Columbus McKinnon Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023

BUFFALO, N.Y.--(BUSINESS WIRE)-- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2023 fourth quarter, which ended March 31, 2023.

Fiscal Year and Fourth Quarter 2023 Highlights (compared with prior year periods)

• Set records in fiscal 2023 for sales, gross margin and operating income
• Strong execution resulted in record fiscal 2023 sales of $936.2 million and record fourth quarter sales of $253.8 million; FX negatively impacted revenue by $30.6 million for the year
• Achieved record annual gross margin of 36.5%, a 170 basis point improvement; fourth quarter gross margin expanded 220 basis points to 35.9%
• Operational leverage drove operating income records of $97.8 million for the year and
  $27.5 million for the quarter
• Generated $83.6 million in cash from operations for the year; delivered $66.7 million in cash from operations in the quarter, strongest quarter on record
• Reduced net debt leverage ratio to 2.2x¹ providing ample flexibility for montratec^® acquisition expected to close by May 31^st
• Continue to expect low-to-mid single digit revenue growth in fiscal 2024 plus additional benefits of montratec acquisition

David J. Wilson, President and CEO, commented, “We delivered record sales, gross margin, and operating income for fiscal 2023 as the team successfully executes our strategy to transform Columbus McKinnon into a higher growth, less cyclical business with stronger earnings power. We are driving improvements through the discipline of CMBS which includes our 80/20 process and investments in robust digital tools and processes to improve our customers’ experience. Our fiscal year and fourth quarter results demonstrate another proof point along our path toward our fiscal 2027 financial goals of $1.5 billion in revenue with adjusted EBITDA margin of approximately 21%.”

He continued, “We are thrilled to add montratec^® to the portfolio as we enter fiscal 2024. montratec brings advanced automation technology to our precision conveying platform. With its rapid growth and attractive margin profile, montratec further propels our transformation. Importantly, our strong cash generation provides the financial flexibility to complete the acquisition and advance our strategy. We expect to close the deal in the next week.

“We are making substantial progress advancing our strategy and are executing to plan. I am excited about where we are headed as an enterprise.”

_____________________________
¹ On a financial covenant basis per Amended and Restated Credit Agreement

Fourth Quarter Fiscal 2023 Sales

($ in millions)	Q4 FY 23				Q4 FY 22				Change			% Change
Net sales	$	253.8			$	253.4			$	0.4		0.2	%
U.S. sales	$	149.4			$	149.0			$	0.4		0.3	%
% of total		59	%			59	%
Non-U.S. sales	$	104.4			$	104.4			$	—		—	%
% of total		41	%			41	%

For the quarter, sales increased $0.4 million, or 0.2%. Excluding a $4.2 million, or 1.7%, impact of foreign currency exchange, sales on a constant currency basis increased 1.8%. In the U.S., price improved $9.3 million, or 6.3%, which was partially offset by declining volume of $8.9 million, or 6.0%. Outside the U.S., price improved $5.1 million, or 4.9%, partially offset by declining volume of $0.9 million, or 0.8%.

Fourth Quarter Fiscal 2023 Operating Results

($ in millions)	Q4 FY 23				Q4 FY 22				Change			% Change
Gross profit	$	91.2			$	85.5			$	5.7		6.7	%
Gross margin		35.9	%			33.7	%		220 bps
Adjusted gross profit*	$	91.2			$	88.7			$	2.5		2.8	%
Adjusted gross margin*		35.9	%			34.8	%		110 bps
Income from operations	$	27.5			$	24.1			$	3.4		14.2	%
Operating margin		10.8	%			9.5	%		130 bps
Adjusted income from operations*	$	29.2			$	28.6			$	0.6		2.1	%
Adjusted operating margin*		11.5	%			11.2	%		30 bps
Net income (loss)	$	13.9			$	11.8			$	2.1		17.5	%
Net income (loss) margin		5.5	%			4.7	%		80 bps
Diluted EPS	$	0.48			$	0.41			$	0.07		17.1	%
Adjusted EPS*	$	0.80			$	0.79			$	0.01		1.3	%
Adjusted EBITDA*	$	39.7			$	39.3			$	0.4		1.0	%
Adjusted EBITDA margin*		15.7	%			15.4	%		30 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.

