NEWS RELEASE
CONTACT:
Karen L. Howard
Vice President-Finance and Chief Financial Officer
Columbus McKinnon Corporation
Phone: 716-689-5550
KAREN.HOWARD@CMWORKS.COM
COLUMBUS MCKINNON REPORTS FISCAL 2007 SECOND QUARTER
NET INCOME PER SHARE OF $0.44, UP 110% ON 7% REVENUE GROWTH
o NET INCOME INCREASES $5.1 MILLION; UP 57% OVER YEAR-AGO PRO FORMA NET
INCOME
o OPERATING INCOME INCREASES 21% TO $16.1 MILLION; 11.2% OPERATING
MARGIN; 29.8% OPERATING INCOME LEVERAGE ON INCREMENTAL SALES
o DEBT, NET OF CASH REDUCED $11.6 MILLION IN QUARTER TO 40% OF TOTAL
CAPITALIZATION
AMHERST, N.Y., October 24, 2006 - Columbus McKinnon Corporation (NASDAQ: CMCO),
a leading designer, manufacturer and marketer of material handling products,
today announced financial results for its fiscal 2007 second quarter that ended
on October 1, 2006. For the quarter, net sales were $144.2 million, up 7.1% from
last year's second quarter. Gross margin improved 100 basis points to 27.1%
compared with 26.1% in the second quarter of fiscal 2006 and operating income
improved to $16.1 million for the fiscal 2007 second quarter, up $2.8 million,
or 21.4%. As a percent of sales, operating income produced an 11.2% margin in
the fiscal 2007 quarter compared with 9.8% in the same period last year.
Net income for the fiscal 2007 second quarter was $8.3 million, up $5.0 million
or 155% over net income of $3.3 million in the same quarter last year. Net
income per share for the fiscal 2007 second quarter was $0.44 on 18.9 million
average diluted shares with a 110% increase from $0.21 on 15.4 million average
diluted shares in the same period last year.
Net income for the second quarter of fiscal 2006 included the negative impact of
$3.3 million associated with refinancing subordinated debt. Excluding those
charges from the 2006 second quarter, adjusting for a consistent tax rate, and
using the same number of average diluted shares outstanding as the fiscal 2007
second quarter, results in pro forma net income for the fiscal 2006 second
quarter of $5.3 million, or $0.28 per share. This comparison results in growth
of pro forma net income and net income per share of 57% in the fiscal 2007
second quarter. (See reconciliation between GAAP net income and non-GAAP pro
forma net income included in the final table of this news release).
Timothy T. Tevens, President and Chief Executive Officer, commented, "Columbus
McKinnon continues to achieve meaningful improvement in our operating
profitability driven by an ongoing focus on productivity enhancements, favorable
operating leverage, strong order volume around the world and a significant
reduction in debt. Our outlook remains positive as we have and will continue to
introduce varying capacities of our new international-rated wire rope hoist line
and other new products."
He continued, "Bookings for the second quarter and first half were up 9% over
last year, which also had strong bookings growth. As capacity utilization around
the world remains strong so have our bookings and corresponding revenues.
Accordingly, the present economic climate would indicate an expectation that our
business should continue to show favorable growth."
SECOND QUARTER FISCAL 2007 REVIEW
The fiscal 2007 second quarter net sales increase of $9.5 million over last
year's second quarter net sales of $134.7 million reflects continued global
demand for Columbus McKinnon's material handling products. On a sequential
quarter basis, net sales declined by $2.5 million, with the Products segment
gain of $0.9 million more than offset by the Solutions segment's $3.4 million
reduction; Solutions segment sales are "long cycle" projects and
quarter-to-quarter comparisons are not always meaningful.
Gross profit increased 11.0% on the 7.1% increase in sales. Operating leverage
resulted in $0.30 growth in operating income per incremental sales dollar over
the year ago quarter. Higher selling expenses of $1.7 million, or 12.7%, were
the result of investments made in accordance with our strategic growth
initiatives. General and administrative expense was relatively flat when
compared with the prior year's second quarter as higher R&D costs, personnel
training and stock options expense were offset by lower variable compensation
and other expenses in last year's second fiscal quarter.
