EX-99 3 kaiform8kexhibit997292013.htm KAI FORM 8-K EXHIBIT 99 07-29-2013
 
Exhibit 99
[LOGO]
NEWS
KADANT
AN ACCENT ON INNOVATION
One Technology Park Drive
Westford, MA 01886
 
Investor contact: Thomas M. O'Brien, 978-776-2000
Media contact: Wes Martz, 269-278-1715

Kadant Reports 2013 Second Quarter Results
Raises Adjusted Diluted EPS Guidance for 2013

WESTFORD, Mass., July 29, 2013 – Kadant Inc. (NYSE:KAI) reported its financial results for the second quarter ended June 29, 2013.

Second Quarter 2013 Highlights
 
·
GAAP diluted earnings per share (EPS) from continuing operations was $0.51 in the second quarter of 2013, compared to $0.56 in the second quarter of 2012.

·
Adjusted diluted EPS was $0.51 in the second quarter of 2013, excluding a gain of $0.12 on the sale of assets and acquisition-related restructuring costs of $0.12, compared to our adjusted diluted EPS guidance of $0.43 to $0.45, which excluded an estimated gain of $0.10 on the sale of assets.

·
Bookings were $87 million in the second quarter of 2013, including $7 million from acquisitions, compared to $77 million in the second quarter of 2012.

·
Revenues were $82 million in the second quarter of 2013, including $6 million from acquisitions, compared to $83 million in the second quarter of 2012. Our revenue guidance was $79 to $82 million, which included anticipated revenues from CBTI. Adjusting for revenues from Noss that were not included in the guidance, our adjusted revenue guidance was $81 to $84 million, which compares to our actual revenues of $82 million.

·
Gross profit margins were a record 48.6% in the second quarter of 2013, up 490 basis points from the second quarter of 2012.

·
Cash flows from continuing operations were $11 million in the second quarter of 2013, an increase of 30% compared to $9 million in the second quarter of 2012.

·
The acquisitions of Companhia Brasileira de Tecnologia Industrial (CBTI) and certain assets of the Noss Group (Noss) were completed.

·
Net cash was $48 million at the end of the second quarter.

·
Cash returned to shareholders through a dividend payment and common stock repurchases was $2.8 million in the second quarter of 2013.

Adjusted diluted EPS, adjusted diluted EPS guidance, and adjusted revenue guidance are non-GAAP measures that exclude certain items as detailed later in this press release under the heading "Use of Non-GAAP Financial Measures" and in the reconciliation tables below.

Management Commentary

"We were pleased we exceeded our diluted EPS guidance on an adjusted basis," said Jonathan W. Painter, president and chief executive officer of Kadant. "We also had excellent gross margins and cash flows in the second quarter of 2013. Gross profit margins in the second quarter of 2013 were a record 48.6 percent. Operating cash flows from continuing operations were $11.1 million in the second quarter of 2013, increasing 30 percent over the second quarter of 2012. We ended the quarter with net cash (cash less debt) of $48.5 million, an increase of 61 percent over $30.1 million in the second quarter of 2012. Significantly, our operating cash flows from continuing operations over the last twelve months were $44.0 million, reflecting the strength of our business.

"Consolidated bookings increased to $87.1 million in the second quarter compared to $77.4 million in the second quarter of 2012, including a $7.4 million increase from acquisitions and a 54 percent increase in China bookings. We ended the quarter with a strong backlog of $106.3 million, including $9.0 million from acquisitions. After the quarter closed, we booked orders for paper drying and fabric cleaning systems in Europe with a combined value of $4.4 million."

Second Quarter 2013

Kadant reported revenues of $82.2 million in the second quarter of 2013, a decrease of $0.8 million, or one percent, compared with $83.0 million in the second quarter of 2012. Revenues in the second quarter of 2013 included $6.1 million from acquisitions and a $0.6 million increase from foreign currency translation compared to the second quarter of 2012. Operating income from continuing operations was $8.4 million in the second quarter of 2013, including a $1.7 million gain on the sale of assets and a $1.9 million acquisition-related restructuring charge, compared to $9.4 million in the second quarter of 2012.