Adjusted earnings per diluted share were $0.80 in the fiscal 2023 fourth quarter compared with $0.79 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 2024 Outlook

Columbus McKinnon expects first quarter fiscal 2024 sales at current exchange rates to be in the range of

$235 million to $240 million including the first month of montratec, implying high-single digit growth at the mid-point of the range.

Mr. Wilson concluded, “We are encouraged by the opportunities we are identifying to grow our business at better than market rates. We are utilizing direct customer feedback to inform our actions, enhance customer experience and unlock the potential to earn greater market share. We are deepening our reach in more secular markets with enduring tailwinds and advancing our capabilities to sustain our leadership position in intelligent motion for material handling. We believe we are on track to deliver low-to-mid single digit revenue growth and further margin expansion in fiscal 2024.”

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 13738230. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, June 1, 2023. 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 expected growth, future sales and EBITDA margins, and future potential to deliver results; the execution of its strategy and further transformation of the Company with stronger growth, less cyclicality and higher margins, and achievement of certain goals. These statements 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 financial targets including revenue and adjusted EBITDA margin, and to execute CMBS and the Core Growth Framework; global economic and business conditions affecting the industries served by the Company and its subsidiaries including COVID-19; 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. Consequently, such forward-looking statements should be regarded as current plans, estimates and beliefs. The Company assumes no obligation to update the forward-looking information contained in this release.

Financial tables follow.

COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data)
		Three Months Ended
		March 31, 2023				March 31, 2022				Change
Net sales		$	253,843			$	253,368			0.2	%
Cost of products sold			162,625				167,893			(3.1	)%
Gross profit			91,218				85,475			6.7	%
Gross profit margin			35.9	%			33.7	%
Selling expenses			25,331				27,080			(6.5	)%
% of net sales			10.0	%			10.7	%
General and administrative expenses			26,353				23,633			11.5	%
% of net sales			10.4	%			9.3	%
Research and development expenses			5,506				4,068			35.3	%
% of net sales			2.2	%			1.6	%
Amortization of intangibles			6,559				6,635			(1.1	)%
Income from operations			27,469				24,059			14.2	%
Operating margin			10.8	%			9.5	%
Interest and debt expense			7,668				5,352			43.3	%
Investment (income) loss, net			(483	)			578			NM
Foreign currency exchange loss (gain), net			(1,037	)			527			NM
Other (income) expense, net			(73	)			(378	)		NM
Income before income tax expense			21,394				17,980			19.0	%
Income tax expense			7,499				6,154			21.9	%
Net income		$	13,895			$	11,826			17.5	%
Average basic shares outstanding			28,609				28,507			0.4	%
Basic income per share		$	0.49			$	0.41			19.5	%
Average diluted shares outstanding			28,869				28,845			0.1	%
Diluted income per share		$	0.48			$	0.41			17.1	%
Dividends declared per common share		$	0.14			$	0.13

COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data)
		Year Ended
		March 31, 2023				March 31, 2022				Change
Net sales		$	936,240			$	906,555			3.3	%
Cost of products sold			594,141				590,825			0.6	%
Gross profit			342,099				315,730			8.4	%
Gross profit margin			36.5	%			34.8	%
Selling expenses			102,528				99,187			3.4	%
% of net sales			11.0	%			10.9	%
General and administrative expenses			94,794				102,128			(7.2	)%
% of net sales			10.1	%			11.3	%
Research and development expenses			20,935				15,351			36.4	%
% of net sales			2.2	%			1.7	%
Amortization of intangibles			26,001				25,283			2.8	%
Income from operations			97,841				73,781			32.6	%
Operating margin			10.5	%			8.1	%
Interest and debt expense			27,942				20,126			38.8	%
Cost of debt refinancing			—				14,803			NM
Investment (income) loss, net			(315	)			(46	)		NM
Foreign currency exchange loss (gain), net			(2,189	)			1,574			NM
Other (income) expense, net			(2,072	)			(1,122	)		NM
Income before income tax expense			74,475				38,446			93.7	%
Income tax expense			26,046				8,786			196.4	%
Net income		$	48,429			$	29,660			63.3	%
Average basic shares outstanding			28,600				28,040			2.0	%
Basic income per share		$	1.69			$	1.06			59.4	%
Average diluted shares outstanding			28,818				28,401			1.5	%
Diluted income per share		$	1.68			$	1.04			61.5	%
Dividends declared per common share		$	0.28			$	0.25

