Financial Data and Key Metrics Changes - Sales for the quarter were approximately $158 million, at the upper end of the expected range, with a sequential growth of 13.5% [7][12] - Adjusted gross margin expanded to 34.4%, an increase of 60 basis points, while adjusted operating margin improved to 8.9%, up 530 basis points [7][8] - Free cash flow for the quarter was $36 million, with net debt leverage ratio reduced to below one times trailing 12-month adjusted EBITDA [8][30] Business Line Data and Key Metrics Changes - Short-cycle business, comprising about 50% of total revenue, saw a sequential increase of 22% [9] - Project business experienced a 5.5% sequential sales increase, although growth was dampened by project acceptance timing [10] - Adjusted EBITDA margin expanded to 13.4%, reflecting decisive actions taken to reduce costs [11] Market Data and Key Metrics Changes - Sales volume in the U.S. declined by 26.4%, while outside the U.S., sales volume was down 25.8% [14] - Foreign currency translation positively impacted sales by 1.1% [13] - Total backlog increased by 2% year-over-year and improved 12% sequentially, reaching approximately $147 million [37] Company Strategy and Development Direction - The company is focused on evolving its Blueprint for Growth strategy, emphasizing market-led, customer-centric, and operational excellence principles [44][46] - Investments are being made in R&D and digital experiences, with plans to increase RSG&A levels in the second half of the year [21][46] - The company aims to maintain a flexible capital structure to support growth initiatives and return cash to shareholders [73][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved stability in markets but acknowledged risks associated with increasing infection rates [43] - The fiscal third quarter is typically the weakest, but the company expects sales to remain consistent with the second quarter levels [43][53] - Management highlighted a healthy backlog and potential for improved order rates, which could drive higher execution levels [76] Other Important Information - The company achieved a GAAP loss per diluted share of $0.17 due to a pension settlement expense [24] - Adjusted earnings per diluted share were $0.34, down from $0.74 in the previous year [25] - The company has a strong liquidity position of approximately $245 million [31] Q&A Session Summary Question: Can you provide more color on the cadence of orders and overall demand activity? - Management noted a 26% improvement in order rates during the quarter, with a sequential increase of 41% in the short-cycle business [48] Question: Is there any reason to think gross margins might go down in Q3? - Management indicated that typically, gross margins decline in Q3 due to fewer shipping days and lower fixed cost absorption [57] Question: Can you quantify the increase in RSG&A for the coming quarter? - The increase is expected to be about $2 million for incentive compensation, a couple of million for growth investments, and another couple of million related to returning to work [63] Question: Can you elaborate on the Amazon-related order? - The order involves actuators being sold to a partner providing solutions for Amazon's warehousing operations, with potential for further demand [65][67] Question: What are the capital allocation priorities moving forward? - The company plans to maintain a consistent capital allocation framework, focusing on organic growth and strategic initiatives while returning cash to shareholders [71][74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission File Number: 0-27618 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------- ...

Part I. Financial Information [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited statements detail the company's financial position, operations, equity, and cash flows for the period ended June 30, 2020 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1,102,589 thousand, driven by higher cash balances offset by lower receivables and inventories Condensed Consolidated Balance Sheets | Metric | June 30, 2020 (in thousands) | March 31, 2020 (in thousands) | Change (in thousands) | | :--------------------------- | :--------------------------- | :---------------------------- | :-------------------- | | Total Assets | $1,102,589 | $1,093,272 | $9,317 | | Cash and cash equivalents | $152,236 | $114,450 | $37,786 | | Trade accounts receivable | $96,464 | $123,743 | $(27,279) | | Inventories | $124,572 | $127,373 | $(2,801) | | Current portion of long term debt | $29,450 | $4,450 | $25,000 | | Total Liabilities | $635,987 | $629,687 | $6,300 | | Total Shareholders' Equity | $466,602 | $463,585 | $3,017 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $2,969 thousand, a significant decline from the prior year due to lower sales and a pension charge Condensed Consolidated Statements of Operations | Metric (Three Months Ended June 30) | 2020 (in thousands) | 2019 (in thousands) | Change (in thousands) | Change (%) | | :---------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Net sales | $139,070 | $212,712 | $(73,642) | -34.6% | | Cost of products sold | $94,273 | $137,100 | $(42,827) | -31.2% | | Gross profit | $44,797 | $75,612 | $(30,815) | -40.8% | | Income from operations | $1,789 | $27,043 | $(25,254) | -93.4% | | Net income (loss) | $(2,969) | $18,579 | $(21,548) | -115.9% | | Basic income (loss) per share | $(0.12) | $0.79 | $(0.91) | -115.2% | | Diluted income (loss) per share | $(0.12) | $0.78 | $(0.90) | -115.4% | - Other expense increased significantly to **$3,026 thousand** in Q1 FY2021 from $162 thousand in Q1 FY2020, primarily due to a **$2,722 thousand** pension settlement charge[11](index=11&type=chunk)[173](index=173&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income fell to $1,689 thousand, as the net loss was partially offset by positive foreign currency translation adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric (Three Months Ended June 30) | 2020 (in thousands) | 2019 (in thousands) | Change (in thousands) | Change (%) | | :---------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Net income (loss) | $(2,969) | $18,579 | $(21,548) | -115.9% | | Total other comprehensive income (loss) | $4,658 | $538 | $4,120 | 765.8% | | Comprehensive income (loss) | $1,689 | $19,117 | $(17,428) | -91.2% | - Foreign currency translation adjustments contributed positively to other comprehensive income, increasing from **$1,395 thousand** in 2019 to **$2,802 thousand** in 2020[13](index=13&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Total shareholders' equity increased slightly to $466,602 thousand, as comprehensive income offset the period's net loss Condensed Consolidated Statements of Shareholders' Equity | Metric (in thousands) | March 31, 2020 | June 30, 2020 | Change | | :-------------------------------- | :------------- | :------------ | :----- | | Total Shareholders' Equity | $463,585 | $466,602 | $3,017 | | Net income (loss) | N/A | $(2,969) | N/A | | Change in foreign currency translation adjustment | N/A | $2,802 | N/A | | Change in pension liability and postretirement obligations | N/A | $1,869 | N/A | | Stock compensation expense | N/A | $2,071 | N/A | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated positive cash flow from operating, investing, and financing activities, boosting total cash reserves Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (Three Months Ended June 30) | 2020 (in thousands) | 2019 (in thousands) | Change (in thousands) | | :---------------------------------------------- | :------------------ | :------------------ | :-------------------- | | Net cash provided by (used for) operating activities | $9,516 | $(2,160) | $11,676 | | Net cash provided by (used for) investing activities | $5,429 | $(2,420) | $7,849 | | Net cash provided by (used for) financing activities | $21,719 | $(10,942) | $32,661 | | Net change in cash and cash equivalents | $37,786 | $(15,377) | $53,163 | | Cash, cash equivalents, and restricted cash at end of period | $152,486 | $55,966 | $96,520 | - Operating cash flow improved due to a decrease in trade accounts receivable (**$27,955 thousand**) and inventory (**$3,924 thousand**), despite a net loss[178](index=178&type=chunk) - Investing cash flow was positively impacted by **$6,363 thousand** in proceeds from the pending sale of a building in China[180](index=180&type=chunk) - Financing cash flow was significantly boosted by **$25,000 thousand** in borrowings from the Revolver[181](index=181&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue, debt, derivatives, and various loss contingencies [Note 1. Description of Business](index=11&type=section&id=Note%201.%20Description%20of%20Business) The company is a global designer and marketer of motion control products, with U.S. customers representing 54% of total sales - The Company is a leading worldwide designer, manufacturer, and marketer of motion control products, technologies, systems, and services[26](index=26&type=chunk) - Key products include hoists, actuators, rigging tools, light rail work stations, and digital power and motion control systems[26](index=26&type=chunk) - Sales to customers in the United States were approximately **54%** for the three months ended June 30, 2020, and **55%** for the same period in 2019[27](index=27&type=chunk) [Note 2. Disposals](index=11&type=section&id=Note%202.%20Disposals) The company is consolidating its manufacturing footprint and selling a facility in China, from which it received cash proceeds - The Company is consolidating its manufacturing footprint, including the closure of its Salem, Ohio facility (completed in Q1 FY2020) and the planned consolidation of its Lisbon, Ohio facility (expected next quarter)[28](index=28&type=chunk) - Costs related to these consolidations, included in Cost of products sold, were **$1,113 thousand** for Q1 FY2021 and **$506 thousand** for Q1 FY2020[28](index=28&type=chunk) - The Company is selling a manufacturing facility in China and received **$6,363 thousand** in cash proceeds during Q1 FY2021, with the sale expected to be completed in Q2 FY2021 at a gain[30](index=30&type=chunk) [Note 3. Revenue & Receivables](index=12&type=section&id=Note%203.%20Revenue%20%26%20Receivables) Net sales decreased by 34.6% year-over-year, with revenue recognized at shipment for standard products and upon completion for custom projects [Revenue Recognition](index=12&type=section&id=Revenue%20Recognition) Revenue is recognized when control transfers to the customer, which is at shipment for standard products and upon project completion for custom work - Revenue for standard products is recognized at shipment when legal title and significant risks and rewards transfer to the customer[33](index=33&type=chunk) - Revenue for custom engineered products is generally recognized upon project completion, when products and services are controlled by the customer[34](index=34&type=chunk) - Sales incentives (volume discounts, rebates, early payment discounts) are accounted for as variable consideration, reducing revenue[33](index=33&type=chunk) [Reconciliation of contract balances](index=13&type=section&id=Reconciliation%20of%20contract%20balances) Contract liabilities (customer advances) increased to $13,223 thousand due to additional advances received during the period Reconciliation of contract balances | Customer Advances (contract liabilities) (in thousands) | June 30, 2020 | June 30, 2019 | | :---------------------------------------------------- | :------------ | :------------ | | March 31, beginning balance | $10,796 | $11,501 | | Additional customer advances received | $9,873 | $11,339 | | Revenue recognized from customer advances | $(7,775) | $(8,380) | | June 30, ending balance | $13,223 | $14,512 | - Contract assets, representing revenue recognized prior to the right to invoice, increased to **$3,386 thousand** at June 30, 2020, from **$2,361 thousand** at March 31, 2020[40](index=40&type=chunk) [Remaining Performance Obligations](index=13&type=section&id=Remaining%20Performance%20Obligations) Unsatisfied performance obligations totaled approximately $3,256 thousand, with 70% expected to be recognized