Columbus McKinnon Reports 21% Increase in Operating Income on 11% Growth in Revenue for Fourth Quarter Fiscal 2014

Columbus McKinnon Reports 21% Increase in Operating Income on 11% Growth in
Revenue for Fourth Quarter Fiscal 2014

  *Fourth quarter sales were up 11% to $160.5 million driven by 16% increase
    in non-U.S. sales and 7% increase in U.S. sales
  *Gross margin improved 70 basis points to 31.3% in the fourth quarter over
    the prior-year period; Fiscal 2014 gross margin improved 180 basis points
    to 31.0%
  *Generated $29.5 million of cash from operations in fiscal 2014.
  *Announced regular quarterly dividend of $0.04 per share during the quarter
  *Acquired Unified Industries in quarter and expanded product offerings

AMHERST, N.Y., May 22, 2014 (GLOBE NEWSWIRE) -- Columbus McKinnon Corporation
(Nasdaq:CMCO), a leading designer, manufacturer and marketer of material
handling products and services, today announced financial results for its
fiscal fourth quarter and full year ended March 31, 2014. Results include the
acquisition of Unified Industries, Inc. on February 28, 2014. Unified
Industries, Inc. designs, manufactures and markets overhead light rail
workstations primarily used in automotive and industrial applications.

Net sales for the fourth quarter of fiscal 2014 were $160.5million, up $15.9
million, or 11.0%, from the prior-year period. Sales volume was the largest
driver of improved revenue; however price improvements and incremental revenue
related to acquisitions also contributed to the growth. Foreign exchange
translation had a positive impact on sales of $0.2 million in the quarter
compared with the prior-year period.

Timothy T. Tevens, President and Chief Executive Officer, commented, "We
recognized strong demand in the fourth quarter which converted to revenue very
quickly. We completed the installation of a large Rail & Road project in
Canada and were excited to see Europe rebound rather nicely from its lows.
Higher volume along with productivity improvements drove gross profits at a
greater rate than sales as we realized the leverage inherent in our business.
Additionally, our recent Unified acquisition was accretive in the quarter and
will have a positive impact on sales and operating income in fiscal 2015."

U.S. sales, which comprised 57% of total sales, were up by $6.2 million, or
7.3%, to $91.5 million compared with the fourth quarter of fiscal 2013. This
growth was generated by higher volume on improved demand, price increases and
$1.0 million in revenue associated with the Unified acquisition.

Sales outside of the U.S. were up $9.7 million, or 16.3%, to $69.0 million.
Higher demand, especially in EMEA, along with the Rail & Road project in
Canada drove the increased volume. Additionally, price increases, $1.7 million
of incremental revenue related to the first quarter Austrian acquisition and
foreign exchange translation all benefited sales outside the U.S.

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

($ in millions)                       
                             $ Change % Change
Volume                        11.8     8.1%
Acquisitions and divestitures 2.7      1.9%
Pricing                      1.2      0.9%
Foreign currency translation  0.2      0.1%
Total                         $15.9    11.0%

Fourth Quarter Margin Growth Drives Bottom-line Expansion

Gross profit was $50.3 million, up $6.1 million from the prior-year period.As
a percentage of sales, gross margin improved 70 basis points to 31.3% compared
with 30.6% for the prior-year period.Gross profit growth was driven by the

                                                Impact on Gross Profit
Higher sales volume                             $3.3 million
Productivity gains                               $1.4 million
Improved pricing net of material cost inflation $1.0 million
Acquisitions                                    $0.7 million
Product liability costs                         ($0.3 million)

Selling expense was $18.7 million, up from $16.4 million in the same period of
the prior year.As a percent of revenue, selling expense was 11.7% compared
with 11.3% in the same period last year.

General and administrative (G&A) expense was up $0.7 million to $13.5 million
from the prior-year period.As a percent of sales, G&A declined to 8.4%,
compared with 8.9% in the prior-year period.

Operating income grew 21%, or $3.0 million, to $17.5 million over the
prior-year period.Operating margin improved to 10.9% in the quarter compared
with 10.0% in the prior-year period.Operating leverage was 19.1%. 

The effective tax rate in the quarter was 35.7%. The fourth quarter of fiscal
2013 included the benefit of a reversal of a deferred tax asset valuation
allowance, and as a result, the prior year tax rate is not meaningful for
comparison with this quarter's tax rate.

