Columbus McKinnon Reports Financial Results for Third Quarter Fiscal Year 2021

Rhea-AI Summary

Columbus McKinnon Corporation (CMCO) reported its fiscal Q3 2021 results, revealing a revenue of $166.5 million, a 5.5% increase from the previous quarter, yet a 16.5% decrease year-over-year. Operating income was $10.4 million, reflecting a 50% decline. Free cash flow stood at $21.9 million. The company’s backlog grew 22% year-over-year to $152.4 million. For Q4 2021, CMCO expects sales between $175 million and $180 million.

Management expressed optimism for FY2022, citing improving demand and strategic initiatives aimed at enhancing operational efficiency.

Positive

• Revenue increased by 5.5% sequentially to $166.5 million.
• Backlog grew to $152.4 million, up 22% year-over-year.
• Free cash flow was strong at $21.9 million.

Negative

• Revenue decreased by 16.5% compared to the same quarter last year.
• Operating income fell by 50% year-over-year.
• Net income decreased by 56.8%, resulting in diluted EPS of $0.27.

Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion control products, technologies and services for material handling, today announced financial results for its fiscal year 2021 third quarter, which ended December 31, 2020.

Third Quarter Highlights

• Evolution of strategy and Columbus McKinnon Business System (CMBS) delivered solid operating results
• Revenue of $166.5 million was up 5.5% compared with the trailing second quarter
• Operating income was $10.4 million with adjusted operating income¹ of $11.2 million
• Strong cash generation of $25.0 million provided by operating activities; Free cash flow of $21.9 million²
• Backlog grew to $152.4 million, up 22% over prior-year period and 4% sequentially
• Pivoting to growth with focus on organic initiatives and acquisition pipeline

David Wilson, President and CEO of Columbus McKinnon, commented, “We delivered solid results in adverse conditions with revenue exceeding our expectations. Of note, our ability to generate cash was demonstrated with free cash flow² of $22 million. We are excited about what the future holds even as we continue to operate in a less than ideal external environment. We are optimistic that growth will accelerate in fiscal 2022 as demand improves and channel partners replenish inventories. Given current macroeconomic forecasts, we expect to return to more normalized revenue levels by this time next year. In the meantime, we are consistently strengthening our earnings power by driving operational excellence with tools such as 80/20. In fact, we have realized $9 million in contributions to operating income from these efforts this fiscal year.”

He continued, “Even as we have been navigating this complex environment, we are evolving our strategy, now defined as Blueprint for Growth 2.0. The Core Growth Framework we are creating is underpinned by the advancement of CMBS, which develops core competencies and enables us to scale. Our organic growth initiatives, which include improvements in customer experience, new product development, and channel expansion, are centered on our customers’ requirements for continuous improvement in productivity, safety and uptime. We are realizing success with our product launches and believe we are enhancing our competitive position in our markets. We are also actively working our acquisition pipeline and see the potential to expand our reach into growth markets by building on our expertise in intelligent motion for material handling.”

¹ Adjusted operating income is a non-GAAP measure. See the accompanying discussion and reconciliation table in this release regarding adjusted operating income.
² Free cash flow is a non-GAAP measure defined as cash from operations less capital expenditures. See the accompanying discussion and reconciliation found in the Additional Data table in this release.

Third Quarter Fiscal 2021 Sales

($ in millions)	Q3 FY 21				Q3 FY 20				Change				% Change
Net sales	$	166.5			$	199.4			$	(32.9)			(16.5)	%
U.S. sales	$	87.6			$	108.4			$	(20.8)			(19.2)	%
% of total	53		%		54		%
Non-U.S. sales	$	78.9			$	91.0			$	(12.1)			(13.3)	%
% of total	47		%		46		%

Compared with the prior-year period, lower volume reflects the global economic impact of the COVID-19 pandemic. A 0.8% price improvement in the U.S. modestly helped to offset volume declines. Outside the U.S., a $3.0 million, or 3.3%, positive impact from foreign currency translation and price improvement of 1.1% partially offset lower volumes.

Compared with the trailing second quarter, sales improved 5.5% with short cycle sales up 5.6% and project sales up 5.5%.