Net income from continuing operations was $5.8 million in the second quarter of 2013, or $0.51 per diluted share, compared to $6.5 million, or $0.56 per diluted share, in the second quarter of 2012. Net income from continuing operations in the second quarter of 2013 included a $1.3 million, or $0.12 per diluted share, after-tax gain on the sale of assets and a $1.3 million, or $0.12 per diluted share, after-tax restructuring charge. Adjusted net income, a non-GAAP measure, was $5.8 million, or $0.51 per diluted share, in the second quarter of 2013 compared to $6.5 million, or $0.56 per diluted share, in the second quarter of 2012.
 
 
Three Months Ended
June 29, 2013
    
Three Months Ended
June 30, 2012
  
Adjusted Net Income and Adjusted Diluted EPS Reconciliation (non-GAAP)
  
($ in millions)
    
Diluted EPS
    
($ in millions)
    
Diluted EPS
  
Income and Diluted EPS from Continuing Operations Attributable to Kadant, as reported
  
$
5.8
    
$
0.51
    
$
6.5
    
$
0.56
  
Adjustments:
                                
   Gain on the sale of assets
    
(1.3
)
    
(0.12
)
    
-
      
-
  
   Restructuring costs
    
1.3
      
0.12
      
-
      
-
  
Adjusted Net Income and Adjusted Diluted EPS
  
$
5.8
    
$
0.51
    
$
6.5
    
$
0.56
  

Guidance

"We expect to achieve GAAP diluted EPS from continuing operations of $0.47 to $0.49 in the third quarter of 2013 on revenues of $88 to $90 million," Mr. Painter continued. "Our third quarter of 2013 guidance includes estimated restructuring costs of $0.01. For the full year, we now expect revenues of $340 to $345 million, revised from our previous guidance of $336 to $343 million. We expect to achieve GAAP diluted EPS from continuing operations of $2.02 to $2.07, which includes a gain of $0.12 on the sale of assets and acquisition-related restructuring costs of $0.13. This compares to our previous GAAP diluted EPS guidance of $2.00 to $2.10, which included an estimated gain of $0.10 on the sale of assets. On an adjusted diluted EPS basis, excluding the restructuring costs and gain on sale, we are raising our guidance to $2.03 to $2.08 from our previous guidance of $1.90 to $2.00."

Conference Call

Kadant will hold a webcast with a slide presentation for investors on Tuesday, July 30, 2013, at 11 a.m. eastern time to discuss its second 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 August 30, 2013.

Shortly after the webcast, Kadant will post its updated general investor presentation incorporating the second 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 revenue guidance, adjusted operating income, adjusted net income, adjusted diluted EPS, adjusted diluted EPS guidance, 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 revenue guidance for the second quarter of 2013 includes $2 million of revenues from the Noss acquisition.

Adjusted operating income and adjusted EBITDA exclude pre-tax restructuring costs of $1.9 million and a pre-tax gain on the sale of assets of $1.7 million in the three-month and six-month periods ended June 29, 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.

Adjusted net income and adjusted diluted EPS exclude after-tax restructuring costs of $1.3 million ($1.9 million net of tax of $0.6 million) and an after-tax gain on the sale of assets of $1.3 million ($1.7 million gain net of tax of $0.4 million) in the three-month and six-month periods ended June 29, 2013.

Adjusted diluted EPS in the three-month periods ended June 29, 2013 and June 30, 2012 was calculated using the reported weighted average diluted shares for each period.

Adjusted diluted EPS guidance for the second quarter of 2013 excludes a gain on the sale of assets of $0.10 and for the full-year 2013 excludes restructuring costs of $0.13 and a gain on the sale of assets of $0.12.

