Kadant Inc. (NYSE:KAI) reported its financial results for the third
quarter ended September 28, 2013.
Third Quarter 2013 Highlights
-
GAAP diluted earnings per share (EPS) from continuing operations was
$0.57 in the third quarter of 2013 compared to $0.66 in the third
quarter of 2012. Guidance was $0.47 to $0.49, which included $0.01 of
restructuring costs. A higher effective tax rate reduced diluted EPS
by $0.10 in the third quarter of 2013 compared to the third quarter of
2012.
-
Revenues were $91 million in the third quarter of 2013, including $7
million from acquisitions, compared to $87 million in the third
quarter of 2012. Guidance was $88 to $90 million, including revenues
from acquisitions.
-
Operating income was $10 million in both the third quarters of 2013
and 2012.
-
Bookings were $82 million in the third quarter of 2013, including $5
million from acquisitions, compared to $69 million in the third
quarter of 2012. Bookings in the first nine months of 2013 were $259
million, increasing 15% compared to the first nine months of 2012,
including 6% from acquisitions.
-
Cash flows from continuing operations were $13 million in both the
third quarters of 2013 and 2012, and were $31 million in the first
nine months of 2013 compared to $18 million in the first nine months
of 2012.
-
Net cash was $59 million at the end of the third quarter and increased
$10 million compared to the second quarter of 2013.
Management Commentary
“We had another solid quarter with strong cash flows and better than
expected EPS performance,” said Jonathan W. Painter, president and chief
executive officer of Kadant. “GAAP diluted EPS from continuing
operations was $0.57 and well above our guidance of $0.47 to $0.49
partly due to higher revenues. Our diluted EPS for the third quarter of
2013 included $0.05 from acquisition expenses.
“Revenues of $91 million in the third quarter of 2013 increased five
percent compared to the third quarter of 2012, including increases of
eight percent from acquisitions and two percent from foreign currency
translation. Operating cash flows from continuing operations were $13
million in the third quarter of 2013 and we ended the quarter with net
cash (cash less debt) of $59 million.
“Bookings increased to $82 million in the third quarter of 2013 compared
to $69 million in the third quarter of 2012, including $5 million from
acquisitions. Parts and consumables bookings increased 21 percent to $54
million in the third quarter of 2013 compared to the third quarter of
2012, including a seven percent increase from acquisitions.”
Third Quarter 2013
Kadant reported revenues of $91.3 million in the third quarter of 2013,
an increase of $4.7 million, or five percent, compared with $86.6
million in the third quarter of 2012. Revenues in the third quarter of
2013 included $7.0 million from acquisitions and a $1.5 million increase
from foreign currency translation compared to the third quarter of 2012.
Operating income from continuing operations was $9.9 million in both the
third quarters of 2013 and 2012. Net income from continuing operations
was $6.5 million in the third quarter of 2013, or $0.57 per diluted
share, compared to $7.6 million, or $0.66 per diluted share, in the
third quarter of 2012.
Guidance
“Our solid diluted EPS performance during the first three quarters of
2013 has positioned us to finish 2013 as expected,” Mr. Painter
continued. “Looking forward, we expect to achieve GAAP diluted EPS from
continuing operations of $0.47 to $0.49 in the fourth quarter of 2013 on
revenues of $86 to $88 million. Our fourth quarter guidance includes
estimated restructuring costs of $0.01. For the full year, we expect
revenues of $336 to $338 million, revised from our previous estimate of
$340 to $345 million. We expect to achieve GAAP diluted EPS from
continuing operations of $2.02 to $2.04, which includes a gain of $0.12
on the sale of assets and restructuring costs of $0.13. This guidance
does not include any results from the pending acquisition of Carmanah
Design and Manufacturing Inc.”
