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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 25, 2023

COLUMBUS MCKINNON CORPORATION
(Exact name of registrant as specified in its charter)

New York
(State or other jurisdiction of incorporation)
001-34362   16-0547600
(Commission File Number)   (IRS Employer Identification No.)
 
205 Crosspoint Parkway Buffalo NY 14068
(Address of principal executive offices) (Zip Code)

Registrant's telephone number including area code: (716) 689-5400
 
_________________________________________________

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value per share CMCO Nasdaq Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging Growth Company

If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On May 25, 2023, the registrant issued a press release announcing its financial results for the fourth quarter, which ended March 31, 2023. The press release is annexed as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 REGULATION FD DISCLOSURE.

The slides used during the earnings call are annexed as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in this Form 8-K and the Exhibits annexed hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such filing.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d)  Exhibits.
EXHIBIT
NUMBER		    DESCRIPTION
        
  
Press Release dated May 25, 2023
Earnings call slides dated May 25, 2023
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


COLUMBUS McKINNON CORPORATION
     
By: /s/ Gregory P. Rustowicz
Name: Gregory P. Rustowicz
Title: Executive Vice President - Finance and Chief Financial Officer
   (Principal Financial Officer)

Dated:  May 25, 2023

EX-99.1 2 exhibit9915252023.htm EX-99.1 Document

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

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

BUFFALO, NY, May 25, 2023 - 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 31st
•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
Columbus McKinnon Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 2 of 14
May 25, 2023
Fourth Quarter Fiscal 2023 Sales
($ 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.”

Columbus McKinnon Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 3 of 14
May 25, 2023
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.

Contacts:
Gregory P. Rustowicz Investor Relations:
Executive Vice President - Finance and Chief Financial Officer Deborah K. Pawlowski
Columbus McKinnon Corporation
 Kei Advisors LLC
716-689-5442 716-843-3908
greg.rustowicz@cmworks.com dpawlowski@keiadvisors.com

Financial tables follow.

Columbus McKinnon Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 4 of 14
May 25, 2023
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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 5 of 14
May 25, 2023
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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 6 of 14
May 25, 2023
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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 7 of 14
May 25, 2023
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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 8 of 14
May 25, 2023
COLUMBUS McKINNON CORPORATION
Q4 FY 2023 Sales Bridge
Quarter Year To Date
($ 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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 9 of 14
May 25, 2023
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
  March 31, 2023 December 31, 2022 March 31, 2022
($ 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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 10 of 14
May 25, 2023
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ 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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 11 of 14
May 25, 2023
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations
($ 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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 12 of 14
May 25, 2023
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Diluted Earnings per Share
($ 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 Reports Record Sales of $253.8 Million and Delivers Record Operating Income for Fourth Quarter Fiscal 2023
Page 13 of 14
May 25, 2023
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ 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.

EX-99.2 3 cmcoq4fy23financialresul.htm EX-99.2 cmcoq4fy23financialresul
Q4 and Fiscal Year 2023 Financial Results Conference Call President & Chief Executive Officer David J. Wilson May 25, 2023 Executive VP – Finance & Chief Financial Officer Gregory P. Rustowicz

 
© 2023 COLUMBUS MCKINNON CORPORATION These slides, and the accompanying oral discussion (together, this “presentation”), contain “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 including revenue guidance, gross margin improvements, and reduction of RSG&A as a percent of revenue; 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 presentation. Non-GAAP Financial Measures and Forward-looking Non-GAAP Measures This presentation will discuss some non-GAAP (“adjusted”) financial measures which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results compared in accordance with GAAP. The non-GAAP (“adjusted”) measures are noted and reconciliations of comparable GAAP with non-GAAP measures can be found in tables included in the Supplemental Information portion of this presentation. Safe Harbor Statement 2

 
© 2023 COLUMBUS MCKINNON CORPORATION 3 Proof Points of Progress Solid execution drives record performance for fiscal 2023 and fourth quarter Record sales, gross margin, operating income and Adjusted EPS for fiscal 2023 • FY23 sales of $936.2 million or $966.8 million on constant currency basis, up 7% • Record annual gross margin of 36.5% and cost discipline delivered record operating income of $97.8 million, up 33% • Net income grew 63% to $48.4 million, or $1.68 per diluted share; adjusted EPS reached fiscal year record of $2.94 Executing with CMBS • Improved delivery performance and increased the quality of backlog • Orders up 14% sequentially compared with the third quarter • Capitalizing on megatrends: automation, industrial productivity and regionalization Focused on Delivering an Improved Customer Experience and Achieving Top-tier Performance Strong cash from operations: $83.6 million for the year • Record quarterly cash from operations of $66.7 million • Paid down $40.6 million in debt in FY23 • Reduced net debt leverage ratio to 2.2x(1) (1) On A financial covenant basis per Amended and Restated Credit Agreement