Interest and debt expense for the second quarter of fiscal 2007 was down $2.4
million, or 37.0%, to $4.2 million from $6.6 million in the fiscal 2006 second
quarter. Reduced interest expense was a direct result of the Company's continued
focus on debt reduction, especially higher cost debt.
At the end of the quarter, funded debt was $176.1 million compared with $209.8
million and $183.4 million at the end of fiscal 2006 and first quarter fiscal
2007, respectively. Debt, net of cash at October 1, 2006, was $151.9 million, or
40.4% net debt to total capitalization compared with 71.8% a year earlier. The
funded debt to total capitalization ratio at the end of the fiscal 2007 second
quarter was 44.0%, down from 46.1% in the fiscal 2007 first quarter, and well
below Columbus McKinnon's short-term goal of a debt to total capitalization
ratio below 50% while moving closer to the Company's long-term goal of a 30%
debt to total capitalization ratio. The Company continues to make strides in
pursuit of this goal and during the month of October to date has purchased $3.0
million of its 10% notes, leaving $25.8 million outstanding. The Company's
capitalization goals are designed to maintain a conservative capital structure
with the flexibility to support its growth strategies. The Company's
availability on its line of credit with its bank group at October 1, 2006 was
$64.1 million.
Capital expenditures for the second quarter of fiscal 2007 were $2.4 million
compared with $2.1 million for the same period in fiscal 2006. Capital spending
is focused on new product development and the purchase of productivity-enhancing
equipment along with normal maintenance items. The Company anticipates full year
capital spending to range from $8 to $10 million.
PRODUCTS SEGMENT
- ----------------
Products segment net sales for the second quarter of fiscal 2007 represented
89.5% of consolidated net sales. The segment's net sales increased $8.4 million,
or 7.0%, to $129.0 million when compared with the second quarter of fiscal 2006.
Quarterly variances between quarters are summarized as follows, in millions:
Volume $ 6.1 5.0%
Price 1.1 1.0%
Foreign currency translation 1.2 1.0%
----- ----
Total $ 8.4 7.0%
===== ====
Gross margin for this segment was 29.4% compared with 27.1% in last year's
second quarter. Income from operations, as a percent of sales, was 13.2% for
this period, up from 10.5% in the fiscal 2006 second quarter, with operating
leverage being 52.0% in the quarter.
2
Backlog was at $54.9 million at the end of the quarter. Backlog at the end of
the fiscal 2006 second quarter and fiscal 2007 first quarter was $40.2 million
and $58.4 million, respectively. The higher backlog compared with the prior year
period was the result of the rapid growth of orders in specific product lines.
Compared with backlog at the end of the first quarter of fiscal 2007, backlog
was down $3.5 million, reflecting improvements in lead-time reductions. Further
improvements are anticipated over the next several quarters in our engineered
hoist and crane businesses. The time to convert Products segment backlog to
sales averages from a few days to a few weeks, and backlog for this segment on
average normally represents four to five weeks of shipments. The higher backlog
at second quarter end represented closer to five and one-half weeks in
shipments.
SOLUTIONS SEGMENT
- -----------------
Net sales for the Solutions segment were $15.2 million in the fiscal 2007 second
quarter, up 8.2%, from sales of $14.0 million in the same period last year.
Gross margin was 7.4% compared with 17.8% last year. Income from operations as a
percent of sales was negative (6.2%) for this period compared with 4.1% in the
fiscal 2006 second quarter. This year's second quarter was impacted by weak
performance reported by the Company's European powered-roller conveyor business.
Performance on a specific project coupled with less-than-desired order activity
during the quarter contributed to the results. With quoting activity continuing
to be high with consistent success rates, October bookings amounting to $5
million thus far are encouraging.
Backlog for the Solutions segment at October 1, 2006 was $4.4 million, down from
backlog of $17.4 million at the end of the fiscal 2006 second quarter and $11.4
million at the end of the fiscal 2007 first quarter. The decrease was due to
weak order activity during this year's second quarter at the Company's
powered-roller conveyor business as previously noted. For this segment, the
average cycle time for backlog to convert to sales ranges from one to six
months.
