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Published: 2022-05-25 16:09:53 ET
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EX-99.1 2 exhibit9915252022.htm EX-99.1 Document

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                            EXHIBIT 99.1
News Release
205 Crosspoint Parkway
Buffalo, NY 14068
Immediate Release     

Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in
Fourth Quarter Fiscal Year 2022
BUFFALO, NY, May 25, 2022 - 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.

Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 2 of 13
May 25, 2022
Fourth Quarter Fiscal 2022 Sales
($ in millions)Q4 FY 22Q4 FY 21Change% Change
Net sales$253.4 $186.2 $67.1 36.0 %
U.S. sales$149.0 $94.8 $54.2 57.2 %
     % of total59 %51 %
Non-U.S. sales$104.4 $91.4 $13.0 14.2 %
     % of total41 %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 22Q4 FY 21Change% Change
Gross profit$85.5 $64.1 $21.4 33.4 %
     Gross margin33.7 %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 margin9.5 %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) margin4.7 %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.”




Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 3 of 13
May 25, 2022
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 McKinnon Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company’s ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the forward-looking information contained in this release.
Contacts:
Gregory P. RustowiczInvestor Relations:
Senior Vice President - Finance and Chief Financial OfficerDeborah K. Pawlowski
Columbus McKinnon CorporationKei Advisors LLC
716-689-5442716-843-3908
greg.rustowicz@cmworks.comdpawlowski@keiadvisors.com

Financial tables follow.


Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 4 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
 
Three Months Ended
 March 31, 2022March 31, 2021Change
Net sales$253,368 $186,235 36.0 %
Cost of products sold167,893 122,147 37.5 %
Gross profit85,475 64,088 33.4 %
Gross profit margin33.7 %34.4 % 
Selling expenses27,080 20,820 30.1 %
% of net sales10.7 %11.2 %
General and administrative expenses23,633 22,193 6.5 %
% of net sales9.3 %11.9 %
Research and development expenses4,068 3,702 9.9 %
% of net sales1.6 %2.0 %
Amortization of intangibles6,635 3,174 109.0 %
Income from operations24,059 14,199 69.4 %
Operating margin9.5 %7.6 % 
Interest and debt expense5,352 2,889 85.3 %
Investment (income) loss578 (264)NM
Foreign currency exchange (gain) loss527 (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 outstanding28,507 23,977 18.9 %
Basic income (loss) per share$0.41 $0.40 2.5 %
Average diluted shares outstanding28,845 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 Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 5 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Year Ended
 March 31, 2022March 31, 2021Change
Net sales$906,555 $649,642 39.5 %
Cost of products sold590,825 429,417 37.6 %
Gross profit315,730 220,225 43.4 %
Gross profit margin34.8 %33.9 % 
Selling expenses99,187 76,907 29.0 %
% of net sales10.9 %11.8 %
General and administrative expenses102,128 76,035 34.3 %
% of net sales11.3 %11.7 %
Research and development expenses15,351 12,405 23.7 %
% of net sales1.7 %1.9 %
Amortization of intangibles25,283 12,623 100.3 %
Income from operations73,781 42,255 74.6 %
Operating margin8.1 %6.5 % 
Interest and debt expense20,126 12,081 66.6 %
Cost of debt refinancing14,803 — NM
Investment (income) loss(46)(1,693)(97.3)%
Foreign currency exchange (gain) loss1,574 941 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 outstanding28,040 23,897 17.3 %
Basic income (loss) per share$1.06 $0.38 178.9 %
Average diluted shares outstanding28,401 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 Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 6 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
 March 31, 2022March 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$115,390 $202,127 
Trade accounts receivable147,515 105,464 
Inventories172,139 111,488 
Prepaid expenses and other31,545 22,763 
Total current assets466,589 441,842 
Property, plant, and equipment, net97,926 74,753 
Goodwill648,849 331,176 
Other intangibles, net390,788 213,362 
Marketable securities10,294 7,968 
Deferred taxes on income2,313 20,080 
Other assets68,948 61,251 
Total assets$1,685,707 $1,150,432 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Trade accounts payable$90,881 $68,593 
Accrued liabilities118,187 110,816 
Current portion of long-term debt and finance lease obligations40,551 4,450 
Total current liabilities249,619 183,859 
Term loan and finance lease obligations470,675 244,504 
Other non-current liabilities192,610 191,920 
Total liabilities912,904 620,283 
Shareholders’ equity:  
Common stock285 240 
Additional paid-in capital506,074 296,093 
Retained earnings316,343 293,802 
Accumulated other comprehensive loss(49,899)(59,986)
Total shareholders’ equity772,803 530,149 
Total liabilities and shareholders’ equity$1,685,707 $1,150,432 



Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 7 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
 Year Ended
 March 31, 2022March 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 amortization41,924 28,153 
Deferred income taxes and related valuation allowance(1,969)(8,704)
Net loss (gain) on sale of real estate, investments, and other136 (1,594)
Stock based compensation11,246 8,022 
Amortization of deferred financing costs1,703 2,646 
Cost of debt refinancing14,803 — 
Loss (gain) on hedging instruments853 — 
Non-cash pension settlement expense— 19,038 
Gain on sale of building(375)(2,638)
Non-cash lease expense7,945 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 assets25 874 
Trade accounts payable12,681 10,343 
Accrued liabilities696 (3,174)
Non-current liabilities(11,211)(7,632)
Net cash provided by (used for) operating activities48,881 98,890 
Investing activities:  
Proceeds from sales of marketable securities4,434 5,111 
Purchases of marketable securities(7,130)(4,945)
Capital expenditures(13,104)(12,300)
Proceeds from sale of building, net of transaction costs461 5,453 
Proceeds from insurance reimbursement482 100 
Purchases of businesses, net of cash acquired(539,778)— 
Dividend received from equity method investment324 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 stock2,655 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 debt725,000 — 
Proceeds from equity offering207,000 — 
Fees related to debt and equity offering(26,184)— 
Cash inflows from hedging activities19,417 — 
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 activities420,700 (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 year202,377 114,700 
Cash, cash equivalents, and restricted cash at end of period$115,640 $202,377 



Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 8 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Q4 FY 2022 Sales Bridge
QuarterYear To Date
($ in millions)$ Change% Change$ Change% Change
Fiscal 2021 Sales$186.2 $649.6 
Acquisitions40.5 21.7 %144.6 22.3 %
Volume23.3 12.5 %90.0 13.7 %
Pricing8.4 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)QuarterYear To Date
Fiscal 2021 Gross Profit$64.1 $220.2 
Acquisitions17.3 61.3 
Sales volume and mix7.6 30.7 
Productivity, net of other cost changes(1.3)10.4 
Price, net of material cost inflation3.0 6.0 
Prior year factory closure costs— 2.7 
Foreign currency translation(1.8)0.6 
Acquisition integration costs— (0.5)
Business realignment costs0.3 (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 change21.4 95.5 
Fiscal 2022 Gross Profit$85.5 $315.7 

U.S. Shipping Days by Quarter 
 Q1Q2Q3Q4Total
FY 2363646063250
FY 2263646163251
FY 2163646163251




Columbus McKinnon Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 9 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
 March 31, 2022December 31, 2021March 31, 2021
($ 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 backlog43.7 %39.5 %39.6 %
Trade accounts receivable    
Days sales outstanding53.0 days50.6 days51.5 days
Inventory turns per year    
(based on cost of products sold)3.9 turns3.3 turns4.4 turns
Days' inventory93.6 days111.4 days83.3 days
Trade accounts payable    
Days payables outstanding58.7 days56.9 days58.7 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 percentage39.8 %41.1 %32.0 %
Debt, net of cash, to net total capitalization33.9 %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.
Components may not add due to rounding.
(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 Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 10 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
Three Months Ended March 31,Year Ended March 31,
2022202120222021
GAAP gross profit$85,475 $64,088 $315,730 $220,225 
Add back (deduct):
Acquisition inventory step-up expense1,546 — 5,042 — 
Product liability settlement— — 2,850 — 
Acquisition amortization of backlog1,650 — 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 backlog1,650 — 2,100 — 
Non-GAAP sales$255,018 $186,235 $908,655 $649,642 
Gross margin - GAAP33.7 %34.4 %34.8 %33.9 %
Adjusted gross margin - Non-GAAP34.8 %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 Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 11 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations
($ in thousands, except per share data)
Three Months Ended March 31,Year Ended March 31,
2022202120222021
GAAP income from operations$24,059 $14,199 $73,781 $42,255 
Add back (deduct):
Acquisition deal and integration costs229 3,951 10,473 3,951 
Acquisition inventory step-up expense1,546 — 5,042 — 
Business realignment costs1,115 412 3,902 1,470 
Product liability settlement— — 2,850 — 
Acquisition amortization of backlog1,650 — 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 backlog1,650 — 2,100 — 
Non-GAAP sales$255,018 $186,235 $908,655 $649,642 
Operating margin - GAAP9.5 %7.6 %8.1 %6.5 %
Adjusted operating margin - Non-GAAP11.2 %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 Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 12 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Diluted Earnings per Share
($ in thousands, except per share data)
Three Months Ended March 31,Year Ended March 31,
2022202120222021
GAAP net income (loss)$11,826 $9,585 $29,660 $9,106 
Add back (deduct):
Amortization of intangibles6,635 3,174 25,283 12,623 
Cost of debt refinancing— — 14,803 — 
Acquisition deal and integration costs229 3,951 10,473 3,951 
Acquisition inventory step-up expense1,546 — 5,042 — 
Business realignment costs1,115 412 3,902 1,470 
Product liability settlement— — 2,850 — 
Acquisition amortization of backlog1,650 — 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 outstanding28,845 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 Reports Revenue Grew 36% to Record $253 Million in Fourth Quarter Fiscal Year 2022
Page 13 of 13
May 25, 2022
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
Three Months Ended March 31,Year Ended March 31,
2022202120222021
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 expense5,352 2,889 20,126 12,081 
Investment (income) loss578 (264)(46)(1,693)
Foreign currency exchange (gain) loss527 (142)1,574 941 
Other (income) expense, net(378)769 (1,122)20,850 
Depreciation and amortization expense10,679 6,950 41,924 28,153 
Cost of debt refinancing— — 14,803 — 
Acquisition deal and integration costs229 3,951 10,473 3,951 
Acquisition inventory step-up expense1,546 — 5,042 — 
Business realignment costs1,115 412 3,902 1,470 
Product liability settlement— — 2,850 — 
Acquisition amortization of backlog1,650 — 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 backlog1,650 — 2,100 — 
Non-GAAP sales$255,018 $186,235 $908,655 $649,642 
Net income (loss) margin - GAAP4.7 %5.1 %3.3 %1.4 %
Adjusted EBITDA margin - Non-GAAP15.4 %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.