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): April 22, 2020
(Exact name of registrant as specified in its charter)
Commission file number 001-11406
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
(Address of principal executive offices, including zip code)
(978 ) 776-2000
(Registrant's telephone number, including area code)
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)) | ||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
KADANT INC.
Item 7.01 Regulation FD Disclosure.
On April 22, 2020, Kadant Inc. ("the Company") announced the realignment of its current operating segments by combining its operating entities into three new reportable operating segments. Consistent with the Company’s strategic initiatives to grow both organically and through acquisitions, these segment changes reflect how the Company has grown and diversified over the last several years. Such growth and diversification have resulted in a change in how the chief operating decision maker makes operating decisions, assesses the performance of the business, and allocates resources. The three new reportable operating segments are Flow Control, Industrial Processing, and Material Handling. The Flow Control segment consists of the Company’s fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the Company’s wood processing and stock-preparation product lines (excluding baling products); and the Material Handling segment consists of the Company’s conveying and screening, baling, and fiber-based product lines. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The Company’s reporting of its first quarter 2020 results will reflect these three new reportable segments. To assist in the analysis and understanding of the Company’s new reportable segment structure, furnished in this Current Report on Form 8-K as Exhibit 99.2, is a financial schedule of unaudited selected financial data for each of the four quarters and full year of 2019 and 2018 and the full year of 2017 recast to reflect the new reportable operating segments.
In addition to the financial measures included in the financial schedule prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures, including adjusted operating income, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), and adjusted EBITDA margin. The Company believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company's performance by excluding certain items that may not be indicative of its core business, operating results, or future outlook. The Company believes that the inclusion of such measures helps investors to gain an understanding of its underlying operating performance and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts and to the performance of its competitors. Such measures are also used by the Company in its financial and operating decision-making and for compensation purposes. The Company also believes this information is responsive to investors' requests and gives them an additional measure of its performance. The non-GAAP financial measures included in the financial schedule 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 the financial schedule 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.
The information in Item 7.01 of this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (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.
(d) Exhibits | ||
The following exhibits relating to Item 7.01 shall be deemed to be furnished and not filed. | ||
Exhibit No. | Description of Exhibits | |
99.1 | ||
99.2 | ||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
2
KADANT INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KADANT INC. | ||
Date: April 22, 2020 | By | /s/ Michael J. McKenney |
Michael J. McKenney Executive Vice President and Chief Financial Officer | ||
3
Exhibit 99.1
KADANT INC.
One Technology Park Drive
Westford, MA 01886
NEWS
Kadant Announces Change in Operating Segments
to Better Reflect Strategic Focus
WESTFORD, Mass., April 22, 2020 – Kadant Inc. (NYSE: KAI) today announced the realignment of its current operating segments by combining its operating entities into three new reportable operating segments. Consistent with the Company’s strategic initiatives to grow both organically and through acquisitions, these segment changes reflect how the Company has grown and diversified over the last several years. The three new reportable operating segments are Flow Control, Industrial Processing, and Material Handling.
The Flow Control segment consists of the Company’s fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the Company’s wood processing and stock-preparation product lines; and the Material Handling segment consists of the Company’s conveying and screening, baling, and fiber-based product lines.
“We believe these segments better reflect the strategic focus and growth initiatives we have pursued over the past decade,” commented Jeffrey L. Powell, president and chief executive officer of Kadant. “These new segments will allow us to more effectively communicate our strategic initiatives and performance across our business. Our new Flow Control segment is an excellent example of moving from a vertical segment like papermaking to one that reflects our presence in a number of process industries, including packaging, food processing, and metals, among others.”
The Company’s reporting of its first quarter 2020 results will reflect these three new reportable segments. To assist in the analysis and understanding of the new reportable segment structure, the Company will be filing in a Current Report on Form 8-K a financial schedule of unaudited selected financial data for each of the four quarters and full year of 2019 and 2018 and the full year of 2017 recast to reflect the new reportable operating segments. These changes have no impact on the Company’s previously reported consolidated balance sheet, statement of income, or cash flows.