Fourth quarter fiscal 2014 net income was $9.6 million, or $0.48 per diluted
share.This compares with $2.64 per diluted share, which included a $49.0
million tax valuation allowance reversal in the 2013 fourth quarter. On an
adjusted basis, excluding the tax valuation allowance reversal and applying a
more normalized tax rate of 30%, earnings per diluted share were $0.52
compared with $0.42 in the 2013 fourth quarter.Further details of the
reconciliation of adjusted EPS to GAAP EPS are shown on page 11 of this

Consistent Cash Generation Enables Financial Flexibility for Acquisitions and

Cash provided by operations was $11.5 million in the fiscal 2014 fourth
quarter.Working capital as a percentage of sales was 21.7% at the end of the
fourth quarter of 2014, compared with 18.3% at the end of fiscal 2013's fourth
quarter.This was driven by an increase in trade accounts receivable as a
result of the 11% increase in quarterly sales compared with the previous
year.The Company expects working capital as a percentage of sales to revert
back to more normal levels in fiscal 2015.

Capital expenditures for fiscal 2014 were $20.8 million compared with $14.9
million in the prior-year period.Capital expenditures for the expansion of
the Company's production facilities in China were approximately $6.4 million
of which $4.4 million was expended in fiscal 2014 with the remaining $2
million in accounts payable at fiscal year end.There were $2.7 million in
capital investments during the year that were associated with the
implementation of a new enterprise resource planning system.The Company
expects fiscal 2015 capital spending to be in the range of $20 million to
$25 million.

Cash and cash equivalents were $112.3 million at March 31, 2014.Gross debt at
March 31, 2014 was $152.3 million.Debt, net of cash, was $40.0 million, or
12.1% of net total capitalization.

Mr. Tevens commented, "Our Company has demonstrated throughout business cycles
that we can generate strong levels of cash.This provides us the opportunity
to execute our strategic growth plans both organically and through
acquisitions, while also rewarding our shareholders with the re-initiation of
our quarterly dividend."

Fiscal 2014 Review

Net sales for fiscal 2014 were $583.3 million, down 2.3%, or $14.0 million, on
lower volume which was somewhat offset by improved pricing, two additional
shipping days and the net impact of acquisitions and divestitures. Foreign
currency translation had a $0.6 million positive impact on sales in fiscal
2014.Sales to the U.S., which represented 57% of total sales, were down 3.7%
to $331.4 million.Non-U.S. sales decreased by $1.4 million, or 0.5%.Emerging
markets represented 9.9% of total sales.

Gross profit in fiscal 2014 increased 3.9% despite lower sales while gross
margin expanded 180 basis points to 31.0%.Gross margin expansion reflects
productivity gains, the net effect of acquisitions and divestitures and

Selling expenses increased $3.4 million, or 5.1%, to $69.0 million.As a
percent of sales, selling expenses were 11.8% in fiscal 2014 compared with
11.0% in the prior year.G&A expenses were $55.8 million, up 6.7% from $52.3
million in fiscal 2013.G&A expenses as a percent of sales were 9.6% in fiscal
2014 compared with 8.8% in the prior-year period.G&A expenses in fiscal 2014
included $1.7 million of atypical merger and acquisition expenses. 

Operating income for fiscal 2014 was flat with the prior year at $54.4
million, despite lower sales. Operating margin of 9.3%, improved over the
operating margin of 9.1% in the prior year.

Net income for fiscal 2014 was $30.4 million.Net income for fiscal 2013 was
$78.3 million and included the reversal of a deferred tax asset valuation
allowance which created a $49.0 million tax benefit. Earnings per diluted
share for fiscal 2014 were $1.52 compared with $1.49 per diluted share in 2013
when adjusted for the tax valuation allowance reversal of $2.49 per diluted

Solid Growth Outlook as Strategic Investments Take Root and Global Economies
Moderately Expand

Backlog was $86.8 million at March 31, 2014, a decrease of $11.6 million, or
11.8%, from backlog of $98.4 million at December 31, 2013 due to strong fourth
quarter shipment levels, a good portion of which was related to the large Rail
& Road project installed in Canada and other project backlog that was
shipped.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.Backlog at March 31, 2014 available for shipment in the quarter
ended June 30, 2014 totaled $57.2 million.As of March 31, 2014, project-type
backlog of $29.6 million, or 34.1% of total backlog, was scheduled for
shipment beyond June 30, 2014.This compares with project-type backlog of
$31.1 million at the end of the trailing third quarter and $33.0 million at
March 31, 2013.

