cmco-20211028
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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): October 28, 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 October 28, 2021, the registrant issued a press release announcing its financial results for the second quarter, which ended September 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 October 28, 2021
Earnings call slides dated October 28, 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:  October 28, 2021


 image.jpg    
                            EXHIBIT 99.1
News Release
205 Crosspoint Parkway
Buffalo, NY 14068
Immediate Release     
Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
BUFFALO, NY, October 28, 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 second quarter, which ended September 30, 2021. Results include the addition of Dorner Manufacturing Corporation, which was acquired on April 7, 2021.
Second Quarter Highlights (compared with prior year period)
•42% revenue growth driven by strong volume, contribution of acquisition and strategic pricing
•CMBS enables continued margin expansion resulting in record gross margin of 36.3%, up 80 basis points; record adjusted gross margin of 36.7% expanded 230 basis points
•Strategic pricing more than offset material cost inflation pressure
•Achieved net income of $15.2 million, or $0.53 per diluted share; adjusted earnings per diluted share was $0.74
•Adjusted EBITDA was $36.0 million, or 16.1% of revenue up 270 basis points
•Generated $25.3 million in cash from operations or $22.2 million in free cash flow1
David Wilson, President and CEO of Columbus McKinnon, commented, “Demand for our products remains strong as we execute our Blueprint for Growth 2.0 strategy. Our team has worked tirelessly to address supply chain challenges with agility and has overcome the impacts of rapid inflation with additional price increases. We believe the Columbus McKinnon Business System (“CMBS”), which provides the framework to scale the organization, is becoming more robust and enabling improved results. Also of note, the Dorner acquisition has provided a foundation to evolve our business model into higher growth, less cyclical industries as we continue to expand in the Life Sciences, E-Commerce and Consumer Packaging markets. We expect to leverage this platform to further transform our Company into a high value, intelligent motion enterprise.”
1 Free cash flow is a non-GAAP measure defined as cash from operations less capital expenditures. See the accompanying discussion and reconciliation found in the Additional Data table in this release.

Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 2 of 13
October 28, 2021
Second Quarter Fiscal 2022 Sales
($ in millions)Q2 FY 22Q2 FY 21Change% Change
Net sales$223.6 $157.8 $65.8 41.7 %
U.S. sales$130.7 $84.7 $46.0 54.3 %
     % of total58 %54 %
Non-U.S. sales$92.9 $73.1 $19.8 27.1 %
     % of total42 %46 %
For the quarter, sales increased $65.8 million, or 41.7%. The Dorner acquisition added $33.5 million in sales. In the U.S., volume improved $16.7 million, or 19.7%, and price improved $2.0 million, or 2.4%. U.S. sales related to the acquisition were $27.3 million. Outside the U.S., volume improved $9.7 million, or 13.3%, and price improved $2.0 million, or 2.7%. The Dorner acquisition added $6.3 million of sales outside the U.S. Foreign currency translation was favorable $1.9 million, or 1.2% of total sales.
Second Quarter Fiscal 2022 Operating Results
($ in millions)
Q2 FY 22Q2 FY 21Change% Change
Gross profit$81.1 $56.0 $25.1 44.8 %
     Gross margin36.3 %35.5 %80 bps
Income from operations$23.7 $15.8 $7.8 49.6 %
     Operating margin10.6 %10.0 %60 bps
Adjusted income from operations*$25.5 $14.0 $11.5 81.9 %
     Adjusted operating margin*11.4 %8.9 %250 bps
Net income (loss)$15.2 $(4.1)$19.3 NM
     Net income (loss) margin6.8 %(2.6)%940 bps
Diluted EPS$0.53 $(0.17)$0.70 NM
Adjusted EPS*$0.74 $0.44 $0.30 68.2 %
Adjusted EBITDA*$36.0 $21.1 $14.8 70.2 %
     Adjusted EBITDA margin*16.1 %13.4 %270 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 added $3.4 million in adjusted operating income. Adjusted earnings per diluted share was $0.74 in the fiscal 2022 second quarter compared with $0.44 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.
Third Quarter Fiscal 2022 Outlook
Columbus McKinnon expects third quarter fiscal 2022 sales of approximately $215 million at current exchange rates. This outlook includes the expectation that supply chain constraints continue and reflects typical seasonality, given holidays and fewer shipping days.






Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 3 of 13
October 28, 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 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 13723730. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Thursday, November 4. 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 moves the world forward and improves 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 future sales and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including the impact of supply chain challenges and inflation, the ability of the Company to scale the organization, achieve its Blueprint for Growth 2.0 strategy and execute CMBS; and the Company’s 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 Second Quarter Fiscal Year 2022
Page 4 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
 
Three Months Ended
 September 30, 2021September 30, 2020Change
Net sales$223,635 $157,790 41.7 %
Cost of products sold142,500 101,765 40.0 %
Gross profit81,135 56,025 44.8 %
Gross profit margin36.3 %35.5 % 
Selling expenses24,157 18,563 30.1 %
% of net sales10.8 %11.8 %
General and administrative expenses23,208 15,554 49.2 %
% of net sales10.4 %9.9 %
Research and development expenses3,825 2,896 32.1 %
% of net sales1.7 %1.8 %
Amortization of intangibles6,285 3,192 96.9 %
Income from operations23,660 15,820 49.6 %
Operating margin10.6 %10.0 % 
Interest and debt expense4,587 3,018 52.0 %
Investment (income) loss(115)(357)(67.8)%
Foreign currency exchange (gain) loss441 397 11.1 %
Other (income) expense, net(539)16,911 NM
Income (loss) before income tax expense (benefit)19,286 (4,149)NM
Income tax expense (benefit)4,083 (45)NM
Net income (loss)$15,203 $(4,104)NM
Average basic shares outstanding28,418 23,883 19.0 %
Basic income (loss) per share$0.53 $(0.17)NM
Average diluted shares outstanding28,756 23,883 20.4 %
Diluted income (loss) per share$0.53 $(0.17)NM
Dividends declared per common share$0.06 $0.06 















Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 5 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
Six Months Ended
 September 30, 2021September 30, 2020Change
Net sales$437,099 $296,860 47.2 %
Cost of products sold281,901 196,038 43.8 %
Gross profit155,198 100,822 53.9 %
Gross profit margin35.5 %34.0 % 
Selling expenses47,639 37,258 27.9 %
% of net sales10.9 %12.6 %
General and administrative expenses53,351 33,983 57.0 %
% of net sales12.2 %11.4 %
Research and development expenses7,408 5,665 30.8 %
% of net sales1.7 %1.9 %
Amortization of intangibles12,394 6,307 96.5 %
Income from operations34,406 17,609 95.4 %
Operating margin7.9 %5.9 % 
Interest and debt expense10,399 6,206 67.6 %
Cost of debt refinancing14,803 — NM
Investment (income) loss(548)(934)(41.3)%
Foreign currency exchange (gain) loss535 481 11.2 %
Other (income) expense, net(289)19,937 NM
Income (loss) before income tax expense (benefit)9,506 (8,081)NM
Income tax expense (benefit)1,566 (1,008)NM
Net income (loss)$7,940 $(7,073)NM
Average basic shares outstanding27,594 23,843 15.7 %
Basic income (loss) per share$0.29 $(0.30)NM
Average diluted shares outstanding27,957 23,843 17.3 %
Diluted income (loss) per share$0.28 $(0.30)NM
Dividends declared per common share$0.06 $0.06 

Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 6 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
 September 30, 2021March 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$105,311 $202,127 
Trade accounts receivable125,451 105,464 
Inventories147,925 111,488 
Prepaid expenses and other28,926 22,763 
Total current assets407,613 441,842 
Property, plant, and equipment, net97,117 74,753 
Goodwill615,329 331,176 
Other intangibles, net392,700 213,362 
Marketable securities10,072 7,968 
Deferred taxes on income1,960 20,080 
Other assets61,184 61,251 
Total assets$1,585,975 $1,150,432 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Trade accounts payable$71,458 $68,593 
Accrued liabilities104,924 110,816 
Current portion of long-term debt and finance lease obligations60,515 4,450 
Total current liabilities236,897 183,859 
Term loan and finance lease obligations392,728 244,504 
Other non-current liabilities221,192 191,920 
Total liabilities850,817 620,283 
Shareholders’ equity:  
Common stock284 240 
Additional paid-in capital499,758 296,093 
Retained earnings300,036 293,802 
Accumulated other comprehensive loss(64,920)(59,986)
Total shareholders’ equity735,158 530,149 
Total liabilities and shareholders’ equity$1,585,975 $1,150,432 


Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 7 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
 Six Months Ended
 September 30, 2021September 30, 2020
Operating activities:
Net income (loss)$7,940 $(7,073)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization20,969 14,210 
Deferred income taxes and related valuation allowance(1,235)(6,745)
Net loss (gain) on sale of real estate, investments, and other(462)(557)
Stock based compensation5,504 3,989 
Amortization of deferred financing costs867 1,327 
Cost of debt refinancing14,803 — 
Loss (gain) on hedging instruments672 — 
Non-cash pension settlement expense— 19,046 
Gain on sale of building(375)(2,638)
Non-cash lease expense3,939 3,785 
Changes in operating assets and liabilities, net of effects of business acquisitions and divestitures:
Trade accounts receivable(1,709)33,594 
Inventories(21,959)18,987 
Prepaid expenses and other(2,779)(1,627)
Other assets42 570 
Trade accounts payable(6,274)(20,078)
Accrued liabilities1,908 (7,895)
Non-current liabilities(3,909)(1,952)
Net cash provided by (used for) operating activities17,942 46,943 
Investing activities:  
Proceeds from sales of marketable securities2,734 1,034 
Purchases of marketable securities(4,768)(1,759)
Capital expenditures(6,752)(2,779)
Proceeds from sale of building, net of transaction costs461 5,453 
Proceeds from insurance reimbursement482 — 
Purchase of business, net of cash acquired(472,954)— 
Dividend received from equity method investment— 587 
Net cash provided by (used for) investing activities(480,797)2,536 
Financing activities:  
Proceeds from issuance of common stock1,412 429 
Borrowings under line-of-credit agreements— 25,000 
Repayment of debt(461,286)(2,225)
Proceeds from issuance of long-term debt650,000 — 
Proceeds from equity offering207,000 — 
Fees related to debt and equity offering(25,292)(826)
Cash inflows from hedging activities7,007 — 
Cash outflows from hedging activities(6,927)— 
Payment of dividends(3,145)(2,860)
Other(1,909)(982)
Net cash provided by (used for) financing activities366,860 18,536 
Effect of exchange rate changes on cash(821)4,091 
Net change in cash and cash equivalents(96,816)72,106 
Cash, cash equivalents, and restricted cash at beginning of year202,377 114,700 
Cash, cash equivalents, and restricted cash at end of period$105,561 $186,806 


Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 8 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Q2 FY 2022 Sales Bridge
QuarterYear To Date
($ in millions)$ Change% Change$ Change% Change
Fiscal 2021 Sales$157.8 $296.9 
Acquisitions33.5 21.3 %67.7 22.8 %
Volume26.4 16.7 %57.7 19.4 %
Pricing4.0 2.5 %6.0 2.0 %
Foreign currency translation1.9 1.2 %8.8 3.0 %
Total change$65.8 41.7 %$140.2 47.2 %
Fiscal 2022 Sales$223.6 

$437.1 


COLUMBUS McKINNON CORPORATION
Q2 FY 2022 Gross Profit Bridge
($ in millions)QuarterYear To Date
Fiscal 2021 Gross Profit$56.0 $100.8 
Acquisition13.3 27.3 
Sales volume and mix8.2 19.9 
Productivity, net of other cost changes5.5 8.2 
Foreign currency translation0.6 3.0 
Prior year factory closure costs0.5 2.4 
Pricing, net of material cost inflation0.9 1.6 
Prior year business realignment costs— 0.3 
Acquisition integration costs— (0.5)
Business realignment costs(0.9)(0.9)
Tariffs(0.8)(1.7)
Prior year gain on sale of building(2.2)(2.2)
Acquisition inventory step-up expense— (3.0)
Total change25.1 54.4 
Fiscal 2022 Gross Profit$81.1 $155.2 


