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 27, 2011
KADANT INC.
(Exact Name of Registrant as Specified in its Charter)
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Delaware
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1-11406
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52-1762325
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(State or Other Jurisdiction
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(Commission File Number)
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(IRS Employer
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of Incorporation)
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Identification No.)
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One Technology Park Drive
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Westford, Massachusetts
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01886
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(Address of Principal Executive Offices)
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(Zip Code)
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(978) 776-2000
Registrant's telephone number, including area code
Not Applicable
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:
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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KADANT INC.
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Item 2.02 Results of Operations and Financial Condition.
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On July 27, 2011, Kadant Inc. (the “Company”) announced its financial results for the fiscal quarter ended July 2, 2011. The full text of the press release issued in connection with the announcement is 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.
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Item 9.01 Financial Statements and Exhibits.
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(c) Exhibit
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The following exhibit relating to Item 2.02 shall be deemed to be furnished and not filed.
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Exhibit
No
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Description of Exhibit
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99
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Press Release issued by the Company on July 27, 2011
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2
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.
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KADANT INC.
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Date: July 27, 2011
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By
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/s/ Thomas M. O’Brien
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Thomas M. O’Brien
Executive Vice President and
Chief Financial Officer
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3
Exhibit 99
NEWS
[LOGO]
KADANT
AN ACCENT ON INNOVATION
One Technology Park Drive
Westford, MA 01886
Investor contact: Thomas M. O’Brien, 978-776-2000
Media contact: Wes Martz, 269-278-1715
Kadant Reports Results for Second Quarter 2011
WESTFORD, Mass., July 27, 2011 – Kadant Inc. (NYSE:KAI) reported revenues from continuing operations of $82.5 million in the second quarter of 2011, an increase of $13.4 million, or 19 percent, compared to $69.1 million in the second quarter of 2010. Revenues in the second quarter of 2011 included a $4.6 million, or 7 percent, increase from foreign currency translation compared to the second quarter of 2010. Operating income from continuing operations in the second quarter of 2011 was $10.5 million, or 12.7 percent of revenues, compared to $7.3 million, or 10.6 percent of revenues, in the second quarter of 2010. Net income from continuing operations in the second quarter of 2011 was $7.3 million, or $.59 per diluted share, compared to $5.2 million, or $.42 per diluted share, in the second quarter of 2010.
“The second quarter was marked by strong performances in earnings per share, backlog, and adjusted EBITDA,” said Jonathan W. Painter, president and chief executive officer of Kadant. “Diluted EPS from continuing operations was $.59 in the second quarter of 2011, the second highest in our Company’s history. This compares to our guidance of $.54 to $.56. Our reported results included a loss of $.03 per share, representing the acquisition costs and the operating results of M-Clean Papertech acquired in May 2011, which was not included in our guidance. Also, our effective tax rate was slightly higher than we assumed in our guidance, and this had the effect of decreasing diluted EPS by $.02.
“The higher than expected quarterly EPS performance was due mainly to strong revenues and product gross margins. Revenues of $82.5 million exceeded our guidance, which was $78 to $80 million, and gross margins were 45.7 percent in the second quarter of 2011, with particularly noteworthy improvements over last year’s second quarter in our fluid-handling and fiber-based product businesses. Our adjusted EBITDA was $12.5 million in the second quarter of 2011, up 39 percent over last year’s second quarter, and represented 15.1 percent of revenues.
“During the quarter, we completed the acquisition of M-Clean Papertech, a European-based supplier of paper machine fabric cleaning equipment, for approximately $16 million in cash. This acquisition significantly enhances our water-management product line offerings and strengthens our market position in Europe and China, while offering growth opportunities in North America.
“Bookings of $87.3 million in the second quarter of 2011 were up 18 percent from the second quarter of 2010 driven by strong fluid-handling bookings in Europe. We ended the quarter with a record backlog of $120 million, up 66 percent over last year’s second quarter and 10 percent higher than the first quarter of 2011. Our book-to-bill ratio of 1.1 marks the seventh quarter out of the last eight where we have booked more orders than we have billed.
