Columbus McKinnon Gross Profit Increased 7% on 4% Revenue Growth in Third Quarter Fiscal Year 2019

Columbus McKinnon Corporation (Nasdaq:CMCO), a leading designer,
manufacturer and marketer of motion control products, technologies and
services for material handling, today announced financial results for
its fiscal year 2019 third quarter, which ended December 31, 2018.

Third Quarter Highlights (compared with prior-year period)

• Blueprint for Growth strategy working: 80/20 process delivered
  cost savings and improved earnings power
• Strong cash generation: Paid down more than $50 million in debt
  year-to-date; net leverage ratio now less than 2x
• Market share gains support revenue growth of 4%; adjusted for
  FX, revenue grew more than 6%
• Gross margin was 33.8%, up 90 bps; delivered 7^th
  consecutive quarter of year-over-year expansion

Mark Morelli, President and CEO of Columbus McKinnon, commented, “Our
financial results are demonstrating that our Blueprint for Growth
strategy is working. We have rapidly deployed our 80/20 process through
approximately half of Columbus McKinnon and as a result are improving
customer response time, reducing costs and streamlining processes. Our
strong performance reflects our success in simplifying the business,
improving operational efficiencies, ramping our growth engine and
strengthening earnings power.”

The net loss on held for sale businesses of $15.6 million includes the
gain on the sale of the Tire Shredder business and an additional
impairment on the remaining businesses held for sale, reflecting
management’s estimate of their fair market value.

Third Quarter Fiscal 2019 Sales

Higher sales were driven by strong volume in the U.S. and Canada and
pricing in EMEA. Excluding the effect of foreign currency translation,
sales increased 6.1%.

Third Quarter Fiscal 2019 Operating Results

*A non-GAAP measure, Adjusted EBITDA is defined as adjusted operating
income plus depreciation and amortization. Please see the attached
tables for a reconciliation of adjusted EBITDA to GAAP net income (loss).

Gross profit and gross margin improvement were largely the result of
higher volume and productivity improvements from operational excellence
measures and lower medical costs. Pricing more than offset material cost
inflation. For more information on changes in gross profit, please
see the table on page 8 of this release. Adjusted income from
operations was $22.9 million, up $5.1 million, or 28.9%, over the third
quarter of fiscal 2018. Adjusted operating margin expanded 200 basis
points from the effects of 80/20 simplification and lower selling
expenses. Please see the reconciliation of GAAP income from
operations to adjusted income from operations on page 11 of this release.

Adjusted net income for the quarter was $14.5 million, or $0.61 per
diluted share, compared with $10.4 million, or $0.44 per diluted share,
in the prior-year period. Adjusted EBITDA margin was 14.2%. Please
see the reconciliation of GAAP net income and earnings per share to
adjusted net income and earnings per share on page 12 of this release.

Fourth Quarter Fiscal 2019 Outlook

Excluding the businesses expected to be divested, orders in the third
quarter grew more than 5% and backlog increased at a similar rate. With
the continued strength, the Company expects year-over-year sales growth
in the fourth quarter of fiscal 2019 to be approximately 4% to 5%,
excluding an approximate 3% to 4% anticipated headwind from foreign
currency translation, the impact of the divestiture of the Tire Shredder
business and the timing of remaining divestitures. Last year’s fiscal
fourth quarter included $3.3 million in revenue related to the Tire
Shredder business, which was divested December 28, 2018. The sale of
Crane Equipment & Service, Inc. is expected to close by the end of
February 2019. That business had $1.5 million in revenue in the month of
March 2018. The sales process is ongoing for Stahlhammer Bommern GmbH.

Teleconference/webcast

Columbus McKinnon will host a conference call and live webcast today at
10:00 AM Eastern Time, at which management 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 www.cmworks.com/investors.
A question and answer session will follow the formal discussion.

The conference call can be accessed by dialing 201-493-6780. The
listen-only audio webcast can be monitored at www.cmworks.com/investors.
To listen to the archived call, dial 412-317-6671 and enter the passcode
13686186. The telephonic replay will be available from 1:00 PM Eastern
Time on the day of the call through Thursday, February 7, 2019.
Alternatively, an archived webcast of the call can be found on the
Company’s website. 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 motion control products, technologies, systems and services
that efficiently and ergonomically move, lift, position and secure
materials. Key products include hoists, actuators, rigging tools, light
rail work stations and digital power and motion control systems. 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 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 the effectiveness of the Company’s 80/20 process
to simplify operations, the ability of the Company’s operational
excellence initiatives to drive profitability, the success of the
Company’s new products to enhance revenue, the timing and success of the
divestitures, global 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 ability to expand into new
markets and geographic regions, 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.

(1) December 31, 2017 figure excludes the impact of the acquisition of
STAHL.

(2) December 31, 2018 figures exclude the Tire Shredder business, which
was divested on December 28, 2018.

Adjusted gross profit is defined as gross profit as reported, adjusted
for certain items. Adjusted gross profit 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 with the
measures as used by other companies. Nevertheless, Columbus McKinnon
believes that providing non-GAAP information, such as adjusted gross
profit, is important for investors and other readers of the Company’s
financial statements and assists in understanding the comparison of the
current quarter’s and current year's gross profit to the historical
periods' gross profit, as well as facilitates a more meaningful
comparison of the Company’s gross profit to that of other companies.

Adjusted income from operations is defined as income from operations as
reported, adjusted for certain items. Adjusted income from operations 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 with the measures as used by other companies.
Nevertheless, Columbus McKinnon believes that providing non-GAAP
information, such as adjusted income from operations, is important for
investors and other readers of the Company’s financial statements and
assists in understanding the comparison of the current quarter’s and
current year's income from operations to the historical periods' income
from operations, as well as facilitates a more meaningful comparison of
the Company’s income from operations to that of other companies.

(1) Applies a normalized tax rate of 22% to
GAAP pre-tax income and non-GAAP adjustments above, which are each
pre-tax.

Adjusted net income and diluted EPS are defined as net income and
diluted EPS as reported, adjusted for certain items and at a normalized
tax rate. Adjusted net income and diluted EPS are not measures
determined in accordance with generally accepted accounting principles
in the United States, commonly known as GAAP, and may not be comparable
to the measures as used by other companies. Nevertheless, Columbus
McKinnon believes that providing non-GAAP information, such as adjusted
net income and 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 and current year's net income and
diluted EPS to the historical periods' net income and diluted EPS, as
well as facilitates a more meaningful comparison of the Company’s net
income and diluted EPS to that of other companies.

Adjusted EBITDA is defined as net income before interest expense, income
taxes, depreciation, amortization, and other adjustments. Adjusted
EBITDA 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 with the measures as used by other companies.
Nevertheless, Columbus McKinnon believes that providing non-GAAP
information, such as adjusted EBITDA, is important for investors and
other readers of the Company’s financial statements and assists in
understanding the comparison of the current quarter’s and current year's
net income and diluted EPS to the historical periods' net income and
diluted EPS, as well as facilitates a more meaningful comparison of the
Company’s net income and diluted EPS to that of other companies.

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