About Kadant
Kadant Inc. 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 approximately 2,800 employees in 20 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 business, financial statements, customers, products, technologies, and markets. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to 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 December 28, 2019 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; our customers’ ability to obtain financing for capital equipment projects; international sales and operations; health epidemics; changes to government regulations and policies around the world; policies of the Chinese
government; the variability and uncertainties in sales of capital equipment in China; levels of residential construction activity; reductions by our wood processing customers of their capital spending or production of oriented strand board; changes to the global timber supply; cyclical economic conditions affecting the global mining industry; development and use of digital media; currency fluctuations; demand for coal, including economic and environmental risks associated with coal; price increases or shortages of raw materials; dependence on certain suppliers; our acquisition strategy; failure of our information systems or breaches of data security and cybertheft; compliance with government regulations and policies and compliance with laws; implementation of our internal growth strategy; competition; soundness of suppliers and customers; changes in our tax provision or exposure to additional tax liabilities; our ability to successfully manage our manufacturing operations; disruption in production; future restructurings; economic conditions and regulatory changes caused by the United Kingdom’s exit from the European Union; our debt obligations; restrictions in our credit agreement and note purchase agreement; substitution of an alternative index for LIBOR; loss of key personnel and effective succession planning; protection of intellectual property; fluctuations in our share price; soundness of financial institutions; environmental laws and regulations; climate change; environmental, health and safety laws and regulations; adequacy of our insurance coverage; anti-takeover provisions; and reliance on third-party research.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
IR@kadant.com
or
Media Contact Information:
Wes Martz, 269-278-1715
media@kadant.com
Exhibit 99.2
Kadant Inc. | ||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Selected Financial Data | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | ||||||||||||||||||||||||||||||||||||||||||||
Ended | Three Months Ended | Ended | Three Months Ended | Ended | ||||||||||||||||||||||||||||||||||||||||||
Dec. 28, 2019 | Dec. 28, 2019 | Sept. 28, 2019 | June 29, 2019 | March 30, 2019 | Dec. 29, 2018 | Dec. 29, 2018 | Sept. 29, 2018 | June 30, 2018 | March 31, 2018 | Dec. 30, 2017 | ||||||||||||||||||||||||||||||||||||
Revenue by Segment | ||||||||||||||||||||||||||||||||||||||||||||||
Flow Control | $ | 250,339 | $ | 61,547 | $ | 62,375 | $ | 65,273 | $ | 61,144 | $ | 247,966 | $ | 61,997 | $ | 63,787 | $ | 62,074 | $ | 60,108 | $ | 213,767 | ||||||||||||||||||||||||
Industrial Processing | 301,948 | 79,049 | 74,229 | 76,396 | 72,274 | 314,229 | 85,519 | 85,217 | 72,352 | 71,141 | 232,133 | |||||||||||||||||||||||||||||||||||
