EX-99.1 2 exhibit99110282016.htm EXHIBIT 99.1 Exhibit

EXHIBIT 99.1
image00001a02a02a01a08.jpg 
News Release
 
205 Crosspoint Parkway
Getzville, NY 14068
Immediate Release     
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results

AMHERST, NY, October 28, 2016 - Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer, manufacturer and marketer of material handling products, technologies and services, today announced financial results for its fiscal year 2017 second quarter, which ended September 30, 2016. Financial results for the quarter include Magnetek, Inc. ("Magnetek"), which was acquired on September 2, 2015.

Second Quarter Summary (compared with prior-year period, unless otherwise noted)
•
Net sales grew 4.0% to $151.9 million
•
Achieved record gross margin of 32.7% - highest in 20 years
•
Net income was $6.8 million or $0.33 per diluted share
•
Cash provided by operating activities was $18.4 million
•
Repaid $10.8 million of debt in quarter and $27.6 million year to date: well ahead of
•
FY17 $43 million target
•
Reduced net debt to net total capitalization by 360 basis points from March 31, 2016, to 39.4%

Timothy T. Tevens, President and Chief Executive Officer, commented, "Given the sluggish growth of the global economy, volume in our hoist and rigging business was still weak in the quarter, but was more than offset by the addition of Magnetek. We believe that our record gross margin in the quarter demonstrated the success of both our lean manufacturing practices and the Magnetek acquisition.”

Mr. Tevens provided his outlook for the second half of fiscal 2017, “While we remain cautious, quoting and order activity toward the end of the quarter was clearly picking up in several regions, supporting our expectation of a stronger second half for fiscal 2017. Activity in the U.S. is stronger and Latin America has improved. Europe remained weak and the near future seems uncertain, however, we have approximately $7 million of Rail & Road projects scheduled to ship from that region in the second half of the year. Emerging markets appear to be trending upward, at a low- to mid-single digit rate. And, China, specifically, has experienced improved quotation and order activity.”



Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 2 of 11

Second Quarter Review
Sales
($ in millions)
Q2 FY 17
 
Q2 FY 16
 
Change
 
% Change
Net sales
$
151.9

 
$
146.0

 
$
5.9

 
4.0
 %
   FX impact
$
1.3

 
 
 
 
 
 
Net sales excluding FX
$
153.2

 
 
 
$
7.2

 
4.9
 %
U.S. sales
$
98.3

 
$
88.0

 
$
10.3

 
11.7
 %
     % of total
65
%
 
60
%
 
 
 
 
Non-U.S. sales
$
53.6

 
$
58.0

 
$
(4.4
)
 
(7.6
)%
     % of total
35
%
 
40
%
 
 
 
 
   FX impact
$
1.3

 
 
 
 
 
 
Non-U.S. sales excluding FX
$
54.9

 
 
 
$
(3.1
)
 
(5.3
)%

Excluding a $1.3 million unfavorable impact of foreign currency exchange, net sales (“sales”) increased $7.2 million, or 4.9%. The Magnetek acquisition contributed $16.4 million to sales in the months of July and August which, combined with very modest price improvement, more than offset lower volume. For more information on changes in sales, please see the attached tables.

Magnetek contributed $15.7 million to U.S. sales in the two additional months in the quarter, more than offsetting lower volume in the region. Sales outside of the U.S. were down $3.1 million, or 5.3%, after excluding unfavorable foreign currency exchange, on lower volume.

Operating Results
($ in millions)
Q2 FY 17
 
Q2 FY 16
 
Change
 
% Change
Gross profit
$
49.7

 
$
46.9

 
$
2.8

 
5.9
%
     Gross margin
32.7
%
 
32.1
%
 
60 bps
 
 
Income from operations
$
12.6

 
$
6.5

 
$
6.1

 
93.8
%
     Operating margin
8.3
%
 
4.5
%
 
380 bps
 
 
Net income
$
6.8

 
$
(0.4
)
 
$
7.3

 
NM

     Diluted EPS
$
0.33

 
$
(0.02
)
 
$
0.35

 
NM


Higher gross profit was mostly related to $5.9 million gained from the Magnetek acquisition (two incremental months of ownership this quarter), which helped drive the record breaking gross margin. For more information on changes in gross profit, please see the attached tables.

