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 November 1, 2006.
|
|
KADANT
INC.
|
||
Date:
November 1, 2006
|
By
|
/s/
Thomas M. O’Brien
|
Thomas
M. O’Brien
Executive
Vice President and
Chief Financial Officer
|
Financial
Highlights (unaudited)
|
|||||||||||||
(In
thousands, except per share amounts and percentages)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
Consolidated
Statement of Income
|
Sept.
30, 2006
|
Oct.
1, 2005
|
Sept.
30, 2006
|
Oct.
1, 2005
|
|||||||||
Revenues
|
$
|
90,586
|
$
|
64,799
|
$
|
255,744
|
$
|
180,629
|
|||||
Costs
and Operating Expenses:
|
|||||||||||||
Cost
of revenues
|
58,366
|
38,557
|
162,187
|
110,924
|
|||||||||
Selling,
general, and administrative expenses
|
21,536
|
20,267
|
66,155
|
53,658
|
|||||||||
Research
and development expenses
|
1,429
|
1,315
|
4,470
|
3,610
|
|||||||||
Restructuring
and other costs (income), net
|
-
|
(78
|
)
|
138
|
(78
|
)
|
|||||||
|
81,331
|
60,061
|
232,950
|
168,114
|
|||||||||
Operating
Income
|
9,255
|
4,738
|
22,794
|
12,515
|
|||||||||
Interest
Income
|
233
|
337
|
743
|
1,188
|
|||||||||
Interest
Expense
|
(881
|
)
|
(826
|
)
|
(2,479
|
)
|
(1,301
|
)
|
|||||
Income
from Continuing Operations Before Provision for
|
|||||||||||||
Income
Taxes and Minority Interest Expense
|
8,607
|
4,249
|
21,058
|
12,402
|
|||||||||
Provision
for Income Taxes (a)
|
2,693
|
1,519
|
6,677
|
3,376
|
|||||||||
Minority
Interest Expense
|
90
|
96
|
195
|
158
|
|||||||||
|
|||||||||||||
Income
from Continuing Operations
|
5,824
|
2,634
|
14,186
|
8,868
|
|||||||||
Loss
from Discontinued Operation, Net of Tax
|
(183
|
)
|
(2,252
|
)
|
(924
|
)
|
(2,408
|
)
|
|||||
Net
Income
|
$
|
5,641
|
$
|
382
|
$
|
13,262
|
$
|
6,460
|
|||||
Basic
Earnings per Share
|
|||||||||||||
Income
from Continuing Operations (a)
|
$
|
.42
|
$
|
.19
|
$
|
1.03
|
$
|
.64
|
|||||
Loss
from Discontinued Operation
|
(.02
|
)
|
(.16
|
)
|
(.06
|
)
|
(.18
|
)
|
|||||
Net
Income
|
$
|
.40
|
$
|
.03
|
$
|
.97
|
$
|
.46
|
|||||
Diluted
Earnings per Share
|
|||||||||||||
Income
from Continuing Operations (a)
|
$
|
.41
|
$
|
.19
|
$
|
1.01
|
$
|
.63
|
|||||
Loss
from Discontinued Operation
|
(.01
|
)
|
(.16
|
)
|
(.07
|
)
|
(.17
|
)
|
|||||
Net
Income
|
$
|
.40
|
$
|
.03
|
$
|
.94
|
$
|
.46
|
|||||
Weighted
Average Shares
|
|||||||||||||
Basic
|
13,946
|
13,861
|
13,743
|
13,893
|
|||||||||
Diluted
|
14,216
|
14,167
|
14,038
|
14,186
|
|||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
Business
Segment Information (b)
|
Sept.
30, 2006
|
Oct.
1, 2005
|
Sept.
30, 2006
|
Oct.