Material Handling | 152,357 | 42,063 | 36,900 | 35,496 | 37,898 | 71,591 | 16,419 | 16,741 | 20,487 | 17,944 | 69,133 | |||||||||||||||||||||||||||||||||||
$ | 704,644 | $ | 182,659 | $ | 173,504 | $ | 177,165 | $ | 171,316 | $ | 633,786 | $ | 163,935 | $ | 165,745 | $ | 154,913 | $ | 149,193 | $ | 515,033 | |||||||||||||||||||||||||
Bookings by Segment | ||||||||||||||||||||||||||||||||||||||||||||||
Flow Control | $ | 241,220 | $ | 56,974 | $ | 58,817 | $ | 60,694 | $ | 64,735 | $ | 257,771 | $ | 63,805 | $ | 57,459 | $ | 68,406 | $ | 68,101 | $ | 223,510 | ||||||||||||||||||||||||
Industrial Processing | 290,881 | 61,874 | 74,928 | 75,008 | 79,071 | 341,034 | 66,836 | 92,191 | 89,275 | 92,732 | 226,535 | |||||||||||||||||||||||||||||||||||
Material Handling | 156,184 | 40,935 | 37,185 | 38,258 | 39,806 | 71,622 | 16,446 | 15,350 | 18,739 | 21,087 | 71,136 | |||||||||||||||||||||||||||||||||||
$ | 688,285 | $ | 159,783 | $ | 170,930 | $ | 173,960 | $ | 183,612 | $ | 670,427 | $ | 147,087 | $ | 165,000 | $ | 176,420 | $ | 181,920 | $ | 521,181 | |||||||||||||||||||||||||
Gross Margin | ||||||||||||||||||||||||||||||||||||||||||||||
Flow Control | 51.4 | % | 50.5 | % | 52.9 | % | 51.0 | % | 51.2 | % | 50.8 | % | 48.9 | % | 50.2 | % | 51.9 | % | 52.2 | % | 52.2 | % | ||||||||||||||||||||||||
Industrial Processing | 38.3 | % | 36.2 | % | 38.7 | % | 39.4 | % | 38.9 | % | 40.1 | % | 40.2 | % | 41.3 | % | 39.6 | % | 39.0 | % | 40.2 | % | ||||||||||||||||||||||||
Material Handling | 32.5 | % | 35.6 | % | 34.0 | % | 30.9 | % | 29.3 | % | 36.8 | % | 37.7 | % | 35.3 | % | 35.7 | % | 38.6 | % | 38.2 | % | ||||||||||||||||||||||||
41.7 | % | 40.9 | % | 42.8 | % | 42.0 | % | 41.2 | % | 43.9 | % | 43.3 | % | 44.1 | % | 44.0 | % | 44.3 | % | 44.9 | % | |||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||||||||||||||||
Flow Control | $ | 55,343 | $ | 12,123 | $ | 15,103 | $ | 15,133 | $ | 12,984 | $ | 52,928 | $ | 12,258 | $ | 14,542 | $ | 13,773 | $ | 12,355 | $ | 44,366 | ||||||||||||||||||||||||
Industrial Processing | 49,599 | 10,769 | 13,107 | 13,869 | 11,854 | 57,355 | 18,532 | 18,601 | 11,027 | 9,195 | 33,300 | |||||||||||||||||||||||||||||||||||
Material Handling | 11,600 | 6,085 | 3,525 | 1,259 | 731 | 8,077 | 2,022 | 1,563 | 2,333 | 2,159 | 9,238 | |||||||||||||||||||||||||||||||||||
Corporate | (28,719 | ) | (7,424 | ) | (7,182 | ) | (7,119 | ) | (6,994 | ) | (29,762 | ) | (7,988 | ) | (7,331 | ) | (7,398 | ) | (7,045 | ) | (25,279 | ) | ||||||||||||||||||||||||
$ | 87,823 | $ | 21,553 | $ | 24,553 | $ | 23,142 | $ | 18,575 | $ | 88,598 | $ | 24,824 | $ | 27,375 | $ | 19,735 | $ | 16,664 | $ | 61,625 | |||||||||||||||||||||||||
Adjusted Operating Income (a, f) | ||||||||||||||||||||||||||||||||||||||||||||||
Flow Control | $ | 55,343 | $ | 12,123 | $ | 15,103 | $ | 15,133 | $ | 12,984 | $ | 52,928 | $ | 12,258 | $ | 14,542 | $ | 13,773 | $ | 12,355 | $ | 45,264 | ||||||||||||||||||||||||
Industrial Processing | 52,127 | 13,297 | 13,107 | 13,869 | 11,854 | 59,324 | 18,532 | 18,979 | 11,596 | 10,217 | 44,666 | |||||||||||||||||||||||||||||||||||
Material Handling | 17,315 | 6,105 | 3,546 | 2,782 | 4,882 | 8,077 | 2,022 | 1,563 | 2,333 | 2,159 | 9,127 | |||||||||||||||||||||||||||||||||||
Corporate | (28,719 | ) | (7,424 | ) | (7,182 | ) | (7,119 | ) | (6,994 | ) | (28,441 | ) | (6,667 | ) | (7,331 | ) | (7,398 | ) | (7,045 | ) | (25,279 | ) | ||||||||||||||||||||||||