over the next twelve months - Unsatisfied performance obligations totaled approximately **$3,256 thousand** as of June 30, 2020[41](index=41&type=chunk) - Approximately **70%** of these sales are expected to be recognized over the next twelve months[41](index=41&type=chunk) [Disaggregated revenue](index=13&type=section&id=Disaggregated%20revenue) Net sales decreased significantly across all product categories, with Industrial Products and Crane Solutions seeing the largest declines Disaggregated revenue | Net Sales by Product Grouping (Three Months Ended June 30) | 2020 (in thousands) | 2019 (in thousands) | Change (in thousands) | Change (%) | | :------------------------------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Industrial Products | $53,717 | $93,489 | $(39,772) | -42.5% | | Crane Solutions | $68,988 | $98,643 | $(29,655) | -30.1% | | Engineered Products | $16,327 | $20,561 | $(4,234) | -20.6% | | All other | $38 | $19 | $19 | 100.0% | | Total | $139,070 | $212,712 | $(73,642) | -34.6% | [Practical expedients](index=15&type=section&id=Practical%20expedients) The company expenses sales commissions as incurred for contracts of one year or less and does not disclose their performance obligations - Incremental costs to obtain contracts (sales commissions for contracts < 1 year) are expensed as incurred in Selling expenses[44](index=44&type=chunk) - Unsatisfied performance obligations for contracts with an expected length of one year or less are not disclosed[45](index=45&type=chunk) [Accounts Receivable](index=15&type=section&id=Accounts%20Receivable) The allowance for doubtful accounts increased to $6,430 thousand, reflecting higher bad debt expense amid the COVID-19 pandemic - The Company adopted ASU 2016-13 on April 1, 2020, with no significant impact on consolidated financial statements[46](index=46&type=chunk) - In response to COVID-19, the Company is reducing credit limits and increasing bad debt expense as necessary[47](index=47&type=chunk) Accounts Receivable | Allowance for doubtful accounts (in thousands) | June 30, 2020 | March 31, 2020 | | :------------------------------------------- | :------------ | :------------- | | Beginning balance | $5,056 | N/A | | Bad debt expense | $1,559 | N/A | | Less uncollectible accounts written off, net of recoveries | $(225) | N/A | | Other (1) | $40 | N/A | | Ending balance | $6,430 | $5,056 | [Note 4. Fair Value Measurements](index=15&type=section&id=Note%204.%20Fair%20Value%20Measurements) Financial instruments are measured at fair value, with marketable securities valued using Level 1 inputs and derivatives using Level 2 inputs - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than active market prices), and Level 3 (unobservable inputs)[49](index=49&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Marketable securities are valued using Level 1 inputs, while derivatives and the annuity contract are valued using Level 2 inputs[57](index=57&type=chunk) Fair Value Measurements | Financial Instrument (in thousands) | June 30, 2020 Fair Value | Level 1 | Level 2 | Level 3 | | :---------------------------------- | :----------------------- | :------ | :------ | :------ | | Marketable securities | $7,510 | $7,510 | — | — | | Annuity contract | $2,109 | — | $2,109 | — | | Foreign exchange contracts (asset) | $72 | — | $72 | — | | Interest rate swap liability | $(3,178) | — | $(3,178)| — | | Cross currency swap liability | $(7,817) | — | $(7,817)| — | | Cross currency swap asset | $1,281 | — | $1,281 | — | | Term loan (disclosed at fair value) | $(250,490) | — | $(250,490)| — | [Note 5. Inventories](index=18&type=section&id=Note%205.%20Inventories) Net inventories decreased to $124,572 thousand, with the LIFO cost being $20,169 thousand less than the FIFO cost Inventories | Inventories (in thousands) | June 30, 2020 | March 31, 2020 | Change | | :------------------------- | :------------ | :------------- | :----- | | Raw materials | $89,168 | $85,452 | $3,716 | | Work-in-process | $22,223 | $25,876 | $(3,653)| | Finished goods | $33,350 | $33,216 | $134 | | Total at cost FIFO basis | $144,741 | $144,544 | $197 | | LIFO cost less than FIFO cost | $(20,169) | $(17,171) | $(2,998)| | Net inventories | $124,572 | $127,373 | $(2,801)| [Note 6. Marketable Securities and Other Investments](index=18&type=section&id=Note%206.%20Marketable%20Securities%20and%20Other%20Investments) The company holds marketable securities for insurance claims and a 49% equity method investment in Eastern Morris Cranes Company - Marketable securities are recorded at fair value, with unrealized gains/losses recognized in Investment (income) loss[66](index=66&type=chunk) - Unrealized gains on marketable securities were **$341 thousand** in Q1 FY2021, up from **$137 thousand** in Q1 FY2020[66](index=66&type=chunk) - The Company holds a **49%** equity method investment in Eastern Morris Cranes Company Limited (EMC), with a carrying value of **$3,657 thousand** at June 30, 2020[69](index=69&type=chunk) - Income from the EMC equity method investment was **$194 thousand** in Q1 FY2021, compared to **$110 thousand** in Q1 FY2020[69](index=69&type=chunk) [Note 7. Goodwill and Intangible Assets](index=20&type=section&id=Note%207.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to $322,914 thousand due to currency translation, while net identifiable intangible assets were $217,109 thousand - Goodwill is tested for impairment at least annually; no impairment indicators were present in Q1 FY2021[70](index=70&type=chunk)[71](index=71&type=chunk) - Total amortization expense was **$3,115 thousand** for Q1 FY2021, with an estimated annual expense of **$12,500 thousand** for the next five years[77](index=77&type=chunk) Goodwill | Goodwill (in thousands) | April 1, 2020 | June 30, 2020 | Change | | :---------------------- | :------------ | :------------ | :----- | | Balance | $319,679 | $322,914 | $3,235 | | Currency translation | N/A | $3,235 | N/A | Identifiable Intangible Assets | Identifiable Intangible Assets (in thousands) | June 30, 2020 Net | March 31, 2020 Net | Change | | :-------------------------------------------- | :---------------- | :----------------- | :----- | | Trademark | $1,751 | $1,778 | $(27) | | Indefinite lived trademark | $47,007 | $46,670 | $337 | | Customer relationships | $135,204 | $135,666 | $(462) | | Acquired technology | $32,676 | $33,363 | $(687) | | Other | $471 | $485 | $(14) | | Total | $217,109 | $217,962 | $(853) | [Note 8. Derivative Instruments](index=21&type=section&id=Note%208.%20Derivative%20Instruments) The company uses derivative instruments to manage foreign currency and interest rate exposures, not for speculation - Derivatives are used to manage foreign currency and interest rate exposures, not for speculative trading[78](index=78&type=chunk) - A cross-currency swap (**$175,923 thousand** notional) hedges an intercompany loan, with **$961 thousand** expected to be reclassified from AOCL to earnings in the next 12 months[81](index=81&type=chunk) - Interest rate swaps (**$150,623 thousand** notional) hedge variable interest rates on the term loan, with **$1,128 thousand** expected to be reclassified from AOCL to interest expense in the next 12 months[86](index=86&type=chunk) Derivative Instruments | Derivative Instrument (in thousands) | June 30, 2020 Fair Value (Asset/Liability) | March 31, 2020 Fair Value (Asset/Liability) | | :----------------------------------- | :----------------------------------------- | :------------------------------------------ | | Foreign exchange contracts (net) | $90 | $285 | | Interest rate swap (net) | $(3,178) | $(3,296) | | Cross currency swap (net) | $(6,536) | $(3,504) | [Note 9. Debt](index=23&type=section&id=Note%209.%20Debt) The company's debt includes a Revolving Facility and a Term Loan, with $25,000 thousand drawn from the Revolver for liquidity - The company's debt facilities include a **$100,000 thousand** Revolving Facility (maturing 2022) and a **$445,000 thousand** 1st Lien Term Loan (maturing 2024)[91](index=91&type=chunk)[185](index=185&type=chunk) - As of June 30, 2020, the outstanding principal balance of the Term Loan was **$258,238 thousand**[93](index=93&type=chunk)[187](index=187&type=chunk) - The Company drew **$25,000 thousand** from the Revolver for liquidity and working capital purposes during Q1 FY2021 and remains in compliance with its Total Leverage Ratio covenant[92](index=92&type=chunk)[186](index=186&type=chunk) - The Company repaid **$1,113 thousand** of Term Loan principal payments in Q1 FY2021 and expects to make **$4,450 thousand** in principal payments over the next 12 months[93](index=93&type=chunk)[187](index=187&type=chunk) [Note 10. Net Periodic Benefit Cost](index=25&type=section&id=Note%2010.%20Net%20Periodic%20Benefit%20Cost) Net periodic pension cost increased significantly to $3,500 thousand due to a $2,722 thousand non-cash pension settlement expense - A **$2,722 thousand** non-cash pension settlement expense was recorded in Q1 FY2021 as part of a plan to terminate one of the U.S. pension plans[101](index=101&type=chunk) - The Company plans to contribute approximately **$5,010 thousand** to its pension plans in fiscal 2021[102](index=102&type=chunk) Net Periodic Benefit Cost | Net Periodic Pension Cost (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Change | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----- | | Service costs | $261 | $267 | $(6) | | Interest cost | $3,115 | $3,699 | $(584) | | Expected return on plan assets | $(3,479) | $(3,973) | $494 | | Net amortization | $881 | $569 | $312 | | Settlement | $2,722 | — | $2,722 | | Net periodic pension (benefit) cost | $3,500 | $562 | $2,938 | [Note 11. Earnings Per Share](index=26&type=section&id=Note%2011.%20Earnings%20Per%20Share) Basic and diluted EPS were a loss of $0.12, with 1,155,000 common shares from equity awards excluded as antidilutive - **1,155,000** common shares from stock options, restricted stock units, and performance shares were antidilutive and excluded from diluted EPS computation in Q1 FY2021 due to the net loss[104](index=104&type=chunk) - The Board declared a dividend of **$0.06** per common share on July 20, 2020, expected to be approximately **$1,435 thousand**[107](index=107&type=chunk) Earnings Per Share | EPS Metric (Three Months Ended June 30) | 2020 | 2019 | Change | | :-------------------------------------- | :--- | :--- | :----- | | Basic income (loss) per share | $(0.12)| $0.79 | $(0.91)| | Diluted income (loss) per share | $(0.12)| $0.78 | $(0.90)| [Note 12. Loss Contingencies](index=26&type=section&id=Note%2012.