UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
______________________________________________________________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
report (Date of earliest event reported): February 24, 2010
KADANT
INC.
(Exact
Name of Registrant as Specified in its Charter)
|
Delaware
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1-11406
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52-1762325
|
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(State
or Other Jurisdiction
|
(Commission
File Number)
|
(IRS
Employer
|
|
of
Incorporation)
|
Identification
No.)
|
|
One
Technology Park Drive
|
||
|
Westford,
Massachusetts
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01886
|
|
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(Address
of Principal Executive Offices)
|
(Zip
Code)
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(978)
776-2000
Registrant's
telephone number, including area code
Not
Applicable
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
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))
|
KADANT
INC.
Item
2.02 Results of Operations and Financial
Condition.
On
February 24, 2010, Kadant Inc. (the “Company”) announced its financial results
for the fiscal quarter and year ended January 2, 2010. The full text of the
press release issued in connection with the announcement is furnished as Exhibit
99 to this Current Report on Form 8-K.
The
information in this Form 8-K (including Exhibit 99) shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange
Act”) or otherwise subject to the liabilities of that section, nor shall it be
deemed incorporated by reference in any filing under the Securities Act of 1933
or the Exchange Act, except as expressly set forth by specific reference in such
a filing.
Item
9.01 Financial Statements and Exhibits.
|
(c)
Exhibit
|
||
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The
following exhibit relating to Item 2.02 shall be deemed to be furnished
and not filed.
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||
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Exhibit
No
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Description of Exhibit
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|
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99
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Press
Release issued by the Company on February 24, 2010
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|
2
KADANT
INC.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
KADANT
INC.
|
||
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Date: February
24, 2010
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By
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/s/ Thomas M. O’Brien
|
|
Thomas
M. O’Brien
Executive
Vice President and
Chief
Financial Officer
|
3
Exhibit
99
NEWS
[LOGO]
60;
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 2009 Fourth Quarter and Full-Year Results
and
Provides Financial Guidance for 2010
WESTFORD,
Mass., February 24, 2010 – Kadant Inc. (NYSE:KAI) reported revenues from
continuing operations of $56.8 million in the fourth quarter of 2009, a decrease
of $10.4 million, or 15 percent, compared with $67.2 million in the fourth
quarter of 2008. Revenues for the fourth quarter of 2009 included a $2.6
million, or 4 percent, increase from foreign currency translation. Operating
loss from continuing operations was $0.3 million in the fourth quarter of 2009,
including a $2.1 million pre-tax restructuring charge primarily related to the
Company’s Kadant Lamort subsidiary. Operating loss from continuing operations
was $39.7 million in the fourth quarter of 2008, which included a $40.3 million
pre-tax goodwill impairment charge and a $3.1 million pre-tax restructuring
charge. Net loss was $1.7 million in the fourth quarter of 2009, or $.14 per
diluted share, compared to a net loss of $41.4 million, or $3.25 per diluted
share, in the fourth quarter of 2008. Net loss in the fourth quarter of 2009
included a $1.4 million charge related to discrete tax items and a $1.4 million
after-tax restructuring charge. Net loss in the fourth quarter of 2008 included
a $26.7 million after-tax goodwill impairment charge, a $15.4 million charge
related to discrete tax items, and a $2.3 million after-tax restructuring
charge. Adjusted net income, a non-GAAP measure, in the fourth quarter of 2009
was $1.1 million, or $.09 per diluted share, compared to $3.0 million, or $.24
per diluted share, in the fourth quarter of 2008.