Conference Call
Kadant will hold a webcast with a slide presentation for investors on
Tuesday, November 5, 2013, at 11 a.m. eastern time to discuss its third
quarter performance, as well as future expectations. To access the
webcast, including the slideshow and accompanying audio, go to www.kadant.com
and click on the “Investors” tab. To listen to the webcast via
teleconference, call 877-703-6107 within the U.S., or +1-857-244-7306
outside the U.S. and reference participant passcode 83375884. Prior to
the call, our earnings release and the slides used in the webcast
presentation will be filed with the Securities and Exchange Commission
and will be available at www.sec.gov.
An archive of the webcast presentation will be available on our Web site
until December 6, 2013.
Shortly after the webcast, Kadant will post its updated general investor
presentation incorporating the third quarter results on its Web site at www.kadant.com
under the “Investors” tab.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), we use certain non-GAAP
financial measures, including increases or decreases in revenues
excluding the effect of acquisitions and foreign currency translation,
adjusted operating income, earnings before interest, taxes,
depreciation, and amortization (EBITDA), and adjusted EBITDA.
We believe that these non-GAAP financial measures, when taken together
with the corresponding GAAP financial measures, provide meaningful
supplemental information regarding our performance by excluding certain
items that may not be indicative of our core business, operating
results, or future outlook. We believe that the inclusion of such
measures helps investors to gain an understanding of our underlying
operating performance and future prospects, consistent with how
management measures and forecasts our performance, especially when
comparing such results to previous periods or forecasts and to the
performance of our competitors. Such measures are also used by us in our
financial and operating decision-making and for compensation purposes.
We also believe this information is responsive to investors' requests
and gives them an additional measure of our performance.
We present increases or decreases in revenues excluding the effect of
acquisitions and foreign currency translation to provide investors
insight into underlying revenue trends.
Adjusted operating income and adjusted EBITDA exclude pre-tax
restructuring costs of $2.0 million and a pre-tax gain on the sale of
assets of $1.7 million in the nine-month period ended September 28,
2013. These items are excluded as they are not indicative of our core
operating results and not comparable to other periods, which have
differing levels of incremental costs or other income or none at all.
The non-GAAP financial measures included in this press release are not
meant to be considered superior to or a substitute for the results of
operations prepared in accordance with GAAP. In addition, the non-GAAP
financial measures included in this press release have limitations
associated with their use as compared to the most directly comparable
GAAP measures, in that they may be different from, and therefore not
comparable to, similar measures used by other companies.
Reconciliations of the non-GAAP financial measures to the most directly
comparable GAAP financial measures are set forth in this press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights (unaudited)
|
(In thousands, except per share amounts and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
Consolidated Statement of Income