%20Loss%20Contingencies) The company faces various legal actions, including product liability, environmental matters, and asbestos-related litigation [Accrued general and product liability](index=26&type=section&id=Accrued%20general%20and%20product%20liability) Accrued general and product liability costs were $11,902 thousand, funded by marketable securities and based on actuarial estimates - Accrued general and product liability costs totaled **$11,902 thousand** at June 30, 2020 (**$8,402 thousand** non-current, **$3,500 thousand** current)[109](index=109&type=chunk) Accrued general and product liability | Accrued General and Product Liability (in thousands) | June 30, 2020 | March 31, 2020 | | :--------------------------------------------------- | :------------ | :------------- | | Beginning balance | $11,944 | $12,686 | | Add provision for claims | $825 | $3,233 | | Deduct payments for claims | $(867) | $(3,975) | | Ending balance | $11,902 | $11,944 | [Environmental Matters](index=27&type=section&id=Environmental%20Matters) The company has accrued $857 thousand for known environmental matters and anticipates no material adverse effects in fiscal 2021 - The Company has accrued **$857 thousand** for all currently known environmental matters as of June 30, 2020[114](index=114&type=chunk) - No material capital expenditures are budgeted for environmental compliance for fiscal 2021, as no material adverse effects are anticipated[114](index=114&type=chunk) [Asbestos-related litigation](index=27&type=section&id=Asbestos-related%20litigation) The company has recorded a $4,434 thousand liability for asbestos-related litigation and expects a settlement with insurers - Estimated asbestos-related aggregate liability ranges from **$3,800 thousand** to **$6,900 thousand**, with **$4,434 thousand** recorded as probable and estimable at June 30, 2020[116](index=116&type=chunk) - Approximately **$2,000 thousand** of asbestos liability payments are expected over the next 12 months[116](index=116&type=chunk) - A tentative settlement with insurance carriers for asbestos-related defense costs (**65%** coverage up to **$1,650 thousand** annually) and past defense costs (**$2,650 thousand** expected payout) is expected to finalize in fiscal 2021[119](index=119&type=chunk) [Other unresolved legal actions](index=28&type=section&id=Other%20unresolved%20legal%20actions) The company's estimated product-related aggregate liability from other legal actions is $6,761 thousand - Estimated product-related aggregate liability is **$6,761 thousand** as of June 30, 2020[120](index=120&type=chunk) [Magnetek subsidiary contingencies](index=28&type=section&id=Magnetek%20subsidiary%20contingencies) The Magnetek subsidiary faces asbestos, environmental, and tax-related contingencies, with liabilities recorded for known issues [Product Liability (Magnetek)](index=28&type=section&id=Product%20Liability%20(Magnetek)) Magnetek has recorded a $708 thousand liability for asbestos-related lawsuits associated with previously acquired businesses - Magnetek has recorded an asbestos-related liability of approximately **$708 thousand** for lawsuits related to previously acquired businesses[121](index=121&type=chunk) [Litigation-Other (Magnetek - Italian tax matter)](index=28&type=section&id=Litigation-Other%20(Magnetek%20-%20Italian%20tax%20matter)) Magnetek is appealing an Italian tax claim of approximately $10.6 million and does not expect to incur a liability - Magnetek is involved in an Italian tax dispute for periods from 2002-2006, with claims totaling approximately **$7.5 million** in taxes and **$3.1 million** in penalties[124](index=124&type=chunk) - Magnetek believes it will be successful in its appeals and does not expect to incur a liability related to these assessments[125](index=125&type=chunk) [Environmental Matters (Magnetek)](index=29&type=section&id=Environmental%20Matters%20(Magnetek)) Magnetek has recorded $484 thousand in liabilities for environmental matters and is in litigation to secure insurance coverage - Magnetek has recorded total liabilities of **$484 thousand** for all environmental matters as of June 30, 2020[131](index=131&type=chunk) - A liability of **$305 thousand** is recorded for future site investigation and remediation costs at the Bridgeport facility[129](index=129&type=chunk) - Magnetek is engaged in litigation to enforce insurance coverage for defense costs related to PCB-related lawsuits, with a District Court ruling in July 2019 obligating Travelers to defend Magnetek[134](index=134&type=chunk) [Note 13. Income Taxes](index=30&type=section&id=Note%2013.%20Income%20Taxes) The income tax expense as a percentage of pre-tax income was 24%, with the full-year effective tax rate estimated at 21% to 22% - Income tax expense (benefit) as a percentage of income (loss) before tax was **24%** for Q1 FY2021 and **22%** for Q1 FY2020[136](index=136&type=chunk) - The effective tax rate for fiscal 2021 is estimated to be approximately **21% to 22%**[137](index=137&type=chunk) [Note 14. Changes in Accumulated Other Comprehensive Loss](index=31&type=section&id=Note%2014.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss decreased to $(109,692) thousand, driven by positive foreign currency translation adjustments - Foreign currency translation adjustments contributed **$2,802 thousand** in other comprehensive income during the period[140](index=140&type=chunk) - Amounts reclassified out of AOCL totaled **$5,318 thousand** before tax, primarily from retirement obligations (**$3,551 thousand**) and derivatives (**$3,291 thousand**)[140](index=140&type=chunk) Changes in Accumulated Other Comprehensive Loss | AOCL Component (in thousands) | Beginning Balance (March 31, 2020) | Net Current Period Other Comprehensive Income (Loss) | Ending Balance (June 30, 2020) | | :---------------------------- | :--------------------------------- | :--------------------------------------------------- | :----------------------------- | | Retirement Obligations | $(79,041) | $1,869 | $(77,172) | | Foreign Currency | $(34,359) | $2,802 | $(31,557) | | Change in Derivatives | $(950) | $(13) | $(963) | | Total | $(114,350) | $4,658 | $(109,692) | [Note 15. Leases](index=31&type=section&id=Note%2015.%20Leases) The company's operating leases resulted in ROU assets of $37,086 thousand and lease liabilities of $37,635 thousand - Operating lease expense was **$2,233 thousand** for the three months ended June 30, 2020, compared to **$2,313 thousand** in the prior year[145](index=145&type=chunk) - Cash paid for operating lease liabilities was **$2,160 thousand** in Q1 FY2021[146](index=146&type=chunk) Leases | Lease Metric (in thousands) | June 30, 2020 | March 31, 2020 | Change | | :-------------------------- | :------------ | :------------- | :----- | | ROU Assets | $37,086 | $38,125 | $(1,039)| | Total Lease Liabilities | $37,635 | $38,553 | $(918) | [Note 16. Effects of New Accounting Pronouncements](index=33&type=section&id=Note%2016.%20Effects%20of%20New%20Accounting%20Pronouncements) The company adopted new standards for credit losses and fair value disclosures with no material impact on its financial statements [ASU 2016-13 (Topic 326) - Adopted in fiscal 2021](index=33&type=section&id=ASU%202016-13%20(Topic%20326)%20-%20Adopted%20in%20fiscal%202021) The adoption of ASU 2016-13 for credit losses on April 1, 2020, did not have a significant impact on the financial statements - The Company adopted ASU 2016-13 and related standards effective April 1, 2020, using the modified retrospective method[150](index=150&type=chunk) - The adoption of ASU 2016-13 did not have a significant impact on the Company's consolidated financial statements[46](index=46&type=chunk)[150](index=150&type=chunk) [Other Topics adopted in fiscal 2021](index=33&type=section&id=Other%20Topics%20adopted%20in%20fiscal%202021) The adoption of ASU 2018-13 for fair value measurement disclosures did not materially impact the financial statements - ASU 2018-13, changing fair value measurement disclosure requirements, was adopted effective April 1, 2020[153](index=153&type=chunk) - The adoption of ASU 2018-13 did not have a material impact on the financial statements for Q1 FY2021[153](index=153&type=chunk) [Other Topics not yet adopted](index=35&type=section&id=Other%20Topics%20not%20yet%20adopted) The company is evaluating the potential impact of ASU 2020-04 related to reference rate reform for contracts referencing LIBOR - The Company is evaluating ASU 2020-04, "Reference Rate Reform," which offers optional expedients for contracts and hedging relationships referencing LIBOR[154](index=154&type=chunk) [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION](index=36&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20RESULTS%20OF%20OPERATIONS%20AND%20FINANCIAL%20CONDITION) Net sales and gross profit declined significantly in Q1 FY2021 due to lower sales volume exacerbated by the COVID-19 pandemic [EXECUTIVE OVERVIEW](index=36&type=section&id=EXECUTIVE%20OVERVIEW) The company is leveraging its "Blueprint for Growth Strategy" to drive profitable growth while managing the impacts of COVID-19 - The Company is a leading worldwide designer, manufacturer, and marketer of motion control products, focused on commercial and industrial applications[156](index=156&type=chunk) - The "Blueprint for Growth Strategy" focuses on business simplification (80/20 process), operational excellence, and ramping the growth engine through new product development and a digital platform[157](index=157&type=chunk) - Approximately **46%** of revenue is derived from customers outside the U.S., with expansion in the European market through the STAHL acquisition[158](index=158&type=chunk) - The Company is taking measures to protect cash flow and liquidity in response to COVID-19, including cost reduction, working capital reduction, and capital expenditure reduction[163](index=163&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Net sales decreased 34.6% to $139,070 thousand, and gross profit margin fell to 32.2% due to lower sales volume and productivity [Three Months Ended June 30, 2020 and June 30, 2019](index=37&type=section&id=Three%20Months%20Ended%20June%2030,%202020%20and%20June%2030,%202019) Net sales and gross profit declined significantly due to lower volume, while a pension settlement charge drove a net loss - Net sales were negatively impacted by **$74,126 thousand** due to decreased sales volume and **$1,951 thousand** from foreign currency translation[166](index=166&type=chunk) - Gross profit decrease was attributed to lower sales volume (**$26,993 thousand**), decreased productivity (**$4,296 thousand**), and factory closure costs (**$1,422 thousand**)[167](index=167&type=chunk) - Other expense increased significantly due to a **$2,722 thousand** pension settlement charge[173](index=173&type=chunk) Three Months Ended June 30, 2020 and June 30, 2019 | Metric (Three Months Ended June 30) | 2020 (in thousands) | 2019 (in thousands) | Change (in thousands) | Change (%) | | :---------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Net sales | $139,070 | $212,712 | $(73,642) | -34.6% | | Gross profit | $44,797 | $75,612 | $(30,815) | -40.8% | | Gross profit margin | 32.2% | 35.5% | -3.3 pp | | | Selling expenses | $18,695 | $22,755 | $(4,060) | -17.9% | | General and administrative expenses | $18,429 | $19,600 | $(1,171) | -6.0% | | Income from operations | $1,789 | $27,043 | $(25,254) | -93.4% | | Net income (loss) | $(2,969) | $18,579 | $(21,548) | -115.9% | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents increased by $37,786 thousand, driven by positive cash flows from all activities and Revolver borrowings [Cash flow from operating activities](index=38&type=section&id=Cash%20flow%20from%20operating%20activities) Net cash from operations was $9,516 thousand, a significant improvement driven by decreases in receivables and inventory - Net cash provided by operating activities was **$9,516 thousand** in Q1 FY2021, compared to net cash used of **$2,160 thousand** in Q1 FY2020[178](index=178&type=chunk) - Key drivers for the increase in operating cash were a **$27,955 thousand** decrease in trade accounts receivable and a **$3,924 thousand** decrease in inventory[178](index=178&type=chunk) [Cash flow from investing activities](index=38&type=section&id=Cash%20flow%20from%20investing%20activities) Net cash from investing was $5,429 thousand, primarily from $6,363 thousand in proceeds from the sale of a building in China - Net cash provided by investing activities was **$5,429 thousand** in Q1 FY2021, compared to net cash used of **$2,420 thousand** in Q1 FY2020[180](index=180&type=chunk) - The most significant source of cash was **$6,363 thousand** from the pending sale of a building in China[180](index=180&type=chunk) - Capital expenditures for Q1 FY2021 were **$1,088 thousand**[180](index=180&type=chunk) [Cash flow from financing activities](index=38&type=section&id=Cash%20flow%20from%20financing%20activities) Net cash from financing was $21,719 thousand, driven by $25,000 thousand in borrowings from the Revolver - Net cash provided by financing activities was **$21,719 thousand** in Q1 FY2021, compared to net cash used of **$10,942 thousand** in Q1 FY2020[181](index=181&type=chunk) - The most significant source of cash was **$25,000 thousand** from borrowings on the Revolver[181](index=181&type=chunk) - Debt repayments totaled **$1,112 thousand**, and dividends paid were **$1,427 thousand**[181](index=181&type=chunk) [Debt Facilities](index=39&type=section&id=Debt%20Facilities) The company drew $25 million from its Revolver, maintains a Term Loan balance of $258,238 thousand, and is in covenant compliance - The company has a **$100,000 thousand** Revolving Facility (maturing 2022) and a **$445,000 thousand** Term Loan (maturing 2024)[185](index=185&type=chunk) - **$25,000 thousand** was drawn from the Revolver for liquidity during Q1 FY2021, and the company is in compliance with its Total Leverage Ratio covenant[186](index=186&type=chunk) - The Term Loan outstanding principal balance was **$258,238 thousand** as of June 30, 2020[187](index=187&type=chunk) [Capital Expenditures](index=39&type=section&id=Capital%20Expenditures) Capital expenditures were $1,088 thousand in Q1 FY2021, with full-year spending expected to be approximately $15,000 thousand - Expected capital expenditure spending for fiscal 2021 is approximately **$15,000 thousand**, excluding acquisitions and strategic alliances[192](index=192&type=chunk) Capital Expenditures | Capital Expenditures (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Change | | :---------------------------------- | :------------------------------- | :------------------------------- | :----- | | Consolidated Capital Expenditures | $1,088 | $1,854 | $(766) | [Inflation and Other Market Conditions](index=39&type=section&id=Inflation%20and%20Other%20Market%20Conditions) The company is affected by raw material inflation but has generally been able to pass on rising costs through price increases - The Company's costs are affected by inflation, especially in raw materials such as steel[193](index=193&type=chunk) - The Company has generally been successful in passing on rising costs through annual price increases to maintain margin neutrality[193](index=193&type=chunk)[195](index=195&type=chunk) [Goodwill Impairment Testing](index=40&type=section&id=Goodwill%20Impairment%20Testing) The company tests goodwill for impairment annually and does not believe any reporting units are currently at risk of impairment - Goodwill is tested for impairment at least annually at the reporting unit level (Duff Norton and Rest of Products)[196](index=196&type=chunk)[197](index=197&type=chunk) - As of June 30, 2020, the Company does not believe any reporting units are at risk of failing the goodwill impairment test[198](index=198&type=chunk) [Seasonality and Quarterly Results](index=40&type=section&id=Seasonality%20and%20Quarterly%20Results) Quarterly results can be materially affected by various factors, making any single quarter not indicative of future performance - Quarterly results can be materially affected by factors including large customer orders, vacation/holiday concentrations, legal settlements, market security gains/losses, restructuring charges, and foreign currency translation[200](index=200&type=chunk) - Operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or the full fiscal year[200](index=200&type=chunk) [Effects of New Accounting Pronouncements](index=40&type=section&id=Effects%20of%20New%20Accounting%20Pronouncements) Information regarding new accounting pronouncements is detailed in Note 16 to the condensed consolidated financial statements - Details on new accounting pronouncements are provided in Note 16 of the financial statements[201](index=201&type=chunk) [Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995](index=40&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) The report contains forward-looking statements subject to various risks and uncertainties, including economic and industry factors - The report includes forward-looking statements subject to known and unknown risks and uncertainties[202](index=202&type=chunk) - Risks include general economic conditions, industry factors, competitor responses, facility consolidations, asbestos-related liability, and acquisition integration[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The COVID-19 pandemic represents a material adverse market risk, disrupting operations, supply chains, and product demand - No material changes to market risks previously disclosed, except for the material and adverse impact of COVID-19[204](index=204&type=chunk) - COVID-19 causes disruption to domestic and international operations and sales activities, supply chains, and demand for products[204](index=204&type=chunk) - The continued spread of COVID-19 will adversely impact business, financial condition, operating results, and cash flows[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control - Disclosure controls and procedures were effective as of June 30, 2020, as concluded by management, including the CEO and CFO[205](index=205&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent quarter[206](index=206&type=chunk) Part II. Other Information [Item 1. Legal Proceedings – none.](index=42&type=section&id=Item%201.%20Legal%20Proceedings%20%E2%80%93%20none.) The company reported no legal proceedings for the period - No legal proceedings to report[208](index=208&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's 2020 Form 10-K - No material changes from the risk factors disclosed in the 2020 10-K[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds – none.](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20%E2%80%93%20none.) The company reported no unregistered sales of equity securities or use of proceeds - No unregistered sales of equity securities or use of proceeds[210](index=210&type=chunk) [Item 3. Defaults upon Senior Securities – none.](index=42&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities%20%E2%80%93%20none.) The company reported no defaults upon senior securities - No defaults upon senior securities[211](index=211&type=chunk) [Item 4. Mine Safety Disclosures.](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) Mine Safety Disclosures are not applicable to the company's operations - Mine Safety Disclosures are not applicable[212](index=212&type=chunk) [Item 5. Other Information – none.](index=42&type=section&id=Item%205.%20Other%20Information%20%E2%80%93%20none.) The company reported no other information for the period - No other information to report[212](index=212&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including CEO/CFO certifications and iXBRL-formatted financial statements - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32)[214](index=214&type=chunk) - Financial statements (Balance Sheets, Statements of Operations, Comprehensive Income, Shareholders' Equity, Cash Flows) are provided in iXBRL format (Exhibit 101)[214](index=214&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-27618 _________________ COLUMBUS McKINNON CORPORATION (Exact name of Registrant as specified in its charter) New York 16-0547600 (State of Incorporation) (I.R.S. Employ ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the company's unaudited condensed consolidated financial statements and detailed notes for periods ended December 31, 2019 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific dates, detailing assets, liabilities, and equity | Metric | Dec 31, 2019 (in thousands) | Mar 31, 2019 (in thousands) | | :--------------------------- | :-------------------------- | :-------------------------- | | Total Assets | $1,079,859 | $1,061,571 | | Total Liabilities | $595,493 | $630,412 | | Total Shareholders' Equity | $484,366 | $431,159 | | Cash and Cash Equivalents | $84,014 | $71,093 | | Inventories | $135,449 | $146,263 | | Term Loan and Revolving Credit Facility | $186,893 | $235,320 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, costs, and profitability over specific reporting periods | Metric (in thousands) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :--------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Sales | $199,355 | $217,415 | $619,676 | $659,549 | | Cost of products sold | $131,483 | $144,010 | $402,699 | $430,597 | | Gross Profit | $67,872 | $73,405 | $216,977 | $228,952 | | Income from operations | $20,886 | $6,646 | $73,160 | $44,974 | | Net income (loss) | $15,250 | $(782) | $50,428 | $22,836 | | Basic income (loss) per share | $0.64 | $(0.03) | $2.14 | $0.98 | | Diluted income (loss) per share | $0.63 | $(0.03) | $2.11 | $0.97 | | Dividends declared per common share | $0.06 | $0.05 | $0.12 | $0.10 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section presents the company's net income adjusted for other comprehensive income or loss items | Metric (in thousands) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income (loss) | $15,250 | $(782) | $50,428 | $22,836 | | Foreign currency translation adjustments | $5,479 | $(2,236) | $(1,596) | $(14,802) | | Change in derivatives qualifying as hedges, net of taxes | $862 | $89 | $(102) | $(619) | | Change in pension liability and postretirement obligation, net of taxes | $(193) | $86 | $(10) | $725 | | Total other comprehensive income (loss) | $6,148 | $(2,061) | $(1,708) | $(14,696) | | Comprehensive income (loss) | $21,398 | $(2,843) | $48,720 | $8,140 | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) This section outlines changes in the company's equity accounts, including net income, dividends, and stock-related transactions | Metric (in thousands) | Balance at Mar 31, 2019 | Balance at Dec 31, 2019 | | :-------------------------------- | :---------------------- | :---------------------- | | Total Shareholders' Equity | $431,159 | $484,366 | | Net income (9 months) | N/A | $50,428 | | Dividends declared (9 months) | N/A | $(4,245) | | Change in foreign currency translation adjustment (9 months) | N/A | $5,479 | | Stock options exercised (9 months) | N/A | $4,457 | | Stock compensation expense (9 months) | N/A | $3,510 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Net Cash Provided by Operating Activities | $70,252 | $53,796 | | Net Cash Used for Investing Activities | $(6,977) | $(1,848) | | Net Cash Used for Financing Activities | $(50,431) | $(51,768) | | Effect of exchange rate changes on cash | $77 | $(5,416) | | Net Change in Cash and Cash Equivalents | $12,921 | $(5,236) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $84,264 | $58,329 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies, significant transactions, and financial instrument details [1. Description of Business](index=10&type=section&id=1.%20Description%20of%20Business) This note describes the company's core business, products, and geographic sales distribution - The company is a leading global designer, manufacturer, and marketer of motion control products, technologies, systems, and services [25](index=25&type=chunk) - Key products include hoists, actuators, rigging tools, light rail work stations, and digital power and motion control systems for commercial and industrial applications [25](index=25&type=chunk) - Sales to US customers represented approximately **54%** and **55%** for the three and nine months ended December 31, 2019, respectively [26](index=26&type=chunk) [2. Disposals](index=10&type=section&id=2.%20Disposals) This note details the company's divestitures and facility consolidation plans as part of its growth strategy - As part of its 'Blueprint for Growth' strategy, the company sold its Tire Shredder business, Crane Equipment and Service Inc., and Stahlhammer Bommern GmbH in fiscal 2019 [27](index=27&type=chunk) - An impairment loss of **$27.75 million** was recorded on remaining held-for-sale businesses during the nine months ended December 31, 2018 [28](index=28&type=chunk) - The company completed the consolidation of its Salem, Ohio facility in Q1 fiscal 2020 and plans to consolidate two Hangzhou, China manufacturing facilities [30](index=30&type=chunk)[32](index=32&type=chunk) [3. Revenue Recognition](index=11&type=section&id=3.%20Revenue%20Recognition) This note explains the company's policies for recognizing revenue from standard and custom engineered products - Revenue from standard products is recognized upon shipment when legal title and significant risks and rewards transfer to the customer [34](index=34&type=chunk) - Revenue for custom engineered products is generally recognized upon project completion, or over time if an enforceable right to payment exists [35](index=35&type=chunk)[36](index=36&type=chunk) Customer Advances (contract liabilities) | Customer Advances (contract liabilities) (in thousands) | Dec 31, 2019 | Dec 31, 2018 | | :---------------------------------------------------- | :----------- | :----------- | | March 31, beginning balance | $11,501 | $15,909 | | Additional customer advances received | $26,745 | $32,552 | | Revenue recognized from customer advances | $(25,773) | $(36,024) | | December 31, ending balance | $12,500 | $11,356 | Net Sales by Grouping | Net Sales by Grouping (in thousands) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Industrial Products | $84,067 | $91,720 | $267,459 | $288,239 | | Crane Solutions | $92,134 | $93,190 | $287,374 | $280,333 | | Engineered Products | $23,134 | $23,512 | $64,795 | $61,659 | | All other | $20 | $8,993 | $48 | $29,318 | | Total | $199,355 | $217,415 | $619,676 | $659,549 | [4. Fair Value Measurements](index=14&type=section&id=4.