$ | 96,066 | $ | 24,101 | $ | 24,574 | $ | 24,665 | $ | 22,726 | $ | 91,888 | $ | 26,145 | $ | 27,753 | $ | 20,304 | $ | 17,686 | $ | 73,778 | |||||||||||||||||||||||||
Capital Expenditures | ||||||||||||||||||||||||||||||||||||||||||||||
Flow Control | $ | 2,639 | $ | 825 | $ | 636 | $ | 707 | $ | 471 | $ | 2,791 | $ | 920 | $ | 948 | $ | 546 | $ | 377 | $ | 2,300 | ||||||||||||||||||||||||
Industrial Processing | 5,113 | 1,890 | 1,053 | 807 | 1,363 | 12,288 | 2,270 | 1,303 | 4,226 | 4,489 | 13,833 | |||||||||||||||||||||||||||||||||||
Material Handling | 2,144 | 999 | 397 | 415 | 333 | 1,312 | 479 | 268 | 288 | 277 | 1,004 | |||||||||||||||||||||||||||||||||||
Corporate | 61 | 7 | 7 | 46 | 1 | 168 | 73 | 87 | — | 8 | 144 | |||||||||||||||||||||||||||||||||||
$ | 9,957 | $ | 3,721 | $ | 2,093 | $ | 1,975 | $ | 2,168 | $ | 16,559 | $ | 3,742 | $ | 2,606 | $ | 5,060 | $ | 5,151 | $ | 17,281 | |||||||||||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | ||||||||||||||||||||||||||||||||||||||||||||
Ended | Three Months Ended | Ended | Three Months Ended | Ended | ||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted EBITDA Reconciliation | Dec. 28, 2019 | Dec. 28, 2019 | Sept. 28, 2019 | June 29, 2019 | March 30, 2019 | Dec. 29, 2018 | Dec. 29, 2018 | Sept. 29, 2018 | June 30, 2018 | March 31, 2018 | Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Kadant | $ | 52,068 | $ | 8,749 | $ | 16,115 | $ | 16,304 | $ | 10,900 | $ | 60,413 | $ | 18,422 | $ | 18,784 | $ | 12,349 | $ | 10,858 | $ | 31,092 | ||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | 496 | 136 | 98 | 97 | 165 | 633 | 146 | 195 | 142 | 150 | 491 | |||||||||||||||||||||||||||||||||||
Provision for Income Taxes | 16,358 | 4,048 | 5,219 | 3,128 | 3,963 | 18,482 | 2,907 | 6,443 | 5,271 | 3,861 | 26,070 | |||||||||||||||||||||||||||||||||||
Interest Expense, Net | 12,542 | 2,557 | 3,023 | 3,514 | 3,448 | 6,653 | 1,668 | 1,708 | 1,728 | 1,549 | 3,100 | |||||||||||||||||||||||||||||||||||
Other Expense, Net (b) | 6,359 | 6,063 | 98 | 99 | 99 | 2,417 | 1,681 | 245 | 245 | 246 | 872 | |||||||||||||||||||||||||||||||||||
Operating Income | 87,823 | 21,553 | 24,553 | 23,142 | 18,575 | 88,598 | 24,824 | 27,375 | 19,735 | 16,664 | 61,625 | |||||||||||||||||||||||||||||||||||
Impairment and Restructuring Costs (c) | 2,528 | 2,528 | — | — | — | 1,717 | — | 378 | 569 | 770 | 203 | |||||||||||||||||||||||||||||||||||
Acquisition Costs | 843 | — | — | — | 843 | 1,321 | 1,321 | — | — | — | 5,375 | |||||||||||||||||||||||||||||||||||
Acquired Backlog Amortization (d) | 1,323 | 20 | 21 | 284 | 998 | 252 | — | — | — | 252 | 1,438 | |||||||||||||||||||||||||||||||||||
Acquired Profit in Inventory (e) | 3,549 | — | — | 1,239 | 2,310 | — | — | — | — | — | 5,137 | |||||||||||||||||||||||||||||||||||
Adjusted Operating Income (f) | 96,066 | 24,101 | 24,574 | 24,665 | 22,726 | 91,888 | 26,145 | 27,753 | 20,304 | 17,686 | 73,778 | |||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 31,067 | 8,066 | 7,742 | 8,026 | 7,233 | 23,316 | 5,829 | 5,796 | 5,844 | 5,847 | 17,937 | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA (f) | $ | 127,133 | $ | 32,167 | $ | 32,316 | $ | 32,691 | $ | 29,959 | $ | 115,204 | $ | 31,974 | $ | 33,549 | $ | 26,148 | $ | 23,533 | $ | 91,715 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (f,g) | 18.0 | % | 17.6 | % | 18.6 | % | 18.5 | % | 17.5 | % | 18.2 | % | 19.5 | % | 20.2 | % | 16.9 | % | 15.8 | % | 17.8 | % | ||||||||||||||||||||||||
