		229			3,951			10,473			3,951
Acquisition inventory step-up expense		1,546			—			5,042			—
Business realignment costs		1,115			412			3,902			1,470
Product liability settlement		—			—			2,850			—
Acquisition amortization of backlog		1,650			—			2,100			—
Factory closures		—			306			—			3,778
Insurance recovery legal costs		—			—			—			229
Gain on sale of building		—			—			—			(2,638	)
Non-GAAP adjusted income from operations	$	28,599		$	18,868		$	98,148		$	49,045

Sales	$	253,368		$	186,235		$	906,555		$	649,642
Add back:
Acquisition amortization of backlog		1,650			—			2,100			—
Non-GAAP sales	$	255,018		$	186,235		$	908,655		$	649,642

Operating margin - GAAP		9.5	%		7.6	%		8.1	%		6.5	%
Adjusted operating margin - Non-GAAP		11.2	%		10.1	%		10.8	%		7.5	%

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 March 31,						Year Ended March 31,
		2022			2021			2022			2021
GAAP net income (loss)	$	11,826		$	9,585		$	29,660		$	9,106
Add back (deduct):
Amortization of intangibles		6,635			3,174			25,283			12,623
Cost of debt refinancing		—			—			14,803			—
Acquisition deal and integration costs		229			3,951			10,473			3,951
Acquisition inventory step-up expense		1,546			—			5,042			—
Business realignment costs		1,115			412			3,902			1,470
Product liability settlement		—			—			2,850			—
Acquisition amortization of backlog		1,650			—			2,100			—
Non-cash pension settlement expense		—			—			—			19,046
Factory closures		—			306			—			3,778
Insurance recovery legal costs		—			—			—			229
Gain on sale of building		—			—			—			(2,638	)
Normalize tax rate to 22% (1)		(260	)		(2,772	)		(13,852	)		(9,708	)
Non-GAAP adjusted net income	$	22,741		$	14,656		$	80,261		$	37,857

Average diluted shares outstanding		28,845			24,384			28,401			24,173

Diluted income (loss) per share - GAAP	$	0.41		$	0.39		$	1.04		$	0.38

Diluted income per share - Non-GAAP	$	0.79		$	0.60		$	2.83		$	1.57

(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,
		2022			2021			2022			2021
GAAP net income (loss)	$	11,826		$	9,585		$	29,660		$	9,106
Add back (deduct):
Income tax expense (benefit)		6,154			1,362			8,786			970
Interest and debt expense		5,352			2,889			20,126			12,081
Investment (income) loss		578			(264	)		(46	)		(1,693	)
Foreign currency exchange (gain) loss		527			(142	)		1,574			941
Other (income) expense, net		(378	)		769			(1,122	)		20,850
Depreciation and amortization expense		10,679			6,950			41,924			28,153
Cost of debt refinancing		—			—			14,803			—
Acquisition deal and integration costs		229			3,951			10,473			3,951
Acquisition inventory step-up expense		1,546			—			5,042			—
Business realignment costs		1,115			412			3,902			1,470
Product liability settlement		—			—			2,850			—
Acquisition amortization of backlog		1,650			—			2,100			—
Factory closures		—			306			—			3,778
Insurance recovery legal costs		—			—			—			229
Gain on sale of building		—			—			—			(2,638	)
Non-GAAP adjusted EBITDA	$	39,278		$	25,818		$	140,072		$	77,198

Sales	$	253,368		$	186,235		$	906,555		$	649,642
Add back:
Acquisition amortization of backlog		1,650			—			2,100			—
Non-GAAP sales	$	255,018		$	186,235		$	908,655		$	649,642

Net income (loss) margin - GAAP		4.7	%		5.1	%		3.3	%		1.4	%
Adjusted EBITDA margin - Non-GAAP		15.4	%		13.9	%		15.4	%		11.9	%

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/20220525005244/en/

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

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

Source: Columbus McKinnon Corporation