Kadant Reports Third Quarter 2024 Results
Kadant Inc. (NYSE: KAI) reported strong Q3 2024 financial results with revenue increasing 11% to $272 million and net income rising 2% to $32 million. The company achieved record adjusted EPS of $2.84, up 6% year-over-year, and record adjusted EBITDA of $63 million representing 23.3% of revenue. Operating cash flow increased 12% to $52 million while bookings grew 15% to $240 million. The company narrowed its full-year 2024 revenue guidance to $1.047-$1.055 billion and raised adjusted EPS guidance to $9.93-$10.13.
Kadant Inc. (NYSE: KAI) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un aumento del 11% dei ricavi, che hanno raggiunto i 272 milioni di dollari, e un incremento del 2% dell'utile netto, salito a 32 milioni di dollari. L'azienda ha ottenuto un record di utili per azione (EPS) rettificati di $2,84, in crescita del 6% rispetto all'anno precedente, e un EBITDA rettificato record di 63 milioni di dollari, che rappresenta il 23,3% dei ricavi. Il flusso di cassa operativo è aumentato del 12% raggiungendo i 52 milioni di dollari, mentre gli ordini sono cresciuti del 15%, arrivando a 240 milioni di dollari. L'azienda ha ristretto le stime sui ricavi per l'intero anno 2024 a 1,047-1,055 miliardi di dollari e ha alzato le previsioni per l'EPS rettificato a 9,93-10,13 dollari.
Kadant Inc. (NYSE: KAI) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un aumento del 11% en los ingresos, alcanzando los 272 millones de dólares, y un incremento del 2% en la ganancia neta, que llegó a 32 millones de dólares. La compañía logró un récord en las ganancias por acción ajustadas (EPS) de $2,84, un 6% más que el año anterior, y un EBITDA ajustado record de 63 millones de dólares, representando el 23,3% de los ingresos. El flujo de efectivo operativo aumentó un 12% hasta los 52 millones de dólares, mientras que los pedidos crecieron un 15% hasta 240 millones de dólares. La compañía ajustó sus proyecciones de ingresos para todo el año 2024 a 1,047-1,055 mil millones de dólares y elevó la orientación de EPS ajustado a 9,93-10,13 dólares.
카단트 주식회사 (NYSE: KAI)는 2024년 3분기 강력한 재무 결과를 보고했습니다. 매출은 11% 증가하여 2억 7200만 달러에 달했고, 순이익은 2% 상승하여 3200만 달러가 되었습니다. 회사는 조정된 주당순이익(EPS)에서 2.84달러로 기록을 세우며, 전년 대비 6% 증가했으며, 조정된 EBITDA는 6300만 달러로 매출의 23.3%를 차지하는 기록적인 수치를 기록했습니다. 운영 현금 흐름은 12% 증가하여 5200만 달러에 이르렀고, 수주량은 15% 증가하여 2억 4000만 달러에 달했습니다. 회사는 2024년 전체 연도 매출 예상치를 조정했습니다 10억 4700만 - 10억 5500만 달러로 하향하고, 조정된 EPS 전망을 9.93-10.13달러로 상향 조정했습니다.
Kadant Inc. (NYSE: KAI) a rapporté de solides résultats financiers pour le troisième trimestre 2024, avec une augmentation de 11 % du chiffre d'affaires, atteignant 272 millions de dollars, et une hausse de 2 % du bénéfice net, qui s'élève à 32 millions de dollars. L'entreprise a atteint un record d'EPS ajusté de 2,84 $, en hausse de 6 % d'une année sur l'autre, et un EBITDA ajusté record de 63 millions de dollars, représentant 23,3 % du chiffre d'affaires. Les flux de trésorerie d'exploitation ont augmenté de 12 % pour atteindre 52 millions de dollars, tandis que les commandes ont crû de 15 % pour atteindre 240 millions de dollars. La société a affiné ses prévisions de revenus pour l'année entière 2024 à 1,047-1,055 milliards de dollars et a relevé ses prévisions d'EPS ajusté à 9,93-10,13 dollars.