%20Fair%20Value%20Measurements) This note describes the company's fair value measurement hierarchy and the valuation of financial instruments - Fair value measurements are categorized into a three-level hierarchy based on input observability: Level 1 for quoted prices, Level 2 for observable inputs, and Level 3 for unobservable inputs [48](index=48&type=chunk)[49](index=49&type=chunk) - The company's derivatives and pension-related annuity contract are valued using **Level 2 inputs**, while marketable securities use **Level 1 inputs** [52](index=52&type=chunk)[55](index=55&type=chunk) Description | Description (in thousands) | Dec 31, 2019 Fair Value | Mar 31, 2019 Fair Value | Fair Value Hierarchy (Dec 31, 2019) | | :----------------------------------- | :---------------------- | :---------------------- | :---------------------------------- | | Marketable securities | $7,370 | $7,028 | Level 1 | | Annuity contract | $2,004 | $2,285 | Level 2 | | Foreign exchange contracts (net) | $(155) | $(70) | Level 2 | | Interest rate swap liability (asset) | $(1,258) | $1,213 | Level 2 | | Cross currency swap liability (net) | $(10,527) | $(13,708) | Level 2 | | Term loan (disclosed at fair value) | $(262,416) | $(310,463) | Level 2 | [5. Inventories](index=16&type=section&id=5.%20Inventories) This note provides a breakdown of inventory components and changes over the reporting period Inventory Component | Inventory Component (in thousands) | Dec 31, 2019 | Mar 31, 2019 | | :--------------------------------- | :----------- | :----------- | | Raw materials | $93,778 | $88,786 | | Work-in-process | $24,819 | $32,547 | | Finished goods | $35,204 | $40,523 | | Total at cost - FIFO basis | $153,801 | $161,856 | | LIFO cost less than FIFO cost | $(18,352) | $(15,593) | | Net inventories | $135,449 | $146,263 | - Net inventories decreased by **$10.81 million** from March 31, 2019, to December 31, 2019, primarily due to reductions in work-in-process and finished goods [60](index=60&type=chunk) [6. Marketable Securities and Other Investments](index=16&type=section&id=6.%20Marketable%20Securities%20and%20Other%20Investments) This note details the company's marketable securities and equity method investments, including their valuation and impact on earnings - Marketable securities are recorded at fair value through earnings and held as long-term assets for settling general and product liability insurance claims [61](index=61&type=chunk)[63](index=63&type=chunk) Unrealized Gains/Losses on Marketable Securities | Unrealized Gains/Losses on Marketable Securities (in thousands) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :-------------------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Impact on earnings (gain/loss) | $67 | $(422) | $232 | $(317) | - The company holds a **49%** equity method investment in Eastern Morris Cranes Company Limited (EMC), with a carrying value of **$3.45 million** at December 31, 2019 [64](index=64&type=chunk) [7. Goodwill and Intangible Assets](index=17&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) This note provides information on the company's goodwill and identifiable intangible assets, including their carrying values and amortization - Goodwill totaled **$322.77 million** at December 31, 2019, with no impairment indicators identified during the quarter [66](index=66&type=chunk)[68](index=68&type=chunk) Identifiable Intangible Assets | Identifiable Intangible Assets (in thousands) | Dec 31, 2019 Net | Mar 31, 2019 Net | | :-------------------------------------------- | :--------------- | :--------------- | | Trademark | $1,873 | $2,074 | | Indefinite lived trademark | $46,971 | $46,981 | | Customer relationships | $139,718 | $146,984 | | Acquired technology | $34,123 | $36,303 | | Other | $521 | $598 | | Total | $223,206 | $232,940 | Amortization Expense | Amortization Expense (in thousands) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :---------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Amortization Expense | $3,229 | $3,701 | $9,708 | $11,358 | [8. Derivative Instruments](index=18&type=section&id=8.%20Derivative%20Instruments) This note describes the company's use of derivative instruments to manage foreign currency and interest rate exposures - The company uses derivative instruments, including cross currency swaps, foreign currency forwards, and interest rate swaps, to manage foreign currency and interest rate exposures, not for speculative trading [72](index=72&type=chunk) - Cross currency swap agreements, with a notional amount of **$185.61 million**, are designated as cash flow hedges for intercompany loans related to the STAHL acquisition, maturing by January 31, 2022 [75](index=75&type=chunk) - Interest rate swap agreements, with a total notional amount of **$173.56 million**, are designated as cash flow hedges for variable interest rate changes on the senior secured term loan, maturing by December 31, 2023 [78](index=78&type=chunk) [9. Debt](index=20&type=section&id=9.%20Debt) This note outlines the company's debt facilities, including the revolving facility and term loan, and repayment activities - The company's debt facilities include a **$100 million** Revolving Facility and a **$445 million** 1st Lien Term Loan, established for the STAHL acquisition [83](index=83&type=chunk) - The outstanding principal balance of the Term Loan was **$260.46 million** as of December 31, 2019 [84](index=84&type=chunk) - The company repaid **$50 million** on the Term Loan during the nine months ended December 31, 2019, and plans to pay down **$65 million** in total over the next 12 months [84](index=84&type=chunk) [10. Net Periodic Benefit Cost](index=21&type=section&id=10.%20Net%20Periodic%20Benefit%20Cost) This note details the components of the company's net periodic pension cost and planned contributions Net Periodic Pension Cost | Net Periodic Pension Cost (in thousands) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :--------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Service costs | $269 | $255 | $784 | $791 | | Interest cost | $3,701 | $3,864 | $11,077 | $11,629 | | Expected return on plan assets | $(3,971) | $(4,594) | $(11,917) | $(13,836) | | Net amortization | $573 | $572 | $1,714 | $1,750 | | Net periodic pension (benefit) cost | $572 | $97 | $1,658 | $334 | - The company plans to contribute approximately **$11.09 million** to its pension plans in fiscal 2020 [92](index=92&type=chunk) [11. Earnings Per Share](index=21&type=section&id=11.%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings per share and related adjustments EPS | EPS (in thousands, except per share data) | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $15,250 | $(782) | $50,428 | $22,836 | | Weighted-average common stock outstanding – basic | 23,679 | 23,348 | 23,581 | 23,245 | | Basic income (loss) per share | $0.64 | $(0.03) | $2.14 | $0.98 | | Diluted income (loss) per share | $0.63 | $(0.03) | $2.11 | $0.97 | - Stock options, restricted stock units, and performance shares for **234,000** common shares were antidilutive and excluded from diluted EPS computation for the three and nine months ended December 31, 2019 [93](index=93&type=chunk) - The company reversed **$1.98 million** in stock compensation expense due to the CEO's resignation and forfeiture of shares in the quarter ended December 31, 2019 [96](index=96&type=chunk) [12. Loss Contingencies](index=23&type=section&id=12.%20Loss%20Contingencies) This note details the company's accrued liabilities for general, product, asbestos, and environmental loss contingencies - Accrued general and product liability costs totaled **$11.78 million** as of December 31, 2019, with **$8.24 million** in non-current liabilities and **$3.54 million** in accrued liabilities [100](index=100&type=chunk) - The estimated asbestos-related aggregate liability, including legal costs, is approximately **$4.86 million** as of December 31, 2019, with **$2 million** expected over the next 12 months [106](index=106&type=chunk) - The estimated product-related aggregate liability is approximately **$6.03 million** as of December 31, 2019 [108](index=108&type=chunk) - Total liabilities for all environmental matters related to Magnetek were **$532 thousand** as of December 31, 2019 [121](index=121&type=chunk) [13. Income Taxes](index=26&type=section&id=13.%20Income%20Taxes) This note discusses the company's income tax expense, effective tax rate, and the impact of foreign tax credits Income Tax Expense as % of Income from Continuing Operations Before Tax | Income Tax Expense as % of Income from Continuing Operations Before Tax | 3 Months Ended Dec 31, 2019 | 3 Months Ended Dec 31, 2018 | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :-------------------------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Income Tax Expense % | 13% | 134% | 20% | 29% | - Income tax expense as a percentage of income from continuing operations decreased by **11 percentage points** for the three months ended December 31, 2019, due to foreign tax credit utilization, resulting in a **$1.91 million** tax benefit [127](index=127&type=chunk)[129](index=129&type=chunk) - The estimated effective tax rate for continuing operations is approximately **21% to 22%** for fiscal 2020 [131](index=131&type=chunk) [14. Changes in Accumulated Other Comprehensive Loss](index=27&type=section&id=14.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Loss) This note outlines the changes in accumulated other comprehensive loss components, including retirement obligations and foreign currency adjustments AOCL Component | AOCL Component (in thousands) | Beginning Balance (Q3 2019) | Ending Balance (Dec 31, 2019) | | :---------------------------- | :-------------------------- | :---------------------------- | | Retirement Obligations | $(54,962) | $(55,155) | | Foreign Currency | $(32,430) | $(26,951) | | Change in Derivatives | $(3,516) | $(2,654) | | Total AOCL | $(90,908) | $(84,760) | - Net current period other comprehensive income for the three months ended December 31, 2019, was **$6.15 million**, primarily driven by foreign currency translation adjustments (**$5.48 million**) and changes in derivatives qualifying as hedges (**$862 thousand**) [133](index=133&type=chunk) [15. Leases](index=28&type=section&id=15.%20Leases) This note details the company's adoption of new lease accounting standards and the impact on its financial statements - The company adopted ASU No. 2016-02, 'Leases (Topic 842),' effective April 1, 2019, using the modified retrospective method and electing practical expedients [136](index=136&type=chunk)[160](index=160&type=chunk) - Upon adoption, the company recognized initial operating lease ROU assets and corresponding lease liabilities of **$35.55 million** [139](index=139&type=chunk) Lease Metric | Lease Metric (in thousands) | Dec 31, 2019 | | :-------------------------------------- | :----------- | | ROU Assets (Other assets) | $37,729 | | Current Lease Liabilities (Accrued liabilities) | $7,098 | | Non-current Lease Liabilities (Other non current liabilities) | $30,823 | | Total Lease Liabilities | $37,921 | | Weighted-average remaining lease term | 7.05 years | | Weighted-average discount rate | 4.13% | | Operating lease expense (9 months) | $6,833 | [16. Effects of New Accounting Pronouncements](index=31&type=section&id=16.