cmco-20210729
0001005229false00010052292021-07-292021-07-29

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): July 29, 2021

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 ParkwayBuffaloNY14068
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareCMCONasdaq 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 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 29, 2021, the registrant issued a press release announcing its financial results for the first quarter, which ended June 30, 2021. The press release is annexed as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01REGULATION 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 9.01FINANCIAL STATEMENTS AND EXHIBITS.

(d)  Exhibits.
EXHIBIT
NUMBER		  DESCRIPTION
      
  Press Release dated July 29, 2021
Earnings call slides dated July 29, 2021
104Cover 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:Vice President Finance and Chief Financial Officer
  (Principal Financial Officer)

Dated:  July 29, 2021


 imagea.jpg    
                            EXHIBIT 99.1
News Release
205 Crosspoint Parkway
Buffalo, NY 14068
Immediate Release     
Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
BUFFALO, NY, July 29, 2021 - Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2022 first quarter, which ended June 30, 2021. Results include the addition of Dorner Manufacturing Corporation, which was acquired on April 7, 2021.
First Quarter Highlights (compared with prior year period)
•Revenue of $213.5 million up 53%, supported by organic growth of 24%
•Gross margin expanded 250 bps to 34.7%; Achieved record adjusted gross margin of 36.3% with incremental 80 bps contribution from Dorner acquisition
•Operating margin expanded 370 bps to 5.0%; Adjusted operating margin expanded 750 bps to 11.1%
•Advancing Blueprint for Growth 2.0 strategy and focusing on growth initiatives
David Wilson, President and CEO of Columbus McKinnon, commented, “We had a very good start to fiscal 2022 delivering strong growth, expanding margins and achieving record backlog. We are encouraged by increasing demand in all markets. Importantly, we are also having success with our new products and customer solutions, as we continue to advance our Blueprint for Growth 2.0 strategy. Dorner, our new conveying solutions platform, is seeing strong demand and is outpacing expectations. We are working across the enterprise to drive growth initiatives as we pursue the many opportunities in front of us.”


Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
Page 2 of 12
July 29, 2021
First Quarter Fiscal 2022 Sales
($ in millions)Q1 FY 22Q1 FY 21Change% Change
Net sales$213.5 $139.1 $74.4 53.5 %
U.S. sales$124.5 $74.7 $49.8 66.7 %
     % of total58 %54 %
Non-U.S. sales$89.0 $64.4 $24.6 38.2 %
     % of total42 %46 %
For the quarter, sales increased $74.4 million, or 53.5%. The Dorner acquisition added $34.2 million in sales. In the U.S., volume improved $20.8 million, or 27.8%, and price improved $0.6 million, or 0.9%. U.S. sales related to the acquisition were $28.3 million. Outside the U.S., volume improved $10.5 million, or 16.4%, and price improved $1.3 million, or 2.0%. The Dorner acquisition added $5.9 million of sales outside the U.S. Foreign currency translation was favorable $6.9 million, or 5.0% of total sales.
First Quarter Fiscal 2022 Operating Results
($ in millions)
Q1 FY 22Q1 FY 21Change% Change
Gross profit$74.1 $44.8 $29.3 65.3 %
     Gross margin34.7 %32.2 %250 bps
Income from operations$10.7 $1.8 $9.0 500.7 %
     Operating margin5.0 %1.3 %370 bps
Adjusted income from operations*$23.6 $5.0 $18.6 371.2 %
     Adjusted operating margin*11.1 %3.6 %750 bps
Net income (loss)$(7.3)$(3.0)$(4.3)NM
     Net income (loss) margin(3.4)%(2.1)%(130) bps
Diluted EPS$(0.27)$(0.12)$(0.15)NM
Adjusted EPS*$0.69 $0.17 $0.52 305.9 %
Adjusted EBITDA*$34.1 $12.1 $22.0 181.8 %
     Adjusted EBITDA margin*16.0 %8.7 %730 bps
*Adjusted operating income, 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.
Dorner contributed $5.1 million in operating income excluding inventory step up expense of $3.0 million and acquisition deal costs of $1.0 million. Adjusted earnings per diluted share was $0.69 in the fiscal 2022 first quarter compared with $0.17 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.
Second Quarter Fiscal 2022 Outlook
The Company expects second quarter fiscal 2022 sales to be within a range of approximately $225 million to $230 million at current exchange rates.
Mr. Wilson concluded, “We are excited about the progress we are making and are increasingly encouraged by our potential over the longer term. With record backlog and increasing order trends, we expect to deliver a solid year of recovery even as we navigate the dynamic landscape of supply chain and staffing challenges. More importantly, we are making the investments necessary to execute on our strategy and implement the Columbus McKinnon Business System (“CMBS”) to drive further growth, enable scalability, improve our earnings power and achieve our goal of 19% adjusted EBITDA margin in fiscal 2023.”

Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
Page 3 of 12
July 29, 2021

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 412-317-6026. 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 10158268. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, August 5, 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 solutions that efficiently and ergonomically move, lift, position and secure materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.columbusmckinnon.com.
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the ability of the Company to integrate Dorner, the impact of supply chain and staffing challenges, the ability of the Company to achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the amount of integration costs and the Company’s efforts to reduce costs, maintain liquidity and generate cash, 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, the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the ability to expand into new markets and geographic regions, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the forward-looking information contained in this release.
Contacts:
Gregory P. RustowiczInvestor Relations:
Vice President - Finance and Chief Financial OfficerDeborah K. Pawlowski
Columbus McKinnon CorporationKei Advisors LLC
716-689-5442716-843-3908
[email protected][email protected]
Financial tables follow.

Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
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July 29, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
 
Three Months Ended
 June 30, 2021June 30, 2020Change
Net sales$213,464 $139,070 53.5 %
Cost of products sold139,401 94,273 47.9 %
Gross profit74,063 44,797 65.3 %
Gross profit margin34.7 %32.2 % 
Selling expenses23,482 18,695 25.6 %
% of net sales11.0 %13.4 %
General and administrative expenses30,143 18,429 63.6 %
% of net sales14.1 %13.3 %
Research and development expenses3,583 2,769 29.4 %
% of net sales1.7 %2.0 %
Amortization of intangibles6,109 3,115 96.1 %
Income from operations10,746 1,789 500.7 %
Operating margin5.0 %1.3 % 
Interest and debt expense5,812 3,188 82.3 %
Cost of debt refinancing14,803 — NM
Investment (income) loss(433)(577)(25.0)%
Foreign currency exchange (gain) loss94 84 11.9 %
Other (income) expense, net250 3,026 (91.7)%
Income (loss) before income tax expense (benefit)(9,780)(3,932)NM
Income tax expense (benefit)(2,517)(963)NM
Net income (loss)$(7,263)$(2,969)NM
Average basic shares outstanding26,762 23,802 12.4 %
Basic income (loss) per share$(0.27)$(0.12)NM
Average diluted shares outstanding26,762 23,802 12.4 %
Diluted income (loss) per share$(0.27)$(0.12)NM


Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
Page 5 of 12
July 29, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
 June 30, 2021March 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$88,654 $202,127 
Trade accounts receivable123,168 105,464 
Inventories138,658 111,488 
Prepaid expenses and other31,696 22,763 
Total current assets382,176 441,842 
Property, plant, and equipment, net99,597 74,753 
Goodwill621,939 331,176 
Other intangibles, net401,859 213,362 
Marketable securities10,072 7,968 
Deferred taxes on income1,160 20,080 
Other assets63,827 61,251 
Total assets$1,580,630 $1,150,432 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Trade accounts payable$71,570 $68,593 
Accrued liabilities113,143 110,816 
Current portion of long-term debt and finance lease obligations60,501 4,450 
Total current liabilities245,214 183,859 
Term loan and finance lease obligations398,795 244,504 
Other non-current liabilities212,168 191,920 
Total liabilities856,177 620,283 
Shareholders’ equity:  
Common stock284 240 
Additional paid-in capital495,541 296,093 
Retained earnings286,539 293,802 
Accumulated other comprehensive loss(57,911)(59,986)
Total shareholders’ equity724,453 530,149 
Total liabilities and shareholders’ equity$1,580,630 $1,150,432 


Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
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July 29, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
 Three Months Ended
 June 30, 2021June 30, 2020
Operating activities:
Net income (loss)$(7,263)$(2,969)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization10,467 7,081 
Deferred income taxes and related valuation allowance(245)(1,500)
Net loss (gain) on sale of real estate, investments, and other(391)(494)
Stock based compensation2,262 2,071 
Amortization of deferred financing costs471 665 
Cost of debt refinancing14,803 — 
Non-cash pension settlement expense— 2,722 
Non-cash lease expense1,989 1,876 
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures:
Trade accounts receivable2,043 27,955 
Inventories(10,802)3,924 
Prepaid expenses and other(5,714)(2,766)
Other assets35 (39)
Trade accounts payable(5,879)(18,248)
Accrued liabilities(5,945)(7,926)
Non-current liabilities(3,227)(2,836)
Net cash provided by (used for) operating activities(7,396)9,516 
Investing activities:  
Proceeds from sales of marketable securities2,181 1,034 
Purchases of marketable securities(4,137)(880)
Capital expenditures(3,648)(1,088)
Proceeds from sale of building, net of transaction costs— 6,363 
Proceeds from insurance reimbursement482 — 
Purchase of business, net of cash acquired(475,311)— 
Net cash provided by (used for) investing activities(480,433)5,429 
Financing activities:  
Proceeds from issuance of common stock290 185 
Borrowings under line-of-credit agreements— 25,000 
Repayment of debt(455,040)(1,112)
Proceeds from issuance of long-term debt650,000 — 
Proceeds from equity offering207,000 — 
Fees related to debt and equity offering(25,292)— 
Payment of dividends(1,439)(1,427)
Other(1,764)(927)
Net cash provided by (used for) financing activities373,755 21,719 
Effect of exchange rate changes on cash601 1,122 
Net change in cash and cash equivalents(113,473)37,786 
Cash, cash equivalents, and restricted cash at beginning of year202,377 114,700 
Cash, cash equivalents, and restricted cash at end of period$88,904 $152,486 


Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
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July 29, 2021
COLUMBUS McKINNON CORPORATION
Q1 FY 2022 Sales Bridge
Quarter
($ in millions)$ Change% Change
Fiscal 2021 Sales$139.1 
Acquisitions34.2 24.6 %
Volume31.3 22.5 %
Pricing2.0 1.4 %
Foreign currency translation6.9 5.0 %
Total change$74.4 53.5 %
Fiscal 2022 Sales$213.5 



COLUMBUS McKINNON CORPORATION
Q1 FY 2022 Gross Profit Bridge
($ in millions)Quarter
Fiscal 2021 Gross Profit$44.8 
Acquisition14.0 
Sales volume and mix11.6 
Productivity, net of other cost changes2.9 
Foreign currency translation2.4 
Prior year factory closure costs1.9 
Pricing, net of material cost inflation0.7 
Prior year business realignment costs0.3 
Acquisition integration costs(0.5)
Tariffs(1.0)
Acquisition inventory step-up expense(3.0)
Total change29.3 
Fiscal 2022 Gross Profit$74.1 


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



Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
Page 8 of 12
July 29, 2021
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
 June 30, 2021March 31, 2021June 30, 2020
($ in millions)
Backlog$247.4  $171.7  $130.7 
Long-term backlog
  Expected to ship beyond 3 months$107.3 $68.0 $52.8 
Long-term backlog as % of total backlog43.4 %39.6 %40.4 %
Trade accounts receivable    
Days sales outstanding52.5 days51.5 days63.1 days
Inventory turns per year    
(based on cost of products sold)4.0 turns4.4 turns3.0 turns
Days' inventory90.8 days83.3 days120.6 days
Trade accounts payable    
Days payables outstanding52.4 days58.7 days44.4 days
Working capital as a % of sales12.5 %9.3 %14.9 %
Net cash provided by (used for) operating activities$(7.4)$26.9 $9.5 
Capital expenditures$3.6 $6.4 $1.1 
Free cash flow (1)
$(11.0)$20.5 $8.4 
Debt to total capitalization percentage38.8 %32.0 %37.1 %
Debt, net of cash, to net total capitalization33.8 %8.1 %20.9 %
(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.

