EX-99.1 2 exhibit9915292024.htm EX-99.1
EXHIBIT 99.1
News Release

13320 Ballantyne Corporate Place, Suite D
Immediate Release Charlotte, NC 28277
Columbus McKinnon Reports Record Net Sales, Gross Margin
and Operating Income in Fiscal 2024
CHARLOTTE, NC, May 29, 2024 - Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its full year and fourth quarter fiscal 2024, which ended March 31, 2024. Results include the addition of montratec®, which was acquired on May 31, 2023 ("the acquisition").
Fiscal Year 2024 Highlights (compared with prior year period)
•Record net sales of $1.0 billion, up 8% driven by growth across all geographies including the acquisition of montratec
•Gross margin up 50 basis points to 37.0%; Adjusted Gross Margin 1 up 80 basis points to 37.3%
•Net income of $46.6 million with a net margin of 4.6%; Adjusted EBITDA 1 of $166.7 million, up 13% with Adjusted EBITDA Margin 1 of 16.4%, up 60 basis points
•Generated net cash provided by operating activities of $67.2 million and Free Cash Flow 1 of $42.4 million with Free Cash Flow Conversion 1 of 91%
•Net Leverage Ratio 1,2 decreased to 2.4x; Expect Net Leverage Ratio 1,2 of ~2.0x target by end of year Fiscal 2025
Fourth Quarter 2024 Highlights (compared with prior year period)
•Delivered $265.5 million of net sales demonstrating continued momentum, up 5% driven by growth across all geographies with strength in precision conveyance, up 23%
•Orders increased 5% led by precision conveyance, up 25%
•Net income of $11.8 million with a net margin of 4.4%; Adjusted EBITDA 1 of $43.0 million, up 8% with Adjusted EBITDA Margin 1 of 16.2%, up 50 basis points
“Our team delivered another record year of sales, gross margin, operating income, and Adjusted EBITDA Margin 1 reflecting the solid progress we are making with our transformation. These results provide another proof point on the path to achieving our long-term financial objectives. Our team continues to execute on commercial and operational initiatives to improve productivity, reduce lead times, and enhance customer experience, which position us to scale our business and deliver top-tier financial results,” said David J. Wilson, President and Chief Executive Officer. “While we are taking a prudent view of our outlook for fiscal 2025, we remain cautiously optimistic given the solid momentum exiting fiscal 2024 and our encouraging pipeline of opportunities. We are focused on execution as we thoughtfully navigate this uncertain environment.”

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
Fourth Quarter Fiscal 2024 Sales

($ in millions) | Q4 FY 24 |  | Q4 FY 23 |  | Change |  | % Change
Net sales | $ | 265.5 |  |  | $ | 253.8 |  |  | $ | 11.7 |  |  | 4.6 | %
U.S. sales | $ | 155.0 |  |  | $ | 149.4 |  |  | $ | 5.6 |  |  | 3.7 | %
% of total | 58 | % |  | 59 | % |  |  |  |
Non-U.S. sales | $ | 110.5 |  |  | $ | 104.4 |  |  | $ | 6.1 |  |  | 5.8 | %
% of total | 42 | % |  | 41 | % |  |  |  |

For the quarter, sales increased $11.7 million, or 4.6%. The acquisition contributed $4.9 million, or 1.9%. In the U.S., sales were up $5.6 million, or 3.7%, driven by favorable sales volume of $3.1 million, price improvement of $2.1 million and $0.4 million of contribution from the acquisition. Sales outside the U.S. increased $6.1 million, or 5.8%, driven by $4.5 million of sales related to the acquisition and $3.6 million of price improvement offset by
$3.3 million of lower sales volume. Favorable foreign currency translation was $1.3 million.
Fourth Quarter Fiscal 2024 Operating Results