Third Quarter Fiscal 2021 Operating Results

($ in millions)	Q3 FY 21				Q3 FY 20				Change				% Change
Gross profit	$	55.3			$	67.9			$	(12.6)			(18.5)	%
Gross margin	33.2		%		34.0		%		(80) bps
Income from operations	$	10.4			$	20.9			$	(10.4)			(50.0)	%
Operating margin	6.3		%		10.5		%		(420) bps
Adjusted income from operations*	$	11.2			$	23.1			$	(12.0)			(51.8)	%
Adjusted operating margin*	6.7		%		11.6		%		(490) bps
Net income (loss)	$	6.6			$	15.3			$	(8.7)			(56.8)	%
Diluted EPS	$	0.27			$	0.63			$	(0.36)			(57.1)	%
Net income margin	4.0		%		7.6		%		(360) bps
Adjusted EBITDA*	$	18.1			$	30.4			$	(12.2)			(40.3)	%
Adjusted EBITDA margin*	10.9		%		15.2		%		(430) bps

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

Fourth Quarter Fiscal 2021 Outlook

The Company expects fourth quarter fiscal 2021 sales to be within a range of approximately $175 million to $180 million at current exchange rates.

Mr. Wilson concluded, “We are encouraged by early indications of an improving landscape and energized with the evolution of our strategy. We have many strengths to leverage as we shift our strategic lens to be more outside-in focused. Importantly, we have identified that there is significant potential to strengthen, grow, expand and even to reimagine our core. We look forward to providing an update on Blueprint for Growth 2.0 in the first quarter of fiscal 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 https://investors.columbusmckinnon.com. To listen to the archived call, dial 412-317-6671 and enter the passcode 13714791. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, February 4, 2021. Alternatively, an archived webcast of the call can be found on the Company’s website. In addition, a transcript of the call will be posted to the website once available.

About Columbus McKinnon

Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion control products, technologies, systems and services that efficiently and ergonomically move, lift, position and secure materials. Key products include hoists, actuators, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.

Safe Harbor Statement

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of Covid-19 and the Company’s efforts to reduce costs, maintain liquidity and generate cash in the current pandemic, the effectiveness of the Company’s 80/20 Process to simplify operations, the ability of the Company’s Operational Excellence initiatives to drive profitability, the Company’s ability to grow market share, the ability to achieve revenue expectations, global economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting 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
		December 31, 2020				December 31, 2019				Change
Net sales		$	166,547			$	199,355			(16.5)	%
Cost of products sold		111,232				131,483				(15.4)	%
Gross profit		55,315				67,872				(18.5)	%
Gross profit margin		33.2		%		34.0		%
Selling expenses		18,829				23,169				(18.7)	%
% of net sales		11.3		%		11.6		%
General and administrative expenses		19,859				17,960				10.6	%
% of net sales		11.9		%		9.0		%
Research and development expenses		3,038				2,628				15.6	%
% of net sales		1.8		%		1.3		%
Amortization of intangibles		3,142				3,229				(2.7)	%
Income from operations		10,447				20,886				(50.0)	%
Operating margin		6.3		%		10.5		%
Interest and debt expense		2,986				3,423				(12.8)	%
Investment (income) loss		(495)				(408)				21.3	%
Foreign currency exchange (gain) loss		602				188				220.2	%
Other (income) expense, net		144				199				(27.6)	%
Income (loss) before income tax expense (benefit)		7,210				17,484				(58.8)	%
Income tax expense (benefit)		616				2,234				(72.4)	%
Net income (loss)		$	6,594			$	15,250			(56.8)	%
Average basic shares outstanding		23,928				23,679				1.1	%
Basic income (loss) per share		$	0.28			$	0.64			(56.3)	%
Average diluted shares outstanding		24,201				24,031				0.7	%
Diluted income (loss) per share		$	0.27			$	0.63			(57.1)	%
Dividends declared per common share		$	0.06			$	0.06

