0001005229false00010052292025-02-102025-02-10

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): February 10, 2025

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.)
 
13320 Ballantyne Corporate Place, Suite DCharlotteNC28277
(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 February 10, 2025, Columbus McKinnon Corporation (the "Registrant") issued a press release announcing its financial results for the third quarter, which ended December 31, 2024. 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 February 10, 2025
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:Executive Vice President Finance and Chief Financial Officer
  (Principal Financial Officer)

Dated: February 10, 2025


 cmcointelligentmotionlogo-a.jpg    
                            EXHIBIT 99.1
News Release
13320 Ballantyne Corporate Place Suite D
Charlotte, NC 28277
Immediate Release
Columbus McKinnon Reports Q3 FY25 Results
CHARLOTTE, NC, February 10, 2025 - Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2025 third quarter, which ended December 31, 2024.
Third Quarter 2025 Highlights (compared with prior-year period, except where otherwise noted)
•Net sales of $234.1 million with 7.6% operating margin or 10.9% on an adjusted basis1
•Orders decreased 4% driven by a 6% decrease in short-cycle orders
◦EMEA orders increased 1% offset by a 5% decline in the Americas
◦Strength in Precision conveyance and linear motion orders, up 16% and 8% respectively
•Backlog of $296.5 million remains healthy and continues to normalize with improved service levels
•GAAP EPS of $0.14 and Adjusted EPS1 of $0.56 include $0.08 per share impact of unfavorable FX movements in the quarter and $0.11 per share versus the prior year
•Repaid $15 million of debt in Q3 FY25; Anticipate FY25 debt repayment of $60 million

“The second half of our third quarter saw a slowing of industry demand. This was driven by delayed customer decision-making related to U.S. policy uncertainty, including tariffs as well as continued weakening in the European economies," said David J. Wilson, President and Chief Executive Officer. “Our results reflect lower than expected short-cycle demand which we expect will also impact the fourth quarter. The strengthening of the U.S. dollar negatively impacted earnings per share by $0.11 versus the prior year as well. As the quarter evolved, we executed actions to reduce costs and align capacity with demand, which will remain a focus the fourth quarter."
“While our optimism about the business remains unchanged, in the near-term our revised guidance contemplates a cautious approach to the evolving policy environment and subdued demand in Europe,” continued Wilson. “We remain focused on what we can control, with strong operational execution while making progress on our long-term strategic plan, including executing of our footprint simplification initiatives. Last week we initiated a consolidation of two additional factories into existing manufacturing capacity as part of our ongoing 80/20 footprint simplification plan. We are delivering impactful improvements across the business and remain in early innings in terms of the value these initiatives will deliver.”

Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
Third Quarter Fiscal 2025 Sales
($ in millions)
Q3 FY25
Q3 FY24
Change% Change
Net sales$234.1 $254.1 $(20.0)(7.9)%
U.S. sales$129.5 $138.5 $(9.0)(6.5)%
     % of total55 %55 %
Non-U.S. sales$104.6 $115.6 $(11.0)(9.5)%
     % of total45 %45 %
For the quarter, net sales decreased $20.0 million, or 7.9%. In the U.S., sales were down $9.0 million, or 6.5%, driven by lower volume. Sales outside the U.S. decreased $11.0 million, or 9.5%. Price improvement of $2.3 million partially offset $12.3 million of lower volume and unfavorable foreign currency translation of $1.0 million.
Third Quarter Fiscal 2025 Operating Results
($ in millions)
Q3 FY25Q3 FY24Change% Change
Gross profit$82.1 $93.9 $(11.8)(12.6)%
     Gross margin35.1 %36.9 %(180) bps
Adjusted Gross Profit1
$86.2 $94.5 $(8.3)(8.7)%
     Adjusted Gross Margin1
36.8 %37.2 %(40) bps
Income from operations$17.7 $26.9 $(9.2)(34.3)%
 Operating margin7.6 %10.6 %(300) bps
Adjusted Operating Income1
$25.6 $29.7 $(4.2)(14.0)%
     Adjusted Operating Margin1
10.9 %11.7 %(80) bps
Net income (loss)$4.0 $9.7 $(5.8)(59.3)%
     Net income (loss) margin1.7 %3.8 %(210) bps
GAAP EPS$0.14 $0.34 $(0.20)(58.8)%
Adjusted EPS1
$0.56 $0.74 $(0.18)(24.3)%
Adjusted EBITDA1
$37.8 $41.3 $(3.5)(8.6)%
     Adjusted EBITDA Margin1
16.1 %16.3 %(20) bps

Adjusted EPS1 excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability.










