Columbus McKinnon Reports Operating Income Expanded 18% on 7% Increase in Sales in Third Quarter Fiscal 2013

  Columbus McKinnon Reports Operating Income Expanded 18% on 7% Increase in
  Sales in Third Quarter Fiscal 2013

  *Sales outside the U.S. increased 9.7%; U.S. sales up 5.4%
  *Margins expand on higher volume and pricing; Gross margin increased 160
    basis points to 28.6%
  *Operating income grew 34.7% to $14.2 million compared with prior year
    adjusted operating income of $10.5 million, which excluded a one-time
    gain; Operating margin reached 9.3%
  *Adjusted operating leverage 34.9% in the third quarter, 41.1% operating
    leverage YTD
  *Net income grew 12.5% to $9.6 million, or $0.49 per diluted share
  *Generated $26.3 million in cash from operations in first nine months of
    fiscal 2013; Cash on hand at quarter end was $111.9 million; Net debt to
    net total capitalization was 17.6%

Business Wire

AMHERST, N.Y. -- January 25, 2013

Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer, manufacturer
and marketer of material handling products, today announced financial results
for its fiscal 2013 third quarter, which ended December 31, 2012.

Timothy T. Tevens, President and Chief Executive Officer, commented, “We
continue to have solid growth in emerging economies, specifically in China, as
our brand strength helps to drive demand. Investments in Asia that require our
equipment are also driving demand. U.S. order growth was flat in the third
quarter compared with the prior year due to the uncertain economic climate
that currently exists.”

Net sales for the third quarter of fiscal 2013 were $153.2  million, up $10.5
million, or  7.3%, from the prior-year period. U.S. sales, which comprised 54%
of total sales, increased $4.3 million, or 5.4%, to $83.1 million. End user
and channel partner demand, as well as two additional shipping days, were the
main drivers of higher U.S. sales this quarter when compared with the prior
year. Sales outside of the U.S. were up $6.2 million, or 9.7%, to $70.2
million, reflecting positive growth in emerging economies, the completion of
large engineered projects and the additional shipping days. Foreign currency
translation had a negative impact of $2.0 million, or 1.4%, on sales during
the quarter. Excluding the impact of foreign currency effects, sales outside
of the U.S. increased by 12.9%. Acquisitions and divestitures had a negative
impact of $2.6 million on sales when compared with the prior-year period.
Excluding the effects of foreign currency translation and acquisitions and
divestitures, revenue grew by 10.6% in the quarter.

The fluctuation in sales for the third quarter of fiscal 2013 compared with
fiscal 2012 is summarized as follows:

                                            $              %
($ in millions)                                            
                                            Change         Change
Increased volume                              6.4          4.6    %
Additional shipping days                      4.9          3.4    %
Pricing                                       3.8          2.6    %
Acquisitions and divestitures (net)           (2.6 )       (1.9   )%
Foreign currency translation                 (2.0 )       (1.4   )%
Total                                       $ 10.5        7.3    %
                                                                     

Volume and pricing drive margin improvements

Gross profit increased to $43.8 million, or 28.6% of net sales, for the fiscal
2013 third quarter from $38.6 million, or 27.0% of net sales, in fiscal 2012’s
third quarter. Improved gross profit was driven by volume and mix of $2.6
million combined with improved pricing of $3.8 million, which more than offset
material cost inflation. Foreign currency translation had a $0.6 million
unfavorable impact on gross profit.

Selling expenses were $16.4 million, up 2.6%, or $0.4 million, from the third
quarter of fiscal 2012. Increased costs were related to the Company’s
expansion into South Africa, as well as Turkey, Morocco and Dubai. As a
percent of revenue, selling expenses were 10.7% compared with 11.2% in the
same period last year.

General and administrative (G&A) expenses were $12.7 million, or 8.3% of net
sales, in the third quarter of fiscal 2013,  up 9.7% from the previous fiscal
year’s third quarter, when G&A was $11.6 million, or 8.1% of net sales. G&A
costs were up in the third quarter of fiscal 2013 due to investments for
growth in the Asia Pacific region. Also, the prior-year period had a favorable
pension adjustment of $0.6 million.