FIRST HALF FISCAL 2007 REVIEW
Net sales for the first half of fiscal 2007 were $290.9 million, up 5.6%, or
$15.3 million compared with the first half of fiscal 2006. Gross profit of $81.3
million was 13.4% higher for this fiscal year's first six months resulting in a
190 basis point improvement in gross profit margin to 27.9%. Selling, general
and administrative (SG&A) expenses combined were $47.7 million in the fiscal
2007 first half compared with $43.5 million in the prior fiscal year. As a
percent of sales, SG&A was 16.4% and 15.8% for the fiscal 2007 and 2006
half-year periods, respectively. As previously noted, the increase was primarily
due to investments made to support our strategic growth initiatives. Interest
expense in the first half of fiscal 2007 was down $4.7 million, or 34.9%, to
$8.7 million reflecting the $83 million year-over-year reduction in average debt
outstanding.
Operating margin for the first half of fiscal 2007 was 11.6% compared with 10.1%
for the first half of fiscal 2006, representing 39.1% operating leverage.
Net income for the fiscal 2007 first half was $13.9 million, or $0.73 per
diluted share compared with $10.6 million, or $0.70 per diluted share in the
fiscal 2006 first half. For the 2007 first half, net income grew by 31.2% while
diluted earnings per share increased 4.3%; this differential results from higher
weighted average shares outstanding. Excluding unusual items in the fiscal 2007
first quarter and the fiscal 2006 second quarter, adjusting for the consequent
tax effects, and using the same number of average diluted shares outstanding as
the fiscal 2007 first half, results in pro forma net income of $17.7 million, or
$0.93 per diluted share for the fiscal 2007 first half, a 63.5% increase from
pro forma net income of $10.8 million, or $0.57 per diluted share for the fiscal
2006 first half. (See reconciliation between GAAP net income and non-GAAP pro
forma net income included in the final table of this news release).
Net cash provided by operations was $15.0 million for the fiscal 2007 first half
compared with $24.2 million in the fiscal 2006 first half. Temporary higher
working capital requirements affected cash generation.
3
SUMMARY
Mr. Tevens noted, "Demand continues to be strong with Products segment bookings
through the first half of fiscal 2007 up 9% compared with last year. We will
continue to improve order-to-delivery cycle time to optimize our yield on this
market strength, and we also continue to progress on our profitability
improvement strategy within our Solutions segment. Going forward, our growth
plans include reducing dependence on the U.S. industrial cycle by expanding and
deepening our reach into Europe, Asia and Latin America, including the emerging
economies of those regions. To do this effectively and to also capture more
share of the U.S. material handling market, we will remain innovative in our
product development, become quicker to market with our new products, acquire
small bolt-on businesses that provide value-added product line extensions and
expand our penetration in higher growth U.S. markets such as construction and
energy."
He concluded, "We are essentially on track to achieve our previously stated goal
of 11% - 12% operating margin on approximately $600 million in sales expected
this fiscal year. There continue to be further opportunities for sales growth
and margin expansion through new products, expansion in international markets
and productivity improvement."
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 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.
- ----------------------
TELECONFERENCE AND WEBCAST
A teleconference and webcast have been scheduled for October 24, 2006 at 10:00
AM Eastern Time at which the management of Columbus McKinnon will discuss the
Company's financial results and strategy. Interested parties in the United
States and Canada can participate in the teleconference by dialing
1-888-459-1579, and asking to be placed in the "Columbus McKinnon Quarterly
Conference Call" and providing the password "Columbus McKinnon" and identifying
conference leader "Tim Tevens" when asked. The toll number for parties outside
the United States and Canada is +1-210-234-7695. The webcast will be accessible
at Columbus McKinnon's web site: http://www.cmworks.com.
An audio recording of the call will be available two hours after its completion
and until December 22, 2006 by dialing 1-866-457-5503. Alternatively, you may
access an archive of the call until December 22, 2006 on Columbus McKinnon's web
site at: HTTP://WWW.CMWORKS.COM/INVREL/PRESENTATION.ASP.
----------------------------------------------
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,
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.