2
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
Fiscal 2025 Guidance

The Company is issuing the following guidance for the fiscal year 2025, ending March 31, 2025:
Metric
FY25
Net sales growth
Mid-single digit decrease year-over-year
Adjusted EPS2
Low-teens decrease year-over-year
Capital Expenditures
$18 million to $22 million
Net Leverage Ratio2
~3.0x

Fiscal 2025 guidance assumes approximately $32 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding.

Teleconference/Webcast
Columbus McKinnon will host a conference call today at 5:00 PM Eastern Time to discuss the Company's financial results and strategy. The conference call, earnings release and earnings presentation will be accessible through live webcast on the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website through Monday, February 24, 2025.


About Columbus McKinnon
Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning, and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.cmco.com.







______________________
1     Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.
2     The Company has not reconciled the Adjusted EPS and Net Leverage Ratio guidance to the most comparable GAAP financial measure outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measures. Forward-looking guidance regarding Adjusted EPS and Net Leverage Ratio is made in a manner consistent with the relevant definitions and assumptions noted herein and in alignment with the Company's financial covenants per the Company's Amended and Restated Credit Agreement.
3
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," “believe,” “continue,” “could,” “estimate,” “expect,” “illustrative,” “intend,” “likely,” “may,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including fiscal year 2025 net sales growth and Adjusted EPS guidance, and our fiscal year 2025 net leverage ratio and capital expenditure guidance; (ii) our operational and financial targets and capital allocation policy; (iii) general economic trends and trends in our industry and markets; (iv) the amount of debt to be paid down by the Company during fiscal year 2025; and (v) the competitive environment in which we operate; are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
Contacts:
Gregory P. RustowiczKristine Moser
EVP Finance and CFOVP IR and Treasurer
Columbus McKinnon CorporationColumbus McKinnon Corporation
716-689-5442704-322-2488
greg.rustowicz@cmco.comkristy.moser@cmco.com

Financial tables follow.
4
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)
 
Three Months Ended
 December 31,
2024		December 31,
2023		Change
Net sales$234,138 $254,143 (7.9)%
Cost of products sold152,041 160,246 (5.1)%
Gross profit82,097 93,897 (12.6)%
Gross profit margin35.1 %36.9 % 
Selling expenses27,348 26,552 3.0 %
% of net sales11.7 %10.4 %
General and administrative expenses24,233 26,255 (7.7)%
% of net sales10.3 %10.3 %
Research and development expenses5,325 6,692 (20.4)%
% of net sales2.3 %2.6 %
Amortization of intangibles7,501 7,486 0.2 %
Income from operations17,690 26,912 (34.3)%
Operating margin7.6 %10.6 % 
Interest and debt expense7,698 9,952 (22.6)%
Investment (income) loss(54)(758)(92.9)%
Foreign currency exchange (gain) loss3,128 (1,155)NM
Other (income) expense, net1,029 5,234 (80.3)%
Income (loss) before income tax expense (benefit)5,889 13,639 (56.8)%
Income tax expense (benefit)1,929 3,911 (50.7)%
Net income (loss)$3,960 $9,728 (59.3)%
Average basic shares outstanding28,631 28,744 (0.4)%
Basic income (loss) per share$0.14 $0.34 (58.8)%
Average diluted shares outstanding28,888 28,991 (0.4)%
Diluted income (loss) per share$0.14 $0.34 (58.8)%
Dividends declared per common share$0.07 $0.07 
















5
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
(In thousands, except per share and percentage data)