%20Effects%20of%20New%20Accounting%20Pronouncements) This note discusses the company's evaluation and adoption of recent accounting pronouncements and their financial impact - The company is evaluating ASU 2019-12 (Simplifying Income Taxes) and ASU 2016-13 (Credit Losses), effective for fiscal years beginning after December 15, 2020, and December 15, 2019, respectively [150](index=150&type=chunk)[154](index=154&type=chunk) - Several ASUs related to leases and share-based payments were adopted in fiscal 2020, with no material impact on the financial statements [156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[162](index=162&type=chunk) [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION](index=34&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20RESULTS%20OF%20OPERATIONS%20AND%20FINANCIAL%20CONDITION) This section provides an executive overview, detailed financial performance analysis, and discussions on liquidity, capital resources, and market conditions [EXECUTIVE OVERVIEW](index=34&type=section&id=EXECUTIVE%20OVERVIEW) This section introduces the company's business, strategic initiatives, and global revenue distribution - Columbus McKinnon Corporation is a leading global designer, manufacturer, and marketer of motion control products, technologies, systems, and services [168](index=168&type=chunk) - The 'Blueprint for Growth Strategy' focuses on business simplification, operational excellence, and profitable growth through new product development and a digital platform [169](index=169&type=chunk) - Approximately **45%** of the company's revenue for the nine months ended December 31, 2019, is from customers outside the US, enhanced by the STAHL acquisition [170](index=170&type=chunk) [Results of Operations (Three Months Ended December 31, 2019 and December 31, 2018)](index=35&type=section&id=Results%20of%20Operations%20%28Three%20Months%20Ended%20December%2031%2C%202019%20and%20December%2031%2C%202018%29) This section analyzes the company's financial performance for the three months ended December 31, 2019, compared to the prior year - Net sales decreased by **8.3%** to **$199.36 million**, primarily due to decreased sales volume (**$10.63 million**) and divested businesses (**$8.98 million**), partially offset by price increases (**$3.25 million**) [176](index=176&type=chunk) - Gross profit decreased by **7.5%** to **$67.87 million**, but the gross profit margin slightly improved to **34.0%** from **33.8%** [177](index=177&type=chunk) - General and administrative expenses decreased by **$2.42 million**, largely due to lower incentive compensation and a **$1.98 million** reversal of stock compensation expense related to the CEO's resignation [179](index=179&type=chunk) - Income from operations increased significantly to **$20.89 million** from **$6.65 million** in the prior year, and net income was **$15.25 million** compared to a loss of **$782 thousand** [13](index=13&type=chunk) [Results of Operations (Nine Months Ended December 31, 2019 and December 31, 2018)](index=36&type=section&id=Results%20of%20Operations%20%28Nine%20Months%20Ended%20December%2031%2C%202019%20and%20December%2031%2C%202018%29) This section analyzes the company's financial performance for the nine months ended December 31, 2019, compared to the prior year - Net sales decreased by **6.0%** to **$619.68 million**, primarily due to sales from divested businesses (**$29.32 million**) and decreased sales volume (**$10.04 million**), partially offset by price increases (**$10.34 million**) [188](index=188&type=chunk) - Gross profit decreased by **5.2%** to **$216.98 million**, but the gross profit margin slightly improved to **35.0%** from **34.7%** [189](index=189&type=chunk) - General and administrative expenses decreased by **$5.18 million**, driven by lower incentive compensation and a **$1.98 million** reversal of stock compensation expense related to the CEO's resignation [191](index=191&type=chunk) - Income from operations increased to **$73.16 million** from **$44.97 million** in the prior year, and net income was **$50.43 million** compared to **$22.84 million** [13](index=13&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, operating cash flows, and sufficiency of funds for future operations and obligations - Cash, cash equivalents, and restricted cash increased by **$12.92 million** to **$84.26 million** at December 31, 2019 [201](index=201&type=chunk) - Net cash provided by operating activities was **$70.25 million** for the nine months ended December 31, 2019, an increase from **$53.80 million** in the prior year [202](index=202&type=chunk) - The company believes its cash on hand, cash flows, and borrowing capacity are sufficient to fund ongoing operations, debt obligations, and capital expenditures for at least the next twelve months [208](index=208&type=chunk) [Capital Expenditures](index=39&type=section&id=Capital%20Expenditures) This section provides details on the company's capital expenditures for the reporting period and future expectations Capital Expenditures | Capital Expenditures (in thousands) | 9 Months Ended Dec 31, 2019 | 9 Months Ended Dec 31, 2018 | | :---------------------------------- | :-------------------------- | :-------------------------- | | Consolidated Capital Expenditures | $6,761 | $7,236 | - The company expects capital expenditures for fiscal 2020 to range from approximately **$10 million to $12 million**, excluding acquisitions and strategic alliances [216](index=216&type=chunk) [Inflation and Other Market Conditions](index=39&type=section&id=Inflation%20and%20Other%20Market%20Conditions) This section discusses the impact of inflation and trade tariffs on the company's costs and operations - The company's costs are affected by inflation, particularly in employee benefits and steel prices, though general inflation has not had a material effect due to the ability to pass on costs through price increases [217](index=217&type=chunk) - The estimated fiscal 2020 exposure for trade tariffs is approximately **$2.5 million**, which will increase the cost of products sold [173](index=173&type=chunk) [Goodwill Impairment Testing](index=39&type=section&id=Goodwill%20Impairment%20Testing) This section describes the company's annual goodwill impairment testing process and current assessment - Goodwill is tested for impairment at least annually at the reporting unit level, one level below the operating segment [218](index=218&type=chunk)[219](index=219&type=chunk) - The company has two reporting units: Duff-Norton (**$9.61 million** goodwill) and Rest of Products (**$313.16 million** goodwill) as of December 31, 2019 [219](index=219&type=chunk) - As of December 31, 2019, the company does not believe any significant impairment indicators exist or that any reporting units are at risk of failing the goodwill impairment test [220](index=220&type=chunk) [Seasonality and Quarterly Results](index=39&type=section&id=Seasonality%20and%20Quarterly%20Results) This section highlights factors that can materially affect quarterly results and emphasizes that past performance is not indicative of future results - Quarterly results can be materially affected by factors such as large customer orders, vacation/holiday concentrations, legal settlements, market gains/losses on securities, restructuring charges, foreign currency translation, and divestitures/acquisitions [222](index=222&type=chunk) - Operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or for the full fiscal year [222](index=222&type=chunk) [Effects of New Accounting Pronouncements](index=39&type=section&id=Effects%20of%20New%20Accounting%20Pronouncements) This section refers to Note 16 for information regarding the effects of new accounting pronouncements - Information regarding the effects of new accounting pronouncements is included in Note 16 to the accompanying consolidated financial statements [223](index=223&type=chunk) [Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995](index=40&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This section includes forward-looking statements subject to risks and uncertainties, with no obligation to update revisions - This report includes 'forward-looking statements' subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially [225](index=225&type=chunk) - The company disclaims any obligation to publicly release the results of any revisions to these forward-looking statements to reflect future events or circumstances [225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reports no material changes in the company's market risks since the end of fiscal 2019 - There have been no material changes in the company's market risks since the end of fiscal 2019 [227](index=227&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2019, with no material changes in internal control - The company's disclosure controls and procedures were evaluated and concluded to be effective as of December 31, 2019 [228](index=228&type=chunk) - There have been no material changes in the company's internal control over financial reporting during the most recent quarter [229](index=229&type=chunk) [Part II. Other Information](index=42&type=section&id=Part%20II.%20Other%20Information) This section provides additional information on legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings – none.](index=42&type=section&id=Item%201.%20Legal%20Proceedings%20%E2%80%93%20none.) This section reports no legal proceedings under this item - No legal proceedings are reported under this item [231](index=231&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section reports no material changes to risk factors from the 2019 10-K, except for a new risk related to LIBOR phase-out - No material changes from the risk factors previously disclosed in the company's 2019 10-K, other than a new risk regarding LIBOR [232](index=232&type=chunk) - Changes in the method of determining LIBOR, or its replacement, may adversely affect interest rates on the company's Term Loan and Revolver [233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds – none.](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20%E2%80%93%20none.) This section reports no unregistered sales of equity securities or use of proceeds - No unregistered sales of equity securities and use of proceeds are reported under this item [234](index=234&type=chunk) [Item 3. Defaults upon Senior Securities – none.](index=42&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities%20%E2%80%93%20none.) This section reports no defaults upon senior securities - No defaults upon senior securities are reported under this item [235](index=235&type=chunk) [Item 4. Mine Safety Disclosures.](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This section indicates that Mine Safety Disclosures are not applicable to the company - Mine Safety Disclosures are not applicable to the company [236](index=236&type=chunk) [Item 5. Other Information – none.](index=42&type=section&id=Item%205.