Operating income in the fiscal 2013 third quarter was up $2.2 million, or
18.2%, to $14.2 million. Operating margin expanded 90 basis points to 9.3%.
When adjusting the prior year’s third quarter operating income for the gain
realized on the sale of a closed facility, operating income grew 34.7% in the
fiscal 2013 third quarter. Operating leverage for the fiscal 2013 third
quarter was 34.9% when adjusted for the gain in the prior year’s quarter.

The effective tax rate for the 2013 third quarter was 11.1% compared with
16.4% in the third quarter of fiscal 2012. The effective tax rate for fiscal
2013 is expected be in the range of 13% to 17%, including the impact of the
valuation allowance on deferred tax assets. Tax rates for the Company are
impacted by the mix of income or loss among taxing jurisdictions, specifically
U.S. versus foreign jurisdictions and the impact of various state taxes within
the U.S.

Net income grew 12.5% to $9.6 million, or $0.49 per diluted share, in the
fiscal 2013 third quarter.

Strong cash generation and significant financial flexibility

Cash provided by operations for the first nine months of fiscal 2013 was $26.3
million, up $12.8 million over the prior-year period. Cash and cash
equivalents grew to $111.9 million at the end of fiscal 2013’s third quarter
from $89.5 million at March 31, 2012. Mr. Tevens noted, “With our solid cash
position and strong cash generation capability, we are well positioned to
execute our strategic growth plans and to focus on targeted activities to
utilize our excess cash.”

Working capital as a percentage of sales was 17.5% at the end of the third
quarter of fiscal 2013, unchanged from the third quarter of fiscal 2012, but
improved from 19.4% at the end of the second quarter of fiscal 2013.

Capital expenditures for the first nine months of fiscal 2013 were $7.1
million compared with $10.5 million in the comparable prior-year period.
Approximately $0.7 million was associated with the implementation of a new
enterprise management system. The Company expects fiscal 2013 capital spending
to be in the range of $12 million to $15 million.

Gross debt at the end of this fiscal year’s third quarter was $152.3 million.
Debt, net of cash, at December 31, 2012 was $40.4 million, or 17.6% of net
total capitalization, compared with $63.6 million, or 28.4% of net total
capitalization, at March 31, 2012. At December 31, 2012, the Company had $11.5
million in outstanding letters of credit.

First Nine Months of Fiscal 2013 Review

Net sales for the first nine months of fiscal 2013 were $452.7 million, up
4.7%, or $20.3 million, from the same period in the prior fiscal year. U.S.
sales, which drove the growth, were up $21.3 million, or 9.1%. Sales outside
of the U.S. decreased by $0.9 million, or 0.5%, in the first nine months of
fiscal 2013, representing 44% of total sales. Foreign currency translation had
a $16.3 million negative impact on sales in the first nine months of fiscal
2013. Net of foreign currency translation, revenue outside of the U.S. grew
7.7%.

Gross profit increased 14.6% and gross profit margin expanded 250 basis points
to 28.7% in the first nine months of fiscal 2013. Driving margin improvement
were higher sales volumes, increased pricing, improved productivity, and lower
product liability costs. This was partially offset by material inflation and
foreign currency translation.

Selling expenses were $49.2 million, an increase of $1.7 million, or 3.6%,
compared with the prior-year period. As a percent of sales, selling expenses
were 10.9% in the first nine months of fiscal 2013 compared with 11.0% in the
prior-year period. G&A expenses increased $5.5 million, or 16.2%. As a percent
of sales, G&A expenses were 8.7% in the current period, compared with 7.9% in
the prior-year period. Increased G&A in the first nine months of fiscal 2013
were due to expenses associated with the new ERP system implementation, higher
employee benefit costs, investments in Asia Pacific and general inflationary
increases.

