Kadant Inc. - SEC Filing

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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): July 30, 2013

KADANT INC.

(Exact Name of Registrant as Specified in its Charter)

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)

(978) 776-2000

Registrant's telephone number, including area code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

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:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

KADANT INC.

Item 7.01 Regulation FD Disclosure.

On July 30, 2013, Kadant Inc. (the "Company") will hold a webcast and conference call to discuss its financial results for the fiscal quarter ended June 29, 2013. A copy of the slides that will be presented on the webcast and discussed in the conference call is being 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
	The following exhibit relating to Item 7.01 shall be deemed to be furnished and not filed.

	Exhibit No	Description of Exhibit

	99	Slides to be presented by the Company on July 30, 2013

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.

Date: July 30, 2013	By	/s/ Thomas M. O'Brien
		Thomas M. O'Brien Executive Vice President and Chief Financial Officer

Second Quarter 2013 Business Review Jonathan W. Painter, President & CEOThomas M. O’Brien, Executive Vice President & CFO

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation 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. Our actual results may 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 quarterly report on Form 10-Q for the period ended March 30, 2013. These include risks and uncertainties relating to our dependence on the pulp and paper industry; significance of sales and operation of manufacturing facilities in China; commodity and component price increases or shortages; international sales and operations; fluctuations in our exchange rates; competition; soundness of suppliers and customers; our effective tax rate; future restructurings; soundness of financial institutions; our debt obligations; restrictions in our credit agreement; our acquisition strategy; protection of patents and proprietary rights; failure of our information systems or breaches of data security; 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.

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. 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 revenues excluding the effect of acquisitions and foreign currency translation, adjusted revenue guidance, adjusted operating income, adjusted net income, adjusted diluted EPS, adjusted diluted EPS guidance, earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted EBITDA.A reconciliation of those numbers to the most directly comparable U.S. GAAP financial measures is shown in our 2013 second quarter earnings press release issued July 29, 2013, which is available in the Investors section of our website at www.kadant.com under the heading Investor News.

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 2013 Financial Highlights ($ Millions, except per share amounts) Q2 2013 Q2 2012 % CHANGE Revenue $82.2 $83.0 -1.0% Gross Margin 48.6% 43.7% n.a. Diluted EPS1 $0.51 $0.56 -8.9% Net Cash (cash less debt) $48.5 $30.1 61.0% Bookings $87.1 $77.4 12.6% Backlog $106.3 $94.4 12.6% 1 Diluted EPS is from continuing operations. Percent change calculated using actual numbers reported in our Q2 2013 earnings release dated July 29, 2013.

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 2013 Revenue By Product Line ($ Millions) Q2 2013 Q2 2012 % CHANGE EXCL. FX Stock-Preparation $28.5 $28.7 -0.6% -1.6% Doctoring, Cleaning, & Filtration 27.7 27.6 0.4% -0.6% Fluid-Handling 23.1 23.7 -2.7% -3.0% Fiber-based Products 2.9 3.0 -3.6% -3.6% TOTAL $82.2 $83.0 -1.0% -1.7% Percent change calculated using actual numbers reported in our Q2 2013 earnings release dated July 29, 2013.

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 2013 Bookings By Product Line Percent change calculated using actual numbers reported in our Q2 2013 earnings release dated July 29, 2013. ($ Millions) Q2 2013 Q2 2012 % CHANGE EXCL. FX Stock-Preparation $28.2 $28.0 0.7% -0.9% Doctoring, Cleaning, & Filtration 29.8 22.6 31.8% 30.0% Fluid-Handling 26.8 24.2 11.0% 11.1% Fiber-based Products 2.3 2.6 -13.2% -13.2% TOTAL $87.1 $77.4 12.6% 11.5%

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Guidance for Continuing Operations Q3 2013 GAAP diluted EPS of $0.47 to $0.49Q3 2013 revenues of $88 to $90 million Full-Year Guidance FY Guidance July 2013 FY Guidance July 2013 FY Guidance April 2013 FY Guidance April 2013 LOW HIGH LOW HIGH GAAP Diluted EPS $2.02 $2.07 $2.00 $2.10 Gain on Sale (0.12) (0.12) (0.10) (0.10) Restructuring Costs 0.13 0.13 - - Adjusted Diluted EPS $2.03 $2.08 $1.90 $2.00

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 13 Actual to Guidance Comparison Q213 Actual Guidance April 2013 Guidance April 2013 LOW HIGH GAAP Diluted EPS $0.51 $0.53 $0.55 Gain on Sale (0.12) (0.10) (0.10) Restructuring Costs 0.12 - - Adjusted Diluted EPS $0.51 $0.43 $0.45

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Cash Flow ($ Millions) 2Q13 2Q12 Income from Continuing Operations $5.8 $6.6 Depreciation and Amortization 2.5 2.0 Stock-Based Compensation 1.3 1.2 Gain on Sale (1.7) - Other Items (0.2) 0.3 Change in Current Assets & Liabilities (excl. acquisitions) 3.4 (1.5) Cash Provided by Continuing Operations $11.1 $8.6

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Key Working Capital Metrics 2Q13 1Q13 2Q12 Days in Receivables 70 72 74 Days in Inventory 103 95 97 Days in Payables 56 51 49

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Working Capital and Cash Conversion Days 2Q13 1Q13 2Q12 Working Capital % LTM Revenues* 15.1% 14.8% 13.8% Cash Conversion Days** 117 days 116 days 122 days *Working Capital is defined as current assets less current liabilities, excluding cash, debt, and the discontinued operation.** Based on days in receivables plus days in inventory less days in accounts payable.

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Cash and Debt ($ Millions) 2Q13 1Q13 2Q12 Cash, cash equivalents, and restricted cash $64.5 $58.4 $42.1 Debt (16.0) (6.6) (12.0) Net Cash $48.5 $51.8 $30.1

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Leverage Ratio * Calculated by adding or subtracting certain items, as required by our Credit Facility, from Adjusted EBITDA. Under our new Credit Facility entered into on August 3, 2012 total debt is defined as debt less domestic cash of up to $25 million. For periods prior to 3Q12, total debt was not reduced for domestic cash.

* KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Questions & Answers To ask a question, please call 877-703-6107 within the U.S. or +1-857-244-7306 outside the U.S. and reference 83375884. Please mute the audio on your computer.

Second Quarter 2013 Business Review Jonathan W. Painter, President & CEOThomas M. O’Brien, Executive Vice President & CFO