“As we look into the backlog, we believe that product gross margins will decline from the first half levels, due mainly to a higher proportion of revenues from lower-margin stock preparation systems in the second half of the year. We expect significantly lower gross margin and operating income results from our fiber-based products business in the second half of the year, as is normally the case with this seasonal business. Also, we expect the M-Clean results to be dilutive in the second half of the year. That said, we expect to achieve diluted EPS of $.40 to $.42 in the third quarter of 2011 on revenues of $80 to $82 million. Further, we believe that the fourth quarter will be our strongest quarter in the year both for revenues and earnings. As such, for the full year we are maintaining our diluted EPS guidance of $2.15 to $2.25, on revenues of $325 to $335 million, revised from our previous revenue guidance of $315 to $325 million.”
-more-
Conference Call
Kadant will hold a webcast with a slide presentation on Thursday, July 28, 2011, at 11 a.m. eastern time to discuss its second quarter performance, as well as future expectations. To view this webcast, go to www.kadant.com and click on the “Investors” tab. To listen to the webcast via teleconference, call 866-804-6926 within the U.S., or +1-857-350-1672 outside the U.S. and reference participant passcode 83375884. An archive of the webcast presentation will be available on our Web site until August 26, 2011. In addition, shortly after the webcast, Kadant will post its general investor presentation incorporating the second quarter results on its Web site at www.kadant.com under the “Investors” tab. This presentation will be available until the end of the third quarter of 2011.
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 foreign currency translation, adjusted operating income, earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted EBITDA.
We present increases or decreases in revenues excluding the effect of foreign currency translation to provide investors insight into underlying revenue trends. In addition, we exclude from certain financial measures restructuring costs and gains on the sale of assets to give investors additional insight into our quarterly and annual operating performance, especially when compared to quarters in which such items had greater or lesser effect, or no effect. In addition, these items are excluded as they are either isolated or cannot be expected to occur again with any regularity or predictability and we believe are not indicative of our normal operating results.
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 a better 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.
Adjusted EBITDA and adjusted operating income in the six-month period ended July 3, 2010 exclude net pre-tax gains of $0.3 million, including restructuring costs of $0.2 million, net of gains of $0.5 million from the sale of assets and a curtailment of a pension liability.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.
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Financial Highlights (unaudited)
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||||||||||||||||
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(In thousands, except per share amounts and percentages)
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||||||||||||||||
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Three Months Ended
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Six Months Ended
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|||||||||||||||
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Consolidated Statement of Income
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July 2, 2011
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July 3, 2010
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July 2, 2011
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July 3, 2010
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||||||||||||
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Revenues
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$ | 82,457 | $ | 69,136 | $ | 154,137 | $ | 130,257 | ||||||||
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Costs and Operating Expenses:
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Cost of revenues
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44,751 | 37,968 | 82,338 | 72,214 | ||||||||||||
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Selling, general, and administrative expenses
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25,821 | 22,681 | 50,294 | 43,805 | ||||||||||||
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Research and development expenses
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1,403 | 1,206 | 2,715 | 2,578 | ||||||||||||
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Restructuring costs and other income, net (a)
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- | (21 | ) | - | (323 | ) | ||||||||||
| 71,975 | 61,834 | 135,347 | 118,274 | |||||||||||||
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Operating Income
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10,482 | 7,302 | 18,790 | 11,983 | ||||||||||||
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Interest Income
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122 | 32 | 221 | 70 | ||||||||||||
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Interest Expense
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(299 | ) | (339 | ) | (556 | ) | (697 | ) | ||||||||
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Income from Continuing Operations before Provision
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for Income Taxes
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10,305 | 6,995 | 18,455 | 11,356 | ||||||||||||
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Provision for Income Taxes
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2,927 | 1,717 | 5,200 | 2,433 | ||||||||||||
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Income from Continuing Operations
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7,378 | 5,278 | 13,255 | 8,923 | ||||||||||||
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Loss from Discontinued Operation, Net of Tax
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(5 | ) | (5 | ) | (9 | ) | (9 | ) | ||||||||
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Net Income
