Columbus McKinnon Reports Continued Gross Margin Expansion in Fiscal 2014 Third Quarter

Columbus McKinnon Reports Continued Gross Margin Expansion in Fiscal 2014
Third Quarter

  *Gross margin improved 100 basis points in the quarter over the prior-year
    period
  *Year-to-date gross margin improved 220 basis points to 30.9%
  *Generated $16.2 million of cash from operations in the quarter
  *This quarter's order level was strongest in last three quarters

AMHERST, N.Y., Jan. 23, 2014 (GLOBE NEWSWIRE) -- Columbus McKinnon Corporation
(Nasdaq:CMCO), a leading designer, manufacturer and marketer of material
handling products, today announced financial results for its fiscal 2014 third
quarter which ended December 31, 2013.

Timothy T. Tevens, President and Chief Executive Officer, commented, "We had
solid results in the third quarter with sales increasing sequentially 4.5% as
our market leadership position enabled us to strengthen our positions in the
oil & gas, entertainment and industrial markets, as well as the currently
weaker construction and mining markets. Although volume was down year over
year, almost half of that was related to project timing. Encouragingly,
average sales per day are trending upward. Additionally, our improving margins
continue to demonstrate that our productivity enhancements are producing good
results."

Net sales for the third quarter of fiscal 2014 were $145.1 million, down $8.2
million, or 5.3%, from the prior-year period. Price improvements, incremental
revenue related to a recent acquisition and one additional shipping day helped
to partially offset the reduction in volume. Last year's third quarter had two
large rail & road projects totaling $6.5 million which did not repeat in this
year's quarter. Foreign exchange translation had a positive impact of $0.3
million in the quarter compared with the prior-year period.

U.S. sales, which comprised 54% of total sales, were down by $4.9 million, or
5.8%, to $79.0 million compared with the third quarter of fiscal 2013. Lower
volume was attributed to a reduction in volume at certain heavy OEM customers,
more than offsetting pricing improvements and the impact of one additional
shipping day.

Sales outside of the U.S. were down $3.3 million, or 4.7%, to $66.1 million.
Price increases, the impact of one additional shipping day and incremental
revenue related to the recent Austrian acquisition were more than offset by
lower volume. The volume decline was primarily due to the impact of the rail &
road projects shipped in the prior-year period as previously mentioned. While
economic indicators are beginning to show that activity is picking up in the
Eurozone, our sales tend to lag these indicators by three to six months. The
Austrian acquisition, which closed in June 2013, contributed $1.8 million of
sales during the third quarter of fiscal 2014.

The fluctuation in sales for the third quarter of fiscal 2014 compared with
the third quarter of fiscal 2013 is summarized as follows:

($ in millions)                       
                             $ Change % Change
Volume                        (15.0)   (9.8)%
Foreign currency translation  0.3      0.2%
Acquisitions and divestitures 1.8      1.2%
Pricing                      2.1      1.4%
Additional shipping day       2.6      1.7%
Total                         ($8.2)   (5.3)%

Improved Gross Margin

Gross profit in the third quarter of fiscal 2014 was $43.0 million, down $0.8
million from the prior-year period.Productivity gains of $0.8 million and
improved pricing net of material cost inflation of $1.4 million were more than
offset by the $3.1 million impact of lower volume. As a percentage of sales,
gross margin improved 100 basis points to 29.6% compared with 28.6% for the
prior-year period.

Selling expense was $16.2 million, down 1.2%, or $0.2 million, from the same
period of the prior year.As a percent of revenue, selling expense was 11.2%
compared with 10.7% in the same period last year.

General and administrative (G&A) expense was $15.2 million, up from $12.7
million in the prior-year period.G&A included an atypical level of merger and
acquisition (M&A) activity expenses, which were approximately $1.4 million.In
addition, approximately $0.3 million of expenses were associated with the
implementation of a new enterprise resource management system in Europe.As a
percent of sales, G&A was 10.5%, compared with 8.3% in the prior-year period.

Operating income in the fiscal 2014 third quarter was down $3.1 million, or
21.8%, to $11.1 million when compared with the third quarter of fiscal
2013.Operating margin was 7.7% in the third quarter of fiscal 2014 compared
with 9.3% in the prior-year period. Excluding the $1.4 million in M&A
expenses, operating margin would have been 8.6%.

The effective tax rate in the quarter was unusually low at 11.6%.This
compares with a rate of 11.1% in the prior-year period.Fiscal 2014's third
quarter tax rate was impacted by the reversal ofa reserveon anuncertain tax
position related to a potential foreign tax liability, while the prior-year
period's effective tax rate was impacted by a valuation allowance on deferred
tax assets, primarily in the U.S.