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
91,315
|
|
|
|
$
|
86,601
|
|
|
|
|
$
|
249,684
|
|
|
|
$
|
253,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
51,194
|
|
|
|
|
49,005
|
|
|
|
|
|
133,597
|
|
|
|
|
141,430
|
|
|
Selling, general, and administrative expenses
|
|
|
|
|
28,606
|
|
|
|
|
26,171
|
|
|
|
|
|
85,001
|
|
|
|
|
77,804
|
|
|
Research and development expenses
|
|
|
|
|
1,558
|
|
|
|
|
1,511
|
|
|
|
|
|
5,114
|
|
|
|
|
4,436
|
|
|
Restructuring costs and other (income) expense, net (a)
|
|
|
|
|
45
|
|
|
|
|
-
|
|
|
|
|
|
263
|
|
|
|
|
307
|
|
|
|
|
|
|
|
|
81,403
|
|
|
|
|
76,687
|
|
|
|
|
|
223,975
|
|
|
|
|
223,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
9,912
|
|
|
|
|
9,914
|
|
|
|
|
|
25,709
|
|
|
|
|
29,719
|
|
Interest Income
|
|
|
|
|
155
|
|
|
|
|
63
|
|
|
|
|
|
406
|
|
|
|
|
231
|
|
Interest Expense
|
|
|
|
|
(239
|
)
|
|
|
|
(219
|
)
|
|
|
|
|
(635
|
)
|
|
|
|
(624
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations before Provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for Income Taxes
|
|
|
|
|
9,828
|
|
|
|
|
9,758
|
|
|
|
|
|
25,480
|
|
|
|
|
29,326
|
|
Provision for Income Taxes
|
|
|
|
|
3,327
|
|
|
|
|
2,055
|
|
|
|
|
|
7,786
|
|
|
|
|
7,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
|
|
6,501
|
|
|
|
|
7,703
|
|
|
|
|
|
17,694
|
|
|
|
|
21,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operation, Net of Tax (b)
|
|
|
|
|
(14
|
)
|
|
|
|
844
|
|
|
|
|
|
(55
|
)
|
|
|
|
780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
6,487
|
|
|
|
|
8,547
|
|
|
|
|
|
17,639
|
|
|
|
|
22,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
|
(40
|
)
|
|
|
|
(86
|
)
|
|
|
|
|
(148
|
)
|
|
|
|
(151
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Kadant
|
|
|
|
$
|
6,447
|
|
|
|
$
|
8,461
|
|
|
|
|
$
|
17,491
|
|
|
|
$
|
22,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Attributable to Kadant:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
|
$
|
6,461
|
|
|
|
$
|
7,617
|
|
|
|
|
$
|
17,546
|
|
|
|
$
|
21,277
|
|
|
|
(Loss) Income from Discontinued Operation, Net of Tax
|
|
|
|
|
(14
|
)
|
|
|
|
844
|
|
|
|
|
|
(55
|
)
|
|
|
|
780
|
|
|
|
Net Income Attributable to Kadant
|
|
|
|
$
|
6,447
|
|
|
|
$
|
8,461
|
|
|
|
|
$
|
17,491
|
|
|
|
$
|
22,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to Kadant:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.58
|
|
|
|
$
|
0.67
|
|
|
|
|
$
|
1.57
|
|
|
|
$
|
1.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.66
|
|
|
|
|
$
|
1.55
|
|
|
|
$
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share Attributable to Kadant:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.58
|
|
|
|
$
|
0.75
|
|
|
|
|
$
|
1.57
|
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.74
|
|
|
|
|
$
|
1.55
|
|
|
|
$
|
1.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
11,153
|
|
|
|
|
11,341
|
|
|
|
|
|
11,165
|
|
|
|
|
11,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
11,365
|
|
|
|
|
11,491
|
|
|
|
|
|
11,321
|
|
|
|
|
11,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Effect
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Increase
|
|
|
of Currency
|
Revenues by Product Line
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
(Decrease)
|
|
|
Translation (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Preparation
|
|
|
|
$
|
38,827
|
|
|
|
$
|
34,492
|
|
|
|
|
$
|
4,335
|
|
|
|
$
|
3,255
|
|
Doctoring, Cleaning, & Filtration
|
|
|
|
|
28,801
|
|
|
|
|
27,095
|
|
|
|
|
|
1,706
|
|
|
|
|
1,463
|
|
Fluid-Handling
|
|
|
|
|
21,837
|
|
|
|
|
23,624
|
|
|
|
|
|
(1,787
|
)
|
|
|
|
(1,992