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7,373 | 5,273 | 13,246 | 8,914 | ||||||||||||
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Net Income Attributable to Noncontrolling Interest
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(69 | ) | (53 | ) | (151 | ) | (83 | ) | ||||||||
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Net Income Attributable to Kadant
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$ | 7,304 | $ | 5,220 | $ | 13,095 | $ | 8,831 | ||||||||
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Amounts Attributable to Kadant:
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||||||||||||||||
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Income from Continuing Operations
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$ | 7,309 | $ | 5,225 | $ | 13,104 | $ | 8,840 | ||||||||
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Loss from Discontinued Operation, Net of Tax
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(5 | ) | (5 | ) | (9 | ) | (9 | ) | ||||||||
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Net Income Attributable to Kadant
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$ | 7,304 | $ | 5,220 | $ | 13,095 | $ | 8,831 | ||||||||
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Earnings per Share from Continuing Operations
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||||||||||||||||
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Attributable to Kadant:
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Basic
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$ | .59 | $ | .42 | $ | 1.07 | $ | .71 | ||||||||
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Diluted
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$ | .59 | $ | .42 | $ | 1.05 | $ | .71 | ||||||||
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Earnings per Share Attributable to Kadant:
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Basic
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$ | .59 | $ | .42 | $ | 1.07 | $ | .71 | ||||||||
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Diluted
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$ | .59 | $ | .42 | $ | 1.05 | $ | .71 | ||||||||
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Weighted Average Shares:
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Basic
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12,321 | 12,426 | 12,294 | 12,418 | ||||||||||||
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Diluted
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12,477 | 12,549 | 12,442 | 12,521 | ||||||||||||
-more-
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Increase
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|||||||||||||||||
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(Decrease)
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Excluding Effect
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Three Months Ended
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Increase
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of Currency
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|||||||||||||||
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Revenues by Product Line
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July 2, 2011
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July 3, 2010
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(Decrease)
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Translation (b,c)
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|||||||||||||
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Stock-Preparation
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$ | 32,320 | $ | 25,004 | $ | 7,316 | $ | 5,635 | |||||||||
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Fluid-Handling
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24,471 | 20,070 | 4,401 | 2,637 | |||||||||||||
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Doctoring
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13,694 | 12,711 | 983 | 267 | |||||||||||||
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Water-Management
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8,515 | 8,567 | (52 | ) | (435 | ) | |||||||||||
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Other
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621 | 601 | 20 | (22 | ) | ||||||||||||
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Papermaking Systems Segment
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79,621 | 66,953 | 12,668 | 8,082 | |||||||||||||
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Fiber-based Products
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2,836 | 2,183 | 653 | 653 | |||||||||||||
| $ | 82,457 | $ | 69,136 | $ | 13,321 | $ | 8,735 | ||||||||||
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Increase
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|||||||||||||||||
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(Decrease)
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|||||||||||||||||
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Excluding Effect
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|||||||||||||||||
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Six Months Ended
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of Currency
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||||||||||||||||
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July 2, 2011
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July 3, 2010
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Increase
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Translation (b,c)
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||||||||||||||
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Stock-Preparation
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$ | 55,643 | $ | 42,759 | $ | 12,884 | $ | 11,015 | |||||||||
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Fluid-Handling
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47,104 | 40,135 | 6,969 | 4,740 | |||||||||||||
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Doctoring
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27,757 | 25,206 | 2,551 | 1,675 | |||||||||||||
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Water-Management
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15,330 | 15,071 | 259 | (232 | ) | ||||||||||||