Income from operations decreased by $2.4 million compared with adjusted income from operations of $15.0 million in the prior-year period. Lower income from operations was largely the result of lower sales volumes in the global hoist and rigging business, partially offset by the contributions of Magnetek. The acquisition added an incremental $1.9 million to operating income during the two additional months in the current quarter. Please see the attached tables for a reconciliation of GAAP income from operations to adjusted income from operations.

The effective tax rate of 34.8% is reflective of the mix in earnings by tax jurisdiction. For the year, the expected effective tax rate continues to be in the 30% to 32% range. Adjusted net income declined $1.3 million, to $7.3 million. The decline in adjusted net income was largely the result of lower sales volume. Please see the attached tables for a reconciliation of GAAP net income and earnings per share to adjusted net income and earnings per share.


2
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 3 of 11

Ahead of Target: Paying Down Debt with Strong Cash Generation
Cash generated from operating activities in the second quarter increased by $17.5 million to $18.4 million. The Company utilized that incremental cash flow to make $10.8 million of debt repayments, which reduced gross debt to $239.8 million at September 30, 2016. As a result, net debt to net total capitalization has declined 360 basis points to 39.4% since the beginning of the fiscal year.

Capital expenditures through the first half of fiscal 2017 were $8.5 million and are now expected to be approximately $16 million for the year, down from previous expectations of about $18 million.

Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast today at 10:00 AM Eastern Time, at which Timothy T. Tevens, President and Chief Executive Officer, and Gregory P. Rustowicz, Vice President - Finance and Chief Financial Officer, 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 http://www.cmworks.com/investors. A question and answer session will follow the formal discussion.

Columbus McKinnon’s conference call can be accessed by calling 201-493-6780 and asking for the “Columbus McKinnon conference call.” The webcast can be monitored on Columbus McKinnon’s website at www.cmworks.com/investors. An audio recording of the call will be available two hours after its completion through Friday, November 4, 2016 by dialing 858-384-5517 and entering the passcode 13645492. Alternatively, an archived webcast of the call will be on Columbus McKinnon’s web site at: www.cmworks.com/investors. 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 material handling products, technologies, systems and services, which efficiently and ergonomically move, lift, position and secure materials and people. Key products include hoists, cranes, actuators, rigging tools, light rail work stations 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 on its website at http://www.cmworks.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 revenue 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 general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the effect of operating leverage, the pace of bookings relative to shipments, the ability to expand into new markets and geographic regions, the success in acquiring new business, the speed at which shipments improve, the effectiveness of new products 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. Rustowicz
Investor Relations:
Vice President - Finance and Chief Financial Officer
Deborah K. Pawlowski
Columbus McKinnon Corporation
Kei Advisors LLC
716-689-5442
716-843-3908
greg.rustowicz@cmworks.com
dpawlowski@keiadvisors.com
 
Financial Tables follow.

3
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 4 of 11

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
 


Three Months Ended


 

September 30, 2016

September 30, 2015

Change
Net sales

$
151,925


$
146,041


4.0
 %
Cost of products sold

102,196


99,096


3.1
 %
Gross profit

49,729


46,945


5.9
 %
Gross profit margin

32.7
%

32.1
%

 

Selling expenses

19,032


17,399


9.4
 %
% of net sales
 
12.5
%
 
11.9
%
 
 
General and administrative expenses

16,313


22,040


(26.0
)%
% of net sales
 
10.7
%
 
15.1
%
 
 
Amortization of intangibles

1,765


994


77.6
 %
Income from operations

12,619


6,512


93.8
 %
Operating margin

8.3
%

4.5
%

 

Interest and debt expense

2,525


1,632


54.7
 %
Investment (income) loss

(88
)

(376
)

(76.6
)%
Foreign currency exchange (gain) loss

(220
)

1,459


NM

Other (income) expense, net

(48
)

(108
)

(55.6
)%
Income before income tax expense

10,450


3,905


167.6
 %
Income tax expense

3,634


4,353


(16.5
)%
Net income (loss)

$
6,816


$
(448
)

