Kadant Inc · NYSE:KAI

Kadant — Q2 2013 Earnings Presentation

27 slides from Kadant's earnings presentation, Jul 30, 2013

  1. Slide 1: Second Quarter 2013 Business Review

    Second Quarter 2013 Business Review Jonathan W. Painter, President & CEOThomas M. O’Brien, Executive Vice President & CFO

  2. Slide 2: Forward-Looking Statements

    * KAI 2Q13 Business Review–July 30, 2013© 2013 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 2Q13 Business Review–July 30, 2013© 2013 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 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. BUSINESS REVIEW Jonathan W. PainterPresident & CEO

  5. Slide 5: Q2 2013 Financial Highlights

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 2013 Financial Highlights ($ Millions, except per share amounts) Q2 2013 Q2 2012 % CHANGE Revenue $82.2 $83.0 -1.0% Gross Margin 48.6% 43.7% n.a. Diluted EPS1 $0.51 $0.56 -8.9% Net Cash (cash less debt) $48.5 $30.1 61

  6. Slide 6: Q2 2013 Revenue By Product Line

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 2013 Revenue By Product Line ($ Millions) Q2 2013 Q2 2012 % CHANGE EXCL. FX Stock-Preparation $28.5 $28.7 -0.6% -1.6% Doctoring, Cleaning, & Filtration 27.7 27.6 0.4% -0.6% Fluid-Handling 23.1 23.7 -2.7% -3.0% Fiber-b

  7. Slide 7: Q2 2013 Bookings By Product Line

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 2013 Bookings By Product Line Percent change calculated using actual numbers reported in our Q2 2013 earnings release dated July 29, 2013. ($ Millions) Q2 2013 Q2 2012 % CHANGE EXCL. FX Stock-Preparation $28.2 $28.0 0

  8. Slide 8: Bookings and Revenues

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Bookings and Revenues US$ (millions)

  9. Slide 9: Parts and Consumables Bookings and Revenues

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Parts and Consumables Bookings and Revenues US$ (millions)

  10. Slide 10: Regional Performance

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. REGIONAL PERFORMANCE

  11. Slide 11: North America Bookings and Revenues

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. North America Bookings and Revenues US$ (millions)

  12. Slide 12: Europe Bookings and Revenues

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Europe Bookings and Revenues US$ (millions)

  13. Slide 13: China Bookings and Revenues

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. China Bookings and Revenues US$ (millions) $36.2

  14. Slide 14: South America Bookings and Revenues

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. South America Bookings and Revenues US$ (millions)

  15. Slide 15: Guidance for Continuing Operations

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Guidance for Continuing Operations Q3 2013 GAAP diluted EPS of $0.47 to $0.49Q3 2013 revenues of $88 to $90 million Full-Year Guidance FY Guidance July 2013 FY Guidance July 2013 FY Guidance April 2013 FY Guidance April

  16. Slide 16: Financial Review

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. FINANCIAL REVIEW Thomas M. O’BrienExecutive Vice President & Chief Financial Officer

  17. Slide 17: Quarterly Gross Margins

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Quarterly Gross Margins

  18. Slide 18: Quarterly SG&A

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Quarterly SG&A

  19. Slide 19: 2Q12 to 2Q13 Diluted EPS from Continuing Operations

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. 2Q12 to 2Q13 Diluted EPS from Continuing Operations

  20. Slide 20: Q2 Actual to Guidance Comparison

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Q2 13 Actual to Guidance Comparison Q213 Actual Guidance April 2013 Guidance April 2013 LOW HIGH GAAP Diluted EPS $0.51 $0.53 $0.55 Gain on Sale (0.12) (0.10) (0.10) Restructuring Costs 0.12 - - Adjusted Diluted EPS $0.5

  21. Slide 21: Cash Flow

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Cash Flow ($ Millions) 2Q13 2Q12 Income from Continuing Operations $5.8 $6.6 Depreciation and Amortization 2.5 2.0 Stock-Based Compensation 1.3 1.2 Gain on Sale (1.7) - Other Items (0.2) 0.3 Change in Current Assets & Li

  22. Slide 22: Key Working Capital Metrics

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Key Working Capital Metrics 2Q13 1Q13 2Q12 Days in Receivables 70 72 74 Days in Inventory 103 95 97 Days in Payables 56 51 49

  23. Slide 23: Working Capital and Cash Conversion Days

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Working Capital and Cash Conversion Days 2Q13 1Q13 2Q12 Working Capital % LTM Revenues* 15.1% 14.8% 13.8% Cash Conversion Days** 117 days 116 days 122 days *Working Capital is defined as current assets less current liabi

  24. Slide 24: Cash and Debt

    * KAI 2Q13 Business Review–July 30, 2013© 2013 Kadant Inc. All rights reserved. Cash and Debt ($ Millions) 2Q13 1Q13 2Q12 Cash, cash equivalents, and restricted cash $64.5 $58.4 $42.1 Debt (16.0) (6.6) (12.0) Net Cash $48.5 $51.8 $30.1

  25. Slide 25: Leverage Ratio

    * KAI 2Q13 Business Review–July 30, 2013© 2013 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

  26. Slide 26: Questions & Answers

    * KAI 2Q13 Business Review–July 30, 2013© 2013 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.

  27. Slide 27: Second Quarter 2013 Business Review

    Second Quarter 2013 Business Review Jonathan W. Painter, President & CEOThomas M. O’Brien, Executive Vice President & CFO

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