EX-99.1 2 exhibit99107302019.htm EXHIBIT 99.1 Exhibit

cmcoa16.jpg 
EXHIBIT 99.1
News Release
 
205 Crosspoint Parkway
Buffalo, NY 14068
Immediate Release     
Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
BUFFALO, NY, July 30, 2019 - Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of motion control products, technologies and services for material handling, today announced financial results for its fiscal year 2020 first quarter, which ended June 30, 2019.
First Quarter Highlights (compared with prior-year period)
•
Blueprint for Growth strategy delivering margin expansion and stronger earnings power
•
Gross margin reached record 35.5%, while strong operating leverage drove operating margin to 12.7%
•
Net income for the quarter increased 141% to $18.6 million; adjusted earnings per diluted share of $0.81 increased nearly 10%
•
Achieved record adjusted EBITDA margin of 16.7%, up 100 basis points from previous record set in fiscal 2019 first quarter
•
Return on invested capital (ROIC) expanded to 11.5%
Mark Morelli, President and CEO of Columbus McKinnon, commented, “Our Blueprint for Growth strategy continues to demonstrate value as we delivered stronger margins and growth in earnings on modest organic revenue growth of 2%. We had record gross margin of 35.5% and operating margin of 12.7%. In fact, our results are readily identifiable, as follows:
•
Our 80/20 Process of simplification provided approximately $3.4 million in operating profit and remains on track to deliver $10 million for fiscal 2020.
•
Also, the quarter benefited from our actions to simplify the business by divesting non-core businesses that diluted earnings. Operating income improved 30 basis points by divesting $11.1 million in low margin, non-core revenue.
•
Operational Excellence provided $0.5 million in savings from the consolidation of our Ohio facilities, as well.
These initiatives led to record adjusted EBITDA margin and improved ROIC. We believe this further validates that our strategy is the right one to create a better business model with improved earnings power and positions us for growth.”

Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 2 of 12
July 30, 2019

He concluded, “We are doubling down on Phase II of our strategy at Columbus McKinnon by advancing our 80/20 Process throughout the organization. This is the centerpiece of our operating system that eliminates “bleeders” and sharpens our focus on growth. We remain excited about our ability to continue to strengthen our financial performance as we further transform into an industrial technology company.”
First Quarter Fiscal 2020 Sales
($ in millions)
Q1 FY 20
 
Q1 FY 19
 
Change
 
% Change
Net sales
$
212.7

 
$
225.0

 
$
(12.3
)
 
(5.5
)%
 
 
 
 
 
 
 
 
U.S. sales
$
116.7

 
$
119.8

 
$
(3.1
)
 
(2.6
)%
     % of total
55
%
 
53
%
 
 
 
 
Non-U.S. sales
$
96.0

 
$
105.2

 
$
(9.2
)
 
(8.7
)%
     % of total
45
%
 
47
%
 
 
 
 
Adjusting for $11.1 million of sales from divestitures from the prior-year period and the $5.1 million negative impact of foreign currency translation, price improvement and volume increases resulted in 1.8% growth in sales. U.S. sales, adjusted for divestitures, were up $2.8 million, or 2.5%, primarily from price improvement, while sales outside the U.S. also adjusted for foreign currency translation were up 1.1%.
First Quarter Fiscal 2020 Operating Results
($ in millions)
Q1 FY 20
 
Q1 FY 19
 
Change
 
% Change
Gross profit
$
75.6

 
$
79.6

 
$
(4.0
)
 
(5.1
)%
     Gross margin
35.5
%
 
35.4
%
 
10 bps

 
 
Income from operations
$
27.0

 
$
13.5

 
$
13.5

 
100.3
 %
     Operating margin
12.7
%
 
6.0
%
 
670 bps

 
 
Net income
$
18.6

 
$
7.7

 
$
10.9

 
141.1
 %
     Diluted EPS
$
0.78

 
$
0.33

 
$
0.45

 
136.4
 %
Adjusted EBITDA *
$
35.5

 
$
35.3

 
$
0.2

 
0.4
 %
     Adjusted EBITDA margin
16.7
%
 
15.7
%
 
100 bps

 
 
*A non-GAAP measure, Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization. Please see the attached tables for a reconciliation of adjusted EBITDA to GAAP net income (loss).
Gross profit and gross margin reflect a shift in mix during the quarter, while pricing more than offset material cost inflation and tariffs. For more information on changes in gross profit, please see the table on page 7 of this release. Adjusted income from operations was $28.1 million, up $1.6 million, or 6.0%, over the first quarter of fiscal 2019. Adjusted operating margin expanded 140 basis points from the impact of the 80/20 Process and lower selling expenses. Please see the reconciliation of GAAP income from operations to adjusted income from operations on page 10 of this release.
Adjusted net income for the quarter was $19.3 million, or $0.81 per diluted share, compared with $17.5 million, or $0.74 per diluted share, in the prior-year period. Adjusted EBITDA margin was 16.7%. Please see the reconciliation of GAAP net income and earnings per share to adjusted net income and earnings per share on page 11 of this release.


Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 3 of 12
July 30, 2019

Second Quarter Fiscal 2020 Outlook
While recent industrial market weakness is well reported, the Company believes that its Blueprint for Growth strategy is offsetting these headwinds. In addition, simplification and operational excellence are expected to drive margin expansion and operating leverage. The Company expects revenue in the second quarter of fiscal year 2020 to be unchanged to slightly improved over the prior-year period. Second quarter fiscal year 2019 revenue adjusted for divestitures and foreign currency translation at current rates was $206 million.
Teleconference/webcast
Columbus McKinnon will host a conference call and live webcast Tuesday, July 30 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 www.cmworks.com/investors. 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 www.cmworks.com/investors. To listen to the archived call, dial 412-317-6671 and enter the passcode 13692055. The telephonic replay will be available from 1:00 PM Eastern Time on the day of the call through Tuesday, August 6, 2019. 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 motion control products, technologies, systems and services that efficiently and ergonomically move, lift, position and secure materials. Key products include hoists, 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 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 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 effectiveness of the Company’s 80/20 Process to simplify operations, the ability of the Company’s Operational Excellence initiatives to drive profitability, the success of the Company’s efforts to Ramp the Growth Engine, global 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 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. 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.


Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 4 of 12
July 30, 2019

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


Three Months Ended


 

June 30, 2019

June 30, 2018

Change
Net sales

$
212,712


$
224,992


(5.5
)%
Cost of products sold

137,100


145,345


(5.7
)%
Gross profit

75,612


79,647


(5.1
)%
Gross profit margin

35.5
%

35.4
%

 

Selling expenses

22,755


25,567


(11.0
)%
% of net sales
 
10.7
%
 
11.4
%
 
 
General and administrative expenses

19,600


21,826


(10.2
)%
% of net sales
 
9.2
%
 
9.7
%
 
 
Research and development expenses
 
2,792

 
3,748

 
(25.5
)%
% of net sales
 
1.3
%
 
1.7
%
 
 
Net loss on sales of businesses, including impairment
 
169

 
11,100

 
(98.5
)%
Amortization of intangibles

3,253


3,903


(16.7
)%
Income from operations

27,043


13,503


100.3
 %
Operating margin

12.7
%

6.0
%

 

Interest and debt expense

3,852


4,607


(16.4
)%
Investment (income) loss, net

(302
)

(268
)

12.7
 %
Foreign currency exchange (gain) loss

(410
)

(276
)

48.6
 %
Other (income) expense, net

162


(40
)

NM

Income before income tax expense

23,741


9,480


150.4
 %
Income tax expense

5,162


1,774


191.0
 %
Net income

$
18,579


$
7,706


141.1
 %










Average basic shares outstanding

23,431


23,115


1.4
 %
Basic income per share

$
0.79


$
0.33


139.4
 %










Average diluted shares outstanding

23,777


23,610


0.7
 %
Diluted income per share

$
0.78


$
0.33


136.4
 %



Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 5 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
 
 
June 30, 2019
 
March 31, 2019
 
 
(unaudited)
 
 
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
55,716

 
$
71,093

Trade accounts receivable
 
135,488

 
129,157

Inventories
 
150,968

 
146,263

Prepaid expenses and other
 
15,885

 
16,075

Total current assets
 
358,057

 
362,588

 
 
 
 
 
Property, plant, and equipment, net
 
85,085

 
87,303

Goodwill
 
325,301

 
322,816

Other intangibles, net
 
231,510

 
232,940

Marketable securities
 
7,575

 
7,028

Deferred taxes on income
 
27,248

 
27,707

Other assets
 
55,696

 
21,189

Total assets
 
$
1,090,472

 
$
1,061,571

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Trade accounts payable
 
$
40,235

 
$
46,974

Accrued liabilities
 
99,752

 
99,304

Current portion of long-term debt
 
65,000

 
65,000

Total current liabilities
 
204,987

 
211,278

 
 
 
 
 
Term loan and revolving credit facility
 
225,844

 
235,320

Other non-current liabilities
 
207,348

 
183,814

Total liabilities
 
638,179

 
630,412

 
 
 
 
 
Shareholders’ equity:
 
 

 
 

Common stock
 
235

 
234

Additional paid-in capital
 
279,534

 
277,518

Retained earnings
 
255,038

 
236,459

Accumulated other comprehensive loss
 
(82,514
)
 
(83,052
)
Total shareholders’ equity
 
452,293

 
431,159

Total liabilities and shareholders’ equity
 
$
1,090,472

 
$
1,061,571




Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 6 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
 