Kadant Inc. (NYSE: KAI) hat starke Finanzresultate für das dritte Quartal 2024 berichtet, mit einem Umsatzanstieg von 11% auf 272 Millionen Dollar und einem Anstieg des Nettogewinns um 2% auf 32 Millionen Dollar. Das Unternehmen erzielte einen Rekord bei den bereinigten EPS von 2,84 Dollar, was im Jahresvergleich einem Anstieg von 6% entspricht, sowie ein Rekord-EBITDA von 63 Millionen Dollar, was 23,3% des Umsatzes entspricht. Der operative Cashflow stieg um 12% auf 52 Millionen Dollar, während die Aufträge um 15% auf 240 Millionen Dollar zunahmen. Das Unternehmen hat die Umsatzprognose für das gesamte Jahr 2024 eingegrenzt auf 1,047-1,055 Milliarden Dollar und die Prognose für die bereinigten EPS auf 9,93-10,13 Dollar angehoben.
- Revenue increased 11% to $272 million
- Record adjusted EPS of $2.84, up 6% YoY
- Record adjusted EBITDA margin of 23.3%
- Operating cash flow increased 12% to $52 million
- Free cash flow increased 27% to $48 million
- Bookings increased 15% to $240 million
- Raised full-year adjusted EPS guidance
- Organic revenue decreased 1%
- Organic bookings decreased 2%
- Softer performance in Europe and Asia markets
Insights
Kadant delivered a strong Q3 2024 with notable improvements across key metrics.
The aftermarket parts business performance is particularly encouraging, comprising
While organic revenue declined
WESTFORD, Mass., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the third quarter ended September 28, 2024.
Third Quarter Financial Highlights
- Revenue increased
11% to$272 million - Gross margin was
44.7% - Operating cash flow increased
12% to$52 million - Free cash flow increased
27% to$48 million - Net income increased
2% to$32 million - GAAP EPS increased
2% to$2.68 - Adjusted EPS increased
6% to a record$2.84 - Adjusted EBITDA was a record
$63 million and represented a record23.3% of revenue - Bookings increased
15% to$240 million
Note: Percent changes above are based on comparison to the prior year period. All references to earnings per share (EPS) are to our EPS as calculated on a diluted basis. Free cash flow, adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, and changes in organic revenue are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”
Management Commentary
“We delivered another solid quarter with excellent operational execution leading to outstanding margin performance and record adjusted EPS,” said Jeffrey L. Powell, president and chief executive officer of Kadant Inc. “Recent acquisitions in our three operating segments contributed to our strong bookings performance, with robust new order activity in the Americas offsetting softer performance in Europe and Asia.
“We had record aftermarket parts revenue, which contributed to our record adjusted EBITDA and record adjusted EBITDA margin performance. As one of our core strategic focus areas, it is encouraging to see this growth in our aftermarket parts business in a historically softer quarter. This and other initiatives to optimize our operations continue to enable us to capture greater value for our stakeholders and deliver exceptional results.”
Third Quarter 2024 Compared to 2023
Revenue increased 11 percent to
Net income was
Bookings increased 15 percent to
Summary and Outlook
“Our solid performance the past three quarters has positioned us well to finish the year strong,” Mr. Powell continued. “We expect demand for our capital equipment to gain momentum as our customers prepare for 2025 projects even as the industrial manufacturing sectors in Europe and Asia continue to face significant headwinds. We are narrowing our revenue guidance for the full year to
Conference Call
Kadant will hold a webcast with a slide presentation for investors on Wednesday, October 30, 2024, at 11:00 a.m. eastern time to discuss its third quarter financial performance, as well as future expectations. To listen to the call live and view the webcast, go to the “Investors” section of the Company’s website at www.kadant.com. Participants interested in joining the call’s live question and answer session are required to register by clicking here or selecting the Q&A link on our website to receive a dial-in number and unique PIN. It is recommended that you join the call 10 minutes prior to the start of the event. A replay of the webcast presentation will be available on our website through November 29, 2024.
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. After the webcast, Kadant will post its updated general investor presentation incorporating the third quarter results on its website at www.kadant.com under the “Investors” section.
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 revenue excluding the effect of acquisitions and foreign currency translation (organic revenue), adjusted operating income, adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, and free cash flow.