COLUMBUS McKINNON CORPORATION Condensed Consolidated Balance Sheets (In thousands)
		March 31, 2023				March 31, 2022
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	133,176			$	115,390
Trade accounts receivable			151,451				147,515
Inventories			179,359				172,139
Prepaid expenses and other			32,254				31,545
Total current assets			496,240				466,589
Net property, plant, and equipment			94,360				97,926
Goodwill			644,629				648,849
Other intangibles, net			362,537				390,788
Marketable securities			10,368				10,294
Deferred taxes on income			2,035				2,313
Other assets			88,286				68,948
Total assets		$	1,698,455			$	1,685,707
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable		$	76,736			$	90,881
Accrued liabilities			124,317				118,187
Current portion of long-term debt and finance lease obligations			40,604				40,551
Total current liabilities			241,657				249,619
Term loan and finance lease obligations			430,988				470,675
Other non-current liabilities			192,013				192,610
Total liabilities			864,658				912,904
Shareholders’ equity:
Common stock			286				285
Treasury Stock			(1,001	)			—
Additional paid-in capital			515,797				506,074
Retained earnings			356,758				316,343
Accumulated other comprehensive loss			(38,043	)			(49,899	)
Total shareholders’ equity			833,797				772,803
Total liabilities and shareholders’ equity		$	1,698,455			$	1,685,707

COLUMBUS McKINNON CORPORATION Condensed Consolidated Statements of Cash Flows - UNAUDITED (In thousands)
		Year Ended
		March 31, 2023				March 31, 2022
Operating activities:
Net income		$	48,429			$	29,660
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization			41,947				41,924
Deferred income taxes and related valuation allowance			(300	)			(1,969	)
Net loss (gain) on sale of real estate, investments and other			(54	)			136
Stock-based compensation			10,425				11,246
Amortization of deferred financing costs			1,721				1,703
Loss (gain) on hedging instruments			(438	)			853
Cost of debt refinancing			—				14,803
Loss on retirement of fixed asset			175				—
Gain on sale of building			(232	)			(375	)
Non-cash lease expense			7,867				7,945
Changes in operating assets and liabilities, net of effects of business acquisitions:
Trade accounts receivable			(4,858	)			(18,988	)
Inventories			(9,087	)			(40,201	)
Prepaid expenses and other			6,667				(47	)
Other assets			(123	)			25
Trade accounts payable			(13,964	)			12,681
Accrued liabilities			9,150				696
Non-current liabilities			(13,689	)			(11,211	)
Net cash provided by (used for) operating activities			83,636				48,881
Investing activities:
Proceeds from sales of marketable securities			3,651				4,434
Purchases of marketable securities			(4,021	)			(7,130	)
Capital expenditures			(12,632	)			(13,104	)
Proceeds from sale of building, net of transaction costs			373				461
Proceeds from insurance reimbursement			—				482
Purchases of businesses, net of cash acquired			(1,616	)			(539,778	)
Dividend received from equity method investment			313				324
Net cash provided by (used for) investing activities			(13,932	)			(554,311	)
Financing activities:
Proceeds from issuance of common stock			713				2,655
Purchases of treasury stock			(1,001	)			—
Repayment of debt			(40,550	)			(477,846	)
Proceeds from issuance of long-term debt			—				725,000
Proceeds from equity offering			—				207,000
Fees related to debt and equity offering			—				(26,184	)
Cash inflows from hedging activities			24,495				19,417
Cash outflows from hedging activities			(24,221	)			(20,206	)
Payment of dividends			(8,008	)			(6,562	)
Other			(1,415	)			(2,574	)
Net cash provided by (used for) financing activities			(49,987	)			420,700
Effect of exchange rate changes on cash			(1,931	)			(2,007	)
Net change in cash and cash equivalents			17,786				(86,737	)
Cash, cash equivalents, and restricted cash at beginning of year			115,640				202,377
Cash, cash equivalents, and restricted cash at end of year		$	133,426			$	115,640

