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 October 24, 2007.
|
|
KADANT
INC.
|
||
Date: October
24, 2007
|
By
|
/s/
Thomas M. O’Brien
|
Thomas
M. O’Brien
Executive
Vice President and
Chief
Financial Officer
|
·
|
Pre-tax
loss from the April 2007 sale of our Casting Products business as
we
believe this charge to be outside of our normal operating costs and
infrequent in nature.
|
Financial
Highlights (unaudited)
|
||||||||||||||||
(In
thousands, except per share amounts and percentages)
|
||||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
Consolidated
Statement of Income
|
Sept.
29, 2007
|
Sept.
30, 2006
|
Sept.
29, 2007
|
Sept.
30, 2006
|
||||||||||||
Revenues
|
$ |
92,695
|
$ |
90,586
|
$ |
270,043
|
$ |
255,744
|
||||||||
Costs
and Operating Expenses:
|
||||||||||||||||
Cost
of revenues
|
57,357
|
58,366
|
168,015
|
162,187
|
||||||||||||
Selling,
general, and administrative expenses
|
24,004
|
21,536
|
70,587
|
66,155
|
||||||||||||
Research
and development expenses
|
1,430
|
1,429
|
4,590
|
4,470
|
||||||||||||
Loss
on sale of subsidiary (a)
|
-
|
-
|
388
|
-
|
||||||||||||
Restructuring
costs
|
-
|
-
|
-
|
138
|
||||||||||||
82,791
|
81,331
|
243,580
|
232,950
|
|||||||||||||
Operating
Income
|
9,904
|
9,255
|
26,463
|
22,794
|
||||||||||||
Interest
Income
|
340
|
233
|
1,033
|
743
|
||||||||||||
Interest
Expense
|
(759 | ) | (881 | ) | (2,354 | ) | (2,479 | ) | ||||||||
Income
from Continuing Operations Before Provision for
|
||||||||||||||||
Income
Taxes and Minority Interest Expense
|
9,485
|
8,607
|
25,142
|
21,058
|
||||||||||||
Provision
for Income Taxes
|
2,376
|
2,693
|
7,271
|
6,677
|
||||||||||||
Minority
Interest Expense
|
96
|
90
|
231
|
195
|
||||||||||||
Income
from Continuing Operations
|
7,013
|
5,824
|
17,640
|
14,186
|
||||||||||||
Loss
from Discontinued Operation, Net of Tax
|
(1,232 | ) | (183 | ) | (2,646 | ) | (924 | ) | ||||||||
Net
Income
|
$ |
5,781
|
$ |
5,641
|
$ |
14,994
|
$ |
13,262
|
||||||||
Basic
Earnings per Share
|
||||||||||||||||
Income
from Continuing Operations
|
$ |
.49
|
$ |
.42
|
$ |
1.25
|
$ |
1.03
|
||||||||
Loss
from Discontinued Operation
|
(.08 | ) | (.02 | ) | (.18 | ) | (.06 | ) | ||||||||
Net
Income
|
$ |
.41
|
$ |
.40
|
$ |
1.07
|
$ |
.97
|
||||||||
Diluted
Earnings per Share
|
||||||||||||||||
Income
from Continuing Operations
|
$ |
.49
|
$ |
.41
|
$ |
1.24
|
$ |
1.01
|
||||||||
Loss
from Discontinued Operation
|
(.09 | ) | (.01 | ) | (.19 | ) | (.07 | ) | ||||||||
Net
Income
|
$ |
.40
|
$ |
.40
|
$ |
1.05
|
$ |
.94
|
||||||||
Weighted
Average Shares
|
||||||||||||||||
Basic
|
14,174
|
13,946
|
14,064
|
13,743
|
||||||||||||
Diluted
|
14,319
|
14,216
|
14,245
|
14,038
|
||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
Business
Segment Information (b)
|
Sept.
29, 2007
|
Sept.
30, 2006
|
Sept.
29, 2007
|
Sept.