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



Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 9 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
 September 30, 2021June 30, 2021March 31, 2021September 30, 2020
($ in millions)
Backlog$255.6  $247.4  $171.7 $146.6 
Long-term backlog
  Expected to ship beyond 3 months$110.5 $107.3 $68.0 $60.8 
Long-term backlog as % of total backlog43.2 %43.4 %39.6 %41.5 %
Trade accounts receivable    
Days sales outstanding51.0 days52.5 days51.5 days53.4 days
Inventory turns per year    
(based on cost of products sold)3.9 turns4.0 turns4.4 turns3.6 turns
Days' inventory94.7 days90.8 days83.3 days100.5 days
Trade accounts payable    
Days payables outstanding54.3 days52.4 days58.7 days41.0 days
Working capital as a % of sales14.4 %12.5 %9.3 %14.1 %
Net cash provided by (used for) operating activities$25.3 $(7.4)$26.9 $37.4 
Capital expenditures$3.1 $3.6 $6.4 $1.7 
Free cash flow (1)
$22.2 $(11.0)$20.5 $35.7 
Debt to total capitalization percentage38.1 %38.8 %32.0 %36.4 %
Debt, net of cash, to net total capitalization32.1 %33.8 %8.1 %15.6 %
(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 Second Quarter Fiscal Year 2022
Page 10 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit
($ in thousands, except per share data)
Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
GAAP gross profit$81,135 $56,025 $155,198 $100,822 
Add back (deduct):
Acquisition inventory step-up expense— — 2,981 — 
Business realignment costs914 — 914 329 
Acquisition integration costs— — 521 — 
Factory closures— 493 — 2,421 
Gain on sale of building— (2,189)— (2,189)
Non-GAAP adjusted gross profit$82,049 $54,329 $159,614 $101,383 
Sales$223,635 $157,790 $437,099 $296,860 
Gross margin - GAAP36.3 %35.5 %35.5 %34.0 %
Adjusted gross margin - Non-GAAP36.7 %34.4 %36.5 %34.2 %

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


Columbus McKinnon Reports Financial Results for Second Quarter Fiscal Year 2022
Page 11 of 13
October 28, 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 September 30,Six Months Ended September 30,
2021202020212020
GAAP income from operations$23,660 $15,820 $34,406 $17,609 
Add back (deduct):
Acquisition deal and integration costs632 — 9,874 — 
Acquisition inventory step-up expense— — 2,981 — 
Business realignment costs1,200 — 1,823 821 
Factory closures— 747 — 3,003 
Insurance recovery legal costs— 88 — 229 
Gain on sale of building— (2,638)— (2,638)
Non-GAAP adjusted income from operations$25,492 $14,017 $49,084 $19,024 
Sales$223,635 $157,790 $437,099 $296,860 
Operating margin - GAAP10.6 %10.0 %7.9 %5.9 %
Adjusted operating margin - Non-GAAP11.4 %8.9 %11.2 %6.4 %

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 Second Quarter Fiscal Year 2022
Page 12 of 13
October 28, 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 September 30,Six Months Ended September 30,
2021202020212020
GAAP net income (loss)$15,203 $(4,104)$7,940 $(7,073)
Add back (deduct):
Amortization of intangibles6,285 3,192 12,394 6,307 
Cost of debt refinancing— — 14,803 — 
Acquisition deal and integration costs632 — 9,874 — 
Acquisition inventory step-up expense— — 2,981 — 
Business realignment costs1,200 — 1,823 821 
Non-cash pension settlement expense— 16,324 — 19,046 
Factory closures— 747 — 3,003 
Insurance recovery legal costs— 88 — 229 
Gain on sale of building— (2,638)— (2,638)
     Normalize tax rate to 22% (1)
(1,946)(3,029)(9,738)(5,119)
Non-GAAP adjusted net income$21,374 $10,580 $40,077 $14,576 
Average diluted shares outstanding28,756 24,123 27,957 24,030 
Diluted income (loss) per share - GAAP$0.53 $(0.17)$0.28 $(0.30)
Diluted income per share - Non-GAAP$0.74 $0.44 $1.43 $0.61 
(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 Second Quarter Fiscal Year 2022
Page 13 of 13
October 28, 2021
COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
($ in thousands)
Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
GAAP net income (loss)$15,203 $(4,104)$7,940 $(7,073)
Add back (deduct):
     Income tax expense (benefit)4,083 (45)1,566 (1,008)
     Interest and debt expense4,587 3,018 10,399 6,206 
Investment (income) loss(115)(357)(548)(934)
Foreign currency exchange (gain) loss441 397 535 481 
Other (income) expense, net(539)16,911 (289)19,937 
Depreciation and amortization expense10,502 7,129 20,969 14,210 
Cost of debt refinancing— — 14,803 — 
Acquisition deal and integration costs632 — 9,874 — 
Acquisition inventory step-up expense— — 2,981 — 
Business realignment costs1,200 — 1,823 821 
Factory closures— 747 — 3,003 
Insurance recovery legal costs— 88 — 229 
Gain on sale of building— (2,638)— (2,638)
Non-GAAP adjusted EBITDA$35,994 $21,146 $70,053 $33,234 
Sales$223,635 $157,790 $437,099 $296,860 
Net income (loss) margin - GAAP6.8 %(2.6)%1.8 %(2.4)%
Adjusted EBITDA margin - Non-GAAP16.1 %13.4 %16.0 %11.2 %

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.