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.
-more-
Financial Highlights (unaudited)
  
   
   
   
 
(In thousands, except per share amounts and percentages)
    
   
   
 
 
  
   
   
   
 
   
  
Three Months Ended
    
Six Months Ended
  
Consolidated Statement of Income
  
June 29, 2013
    
June 30, 2012
    
June 29, 2013
    
June 30, 2012
  
 
  
   
   
   
 
Revenues
  
$
82,165
    
$
82,982
    
$
158,369
    
$
167,095
  
 
                                
Costs and Operating Expenses:
                                
Cost of revenues
    
42,225
      
46,684
      
82,403
      
92,425
  
Selling, general, and administrative expenses
    
29,445
      
25,490
      
56,395
      
51,633
  
Research and development expenses
    
1,852
      
1,393
      
3,556
      
2,925
  
Restructuring costs and other (income) expense, net (a)(g)
    
218
      
-
      
218
      
307
  
 
    
73,740
      
73,567
      
142,572
      
147,290
  
 
                                
Operating Income
    
8,425
      
9,415
      
15,797
      
19,805
  
Interest Income
    
142
      
74
      
251
      
168
  
Interest Expense
    
(231
)
    
(196
)
    
(396
)
    
(405
)
 
                                
Income from Continuing Operations before Provision
                                
for Income Taxes
    
8,336
      
9,293
      
15,652
      
19,568
  
Provision for Income Taxes
    
2,492
      
2,705
      
4,459
      
5,843
  
 
                                
Income from Continuing Operations
    
5,844
      
6,588
      
11,193
      
13,725
  
 
                                
Loss from Discontinued Operation, Net of Tax
    
(12
)
    
(3
)
    
(41
)
    
(64
)
 
                                
Net Income
    
5,832
      
6,585
      
11,152
      
13,661
  
 
                                
Net Income Attributable to Noncontrolling Interest
    
(72
)
    
(42
)
    
(108
)
    
(65
)
 
                                
Net Income Attributable to Kadant
  
$
5,760
    
$
6,543
    
$
11,044
    
$
13,596
  
 
                                
Amounts Attributable to Kadant:
                                
Income from Continuing Operations
  
$
5,772
    
$
6,546
    
$
11,085
    
$
13,660
  
Loss from Discontinued Operation, Net of Tax
    
(12
)
    
(3
)
    
(41
)
    
(64
)
Net Income Attributable to Kadant
  
$
5,760
    
$
6,543
    
$
11,044
    
$
13,596
  
 
                                
Earnings per Share from Continuing Operations
                                
Attributable to Kadant:
                                
Basic
  
$
0.52
    
$
0.57
    
$
0.99
    
$
1.18
  
 
                                
Diluted
  
$
0.51
    
$
0.56
    
$
0.98
    
$
1.17
  
 
                                
Earnings per Share Attributable to Kadant:
                                
Basic
  
$
0.52
    
$
0.57
    
$
0.99
    
$
1.17
  
 
                                
Diluted
  
$
0.51
    
$
0.56
    
$
0.98
    
$
1.16
  
 
                                
Weighted Average Shares:
                                
Basic
    
11,178
      
11,575
      
11,170
      
11,614
  
 
                                
Diluted
    
11,331
      
11,679
      
11,299
      
11,704
  
 
                                
 
                          
Decrease
  
 
                          
Excluding Effect
  
   
  
Three Months Ended
    
 
    
of Currency
  
Revenues by Product Line
  
June 29, 2013
    
June 30, 2012
    
Increase
(Decrease)
    
Translation (b,c)
  
 
                                
Stock-Preparation
  
$
28,493
    
$
28,674
    
$
(181
)
  
$
(453
)
Doctoring, Cleaning, & Filtration (d)
    
27,666
      
27,546
      
120
      
(164
)
Fluid-Handling
    
23,094
      
23,741
      
(647
)
    
(715
)
 
