NEWS RELEASE
CONTACT:
Robert R. Friedl
Vice President - Finance and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5479
COLUMBUS MCKINNON ADJUSTS ACCOUNTING TREATMENT
ON HEADQUARTERS PROPERTY SALE
AMHERST, N.Y., February 16, 2005--Columbus McKinnon Corporation (NASDAQ: CMCO)
issued a press release on February 1, 2005 reporting the January 28, 2005 sale
and partial leaseback of its headquarters property in Amherst, New York, which
it is amending based on further clarification of the required accounting
treatment of leaseback components of the transaction. In that release, Columbus
McKinnon stated that it would realize a gain from the transaction of $2.7
million, or $0.18 per share in the fourth quarter of fiscal 2005 ending on March
31, 2005.
The economic benefit of the transaction remains the same, and cash proceeds from
the sale are $2.7 million, as previously reported.
The required accounting treatment of the leaseback component of the transaction
defers a portion of the gain, and the non-cash consideration received is removed
from the gain.
As a result, the gain on the transaction will be recorded as $2.2 million, or
$0.5 million less than previously reported. Of the total gain, $1.0 million, or
$0.07 per share, will be recognized in the fourth quarter ending March 31, 2005,
and $1.2 million will be deferred and recognized as income over the 10-year
leaseback period. Additionally, the $0.5 million of non-cash value will be
recognized as lower operating expenses over the 10-year leaseback period.
Separately, on January 14, 2005, Columbus McKinnon had announced that it had
completed the sale of a Chicago area property for $3.675 million. The favorable
effect to net income in the fourth quarter of fiscal 2005 ending on March 31,
2005 for this transaction will be as previously reported $2.65 million, or $0.18
per diluted share. Total net income effect in the fourth quarter 2005 as a
result of the gains made on the two property sales is expected to be $3.65
million, or $0.25 per share. Total cash proceeds received from the sale of the
two properties was $6.38 million, and the Company intends to use these proceeds
to reduce debt.
ABOUT COLUMBUS MCKINNON
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Columbus McKinnon is a leading worldwide designer and manufacturer of material
handling products, systems and services, which efficiently and ergonomically
move, lift, position or secure material. Key products include hoists, cranes,
chain and forged attachments. 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 web site at HTTP://WWW.CMWORKS.COM.
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SAFE HARBOR STATEMENT
This press 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, and
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 changes in accounting
regulations 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.
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