Nine Months Ended
 December 31,
2024		December 31,
2023		Change
Net sales$716,138 $748,036 (4.3)%
Cost of products sold470,268 467,513 0.6 %
Gross profit245,870 280,523 (12.4)%
Gross profit margin34.3 %37.5 % 
Selling expenses82,044 78,400 4.6 %
% of net sales11.5 %10.5 %
General and administrative expenses74,043 79,407 (6.8)%
% of net sales10.3 %10.6 %
Research and development expenses17,593 19,134 (8.1)%
% of net sales2.5 %2.6 %
Amortization of intangibles22,548 21,871 3.1 %
Income from operations49,642 81,711 (39.2)%
Operating margin6.9 %10.9 % 
Interest and debt expense24,285 28,788 (15.6)%
Investment (income) loss(873)(1,212)(28.0)%
Foreign currency exchange (gain) loss2,730 1,074 154.2 %
Other (income) expense, net25,512 5,840 336.8 %
Income (loss) before income tax expense (benefit)(2,012)47,221 NM
Income tax expense (benefit)442 12,405 (96.4)%
Net income (loss)$(2,454)$34,816 NM
Average basic shares outstanding28,778 28,711 0.2 %
Basic income (loss) per share$(0.09)$1.21 NM
Average diluted shares outstanding28,778 28,979 (0.7)%
Diluted income (loss) per share$(0.09)$1.20 NM
Dividends declared per common share$0.14 $0.14 
6
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
 December 31,
2024		March 31, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$41,224 $114,126 
Trade accounts receivable157,038 171,186 
Inventories200,687 186,091 
Prepaid expenses and other41,486 42,752 
Total current assets440,435 514,155 
Property, plant, and equipment, net105,637 106,395 
Goodwill700,550 710,334 
Other intangibles, net358,150 385,634 
Marketable securities10,565 11,447 
Deferred taxes on income1,515 1,797 
Other assets94,048 96,183 
Total assets$1,710,900 $1,825,945 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Trade accounts payable$73,019 $83,118 
Accrued liabilities93,595 127,973 
Current portion of long-term debt and finance lease obligations50,722 50,670 
Total current liabilities217,336 261,761 
Term loan, AR securitization facility and finance lease obligations435,075 479,566 
Other non current liabilities186,909 202,555 
Total liabilities$839,320 $943,882 
Shareholders’ equity:  
Common stock286 288 
Treasury stock(10,945)(1,001)
Additional paid in capital532,271 527,125 
Retained earnings388,851 395,328 
Accumulated other comprehensive loss(38,883)(39,677)
Total shareholders’ equity$871,580 $882,063 
Total liabilities and shareholders’ equity$1,710,900 $1,825,945 

7
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
(In thousands)
Nine Months Ended
 December 31,
2024		December 31,
2023
Operating activities:
Net income (loss)$(2,454)$34,816 
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization36,230 34,052 
Deferred income taxes and related valuation allowance(15,089)(6,495)
Net loss (gain) on sale of real estate, investments and other(617)(967)
Non-cash pension settlement23,634 4,599 
Stock-based compensation6,677 8,473 
Amortization of deferred financing costs1,865 1,728 
Impairment of operating lease3,268 — 
Loss (gain) on hedging instruments(321)1,193 
Loss (gain) on disposal of Fixed Assets394 — 
Non-cash lease expense7,657 7,080 
Changes in operating assets and liabilities, net of effects of business acquisitions:
Trade accounts receivable10,255 (14,911)
Inventories(18,894)(17,764)
Prepaid expenses and other(14,565)(2,897)
Other assets486 (859)
Trade accounts payable(8,061)(1,387)
Accrued liabilities(15,240)(7,236)
Non-current liabilities(5,225)(10,834)
Net cash provided by (used for) operating activities10,000 28,591 
Investing activities:  
Proceeds from sales of marketable securities4,301 1,101 
Purchases of marketable securities(3,257)(2,731)
Capital expenditures(15,266)(16,334)
Purchase of businesses, net of cash acquired— (108,145)
Dividend received from equity method investment — 144 
Net cash provided by (used for) investing activities(14,222)(125,965)
Financing activities: 
Proceeds from the issuance of common stock364 556 
Purchases of treasury stock(9,945)— 
Repayment of debt(45,495)(40,447)
Proceeds from issuance of long-term debt— 120,000 
Fees paid for borrowings on long-term debt— (2,859)
Payment to former owners of montratec(6,711)— 
Fees paid for debt repricing (169)— 
Cash inflows from hedging activities17,753 18,088 
Cash outflows from hedging activities(17,360)(19,303)
Payment of dividends(6,039)(6,027)
Other(1,897)(2,237)
Net cash provided by (used for) financing activities(69,499)67,771 
Effect of exchange rate changes on cash819 (628)
Net change in cash and cash equivalents(72,902)(30,231)
Cash, cash equivalents, and restricted cash at beginning of year$114,376 $133,426 
Cash, cash equivalents, and restricted cash at end of period$41,474 $103,195 
8
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Q3 FY 2025 Net Sales Bridge