We use organic revenue to understand our trends and to forecast and evaluate our financial performance and compare revenue to prior periods. Organic revenue excludes revenue from acquisitions for the four quarterly reporting periods following the date of the acquisition and the effect of foreign currency translation. Revenue in the third quarter of 2024 included
We believe 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 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.
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 or cash flows 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.
Third Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax amortization of acquired profit in inventory and backlog of
$1.9 million in 2024. - Pre-tax acquisition costs of
$0.5 million in 2024. - Pre-tax indemnification asset provision of
$0.2 million in 2024 and$0.1 million in 2023. - Pre-tax relocation costs of
$0.5 million in 2023. - Pre-tax restructuring and impairment costs of
$0.4 million in 2023.
Adjusted net income and adjusted EPS exclude:
- After-tax amortization of acquired profit in inventory and backlog of
$1.4 million ($1.9 million net of tax of$0.5 million ) in 2024. - After-tax acquisition costs of
$0.4 million ($0.5 million net of tax of$0.1 million ) in 2024. - After-tax relocation costs of
$0.4 million ($0.5 million net of tax of$0.1 million ) in 2023. - After-tax restructuring and impairment costs of
$0.3 million ($0.4 million net of tax of$0.1 million ) in 2023.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$4.2 million in 2024 and$8.8 million in 2023.
First Nine Months
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:
- Pre-tax amortization of acquired profit in inventory and backlog of
$6.2 million in 2024. - Pre-tax acquisition costs of
$2.5 million in 2024. - Pre-tax indemnification asset provision of
$0.2 million in 2024 and pre-tax indemnification asset reversal of$0.1 million in 2023. - Pre-tax relocation costs of
$0.6 million in 2023. - Pre-tax restructuring and impairment costs of
$0.4 million in 2023.
Adjusted net income and adjusted EPS exclude:
- After-tax amortization of acquired profit in inventory and backlog of
$4.7 million ($6.2 million net of tax of$1.5 million ) in 2024. - After-tax acquisition costs of
$2.1 million ($2.5 million net of tax of$0.4 million ) in 2024. - After-tax relocation costs of
$0.5 million ($0.6 million net of tax of$0.1 million ) in 2023. - After-tax restructuring and impairment costs of
$0.3 million ($0.4 million net of tax of$0.1 million ) in 2023.
Free cash flow is calculated as operating cash flow less:
- Capital expenditures of
$15.4 million in 2024 and$22.1 million in 2023.
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 | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||
| Revenue | $ | 271,614 | $ | 244,182 | $ | 795,354 | $ | 718,993 | ||||||||||
| Costs and Operating Expenses: | ||||||||||||||||||
| Cost of revenue | 150,175 | 138,456 | 441,066 | 404,671 | ||||||||||||||
| Selling, general, and administrative expenses | 69,043 | 57,889 | 209,352 | 176,441 | ||||||||||||||
| Research and development expenses | 3,409 | 3,324 | 10,621 | 10,102 | ||||||||||||||
| Other costs | — | 969 | — | 1,043 | ||||||||||||||
| 222,627 | 200,638 | 661,039 | 592,257 | |||||||||||||||
| Operating Income | 48,987 | 43,544 | 134,315 | 126,736 | ||||||||||||||
| Interest Income | 407 | 438 | 1,386 | 1,053 | ||||||||||||||
| Interest Expense | (5,516 | ) | (2,107 | ) | (15,386 | ) | (6,722 | ) | ||||||||||
| Other Expense, Net | (16 | ) | (20 | ) | (48 | ) | (62 | ) | ||||||||||
| Income Before Provision for Income Taxes | 43,862 | 41,855 | 120,267 | 121,005 | ||||||||||||||
