EX-99.2 3 kaiform8kexhibit992104.htm KAI FORM 8-K EXHIBIT 99.2 SEGMENTS FINANCIALS Exhibit
Exhibit 99.2
Kadant Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited Selected Financial Data
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
Ended
 
Three Months Ended
 
Ended
 
Three Months Ended
 
Ended
 
 
Dec. 28, 2019
 
Dec. 28, 2019
 
Sept. 28, 2019
 
June 29, 2019
 
March 30, 2019
 
Dec. 29, 2018
 
Dec. 29, 2018
 
Sept. 29, 2018
 
June 30, 2018
 
March 31, 2018
 
Dec. 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
$
250,339

 
$
61,547

 
$
62,375

 
$
65,273

 
$
61,144

 
$
247,966

 
$
61,997

 
$
63,787

 
$
62,074

 
$
60,108

 
$
213,767

 
Industrial Processing
 
301,948

 
79,049

 
74,229

 
76,396

 
72,274

 
314,229

 
85,519

 
85,217

 
72,352

 
71,141

 
232,133

 
Material Handling
 
152,357

 
42,063

 
36,900

 
35,496

 
37,898

 
71,591

 
16,419

 
16,741

 
20,487

 
17,944

 
69,133

 
 
 
$
704,644

 
$
182,659

 
$
173,504

 
$
177,165

 
$
171,316

 
$
633,786

 
$
163,935

 
$
165,745

 
$
154,913

 
$
149,193

 
$
515,033

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bookings by Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
$
241,220

 
$
56,974

 
$
58,817

 
$
60,694

 
$
64,735

 
$
257,771

 
$
63,805

 
$
57,459

 
$
68,406

 
$
68,101

 
$
223,510

 
Industrial Processing
 
290,881

 
61,874

 
74,928

 
75,008

 
79,071

 
341,034

 
66,836

 
92,191

 
89,275

 
92,732

 
226,535

 
Material Handling
 
156,184

 
40,935

 
37,185

 
38,258

 
39,806

 
71,622

 
16,446

 
15,350

 
18,739

 
21,087

 
71,136

 
 
 
 
$
688,285

 
$
159,783

 
$
170,930

 
$
173,960

 
$
183,612

 
$
670,427

 
$
147,087

 
$
165,000

 
$
176,420

 
$
181,920

 
$
521,181

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
51.4
%
 
50.5
%
 
52.9
%
 
51.0
%
 
51.2
%
 
50.8
%
 
48.9
%
 
50.2
%
 
51.9
%
 
52.2
%
 
52.2
%
 
Industrial Processing
 
38.3
%
 
36.2
%
 
38.7
%
 
39.4
%
 
38.9
%
 
40.1
%
 
40.2
%
 
41.3
%
 
39.6
%
 
39.0
%
 
40.2
%
 
Material Handling
 
32.5
%
 
35.6
%
 
34.0
%
 
30.9
%
 
29.3
%
 
36.8
%
 
37.7
%
 
35.3
%
 
35.7
%
 
38.6
%
 
38.2
%
 
 
 
 
41.7
%
 
40.9
%
 
42.8
%
 
42.0
%
 
41.2
%
 
43.9
%
 
43.3
%
 
44.1
%
 
44.0
%
 
44.3
%
 
44.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
$
55,343

 
$
12,123

 
$
15,103

 
$
15,133

 
$
12,984

 
$
52,928

 
$
12,258

 
$
14,542

 
$
13,773

 
$
12,355

 
$
44,366

 
Industrial Processing
 
49,599

 
10,769

 
13,107

 
13,869

 
11,854

 
57,355

 
18,532

 
18,601

 
11,027

 
9,195

 
33,300

 
Material Handling
 
11,600

 
6,085

 
3,525

 
1,259

 
731

 
8,077

 
2,022

 
1,563

 
2,333

 
2,159

 
9,238

 
Corporate
 
(28,719
)
 
(7,424
)
 
(7,182
)
 
(7,119
)
 
(6,994
)
 
(29,762
)
 
(7,988
)
 
(7,331
)
 
(7,398
)
 
(7,045
)
 
(25,279
)
 
 
 
