News Release

WESTFORD, Mass.--(BUSINESS WIRE)--Nov. 1, 2016-- Kadant Inc. (NYSE: KAI) reported its financial results for the third quarter and nine months ended October 1, 2016.

Third Quarter 2016 Highlights

• GAAP diluted EPS increased 5% to $0.82
• Net income increased 6% to $9 million and represented 9% of revenue
• Adjusted EBITDA increased 6% to $16 million
• Revenue increased 15% to $106 million
• Gross margin was 45.6%
• Cash flow from operations was $16 million
• Bookings were $95 million, down 4%

Nine Month 2016 Highlights

• GAAP diluted EPS increased 1% to $2.19
• Net income of $24 million was up 1%
• Adjusted diluted EPS increased 10% to $2.41
• Adjusted EBITDA increased 8% to $48 million
• Revenue increased 11% to $314 million; parts and consumables accounted for 62%
• Gross margin was 45.3%
• Cash flow from operations increased 24% to $35 million
• Bookings were $290 million, down 4%

Note: Adjusted EBITDA and adjusted diluted EPS are non-GAAP financial measures that exclude certain items as detailed later in this press release.

Management Commentary
“This was another quarter of strong performance for Kadant,” said Jonathan W. Painter, president and chief executive officer of Kadant Inc. “We achieved revenue growth across all of our three largest product lines. Revenue increases in our Doctoring, Cleaning, & Filtration and Fluid-Handling product lines resulted from organic growth, while our Stock-Preparation product line’s revenue growth was driven by our April 2016 acquisition of PAAL. PAAL is performing well and we are working on integrating the company into our global operating platform to produce longer-term revenue and cost synergies. This combination of acquisition and organic growth is fundamental to our strategic growth plan and is representative of how we see our business developing over the next several years.

“Our third quarter gross margin of 45.6 percent represented a strong result, given that parts and consumables accounted for just 58 percent of total third quarter revenue. We achieved very good profitability levels in the third quarter with operating income and adjusted EBITDA margins of 12 percent and 15 percent, respectively, and produced excellent cash flows from operations of $16 million.

“Quarterly bookings continued to be constrained due to declines in our Stock-Preparation and Fluid-Handling product lines, although our Doctoring, Cleaning, & Filtration and Wood Processing product lines had solid bookings growth. Increased bookings in Europe due to the contribution from PAAL were offset by weaker bookings in most regions of the world as customers have become more cautious, which has led to reduced spending. Looking ahead, we are cautiously optimistic that we will see a sequential improvement in bookings in the fourth quarter,” Mr. Painter noted.

Third Quarter 2016 Results
Revenue increased 15 percent compared to the third quarter of 2015 to $105.5 million, including a $13.6 million increase from an acquisition and a $1.0 million decrease from the unfavorable effect of foreign currency translation. Gross margin was 45.6 percent. Net income was $9.2 million, or $0.82 per diluted share, compared to $8.6 million, or $0.78 per diluted share, in the third quarter of 2015, an increase of six percent and five percent, respectively. Adjusted diluted EPS increased four percent to $0.81 in the third quarter of 2016, compared to $0.78 in the third quarter of 2015. Adjusted diluted EPS in the third quarter of 2016 excludes a $0.02 benefit from a discrete tax item and $0.01 of acquisition costs. Adjusted EBITDA increased six percent to $16.2 million, which excluded acquisition costs of $0.2 million, compared to $15.3 million in the same quarter of 2015. Operating income was $12.6 million compared to $12.7 million in the third quarter of 2015. Adjusted operating income was $12.7 million in both the third quarters of 2016 and 2015. Bookings were $94.8 million compared to $98.8 million in the third quarter of 2015, down four percent, including the net effect of a $13.0 million increase from an acquisition and a $1.0 million decrease from the unfavorable effect of foreign currency translation.