|
Three
Months Ended
Jan. 2, 2010
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Three
Months Ended
Jan. 3, 2009
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|||||||||||||||
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Adjusted
Net Income and Adjusted Diluted Earnings per Share (EPS) Reconciliation
(non-GAAP)
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($ in millions)
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Diluted EPS
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($ in millions)
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Diluted EPS
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||||||||||||
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Net
Loss and Diluted EPS Attributable to Kadant, as reported
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$ | (1.7 | ) | $ | (.14 | ) | $ | (41.4 | ) | $ | (3.25 | ) | ||||
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Adjustments
for the following:
|
||||||||||||||||
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Goodwill
impairment charge, net of tax
|
- | - | 26.7 | 2.10 | ||||||||||||
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Incremental
tax provision
|
1.4 | .11 | 15.4 | 1.21 | ||||||||||||
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Restructuring
costs, net of tax
|
1.4 | .12 | 2.3 | .18 | ||||||||||||
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Adjusted
Net Income and Adjusted Diluted EPS
|
$ | 1.1 | $ | .09 | $ | 3.0 | $ | .24 | ||||||||
For
full-year 2009, Kadant reported revenues from continuing operations of $225.6
million, a decrease of $103.6 million, or 31 percent, compared with $329.2
million in 2008. Revenues for 2009 included a $10.9 million, or 3 percent,
decrease from foreign currency translation. Operating loss from continuing
operations was $0.5 million in 2009, including a $4.4 million pre-tax
restructuring charge, compared to an operating loss of $13.0 million in 2008,
which included a $40.3 million pre-tax goodwill impairment charge and a $2.0
million pre-tax restructuring charge. Net loss was $5.9 million in 2009, or $.48
per diluted share, compared to a net loss of $22.6 million, or $1.67 per diluted
share, in 2008. Adjusted net income, a non-GAAP measure, for 2009 was $1.6
million, or $.13 per diluted share, compared to $21.1 million, or $1.56 per
diluted share, in 2008.
|
Twelve
Months Ended
Jan. 2, 2010
|
Twelve
Months Ended
Jan. 3, 2009
|
|||||||||||||||
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Adjusted
Net Income and Adjusted Diluted EPS Reconciliation
(non-GAAP)
|
($ in millions)
|
Diluted EPS
|
($ in millions)
|
Diluted EPS
|
||||||||||||
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Net
Loss and Diluted EPS Attributable to Kadant, as reported
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$ | (5.9 | ) | $ | (.48 | ) | $ | (22.6 | ) | $ | (1.67 | ) | ||||
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Adjustments
for the following:
|
||||||||||||||||
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Goodwill
impairment charge, net of tax
|
- | - | 26.7 | 1.98 | ||||||||||||
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Incremental
tax provision
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4.6 | .37 | 15.4 | 1.14 | ||||||||||||
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Restructuring
costs and other income, net of tax
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2.9 | .24 | 1.6 | .11 | ||||||||||||
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Adjusted
Net Income and Adjusted Diluted EPS
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$ | 1.6 | $ | .13 | $ | 21.1 | $ | 1.56 | ||||||||
-more-
“Despite
a challenging environment, we were at the top end of our fourth quarter revenue
guidance and exceeded our fourth quarter adjusted EPS guidance to finish 2009 on
a positive note,” said Jonathan W. Painter, president and chief executive
officer of Kadant. “We were also encouraged to see another sequential increase
in our quarterly bookings and revenues. The sequential revenue increase was led
by our fluid-handling and water management product lines, which increased 10
percent and 23 percent, respectively. Also, gross margins were a solid 41
percent in the fourth quarter of 2009 and cash flows from continuing operations
reached $11 million, contributing to a record $43 million in cash flows for
2009.
“Since
the beginning of the economic downturn, we have taken several important steps to
improve our financial position and increase our operating leverage going
forward, including reducing our global workforce by approximately 400 employees.
In addition, we reduced selling, general, and administrative expenses by $19
million in 2009 compared to 2008. The strong cash flows allowed us to pay down
our debt obligations by $32 million in 2009 and end the year with a net cash
(cash less debt) position of $22 million. Also, during the fourth quarter of
2009, we incurred a pre-tax restructuring charge of $2.1 million largely in
connection with a restructuring plan initiated by our Kadant Lamort subsidiary.
This restructuring process is ongoing and is expected to result in a workforce
reduction of approximately 40 employees in Europe and yield annualized savings
of approximately $2.6 million once completed.
“The
sequential increase in our revenues during the past two quarters suggests that a
modest recovery may be underway. However, continued uncertainty regarding the
strength and sustainability of a recovery leads us to maintain a cautious
outlook for the coming year. As a result, we expect to report GAAP diluted EPS
of $.06 to $.08 from continuing operations in the first quarter of 2010,
including $.01 of restructuring costs, on revenues of $56 to $58 million. For
the full year, we expect to achieve GAAP diluted EPS of $.45 to $.55 from
continuing operations, including $.02 of estimated restructuring costs, on
revenues of $240 to $250 million.”