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
		Nine Months Ended
		December 31, 2020				December 31, 2019				Change
Net sales		$	463,407			$	619,676			(25.2)	%
Cost of products sold		307,270				402,699				(23.7)	%
Gross profit		156,137				216,977				(28.0)	%
Gross profit margin		33.7		%		35.0		%
Selling expenses		56,087				68,801				(18.5)	%
% of net sales		12.1		%		11.1		%
General and administrative expenses		53,842				56,713				(5.1)	%
% of net sales		11.6		%		9.2		%
Research and development expenses		8,703				8,419				3.4	%
% of net sales		1.9		%		1.4		%
Loss on sales of businesses		—				176				NM
Amortization of intangibles		9,449				9,708				(2.7)	%
Income from operations		28,056				73,160				(61.7)	%
Operating margin		6.1		%		11.8		%
Interest and debt expense		9,192				11,034				(16.7)	%
Investment (income) loss		(1,429)				(939)				52.2	%
Foreign currency exchange (gain) loss		1,083				(518)				NM
Other (income) expense, net		20,081				618				3,149.4	%
Income (loss) before income tax expense (benefit)		(871)				62,965				NM
Income tax expense (benefit)		(392)				12,537				NM
Net income (loss)		$	(479)			$	50,428			NM
Average basic shares outstanding		23,871				23,581				1.2	%
Basic income (loss) per share		$	(0.02)			$	2.14			NM
Average diluted shares outstanding		23,871				23,925				(0.2)	%
Diluted income (loss) per share		$	(0.02)			$	2.11			NM
Dividends declared per common share		$	0.12			$	0.12

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
		December 31, 2020				March 31, 2020
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	187,626			$	114,450
Trade accounts receivable		94,177				123,743
Inventories		113,446				127,373
Prepaid expenses and other		18,850				17,180
Total current assets		414,099				382,746
Property, plant, and equipment, net		72,304				79,473
Goodwill		338,995				319,679
Other intangibles, net		221,741				217,962
Marketable securities		7,925				7,322
Deferred taxes on income		27,777				26,281
Other assets		64,545				59,809
Total assets		$	1,147,386			$	1,093,272
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable		$	49,576			$	57,289
Accrued liabilities		90,086				93,585
Current portion of long-term debt		4,450				4,450
Total current liabilities		144,112				155,324
Term loan and revolving credit facility		245,092				246,856
Other non-current liabilities		260,858				227,507
Total liabilities		650,062				629,687
Shareholders’ equity:
Common stock		240				238
Additional paid-in capital		293,869				287,256
Retained earnings		287,095				290,441
Accumulated other comprehensive loss		(83,880)				(114,350)
Total shareholders’ equity		497,324				463,585
Total liabilities and shareholders’ equity		$	1,147,386			$	1,093,272

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows – UNAUDITED
(In thousands)
		Nine Months Ended
		December 31, 2020				December 31, 2019
Operating activities:
Net income (loss)		$	(479)			$	50,428
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		21,203				21,991
Deferred income taxes and related valuation allowance		(7,344)				1,247
Net loss (gain) on sale of real estate, investments, and other		(1,262)				(602)
Stock based compensation		5,840				3,510
Amortization of deferred financing costs		1,986				1,782
Loss on sales of businesses		—				176
Non-cash pension settlement expense		18,933				—
Gain on sale of building		(2,638)				—
Non-cash lease expense		5,721				6,136
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures:
Trade accounts receivable		34,254				3,989
Inventories		20,786				10,870
Prepaid expenses and other		(1,564)				(3,224)
Other assets		545				726
Trade accounts payable		(8,764)				(3,013)
Accrued liabilities		(9,922)				(11,458)
Non-current liabilities		(5,347)				(12,306)
Net cash provided by (used for) operating activities		71,948				70,252
Investing activities:
Proceeds from sales of marketable securities		4,231				4,908
Purchases of marketable securities		(4,067)				(4,961)
Capital expenditures		(5,904)				(6,761)
Proceeds from sale of building, net of transaction costs		5,453				—
Proceeds from insurance reimbursement		100				—
Dividend received from equity method investment		587				—
Proceeds from sale of fixed assets		446				51
Net (payments) proceeds from sales of businesses		—				(214)
Net cash provided by (used for) investing activities		846				(6,977)
Financing activities:
Proceeds from issuance of common stock		1,828				4,457
Borrowings under line-of-credit agreements		25,000				—
Payments under line-of-credit agreements		(25,000)				—
Repayment of debt		(3,338)				(50,000)
Fees paid for revolver extension		(826)				—
Payment of dividends		(4,294)				(4,245)
Other		(1,050)				(643)
Net cash provided by (used for) financing activities		(7,680)				(50,431)
Effect of exchange rate changes on cash		8,062				77
Net change in cash and cash equivalents		73,176				12,921
Cash, cash equivalents, and restricted cash at beginning of year		114,700				71,343
Cash, cash equivalents, and restricted cash at end of period		$	187,876			$	84,264

