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 July 25, 2007.
|
|
KADANT
INC.
|
||
Date:
July 25, 2007
|
By
|
/s/
Thomas M. O’Brien
|
Thomas
M. O’Brien
Executive
Vice President and
Chief Financial Officer
|
· |
Pre-tax
loss from the 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
|
Six
Months Ended
|
||||||||||||
Consolidated
Statement of Income
|
June
30, 2007
|
July
1, 2006
|
June
30, 2007
|
July
1, 2006
|
|||||||||
Revenues
|
$
|
89,107
|
$
|
89,567
|
$
|
177,348
|
$
|
165,158
|
|||||
Costs
and Operating Expenses:
|
|||||||||||||
Cost
of revenues
|
54,964
|
56,847
|
110,658
|
103,821
|
|||||||||
Selling,
general, and administrative expenses
|
23,087
|
22,498
|
46,583
|
44,619
|
|||||||||
Research
and development expenses
|
1,493
|
1,496
|
3,160
|
3,041
|
|||||||||
Loss
on sale of subsidiary (a)
|
388
|
-
|
388
|
-
|
|||||||||
Restructuring
costs
|
-
|
-
|
-
|
138
|
|||||||||
|
79,932
|
80,841
|
160,789
|
151,619
|
|||||||||
Operating
Income
|
9,175
|
8,726
|
16,559
|
13,539
|
|||||||||
Interest
Income
|
342
|
251
|
693
|
510
|
|||||||||
Interest
Expense
|
(789
|
)
|
(804
|
)
|
(1,595
|
)
|
(1,598
|
)
|
|||||
Income
from Continuing Operations Before Provision for
|
|||||||||||||
Income
Taxes and Minority Interest Expense
|
8,728
|
8,173
|
15,657
|
12,451
|
|||||||||
Provision
for Income Taxes
|
2,705
|
2,529
|
4,895
|
3,984
|
|||||||||
Minority
Interest Expense
|
87
|
47
|
135
|
105
|
|||||||||
|
|||||||||||||
Income
from Continuing Operations
|
5,936
|
5,597
|
10,627
|
8,362
|
|||||||||
Loss
from Discontinued Operation, Net of Tax
|
(1,022
|
)
|
(627
|
)
|
(1,414
|
)
|
(741
|
)
|
|||||
Net
Income
|
$
|
4,914
|
$
|
4,970
|
$
|
9,213
|
$
|
7,621
|
|||||
Basic
Earnings per Share
|
|||||||||||||
Income
from Continuing Operations
|
$
|
.42
|
$
|
.41
|
$
|
.76
|
$
|
.61
|
|||||
Loss
from Discontinued Operation
|
(.07
|
)
|
(.05
|
)
|
(.10
|
)
|
(.05
|
)
|
|||||
Net
Income
|
$
|
.35
|
$
|
.36
|
$
|
.66
|
$
|
.56
|
|||||
Diluted
Earnings per Share
|
|||||||||||||
Income
from Continuing Operations
|
$
|
.42
|
$
|
.40
|
$
|
.75
|
$
|
.60
|
|||||
Loss
from Discontinued Operation
|
(.07
|
)
|
(.05
|
)
|
(.10
|
)
|
(.05
|
)
|
|||||
Net
Income
|
$
|
.35
|
$
|
.35
|
$
|
.65
|
$
|
.55
|
|||||
Weighted
Average Shares
|
|||||||||||||
Basic
|
14,012
|
13,702
|
14,010
|
13,641
|
|||||||||
Diluted
|
14,202
|
14,056
|
14,208
|
13,948
|
|||||||||
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
Business
Segment Information (b)
|
June
30, 2007
|
July
1, 2006
|
June
30, 2007
|
July
1, 2006
|
|||||||||
Revenues:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
86,609
|
$
|
85,427
|
$
|
170,643
|
$
|
156,500
|
|||||
Other
|
2,498
|
4,140
|
6,705
|
8,658
|
|||||||||
$
|
89,107
|
$
|
89,567
|
$
|
177,348
|
$
|
165,158
|
||||||