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 adjusted net income, adjusted diluted EPS, increases or
decreases in revenues excluding the effect of foreign currency translation,
adjusted operating income, earnings before interest, taxes, depreciation, and
amortization (EBITDA), and adjusted EBITDA.
We present increases or decreases in
revenues excluding the effect of foreign currency translation to provide
investors insight into underlying revenue trends. In addition, we exclude from
certain financial measures goodwill impairment charges, restructuring costs,
discrete tax items, and gains on the sale of assets to give investors additional
insight into our quarterly and annual operating performance, especially when
compared to quarters in which such items had greater or lesser effect, or no
effect. In addition, these items are excluded as they are either isolated or
cannot be expected to occur again with any regularity or predictability and we
believe are not indicative of our normal operating results.
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 a better 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.
-more-
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.
Adjusted
Diluted EPS in the three- and twelve-month periods ended January 2, 2010 and
January 3, 2009 was calculated using the reported weighted average diluted
shares for each period. Adjusted Diluted EPS for the twelve-month period ended
January 3, 2009 has been restated from the 2008 disclosure to also exclude other
income of $.06 from after-tax gains on sales of assets, net of restructuring
costs.
Adjusted
operating income and adjusted EBITDA exclude:
|
·
|
a
goodwill impairment charge of $40.3 million in the fourth quarter of
2008.
|
|
·
|
net
costs associated with a restructuring charge of $2.1 million and $3.1
million in the fourth quarters of 2009 and 2008, respectively, and $4.4
million and $2.0 million in 2009 and 2008, respectively. The net
restructuring charge of $2.0 million in 2008, consisted of restructuring
costs of $3.7 million, net of gains on the sale of assets of $1.7
million.
|
Adjusted
net income and adjusted diluted EPS also exclude:
|
·
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a
goodwill impairment charge of $26.7 million, net of tax of $13.6 million,
in the fourth quarter and full year 2008. The tax effect was calculated
based on the effective tax rates of the subsidiaries which incurred the
goodwill impairment charge.
|
|
·
|
a
restructuring charge of $1.4 million, net of tax of $0.7 million, and $2.3
million, net of tax of $0.8 million, in the fourth quarters of 2009 and
2008, respectively, and a net restructuring charge of $2.9 million, net of
tax of $1.5 million, and $1.6 million, net of tax of $0.4 million, in 2009
and 2008, respectively. The tax effects were calculated based on the
effective tax rates of the subsidiaries which incurred the restructuring
charges.
|
|
·
|
incremental
tax provision of $1.4 million, or $.11 per diluted share, and $15.4
million, or $1.21 per diluted share, in the fourth quarter of 2009 and
2008, respectively, and incremental tax provision of $4.6 million, or $.37
per diluted share, and $15.4 million, or $1.14 per diluted share, in 2009
and 2008, respectively. These incremental tax provisions are primarily due
to valuation allowances established for certain foreign and U.S. deferred
tax assets.
|
Reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial measures are
set forth in this press release and in the accompanying tables.
Conference
Call
Kadant
will hold its earnings conference call on Thursday, February 25, 2010, at 11
a.m. Eastern time. To listen, call 800-709-2159 within the U.S., or 973-582-2810
outside the U.S. You can also listen to the conference call live on the Web by
visiting www.kadant.com and clicking on “Investors.” An audio archive of the
call will be available on our Web site until March 26, 2010.
-more-
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Financial
Highlights (unaudited)
|
||||||||||||||||
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(In
thousands, except per share amounts and percentages)
|
||||||||||||||||
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Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
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Consolidated
Statement of Operations (a)
|
Jan.
2, 2010
|
Jan.
3, 2009
|
Jan.
2, 2010
|
Jan.