| Provision for Income Taxes | 11,964 | 10,816 | 31,810 | 31,761 | ||||||||||||||
| Net Income | 31,898 | 31,039 | 88,457 | 89,244 | ||||||||||||||
| Net Income Attributable to Noncontrolling Interests | (312 | ) | (175 | ) | (891 | ) | (571 | ) | ||||||||||
| Net Income Attributable to Kadant | $ | 31,586 | $ | 30,864 | $ | 87,566 | $ | 88,673 | ||||||||||
| Earnings per Share Attributable to Kadant: | ||||||||||||||||||
| Basic | $ | 2.69 | $ | 2.64 | $ | 7.46 | $ | 7.58 | ||||||||||
| Diluted | $ | 2.68 | $ | 2.63 | $ | 7.44 | $ | 7.57 | ||||||||||
| Weighted Average Shares: | ||||||||||||||||||
| Basic | 11,745 | 11,706 | 11,737 | 11,697 | ||||||||||||||
| Diluted | 11,780 | 11,740 | 11,763 | 11,719 | ||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | September 28, 2024 | September 28, 2024 | September 30, 2023 | September 30, 2023 | |||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 31,586 | $ | 2.68 | $ | 30,864 | $ | 2.63 | |||||
| Adjustments, Net of Tax: | |||||||||||||
| Acquired Profit in Inventory and Backlog Amortization | 1,432 | 0.12 | — | — | |||||||||
| Acquisition Costs | 398 | 0.03 | — | — | |||||||||
| Relocation Costs | — | — | 401 | 0.03 | |||||||||
| Restructuring and Impairment Costs | — | — | 295 | 0.03 | |||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 33,416 | $ | 2.84 | $ | 31,560 | $ | 2.69 | |||||
| Nine Months Ended | Nine Months Ended | ||||||||||||
| September 28, 2024 | September 28, 2024 | September 30, 2023 | September 30, 2023 | ||||||||||
| Net Income and Diluted EPS Attributable to Kadant, as Reported | $ | 87,566 | $ | 7.44 | $ | 88,673 | $ | 7.57 | |||||
| Adjustments, Net of Tax: | |||||||||||||
| Acquired Profit in Inventory and Backlog Amortization | 4,730 | 0.40 | — | — | |||||||||
| Acquisition Costs | 2,126 | 0.18 | — | — | |||||||||
| Relocation Costs | — | — | 457 | 0.04 | |||||||||
| Restructuring and Impairment Costs | — | — | 295 | 0.03 | |||||||||
| Adjusted Net Income and Adjusted Diluted EPS (a) | $ | 94,422 | $ | 8.03 | $ | 89,425 | $ | 7.63 | |||||
| Three Months Ended | Increase (Decrease) Excluding Acquisitions and FX (a,b) | ||||||||||||||||
| Revenue by Segment | September 28, 2024 | September 30, 2023 | Increase | ||||||||||||||
| Flow Control | $ | 97,521 | $ | 90,798 | $ | 6,723 | $ | 1,721 | |||||||||
| Industrial Processing | 110,696 | 94,220 | 16,476 | 2,077 | |||||||||||||
| Material Handling | 63,397 | 59,164 | 4,233 | (6,001 | ) | ||||||||||||
| $ | 271,614 | $ | 244,182 | $ | 27,432 | $ | (2,203 | ) | |||||||||
| Percentage of Parts and Consumables Revenue | 65 | % | 61 | % | |||||||||||||
| Nine Months Ended | Increase | Increase (Decrease) Excluding Acquisitions and FX (a,b) | |||||||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||||||||
| Flow Control | $ | 276,493 | $ | 276,048 | $ | 445 | $ | (6,053 | ) | ||||||||
| Industrial Processing | 331,310 | 267,729 | 63,581 | 19,309 | |||||||||||||
| Material Handling | 187,551 | 175,216 | 12,335 | (16,787 | ) | ||||||||||||
| $ | 795,354 | $ | 718,993 | $ | 76,361 | $ | (3,531 | ) | |||||||||
| Percentage of Parts and Consumables Revenue | 65 | % | 63 | % | |||||||||||||
| Three Months Ended | Increase | Increase (Decrease) Excluding Acquisitions and FX (b) | |||||||||||||||
| Bookings by Segment | September 28, 2024 | September 30, 2023 | |||||||||||||||
| Flow Control | $ | 88,981 | $ | 83,005 | $ | 5,976 | $ | (3,756 | ) | ||||||||
| Industrial Processing | 89,319 | 70,441 | 18,878 | 5,258 | |||||||||||||
| Material Handling | 62,005 | 56,158 | 5,847 | (5,063 | ) | ||||||||||||
| $ | 240,305 | $ | 209,604 | $ | 30,701 | $ | (3,561 | ) | |||||||||