4
COLUMBUS MCKINNON CORPORATION
CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA)
THREE MONTHS ENDED
------------------
OCTOBER 1, 2006 OCTOBER 2, 2005 CHANGE
--------------- --------------- ------
NET SALES $ 144,225 $ 134,712 7.1%
Cost of products sold 105,208 99,554 5.7%
--------------------------------------
Gross profit 39,017 35,158 11.0%
Gross profit margin 27.1 % 26.1 %
Selling expense 14,739 13,080 12.7%
General and administrative expense 8,540 8,539 0.0%
Restructuring charges (410) 211 -294.3%
Amortization 44 61 -27.9%
--------------------------------------
INCOME FROM OPERATIONS 16,104 13,267 21.4%
--------------------------------------
Interest and debt expense 4,176 6,633 -37.0%
Other (expense) income 1,066 (1,864) -157.2%
--------------------------------------
Income from continuing operations before
income tax expense 12,994 4,770 172.4%
Income tax expense 4,898 1,721 184.6%
--------------------------------------
Income from continuing operations 8,096 3,049 165.5%
Income from discontinued operations 218 214 1.9%
--------------------------------------
NET INCOME $ 8,314 $ 3,263 154.8%
======================================
Average basic shares outstanding 18,500 14,845 24.6%
Basic income per share:
Continuing operations $ 0.44 $ 0.21 109.5%
Discontinued operations 0.01 0.01
--------------------------------------
Net income $ 0.45 $ 0.22 104.5%
======================================
Average diluted shares outstanding 18,873 15,431 22.3%
Diluted income per share:
Continuing operations $ 0.43 $ 0.20 115.0%
Discontinued operations 0.01 0.01
--------------------------------------
Net income $ 0.44 $ 0.21 109.5%
======================================
5
COLUMBUS MCKINNON CORPORATION
CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA)
SIX MONTHS ENDED
----------------
OCTOBER 1, 2006 OCTOBER 2, 2005 CHANGE
--------------- --------------- ------
NET SALES $ 290,919 $ 275,589 5.6%
Cost of products sold 209,619 203,888 2.8%
--------------------------------------
Gross profit 81,300 71,701 13.4%
Gross profit margin 27.9 % 26.0 %
Selling expense 30,106 26,738 12.6%
General and administrative expense 17,629 16,714 5.5%
Restructuring charges (406) 237 -271.3%
Amortization 87 123 -29.3%
--------------------------------------
INCOME FROM OPERATIONS 33,884 27,889 21.5%
--------------------------------------
Interest and debt expense 8,688 13,349 -34.9%
Other (expense) income (2,504) (1,075) 132.9%
--------------------------------------
Income from continuing operations before
income tax expense 22,692 13,465 68.5%
Income tax expense 9,163 3,308 177.0%
--------------------------------------
Income from continuing operations 13,529 10,157 33.2%
Income from discontinued operations 357 428 -16.6%
--------------------------------------
NET INCOME $ 13,886 $ 10,585 31.2%
======================================
Average basic shares outstanding 18,465 14,757 25.1%
Basic income per share:
Continuing operations $ 0.73 $ 0.69 5.8%
Discontinued operations 0.02 0.03
--------------------------------------
Net income $ 0.75 $ 0.72 4.2%
======================================
Average diluted shares outstanding 18,917 15,227 24.2%
Diluted income per share:
Continuing operations $ 0.71 $ 0.67 6.0%
Discontinued operations 0.02 0.03
--------------------------------------
Net income $ 0.73 $ 0.70 4.3%
======================================
6
COLUMBUS MCKINNON CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
OCTOBER 1, 2006 MARCH 31, 2006
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 24,177 $ 45,598