 
© 2023 COLUMBUS MCKINNON CORPORATION Increasing Customer Engagement and Creating Efficiencies through Digital Tools Unlocking Potential: Productivity & Engagement 4 E2E DIGITAL ENABLEMENT Initiative Status Comments CRM: Case Management and Sales, Leads, Marketing Implemented in Conveying (globally) and Lifting (US & Canada) Advanced Call Center Initiated for Conveying; integrating with sales management system Integrated Customer Portal Launched in US & Canada: multi-brand, multi-product platform, highly system integrated ERP Implementation Implemented in Künzelsau, Germany, Mexico, Panama Improved Data Analytics Implemented data warehouse and BI tools for key data across ~90% of CMCO Centralized Global Website Regionalized for Mexico, Brazil, Canada, UK, Switzerland, Germany & France On Target In progress Needs work Improving the Customer Experience

 
© 2023 COLUMBUS MCKINNON CORPORATION 5 Unlocking Potential: Simplification with 80/20 Simplification: Lifting & Linear Motion Product and Brand Evolution Enables Growth and Reduces Complexity Past SKU’s Purchased Components Brand Positioning Brand Simplification By Product Platform By Brand Promise 15 7 50,000 WRH Platforms 450,000 100,000 11 2 15,000 By Product Platform 15 22,000 239,000 5 Present Future ECH Platforms 12 510

 
© 2023 COLUMBUS MCKINNON CORPORATION 6 Unlocking Potential: Profitable Growth Acquiring montratec® Differentiated Technology in Secular Growth Markets; Expanding Conveyance Platform in Europe Revenue Profile • Develops and manufactures logistics solutions connecting robots and workspaces • Located near Stuttgart, Germany with 30% growth rates and mid-20% EBITDA margins • Attractive markets – EV market expansion, growth in Electronics, Semiconductors and Life Sciences – 2,500 installations worldwide • Differentiated solutions – asynchronous movement, cleanroom certification, speed, space saving, Industry 4.0 controls, low energy consumption, easier change outs and faster set-up • Technology driven organization – advanced software capabilities, robust NPD pipeline, talented engineering team, patented technologies • Record Q1 CY23 orders – strong backlog supports expected growth 60%20% 20% Europe U.S. APAC 80% 20% Direct Systems Integrators 35% 28% 22% 11% 4% Auto/EV Semi/Elec Life Sci Other Aero

 
© 2023 COLUMBUS MCKINNON CORPORATION 7 Unlocking Potential: Operational Performance Continued progress with gross margin expansion Expect to Steadily Improve Gross Margin 50 bps to 100 bps Annually ADJUSTED GROSS MARGIN PROGRESSION Annual Improvements • Operational Excellence • Volume/scale/pricing • Product line simplification Strategic Initiatives • Accretive acquisitions • Factory simplification GROSS MARGIN LEVERS 33.7% 35.0% 35.4% 34.1% 36.1% 36.5% ~40% FY18 FY19 FY20 FY21 FY22 FY23 FY27E

 
© 2023 COLUMBUS MCKINNON CORPORATION Net Sales Delivered Record Sales in Q4 FY23 Quarter Sales Bridge • U.S.: 6.3% pricing increase and 6.0% volume decrease • Non-U.S.: 4.9% pricing and 0.8% volume decrease 8 Q4 sales up 1.8% on constant currency from prior-year $253.4 $220.3 $231.7 $230.4 $253.8 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 ($ in millions) Note: Components may not add to totals due to rounding Quarter ($ in millions) $ Change % Change Fiscal 2022 Sales $ 253.4 Volume (9.9) (3.9)% Pricing 14.5 5.7% Foreign currency translation (4.2) (1.7)% Total change $ 0.4 0.2% Fiscal 2023 Sales $ 253.8

