Kadant Inc · NYSE:KAI

Kadant — Q2 2014 Earnings Presentation

27 slides from Kadant's earnings presentation, Jul 29, 2014

  1. Slide 1: Second Quarter 2014 Business Review

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

  2. Slide 2: Forward-Looking Statements

    * KAI 2Q14 Business Review–July 29, 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 ri

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

    * KAI 2Q14 Business Review–July 29, 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 dec

  4. Slide 4: Business Review

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. BUSINESS REVIEW Jonathan W. PainterPresident & CEO

  5. Slide 5: Q2 2014 Financial Highlights

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Q2 2014 Financial Highlights ($ Millions, except per share amounts) Q2 2014 Q2 2013 % CHANGE Revenue $104.8 $82.2 27.6% Gross Margin 43.0% 48.6% n.m. Operating Income $12.0 $8.4 42.9% Adjusted Operating Income $12.7 $8.6

  6. Slide 6: Q2 2014 Revenue By Product Line

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Q2 2014 Revenue By Product Line ($ Millions) Q2 2014 Q2 2013 % CHANGE EXCL. FX Stock-Preparation $36.3 $28.5 27.2% 24.9% Doctoring, Cleaning, & Filtration 28.2 27.7 1.9% 1.3% Fluid-Handling 27.5 23.1 19.3% 17.6% Wood Pro

  7. Slide 7: Q2 2014 Bookings By Product Line

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Q2 2014 Bookings By Product Line Percent change calculated using actual numbers reported in our Q4 2013 earnings release dated February 19, 2014. ($ Millions) Q2 2014 Q2 2013 % CHANGE EXCL. FX Stock-Preparation $45.5 $28

  8. Slide 8: Bookings and Revenues

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Bookings and Revenues US$ (millions)

  9. Slide 9: Parts and Consumables Bookings and Revenues

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Parts and Consumables Bookings and Revenues US$ (millions)

  10. Slide 10: Regional Performance

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. REGIONAL PERFORMANCE

  11. Slide 11: North America Bookings and Revenues

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. North America Bookings and Revenues US$ (millions)

  12. Slide 12: Europe Bookings and Revenues

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Europe Bookings and Revenues US$ (millions)

  13. Slide 13: China Bookings and Revenues

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. China Bookings and Revenues US$ (millions)

  14. Slide 14: South America Bookings and Revenues

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. South America Bookings and Revenues US$ (millions)

  15. Slide 15: Guidance for Continuing Operations

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Guidance for Continuing Operations Q3 2014 GAAP diluted EPS of $0.52 to $0.54Q3 2014 revenues of $94 to $96 millionFY 2014 GAAP diluted EPS of $2.50 to $2.60FY 2014 revenues of $400 to $410 million

  16. Slide 16: Financial Review

    * KAI 2Q14 Business Review–July 29, 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 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Quarterly Gross Margins

  18. Slide 18: Quarterly SG&A

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Quarterly SG&A

  19. Slide 19: 2Q13 to 2Q14 Diluted EPS from Continuing Operations

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. 2Q13 to 2Q14 Diluted EPS from Continuing Operations

  20. Slide 20: Cash Flow

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Cash Flow ($ Millions) 2Q14 2Q13 Income from Continuing Operations $8.0 $5.8 Depreciation and Amortization 2.8 2.5 Stock-Based Compensation 1.4 1.3 Gain on Sale - (1.7) Other Items 0.1 (0.2) Change in Current Assets & Li

  21. Slide 21: Key Working Capital Metrics

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Key Working Capital Metrics 2Q14 1Q14 2Q13 Days in Receivables 61 68 70 Days in Inventory 92 110 103 Days in Payables 44 46 56

  22. Slide 22: Working Capital and Cash Conversion Days

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Working Capital and Cash Conversion Days 2Q14 1Q14 2Q13 Working Capital % LTM Revenues* 15.7% 15.4% 15.1% Cash Conversion Days** 109 days 132 days 117 days *Working Capital is defined as current assets less current liabi

  23. Slide 23: Cash and Debt

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Cash and Debt ($ Millions) 2Q14 1Q14 2Q13 Cash, cash equivalents, and restricted cash $37.7 $57.2 $64.5 Debt (28.2) (42.9) (16.0) Net Cash $9.5 $14.3 $48.5

  24. Slide 24: Leverage Ratio

    * KAI 2Q14 Business Review–July 29, 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 les

  25. Slide 25: Questions & Answers

    * KAI 2Q14 Business Review–July 29, 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: Q2 2014 Key Take-Aways

    * KAI 2Q14 Business Review–July 29, 2014© 2014 Kadant Inc. All rights reserved. Q2 2014 Key Take-Aways Record revenue, adjusted EBITDA, adjusted EPS, bookings, and backlogSolid contributions from our acquisitions and our existing businessesImproving market conditions in China and EuropeTiming of cap

  27. Slide 27: Second Quarter 2014 Business Review

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

Kadant — Q2 2014 Earnings Presentation on 6ix