Nine Month 2016 Results
Revenue increased 11 percent compared to the first nine months of 2015 to $313.9 million, including a $28.8 million increase from an acquisition and a $6.7 million decrease from the unfavorable effect of foreign currency translation. Gross margin was 45.3 percent. Net income was $24.3 million, or $2.19 per diluted share, each up one percent, compared to $24 million, or $2.16 per diluted share, in the first nine months of 2015. Adjusted diluted EPS increased 10 percent to $2.41 in the first nine months of 2016, compared to $2.19 in the first nine months of 2015. Adjusted diluted EPS in 2016 excludes $0.15 of acquisition costs, $0.12 of expense related to acquired profit in inventory and backlog, a $0.02 benefit from a discrete tax item and a $0.02 gain on the sale of assets. Adjusted diluted EPS in the 2015 period excludes $0.02 of restructuring costs and $0.01 of expense related to acquired profit in inventory and backlog. Adjusted EBITDA was $47.8 million, eight percent higher than $44.3 million reported in the comparable period of 2015. Adjusted EBITDA in the first nine months of 2016 excluded $1.9 million of costs related to acquired inventory and backlog, $1.8 million of acquisition costs, and a $0.3 million gain on the sale of assets. Adjusted EBITDA for the first nine months of 2015 excluded $0.3 million of restructuring costs and $0.2 million of expense related to acquired profit in inventory and backlog. Operating income was $34.9 million in 2016, compared to $35.7 million in 2015. Adjusted operating income was $38.3 million in 2016, compared to $36.2 million in 2015. Year-to-date cash flow from operations increased 24 percent to $34.7 million, compared to $28.1 million last year. Bookings were $289.9 million, down four percent, including the net effect of a $27.2 million increase from an acquisition and a $6.8 million decrease from the unfavorable effect of foreign currency translation.

Summary and Outlook
“Our results for the first nine months of 2016 have positioned Kadant for another strong year in 2016 and provide the resources to support a range of organic growth initiatives and potential acquisitions that will drive long-term growth, while sustaining our ability to deploy capital for dividends and share repurchases,” Mr. Painter continued.

“Based on our strong performance in the third quarter and current visibility for the remainder of the year, we are raising our GAAP diluted EPS guidance for 2016 to $2.76 to $2.82, revised from our previous guidance of $2.75 to $2.81. Our revised 2016 guidance includes $0.15 of acquisition costs, $0.12 of expense related to acquired profit in inventory and backlog, a $0.02 benefit from a discrete tax item, and a $0.02 gain on the sale of assets. Excluding the acquisition-related costs and other income, our adjusted diluted EPS guidance for 2016 is $2.99 to $3.05. For 2016, we expect revenue of $412 to $416 million, revised from our previous guidance of $415 to $421 million. For the fourth quarter of 2016, we expect to achieve GAAP diluted EPS of $0.57 to $0.63 on revenue of $98 to $102 million.”

Conference Call
Kadant will hold a webcast with a slide presentation for investors on Tuesday, November 1, 2016, at 4:30 p.m. eastern time to discuss its third quarter performance, as well as future expectations. To access the webcast, including the slideshow and accompanying audio, go to www.kadant.com and click on “Investors”. To listen to the webcast via teleconference, call 888-326-8410 within the U.S., or +1-704-385-4884 outside the U.S. and reference participant passcode 78296128. Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at www.sec.gov. An archive of the webcast presentation will be available on our Web site until December 2, 2016.

Shortly after the webcast, Kadant will post its updated general investor presentation incorporating the third quarter results on its Web site at www.kadant.com under the “Investors” section.

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 revenue excluding the effect of acquisitions and foreign currency translation, adjusted operating income, adjusted net income, adjusted diluted EPS, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) and adjusted EBITDA margin.

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 an 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.

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.

Revenue included $13.6 million and $28.8 million from an acquisition in the third quarter and first nine months of 2016, respectively. Revenue also included a $1.0 million and $6.7 million unfavorable foreign currency translation effect in the third quarter and first nine months of 2016, respectively. We present increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation to provide investors insight into underlying revenue trends.

Adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted diluted EPS exclude acquisition costs, restructuring costs, other income, and expense related to acquired inventory and backlog. These items are excluded as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs or income or none at all.

Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:

• Pre-tax gain on the sale of assets of $0.3 million in the first nine months of 2016. Pre-tax restructuring costs of $0.3 million in the first nine months of 2015.
• Pre-tax acquisition costs of $0.2 million in the third quarter of 2016 and $1.8 million in the first nine months of 2016.
• Pre-tax expense related to acquired profit in inventory and backlog of $1.9 million in the first nine months of 2016 and $0.2 million in the first nine months of 2015.

Adjusted net income and adjusted diluted EPS exclude:

• After-tax gain on the sale of assets of $0.2 million ($0.3 million net of tax of $0.1 million) in the first nine months of 2016 and after-tax restructuring costs of $0.2 million ($0.3 million net of tax of $0.1 million) in the first nine months of 2015.
• After-tax acquisition costs of $0.1 million ($0.2 million net of tax of $0.1 million) in the third quarter of 2016 and $1.6 million ($1.8 million net of tax of $0.2 million) in the first nine months of 2016.
• After-tax expense related to acquired profit in inventory and backlog of $1.4 million ($1.9 million net of tax of $0.5 million) in the first nine months of 2016 and $0.1 million ($0.2 million net of tax of $0.1 million) in the first nine months of 2015.
• A benefit from discrete tax items of $0.3 million in the third quarter and first nine months of 2016. The benefit from discrete tax items was primarily due to the reversal of valuation allowances on certain deferred tax assets in the U.S.

Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.

Financial Highlights (unaudited) (In thousands, except per share amounts and percentages)
			Three Months Ended								Nine Months Ended
Consolidated Statement of Income			Oct. 1, 2016				Oct. 3, 2015				Oct. 1, 2016				Oct. 3, 2015
Revenues			$	105,519			$	91,929			$	313,885			$	282,507
Costs and Operating Expenses:
Cost of revenues				57,440				48,261				171,569				148,775
Selling, general, and administrative expenses				33,527				29,200				102,095				92,490
Research and development expenses				1,991				1,787				5,640				5,247
Restructuring costs and other income				-				-				(317	)			300
				92,958				79,248				278,987				246,812
Operating Income				12,561				12,681				34,898				35,695
Interest Income				54				54				175				150
Interest Expense				(305	)			(239	)			(914	)			(701	)
Income from Continuing Operations Before Provision for Income Taxes				12,310				12,496				34,159				35,144
Provision for Income Taxes				3,081				3,782				9,500				10,964
Income from Continuing Operations				9,229				8,714				24,659				24,180
Income (Loss) from Discontinued Operation, Net of Tax				3				(4	)			3				56
Net Income				9,232				8,710				24,662				24,236
Net Income Attributable to Noncontrolling Interest				(75	)			(67	)			(318	)			(232	)
Net Income Attributable to Kadant			$	9,157			$	8,643			$	24,344			$	24,004
Earnings per Share Attributable to Kadant:
Basic			$	0.84			$	0.80			$	2.24			$	2.20
Diluted			$	0.82			$	0.78			$	2.19			$	2.16
Weighted Average Shares:
Basic				10,901				10,861				10,854				10,900
Diluted				11,189				11,096				11,120				11,119
			Three Months Ended								Three Months Ended
Adjusted Net Income and Adjusted Diluted EPS (b)			Oct. 1, 2016				Oct. 1, 2016				Oct. 3, 2015				Oct. 3, 2015
Net Income and Diluted EPS Attributable to Kadant, as Reported			$	9,157			$	0.82			$	8,643			$	0.78
Net (Income) Loss and Diluted EPS from Discontinued Operation				(3	)			-				4				-
Net Income and Diluted EPS from Continuing Operations, as Reported				9,154				0.82				8,647				0.78
Adjustments for the Following:
Acquisition Costs, Net of Tax				115				0.01				-				-
Benefit from Discrete Tax Items				(261	)			(0.02	)			-				-
Adjusted Net Income and Adjusted Diluted EPS			$	9,008			$	0.81			$	8,647			$	0.78
			Nine Months Ended								Nine Months Ended
			Oct. 1, 2016				Oct. 1, 2016				Oct. 3, 2015				Oct. 3, 2015
Net Income and Diluted EPS Attributable to Kadant, as Reported			$	24,344			$	2.19			$	24,004			$	2.16
Net Income and Diluted EPS from Discontinued Operation				(3	)			-				(56	)			(0.01	)
Net Income and Diluted EPS from Continuing Operations, as Reported				24,341				2.19				23,948				2.15
Adjustments for the Following:
Acquisition Costs, Net of Tax				1,625				0.15				-				-
Amortization of Acquired Profit in Inventory and Backlog, Net of Tax				1,359				0.12				124				0.01
Benefit from Discrete Tax Items				(261	)			(0.02	)			-
Restructuring Costs and Other Income, Net of Tax				(247	)			(0.02	)			229				0.02
Adjusted Net Income and Adjusted Diluted EPS			$	26,817			$	2.41			$	24,301			$	2.19

