|
Delaware
|
1-11406
|
52-1762325
|
|
(State or Other Jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
|
of Incorporation)
|
Identification No.)
|
|
One Technology Park Drive
|
||
|
Westford, Massachusetts
|
01886
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
|
Item 9.01 Financial Statements and Exhibits.
|
|
(c) Exhibit
|
|
|
|
The following exhibit relating to Item 2.02 shall be deemed to be furnished and not filed.
|
||
|
Exhibit
No
|
Description of Exhibit
|
|
|
99
|
Press Release issued by the Company on July 30, 2012
|
|
|
KADANT INC.
|
||
|
Date: July 30, 2012
|
By
|
/s/ Thomas M. O’Brien
|
|
Thomas M. O’Brien
Executive Vice President and
Chief Financial Officer
|
9#D`@[ ZM-R;+LZ=Z1(S7WJ,/8(RBN<"=9G3HQD>PW+^CI$,RNI@0ZG7
MLZB8
|
·
|
GAAP diluted earnings per share (EPS) from continuing operations was $0.56 in the second quarter of 2012 compared to $0.59 in the second quarter of 2011. Guidance was $0.50 to $0.52.
|
|
·
|
Revenues were $83.0 million in the quarter compared to $82.5 million in the second quarter of 2011. Guidance was $83 to $85 million.
|
|
·
|
Net income was $6.5 million in the quarter compared to $7.3 million in the second quarter of 2011.
|
|
·
|
EBITDA was $11.4 million in the quarter, down 8% from the second quarter of 2011, and was 13.8% of revenues compared to 15.1% in last year’s second quarter.
|
|
·
|
Cash flows from continuing operations were $8.6 million in the quarter, up 25% from the second quarter of 2011.
|
|
·
|
Repurchases of common stock were $7.3 million in the second quarter of 2012.
|
|
Financial Highlights (unaudited)
|
|||||||||||||||||
|
(In thousands, except per share amounts and percentages)
|
|||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||
|
Consolidated Statement of Income
|
June 30, 2012
|
July 2, 2011
|
June 30, 2012
|
July 2, 2011
|
|||||||||||||
|
Revenues
|
$ | 82,982 | $ | 82,457 | $ | 167,095 | $ | 154,137 | |||||||||
|
Costs and Operating Expenses:
|
|||||||||||||||||
|
Cost of revenues
|
46,684 | 44,751 | 92,425 | 82,338 | |||||||||||||
|
Selling, general, and administrative expenses
|
25,490 | 25,821 | 51,633 | 50,294 | |||||||||||||
|
Research and development expenses
|
1,393 | 1,403 | 2,925 | 2,715 | |||||||||||||
|
Other expense (a)
|
- | - | 307 | - | |||||||||||||
|
|
73,567 | 71,975 | 147,290 | 135,347 | |||||||||||||
|
Operating Income
|
9,415 | 10,482 | 19,805 | 18,790 | |||||||||||||
|
Interest Income
|
74 | 122 | 168 | 221 | |||||||||||||
|
Interest Expense
|
(196 | ) | (299 | ) | (405 | ) | (556 | ) | |||||||||
|
Income from Continuing Operations before Provision
|
|||||||||||||||||
|
for Income Taxes
|
9,293 | 10,305 | 19,568 | 18,455 | |||||||||||||
|
Provision for Income Taxes
|
2,705 | 2,927 | 5,843 | 5,200 | |||||||||||||
|
|
|||||||||||||||||
|