Columbus McKinnon Reports Financial Results for First Quarter Fiscal Year 2022
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July 29, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
Three Months Ended June 30,
20212020
GAAP gross profit$74,063 $44,797 
Add back (deduct):
Acquisition inventory step-up expense2,981 — 
Acquisition integration costs521 — 
Factory closures— 1,928 
Business realignment costs— 329 
Non-GAAP adjusted gross profit$77,565 $47,054 
Sales$213,464 $139,070 
Gross margin - GAAP34.7 %32.2 %
Adjusted gross margin - Non-GAAP36.3 %33.8 %

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 Financial Results for First Quarter Fiscal Year 2022
Page 10 of 12
July 29, 2021
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 June 30,
20212020
GAAP income from operations$10,746 $1,789 
Add back (deduct):
Acquisition deal and integration costs9,242 — 
Acquisition inventory step-up expense2,981 — 
Business realignment costs623 821 
Factory closures— 2,256 
Insurance recovery legal costs— 141 
Non-GAAP adjusted income from operations$23,592 $5,007 
Sales$213,464 $139,070 
Operating margin - GAAP5.0 %1.3 %
Adjusted operating margin - Non-GAAP11.1 %3.6 %

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 Financial Results for First Quarter Fiscal Year 2022
Page 11 of 12
July 29, 2021
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 June 30,
20212020
GAAP net income (loss)$(7,263)$(2,969)
Add back (deduct):
Amortization of intangibles6,109 3,115 
Cost of debt refinancing14,803 — 
Acquisition deal and integration costs9,242 — 
Acquisition inventory step-up expense2,981 — 
Business realignment costs623 821 
Non-cash pension settlement expense— 2,722 
Factory closures— 2,256 
Insurance recovery legal costs— 141 
     Normalize tax rate to 22% (1)
(7,792)(2,090)
Non-GAAP adjusted net income$18,703 $3,996 
Average diluted shares outstanding27,159 23,922 
Diluted income (loss) per share - GAAP$(0.27)$(0.12)
Diluted income per share - Non-GAAP$0.69 $0.17 
(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 Financial Results for First Quarter Fiscal Year 2022
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July 29, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
Three Months Ended June 30,
20212020
GAAP net income (loss)$(7,263)$(2,969)
Add back (deduct):
     Income tax expense (benefit)(2,517)(963)
     Interest and debt expense5,812 3,188 
Investment (income) loss(433)(577)
Foreign currency exchange (gain) loss94 84 
Other (income) expense, net250 3,026 
Depreciation and amortization expense10,467 7,081 
Cost of debt refinancing14,803 — 
Acquisition deal and integration costs9,242 — 
Acquisition inventory step-up expense2,981 — 
Business realignment costs623 821 
Factory closures— 2,256 
Insurance recovery legal costs— 141 
Non-GAAP adjusted EBITDA$34,059 $12,088 
Sales$213,464 $139,070 
Net income (loss) margin - GAAP(3.4)%(2.1)%
Adjusted EBITDA margin - Non-GAAP16.0 %8.7 %

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.

Q1 Fiscal Year 2022 Financial Results Conference Call July 29, 2021 David J. Wilson President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer

 
2 Safe Harbor Statement 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: future sales, earnings and plans; the success of the integration of Dorner Mfg. Corp. (“Dorner”) into Columbus McKinnon Corporation (the “Company”, “Columbus McKinnon”, “CMCO” or “our”) to achieve cost and revenue synergies and the amount of such synergies and integration costs; the ability of the Company to achieve market success and earnings per share accretion expectations; the ability of the Company to achieve its Blueprint for Growth 2.0 strategy, involve known and unknown risks, and are based upon current information and expectations. Actual results may differ materially from those anticipated if the information on which those estimates were based ultimately proves to be incorrect or as a result of certain risks and uncertainties that could cause our actual results to differ materially from the results expressed or implied by such statements, including the integration of Dorner into the Company to achieve cost and revenue synergies, the ability of the Company and Dorner to achieve revenue expectations, global economic and business conditions including the impact of COVID-19, conditions affecting the industries served by us and our subsidiaries, conditions affecting our customers and suppliers, competitor responses to our products and services, the overall market acceptance of such products and services, facility consolidations and other restructurings, the ability to expand into new markets and geographic regions, foreign currency fluctuations, the integration of acquisitions, including the acquisition of Dorner, and other factors disclosed in our periodic reports filed with the Securities and Exchange Commission. Consequently, such forward-looking statements should be regarded as our current plans, estimates and beliefs. Except as required by applicable law, we do not undertake and specifically decline any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Non-GAAP Financial 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.