 
Three Months Ended
 
 
June 30, 2019
 
June 30, 2018
Operating activities:
 
 
 
 
Net income
 
$
18,579

 
$
7,706

Adjustments to reconcile net income to net cash provided by (used for) operating activities:
 
 

 
 

Depreciation and amortization
 
7,403

 
8,832

Deferred income taxes and related valuation allowance
 
415

 
(2,084
)
Net loss (gain) on sale of real estate, investments, and other
 
(268
)
 
(16
)
Stock based compensation
 
1,556

 
1,335

Amortization of deferred financing costs and discount on debt
 
665

 
665

Net loss on sales of businesses, including impairment
 
169

 
11,100

Non-cash lease expense
 
1,952

 
—

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

 
 

Trade accounts receivable
 
(5,827
)
 
(5,553
)
Inventories
 
(3,879
)
 
(8,088
)
Prepaid expenses and other
 
(1,755
)
 
(296
)
Other assets
 
107

 
374

Trade accounts payable
 
(6,800
)
 
(2,488
)
Accrued liabilities
 
(6,322
)
 
(2,684
)
Non-current liabilities
 
(8,155
)
 
(685
)
Net cash provided by (used for) operating activities
 
(2,160
)
 
8,118

 
 
 
 
 
Investing activities:
 
 

 
 

Proceeds from sales of marketable securities
 
636

 
260

Purchases of marketable securities
 
(1,039
)
 
(150
)
Capital expenditures
 
(1,854
)
 
(2,338
)
Proceeds from sale of equipment and real estate
 
51

 
176

Net payment related to the sales of businesses
 
(214
)
 
—

Net cash provided by (used for) investing activities
 
(2,420
)
 
(2,052
)
 
 
 
 
 
Financing activities:
 
 

 
 

Proceeds from the issuance of common stock
 
980

 
3,641

Repayment of debt
 
(10,000
)
 
(10,000
)
Payment of dividends
 
(1,404
)
 
(1,153
)
Other
 
(518
)
 
(550
)
Net cash provided by (used for) financing activities
 
(10,942
)
 
(8,062
)
 
 
 
 
 
Effect of exchange rate changes on cash
 
145

 
(3,894
)
 
 
 
 
 
Net change in cash and cash equivalents
 
(15,377
)
 
(5,890
)
Cash, cash equivalents, and restricted cash at beginning of year
 
71,343

 
63,565

Cash, cash equivalents, and restricted cash at end of period
 
$
55,966

 
$
57,675




Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 7 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Q1 FY 2020 Sales Bridge
 
 
Quarter
($ in millions)
 
$ Change
 
% Change
Fiscal 2019 Sales
 
$
225.0

 
 
Divestitures
 
(11.1
)
 
 
Fiscal 2019 Sales adjusted for divestitures
 
$
213.9

 
 
 
 
 
 
 
Volume
 
0.1

 
0.1
 %
Pricing
 
3.8

 
1.8
 %
Foreign currency translation
 
(5.1
)
 
(2.4
)%
Total change adjusted for divestitures
 
$
(1.2
)
 
(0.5
)%
Fiscal 2020 Sales
 
$
212.7

 




COLUMBUS McKINNON CORPORATION
Q1 FY 2020 Gross Profit Bridge
($ in millions)
Quarter
Fiscal 2019 Gross Profit
$
79.6

Pricing, net of material cost inflation
2.5

Insurance settlement
0.3

Prior year STAHL integration costs
0.3

Productivity, net of other cost changes
0.2

Ohio plant closure
(0.5
)
Tariffs
(0.6
)
Foreign currency translation
(1.6
)
Divestitures
(1.8
)
Sales volume and mix
(2.8
)
Total change
$
(4.0
)
Fiscal 2020 Gross Profit
$
75.6







Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 8 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
 
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
($ in millions)
 
 
 
 
 
 
 
 
 
Backlog
 
$
148.2

 
 
$
161.5

 
 
$
163.9

 
Backlog excluding divestitures
 
$
148.2

 
 
$
161.5

 
 
$
156.3

 
Long-term backlog (expected to ship beyond 3 months)
 
$
53.9

 
 
$
61.7

 
 
$
54.2

 
Long-term backlog as % of total backlog
 
36.4

%
 
38.2

%
 
33.1

%
 
 
 
 
 
 
 
 
 
 
Trade accounts receivable
 
 

 
 
 

 
 
 

      
Days sales outstanding (1)
 
58.0

days
 
55.5

days
 
52.5

days
 
 
 
 
 
 
 
 
 
 
Inventory turns per year (1)
 
 

 
 
 

 
 
 

      
(based on cost of products sold)
 
3.6

turns
 
3.7

turns
 
3.7

turns
Days' inventory (1)
 