 
© 2023 COLUMBUS MCKINNON CORPORATION 9 Gross Profit & Margin Quarter Gross Profit Bridge Achieved Record Gross Margin in FY23 $85.5 $82.5 $86.3 $82.0 $91.2 33.7% 37.5% 37.2% 35.6% 35.9% 34.8% 37.5% 37.2% 35.6% 35.9% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Adjusted Gross Margin ($ in millions) Note: Components may not add to totals due to rounding ($ in millions) Quarter Fiscal 2022 Gross Profit $ 85.5 Price, net of material cost inflation 9.2 Prior year acquisition amortization of backlog 1.7 Prior year acquisition inventory step-up expense 1.5 Tariffs 0.5 Productivity, net of other cost changes (0.5) Foreign currency translation (1.3) Sales volume and mix (5.4) Total change 5.7 Fiscal 2023 Gross Profit $ 91.2

 
© 2023 COLUMBUS MCKINNON CORPORATION 10 RSG&A $27.1 $26.2 $25.6 $25.4 $25.3 $23.6 $21.9 $21.4 $25.1 $26.4 $4.1 $5.1 $5.5 $4.8 $5.5 $54.8 $53.2 $52.5 $55.4 $57.2 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Selling G&A R&D Q/Q Comparison: • NPD Investments of $0.7M • Adjustment to annual incentive comp accrual of $2.8 million offset by Garvey contingent consideration of $1.2 million Y/Y Comparison: • Adjustment to annual incentive and stock comp estimates of $2.9 million • HQ relocation expenses of $0.7 million • Offset by $0.8 million benefit of FX Expect Q1FY24 RSG&A of approximately $56 million including one month of montratec (1)RSG&A guidance provided May 25, 2023. Excludes business realignment, integration, acquisitions and other one-time costs Note: Components may not add to totals due to rounding RSG&A as % of sales: 22.5% Targeting 21% RSG&A as Percent of Sales(1) with ~50 bps Improvement Annually ($ in millions) 21.6% 22.7% 24.1%24.1%

 
© 2023 COLUMBUS MCKINNON CORPORATION 11 Operating Income Record Q4 FY23 operating income up 14% y/y; operating margin expanded 130 bps to 10.8% • Margin and profit improvement reflect pricing • More than offset impact of lower volume and less favorable mix and higher RSG&A Record adjusted operating income up 2% y/y with adjusted operating margin of 11.5% • Expanded adjusted operating margin 30 bps Expect Q1 FY24 amortization expense of approximately $6.8 million including one month of montratec(1) Achieved Record Operating Income for Quarter and Fiscal 2023 Operating Income & Margin Adjusted Operating Income & Margin $28.6 $24.6 $28.6 $23.5 $29.2 11.2% 11.1% 12.4% 10.2% 11.5% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 $24.1 $22.8 $27.4 $20.2 $27.5 9.5% 10.4% 11.8% 8.8% 10.8% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 ($ in millions) (1)Guidance on amortization expense provided on May 25, 2023

 
© 2023 COLUMBUS MCKINNON CORPORATION $0.41 $0.29 $0.49 $0.42 $0.48 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 12 Earnings Per Share Adjusted EPS GAAP Diluted EPS $0.79 $0.69 $0.73 $0.72 $0.80 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY23 GAAP net income grew 17% to $13.9 million, up $0.07 per diluted share y/y • Strong operating income and benefit of FX gain more than offset $2.3 million increase in interest expense Adj. net income of $23.1 million in the quarter Add backs (pre-tax): • $6.6 million of amortization of intangibles • $1.5 million of business realignment & HQ move costs • $0.2 million acquisition deal & integration costs Guidance: • FY24 non-GAAP adjusted tax rate: 25%(1) • Q1 FY24 interest expense: ~$9.0 million(1) • Q1 FY24 diluted shares outstanding: ~29.0 million(1) (1)Guidance on tax rate, interest expense, FX and investment losses and number of diluted shares outstanding provided on May 25, 2023 FY23 Adjusted Earnings per Share Grew 4%

 
© 2023 COLUMBUS MCKINNON CORPORATION 13 Adjusted EBITDA and Margin Adjusted EBITDA & ROIC Return on Invested Capital (ROIC)(1) 6.6% 7.5% 7.0% FY21 FY22 FY23 (1)ROIC is a non-GAAP measure defined as adjusted income from operations, net of taxes at a 22% normalized rate, for the trailing four quarters divided by the average of debt plus equity less cash (average capital) for the trailing five quarters. Focused on Key Metrics to Drive Profitable Growth and Transform the Business $77.2 $140.1 $147.8 11.9% 15.4% 15.8% FY21 FY22 FY23