($ in millions) | Q4 FY 24 |  | Q4 FY 23 |  | Change |  | % Change
Gross profit | $ | 94.3 |  |  | $ | 91.2 |  |  | $ | 3.1 |  |  | 3.4 | %
Gross margin | 35.5 | % |  | 35.9 | % |  | (40) bps |  |
Adjusted Gross Profit 1 | $ | 97.1 |  |  | $ | 91.2 |  |  | $ | 5.9 |  |  | 6.5 | %
Adjusted Gross Margin 1 | 36.6 | % |  | 35.9 | % |  | 70 bps |  |
Income from operations | $ | 25.4 |  |  | $ | 27.5 |  |  | $ | (2.0) |  |  | (7.4) | %
Operating margin | 9.6 | % |  | 10.8 | % |  | (120) bps |  |
Adjusted Operating Income 1 | $ | 31.1 |  |  | $ | 29.2 |  |  | $ | 1.9 |  |  | 6.6 | %
Adjusted Operating Margin 1 | 11.7 | % |  | 11.5 | % |  | 20 bps |  |
Net income | $ | 11.8 |  |  | $ | 13.9 |  |  | $ | (2.1) |  |  | (15.0) | %
Net income margin | 4.4 | % |  | 5.5 | % |  | (110) bps |  |
Diluted EPS | $ | 0.41 |  |  | $ | 0.48 |  |  | $ | (0.07) |  |  | (14.6) | %
Adjusted EPS 1 | $ | 0.75 |  |  | $ | 0.80 |  |  | $ | (0.05) |  |  | (6.3) | %
Adjusted EBITDA 1 | $ | 43.0 |  |  | $ | 39.7 |  |  | $ | 3.2 |  |  | 8.2 | %
Adjusted EBITDA margin 1 | 16.2 | % |  | 15.7 | % |  | 50 bps |  |

Adjusted EPS 1 excludes amortization of intangible assets related to acquisitions. The Company believes this better represents its inherent earnings power and cash generation capability.
2

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
Full Year and First Quarter Fiscal 2025 Guidance
The Company is issuing the following guidance for the first quarter of fiscal 2025, ending June 30, 2024:

Metric | Q1 FY25
Net sales | Low-single digit growth year-over-year
Adjusted EPS 3 | Flat to slightly down year-over-year

First quarter 2025 guidance assumes approximately $9 million of interest expense, $8 million of amortization, an effective tax rate of 25% and 29.2 million diluted average shares outstanding.
The Company is issuing the following guidance for fiscal 2025, ending March 31, 2025:

Metric | FY25
Net sales | Low-single digit growth year-over-year
Adjusted EPS 3 | Mid to high-single digit growth year-over-year
Capital Expenditures | $20 million to $30 million
Net Leverage Ratio 3 | ~2.0x

Fiscal 2025 guidance assumes approximately $33 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.4 million diluted average shares outstanding.
Teleconference/Webcast
Columbus McKinnon will host a conference call today at 10:00 AM Eastern Time to discuss the Company’s financial results and strategy. The conference call will be accessible through live webcast and via phone by dialing 201-493-6780. The webcast, earnings release and earnings presentation will be available at the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website and available via phone by dialing 412-317-6671 and enter conference ID number 13746170 through June 5, 2024.
______________________
1 Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow Conversion and Net Leverage Ratio are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.
2 On a financial covenant basis per the Company’s Amended and Restated Credit Agreement
3 The Company has not reconciled the Adjusted EPS and Net Leverage Ratio guidance to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measures. Forward-looking guidance regarding Adjusted EPS and Net Leverage Ratio are made in a manner consistent with the relevant definitions and assumptions noted herein.
3

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
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.cmco.com.
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “illustrative,” “intend,” “likely,” “may,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this release, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects and our full year and first quarter fiscal 2025 guidance; (ii) our operational and financial targets and capital distribution policy; (iii) general economic trend and trends in the industry and markets; (iv) the risk and costs associated with the integration of, and our ability to integrate acquisitions successfully to achieve synergies; (v) the effectiveness of our new facility in Monterrey, Mexico to provide cost savings and margin improvement (vi) the amount of debt to be paid down by the Company during fiscal 2025; and (vii) the competitive environment in which we operate are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
Contacts:

Gregory P. Rustowicz |  | Kristine Moser
EVP Finance and CFO |  | VP IR and Treasurer
Columbus McKinnon Corporation |  | Columbus McKinnon Corporation
716-689-5442 |  | 704-322-2488
greg.rustowicz@cmco.com |  | kristy.moser@cmco.com