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems Segment
|
|
|
|
|
89,465
|
|
|
|
|
85,211
|
|
|
|
|
|
4,254
|
|
|
|
|
2,726
|
|
Fiber-based Products
|
|
|
|
|
1,850
|
|
|
|
|
1,390
|
|
|
|
|
|
460
|
|
|
|
|
460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
91,315
|
|
|
|
$
|
86,601
|
|
|
|
|
$
|
4,714
|
|
|
|
$
|
3,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Effect
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
Increase
|
|
|
of Currency
|
|
|
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
(Decrease)
|
|
|
Translation (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Preparation
|
|
|
|
$
|
90,322
|
|
|
|
$
|
95,883
|
|
|
|
|
$
|
(5,561
|
)
|
|
|
$
|
(7,012
|
)
|
Doctoring, Cleaning, & Filtration
|
|
|
|
|
82,329
|
|
|
|
|
79,706
|
|
|
|
|
|
2,623
|
|
|
|
|
1,847
|
|
Fluid-Handling
|
|
|
|
|
68,464
|
|
|
|
|
69,733
|
|
|
|
|
|
(1,269
|
)
|
|
|
|
(1,461
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems Segment
|
|
|
|
|
241,115
|
|
|
|
|
245,322
|
|
|
|
|
|
(4,207
|
)
|
|
|
|
(6,626
|
)
|
Fiber-based Products
|
|
|
|
|
8,569
|
|
|
|
|
8,374
|
|
|
|
|
|
195
|
|
|
|
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
249,684
|
|
|
|
$
|
253,696
|
|
|
|
|
$
|
(4,012
|
)
|
|
|
$
|
(6,431
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Effect
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Increase
|
|
|
of Currency
|
Sequential Revenues by Product Line
|
|
|
|
Sept. 28, 2013
|
|
|
June 29, 2013
|
|
|
|
(Decrease)
|
|
|
Translation (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Preparation
|
|
|
|
$
|
38,827
|
|
|
|
$
|
28,493
|
|
|
|
|
$
|
10,334
|
|
|
|
$
|
10,097
|
|
Doctoring, Cleaning, & Filtration
|
|
|
|
|
28,801
|
|
|
|
|
27,666
|
|
|
|
|
|
1,135
|
|
|
|
|
1,355
|
|
Fluid-Handling
|
|
|
|
|
21,837
|
|
|
|
|
23,094
|
|
|
|
|
|
(1,257
|
)
|
|
|
|
(1,082
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems Segment
|
|
|
|
|
89,465
|
|
|
|
|
79,253
|
|
|
|
|
|
10,212
|
|
|
|
|
10,370
|
|
Fiber-based Products
|
|
|
|
|
1,850
|
|
|
|
|
2,912
|
|
|
|
|
|
(1,062
|
)
|
|
|
|
(1,062
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
91,315
|
|
|
|
$
|
82,165
|
|
|
|
|
$
|
9,150
|
|
|
|
$
|
9,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Effect
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Increase
|
|
|
of Currency
|
Revenues by Geography (e)
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
(Decrease)
|
|
|
Translation (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
36,987
|
|
|
|
$
|
35,248
|
|
|
|
|
$
|
1,739
|
|
|
|
$
|
1,701
|
|
Europe
|
|
|
|
|
25,941
|
|
|
|
|
18,113
|
|
|
|
|
|
7,828
|
|
|
|
|
6,666
|
|
China
|
|
|
|
|
14,726
|
|
|
|
|
17,677
|
|
|
|
|
|
(2,951
|
)
|
|
|
|
(3,347
|
)
|
South America
|
|
|
|
|
8,032
|
|
|
|
|
5,873
|
|
|
|
|
|
2,159
|
|
|
|
|
2,231
|
|
Other
|
|
|
|
|
5,629
|
|
|
|
|
9,690
|
|
|
|
|
|
(4,061
|
)
|
|
|
|
(4,065
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
91,315
|
|
|
|
$
|
86,601
|
|
|
|
|
$
|
4,714
|
|
|
|
$
|
3,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Effect
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
Increase
|
|
|
of Currency
|
|
|
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
(Decrease)
|
|
|
Translation (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
116,215
|
|
|
|
$
|
115,677
|
|
|
|
|
$
|
538
|
|
|
|
$
|
251
|
|
Europe
|
|
|
|
|
60,108
|
|
|
|
|
56,014
|
|
|
|
|
|
4,094
|
|
|
|
|
2,521
|
|
China
|
|
|
|
|
38,307
|
|
|
|
|
40,721
|
|
|
|
|
|
(2,414
|
)
|
|
|
|
(3,229
|
)
|
South America
|
|
|
|
|
20,024
|
|
|
|
|
17,381
|
|
|
|
|
|
2,643
|