Income from Continuing Operations
|
6,588 | 7,378 | 13,725 | 13,255 | |||||||||||||
|
Loss from Discontinued Operation, Net of Tax
|
(3 | ) | (5 | ) | (64 | ) | (9 | ) | |||||||||
|
Net Income
|
6,585 | 7,373 | 13,661 | 13,246 | |||||||||||||
|
Net Income Attributable to Noncontrolling Interest
|
(42 | ) | (69 | ) | (65 | ) | (151 | ) | |||||||||
|
Net Income Attributable to Kadant
|
$ | 6,543 | $ | 7,304 | $ | 13,596 | $ | 13,095 | |||||||||
|
Amounts Attributable to Kadant:
|
|||||||||||||||||
|
Income from Continuing Operations
|
$ | 6,546 | $ | 7,309 | $ | 13,660 | $ | 13,104 | |||||||||
|
Loss from Discontinued Operation, Net of Tax
|
(3 | ) | (5 | ) | (64 | ) | (9 | ) | |||||||||
|
Net Income Attributable to Kadant
|
$ | 6,543 | $ | 7,304 | $ | 13,596 | $ | 13,095 | |||||||||
|
Earnings per Share from Continuing Operations
|
|||||||||||||||||
|
Attributable to Kadant:
|
|||||||||||||||||
|
Basic
|
$ | 0.57 | $ | 0.59 | $ | 1.18 | $ | 1.07 | |||||||||
|
Diluted
|
$ | 0.56 | $ | 0.59 | $ | 1.17 | $ | 1.05 | |||||||||
|
Earnings per Share Attributable to Kadant:
|
|||||||||||||||||
|
Basic
|
$ | 0.57 | $ | 0.59 | $ | 1.17 | $ | 1.07 | |||||||||
|
Diluted
|
$ | 0.56 | $ | 0.59 | $ | 1.16 | $ | 1.05 | |||||||||
|
Weighted Average Shares:
|
|||||||||||||||||
|
Basic
|
11,575 | 12,321 | 11,614 | 12,294 | |||||||||||||
|
Diluted
|
11,679 | 12,477 | 11,704 | 12,442 | |||||||||||||
|
Increase
|
|||||||||||||||||
|
(Decrease)
|
|||||||||||||||||
|
Excluding Effect
|
|||||||||||||||||
|
Three Months Ended
|
Increase
|
of Currency
|
|||||||||||||||
|
Revenues by Product Line
|
June 30, 2012
|
July 2, 2011
|
(Decrease)
|
Translation (b,c)
|
|||||||||||||
|
Stock-Preparation
|
$ | 28,674 | $ | 32,320 | $ | (3,646 | ) | $ | (2,821 | ) | |||||||
|
Fluid-Handling
|
23,741 | 24,471 | (730 | ) | 583 | ||||||||||||
|
Doctoring
|
13,985 | 13,694 | 291 | 910 | |||||||||||||
|
Water-Management
|
13,046 | 8,515 | 4,531 | 5,179 | |||||||||||||
|
Other
|
515 | 621 | (106 | ) | (27 | ) | |||||||||||
|
|
Papermaking Systems Segment
|
79,961 | 79,621 | 340 | 3,824 | ||||||||||||
|
Fiber-based Products
|
3,021 | 2,836 | 185 | 185 | |||||||||||||
| $ | 82,982 | $ | 82,457 | $ | 525 | $ | 4,009 | ||||||||||
|
Increase
|
|||||||||||||||||
|
(Decrease)
|
|||||||||||||||||
|
Excluding Effect
|
|||||||||||||||||
|
Six Months Ended
|
Increase
|
of Currency
|
|||||||||||||||
|
June 30, 2012
|
July 2, 2011
|
(Decrease)
|
Translation (b,c)
|
||||||||||||||
|
Stock-Preparation
|
$ | 61,391 | $ | 55,643 | $ | 5,748 | $ | 6,622 | |||||||||
|
Fluid-Handling
|
46,109 | 47,104 | (995 | ) | 688 | ||||||||||||
|
Doctoring
|
27,622 | 27,757 | (135 | ) | 732 | ||||||||||||
|
Water-Management
|
23,853 | 15,330 | 8,523 | 9,331 | |||||||||||||
|
Other
|
1,136 | 1,321 | (185 | ) | (59 | ) | |||||||||||