Financial tables follow.
4

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - Unaudited
(In thousands, except per share and percentage data)

|  | Three Months Ended |  |
|  | March 31, 2024 |  | March 31, 2023 |  | Change
Net sales |  | $ | 265,504 |  |  | $ | 253,843 |  |  | 4.6 | %
Cost of products sold |  | 171,189 |  |  | 162,625 |  |  | 5.3 | %
Gross profit |  | 94,315 |  |  | 91,218 |  |  | 3.4 | %
Gross profit margin |  | 35.5 | % |  | 35.9 | % |  |
Selling expenses |  | 26,941 |  |  | 25,331 |  |  | 6.4 | %
% of net sales |  | 10.1 | % |  | 10.0 | % |  |
General and administrative expenses |  | 27,353 |  |  | 26,353 |  |  | 3.8 | %
% of net sales |  | 10.3 | % |  | 10.4 | % |  |
Research and development expenses |  | 7,059 |  |  | 5,506 |  |  | 28.2 | %
% of net sales |  | 2.7 | % |  | 2.2 | % |  |
Amortization of intangibles |  | 7,525 |  |  | 6,559 |  |  | 14.7 | %
Income from operations |  | 25,437 |  |  | 27,469 |  |  | (7.4) | %
Operating margin |  | 9.6 | % |  | 10.8 | % |  |
Interest and debt expense |  | 9,169 |  |  | 7,668 |  |  | 19.6 | %
Investment (income) loss, net |  | (547) |  |  | (483) |  |  | 13.3 | %
Foreign currency exchange loss (gain), net |  | 752 |  |  | (1,037) |  |  | NM
Other (income) expense, net |  | 1,757 |  |  | (73) |  |  | NM
Income before income tax expense |  | 14,306 |  |  | 21,394 |  |  | (33.1) | %
Income tax expense |  | 2,497 |  |  | 7,499 |  |  | (66.7) | %
Net income |  | $ | 11,809 |  |  | $ | 13,895 |  |  | (15.0) | %
Average basic shares outstanding |  | 28,780 |  |  | 28,609 |  |  | 0.6 | %
Basic income per share |  | $ | 0.41 |  |  | $ | 0.49 |  |  | (16.3) | %
Average diluted shares outstanding |  | 29,129 |  |  | 28,869 |  |  | 0.9 | %
Diluted income per share |  | $ | 0.41 |  |  | $ | 0.48 |  |  | (14.6) | %
Dividends declared per common share |  | $ | 0.14 |  |  | $ | 0.14 |  |  |

5

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - Unaudited
(In thousands, except per share and percentage data)

|  | Year Ended |  |
|  | March 31, 2024 |  | March 31, 2023 |  | Change
Net sales |  | $ | 1,013,540 |  |  | $ | 936,240 |  |  | 8.3 | %
Cost of products sold |  | 638,702 |  |  | 594,141 |  |  | 7.5 | %
Gross profit |  | 374,838 |  |  | 342,099 |  |  | 9.6 | %
Gross profit margin |  | 37.0 | % |  | 36.5 | % |  |
Selling expenses |  | 105,341 |  |  | 102,528 |  |  | 2.7 | %
% of net sales |  | 10.4 | % |  | 11.0 | % |  |
General and administrative expenses |  | 106,760 |  |  | 94,794 |  |  | 12.6 | %
% of net sales |  | 10.5 | % |  | 10.1 | % |  |
Research and development expenses |  | 26,193 |  |  | 20,935 |  |  | 25.1 | %
% of net sales |  | 2.6 | % |  | 2.2 | % |  |
Amortization of intangibles |  | 29,396 |  |  | 26,001 |  |  | 13.1 | %
Income from operations |  | 107,148 |  |  | 97,841 |  |  | 9.5 | %
Operating margin |  | 10.6 | % |  | 10.5 | % |  |
Interest and debt expense |  | 37,957 |  |  | 27,942 |  |  | 35.8 | %
Investment (income) loss, net |  | (1,759) |  |  | (315) |  |  | 458.4 | %
Foreign currency exchange loss (gain), net |  | 1,826 |  |  | (2,189) |  |  | NM
Other (income) expense, net |  | 7,597 |  |  | (2,072) |  |  | NM
Income before income tax expense |  | 61,527 |  |  | 74,475 |  |  | (17.4) | %
Income tax expense |  | 14,902 |  |  | 26,046 |  |  | (42.8) | %
Net income |  | $ | 46,625 |  |  | $ | 48,429 |  |  | (3.7) | %
Average basic shares outstanding |  | 28,728 |  |  | 28,600 |  |  | 0.4 | %
Basic income per share |  | $ | 1.62 |  |  | $ | 1.69 |  |  | (4.1) | %
Average diluted shares outstanding |  | 29,026 |  |  | 28,818 |  |  | 0.7 | %
Diluted income per share |  | $ | 1.61 |  |  | $ | 1.68 |  |  | (4.2) | %
Dividends declared per common share |  | $ | 0.28 |  |  | $ | 0.28 |  |  |