													Increase
													(Decrease)
													Excluding Effect
			Three Months Ended						Increase				of Currency
Revenues by Product Line			Oct. 1, 2016			Oct. 3, 2015			(Decrease)				Translation (a,b)
Stock-Preparation			$	44,099		$	35,708		$	8,391			$	8,713
Doctoring, Cleaning, & Filtration				28,955			23,058			5,897				6,494
Fluid-Handling				23,024			22,023			1,001				1,110
Papermaking Systems				96,078			80,789			15,289				16,317
Wood Processing Systems				7,962			9,119			(1,157	)			(1,186	)
Fiber-Based Products				1,479			2,021			(542	)			(542	)
			$	105,519		$	91,929		$	13,590			$	14,589
													Increase
													(Decrease)
													Excluding Effect
			Nine Months Ended						Increase				of Currency
			Oct. 1, 2016			Oct. 3, 2015			(Decrease)				Translation (a,b)
Stock-Preparation			$	132,158		$	101,625		$	30,533			$	31,651
Doctoring, Cleaning, & Filtration				80,374			77,144			3,230				6,013
Fluid-Handling				67,904			69,300			(1,396	)			119
Papermaking Systems				280,436			248,069			32,367				37,783
Wood Processing Systems				25,437			25,910			(473	)			844
Fiber-Based Products				8,012			8,528			(516	)			(516	)
			$	313,885		$	282,507		$	31,378			$	38,111
													Increase
													(Decrease)
													Excluding Effect
			Three Months Ended						Increase				of Currency
Sequential Revenues by Product Line			Oct. 1, 2016			July 2, 2016			(Decrease)				Translation (a,b)
Stock-Preparation			$	44,099		$	49,641		$	(5,542	)		$	(4,937	)
Doctoring, Cleaning, & Filtration				28,955			27,580			1,375				1,772
Fluid-Handling				23,024			23,110			(86	)			52
Papermaking Systems				96,078			100,331			(4,253	)			(3,113	)
Wood Processing Systems				7,962			8,768			(806	)			(713	)
Fiber-Based Products				1,479			2,729			(1,250	)			(1,250	)
			$	105,519		$	111,828		$	(6,309	)		$	(5,076	)

													Increase
													(Decrease)
													Excluding Effect
			Three Months Ended						Increase				of Currency
Revenues by Geography (c)			Oct. 1, 2016			Oct. 3, 2015			(Decrease)				Translation (a,b)
North America			$	46,994		$	54,989		$	(7,995	)		$	(7,828	)
Europe				31,686			18,351			13,335				13,473
Asia				18,466			11,875			6,591				7,474
Rest of World				8,373			6,714			1,659				1,470
			$	105,519		$	91,929		$	13,590			$	14,589
													Increase
													(Decrease)
													Excluding Effect
			Nine Months Ended						Increase				of Currency
			Oct. 1, 2016			Oct. 3, 2015			(Decrease)				Translation (a,b)
North America			$	155,633		$	171,155		$	(15,522	)		$	(13,570	)
Europe				85,611			52,341			33,270				33,875
Asia				45,456			39,049			6,407				8,766
Rest of World				27,185			19,962			7,223				9,040
			$	313,885		$	282,507		$	31,378			$	38,111
													Increase
													(Decrease)
													Excluding Effect
			Three Months Ended						Increase				of Currency
Sequential Revenues by Geography (c)			Oct. 1, 2016			July 2, 2016			(Decrease)				Translation (a,b)
North America			$	46,994		$	53,830		$	(6,836	)		$	(6,675	)
Europe				31,686			32,960			(1,274	)			(486	)
Asia				18,466			13,985			4,481				4,954
Rest of World				8,373			11,053			(2,680	)			(2,869	)
			$	105,519		$	111,828		$	(6,309	)		$	(5,076	)