NM











Average basic shares outstanding

20,202


20,086


0.6
 %
Basic income (loss) per share

$
0.34


$
(0.02
)

NM











Average diluted shares outstanding

20,368


20,086


1.4
 %
Diluted income (loss) per share

$
0.33


$
(0.02
)

NM

 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.04

 
$
0.04

 
 


4
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 5 of 11

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)

 
 
Six Months Ended
 
 
 
 
September 30, 2016
 
September 30, 2015
 
Change
Net sales
 
$
300,938

 
$
282,277

 
6.6
 %
Cost of products sold
 
203,162

 
191,748

 
6.0
 %
Gross profit
 
97,776

 
90,529

 
8.0
 %
Gross profit margin
 
32.5
%
 
32.1
%
 
 

Selling expenses
 
37,846

 
33,997

 
11.3
 %
% of net sales
 
12.6
%
 
12.0
%
 
 
General and administrative expenses
 
32,595

 
37,142

 
(12.2
)%
% of net sales
 
10.8
%
 
13.2
%
 
 
Amortization of intangibles
 
3,515

 
1,587

 
121.5
 %
Income from operations
 
23,820

 
17,803

 
33.8
 %
Operating margin
 
7.9
%
 
6.3
%
 
 

Interest and debt expense
 
5,099

 
2,788

 
82.9
 %
Investment (income) loss
 
(305
)
 
(504
)
 
(39.5
)%
Foreign currency exchange (gain) loss
 
(783
)
 
1,274

 
NM

Other (income) expense, net
 
(128
)
 
(113
)
 
13.3
 %
Income before income tax expense
 
19,937

 
14,358

 
38.9
 %
Income tax expense
 
6,720

 
7,895

 
(14.9
)%
Net income
 
$
13,217

 
$
6,463

 
104.5
 %
 
 
 
 
 
 
 
Average basic shares outstanding
 
20,169

 
20,054

 
0.6
 %
Basic income per share
 
$
0.66

 
$
0.32

 
106.3
 %
 
 
 
 
 
 
 
Average diluted shares outstanding
 
20,325

 
20,277

 
0.2
 %
Diluted income per share
 
$
0.65

 
$
0.32

 
103.1
 %
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.04

 
$
0.04

 
 


5
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 6 of 11

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)

 
 
September 30, 2016
 
March 31,
2016
 
 
(unaudited)
 
 
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
45,705

 
$
51,603

Trade accounts receivable
 
80,351

 
83,812

Inventories
 
116,192

 
118,049

Prepaid expenses and other
 
14,239

 
19,265

Total current assets
 
256,487

 
272,729

 
 
 
 
 
Property, plant, and equipment, net
 
102,209

 
104,790

Goodwill
 
170,404

 
170,716

Other intangibles, net
 
119,294

 
122,129

Marketable securities
 
9,482

 
18,186

Deferred taxes on income
 
70,668

 
73,158

Other assets
 
11,200

 
11,143

Total assets
 
$
739,744

 
$
772,851

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Trade accounts payable
 
$
31,087

 
$
36,061

Accrued liabilities
 
48,956

 
53,210

Current portion of long-term debt
 
43,045

 
43,246

Total current liabilities
 
123,088

 
132,517

 
 
 
 
 
Senior debt, less current portion
 
278

 
844

Term loan and revolving credit facility
 
196,478

 
223,542

Other non-current liabilities
 
121,315

 
129,639

Total liabilities
 
441,159

 
486,542

 
 
 
 
 
Shareholders’ equity:
 
 

 
 

Common stock
 
202

 
201

Additional paid-in capital
 
208,818

 
206,682

Retained earnings
 
186,582

 
174,173

Accumulated other comprehensive loss
 
(97,017
)
 
(94,747
)
Total shareholders’ equity
 
298,585

 
286,309

Total liabilities and shareholders’ equity
 
$
739,744

 
$
772,851



6
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 7 of 11

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
 
 
Six Months Ended
 
 
September 30, 2016
 
September 30, 2015
Operating activities:
 
 
 