6

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets - Unaudited
(In thousands)

|  | March 31, 2024 |  | March 31, 2023
ASSETS |  |  |  |
Current assets: |  |  |  |
Cash and cash equivalents |  | $ | 114,126 |  |  | $ | 133,176 |
Trade accounts receivable |  | 171,186 |  |  | 151,451 |
Inventories |  | 186,091 |  |  | 179,359 |
Prepaid expenses and other |  | 42,752 |  |  | 32,254 |
Total current assets |  | 514,155 |  |  | 496,240 |
Net property, plant, and equipment |  | 106,395 |  |  | 94,360 |
Goodwill |  | 710,334 |  |  | 644,629 |
Other intangibles, net |  | 385,634 |  |  | 362,537 |
Marketable securities |  | 11,447 |  |  | 10,368 |
Deferred taxes on income |  | 1,797 |  |  | 2,035 |
Other assets |  | 96,183 |  |  | 88,286 |
Total assets |  | $ | 1,825,945 |  |  | $ | 1,698,455 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |
Current liabilities: |  |  |  |
Trade accounts payable |  | $ | 83,118 |  |  | $ | 76,736 |
Accrued liabilities |  | 127,973 |  |  | 124,317 |
Current portion of long-term debt and finance lease obligations |  | 50,670 |  |  | 40,604 |
Total current liabilities |  | 261,761 |  |  | 241,657 |
Term loan, AR securitization facility and finance lease obligations |  | 479,566 |  |  | 430,988 |
Other non-current liabilities |  | 202,555 |  |  | 192,013 |
Total liabilities |  | 943,882 |  |  | 864,658 |
Shareholders’ equity: |  |  |  |
Common stock |  | 288 |  |  | 286 |
Treasury Stock |  | (1,001) |  |  | (1,001) |
Additional paid-in capital |  | 527,125 |  |  | 515,797 |
Retained earnings |  | 395,328 |  |  | 356,758 |
Accumulated other comprehensive loss |  | (39,677) |  |  | (38,043) |
Total shareholders’ equity |  | 882,063 |  |  | 833,797 |
Total liabilities and shareholders’ equity |  | $ | 1,825,945 |  |  | $ | 1,698,455 |

7

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - Unaudited
(In thousands)