 
© 2023 COLUMBUS MCKINNON CORPORATION $97.4 $86.6 $35.8 $71.0 163% 951% 121% 147% FY20 FY21 FY22 FY23 14 Free Cash Flow & Conversion (2) Cash Flow Note: Components may not add to totals due to rounding Three Months Ended Year Ended 3/31/23 3/31/22 3/31/23 3/31/22 Net cash provided by operating activities $66.7 $25.2 $83.6 $48.9 CapEx (3.1) (3.6) (12.6) (13.1) Free cash flow (FCF) $63.6 $21.6 $71.0 $35.8 (1)Capital expenditure guidance provided May 25, 2023. (2)See Supplemental Slides for the definition of free cash flow, free cash flow conversion reconciliation and other disclaimers regarding non-GAAP information. Record quarter for cash generation • Included $7.6 million from e-commerce customer FY24 CapEx expected to be $30 million to $40 million (1) • Investments enable factory simplification, productivity and lower cost center of excellence Delivered Record Free Cash Flow in Quarter and 147% FCF Conversion for the Fiscal Year ($ in millions)

 
© 2023 COLUMBUS MCKINNON CORPORATION 15 Capital Structure Net debt leverage ratio of ~2.2x(1) • Net debt to net total capital improved 500 bps y/y to 28.9% • Proforma leverage of 2.7x following montratec acquisition • Plan to continue to pay down debt and grow EBITDA • Expect net leverage of ~2.5x by end of fiscal year Paid down $40.6 million in debt in FY23 • Expect to pay down another $40 million in FY24 • ~60% of Term Loan B debt is currently hedged Financial flexibility with $218 million of liquidity • Upsized revolver to $175 million to finance acquisition • Accounts receivable securitization in process Flexible Capital Structure and Solid Balance Sheet Supports Strategy Execution CAPITALIZATION March 31, 2023 March 31, 2022 Cash and cash equivalents $ 133.2 $ 115.4 Total debt 471.6 511.2 Total net debt 338.4 395.8 Shareholders’ equity 833.8 772.8 Total capitalization $ 1,305.4 $ 1,284.0 Debt/total capitalization 36.1% 39.8% Net debt/net total capitalization 28.9% 33.9% ($ in millions) Note: Components may not add to totals due to rounding (1)On a financial covenant basis per Amended and Restated Credit Agreement

 
© 2023 COLUMBUS MCKINNON CORPORATION 16 Orders Reflect Normalizing Demand Backlog Steady Y/Y at $308.7 million Orders and Backlog • Orders improved 14% sequentially driven by oil & gas, transportation, metals processing and entertainment • Negative FX impact of $4.6 million y/y • Strong pipeline of quotation activity • Short term backlog represents 70% of Q1 FY24 revenue guidance at mid-point of range • Backlog includes ~$10 million cancellation from major e-commerce customer Solid Backlog Entering Fiscal 2024 Supports Expected Growth $269.8 $267.1 $222.1 $215.0 $246.0 1.06x 1.21x 0.96x 0.93x 0.97x Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Orders Book:Bill (1)Long term backlog is expected to ship beyond three months $135.2 $162.8 $161.2 $164.7 $142.0 $173.9 $188.8 $166.6 $164.4 $166.7 $309.1 $351.6 $327.8 $329.1 $308.7 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Long Term Backlog Short Term Backlog (1) ($ in millions)

 
© 2023 COLUMBUS MCKINNON CORPORATION 17Executing Strategy to Create a Scalable Enterprise with Top-tier Margin Performance Executing to Deliver Strategic Plan Growth Objectives (1) Revenue guidance provided May 25, 2023 based on current exchange rates Outlook is encouraging • Expect Q1 FY24 net sales of approximately $235 million to $240 million (1) representing high single digit growth • Continue to expect FY24 organic growth in low-to-mid single digits • Steady demand across end markets; capturing key wins • Executing commercial initiatives and investing in innovation Advancing customer experience initiatives • Improving on time delivery; enhancing communications and responsiveness • Innovating with new product development • Expanding addressable markets and enabling market share opportunities Focused on execution and transformation strategy • Expect to achieve strategic plan objectives with measurable progress in FY24