Trade accounts receivable 94,433 95,726
Unbilled revenues 16,832 12,061
Inventories 85,904 74,845
Prepaid expenses 18,216 15,676
---------------------------------
Total current assets 239,562 243,906
---------------------------------
Net property, plant, and equipment 54,542 55,132
Goodwill and other intangibles, net 187,685 187,327
Marketable securities 27,149 27,596
Deferred taxes on income 37,355 46,065
Other assets 5,463 6,018
---------------------------------
TOTAL ASSETS $ 551,756 $ 566,044
=================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks $ 7,616 $ 5,798
Trade accounts payable 41,105 39,311
Accrued liabilities 59,344 61,264
Restructuring reserve 421 793
Current portion of long-term debt 215 127
---------------------------------
Total current liabilities 108,701 107,293
---------------------------------
Senior debt, less current portion 32,220 67,841
Subordinated debt 136,000 136,000
Other non-current liabilities 50,693 50,489
---------------------------------
Total liabilities 327,614 361,623
---------------------------------
Shareholders' equity:
Common stock 187 185
Additional paid-in capital 173,085 170,081
Retained earnings 65,038 51,152
ESOP debt guarantee (3,705) (3,996)
Unearned restricted stock - (22)
Accumulated other comprehensive loss (10,463) (12,979)
---------------------------------
Total shareholders' equity 224,142 204,421
---------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 551,756 $ 566,044
=================================
7
COLUMBUS MCKINNON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
SIX MONTHS ENDED
----------------
OCTOBER 1, 2006 OCTOBER 2, 2005
--------------- ---------------
OPERATING ACTIVITIES:
Income from continuing operations $ 13,529 $ 10,157
Adjustments to reconcile income from continuing
operations to net cash provided by operating activities:
Depreciation and amortization 4,208 4,651
Deferred income taxes 8,710 1,795
Gain on sale of investments/real estate (1,170) (1,547)
Loss on early retirement of bonds 3,780 2,298
Stock option expense 866 -
Amortization/write-off of deferred financing costs 1,148 1,672
Changes in operating assets and liabilities:
Trade accounts receivable 2,278 2,381
Unbilled revenues and excess billings (4,212) (2,798)
Inventories (10,532) (301)
Prepaid expenses (2,521) (97)
Other assets (258) (202)
Trade accounts payable 1,102 4,666
Accrued and non-current liabilities (1,967) 1,487
---------------------------------
Net cash provided by operating activities 14,961 24,162
---------------------------------
INVESTING ACTIVITIES:
Sale of marketable securities, net 777 475
Capital expenditures (4,336) (3,761)
Proceeds from sale of property 2,051 2,091
Proceeds from discontinued operations note receivable -
revised 357 428
---------------------------------
Net cash used by investing activities (1,151) (767)
---------------------------------
FINANCING ACTIVITIES:
Proceeds from stock options exercised 2,051 2,729
Net borrowings under revolving line-of-credit agreements - (1,110)
Repayment of debt (37,754) (126,953)
Proceeds from issuance of long-term debt - 136,000
Deferred financing costs incurred (395) (1,566)
Other 291 294
---------------------------------
Net cash used by financing activities (35,807) 9,394
---------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 576 267
---------------------------------
Net change in cash and cash equivalents (21,421) 33,056
Cash and cash equivalents at beginning of year 45,598 9,479
---------------------------------
Cash and cash equivalents at end of period $ 24,177 $ 42,535
