NEWS RELEASE
CONTACT:
Karen L. Howard
Vice President-Finance and Chief Financial Officer
Columbus McKinnon Corporation
Phone: 716-689-5550
karen.howard@cmworks.com
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COLUMBUS MCKINNON COMPLETES SALE AND PARTIAL LEASEBACK OF
DUFF-NORTON DIVISION CHARLOTTE, NC FACILITY
AMHERST, N.Y., June 29, 2007 -- Columbus McKinnon Corporation (NASDAQ: CMCO), a
leading designer, manufacturer and marketer of material handling products, today
announced that it completed the sale of its approximately 240,000 square foot
manufacturing facility in Charlotte, North Carolina occupied by its Duff-Norton
division on June 22, 2007 to Patriot Pioneer Park, LLC. The Company will lease
back approximately 150,000 square feet of the facility for its Duff-Norton
operations under a 10-year lease agreement with the option to renew at the end
of the lease term.
Net proceeds to Columbus McKinnon for the sale of the property were
approximately $4.8 million which will be applied to reduce debt in its fiscal
2008 second quarter which ends on September 30, 2007. The Company will realize a
deferred gain totaling $0.8 million over the life of the lease agreement.
Timothy T. Tevens, President and CEO of Columbus McKinnon commented, "The sale
and leaseback of our Duff-Norton facility generates almost $5 million of
additional cash for debt reduction, while keeping our Duff-Norton operations in
its long-time location and eliminating the burden of managing and maintaining a
large property. Primarily through our lean manufacturing efforts, we reduced the
space required for Duff-Norton by almost 40%. We anticipate annual savings of
approximately $100,000 as a result of leasing back only the portion of the
building that we need versus full ownership."
He added, "This transaction adds to a series of sales of surplus and
underutilized real estate, which have generated $18.3 million of proceeds since
July 2003. Combined with the recently announced redemption of the remaining
$22.1 million of our 10% Senior Secured Notes Due 2010 to occur in the second
quarter, this sale further enables the execution of our debt reduction
initiative consistent with our strategy to continue to improve our capital
structure."
ABOUT COLUMBUS MCKINNON
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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.
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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.
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