1, 2005
|
|||||||||
Revenues:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
88,101
|
$
|
62,879
|
$
|
244,601
|
$
|
172,978
|
|||||
Other
|
2,485
|
1,920
|
11,143
|
7,651
|
|||||||||
$
|
90,586
|
$
|
64,799
|
$
|
255,744
|
$
|
180,629
|
||||||
Gross
Profit Margin:
|
|||||||||||||
Pulp
and Papermaking Systems
|
36
|
%
|
42
|
%
|
37
|
%
|
39
|
%
|
|||||
Other
|
27
|
%
|
7
|
%
|
29
|
%
|
32
|
%
|
|||||
36
|
%
|
40
|
%
|
37
|
%
|
39
|
%
|
||||||
Operating
Income (c):
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
11,651
|
$
|
6,388
|
$
|
29,418
|
$
|
16,163
|
|||||
Corporate
and Other
|
(2,396
|
)
|
(1,650
|
)
|
(6,624
|
)
|
(3,648
|
)
|
|||||
$
|
9,255
|
$
|
4,738
|
$
|
22,794
|
$
|
12,515
|
||||||
Bookings
from Continuing Operations:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
80,148
|
$
|
63,997
|
$
|
264,262
|
$
|
169,542
|
|||||
Other
|
2,748
|
2,061
|
11,105
|
7,529
|
|||||||||
$
|
82,896
|
$
|
66,058
|
$
|
275,367
|
$
|
177,071
|
||||||
Capital
Expenditures from Continuing Operations:
|
|||||||||||||
Pulp
and Papermaking Systems
|
$
|
1,339
|
$
|
741
|
$
|
2,314
|
$
|
1,493
|
|||||
Corporate
and Other
|
105
|
303
|
236
|
426
|
|||||||||
$
|
1,444
|
$
|
1,044
|
$
|
2,550
|
$
|
1,919
|
||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
Cash
Flow and Other Data from Continuing Operations
|
Sept.
30, 2006
|
Oct.
1, 2005
|
Sept.
30, 2006
|
Oct.
1, 2005
|
|||||||||
Cash
Provided by Operations
|
$
|
4,109
|
$
|
6,267
|
$
|
3,753
|
$
|
11,150
|
|||||
Depreciation
and Amortization Expense
|
$
|
1,859
|
$
|
2,148
|
$
|
5,614
|
$
|
4,867
|
|||||
Balance
Sheet Data
|
Sept.
30, 2006
|
Dec.
31, 2005
|
|||||||||||
Cash
and Cash Equivalents
|
$
|
39,089
|
$
|
40,822
|
|||||||||
Short-
and Long-term Debt
|
$
|
55,947
|
$
|
55,500
|
|||||||||
Shareholders'
Investment
|
$
|
232,516
|
$
|
207,625
|
|||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
EBITDA
Data (b)
|
Sept.
30, 2006
|
Oct.
1, 2005
|
Sept.
30, 2006
|
Oct.
1, 2005
|
|||||||||
Consolidated
|
|||||||||||||
Operating
Income
|
$
|
9,255
|
$
|
4,738
|
$
|
22,794
|
$
|
12,515
|
|||||
Depreciation
and Amortization
|
1,859
|
2,148
|
5,614
|
4,867
|
|||||||||
EBITDA
(d)
|
$
|
11,114
|
$
|
6,886
|
$
|
28,408
|
$
|
17,382
|
|||||
Pulp
and Papermaking Systems
|
|||||||||||||
Operating
Income (c)
|
$
|
11,651
|
$
|
6,388
|
$
|
29,418
|
$
|
16,163
|
|||||
Depreciation
and Amortization
|
1,734
|
1,952
|
5,164
|
4,385
|
|||||||||
EBITDA
(d)
|
$
|
13,385
|
$
|
8,340
|
$
|
34,582
|
$
|
20,548
|
|||||
Corporate
and Other
|
|||||||||||||
Operating
Loss (c)
|
$
|
(2,396
|
)
|
$
|
(1,650
|
)
|
$
|
(6,624
|
)
|
$
|
(3,648
|
)
|
|
Depreciation
and Amortization
|
125
|
196
|
450
|
482
|
|||||||||
EBITDA
|
$
|
(2,271
|
)
|
$
|
(1,454
|
)
|
$
|
(6,174
|
)
|
$
|
(3,166
|
)
|
(a)
|
Includes
a tax benefit of $882, or $.06 per diluted share, in the nine-month
period
ended October 1, 2005, received from our former parent company
under a tax
agreement.
|
||||||||
(b)
|
"Other"
includes the results from the Fiber-based Products business and
the
Casting Products business.
|
||||||||
(c)
|
Information
in the 2005 period has been reclassified to conform to the 2006
presentation.
|
||||||||
(d) | Includes $406 and $626 of costs associated with acquired profit in inventory in the three-month and nine-month periods ended October 1, 2005, respectively, related to the sale of inventory that was revalued at the Kadant Johnson acquisiton date. Also includes restructuring and other costs (income) of $138 in the nine-month period ended September 30, 2006 and ($78) in the three- and nine-month periods ended October 1, 2005. |