 
3 Accelerating growth initiatives and driving profitability Solid Start to Fiscal 2022 Strong growth, expanding margins and record backlog • Sales of $213.5 million increased 53.5% including 23.9% organic growth • Gross margin of 34.7%; record 36.3% adjusted gross margin including 80 basis points contribution from Dorner • Operating margin of 5.0%; 11.1% adjusted operating margin expanded 750 basis points; Dorner added 70 basis points • Adjusted EBITDA margin for the quarter was 16.0% Blueprint for Growth 2.0 strategy focused on growth initiatives • Strong demand from all markets; Dorner sales exceeded expectations • Achieved record backlog of $247.4 million, increased 44.1% in total and 20.5% organically compared with trailing quarter • Success with automation products and solutions; Gaining ground with Compass™ online CPQ* tool • Columbus McKinnon Business System gaining momentum *Configure, Price Quote Dorner acquisition exceeding expectations

 
4 Advancing ESG priorities aligned with materiality assessment Launched Inaugural CSR Report Strategic Initiatives • Five-year plan – based on baselines, gap analysis & target setting • Tightly aligned with business strategy • Prioritized by impact, risk assessment and opportunity for value • Metrics and goals embedded in business functions ENVIRONMENTAL STEWARDSHIP CLIMATE CHANGE & ENERGY MANAGEMENT WASTE MANAGEMENT & RECYCLING SOCIAL RESPONSIBILITY EMPLOYEE HEALTH & SAFETY TALENT MANAGEMENT DEI PRODUCT QUALITY & INNOVATION PURPOSE, MISSION, VISION, VALUES COMMUNITY INVOLVEMENT CUSTOMER INTIMACY GOVERNANCE & ETHICS ETHICS & COMPLIANCE ENTERPRISE RISK MANAGEMENT BOARD GOVERNANCE

 
• Expands remote hoist and crane monitoring capabilities and enables predictive maintenance • Differentiates product offering to drive pull-through sales • Increases uptime by reducing mean time to failure and recovery 5 Executing NPD strategy and expanding portfolio of intelligent products Intelli-Connect™ Mobile+ Advanced intelligence capabilities for data-driven decision making • Enhances safety by not requiring physical access to overhead crane controls • Real time monitoring of usage, operational parameters, remaining service life and fault events • Creates maintenance and inspection records for compliance

 
6 Q1 FY22 Sales Bridge Net Sales Recovery continues with substantial Y/Y growth driven by strong demand and acquisition Quarter Q1 FY21 Sales $ 139.1 Acquisitions 34.2 24.6% Volume 31.3 22.5% Pricing 2.0 1.4% Foreign currency translation 6.9 5.0% Total change $ 74.4 53.5% Q1 FY22 Sales $ 213.5 Note: Components may not add to totals due to rounding ($ in millions) $139.1 $157.8 $166.5 $186.2 $213.5 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 sales up 53.5% from prior-year period due to strong demand and Dorner acquisition • U.S. (excl. Dorner): 27.8% volume and 0.9% pricing increase • Non-U.S (excl. Dorner): 16.4% volume and 2.0% pricing increase

 
$44.8 $56.0 $55.3 $64.1 $74.1 32.2% 35.5% 33.2% 34.4% 34.7% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 7 Record adjusted gross margin of 36.3% reflects 80 bps contribution from Dorner Gross Profit & Margin Quarter Gross Profit Bridge Quarter Q1 FY21 Gross Profit $ 44.8 Acquisition 14.0 Sales volume and mix 11.6 Productivity, net of other cost changes 2.9 Foreign currency translation 2.4 Prior year factory closure costs 1.9 Pricing, net of material cost inflation 0.7 Prior year business realignment costs 0.3 Acquisition integration costs (0.5) Tariffs (1.0) Acquisition inventory step-up expense (3.0) Total Change $ 29.3 Q1 FY22 Gross Profit $ 74.1 ($ in millions)