Both U.S. and Eurozone capacity utilization are leading market indicators for
the Company.In March 2014, U.S. industrial capacity utilization improved to
77.6%, compared with 76.8% in March 2013, and 77.1% in December 2013.Eurozone
capacity utilization was up measurably to 80.1% in the quarter ended March 31,
2014, compared with 77.6% during the quarter ended March 31, 2013, and 78.4%
in the quarter ended December 31, 2013.The Company's sales tend to lag
changes in these indicators by one to two quarters.

Mr. Tevens commented, "We are making great strides in our targeted vertical
market expansion such as the oil & gas, entertainment, automotive and
aerospace industries. In addition, we expect to benefit from our leading
market position in developed markets and the investments we have made in
emerging markets."

Mr. Tevens concluded, "We believe that our continuous improvement activities
have created greater earnings power in the organization which is readily
apparent with higher volume and profits, as evidenced by this quarter."


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 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 audio recording of the call will be
available two hours after its completion through June 22, 2014 by dialing
203-369-1850.Alternatively, an archived webcast of the call will be on
Columbus McKinnon's web site at: June
22, 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

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.

Condensed Consolidated Income Statements
(In thousands, except per share and percentage data)
                                         Three Months Ended
                                         March 31, 2014 March 31, 2013 Change
Net sales                                 $160,475       $144,553       11.0%
Cost of products sold                     110,175        100,345        9.8%
Gross profit                              50,300         44,208         13.8%
Gross profit margin                       31.3%          30.6%          
Selling expense                           18,747         16,404         14.3%
General and administrative expense        13,507         12,823         5.3%
Amortization                              518            500            3.6%
Income from operations                    17,528         14,481         21.0%
Operating margin                          10.9%          10.0%          
Interest and debt expense                 3,354          3,339          0.4%
Investment income                         (849)          (529)          60.5%
Foreign currency exchange loss (gain)     136            (192)          NM
Other (income) expense, net               (74)           12             NM
Income before income tax expense          14,961         11,851         26.2%
Income tax expense (benefit)              5,346          (40,178)       NM
Net income                                $9,615         $52,029        -81.5%
Average basic shares outstanding          19,755         19,464         1.5%
Basic income per share:                                               
Basic income per share                    $0.49          $2.67          -81.6%
Average diluted shares outstanding        20,075         19,730         1.7%
Diluted income per share:                                             
Diluted income per share                  $0.48          $2.64          -81.8%

Condensed Consolidated Income Statements
(In thousands, except per share and percentage data)
                                         Year Ended
                                         March 31, 2014 March 31, 2013 Change
Net sales                                 $583,290       $597,263       -2.3%
Cost of products sold                     402,242        423,032        -4.9%
Gross profit                              181,048        174,231        3.9%
Gross profit margin                       31.0%         29.2%         
Selling expense                           68,963         65,608         5.1%
General and administrative expense        55,754         52,271         6.7%
Amortization                              1,981          1,981          0.0%
Income from operations                    54,350         54,371         0.0%
Operating margin                          9.3%          9.1%          
Interest and debt expense                 13,492         13,757         -1.9%
Investment income                         (1,595)        (1,546)        3.2%
Foreign currency exchange loss (gain)     1,124          (45)           NM
Other (income) expense, net               (1,393)        (417)          234.1%
Income before income tax expense          42,722         42,622         0.2%
Income tax expense (benefit)              12,301         (35,674)       NM
Net income                                $30,421        $78,296        -61.1%
Average basic shares outstanding          19,655         19,425         1.2%
Basic income per share:                                               
Basic income per share                    $1.55          $4.03          -61.5%
Average diluted shares outstanding        19,950         19,687         1.3%
Diluted income per share:                                             
Diluted income per share                  $1.52          $3.98          -61.8%