3, 2009
|
||||||||||||
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Revenues
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$ | 56,760 | $ | 67,154 | $ | 225,565 | $ | 329,158 | ||||||||
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Costs
and Operating Expenses:
|
||||||||||||||||
|
Cost
of revenues
|
33,318 | 38,241 | 134,759 | 193,355 | ||||||||||||
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Selling,
general, and administrative expenses
|
20,219 | 23,576 | 81,229 | 100,280 | ||||||||||||
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Research
and development expenses
|
1,371 | 1,562 | 5,622 | 6,187 | ||||||||||||
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Goodwill
impairment
|
- | 40,333 | - | 40,333 | ||||||||||||
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Restructuring
costs and other income, net (b)
|
2,146 | 3,105 | 4,429 | 2,010 | ||||||||||||
| 57,054 | 106,817 | 226,039 | 342,165 | |||||||||||||
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Operating
Loss
|
(294 | ) | (39,663 | ) | (474 | ) | (13,007 | ) | ||||||||
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Interest
Income
|
39 | 398 | 387 | 1,935 | ||||||||||||
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Interest
Expense
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(378 | ) | (833 | ) | (2,171 | ) | (2,738 | ) | ||||||||
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Loss
from Continuing Operations Before Provision
|
||||||||||||||||
|
for
Income Taxes
|
(633 | ) | (40,098 | ) | (2,258 | ) | (13,810 | ) | ||||||||
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Provision
for Income Taxes
|
1,096 | 1,309 | 3,692 | 8,466 | ||||||||||||
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Loss
from Continuing Operations
|
(1,729 | ) | (41,407 | ) | (5,950 | ) | (22,276 | ) | ||||||||
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(Loss)
Income from Discontinued Operation, Net of Tax
|
(4 | ) | 23 | (18 | ) | 37 | ||||||||||
|
Net
Loss
|
(1,733 | ) | (41,384 | ) | (5,968 | ) | (22,239 | ) | ||||||||
|
Net
Loss (Income) Attributable to Noncontrolling Interest
|
12 | (33 | ) | 44 | (319 | ) | ||||||||||
|
Net
Loss Attributable to Kadant
|
$ | (1,721 | ) | $ | (41,417 | ) | $ | (5,924 | ) | $ | (22,558 | ) | ||||
|
Amounts
Attributable to Kadant:
|
||||||||||||||||
|
Loss
from Continuing Operations
|
$ | (1,717 | ) | $ | (41,440 | ) | $ | (5,906 | ) | $ | (22,595 | ) | ||||
|
(Loss)
Income from Discontinued Operation, Net of Tax
|
(4 | ) | 23 | (18 | ) | 37 | ||||||||||
|
Net
Loss Attributable to Kadant
|
$ | (1,721 | ) | $ | (41,417 | ) | $ | (5,924 | ) | $ | (22,558 | ) | ||||
|
Basic
and Diluted Loss per Share from Continuing Operations
|
||||||||||||||||
|
Attributable
to Kadant
|
$ | (.14 | ) | $ | (3.25 | ) | $ | (.48 | ) | $ | (1.67 | ) | ||||
|
Basic
and Diluted Loss per Share Attributable to Kadant
|
$ | (.14 | ) | $ | (3.25 | ) | $ | (.48 | ) | $ | (1.67 | ) | ||||
|
Basic
and Diluted Weighted Average Shares
|
12,282 | 12,732 | 12,331 | 13,527 | ||||||||||||
-more-
|
Increase
|
||||||||||||||||
|
(Decrease)
|
||||||||||||||||
|
Excluding
Effect
|
||||||||||||||||
|
Three
Months Ended
|
Increase
|
of
Currency
|
||||||||||||||
|
Revenues
by Product Line
|
Jan.
2, 2010
|
Jan.