Third quarter fiscal 2014 net income was $6.7 million, or $0.33 per diluted
share, down from $9.6 million, or $0.49 per diluted share, in fiscal 2013's
third quarter. Adjusted for M&A expenses, at a pro forma tax rate of 30%,
earnings per diluted share were $0.31 in the third quarter compared with $0.38
per diluted share in the prior-year period.Further details of the
reconciliation of GAAP EPS to adjusted EPS are shown on page 11 of this
release.

Operations Continue to Provide Strong Cash Generation

Cash provided by operations was $16.2 million in the fiscal 2014 third
quarter.Working capital as a percentage of sales was 19.9% at the end of the
third quarter of 2014, down from 21.5% at the end of the trailing second
quarter of fiscal 2014.

Capital expenditures for the first nine months of fiscal 2014 were $13.5
million compared with $7.1 million in the prior-year period.Approximately
$2.6 million of fiscal 2014's capital expenditures was for the expansion of
the Company's production facilities in China and $1.6 million was associated
with the implementation of a new enterprise management system.The Company
continues to expect fiscal 2014 capital spending to be in the range of $20
million to $25 million.

Cash and cash equivalents were $123.9 million at December 31, 2013.Gross debt
atDecember 31, 2013 was $151.8 million.Debt, net of cash, was $27.9 million,
or 9.4% of net total capitalization.

First Nine Months Fiscal 2014 Review

Net sales for the first nine months of fiscal 2014 were $422.8 million, down
6.6%, or $29.9 million, from the prior-year period due to $42.0 million of
lower sales volume.Approximately $2.2 million of the decline was associated
with the net effect of acquisitions and divestitures. Partially offsetting
these declines were favorable pricing of $9.0 million and two additional
shipping days.Foreign currency translation had a $0.3 million positive impact
on sales in the first nine months of fiscal 2014.Sales to the U.S., which
represented 57% of total sales, were down 7.3% to $239.9 million.Non-U.S.
sales decreased by $11.0 million, or 5.7%, in the first nine months of fiscal
2014.Emerging markets represented 10.5% of total sales.

Gross profit in the first nine months of fiscal 2014 increased 0.6%, despite
lower sales, while gross margin expanded 220 basis points to 30.9%.Gross
margin expansion reflects productivity gains, the net effect of acquisitions
and divestitures and pricing.

Selling expenses increased $1.0 million, or 2.1%, to $50.2 million when
compared with the first nine months of fiscal 2013.As a percent of sales,
selling expenses were 11.9% in the first nine months of fiscal 2014 compared
with 10.9% in the prior-year period.G&A expenses were $42.2 million, up 7.1%
from $39.4 million in the prior-year period.Most of the increase can be
attributed to abnormally high expenses of $1.6 million related to merger and
acquisition activity. G&A expenses as a percent of sales were 10.0% in the
first nine months of fiscal 2014 compared with 8.7% in the prior-year period.

Operating income for the first nine months of fiscal 2014 decreased to $36.8
million from $39.9 million in the prior-year period. Operating margin was
8.7%, essentially flat with the operating margin of 8.8% in the prior year.

Net income for the first nine months of fiscal 2014 decreased by $5.5 million,
or 20.8%, to $20.8 million.Earnings per diluted share for the first nine
months of fiscal 2014 were down by 22.4% to $1.04 compared with $1.34 for the
prior-year period. Adjusted for M&A expenses, at a pro forma tax rate of 30%,
earnings per diluted share were $1.03 for the nine month period ended December
31, 2013, compared with $1.10 per diluted share in the prior-year
period.Further details of the reconciliation of GAAP EPS to adjusted EPS are
shown on page 11 of this release.

Slow, But Solid, Growth Outlook

Backlog was $98.4 million at December 31, 2013, an increase of $6.5 million,
or 7.1%, from backlog of $91.9 million at September 30, 2013.Although the
time to convert the majority of backlog to sales typically ranges 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, 2013, project-type backlog of $31.1 million, or 31.6% of total backlog,
was scheduled for shipment beyond March 31, 2014.Backlog at December 31, 2013
available for shipment in the quarter ended March 31, 2014 totaled $67.3
million.

Both U.S. and Eurozone capacity utilization are leading market indicators for
the Company.In December 2013, U.S. industrial capacity utilization was 77.9%,
compared with 77.1% in December 2012, and 76.8% in September 2013.Eurozone
capacity utilization was 78.4% in the quarter ended December 31, 2013, up from
77.2% during the quarter ended December 31, 2012, and up slightly from 78.3%
in the quarter ended September 30, 2013.The Company's sales tend to lag
changes in these indicators by one to two quarters.