													Increase
													(Decrease)
													Excluding Effect
			Three Months Ended						Increase				of Currency
Bookings by Product Line			Oct. 1, 2016			Oct. 3, 2015			(Decrease)				Translation (a)
Stock-Preparation			$	37,039		$	42,087		$	(5,048	)		$	(4,820	)
Doctoring, Cleaning, & Filtration				27,272			24,655			2,617				3,318
Fluid-Handling				20,450			22,886			(2,436	)			(2,380	)
Papermaking Systems				84,761			89,628			(4,867	)			(3,882	)
Wood Processing Systems				8,623			7,425			1,198				1,165
Fiber-Based Products				1,435			1,787			(352	)			(352	)
			$	94,819		$	98,840		$	(4,021	)		$	(3,069	)
													Increase
													(Decrease)
													Excluding Effect
			Nine Months Ended						Increase				of Currency
			Oct. 1, 2016			Oct. 3, 2015			(Decrease)				Translation (a)
Stock-Preparation			$	103,228		$	115,018		$	(11,790	)		$	(10,639	)
Doctoring, Cleaning, & Filtration				86,141			77,675			8,466				11,443
Fluid-Handling				66,336			72,281			(5,945	)			(4,707	)
Papermaking Systems				255,705			264,974			(9,269	)			(3,903	)
Wood Processing Systems				26,981			28,600			(1,619	)			(166	)
Fiber-Based Products				7,164			6,981			183				183
			$	289,850		$	300,555		$	(10,705	)		$	(3,886	)

			Three Months Ended								Nine Months Ended
Business Segment Information			Oct. 1, 2016				Oct. 3, 2015				Oct. 1, 2016				Oct. 3, 2015
Gross Margin:
Papermaking Systems				46.0	%			47.7	%			45.7	%			47.1	%
Other				41.0	%			46.3	%			42.6	%			49.1	%
				45.6	%			47.5	%			45.3	%			47.3	%
Operating Income:
Papermaking Systems			$	16,915			$	14,246			$	44,747			$	41,559
Corporate and Other				(4,354	)			(1,565	)			(9,849	)			(5,864	)
			$	12,561			$	12,681			$	34,898			$	35,695
Adjusted Operating Income (b) (g):
Papermaking Systems			$	17,029			$	14,246			$	47,921			$	42,047
Corporate and Other				(4,301	)			(1,565	)			(9,582	)			(5,864	)
			$	12,728			$	12,681			$	38,339			$	36,183
Capital Expenditures:
Papermaking Systems			$	1,501			$	1,258			$	3,159			$	3,412
Corporate and Other				342				159				420				656
			$	1,843			$	1,417			$	3,579			$	4,068
			Three Months Ended								Nine Months Ended
Cash Flow and Other Data			Oct. 1, 2016				Oct. 3, 2015				Oct. 1, 2016				Oct. 3, 2015
Cash Provided by Operations (h)			$	15,530			$	15,940			$	34,739			$	28,080
Depreciation and Amortization Expense				3,457				2,584				10,934				8,247

Balance Sheet Data			Oct. 1, 2016			Jan. 2, 2016
Assets
Cash, Cash Equivalents, and Restricted Cash			$	65,475		$	66,936
Accounts Receivable, net				65,676			64,321
Inventories				58,652			56,758
Unbilled Contract Costs and Fees				4,903			6,580
Other Current Assets				11,161			10,525
Property, Plant and Equipment, net				49,301			42,293
Intangible Assets				56,710			38,032
Goodwill				157,719			119,051
Other Assets				14,521			11,002
			$	484,118		$	415,498
Liabilities and Stockholders' Equity
Accounts Payable			$	25,177		$	24,418
Short- and Long-term Debt				63,517			31,250
Other Liabilities				106,191			91,885
Total Liabilities				194,885			147,553
Stockholders' Equity				289,233			267,945
			$	484,118		$	415,498