Q2 Fiscal Year 2022 Financial Results Conference Call October 28, 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 Dorner Mfg. Corp. (“Dorner”) acquisitions, achievement of 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 employ the Columbus McKinnon Business System to drive profitability and to grow the business with 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 Executing Blueprint for Growth 2.0 Strategy Capturing strong demand across all markets Driving growth and margin expansion • Strong results despite supply chain challenges; offset inflationary pressures with strategic pricing • Sales of $223.6 million increased 41.7% over prior-year period including 19.3% organic growth • Record gross margin of 36.3%; record adjusted gross margin of 36.7% • Operating margin was 10.6%; adjusted operating margin expanded 250 basis points y/y to 11.4% Creating better business model with stronger earnings power • Expanding value propositions through combination of legacy automation solutions and conveying solutions • Adjusted EBITDA margin for the quarter was 16.1%, up 270 basis points • Dorner continues to deliver adding 100 basis points to adjusted EBITDA margin • Record backlog of $255.6 million, increased 3.3% compared with trailing quarter Strategy evolves Columbus McKinnon into a high value, intelligent motion enterprise

 
4 Business Model Evolution Revenue Growth Rate EBITDA Margin CMCO Q2 FY22 With Conveying Solutions Platform Crane Solutions 46% Industrial Products 42% Engineered Products 12% Automation 13%Linear Motion 10% Lifting Solutions 62% Conveying Solutions 15% Automation 15% Lifting Solutions 73% Linear Motion 12% CMCO FY21 Recast for Growth Profile Growth strategy substantially advances underlying portfolio Evolving underlying portfolio to serve more attractive, high growth markets

 
5 Expanding portfolio of intelligent automation solutions Linear Actuator with Intelli-Motion™ Combining intelligent controls with high-quality linear actuators Expands family of automation solutions and enables precision motion control Provides enhanced control and position feedback capabilities Extends the length of time the actuator is operational and improves production rates Reduces installation costs and the overall product footprint *SPA series actuators: Super Pac (packaging) Actuator

 
6 Q2 FY22 Sales Bridge Net Sales Solid sales growth reflecting continued recovery and acquisition Quarter Q2 FY21 Sales $ 157.8 Acquisitions 33.5 21.3% Volume 26.4 16.7% Pricing 4.0 2.5% Foreign currency translation 1.9 1.2% Total change $ 65.8 41.7% Q2 FY22 Sales $ 223.6 Note: Components may not add to totals due to rounding ($ in millions) $157.8 $166.5 $186.2 $213.5 $223.6 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 sales up 41.7% from prior-year period due to strong demand, Dorner acquisition and strategic pricing • U.S. (excl. Dorner): 19.7% volume and 2.4% pricing increase • Non-U.S (excl. Dorner): 13.3% volume and 2.7% pricing increase

 
$56.0 $55.3 $64.1 $74.1 $81.1 35.5% 33.2% 34.4% 34.7% 36.3% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 7 Record adjusted gross margin of 36.7% includes 50 bps contribution from Dorner Gross Profit & Margin Quarter Gross Profit Bridge Quarter Q2 FY21 Gross Profit $ 56.0 Acquisition 13.3 Sales volume and mix 8.2 Productivity, net of other cost changes 5.5 Pricing, net of material cost inflation 0.9 Foreign currency translation 0.6 Prior year factory closure costs 0.5 Tariffs (0.8) Business realignment costs (0.9) Prior year gain on sale of building (2.2) Total Change $ 25.1 Q2 FY22 Gross Profit $ 81.1 ($ in millions)

 
8 RSG&A $18.6 $18.8 $20.8 $23.5 $24.2 $15.6 $19.9 $22.2 $30.1 $23.2 $2.9 $3.0 $3.7 $3.6 $3.8 $37.0 $41.7 $46.7 $57.2 $51.2 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Selling G&A R&D Investing to deliver innovation and growth while reducing SG&A as a % of sales ($ in millions) Q2 FY22 RSG&A slightly lower than guidance • Includes $0.9 million of business realignment costs • Incremental $7.0 million of RSG&A from Dorner Q3 FY22 RSG&A estimate of approximately $53 million (1) • Continued investment in strategic growth initiatives • Incremental incentive and stock-based compensation (1)RSG&A guidance provided October 28, 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% 22.9%23.5% 25.1%