|
|
|
|
2,904
|
|
Other
|
|
|
|
|
15,030
|
|
|
|
|
23,903
|
|
|
|
|
|
(8,873
|
)
|
|
|
|
(8,878
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
249,684
|
|
|
|
$
|
253,696
|
|
|
|
|
$
|
(4,012
|
)
|
|
|
$
|
(6,431
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Effect
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Increase
|
|
|
of Currency
|
Sequential Revenues by Geography
|
|
|
|
Sept. 28, 2013
|
|
|
June 29, 2013
|
|
|
|
(Decrease)
|
|
|
Translation (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
36,987
|
|
|
|
$
|
40,350
|
|
|
|
|
$
|
(3,363
|
)
|
|
|
$
|
(3,243
|
)
|
Europe
|
|
|
|
|
25,941
|
|
|
|
|
16,594
|
|
|
|
|
|
9,347
|
|
|
|
|
9,029
|
|
China
|
|
|
|
|
14,726
|
|
|
|
|
12,353
|
|
|
|
|
|
2,373
|
|
|
|
|
2,275
|
|
South America
|
|
|
|
|
8,032
|
|
|
|
|
7,801
|
|
|
|
|
|
231
|
|
|
|
|
663
|
|
Other
|
|
|
|
|
5,629
|
|
|
|
|
5,067
|
|
|
|
|
|
562
|
|
|
|
|
584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
91,315
|
|
|
|
$
|
82,165
|
|
|
|
|
$
|
9,150
|
|
|
|
$
|
9,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
Business Segment Information
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems
|
|
|
|
|
44.3
|
%
|
|
|
|
43.6
|
%
|
|
|
|
|
46.5
|
%
|
|
|
|
44.0
|
%
|
|
|
Fiber-based Products
|
|
|
|
|
26.7
|
%
|
|
|
|
30.4
|
%
|
|
|
|
|
46.1
|
%
|
|
|
|
50.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43.9
|
%
|
|
|
|
43.4
|
%
|
|
|
|
|
46.5
|
%
|
|
|
|
44.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems
|
|
|
|
$
|
14,210
|
|
|
|
$
|
14,385
|
|
|
|
|
$
|
35,975
|
|
|
|
$
|
38,261
|
|
|
|
Corporate and Fiber-based Products
|
|
|
|
|
(4,298
|
)
|
|
|
|
(4,471
|
)
|
|
|
|
|
(10,266
|
)
|
|
|
|
(8,542
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,912
|
|
|
|
$
|
9,914
|
|
|
|
|
$
|
25,709
|
|
|
|
$
|
29,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (d,f):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems
|
|
|
|
$
|
14,255
|
|
|
|
$
|
14,385
|
|
|
|
|
$
|
36,238
|
|
|
|
$
|
38,261
|
|
|
|
Corporate and Fiber-based Products
|
|
|
|
|
(4,298
|
)
|
|
|
|
(4,471
|
)
|
|
|
|
|
(10,266
|
)
|
|
|
|
(8,542
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,957
|
|
|
|
$
|
9,914
|
|
|
|
|
$
|
25,972
|
|
|
|
$
|
29,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings from Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems
|
|
|
|
$
|
79,792
|
|
|
|
$
|
68,230
|
|
|
|
|
$
|
250,277
|
|
|
|
$
|
217,242
|
|
|
|
Fiber-based Products
|
|
|
|
|
1,844
|
|
|
|
|
1,113
|
|
|
|
|
|
8,769
|
|
|
|
|
7,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
81,636
|
|
|
|
$
|
69,343
|
|
|
|
|
$
|
259,046
|
|
|
|
$
|
224,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures from Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems
|
|
|
|
$
|
1,427
|
|
|
|
$
|
578
|
|
|
|
|
$
|
3,825
|
|
|
|
$
|
1,339
|
|
|
|
Corporate and Fiber-based Products
|
|
|
|
|
150
|
|
|
|
|
95
|
|
|
|
|
|
324
|
|
|
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,577
|
|
|
|
$
|
673
|
|
|
|
|
$
|
4,149
|
|
|
|
$
|
1,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
Cash Flow and Other Data from Continuing Operations
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Provided by Operations
|
|
|
|
$
|
12,625
|
|
|
|
$
|
13,205
|
|
|
|
|
$
|
30,697
|
|
|
|
$
|
17,737
|
|
Depreciation and Amortization Expense
|
|
|
|
|
2,302
|
|
|
|
|
2,147
|
|
|
|
|
|
6,730
|
|
|
|
|
6,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
Sept. 28, 2013
|
|
|
Dec. 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash Equivalents, and Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