|  | Year Ended
|  | March 31, 2024 |  | March 31, 2023
Operating activities: |  |  |  |
Net income |  | $ | 46,625 |  |  | $ | 48,429 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: |  |  |  |
Depreciation and amortization |  | 45,945 |  |  | 41,947 |
Deferred income taxes and related valuation allowance |  | (15,285) |  |  | (300) |
Net loss (gain) on sale of real estate, investments and other |  | (1,431) |  |  | (54) |
Stock-based compensation |  | 12,039 |  |  | 10,425 |
Amortization of deferred financing costs |  | 2,349 |  |  | 1,721 |
Loss (gain) on hedging instruments |  | (1,366) |  |  | (438) |
Cost of debt repricing |  | 958 |  |  | — |
Loss on retirement of fixed asset |  | — |  |  | 175 |
Non-cash pension settlement |  | 4,984 |  |  | — |
Gain on sale of building |  | — |  |  | (232) |
Non-cash lease expense |  | 9,735 |  |  | 7,867 |
Changes in operating assets and liabilities, net of effects of business acquisitions: |  |  |  |
Trade accounts receivable |  | (14,428) |  |  | (4,858) |
Inventories |  | (1,314) |  |  | (9,087) |
Prepaid expenses and other |  | (8,555) |  |  | 6,667 |
Other assets |  | 537 |  |  | (123) |
Trade accounts payable |  | 4,748 |  |  | (13,964) |
Accrued liabilities |  | (9,583) |  |  | 9,150 |
Non-current liabilities |  | (8,760) |  |  | (13,689) |
Net cash provided by (used for) operating activities |  | 67,198 |  |  | 83,636 |
Investing activities: |  |  |  |
Proceeds from sales of marketable securities |  | 3,526 |  |  | 3,651 |
Purchases of marketable securities |  | (4,076) |  |  | (4,021) |
Capital expenditures |  | (24,813) |  |  | (12,632) |
Proceeds from sale of building, net of transaction costs |  | — |  |  | 373 |
Purchases of businesses, net of cash acquired |  | (108,145) |  |  | (1,616) |
Dividend received from equity method investment |  | 144 |  |  | 313 |
Net cash provided by (used for) investing activities |  | (133,364) |  |  | (13,932) |
Financing activities: |  |  |  |
Proceeds from issuance of common stock |  | 1,600 |  |  | 713 |
Purchases of treasury stock |  | — |  |  | (1,001) |
Fees paid for debt repricing |  | (958) |  |  | — |
Repayment of debt |  | (60,604) |  |  | (40,550) |
Proceeds from issuance of long-term debt |  | 120,000 |  |  | — |
Cash inflows from hedging activities |  | 24,057 |  |  | 24,495 |
Cash outflows from hedging activities |  | (22,687) |  |  | (24,221) |
Fees paid for borrowing on long-term debt |  | (2,859) |  |  | — |
Payment of dividends |  | (8,044) |  |  | (8,008) |
Other |  | (2,304) |  |  | (1,415) |
Net cash provided by (used for) financing activities |  | 48,201 |  |  | (49,987) |
Effect of exchange rate changes on cash |  | (1,085) |  |  | (1,931) |
Net change in cash and cash equivalents |  | (19,050) |  |  | 17,786 |
Cash, cash equivalents, and restricted cash at beginning of year |  | 133,426 |  |  | 115,640 |
Cash, cash equivalents, and restricted cash at end of year |  | $ | 114,376 |  |  | $ | 133,426 |

8

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Q4 FY 2024 Sales Bridge

|  | Quarter |  | Year
($ in millions) |  | $ Change |  | % Change |  | $ Change |  | % Change
Fiscal 2023 Sales |  | $ | 253.8 |  |  |  |  | $ | 936.2 |  |  |
Acquisition |  | 4.9 |  |  | 1.9 | % |  | 32.6 |  |  | 3.5 | %
Volume |  | (0.2) |  |  | (0.1) | % |  | (0.4) |  |  | — | %
Pricing |  | 5.7 |  |  | 2.3 | % |  | 33.8 |  |  | 3.6 | %
Foreign currency translation |  | 1.3 |  |  | 0.5 | % |  | 11.3 |  |  | 1.2 | %
Total change |  | $ | 11.7 |  |  | 4.6 | % |  | $ | 77.3 |  |  | 8.3 | %
Fiscal 2024 Sales |  | $ | 265.5 |  |  |  |  | $ | 1,013.5 |  |  |

COLUMBUS McKINNON CORPORATION
Q4 FY 2024 Gross Profit Bridge

($ in millions) | Quarter |  | Year
Fiscal 2023 Gross Profit | $ | 91.2 |  |  | $ | 342.1 |
Acquisition | 0.8 |  |  | 13.8 |
Price, net of manufacturing cost changes (incl. inflation) | 1.0 |  |  | 16.9 |
Foreign currency translation | 0.4 |  |  | 3.8 |
Current year business realignment costs | — |  |  | (0.4) |
Monterrey, MX new factory start-up costs | (2.6) |  |  | (3.0) |
Factory and warehouse consolidation costs | (0.2) |  |  | (0.2) |
Sales volume & mix | 3.7 |  |  | 0.9 |
Product liability | — |  |  | 0.9 |
Total change | 3.1 |  |  | 32.7 |
Fiscal 2024 Gross Profit | $ | 94.3 |  |  | $ | 374.8 |

U.S. Shipping Days by Quarter
|  | Q1 |  | Q2 |  | Q3 |  | Q4 |  | Total
FY 25 |  | 64 |  | 63 |  | 60 |  | 62 |  | 249
FY 24 |  | 63 |  | 62 |  | 61 |  | 62 |  | 248
FY 23 |  | 63 |  | 64 |  | 60 |  | 63 |  | 250

