Slide 1: First Quarter 2015 Business Review
First Quarter 2015 Business Review Jonathan W. Painter, President & CEO Thomas M. O’Brien, Executive Vice President & CFO
Slide 2: Forward-Looking Statements
2 KAI 1Q15 Business Review–May 5, 2015 © 2015 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 ris
Slide 3: Use of Non-GAAP Financial Measures
3 KAI 1Q15 Business Review–May 5, 2015 © 2015 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 decr
Slide 4: Business Review
4 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. BUSINESS REVIEW Jonathan W. Painter President & CEO
Slide 5: Q1 2015 Financial Highlights
5 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Q1 2015 Financial Highlights ($ Millions, except per share amounts) Q1 2015 Q1 2014 % CHANGE EXCL. FX Revenue $92.3 $93.4 -1.2% 7.0% Gross Margin 48.1% 45.2% n.m. n.m. Net Income1 $6.8 $5.1 35.1% 44.5% Adjusted EBITDA1, 2
Slide 6: FX Translation and Acquisition Impact
6 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. FX Translation and Acquisition Impact Q1 2015, $ in millions except EPS Revenue Adjusted EPS4 Bookings Parts & Consumables Revenue Parts & Consumables Bookings As Reported $92.3 $0.63 $108.0 $65.5 $67.9 Growth1 (1.2)% 5.0
Slide 7: Bookings and Revenues
7 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Bookings and Revenues US$ (millions) $0 $20 $40 $60 $80 $100 $120 Bookings Revenues
Slide 8: Parts and Consumables Bookings and Revenues
8 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Parts and Consumables Bookings and Revenues US$ (millions) $35 $40 $45 $50 $55 $60 $65 $70 Bookings Revenues
Slide 9: Regional Performance
9 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. REGIONAL PERFORMANCE
Slide 10: North America Bookings and Revenues
10 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. North America Bookings and Revenues US$ (millions) $0 $10 $20 $30 $40 $50 $60 $70 Bookings Revenues
Slide 11: Europe Bookings and Revenues
11 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Europe Bookings and Revenues US$ (millions) $0 $5 $10 $15 $20 $25 $30 Bookings Revenues
Slide 12: Asia Bookings and Revenues
12 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Asia Bookings and Revenues US$ (millions) $0 $5 $10 $15 $20 $25 $30 $35 Bookings Revenues
Slide 13: Rest-of-World Bookings and Revenues
13 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Rest-of-World Bookings and Revenues US$ (millions) $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 Bookings Revenues
Slide 14: Guidance for Continuing Operations
14 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Guidance for Continuing Operations • Q2 2015 GAAP diluted EPS of $0.69 to $0.71 • Q2 2015 revenues of $95 to $97 million • FY 2015 GAAP diluted EPS of $3.05 to $3.15 • FY 2015 revenues of $403 to $410 million
Slide 15: Financial Review
15 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. FINANCIAL REVIEW Thomas M. O’Brien Executive Vice President & Chief Financial Officer
Slide 16: Quarterly Gross Margins
16 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Quarterly Gross Margins 47.6% 45.7% 42.7% 38.6% 45.6% 43.7% 43.4% 43.0% 47.3% 48.6% 43.9% 43.9% 45.2% 43.0% 44.7% 44.7% 48.1% 36% 38% 40% 42% 44% 46% 48% 50%
Slide 17: Quarterly SG&A
17 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Quarterly SG&A 25% 30% 35% 40% 45% $0 $10 $20 $30 $40 SG&A SG&A as a % of Revenues
Slide 18: 1Q14 to 1Q15 Diluted EPS from Continuing Operations
18 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. 1Q14 to 1Q15 Diluted EPS from Continuing Operations $0.45 $0.19 $0.06 $0.01 $0.01 ($0.08) ($0.02) $0.62 $0.00 $0.25 $0.50 $0.75 $1.00
Slide 19: Cash Flow
19 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Cash Flow ($ Millions) 1Q15 1Q14 Income from Continuing Operations $6.9 $5.2 Depreciation and Amortization 2.9 3.0 Stock-Based Compensation 1.6 1.4 Other Items (1.6) (0.5) Change in Current Assets & Liabilities (excl. ac
Slide 20: Key Working Capital Metrics
20 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Key Working Capital Metrics 1Q15 4Q14 1Q14 Days in Receivables 63 55 68 Days in Inventory 109 87 110 Days in Payables 50 42 46 68 55 63 110 87 109 46 42 50 20 40 60 80 100 120 Days in Receivables Days in Inventory Days i
Slide 21: Working Capital and Cash Conversion Days
21 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Working Capital and Cash Conversion Days 1Q15 4Q14 1Q14 Working Capital % LTM Revenues* 15.4% 12.8% 15.4% Cash Conversion Days** 122 days 100 days 132 days *Working Capital is defined as current assets less current liabi
Slide 22: Cash and Debt
22 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Cash and Debt ($ Millions) 1Q15 4Q14 1Q14 Cash, cash equivalents, and restricted cash $43.2 $45.8 $57.2 Debt (30.7) (25.9) (42.9) Net Cash $12.5 $19.9 $14.3 $40.0 $28.6 $30.7 $35.4 $30.9 $30.1 $41.5 $47.7 $51.8 $48.5 $58
Slide 23: Leverage Ratio
23 KAI 1Q15 Business Review–May 5, 2015 © 2015 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
Slide 24: Questions & Answers
24 KAI 1Q15 Business Review–May 5, 2015 © 2015 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.
Slide 25: Q1 2015 Key Take-Aways
25 KAI 1Q15 Business Review–May 5, 2015 © 2015 Kadant Inc. All rights reserved. Q1 2015 Key Take-Aways • Solid quarter with near-record gross margin • Internal revenue growth, excluding FX, was 5% • Parts and consumables revenues set a new record and represented 71% of total revenues • 2015 expected
Slide 26: First Quarter 2015 Business Review
First Quarter 2015 Business Review Jonathan W. Painter, President & CEO Thomas M. O’Brien, Executive Vice President & CFO