                                
Papermaking Systems Segment
    
79,253
      
79,961
      
(708
)
    
(1,332
)
Fiber-based Products
    
2,912
      
3,021
      
(109
)
    
(109
)
 
                                
   
  
$
82,165
    
$
82,982
    
$
(817
)
  
$
(1,441
)
 
                                
 
                          
Increase
  
 
                          
(Decrease)
  
 
                          
Excluding Effect
  
   
  
Six Months Ended
    
 
    
of Currency
  
 
  
June 29, 2013
    
June 30, 2012
    
Increase
(Decrease)
    
Translation (b,c)
  
 
                                
Stock-Preparation
  
$
51,495
    
$
61,391
    
$
(9,896
)
  
$
(10,267
)
Doctoring, Cleaning, & Filtration (d)
    
53,528
      
52,611
      
917
      
384
  
Fluid-Handling
    
46,627
      
46,109
      
518
      
531
  
 
                                
Papermaking Systems Segment
    
151,650
      
160,111
      
(8,461
)
    
(9,352
)
Fiber-based Products
    
6,719
      
6,984
      
(265
)
    
(265
)
 
                                
   
  
$
158,369
    
$
167,095
    
$
(8,726
)
  
$
(9,617
)
 
-more-
 
  
   
   
   
Increase
  
 
  
   
   
   
(Decrease)
  
 
  
   
   
   
Excluding Effect
  
  
  
Three Months Ended
        
of Currency
  
Sequential Revenues by Product Line
  
June 29, 2013
    
March 30, 2013
    
Increase
(Decrease)
    
Translation (b,c)
  
 
  
   
   
   
 
Stock-Preparation
  
$
28,493
    
$
23,002
    
$
5,491
    
$
5,465
  
Doctoring, Cleaning, & Filtration (d)
    
27,666
      
25,862
      
1,804
      
1,904
  
Fluid-Handling
    
23,094
      
23,533
      
(439
)
    
(278
)
 
                                
Papermaking Systems Segment
    
79,253
      
72,397
      
6,856
      
7,091
  
Fiber-based Products
    
2,912
      
3,807
      
(895
)
    
(895
)
 
                                
  
  
$
82,165
    
$
76,204
    
$
5,961
    
$
6,196
  
 
                                
 
                          
Increase
  
 
                          
(Decrease)
  
 
                          
Excluding Effect
  
  
  
Three Months Ended
        
of Currency
  
Revenues by Geography (e)
  
June 29, 2013
    
June 30, 2012
    
Increase
(Decrease)
    
Translation (b,c)
  
 
                                
North America
  
$
40,350
    
$
40,730
    
$
(380
)
  
$
(580
)
Europe
    
16,594
      
18,861
      
(2,267
)
    
(2,473
)
China
    
12,353
      
11,151
      
1,202
      
941
  
South America
    
7,801
      
5,714
      
2,087
      
2,131
  
Other
    
5,067
      
6,526
      
(1,459
)
    
(1,460
)
 
                                
  
  
$
82,165
    
$
82,982
    
$
(817
)
  
$
(1,441
)
 
                                
 
                          
Increase
  
 
                          
(Decrease)
  
 
                          
Excluding Effect
  
  
  
Six Months Ended
    
 
    
of Currency
  
 
  
June 29, 2013
    
June 30, 2012
    
Increase
(Decrease)
    
Translation (b,c)
  
 
                                
North America
  
$
79,228
    
$
80,429
    
$
(1,201
)
  
$
(1,450
)
Europe
    
34,167
      
37,901
      
(3,734
)
    
(4,145
)
China
    
23,581
      
23,044
      
537
      
118
  
South America
    
11,992
      
11,508
      
484
      
673
  
Other
    
9,401
      
14,213
      
(4,812
)
    
(4,813
)
 
                                
  
  
$
158,369
    
$
167,095
    
$
(8,726
)
  
$
(9,617
)
 