 
8 RSG&A $18.7 $18.6 $18.8 $20.8 $23.5 $18.4 $15.6 $19.9 $22.2 $30.1 $2.8 $2.9 $3.0 $3.7 $3.6 $39.9 $37.0 $41.7 $46.7 $57.2 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Selling G&A R&D Effectively managing costs as sales volume continues to increase ($ in millions) Q1 FY22 RSG&A of $57.2 million includes $8.7 million of acquisition related costs and $0.6 million of business realignment costs—largely in G&A (~$8.9M) • RSG&A of $47.9 million excluding these one-time costs • 22.4% of sales Incremental $5.9 million of RSG&A from Dorner • 17.3% of sales Q2 FY22 RSG&A estimate of approximately $52 million (1) • Investing in strategic growth initiatives (1)RSG&A guidance provided July 29, 2021. Excludes business realignment, integration, acquisition and other one-time costs Note: Components may not add to totals due to rounding RSG&A as % of sales: 25.1% 26.8%28.7% 23.5% 25.1%

 
9 Q1 FY22 operating income of $10.7 million Operating Income • Adjusted operating income of $23.6 million Operating margin of 5.0%; Adjusted operating margin of 11.1% • Margin expansion driven by operating leverage, pricing and accretive Dorner acquisition • 70 basis points contribution from the addition of Dorner Amortization of intangibles expense expected to be approximately $6.3 million per quarter for remainder of FY 22 at current FX rates Adjusted operating margin nearing pre-pandemic levels ($ in millions) Operating Income & Margin Adjusted Operating Income & Margin $5.0 $14.0 $11.2 $18.9 $23.6 3.6% 8.9% 6.7% 10.1% 11.1% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 $1.8 $15.8 $10.4 $14.2 $10.7 1.3% 10.0% 6.3% 7.6% 5.0% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22

 
10 Q1 FY22 net loss of $7.3 million Earnings Per Share Adjusted EPS GAAP Diluted EPS ($0.12) ($0.17) $0.27 $0.39 ($0.27) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 $0.17 $0.44 $0.36 $0.60 $0.69 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Adj. net income of $18.7 million in the quarter • $14.8 million of debt refinancing costs • $9.2 million of acquisition deal and integration costs related to Dorner • $3.0 million of inventory step-up expense • $6.1 million of amortization of intangibles FY22 non-GAAP adjusted tax rate: 22%(1) Q2 FY22 interest expense of ~$4.7 million(1) Q2 FY22 diluted shares outstanding: ~29.0 million(1) (1)Guidance on tax rate, interest expense, and number of diluted shares outstanding provided on July 29, 2021 Focused on strengthening earnings power through CMBS

 
11 Adjusted EBITDA Margin Adjusted EBITDA margin continues to recover from FY21 Adjusted EBITDA & ROIC Return on Invested Capital (ROIC)(1) Executing the strategy to drive profitable growth and realize long-term financial goals 15.7% 11.9% 13.7% FY20 FY21 Q1 FY22 TTM 11.7% 6.6% 7.8% FY20 FY21 Q1 FY22 TTM (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. • Q1 FY22 Adjusted EBITDA margin of 16.0% up 730 basis points from prior year • 190 basis points contribution from the addition of Dorner • Targeting 19% Adjusted EBITDA margin in FY23 Improving return on invested capital • FY21 ROIC impacted by COVID • Targeting double digit ROIC > WACC in FY23

 
$67.2 $97.4 $86.6 $67.1 FY19 FY20 FY21 Q1 FY22 TTM 12 Free Cash Flow (2) Cash Flow • Q1 FY22 cash outflow of $10.9 million for acquisition deal costs related to Dorner acquisition • Working capital increase of $26.3 million related to higher volumes • FY22 expected CapEx: $20 to $25 million including Dorner(1) Three Months Ended 6/30/21 6/30/20 Net cash provided by operating activities $ (7.4) $ 9.5 CapEx (3.6) (1.1) Free cash flow (FCF) (2) $ (11.0) $ 8.4 Expect positive FCF for remainder of FY22 Note: Components may not add to totals due to rounding (1)Capital expenditure guidance provided July 29, 2021 (2)Free cash flow is a non-GAAP measure defined as cash provided by operating activities minus capital expenditures ($ in millions)

 
13 Capital Structure Pro-forma net debt leverage ratio of ~3.0x(1) • Net debt to net total capital: 33.8% ~$170 million of liquidity Financed Dorner acquisition with equity and debt • Initial bridge loan of $650 million to fund acquisition • Issued equity to de-lever balance sheet • Upsized public offering with net proceeds of ~$198.7 million • Refinanced debt with new Term Loan B of $450 million Expect to quickly de-lever to target net leverage ratio of 2.0x CAPITALIZATION June 30, 2021 March 31, 2021 Cash and cash equivalents $ 88.7 $ 202.1 Total debt 459.3 249.0 Total net debt 370.6 46.8 Shareholders’ equity 724.5 530.1 Total capitalization $ 1,183.7 $ 779.1 Debt/total capitalization 38.8% 32.0% Net debt/net total capitalization 33.8% 8.1% (1)Pro-forma net debt leverage ratio is defined as Net Debt / TTM Adjusted EBITDA including Dorner ($ in millions)