COLUMBUS McKINNON CORPORATION Q4 FY 2023 Sales Bridge
		Quarter							Year To Date
($ in millions)		$ Change				% Change			$ Change				% Change
Fiscal 2022 Sales		$	253.4						$	906.6
Acquisitions			—			—	%			22.4			2.5	%
Volume			(9.9	)		(3.9	)%			(9.2	)		(1.0	)%
Pricing			14.5			5.7	%			47.0			5.2	%
Foreign currency translation			(4.2	)		(1.7	)%			(30.6	)		(3.4	)%
Total change		$	0.4			0.2	%		$	29.6			3.3	%
Fiscal 2023 Sales		$	253.8						$	936.2

COLUMBUS McKINNON CORPORATION Q4 FY 2023 Gross Profit Bridge
($ in millions)	Quarter				Year To Date
Fiscal 2022 Gross Profit	$	85.5			$	315.7
Acquisitions		—				9.5
Price, net of material cost inflation		9.2				22.6
Prior year acquisition amortization of backlog		1.7				2.2
Prior year acquisition inventory step-up expense		1.5				5.0
Tariffs		0.5				0.6
Productivity, net of other cost changes		(0.5	)			(5.0	)
Foreign currency translation		(1.3	)			(10.8	)
Sales volume and mix		(5.4	)			(3.4	)
Business realignment costs		—				1.6
Acquisition integration costs		—				0.5
Product liability		—				0.7
Prior year product liability settlement		—				2.9
Total change		5.7				26.4
Fiscal 2023 Gross Profit	$	91.2			$	342.1

U.S. Shipping Days by Quarter
		Q1		Q2		Q3		Q4		Total
FY 24		63		62		61		62		248
FY 23		63		64		60		63		250
FY 22		63		64		61		63		251

COLUMBUS McKINNON CORPORATION Additional Data - UNAUDITED
		March 31, 2023				December 31, 2022				March 31, 2022
($ in millions)
Backlog		$	308.7			$	329.1			$	309.1
Long-term backlog
Expected to ship beyond 3 months		$	142.0			$	164.7			$	135.2
Long-term backlog as % of total backlog			46.0	%			50.0	%			43.7	%
Trade accounts receivable
Days sales outstanding			54.3	days			58.0	days			53.0	days
Inventory turns per year
(based on cost of products sold)			3.6	turns			3.0	turns			3.9	turns
Days' inventory			101.4	days			121.0	days			93.6	days
Trade accounts payable
Days payables outstanding			53.3	days			52.6	days			58.7	days
Working capital as a % of sales (2)			17.3	%			22.1	%			15.5	%
Net cash provided by (used for) operating activities		$	66.7			$	10.8			$	25.2
Capital expenditures		$	3.1			$	4.2			$	3.6
Free cash flow (1)		$	63.6			$	6.5			$	21.6
Debt to total capitalization percentage			36.1	%			37.3	%			39.8	%
Debt, net of cash, to net total capitalization			28.9	%			33.0	%			33.9	%

(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.

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,
		2023				2022				2023				2022
GAAP gross profit	$	91,218			$	85,475			$	342,099			$	315,730
Add back (deduct):
Acquisition inventory step-up expense		—				1,546				—				5,042
Product liability settlement		—				—				—				2,850
Acquisition amortization of backlog		—				1,650				—				2,100
Business realignment costs		—				—				—				1,606
Acquisition integration costs		—				—				—				521
Non-GAAP adjusted gross profit	$	91,218			$	88,671			$	342,099			$	327,849
Sales	$	253,843			$	253,368			$	936,240			$	906,555
Add back:
Acquisition amortization of backlog		—				1,650				—				2,100
Non-GAAP sales	$	253,843			$	255,018			$	936,240			$	908,655
Gross margin - GAAP		35.9	%			33.7	%			36.5	%			34.8	%
Adjusted gross margin - Non-GAAP		35.9	%			34.8	%			36.5	%			36.1	%