9

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Additional Data 1
(Unaudited)

|  | Period Ended
|  | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
($ in millions) |  |  |  |  |  |  |  |  |
Backlog |  | $ | 280.8 |  |  |  | $ | 298.4 |  |  |  | $ | 308.7 |  |
Long-term backlog |  |  |  |  |  |  |  |  |
Expected to ship beyond 3 months |  | $ | 144.6 |  |  |  | $ | 151.3 |  |  |  | $ | 142.0 |  |
Long-term backlog as % of total backlog |  | 51.5 |  | % |  | 50.7 |  | % |  | 46.0 |  | %
Debt to total capitalization percentage |  | 37.5 |  | % |  | 38.5 |  | % |  | 36.1 |  | %
Debt, net of cash, to net total capitalization |  | 32.0 |  | % |  | 33.7 |  | % |  | 28.9 |  | %
Working capital as a % of sales 2 |  | 19.1 |  | % |  | 20.6 |  | % |  | 17.3 |  | %

|  | Three Months Ended
|  | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
($ in millions) |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  |  |  |  |  |  |  |
Days sales outstanding |  | 58.7 |  | days |  | 62.1 |  | days |  | 54.3 |  | days
Inventory turns per year |  |  |  |  |  |  |  |  |
(based on cost of products sold) |  | 3.7 |  | turns |  | 3.1 |  | turns |  | 3.6 |  | turns
Days' inventory |  | 98.6 |  | days |  | 117.7 |  | days |  | 101.4 |  | days
Trade accounts payable |  |  |  |  |  |  |  |  |
Days payables outstanding |  | 50.9 |  | days |  | 50.1 |  | days |  | 53.3 |  | days
Net cash provided by (used for) operating activities |  | $ | 38.6 |  |  |  | $ | 29.1 |  |  |  | $ | 66.7 |  |
Capital expenditures |  | $ | 8.5 |  |  |  | $ | 6.0 |  |  |  | $ | 3.1 |  |
Free Cash Flow 3 |  | $ | 30.1 |  |  |  | $ | 23.1 |  |  |  | $ | 63.6 |  |

1 Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company’s financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding
2 March 31, 2024 and December 31, 2023 exclude the impact of the acquisition of montratec.
3 Free Cash Flow is a non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.
.
10

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
COLUMBUS McKINNON CORPORATION
Reconciliation of Gross Profit to Adjusted Gross Profit
($ in thousands)

| Three Months Ended March 31, |  | Year Ended March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
GAAP gross profit | $ | 94,315 |  |  | $ | 91,218 |  |  | $ | 374,838 |  |  | $ | 342,099 |
Add back (deduct): |  |  |  |  |  |  |
Business realignment costs | — |  |  | — |  |  | 346 |  |  | — |
Monterrey, MX new factory start-up costs | 2,552 |  |  | — |  |  | 2,987 |  |  | — |
Factory and warehouse consolidation costs | 262 |  |  | — |  |  | 262 |  |  | — |
Non-GAAP adjusted gross profit | $ | 97,129 |  |  | $ | 91,218 |  |  | $ | 378,433 |  |  | $ | 342,099 |
Net Sales | $ | 265,504 |  |  | $ | 253,843 |  |  | $ | 1,013,540 |  |  | $ | 936,240 |
Gross margin | 35.5 | % |  | 35.9 | % |  | 37.0 | % |  | 36.5 | %
Adjusted Gross Margin | 36.6 | % |  | 35.9 | % |  | 37.3 | % |  | 36.5 | %

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Profit Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Profit Margin, are 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 and gross profit margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit and gross profit margin to that of other companies.
11

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Reconciliation of Income from Operations to Adjusted Operating Income
($ in thousands)

| Three Months Ended March 31, |  | Year Ended March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Income from operations | $ | 25,437 |  |  | $ | 27,469 |  |  | $ | 107,148 |  |  | $ | 97,841 |
Add back (deduct): |  |  |  |  |  |  |
Acquisition deal and integration costs | 3 |  |  | 173 |  |  | 3,211 |  |  | 616 |
Business realignment costs | — |  |  | 848 |  |  | 1,867 |  |  | 5,140 |
Factory and warehouse consolidation costs | 545 |  |  | — |  |  | 744 |  |  | — |
Garvey contingent consideration | — |  |  | — |  |  | — |  |  | 1,230 |
Headquarter relocation costs | 175 |  |  | 681 |  |  | 2,059 |  |  | 996 |
Monterrey, MX new factory start-up costs | 3,734 |  |  | — |  |  | 4,489 |  |  | — |
Cost of debt repricing | 1,190 |  |  | — |  |  | 1,190 |  |  | — |
Adjusted Operating Income | $ | 31,084 |  |  | $ | 29,171 |  |  | $ | 120,708 |  |  | $ | 105,823 |
Net Sales | $ | 265,504 |  |  | $ | 253,843 |  |  | $ | 1,013,540 |  |  | $ | 936,240 |
Operating margin | 9.6 | % |  | 10.8 | % |  | 10.6 | % |  | 10.5 | %
Adjusted Operating Margin | 11.7 | % |  | 11.5 | % |  | 11.9 | % |  | 11.3 | %