 
Q4 Fiscal Year 2023 Financial Results Conference Call President & Chief Executive Officer David J. Wilson May 25, 2023 Executive VP – Finance & Chief Financial Officer Gregory P. Rustowicz

 
Supplemental Information

 
© 2023 COLUMBUS MCKINNON CORPORATION 20 Conference Call Playback Info Replay Number: 412-317-6671 passcode: 13738230 Telephone replay available through June 1, 2023 Webcast / PowerPoint / Replay available at investors.columbusmckinnon.com Transcript, when available, at investors.columbusmckinnon.com

 
© 2023 COLUMBUS MCKINNON CORPORATION 21 Adjusted Gross Profit Reconciliation 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. ($ in thousands) Quarter Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 GAAP gross profit $ 85,475 $ 82,519 $ 86,310 $ 82,044 91,218 Add back (deduct): Acquisition inventory step-up expense 1,546 — — — — Product liability settlement — — — — — Acquisition amortization of backlog 1,650 — — — — Business realignment costs — — — — — Non-GAAP adjusted gross profit $ 88,671 $ 82,519 $ 86,310 $ 82,044 $ 91,218 Sales $ 253,368 $ 220,287 $ 231,740 $ 230,370 $ 253,843 Add back: Acquisition amortization of backlog 1,650 — — — — Non-GAAP sales $ 255,018 $ 220,287 $ 231,740 $ 230,370 $ 253,843 Gross margin – GAAP 33.7% 37.5% 37.2% 35.6% 35.9% Adjusted gross margin – Non-GAAP 34.8% 37.5% 37.2% 35.6% 35.9%

 
© 2023 COLUMBUS MCKINNON CORPORATION 22 Adjusted Gross Profit Reconciliation 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. ($ in thousands) Fiscal Year 2019 2020 2021 2022 2023 GAAP gross profit $ 304,997 $ 283,186 $ 220,225 $ 315,730 $ 342,009 Add back (deduct): Product liability settlement — — — 2,850 — Acquisition amortization of backlog — — — 2,100 — Acquisition inventory step-up expense — — — 5,042 — Business realignment costs 286 1,037 830 1,606 — Acquisition deal and integration costs — — — 521 — Factory closures 1,473 2,800 2,671 — — Insurance settlement — (382) — — — Gain on sale of building — — (2,189) — — Non-GAAP adjusted gross profit $ 306,756 $ 286,641 $ 221,537 $ 327,849 $ 342,099 Sales $ 876,282 $ 809,162 $ 649,642 $ 906,555 $ 936,240 Add back: Acquisition amortization of backlog — — — 2,100 — Non-GAAP sales $ 876,282 $ 809,162 $ 649,642 $ 908,655 $ 936,240 Gross margin – GAAP 34.8% 35.0% 33.9% 34.8% 36.5% Adjusted gross margin – Non-GAAP 35.0% 35.4% 34.1% 36.1% 36.5%

 
© 2023 COLUMBUS MCKINNON CORPORATION 23 Adjusted Income from Operations Reconciliation 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. ($ in thousands) Quarter Fiscal Year Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 2022 2023 GAAP income from operations $ 24,059 $ 22,817 $ 27,372 $ 20,179 $ 27,469 $ 73,781 $ 97,841 Add back (deduct): Acquisition deal and integration costs 229 86 19 338 173 10,473 616 Acquisition inventory step-up expense 1,546 — — — — 5,042 — Business realignment costs 1,115 1,657 1,233 1,401 848 3,902 5,140 Garvey contingent consideration — — — 1,230 — — — Product liability settlement — — — — — 2,850 1,230 Headquarter relocation costs — — — 315 681 — 996 Acquisition amortization of backlog 1,650 — — — — 2,100 — Factory closures — — — — — — — Insurance recovery legal costs — — — — — — — Gain on sale of building — — — — — — — Non-GAAP adjusted income from operations $ 28,599 $ 24,560 $ 28,624 $ 23,463 $ 29,171 $ 98,148 $ 105,823 Sales $ 253,368 $ 220,287 $ 231,740 $ 230,370 $ 253,843 $ 906,555 $ 936,240 Add back: Acquisition amortization of backlog 1,650 — — — — 2,100 — Non-GAAP sales $ 255,018 $ 220,287 $ 231,740 $ 230,370 $ 253,843 $ 908,655 $ 936,240 Operating margin – GAAP 9.5% 10.4% 11.8% 8.8% 10.8% 8.1% 10.5% Adjusted operating margin – Non-GAAP 11.2% 11.1% 12.4% 10.2% 11.5% 10.8% 11.3%