 
14 Record orders of $249.8 million Record backlog of $247.4 million Orders and Backlog • 20% sequential and 82% year-over-year increases • Sequential increase driven by short cycle business and Dorner • 2.4% sequential organic growth vs. typical Q4 to Q1 declining trend • Up 23% in short-cycle business and 19% project, sequentially • Dorner added $40.5 million to backlog as of June 30th Record orders and backlog provide momentum for FY22 ($ in millions) $137.4 $172.7 $168.7 $208.8 $249.8 0.99x 1.09x 1.01x 1.12x 1.17x Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Orders Book:Bill (1)Long-term backlog is expected to ship beyond three months $52.8 $60.8 $62.1 $68.0 $107.3 $77.9 $85.8 $90.3 $103.7 $140.1 $130.7 $146.6 $152.4 $171.7 $247.4 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Long Term Backlog Short Term Backlog(1)

 
15 Excited about positive momentum and long-term potential for value creation Outlook and Perspective Q2 FY2022 outlook • Expect Q2 FY22 net sales in range of $225 million to $230 million1 Strong order and backlog levels drive growth • Positive trends across all industries with encouraging trends in heavy industry and offshore oil & gas • Entertainment coming back to life • E-commerce and life sciences remain robust Navigating supply chain and staffing challenges Driving progress and building momentum • Focused on organic growth initiatives • Active and growing M&A pipeline (1)Revenue guidance provided July 29, 2021

 
Q1 Fiscal Year 2022 Financial Results Conference Call July 29, 2021 David J. Wilson President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer

 
Supplemental Information

 
Blueprint for Growth 2.0 Pivot Columbus McKinnon toward growth: Organic and Inorganic 18 Strategy to deliver growth, financial performance and shareholder value

 
19 Conference Call Playback Info Replay Number: 412-317-6671 passcode: 10158268 Telephone replay available through August 5, 2021 Webcast / PowerPoint / Replay available at investors.columbusmckinnon.com Transcript, when available, at investors.columbusmckinnon.com

 
20 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 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GAAP gross profit $ 44,797 $ 56,025 $ 55,315 $ 64,088 $ 74,063 Add back (deduct): Acquisition inventory step-up expense — — — — 2,981 Acquisition integration costs — — — — 521 Factory closures 1,928 493 250 — — Business realignment costs 329 — 237 264 — Gain on sale of building — (2,189) — — — Non-GAAP adjusted gross profit $ 47,054 $ 54,329 $ 55,802 $ 64,352 $ 77,565 Sales 139,070 157,790 166,547 186,235 213,464 Gross margin – GAAP 32.2% 35.5% 33.2% 34.4% 34.7% Adjusted gross margin – Non-GAAP 33.8% 34.4% 33.5% 34.6% 36.3%

 
21 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 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GAAP income from operations $ 1,789 $ 15,820 $ 10,447 $ 14,199 $ 10,746 Add back (deduct): Acquisition deal and integration costs — — — 3,951 9,242 Acquisition inventory step-up expense — — — — 2,981 Factory closures 2,256 747 469 306 — Business realignment costs 821 — 237 412 623 Insurance recovery legal costs 141 88 — — — Gain on sale of building — (2,638) — — — Non-GAAP adjusted income from operations $ 5,007 $ 14,017 $ 11,153 $ 18,868 $ 23,592 Sales 139,070 157,790 166,547 186,235 213,464 Operating margin – GAAP 1.3% 10.0% 6.3% 7.6% 5.0% Adjusted operating margin – Non-GAAP 3.6% 8.9% 6.7% 10.1% 11.1%