                                
 
                          
Increase
  
 
                          
(Decrease)
  
 
                          
Excluding Effect
  
  
  
Three Months Ended
    
 
    
of Currency
  
Sequential Revenues by Geography
  
June 29, 2013
    
March 30, 2013
    
Increase
(Decrease)
    
Translation (b,c)
  
 
                                
North America
  
$
40,350
    
$
38,878
    
$
1,472
    
$
1,461
  
Europe
    
16,594
      
17,573
      
(979
)
    
(768
)
China
    
12,353
      
11,228
      
1,125
      
1,030
  
South America
    
7,801
      
4,191
      
3,610
      
3,666
  
Other
    
5,067
      
4,334
      
733
      
807
  
 
                                
  
  
$
82,165
    
$
76,204
    
$
5,961
    
$
6,196
  
 
                                
  
  
Three Months Ended
    
Six Months Ended
  
Business Segment Information
  
June 29, 2013
    
June 30, 2012
    
June 29, 2013
    
June 30, 2012
  
 
                                
Gross Profit Margin:
                                
Papermaking Systems
    
48.7
%
    
43.4
%
    
47.8
%
    
44.2
%
Fiber-based Products
    
47.1
%
    
52.8
%
    
51.4
%
    
54.8
%
 
                                
 
    
48.6
%
    
43.7
%
    
48.0
%
    
44.7
%
 
                                
Operating Income:
                                
Papermaking Systems
  
$
11,821
    
$
11,772
    
$
21,765
    
$
23,876
  
Corporate and Fiber-based Products
    
(3,396
)
    
(2,357
)
    
(5,968
)
    
(4,071
)
 
                                
  
  
$
8,425
    
$
9,415
    
$
15,797
    
$
19,805
  
 
                                
Adjusted Operating Income (c,f):
                                
Papermaking Systems
  
$
12,039
    
$
11,772
    
$
21,983
    
$
23,876
  
Corporate and Fiber-based Products
    
(3,396
)
    
(2,357
)
    
(5,968
)
    
(4,071
)
 
                                
  
  
$
8,643
    
$
9,415
    
$
16,015
    
$
19,805
  
 
                                
Bookings from Continuing Operations:
                                
Papermaking Systems
  
$
84,857
    
$
74,794
    
$
170,485
    
$
149,012
  
Fiber-based Products
    
2,271
      
2,617
      
6,925
      
5,993
  
 
                                
  
  
$
87,128
    
$
77,411
    
$
177,410
    
$
155,005
  
 
                                
Capital Expenditures from Continuing Operations:
                                
Papermaking Systems
  
$
1,226
    
$
503
    
$
2,398
    
$
761
  
Corporate and Fiber-based Products
    
168
      
80
      
174
      
80
  
 
                                
  
  
$
1,394
    
$
583
    
$
2,572
    
$
841
  
-more-
 
 
 
  
   
   
   
   
Twelve
  
 
   
  
Three Months Ended
    
Six Months Ended
    
Months Ended
  
Cash Flow and Other Data from Continuing Operations
  
June 29, 2013
    
June 30, 2012
    
June 29, 2013
    
June 30, 2012
    
June 29, 2013
  
 
 
  
   
   
   
   
 
Cash Provided by Operations
  
$
11,091
    
$
8,558
    
$
18,072
    
$
4,532
    
$
43,996
  
Depreciation and Amortization Expense
    
2,475
      
2,029
      
4,428
      
4,272
          
 
 
                                        
 
 
                                        
Balance Sheet Data
                  
June 29, 2013
    
Dec. 29, 2012
          
 
 