Mr. Tevens commented, "We are encouraged with our sales efforts to drive
growth in targeted industries and geographic markets.Order levels in the
third quarter were the strongest so far this fiscal year. Backlog is up
sequentially as is capacity utilization in the U.S. and Europe. We expect to
benefit from our leading market position in developed markets and investments
we have made in emerging markets.We generate strong levels of cash throughout
the cycle that provides us the opportunity to execute our strategic growth
plans organically and through acquisitions. We continue to identify and target
strategic acquisitions to help stimulate our growth and have a pipeline of
opportunities that we are pursuing."

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 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 21, 2014 by dialing
203-369-3041.Alternatively, an archived webcast of the call will be on
Columbus McKinnon's web site at: http://www.cmworks.com/investors until
February 21, 2014.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, 2013 December 31, 2012 Change
                                                                    
Net sales                          $145,072          $153,225          -5.3%
Cost of products sold              102,075           109,428           -6.7%
Gross profit                       42,997            43,797            -1.8%
Gross profit margin                29.6%             28.6%             
Selling expense                    16,188            16,390            -1.2%
General and administrative expense 15,230            12,725            19.7%
Amortization                       478               493               -3.0%
Income from operations             11,101            14,189            -21.8%
Operating margin                   7.7%              9.3%              
Interest and debt expense          3,395             3,413             -0.5%
Investment income                  (254)             (354)             -28.2%
Foreign currency exchange loss     568               293               93.9%
Other (income) expense, net        (147)             65                NM
Income before                                                        
Income tax expense                 7,539             10,772            -30.0%
Income tax expense                 875               1,193             -26.7%
Net income                         $6,664            $9,579            -30.4%
                                                                    
Average basic shares outstanding   19,691            19,451            1.2%
Basic income per share:                                              
Basic income per share             $0.34             $0.49             -30.6%
                                                                    
Average diluted shares outstanding 20,019            19,697            1.6%
Diluted income per share:                                            
Diluted income per share           $0.33             $0.49             -32.7%


COLUMBUS McKINNON CORPORATION
Condensed Consolidated Income Statements
(Unaudited)
(In thousands, except per share and percentage data)
                                  
                                  Nine Months Ended
                                  December 31, 2013 December 31, 2012 Change
                                                                    
Net sales                          $422,815          $452,710          -6.6%
Cost of products sold              292,067           322,687           -9.5%
Gross profit                       130,748           130,023           0.6%
Gross profit margin                30.9%             28.7%             
Selling expense                    50,216            49,204            2.1%
General and administrative expense 42,247            39,448            7.1%
Amortization                       1,463             1,481             -1.2%
Income from operations             36,822            39,890            -7.7%
Operating margin                   8.7%              8.8%              
Interest and debt expense          10,138            10,418            -2.7%
Investment income                  (746)             (1,017)           -26.6%
Foreign currency exchange loss     988               147               572.1%
Other (income) expense, net        (1,319)           (429)             207.5%
Income before                                                        
Income tax expense                 27,761            30,771            -9.8%
Income tax expense                 6,955             4,504             54.4%
Net income                         $20,806           $26,267           -20.8%
                                                                    
Average basic shares outstanding   19,622            19,406            1.1%
Basic income per share:                                              
Basic income per share             $1.06             $1.35             -21.5%
                                                                    
Average diluted shares outstanding 19,915            19,620            1.5%
Diluted income per share:                                            
Diluted income per share           $1.04             $1.34             -22.4%


COLUMBUS McKINNON CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
                                                           
                                          December 31, 2013 March 31, 2013
                                                           
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                  $123,868          $121,660
Trade accounts receivable                  75,555            80,224
Inventories                                105,158           94,189
Prepaid expenses and other                 19,639            17,905
Total current assets                       324,220           313,978
                                                           
Net property, plant, and equipment         72,063            65,698
Goodwill                                   112,280           105,354
Other intangibles, net                     12,638            13,395
Marketable securities                      22,187            23,951
Deferred taxes on income                   39,692            37,205
Other assets                               6,490             7,286
Total assets                               $589,570          $566,867
                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Current liabilities:                                        
Trade accounts payable                     $30,126           $34,329
Accrued liabilities                        57,231            48,884
Current portion of long-term debt          1,138             1,024
Total current liabilities                  88,495            84,237
                                                           
Senior debt, less current portion          2,060             2,641
Subordinated debt                          148,618           148,412
Other non-current liabilities              82,300            91,590
Total liabilities                          321,473           326,880
                                                           