| Percentage of Parts and Consumables Bookings | 72 | % | 67 | % | |||||||||||||
| Nine Months Ended | Increase | Decrease Excluding Acquisitions and FX (b) | |||||||||||||||
| September 28, 2024 | September 30, 2023 | ||||||||||||||||
| Flow Control | $ | 277,749 | $ | 275,862 | $ | 1,887 | $ | (9,894 | ) | ||||||||
| Industrial Processing | 275,910 | 246,006 | 29,904 | (12,472 | ) | ||||||||||||
| Material Handling | 186,798 | 177,482 | 9,316 | (20,298 | ) | ||||||||||||
| $ | 740,457 | $ | 699,350 | $ | 41,107 | $ | (42,664 | ) | |||||||||
| Percentage of Parts and Consumables Bookings | 71 | % | 65 | % | |||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| Additional Segment Information | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||
| Gross Margin: | ||||||||||||||||||
| Flow Control | 51.8 | % | 52.2 | % | 52.9 | % | 52.3 | % | ||||||||||
| Industrial Processing | 44.0 | % | 39.5 | % | 42.3 | % | 39.8 | % | ||||||||||
| Material Handling | 35.0 | % | 35.7 | % | 36.2 | % | 36.2 | % | ||||||||||
| Consolidated | 44.7 | % | 43.3 | % | 44.5 | % | 43.7 | % | ||||||||||
| Operating Income: | ||||||||||||||||||
| Flow Control | $ | 24,281 | $ | 24,246 | $ | 69,521 | $ | 74,256 | ||||||||||
| Industrial Processing | 25,969 | 19,023 | 70,060 | 51,968 | ||||||||||||||
| Material Handling | 8,793 | 10,345 | 25,522 | 30,006 | ||||||||||||||
| Corporate | (10,056 | ) | (10,070 | ) | (30,788 | ) | (29,494 | ) | ||||||||||
| $ | 48,987 | $ | 43,544 | $ | 134,315 | $ | 126,736 | |||||||||||
| Adjusted Operating Income (a,c): | ||||||||||||||||||
| Flow Control | $ | 25,671 | $ | 24,680 | $ | 72,146 | $ | 74,690 | ||||||||||
| Industrial Processing | 26,539 | 19,558 | 72,776 | 52,577 | ||||||||||||||
| Material Handling | 9,019 | 10,295 | 28,809 | 30,133 | ||||||||||||||
| Corporate | (10,056 | ) | (10,070 | ) | (30,788 | ) | (29,494 | ) | ||||||||||
| $ | 51,173 | $ | 44,463 | $ | 142,943 | $ | 127,906 | |||||||||||
| Capital Expenditures: | ||||||||||||||||||
| Flow Control | $ | 1,894 | $ | 1,195 | $ | 5,729 | $ | 3,889 | ||||||||||
| Industrial Processing | 1,209 | 7,299 | 5,943 | 16,007 | ||||||||||||||
| Material Handling | 1,074 | 350 | 3,737 | 2,170 | ||||||||||||||
| Corporate | 8 | 4 | 21 | 28 | ||||||||||||||
| $ | 4,185 | $ | 8,848 | $ | 15,430 | $ | 22,094 | |||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| Cash Flow and Other Data | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||
| Operating Cash Flow | $ | 52,478 | $ | 46,967 | $ | 103,375 | $ | 106,311 | ||||||||||
| Capital Expenditures | (4,185 | ) | (8,848 | ) | (15,430 | ) | (22,094 | ) | ||||||||||
| Free Cash Flow (a) | $ | 48,293 | $ | 38,119 | $ | 87,945 | $ | 84,217 | ||||||||||
| Depreciation and Amortization Expense | $ | 12,775 | $ | 8,234 | $ | 36,505 | $ | 24,917 | ||||||||||
| Balance Sheet Data | September 28, 2024 | December 30, 2023 | |||||
| Assets | |||||||
| Cash, Cash Equivalents, and Restricted Cash | $ | 89,734 | $ | 106,453 | |||
| Accounts Receivable, net | 154,965 | 133,929 | |||||
| Inventories | 169,252 | 152,677 | |||||
| Contract Assets | 14,534 | 8,366 | |||||
| Property, Plant, and Equipment, net | 174,559 | 140,504 | |||||
| Intangible Assets | 292,211 | 159,286 | |||||
| Goodwill | 493,105 | 392,084 | |||||
| Other Assets | 100,980 | 82,366 | |||||
| $ | 1,489,340 | $ | 1,175,665 | ||||
| Liabilities and Stockholders' Equity | |||||||
| Accounts Payable | $ | 50,536 | $ | 42,104 | |||
| Debt Obligations | 324,501 | 109,086 | |||||
| Other Borrowings | 1,931 | 1,789 | |||||
| Other Liabilities | 249,586 | 246,446 | |||||
| Total Liabilities | 626,554 | 399,425 | |||||