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are 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 and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.
12

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Income and Diluted Earnings per Share to
Adjusted Net Income and Adjusted Earnings per Diluted Share
($ in thousands, except per share data)

| Three Months Ended March 31, |  | Year Ended March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Net income | $ | 11,809 |  |  | $ | 13,895 |  |  | $ | 46,625 |  |  | $ | 48,429 |
Add back (deduct): |  |  |  |  |  |  |
Amortization of intangibles | 7,525 |  |  | 6,559 |  |  | 29,396 |  |  | 26,001 |
Acquisition deal and integration costs | 3 |  |  | 173 |  |  | 3,211 |  |  | 616 |
Business realignment costs | — |  |  | 848 |  |  | 1,867 |  |  | 5,140 |
Factory and warehouse consolidation costs | 545 |  |  | — |  |  | 744 |  |  | — |
Garvey contingent consideration | — |  |  | — |  |  | — |  |  | 1,230 |
Headquarter relocation costs | 175 |  |  | 681 |  |  | 2,059 |  |  | 996 |
Monterrey, MX new factory start-up costs | 3,734 |  |  | — |  |  | 4,489 |  |  | — |
Cost of debt repricing | 1,190 |  |  | — |  |  | 1,190 |  |  | — |
Non-cash pension settlement expense | 385 |  |  | — |  |  | 4,984 |  |  | — |
Tax indemnification payment owed 1 | 1,192 |  |  | — |  |  | 1,192 |  |  | — |
Normalize tax rate 2 | (4,767) |  |  | 975 |  |  | (12,763) |  |  | 2,185 |
Adjusted Net Income | $ | 21,791 |  |  | $ | 23,131 |  |  | $ | 82,994 |  |  | $ | 84,597 |
Average diluted shares outstanding | 29,129 |  |  | 28,869 |  |  | 29,026 |  |  | 28,818 |
Diluted income per share | $ | 0.41 |  |  | $ | 0.48 |  |  | $ | 1.61 |  |  | $ | 1.68 |
Adjusted EPS per diluted share | $ | 0.75 |  |  | $ | 0.80 |  |  | $ | 2.86 |  |  | $ | 2.94 |

1 Represents tax indemnification payment owed to the former owner of STAHL for a tax refund received by CMCO in the quarter ended March 31, 2024 for periods prior to the acquisition of STAHL by CMCO.
2 Applies a normalized tax rate of 25% in fiscal 2024 and 22% in fiscal 2023 to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are 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 presenting Adjusted Diluted 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.
13

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Income to Adjusted EBITDA
($ in thousands)