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Other
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1,321 | 1,251 | 70 | (10 | ) | ||||||||||||
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Papermaking Systems Segment
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147,155 | 124,422 | 22,733 | 17,188 | ||||||||||||
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Fiber-based Products
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6,982 | 5,835 | 1,147 | 1,147 | |||||||||||||
| $ | 154,137 | $ | 130,257 | $ | 23,880 | $ | 18,335 | ||||||||||
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Increase
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|||||||||||||||||
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(Decrease)
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|||||||||||||||||
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Excluding Effect
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|||||||||||||||||
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Three Months Ended
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Increase
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of Currency
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|||||||||||||||
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Sequential Revenues by Product Line
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July 2, 2011
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April 2, 2011
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(Decrease)
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Translation (b,c)
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|||||||||||||
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Stock-Preparation
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$ | 32,320 | $ | 23,323 | $ | 8,997 | $ | 8,379 | |||||||||
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Fluid-Handling
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24,471 | 22,633 | 1,838 | 1,180 | |||||||||||||
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Doctoring
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13,694 | 14,063 | (369 | ) | (598 | ) | |||||||||||
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Water-Management
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8,515 | 6,815 | 1,700 | 1,577 | |||||||||||||
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Other
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621 | 700 | (79 | ) | (97 | ) | |||||||||||
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Papermaking Systems Segment
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79,621 | 67,534 | 12,087 | 10,441 | |||||||||||||
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Fiber-based Products
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2,836 | 4,146 | (1,310 | ) | (1,310 | ) | |||||||||||
| $ | 82,457 | $ | 71,680 | $ | 10,777 | $ | 9,131 | ||||||||||
-more-
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Increase
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||||||||||||||||
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(Decrease)
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||||||||||||||||
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Excluding Effect
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||||||||||||||||
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Three Months Ended
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of Currency
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||||||||||||||
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Revenues by Geography (d,e)
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July 2, 2011
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July 3, 2010
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Increase
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Translation (b,c)
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||||||||||||
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North America
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$ | 38,128 | $ | 38,085 | $ | 43 | $ | (348 | ) | |||||||
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Europe
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25,286 | 20,404 | 4,882 | 1,847 | ||||||||||||
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China
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15,689 | 8,501 | 7,188 | 6,414 | ||||||||||||
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South America
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2,681 | 1,626 | 1,055 | 785 | ||||||||||||
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Australia
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673 | 520 | 153 | 37 | ||||||||||||
| $ | 82,457 | $ | 69,136 | $ | 13,321 | $ | 8,735 | |||||||||
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Increase
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||||||||||||||||
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Excluding Effect
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||||||||||||||||
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Six Months Ended
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of Currency
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|||||||||||||||
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July 2, 2011
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July 3, 2010
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Increase
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Translation (b,c)
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|||||||||||||
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North America
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$ | 77,414 | $ | 71,455 | $ | 5,959 | $ | 5,253 | ||||||||
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Europe
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46,551 | 41,365 | 5,186 | 2,092 | ||||||||||||
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China
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24,466 | 13,854 | 10,612 | 9,437 | ||||||||||||
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South America
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4,264 | 2,717 | 1,547 | 1,172 | ||||||||||||
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Australia