Operating income grew 26.5% to $39.9 million, while operating margin expanded
150 basis points to 8.8% in the first nine months of fiscal 2013.

Net income for the nine-month period ended December 31, 2012 grew $8.3
million, or 46.2%, to $26.3 million. On a per diluted share basis, earnings in
the first nine months of fiscal 2013 grew 45.7% to $1.34 compared with $0.92
for the prior-year period.

Company expects growth to moderate

Backlog was $95.4 million at December 31, 2012 compared with $104.2 million at
December 31, 2011, when adjusted for the divestiture of the Gaffey crane
business. This reduction reflects the shipment of several large engineered
orders in the quarter. Although the time to convert the majority of backlog to
sales typically averages from one day to a few weeks, backlog can include
project-type orders from customers that have defined deliveries that may
extend out 12 to 24 months. As of December 31, 2012, approximately $33.2
million of backlog, or 34.8%, was scheduled for shipment beyond March 31,
2013.

Mr. Tevens noted, “We remain optimistic regarding Asia and Latin America as
those regions continue to grow despite global economic challenges. We are
expecting the recession that Europe is currently experiencing to have a
negative impact on sales in the near term and we are also seeing slower growth
in the U.S. It does appear, however, that we should see some strengthening in
those markets in the second half of 2013 barring major economic or
geopolitical issues. We continue to find opportunities to expand our business
as the sales operations that we have established in South Africa, Turkey,
Morocco and Dubai are proving successful and our operations in Asia Pacific
and Latin America continue to build.” Sales to emerging markets, which were
approximately 9.0% of total sales in the first nine months of fiscal 2013,
have grown 16.5% when compared with the prior-year period.

Both U.S. and Eurozone capacity utilization are leading market indicators for
the Company. U.S. industrial capacity utilization was 78.1% in December 2012,
up from 77.2% in December 2011, and improved from 77.4% in September 2012.
Eurozone capacity utilization was 76.8% in the quarter ended December 31,
2012, a decrease from 79.7% during the quarter ended December 31, 2011, as
well as from 77.9% at the end of September 2012. The European indicator
reflects the modest recession being experienced in the Eurozone, while the
U.S. indicator demonstrates slower economic growth. The Company’s sales tend
to lag these indicators by one to two quarters.

Teleconference/webcast

Columbus McKinnon will host a conference call and live webcast today at 10:00
a.m. 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 210-234-7695
and asking for the “Columbus McKinnon conference call”. The webcast can be
monitored on Columbus McKinnon’s website at http://www.cmworks.com/investors.
An audio recording of the call will be available two hours after its
completion through February 22, 2013 by dialing 203-369-0225. Alternatively,
an archived webcast of the call will be on Columbus McKinnon’s web site at:
http://www.cmworks.com/investors until February 22, 2013. 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, systems and services, which efficiently and
ergonomically move, lift, position and secure materials. Key products include
hoists, cranes, actuators and rigging tools. 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, 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.

Financial Tables follow.


COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
                                                                   
(In thousands, except per share and
percentage data)
                                                                       
                           Three Months Ended
                                                                       
                           December 31, 2012     December 31, 2011     Change
                                                                       
Net sales                  $   153,225           $   142,750           7.3%
Cost of products sold         109,428           104,147          5.1%
Gross profit                   43,797                38,603            13.5%
Gross profit margin            28.6          %       27.0          %
Selling expense                16,390                15,980            2.6%
General and                    12,725                11,605            9.7%
administrative expense
Restructuring charges          -                     (1,467    )       -100.0%
Amortization                  493               485              1.6%
Income from operations        14,189            12,000           18.2%
Operating margin               9.3           %       8.4           %
Interest and debt              3,413                 3,590             -4.9%
expense
Investment income              (354      )           (275      )       28.7%
Foreign currency               293                   (97       )       NM
exchange loss (gain)
Other (income) and            65                (1,399    )       NM
expense, net
Income before
income tax expense             10,772                10,181            5.8%
Income tax expense            1,193             1,666            -28.4%
Income from continuing         9,579                 8,515             12.5%
operations
Income from discontinued
operations -
net of tax                    -                 -         
Net income                 $   9,579          $   8,515            12.5%
                                                                       