COLUMBUS McKINNON CORPORATION
Q3 FY 2021 Sales Bridge
		Quarter							Year To Date
($ in millions)		$ Change				% Change			$ Change				% Change
Fiscal 2020 Sales		$	199.4						$	619.7
Volume		(37.8)				(19.0)	%		(166.3)				(26.8)	%
Pricing		1.9				1.0	%		6.7				1.1	%
Foreign currency translation		3.0				1.5	%		3.3				0.5	%
Total change		$	(32.9)			(16.5)	%		$	(156.3)			(25.2)	%
Fiscal 2021 Sales		$	166.5						$	463.4

COLUMBUS McKINNON CORPORATION
Q3 FY 2021 Gross Profit Bridge
($ in millions)		Quarter				Year To Date
Fiscal 2020 Gross Profit		$	67.9			$	217.0
Pricing, net of material cost inflation		1.9				6.6
Gain on sale of building		—				2.2
Tariffs		0.2				1.6
Foreign currency translation		1.1				1.3
Product liability		(0.1)				(0.1)
Business realignment costs		(0.1)				(0.3)
Insurance settlement		(0.1)				(0.4)
Factory closures		0.4				(1.2)
Productivity, net of other cost changes		(3.1)				(11.4)
Sales volume and mix		(12.8)				(59.2)
Total change		$	(12.6)			$	(60.9)
Fiscal 2021 Gross Profit		$	55.3			$	156.1

U.S. Shipping Days by Quarter
								Q1				Q2				Q3				Q4				Total
FY 21								63				64				61				63				251
FY 20								63				63				61				64				251

COLUMBUS McKINNON CORPORATION
Additional Data – UNAUDITED
		December 31, 2020					September 30, 2020					March 31, 2020					December 31, 2019
($ in millions)
Backlog		$	152.4				$	146.6				$	131.0				$	125.3
Long-term backlog
Expected to ship beyond 3 months		$	62.1				$	60.8				$	49.1				$	51.3
Long-term backlog as % of total backlog		40.7			%		41.5			%		37.5			%		40.9			%
Trade accounts receivable
Days sales outstanding		51.5			days		53.4			days		59.4			days		57.2			days
Inventory turns per year
(based on cost of products sold)		3.9			turns		3.6			turns		3.9			turns		3.9			turns
Days' inventory		93.1			days		100.5			days		94.3			days		94.0			days
Trade accounts payable
Days payables outstanding		40.6			days		33.7			days		42.3			days		32.1			days
Working capital as a % of sales (1)		13.3			%		14.1			%		14.5			%		16.5			%
Net cash provided by (used for) operating activities		$	25.0				$	37.4				$	36.5				$	32.4
Capital expenditures		$	3.1				$	1.7				$	2.7				$	1.9
Free cash flow (2)		$	21.9				$	35.7				$	33.9				$	30.5
Debt to total capitalization percentage		33.4			%		36.4			%		35.2			%		34.2			%
Debt, net of cash, to net total capitalization		11.1			%		15.6			%		22.8			%		25.7			%

⁽¹⁾ December 31, 2019 figure excludes Crane Equipment & Service, Inc. (CES) and Stahlhammer Bommern GmbH (STB), each of which were divested on February 28, 2019.

⁽²⁾ Free cash flow is defined as cash from operations less capital expenditures. Free cash flow is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as free cash flow, is important for investors and other readers of the Company’s financial statements.

Components may not add due to rounding.

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
	Three Months Ended December 31,								Nine Months Ended December 31,
	2020				2019				2020				2019
GAAP gross profit	$	55,315			$	67,872			$	156,137			$	216,977
Add back (deduct):
Factory closures	250				696				2,671				1,451
Business realignment costs	237				123				566				263
Insurance settlement	—				(77)				—				(367)
Gain on sale of building	—				—				(2,189)				—
Non-GAAP adjusted gross profit	$	55,802			$	68,614			$	157,185			$	218,324
Sales	$	166,547			$	199,355			$	463,407			$	619,676
Gross margin - GAAP	33.2		%		34.0		%		33.7		%		35.0		%
Adjusted gross margin - Non-GAAP	33.5		%		34.4		%		33.9		%		35.2		%

Adjusted gross profit is defined as gross profit as reported, adjusted for certain items. Adjusted gross profit is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted gross profit, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's gross profit to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit to that of other companies.