Shareholders' equity:                                       
Common stock                               197               195
Additional paid-in capital                 196,226           192,308
Retained earnings                          124,997           104,191
ESOP debt guarantee                        (244)             (552)
Accumulated other comprehensive loss       (53,079)          (56,155)
Total shareholders' equity                 268,097           239,987
Total liabilities and shareholders' equity $589,570          $566,867


COLUMBUS McKINNON CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
                                          
                                          Nine Months Ended
                                          December 31, 2013 December 31, 2012
                                                           
Operating activities:                                       
Net income                                 $20,806           $26,267
Adjustments to reconcile net income to net                  
cash provided by operating activities:
Depreciation and amortization             9,566             9,116
Deferred income taxes and related          (1,773)           153
valuation allowance
Gain on sale of real estate, investments,  (1,629)           (493)
and other
Stock based compensation                   2,707             2,474
Amortization of deferred financing costs   655               288
and discount on debt
Changes in operating assets and
liabilities, net of effects of business                     
acquisition and divestiture:
Trade accounts receivable                  6,572             9,330
Inventories                                (8,927)           4,129
Prepaid expenses                           (1,588)           (345)
Other assets                               534               415
Trade accounts payable                     (4,753)           (8,835)
Accrued and non-current liabilities        (4,212)           (16,212)
Net cash provided by operating activities  17,958            26,287
                                                           
Investing activities:                                       
Proceeds from sale of marketable           5,444             4,907
securities
Purchases of marketable securities         (3,611)           (2,724)
Capital expenditures                       (13,484)          (7,139)
Purchase of business, net of cash acquired (5,847)           --
Proceeds from sale of assets               --              2,357
Net cash used for investing activities     (17,498)          (2,599)
                                                           
Financing activities:                                       
Proceeds from stock options exercised      1,464             232
Net payments under lines-of-credit         (7)               (52)
Repayment of debt                          (566)             (592)
Payment of deferred financing costs        --              (684)
Change in ESOP guarantee                   308               318
Net cash provided by (used for) financing  1,199             (778)
activities
                                                           
Effect of exchange rate changes on cash    549               (446)
                                                           
Net change in cash and cash equivalents    2,208             22,464
Cash and cash equivalents at beginning of  121,660           89,473
year
Cash and cash equivalents at end of period $123,868          $111,937


COLUMBUS McKINNON CORPORATION
Additional Data
(Unaudited)
                                                                  
                                          December 31, December 31, March 31,
                                          2013         2012         2013
                                                                  
Backlog (in millions)                      $98.4        $95.4        $99.0
                                                                  
Trade accounts receivable                                          
Days sales outstanding                     47.4 days    46.7 days    50.5 days
                                                                  
Inventory turns per year                                           
(based on cost of products sold)           3.9 turns    4.3 turns    4.3 turns
Days' inventory                            93.6 days    84.9 days    84.9days
                                                                  
Trade accounts payable                                             
Days payables outstanding                  26.9 days    25.2 days    31.1 days
                                                                  
Working capital as a % of sales            19.9%        17.5%        18.3%
                                                                  
Debt to total capitalization percentage    36.2%        44.6%        38.8%
Debt, net of cash, to net total            9.4%         17.6%        11.2%
capitalization


Shipping Days by Quarter
              
     Q1  Q2 Q3 Q4 Total
              
FY14  64  63 61 62 250
              
FY13  63  63 60 62 248


COLUMBUS McKINNON CORPORATION
Reconciliation GAAP Diluted EPS to Adjusted Diluted EPS
                                                           
                                          Three Months Ended
                                          December 31, 2013 December 31, 2012
                                                           
GAAP diluted EPS                          $0.33             $0.49
Adjusted to reflect normalized 30% tax     ($0.07)           ($0.11)
rate
Adjusted for non-recurring M&A expenses    $0.05             --
(after tax)
Adjusted diluted EPS                      $0.31             $0.38
                                                           
                                          Nine Months Ended
                                          December 31, 2013 December 31, 2012
                                                           
GAAP diluted EPS                          $1.04             $1.34
Adjusted to reflect normalized 30% tax     ($0.06)           ($0.24)
rate
Adjusted for non-recurring M&A expenses    $0.05             --
(after tax)
Adjusted diluted EPS                      $1.03             $1.10

Adjusted diluted EPS is defined as diluted EPS as reported, adjusted to apply
a normalized tax rate. Adjusted diluted EPS 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 measure as used by
other companies.Nevertheless, Columbus McKinnon believes that providing
non-GAAP information such as adjusted 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 diluted EPS to the
historical period's diluted EPS.

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