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1,442 | 866 | 576 | 381 | ||||||||||||
| $ | 154,137 | $ | 130,257 | $ | 23,880 | $ | 18,335 | |||||||||
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Increase
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||||||||||||||||
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(Decrease)
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||||||||||||||||
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Excluding Effect
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||||||||||||||||
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Three Months Ended
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Increase
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of Currency
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||||||||||||||
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Sequential Revenues by Geography (d,e)
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July 2, 2011
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April 2, 2011
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(Decrease)
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Translation (b,c)
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||||||||||||
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North America
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$ | 38,128 | $ | 39,286 | $ | (1,158 | ) | $ | (1,305 | ) | ||||||
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Europe
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25,286 | 21,265 | 4,021 | 2,867 | ||||||||||||
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China
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15,689 | 8,777 | 6,912 | 6,711 | ||||||||||||
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South America
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2,681 | 1,583 | 1,098 | 991 | ||||||||||||
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Australia
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673 | 769 | (96 | ) | (133 | ) | ||||||||||
| $ | 82,457 | $ | 71,680 | $ | 10,777 | $ | 9,131 | |||||||||
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Three Months Ended
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Six Months Ended
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|||||||||||||||
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Business Segment Information
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July 2, 2011
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July 3, 2010
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July 2, 2011
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July 3, 2010
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Revenues:
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Papermaking Systems
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$ | 79,621 | $ | 66,953 | $ | 147,155 | $ | 124,422 | ||||||||
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Fiber-based Products
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2,836 | 2,183 | 6,982 | 5,835 | ||||||||||||
| $ | 82,457 | $ | 69,136 | $ | 154,137 | $ | 130,257 | |||||||||
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Gross Profit Margin:
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Papermaking Systems
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45.3 | % | 44.9 | % | 46.3 | % | 44.3 | % | ||||||||
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Fiber-based Products
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56.6 | % | 50.8 | % | 53.2 | % | 50.8 | % | ||||||||
| 45.7 | % | 45.1 | % | 46.6 | % | 44.6 | % | |||||||||
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Operating Income:
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||||||||||||||||
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Papermaking Systems
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$ | 13,073 | $ | 10,895 | $ | 23,770 | $ | 17,199 | ||||||||
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Corporate and Fiber-based Products
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(2,591 | ) | (3,593 | ) | (4,980 | ) | (5,216 | ) | ||||||||
| $ | 10,482 | $ | 7,302 | $ | 18,790 | $ | 11,983 | |||||||||
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Adjusted Operating Income (c,f):
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||||||||||||||||
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Papermaking Systems
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$ | 13,073 | $ | 10,874 | $ | 23,770 | $ | 16,876 | ||||||||
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Corporate and Fiber-based Products
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(2,591 | ) | (3,593 | ) | (4,980 | ) | (5,216 | ) | ||||||||
| $ | 10,482 | $ | 7,281 | $ | 18,790 | $ | 11,660 | |||||||||
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Bookings from Continuing Operations:
|
||||||||||||||||
|
Papermaking Systems
|
$ | 85,564 | $ | 72,811 | $ | 165,832 | $ | 139,779 | ||||||||
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Fiber-based Products
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1,777 | 1,445 | 5,808 | 4,664 | ||||||||||||
| $ | 87,341 | $ | 74,256 | $ | 171,640 | $ | 144,443 | |||||||||
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Capital Expenditures from Continuing Operations:
|
||||||||||||||||
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Papermaking Systems
|
$ | 2,746 | $ | 534 | $ | 3,910 | $ | 1,060 | ||||||||
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Corporate and Fiber-based Products
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54 | 219 | 54 | 232 | ||||||||||||
| $ | 2,800 | $ | 753 | $ | 3,964 | $ | 1,292 | |||||||||
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Three Months Ended
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Six Months Ended
|
|||||||||||||||
|
Cash Flow and Other Data from Continuing Operations
|
July 2, 2011
|
July 3, 2010
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July 2, 2011
|
July 3, 2010
|
||||||||||||
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Cash Provided by Operations
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$ | 6,839 | $ | 8,963 | $ | 7,206 | $ | 8,408 | ||||||||
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Depreciation and Amortization Expense
|
1,982 | 1,697 | 3,847 | 3,355 | ||||||||||||
-more-