 
Net income
 
$
13,217

 
$
6,463

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation and amortization
 
11,928

 
8,521

Deferred income taxes and related valuation allowance
 
2,075

 
668

Net gain on sale of real estate, investments, and other
 
(115
)
 
(375
)
Stock based compensation
 
2,539

 
2,042

Amortization of deferred financing costs and discount on debt
 
344

 
256

Changes in operating assets and liabilities, net of effects of business acquisitions:
 
 

 
 

Trade accounts receivable
 
3,049

 
3,631

Inventories
 
1,152

 
(6,150
)
Prepaid expenses and other
 
5,102

 
776

Other assets
 
(227
)
 
3,873

Trade accounts payable
 
(3,112
)
 
(6,983
)
Accrued liabilities
 
(2,801
)
 
1,449

Non-current liabilities
 
(7,502
)
 
(10,054
)
Net cash provided by (used for) operating activities
 
25,649

 
4,117

 
 
 
 
 
Investing activities:
 
 

 
 

Proceeds from sale of marketable securities
 
9,192

 
5,057

Purchases of marketable securities
 
(207
)
 
(4,212
)
Capital expenditures
 
(8,450
)
 
(8,707
)
Purchase of business, net of cash acquired
 
(587
)
 
(182,467
)
Net cash provided by (used for) investing activities
 
(52
)
 
(190,329
)
 
 
 
 
 
Financing activities:
 
 

 
 

Proceeds from exercises of stock options
 
139

 
159

Restricted cash related to purchase of business
 
(588
)
 
—

Net borrowings (payments) under line-of-credit agreements
 
(21,000
)
 
179,057

Repayment of debt
 
(6,550
)
 
(6,523
)
Dividends paid
 
(1,611
)
 
(1,604
)
Other
 
(541
)
 
(849
)
Net cash provided by (used for) financing activities
 
(30,151
)
 
170,240

 
 
 
 
 
Effect of exchange rate changes on cash
 
(1,344
)
 
1,642

 
 
 
 
 
Net change in cash and cash equivalents
 
(5,898
)
 
(14,330
)
Cash and cash equivalents at beginning of year
 
51,603

 
63,056

Cash and cash equivalents at end of period
 
$
45,705

 
$
48,726



7
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 8 of 11

COLUMBUS McKINNON CORPORATION
Q2 FY 2016 to Q2 FY 2017 Sales Bridge

 
 
Second Quarter
 
Year to Date
($ in millions)
 
$ Change
 
% Change
 
$ Change
 
% Change
Q2 Fiscal 2016 Sales
 
$146.0
 
 
 
$282.3
 
 
Magnetek acquisition
 
16.4
 
11.2%
 
40.3
 
14.3%
Pricing
 
0.3
 
0.2%
 
0.6
 
0.2%
Volume
 
(9.5)
 
(6.5)%
 
(19.5)
 
(6.9)%
Subtotal of change
 
7.2
 
4.9%
 
21.4
 
7.6%
Foreign currency translation
 
(1.3)
 
(0.9)%
 
(2.8)
 
(1.0)%
Total change
 
$5.9
 
4.0%
 
$18.6
 
6.6%
Q2 Fiscal 2017 Sales
 
$151.9
 

 
$300.9
 
 


COLUMBUS McKINNON CORPORATION
Q2 FY 2016 to Q2 FY 2017 Gross Profit Bridge

($ in millions)
Second Quarter
Year to Date
Q2 Fiscal 2016 Gross Profit
$46.9
$90.5
Magnetek Acquisition
5.9
14.2
Productivity, net of other cost changes
0.7
2.0
Prior year purchase accounting & restructuring costs
0.7
1.3
Pricing, net of material cost inflation
(0.1)
(0.1)
Product liability
(0.4)
(1.3)
Sales volume and mix
(3.6)
(7.9)
Subtotal of change
3.2
8.2
Foreign currency translation
(0.4)
(0.9)
Total change
$2.8
$7.3
Q2 Fiscal 2017 Gross Profit
$49.7
$97.8




8
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 9 of 11

COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
 
 
September 30,
2016
 
March 31,
2016
 
September 30,
2015
Backlog (in millions)
 
$
107.1

 
 
 
$
98.6

 
 