Flow Control | ||||||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 55,343 | $ | 12,123 | $ | 15,103 | $ | 15,133 | $ | 12,984 | $ | 52,928 | $ | 12,258 | $ | 14,542 | $ | 13,773 | $ | 12,355 | $ | 44,366 | ||||||||||||||||||||||||
Acquisition Costs | — | — | — | — | — | — | — | — | — | — | 722 | |||||||||||||||||||||||||||||||||||
Acquired Profit in Inventory (e) | — | — | — | — | — | — | — | — | — | — | 176 | |||||||||||||||||||||||||||||||||||
Adjusted Operating Income (f) | 55,343 | 12,123 | 15,103 | 15,133 | 12,984 | 52,928 | 12,258 | 14,542 | 13,773 | 12,355 | 45,264 | |||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 6,603 | 1,780 | 1,629 | 1,608 | 1,586 | 5,971 | 1,492 | 1,488 | 1,486 | 1,505 | 4,954 | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA (f) | $ | 61,946 | $ | 13,903 | $ | 16,732 | $ | 16,741 | $ | 14,570 | $ | 58,899 | $ | 13,750 | $ | 16,030 | $ | 15,259 | $ | 13,860 | $ | 50,218 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (f,g) | 24.7 | % | 22.6 | % | 26.8 | % | 25.6 | % | 23.8 | % | 23.8 | % | 22.2 | % | 25.1 | % | 24.6 | % | 23.1 | % | 23.5 | % | ||||||||||||||||||||||||
Industrial Processing | ||||||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 49,599 | $ | 10,769 | $ | 13,107 | $ | 13,869 | $ | 11,854 | $ | 57,355 | $ | 18,532 | $ | 18,601 | $ | 11,027 | $ | 9,195 | $ | 33,300 | ||||||||||||||||||||||||
Impairment and Restructuring Costs (c) | 2,528 | 2,528 | — | — | — | 1,717 | — | 378 | 569 | 770 | 203 | |||||||||||||||||||||||||||||||||||
Acquisition Costs | — | — | — | — | — | — | — | — | — | — | 4,764 | |||||||||||||||||||||||||||||||||||
Acquired Backlog Amortization (d) | — | — | — | — | — | 252 | — | — | — | 252 | 1,438 | |||||||||||||||||||||||||||||||||||
Acquired Profit in Inventory (e) | — | — | — | — | — | — | — | — | — | — | 4,961 | |||||||||||||||||||||||||||||||||||
Adjusted Operating Income (f) | 52,127 | 13,297 | 13,107 | 13,869 | 11,854 | 59,324 | 18,532 | 18,979 | 11,596 | 10,217 | 44,666 | |||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 13,012 | 3,281 | 3,249 | 3,238 | 3,244 | 13,408 | 3,352 | 3,351 | 3,375 | 3,330 | 9,072 | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA (f) | $ | 65,139 | $ | 16,578 | $ | 16,356 | $ | 17,107 | $ | 15,098 | $ | 72,732 | $ | 21,884 | $ | 22,330 | $ | 14,971 | $ | 13,547 | $ | 53,738 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (f,g) | 21.6 | % | 21.0 | % | 22.0 | % | 22.4 | % | 20.9 | % | 23.1 | % | 25.6 | % | 26.2 | % | 20.7 | % | 19.0 | % | 23.1 | % | ||||||||||||||||||||||||
Material Handling | ||||||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 11,600 | $ | 6,085 | $ | 3,525 | $ | 1,259 | $ | 731 | $ | 8,077 | $ | 2,022 | $ | 1,563 | $ | 2,333 | $ | 2,159 | $ | 9,238 | ||||||||||||||||||||||||
Acquisition Costs | 843 | — | — | — | 843 | — | — | — | — | — | (111 | ) | ||||||||||||||||||||||||||||||||||