100.6

days
 
97.6

days
 
98.6

days
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
 
 

 
 
 

 
 
 

      
Days payables outstanding (1)
 
26.7

days
 
31.3

days
 
27.2

days
 
 
 
 
 
 
 
 
 
 
Working capital as a % of sales (1), (2)
 
19.3

%
 
17.2

%
 
19.4

%
 
 
 
 
 
 
 
 
 
 
Debt to total capitalization percentage
 
39.1

%
 
41.1

%
 
46.3

%
 
 
 
 
 
 
 
 
 
 
Debt, net of cash, to net total capitalization
 
34.2

%
 
34.7

%
 
42.0

%
(1) March 31, 2019 figures exclude the Tire Shredder business, which was divested on December 28, 2018, and Crane Equipment & Service, Inc. and Stahlhammer Bommern GmbH, each of which were divested on February 28, 2019.
(2) June 30, 2019 and March 31, 2019 figures exclude the Tire Shredder business, which was divested on December 28, 2018, and Crane Equipment & Service, Inc. and Stahlhammer Bommern GmbH, each of which were divested on February 28, 2019.

U.S. Shipping Days by Quarter 
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
FY 20
 
63
 
63
 
61
 
64
 
251
 
 
 
 
 
 
 
 
 
 
 
FY 19
 
64
 
63
 
60
 
63
 
250




Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 9 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Gross Profit to
Non-GAAP Adjusted Gross Profit and Adjusted Gross Margin
($ in thousands, except per share data)
 
Three Months Ended June 30,
 
2019
 
2018
Gross profit
$
75,612

 
$
79,647

Add back (deduct):
 
 
 
Ohio plant closure
506

 
—

China plant closure
—

 
—

STAHL integration costs
—

 
286

     Insurance settlement
(290
)
 
—

Non-GAAP adjusted gross profit
$
75,828

 
$
79,933

 
 
 
 
Sales
$
212,712

 
$
224,992

Adjusted gross margin
35.6
%
 
35.5
%

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 Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 10 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Income from Operations to
Non-GAAP Adjusted Income from Operations and Adjusted Operating Margin
($ in thousands, except per share data)
 
Three Months Ended June 30,
 
2019
 
2018
Income from operations
$
27,043

 
$
13,503

Add back (deduct):
 
 
 
China plant closure
521

 
—

Ohio plant closure
506

 
—

Net loss on sales of businesses, including impairment
169

 
11,100

Insurance recovery legal costs
139

 
—

Insurance settlement
(290
)
 
—

STAHL integration costs
—

 
1,906

Non-GAAP adjusted income from operations
$
28,088

 
$
26,509

 
 
 
 
Sales
$
212,712

 
$
224,992

Adjusted operating margin
13.2
%
 
11.8
%

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





Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 11 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income (Loss) 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,
 
2019
 
2018
Net income
$
18,579

 
$
7,706

Add back (deduct):
 
 
 
China plant closure
521

 
—

Ohio plant closure
506

 
—

Net loss on sales of businesses, including impairment
169

 
11,100

Insurance recovery legal costs
139

 
—

Insurance settlement
(290
)
 
—

STAHL integration costs
—

 
1,906

     Normalize tax rate to 22% (1)
(291
)
 
(3,173
)
Non-GAAP adjusted net income
$
19,333

 
$
17,539

 
 
 
 
Average diluted shares outstanding
23,777

 
23,610

 
 
 
 
Diluted income per share - GAAP
$
0.78

 
$
0.33

 
 
 
 
Diluted income per share - Non-GAAP
$
0.81

 
$
0.74

(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 and at 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, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies.



Columbus McKinnon Blueprint for Growth Strategy Delivered Record Operating Income in First Quarter Fiscal Year 2020
Page 12 of 12
July 30, 2019

COLUMBUS McKINNON CORPORATION
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
($ in thousands)

 
Three Months Ended June 30,
 
2019
 
2018
Net income
$
18,579

 
$
7,706

Add back (deduct):
 
 
 
     Income tax expense
5,162

 
1,774

     Interest and debt expense
3,852

 
4,607

Investment loss (income)
(302
)
 
(268
)
Foreign currency exchange (gain) loss
(410
)
 
(276
)
Other (income) expense, net
162

 
(40
)
Depreciation and amortization expense
7,403

 
8,832

China plant closure
521

 
—

Ohio plant closure
506

 
—

Net loss on sales of businesses, including impairment
169

 
11,100

Insurance recovery legal costs
139

 
—

Insurance settlement
(290
)
 
—

STAHL integration costs
—

 
1,906

Non-GAAP adjusted EBITDA
$
35,491

 
$
35,341

 
 
 
 
Sales
$
212,712

 
$
224,992

Adjusted EBITDA margin
16.7
%
 
15.7
%

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 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.