 
© 2023 COLUMBUS MCKINNON CORPORATION 24 Adjusted Net Income Reconciliation (1)Applies 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 GAAP net income/(loss) 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/(loss) and diluted EPS to the historical periods' net income/(loss) and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income/(loss) 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. ($ in thousands, except per share data) Quarter Fiscal Year Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY 2022 FY 2023 GAAP net income (loss) $ 11,826 $ 8,391 $ 14,114 $ 12,029 $ 13,895 $ 29,660 $ 48,429 Add back (deduct): Amortization of intangibles 6,635 6,535 6,447 6,459 6,559 25,283 26,001 Cost of debt refinancing — — — — — 14,803 — Acquisition deal and integration costs 229 86 19 338 173 10,473 616 Acquisition inventory step-up expense 1,546 — — — — 5,042 — Business realignment costs 1,115 1,657 1,233 1,401 848 3,902 5,140 Product liability settlement — — — — — 2,850 — Garvey contingent consideration — — — 1,230 — — 1,230 Headquarter relocation costs — — — 315 681 — 996 Acquisition amortization of backlog 1,650 — — — — 2,100 — Non-cash pension settlement expense — — — — — — — Factory closures — — — — — — — Insurance recovery legal costs — — — — — — — Gain on sale of building — — — — — — — Normalize tax rate to 22%(1) (260) 3,269 (938) (1,123) 975 (13,852) 2,185 Non-GAAP adjusted net income $ 22,741 $ 19,938 $ 20,875 $ 20,649 $ 23,131 $ 80,261 $ 84,597 Average diluted shares outstanding 28,845 28,699 28,748 28,778 28,869 28,401 28,818 Diluted income (loss) per share – GAAP $ 0.41 $ 0.29 $ 0.49 $ 0.42 $ 0.48 $ 1.04 $ 1.68 Diluted income per share – Non-GAAP $ 0.79 $ 0.69 $ 0.73 $ 0.72 $ 0.80 $ 2.83 $ 2.94

 
© 2023 COLUMBUS MCKINNON CORPORATION 25 Adjusted EBITDA Reconciliation 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. ($ in thousands) Quarter Fiscal Year Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 2022 2023 GAAP net income (loss) $ 11,826 $ 8,391 $ 14,114 $ 12,029 $ 13,895 $ 29,660 $ 48,429 Add back (deduct): Income tax expense (benefit) 6,154 8,893 4,953 4,701 7,499 8,786 26,046 Interest and debt expense 5,352 6,203 6,768 7,303 7,668 20,126 27,126 Investment (income) loss 578 430 312 (574) (483) (46) (315) Foreign currency exchange (gain) loss 527 1,203 1,003 (3,359) (1,037) 1,574 (2,189) Other (income) expense, net (378) (2,303) 222 79 (73) (1,122) (2,072) Depreciation and amortization expense 10,679 10,469 10,424 10,487 10,567 41,924 41,947 Cost of debt refinancing — — — — — 14,803 — Acquisition deal and integration costs 229 86 19 338 173 10,473 616 Acquisition inventory step-up expense 1,546 — — — — 5,042 — Product liability settlement — — — — — 2,850 — Business realignment costs 1,115 1,657 1,233 1,401 848 3,902 5,140 Acquisition amortization of backlog 1,650 — — — — 2,100 — Factory closures — — — — — — — Insurance recovery legal costs — — — — — — — Garvey contingent consideration — — — 1,230 — — 1,230 Headquarter relocation costs — — — 315 681 — 996 Gain on sale of building — — — — — — — Non-GAAP adjusted EBITDA $ 39,278 $ 35,029 $ 39,048 $ 33,950 $ 39,738 $ 140,072 $ 147,770 Sales $ 253,368 $ 220,287 $ 231,740 $ 230,370 $ 253,843 $ 906,555 $ 936,240 Add back: Acquisition amortization of backlog 1,650 — — — — 2,100 — Non-GAAP sales $ 255,018 $ 220,287 $ 231,740 $ 230,370 $ 253,843 $ 908,655 $ 936,240 Net income (loss) margin – GAAP 4.7% 3.8% 6.1% 5.2% 5.5% 3.3% 5.2% Adjusted EBITDA margin – Non-GAAP 15.4% 15.9% 16.8% 14.7% 15.7% 15.4% 15.8%