$
|
73,167
|
|
|
|
$
|
54,553
|
|
Accounts Receivable, net
|
|
|
|
|
|
|
|
|
|
|
|
61,312
|
|
|
|
|
59,359
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
|
50,925
|
|
|
|
|
42,077
|
|
Unbilled Contract Costs and Fees
|
|
|
|
|
|
|
|
|
|
|
|
3,608
|
|
|
|
|
2,800
|
|
Other Current Assets
|
|
|
|
|
|
|
|
|
|
|
|
21,460
|
|
|
|
|
16,804
|
|
Property, Plant and Equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
42,105
|
|
|
|
|
39,168
|
|
Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
25,005
|
|
|
|
|
26,095
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
|
110,337
|
|
|
|
|
107,947
|
|
Other Assets
|
|
|
|
|
|
|
|
|
|
|
|
10,815
|
|
|
|
|
10,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
398,734
|
|
|
|
$
|
358,948
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
|
|
|
|
|
|
|
|
|
$
|
26,169
|
|
|
|
$
|
23,124
|
|
Short- and Long-term Debt
|
|
|
|
|
|
|
|
|
|
|
|
14,500
|
|
|
|
|
6,875
|
|
Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
93,465
|
|
|
|
|
78,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
134,134
|
|
|
|
|
108,981
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
264,600
|
|
|
|
|
249,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
398,734
|
|
|
|
$
|
358,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income and Adjusted EBITDA
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
Reconciliation
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
Sept. 28, 2013
|
|
|
Sept. 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Kadant
|
|
|
|
$
|
6,447
|
|
|
|
$
|
8,461
|
|
|
|
|
$
|
17,491
|
|
|
|
$
|
22,057
|
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
|
40
|
|
|
|
|
86
|
|
|
|
|
|
148
|
|
|
|
|
151
|
|
|
|
Loss (Income) from Discontinued Operation, Net of Tax
|
|
|
|
|
14
|
|
|
|
|
(844
|
)
|
|
|
|
|
55
|
|
|
|
|
(780
|
)
|
|
|
Provision for Income Taxes
|
|
|
|
|
3,327
|
|
|
|
|
2,055
|
|
|
|
|
|
7,786
|
|
|
|
|
7,898
|
|
|
|
Interest Expense, net
|
|
|
|
|
84
|
|
|
|
|
156
|
|
|
|
|
|
229
|
|
|
|
|
393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
9,912
|
|
|
|
|
9,914
|
|
|
|
|
|
25,709
|
|
|
|
|
29,719
|
|
|
|
Restructuring costs and other income, net (a)
|
|
|
|
|
45
|
|
|
|
|
-
|
|
|
|
|
|
263
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (d)
|
|
|
|
|
9,957
|
|
|
|
|
9,914
|
|
|
|
|
|
25,972
|
|
|
|
|
29,719
|
|
|
|
Depreciation and Amortization
|
|
|
|
|
2,302
|
|
|
|
|
2,147
|
|
|
|
|
|
6,730
|
|
|
|
|
6,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (d)
|
|
|
|
$
|
12,259
|
|
|
|
$
|
12,061
|
|
|
|
|
$
|
32,702
|
|
|
|
$
|
36,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papermaking Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
$
|
14,210
|
|
|
|
$
|
14,385
|
|
|
|
|
$
|
35,975
|
|
|
|
$
|
38,261
|
|
|
|
Restructuring costs and other income, net (a)
|
|
|
|
|
45
|
|
|
|
|
-
|
|
|
|
|
|
263
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (d)
|
|
|
|
|
14,255
|
|
|
|
|
14,385
|
|
|
|
|
|
36,238
|
|
|
|
|
38,261
|
|
|
|
Depreciation and Amortization
|
|
|
|
|
2,180
|
|
|
|
|
2,030
|
|
|
|
|
|
6,371
|
|
|
|
|
6,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (d)
|
|
|
|
$
|
16,435
|
|
|
|
$
|
16,415
|
|
|
|
|
$
|
42,609
|
|
|
|
$
|
44,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Fiber-based Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
|
$
|
(4,298
|
)
|
|
|
$
|
(4,471
|
)
|
|
|
|
$
|
(10,266
|
)
|
|
|
$
|
(8,542
|
)
|
|
|
Depreciation and Amortization
|
|
|
|
|
122
|
|
|
|
|
117
|
|
|
|
|
|
359
|
|
|
|
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (d)
|
|
|
|