Gross
Profit Margin:
|
|||||||||||||
Pulp
and Papermaking Systems
|
38
|
%
|
37
|
%
|
38
|
%
|
38
|
%
|
|||||
Other
|
34
|
%
|
31
|
%
|
34
|
%
|
30
|
%
|
|||||
38
|
%
|
37
|
%
|
38
|
%
|
37
|
%
|
||||||
Operating
Income:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
12,238
|
$
|
11,016
|
$
|
21,808
|
$
|
17,767
|
|||||
Corporate
and Other
|
(3,063
|
)
|
(2,290
|
)
|
(5,249
|
)
|
(4,228
|
)
|
|||||
$
|
9,175
|
$
|
8,726
|
$
|
16,559
|
$
|
13,539
|
||||||
Bookings
from Continuing Operations:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
89,310
|
$
|
85,914
|
$
|
185,517
|
$
|
184,114
|
|||||
Other
|
2,343
|
2,936
|
6,360
|
8,357
|
|||||||||
$
|
91,653
|
$
|
88,850
|
$
|
191,877
|
$
|
192,471
|
||||||
Capital
Expenditures from Continuing Operations:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
846
|
$
|
638
|
$
|
1,621
|
$
|
975
|
|||||
Corporate
and Other
|
40
|
85
|
103
|
131
|
|||||||||
$
|
886
|
$
|
723
|
$
|
1,724
|
$
|
1,106
|
||||||
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
Cash
Flow and Other Data from Continuing Operations
|
June
30, 2007
|
July
1, 2006
|
June
30, 2007
|
July
1, 2006
|
|||||||||
Cash
(Used in) Provided by Operations
|
$
|
(2,684
|
)
|
$
|
(2,038
|
)
|
$
|
3,768
|
$
|
(356
|
)
|
||
Depreciation
and Amortization Expense
|
1,891
|
1,825
|
3,648
|
3,755
|
|||||||||
Balance
Sheet Data
|
June
30, 2007
|
Dec.
30, 2006
|
|||||||||||
Cash
and Cash Equivalents
|
$
|
40,264
|
$
|
39,634
|
|||||||||
Short-
and Long-term Debt
|
50,209
|
53,982
|
|||||||||||
Shareholders'
Investment
|
252,874
|
237,965
|
|||||||||||
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
EBITDA
Data
|
June
30, 2007
|
July
1, 2006
|
June
30, 2007
|
July
1, 2006
|
|||||||||
Consolidated
|
|||||||||||||
GAAP
Operating Income
|
$
|
9,175
|
$
|
8,726
|
$
|
16,559
|
$
|
13,539
|
|||||
Depreciation
and Amortization
|
1,891
|
1,825
|
3,648
|
3,755
|
|||||||||
Loss
on sale of subsidiary (a)
|
388
|
-
|
388
|
-
|
|||||||||
EBITDA
|
$
|
11,454
|
$
|
10,551
|
$
|
20,595
|
$
|
17,294
|
|||||
Pulp
and Papermaking Systems
|
|||||||||||||
GAAP
Operating Income
|
$
|
12,238
|
$
|
11,016
|
$
|
21,808
|
$
|
17,767
|
|||||
Depreciation
and Amortization
|
1,762
|
1,678
|
3,386
|
3,430
|
|||||||||
EBITDA
|
$
|
14,000
|
$
|
12,694
|
$
|
25,194
|
$
|
21,197
|
|||||
Corporate
and Other (b)
|
|||||||||||||
GAAP
Operating Loss
|
$
|
(3,063
|
)
|
$
|
(2,290
|
)
|
$
|
(5,249
|
)
|
$
|
(4,228
|
)
|
|
Depreciation
and Amortization
|
129
|
147
|
262
|
325
|
|||||||||
Loss
on sale of subsidiary (a)
|
388
|
-
|
388
|
-
|
|||||||||
EBITDA
|
$
|
(2,546
|
)
|
$
|
(2,143
|
)
|
$
|
(4,599
|
)
|
$
|
(3,903
|
)
|
(a)
|
Reflects
a pre-tax loss on the sale of the Castings 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.
|
||||||||
|