 
22 Adjusted Net Income Reconciliation ($ in thousands, except per share data) Quarter Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GAAP net income (loss) $ (2,969) $ (4,104) $ 6,594 $ 9,585 $ (7,263) Add back (deduct): Amortization of intangibles 3,115 3,192 3,142 3,174 6,109 Cost of debt refinancing — — — — 14,803 Acquisition deal and integration costs — — — 3,951 9,242 Acquisition inventory step-up expense — — — — 2,981 Non-cash pension settlement expense 2,722 16,324 — — — Factory closures 2,256 747 469 306 — Business realignment costs 821 — 237 412 623 Insurance recovery legal costs 141 88 — — — Gain on sale of building — (2,638) — — — Normalize tax rate to 22%(1) (2,090) (3,029) (1,817) (2,772) (7,792) Non-GAAP adjusted net income $ 3,996 $ 10,580 $ 8,625 $ 14,656 $ 18,703 Average diluted shares outstanding 23,922 24,123 24,201 24,384 27,159 Diluted income (loss) per share – GAAP $(0.12) $(0.17) $0.27 $0.39 $(0.27) Diluted income per share – Non-GAAP $0.17 $0.44 $0.36 $0.60 $0.69 (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 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.

 
23 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 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 2021 2020 GAAP net income (loss) $ (2,969) $ (4,104) $ 6,594 $ 9,585 $ (7,263) $ 9,106 $ 59,672 Add back (deduct): Income tax expense (benefit) (963) (45) 616 1,362 (2,517) 970 17,484 Interest and debt expense 3,188 3,018 2,986 2,889 5,812 12,081 14,234 Investment (income) loss (577) (357) (495) (264) (433) (1,693) (891) Foreign currency exchange (gain) loss 84 397 602 (142) 94 941 (1,514) Other (income) expense, net 3,026 16,911 144 769 250 20,850 839 Depreciation and amortization expense 7,081 7,129 6,993 6,950 10,467 28,153 29,126 Cost of debt refinancing — — — — 14,803 — — Acquisition deal and integration costs — — — 3,951 9,242 3,951 — Acquisition inventory step-up expense — — — — 2,981 — — Factory closures 2,256 747 469 306 — 3,778 4,709 Business realignment costs 821 — 237 412 623 1,470 2,831 Insurance recovery legal costs 141 88 — — 229 585 Loss on sales of businesses — — — — — — 176 Insurance settlement — — — — — — (382) Gain on sale of building — (2,638) — — — (2,638) — Non-GAAP adjusted EBITDA $ 12,088 $ 21,146 $ 18,146 $ 25,818 $ 34,059 $ 77,198 $ 126,869 Sales $ 139,070 $ 157,790 $ 166,547 $ 186,235 $ 213,464 $ 649,642 $ 809,162 Net income (loss) margin – GAAP (2.1)% (2.6)% 4.0% 5.1% (3.4)% 1.4% 7.4% Adjusted EBITDA margin – Non-GAAP 8.7% 13.4% 10.9% 13.9% 16.0% 11.9% 15.7%

 
24 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 TTM 2020 2021 Q1 FY22 GAAP income from operations $ 89,824 $ 42,255 $ 51,212 Add back (deduct): Acquisition deal and integration costs — 3,951 13,193 Acquisition inventory step-up expense — — 2,981 Factory closures 4,709 3,778 1,522 Business realignment costs 2,831 1,470 1,272 Insurance recovery legal costs 585 229 88 Loss on sales of businesses 176 — — Insurance settlement (382) — — Gain on sale of building — (2,638) (2,638) Non-GAAP adjusted income from operations $ 97,743 $ 49,045 $ 67,630 Non-GAAP adjusted income from operations, net of normalized tax rate of 22% $ 76,240 $ 38,255 $ 52,751 Trailing five quarter averages: Total debt 273,146 260,130 301,728 Total shareholders’ equity 459,044 487,523 539,696 Cash and cash equivalents 79,450 168,599 163,440 Net total capitalization $ 652,740 $ 579,054 $ 677,984 Return on invested capital (ROIC) – Non-GAAP 11.7% 6.6% 7.8%

 
25 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 75.3% (Manufacturing) & 75.4% (Total) June 2021(1) 65% 67% 69% 71% 73% 75% 77% 79% 81% 83% 85% 82.5% Q2 2021 (1)June 2021 numbers are preliminary

 
26 ISM Production Index Source: Institute of Supply Chain Management 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 60.8% June 2021

 
Q1 Fiscal Year 2022 Financial Results Conference Call July 29, 2021