%20Other%20Information%20%E2%80%93%20none.) This section reports no other information - No other information is reported under this item [236](index=236&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including officer certifications and iXBRL financial statements - Exhibits include certifications from the Chief Executive Officer (Exhibit 31.1) and Chief Financial Officer (Exhibit 31.2) pursuant to the Securities Exchange Act of 1934 [238](index=238&type=chunk) - Exhibit 32 is a certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 [238](index=238&type=chunk) - Exhibit 101 includes the financial statements from the Quarterly Report on Form 10-Q formatted in iXBRL [238](index=238&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) This section contains the official signatures for the report [Signature](index=44&type=section&id=Signature) The report is signed by Gregory P. Rustowicz, Vice President Finance and Chief Financial Officer, on February 4, 2020 - The report was signed by Gregory P. Rustowicz, Vice President Finance and Chief Financial Officer, on February 4, 2020 [240](index=240&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission File Number: 0-27618 Columbus McKinnon Corporation (Address of principal executive offices) (Zip code) (716) 689-5400 (Registrant's telephone number, in ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended June 30, 2019 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (June 30, 2019 vs. March 31, 2019) | Metric | June 30, 2019 (in thousands) | March 31, 2019 (in thousands) | | :--- | :--- | :--- | | Total Assets | $1,090,472 | $1,061,571 | | Total Liabilities | $638,179 | $630,412 | | Total Shareholders' Equity | $452,293 | $431,159 | | Cash and Cash Equivalents | $55,716 | $71,093 | | Trade Accounts Receivable | $135,488 | $129,157 | | Inventories | $150,968 | $146,263 | | Current Portion of Long Term Debt | $65,000 | $65,000 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Three Months Ended June 30, 2019 vs. 2018) | Metric | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Net Sales | $212,712 | $224,992 | | Gross Profit | $75,612 | $79,647 | | Income from Operations | $27,043 | $13,503 | | Net Income | $18,579 | $7,706 | | Basic Income Per Share | $0.79 | $0.33 | | Diluted Income Per Share | $0.78 | $0.33 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended June 30, 2019 vs. 2018) | Metric | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Net Income (Loss) | $18,579 | $7,706 | | Foreign Currency Translation Adjustments| $1,395 | $(11,246) | | Change in Derivatives Qualifying as Hedges | $(758) | $(164) | | Change in Pension Liability and Postretirement Obligation | $(99) | $608 | | Total Other Comprehensive Income (Loss) | $538 | $(10,802) | | Comprehensive Income (Loss) | $19,117 | $(3,096) | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Changes in Shareholders' Equity (Three Months Ended June 30, 2019) | Item | Amount (in thousands) | | :--- | :--- | | Balance at March 31, 2019 | $431,159 | | Net Income | $18,579 | | Change in foreign currency translation adjustment | $1,395 | | Change in derivatives qualifying as hedges | $(758) | | Change in pension liability and postretirement obligations | $(99) | | Stock options exercised | $980 | | Stock compensation expense | $1,556 | | Restricted stock units released | $(519) | | Balance at June 30, 2019 | $452,293 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Three Months Ended June 30, 2019 vs. 2018) | Activity | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities| $(2,160) | $8,118 | | Net Cash from Investing Activities| $(2,420) | $(2,052) | | Net Cash from Financing Activities| $(10,942) | $(8,062) | | Net Change in Cash and Cash Equivalents | $(15,377) | $(5,890) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $55,966 | $57,675 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20condensed%20consolidated%20financial%20statements) [1. Description of Business](index=10&type=section&id=1.%20Description%20of%20Business) - Columbus McKinnon Corporation is a global designer, manufacturer, and marketer of material handling products, systems, and services, including hoists, rigging tools, actuators, and digital power control systems, primarily serving commercial and industrial applications[24](index=24&type=chunk) - Approximately **55% of sales** for the three months ended June 30, 2019, were to customers in the United States, with products sold globally through third-party distributors, crane builders, and directly to end-users[25](index=25&type=chunk) [2. Acquisitions and Disposals](index=10&type=section&id=2.%20Acquisitions%20and%20Disposals) - As part of its 'Blueprint for Growth' strategy, the Company initiated the sale of its Tire Shredder business, Crane Equipment and Service Inc, and Stahlhammer Bommern GmbH in fiscal 2019, completing the sales by February 28, 2019, as these were no longer considered core businesses[26](index=26&type=chunk) Financial Impact of Disposals | Item | Three Months Ended June 30, 2019 (in thousands) | Three Months Ended June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Net Loss on Sales of Businesses, including impairment | $169 | $11,100 | | Net Sales for Sold Businesses (2018) | N/A | $11,104 | | Pre-tax Income for Sold Businesses (2018) | N/A | $660 | [3. Revenue Recognition](index=10&type=section&id=3.%20Revenue%20Recognition) - Revenue from standard products is recognized at the time of shipment when control transfers to the customer, with variable consideration reducing revenue based on the most likely amount expected[30](index=30&type=chunk)[31](index=31&type=chunk) - Revenue for custom engineered products and services is generally recognized at a point in time upon project completion, as performance obligations are highly interrelated and do not meet over-time recognition criteria[32](index=32&type=chunk) Disaggregated Revenue by Product Grouping (Three Months Ended June 30, 2019 vs. 2018) | Product Grouping | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Industrial Products | $92,019 | $98,535 | | Crane Solutions | $100,113 | $97,502 | | Engineered Products | $20,561 | $17,683 | | All Other | $19 | $11,272 | | Total Net Sales | $212,712 | $224,992 | [4. Fair Value Measurements](index=12&type=section&id=4.%20Fair%20Value%20Measurements) - The Company uses a fair value hierarchy (Level 1, 2, 3) to categorize inputs for measuring fair value, prioritizing observable inputs[45](index=45&type=chunk)[46](index=46&type=chunk) - Derivative portfolios and annuity contracts are primarily valued using Level 2 inputs, while marketable securities are valued using Level 1 inputs[50](index=50&type=chunk)[52](index=52&type=chunk) Fair Value Measurements (June 30, 2019) | Description (Assets/(Liabilities)) | Fair Value (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Marketable securities | $7,575 | $7,575 | — | — | | Annuity contract | $2,340 | — | $2,340 | — | | Foreign exchange contracts | $(32) | — | $(32) | — | | Interest rate swap liability | $(972) | — | $(972) | — | | Cross currency swap liability | $(17,049) | — | $(17,049) | — | | Cross currency swap asset | $2,005 | — | $2,005 | — | | Term loan (disclosed) | $(300,463) | — | $(300,463) | — | [5. Inventories](index=14&type=section&id=5.%20Inventories) - Interim LIFO calculations are based on management's estimates of year-end inventory levels and costs, which are subject to change[57](index=57&type=chunk) Inventories (June 30, 2019 vs. March 31, 2019) | Inventory Component | June 30, 2019 (in thousands) | March 31, 2019 (in thousands) | | :--- | :--- | :--- | | Raw Materials | $97,546 | $88,786 | | Work-in-Process | $30,978 | $32,547 | | Finished Goods | $39,961 | $40,523 | | Total at Cost - FIFO Basis | $168,485 | $161,856 | | LIFO Cost Less Than FIFO Cost | $(17,517) | $(15,593) | | Net Inventories | $150,968 | $146,263 | [6. Marketable Securities and Other Investments](index=16&type=section&id=6.%20Marketable%20Securities%20and%20Other%20Investments) - Marketable securities are recorded at fair value through earnings, with a **gain of $137,000** from unrealized changes in market value for the three months ended June 30, 2019[59](index=59&type=chunk) - These securities are held as long-term assets to settle liability insurance claims through CM Insurance Company, Inc and are not available for general working capital[61](index=61&type=chunk) - The Company holds a **49% equity interest** in Eastern Morris Cranes Company Limited, valued at **$3,776,000** as of June 30, 2019, with investment income of **$110,000** recognized for the quarter[62](index=62&type=chunk) [7. Goodwill and Intangible Assets](index=16&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) - Goodwill and indefinite-lived trademarks are not amortized but are tested for impairment at least annually across two reporting units: Duff-Norton and Rest of Products[63](index=63&type=chunk) - Total amortization expense for identifiable intangible assets was **$3,253,000** for the three months ended June 30, 2019, with an estimated annual expense of approximately **$13,000,000** for fiscal years 2020-2024[69](index=69&type=chunk) Goodwill Balance (June 30, 2019) | Reporting Unit | Goodwill (in thousands) | | :--- | :--- | | Duff-Norton | $9,626 | | Rest of Products | $315,675 | | Total Goodwill | $325,301 | Identifiable Intangible Assets (June 30, 2019) | Asset Type | Gross Carrying Amount (in thousands) | Accumulated Amortization (in thousands) | Net (in thousands) | | :--- | :--- | :--- | :--- | | Trademark | $6,289 | $(4,254) | $2,035 | | Indefinite Lived Trademark | $47,239 | — | $47,239 | | Customer Relationships | $184,208 | $(38,307) | $145,901 | | Acquired Technology | $46,753 | $(11,144) | $35,609 | | Other | $3,470 | $(2,744) | $726 | | Total | $287,959 | $(56,449) | $231,510 | [8. Derivative Instruments](index=17&type=section&id=8.%20Derivative%20Instruments) - The Company uses derivative instruments to manage foreign currency and interest rate exposures, not for speculative trading[70](index=70&type=chunk) - Cross currency swap agreements, designated as cash flow hedges, hedge intercompany loans related to the STAHL acquisition, with a notional amount of **$194,043,000** maturing by January 31, 2022[73](index=73&type=chunk) - Interest rate swap agreements, also cash flow hedges, manage variable interest rate exposure on the senior secured term loan, with a total notional amount of **$189,293,000** maturing by December 31, 2023[77](index=77&type=chunk) Effect of Derivative Instruments on Statements of Operations (Three Months Ended June 30, 2019) | Type of Instrument | Location of Gain or (Loss) Recognized in Income | Amount of Gain or (Loss) Reclassified from AOCL into Income (in thousands) | | :--- | :--- | :--- | | Foreign exchange contracts | Cost of products sold | $0 | | Interest rate swaps | Interest expense | $(1,413) | | Cross currency swaps | Foreign currency exchange loss (gain) | $(1,001) | [9. Debt](index=19&type=section&id=9.%20Debt) - The Company's debt facilities include a **$100,000,000** Revolving Facility (maturing 2022) and a **$445,000,000** 1st Lien Term Loan (maturing 2024)[82](index=82&type=chunk) - The outstanding principal balance of the Term Loan was **$300,463,000** as of June 30, 2019, after repaying **$10,000,000** during the quarter[83](index=83&type=chunk) - As of June 30, 2019, there were **no outstanding borrowings** on the Revolver, but **$16,325,000** in outstanding letters of credit were issued against it[84](index=84&type=chunk) - Unsecured and uncommitted lines of credit totaling approximately **$2,501,000** were available to non-U.S subsidiaries, with no amounts drawn as of June 30, 2019[87](index=87&type=chunk) [10. Net Periodic Benefit Cost](index=19&type=section&id=10.%20Net%20Periodic%20Benefit%20Cost) - The Company plans to contribute approximately **$11,142,000** to its pension plans in fiscal 2020[91](index=91&type=chunk) Net Periodic Pension Cost (Three Months Ended June 30, 2019 vs. 2018) | Component | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Service Costs | $267 | $269 | | Interest Cost | $3,699 | $3,884 | | Expected Return on Plan Assets | $(3,973) | $(4,637) | | Net Amortization | $569 | $589 | | Net Periodic Pension (Benefit) Cost | $562 | $105 | Net Periodic Postretirement Benefit Cost (Three Months Ended June 30, 2019 vs. 2018) | Component | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Interest Cost | $20 | $29 | | Amortization of Plan Net Losses | $(40) | $(12) | | Net Periodic Postretirement (Benefit) Cost | $(20) | $17 | [11. Earnings Per Share](index=20&type=section&id=11.%20Earnings%20Per%20Share) - Stock options, restricted stock units, and performance shares totaling **292,000 common shares** were excluded from diluted EPS computation for the three months ended June 30, 2019, as they were antidilutive[93](index=93&type=chunk) - On July 22, 2019, the Board declared a dividend of **$0.06 per common share**, expected to be approximately **$1,425,000**[97](index=97&type=chunk) Earnings Per Share Computation (Three Months Ended June 30, 2019 vs. 2018) | Metric | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Net Income | $18,579 | $7,706 | | Weighted-Average Common Stock Outstanding (Basic) | 23,431 | 23,115 | | Effect of Dilutive Employee Stock Options and Other Share-Based Awards | 346 | 495 | | Adjusted Weighted-Average Common Stock Outstanding (Diluted) | 23,777 | 23,610 | | Basic EPS | $0.79 | $0.33 | | Diluted EPS | $0.78 | $0.33 | [12. Loss Contingencies](index=21&type=section&id=12.