 
$
87,823

 
$
21,553

 
$
24,553

 
$
23,142

 
$
18,575

 
$
88,598

 
$
24,824

 
$
27,375

 
$
19,735

 
$
16,664

 
$
61,625

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Operating Income (a, f)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
$
55,343

 
$
12,123

 
$
15,103

 
$
15,133

 
$
12,984

 
$
52,928

 
$
12,258

 
$
14,542

 
$
13,773

 
$
12,355

 
$
45,264

 
Industrial Processing
 
52,127

 
13,297

 
13,107

 
13,869

 
11,854

 
59,324

 
18,532

 
18,979

 
11,596

 
10,217

 
44,666

 
Material Handling
 
17,315

 
6,105

 
3,546

 
2,782

 
4,882

 
8,077

 
2,022

 
1,563

 
2,333

 
2,159

 
9,127

 
Corporate
 
(28,719
)
 
(7,424
)
 
(7,182
)
 
(7,119
)
 
(6,994
)
 
(28,441
)
 
(6,667
)
 
(7,331
)
 
(7,398
)
 
(7,045
)
 
(25,279
)
 
 
 
 
$
96,066

 
$
24,101

 
$
24,574

 
$
24,665

 
$
22,726

 
$
91,888

 
$
26,145

 
$
27,753

 
$
20,304

 
$
17,686

 
$
73,778

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
$
2,639

 
$
825

 
$
636

 
$
707

 
$
471

 
$
2,791

 
$
920

 
$
948

 
$
546

 
$
377

 
$
2,300

 
Industrial Processing
 
5,113

 
1,890

 
1,053

 
807

 
1,363

 
12,288

 
2,270

 
1,303

 
4,226

 
4,489

 
13,833

 
Material Handling
 
2,144

 
999

 
397

 
415

 
333

 
1,312

 
479

 
268

 
288

 
277

 
1,004

 
Corporate
 
61

 
7

 
7

 
46

 
1

 
168

 
73

 
87

 
—

 
8

 
144

 
 
 
 
$
9,957

 
$
3,721

 
$
2,093

 
$
1,975

 
$
2,168

 
$
16,559

 
$
3,742

 
$
2,606

 
$
5,060

 
$
5,151

 
$
17,281

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
Twelve Months
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
Ended
 
Three Months Ended
 
Ended
 
Three Months Ended
 
Ended
Adjusted Operating Income and Adjusted EBITDA Reconciliation
 
Dec. 28, 2019
 
Dec. 28, 2019
 
Sept. 28, 2019
 
June 29, 2019
 
March 30, 2019
 
Dec. 29, 2018
 
Dec. 29, 2018
 
Sept. 29, 2018
 
June 30, 2018
 
March 31, 2018
 
Dec. 30, 2017
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income Attributable to Kadant
 
$
52,068

 
$
8,749

 
$
16,115

 
$
16,304

 
$
10,900

 
$
60,413

 
$
18,422

 
$
18,784

 
$
12,349

 
$
10,858

 
$
31,092

 
Net Income Attributable to Noncontrolling Interest
 
496

 
136

 
98

 
97

 
165

 
633

 
146

 
195

 
142

 
150

 
491

 
Provision for Income Taxes
 
16,358

 
4,048

 
5,219

 
3,128

 
3,963

 
18,482

 
2,907

 
6,443

 
5,271

 
3,861

 
26,070

 
Interest Expense, Net
 
12,542

 
2,557

 
3,023

 
3,514

 
3,448

 
6,653

 
1,668

 
1,708

 
1,728

 
1,549

 
3,100

 
Other Expense, Net (b)
 
6,359

 
6,063

 
98

 
99

 
99

 
2,417

 
1,681

 
245

 
245

 
246

 
872

 
Operating Income
 
87,823

 
21,553

 
24,553

 
23,142

 
18,575

 
88,598

 
24,824

 
27,375

 
19,735

 
16,664

 
61,625

 
Impairment and Restructuring Costs (c)
 
2,528

 
2,528

 
—

 
—

 
—

 
1,717

 
—

 
378

 
569

 
770

 
203

 
Acquisition Costs
 
843

 
—

 
—

 
—

 
843

 
1,321

 
1,321

 
—

 
—

 
—

 
5,375

 
Acquired Backlog Amortization (d)
 