                                        
Assets
                                        
Cash, Cash Equivalents, and Restricted Cash
                  
$
64,487
    
$
54,553
          
Accounts Receivable, net
                    
63,025
      
59,359
          
Inventories
                    
54,052
      
42,077
          
Unbilled Contract Costs and Fees
                    
1,087
      
2,800
          
Other Current Assets
                    
19,749
      
16,804
          
Property, Plant and Equipment, net
                    
41,476
      
39,168
          
Intangible Assets
                    
25,995
      
26,095
          
Goodwill
                    
108,381
      
107,947
          
Other Assets
                    
10,642
      
10,145
          
 
 
                                        
 
 
                  
$
388,894
    
$
358,948
          
Liabilities and Shareholders' Investment
                                        
Accounts Payable
                  
$
26,050
    
$
23,124
          
Short- and Long-term Debt
                    
16,025
      
6,875
          
Other Liabilities
                    
92,437
      
78,982
          
 
 
                                        
Total Liabilities
                    
134,512
      
108,981
          
Stockholders' Equity
                    
254,382
      
249,967
          
 
 
                                        
 
 
                  
$
388,894
    
$
358,948
          
 
 
                                        
 
 
                                        
Adjusted Operating Income and Adjusted EBITDA
  
Three Months Ended
    
Six Months Ended
          
Reconciliation
  
June 29, 2013
    
June 30, 2012
    
June 29, 2013
    
June 30, 2012
          
 
 
                                        
Consolidated
                                        
Net Income Attributable to Kadant
  
$
5,760
    
$
6,543
    
$
11,044
    
$
13,596
          
Net Income Attributable to Noncontrolling Interest
    
72
      
42
      
108
      
65
          
Loss from Discontinued Operation, Net of Tax
    
12
      
3
      
41
      
64
          
Provision for Income Taxes
    
2,492
      
2,705
      
4,459
      
5,843
          
Interest Expense, net
    
89
      
122
      
145
      
237
          
 
 
                                        
Operating Income
    
8,425
      
9,415
      
15,797
      
19,805
          
Restructuring costs and other income, net (a)
    
218
      
-
      
218
      
-
          
 
 
                                        
Adjusted Operating Income (c)
    
8,643
      
9,415
      
16,015
      
19,805
          
Depreciation and Amortization
    
2,475
      
2,029
      
4,428
      
4,272
          
 
 
                                        
Adjusted EBITDA (c)
  
$
11,118
    
$
11,444
    
$
20,443
    
$
24,077
          
 
 
                                        
Papermaking Systems
                                        
Operating Income
  
$
11,821
    
$
11,772
    
$
21,765
    
$
23,876
          
Restructuring costs and other income, net (a)
    
218
      
-
      
218
      
-
          
 
 
                                        
Adjusted Operating Income (c)
    
12,039
      
11,772
      
21,983
      
23,876
          
Depreciation and Amortization
    
2,356
      
1,909
      
4,191
      
4,033
          
 
 
                                        
Adjusted EBITDA (c)
  
$
14,395
    
$
13,681
    
$
26,174
    
$
27,909
          
 
 
                                        
Corporate and Fiber-based Products
                                        
Operating Loss
  
$
(3,396
)
  
$
(2,357
)
  
$
(5,968
)
  
$
(4,071
)
        
Depreciation and Amortization
    
119
      
120
      
237
      
239
          
 
 
                                        
EBITDA (c)
  
$
(3,277
)
  
$
(2,237
)
  
$
(5,731
)
  
$
(3,832
)
        
 
 
                                        
(a)
Includes restructuring costs of $1,958, net of a gain of $1,740 on the sale of assets, in the three-month and six-month periods ended June 29, 2013.
  
 
 
                                        
(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)
This product line was formerly presented separately as doctoring, water-management, and other product lines. Prior period amounts have been recast to conform to the current presentation.
  
 
 
                                        
(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."
  
 
 
                                        
(g)
Includes accelerated depreciation of $307 in the six-month period ended June 30, 2012 associated with the disposal of equipment in China related to a facility consolidation.
  
 
-more-
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, and economic and industry outlook. 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 March 30, 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; fluctuations in our 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; our acquisition strategy; 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.

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