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

COLUMBUS McKINNON CORPORATION Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations ($ in thousands, except per share data)
	Three Months Ended March 31,								Year Ended March 31,
		2023				2022				2023				2022
GAAP income from operations	$	27,469			$	24,059			$	97,841			$	73,781
Add back (deduct):
Acquisition deal and integration costs		173				229				616				10,473
Acquisition inventory step-up expense		—				1,546				—				5,042
Business realignment costs		848				1,115				5,140				3,902
Product liability settlement		—				—				—				2,850
Garvey contingent consideration		—				—				1,230				—
Headquarter relocation costs		681				—				996				—
Acquisition amortization of backlog		—				1,650				—				2,100
Non-GAAP adjusted income from operations	$	29,171			$	28,599			$	105,823			$	98,148
Sales	$	253,843			$	253,368			$	936,240			$	906,555
Add back:
Acquisition amortization of backlog		—				1,650				—				2,100
Non-GAAP sales	$	253,843			$	255,018			$	936,240			$	908,655
Operating margin - GAAP		10.8	%			9.5	%			10.5	%			8.1	%
Adjusted operating margin - Non-GAAP		11.5	%			11.2	%			11.3	%			10.8	%

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

COLUMBUS McKINNON CORPORATION Reconciliation of GAAP Net Income and Diluted Earnings per Share to Non-GAAP Adjusted Net Income and Diluted Earnings per Share ($ in thousands, except per share data)
	Three Months Ended March 31,							Year Ended March 31,
		2023			2022				2023			2022
GAAP net income (loss)	$	13,895		$	11,826			$	48,429		$	29,660
Add back (deduct):
Amortization of intangibles		6,559			6,635				26,001			25,283
Cost of debt refinancing		—			—				—			14,803
Acquisition deal and integration costs		173			229				616			10,473
Acquisition inventory step-up expense		—			1,546				—			5,042
Business realignment costs		848			1,115				5,140			3,902
Product liability settlement		—			—				—			2,850
Acquisition amortization of backlog		—			1,650				—			2,100
Garvey contingent consideration		—			—				1,230			—
Headquarter relocation costs		681			—				996			—
Normalize tax rate to 22% (1)		975			(260	)			2,185			(13,852	)
Non-GAAP adjusted net income	$	23,131		$	22,741			$	84,597		$	80,261
Average diluted shares outstanding		28,869			28,845				28,818			28,401
Diluted income (loss) per share - GAAP	$	0.48		$	0.41			$	1.68		$	1.04
Diluted income per share - Non-GAAP	$	0.80		$	0.79			$	2.94		$	2.83

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

Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangible assets, and also adjusted for a normalized tax rate. Adjusted net income and diluted EPS are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as adjusted net income and diluted EPS, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year's net income and diluted EPS to the historical periods' net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that representing adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.

COLUMBUS McKINNON CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA ($ in thousands)
	Three Months Ended March 31,								Year Ended March 31,
		2023				2022				2023				2022
GAAP net income (loss)	$	13,895			$	11,826			$	48,429			$	29,660
Add back (deduct):
Income tax expense		7,499				6,154				26,046				8,786
Interest and debt expense		7,668				5,352				27,942				20,126
Investment (income) loss, net		(483	)			578				(315	)			(46	)
Foreign currency exchange loss (gain), net		(1,037	)			527				(2,189	)			1,574
Other (income) expense, net		(73	)			(378	)			(2,072	)			(1,122	)
Depreciation and amortization expense		10,567				10,679				41,947				41,924
Cost of debt refinancing		—				—				—				14,803
Acquisition deal and integration costs		173				229				616				10,473
Acquisition inventory step-up expense		—				1,546				—				5,042
Business realignment costs		848				1,115				5,140				3,902
Product liability settlement		—				—				—				2,850
Acquisition amortization of backlog		—				1,650				—				2,100
Garvey contingent consideration		—				—				1,230				—
Headquarter relocation costs		681				—				996				—
Non-GAAP adjusted EBITDA	$	39,738			$	39,278			$	147,770			$	140,072
Sales	$	253,843			$	253,368			$	936,240			$	906,555
Add back:
Acquisition amortization of backlog		—				1,650				—				2,100
Non-GAAP sales	$	253,843			$	255,018			$	936,240			$	908,655
Net income (loss) margin - GAAP		5.5	%			4.7	%			5.2	%			3.3	%
Adjusted EBITDA margin - Non-GAAP		15.7	%			15.4	%			15.8	%			15.4	%

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230525005240/en/

Gregory P. Rustowicz

Executive Vice President - Finance and Chief Financial Officer

Columbus McKinnon Corporation

716-689-5442

greg.rustowicz@cmworks.com



Investor Relations:

Deborah K. Pawlowski

Kei Advisors LLC

716-843-3908

dpawlowski@keiadvisors.com

Source: Columbus McKinnon Corporation