=================================
8
COLUMBUS MCKINNON CORPORATION
BUSINESS SEGMENT DATA
(IN THOUSANDS, EXCEPT PERCENTAGE DATA)
QUARTER ENDED QUARTER ENDED
OCTOBER 1, 2006 OCTOBER 2, 2005 % CHANGE
--------------- --------------- ----------
PRODUCTS
Net sales $129,037 $120,674 6.9%
Gross profit 37,896 32,665 16.0%
MARGIN 29.4 % 27.1 %
Income from operations 17,039 12,692 34.2%
MARGIN 13.2 % 10.5 %
SOLUTIONS
Net sales $ 15,188 $ 14,038 8.2%
Gross profit 1,121 2,493 -55.0%
MARGIN 7.4 % 17.8 %
Income from operations (935) 575 -262.6%
MARGIN (6.2)% 4.1 %
CONSOLIDATED
Net sales $144,225 $134,712 7.1%
Gross profit 39,017 35,158 11.0%
MARGIN 27.1 % 26.1 %
Income from operations 16,104 13,267 21.4%
MARGIN 11.2 % 9.8 %
SIX MONTHS ENDED SIX MONTHS ENDED
OCTOBER 1, 2006 OCTOBER 2, 2005 % CHANGE
--------------- --------------- ----------
PRODUCTS
Net sales $257,176 $244,555 5.2%
Gross profit 77,313 66,885 15.6%
MARGIN 30.1 % 27.4 %
Income from operations 33,848 26,820 26.2%
MARGIN 13.2 % 11.0 %
SOLUTIONS
Net sales $ 33,743 $ 31,034 8.7%
Gross profit 3,987 4,816 -17.2%
MARGIN 11.8 % 15.5 %
Income from operations 36 1,069 -96.6%
MARGIN 0.1 % 3.4 %
CONSOLIDATED
Net sales $290,919 $275,589 5.6%
Gross profit 81,300 71,701 13.4%
MARGIN 27.9 % 26.0 %
Income from operations 33,884 27,889 21.5%
MARGIN 11.6 % 10.1 %
9
COLUMBUS MCKINNON CORPORATION
ADDITIONAL DATA
OCTOBER 1, 2006 MARCH 31, 2006 OCTOBER 2, 2005
--------------- -------------- ---------------
BACKLOG (IN MILLIONS)
Products segment $ 54.9 $ 53.6 $ 40.2
Solutions segment $ 4.4 $ 13.0 $ 17.4
TRADE ACCOUNTS RECEIVABLE
days sales outstanding 59.6 days 59.2 days 58.1 days
INVENTORY TURNS PER YEAR
(based on cost of products sold) 4.9 turns 5.7 turns 5.1 turns
DAYS' INVENTORY 74.5 days 64.4 days 71.2 days
TRADE ACCOUNTS PAYABLE
days payables outstanding 35.6 days 33.7 days 34.6 days
WORKING CAPITAL AS A % OF SALES 20.0 % 17.4 % 18.1 %
DEBT TO TOTAL CAPITALIZATION PERCENTAGE 44.0 % 50.6 % 75.0 %
DEBT, NET OF CASH, TO TOTAL
CAPITALIZATION 40.4 % 44.5 % 71.8 %
SHIPPING DAYS BY QUARTER
Q1 Q2 Q3 Q4 TOTAL
-- -- -- -- -----
FY07 63 63 59 64 249
FY06 65 63 58 65 251
10
COLUMBUS MCKINNON CORPORATION
RECONCILIATION BETWEEN GAAP NET INCOME AND NON-GAAP NET INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED
------------------
OCTOBER 1, 2006 OCTOBER 2, 2005
--------------- ---------------
GAAP NET INCOME $ 8,314 $ 3,263
Reconciliation between GAAP Net Income and
Non-GAAP Pro Forma Net Income:
Financing costs for 2008 Notes repurchase - 3,341
Income tax expense - (1,320)
-----------------------------------
NON-GAAP PRO FORMA NET INCOME $ 8,314 $ 5,284
GAAP NET INCOME PER SHARE - DILUTED $ 0.44 $ 0.21
Shares used in GAAP per diluted share calculation 18,873 15,431
NON-GAAP PRO FORMA NET INCOME PER SHARE - DILUTED $ 0.44 $ 0.28
Shares used in non-GAAP per diluted share calculation 18,873 18,873
SIX MONTHS ENDED
----------------
OCTOBER 1, 2006 OCTOBER 2, 2005
--------------- ---------------
GAAP NET INCOME $ 13,886 $ 10,585
Reconciliation between GAAP Net Income and
Non-GAAP Pro Forma Net Income:
Financing costs for 2008 Notes repurchase 4,583 3,341
FAS 123 (R) Adoption (incentive stock options) expense 798 -
Income tax expense (1,604) (3,122)
-----------------------------------
NON-GAAP PRO FORMA NET INCOME $ 17,663 $ 10,804
GAAP NET INCOME PER SHARE - DILUTED $ 0.73 $ 0.70
Shares used in GAAP per diluted share calculation 18,917 15,227
NON-GAAP PRO FORMA NET INCOME PER SHARE - DILUTED $ 0.93 $ 0.57
Shares used in non-GAAP per diluted share calculation 18,917 18,917
11