Condensed Consolidated Balance Sheets
(In thousands)
                                          March 31, 2014 March 31, 2013
Current assets:                                          
Cash and cash equivalents                  $112,309       $121,660
Trade accounts receivable                  93,223         80,224
Inventories                                97,576         94,189
Prepaid expenses and other                 23,444         17,905
Total current assets                       326,552        313,978
Net property, plant, and equipment         78,687         65,698
Goodwill                                   119,303        105,354
Other intangibles, net                     20,842         13,395
Marketable securities                      21,941         23,951
Deferred taxes on income                   23,406         37,205
Other assets                               7,943          7,286
Total assets                               $598,674       $566,867
Current liabilities:                                     
Trade accounts payable                     $35,359        $34,329
Accrued liabilities                        52,348         48,884
Current portion of long-term debt          1,588          1,024
Total current liabilities                  89,295         84,237
Senior debt, less current portion          2,020          2,641
Subordinated debt                          148,685        148,412
Other non-current liabilities              67,388         91,590
Total liabilities                          307,388        326,880
Shareholders' equity:                                    
Common stock                               198            195
Additional paid-in capital                 198,546        192,308
Retained earnings                          133,820        104,191
ESOP debt guarantee                        (142)          (552)
Accumulated other comprehensive loss       (41,136)       (56,155)
Total shareholders' equity                 291,286        239,987
Total liabilities and shareholders' equity $598,674       $566,867

Condensed Consolidated Statements of Cash Flows
(In thousands)
                                                Year Ended
                                                March 31, 2014 March 31, 2013
Operating activities:                                          
Net income                                       $30,421        $78,296
Adjustments to reconcile net income to net cash                
provided by operating activities:
Depreciation and amortization                    13,380         12,115
Deferred income taxes and related valuation      5,031          (42,047)
Gain on sale of real estate, investments, and    (2,332)        (827)
Stock based compensation                         3,633          3,334
Amortization of deferred financing costs and     870            592
discount on debt
Changes in operating assets and liabilities, net
of effects of business acquisition and                         
Trade accounts receivable                        (9,318)        6,712
Inventories                                      1,312          10,106
Prepaid expenses                                 (3,750)        (1,283)
Other assets                                     (273)          (354)
Trade accounts payable                           (2,821)        (5,465)
Accrued liabilities                              1,081          (12,268)
Non-current liabilities                          (7,727)        (6,533)
Net cash provided by operating activities        29,507         42,378
Investing activities:                                          
Proceeds from sale of marketable securities      6,689          6,573
Purchases of marketable securities               (4,099)        (4,138)
Capital expenditures                             (20,846)       (14,879)
Purchases of businesses, net of cash acquired    (22,169)       --
Proceeds from sale of assets                     --             2,357
Net cash used for investing activities           (40,425)       (10,087)
Financing activities:                                          
Proceeds from stock options exercised            2,194          295
Net payments under lines-of-credit               (7)            (54)
Repayment of debt                                (858)          (1,066)
Payment of deferred financing costs              --             (684)
Change in ESOP guarantee                         410            423
Net cash provided by (used for) financing        1,739          (1,086)
Effect of exchange rate changes on cash          (172)          982
Net change in cash and cash equivalents          (9,351)        32,187
Cash and cash equivalents at beginning of year   121,660        89,473
Cash and cash equivalents at end of period       $112,309       $121,660

Additional Data
                                   March 31, 2014 December 31, 2013 March 31,
Backlog (in millions)               $86.8          $98.4             $99.0
Trade accounts receivable                                          
days sales outstanding              52.9 days      47.4 days         50.5 days
Inventory turns per year                                           
(based on cost of products sold)    4.5 turns      3.9 turns         4.3 turns
Days' inventory                     81.1 days      93.6 days         84.9 days
Trade accounts payable                                             
days payables outstanding           29.2 days      26.9 days         31.1 days
Working capital as a % of sales     21.7%          19.9%             18.3%
Debt to total capitalization        34.3%          36.2%             38.8%
Debt, net of cash, to net total     12.1%          9.4%              11.2%

Shipping Days by Quarter
      Q1 Q2 Q3 Q4 Total
FY 15  63 64 60 63 250
FY 14  64 63 61 62 250
FY 13  63 63 60 62 248

Reconciliation GAAP Diluted EPS to Adjusted Diluted EPS
                                              Three Months Ended
                                              March 31, 2014 March 31, 2013
GAAP diluted EPS                              $0.48          $2.64
Adjustment to reflect normalized 30% tax rate $0.04          ($2.22)
Adjusted diluted EPS                          $0.52          $0.42

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
         Investor Relations:
         Deborah K. Pawlowski
         Kei Advisors LLC
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