Adjusted Operating Income and Adjusted EBITDA			Three Months Ended								Nine Months Ended
Reconciliation			Oct. 1, 2016				Oct. 3, 2015				Oct. 1, 2016				Oct. 3, 2015
Consolidated
Net Income Attributable to Kadant			$	9,157			$	8,643			$	24,344			$	24,004
Net Income Attributable to Noncontrolling Interest				75				67				318				232
(Income) Loss from Discontinued Operation, Net of Tax				(3	)			4				(3	)			(56	)
Provision for Income Taxes				3,081				3,782				9,500				10,964
Interest Expense, net				251				185				739				551
Operating Income				12,561				12,681				34,898				35,695
Restructuring Costs and Other Income				-				-				(317	)			300
Acquisition Costs (d)				167				-				1,832				-
Acquired Backlog Amortization (e)				-				-				1,468				107
Acquired Profit in Inventory (f)				-				-				458				81
Adjusted Operating Income (b)				12,728				12,681				38,339				36,183
Depreciation and Amortization				3,457				2,584				9,466				8,140
Adjusted EBITDA (b)			$	16,185			$	15,265			$	47,805			$	44,323
Papermaking Systems
Operating Income			$	16,915			$	14,246			$	44,747			$	41,559
Restructuring Costs and Other Income				-				-				(317	)			300
Acquisition Costs (d)				114				-				1,565				-
Acquired Backlog Amortization (e)				-				-				1,468				107
Acquired Profit in Inventory (f)				-				-				458				81
Adjusted Operating Income (b)				17,029				14,246				47,921				42,047
Depreciation and Amortization				2,746				1,867				7,359				5,916
Adjusted EBITDA (b)			$	19,775			$	16,113			$	55,280			$	47,963
Corporate and Other
Operating Loss			$	(4,354	)		$	(1,565	)		$	(9,849	)		$	(5,864	)
Acquisition Costs (d)				53				-				267				-
Adjusted Operating Loss (b)				(4,301	)			(1,565	)			(9,582	)			(5,864	)
Depreciation and Amortization				711				717				2,107				2,224
Adjusted EBITDA (b)			$	(3,590	)		$	(848	)		$	(7,475	)		$	(3,640	)

(a) 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 prior period.

(b) Represents a non-GAAP financial measure.

(c) Geographic revenues are attributed to regions based on customer location.

(d) Represents transaction costs related to our acquisition of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP.

(e) Represents intangible amortization expense associated with acquired backlog.

(f) Represents expense within cost of revenues associated with acquired profit in inventory.

(g) See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation."

(h) Prior period amounts have been restated to conform to the current period presentation as a result of the adoption of the Financial Accounting Standards Board's Accounting Standards Update No. 2016-09.

About Kadant
Kadant Inc. (NYSE:KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company’s products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. Kadant is based in Westford, Massachusetts, with revenue of $390 million in 2015 and 2,000 employees in 18 countries worldwide. For more information, visit www.kadant.com.

Safe Harbor Statement
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 products and technologies. 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 annual report on Form 10-K for the year ended January 2, 2016 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; the variability and uncertainties in sales of capital equipment in China; currency fluctuations; our customers’ ability to obtain financing for capital equipment projects; changes in government regulations and policies; oriented strand board market and levels of residential construction activity; development and use of digital media; price increases or shortages of raw materials; dependence on certain suppliers; international sales and operations; economic conditions and regulatory changes caused by the United Kingdom’s likely exit from the European Union; disruption in production; our acquisition strategy; our internal growth strategy; competition; soundness of suppliers and customers; our effective tax rate; future restructurings; soundness of financial institutions; our debt obligations; restrictions in our credit agreement; loss of key personnel; reliance on third-party research; 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20161101006799/en/

Source: Kadant Inc.

Kadant Inc.
Investor Contact Information:
Michael McKenney, 978-776-2000
mike.mckenney@kadant.com
or
Media Contact Information:
Wes Martz, 269-278-1715
wes.martz@kadant.com