 
$
110.8

 
 
Project backlog (in millions, expected to ship beyond 3 months)
 
$
46.3

 
 
 
$
41.2

 
 
 
$
46.8

 
 
Project backlog as % of total backlog
 
43.2

 
%
 
41.8

 
%
 
42.2

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts receivable
 
 

 
 
 
 

 
 
 
 

 
      
Days sales outstanding (2)
 
48.1

 
days
 
49.2

 
days
 
50.5

 
days
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory turns per year (2)
 
 

 
 
 
 

 
 
 
 

 
      
(based on cost of products sold)
 
3.5

 
turns
 
3.6

 
turns
 
3.4

 
turns
Days' inventory
 
103.7

 
days
 
101.0

 
days
 
107.9

 
days
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
 
 

 
 
 
 

 
 
 
 

 
      
Days payables outstanding (2)
 
27.7

 
days
 
30.8

 
days
 
23.7

 
days
 
 
 
 
 
 
 
 
 
 
 
 
 
Working capital as a % of sales (1) (2)
 
21.2

 
%
 
21.5

 
%
 
22.9

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to total capitalization percentage
 
44.5

 
%
 
48.3

 
%
 
51.9

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, net of cash, to net total capitalization
 
39.4

 
%
 
43.0

 
%
 
47.5

 
%

(1) March 31, 2016 figure excludes the impact of the acquisition of Magnetek; September 30, 2015 figure excludes the impact of the acquisition of STB
(2) September 30, 2015 figures exclude the impact of the acquisition of Magnetek
Shipping Days by Quarter 
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
FY 17
 
64
 
63
 
60
 
64
 
251
 
 
 
 
 
 
 
 
 
 
 
FY 16
 
63
 
64
 
60
 
63
 
250



9
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 10 of 11

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations and Operating Margin
($ in thousands, except per share data)
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
$
 
$
 
$
 
$
Income from operations
$12,619
 
$6,512
 
$23,820
 
$17,803
Add back:
 
 
 
 
 
 
 
     Canadian pension lump sum settlements
—
 
—
 
247
 
—
     Acquisition deal costs
—
 
5,332
 
—
 
5,332
     Acquisition related severance costs
—
 
2,300
 
—
 
2,300
     Acquisition inventory step-up expense
—
 
551
 
—
 
925
     European facility consolidation costs
—
 
288
 
—
 
585
Non-GAAP adjusted income from operations
$12,619
 
$14,983
 
$24,067
 
$26,945
 
 
 
 
 
 
 
 
Sales
151,925
 
146,041
 
300,938
 
282,277
Adjusted operating margin
8.3%
 
10.3%
 
8.0%
 
9.5%


Adjusted income from operations is defined as income from operations as reported, adjusted for certain items and to apply a normalized tax rate. 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 to 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.


10
Columbus McKinnon Reports Second Quarter Fiscal Year 2017 Financial Results
October 28, 2016
Page 11 of 11

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,
 
2016
 
2015
 
2016
 
2015
 
$
 
$
 
$
 
$
Net income
$6,816
 
$(448)
 
$13,217
 
$6,463
Add back:
 
 
 
 
 
 
 
    Canadian pension lump sum settlements
—
 
—
 
247
 
—
     Acquisition deal costs
—
 
5,332
 
—
 
5,332
     Acquisition related severance costs
—
 
2,300
 
—
 
2,300
     Acquisition inventory step-up expense
—
 
551
 
—
 
925
     European facility consolidation costs
—
 
288
 
—
 
585
     Normalize tax rate to 30% (1)
499
 
640
 
665
 
845
Non-GAAP adjusted net income
$7,315
 
$8,663
 
$14,129
 
$16,450
 
 
 
 
 
 
 
 
Average diluted shares outstanding
20,368
 
20,086
 
20,325
 
20,277
 
 
 
 
 
 
 
 
Diluted income per share - GAAP
$0.33
 
$(0.02)
 
$0.65
 
$0.32
 
 
 
 
 
 
 
 
Diluted income per share - Non-GAAP
$0.36
 
$0.43
 
$0.70
 
$0.81

(1) Applies a normalized tax rate of 30% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

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

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