 
9 Q2 FY22 operating income of $23.7 million Operating Income • Adjusted operating income of $25.5 million Operating margin of 10.6%; Adjusted operating margin of 11.4% • Margin expansion driven by operating leverage and strategic pricing Amortization of intangibles expense expected to be approximately $6.3 million per quarter for remainder of FY22 at current FX rates Improving adjusted operating margin…nearing pre-pandemic levels ($ in millions) Operating Income & Margin Adjusted Operating Income & Margin $14.0 $11.2 $18.9 $23.6 $25.5 8.9% 6.7% 10.1% 11.1% 11.4% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 $15.8 $10.4 $14.2 $10.7 $23.7 10.0% 6.3% 7.6% 5.0% 10.6% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22

 
10 Q2 FY22 net income of $15.2 million Earnings Per Share Adjusted EPS GAAP Diluted EPS ($0.17) $0.27 $0.39 ($0.27) $0.53 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 $0.44 $0.36 $0.60 $0.69 $0.74 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Adj. net income of $21.4 million in the quarter • $6.3 million of amortization of intangibles • $1.2 million of business realignment costs • $0.6 million of acquisition deal and integration costs related to Dorner FY22 non-GAAP adjusted tax rate: 22%(1) Q3 FY22 interest expense of ~$4.5 million(1) Q3 FY22 diluted shares outstanding: ~29.2 million(1) (1)Guidance on tax rate, interest expense, and number of diluted shares outstanding provided on October 28, 2021 Driving earnings growth with better business model

 
11 Adjusted EBITDA Margin Adjusted EBITDA margin continues to recover from FY21 Adjusted EBITDA & ROIC Return on Invested Capital (ROIC)(1) Strong confidence in strategy to achieve long-term financial goals 15.7% 11.9% 14.4% FY20 FY21 Q2 FY22 TTM 11.7% 6.6% 7.9% FY20 FY21 Q2 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. • Q2 FY22 Adjusted EBITDA margin of 16.1% up 270 basis points from prior year • 100 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 $53.6 88% 127% 229% 85% FY19 FY20 FY21 Q2 FY22 TTM 12 Free Cash Flow (2) Cash Flow • Strong cash generation in Q2 FY22 despite inventory build to address supply chain constraints • Q2 FY22 YTD includes cash outflow of $13.5 million for acquisition deal costs • FY22 expected CapEx: $18 to $22 million including Dorner (1) Strong cash generation through cycles Note: Components may not add to totals due to rounding ($ in millions) Three Months Ended YTD 9/30/21 9/30/20 9/30/21 Net cash provided by operating activities $25.3 $37.4 $17.9 CapEx (3.1) (1.7) (6.8) Free cash flow (FCF) $22.2 $35.7 $11.2 (1)Capital expenditure guidance provided October 28, 2021. (2)See Supplemental Slides for the definition of free cash flow, free cash flow conversion reconciliation from GAAP and other disclaimers regarding non-GAAP information. Free cash flow conversion(2)

 
13 Capital Structure Financial flexibility • ~$188 million of liquidity Pro-forma net debt leverage ratio of ~2.64x(1) • Net debt to net total capital: 32.1% Financed Dorner acquisition with equity and debt Expect to quickly de-lever to target net leverage ratio of 2.0x CAPITALIZATION Sept. 30, 2021 March 31, 2021 Cash and cash equivalents $ 105.3 $ 202.1 Total debt 453.2 249.0 Total net debt 347.9 46.8 Shareholders’ equity 735.2 530.1 Total capitalization $ 1,188.4 $ 779.1 Debt/total capitalization 38.1% 32.0% Net debt/net total capitalization 32.1% 8.1% (1)Pro-forma net debt leverage ratio is defined as Net Debt / TTM Adjusted EBITDA including Dorner ($ in millions)

 
14 Continued Strength in Orders Record backlog of $255.6 million Orders and Backlog • 38% year-over-year increase driven by short cycle demand, project business and acquisition • Conveying solutions orders were $34.7 million in quarter • Up 7% in short-cycle business and 2% project, sequentially • Dorner backlog up 2%, sequentially Demand remains strong across breadth of end markets ($ in millions) $172.7 $168.7 $208.8 $249.8 $238.3 1.09x 1.01x 1.12x 1.17x 1.07x Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Orders Book:Bill (1)Long-term backlog is expected to ship beyond three months $60.8 $62.1 $68.0 $107.3 $110.5 $85.8 $90.3 $103.7 $140.1 $145.1 $146.6 $152.4 $171.7 $247.4 $255.6 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Long Term Backlog Short Term Backlog (1)