Acquired Backlog Amortization (d) | 1,323 | 20 | 21 | 284 | 998 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Acquired Profit in Inventory (i) | 3,549 | — | — | 1,239 | 2,310 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Adjusted Operating Income (f) | 17,315 | 6,105 | 3,546 | 2,782 | 4,882 | 8,077 | 2,022 | 1,563 | 2,333 | 2,159 | 9,127 | |||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 11,205 | 2,946 | 2,801 | 3,115 | 2,343 | 3,756 | 939 | 911 | 938 | 968 | 3,762 | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA (f) | $ | 28,520 | $ | 9,051 | $ | 6,347 | $ | 5,897 | $ | 7,225 | $ | 11,833 | $ | 2,961 | $ | 2,474 | $ | 3,271 | $ | 3,127 | $ | 12,889 | ||||||||||||||||||||||||
Adjusted EBITDA Margin (f,g) | 18.7 | % | 21.5 | % | 17.2 | % | 16.6 | % | 19.1 | % | 16.5 | % | 18.0 | % | 14.8 | % | 16.0 | % | 17.4 | % | 18.6 | % | ||||||||||||||||||||||||
Twelve Months | Twelve Months | Twelve Months | ||||||||||||||||||||||||||||||||||||||||||||
Ended | Three Months Ended | Ended | Three Months Ended | Ended | ||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted EBITDA Reconciliation (continued) | Dec. 28, 2019 | Dec. 28, 2019 | Sept. 28, 2019 | June 29, 2019 | March 30, 2019 | Dec. 29, 2018 | Dec. 29, 2018 | Sept. 29, 2018 | June 30, 2018 | March 31, 2018 | Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||||||||
Operating Loss | $ | (28,719 | ) | $ | (7,424 | ) | $ | (7,182 | ) | $ | (7,119 | ) | $ | (6,994 | ) | $ | (29,762 | ) | $ | (7,988 | ) | $ | (7,331 | ) | $ | (7,398 | ) | $ | (7,045 | ) | $ | (25,279 | ) | |||||||||||||
Acquisition Costs | — | — | — | — | — | 1,321 | 1,321 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Adjusted Operating Loss (f) | (28,719 | ) | (7,424 | ) | (7,182 | ) | (7,119 | ) | (6,994 | ) | (28,441 | ) | (6,667 | ) | (7,331 | ) | (7,398 | ) | (7,045 | ) | (25,279 | ) | ||||||||||||||||||||||||
Depreciation and Amortization | 247 | 59 | 63 | 65 | 60 | 181 | 46 | 46 | 45 | 44 | 149 | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA (f) | $ | (28,472 | ) | $ | (7,365 | ) | $ | (7,119 | ) | $ | (7,054 | ) | $ | (6,934 | ) | $ | (28,260 | ) | $ | (6,621 | ) | $ | (7,285 | ) | $ | (7,353 | ) | $ | (7,001 | ) | $ | (25,130 | ) | |||||||||||||
(a) | See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation." | |||||||||||||||||||||||||||||||||||||||||||||
(b) | Includes a settlement loss of $5,887 ($6,352 after tax) in the fourth quarter of 2019 and a curtailment loss of $1,425 ($1,078 after tax) in the fourth quarter of 2018 associated with the termination of defined benefit plans at one of our U.S. operations. | |||||||||||||||||||||||||||||||||||||||||||||
(c) | Represents an intangible asset impairment charge of $2,336 ($1,765 after tax) and a restructuring charge of $192 ($140 after tax) in the fourth quarter of 2019 related to our Industrial Processing segment's timber-harvesting product line and restructuring charges of $1,717 ($1,308 after tax) in 2018 and $203 ($154 after tax) in 2017 related to our Industrial Processing segment's stock-preparation product line. | |||||||||||||||||||||||||||||||||||||||||||||
(d) | Represents intangible amortization expense associated with acquired backlog. | |||||||||||||||||||||||||||||||||||||||||||||
(e) | Represents expense within cost of revenues associated with amortization of acquired profit in inventory. | |||||||||||||||||||||||||||||||||||||||||||||
(f) | Represents a non-GAAP financial measure. | |||||||||||||||||||||||||||||||||||||||||||||
(g) | Calculated as adjusted EBITDA divided by revenue in each period. | |||||||||||||||||||||||||||||||||||||||||||||