3, 2009
|
(Decrease)
|
Translation
(c,e)
|
||||||||||||
|
Stock-Preparation
Equipment
|
$ | 20,440 | $ | 24,360 | $ | (3,920 | ) | $ | (4,835 | ) | ||||||
|
Fluid-Handling
|
17,296 | 20,782 | (3,486 | ) | (4,691 | ) | ||||||||||
|
Accessories
|
11,576 | 12,920 | (1,344 | ) | (1,740 | ) | ||||||||||
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Water-Management
|
5,501 | 7,452 | (1,951 | ) | (2,049 | ) | ||||||||||
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Other
|
456 | 473 | (17 | ) | (11 | ) | ||||||||||
|
Pulp
and Papermaking Systems Segment
|
55,269 | 65,987 | (10,718 | ) | (13,326 | ) | ||||||||||
|
Other
(d)
|
1,491 | 1,167 | 324 | 324 | ||||||||||||
| $ | 56,760 | $ | 67,154 | $ | (10,394 | ) | $ | (13,002 | ) | |||||||
|
Increase
|
||||||||||||||||
|
(Decrease)
|
||||||||||||||||
|
Excluding
Effect
|
||||||||||||||||
|
Twelve
Months Ended
|
Increase
|
of
Currency
|
||||||||||||||
|
Jan.
2, 2010
|
Jan.
3, 2009
|
(Decrease)
|
Translation
(c,e)
|
|||||||||||||
|
Stock-Preparation
Equipment
|
$ | 85,731 | $ | 128,253 | $ | (42,522 | ) | $ | (39,470 | ) | ||||||
|
Fluid-Handling
|
63,930 | 98,675 | (34,745 | ) | (31,705 | ) | ||||||||||
|
Accessories
|
45,895 | 60,716 | (14,821 | ) | (11,384 | ) | ||||||||||
|
Water-Management
|
20,273 | 31,685 | (11,412 | ) | (10,401 | ) | ||||||||||
|
Other
|
1,778 | 2,418 | (640 | ) | (247 | ) | ||||||||||
|
Pulp
and Papermaking Systems Segment
|
217,607 | 321,747 | (104,140 | ) | (93,207 | ) | ||||||||||
|
Other
(d)
|
7,958 | 7,411 | 547 | 547 | ||||||||||||
| $ | 225,565 | $ | 329,158 | $ | (103,593 | ) | $ | (92,660 | ) | |||||||
|
Three
Months Ended
|
Increase
|
|||||||||||||||
|
Sequential
Revenues by Product Line
|
Jan.
2, 2010
|
Oct.
3, 2009
|
(Decrease)
|
|||||||||||||
|
Stock-Preparation
Equipment
|
$ | 20,440 | $ | 19,672 | $ | 768 | ||||||||||
|
Fluid-Handling
|
17,296 | 15,794 | 1,502 | |||||||||||||
|
Accessories
|
11,576 | 11,917 | (341 | ) | ||||||||||||
|
Water-Management
|
5,501 | 4,486 | 1,015 | |||||||||||||
|
Other
|
456 | 487 | (31 | ) | ||||||||||||
|
Pulp
and Papermaking Systems Segment
|
55,269 | 52,356 | 2,913 | |||||||||||||
|
Other
(d)
|
1,491 | 1,360 | 131 | |||||||||||||
| $ | 56,760 | $ | 53,716 | $ | 3,044 | |||||||||||
-more-
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Business
Segment Information (d)
|
Jan.
2, 2010
|
Jan.
3, 2009
|
Jan.
2, 2010
|
Jan.
3, 2009
|
||||||||||||
|
Gross
Profit Margin:
|
||||||||||||||||
|
Pulp
and Papermaking Systems
|
42 | % | 43 | % | 40 | % | 42 | % | ||||||||
|
Other
|
31 | % | 18 | % | 35 | % | 27 | % | ||||||||
| 41 | % | 43 | % | 40 | % | 41 | % | |||||||||
|
Operating
Loss:
|
||||||||||||||||
|
Pulp
and Papermaking Systems
|
$ | 2,723 | $ | (36,411 | ) | $ | 10,203 | $ | 1,341 | |||||||
|
Corporate
and Other
|
(3,017 | ) | (3,252 | ) | (10,677 | ) | (14,348 | ) | ||||||||
| $ | (294 | ) | $ | (39,663 | ) | $ | (474 | ) | $ | (13,007 | ) | |||||
|
Adjusted
Operating Income (c):
|
||||||||||||||||
|
Operating
Loss
|
$ | (294 | ) | $ | (39,663 | ) | $ | (474 | ) | $ | (13,007 | ) | ||||
|
Goodwill
impairment
|
- | 40,333 | - | 40,333 | ||||||||||||
|
Restructuring
costs and other income, net (b)
|
2,146 | 3,105 | 4,429 | 2,010 | ||||||||||||
| $ | 1,852 | $ | 3,775 | $ | 3,955 | $ | 29,336 | |||||||||
|
Bookings
from Continuing Operations:
|
||||||||||||||||
|
Pulp
and Papermaking Systems
|
$ | 61,898 | $ | 49,102 | $ | 213,376 | $ | 281,107 | ||||||||
|
Other
|
2,326 | 1,389 | 8,958 | 6,933 | ||||||||||||
| $ | 64,224 | $ | 50,491 | $ | 222,334 | $ | 288,040 | |||||||||
|
Capital
Expenditures from Continuing Operations:
|
||||||||||||||||
|
Pulp
and Papermaking Systems
|
$ | 368 | $ | 1,951 | $ | 2,529 | $ | 5,606 | ||||||||
|
Corporate
and Other
|
57 | 49 | 275 | 592 | ||||||||||||
| $ | 425 | $ | 2,000 | $ | 2,804 | $ | 6,198 | |||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Cash
Flow and Other Data from Continuing Operations
|
Jan.
