Slide 1: First Quarter 2012 Business Review
First Quarter 2012 Business Review Jonathan W. Painter, President & CEO Thomas M. O’Brien, Executive Vice President & CFO
Slide 2: Forward-Looking Statements
* KAI 1Q12 Business Review-April 26, 2012 © 2012 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
Slide 3: Use of Non-GAAP Financial Measures
* KAI 1Q12 Business Review-April 26, 2012 © 2012 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 d
Slide 4: Business Review
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. BUSINESS REVIEW Jonathan W. Painter President & CEO
Slide 5: Q1 2012 Financial Highlights
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Q1 2012 Q1 2011 Revenue $84.1 million $71.7 million Gross Margin 45.6% 47.6% Operating Income 1 $10.4 million $8.3 million Net Income 1 $7.1 million $5.9 million Diluted EPS 1 $0.61 $0.47 EBITDA 2 $12.6 million $10.2 m
Slide 6: Revenue By Product Line: Q1 2012
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. ($ Millions) Q1 2012 Q1 2011 % CHANGE EXCL. FX Stock-Preparation $32.7 $23.3 40.3% 40.5% Fluid-Handling 22.4 22.6 -1.2% 0.5% Doctoring 13.6 14.1 -3.0% -1.3% Water-Management 10.8 6.8 58.6% 60.9% Fiber-based Products 4.
Slide 7: Bookings By Product Line: Q1 2012
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. ($ Millions) Q1 2012 Q1 2011 % CHANGE EXCL. FX Stock-Preparation $20.3 $29.8 -32.1% -32.1% Fluid-Handling 26.4 27.0 -2.1% -0.3% Doctoring 14.3 14.4 -0.7% 1.3% Water-Management 12.6 8.4 51.0% 52.2% Fiber-based Products
Slide 8: Bookings and Revenues Trends
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Bookings and Revenues Trends US$ (millions)
Slide 9: Parts and Consumables Bookings and Revenues
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Parts and Consumables Bookings and Revenues US$ (millions)
Slide 10: Regional Performance
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. REGIONAL PERFORMANCE
Slide 11: North America Bookings and Revenues
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. North America Bookings and Revenues US$ (millions) Geographic revenues and bookings are attributed to regions based on customer location. Prior period amounts have been recasted to conform to the current presentation.
Slide 12: Europe Bookings and Revenues
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Europe Bookings and Revenues US$ (millions) Geographic revenues and bookings are attributed to regions based on customer location. Prior period amounts have been recasted to conform to the current presentation.
Slide 13: China Bookings and Revenues
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. China Bookings and Revenues US$ (millions) Geographic revenues and bookings are attributed to regions based on customer location. Prior period amounts have been recasted to conform to the current presentation.
Slide 14: South America Bookings and Revenues
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. South America Bookings and Revenues US$ (millions) Geographic revenues and bookings are attributed to regions based on customer location. Prior period amounts have been recasted to conform to the current presentation.
Slide 15: Rest-of-World Bookings and Revenues
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Rest-of-World Bookings and Revenues US$ (millions) Geographic revenues and bookings are attributed to regions based on customer location. Prior period amounts have been recasted to conform to the current presentation.
Slide 16: Guidance for Continuing Operations
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Guidance for Continuing Operations • FY 2012 GAAP diluted EPS of $2.10 to $2.20 • FY 2012 revenues of $335 to $345 million • Q2 2012 GAAP diluted EPS of $0.50 to $0.52 • Q2 2012 revenues of $83 to $85 million
Slide 17: Financial Review
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. FINANCIAL REVIEW Thomas M. O’Brien Executive Vice President & Chief Financial Officer
Slide 18: Gross Margins
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. 1Q12 4Q11 1Q11 Sequential ∆ Y-O-Y ∆ Papermaking Systems Segment 45.1% 38.3% 47.4% 6.8% -2.3% Fiber-based Products 56.3% 49.9% 50.8% 6.4% 5.5% TOTAL 45.6% 38.6% 47.6% 7.0% -2.0% Gross Margins
Slide 19: SG&A
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. ($ Millions) 1Q12 4Q11 1Q11 Sequential ∆ Y-O-Y ∆ SG&A $26.1 $26.3 $24.5 $(0.2) $1.6 % Revenues 31.1% 27.1% 34.1% 4.0% -3.0% SG&A
Slide 20: 1Q11 to 1Q12 Diluted EPS from Continuing Operations
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. 1Q11 to 1Q12 Diluted EPS from Continuing Operations
Slide 21: Cash Flow
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. ($ Millions) 1Q12 1Q11 Income from Continuing Operations $7.1 $5.9 Depreciation and Amortization 2.2 1.9 Stock-Based Compensation 1.1 0.8 Other Items (0.2) 0.5 Change in Current Assets & Liabilities (excl. acquisitions
Slide 22: Key Working Capital Metrics
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. 1Q12 4Q11 1Q11 Days in Receivables 73 58 68 Days in Payables 57 43 62 Days in Inventory 101 82 112 Working Capital % LTM Revenues* 13.7% 9.9% 12.0% Key Working Capital Metrics *Working Capital is defined as current ass
Slide 23: Cash and Debt
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. ($ Millions) 1Q12 4Q11 1Q11 Cash, cash equivalents, restricted cash $43.0 $47.7 $57.6 Debt (12.1) (12.3) (17.6) NET CASH $30.9 $ 35.4 $40.0 Cash and Debt
Slide 24: Leverage Ratio
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Leverage Ratio * Calculated by adding or subtracting certain items, as required by our Credit Facility, from Adjusted EBITDA.
Slide 25: Questions & Answers
* KAI 1Q12 Business Review-April 26, 2012 © 2012 Kadant Inc. All rights reserved. Questions & Answers To ask a question, please call 866-804-6926 within the U.S. or +1-857-350-1672 outside the U.S. and reference 83375884. Please mute the audio on your computer.
Slide 26: First Quarter 2012 Business Review
First Quarter 2012 Business Review Jonathan W. Painter, President & CEO Thomas M. O’Brien, Executive Vice President & CFO