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Balance Sheet Data
|
|
|
July 2, 2011
|
Jan. 1, 2011
|
||||||||||||
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Assets
|
||||||||||||||||
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Cash and Cash Equivalents
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$ | 43,912 | $ | 61,805 | ||||||||||||
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Restricted Cash
|
2,173 | - | ||||||||||||||
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Accounts Receivable, net
|
54,469 | 49,897 | ||||||||||||||
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Inventories
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60,950 | 41,628 | ||||||||||||||
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Unbilled Contract Costs and Fees
|
3,321 | 875 | ||||||||||||||
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Other Current Assets
|
11,416 | 9,402 | ||||||||||||||
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Property, Plant and Equipment, net
|
39,341 | 36,911 | ||||||||||||||
|
Intangible Assets
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32,477 | 26,793 | ||||||||||||||
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Goodwill
|
109,821 | 97,988 | ||||||||||||||
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Other Assets
|
10,821 | 11,473 | ||||||||||||||
| $ | 368,701 | $ | 336,772 | |||||||||||||
|
Liabilities and Shareholders' Investment
|
||||||||||||||||
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Accounts Payable
|
$ | 27,008 | $ | 23,756 | ||||||||||||
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Short- and Long-term Debt
|
17,500 | 22,750 | ||||||||||||||
|
Other Liabilities
|
95,796 | 82,965 | ||||||||||||||
|
Total Liabilities
|
$ | 140,304 | $ | 129,471 | ||||||||||||
|
Shareholders' Investment
|
$ | 228,397 | $ | 207,301 | ||||||||||||
| $ | 368,701 | $ | 336,772 | |||||||||||||
|
Adjusted Operating Income and Adjusted EBITDA
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
Reconciliation
|
July 2, 2011
|
July 3, 2010
|
July 2, 2011
|
July 3, 2010
|
||||||||||||
|
Consolidated
|
||||||||||||||||
|
Net Income Attributable to Kadant
|
$ | 7,304 | $ | 5,220 | $ | 13,095 | $ | 8,831 | ||||||||
|
Net Income Attributable to Noncontrolling Interest
|
69 | 53 | 151 | 83 | ||||||||||||
|
Loss from Discontinued Operation, Net of Tax
|
5 | 5 | 9 | 9 | ||||||||||||
|
Provision for Income Taxes
|
2,927 | 1,717 | 5,200 | 2,433 | ||||||||||||
|
Interest Expense, net
|
177 | 307 | 335 | 627 | ||||||||||||
|
Restructuring costs and other income, net (a)
|
- | (21 | ) | - | (323 | ) | ||||||||||
|
Adjusted Operating Income (c)
|
10,482 | 7,281 | 18,790 | 11,660 | ||||||||||||
|
Depreciation and Amortization
|
1,982 | 1,697 | 3,847 | 3,355 | ||||||||||||
|
Adjusted EBITDA (c)
|
$ | 12,464 | $ | 8,978 | $ | 22,637 | $ | 15,015 | ||||||||
|
Papermaking Systems
|
||||||||||||||||
|
Operating Income
|
$ | 13,073 | $ | 10,895 | $ | 23,770 | $ | 17,199 | ||||||||
|
Restructuring costs and other income, net (a)
|
- | (21 | ) | - | (323 | ) | ||||||||||
|
Adjusted Operating Income (c)
|
13,073 | 10,874 | 23,770 | 16,876 | ||||||||||||
|
Depreciation and Amortization
|
1,860 | 1,578 | 3,604 | 3,119 | ||||||||||||
|
Adjusted EBITDA (c)
|
$ | 14,933 | $ | 12,452 | $ | 27,374 | $ | 19,995 | ||||||||
|
Corporate and Fiber-based Products
|
||||||||||||||||
|
Operating Loss
|
$ | (2,591 | ) | $ | (3,593 | ) | $ | (4,980 | ) | $ | (5,216 | ) | ||||
|
Depreciation and Amortization
|
122 | 119 | 243 | 236 | ||||||||||||
|
EBITDA (c)
|
$ | (2,469 | ) | $ | (3,474 | ) | $ | (4,737 | ) | $ | (4,980 | ) | ||||
|
(a)
|
Includes pre-tax restructuring costs of $198, net of a pre-tax gain of $219, in the three-month period ended July 3, 2010
|
|||||||||
|
and pre-tax restructuring costs of $181, net of a pre-tax gain of $504, in the six-month period ended July 3, 2010.
|
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|
(b)
|
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.
|
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|
(c)
|
Represents a non-GAAP financial measure.
|
|||||||||
-more-
|
(d)
|
Geographic revenues data is attributed to regions based on selling locations. For North America and China, this also
|
|||||||||
|
approximates revenues based on where the equipment is shipped to and installed. Our European geographic data,
|
||||||||||
|
however, includes revenues shipped to and installed outside of Europe, including South America, Africa, the Middle East,
|
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|
and certain countries in Asia (excluding China).
|
||||||||||
|
|
(e)
|
Prior period amounts have been restated to include the Fiber-based Products revenues within North America.
|
||||||||
|
(f)
|
See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and
|
|||||||||
|
Adjusted EBITDA Reconciliation."
|
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About Kadant
Kadant is a leading supplier to the global pulp and paper industry. Our stock-preparation, fluid-handling, doctoring, and water-management equipment and systems are designed to increase efficiency and improve quality in pulp and paper production. Many of our products, particularly in our fluid-handling product line, are also used to optimize production in other process industries. In addition, we produce granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Westford, Massachusetts, with revenues of $270 million in 2010 and 1,600 employees in 16 countries worldwide. For more information, visit www.kadant.com.
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 expected future financial and operating performance and demand for our products. 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 April 2, 2011. 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; our ability to expand capacity in China to meet demand; commodity and component price increases or shortages; international sales and operations; competition; soundness of suppliers and customers; our effective tax rate; future restructurings; soundness of financial institutions; our debt obligations; restrictions in our credit agreement; litigation and warranty costs related to our discontinued operation; our acquisition strategy; protection of patents and proprietary rights; 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.
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