|
|
Papermaking Systems Segment
|
160,111 | 147,155 | 12,956 | 17,314 | ||||||||||||
|
Fiber-based Products
|
6,984 | 6,982 | 2 | 2 | |||||||||||||
| $ | 167,095 | $ | 154,137 | $ | 12,958 | $ | 17,316 | ||||||||||
|
|
Increase
|
||||||||||||||||
|
(Decrease)
|
|||||||||||||||||
|
Excluding Effect
|
|||||||||||||||||
|
Three Months Ended
|
Increase
|
of Currency
|
|||||||||||||||
|
Sequential Revenues by Product Line
|
June 30, 2012
|
March 31, 2012
|
(Decrease)
|
Translation (b,c)
|
|||||||||||||
|
Stock-Preparation
|
$ | 28,674 | $ | 32,717 | $ | (4,043 | ) | $ | (3,860 | ) | |||||||
|
Fluid-Handling
|
23,741 | 22,368 | 1,373 | 1,759 | |||||||||||||
|
Doctoring
|
13,985 | 13,637 | 348 | 429 | |||||||||||||
|
Water-Management
|
13,046 | 10,807 | 2,239 | 2,356 | |||||||||||||
|
Other
|
515 | 621 | (106 | ) | (85 | ) | |||||||||||
|
|
Papermaking Systems Segment
|
79,961 | 80,150 | (189 | ) | 599 | |||||||||||
|
Fiber-based Products
|
3,021 | 3,963 | (942 | ) | (942 | ) | |||||||||||
| $ | 82,982 | $ | 84,113 | $ | (1,131 | ) | $ | (343 | ) | ||||||||
|
Increase
|
|||||||||||||||||
|
(Decrease)
|
|||||||||||||||||
|
Excluding Effect
|
|||||||||||||||||
|
Three Months Ended
|
Increase
|
of Currency
|
|||||||||||||||
|
Revenues by Geography (d)
|
June 30, 2012
|
July 2, 2011
|
(Decrease)
|
Translation (b,c)
|
|||||||||||||
|
North America
|
$ | 40,730 | $ | 36,634 | $ | 4,096 | $ | 4,590 | |||||||||
|
Europe
|
18,861 | 19,560 | (699 | ) | 1,007 | ||||||||||||
|
China
|
11,151 | 15,754 | (4,603 | ) | (4,642 | ) | |||||||||||
|
South America
|
5,714 | 4,877 | 837 | 1,681 | |||||||||||||
|
Other
|
6,526 | 5,632 | 894 | 1,373 | |||||||||||||
|
|
$ | 82,982 | $ | 82,457 | $ | 525 | $ | 4,009 | |||||||||
|
Increase
|
|||||||||||||||||
|
(Decrease)
|
|||||||||||||||||
|
Excluding Effect
|
|||||||||||||||||
|
Six Months Ended
|
Increase
|
of Currency
|
|||||||||||||||
|
June 30, 2012
|
July 2, 2011
|
(Decrease)
|
Translation (b,c)
|
||||||||||||||
|
North America
|
$ | 80,429 | $ | 74,802 | $ | 5,627 | $ | 6,310 | |||||||||
|
Europe
|
37,901 | 33,598 | 4,303 | 6,588 | |||||||||||||
|
China
|
23,044 | 24,610 | (1,566 | ) | (2,005 | ) | |||||||||||
|
South America
|
11,508 | 9,579 | 1,929 | 3,051 | |||||||||||||
|
Other
|
14,213 | 11,548 | 2,665 | 3,372 | |||||||||||||
|
|
$ | 167,095 | $ | 154,137 | $ | 12,958 | $ | 17,316 | |||||||||
|
Increase
|
|||||||||||||||||
|
(Decrease)
|
|||||||||||||||||
|
Excluding Effect
|
|||||||||||||||||
|
Three Months Ended
|
Increase
|
of Currency
|
|||||||||||||||
|
Sequential Revenues by Geography
|
June 30, 2012
|
March 31, 2012
|
(Decrease)
|
Translation (b,c)
|
|||||||||||||
|
North America
|
$ | 40,730 | $ | 39,699 | $ | 1,031 | $ | 1,146 | |||||||||
|
Europe
|
18,861 | 19,040 | (179 | ) | 74 | ||||||||||||
|
China
|