%20Loss%20Contingencies) - Accrued general and product liability costs totaled **$12,660,000** as of June 30, 2019[99](index=99&type=chunk) - The Company has accrued **$881,000** for environmental matters as of June 30, 2019, and does not anticipate a material adverse effect from environmental expenditures in fiscal 2020[102](index=102&type=chunk) - The estimated asbestos-related aggregate liability ranges between **$4,100,000 and $8,000,000**, with a recorded liability of approximately **$5,417,000** as of June 30, 2019[104](index=104&type=chunk)[106](index=106&type=chunk) - Magnetek, a subsidiary, faces asbestos-related lawsuits with an estimated liability of **$864,000** and an Italian tax matter with a potential liability of approximately **$10,800,000**[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - Magnetek is also involved in a dispute with Monsanto regarding PCB-related liabilities, which it is vigorously defending[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [13. Income Taxes](index=24&type=section&id=13.%20Income%20Taxes) - The Company estimates the effective tax rate for continuing operations to be approximately **22% to 23%** for fiscal 2020, varying from the U.S statutory rate due to foreign subsidiary tax rates and jurisdictional mix of taxable income[123](index=123&type=chunk)[124](index=124&type=chunk) Income Tax Expense as Percentage of Income from Continuing Operations | Period | Percentage | | :--- | :--- | | Three Months Ended June 30, 2019 | 22% | | Three Months Ended June 30, 2018 | 19% | [14. Changes in Accumulated Other Comprehensive Loss](index=25&type=section&id=14.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Loss) Changes in AOCL by Component (Three Months Ended June 30, 2019) | Component | Beginning Balance (in thousands) | Other Comprehensive Income (Loss) before Reclassification (in thousands) | Amounts Reclassified from AOCL (in thousands) | Ending Balance (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Retirement Obligations | $(55,145) | $(494) | $395 | $(55,244) | | Foreign Currency | $(25,355) | $1,395 | — | $(23,960) | | Change in Derivatives Qualifying Hedges | $(2,552) | $(2,414) | $1,656 | $(3,310) | | Total | $(83,052) | $(1,513) | $2,051 | $(82,514) | Details of Amounts Reclassified out of AOCL (Three Months Ended June 30, 2019) | AOCL Component | Amount Reclassified from AOCL (before tax, in thousands) | Affected Line Item on Condensed Consolidated Statement of Operations | | :--- | :--- | :--- | | Net amortization of prior service cost and pension settlement | $529 | Included in net periodic pension cost | | Change in derivatives qualifying as hedges | $(1) | Cost of products sold | | Change in derivatives qualifying as hedges | $(329) | Interest expense | | Change in derivatives qualifying as hedges | $2,537 | Foreign currency | [15. Leases](index=25&type=section&id=15.%20Leases) - The Company adopted ASU No 2016-02, 'Leases (Topic 842),' effective April 1, 2019, resulting in an initial recognition of operating lease Right-of-Use (ROU) assets and lease liabilities of **$35,553,000**[129](index=129&type=chunk)[132](index=132&type=chunk) - Leases are classified as operating leases for facilities, vehicles, and equipment, with terms ranging from 1 to 15 years; leases of twelve months or less are not recorded on the balance sheet[133](index=133&type=chunk)[134](index=134&type=chunk) Lease-Related Financial Information (June 30, 2019) | Metric | Amount (in thousands) | | :--- | :--- | | Operating Lease ROU Assets | $34,311 | | Current Lease Liabilities | $7,542 | | Non-Current Lease Liabilities | $26,835 | | Total Lease Liabilities | $34,377 | | Operating Lease Expense (3 months ended) | $2,313 | | Weighted-Average Remaining Lease Term | 6.14 years | | Weighted-Average Discount Rate | 4.22% | [16. Effects of New Accounting Pronouncements](index=28&type=section&id=16.%20Effects%20of%20New%20Accounting%20Pronouncements) - The Company has not yet adopted ASU 2016-13, 'Financial Instruments - Credit Losses (Topic 326),' which changes the methodology for measuring credit losses[145](index=145&type=chunk) - ASU 2016-02, 'Leases (Topic 842),' and related amendments were adopted effective April 1, 2019, requiring recognition of ROU assets and lease liabilities for operating leases[151](index=151&type=chunk) - Other standards adopted in fiscal 2020 did not have a material impact on the financial statements for the three months ended June 30, 2019[152](index=152&type=chunk)[154](index=154&type=chunk) [Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Results%20of%20Operations%20and%20Financial%20Condition) This section provides management's perspective on financial performance, condition, liquidity, and capital resources [Executive Overview](index=30&type=section&id=EXECUTIVE%20OVERVIEW) - Columbus McKinnon is a global leader in motion control products, systems, and services for material handling, focusing on safety and productivity[156](index=156&type=chunk) - The Company's 'Blueprint for Growth Strategy' aims to simplify the business, improve operational excellence, and drive profitable growth through new product development and a digital platform[157](index=157&type=chunk) - Revenue is geographically diverse, with approximately **45% from outside the U.S.** for the quarter, and the Company monitors global economic trends[158](index=158&type=chunk) - The Company anticipates a fiscal 2020 exposure of approximately **$3,000,000** from trade tariffs with China, which it is actively mitigating through productivity and pricing strategies[161](index=161&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) - Net sales decreased by **$12,280,000 (5.5%)** due to sold businesses and unfavorable foreign currency translation, partially offset by price increases and increased sales volume[164](index=164&type=chunk) - Gross profit decreased by **$4,035,000 (5.1%)**, but gross profit margin slightly increased to **35.5%**, driven by price increases net of material inflation and insurance settlements[165](index=165&type=chunk) - Selling, General and Administrative (G&A), and Research and Development (R&D) expenses all decreased, primarily due to lower incentive compensation and reductions from sold businesses[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) Key Financial Performance (Three Months Ended June 30, 2019 vs. 2018) | Metric | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Sales | $212,712 | $224,992 | -5.5% | | Gross Profit | $75,612 | $79,647 | -5.1% | | Gross Profit Margin | 35.5% | 35.4% | +0.1 pp | | Selling Expenses | $22,755 | $25,567 | -11.0% | | General & Administrative Expenses | $19,600 | $21,826 | -10.2% | | Research & Development Expenses | $2,792 | $3,748 | -25.4% | | Net Loss on Sales of Businesses, including impairment | $169 | $11,100 | -98.5% | | Amortization of Intangibles | $3,253 | $3,903 | -16.7% | | Interest and Debt Expense | $3,852 | $4,607 | -16.4% | | Investment Income | $302 | $268 | +12.7% | | Income Tax Expense % | 22% | 19% | +3 pp | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - Net cash used by operating activities was **$2,160,000**, a significant decrease from **$8,118,000** provided in the prior year, primarily due to changes in working capital[177](index=177&type=chunk) - Net cash used for financing activities increased to **$10,942,000**, mainly driven by **$10,000,000** in Term Loan repayments and **$1,404,000** in dividend payments[180](index=180&type=chunk) - The outstanding principal balance of the Term Loan was **$300,463,000** as of June 30, 2019, with the Company planning to pay down **$65,000,000** in total over the next 12 months[184](index=184&type=chunk)[185](index=185&type=chunk) - Capital expenditures for the quarter were **$1,854,000**, and are projected to be approximately **$20,000,000** for fiscal 2020[189](index=189&type=chunk) Cash Flow Summary (Three Months Ended June 30, 2019 vs. 2018) | Activity | June 30, 2019 (in thousands) | June 30, 2018 (in thousands) | | :--- | :--- | :--- | | Cash, Cash Equivalents, and Restricted Cash (End of Period) | $55,966 | $57,675 | | Net Cash Used by Operating Activities | $(2,160) | $8,118 | | Net Cash Used for Investing Activities | $(2,420) | $(2,052) | | Net Cash Used for Financing Activities | $(10,942) | $(8,062) | [Goodwill Impairment Testing](index=33&type=section&id=Goodwill%20Impairment%20Testing) - Goodwill is tested for impairment at least annually at the reporting unit level (Duff Norton and Rest of Products)[191](index=191&type=chunk)[192](index=192&type=chunk) - As of June 30, 2019, the Company does not believe it is more likely than not that the fair value of its reporting units is less than their carrying value[193](index=193&type=chunk) [Seasonality and Quarterly Results](index=34&type=section&id=Seasonality%20and%20Quarterly%20Results) - Quarterly results can be materially affected by factors such as the timing of large customer orders, vacation concentrations, legal settlements, and foreign currency translation[197](index=197&type=chunk) [Effects of New Accounting Pronouncements](index=34&type=section&id=Effects%20of%20New%20Accounting%20Pronouncements) - Information regarding the effects of new accounting pronouncements is detailed in Note 16 to the condensed consolidated financial statements[198](index=198&type=chunk) [Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995](index=34&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) - This report contains forward-looking statements subject to known and unknown risks that could cause actual results to differ materially from those expressed or implied[199](index=199&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the Company's market risks since the end of fiscal 2019 - There have been no material changes in the Company's market risks since the end of fiscal 2019[201](index=201&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective as of June 30, 2019 - The Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective** as of June 30, 2019[202](index=202&type=chunk) - There have been **no material changes** in the Company's internal control over financial reporting during the most recent quarter[203](index=203&type=chunk) [Part II. Other Information](index=36&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no material legal proceedings - No material legal proceedings are reported[205](index=205&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section indicates no material changes to previously disclosed risk factors - No material changes from the risk factors previously disclosed in the Company's 2019 10-K[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered sales of equity securities or use of proceeds - No unregistered sales of equity securities and use of proceeds[207](index=207&type=chunk) [Item 3. Defaults upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section confirms there were no defaults upon senior securities - No defaults upon senior securities[208](index=208&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable - Mine Safety Disclosures are not applicable[209](index=209&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section indicates there is no other information to report - No other information to report[209](index=209&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer pursuant to the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act of 2002[211](index=211&type=chunk) - The financial statements from the Quarterly Report on Form 10-Q for the three months ended June 30, 2019, are provided in iXBRL format as an exhibit[211](index=211&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended March 31, 2019 Commission file number 0-27618 _________________ COLUMBUS McKINNON CORPORATION (Exact name of Registrant as specified in its charter) New York 16-0547600 (State of Incorporation) (I.R.S. Employer Identification Number) 205 Crosspoint Parkway Getzville, New York 14068 (Address of princip ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934 For the quarterly period ended December 31, 2018 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission File Number: 0-27618 | --- | --- | |-------------------------------------------------------------------------------------|------------------------------- ...