| Stockholders' Equity | 862,786 | 776,240 | |||||
| $ | 1,489,340 | $ | 1,175,665 | ||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| Adjusted Operating Income and Adjusted EBITDA Reconciliation (a) | September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||||
| Consolidated | ||||||||||||||||||
| Net Income Attributable to Kadant | $ | 31,586 | $ | 30,864 | $ | 87,566 | $ | 88,673 | ||||||||||
| Net Income Attributable to Noncontrolling Interests | 312 | 175 | 891 | 571 | ||||||||||||||
| Provision for Income Taxes | 11,964 | 10,816 | 31,810 | 31,761 | ||||||||||||||
| Interest Expense, Net | 5,109 | 1,669 | 14,000 | 5,669 | ||||||||||||||
| Other Expense, Net | 16 | 20 | 48 | 62 | ||||||||||||||
| Operating Income | 48,987 | 43,544 | 134,315 | 126,736 | ||||||||||||||
| Acquired Profit in Inventory Amortization (d) | 1,205 | — | 4,065 | — | ||||||||||||||
| Acquired Backlog Amortization (e) | 687 | — | 2,181 | — | ||||||||||||||
| Acquisition Costs | 469 | — | 2,533 | — | ||||||||||||||
| Indemnification Asset (Provision) Reversal, Net (f) | (175 | ) | (50 | ) | (151 | ) | 127 | |||||||||||
| Relocation Costs | — | 535 | — | 609 | ||||||||||||||
| Restructuring and Impairment Costs | — | 434 | — | 434 | ||||||||||||||
| Adjusted Operating Income (a) | 51,173 | 44,463 | 142,943 | 127,906 | ||||||||||||||
| Depreciation and Amortization | 12,088 | 8,234 | 34,324 | 24,917 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 63,261 | $ | 52,697 | $ | 177,267 | $ | 152,823 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 23.3 | % | 21.6 | % | 22.3 | % | 21.3 | % | ||||||||||
| Flow Control | ||||||||||||||||||
| Operating Income | $ | 24,281 | $ | 24,246 | $ | 69,521 | $ | 74,256 | ||||||||||
| Acquired Profit in Inventory Amortization (d) | 728 | — | 963 | — | ||||||||||||||
| Acquired Backlog Amortization (e) | 629 | — | 882 | — | ||||||||||||||
| Acquisition Costs | 71 | — | 637 | — | ||||||||||||||
| Indemnification Asset (Provision) Reversal, Net (f) | (38 | ) | — | 143 | — | |||||||||||||
| Restructuring and Impairment Costs | — | 434 | — | 434 | ||||||||||||||
| Adjusted Operating Income (a) | 25,671 | 24,680 | 72,146 | 74,690 | ||||||||||||||
| Depreciation and Amortization | 2,981 | 2,277 | 7,561 | 6,785 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 28,652 | $ | 26,957 | $ | 79,707 | $ | 81,475 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 29.4 | % | 29.7 | % | 28.8 | % | 29.5 | % | ||||||||||
| Industrial Processing | ||||||||||||||||||
| Operating Income | $ | 25,969 | $ | 19,023 | $ | 70,060 | $ | 51,968 | ||||||||||
| Acquired Profit in Inventory Amortization (d) | 477 | — | 2,062 | — | ||||||||||||||
| Acquisition Costs | 154 | — | 842 | — | ||||||||||||||
| Indemnification Asset Provision (f) | (61 | ) | — | (188 | ) | — | ||||||||||||
| Relocation Costs | — | 535 | — | 609 | ||||||||||||||
| Adjusted Operating Income (a) | 26,539 | 19,558 | 72,776 | 52,577 | ||||||||||||||
| Depreciation and Amortization | 5,204 | 2,906 | 15,458 | 8,823 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 31,743 | $ | 22,464 | $ | 88,234 | $ | 61,400 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 28.7 | % | 23.8 | % | 26.6 | % | 22.9 | % | ||||||||||
| Material Handling | ||||||||||||||||||
| Operating Income | $ | 8,793 | $ | 10,345 | $ | 25,522 | $ | 30,006 | ||||||||||
| Acquired Profit in Inventory Amortization (d) | — | — | 1,040 | — | ||||||||||||||
| Acquired Backlog Amortization (e) | 58 | — | 1,299 | — | ||||||||||||||
| Acquisition Costs | 244 | — | 1,054 | — | ||||||||||||||
| Indemnification Asset (Provision) Reversal, Net (f) | (76 | ) | (50 | ) | (106 | ) | 127 | |||||||||||