11,151 | 11,893 | (742 | ) | (668 | ) | |||||||||||
|
South America
|
5,714 | 5,794 | (80 | ) | 196 | ||||||||||||
|
Other
|
6,526 | 7,687 | (1,161 | ) | (1,091 | ) | |||||||||||
|
|
$ | 82,982 | $ | 84,113 | $ | (1,131 | ) | $ | (343 | ) | |||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||
|
Business Segment Information
|
June 30, 2012
|
July 2, 2011
|
June 30, 2012
|
July 2, 2011
|
|||||||||||||
|
Gross Profit Margin:
|
|||||||||||||||||
|
Papermaking Systems
|
43.4 | % | 45.3 | % | 44.2 | % | 46.3 | % | |||||||||
|
Fiber-based Products
|
52.8 | % | 56.6 | % | 54.8 | % | 53.2 | % | |||||||||
| 43.7 | % | 45.7 | % | 44.7 | % | 46.6 | % | ||||||||||
|
Operating Income:
|
|||||||||||||||||
|
Papermaking Systems
|
$ | 11,772 | $ | 13,073 | $ | 23,876 | $ | 23,770 | |||||||||
|
Corporate and Fiber-based Products
|
(2,357 | ) | (2,591 | ) | (4,071 | ) | (4,980 | ) | |||||||||
| $ | 9,415 | $ | 10,482 | $ | 19,805 | $ | 18,790 | ||||||||||
|
Bookings from Continuing Operations:
|
|||||||||||||||||
|
Papermaking Systems
|
$ | 74,794 | $ | 85,564 | $ | 149,012 | $ | 165,832 | |||||||||
|
Fiber-based Products
|
2,617 | 1,777 | 5,993 | 5,808 | |||||||||||||
| $ | 77,411 | $ | 87,341 | $ | 155,005 | $ | 171,640 | ||||||||||
|
Capital Expenditures from Continuing Operations:
|
|||||||||||||||||
|
Papermaking Systems
|
$ | 503 | $ | 2,746 | $ | 761 | $ | 3,910 | |||||||||
|
Corporate and Fiber-based Products
|
80 | 54 | 80 | 54 | |||||||||||||
| $ | 583 | $ | 2,800 | $ | 841 | $ | 3,964 | ||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||
|
Cash Flow and Other Data from Continuing Operations
|
June 30, 2012
|
July 2, 2011
|
June 30, 2012
|
July 2, 2011
|
|||||||||||||||||
|
Cash Provided by Operations
|
$ | 8,558 | $ | 6,839 | $ | 4,532 | $ | 7,206 | |||||||||||||
|
Depreciation and Amortization Expense
|
2,029 | 1,982 | 4,272 | 3,847 | |||||||||||||||||
|
Balance Sheet Data
|
June 30, 2012
|
Dec. 31, 2011 |
|
||||||||||||||||||
|
Assets
|
|||||||||||||||||||||
|
Cash, Cash Equivalents, and Restricted Cash
|
$ | 42,099 | $ | 47,650 |
|
||||||||||||||||
|
Accounts Receivable, net
|
57,134 | 59,492 |
|
||||||||||||||||||
|
Inventories
|
49,167 | 50,527 |
|
||||||||||||||||||
|
Unbilled Contract Costs and Fees
|
10,662 | 3,244 |
|
||||||||||||||||||
|
Other Current Assets
|
12,788 | 13,378 |
|
||||||||||||||||||
|
Property, Plant and Equipment, net
|
38,055 | 40,095 |
|
||||||||||||||||||
|
Intangible Assets
|
27,288 | 29,053 |
|
||||||||||||||||||
|
Goodwill
|
104,912 | 105,959 |
|
||||||||||||||||||
|
Other Assets
|
9,041 | 9,000 |
|
||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
$ | 351,146 | $ | 358,398 |
|
||||||||||||||||
|
Liabilities and Shareholders' Investment
|
|
||||||||||||||||||||
|
Accounts Payable
|
$ | 25,645 | $ | 28,624 |
|