 
15 Executing on Blueprint for Growth 2.0 strategy to drive value creation Outlook and Perspective Q3 FY2022 outlook • Expect Q3 FY22 net sales of approximately $215 million (1) Addressing supply chain and staffing challenges • Expect to stay ahead of inflation with strategic pricing • Actively managing suppliers Continued strong demand across markets • Strength in aerospace, energy, e-commerce and food & beverage • Process industries such as metals and paper are robust Creatively responding to near-term demands while advancing long-term objectives Purpose in Motion: Together we create intelligent motion solutions that move the world forward and improve lives. (1) Revenue guidance provided October 28, 2021

 
Q2 Fiscal Year 2022 Financial Results Conference Call October 28, 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: 13723730 Telephone replay available through November 4, 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 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 GAAP gross profit $ 56,025 $ 55,315 $ 64,088 $ 74,063 $ 81,135 Add back (deduct): Acquisition inventory step-up expense — — — 2,981 — Acquisition integration costs — — — 521 — Factory closures 493 250 — — — Business realignment costs — 237 264 — 914 Gain on sale of building (2,189) — — — — Non-GAAP adjusted gross profit $ 54,329 $ 55,802 $ 64,352 $ 77,565 $ 82,049 Sales 157,790 166,547 186,235 213,464 223,635 Gross margin – GAAP 35.5% 33.2% 34.4% 34.7% 36.3% Adjusted gross margin – Non-GAAP 34.4% 33.5% 34.6% 36.3% 36.7%

 
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 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 GAAP income from operations $ 15,820 $ 10,447 $ 14,199 $ 10,746 $ 23,660 Add back (deduct): Acquisition deal and integration costs — — 3,951 9,242 632 Acquisition inventory step-up expense — — — 2,981 — Factory closures 747 469 306 — — Business realignment costs — 237 412 623 1,200 Insurance recovery legal costs 88 — — — — Gain on sale of building (2,638) — — — — Non-GAAP adjusted income from operations $ 14,017 $ 11,153 $ 18,868 $ 23,592 $ 25,492 Sales 157,790 166,547 186,235 213,464 223,635 Operating margin – GAAP 10.0% 6.3% 7.6% 5.0% 10.6% Adjusted operating margin – Non-GAAP 8.9% 6.7% 10.1% 11.1% 11.4%

 
22 Adjusted Net Income Reconciliation ($ in thousands, except per share data) Quarter Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 GAAP net income (loss) $ (4,104) $ 6,594 $ 9,585 $ (7,263) $ 15,203 Add back (deduct): Amortization of intangibles 3,192 3,142 3,174 6,109 6,285 Cost of debt refinancing — — — 14,803 — Acquisition deal and integration costs — — 3,951 9,242 632 Acquisition inventory step-up expense — — — 2,981 — Non-cash pension settlement expense 16,324 — — — — Factory closures 747 469 306 — — Business realignment costs — 237 412 623 1,200 Insurance recovery legal costs 88 — — — — Gain on sale of building (2,638) — — — — Normalize tax rate to 22%(1) (3,029) (1,817) (2,772) (7,792) (1,946) Non-GAAP adjusted net income $ 10,580 $ 8,625 $ 14,656 $ 18,703 $ 21,374 Average diluted shares outstanding 24,123 24,201 24,384 27,159 28,756 Diluted income (loss) per share – GAAP $(0.17) $0.27 $0.39 $(0.27) $0.53 Diluted income per share – Non-GAAP $0.44 $0.36 $0.60 $0.69 $0.74 (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.

 
23 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 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. ($ in thousands, except per share data) Fiscal Year FY 2019 FY 2020 FY 2021 Q2 FY22 TTM GAAP net income $ 42,577 $ 59,672 $ 9,106 $ 24,119 Add back (deduct): Amortization of intangibles 14,900 12,942 12,623 18,710 Cost of debt refinancing — — — 14,803 Non-cash pension settlement expense — — 19,046 — Factory closures 1,473 4,709 3,778 775 Business realignment costs 1,906 2,831 1,470 2,472 Insurance recovery legal costs 1,282 585 229 — Insurance settlement — (382) — — Gain on sale of building — — (2,638) — Loss on sales of businesses 25,672 176 — — Acquisition deal and integration costs — — 3,951 13,825 Acquisition inventory step-up expense — — — 2,981 Normalize tax rate to 22%(1) (11,268) (4,080) (9,708) (14,326) Non-GAAP adjusted net income $ 76,542 $ 76,453 $ 37,857 $ 63,359 Average diluted shares outstanding 23,660 23,855 24,173 26,125 Diluted income per share – GAAP $1.80 $2.50 $0.38 $0.92 Diluted income per share - Non-GAAP $3.24 $3.20 $1.57 $2.43