QuarterYear To Date
($ in millions)$ Change% Change$ Change% Change
Fiscal 2024 Net Sales
$254.1 $748.0 
Acquisition— — %2.7 0.3 %
Pricing2.3 0.9 %9.6 1.3 %
Volume(21.3)(8.4)%(42.9)(5.7)%
Foreign currency translation(1.0)(0.4)%(1.3)(0.2)%
Total change$(20.0)(7.9)%$(31.9)(4.3)%
Fiscal 2025 Net Sales
$234.1 

$716.1 

COLUMBUS McKINNON CORPORATION
Q3 FY 2025 Gross Profit Bridge

($ in millions)QuarterYear To Date
Fiscal 2024 Gross Profit
$93.9 $280.5 
Acquisition— 0.8 
Price, net of manufacturing costs changes (incl. inflation)3.9 7.5 
Product liability1
(2.0)(2.0)
Monterrey, MX new factory start-up costs(2.6)(6.4)
Factory and warehouse consolidation costs(0.5)(11.3)
Sales volume and mix(9.9)(22.0)
Other(0.4)(0.8)
Foreign currency translation(0.3)(0.4)
Total change(11.8)(34.6)
Fiscal 2025 Gross Profit
$82.1 $245.9 

U.S. Shipping Days by Quarter 
 Q1Q2Q3Q4Total
FY2564636262251
FY2463626162248






______________________
1 Product liability represents a year-over-year difference between the current year adjustment increasing the Company's product liability reserve and the prior year's adjustment decreasing the Company's product liability reserve. For more details please see the Company's 10-Q filed with the Securities and Exchange Commission
9
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Additional Data1
(Unaudited)
Period Ended
 December 31, 2024September 30, 2024March 31, 2024December 31, 2023
($ in millions)
Backlog$296.5  $317.6 $280.8  $298.4 
Long-term backlog
  Expected to ship beyond 3 months$166.1 $172.5 $144.6 $151.3 
Long-term backlog as % of total backlog56.0 %54.3 %51.5 %50.7 %
Debt to total capitalization percentage35.8 %35.8 %37.5 %38.5 %
Debt, net of cash, to net total capitalization33.8 %33.2 %32.0 %33.7 %
Working capital as a % of sales 2
23.7 %23.3 %19.1 %20.6 %
Three Months Ended
 December 31, 2024September 30, 2024March 31, 2024December 31, 2023
($ in millions)
Trade accounts receivable    
Days sales outstanding61.0 days64.1 days58.7 days62.1 days
Inventory turns per year    
(based on cost of products sold)3.0 turns3.3 turns3.7 turns3.1 turns
Days' inventory121.7 days110.6 days98.6 days117.7 days
Trade accounts payable    
Days payables outstanding50.5 days46.3 days50.9 days50.1 days
Net cash provided by (used for) operating activities$11.4 $9.4 $38.6 $29.1 
Capital expenditures$5.2 $5.4 $8.5 $6.0 
Free Cash Flow 3
$6.2 $4.0 $30.1 $23.1 





______________________
1     Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company’s financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding.
2     March 31, 2024 and December 31, 2023 exclude the impact of the acquisition of montratec.
3     Free Cash Flow is a non-GAAP financial measure. Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. See the table above for the calculation of Free Cash Flow.
10
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.