$
|
(4,176
|
)
|
|
|
$
|
(4,354
|
)
|
|
|
|
$
|
(9,907
|
)
|
|
|
$
|
(8,186
|
)
|
|
(a) Includes restructuring costs of $45 in the three-month period ended
September 28, 2013 and restructuring costs of $2,003, net of a gain of
$1,740 on the sale of assets, in the nine-month period ended September
28, 2013.
(b) Income from discontinued operation in the three- and nine-month
periods ended September 29, 2012 was due to the reduction in the reserve
for the payment of claims related to the Composites LLC class action
settlement.
(c) Represents the increase (decrease) resulting from the conversion of
current period amounts reported in local currencies into U.S. dollars at
the exchange rate of the prior period compared to the U.S. dollar amount
reported in the prior period.
(d) Represents a non-GAAP financial measure.
(e) Geographic revenues are attributed to regions based on customer
location.
(f) See reconciliation to the most directly comparable GAAP financial
measure under "Adjusted Operating Income and Adjusted EBITDA
Reconciliation."
About Kadant
Kadant Inc. is a leading supplier to the global pulp and paper industry.
Our stock-preparation; fluid-handling; and doctoring, cleaning, and
filtration products are designed to increase efficiency and improve
quality in pulp and paper production. Many of our products, particularly
in our Fluid-Handling product line, are also used to optimize production
in other process industries. In addition, we produce granules from
papermaking byproducts for agricultural and lawn and garden
applications. Kadant is based in Westford, Massachusetts, with revenues
of $332 million in 2012 and 1,600 employees in 17 countries worldwide.
For more information, visit www.kadant.com.
The following constitutes a “Safe Harbor” statement under the Private
Securities Litigation Reform Act of 1995: This press release contains
forward-looking statements that involve a number of risks and
uncertainties, including forward-looking statements about our expected
future financial and operating performance, demand for our products,
economic and industry outlook, and pending acquisition of Carmanah
Design and Manufacturing Inc. Our actual results may differ materially
from these forward-looking statements as a result of various important
factors, including those set forth under the heading “Risk Factors” in
Kadant’s quarterly report on Form 10-Q for the period ended June 29,
2013. These include risks and uncertainties relating to our dependence
on the pulp and paper industry; significance of sales and operation of
manufacturing facilities in China; commodity and component price
increases or shortages; international sales and operations; our
acquisition strategy; our ability to consummate the pending acquisition,
to successfully integrate the acquired business, and realize anticipated
benefits of the acquisition; the future performance of the oriented
strand board industry and housing markets; general economic conditions;
our internal growth strategy; fluctuations in currency exchange rates;
competition; soundness of suppliers and customers; our effective tax
rate; future restructurings; soundness of financial institutions; our
debt obligations; restrictions in our credit agreement; protection of
patents and proprietary rights; failure of our information systems or
breaches of data security; fluctuations in our share price; and
anti-takeover provisions. We undertake no obligation to publicly update
any forward-looking statement, whether as a result of new information,
future events, or otherwise.
Copyright Business Wire 2013