2, 2010
|
Jan.
3, 2009
|
Jan.
2, 2010
|
Jan.
3, 2009
|
||||||||||||
|
Cash
Provided by Operations
|
$ | 11,352 | $ | 2,243 | $ | 43,116 | $ | 19,358 | ||||||||
|
Depreciation
and Amortization Expense
|
1,853 | 1,913 | 7,448 | 7,530 | ||||||||||||
|
Balance
Sheet Data (a)
|
Jan.
2, 2010
|
Jan.
3, 2009
|
||||||||||||||
|
Assets
|
||||||||||||||||
|
Cash
and Cash Equivalents
|
$ | 45,675 | $ | 40,139 | ||||||||||||
|
Accounts
Receivable, net
|
36,436 | 54,517 | ||||||||||||||
|
Inventories
|
37,435 | 55,762 | ||||||||||||||
|
Other
Current Assets
|
11,725 | 26,589 | ||||||||||||||
|
Property,
Plant and Equipment, net
|
38,415 | 41,638 | ||||||||||||||
|
Intangible
Assets
|
28,071 | 30,115 | ||||||||||||||
|
Goodwill
|
97,622 | 95,030 | ||||||||||||||
|
Other
Assets
|
12,277 | 13,127 | ||||||||||||||
| $ | 307,656 | $ | 356,917 | |||||||||||||
|
Liabilities
and Shareholders' Investment
|
||||||||||||||||
|
Accounts
Payable
|
$ | 17,612 | $ | 24,212 | ||||||||||||
|
Short-
and Long-term Debt
|
23,250 | 55,411 | ||||||||||||||
|
Other
Liabilities
|
72,763 | 82,901 | ||||||||||||||
|
Total
Liabilities
|
$ | 113,625 | $ | 162,524 | ||||||||||||
|
Shareholders'
Investment
|
$ | 194,031 | $ | 194,393 | ||||||||||||
| $ | 307,656 | $ | 356,917 | |||||||||||||
- -more-
|
Adjusted
Operating Income and Adjusted EBITDA
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||
|
Reconciliation
|
Jan.
2, 2010
|
Jan.
3, 2009
|
Jan.
2, 2010
|
Jan.
