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))
|
|
(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 November 4, 2013
|
|
|
|
|
|
KADANT INC.
|
|
|
|
Date: November 4, 2013
|
By
|
/s/ Thomas M. O'Brien
|
|
|
Thomas M. O'Brien
Executive Vice President and
Chief Financial Officer
|
·
|
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.
|
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
|
|
of Currency
|
|||||||||||||
Revenues by Product Line
|
Sept. 28, 2013
|
Sept. 29, 2012
|
Increase
(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
|
|
of Currency
|
|||||||||||||
|
Sept. 28, 2013
|
Sept. 29, 2012
|
Increase
(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
|
of Currency
|
||||||||||||||
Sequential Revenues by Product Line
|
Sept. 28, 2013
|
June 29, 2013
|
Increase
(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
|
|
of Currency
|
|||||||||||||
Revenues by Geography (e)
|
Sept. 28, 2013
|
Sept. 29, 2012
|
Increase
(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
|
|
of Currency
|
|||||||||||||
|
Sept. 28, 2013
|
Sept. 29, 2012
|
Increase
(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
|
|
of Currency
|
|||||||||||||
Sequential Revenues by Geography
|
Sept. 28, 2013
|
June 29, 2013
|
Increase
(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
|
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Adjusted Operating Income and Adjusted EBITDA
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."
|
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