 
24 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 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 2021 2020 GAAP net income (loss) $ (4,104) $ 6,594 $ 9,585 $ (7,263) $ 15,203 $ 9,106 $ 59,672 Add back (deduct): Income tax expense (benefit) (45) 616 1,362 (2,517) 4,083 970 17,484 Interest and debt expense 3,018 2,986 2,889 5,812 4,587 12,081 14,234 Investment (income) loss (357) (495) (264) (433) (115) (1,693) (891) Foreign currency exchange (gain) loss 397 602 (142) 94 441 941 (1,514) Other (income) expense, net 16,911 144 769 250 (539) 20,850 839 Depreciation and amortization expense 7,129 6,993 6,950 10,467 10,502 28,153 29,126 Cost of debt refinancing — — — 14,803 — — — Acquisition deal and integration costs — — 3,951 9,242 632 3,951 — Acquisition inventory step-up expense — — — 2,981 — — — Factory closures 747 469 306 — — 3,778 4,709 Business realignment costs — 237 412 623 1,200 1,470 2,831 Insurance recovery legal costs 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 $ 21,146 $ 18,146 $ 25,818 $ 34,059 $ 35,994 $ 77,198 $ 126,869 Sales $ 157,790 $ 166,547 $ 186,235 $ 213,464 $ 223,635 $ 649,642 $ 809,162 Net income (loss) margin – GAAP (2.6)% 4.0% 5.1% (3.4)% 6.8% 1.4% 7.4% Adjusted EBITDA margin – Non-GAAP 13.4% 10.9% 13.9% 16.0% 16.1% 11.9% 15.7%

 
25 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 Q2 FY22 GAAP income from operations $ 89,824 $ 42,255 $ 59,052 Add back (deduct): Acquisition deal and integration costs — 3,951 13,825 Acquisition inventory step-up expense — — 2,981 Factory closures 4,709 3,778 775 Business realignment costs 2,831 1,470 2,472 Insurance recovery legal costs 585 229 — Loss on sales of businesses 176 — — Insurance settlement (382) — — Gain on sale of building — (2,638) — Non-GAAP adjusted income from operations $ 97,743 $ 49,045 $ 79,105 Non-GAAP adjusted income from operations, net of normalized tax rate of 22% $ 76,240 $ 38,255 $ 61,702 Trailing five quarter averages: Total debt 273,146 260,130 337,233 Total shareholders’ equity 459,044 487,523 593,408 Cash and cash equivalents 79,450 168,599 154,055 Net total capitalization $ 652,740 $ 579,054 $ 776,586 Return on invested capital (ROIC) – Non-GAAP 11.7% 6.6% 7.9%

 
26 Free Cash Flow & Free Cash Flow Conversion Reconciliation ($ in thousands) Fiscal Year FY 2019 FY 2020 FY 2021 Q2 FY 2022 TTM Cash from operations $ 79,499 $ 106,795 $ 98,890 $ 69,889 Capital expenditures (12,288) (9,432) (12,300) (16,273) Free cash flow (FCF) $ 67,211 $ 97,363 $ 86,590 $ 53,616 Non-GAAP adjusted net income* 76,542 76,453 37,857 63,359 Free cash flow conversion 88% 127% 229% 85% Free cash flow is defined as cash from operations minus capital expenditures. Free cash flow conversion is defined as free cash flow divided by adjusted net income including amortization. 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. *See slide 23 for reconciliation of non-GAAP adjusted net income to GAAP net income.

 
27 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 75.9% (Manufacturing) & 75.2% (Total) September 2021(1) 65% 67% 69% 71% 73% 75% 77% 79% 81% 83% 85% 82.9% Q3 2021 (1)September 2021 numbers are preliminary

 
28 ISM Production Index Source: Institute of Supply Chain Management 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 59.4% September 2021

 
Q2 Fiscal Year 2022 Financial Results Conference Call October 28, 2021