3, 2009
|
||||||||||||
|
Consolidated
|
||||||||||||||||
|
Net
Loss Attributable to Kadant
|
$ | (1,721 | ) | $ | (41,417 | ) | $ | (5,924 | ) | $ | (22,558 | ) | ||||
|
Net
(Loss) Income Attributable to Noncontrolling Interest
|
(12 | ) | 33 | (44 | ) | 319 | ||||||||||
|
Loss
(Income) from Discontinued Operation, Net of Tax
|
4 | (23 | ) | 18 | (37 | ) | ||||||||||
|
Provision
for Income Taxes
|
1,096 | 1,309 | 3,692 | 8,466 | ||||||||||||
|
Interest
Expense, net
|
339 | 435 | 1,784 | 803 | ||||||||||||
|
Goodwill
Impairment
|
- | 40,333 | - | 40,333 | ||||||||||||
|
Restructuring
costs and other income, net (b)
|
2,146 | 3,105 | 4,429 | 2,010 | ||||||||||||
|
Adjusted
Operating Income (c)
|
1,852 | 3,775 | 3,955 | 29,336 | ||||||||||||
|
Depreciation
and Amortization
|
1,853 | 1,913 | 7,448 | 7,530 | ||||||||||||
|
Adjusted
EBITDA (c)
|
$ | 3,705 | $ | 5,688 | $ | 11,403 | $ | 36,866 | ||||||||
|
Pulp
and Papermaking Systems
|
||||||||||||||||
|
Operating
Income (Loss)
|
$ | 2,723 | $ | (36,411 | ) | $ | 10,203 | $ | 1,341 | |||||||
|
Goodwill
Impairment
|
- | 40,333 | - | 40,333 | ||||||||||||
|
Restructuring
costs and other income, net (b)
|
2,146 | 3,105 | 4,429 | 2,010 | ||||||||||||
|
Adjusted
Operating Income (c)
|
4,869 | 7,027 | 14,632 | 43,684 | ||||||||||||
|
Depreciation
and Amortization
|
1,732 | 1,792 | 6,984 | 7,037 | ||||||||||||
|
Adjusted
EBITDA (c)
|
$ | 6,601 | $ | 8,819 | $ | 21,616 | $ | 50,721 | ||||||||
|
Corporate
and Other (d)
|
||||||||||||||||
|
Operating
Loss
|
$ | (3,017 | ) | $ | (3,252 | ) | $ | (10,677 | ) | $ | (14,348 | ) | ||||
|
Depreciation
and Amortization
|
121 | 121 | 464 | 493 | ||||||||||||
|
EBITDA
(c)
|
$ | (2,896 | ) | $ | (3,131 | ) | $ | (10,213 | ) | $ | (13,855 | ) | ||||
|
(a)
|
On
January 4, 2009, the Company adopted the FASB Accounting Standard
Codification 810, Consolidation, (formerly
|
||||||||
|
SFAS
No. 160, "Noncontrolling Interests in Consolidated Financial Statements -
an Amendment of Accounting Research Bulletin
|
|||||||||
|
No.
51"). Prior period amounts have been reclassified to conform to the
current year presentation.
|
|||||||||
|
(b)
|
Includes
pre-tax restructuring costs of $2,146 and $3,105 in the three-month
periods ended January 2, 2010 and January 3, 2009,
|
||||||||
|
respectively.
Includes pre-tax restructuring costs of $4,429 in the twelve-month period
ended January 2, 2010 and pre-tax
|
|||||||||
|
restructuring
costs of $3,697, net of pre-tax gains from sales of assets of $1,687, in
the twelve-month period ended January 3, 2009.
|
|||||||||
|
(c)
|
Represents
a non-GAAP financial measure.
|
||||||||
|
|
|||||||||
|
(d)
|
"Other"
includes the results from the Fiber-based Products
business.
|
||||||||
|
(e)
|
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 current period.
|
|||||||||
|
|
|||||||||
-more-
About
Kadant
Kadant
Inc. is a leading supplier to the global pulp and paper industry, with a range
of products and services for improving efficiency and quality in pulp and paper
production, including paper machine accessories and systems for stock
preparation, fluid handling, and water management. Our fluid-handling products
are also used to optimize production in the steel, rubber, plastics, food, and
textile 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 $226 million in 2009 and 1,600 employees in 16
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. Important factors that could cause actual results
to differ materially from those indicated by such statements are set forth under
the heading “Risk Factors” in Kadant’s quarterly report on Form 10-Q for the
period ended October 3, 2009. These include risks and uncertainties relating to
worldwide and local economic conditions as well as the pulp and paper industry;
our debt obligations; restrictions in our credit agreement and compliance with
covenants; future restructurings; significance of sales and operation of
manufacturing facilities in China; international sales and operations;
competition; soundness of suppliers and customers; soundness of financial
institutions; litigation and warranty costs related to our discontinued
operation; our acquisition strategy; factors influencing our fiber-based
products business; protection of patents and proprietary rights; 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.
###