COLUMBUS McKINNON CORPORATION
Reconciliation of Gross Profit to Adjusted Gross Profit
($ in thousands)

Three Months EndedNine Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Gross profit$82,097 $93,897 $245,870 $280,523 
Add back (deduct):
Business realignment costs526 150 994 346 
Hurricane Helene cost impact— — 171 — 
Factory and warehouse consolidation costs556 — 11,319 — 
Monterrey, MX new factory start-up costs3,038 435 6,848 435 
Adjusted Gross Profit$86,217 $94,482 $265,202 $281,304 
Net sales$234,138 $254,143 $716,138 $748,036 
Gross margin35.1 %36.9 %34.3 %37.5 %
Adjusted Gross Margin36.8 %37.2 %37.0 %37.6 %

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s gross profit and gross margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit and gross margin to that of other companies.
11
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Reconciliation of Income from Operations to Adjusted Operating Income
($ in thousands)

Three Months EndedNine Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Income from operations$17,690 $26,912 $49,642 $81,711 
Add back (deduct):
Acquisition deal and integration costs— 113 — 3,208 
Business realignment costs987 1,452 2,118 1,867 
Factory and warehouse consolidation costs653 — 12,557 199 
Headquarter relocation costs175 510 322 1,884 
Hurricane Helene cost impact— — 171 — 
Mexico customs duty assessment1,500 — 1,500 — 
Customer bad debt 1
1,299 — 1,299 — 
Monterrey, MX new factory start-up costs3,270 755 10,587 755 
Adjusted Operating Income$25,574 $29,742 $78,196 $89,624 
Net sales$234,138 $254,143 $716,138 $748,036 
Operating margin7.6 %10.6 %6.9 %10.9 %
Adjusted Operating Margin10.9 %11.7 %10.9 %12.0 %
1     Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025
Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s income from operations to the historical periods' income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.


12
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Income and Diluted Earnings per Share to
Adjusted Net Income and Adjusted Earnings per Share
($ in thousands, except per share data)

Three Months EndedNine Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Net income (loss)$3,960 $9,728 $(2,454)$34,816 
Add back (deduct):
Amortization of intangibles7,501 7,486 22,548 21,871 
Acquisition deal and integration costs— 113 — 3,208 
Business realignment costs987 1,452 2,118 1,867 
Factory and warehouse consolidation costs653 — 12,557 199 
Headquarter relocation costs175 510 322 1,884 
Hurricane Helene cost impact— — 171 — 
Mexico customs duty assessment1,500 — 1,500 — 
Customer bad debt1
1,299 — 1,299 — 
Monterrey, MX new factory start-up costs3,270 755 10,587 755 
Non-cash pension settlement expense433 4,599 23,634 4,599 
     Normalize tax rate2
(3,498)(3,227)(17,739)(7,996)
Adjusted Net Income$16,280 $21,416 $54,543 $61,203 
GAAP average diluted shares outstanding28,888 28,991 28,778 28,979 
Add back:
Effect of dilutive share-based awards— — 268 — 
Adjusted Diluted Shares Outstanding$28,888 $28,991 $29,046 $28,979 
GAAP EPS$0.14 $0.34$(0.09)$1.20
Adjusted EPS$0.56 $0.74$1.88 $2.11
1 Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025
2 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted Net Income is defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Diluted Shares Outstanding is defined as average diluted shares outstanding adjusted for the effect of dilutive share-based awards. Adjusted EPS is defined as Adjusted Net income per Adjusted Diluted Shares Outstanding. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of current periods' net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods' net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company’s net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and 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.
13
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Income to Adjusted EBITDA
($ in thousands)

Three Months EndedNine Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Net income (loss)$3,960 $9,728 $(2,454)$34,816 
Add back (deduct):
Income tax expense (benefit)1,929 3,911 442 12,405 
Interest and debt expense7,698 9,952 24,285 28,788 
Investment (income) loss(54)(758)(873)(1,212)
Foreign currency exchange (gain) loss3,128 (1,155)2,730 1,074 
Other (income) expense, net
1,029 5,234 25,512 5,840 
Depreciation and amortization expense
12,202 11,570 36,230 34,052 
Acquisition deal and integration costs— 113 — 3,208 
Business realignment costs987 1,452 2,118 1,867 
Factory and warehouse consolidation costs653 — 12,557 199 
Headquarter relocation costs175 510 322 1,884 
Hurricane Helene cost impact— — 171 — 
Mexico customs duty assessment1,500 — 1,500 — 
 Customer bad debt1
1,299 — 1,299 — 
Monterrey, MX new factory start-up costs3,270 755 10,587 755 
Adjusted EBITDA$37,776 $41,312 $114,426 $123,676 
Net sales$234,138 $254,143 $716,138 $748,036 
Net income margin1.7 %3.8 %(0.3)%4.7 %
Adjusted EBITDA Margin16.1 %16.3 %16.0 %16.5 %
1 Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025
Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not a measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.