| Three Months Ended March 31, |  | Year Ended March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Net income | $ | 11,809 |  |  | $ | 13,895 |  |  | $ | 46,625 |  |  | $ | 48,429 |
Add back (deduct): |  |  |  |  |  |  |
Income tax expense | 2,497 |  |  | 7,499 |  |  | 14,902 |  |  | 26,046 |
Interest and debt expense | 9,169 |  |  | 7,668 |  |  | 37,957 |  |  | 27,942 |
Investment (income) loss, net | (547) |  |  | (483) |  |  | (1,759) |  |  | (315) |
Foreign currency exchange loss (gain), net | 752 |  |  | (1,037) |  |  | 1,826 |  |  | (2,189) |
Other (income) expense, net | 1,757 |  |  | (73) |  |  | 7,597 |  |  | (2,072) |
Depreciation and amortization expense | 11,893 |  |  | 10,567 |  |  | 45,945 |  |  | 41,947 |
Acquisition deal and integration costs | 3 |  |  | 173 |  |  | 3,211 |  |  | 616 |
Business realignment costs | — |  |  | 848 |  |  | 1,867 |  |  | 5,140 |
Factory and warehouse consolidation costs | 545 |  |  | — |  |  | 744 |  |  | — |
Garvey contingent consideration | — |  |  | — |  |  | — |  |  | 1,230 |
Headquarter relocation costs | 175 |  |  | 681 |  |  | 2,059 |  |  | 996 |
Monterrey, MX new factory start-up costs | 3,734 |  |  | — |  |  | 4,489 |  |  | — |
Cost of debt repricing | 1,190 |  |  | — |  |  | 1,190 |  |  | — |
Adjusted EBITDA | $ | 42,977 |  |  | $ | 39,738 |  |  | $ | 166,653 |  |  | $ | 147,770 |
Net Sales | $ | 265,504 |  |  | $ | 253,843 |  |  | $ | 1,013,540 |  |  | $ | 936,240 |
Net income margin | 4.4 | % |  | 5.5 | % |  | 4.6 | % |  | 5.2 | %
Adjusted EBITDA Margin | 16.2 | % |  | 15.7 | % |  | 16.4 | % |  | 15.8 | %

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.
14

Columbus McKinnon Reports Record Sales, Gross Margin and Operating Profit in Fiscal 2024
May 29, 2024
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Leverage Ratio
($ in thousands)

|  | Year Ended March 31,
|  | 2024 |  | 2023
Net income |  | $ | 46,625 |  |  | $ | 48,429 |
Add back (deduct): |  |  |  |
Annualize EBITDA for the montratec acquisition 1 |  | 1,331 |  |  |
Annualize synergies for the montratec acquisition 1 |  | 73 |  |  |
Income tax expense |  | 14,902 |  |  | 26,046 |
Interest and debt expense |  | 37,957 |  |  | 27,942 |
Non-Cash Pension Settlement 2 |  | 4,984 |  |  | — |
Amortization of deferred financing costs |  | 2,349 |  |  | 1,721 |
Stock Compensation Expense |  | 12,039 |  |  | 10,425 |
Depreciation and amortization expense |  | 45,945 |  |  | 41,947 |
Acquisition deal and integration costs |  | 3,211 |  |  | 616 |
Business realignment costs |  | 1,867 |  |  | 5,140 |
Factory and warehouse consolidation costs |  | 744 |  |  | — |
Garvey contingent consideration |  | — |  |  | 1,230 |
Headquarter relocation costs |  | 2,059 |  |  | 996 |
Monterrey, MX new factory start-up costs |  | 4,489 |  |  | — |
Cost of debt repricing |  | 1,190 |  |  | — |
Non-Cash loss related to asset retirement |  | — |  |  | 175 |
Gain on Sale of Facility |  | — |  |  | (232) |
Credit Agreement Trailing Twelve Month Adjusted EBITDA |  | $ | 179,765 |  |  | $ | 164,435 |
Current portion of long-term debt and finance lease obligations |  | $ | 50,670 |  |  | $ | 40,604 |
Term loan, AR securitization facility and finance lease obligations |  | 479,566 |  |  | 430,988 |
Total debt |  | $ | 530,236 |  |  | $ | 471,592 |
Standby Letters of Credit |  | 15,368 |  |  | 14,921 |
Cash and cash equivalents |  | (114,126) |  |  | (133,176) |
Net Debt |  | $ | 431,478 |  |  | $ | 353,337 |
Net Leverage Ratio |  | 2.40x |  | 2.15x

1 EBITDA is normalized to include a full year of the acquired entity and assuming that deal related synergies are achieved for montratec in fiscal year 2024 and Dorner and Garvey in fiscal year 2023.
2 During the quarter ending December 31, 2023, certain employees in one of the Company's U.S. pension plans accepted an offer to settle their pension obligation with a lump sum payment. These lump sum settlements are one of the steps the Company is taking to terminate the plan by transferring the liabilities to a third-party.
Net Debt is defined in the credit agreement as total debt plus standby letters of credit, net of cash and cash equivalents. Net Leverage Ratio is defined as Net Debt divided by the Credit Agreement Trailing Twelve Month Adjusted EBITDA. Credit Agreement Trailing Twelve Month Adjusted EBITDA is defined as net income adjusted for interest expense, income taxes, depreciation, amortization, and other adjustments. Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are important for investors and other readers of the Company’s financial statements.
15