30, 2006
|
||||||||||||
Revenues:
|
||||||||||||||||
Pulp
and Papermaking Systems
|
$ |
91,093
|
$ |
88,101
|
$ |
261,736
|
$ |
244,601
|
||||||||
Other
|
1,602
|
2,485
|
8,307
|
11,143
|
||||||||||||
$ |
92,695
|
$ |
90,586
|
$ |
270,043
|
$ |
255,744
|
|||||||||
Gross
Profit Margin:
|
||||||||||||||||
Pulp
and Papermaking Systems
|
38 | % | 36 | % | 38 | % | 37 | % | ||||||||
Other
|
23 | % | 27 | % | 32 | % | 29 | % | ||||||||
38 | % | 36 | % | 38 | % | 37 | % | |||||||||
Operating
Income:
|
||||||||||||||||
Pulp
and Papermaking Systems
|
$ |
13,492
|
$ |
11,651
|
$ |
35,300
|
$ |
29,418
|
||||||||
Corporate
and Other
|
(3,588 | ) | (2,396 | ) | (8,837 | ) | (6,624 | ) | ||||||||
$ |
9,904
|
$ |
9,255
|
$ |
26,463
|
$ |
22,794
|
|||||||||
Bookings
from Continuing Operations:
|
||||||||||||||||
Pulp
and Papermaking Systems
|
$ |
104,685
|
$ |
80,148
|
$ |
290,202
|
$ |
264,262
|
||||||||
Other
|
1,365
|
2,748
|
7,725
|
11,105
|
||||||||||||
$ |
106,050
|
$ |
82,896
|
$ |
297,927
|
$ |
275,367
|
|||||||||
Capital
Expenditures from Continuing Operations:
|
||||||||||||||||
Pulp
and Papermaking Systems
|
$ |
1,244
|
$ |
1,339
|
$ |
2,865
|
$ |
2,314
|
||||||||
Corporate
and Other
|
33
|
105
|
136
|
236
|
||||||||||||
$ |
1,277
|
$ |
1,444
|
$ |
3,001
|
$ |
2,550
|
|||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
Cash
Flow and Other Data from Continuing Operations
|
Sept.
29, 2007
|
Sept.
30, 2006
|
Sept.
29, 2007
|
Sept.
30, 2006
|
||||||||||||
Cash
Provided by Operations
|
$ |
3,910
|
$ |
4,109
|
$ |
7,678
|
$ |
3,753
|
||||||||
Depreciation
and Amortization Expense
|
1,827
|
1,859
|
5,475
|
5,614
|
||||||||||||
Balance
Sheet Data
|
Sept.
29, 2007
|
Dec.
30, 2006
|
||||||||||||||
Cash
and Cash Equivalents
|
$ |
40,428
|
$ |
39,634
|
||||||||||||
Short-
and Long-term Debt
|
47,633
|
53,982
|
||||||||||||||
Shareholders'
Investment
|
263,994
|
237,965
|
||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
EBITDA
Data
|
Sept.
29, 2007
|
Sept.
30, 2006
|
Sept.
29, 2007
|
Sept.
30, 2006
|
||||||||||||
Consolidated
|
||||||||||||||||
GAAP
Operating Income
|
$ |
9,904
|
$ |
9,255
|
$ |
26,463
|
$ |
22,794
|
||||||||
Depreciation
and Amortization
|
1,827
|
1,859
|
5,475
|
5,614
|
||||||||||||
Loss
on sale of subsidiary (a)
|
-
|
-
|
388
|
-
|
||||||||||||
EBITDA
|
$ |
11,731
|
$ |
11,114
|
$ |
32,326
|
$ |
28,408
|
||||||||
Pulp
and Papermaking Systems
|
||||||||||||||||
GAAP
Operating Income
|
$ |
13,492
|
$ |
11,651
|
$ |
35,300
|
$ |
29,418
|
||||||||
Depreciation
and Amortization
|
1,700
|
1,734
|
5,086
|
5,164
|
||||||||||||
EBITDA
|
$ |
15,192
|
$ |
13,385
|
$ |
40,386
|
$ |
34,582
|
||||||||
Corporate
and Other (b)
|
||||||||||||||||
GAAP
Operating Loss
|
$ | (3,588 | ) | $ | (2,396 | ) | $ | (8,837 | ) | $ | (6,624 | ) | ||||
Depreciation
and Amortization
|
127
|
125
|
389
|
450
|
||||||||||||
Loss
on sale of subsidiary (a)
|
-
|
-
|
388
|
-
|
||||||||||||
EBITDA
|
$ | (3,461 | ) | $ | (2,271 | ) | $ | (8,060 | ) | $ | (6,174 | ) | ||||
(a)
|
Reflects
a pre-tax loss on the sale of the Casting Products business on
April 30,
2007.
|
||||||||
(b)
|
"Other"
includes the results from the Fiber-based Products business and
the
Casting Products business through its sale on April 30,
2007.
|
||||||||
|