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations
($ in thousands, except per share data)
	Three Months Ended December 31,								Nine Months Ended December 31,
	2020				2019				2020				2019
GAAP income from operations	$	10,447			$	20,886			$	28,056			$	73,160
Add back (deduct):
Factory closures	469				1,592				3,472				3,089
Business realignment costs	237				662				1,058				1,075
Insurance recovery legal costs	—				66				229				425
Loss on sales of businesses	—				—				—				176
Insurance settlement	—				(77)				—				(367)
Gain on sale of building	—				—				(2,638)				—
Non-GAAP adjusted income from operations	$	11,153			$	23,129			$	30,177			$	77,558
Sales	$	166,547			$	199,355			$	463,407			$	619,676
Operating margin - GAAP	6.3		%		10.5		%		6.1		%		11.8		%
Adjusted operating margin - Non-GAAP	6.7		%		11.6		%		6.5		%		12.5		%

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 December 31,								Nine Months Ended December 31,
	2020				2019				2020				2019
GAAP net income (loss)	$	6,594			$	15,250			$	(479)			$	50,428
Add back (deduct):
Non-cash pension settlement expense	—				—				19,046				—
Factory closures	469				1,592				3,472				3,089
Business realignment costs	237				662				1,058				1,075
Insurance recovery legal costs	—				66				229				425
Loss on sales of businesses	—				—				—				176
Insurance settlement	—				(77)				—				(367)
Gain on sale of building	—				—				(2,638)				—
Normalize tax rate to 22% (1)	(1,126)				(2,106)				(4,857)				(2,283)
Non-GAAP adjusted net income	$	6,174			$	15,387			$	15,831			$	52,543
Average diluted shares outstanding	24,201				24,031				24,088				23,925
Diluted income (loss) per share - GAAP	$	0.27			$	0.63			$	(0.02)			$	2.11
Diluted income per share - Non-GAAP	$	0.26			$	0.64			$	0.66			$	2.20

⁽¹⁾ Applies a normalized tax rate of 22% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted net income and diluted EPS, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's net income and diluted EPS to the historical periods' net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies.

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
	Three Months Ended December 31,								Nine Months Ended December 31,
	2020				2019				2020				2019
GAAP net income (loss)	$	6,594			$	15,250			$	(479)			$	50,428
Add back (deduct):
Income tax expense (benefit)	616				2,234				(392)				12,537
Interest and debt expense	2,986				3,423				9,192				11,034
Investment (income) loss	(495)				(408)				(1,429)				(939)
Foreign currency exchange (gain) loss	602				188				1,083				(518)
Other (income) expense, net	144				199				20,081				618
Depreciation and amortization expense	6,993				7,244				21,203				21,991
Factory closures	469				1,592				3,472				3,089
Business realignment costs	237				662				1,058				1,075
Insurance recovery legal costs	—				66				229				425
Loss on sales of businesses	—				—				—				176
Insurance settlement	—				(77)				—				(367)
Gain on sale of building	—				—				(2,638)				—
Non-GAAP adjusted EBITDA	$	18,146			$	30,373			$	51,380			$	99,549
Sales	$	166,547			$	199,355			$	463,407			$	619,676
Net income (loss) margin - GAAP	4.0		%		7.6		%		(0.1)		%		8.1		%
Adjusted EBITDA margin - Non-GAAP	10.9		%		15.2		%		11.1		%		16.1		%

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted EBITDA, is important for investors and other readers of the Company’s financial statements.

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FAQ

What were Columbus McKinnon's Q3 2021 financial results?

In Q3 2021, Columbus McKinnon reported revenue of $166.5 million, a 16.5% decline year-on-year, with operating income of $10.4 million.

What is Columbus McKinnon's outlook for Q4 2021?

The company expects Q4 2021 sales to range from approximately $175 million to $180 million.

How did Columbus McKinnon's backlog perform in the latest quarter?

The backlog grew to $152.4 million, representing a 22% increase compared to the prior year.

What are the key challenges Columbus McKinnon faced in Q3 2021?

Columbus McKinnon faced a 16.5% year-over-year revenue decline primarily due to the global impact of the COVID-19 pandemic.