1,323

 
20

 
21

 
284

 
998

 
252

 
—

 
—

 
—

 
252

 
1,438

 
Acquired Profit in Inventory (e)
 
3,549

 
—

 
—

 
1,239

 
2,310

 
—

 
—

 
—

 
—

 
—

 
5,137

 
Adjusted Operating Income (f)
 
96,066

 
24,101

 
24,574

 
24,665

 
22,726

 
91,888

 
26,145

 
27,753

 
20,304

 
17,686

 
73,778

 
Depreciation and Amortization
 
31,067

 
8,066

 
7,742

 
8,026

 
7,233

 
23,316

 
5,829

 
5,796

 
5,844

 
5,847

 
17,937

 
Adjusted EBITDA (f)
 
$
127,133

 
$
32,167

 
$
32,316

 
$
32,691

 
$
29,959

 
$
115,204

 
$
31,974

 
$
33,549

 
$
26,148

 
$
23,533

 
$
91,715

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA Margin (f,g)
 
18.0
%
 
17.6
%
 
18.6
%
 
18.5
%
 
17.5
%
 
18.2
%
 
19.5
%
 
20.2
%
 
16.9
%
 
15.8
%
 
17.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flow Control
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
 
$
55,343

 
$
12,123

 
$
15,103

 
$
15,133

 
$
12,984

 
$
52,928

 
$
12,258

 
$
14,542

 
$
13,773

 
$
12,355

 
$
44,366

 
Acquisition Costs
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
722

 
Acquired Profit in Inventory (e)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
176

 
Adjusted Operating Income (f)
 
55,343

 
12,123

 
15,103

 
15,133

 
12,984

 
52,928

 
12,258

 
14,542

 
13,773

 
12,355

 
45,264

 
Depreciation and Amortization
 
6,603

 
1,780

 
1,629

 
1,608

 
1,586

 
5,971

 
1,492

 
1,488

 
1,486

 
1,505

 
4,954

 
Adjusted EBITDA (f)
 
$
61,946

 
$
13,903

 
$
16,732

 
$
16,741

 
$
14,570

 
$
58,899

 
$
13,750

 
$
16,030

 
$
15,259

 
$
13,860

 
$
50,218

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA Margin (f,g)
 
24.7
%
 
22.6
%
 
26.8
%
 
25.6
%
 
23.8
%
 
23.8
%
 
22.2
%
 
25.1
%
 
24.6
%
 
23.1
%
 
23.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Industrial Processing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
 
$
49,599

 
$
10,769

 
$
13,107

 
$
13,869

 
$
11,854

 
$
57,355

 
$
18,532

 
$
18,601

 
$
11,027

 
$
9,195

 
$
33,300

 
Impairment and Restructuring Costs (c)
 
2,528

 
2,528

 
—

 
—

 
—

 
1,717

 
—

 
378

 
569

 
770

 
203

 
Acquisition Costs
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,764

 
Acquired Backlog Amortization (d)
 
—

 
—

 
—

 
—

 
—

 
252

 
—

 
—

 
—

 
252

 
1,438

 
Acquired Profit in Inventory (e)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,961

 
Adjusted Operating Income (f)
 
52,127

 
13,297

 
13,107

 
13,869

 
11,854

 
59,324

 
18,532

 
18,979

 
11,596

 
10,217

 
44,666

 
Depreciation and Amortization
 
13,012

 
3,281

 
3,249

 
3,238

 
3,244

 
13,408

 
3,352

 
3,351

 
3,375

 
3,330

 
9,072

 
Adjusted EBITDA (f)
 
$
65,139

 
$
16,578

 
$
16,356

 
$
17,107

 
$
15,098

 
$
72,732

 
$
21,884

 
$
22,330

 
$
14,971

 
$
13,547

 
$
53,738

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA Margin (f,g)
 
21.6
%
 
21.0
%
 
22.0
%
 
22.4
%
 
20.9
%
 
23.1
%
 
25.6
%
 
26.2
%
 
20.7
%
 
19.0
%
 
23.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Material Handling
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income 
 