||||||||||||||||
|
Short- and Long-term Debt
|
12,000 | 12,250 |
|
||||||||||||||||||
|
Other Liabilities
|
84,543 | 93,894 |
|
||||||||||||||||||
|
|
|||||||||||||||||||||
|
Total Liabilities
|
$ | 122,188 | $ | 134,768 |
|
||||||||||||||||
|
Shareholders' Investment
|
$ | 228,958 | $ | 223,630 |
|
||||||||||||||||
|
|
|||||||||||||||||||||
| $ | 351,146 | $ | 358,398 |
|
|||||||||||||||||
|
Twelve Months
|
|||||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
Ended
|
|||||||||||||||||||
|
Adjusted EBITDA Reconciliation
|
June 30, 2012
|
July 2, 2011
|
June 30, 2012
|
July 2, 2011
|
June 30, 2012
|
||||||||||||||||
|
Consolidated
|
|||||||||||||||||||||
|
Net Income Attributable to Kadant
|
$ | 6,543 | $ | 7,304 | $ | 13,596 | $ | 13,095 | $ | 34,076 | |||||||||||
|
Net Income Attributable to Noncontrolling Interest
|
42 | 69 | 65 | 151 | 188 | ||||||||||||||||
|
Loss from Discontinued Operation, Net of Tax
|
3 | 5 | 64 | 9 | 64 | ||||||||||||||||
|
Provision for Income Taxes
|
2,705 | 2,927 | 5,843 | 5,200 | 4,928 | ||||||||||||||||
|
Interest Expense, net
|
122 | 177 | 237 | 335 | 469 | ||||||||||||||||
|
Operating Income
|
9,415 | 10,482 | 19,805 | 18,790 | 39,725 | ||||||||||||||||
|
Depreciation and Amortization
|
2,029 | 1,982 | 4,272 | 3,847 | 8,361 | ||||||||||||||||
|
EBITDA (c)
|
$ | 11,444 | $ | 12,464 | $ | 24,077 | $ | 22,637 | $ | 48,086 | |||||||||||
|
Restructuring costs and other income, net
|
(1,874 | ) | |||||||||||||||||||
|
Adjusted EBITDA (c)
|
$ | 46,212 | |||||||||||||||||||
|
Papermaking Systems
|
|||||||||||||||||||||
|
Operating Income
|
$ | 11,772 | $ | 13,073 | $ | 23,876 | $ | 23,770 | |||||||||||||
|
Depreciation and Amortization
|
1,909 | 1,860 | 4,033 | 3,604 | |||||||||||||||||
|
EBITDA (c)
|
$ | 13,681 | $ | 14,933 | $ | 27,909 | $ | 27,374 | |||||||||||||
|
Corporate and Fiber-based Products
|
|||||||||||||||||||||
|
Operating Loss
|
$ | (2,357 | ) | $ | (2,591 | ) | $ | (4,071 | ) | $ | (4,980 | ) | |||||||||
|
Depreciation and Amortization
|
120 | 122 | 239 | 243 | |||||||||||||||||
|
EBITDA (c)
|
$ | (2,237 | ) | $ | (2,469 | ) | $ | (3,832 | ) | $ | (4,737 | ) | |||||||||
|
(a)
|
Represents accelerated depreciation in the six-month period ended June 30, 2012 associated with the anticipated
|
||||||||||||||||||||
|
disposal of equipment in China related to a facility consolidation.
|
|||||||||||||||||||||
|
(b)
|
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.
|
|||||||||||||||||||||
|
(c)
|
Represents a non-GAAP financial measure.
|
||||||||||||||||||||
|
(d)
|
Starting in the first quarter of 2012, geographic revenues are attributed to regions based on customer location. Prior period
|
||||||||||||||||||||
|
amounts have been recasted to conform to the current presentation.
|
|||||||||||||||||||||