| Adjusted Operating Income (a) | 9,019 | 10,295 | 28,809 | 30,133 | ||||||||||||||
| Depreciation and Amortization | 3,891 | 3,034 | 11,269 | 9,254 | ||||||||||||||
| Adjusted EBITDA (a) | $ | 12,910 | $ | 13,329 | $ | 40,078 | $ | 39,387 | ||||||||||
| Adjusted EBITDA Margin (a,g) | 20.4 | % | 22.5 | % | 21.4 | % | 22.5 | % | ||||||||||
| Corporate | ||||||||||||||||||
| Operating Loss | $ | (10,056 | ) | $ | (10,070 | ) | $ | (30,788 | ) | $ | (29,494 | ) | ||||||
| Depreciation and Amortization | 12 | 17 | 36 | 55 | ||||||||||||||
| EBITDA (a) | $ | (10,044 | ) | $ | (10,053 | ) | $ | (30,752 | ) | $ | (29,439 | ) | ||||||
| (a) | Represents a non-GAAP financial measure. | |||||||||||||||||
| (b) | Represents the increase (decrease) resulting from the exclusion of acquisitions and 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) | See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation." | |||||||||||||||||
| (d) | Represents amortization expense within cost of revenue associated with acquired profit in inventory. | |||||||||||||||||
| (e) | Represents intangible amortization expense associated with acquired backlog. | |||||||||||||||||
| (f) | Represents the provision for or reversal of indemnification assets related to the establishment or release of tax reserves associated with uncertain tax positions. | |||||||||||||||||
| (g) | Calculated as adjusted EBITDA divided by revenue in each period. | |||||||||||||||||
About Kadant
Kadant Inc. is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing®. The Company’s products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries. Kadant is based in Westford, Massachusetts, with approximately 3,500 employees in 20 countries worldwide. For more information, visit www.kadant.com.
Safe Harbor Statement
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 future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to 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 Annual Report on Form 10-K for the fiscal year ended December 30, 2023 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our acquisition strategy; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; development and use of digital media; cyclical economic conditions affecting the global mining industry; demand for coal, including economic and environmental risks associated with coal; failure of our information systems or breaches of data security and cybertheft; implementation of our internal growth strategy; supply chain constraints, inflationary pressure, price increases and shortages in raw materials; competition; changes to tax laws and regulations; our ability to successfully manage our manufacturing operations; disruption in production; future restructurings; loss of key personnel and effective succession planning; protection of intellectual property; climate change; adequacy of our insurance coverage; global operations; policies of the Chinese government; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; changes to government regulations and policies around the world; compliance with government regulations and policies and compliance with laws; environmental laws and regulations; environmental, health and safety laws and regulations impacting the mining industry; our debt obligations; restrictions in our credit agreement and note purchase agreement; soundness of financial institutions; fluctuations in our share price; and anti-takeover provisions.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
IR@kadant.com
Media Contact Information:
Wes Martz, 269-278-1715
media@kadant.com
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