Kadant Inc · NYSE:KAI

Kadant — Q1 2014 Earnings Presentation

27 slides from Kadant's earnings presentation, Apr 30, 2014

1. Slide 1: First Quarter 2014 Business Review

   First Quarter 2014 Business Review Jonathan W. Painter, President & CEOThomas M. O’Brien, Executive Vice President & CFO

2. Slide 2: Forward-Looking Statements

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of r

3. Slide 3: Use of Non-GAAP Financial Measures

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or de

4. Slide 4: Business Review

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. BUSINESS REVIEW Jonathan W. PainterPresident & CEO

5. Slide 5: Q1 2014 Financial Highlights

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Q1 2014 Financial Highlights ($ Millions, except per share amounts) Q1 2014 Q1 2013 % CHANGE Revenue $93.4 $76.2 22.5% Gross Margin 45.2% 47.3% n.m. Operating Income $7.6 $7.4 3.4% Net Income1 $5.1 $5.3 -4.4% Adjusted E

6. Slide 6: Q1 2014 Revenue By Product Line

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Q1 2014 Revenue By Product Line ($ Millions) Q1 2014 Q1 2013 % CHANGE EXCL. FX Stock-Preparation $26.2 $23.0 13.8% 12.1% Doctoring, Cleaning, & Filtration 27.0 25.9 4.4% 3.8% Fluid-Handling 25.0 23.5 6.2% 6.4% Wood Proc

7. Slide 7: Q1 2014 Bookings By Product Line

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Q1 2014 Bookings By Product Line Percent change calculated using actual numbers reported in our Q4 2013 earnings release dated February 19, 2014. ($ Millions) Q1 2014 Q1 2013 % CHANGE EXCL. FX Stock-Preparation $43.8 $3

8. Slide 8: Bookings and Revenues

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Bookings and Revenues US$ (millions)

9. Slide 9: Parts and Consumables Bookings and Revenues

   * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Parts and Consumables Bookings and Revenues US$ (millions)

10. Slide 10: Regional Performance

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. REGIONAL PERFORMANCE

11. Slide 11: North America Bookings and Revenues

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. North America Bookings and Revenues US$ (millions)

12. Slide 12: Europe Bookings and Revenues

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Europe Bookings and Revenues US$ (millions)

13. Slide 13: China Bookings and Revenues

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. China Bookings and Revenues US$ (millions) $36.2

14. Slide 14: South America Bookings and Revenues

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. South America Bookings and Revenues US$ (millions)

15. Slide 15: Guidance for Continuing Operations

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Guidance for Continuing Operations Q2 2014 GAAP diluted EPS of $0.66 to $0.68Q2 2014 revenues of $104 to $106 millionFY 2014 GAAP diluted EPS of $2.60 to $2.70FY 2014 revenues of $410 to $420 million

16. Slide 16: Financial Review

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. FINANCIAL REVIEW Thomas M. O’BrienExecutive Vice President & Chief Financial Officer

17. Slide 17: Quarterly Gross Margins

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Quarterly Gross Margins

18. Slide 18: Quarterly SG&A

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Quarterly SG&A

19. Slide 19: 1Q13 to 1Q14 Diluted EPS from Continuing Operations

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. 1Q13 to 1Q14 Diluted EPS from Continuing Operations

20. Slide 20: Cash Flow

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Cash Flow ($ Millions) 1Q14 1Q13 Income from Continuing Operations $5.2 $5.3 Depreciation and Amortization 3.0 2.0 Stock-Based Compensation 1.4 1.3 Other Items (0.5) (0.7) Change in Current Assets & Liabilities (excl. a

21. Slide 21: Key Working Capital Metrics

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Key Working Capital Metrics 1Q14 4Q13 1Q13 Days in Receivables 68 70 72 Days in Inventory 110 96 95 Days in Payables 46 48 51

22. Slide 22: Working Capital and Cash Conversion Days

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Working Capital and Cash Conversion Days 1Q14 4Q13 1Q13 Working Capital % LTM Revenues* 15.4% 16.6% 14.8% Cash Conversion Days** 132 days 118 days 116 days *Working Capital is defined as current assets less current liab

23. Slide 23: Cash and Debt

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Cash and Debt ($ Millions) 1Q13 4Q13 1Q13 Cash, cash equivalents, and restricted cash $57.2 $50.2 $58.4 Debt (42.9) (38.6) (6.6) Net Cash $14.3 $11.6 $51.8

24. Slide 24: Leverage Ratio

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Leverage Ratio * Calculated by adding or subtracting certain items, as required by our Credit Facility, from Adjusted EBITDA. Under our new Credit Facility entered into on August 3, 2012 total debt is defined as debt le

25. Slide 25: Questions & Answers

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Questions & Answers To ask a question, please call 877-703-6107 within the U.S. or +1-857-244-7306 outside the U.S. and reference 83375884. Please mute the audio on your computer.

26. Slide 26: Q1 2014 Key Take-Aways

    * KAI 1Q14 Business Review–April 30, 2014© 2014 Kadant Inc. All rights reserved. Q1 2014 Key Take-Aways Record bookings at $115 millionRecord parts and consumables revenues and bookings at $61 million and $66 million, respectivelyRecord adjusted EBITDA up 36% to $12.7 million or 14% of sales

27. Slide 27: First Quarter 2014 Business Review

    First Quarter 2014 Business Review Jonathan W. Painter, President & CEOThomas M. O’Brien, Executive Vice President & CFO

Kadant — Q1 2014 Earnings Presentation on 6ix