$
11,600

 
$
6,085

 
$
3,525

 
$
1,259

 
$
731

 
$
8,077

 
$
2,022

 
$
1,563

 
$
2,333

 
$
2,159

 
$
9,238

 
Acquisition Costs
 
843

 
—

 
—

 
—

 
843

 
—

 
—

 
—

 
—

 
—

 
(111
)
 
Acquired Backlog Amortization (d)
 
1,323

 
20

 
21

 
284

 
998

 
—

 
—

 
—

 
—

 
—

 
—

 
Acquired Profit in Inventory (i)
 
3,549

 
—

 
—

 
1,239

 
2,310

 
—

 
—

 
—

 
—

 
—

 
—

 
Adjusted Operating Income (f)
 
17,315

 
6,105

 
3,546

 
2,782

 
4,882

 
8,077

 
2,022

 
1,563

 
2,333

 
2,159

 
9,127

 
Depreciation and Amortization
 
11,205

 
2,946

 
2,801

 
3,115

 
2,343

 
3,756

 
939

 
911

 
938

 
968

 
3,762

 
Adjusted EBITDA (f)
 
$
28,520

 
$
9,051

 
$
6,347

 
$
5,897

 
$
7,225

 
$
11,833

 
$
2,961

 
$
2,474

 
$
3,271

 
$
3,127

 
$
12,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA Margin (f,g)
 
18.7
%
 
21.5
%
 
17.2
%
 
16.6
%
 
19.1
%
 
16.5
%
 
18.0
%
 
14.8
%
 
16.0
%
 
17.4
%
 
18.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
Twelve Months
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
 
 
 
 
 
Twelve Months
 
 
 
 
Ended
 
Three Months Ended
 
Ended
 
Three Months Ended
 
Ended
Adjusted Operating Income and Adjusted EBITDA Reconciliation (continued)
 
Dec. 28, 2019
 
Dec. 28, 2019
 
Sept. 28, 2019
 
June 29, 2019
 
March 30, 2019
 
Dec. 29, 2018
 
Dec. 29, 2018
 
Sept. 29, 2018
 
June 30, 2018
 
March 31, 2018
 
Dec. 30, 2017
Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Loss
 
 
$
(28,719
)
 
$
(7,424
)
 
$
(7,182
)
 
$
(7,119
)
 
$
(6,994
)
 
$
(29,762
)
 
$
(7,988
)
 
$
(7,331
)
 
$
(7,398
)
 
$
(7,045
)
 
$
(25,279
)
 
Acquisition Costs
 
—

 
—

 
—

 
—

 
—

 
1,321

 
1,321

 
—

 
—

 
—

 
—

 
Adjusted Operating Loss (f)
 
(28,719
)
 
(7,424
)
 
(7,182
)
 
(7,119
)
 
(6,994
)
 
(28,441
)
 
(6,667
)
 
(7,331
)
 
(7,398
)
 
(7,045
)
 
(25,279
)
 
Depreciation and Amortization
 
247

 
59

 
63

 
65

 
60

 
181

 
46

 
46

 
45

 
44

 
149

 
Adjusted EBITDA (f)
 
$
(28,472
)
 
$
(7,365
)
 
$
(7,119
)
 
$
(7,054
)
 
$
(6,934
)
 
$
(28,260
)
 
$
(6,621
)
 
$
(7,285
)
 
$
(7,353
)
 
$
(7,001
)
 
$
(25,130
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) 
See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation."
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(b)
Includes a settlement loss of $5,887 ($6,352 after tax) in the fourth quarter of 2019 and a curtailment loss of $1,425 ($1,078 after tax) in the fourth quarter of 2018 associated with the termination of defined benefit plans at one of our U.S. operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(c)
Represents an intangible asset impairment charge of $2,336 ($1,765 after tax) and a restructuring charge of $192 ($140 after tax) in the fourth quarter of 2019 related to our Industrial Processing segment's timber-harvesting product line and restructuring charges of $1,717 ($1,308 after tax) in 2018 and $203 ($154 after tax) in 2017 related to our Industrial Processing segment's stock-preparation product line.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(d)
Represents intangible amortization expense associated with acquired backlog.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(e)
Represents expense within cost of revenues associated with amortization of acquired profit in inventory.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(f)
Represents a non-GAAP financial measure.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(g)
Calculated as adjusted EBITDA divided by revenue in each period.