14
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
COLUMBUS McKINNON CORPORATION
Reconciliation of Net Leverage Ratio
($ in thousands)
Twelve Months Ended
December 31, 2024December 31, 2023
Net income (loss)$9,355 $48,711 
Add back (deduct):
Annualize EBITDA for the montratec acquisition1
— 2,131 
Annualize synergies for the montratec acquisition1
— 184 
Income tax expense (benefit)2,939 19,904 
Interest and debt expense33,454 36,456 
Non-cash pension settlement24,019 4,599 
Amortization of deferred financing costs2,486 2,158 
Stock Compensation Expense10,243 11,859 
Depreciation and amortization expense48,124 44,619 
Cost of debt refinancing1,190 — 
Acquisition deal and integration costs3 3,381 
Excluded acquisition deal and integration costs2
— (172)
Acquisition inventory step-up expense— — 
Business realignment costs2,118 2,715 
Monterrey, MX new factory start up costs14,321 755 
Excluded Monterrey, MX new factory start-up costs3
(7,461)— 
Factory and warehouse consolidation costs13,102 199 
Headquarter relocation costs497 2,565 
Mexico customs duty assessment1,500 — 
Customer bad debt4
1,299 — 
Hurricane Helene cost impact171 — 
Other excluded costs3
(4,257)(848)
Credit Agreement Trailing Twelve Month Adjusted EBITDA$153,103 $179,216 
Current portion of long-term debt and finance lease obligations$50,722 $50,652 
Term loan, AR securitization facility and finance lease obligations435,075 499,388 
Total debt$485,797 $550,040 
Standby Letters of Credit15,440 15,740 
Cash and cash equivalents(41,224)(102,945)
Net Debt$460,013 $462,835 
Net Leverage Ratio3.00x 2.58x
1     EBITDA is normalized to include a full year of the acquired entity and assumes all cost synergies are achieved in TTM Q3 FY24.
2     The Company's credit agreement definition of Adjusted EBITDA excludes certain acquisition deal and integration costs and business realignment costs that are incurred beyond one year after the close of an acquisition.
3     The Company's credit agreement definition of Adjusted EBITDA excludes any cash restructuring costs in excess of $10 million per fiscal year
4    Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025

Net Debt is defined in the credit agreement as total debt plus standby letters of credit, net of cash and cash equivalents. Net Leverage Ratio is defined as Net Debt divided by the Credit Agreement Trailing Twelve Month Adjusted EBITDA. Credit Agreement Trailing Twelve Month Adjusted EBITDA is defined in the Company's credit agreement as net income adjusted for interest expense, income taxes, depreciation, amortization, and other adjustments. Net Debt, Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Net Debt, Net
15
Columbus McKinnon Reports Q3 FY25 Results
February 10, 2025
Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are important for investors and other readers of the Company’s financial statements.
16
v3.25.0.1
Document and Entity Information Document
Feb. 10, 2025
Document Information [Line Items]  
Entity Emerging Growth Company false
Pre-commencement Issuer Tender Offer false
Pre-commencement Tender Offer false
Soliciting Material false
Written Communications false
Title of 12(b) Security Common Stock, $0.01 par value per share
Entity Address, Address Line One 13320 Ballantyne Corporate Place, Suite D
Entity File Number 001-34362
Document Type 8-K
Document Period End Date Feb. 10, 2025
Entity Registrant Name Columbus McKinnon Corporation
Entity Incorporation, State or Country Code NY
Entity Tax Identification Number 16-0547600
Entity Address, City or Town Charlotte
Entity Address, State or Province NC
Entity Address, Postal Zip Code 28277
City Area Code 716
Local Phone Number 689-5400
Trading Symbol CMCO
Security Exchange Name NASDAQ
Entity Central Index Key 0001005229
Amendment Flag false
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