 
© 2023 COLUMBUS MCKINNON CORPORATION 26 Return on Invested Capital (ROIC) Reconciliation ROIC is defined as adjusted income from operations, net of taxes at a 22% normalized rate, for the trailing four quarters divided by the average of debt plus equity less cash (average capital) for the trailing five quarters. ROIC 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 ROIC, is important for investors and other readers of the Company’s financial statements. ($ in thousands) Fiscal Year 2021 2022 2023 GAAP income from operations 42,255 73,781 97,841 Add back (deduct): Acquisition deal and integration costs 3,951 10,473 616 Acquisition inventory step-up expense — 5,042 — Product liability settlement — 2,850 — Acquisition amortization of backlog — 2,100 — Factory closures 3,778 — — Business realignment costs 1,470 3,902 5,140 Insurance recovery legal costs 229 — — Garvey contingent consideration — — 1,230 Headquarter relocation costs — — 996 Gain on sale of building (2,638) — — Non-GAAP adjusted income from operations $ 49,045 $ 98,148 $ 105,823 Non-GAAP adjusted income from operations, net of normalized tax rate of 22% $ 38,255 $ 76,555 $ 82,542 Trailing five quarter averages: Total debt 260,130 438,768 491,410 Total shareholders’ equity 487,523 701,640 795,410 Cash and cash equivalents 168,599 123,636 100,922 Net total capitalization $ 579,054 $ 1,016,772 $ 1,185,898 Return on invested capital (ROIC) – Non-GAAP 6.6% 7.5% 7.0%

 
© 2023 COLUMBUS MCKINNON CORPORATION Free Cash Flow (FCF) & FCF Conversion Reconciliation Free cash flow is defined as cash from operations minus capital expenditures. Free cash flow conversion is defined as free cash flow divided by net income. Free cash flow and free cash flow conversion 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 as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP information, such as free cash flow and free cash flow conversion, 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 cash flow to the historical periods’ cash flow, as well as facilitates a more meaningful comparison of the Company’s cash flow to that of other companies. 27 ($ in thousands) Fiscal Year 2021 2022 2023 Cash from operations $ 98,890 $ 48,881 $ 83,636 Capital expenditures (12,300) (13,104) (12,632) Free cash flow (FCF) $ 86,590 $ 35,777 $ 71,004 GAAP net income $ 9,106 $ 29,660 $ 48,429 Free cash flow conversion 951% 121% 147%

 
© 2023 COLUMBUS MCKINNON CORPORATION 28 U.S. Capacity Utilization Eurozone Capacity Utilization Industrial Capacity Utilization Source: The Federal Reserve Board Source: European Commission 60% 65% 70% 75% 80% Manufacturing Total 78.3% (Manufacturing) 79.7% (Total) Apr 2023(1) 65% 67% 69% 71% 73% 75% 77% 79% 81% 83% 85% 81.0% Q1 2023 (1) Numbers are preliminary

 
© 2023 COLUMBUS MCKINNON CORPORATION 29 ISM Production Index Source: Institute for Supply Chain Management 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 48.9% April 2023

 
© 2023 COLUMBUS MCKINNON CORPORATION 30 Business Model Transformation Innovation drives strategy and portfolio transformation Targeting $1.5 Billion In Revenue In Fiscal 2027 And ~21% EBITDA Margin Revenue Growth Rate EBITDA Margin Lifting Solutions 60% Specialty Conveying 16% Linear Motion 10% Automation 14% Lifting Solutions FY21 Lifting Solutions Specialty Conveying Linear Motion Automation Linear Motion & Automation FUTURE FY23

 
© 2023 COLUMBUS MCKINNON CORPORATION 31 Unlocking CMCO’s Potential Business System and Core Growth Framework to Transform CMCO Framework to Deliver Differentiated Growth, Financial Performance and Shareholder Value GROWTH FRAMEWORKCMBS TRANSFORMATION

 
Q4 Fiscal Year 2023 Financial Results Conference Call President & Chief Executive Officer David J. Wilson May 25, 2023 Executive VP – Finance & Chief Financial Officer Gregory P. Rustowicz