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 REDEEMS ITS REMAINING
10% SENIOR SECURED NOTES DUE 2010
AMHERST, N.Y., August 1, 2007 - Columbus McKinnon Corporation (NASDAQ: CMCO)
("CMCO") announced today that it has redeemed the remaining $22.1 million of its
outstanding 10% Senior Secured Notes Due 2010 (CUSIP No. 199333AE5) (the
"Notes"), using available cash. The Notes, which the Company called for
redemption on June 25, 2007, were redeemed at a price of 105% of the principal
amount thereof, plus accrued interest.
The action is consistent with the Company's stated strategy to continue to
reduce its debt, with a goal of 30% funded debt to total capitalization. Based
on a funded debt to total capitalization ratio of 40.8% at July 1, 2007, the end
of the fiscal 2008 first quarter, the Company's pro forma ratio inclusive of
this transaction would have been 37.6%. CMCO believes that its stronger balance
sheet provides it the financial flexibility to make strategic bolt-on
acquisitions that will accelerate international market penetration and
complement its existing product breadth in the US.
As previously announced, the redemption required a $1.1 million premium payment
to Noteholders and a $0.3 million write-off of unamortized financing costs. This
represents a net charge of approximately $0.04 per diluted share in the fiscal
2008 second quarter which will end on September 30, 2007. The redemption is
expected to reduce future ongoing annualized interest expense by $2.2 million,
or approximately $0.07 per diluted share.
As a result of this redemption, the maturity of the Company's $75 million
revolving credit facility will automatically be extended by an additional year
to February 22, 2011. The Company's availability on its revolving credit
facility at July 1, 2007 was $64.8 million.
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.
- ----------------------
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.
###