Average basic shares           19,451                19,313            0.7%
outstanding
Basic income per share:
Income from continuing         0.49                  0.44
operations
Income from discontinued      -                 -         
operations
Net income                 $   0.49           $   0.44             11.4%
                                                                       
Average diluted shares         19,697                19,488            1.1%
outstanding
Diluted income per
share:
Income from continuing         0.49                  0.44
operations
Income from discontinued      -                 -         
operations
Net income                 $   0.49           $   0.44             11.4%



COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements - UNAUDITED
                                                                  
(In thousands, except per share and
percentage data)
                                                                      
                          Nine Months Ended
                                                                      
                          December 31, 2012     December 31, 2011     Change
                                                                      
Net sales                 $   452,710           $   432,373           4.7    %
Cost of products sold        322,687           318,897          1.2    %
Gross profit                  130,023               113,476           14.6   %
Gross profit margin           28.7          %       26.2          %
Selling expense               49,204                47,515            3.6    %
General and                   39,448                33,956            16.2   %
administrative expense
Restructuring charges         -                     (1,037    )       -100.0 %
Amortization                 1,481             1,515            -2.2   %
Income from operations       39,890            31,527           26.5   %
Operating margin              8.8           %       7.3           %
Interest and debt             10,418                10,651            -2.2   %
expense
Investment income             (1,017    )           (824      )       23.4   %
Foreign currency              147                   121               21.5   %
exchange loss
Other income, net            (429      )        (1,880    )       -77.2  %
Income before
income tax expense            30,771                23,459            31.2   %
Income tax expense           4,504             5,898            -23.6  %
Income from continuing        26,267                17,561            49.6   %
operations
Income from
discontinued operations
-
net of tax                   -                 409              -100.0 %
Net income                $   26,267         $   17,970           46.2   %
                                                                      
Average basic shares          19,406                19,256            0.8    %
outstanding
Basic income per share:
Income from continuing        1.35                  0.91
operations
Income from                  -                 0.02      
discontinued operations
Net income                $   1.35           $   0.93             45.2   %
                                                                      
Average diluted shares        19,620                19,526            0.5    %
outstanding
Diluted income per
share:
Income from continuing        1.34                  0.90
operations
Income from                  -                 0.02      
discontinued operations
Net income                $   1.34           $   0.92             45.7   %
                                                                             

                                                              
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets - UNAUDITED
(In thousands)                            
                                            December 31, 2012   March 31, 2012
                                                                
ASSETS
Current assets:
Cash and cash equivalents                   $   111,937         $  89,473
Trade accounts receivable                       78,710             88,642
Inventories                                     101,531            108,055
Prepaid expenses and other                     9,111           10,449   
Total current assets                           301,289         296,619  
                                                                
Net property, plant, and equipment              60,765             61,709
Goodwill                                        106,061            106,435
Other intangibles, net                          14,281             15,791
Marketable securities                           23,699             25,393
Deferred taxes on income                        3,033              2,824
Other assets                                   6,614           6,636    
Total assets                                $   515,742       $  515,407  
                                                                
                                                                
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Notes payable to banks                      $   -               $  112
Trade accounts payable                          30,310             40,991
Accrued liabilities                             51,603             61,713
Current portion of long-term debt              1,108           1,093    
Total current liabilities                      83,021          103,909  
                                                                
Senior debt, less current portion               2,881              3,749
Subordinated debt                               148,345            148,140
Other non-current liabilities                  92,035          99,143   
Total liabilities                              326,282         354,941  
                                                                
Shareholders’ equity:
Common stock                                    194                193
Additional paid-in capital                      191,945            189,260
Retained earnings                               52,162             25,895
ESOP debt guarantee                             (657      )        (975     )
Accumulated other comprehensive loss           (54,184   )      (53,907  )
Total shareholders’ equity                     189,460         160,466  
Total liabilities and shareholders’         $   515,742       $  515,407  
equity
                                                                

                                                          
COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows - UNAUDITED
                                                             
(In thousands)
                                         Nine Months Ended
                                         
                                         December 31, 2012   December 31, 2011
                                                             
Operating activities:
Net income                               $   26,267          $   17,970
Adjustments to reconcile net income to
net cash provided by operating
activities:
Gain from discontinued operations            -                   (409      )
Depreciation and amortization                9,116               8,609
Deferred income taxes and related            153                 378
valuation allowance
Gain on sale of real                         (431      )         (1,909    )
estate/investments
Gain on re-measurement of investment         -                   (850      )
Stock based compensation                     2,474               2,246
Amortization of deferred financing           226                 289
costs
Changes in operating assets and
liabilities:
Trade accounts receivable                    9,330               (775      )
Inventories                                  4,129               (14,011   )
Prepaid expenses                             (345      )         2,440
Other assets                                 415                 332
Trade accounts payable                       (8,835    )         927
Accrued and non-current liabilities         (16,212   )        (1,774    )
Net cash provided by operating              26,287            13,463    
activities
                                                             
Investing activities:
Proceeds from sale of marketable             4,907               5,747
securities
Purchases of marketable securities           (2,724    )         (4,503    )
Capital expenditures                         (7,139    )         (10,464   )
Purchase of businesses, net of cash          -                   (3,356    )
acquired
Proceeds from sale of assets                2,357             1,971     
Net cash used for investing activities      (2,599    )        (10,605   )
from continuing operations
Net cash provided by investing
activities from discontinued                -                 409       
operations
Net cash used for investing activities      (2,599    )        (10,196   )
                                                             
Financing activities:
Proceeds from stock options exercised        232                 1,733
Net payments under lines-of-credit           (52       )         (238      )
Repayment of debt                            (592      )         (488      )
Payment of deferred financing costs          (684      )         -
Change in ESOP guarantee                    318               324       
Net cash (used for) provided by             (778      )        1,331     
financing activities
                                                             
Effect of exchange rate changes on          (446      )        (2,704    )
cash
                                                             
Net change in cash and cash                  22,464              1,894
equivalents
Cash and cash equivalents at beginning      89,473            80,139    
of year
Cash and cash equivalents at end of      $   111,937        $   82,033    
period
                                                             

                                                                  
COLUMBUS McKINNON CORPORATION
Additional Data - UNAUDITED
                                                                         
                         December           December           March
                         31, 2012           31, 2011           31,
                                                               2012
                                                                         
Backlog, as              $95.4              $110.3             $114.2
reported(in millions)
Backlog, excluding
divestiture (in          $95.4              $104.2             $109.6
millions)
                                                                         
Trade accounts
receivable
days sales outstanding   46.7       days    50.6       days    50.6      days
                                                                         
Inventory turns per
year
(based on cost of        4.3        turns   4.0        turns   4.3       turns
products sold)
Days' inventory          84.9       days    91.4       days    85.5      days
                                                                         
Trade accounts payable
days payables            25.2       days    33.2       days    32.3      days
outstanding
                                                                         
Working capital as a %   17.5       %       17.5       %       17.6      %
of sales
                                                                         
Debt to total
capitalization           44.6       %       46.6       %       48.8      %
percentage
Debt, net of cash, to
net total                17.6       %       28.9       %       28.4      %
capitalization

                     
     Shipping Days by Quarter
                          
      Q1   Q2   Q3   Q4   Total
                          
FY 13 63   63   60   62   248
                          
FY 12 63   64   58   65   250

Contact:

Columbus McKinnon Corporation
Gregory P. Rustowicz, 716-689-5442
Vice President - Finance and Chief Financial Officer
greg.rustowicz@cmworks.com
or
Investor Relations:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com